1. Which of the following is true about discount points?

2. The form of co-ownership in which there are many owners but only one or two people who make decisions is known as

3. A single-family property located in an industrial area has minimum value because of the principle of

4. Which of the following is the most important factor for a lender in determining credit-worthiness?

5. The large organizations that influence the amount of money available for lending by purchasing mortgages in the secondary market include

6. Simon Hersch, a salesperson associated with broker Bob King, lists a house for sale for $620,000, with 5% commission due at closing. Three weeks later the owner accepts an offer for $595,000, brought in by Simon. Bob's practice is that 45% of commissions go to the brokerage and the rest to the salesperson. How much will Simon make on the sale?

7. Joanna Bruno bought a house for $120,000, putting 20% down and borrowing the rest with a conventional loan. At the end of the first year, her principal had been paid down by $480, and property values in the area had risen by 6%. Her equity at the end of that first year was

8. Nancy Tomsic's tenants all had several months remaining on their leases when she sold her six-unit apartment building to Chuck Dwight. Tenants in this situation typically

9. Which of the following items should NOT be included in a manager's budget for a property?

10. There are special two-year licensing requirements for someone who wishes to conduct business only as a

11. A broker lists a property for sale. As time goes by, it is evident that the property is not very desirable. The broker and a partner observe that with a zoning variance and some modest remodeling, the character of the property could be changed to make it more valuable and saleable. The partner purchases the property without revealing the plan to the seller or identifying his relationship with the broker. Which of the following is true of this transaction?

12. The seller has not yet paid this year's property taxes, which are $2,400 for the period from July 1 to June 30. On January 16 the house is sold. How are the taxes adjusted at closing?

13. The Uniform Commercial Code concerns the

14. The annual rate of return expected by the owner of income property is called the

15. The management agreement does all of the following EXCEPT

16. Which of the following forms of ownership involves more than one owner?

17. At present, the holding period for capital gain tax treatment is

18. After delivering an offer to purchase to a seller, the buyer arranges to have the seller's family pet kidnapped and held until the seller accepts that offer. After ratification, the

19. One of the Millers' stated requirements for their new home was that it be located in the Sunnyvale school district. The seller falsely and knowingly stated that the subject property was indeed in that school district. After closing, the Millers discovered that the house was actually in an adjacent school district. The Millers

20. If the lease states that the landlord will provide heat, the tenant whose apartment is freezing may break the lease claiming

21. A certain subdivision has a deed restriction requiring houses to be at least 2,000 square feet. The town, however, has no such restriction and gives the Smith-Joneses a building permit for a little bungalow in the subdivision. If the neighbors object, their best course of action would be to

22. When Mollie Greene signed an offer to purchase the Simon's house, she put an earnest money deposit in the hands of the Simon's listing broker. What should the broker do with the money?

23. Amy Reed, a salesperson for ABC Realty, is required by contract to attend meetings, dress in a uniform, and prospect for four hours per day. She receives a biweekly paycheck, less withholdings for taxes and Social Security. Amy's relationship with the firm is that of

24. When tenant Heather Grayson opened her ice cream shop in the mall, she installed counters and special freezers. When Heather closes the shop, can she remove them?

25. An elderly property owner dies testate. In the will, care of the family pet is assured by conveying ownership in the property to a grandson who may occupy and enjoy the property so long as the pet lives. Upon the death of the pet, ownership passes to a designated charity. Which of the following is true in this situation?