Real Estate Principles
Quiz #5            February 16, 2000
Mr. Vice      Copyright©2000 by Glenn Vice

_____ 1. Tax liens can be filed for

a. unpaid real property taxes
b. unpaid income taxes
c. unpaid estate taxes
d. any of the above

_____ 2. Special Assessments

a. are usually paid with the property taxes
b. are levied to pay general government expenses
c. are levied against certain property owners, but CANNOT result in a foreclosure by the government and/or bondholders
d. are none of the above

_____ 3. A legal process whereby property, personal or real, is seized pending the outcome of a court action is called

a. an attachment
b. a judgment
c. a writ of execution
d. a "pendancy," indicating that the matter is still pending.

_____ 4. The Homestead Law

a. provides protection for up to $100,000 of the homeowner=s equity in the property in the event of foreclosure due to nonpayment of the mortgage
b. does not apply to a yacht or mobile home, even if it is the person's personal residence.
c. allows filing a Homestead on the principle residence and one secondary residence (vacation home).
d. would prevent the sale of the person=s personal residence for payment of debts if the equity was less than the amount of the Homestead exemption

_____ 5. Jane Doe, a head of household, is relying on an automatic homestead or dwelling house exemption. She is currently living in her "owner occupied home" and has $40,000 in debts and $45,000 in equity in the property. She decides to sell her residence and to purchase a new residence closer to work.. She would

a. immediately have to apply $40,000 of the cash from the sale to pay her debts
b. have up to six months to purchase a replacement personal residence without having to use the cash from the sale to pay the debts
c. be able to exercise her one time, $250,000 exemption to avoid using the proceeds from the sale to pay the debts
d. have no obligation, ever, to pay her debts with the money from the sale because of the homestead exemption

_____ 6. Barring any other factors that might adversely affect the contract, a contract by an emancipated minor to buy or sell real property is

a. valid
b. void
c. voidable
d. unenforceable

_____ 7. To establish a mechanic=s lien

a. a preliminary notice must be filed within 90 days of completion of the work by the contractor
b. a notice of completion must be filed by the contractor upon completion of the work
c. proof that the work on the car was necessary must be provided to the court
d. a preliminary notice must be filed by the contractor within 20 days of first furnishing labor, services, equipment, or material to the job site.

_____ 8. Which of the following is NOT an involuntary lien?

a. mechanic's lien
b. attachment
c. judgment
d. deed of trust

_____ 9. The fiduciary relationship

a. is one of trust and loyalty
b. obligates the agent to act in the best interest of the principal
c. requires the agent to obey all lawful instructions of the principal
d. is or does all of the above

_____ 10. Dual agency

a. usually has the designation 014 (007 twice)
b. eliminates the fiduciary relationship between the agent and the principals
c. is very common, though it presents problems of a conflict of interest
d. is very rare because it presents problems of a conflict of interest

_____ 11. The Asix-month rule@ for the Homestead exemption

a. allows the owner of an owner-occupied personal residence to deduct six months of property taxes from his/her taxable income each year.
b. applies to both the formal and automatic filing of homestead
c. only applies to the purchase of new homes, that is, new construction
d. allows the owner of a property for which the head of household has filed a formal homestead to sell the property and not have a portion ($75,000) of the proceeds from the sale immediately taken by judgment creditors.

_____ 12. When a broker receives a deposit from a prospective buyer, who does not ask that the deposit be held uncashed until acceptance of the offer, the broker must within three business days

a. give the deposit to the seller
b. put the deposit in escrow
c. put the deposit in a trust fund account
d. do any of the above.

_____ 13. An expressed contract

a. can be written
b. can be oral
c. can be either of the above
d. must always be written and must always be on a preprinted form

_____ 14. If all of the terms of a contract have been completed, then the contract is

a. executed
b. executory
c. void
d. exculpatory

_____ 15. A "promise for an act" is

a. a unilateral contract
b. a bilateral contract
c. always an implied contract
d. descriptive of most real estate listing agreements

Real Estate Principles             Quiz 5 - Answers

1.  D

2.  A

3.  A

4.  D

5.  A

6.  A

7.  D

8.  D

9.  D

10.  C

11.  D

12.  D

13.  C

14.  A

15. A