12. What type of estate does a tenant have in the real property they occupy? an estate in remission a freehold estate a life estate a leasehold estate 13. Which of the following is NOT a unique feature of a VA loan? It is serviced by the Department of Veteran Affairs It requires no mortgage insurance premium regardless of the loan to value ratio It requires no down payment It can be the sales price or appraised value, whichever is less. 14. Which types of financing are synonymous? Interim financing - Construction loan Take-out loan - Junior Mortgage Construction loan - Bridge Loan Standby loan - Installment loan 15. The highest point of construction where rafters meet to form the roof is known as the truss the ridge board the gable the hip 16. Involuntary alienation occurs when a property owner is forced to sell to a resident alien under Fair Housing Laws an interest in property is transferred against the will of an owner or without affirmative action by the owner through operation of law, natural processes, or adverse possession a broker's license is suspended by the Real Estate Commissioner because of alienation of the complaining client a property owner conveys title to a purchaser 17. Which of the following is considered real property? Fixtures Extracted minerals Stock in a private water company Crops sold but not harvested 18. An appraiser has used a method of evaluating property that establishes the present market value by applying a capitalization rate to the net income. This definition applies to the appraisal approach known as market data sales straight line income 19. Sandra Jones and Julie Gray enter into a contract. At the time of signing the contract, Sandra does not know that Julie has been declared incompetent by a court. What is the legal status of this contract? Voidable, at the option of Julie Void Illegal Enforceable, because Julie failed to advise Sandra of her incapacity prior to entering into the contract. 20. Broker Mary received an offer from a buyer on her principal's home, along with a good faith deposit made payable directly to her. Mary deposited the check into her account and immediately transferred the amount of the good faith deposit into the trust account. Mary has handled the good faith deposit in accordance with the law is guilty of commingling will be responsible for any overdraft charges if the buyer's check is returned for insufficient funds doesn't have to advise the seller that the good faith deposit check was made out to her personally 21. Which of the following is the most distinguishing characteristic of real property? Functional obsolescence The selling price It is immovable Marketability 22. An attorney in fact is best described as: any individual who graduated from an accredited law school any person authorized to represent another by the execution of a power of attorney any person who has passed the bar examination a lawyer hired by a principal