Real Property
A test
2.Arecorded subdivision platis used in the
a.lotandblocksystem.
b.geodeticsurvey system.
c.rectangularsurvey system.
d.metesand bounds system.
15.Abuyer tookdelivery ofthedeed tohis new house butdid notrecord thedeed or takepossession of theproperty.Under thesecircumstances,the
a.buyer'sinterestisnotfullyprotectedagainstthirdparties.
b.transferofthepropertyfromtheseller is ineffective.
c.deed is invalid after90 days.
d.deed is invalid aftersix months.
19.Whatdocumentprotectsagainsthidden risks such as forgeriesand loss due todefectsin thetitle, subjecttospecificexceptions?
a.Abstractoftitle
b.Titleinsurancepolicy
c.Certificateoftitle
d.Chain oftitle
21.Aperson owned a parcel ofland.Subsequenttotheowner'sdeath,theprobatecourtdeterminedthe distributionoftheland in accordance withthestate'sstatutes.Thisprocess is called
a.escheat.
b.condemnation.
c.adverse possession.
d.probate.
50.Under theTorrenssystem,
a.titlepasseswhenthegrantee'sapplicationforregistrationhasbeenapprovedandthe realestate hasbeenregistered.
b.theTorrensofficialperformsexactlythesame functionsas therecorder ofdeeds.
c.theoriginal deed is mailed tothebuyer afterithas been registered.
d.theregistrationofa titlecan be canceled by theowner atany time.
52.How many acres are containedin a parcel withthefollowinglegal description:theNW¼oftheSE¼ and theS½oftheSW¼oftheNE¼ofSection4?
a.50 acres
b.60 acres
c.40 acres
d.80 acres
53.Titleinsurance would cover all ofthefollowinghidden defectsdiscovered afterclosing and notlistedon thetitlecommitmentEXCEPT
a.an incorrectlegal description.
b.a wrong name on a recorded deed.
c.a claim toownership by thespouse ofa formerowner.
d.a recordedmortgagesatisfactiondocument.
64.The MOST common method of describing real estate in Alabama is a combination of
a.metes and bounds and government survey.
b.metes and bounds, lot and block, recorded plat maps, and rectangular survey.
c.lot and block and government survey.
d.rectangular survey and government survey.
71.How many acres are in thepropertydescribed as follows:theNW¼oftheSW¼oftheNE¼ofSection 16?
a.5+
b.20
c.10
d.40
74.Acustomhome containing4,320square feetwas recentlyconstructedon a $145,000lot.Construction costswere $80.25per square foot,and otherfeesand coststotaled$12,785.Whatwas thetotalcostof theproperty?
a.$504,465
b.$145,000
c.$346,680
d.$359,465
85.Granteeis toa deed as devisee is toa
a.trust.
b.estate.
c.leasehold.
d.will.
86.Theclause in thedeed thatconveys therightsand privileges ofownership is called the
a.habendum clause.
b.grantingclause.
c.appurtenanceclause.
d.acknowledgment.
87.Thetypeoftitleinsurance thatwill protecttheowner and heirs is called
a.a lender'spolicy.
b.a leasehold policy.
c.anowner'spolicy.
d.a certificateofsale policy.
94.Whatis thedepthofa lotthatcontains9/10ofan acre and has a frontthatmeasures 150'?
a.216.36'
b.322.67'
c.261.36'
d.323.67'
98.Theseller conveyed a quitclaimdeed tothebuyer.Upon receiptofthedeed,thebuyer may be certain that
a.theseller owned theproperty.
b.thereare no encumbrances againsttheproperty.
c.thebuyer now owns thepropertysubjecttocertainclaims oftheseller.
d.alloftheseller'sinterestintheproperty,ifany,belongstothebuyer.
116.Awoman conveys a lifeestatetoher grandson and stipulatesthatupon her deaththeestatewill pass toher son-in-law.Theson-in-law has
a.a reversionary interest.
b.an estateforyears.
c.a remainderinterest.
d.a legal lifeestate.
118."BeginningattheSEcorner oftheNE¼ofthesection,thendue west5,280feetmore or less totheSW corner oftheNW¼,thennorthalong thewestline ofthesection2,640feet,more or less,totheNW corner ofsaid NW¼,thenin a straightline tothepointofbeginning."How many acres does thisparcel contain?
a.80
b.240
c.320
d.160
119.Anowner divides a parcel intoseveral lots,one ofwhich is completelysurrounded by otherlotsand has no streetaccess.Whichofthefollowingis TRUE?
a.Themunicipalitymustconstructa streettocreateaccess.
b.Theowner mustcreatean easementby condemnationtoprovide access.
d.Aneasementby prescriptionshould be granted.
d.Aneasementbynecessityshouldbecreatedforthelandlockedparcel.
137.Whichapproach toestimatingvalue would be mostusefultoan appraiser asked toestimatethevalue ofan existingstripshopping center?
a.Incomeapproach
b.Salescomparison approach
c.Costapproach
d.Grossrentmultipliermethod
B test
3.Theuniqueness ofland and itsinabilitytobe substitutedis called
a.scarcity.
b.nonhomogenity.
c.permanence ofinvestment.
d.nonheterogenity.
4.Whichofthefollowingtechniqueswould an appraiser use in thecostapproach tovalue?
a.Owner'soriginal costofthebuilding
b.Salesprices ofsimilar buildings in thearea
c.Assessedvalue ofthebuilding
d.Estimatedreplacementcostofthebuilding
10.Inwhich ofthefollowingsituationscould a quitclaimdeed NOTbe used?
a.Toconvey title
b.Torelease a nominal real estateinterest
c.Towarrantthata titleisvalid
d.Toremove a cloud on title
19.Whatis thetermfora deed thatcontainsno express warranties?
a.Abargain and sale deed
b.A quitclaimdeed
c.Awarrantydeed
d.Adeed oftrust
22.Accordingtoa broker'scomparativemarketanalysis (CMA),a propertyis worth$225,000.The homeowner boughtthepropertyfor$190,000and added $50,000in improvements,fora totalof$240,000.Thepropertysold for$222,500.Whichamountrepresentstheproperty'smarketvalue?
a.$225,000
b.$190,000
c.$222,500
d.$240,000
26.Anappraiser using theincome approach toestimatethevalue ofa propertyuses which ofthefollowing applications?
a.Capitalization
b.Depreciation
c.Appreciation
d.Equalization
27.Afarmerowns theW½oftheNW¼oftheNW¼ofa section.Theadjoining propertycan be purchased for$2,300per acre.Owningall oftheNW¼ofthesectionwould costthefarmer
a.$600,000.
b.$322,000.
c.$120,000.
d.$480,000.
28.Ina situationwhere a homeowner conveys propertytoher uncle witha deed,and thentheuncle records thedead,when did titletothepropertyactuallytransferor pass totheuncle?
a.Upon delivery and acceptanceofthecontract
b.Upon recording ofthedeed
c.Upondeliveryandacceptanceofthedeed
d.Upon thedelivery ofconsideration
36.Whichofthefollowingis theBESTway toensure thatthereare no encroachmentsand verifythe boundaries ofa parcel ofland?
a.Geta spotsurvey
b.Writea legal description
c.Findthemonuments
d.Verifythebenchmarks
43.How many acres are in a propertythatis measured withthefollowinglegal description:theS½ofthe SE¼oftheNW¼oftheNE¼ofSection7?
a.2.5acres
b.10 acres
c.20 acres
d.5 acres
66.Whichofthefollowingparcels ofland is thesmallest?
a.Twosections
b.Twosquare miles
c.1,280acres
d.5% ofa township
68.Theprimary survey line running northand southin any area described by therectangularsurvey systemis its
a.townshipline.
b.base line.
c.range line.
d.principalmeridian.
73.Whichstatementis TRUEregarding a special warrantydeed?
a.Thegrantoris making additionalwarrantiesbeyond thosegiven in a warrantydeed.
b.Thegrantorretainsan interestin theownership.
c.Thegrantoris warrantingthatno encumbrances existagainsttheproperty.
d.Thegrantor'swarrantiesare limitedtothetimethegrantorownedtheproperty.
74.Thetermimprovements,when referringtoreal estate,includes
a.shrubbery.
b.trees.
c.lawns.
d.sidewalks.
75.Whatis thesize ofa lotthatis 1/4ofa mile wide by 1/4ofa mile long?
a.120 acres
b.10 acres
c.80 acres
d.40 acres
73.Whichstatementis TRUEregarding a special warrantydeed?
a.Thegrantoris making additionalwarrantiesbeyond thosegiven in a warrantydeed.
b.Thegrantorretainsan interestin theownership.
c.Thegrantoris warrantingthatno encumbrances existagainsttheproperty.
d.Thegrantor'swarrantiesare limitedtothetimethegrantorownedtheproperty.
74.Thetermimprovements,when referringtoreal estate,includes
a.shrubbery.
b.trees.
c.lawns.
d.sidewalks.
75.Whatis thesize ofa lotthatis 1/4ofa mile wide by 1/4ofa mile long?
a.120 acres
b.10 acres
c.80 acres
d.40 acres
84.Whichofthefollowingtermsidentifiesthephysical characteristicofreal estatethatmeans every parcel ofland is different?
a.Immobility
b.Indestructibility
c.Uniqueness
d.Scarcity
99.Thetypeofdeed in which thegrantingclause states"grant,bargain,and sell"is a
a.special warrantydeed.
b.general warrantydeed.
c.reconveyance deed.
d.bargainandsaledeed.
100.Whengrantorsdo NOTwish toconvey certainpropertyrights,they
a.mustnotetheexceptionsin a separatedocument.
b.may notdo so because thedeed conveys theentirepremises.
c.may notetheexceptionsinthedeedofconveyance.
d.mustconvey theentirepremises and have thegranteereconvey therightstobe retainedby the grantor.
102.Whichofthefollowingstatementsaboutthecovenantofquietenjoymentis TRUE?
a.Thegrantorensuresthatthetitlewillbegoodagainstthetitleclaimsofthirdparties.
b.Thegrantorguaranteesthatifthetitlefailsin thefuture,he or she will compensatethegrantee.
c.Thegrantorwarrantsthathe or she is theowner and has therighttoconvey titletotheproperty.
d.Thegrantorpromises toobtainand deliver any instrumentneeded tomake thetitlegood.
104.Thetypeofdeed in which thegrantingclause states"remise,release,alienate,and convey"is a
a.bargain and sale deed.
b.quitclaimdeed.
c.specialwarrantydeed.
d.sheriff'sdeed.
106.Aman has defaultedin thepaymentofseveral ofhis debts,and thecourthas ordered his propertysold tosatisfyhis obligations.Atitlesearch revealed several outstandingliens againstthepropertytobe sold. Whichofthefollowingliens has highestpriority?
a.Outstandingfirstmortgagelien datedand recorded one year ago
b.Realestate tax lienforthecurrentyear
c.Judgmentlien rendered and recorded lastmonth
d.Mechanic'slien forwork startedtwomonthsbeforethemortgagewas recorded
112.Thedateand timea documentwas recorded in thepublic records helps toestablishwhich ofthe following?
a.Abstractoftitle
b.Alienationclause
c.Marketabletitle
d.Priorityofmortgagesandliens
117.Adocumentthatprotectsagainsthidden risks such as forgeriesand loss due todefectsin thetitle, subjecttospecificexceptions,is called
a.a chain oftitle.
b.an abstractoftitle.
c.a certificateoftitle.
d.a titleinsurancepolicy.
118.Whichofthefollowingis a lien on real estate?
a.Easement
b.Recordedmortgage
c.Encroachment
d.Restrictivecovenant
125.Whichofthefollowingis definedas thehistoricalrecords ofall owners and encumbrances ofa specific parcel ofreal estate?
a.Titlesearch
b.Chainoftitle
c.Titlecommitment
d.Abstractoftitle
126.Whatis thelengthofa rectangularlotthatis 275 feetdeep and contains1\3ofan acre?
a.105.6'
b.106.5'
c.290.04'
d.158.4'
128.Aman owned twoacres ofland.He sold one acre toa neighbor and reserved forhimselfan appurtenanteasementover his neighbor'sland foringress and egress.Theman'sland
a.is theservienttenement.
b.isthedominanttenement.
c.can be cleared oftheeasementwhen theman sells thewithheldacre toa thirdparty.
d.is subjecttoan easementin gross.
136.Apropertyowner contractedtohave a swimming pool installedon her property.Whenthepool was completed,she refusedtopay fortheimprovement,and thecontractorfileda lien fornonpayment.This lien was MOSTlikely a
a.general lien.
b.special lien.
c.voluntarylien.
d.specificlien.
139.Asection
a.contains460 acres.
b.has a perimeterof5,280square feet.
c.can be any number from1 to50.
d.isonesquaremile.
140.Astandardrectangularsurvey systemsectioncontains
a.36 townships.
b.640 acres.
c.160 governmentlots.
d.160 acres.
C test
19.Whatis thedifferencebetweena general lien and a specificlien?
a.Ageneral lien cannotbe enforcedin court,while a specificlien can be enforced.
b.A generallienaffects allofa debtor'sproperty,whilea specificlienaffects onlya certain pieceofproperty.
c.Aspecificlien is held by one person,while a general lien is held by atleasttwopersons.
d.Aspecificlien covers real estate,while a general lien covers personal property.
28.Capitalizationuses annual netoperatingincome in order to
a.estimatepresentvalue.
b.determinereplacementcost.
c.establishdepreciation.
d.establisheffectivegross income.
30.Whichofthefollowingis NOTrequired fora deed tobe valid?
a.Legal description
b.Signatureofthegrantee
c.Executionofthegrantor
d.Consideration
31.Whatis thesale price ofa 1.25acre lotthatis 150 feetdeep iftheselling price ofthelotis $26,500per frontfoot?
a.$3,975,000
b.$932,800
c.$9,619,500
d.$1,442,920
36.Whichofthefollowingprinciples would affectthevalue ofsmaller homes in a neighborhood thatalso containslarge houses?
a.Progression
b.Increasingreturns
c.Competition
d.Regression
46.Theprocess by which governmentcan acquire ownership ofprivateland forpublic use is
a.escheat.
b.condemnation.
c.eminentdomain.
d.doctrineofpublic acquisition.
54.Inwhatway does a deed oftrustdifferfroma mortgage?
a.Obligationoftheborrower torepay thefunds
b.Redemptionrightsallowed afterforeclosure
c.Numberofpartiesinvolvedintheloan
d.Timeperiod permittedtocure a default
59.Aparcel ofvacantland,which is 80 feetwide on thestreetside ofthepropertyand 200 feetdeep,is sold for$200 per frontfoot.How much money would a salesperson receive forher 60% share in the 10% commission?
a.$640
b.$1,600
c.$2,400
d.$960
60.Inorder fora deed tobe valid,the
a.signatureofthegranteemustbe witnessed.
b.deed mustbe recorded.
c.granteemustsign thedeed.
d.grantormustbelegallycompetent.
61.By way of custom in Alabama, the buyer usually pays the deed recordation fee for a property being purchased. If you are working with a buyer, what would you advise him regarding the amount of the deed recordation tax for a $119,000 house?
a.$119.00
b.$129.00
c.$178.50
d.$238.00
64.Whichofthefollowingbestdefinesreconciliation?
a.Analyzingandweighingthefindingsobtainedbythedifferentapproachestoarriveat a finalestimateofvalue
b.Separatingthevalue oftheland fromthetotalvalue ofthepropertytocomputedepreciation
c.Loss ofvalue due toany cause
d.Theprocess by which an appraiser determinesthehighestand bestuse fora parcel ofland
70.Whatwould itcosttoputnew carpetingin a room measuring 15 feetby 20 feetifthecarpetcosts $16.95per square yard,plus a $250 installationcharge?
a.$815
b.$589
c.$505
d.$5,335
74.Anitais assigned toappraise a house in an area withvery fewsales over thepastyear.Oneofthe comparable propertiesshe chooses is a home similar tothesubjectproperty.Thehouse recentlysold as a foreclosureproperty.Whenwritingher appraisal report,whatactionwill Anitatakeas a resultof theforeclosedsale?
a.Make a positiveadjustmenttothevalue ofthesubjectproperty
b.Make a positiveadjustmenttothesalespriceoftheforeclosedhome
c.Make a negativeadjustmenttothesales price oftheforeclosedhome
d.Make a negativeadjustmenttothevalue ofthesubjectproperty
79.Ifa home sold as a mortgageforeclosuredoes NOTbring an amountsufficienttosatisfythe outstandingmortgagedebt,themortgagormay be responsible for
a.a defaultjudgment.
b.liquidateddamages.
c.punitivedamages.
d.a deficiencyjudgment.
102.Aparcel ofvacantland has an assessed valuationof$274,550.Iftheassessmentis 85% ofmarket value,on whatmarketvalue is theassessmentbased?
a.$315,732.50
b.$320,000.00
c.$830,333.33
d.$323,000.00
108.Adeveloper is planning a warehouse thatwill contain103,000square feet.Constructioncostsare estimatedtobe $62 per square foot.Ninety-fivepercentfinancingis available forthestructure.How much money mustthedeveloper putup tocompletetheproject?
a.$638,600
b.$5,747,400
c.$6,066,700
d.$319,300
115.Thetypeofdeed in which thegrantordefendsthetitleback toitsbeginning is a
a.generalwarrantydeed.
b.trustee'sdeed.
c.quitclaimdeed.
d.special warrantydeed.
116.Whichofthefollowingwould be considered acceptableevidence ofmarketabletitle?
a.Titleinsurancepolicy
b.Sellersigning a general warrantydeed
c.Deed oftrust
d.Copy oftheseller'scurrentdeed
128.Afour-bedroomhome thatonly has one bathroomwould probably have itsappraised value reduced due to
a.externalobsolescence.
b.curable physical deterioration.
c.functionalobsolescence.
d.incurable physical deterioration.
131.Ofthefollowingliens,which would usually be given highestpriorityin disbursing fundsfroma foreclosuresale?
a.Amortgagedatedlastyear
b.Unpaidrealestate propertytaxes
c.Amechanic'slien forwork startedbeforethemortgagewas made
d.Ajudgmentrendered theday beforeforeclosure
134.Ina standarddeed,which ofthefollowingclauses conveys therightsand privileges ofownership?
a.Exceptionclause
b.Seisinclause
c.Grantingclause
d.Acknowledgment
137.Escheatand eminentdomain are bothexamples of
a.adverse possession.
b.transfersoftitleby descent.
c.involuntaryalienation.
d.voluntaryalienation.