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Thanksfrom the staffat PRO-ED. PRO-ED's Mini-Quiz for Chapter 2. ll of the following are consideredreal property xcept: 1. If a stateacquires property of an individualfor the minerals purposeof buildinga highway,it obtainstitle by . trees action basedon: firewood a. quiet action house adversepossession eminentdomain I , land is characterizedby all ofthe d. easementproceeding llowing qualities except: fixity 2. is defined as: homogeneity a. the land, exclusive of all improvements permanence b. the improvements,exclusive of the land nonhomogeneity !n whateveris erected,growing upon, or affixed - land ll of the following are true except: d. the land and anything erectedor affrxed to it, real properfy may be taxed by the government real property may be acquired by the govemment if the owner doesnot leavea will and hasno 3. Which of the following is(are)a test(s)of a fi heirs a. the intent of the owner fixturesare personal property that cem become b. the method of the annexation realproperty when attached to the reralproperty c. the adaptationof the properfy personaland real property are one and the same fl aflofthese $a definitions with words 4- Thecombination of privilegesownership of real propertygives is referredto as: propertywhich becomesreal properg F a. littoralrights b. riparianrights left a will b c. surfaceand subsurface rights a bundleof rights ight of governmentto control use of lard f i J 5. The right of the governmentto imposerestrictions propefty o d controls upon privately owned land is known g/' police power ion of land 'nI b. bundleof rights c. littoral rights ift of realestate by will f,,- d. escheat on to a will d, 6. If personalproperty is included in a transaction,title to the personalproperty passesto individualright to own land ; chaserby: bill of sale in of land through build-up of soil €.: a c. a certificate of sale ll legalrights attached to property a d. a quitclaim deed

7. Reversionof propertyto the sovereignstate upon deathof a personwho leavesno will and has no ndle of rights is: icil a. encumbrance ion escheat res descent d. eminentdomain tus lodial PRO-ED's Mini-Quiz for Chapter 3. following facts are true: an acre contains 43,560 squarefeet 1. _Ihe southboundary of theNW 1i4 ofthe SW 1i4 a township contains 36 sections I t32ofeet both of these b. 1790 feet neither of these c. 2640 feet d. 5280 feet linesare used in surveyingfor the

2. The map that recitesthe boundariesof an areaof to correct mistakesmade by surveyors land as surveyedis referred to as a: to compensatefor the curvatureof the earth a. landmark both ofthese I Ptut neither of these c. monument d. abstract measurementand establishmentof the aries of a particular property, usually identified 3. Underthe rectangularsurvey system, a check: metalstakes embedded in the groundor the I. contains16 townships of the lot line, is known as: [. contains32 townships meridians and baselines III. is 24 milessquare survey IV. is 5280feet on all sides correctionlines a. I only platting b. II only c. Iandtr definitions with words J t andIII milessquare, or l6 townshipsi 4. A sectioncontains one square mile, thusa square1 mile on eachside would contain: 31560square feet 6 a. 640 acres b. 320acres .5 feet [,1 16oacres D d. U0acres inesrunning north and south "1

5. All of the followingare hue of the metesand tains36 sections descriptionof property,except: a. all unitsof measure sedin plattingsubdivisions b b. useof naturaland artificial monuments c. thereis a point of beginning q acres6[ useof meridiansand base lines I of anarea ( 6. A parcelof landsix milessquare in the rectangu surveysystem is a: rfiarkerset by surveyorf a. check b. section feet O- I township -1[ range ile and block svstem 7. Metesrefers to: a. streetaddress b. landmarksand monuments measurementsand distances ! T a meetingof theminds PRO-ED's Mini-Quiz for Chapter 5. A condition or covenantin a deed which prohibits in usesof the propertyis: 1. All of the following are included in a deed restriction a. granting clause reversion b. consideration alienationclause c. legal description a liability clause of grantee {ienature habendumclause can best be describedas: 2. A personacquiring real property by deed is: an acknowledgment a. vendee to have and to hold clause a deliverv clause e . none ofthese d. trustee ing definitions with words 3. The following is incompatible with ajoint a. survivorship 11. ip for a person'srire f b. possession 12. paymentof a debt ll'"n"*o. ownersnlp . $ nt that stipulatesuse of propenty q.-, 4. A freeholdestate includes all of the following, except: r ofpossession a. feesimple title J b. life estate a wife has in husband'sestate I leaseholdestate fee simple conditional sirnple title b 5. Warrantiesof a quit claimdeed include: torwarrants only his or herownerstrip a. covenantof seizin I b. quietenjoyment a husbandhas in wife'sestate q" c. freedomfrom encumbrances warrantiesare contained in a quit claim ld estate )"o "t 6. Uponproper execution of a deed,title is underoath Q a. whenthe saleis closed deliveryof the deed abstractis extended d. uponrecordation ofthe deed rtesy thanfreehold 7. All of the following are methodsof holding title, ftnowledgment except: f8 estate a. tenantsin common of trust b. joint tenancy deed

interest of seizin

8. From the standpoint of the grantor in a deed conveying real property, which of the following deedscreates the most liability? a. quitclaim deed b. bargainand sale deed c. specialwarranty deed - warranw deed ]-eeneral PRO-EDis Mini-Quiz for Chapter 6. 8. Tht contriactin which bothparties promise to perfrrrm isa 1 A contract entered into for other than a lesal a. unilateralcontract would be considered: b. unenfbrceablecontract ^. 4., unenforceable executorycontract L void bilateral - contract c. valid fl d. voidable ual oontractis best defined as: a conllractbetween two people for the purposeof 2. A contractin which performancewill take place fulfilling an intent later date. agentsfrom two different companiesare involved executorvcontract 1| in the transaction b. executedcontract a sirrglecontract with a dual purpose c. bilateral contract a secondoontract written for purposesof obtaining d. implied contract # a larger loan from the lender

3. The conhactsmost commonly used in realestate 10.A defectis bestdefined as: hansactionsinclude all of the following,except: a. a derfeptthat the prudent buyer can see a. listingcontract b. an olcl del'ect b. purchasecontract a derferctthat is hidden from view c. a mortgage I cl. a brealchof contract by the seller * abstract f M{tch delfinitionswith words 4. All of the following constitutereasons a contract not be completedexcept: ll d. the property is destroyedby fire one of the partieschanges his/her mind 12. ion deathof one of the parties $ d. the contractis unenforceable 13. and acceptanceh 5. A contractis bestdescribed as: 14. voluntaryagreement between two or more rJ f " to performa legalact 15.Vo contract b b. a lawful objectonly whenwritten by an i c. a documentthat must be completedwithin six 16.Im ied contract-l monthsfrom the time it waswritten d. a verbal agreementbetween fwo or more 17. tory'contractI

6. The law that forbids prior verbal or written ev to 18. del'ect Q vary the terms of a contract. a. dual rule clontraci-A- b. specific performance parolevidence rule performance f,, uniformcommercial code pl iseon partof bothparties 7. An optionagreement need not include: ill purpose a. a specificprice hi liom view b. a definitetime for whichthe optionis availab ex,changeof promise u promiseby theoptionee cou rem

1. Theperson who has no representationis the c ialagency a. true J

agency {^ nt works as an agentfor the listing Lr

agency L 3. The agentwho works for two principals in the transactionis a subagent? <\ a. true

I 4. A dualagent works only for the sellerin a a. true I u*rn.,f l9 agency 5. The buyer may representhimself when I 20

b. false a. b. ipnshipof faith, trust,and confidentialitv buyermay hire an agent to representhis c. r who hiresanother to act true on his behalif d. is hiredto performa specific false act e. t representsbuyer and seller in a transaction f. betweenagent -J.. No and buyer agencyrelationship is formedunder the faci g D' nts the seller through cept? the listing agernt h. hasnQreprresentation true i. iqnshripbetween seller and listing false agent j. to transactall the principal'saftrirs 8. Therealestate agent is usuallyhired as a general a. fue J false 9. The agentowes the client complete allegiance,but beftbe fair andhonest with the customer? J, true b.. falsel

10. Compensationmust be paid by the personwho hi the agent to representhim? a. true jtatse the salespersonis awareof marketconditions and marketvalues

estatebroker may do all of the follovring,exr:ept: managereal property perform abstractingservices leas;ereal property sell real property

liistinga property,the agentwill usuallydo all of folkrwing, except: measurethe squarefootage of the house hav'ethe listing signedby at leastone of the owners put a terminationdate in the contract ask the principal if any personalproperty will be irrclludedin the sale

definitionswith words ownlerreseryes right to sell propertyhimself tO-

icensedto sell real estateunder iurisdiction ofanother

rokerrspool their listings and cooperatec,n sales I

tradeword used by membersof theNational f ssocriationof Realtors

greement en seller and agencythat allows firm sell prop

ip of faith,trust, and confidence between arndowner 4] r( vesexcess above agreed price seller will

cpluiedto sell real estateand may openhis or her finn fu iorrshipbetween broker and client/priincipal14,

I e,sf41sfirm hassole right to settg af lusiv'eagency bI cl dl listing L,TOR@ f. Itiple listing o esperson ll I c0fltrilct t t. usiveright to sell PRO-ED's Mini-Quiz for Chapter 9. nl" definitions with words l. Which of the following may not be negotiated ' the buyer and the seller at the time of the ofter? 1. --.|, the broker'scommission 11. property b. discountpoints h c. purchaseprice f6ryfor tundsheld by broker d. possessiondate C

2. All of the following are essentialto a sales except: a. purchaseprice b. descriptionof the property responsibilities held by one are passedto c. buyer'sand seller'ssignatures L,\- I mortgageassumption titreb 3. A contractin which the considerationconsists of promise given in exchangefor a promise is a: and omission insurance a. unilateral contract b. insurancecontract purchasepri".4j-. c. option contract contract 5fbilateral warranty insurance I

4. If AnnieBell makesan offer to Don Jonesand acceptedevery aspectofthe offer except the closi title freeof defects date which Jonesproposed should be moved back OCC0TUtlt week,this wouldconstitute a/an: ideration a. option t;old to the highest bidder - J counteroffer original contract c. bindingcontract agent from errors made d. offerto purchase ap;ainstcertain defects n property 5. A leaseoption agreement is used: deposit a. if the sellerhas difficulty locatinga buyerfor 15 Or herproperfy _ b. whenfinancing is scarce I botha andb d. noneofthe above PRO-ED|s Mini-Quiz for Chapter 10. RersolutionTrust Corporation was formed to: a. placeloans in high risk areas 1. The lender will make a loan on real property b. replaLcethe defunctFSLIC percentageof the property'svalue. This is called: c. insuredepositors funds a. the resalevalue liquidateinsolvent thrift institutions fl the loan-to-value ratio c. liquidation value PA'was enactedto: d. market value put almaximum limit on credit charges enableconsumers to shop for better credit terms 2. The Real EstateSettlement Procedures Act A) is c. both of these designedto prevent lenders: d. neithLerof these firfrom collecting excessivereserves from as defined by HUD lQ. In installment ,title passeswhen: b. from collecting money in advancefor payme the deed is placed in escrow the borrower'staxes the deed is delivered to the buyer c. from collecting more than one year'staxes in c. the buyer exercisesthe liquidated darrrageclause advancefrom borrowers d. the sale has been closed d. noneofthese definitionswith words 3. In VA financing, discount points are paid by: a. the seller uirr:sdisclosure of the annualpercentarge rate b. the buyer I c. divided equally betweenbuyer and seller that borrowers receivesmeaningfirl information feither buyer or seller the costof new first mortgag" \a 4. To obtaina loanfrom the FarmersHome l3f lresresbusiness establishm to meet accessibilitv Administration(FmtIA), the following is true: cf disabledpersons a. theborrower must have income of $10.000 less e bonowermust live in a rural areaof up to r4l liminerrydisclosure of loancosts to bonrowerC. 20,000in population c. anyperson may receive an FmHA loan 15i on installmentbasis I (J d. only city propertyowners qualify for FmFIA \_- l6l ingsplan for employeesp 5 following is true of FHA-insured loans: ' the FHA insuresloans only on l-4 unit famil r7) vendeereceives residences , \,/ b. a sellercannot pay discount points 181 s avoidanceofa corporatet^ ^- c. the governmentcontrols FHA interestrates d. no downpayment is required 19t shrort-term,high yield foans f 6. Primarilylocated in the eastemsection of the Uni ionof liability States,these banks favor long-terminvestments: b a. commercialbanks a. T'S insurancecompanies b. mutualsavings banks c. confi'act creditunions d. e. it uni,on 7. Concerningmortgage brokers and mortgage f. al banks which statementis most correct? o -faith D estimate a. a banking firm can never perform both roles h PA b. all mortgagebankers are also mortgage I T -in-lending act ^ definition J title a mortgagebanker initially lendshis or her !f monev d. a mortgagebroker initially lendshis or her money PRO-ED's Mini-Quiz for Chapter 11. property is encumberedby a conventional with a prepaymentpenalty. It is soldfor cash: 1. This mortgagestates that the borrower will share the penalty need not be paid benefits with the lender: only part of the penalty is paid graduatedpayment plan the penalty must be paid sharedappreciation mortgage the new buyer pays growing equity mortgage d. blend mortgage legal right to delay meeting a money obligation: a moratorium 2. A mortgagethat allows retired home owners to b. pledge paymentsfrom the equlty they have acquired in c. escro\ry home is the: d. a. rollover mortgage b. variable rate mortgage 10.A mortgagecovers: c. renegotiablerate mortgage a. acreages reverseannuity mortgage b. apartrnents 3| only land under developmentfor a subdivisiion 3. en mortgageis paid, the mortgagor should houseand fumiture a satisfactionpiece a releaseofa deedoftrust dellinitionswith words c. a reduction certificate d. noneofthese ll. Re ymentof a debtin a seriesof per payments { 4. A cunently popular mortgagethat calls for monthl 12.Ex ssofproperty value above the de paymentincreases each year with the increaseapp to the principalthus providing for a shorter 13.Pro ideslbr power of salein foreclosureproceedings f'1 periodof l0 to 15years as opposed to thetraditi 25- to 30-yearloan: for tlre useof moneyA' a. sharedappreciation mortgage graduatedpayment plan thal;consider lender to have title to mortgaged growing equity mortgage mortgagedifferential allowance program d termrinterim financing 5. This clausepermits the mortgageeto chargea $ to borrowerif the loanis paid off prior to its who pledgesproperty to securea loan 1 a. assumptionclause -".4 !f prepaymentpenaltv clause 18.Len whoreceives pledge of propertyto securedebt T balloon payment b d. accelerationclause a lien right to a debton realproperty fl 6. Money kept on deposit with the lending agencyas 20. r lhaslegal rights, lender holds equitable rights security for a debt until the extra amount loaned is I offis referredto as: a. in a. a foreclosure b. an estoppelcertificate c. len a pledge d. )qu a blend e. f. po truction loan 7. This mortgage,though not g commonly used, is for a b' l()n specificperiod of time anddemands full payment the h. icial foreclosure endof the period: i. a. directreduction mortgage j b. constructionmortgage c. junior mortgage term mortgage

t0 PRO-ED's Mini-Quiz for Chapter 12. are used to determinethe: broker'scommission l. The lending institution generally is responsible title irnsurancepremium of the following EXCEPT: purchaser'sshare ofproperty tax a. ordering a credit report costofsurvey b. ordering an appraisal c. obtaining verification of employment loanorigination fee on a $60,000loan would be: !l! obtaining seller's signatureon the deec ZYoolthe amount bonowed 2%;oof the purchaseprice 2. All of the following would be chargedto the bu $600 statement,except: $1,800 a. purchaseprice b. recording deed 10.An escrow agent acts on behalf of whom? c.-_ proration of taxes paid in advanceby seller a. buyer J sellersexisting mongage b. seller lender 3. Expensesshown on the seller'sstatement will in all partiesto a transaction all of the following except: I a. mortgagerelease Mt ng detfinitionswith words b. commission prorution of taxespaid J in advance ll. accountingofcosts and creditsto buyenand seller d. balanceof mortgage ! 12. goodtitle f 4. A housesold for $95,500and the ownersagreed I 7olocommission on the first $50,000 and5o/o onl 13. of registeringtitle I balance.The commissionpaid by the sellerwas: a. $3500 14.Af it signed by sellersstating there are no unpaid b. $s730 bil againstthe property - I ss77s h d. ss750 15. iding,expsl5esbefween buyer and sellerr C

5. Which of the following may serveas an closing t6. historyof the title 4- a. a title company b. a savingsand loan 17. corrditionof title ( c. an independentescrow company u all of these 18. ination of the abstractthat statesexarniner's I op )nJ 6. Whichof the followingdefects will ordinarilybe aminationof the record? 19.A or charge6f d afterdeath ofgrantor 20. Jf c. forgedsatisfaction piece d. missingheir a, abs b. c ing stirtements 7. Title insuranceprovides what kind of protection c. pro ation mortgagor'spolicy? d. t I anydefect in title which resultsin lossof the e. insurance - owner'sequity f. the amount of unpaid principal owed to a o search caseof a total lossfrom pre-existingtitle h. waivelr c. proration errors made in a closing statement i sJ/stem d. lossesfrom a fire J. opinion

ll PRO-ED's Mini-Quiz for Chapter 13. cooperative conversion 1. All of the following concerningcondominium la c. reconstruction true, except: d. restoration a. an owner may will his or her unit b. ownershave an undivided interest in the following are true of cooperativeshareholders: elements a. they may have individual mortgageson ownershave a proprietary their units fl lease b. they will receive a separate d. bill for taxes on their ownersare individually taxed on their unit unit c. They hold fee simple title to their unit 2. Charlie Jonespurchases apartment house in a own sharesor stock in the cooperative areaand plans to convert it to condominiums. people who buy the units will purchase them joint 101Th typeof ownershipgives fee simpletitle: with others.This is an example of: a. a proprietary lease a. vacation license b. ownership of cooperativeunit time-share ownership cond

6. Title to a cooperativebuilding is held by: a. a nonprofitcorporation b. individualshareholders c. Fir c. a commercialenterprise d. mlum d. proprietary a lease e. lve f. YACa n lioense islation governing a condominium is referred to o D' {ime ate horizontal property act h. program b. free cooperativeact i. lease c. areaproperty act j. areas d. all of these

8. Whenan apartmenthouse is soldto a purchaserwhd in turn sellsthe individualunits, giving feesimple title to the buyers,this is referredto as:

l2 PRO-ED's Mini-Quiz for Chapter 14. fee estateis: the tenants interest 1. When the tenancyis terminable at the instigation the mortgageesinterest either party, the tenancy is known as: the lmdlords interest ^ { tenancyat will the governmentsinterest b. tenancyat sufferance c. tenancyfor years of a leasenormally would d. joint not occurwhen: tenancy propertyis condemned failur:eto payrent whendue 2. The lessee's interestis called: the tenantdies a. the leasedfee interest conslructiveeviction by the tenant fttre leaseholdinterest c. the reversionaryinterest deflnitions with words d. the remainderinterest arlsumesall or a portion of expensies 3. An owner-tenantrelationship would most likely \ establishedby: t2) parysa flat fee plus a percentagebar;ed ori a. tenants at sufferance oIbusiness b. joint tenancy tenantsin common l3 leasesprope(y back from purchas", periodic tenancy { t4 paty mayterminate the lease 4. The commerciallease which is most adv e owner of an offrce complex: l5 remainsin possessionafter lease expires net lease G__ b. percentageleast paysonlyrent c. graduatedlease C d. grosslease do'esnot live up to leasetermsfl An agreementto give overthe entire U balanceof is for a specified period, no set termination leasewould be: date a. apercentagelease marybreak lease if lessorviolates lease terms b. sublet the balanceof lease ,)" llassignment of lease callr;for periodicincreases d. reassignmentcontract h at sufferance 6. The leasethat calls for periodic increasesor ic tenancy would most likelv be: index lease l'e eviction b. an air lease at will c. periodic lease leaseback d. tenancy at will eviction llease 7. The followingpeople lease property in preference lease purchasing: a. uncertainof permanencyin a locality b. insufficient down paymentto purchasea home _c. studentsliving away from home f alt of these

8. Theproperty most likely to be rentedunder the a percentagelease: J_ singlefamily dwelling Da sPortinggoods store c. an aparfrnent d. a gardenplot

t3 PRO-ED's Mini-Quiz for Chapter15. insullicientparking space hire iacompetent cleaning and maintenance staff 1. A propertymanager is liable to a tenantfor: advertisecontinuously so no vacanciesoccur a.- keepingand maintaining fites supe:rvisetrained specialists such as engineers and ==Sgining receiptsupon coiecting rent electricians c. negotiatingthe insurancepolicy for tenant's belongings : shoprpingcenter that offers a broad mix of shops, d. returningall of the securitydeposit whenthe ludin6;several nationally recognizedstores such as vacatesthe premises or lDaytons: stflp center 2. As a property manager,the mainpurpose for regional center a marketanalysis on a buildingwould be: neigtrborhoodshopping center a. to determinethe remaining economic value d. all oI'these b. to decreaserents c. in contemplation of a sale l0i A ignationthat is issuedto personswho fulfill rrrurtrastrrsnrs il.r ites as outlined by the Institute of ReralEstate 3. An apartmentproperty managernotices an m Certifred Property Manager the demandfor rental units. This would indicate a lof b. RegisrteredManager of Real property the following, except: Real EstateManager a. high interestrates on mortgage loans d. CertilhedReal EstateManager _ b._ lack of money in the mortgagemarket abundance f,* of disposableinro-, ng de:finitionswith words d. high interestpaid 6 on money market glebuilding of4 to 10 bays f 4. Property maintenance falls into these four buildingswith l5 or moreretail bavh a: preventive,corrective, ordinary, and unordi pt.u.ntive, corrective,constructive, |, andord propertymanager Cr- - -. preventive,ordinary, unordinary, and b d. corrective, constructive,budgeted, and lve betweenmanager and owner U 5. Adequatesafety precautions to ensurethe tenant's 15.A ing of expensesand cl mrges safetycould include all EXCEpT: b a. well-lighted entriesand hallways ionship betweenowner and manager rQ b. television monitors at entries U locks and keys every five years offircebuilding group #.rt*ging-- or of buildings i d. providing security guardsat shopping malls natio recognizedstores plus a lbroadmix of primary goal of the property manageris: ops market the client's spaceto yield greatestnet to advertisedaily when vacancies occur rernt,provides maintenanceservicers. and to market the spacequickly even if the rents vacancles below market value d. to selecttenants for their financial responsibi 20. srorvicesfor farmlandowner only a. a b. t budget 7. The farm managerwould be concernedwith all of c. manager following, except: d. Cernter a. evaluatethe farm's conservationpractices e. manager b. take preventivemeasures to eliminate soil f. Ftri center c. selectthe best tenant possible o b' fidr iary _t hire a competentmaintenance staff h. pei shoppingcenter i. complex J. Theoffice spacemanager would be concernedwith j. contract of the followingexcept: a. tenantscreating excessive traffic mayresult in

14 Chapter 15 Story Problem rop rty A

Var ableexpenses mai rtenancp =$ .)i' 5 =$ utili ies -r6 r Tot I varizr$leexp. =$ ffiie -a( tal improvements )a\ rting =$ 3ts rair t:$_toL_ Iot I capil;4lexp. :$ {{ 5,} ]ub ract tol@lexpenses $'alat rlet nonthly income :$iht,;a - fti\ ract h[anthlv debt service $ Qn:{r T^ thlv cash flow l+ li"b !t

l5 PRO-ED'sMini-euiz for Chapter16. building value capitalization rute 1. Jerryand Jane Randall are in the 30%otu< neltincome Theysell their home for $63,500and net $g,500. estimatedvalue Theypurchase a newhome for $75,g50.Which c thefollowing applies? costplus any capitalimprovements a. theyhave a gainof is the: $12,350 net salesprice b. theyhave no capitalgain adjustedbasis they will pay gains 4 of 30% on $12,350 leverage Ino taxesare payableat this time esllimatedvalue 2. A benefit provided by depreciation is a: sallesprice is a. tax credit determinedby: cost plus capital tax shelter improvementsless depreciation J gro$ssales price c. tax evasion less depreciation salesprice d. tax basis Bro$s lessany costsofsale adjustedbasis plus depreciation

3. An investor considersall of the following reasons ng dpfinitions with words invest in real estate,EXCEpT: a. cashflow invrostmentthat actsto reduce equitybuildup incomet*., f quick liquidiry improvements d. appreciation to originalbasis G

ging incomeproducing property for a like 4. In the exchangeofone propertyfor another,the C moneywhich is usuallyneeded to completethe transactionis referredto as: er returnon an investment a. a tax shelter J boot whendepreciated property defenedpayment is solrt b d. secondmortgage useof otherpeople's money A* 5. Depreciation on a property: itial c,cstofthe propetry a. representsan out_of_pocketexpense to an Cl investor are greater than income produced i is a deductionagainst income taxes occursonly with residentialproperty n estimatesof a property'sfuture appliesupon the decreasein saleof a property L 6. A poolingagreement in which individualsinvest investmenttundswith others their financialresources together is a: t1 a. participation D syndication c. packagingplan -defenredexchange d. blanketing plan ls ialion 7. Thenumber of yearsan investmentwill be valuable sheltr:r to an investor is referredto as: ustedbasis a. defened payment venture b. boot ive cash flow fusetul life flovr d. tax shelter

Thepurchaser who decides to buyincome property will calculatethe fufure income and expenses to determinethe:

l6 PRO-ED's Mini-Quiz for Chapter 17. recpntsales of similarproperties

l. An important aspectto consider in determining Whatapproach is bestused in appraisirrga special estatevalue is: purposebuilding? condition of property the co$t aPPtou"lt location of the properfy corrfipat{sonapproach c. zoning restriction of the area miafket data approach d. financing that is available inrcomoapproach

2. Appraisal by the market data method considers r apppisal would be made behaviorof: on an apartrnent ilding for all of the following reasonsi,EXCEpT: for insurancepurposes for purposesofincreasing c. insurers rents to {etermineif it meetshealth d. attorneys standards to dleterminemarket value 3. A specialassessment against a property: ing definitionswith words a. exemptsthe property owner from paying propertytaxes attachedto prop.rty{ JcSates a lien on the properqv c. changescovenants on the property ing to value I d. placesrestrictions on the property annroach 4. Who mayan appraisergive informationto concerningan appraisal? $ imateof value(L a. owner b. holderof a lien lify of a building C personor institutionauthorizing the appraisal holderof ajunior mortgage n importantfactor when appraising ,, \J 5. Which of the following is not essentialwhen of replacingwith a similarstructure the market data approach to appraisals? @ a. squarefootage \ o4 net income produced p b. location costof hrrildino 1| net retumover period of time Ir d. trme mostprobable price a willing sellervvill sell for 6. The appraiserconsiders all of the followingwhen a uriffiingbuyer will buy for, neitherbeing under applyingthe incomeapproach to value,EXCEpT: pressure a. the owner'soperating statement o*l"l: incometar bracket J c. capltalzatlon rate iapproach d. depreciation allutility vAlue 7. All of the followingare examples of functional apprqach obsolescence,except: ities a. a 5-bedroom housewith onebath dl4taapproach b. a 3-storyoffice buildingwithout an elevator h ellldbest use 4-bedroomhouse Iu on a70 x 100lot I valorenr d. an obsoletekitchen J

8. All ofthe followingare considered in the cost approachto value,EXCEpT: a. landvalue b. squarefootage of building c. location

t7 PRO-ED's Mini-Quiz of Chapter 4. lding codesdetermine the following:r architecturalstyles of buildings l. The covenants,restrictions and conditions specifi materials and constructionstandards for in covenantsof a plat that are enforceablemay bu:ilSings include all, except: both ofthese a. type and styleof structurethat may be built neither of these l;" anocoior of purchasers c. setbacksfrom the perimeterof the property deed festriction may be usedto: d. heightof fencingerected restfict architecturalstvles preservethe view from a particular llot 2. Melody Landon discoversthat her property has both of these encroachedupon by a neighbor'sfence. She may: neither of these I. requestthat the fence be removed II. be eligible for damages ing;faws are enactedto: III. have to acceptthe encroachmentas an prevent demolition of historic buildings by prescription preslerveand maintain values of a neighborhood a. I only both of these b. II only neither of these c. II and III I I and III ng dpfinitions with words 3. The followingstatement conceming zoning useis of right to regulatehna use\4 i ;:lil:f,3H:i,:l#J#'.-n'i fff'J right {o use,that is revocable1 c. when zoning remainsconstant without a in use any decline in land value prevented is fringelnent on another'sland { d. zoning directly affects functional tkratare built on the lot line A.. A conceptwhereby single family housesare built thelot lineis: patible,stabilizes valu 'a) a. clusterhousing lots high densitylot lines latqsand controls use of land f zerolot line zonedlot line or restrictionthat regulateskurd use (-

5. Whichof the followingmay obtain an easement oflwaythrough another's fanA j- gross? a. the TV cablecompany b. the telephonecompany c. a oineline all of these oeswith land,as a right of waV I f 6. Whatterm least describes an encumbranceto a property? a. a deedrestriction I u poorloor plan tDc. a mongage d. a lease lot line 7. The descriptionthat best describes an easementof lce pqwer necessity: is issuedfor an individual'slifetime ariseswhen there is a specialneed, as a landlockedowner c. is not hansferable d. all ofthese

l8 PRO-ED's Mini-Quizfor Chapter19. ts in the Happy Acres subdivisiono,n its ultifamily mortgages.For this rezronthey decided l. A homeowner publishesan advertisement for the sa to nnakefurther apartment loans in thartparticular of herhome "ForChicanos Only," underthe Fair until they could investigatewhy the - HousingAct thisis anexample of: linquenciesoccuned. The decisionof l,iberal qr- block busting c. redlining vingr;& Loan is lawful because: discrimination d. trouble making Fair HousingAct doesnot cover savings& loans mortgageson apartmenthouses are not covered 2. Title I of the Americans with DisabilitiesAct requ redlining is not prohibitedby the act the following compliance: their actionsare not discriminatory a. provisionfor hearingand speechimpaired must be made 9. o encouragea prospectivebuyer from looking for b. accessibility public to establishments ng;in a particulararea is considered: c. accessibilityto serviceholdings redlining f,steering #il:nty,frTlflT;trjnationagainst quarin ed blo,ckbusting d. familialstafus

the Fair Housing laws the complainrt must be 3. Mrs. O'Brien is a RomanCatholic and residesin a led within: plex that sheowns. Under the Fair HousingAct she six months oneyear discriminatingif she: I 60 days d. nine months a. rentsonly to women b. rents only to RomanCatholics definitionswith words c.- placesa sign in yard the discriminationbased on race,colo,r, religion, flraavertisesihat shewill rent only to women origin, sex,handicap, or familial r;tatus I 4. An apartmentcomplex has few minorities living in tl ws that prohibit disc nation units. Which of the following is/areillegal practice(s I accordingto the federalFair Housing Act? vers ilamilial status V L requiringapplicants to give three references II. requiringlarger deposit of theminority appli awful distinction basedon the group a O.r.on { a. I only c. both I and II to is flIIonly d. neitherI nor II rights of peoplewith disabilities 5. Convincingowners to sell becauseof a possible introductionof minority goups in a neighborhoodis nE,an owner, for profit, to sell by threaterung referredto as: t of minority goups into a neighborhood I uto.tbusting c. discrimination b. redlining d. reprisal of Housingand Urban Develolpment4

6. A broker acceptsa listing from a propertyowner ndersrefusing to loan in certain areas(-- setsa higherprice to minorities and a lower price to white prospects.Under the Fair Housing laws: miting choiceby channelinga buyer into specific a. thereis no violation unlessthe propertyis to be iehborhoods financedby FFIA or VA CL t b. - only the selleris in violation ibits; 4, 24. discriminationbased on race V the brokerand salespersoncould be liable -DUottr damases a. busting d. thereIs not violation sinceit is availableto b. Act of 1988 minority purchasers rn€i ng 7. JackJolly, a realestate agent, began soliciting in the Honeydewarea. He told homeownersthat a "nonwhite"had movedinto the areaand properfy valueswould decline.Jack Jolly's actionswould be Rig;htsAct of 1866 - consideredall of the following EXCEPT: ir HousingAct of 1968and 1988amendments legitimateprocedure c. block busting r housing inducingpanic selling d. illegal procedure

8. The Liberal Savings&LoanCompany had several

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