51. The party that pays the mortgage insurance premium under an FHA loan is the:

A. Lender

B. Borrower

C. Mortgagee

D. Federal agency

Answer: B. Borrower

52. Which of the following parties must be licensed as a real estate broker?

A. An attorney performing real estate services as a broker

B. An attorney-in-fact selling real property for his principal

C. An administrator acting under court order

D. A trustee selling under foreclosure proceedings

Answer: A. An attorney performing real estate services as a broker

53. Which of the following appraisal approaches would be used to appraise a city library, church or fire station?

A. Capitalization Approach

B. Comparison Approach

C. Reproduction Cost Approach

D. Gross Multiplier Approach

Answer: C. Reproduction Cost Approach

54. The most popular and best form of real estate syndicate that affords the least amount of liability but allows the free flow of tax advantages would be a:

A. Real estate investment trust

B. Limited partnership

C. Corporation

D. Joint venture

Answer: B. Limited partnership

55. The California Subdivided Lands Act controls the sale or leasing of new subdivided land to California residents:

A. Only if the property is located in California

B. Only if the property is unimproved

C. Regardless of the location of the property

D. Only if the property is unimproved and located outside of California

Answer: C. Regardless of the location of the property

56. Under the terms of most trust deeds, the lender may consider the loan in default if the mortgagor fails to:

A. Make any scheduled payment of principal and interest

B. Pay the property taxes prior to the delinquent date

C. Pay the premium for the fire insurance policy that is protecting the property

D. Any of the above

Answer: D. Any of the above

57. Liquidating a financial obligation on an installment basis is known as:

A. Acceleration

B. Alienation

C. Amortization

D. Conversion

Answer: C. Amortization

58. Which of the following would be the least important feature in establishing the value of land for industrial use?

A. Topography

B. Fertility

C. Location

D. Subsoil

Answer: B. Fertility

59. The Real Estate Commissioner will issue a recommendation when the owner is trying to sell which of the following?

A. A real estate syndicate

B. A real property security

C. A residential subdivision located out-of-state

D. None of the preceding

Answer: D. None of the preceding

60. To operate as an escrow company in California the firm must be a corporation and licensed by the:

A. Corporations Commissioner

B. Insurance Commissioner

C. Secretary of State

D. Internal Revenue Service

Answer: A. Corporations Commissioner