National Practice National Valuation
(Questions ONLY, ANSWERS WILL BE REVEALED WITH PROPER SUBSCRIPTION)
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1. The three types of appraisal reports are
A. the letter, the short report and the narrative.
B. the summary, the data report, and the narrative.
C. the short report, the long report, and the review report.
D. the letter, the summary report, and the mass appraisal report.
National Practice
2. Which of the following types of value is the type most often sought by an appraiser?
A. Exchange
B. Economic
C. Market
D. Replacement
3. The first step in the appraisal process is to
A. compare similar sold properties.
B. define the problem.
C. analyze the neighborhood.
D. gather data.
4. An appraiser is looking for the growth, stability, change and decline of an area. The appraiser is dealing with
A. the neighborhood cycle.
B. site analysis.
C. economic obsolescence.
D. the community cycle.
5. An arm’s length transaction is defeated whenever
A. the parties are ready, willing and able to contract.
B. a buyer acts under duress.
C. the seller fails to disclose material defects.
D. the seller decides to reduce the price for a quick sale.
6. Prior to preparing the report, the last step in the appraisal process involves
A. estimating the land value.
B. reconciling the comparables.
C. completing the income approach.
D. reconciling the values derived from the three approaches.
7. Market value is defined by all of the following EXCEPT
A. the assumption that buyer and seller are sufficiently informed.
B. the allowance of a reasonable time for market exposure.
C. the relation to the price for which the property should sell in the open market.
D. the broker’s opinion of value.
8. Burger King locates a franchise across the street from a McDonalds. At play here is the principle of
A. anticipation.
B. competition.
C. conformity.
D. assemblage.
9. A two-family residential property is now located in a central business district. The decision to convert this two-family residential house to a commercial office, housing a real estate firm and an insurance company, is an example of what appraisal principle?
A. Plottage and assemblage
B. Highest and best use
C. Anticipation of income
D. Conformity
10. The principle of contribution is best exemplified as
A. the value increase caused by movements in a capitalization rate.
B. the amount of value a garage adds to the total property value.
C. the decrease in value caused by an adverse zoning change.
D. the increase in value caused by combining properties.
11. If a manufacturing plant that employs 20% of the local labor force closes, the likely effect on the area’s real estate values will reflect the principle of
A. supply and demand.
B. transferability.
C. substitution.
D. highest and best use.
12. The value principle of anticipation is best characterized as
A. an investor’s cash flow projection.
B. a future event affecting property value.
C. the expection of a financial return on investment.
D. a value trend based on historical circumstances.
13. The phrase ‘buy the cheapest house on the block’ stems from which principle of value?
A. Regression and progression
B. Substitution
C. Contribution
D. Competition
14. A property was originally purchased for $160,000. The land portion is 25% of total value. If depreciation totals $20,000, what is the value of the property using the cost approach?
A. $132,000
B. $140,000
C. $160,000
D. $180,000
15. of A property’s roof is twenty years old and has not been replaced. This condition would most likely be considered to be an example of
A. curable physical deterioration.
B. curable functional obsolescence.
C. external obsolescence.
D. incurable depreciation.
16. of Using a 12% capitalization rate, an apartment complex is valued at $480,000. Find the value of the same property if a 10% cap rate is used.
A. $400,000
B. $440,000
C. $520,000
D. $576,000
17. An investor’s return on an income property appraisal is based on which of the following?
A. Potential Rental IncomeI
B. Potential Income less vacancy
C. Gross Income
D. Gross Income less expenses
18. The Unit-in-Place method of estimating costs is best described as
A. estimating costs per square foot.
B. estimating costs on item-by-item basis.
C. estimating costs of installation.
D. estimating costs of labor units.
19. The final step in the Sales Comparison Approach is to
A. average the values of the comparables.
B. complete the adjustment of all comparables.
C. reconcile the adjusted values of the comparables.
D. complete all adjustments to the subject.
20. The Sales Comparison Approach relies on which of the following principles of value?
A. Conformity
B. Change
C. Anticipation
D. Substitution
21. of A property has been depreciated @ $3,000 for 15 years. The land, which comprises 20% of total value is worth $20,000. What was the original value of the property?
A. $80,000
B. $100,000
C. $125,000
D. $145,000
22. A property owner must spend $10,000 to pave his driveway. Upon completion of construction, his property value will increase by $7,500. In this case the deficiency would be considered to be
A. incurable deterioration.
B. curable functional obsolescence.
C. incurable economic obsolescence.
D. incurable functional obsolescence.
23. of A property owner installs a new air conditioning system. How does this affect the property’s effective age?
A. It has no effect.
B. It increases it.
C. It decreases it.
D. The effective age cannot be adjusted for air conditioning systems.
24. If a comparable has one more bedroom than the subject, an adjustment is made by
A. adding value to the subject.
B. deducting value from the subject.
C. adding value to the comparable.
D. deducting value from the comparable.
25. Which of the following is NOT one of the three classes of depreciation according to cause?
A. physical deterioration.
B. economic obsolescence.
C. financial deterioration.
D. functional obsolescence.
26.A property valued at $150,000 earns $750 per month. What is the annual percent of return?
A. 6%
B. 7.50%
C. 9%
D. 12%
27. of Mike wanted a capitalization rate of 14% if he bought Joe’s property. If three units rented for $450 per month, two units @ $550, and one unit @ $600 per month, what is the maximum amount Mike could pay in order to net the cap rate he wants?
A. $36,600
B. $45,000
C. $261,429
D. $291,832
28. If the subject has a swimming pool and the comparable does not, the appraiser makes an adjustment by
A. adding value to the subject.
B. deducting value from the subject.
C. adding value to the comparable.
D. deducting value from the comparable.
29. Economic life is best defined as
A. the length of time during which an improvement will contribute to the value of a property.
B. the age of a non-income producing improvement.
C. the depreciation period for the land component of a property.
D. the period during which the land and improvements are depreciated for tax purposes
30. Which of the following best defines reproduction cost?
A. The cost to cure deterioration.
B. The cost to replace an improvement with original materials
C. The cost to replace an improvement with similar materials
D. The cost to replace a destroyed property
31. Ad valorem taxes are based on
32. Ad valorem taxes are based on
A. the replacement value of the property.
B. the assessed value of the property
C. the value of the property’s homestead exemption.
D. the appraised value of the property.
33. A homeowner receives a tax bill that includes an amount for the library district, taxed at $1.00 per $1,000, and the fire protection district, taxed at $2.00 per $1,000. How much does the taxpayer have to pay for these two items if the property’s taxable value is $470,000?
A. $1,567.00
B. $157.00
C. $1,410.00
D. $141.00
34. The tax assessment ratio for a house valued at $250,000 is 80%. If the tax rate is $2.00 per $100 what is the annual tax?
A. $500
B. $5,000
C. $400
D. $4,000
35. A millage rate is derived by
A. dividing the tax requirement by the tax base.
B. multiplying the tax base times the tax requirement.
C. adding an inflation factor to the prior year’s tax rate.
D. dividing the tax base by the tax requirement.
36. The purpose of a homestead tax exemption is
A. to exempt qualified property owners from ad valorem taxation.
B. to offer an amount of tax relief on an owner’s principal residence
C. to encourage multiple property investment.
D. to exempt owners of principal residences who rent their properties.
37. A unique characteristic of a special assessment tax is that
A. it only applies to properties which will benefit from the public improvement.
B. the taxing district discounts levies for properties not affected by the improvement.
C. more valuable properties which stand to benefit will pay proportionately more taxes.
D. it creates an involuntary junior lien on the property.
38. To qualify for a homestead exemption, a property owner generally must
A. reside on the property.
B. have a house on the property.
C. be 55 years old.
D. have children.
39. Which of the following jurisdictions are empowered to levy ad valorem taxes on real property
A. Federal, state, and county jurisdictions
B. State, county, and local jurisdictions
C. Counties, cities, and municipalities
D. Federal, state, and county special assessment districts
40. A school district’s tax rate is 10 mills. The school district’s required revenue from taxes is $1,000,000. What is the tax base of the area?
A. $1,000
B. $1,000,000
C. $10,000,000
D. $100,000,000
41. A town is replacing a sidewalk that serves five homes. The length of the sidewalk is 200 feet. Mary’s property has 38 feet of front footage. If the cost of the project to be paid by a special assessment is $7,000, what will Mary’s assessment be?
A. $1,400
B. $1,330
C. $184
D. $1,840
42. What is an ad valorem tax levy?
A. The total of the assessed values of all real properties within a taxing jurisdiction
B. The sum of all the taxes a local taxing jurisdiction collects in a tax year
C. The part of a taxing body’s budgeted expenses that must come from real property taxes.
D. The number of dollars per thousand dollars of assessed value that a real property owner must pay in property taxes.
43. A tri-plex generates $700 rent for each of its three units per month. The property has been recently appraised for $413,000. What is this property’s GIM?
A. 16.4
B. 13.65
C. 196
D. 49.17
44. Each unit in a fourplex rents for $850 per month. If the appraised value is $460,000, what is the GRM for the fourplex?
A. 541.2
B. 135.3
C. 45
D. 11.3
45. A home recently sold for $360,000 with an monthly rental income of $3,000. Find the Gross Rent Multiplier for the property.
A. 15
B. 120
C. 25
D. 30
46. A property has a Gross Income Multiplier of 12, and value of $500,000. What is its annual income?
A. $3,472
B. $60,000
C. $41,667
D. $600,000
47. An income property produces $40,000 per year. Its GIM is 15. What is the value of the property?
A. $50,000
B. $500,000
C. $600,000
D. $800,000
48. Comparable sales of duplexes in a market indicate a GRM of 146. If the annual income of the subject is $24,000, what is the property’s estimated value?
A. $3,504,000
B. $2,400,000
C. $2,920,000
D. $292,000
49. An income property generates $2,000 per month, and is valued at $218,000. What is its Gross Rent Multiplier?
A. 109
B. 9.09
C. 90.9
D. 115
50. A property valued at $340,000 has a Gross Rent Multiplier of 148. What is this property’s monthly income?
A. $2,297
B. $4,352
C. $3,627
D. $4,298
51. An income producing property rents for $1,000 per month and the GRM is 84. What is the estimated market value of the property?
A. $325,000
B. $55,600
C. $84,000
D. $1,008,000
52. The purpose of a buffer zone is to accomplish which of the following?
A. Privacy space between residences in an upscale subdivision.
B. A neutral zone between differing forms of land use.
C. Isolation of a non-conforming use in a municipality.
D. A green area for large-scale residential developments.
53. Private land use control is primarily exerted by
A. the courts via placement of deed restrictions on private property.
B. the owner of the controlled property via deed restrictions.
C. the owner of the property via zoning ordinances.
D. the grantee of a property via restrictive covenants.
54. Restrictive covenants are enforced by which of the following?
A. Zoning
B. Condemnation
C. Police power
D. Injunction
55. Zoning regulations are justifiable so long as they
A. protect public health, safety, and welfare.
B. conform to federal zoning standards.
C. do not interfere with fair trade practices.
D. do not favor private interests over public interests.
56. A nonconforming use may be deemed illegal if
A. the property is sold or abandoned.
B. the use occurred prior to the zoning change which made it illegal.
C. the owner obtains a variance.
D. a conditional use permit is renewed.
57. The purpose of a building permit is
A. to override a deed restriction.
B. to regulate the volume of a market’s building activity.
C. to regulate minimum construction standards.
D. to establish an enabling act.
58. Public land-use regulations may regulate all of the following except
59. The underlying justification for eminent domain proceedings against a property owner is
60. A convenience store may be permissible in an industrial zone under the authorization of
61. One characteristic of a Planned Unit Development is
A. to cluster homes in smaller lots to allow for more common area.
B. to enact enabling restrictions to maintain maximum market value.
C. to encourage maximum lot sizes to enhance highest and best use.
D. to maximize zero lot lines, party walls, and land use restrictions.
62. A form of zoning which regulates density is referred to as
A. bulk zoning.
B. aesthetic zoning.
C. directive zoning.
D. subdivision regulation.
63. Which of the following are not forms of public land use control?
A. Police power and eminent domain.
B. Taxation and zoning.
C. Subdivision regulations.
D. Restrictive covenants.
64. The right to exert public land use control is primarily authorized by which of the following?
A. A grantor’s written and recorded deed provisions.
B. A municipality’s self-legislated police power
C. The 14th Amendment to the Constitution
D. The constitution of individual states.
65. A zoning variance is obtainable in a municipality provided that
A. there is no existing use on the property.
B. existing zones do not conflict with the use.
C. any pre-existing structures are demolished.
D. it is obtained prior to the commencement of the varying use.
66. One important characteristic of environmental protection legislation is that it
A. can require affirmative action on the part of owners and developers.
B. cannot violate existing zoning laws where it may apply to.
C. cannot violate public interest or jeopardize unfettered use of land.
D. can be nullified by municipal enabling acts.
67. A lot that measured 330’ x 198’ sold for $30,000. What was the cost per acre?
A. $10,000
B. $20,000
C. $25,000
D. $30,000
68. You as a broker sold a TRIANGULAR piece of land for $900 per acre. What is the approximate amount of your commission at 7% if the land had a base of 1500 feet and a height of 600 feet?
A. $350
B. $651
C. $1,301
D. $3,150
69. What is a critical characteristic of a metes and bounds description?
A. It MUST conform to the standards set for the plat of survey.
B. It MUST quantify linear and area measurements.
C. It describes a rectangularly measured area of townships and sections.
D. The Point of Beginning and Point of End MUST be the same.
70. A plat of survey is best described as
A. a survey of an entire subdivision.
B. a completed lot survey.
C. a registered metes and bounds legal description.
D. a plat map recorded in the state land bureau of records where the property is located.
71. A scale drawing shows a room to be 3 inches by 4 ½ inches. Carpet is $15 per square yard is to be installed in the room. If the scale is 1 inch to 4 feet, how much would it cost to install the carpet?
A. $120
B. $202
C. $360
D. $3,240
72. How many acres are there in the S 1/2 of the N 1/2 of the SW 1/4 of a section of land?
A. 10 acres
B. 20 acres
C. 40 acres
D. 160 acres
73. The essential criteria for an acceptable legal description is that it
A. accurately locates the parcel in the opinion of a court.
B. Always starts at the POB and ends at the POB.
C. contains the current post office address of the parcel.
D. is written by a surveyor.
74. A property sold for $2100 per acre. The front of the property measured 640′ the rear measured 570′ and the depth of the property was 720′. What was the sale price of the property?
A. $2,100
B. $21,000
C. $22,215
D. $173,250
75. A parcel’s street address is an insufficient legal description because
A. street addresses do not contain a lot an block.
B. it does not contain a POB.
C. it lacks permanence and sufficient data for a surveyor to locate it.
D. it creates a cloud on title.
76. Which of the following lines in the Rectangular Survey System run north and south?
A. Base lines
B. Range lines
C. Township lines
D. Section lines
77. Beginning at the SE corner of the intersection of Olive & 270, thence south 350 feet, thence west 350 feet, thence north 400 feet, thence east 400 feet. Is this a good legal description?
A. No, this is not a good legal description because it does not begin and end at the point of beginning.
B. No, legal descriptions cannot be determined in this manner.
C. Yes, this is a good legal description of a parcel of land.
D. Yes, it is not necessary for a legal description to begin and end at the point of beginning.
78. As a legal descriptor of land, a township square consists of
A. one section.
B. 36 square miles.
C. 640 acres.
D. 1 square mile.
79. Which land description method employs a subdivision plat map?
A. The lot and block system
B. The Rectangular Survey System
C. The metes and bounds system
D. The government survey system
80. Mr. Jones owned a lot measuring 200′ x 200′. An appraiser valued his lot @ $1.60 per square foot. What was the lot’s total value?
A. $640
B. $6,400
C. $12,800
D. $64,000
81. How many acres are there in the NE ¼ of the SW ¼ of the NW ¼ of a section?
A. 5 acres
B. 6 acres
C. 9 acres
D. 10 acres
82. A legal description of real property:
83. What is the starting point called in a metes and bounds description
84. How many acres are there in a 1/8 mile squared? (1/8 mile squared is the same as 1/8 mile times 1/8 mile)
85. Beginning at the SE corner of the intersection of Olive and 270; thence south 350 feet; thence north 400 feet; thence east 400 feet. Is this an adequate legal description?
86. The description that follows contains how many acres? The NE 1/4 of the NE 1/4 of section 20.’
87. Objects used by surveyors in legal descriptions are:
88. Which of the following would never be included as part of a legal description?
89. Because of the curvature of the earth; it is necessary to compensate for the changes in the lines through the use of:
90. How are directions described in a metes and bounds survey?
91. The legal description of a recorded plat is incomplete if it lacks
92. How many sections are there in a township, and what are their dimensions?
93. How far apart are common parallels?
94. What are the dimensions of a township?
95. To make it easier to describe elevations, surveyors refer to standard elevation points called
96. What method of legal description was the first one used in America?
97. A check or quadrangle is defined by the intersection of pairs of
98. The critical characteristic of a metes and bounds description is that
99. A range is defined by
100. What is a guide meridian?
101. A legal description in the rectangular survey system will also include a metes and bounds or lot and block description if the property
102. What is a datum in a legal description?
103. The fundamental components of the metes and bounds system are
104. The cost approach would be more heavily relied on for which type of property?
105. A property owner in a recently zoned area was permitted to continue to use his property in a manner that did not comply with the zoning requirements. This use is described as which of the following?
A. Exclusive-use zoning.
B. Deviation.
C. Nonconforming use.
D. Private control of land use.
106. The capitalization rate is best described as:
A. the value of the property in relation to the gross income the property produces.
B. an investment property’s fixed cash flow on an annual basis.
C. the relationship between net operating income and estimated value or cost.
D. a fixed rate of return for the investor of a commercial property.
107. One business attracts another business of similar type and together they may make more money than they would have singularly. This is an example of what principle of value?
A. Contribution
B. Competition
C. Progression
D. Assemblage
108. A development company owned property that the city wanted so it could extend the runways at the municipal airport. If the company refuses to negotiate with the city, then the city may acquire the property by:
A. Escheat.
B. Accretion.
C. Confiscation.
D. Eminent domain.
109. What is the principal mechanism for implementing a master plan?
A. Zoning
B. Referendum
C. Public election
D. Property management
110. The definition of depreciation is
A. A loss in value.
B. Mortgages and foreclosures.
C. Loss from scarcity of a product.
D. A gain from cost.
111. Commercial income producing property is best appraised using which method?
A. Market Data Approach.
B. Cost Approach.
C. Income Approach.
D. Sales Comparison Approach.
112. Which principle of value holds that the value of any component of a property is what it gives to the value of the whole or what its absence detracts from the whole?
A. Substitution
B. Conformity
C. Contribution
D. Progression
113. Functional obsolescence is due to:
A. Normal wear and tear.
B. Poor design or floor plan.
C. Poor location.
D. An adjacent, adverse property use.
114. Which principle of value holds that a property can increase or decrease in value in expectation of something in the future?
A. Conformity
B. Highest and best use
C. Anticipation
D. Contribution
115. Which of the following approaches to value figures the land separately from the value of the improvements?
A. Market Data.
B. Cost Approach.
C. Income Approach.
D. Functional obsolescence.
116. An office building has a Potential Gross Income of $12,600 per year. The vacancy rate is 5% and the annual expenses are $3,600. What is the market value if the capitalization rate is 12%?
A. $15,120.00
B. $69,750.00
C. $99,750.00
D. $105,000.00
117. A property’s land-to-improvements value ratio is 20% – 80%. The property was purchased 10 years ago, and depreciation has averaged $1,200 per year on the 3,000 SF house. If the improvements were built @ $120 / SF what is the current value of the property using the cost approach?
A. $360,000
B. $420,000
C. $438,000
D. $450,000
118. Which of the following is an accurate statement?
A. To derive Net Operating Income, deduct the annual operating expenses from Annual Gross Income to derive Net Operating Income.
B. To derive the GRM, net income is used.
C. To derive the capitalization rate, the value is divided by income.
D. The GRM and cap rate are equally desirable to an investor in determining a price to offer.
119. Which aspect of depreciation is almost always incurable?
A. Economic obsolescence
B. Physical deterioration
C. Internal obsolescence
D. Functional obsolescence
120. The metes and bounds method of surveying is based primarily upon:
A. Survey lines that run east and west.
B. Survey lines that run north and south.
C. A map of the subdivision.
D. A point of beginning.
121. The tax base in a jurisdiction is derived by subtracting exemptions from
A. sales values.
B. the tax rate.
C. assessed values.
D. residual values.
122. Which method of determining cost adds estimates of material and labor costs to indirect costs to arrive at the total cost of a structure?
A. Chapter in place
B. Square foot cost
C. Reproduction cost
D. Quantity Survey
123. A tire company has a manufacturing plant located in an area that has just been re-zoned for residential usage. The company is allowed to continue operating the plant under the new zoning classification. However, if the plant is destroyed by fire, the tire company:
A. May not construct another plant in the neighborhood without first applying for a zoning variance.
B. May not construct another plant in the neighborhood under any circumstances.
C. May construct another plant if it obtains the consent of the residents living in the neighborhood.
D. May construct another plant without the resident’s consent as long as the homeowners’ association approves it.
124. An appraiser deducts $5,000 for a property that has defective wiring. This defect is curable obsolescence, provided that
A. The repair costs $4,000 to complete.
B. The repair costs $6,000 to complete.
C. The defect can be repaired at all.
D. This defect is inherently incurable due to external obsolescence.
125. For which of these properties would an appraiser most likely choose to use the cost method of appraisal?
A. Single-family home
B. Land
C. Church
D. Apartment building
126. The concept of economic life is best characterized as
A. The actual age of a structure or structural component.
B. The effective age of a structure or structural component.
C. The anticipated period of time an improvement will last for depreciation purposes.
D. The anticipated physical life of an improvement as a function of its durability.
127. The depreciation most difficult to remedy would be:
A. Physical.
B. Economic.
C. Functional.
D. Premise.
128. Functional and economic obsolescence are aspects of
A. depreciation.
B. effective age.
C. land value.
D. ability to generate income.
129. A building has a potential gross rental income of $145,000 with vending receipts of $5,000 and a vacancy rate of 5%. The annual expenses of the building are $15,000 in taxes, insurance $4,000, maintenance $10,000, utilities $6,000, repairs $3,500, legal fees $1,500, management fees @ 4% of Effective Gross Income. What is the Effective Gross Income of the property?
A. $135,000
B. $142,750
C. $145,000
D. $162,000
130. The primary survey line running east and west in the rectangular survey system is the:
A. Township line.
B. Base line.
C. Range line.
D. Principal meridian.
131. Public land use controls in the form of building ordinances are an exercise in the form of:
A. Eminent domain.
B. Police power.
C. Interstate land sales.
D. Deed restrictions.
132. A 20-unit apartment building rented for $750 per unit, per month. The annual Gross Income Multiplier was 9. What is the value of the property?
A. $135,000
B. $1,350,000
C. $1,800,000
D. $1,620,000
133. An acre contains:
A. 3840 square feet.
B. 6490 square feet.
C. 34,875 square feet.
D. 43,560 square feet.
134. A developer put two lots together and sold them as one large lot. The increase in value is referred to as:
A. Appreciation.
B. Contribution.
C. Plottage.
D. Partition.
135. What is the purpose of a homestead tax exemption?
A. To exempt qualified property owners from ad valorem taxation
B. To offer some amount of tax relief on an owner’s principal residence
C. To encourage multiple property investment
D. To exempt owners of principal residences who rent their properties
136. An apartment building contains twenty units. Each unit rents for $900 per month. The vacancy rate is 5%. Annual expenses are $17,500 for maintenance, $7,200 insurance, $7,500 taxes, $6,400 utilities, $7,500 mortgage debt and 10% of the gross effective income for the management fee. What was the investor’s rate of return for the property if she paid $1,170,000 for the property?
A. 7.6%
B. 8.9%
C. 12.48%
D. 22.05%
137. To find the value of a property using the Income Approach to value, if the Net Operating Income and capitalization rate were known, the appraiser would:
A. Multiply the Net Operating Income by the capitalization rate.
B. Multiply the Effective Gross Income by the capitalization rate.
C. Divide the Net Operating Income by the capitalization rate.
D. Divide the capitalization rate by the Net Operating Income.
138. A new home sold for $350,000. The tax rate is $.825 per hundred or fraction thereof. How much will the annual taxes be on this property?
A. $287.00
B. $287.50
C. $2,887.00
D. $2,887.50
139. The best definition of an appraisal is:
A. A means of determining depreciation.
B. A method to keep values current with reproduction cost.
C. A statement of facts that may not be necessarily true.
D. An estimate of value.
140. A $175,000 house was built next to a $75,000 house. Which of the following principles of value would apply?
A. Substitution.
B. Competition.
C. Progression and Regression.
D. Anticipation.
141. The primary intent of zoning ordinances is to:
A. Assure the health, safety and welfare of the community.
B. Demonstrate the police power of the state.
C. Limit the amount and types of business in a given area.
D. Protect residential neighborhoods from commercial encroachment.
142. An improvement to a local restaurant does not comply with the zoning ordinances because it was constructed prior to the adoption of the zoning laws, and its use is one that clearly differs from current zoning. This is known as
A. an illegal nonconforming use.
B. a variance.
C. a special exception.
D. a legal nonconforming use.
143. A permitted deviation from the standards of a building ordinance is called:
A. Unlawful non-conforming use.
B. Variance.
C. Legal nonconforming use.
D. Testimonial.
144. An appraiser, using the Cost Approach method would do which of the following?
A. Make an adjustment if the economic conditions have changed between the date of sale and the date of the appraisal.
B. Use comparable properties as the basis for the decision.
C. Use replacement cost minus depreciation.
D. Use the ability of the property to produce income as the basis of the decision.
145. A house is constructed in a neighborhood that is substantially larger than the existing houses. Based on the value principle of ___________________, the larger house’s value will therefore be adversely affected.
A. anticipation
B. conformity
C. inadequacy
D. competition
146. A CMA is performed when:
A. Accessing property.
B. Pricing property.
C. Taxing property.
D. Condemning property.
147. What is a unique characteristic of a special assessment tax?
A. More valuable properties which stand to benefit will pay proportionately more taxes.
B. It applies only to properties which will benefit from the public improvement.
C. The equalization board discounts levies for properties not affected by the public improvement.
D. It creates an involuntary junior lien on the property.
148. The premise of the Sales Comparison Approach rests on the principle of:
A. Conformity.
B. Competition.
C. Highest and best use.
D. Substitution.
149. Which of these controls would be used to prevent a neighboring lot owner from violating the recorded deed restrictions in a subdivision?
A. Zoning.
B. Injunction.
C. Police power.
D. Condemnation.
150. What are ad valorem taxes based on?
A. The replacement value of property
B. The assessed value of property
C. The millage value of property
D. The broker’s estimate of value
151. What is the fundamental purpose of a building permit?
A. To restrict the number of new development projects
B. To establish the basis for an inspection
C. To ensure that improvements comply with codes
D. To promote certificates of occupancy
152. How is a homeowner’s total tax bill derived?
A. Divide the tax requirement by the tax base.
B. Divide tax dollars needed by the taxable assessed value.
C. Multiply each district’s tax rate times the taxable value of the owner’s property.
D. Average the tax rate for each tax district, and then multiply the average tax rate times the assessed value.
153. Which of the following is an example of economic obsolescence?
A. Four bedrooms and one bath in a house.
B. Lack of insulation in an apartment building.
C. A house abutting a closed factory.
D. Lack of paint on a barn.
154. One way for an appraiser to account for a property’s deterioration is to
A. Increase the chronological age of the property.
B. Decrease the chronological age of the property.
C. Raise the effective age of the property.
D. Decrease the effective age of the property.
155. Which of the following would be found in a management proposal?
A. Tenant credit histories
B. The desired demographic of the property
C. Schedule of maintenance requirements
D. A list of all pets residing in the complex
156. What is a disadvantage of real estate investment?
A. There is very low risk.
B. It is not highly liquid.
C. The cost of improvements may be depreciated or deducted over an arbitrary period of time.
D. Real Estate has shown an above average rate of return.
157. Of the following liens: a $100,000 mortgage, a $2,500 property tax bill, and a $8,000 mechanic’s lien, and a $25,000 judgment lien, which will be paid off first after a foreclosure sale?
A. The $8,000 mechanic’s lien
B. The $25,000 judgment lien
C. The $100,000 mortgage
D. The $2,500 property tax lien
158. Which of these listing agreement statements is false?
A. The listing price is listed on the listing agreement.
B. The seller can change the listing agreement whenever he or she wants.
C. A listing agreement can be modified, but only if all parties agree in writing.
D. Contract law applies to listing agreements.
159. If a cooperative corporation cannot pay its bills, what would happen?
A. Only the residents who have not paid their rents on time can be affected.
B. The HUD will bail out the struggling cooperative.
C. The corporation owning the property would be dissolved, and all of the residents could lose their interest in the cooperative.
D. The cooperative must evict all of the current stock holders.
160. A(n) ________ contract is one that unduly favors the party with superior bargaining power.
A. equal
B. dual
C. reasonable
D. unconscionable
161. The first step in the appraisal process is to
A. estimate the value of the land.
B. state the problem.
C. analyze the neighborhood.
D. gather data.
162. Which of the following legal description methods has been used the longest in the US?
A. The rectangular survey system
B. The recorded plat system
C. The British survey system
D. The metes and bounds system
163. If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?
A. Seller
B. Listing broker
C. Buyer
D. Nobody
164. Which statement about a deed in lieu of foreclosure is false?
A. It gives the borrower an opportunity to change the loan terms.
B. The borrowers’ credit is hurt less than in a formal foreclosure.
C. It avoids public notice of the foreclosure.
D. There is less risk to the lender that the borrower will damage the property in revenge for the loss of the property.
165. The cost to replace an improvement with original materials is known as
A. replacement cost.
B. placebo cost.
C. cloning cost.
D. reproduction cost.
166. How does the Federal Reserve control lenders?
A. They set the range of acceptable loan amounts.
B. All loan underwriters are employed by the Federal Reserve.
C. They tell lenders what percentage of assets they must keep as reserves.
D. They set the number of loans that can be made.
167. Alex’s home has been on the market for eight months. What is the most likely reason Alex’s home has not been sold yet?
A. There has not been enough advertising done by the broker.
B. The property is overpriced.
C. The kitchen is ugly and outdated.
D. The air conditioner is old.
168. Which of these statements about the Americans with Disabilities Act is TRUE?
A. The Americans with Disabilities Act did not take effect until 2004.
B. A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.
C. An apartment manager might be required to allow a tenant with a disability to widen a doorway.
D. Since most real estate firms are private places, they do not fall into ADA’s definition of a public accommodation.
169. Owner Tom decided to lease out his basement to a college student. By leasing the basement, Tom has
A. exercised one of his police powers.
B. permanently transferred his subsurface rights.
C. transferred a portion of his bundle of rights.
D. encroached his bundle of rights.
170. New salesperson Juliet has been assigned office duty for Saturday and Sunday. What is another common term for office duty?
A. Compliance time
B. Floor time
C. Chill time
D. Time-in
171. What type of clause allows a broker to collect a commission for some period of time after the listing expires?
A. A return on investment clause
B. A recovery clause
C. A self-dealing clause
D. A carryover clause
172. Which of the following statements best describes what happens with a judicial foreclosure?
A. The mortgaged property is transferred directly to the lender.
B. The mortgaged property is sold without the supervision of a court.
C. The mortgaged property is sold under the supervision of a court.
D. The mortgaged property is transferred directly to the state.
173. When the agency relationship has been terminated, the licensee is no longer considered the principal’s agent and does not owe any further duties to the principal except for
A. loyalty and accounting.
B. accounting and confidentiality.
C. obedience and loyalty.
D. care and obedience.
174. 160 County Drive has 4 acres of open pasture and a 1,900 square foot home. The home has 2 bedrooms and 4 bathrooms. Call 555-555-5555 now for information! What is missing from this advertisement that makes it a blind ad?
A. The price
B. The broker’s identification
C. The reason the property is for sale
D. How long the property has been on the market
175. Why would a property with a rectangular system description also have a metes and bounds legal description?
A. Because the property is irregular in shape
B. Because the property is larger than 20 acres
C. Because the law requires it
D. Because the property is agricultural
176. Should a licensee who represents both the buyer and seller tell the buyer about material defects on the seller’s property?
A. No, material defects cannot be shared with the buyer when dual agency exists.
B. Yes, any defects known to the broker should have been disclosed to the buyer.
C. No, the broker can only disclose material facts that the seller tells him to disclose.
D. No, caveat emptor would apply in this case.
177. Home Hoarding Realty is advertising to the public that their managing broker has been in the business 37 years and has sold over 1,250 homes. This is an example of
A. selfish advertising.
B. product advertising.
C. institutional advertising.
D. antitrust advertising.
178. Which of these statements about an independent contractor is false?
A. A broker cannot tell an independent contractor how to work.
B. He or she is reimbursed for all business expenses.
C. He or she is paid commission on all sales.
D. He or she will have to pay income taxes.
179. Robert owns his property and enjoys the full bundle of rights. Can he use his property as collateral for debt?
A. Yes, Robert can encumber the property, but only if the debt is less than $10,000.
B. Yes, Robert can encumber his property.
C. No, Robert cannot encumber his property.
D. Yes, Robert can encumber the property, but only if the debt is more than $50,000.
180. Broker Torrey hires salesperson Wes as an independent contractor. As an independent contractor, Wes can expect which of the following from Broker Torrey?
A. Company laptop
B. Performance expectations
C. Paid time off
D. Healthcare policy
181. Broker Jack has an agreement with seller Mauve that says Jack will receive compensation if anyone except Mauve sells Mauve’s home. This is an example of
A. enclave agency.
B. exclusive agency.
C. net agency.
D. exclusive right to sell agency.
182. Broker Ron wants to open a separate escrow account for each transaction he is involved in. Is this legal?
A. No, only lawyers and trust companies can open escrow accounts.
B. No, each broker can only have one escrow account.
C. Yes, this is legal unless he has more than three escrow accounts open at once.
D. Yes, there is no legal limit on the number of escrow accounts a broker can have.
183. What is the most common lease term for space in an office building?
A. 3-6 months
B. 2 years
C. 1 year
D. 3-5 years
184. If a comparable has one less bathroom than the subject, an adjustment is made by
A. adding value to the subject.
B. deducting value from the subject.
C. adding value to the comparable.
D. deducting value from the comparable.
185. Under the _______ of recording, title passes when the conveyance is registered on the title certificate.
A. Binder system
B. Torrens system
C. Metes system
D. Meridans system
186. In the appraisal process, looking at the number of recreational facilities, the distances to schools and adequacy of public transportation is called
A. demographic analysis.
B. market data approach.
C. neighborhood analysis.
D. comparative market analysis.
187. Which is false regarding a promissory note?
A. The property is collateral for the promissory note.
B. A promissory note is a negotiable instrument, which means that the lender can sell the note to a third party.
C. It is the primary evidence of a loan.
D. It is the term used for a note that is guaranteed or insured by a governmental agency.
188. The system of land ownership in the United States is known as what?
A. The allodial system
B. The feudal system
C. The aristocratic system
D. The riparian system
189. The assessed value of Sidney’s home is $350,000 but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does Sidney have?
A. She can file a complaint with the local board of assessment review.
B. She can opt to pay her tax bill based on the appraisal of $225,000.
C. She must file an appeal to adjust the millage rate.
D. Sidney has no option and must simply pay the large tax bill.
190. How might a voidable contract become valid?
A. If the party who has reason to disaffirm the contract elects instead to perform it
B. If neither party agrees to the terms
C. If the party who wants to enforce the contract seeks damages
D. If the party who wants to enforce the contract seeks legal relief
191. Seller Monica is selling her property to Harriet. What is Monica’s primary responsibility at closing?
A. To deliver marketable title
B. To ensure the closing is conducted properly
C. To ensure her agent gets paid
D. To sign Harriet’s new mortgage documents
192. Why is designated agency a good alternative to traditional dual agency?
A. Fair housing laws do not apply to transactions involving designated agency.
B. Even though the same broker represents each party, both the buyer and seller have a licensee who exclusively acts as their agent in the transaction.
C. Designated agency is legal in all 50 states while dual agency is banned in every state.
D. Only the broker is involved in the transaction and the parties do not have an exclusive agent.
193. Which parties typically purchase title insurance once the transaction is complete?
A. The HUD and seller
B. The lender and buyer
C. The licensee and buyer
D. The broker and lender
194. Justin defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Justin’s house sold for $339,000 and the unpaid balance of his loan is $400,000. What must the lender do to recover the $61,000 Justin still owes?
A. Nothing, they cannot recover the $61,000.
B. Seek a deficiency judgment.
C. Contact their state’s Recovery Fund for compensation.
D. Seek a quitclaim suit.
195. A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have?
A. To sue for specific performance
B. To sue the state’s Recovery Fund
C. No recourse
D. To sue the seller’s broker for breaking the contract
196. Which of the following statements is false regarding a tenancy in common?
A. The co-owners must be married.
B. The tenants share an indivisible interest.
C. All tenants in common have distinct and separable ownership of their respective interests.
D. Any number of people may be co-tenants in a single property.
197. Vicky was posing as a customer of Establishment Realty. However, she was really there to see if Establishment Realty was following fair housing laws. Vicky was a
A. tester.
B. block watcher.
C. yellowliner.
D. checker.
198. Gerald is 55, single, and resides on his 3 acre property. Why will Gerald qualify for a homestead exemption?
A. Because he is over 50 years old
B. Because he is single
C. Because he lives on the property
D. Because the property is larger than 1 acre
199. An income producing property rents for $2,790 per month and the GRM is 97. What is the estimated market value of the property?
A. $270,630
B. $287,370
C. $1,004,400
D. $301,550
200. Broker Jon is attaching a rider strip to a For Sale sign. What information is most likely on this rider strip?
A. Jon’s license number
B. A picture of Jon
C. The owner’s phone number
D. Jon’s cell phone number
201. Neal’s home has been foreclosed on and sold at a Sheriff’s sale. The sale brought in $500,000 and the total liabilities on the home were $425,000. Who receives the additional $75,000?
A. The lender
B. Neal
C. The purchaser of the property
D. The state’s Real Estate Commission or Recovery Fund
202. A(n) ________ is one that conflicts with the ordinances that were enacted after the use commenced.
A. illegal conforming use
B. enhanced nonconforming use
C. escheat use
D. legal nonconforming use
203. The size of jurisdiction’s tax base is derived by
A. adding exemptions to market values.
B. dividing the number of eligible properties by the total number of properties.
C. subtracting exemptions from assessed values.
D. multiplying the total income of the jurisdiction’s property owners by the millage rate.
204. A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms is a(n)
A. bridge approval.
B. delivered approval.
C. conditional approval.
D. permanent acceptance.
205. Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy?
A. Bilateral
B. Option
C. Chance
D. Recovery
206. Non-judicial foreclosure is required to foreclose on a
A. Deed of Recovery.
B. Chain Deed.
C. Deed of Trust.
D. Deed of Liability.
207. What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P&I payment of $3,780?
A. $779,470
B. $776,220
C. $776,750
D. $779,121
208. Homeowner Louise has been lax in protecting her property rights. According to the ___________, Louise may lose those property rights.
A. Doctrine of De Jure
B. Doctrine of Laches
C. Stringent Theory
D. Torrens Theory
209. Which of the following would be considered community property in a community property state?
A. A car the spouses bought together after the marriage
B. Income received from stocks owned by one spouse
C. Property inherited by one spouse after the marriage
D. A coin collection bought by a spouse before the marriage
210. One of the major considerations in a master plan is
A. how to best maximize tax revenue.
B. the effect of new development on traffic patterns and the environment.
C. the effect on the voting boundaries of an area.
D. the effect on the culture of an area.
211. Which clause protects a lender if he does not want the loan to be assumed by another party?
A. Abandonment
B. Subordination
C. Satisfaction
D. Alienation
212. Which of the following is a valuable skill for a property manager to have?
A. Knowledge of building systems
B. Knowledge of how to steer tenants into specific buildings
C. Knowledge of appraisal
D. Knowledge of mortgage disclosure
213. A tenant who stays beyond his lease without consent of the landlord is known as
A. a tenant at request.
B. a freeload tenant.
C. a tenant at sufferance.
D. an encroaching tenant.
214. Which principle is used with the Sales Comparison Approach to value?
A. Substitution
B. Anticipation
C. Contribution
D. Assemblage
215. A town is replacing a sidewalk that serves eight homes. The length of the sidewalk is 900 feet. Laura’s property has 60 feet of the sidewalk. If the cost of the project to be paid by a special assessment is $18,000, what will Laura’s assessment be?
A. $775
B. $900
C. $1,200
D. $2,400
216. A cooperative is
A. a type of residential property.
B. a type of commercial property.
C. a hybrid between residential and recreational property.
D. a type of institutional property.
217. Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the grant. What type of estate existed?
A. Fee simple defeasible
B. Freehold estate with reversion
C. Life estate with condition subsequent
D. Fee simple absolute
218. “This property has the best view in the entire county.” This statement is an example of
A. fraud.
B. unintentional misrepresentation.
C. puffing.
D. a fair housing violation.
219. A property has a Gross Income Multiplier of 14, and value of $800,000. What is its annual income?
A. $50,000
B. $57,143
C. $66,667
D. $11,200,000
220. Carla has been walking across a path on John’s property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla?
A. An easement by necessity
B. An easement by prescription
C. An encroachment by necessity
D. Ownership by prescription
221. Which of the following best describes the principle of conformity?
A. The value of a home increases when the supply is short.
B. A home maintains its highest value by being in a neighborhood with similar-type housing.
C. A property will decrease in value if there are rumors of a zoning change.
D. Valuewise, it is best for a neighborhood to have little demographic diversity.
222. Who can qualify for an FHA loan?
A. Eligible veterans only, or widows of veterans who have not remarried
B. People with a net worth over $1,000,000
C. Anyone with qualified income
D. Only members of protected classes
223. Francis just signed the papers on a conventional 30-year, $210,000 loan. He was wondering what type of interest will he be paying on the loan. What is the correct answer?
A. Complex interest
B. Simple interest
C. Revolving interest
D. Repetitive interest
224. Why is the condition of bearing walls more important than non-bearing walls?
A. Bearing walls protect the home from the outdoor elements and radon gas.
B. Bearing walls are part of the interior framework of the house.
C. Bearing walls support the ceiling and the roof.
D. Bearing walls are much weaker than non-bearing walls.
225. Jordan has a month-to-month lease with landlord Greg. What type of lease did Jordan sign?
A. Estate from period-to-period
B. Estate at sufferance
C. Estate at will
D. Estate at easement
226. Unlike buyer/seller agency agreements that create _________, the management agreement creates ________.
A. general agency, special agency
B. universal agency, special agency
C. special agency, universal agency
D. special agency, general agency
227. Bobbie decided to redeem her property after a tax sale. Bobbie exercised her
A. legal right of rescission.
B. statutory right of redemption.
C. optional right of disclosure.
D. required right of recourse.
228. A broker induces an owner to sell by telling him that Muslims are moving into the neighborhood. This broker is guilty of
A. greenlining.
B. conversion.
C. testing.
D. blockbusting.
229. What is another common name for the lot and block system of legal descriptions?
A. The metes and bounds system
B. The recorded plat method
C. The urban survey system
D. The triangular plat method
230. Which of these activities is appropriate to do within the first few days of obtaining a listing?
A. Discuss modifying the listing price.
B. Discuss the protected classes the sellers do not want to show the home to.
C. Require the sellers to pay for a formal appraisal.
D. Have the managing broker send a “thank you for listing” letter to the sellers.
231. Mary abandoned her property by failing to pay its property taxes, and the property reverted to the state. This is an example of
A. condemnation.
B. a zoning exception.
C. escheat.
D. eminent domain.
232. How does Planned Unit Development zoning differ from ordinary zoning?
A. It applies only to residential and commercial properties.
B. It is organized by HUD instead of local zoning committees.
C. It requires developers to obtain a separate building permit for every structure.
D. It requires that multiple tracts of land be developed according to a single design for efficient use of space.
233. Morgan owned a large condominium on the ocean. She died and no legal heirs were found. Who will receive title to the property?
A. The state or county
B. The previous owner of the condominium unit
C. The Federal Government
D. The developer of the condominium complex
234. On a $280,000 loan, the lender charges a 2 point service charge. How much does the borrower have to pay for just these two points?
A. $28,000
B. $560
C. $2,800
D. $5,600
235. Given the net income of a property, the appraiser can determine an opinion of the value for that property by
A. multiplying by the rate of depreciation.
B. multiplying by the rate of economic appreciation.
C. dividing by the percent of capital gains.
D. dividing by the rate of capitalization.
236. Which of these is a violation of Sherman Antitrust laws?
A. Commingling
B. Zoning
C. Redlining
D. Market allocation
237. Which of the following types of property sales typically requires a property condition disclosure?
A. A transfer of an interest that is less than fee simple
B. A foreclosure or deed-in-lieu of foreclosure
C. A property transferred to the seller’s parent
D. A three unit, multi-family dwelling
238. What are the primary advantages of PEX piping?
A. PEX piping is lightweight but not flexible.
B. PEX piping is able to withstand both high and low temperatures and it is highly resistant to chemicals.
C. PEX piping is strong and sturdy.
D. PEX piping is ideal for septic systems and sewer systems.
239. A buyer told broker Lena that she wants to move to a Cuban neighborhood. Then the buyer asked if Lena could show her the best home in a Cuban area. How should Lena respond to this request?
A. Lena should comply with this request to the best of her abilities.
B. Lena should explain to the buyer that she ethically and legally cannot recommend housing based on national origin.
C. Lena should not answer the question unless the buyer offers to pay her more.
D. Lena should refer the buyer to a brokerage that can legally steer buyers.
240. What is a forecast of income and expenses that can be projected over five years?
A. Cash flow statement
B. Stabilized budget
C. Balance Sheet
D. Capital budget
241. Which of the following would qualify as an example of retail property?
A. A hospital
B. A farm
C. A shopping center
D. A warehouse
242. Escrow moneys should be held in the broker’s
A. business account.
B. personal account.
C. escrow account.
D. safe.
243. A type of mortgage which allows the lender to increase the outstanding balance of a loan up to the original amount of the loan in order to advance additional funds is called an
A. wraparound mortgage.
B. take-out mortgage.
C. open-end mortgage.
D. spiral mortgage.
244. Which form does RESPA require lenders to use to detail the costs that the buyer and seller will pay at closing?
A. Loan Estimate
B. Truth-in-Lending Form
C. Closing Disclosure
D. RESPA Settlement Statement
245. Broker Austin represents a party in a transaction where there is a dispute regarding the deposited escrow money. What should Austin do?
A. Hold the money until both parties (or their lawyers) provide a written release.
B. Claim the escrow money for himself and move it into his personal account.
C. Split the money evenly between the buyer and seller and let them fight it out.
D. Immediately release the money to the party he represents.
246. The cost of doing direct mail advertising depends on
A. the amount you have to pay the state’s Real Estate Commission for approval.
B. the frequency of the mailings.
C. the percent of people that reply.
D. the date of the mailing.
247. Which of the following wills may be considered invalid?
A. A will written by someone who is only 23
B. A will that is not signed
C. A will that is indicated to be a “last will and testament”
D. A will that has been completed voluntarily
248. What type of agency cannot be revoked by the principal, nor is terminated if the principal dies?
A. Dual agency
B. Universal agency
C. Agency coupled with an interest
D. Agency coupled with fraud
249. What is the definition of “valuable consideration” in regard to contract validity?
A. Cash or cash equivalents
B. Tangible goods
C. Something specifically offered in exchange for something else
D. Something offered by only one party
250. Real estate licensees should know enough about building ordinances to be able to
A. conduct a professional home inspection.
B. provide solid legal advice.
C. answer all client questions about a building’s compliance.
D. alert clients of potential problems in a home.
251. The Quarry Mountain Subdivision requires all properties to have fences that are at least 8 feet tall surrounding each property. This is an example of
A. a zoning restriction.
B. an easement.
C. escheat.
D. a deed restriction.
252. The essential criteria for an acceptable legal description is that it
A. only contains the mailing address.
B. accurately locates the parcel when using Google Maps.
C. accurately locates the parcel in the opinion of a court.
D. includes at least 2 landmarks.
253. Licensee Alex only represents the buyer in a transaction. What is Alex called in this situation?
A. A listing agent
B. A dual agent
C. A single agent
D. A married agent
254. Earl orally agreed to a 18-month lease with landlord Blake. Is this contract enforceable?
A. Yes, all oral leases are enforceable.
B. No, all leases for longer than one year must be in writing to be enforceable.
C. Yes, all leases for longer than 6 months are enforceable.
D. No, it is not enforceable unless Earl is older than 50 years old.
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