Introduction to Real Estate Question Bank
Course Introduction
Introduction to Real Estate provides students with a comprehensive overview of the real estate sector, including fundamental principles, key terminology, and the roles of various professionals within the industry. The course explores the economic, legal, and financial aspects of real estate, covering topics such as property rights, land use regulations, valuation methods, and real estate markets. Students will also learn about the processes involved in buying, selling, and managing residential and commercial properties. By the end of the course, participants will have a solid foundation to understand the complexities of the real estate industry and its impact on the economy and society.
Recommended Textbook
Real Estate Principles 11th Edition by Charles J. Jacobus
Available Study Resources on Quizplus
26 Chapters
2079 Verified Questions
2079 Flashcards
Source URL: https://quizplus.com/study-set/1078
Page 2
Chapter 1: Nature and Description of Real Estate
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/21297
Sample Questions
Q1) Which of the following will always involve a plat?
A) Lot and Block system
B) U.S. Geodetic survey system
C) U.S. rectangular survey
D) Tax assessor's parcel numbers
Answer: A
Q2) A proper legal description of land must uniquely ____________________ and bound the parcel.
Answer: locate
Q3) A condominium parking stall would be considered to "run with the land" and would be considered to be an ____________________.
Answer: appurtenance
Q4) Correction lines, which occur at intervals in the rectangular survey system, are necessary
A) to correct the mistakes made by surveyors.
B) to allow for magnetic fields which interfere with compasses.
C) because of the curvature of the earth.
D) because of the gravitational pull of the moon.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Rights and Interests in Land
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21298
Sample Questions
Q1) A government may acquire ownership of privately held land by patent. A)True
B)False
Answer: False
Q2) Railroads have the right to condemn private property for public use. A)True
B)False Answer: True
Q3) A ____________________ mortgage lien could not result in the sale of a debtor's real property in order to gain funds for the satisfaction of a debt. Answer: chattel
Q4) A family had a lion as a pet at their home outside the city. When the area became incorporated, the city made him get rid of the lion by their use of police power. A)True
B)False Answer: True
Q5) A properly recorded easement on real property is an ____________________. Answer: encumbrance
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Forms of Ownership
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21299
Sample Questions
Q1) When property is held by two or more owners as tenants in common, upon the death of one owner, that person's ownership interest would pass to
A) the surviving spouse only.
B) whoever is designated in the decedent's will.
C) the surviving owner and/or his heirs.
D) the remaining owner or owners.
Answer: B
Q2) The phrase "a poor man's will" has often been applied to A) severalty ownership.
B) joint tenancy.
C) tenancy in common.
D) tenancy in common.,
Answer: B
Q3) Some states automatically assume that a tenancy by the entirety is created when ____________________ persons buy real estate.
Answer: married
Q4) A ____________________ trust takes effect after death.
Answer: testamentary
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Transferring Title
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21300
Sample Questions
Q1) When an adverse claimant tacks on his period of possession to that of a prior adverse occupant, this is called tacking.
A)True
B)False
Q2) A general warranty deed protects the grantee against future problems with the grantee's title that occurred before transfer.
A)True
B)False
Q3) A person who makes a will is called
A) a devisee.
B) a testator.
C) a legatee.
D) an executor.
Q4) The grantee's signature is required in a deed.
A)True
B)False
Q5) In addition to a grantor, grantee, land description, consideration and grantor signature, for a deed to convey ownership, there must be ____________________ and ____________________.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Recordation Abstracts and Title Insurance
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21301
Sample Questions
Q1) Any subsequent purchasers of a property must obtain a new policy if they desire title insurance.
A)True B)False
Q2) A person interested in a property is held by law to be responsible for making further inquiry of anyone giving visible or recorded notice. This is called "inquiry notice."
A)True B)False
Q3) A lender's title insurance policy is also known as a ____________________ policy.
Q4) Almost all states use the tract indexing system.
A)True
B)False
Q5) Deeds are recorded
A) to provide constructive notice of their existence.
B) because the law requires it.
C) to satisfy a lender.
D) to give actual notice.
Q6) Title insurance has made titles to land much more ____________________.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Contract Law
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21302
Sample Questions
Q1) Money or anything worth money exchanged in a contract is classified as unilateral consideration.
A)True
B)False
Q2) If a contract is considered voidable, it is valid until voided.
A)True
B)False
Q3) The absence of duress, menace and undue influence are requirements of lawful objective.
A)True
B)False
Q4) The statute of limitations concerns time limits for filing a lawsuit.
A)True
B)False
Q5) A lawsuit for _________________________ is an action in court by the innocent party to force the breaching party to carry out the remainder of the contract according to the precise terms, price and conditions agreed upon.
Q6) A contract that has no binding effect on the parties who made it is a(n)____________________ contract.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Real Estate Sales Contracts
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21303
Sample Questions
Q1) When a property is optioned, the optionor is the A) buyer.
B) vendor.
C) owner.
D) lessee.
Q2) The phrase "time is of the essence" means
A) that the broker must present the offer quickly. B) that the transaction must close as soon as possible. C) that punctual performance of the time limits set by the contract is essential. D) little, since the phrase has no specific meaning.
Q3) When two properties are exchange rather than each being sold independently, it is likely structured as a(n)_________________________ exchange.
Q4) If two or more parties want to express their mutual intention to buy, sell, lease, develop, or invest, and wish to do so without creating any firm, legal obligation, they may use a ______________________________.
Q5) Under an installment sale, the seller is known as the ____________________ and the buyer is known as the ____________________.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Mortgage and Note
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21304
Sample Questions
Q1) Who benefits the most by the inclusion of a subordination clause in a mortgage?
A) Borrower
B) Lender
C) Selling broker
D) Trustee
Q2) A promissory note
A) describes the property being hypothecated.
B) is the primary evidence of a loan.
C) is an agreement not to do a certain thing.
D) is not negotiable when secured by a mortgage.
Q3) When a borrower gets behind on his loan payments, the lender could call for the entire balance due immediately based on the
A) alienation clause.
B) acceleration clause.
C) subordination clause.
D) pre-payment clause.
Q4) A deed in lieu of foreclosure relieves the lender of foreclosing and waiting out any required redemption period.
A)True
B)False
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Deed of Trust
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21305
Sample Questions
Q1) Under a deed of trust, the lender is known as the ____________________.
Q2) One of the major differences between a regular mortgage and a deed of trust is
A) a mortgage hypothecates personal property.
B) a deed of trust must be recorded.
C) the redemption period allowed.
D) there is no difference.
Q3) The basic purpose of the deed of trust, also referred to as a trust deed, is the same as a ____________________.
Q4) Proceeds from a foreclosure sale go first to the lender, then to the borrower and then to the expenses of the sale.
A)True
B)False
Q5) A deed for reconveyance would be signed by the A) beneficiary.
B) trustor.
C) trustee.
D) grantee.
Q6) Under a deed of trust the borrower is known as the ____________________.
Q7) The trustee in a deed of trust is a neutral ____________________ party.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Lending Practices
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21306
Sample Questions
Q1) Who must pay the discount points on a FHA loan?
A) Anyone who agrees to
B) Seller
C) Buyer
D) There are no points on a FHA loan
Q2) As payments are made, the amount of interest taken from a mortgage loan payment decreases and the amount applied to the principal increases. This is because of
A) appreciation.
B) variable interest rate.
C) amortization.
D) depreciation.
Q3) On a $64,000 home, which of the following would require the largest cash down payment?
A) FHA-insured loan
B) 80% loan-to-value conventional loan
C) 90% loan-to-value conventional
D) 100% DVA loan
Q4) The difference between the market value of a property and the debt owed against it is called the owner's ____________________.
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: The Loan and the Consumer
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21307
Sample Questions
Q1) As well as a borrower's assets, the lender will evaluate the borrower's
Q2) Under the truth in lending act, the cost of credit extended must be expressed as an actual percentage rate.
A)True
B)False
Q3) When making a mortgage loan application, borrowers are protected from discrimination based on marital status by the
A) Fair Credit Reporting Act.
B) Fair Housing laws.
C) Equal Credit Opportunity Act.
D) Real Estate Settlement Procedures Act.
Q4) Truth in lending laws require a lender to provide figures for loan amount, interest rates, and annual percentage rate.
A)True
B)False
Q5) Regulation Z deals with annual percentage rates.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Sources of Financing
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21308
Sample Questions
Q1) Automated underwriting systems have dramatically overhauled the mortgage loan underwriting process.
A)True
B)False
Q2) A lender who continues to collect mortgage payments even after selling the loan is said to be
A) originating loans.
B) laundering money.
C) servicing the loan.
D) discounting the loan.
Q3) Usury laws are established by the federal statutes.
A)True
B)False
Q4) The entity that purchases the most loans in the secondary market is
A) FNMA.
B) FHLMC.
C) HUD.
D) GNMA.
Q5) Freddie Mac's Loan ____________________ program made available on the Internet overhauled the entire loan underwriting system.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Types of Financing
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21309
Sample Questions
Q1) Each of the following statements about open-end mortgage clauses is true EXCEPT
A) using an open-end clause, the new amount borrowed is added to the mortgage balance.
B) they are used in government loans like DVA and FHA.
C) they are used in conventional mortgages.
D) funds borrowed using an open-end clause are reamortized over the remaining like of the mortgage.
Q2) An individual who is contemplating the purchase of a mortgage as an investment should have
A) the property appraised.
B) a credit check made on the borrower.
C) the title searched.
D) all of the above.
Q3) In order to make adjustable rate mortgage loans more attractive to borrowers, lenders offer
A) lower initial interest rates.
B) gifts such as appliances, trips, etc.
C) lower insurance rates.
D) lower down payments.
Q4) The interest rate on an ARM is tied to a(n)____________________ rate.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 14: Taxes and Assessments
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21310
Sample Questions
Q1) Real property taxes are levied by the government and become a lien monthly.
A)True
B)False
Q2) In some states, the board of ____________________ performs the task of equalizing assessment procedures between counties.
Q3) A public improvement benefits the general public and is financed through a general property tax.
A)True
B)False
Q4) Plottage is likely to have which of the following results?
A) Raising the tax bill
B) Raising the tax rate
C) Accelerating the lien date
D) Lowering the tax bill
Q5) The first step in determining the amount of taxable gain upon the sale of an owner-occupied residence is to calculate the home's ____________________.
Q6) When local budgets along with a list of sources from which the money will be derived, is enacted into law, it is called the ____________________ process.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Title Closing and Escrow
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21311
Sample Questions
Q1) When a real estate settlement is held in escrow
A) there is no closing meeting.
B) the closing process may be conducted by mail.
C) both a and b.
D) neither a nor b.
Q2) A buyer and a seller are likely to shake hands upon completion of a real estate transaction involving an escrow closing.
A)True
B)False
Q3) According to the Real Estate Settlement and Procedures Act, which of the following is illegal?
A) Examination of the HUD settlement statement the day before closing
B) Payment of kickbacks
C) Delivery of the closing statement on the day of closing
D) Disbursement of commission fees
Q4) The proration of prepaid condominium association dues will result in a
A) charge to the seller and credit to the buyer.
B) charge to the buyer and credit to the seller.
C) charge to the seller and credit to the association.
D) charge to the association and credit to the buyer.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Real Estate Leases
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21312
Sample Questions
Q1) A valid, written lease will automatically be terminated by A) death of the lessor.
B) sale of the leased premises.
C) court eviction of the tenant.
D) imprisonment of tenant.
Q2) A rental contract gives the tenant
A) the right of possession.
B) temporary ownership.
C) a freehold estate.
D) the right to encumber.
Q3) A residential apartment tenant would be expected to pay the landlord for A) normal wear and tear.
B) damage to the apartment caused by the tenant.
C) any change in the apartment.
D) sun-faded carpet.
Q4) The Certified Property Manager (CPM)designation is available from the Organization of Property Managers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Real Estate Appraisal
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21313
Sample Questions
Q1) In the market approach, houses with similar physical features and amenities that have sold recently under market value conditions are called
Q2) The most commonly used methods of real estate appraisal are
A) market approach, income, and cost.
B) income, reproduction, and cost.
C) residual, cost, and market data.
D) comparison, income, and capitalization.
Q3) The relationship between added cost and the value it returns is known as the principle of ____________________.
Q4) After all adjustments are made to a comparable property, its comparative value for appraisal purposes is known as its A) adjusted market price.
B) indicated market value.
C) amended market value.
D) revised market price.
Q5) The Society of Real Estate Appraisers offers the CREI designation. A)True B)False
Q6) The property to be appraised is known as the ____________________ property.
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Licensing Laws and Professional Affiliation
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21314
Sample Questions
Q1) When moving to a new state, a licensed real estate agent in one state can presume his license status in the former state will be given credit in his new state of residence
A) always.
B) sometimes.
C) never.
D) when moving to Texas only.
Q2) A real estate broker's or salesperson's license would most likely be revoked for A) failure to pay REALTORS® dues.
B) misrepresentations.
C) failure to practice real estate.
D) failing to split a commission with an unlicensed individual.
Q3) Executors of estates are specifically exempt from holding a real estate license.
A)True
B)False
Q4) Real estate commissions typically do all of the following EXCEPT
A) review license exam answers.
B) hold hearings in response to complaints of improper actions of licensees.
C) enact new real estate legislation or amend existing legislation.
D) determine the number and location of exam testing sites.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: The Principal-Broker Relationship: Employment
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21315
Sample Questions
Q1) A flat-fee broker is an example of a ____________________ broker.
Q2) A broker has an exclusive right to sell listing with the sellers. The broker brings an offer to buy at the seller's asking price and terms from a capable buyer. At what point has the broker earned her commission?
A) At the close of escrow
B) Upon presentation of the offer
C) Upon acceptance of the offer
D) Upon qualification of the buyer
Q3) A broker who is the primary cause of a transaction is known as the ____________________ cause.
Q4) A licensed real estate salesperson can accept a commission from more than one broker
A) if both brokers are fully informed in writing.
B) when brokers are cooperating through the multiple listing service.
C) at no time.
D) if the salesperson was the procuring cause in each transaction.
Q5) A listing that gives the broker the right to collect a commission no matter who sells the property during the listing period is called a(n)____________________ right to sell listing.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: The Principal-Broker Relationship: Agency
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21316
Sample Questions
Q1) When an agent's authority arises from custom in the industry, it is identified as
A) implied authority.
B) ostensible authority.
C) customary authority.
D) conventional authority.
Q2) The main problem that can arise with a dual agency is the agent may experience a conflict of interest.
A)True
B)False
Q3) The listing salesperson was told by a prospective buyer to present an offer of $150,000 with the promise that he would increase it to $152,000 if the seller rejected $150,000. The salesperson must
A) present the offer and disclose the promise to increase the offer.
B) keep the confidence of his buyer while presenting the $150,000 offer.
C) refuse to present the offer.
D) tell her broker of the verbal part of the offer.
Q4) Making statements a reasonable person would recognize as non-factual or extravagant is known as ____________________.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Fair Housing, Ada, Equal Credit, and Community Reinvestment
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21317
Sample Questions
Q1) A housing discrimination victim may seek recourse by all EXCEPT
A) formal complaint to the Department of Housing and Urban Development.
B) suit in a state court of competent jurisdiction.
C) complaint with the state real estate commission.
D) complaint filed with the U.S. Attorney General.
Q2) The 1968 Fair Housing Law provides protection against discrimination for refusing to sell or rent to deal, or ____________________ with any person.
Q3) The CRA statement should contain all of the following EXCEPT
A) a map of the lender's definition of its community.
B) a list of credit services it offers.
C) a copy of the public notice in its lobby.
D) the names of all lending institutions in the area.
Q4) A minority is always described as a member of the smallest group of people.
A)True
B)False
Q5) An individual posing as a potential purchaser to determine whether discrimination exists in a real estate transaction is known as a ____________________.
To view all questions and flashcards with answers, click on the resource link above. Page 23
Q6) A protected class is a class of people that by law are protected from
Chapter 22: Condominiums, Cooperatives, Puds, and Timeshares
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21318
Sample Questions
Q1) Traditionally, the resale of cooperative shares has been financed by means of second mortgages on the seller's unit.
A)True
B)False
Q2) If a condominium owner fails to pay his portion of maintenance fees, the response of the owners' association will be to
A) evict him.
B) place a lien against his unit.
C) foreclose.
D) report him to the local authorities.
Q3) The regulations by which anyone purchasing a unit in the condominium must abide are known as ____________________, conditions, and Restrictions.
Q4) The guest of a unit owner was injured by stepping on broken glass in the swimming pool at a condominium. Liability for this injury would probably initially fall upon the developers.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24
Chapter 23: Property Insurance
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21319
Sample Questions
Q1) Among the following, who does NOT hold an insurable interest?
A) A property owner.
B) The listing broker.
C) A mortgage lender.
D) The tenant.
Q2) To cover personal property and any additions or alterations to the unit not insured by the association's policy, a condominium unit owner's form (HO-6)is available.
A)True
B)False
Q3) If a liability claim arises under Section II of a homeowner's policy, the insurance company will pay for
A) damages up to the policy limits.
B) damages up to the policy limits plus the legal costs of defense.
C) damages and legal costs up to the policy limit.
D) damages beyond policy limits in certain cases.
Q4) An "all-risk" homeowner policy (HO-C)does not include coverage for damage resulting from war or nuclear accident.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 25
Chapter 24: Land-Use Control
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21320
Sample Questions
Q1) The word variance in land use applies to
A) an open-ended use permit.
B) loan rates which raise and lower during the term of the loan.
C) property taxes.
D) zoning.
Q2) The exact layout of a subdivision is usually shown in detail on the A) deed.
B) plat.
C) plot.
D) CC&Rs.
Q3) Environmental impact statements are prepared
A) before development begins.
B) during construction.
C) upon completion of construction.
D) by a homeowner.
Q4) An environmental impact statement should reveal the effect of a planned development on property values.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Real Estate and the Economy
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21321
Sample Questions
Q1) Real estate values are affected by the federal government's
A) tax rules.
B) laws.
C) deficits.
D) all of the above.
Q2) When a government prints more money than is necessary for economic growth, the result is
A) a short-term drop in interest rates.
B) a long-term drop in interest rates.
C) both a and b.
D) neither a nor b.
Q3) The real cost of interest is the
A) rate stated on the promissory note.
B) inflation-adjusted cost.
C) annual percentage rate.
D) rate stated on the promissory note plus any discounts.
Q4) Through the Federal Reserve Banks, the Federal Reserve Board can create money but cannot destroy money.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Investing in Real Estate
Available Study Resources on Quizplus for this Chatper
80 Verified Questions
80 Flashcards
Source URL: https://quizplus.com/quiz/21322
Sample Questions
Q1) A woman owns an $86,000 house on which she pays $329 per month interest. If she is in a 28% tax bracket, how much less tax will she have to pay per year because she owns it?
A) $131.60
B) $653.49
C) $1,105.44
D) $2,763.60
Q2) Tax shelter in real estate is not available for rent houses.
A)True
B)False
Q3) Equity build-up can result from appreciation as well as debt reduction.
A)True
B)False
Q4) As a rule of thumb, for the investor to break even, the value of raw land must double every 10 years.
A)True
B)False
Q5) If an investor has to dip into cash reserves to keep a property going, the property has a ____________________ cash flow.
To view all questions and flashcards with answers, click on the resource link above. Page 28