71. A note on which interest only is paid during its term is called:

A. A straight note

B. An amortized note

C. An installment note

D. A level payment note

Answer: A. A straight note

72. In a percentage lease, the rental is usually based on a percentage of the:

A. Value of the building

B. Gross sales with a minimum rental

C. Net sales with a minimum rental

D. Assessed value

Answer: B. Gross sales with a minimum rental

73. No subdivision lots can legally be sold or leased prior to:

A. Furnishing a copy of the Commissioner’s Final Public Report to the customer

B. Giving the customer a chance to read it

C. Obtaining the signature of the customer for a copy

D. All of the above

Answer: D. All of the above

74. Title VIII of the Civil Rights Act of 1968, Congress declared a national policy providing fair housing throughout the United States. The policy applies to which of the following?

A. A single-family dwelling owned by a private individual who also owns more than three such dwellings

B. Multi-family dwelling of six units where the owner occupies one such unit as his residence

C. Individually owned single-family residences offered for sale through a real estate broker

D. All of the above

Answer: D. All of the above

75. The capitalization rate of an income producing property is the ratio between the:

A. Market value and its net income

B. Equity of the owner and its market value

C. Replacement cost and its net income

D. Recapture rate and gross multiplier

Answer: A. Market value and its net income

76. The purpose of Mortgage Insurance under FHA financing is to:

A. Provide a secondary money market

B. Insure the physical improvements

C. Protect the owner in the event of a foreclosure

D. Protect the lender in the event of a default

Answer: D. Protect the lender in the event of a default

77. A licensed real estate agent may refuse to show a home to a person of a minority race provided the:

A. Owners had given specific instructions against showing it to such persons

B. Licensee felt the home was not suited to the needs of the prospective purchasers

C. Licensee was able to terms specified in the listing

D. Owners were out of town and had left instructions that the home was not to be shown to anyone

Answer: D. Owners were out of town and had left instructions that the home was not to be shown to anyone

78. A lien created under the street improvement act of 1911 would be “superior” to:

A. An existing first trust deed and note

B. An existing second trust deed and note

C. A declaration of homestead

D. All of the above

Answer: D. All of the above

79. One of the chief differences between an “attachment” and a “judgment” is that the:

A. Attachment covers all property of the owner

B. Attachment is recorded after a court decision

C. Judgment is recorded prior to the court decision

D. Judgment is effective after a court has rendered a decision

Answer: D. Judgment is effective after a court has rendered a decision

80. Covenants and conditions placed in deeds often restrict the use of the property by the Grantee. If a condition is breached, the consequences resulting from the enforcement would be:

A. More severe if it was a covenant

B. More severe as a condition

C. The same as a covenant

D. Profitable for the Grantee

Answer: A. More severe if it was a covenant