Practice test

Real Estate Practice Exam 3

Real Estate practice exam 3, Foundations tier: 25 questions on eminent domain, liens, mortgage clauses, and qualifying ratios, with explanations.

These questions are for study practice only and are not official exam questions.

Question 1

1

The right of the government to take private property for public use upon payment of just compensation is called:

Question 2

2

When a person dies without a will and with no legal heirs, the property passes to the state through:

Question 3

3

Acquiring title to land by openly occupying it without the owner's permission for a statutory period is called:

Question 4

4

An option contract gives the buyer (optionee) the:

Question 5

5

The mutual agreement of all parties to the terms of a contract is referred to as:

Question 6

6

A clause that allows a lender to demand the entire loan balance immediately if the borrower defaults is the:

Question 7

7

A clause that requires the lender to release its lien and return title once the loan is fully paid is the:

Question 8

8

A 'due-on-sale' (alienation) clause in a mortgage:

Question 9

9

A claim against a property to secure payment of a debt or obligation is a:

Question 10

10

Which lien generally takes priority over all other liens, regardless of when it was recorded?

Question 11

11

Time is of the essence in a contract means:

Question 12

12

A unilateral contract is one in which:

Question 13

13

The interest rate stated in the promissory note is called the:

Question 14

14

If a buyer assumes the seller's existing mortgage, the buyer:

Question 15

15

Restrictive covenants (CC&Rs) in a subdivision are:

Question 16

16

An appurtenant easement benefits:

Question 17

17

Which of the following would make a contract VOID rather than merely voidable?

Question 18

18

An express agency is created by:

Question 19

19

The 28/36 qualifying ratios commonly used by lenders refer to the maximum percentage of income that can go toward:

Question 20

20

Discount points paid at closing have the effect of:

Question 21

21

The process by which an assessor determines the value of a property for taxation is:

Question 22

22

A homestead exemption generally provides:

Question 23

23

Under the statute of frauds, which agreement generally must be in writing to be enforceable?

Question 24

24

The two main parties in a deed of trust besides the trustee are the:

Question 25

25

If a home sells for $250,000 and the buyer puts down 20%, the loan amount is:

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