Determine your answer, then click the arrow to see the correct response.
Which of the Following Is Considered Personal Property?
A) A detached garage
B) A dining table
C) A built-in bookcase
D) A furnace
Correct Answer: B) A dining table
Explanation: Personal property is movable and not attached permanently to the real estate. A dining table can be moved.
An Estate That Lasts for an Indefinite Period and Is Inheritable Is Known As:
A) Life estate
B) Leasehold estate
C) Fee simple estate
D) Estate at will
Correct Answer: C) Fee simple estate
Explanation: Fee simple is the most complete form of ownership and lasts indefinitely.
What Is the Primary Purpose of the Real Estate Settlement Procedures Act (RESPA)?
A) To regulate mortgage interest rates
B) To ensure buyers receive full disclosure of closing costs
C) To provide funds for low-income housing
D) To establish standard forms for real estate transactions
Correct Answer: B) To ensure buyers receive full disclosure of closing costs
Explanation: RESPA is designed to protect consumers by requiring disclosure of all closing costs in a real estate transaction.
The "Right of Survivorship" Is a Characteristic of Which Type of Ownership?
A) Tenancy in common
B) Joint tenancy
C) Tenancy by the entirety
D) Community property
Correct Answer: B) Joint tenancy
Explanation: Joint tenancy includes the right of survivorship, meaning that upon the death of one tenant, their interest passes to the surviving tenants.
The Term "Eminent Domain" Refers To:
A) The right of a tenant to occupy a rental property
B) The government’s power to take private property for public use
C) A lender’s right to foreclose on a property
D) The process of leasing commercial property
Correct Answer: B) The government’s power to take private property for public use
Explanation: Eminent domain is the power of the government to take private property for public use, with compensation to the owner.
A Lease Agreement Where the Tenant Pays Rent Plus Some or All of the Property Charges (Such as Taxes, Insurance, and Maintenance) Is Called A:
A) Gross lease
B) Net lease
C) Percentage lease
D) Variable lease
Correct Answer: B) Net lease
Explanation: In a net lease, the tenant pays rent plus some or all of the property expenses.
An Encumbrance That Affects the Title of a Property, Such as a Mortgage, Is Called A:
A) Easement
B) License
C) Lien
D) Covenant
Correct Answer: C) Lien
Explanation: A lien is a claim or encumbrance on a property, such as a mortgage or tax lien, affecting the title.
A Buyer Finds a Defect in the Property After Closing. The Defect Was Not Disclosed but Was Known by the Seller. What Recourse Does the Buyer Have in Maine?
A) None, the sale is final
B) Sue the seller for misrepresentation
C) Report the seller to the Maine Real Estate Commission
D) Negotiate a post-closing repair agreement
Correct Answer: B) Sue the seller for misrepresentation
Explanation: The buyer can sue the seller for misrepresentation if the defect was known and not disclosed.
During a Property Inspection, an Issue With the Plumbing System Is Found. The Buyer Requests the Seller To Fix It Before Closing. The Seller Refuses. What Are the Buyer's Options in Maine?
A) Cancel the contract without penalty
B) Accept the property as-is
C) Negotiate a price reduction or credit at closing
D) All of the above
Correct Answer: D) All of the above
Explanation: The buyer can cancel the contract, accept the property as-is, or negotiate a price reduction or credit at closing.
In Maine, What Is Required for a Real Estate Contract To Be Considered Valid and Enforceable?
A) Verbal agreement
B) Written agreement signed by both parties
C) Notarized document
D) A deposit from the buyer
Correct Answer: B) Written agreement signed by both parties
Explanation: For a real estate contract to be valid and enforceable in Maine, it must be in writing and signed by both parties, in accordance with the Statute of Frauds.