CT REAL ESTATE PRACTICE EXAM GENERAL FULL SOLUTION GUIDE WITH ACTUAL UPDATE Two lots of the same size are sold on a street. The lot on the corner sells for $20,000 more than the lot in the middle of the street. Which of the following characteristics MOST likely explains the price difference? - Situs How does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay? - Writ of execution What type of map is MOST useful for describing the terrain of a very hilly lot? - Contour map A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have? - Tenancy at will A major difference between freehold and nonfreehold estates is that all freehold estates - are of indeterminable duration Real property can be converted to personal property by - Severance A lawsuit for inverse condemnation may be brought by - a homeowner A deed restriction is applicable to the activities of - present and future owners. If conditions for purchase are included in a deed and these conditions are violated, what is the penalty? - Return of the property to the original owner. The terms "littoral," "riparian," and "appropriative" refer to - water rights. Which of the following BEST illustrates the concept and intent of a buffer zone? - Garden apartments located between a single-family residential neighborhood and a shopping center. A property owner died, having willed his real property to his two daughters. There is still a chance that they could lose the land for a variety of reasons, but it CANNOT be taken through - escheat An environmental impact statement typically describes the effects of a proposed project on factors such as - public health and safety
All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT the - straight-line method Which of the following approaches MOST reliably estimates the sales price of a single-family residence? - Market data A formal appraisal will ALWAYS be REQUIRED when the - lender wants to sell the mortgage to the secondary market. According to the principle of progression, a three-bedroom, one-story home is MOST likely to bring the highest sales price if located in a neighborhood in which - most homes are larger than the sale home. An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than - $250,000 A competitive market analysis is MOST often used for - setting a listing price Which rule-of-thumb version is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000? - GRM When a property owner uses his home as collateral for a loan and creates a lien in favor of the lender, title is held by the - mortgagor When the sellers are lending part of the purchase price, they may secure the debt either with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust is that - foreclosure is usually simpler and faster Regulation Z requires that the borrower be fully informed of all of the following EXCEPT - the total interest The FHA functions MOST like - an insurance company The purpose of usury laws is to regulate - interest rates charged by lenders Which of the following statements about discount points is FALSE? - They are computed as a percentage of the selling price A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to - demand immediate payment of the entire note A loan which requires the borrower to pay interest only until the maturity date (or due date), and then to pay the entire principal on the maturity date, is called a - term loan
An example of a fiduciary relationship is one which exists between the listing broker and - her client A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when - the seller accepts the offer One common method for controlling the problems created by conflict of interest in dual representation is - allowing a broker to designate separate salespeople within the company as legal representatives of each of the clients. The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that - he is no longer the listing agent When a principal authorizes an agent to perform a particular act or transaction, it is an example of a - special agency A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship? - Agency coupled with an interest. A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should - tell the seller that the buyer will pay more During the listing presentation, the seller questions the amount of commission to be paid and is told - the amount of commission is negotiable Which of the following events would AUTOMATICALLY cancel a listing agreement? - Property owner's death Under the terms of their listing contract, the owners may sell their house themselves and pay no commission. If their agent sells it, a commission will be due. What kind of listing contract do the owners have? - Exclusive agency listing A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should - tell the seller to disclose the termite treatment on the property disclosure. Which of the following is the first action to take when mold problems are found? - Identify and remedy the cause of the problems
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