1. If a gap in the chain of title is discovered, what would it create?

A lien

B. encumbrance

C. cloud on the title

D. adverse possession

2. Which of the following describes a title problem that must be corrected before closing?

A. leased mineral rights

B. an outstanding insurance claim

C. misspelling of a name on a warranty deed

D. presence of an easement on the property

3. Which of the following is a statutory duty of real estate licensee representing a seller?

A. to ensure that the buyer receives comparable market analysis for the property

B. to document all conversations with the seller and make all records available for inspection

C. to ensure that the seller's market the property at a price for the home based on comparable market analysis

D. to ensure that all services provided to the seller are provided in a reasonable, professional manner

4. If a deed creating a tenancy in common does NOT state the fractional interest of each co-owner, it:

a) is void

b) each owner has an equal interest

c) must be determined by a majority vote of the tenants

d) becomes a joint tenancy

5. A seller refused to honor a sales agreement. The buyer could seek specific performance, which is a legal request to

A. cancel all contractual obligations

B. Receive monetary damages for losses suffered

C. force the earlier to complete the sales agreement

D. Collect puntive damages from the seller

6. According to the truth-in-lending act (regulation Z), which of the following must be stated in the truth-in-lending disclosure?

A. attorney fees

B. cost of title policy

C. broker's commission

D. annual percentage rate

7. An advertisement emphasizes information meant to appeal to a particular ethnic or national group in an effort to maintain the character of the neighborhood. From the viewpoint of the federal Fair Housing Act, this could constitute a violation known as

A: Steering

B: Redlining

C: Blockbusting

D: Panic selling

8. A house is assessed at 42% of market value. The assessed value is 50,000 what is the approximate market value of the house ?

A. $50,000

B. $100,000

C. $119,000

D. $210,000