State Exam Simulator (120 Questions)

The real estate industry is regulated by

Littoral rights concern properties’ water rights. Specifically, for littoral rights to take effect, the body of water must be a

The three unique physical characteristics of land are heterogeneity, indestructibility and

Which of the following terms describes two parcels that appear precisely the same although inherently different because each parcel has a unique location?

The customer in an agency relationship is known as the

Which of the following is the term used to describe the act of converting personal property to real property by attaching it to real estate?

Which of the following is a feature of a determinable estate?

Which of the following is a perpetual estate not conditioned by stipulated or restricted uses?

Which term is used to describe a life estate which endures over the lifetime of a third person?

Which leasehold estate does not have a definitive end date?

A form of co-ownership traditionally reserved for husband and wife, though now available for same-sex spouses in some states, is known as

Which of the following is a defining characteristic of joint tenancy?

A joint tenant may transfer his or her interest in the property to an outside party, but only as a

Which of the following statements is true regarding encumbrances?

The receiver of an easement right is referred to as the

The property enjoying the usage right of an easement is called the

For a prescriptive easement order to be granted, all of the following circumstances must be true EXCEPT

Which of the following is an example of an easement by necessity?

An example of an encroachment is

A lien terminates upon which of the following conditions?

The interest or right to obtain legal title to a property in accordance with a sale or mortgage contract between the legal owner and a buyer or creditor is known as

A mortgage loan transaction gives the lender the right to execute a strict foreclosure. To remedy default in this case, the transaction provisions will

The term “actual knowledge” is synonymous with which of the following terms?

The use of a written instrument to transfer title to real estate is called

Which of the following is an example of a voluntary transfer of title to real estate?

The warranty of quiet enjoyment assures that the

The overall general warranty covenant makes which of the following promises?

Which of the following leasehold estates allows the lessee the security of knowing the exact termination date?

In a leasehold estate, the landlord acquires a

Which of the following statutes requires that leases for a period exceeding one year must be in writing to be enforceable?

Under the Uniform Residential Landlord and Tenant Act (URLTA), a landlord is obligated to do which of the following?

A valid contract must include

A contract signed under duress may be considered

A failure to perform according to the terms of the agreement is called

If the parties wish to create a new contract to replace the canceled contract, such substitution is called

The underlining determinants of supply and demand are that markets

The primary forms of government influence on real estate markets are

Regional and national economic forces influence the local real estate market in the form of

A valid mortgage or trust deed financing arrangement requires

The use of real property as collateral for a mortgage loan is known as

Which of the following theories describes a state whose laws give a lender on a mortgaged property equitable title rather than legal title?

Which of the following identifies an account required by the lender as periodic payments of real estate taxes and insurance for the property to be held in a special account to ensure payment?

Under the terms of Regulation Z, which of the following statements is true?

The Equal Credit Opportunity Act (ECOA) requires the lender to

The Real Estate Settlement Procedures Act (RESPA) applies to purchases of

The Consumer Financial Protection Bureau (CFPB) requires lenders to use the

Which of the following describes a form of seller financing?

The assessed value of a property is determined according to state law, usually by the

Miscellaneous tax exemptions may be granted to classes of property owners, for example

Which of the following is an example of a special assessment?

Which of the following is descriptive of a closing statement?

RESPA prohibits

At the closing, the payment of any real estate taxes that are owed by the seller but not yet due or billed will appear on the closing statements as a

Net operating income is calculated by

High vacancy rates can be the result of which of the following?

A tenant who pays portions of the operating expenses has a

A tenant who vacates the leased premises due to the landlord’s negligence is fulfilling a(n)

The act which aims to clarify lease terms and address general obligations of landlords and tenants is known as the

A zoning change that leaves existing properties in violation of the new ordinance is known as

A ____________ allows use that differs from the applicable ordinance for a variety of justifiable reasons

A homeowner is violating a usage restriction in a given municipal zone. Which of the following is used to cause the violator to cease and desist?

A hazardous material once commonly used as fireproof insulation for household plumbing is known as

The Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) regulates

Which of the following statements is true regarding a licensee’s liabilities relative to environmental laws?

Which of the following statements is true regarding the Lead-based Paint Act?

A means to legally identify property to a degree acceptable by courts of law is known as

Which of the following statements is true regarding a legal description?

A broker’s commission is usually

A broker who uses earnest money funds for personal use is

The cost approach is used for which of the following types of properties?

Which of the following is always considered to be an incurable form of depreciation?

If an appraiser uses manuals and estimates of labor costs, overhead, and builder’s profit to estimate the cost of constructing separate components of the subject, the appraiser is using the

The Fair Housing Act prohibits discrimination in housing based on

Which of the following is an example of an agent engaging in discriminatory behavior?

Which of the following is an example of an agent engaging in steering?

Which of the following is an example of redlining?

The most common type of relationship between the broker and the client is the

An agency relationship automatically terminates upon

Which agent is exercising his or her fiduciary duty of care?

Which fiduciary duty extends beyond the closing of the real estate transaction?

Which of the following agents is engaging in a dual agency?

Who should sign the real estate sales contract in addition to the buyers?

Which of the following describes the purpose of earnest money?

The parties in an option-to-buy contract are the

Which of the following statements is true regarding a regulatory jurisdiction’s Recovery Fund account?

The Fair Housing Act allows for exemptions under a few specific circumstances, such as

Complaints alleging fair housing violations must be filed with the Office of Fair Housing and Equal Opportunity within

The Americans with Disabilities Act requires landlords in certain circumstances to

TILA/RESPA Integrated Disclosure Rule (TRID) integrates the disclosure requirements of

Which of the following statements is true regarding the TILA/RESPA Integrated Disclosure Rule (TRID) rule?

To be legally enforceable, a valid contract must include

The most primary of relationships in real estate brokerage is that between broker and client, the relationship known in law as the

A valid mortgage or trust deed is evidence of

Real estate value in general is

The closing is the culmination of the real estate transaction. During the closing, which of the following items is addressed and completed?

A real estate professional who holds a fiduciary relationship with a principal and whose responsibilities include financial reporting, tenant selection, property maintenance, and safeguarding the investment for one or more owners is acting as

If a single party owns the fee or life estate, the ownership is a

A property owner who possesses all ownership interest owns

Which of the following statements describes the primary aim of fair housing laws?

Which of the following scenarios describes a license?

A property owner signed a listing agreement under duress. If the seller contests the legitimacy of the signed contract, the contract may be considered

The parties to the agency relationship are identified as the

The mortgagor in a mortgage financing transaction is the

Which of the following statements is true when demand for properties exceeds supply?

The primary parties at the closing are normally the

The individual who manages a residential property on behalf of the owner and who lives on the property as his/her primary residence is known as

Ownership in severalty is synonymous with which of the following terms?

The term “notice” is synonymous with

The original fair housing statute prohibits discrimination in housing based on race. It relates to selling, renting, inheriting, and conveying real estate. This statute is known as the

Which of the following scenarios is an example of an encroachment?

The Alabama Real Estate Commission was created in

The primary goal of the Alabama Real Estate Commission is to

Applicants for an Alabama real estate broker license must

An agent who has a written agency agreement to represent both the buyer and the seller in the same real estate transaction is a

Which of the following is NOT a penalty for violating any of the Alabama License Laws or AREC Administrative Rules?

AREC member terms expire on

Which of the following does NOT require an Alabama real estate license?

Which of the following statements is FALSE?

An individual who is provided brokerage services by a broker with no agency agreement is a

If the AREC receives a complaint about a licensee allegedly violating a license law, which of the following will the Commission do first?