A property owner has decided to do some landscaping work on his yard. He has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an example of... - improvements A property owner has a waterfront lot on a stream. He has the right to use the water from the stream. What is this right called? - riparian A tenant is aware that his lease will expire at the end of the month. He has begun to disassemble his display cabinets and shelves. Which of the following statements about this is true - the tenant can take these as they are trade fixtures A seller is attending the closing on his property. The title company has discovered an unsatisfied M&M lien on the property. Which of the following is the most likely reason for the lien? - plumbing work that was completed but never paid for A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is an example of... - encroachment A father gives his son a life estate on a property. The son leases the property. The tenant dies. What happens to the property? - it goes back to the son until he dies A man leaves his second wife a life estate in their home after which the property goes to his children from his first marriage. The children... - are remaindermen Which of the following statements about an easement is true? - an easement is a benefit to the dominant property owner P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P do? - file a suit for partition A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and D have? - tenants in common Under what right can the government change property use from commercial to residential only? - police power Ownership of the common areas of condominiums is most likely to be: - tenancy in common What should a buyer do to ensure that his is getting the best title to real property? - get a general warranty deed Which covenant in a deed guarantees that the owners will not suffer or be disturbed by any claims on the property? - the covenant of quiet enjoyment Excess money at a foreclosure sale goes to... - the borrower After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the foreclosure sale. This is called: - right of redemption The required distance between buildings and a federally protected endangered species wetlands is an example of... - a buffer zone A couple purchased a condominium. The complex has an exercise room for all residents. The couple does not use the exercise room and does not want to pay the monthly fee for the use of the facility. What can they do to avoid this fee? - they must pay the fee as they have a tenancy in common interest in all common areas Which of the following is personal property? - a lease A landlord leased space in his new retail property to an inexperienced business person. Based on location and the type of business, the landlord believes it will be a great success. What type of lease can he enter into with the tenant that will allow the landlord to benefit from the tenant's success? - a percentage lease A buyer has purchased a property and after closing the seller will continue to occupy the property. This is an example of... - sale and leaseback Your client will be able to qualify for a property they wish to purchase in about 6 months, after they had an opportunity to reduce their consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter into with a seller that will allow them to occupy the property now and purchase it within the 6 months? - lease with an option to buy Tenants have signed a 3 year lease on a property. In the second year the owner dies and his heirs inherit the property. They give the tenants notice to vacate. What is true? - the tenants can stay until the end of the lease A developer decides to build a commercial property in the middle of a residential subdivision. What is required? - a variance A zoning ordinance would affect which of the following? - the concentration of housing in a residential area If a person dies without a will, who receives their estate? - spouse and children What are the requirements/ criteria for real estate to have values? - demand, utility, scarcity, transferability What principle of value defines the most important factor for appraisal? - highest and best use What approach would an appraiser most likely use to value a residential rent house in neighborhood where a majority of the homes are leased? - income approach A licensed broker is advertising that he will perform a free appraisal if you contact him for a listing appointment. He is not in violation of the law... - if he is a licensed appraiser Which of the following is NOT an example of functional obsolescence? - deferred maintenance According to the Statute of Frauds, which of the following leases must be in writing? - a lease for more than one year Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next 6 months. What type of contract should he enter into with the seller? - an option contract A signed sales contract that has not yet gone to closing is... - executory When does an offer become a contract? - When the offeree gives the offeror notice of the acceptance Which of the following statements is true about the duties of an agent according to the common law of agency? - an agent must treat both clients and customers with honesty and fairness A property manager is hired and signs a management agreement with the owner. At this time, the property manager is... - a general agent A buyer and seller have negotiated a contract on the seller's property with a closing set for June 14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this time, what is true? - the contract is voidable by the buyer A licensee is representing a seller in a commercial transaction. The property is under contract and all contingencies have been met. The listing agent learns the State Department of Transportation has authorized the construction of an exit ramp to the interstate right behind the commercial property. The exit ramp will greatly increase the value of the seller's property. What should the agent do? - tell the seller and encourage the seller to complete the negotiated sale