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Corn stored in a grain bin is considered real property. - ✔✔False Kitchen cabinets, a furnace, or bathroom appliances are considered real property after they have been installed as improvements to the home, even though at one time they were personal property. - ✔✔True A dishwasher installed in the cabinets does not need to be excluded from the listing if the owner is planning on taking the washer with them. It can be excluded on the sales agreement. - ✔✔False It is not necessary for a licensee to be under the control of a real estate broker. - ✔✔False A water well pump would be considered personal property and could be taken with the seller. - ✔✔False The sudden replacement of land by a landslide is called avulsion. - ✔✔True Riparian water rights are the right enjoyed by landowners located next to lakes. - ✔✔False Appointees to the Iowa Real Estate Commission must be approved by the Iowa Senate. - ✔✔True
Littoral rights are rights enjoyed by landowners located next to rivers and streams. - ✔✔False Real property is divided into two categories, physical and economic. - ✔✔True Landowners can sell air rights or subsurface rights and retain the surface rights. - ✔✔True A term that has been given to expanding exposure is "farming". Some good examples of "farming" are as follows: - ✔✔o Door knocking in your local neighborhood. o Putting your business cards on local business bulletin boards. o Joining breakfast clubs, service clubs, and other casual organizations. Which of the following is not a physical characteristic of real property? - ✔✔Scarcity The Bundle of Rights that accompanies real property ownership includes five rights. - ✔✔True Which characteristic is not an economic characteristic of real estate? - ✔✔Uniqueness The owner of land also owns the rights to the subsurface and the air above the land. - ✔✔True All licensees have the right to call themselves REALTORS®. - ✔✔False
From the date of purchasing this course, how many months do you have to take the Real Estate Salesperson Exam? - ✔✔12 months A bilateral contract means only one party needs to act. - ✔✔False A contingency is something that has yet to be done before the contract becomes final. - ✔✔True A counter offer need not be initialed by all parties of the contract. - ✔✔False A minor can void a contract in what circumstance? They cannot obtain a loan They change their mind They cannot get a co-signer At any time - ✔✔At any time Agents are required to, as soon as possible, deliver to the parties of the contract, copies of the contract. - ✔✔True Agreeing with someone to mow your lawn is an example of an implied contract. - ✔✔True An expense stop is most commonly used in what type of lease? - ✔✔Gross Lease
An Open Listing allows the seller to sell the property himself and list the property with other agents. - ✔✔True An Option to Buy is an agreement to buy in the future at a set price. - ✔✔True An Implied contract is one of actions and not of words. - ✔✔True Bill and Sue sign an offer to buy on the Green's home with a clause in the contract that states Bill and Sue must first sell their present home. This is called a? Option Contingency Stipulation Land Contract - ✔✔Contingency Carol and Ed sign an Offer to Buy the Smith's house but change their minds a couple hours later and the Smiths had already signed the Offer. Can Carol and Ed void the contract? - ✔✔No Consideration, offer and acceptance, legally competent parties, and reality of consent are essential elements of a contract. What is the fifth? - ✔✔Legal purpose Contract Law is the body of law that governs contracts. - ✔✔True
In an Exclusive Agency listing, the owner retains the right to sell the property himself. - ✔✔True In the lease language, a CAM refers to construct and manage. - ✔✔False It is wise to provide for the acknowledgment of receipt of the Agency Agreement, Sellers Disclosure of Property Condition, and Lead-Based Paint information in the Offer to Buy Agreement. - ✔✔True Jim and Harry are visiting at a party and Jim offers Harry $200,000 for his house and Harry says "Great". They shake hands and say "that's a deal". Is there a contract? - ✔✔No Most real estate contracts are express contracts. - ✔✔True Novation is the substitution of one party to a contract for another. - ✔✔True Once a counteroffer is made, the original contract is void. - ✔✔True The Brown's decide to make an offer on the Johnson's home, but make a counteroffer of $5, less than the listing price. The Johnsons reject the offer with their own counteroffer of $2, less than the listed price. The next day the Johnson's had a change of heart and decide to accept the Brown's offer of $5,000 less. Is there a valid contract. - ✔✔No The most common tenancy in residential leasing is: - ✔✔Tenancy From Period to Period (Periodic Tenancy)
The owner of a property agrees to finance the property for the buyer for 10 years. What type of contract would this be? A Unilateral Contract A Land Contract A Voidable Contract An Option - ✔✔An option The seller can answer "Unknown" on the seller disclosure statement if he does not know one of the mandatory questions. - ✔✔True The Seller's Disclosure Statement must be received and acknowledged before the Offer to Buy is signed. - ✔✔True There are 3 types of commercial leases. Two of them are a Gross Lease, a Net Lease. What is the third? A CAM Lease A Tenancy at will Lease A Holdover Lease Percentage Lease - ✔✔Percentage Lease There does not need to be a specific period of time in a listing to make it a valid listing. - ✔✔False
When a Land Contract is used in a sale, the Deed is delivered to the buyer at the time of the closing. - ✔✔False When you buy property on a Land Contract, the contract, when recorded, will give you what? A leasehold interest Possession An insurable interest An equitable interest Both 3 and 4 - ✔✔Both 3 and 4 - An insurable interest and An equitable interest Which covenant of a warranty deed is missing from the following? Covenant of Quiet Enjoyment, Covenant against encumbrances, Covenant of possession, Covenant of warranty forever? Covenant of Construction Covenant of Hazards Covenant of Further assurance - ✔✔Covenant of Further assurance Which of the following is not an essential element of a contract? Consideration Offer and acceptance Address of the property Legal purpose - ✔✔Address of the property
Which of the following is not grounds for termination of a contract? Agreement of the parties Death of one of the parties Duress Terminal illness of one of the parties - ✔✔Terminal illness of one of the parties Which of the following listing agreements is illegal? An Exclusive Agency listing An Open Listing An Exclusive Listing A Net Listing - ✔✔A Net Listing
