Question 1

Under an option to buy, the ownership of land will change when the

Options :

A : option is signed by the parties.

B : optionor does not fulfill the obligation.

C : optionee exercises the option.

D : specified time has expired.

Answer: C

Question 2

When lending standards are tightened, lenders typically require

Options :

A : a higher loan-to-value ratio.

B : a lower loan-to-value ratio.

C : a balloon payment after 5 years.

D : a waiver of the Equal Credit Opportunity Act.

Answer: B

Question 3

Which type of deed provides the purchaser of real estate the greatest protection?

Options :

A : quitclaim deed

B : trustees deed

C : general warranty deed

D : deed in trust

Answer: C

Question 4

Which of the following is incorrect regarding carbon monoxide inspection?

Options :

A : There is no additional fee if the inspection is done at the same time as the smoke detector inspection.

B : The inspection must be completed by a building inspector.

C : The inspection must be completed by the local fire department.

D : The inspection must be completed as a prerequisite to sell a residential property burning fossil fuel.

Answer: B

Question 5

On which of the following must the landlord pay interest when collecting first month, last month, and security deposit?

Options :

A : Only if they are deposited in an interest-bearing account

B : Security deposit and last month

C : First month only

D : Last month only

Answer: B