What will happen to ownership of real property when an owner dies leaving no heirs and no will?

A. The ownership will pass by devise.

B. The ownership will escheat to the state.

C. The courts will seize the ownership.

D. The ownership will revert to the previous owner

The condemnation of private property for public use is exercised under the government right of:

A. taxation.

B. escheat.

C. police power.

D. eminent domain

To claim title to a certain property, an adverse possessor would:

A. foreclose.

B. file a suit to quiet title.

C. file a quitclaim deed.

D. record a warranty deed.

A transfer of real property under a will is called:

A. Legacy.

B. Bequest.

C. Demise.

D. Devise

A single person owned a parcel of land. Subsequent to the owner's death the probate court determined the distribution of the land in accordance with the state's statutes. This person:

A. died testate.

B. died intestate.

C. was the devisee.

D. was the grantee. 

To pass personal property, such as furniture and vehicles, by a will is called a:

A. demise.

B. bequest.

C. devise.

D. descent

In the purchase of real estate, the buyer is probably acting in which of the following legal capacities?

A. Grantor.

B. Vendor.

C. Grantee.

D. Mortgagee.

Giving real property to the government, with the government accepting it for public use is called:

A. devise.

B. dedication.

C. desecration.

D. accretion

The acquisition of property by open, visible, continuous, hostile and notorious possession of someone else’s property for the statutory time period is called:

A. partition action.

B. adverse possession.

C. foreclosure.

D. specific performance

Which of the following is a voluntary alienation of the property?

A. Adverse possession.

B. Condemnation.

C. Foreclosure.

D. Owner selling the property

The primary purpose of a deed is to:

A. prove ownership.

B. transfer title rights.

C. give constructive notice.

D. prevent adverse possession.

To pass legal title to real estate, a deed must be:

A. signed by the grantor and the grantee.

B. signed by the grantee only and recorded.

C. signed by the grantor only and recorded.

D. signed by the grantor only and delivered to, and accepted by, the grantee

Which of the following is NOT a requirement of a valid deed?

A. A granting clause (words of conveyance).

B. Signature of the competent grantee.

C. An adequate description of the property being conveyed. D. The grantor’s name and signature. 

Which of the following would LEAST likely be in a deed?

A. A competent grantor.

B. An expiration date.

C. A legal description.

D. A granting clause.

What kind of deed is used to clear up a cloud on the title?

A. Trust deed.

B. Sherriff’s deed.

C. Quitclaim deed.

D. Warranty deed

C. Quitclaim deed.

note: A Quitclaim deed can be used to  convey less than fee simple or to cure a title defect

The deed best protecting the grantee is:

A. a special warranty deed.

B. a quitclaim deed.

C. a general warranty deed.

D. a bargain and sale deed

When the grantor does not wish to convey certain property rights, he or she:

A. must note the exceptions in a separate document.

B. may not do so, as the deed conveys the entire premises. C. may note the exceptions in the deed of conveyance.

D. must convey the entire premises and have the grantee reconvey the rights to be retained by the grantor.  

The deed giving the least protection to a buyer is:

A. a special warranty deed.

B. a general warranty deed.

C. a quitclaim deed.

D. a Sherriff’s deed

Prior to recording a deed in the public records, it must be signed and acknowledged by:

A. the grantee.

B. the listing broker.

C. the grantor.

D. the closing attorney.

What is the basic purpose of acknowledgement before a notary public in signing a deed?

A. To make the deed eligible for recording.

B. To assure that the title is valid.

C. To show the genuineness of the grantor’s signature.

D. To prove that the property has not been encumbered.

Deeds are recorded to provide:

A. actual notice.

B. adverse notice.

C. constructive notice.

D. published notice. 

Recording a valid warranty deed will actually:

A. transfer ownership.

B. determine the priority of property tax liens.

C. prevent future claims against the ownership.

D. provide constructive notice of an individual rights or interest.

Documents affecting real estate are recorded or filed in the county in which the property is located to:

A. enable interested parties to know where to look to discover the various interests of other parties to the transaction.

B. give actual notice of the grantee’s interest in the property.

C. comply with the terms of the statute of frauds that all transfers for more than one year be in writing and signed. D. prove the validity of the execution of the document.

A special warranty deed differs from a general warranty deed in that the grantor’s covenant in the special warranty deed:

A. applies only to the period of time the grantor held ownership.

B. covers the time back to the original titles.

C. is implied and is not written in full.

D. protects all subsequent owners of the property.  

Which of the following is true regarding a special warranty deed?

A. The grantor is making additional warranties beyond those given in a warranty deed.

B. The grantor retains an interest in the ownership.

C. The grantor is warranting that no encumbrances exist against the property.

D. The grantor’s warranties are limited to the time the grantor owned the property

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that:

A. the seller owned the property.

B. there are no encumbrances against the property.

C. the buyer now owns the property subject to certain claims of the seller.

D. all of the seller’s interests in the property belong to the buyer.

 D. all of the seller’s interests in the property belong to the buyer.

note: quitclaim deed A conveyance that transfers whatever interest the grantor has in the specified real estate, without warranties or obligations.

In which of the following situations could a quitclaim deed NOT be used?

A. To transfer title of property.

B. To release the interest of the grantor.

C. To release a cloud on the title.

D. To warrant that a title is valid

Which of the following deeds is frequently used to remove a cloud on the title, provide the grantee with the least protection and contains no expressed warranties?

A. General warranty deed.

B. Special warranty deed.

C. Quit claim deed.

D. Security deed

Which of the following deeds is most commonly used in the United States, provides the greatest protection and the grantor defends the title back to its beginning?

A. Quitclaim deed.

B. Bargain and sale deed.

C. General warranty deed.

D. Special warranty deed

A seller sold a property to a buyer knowing that there was an unrecorded claim against the property. Would the buyer have marketable title?

A. Yes, unrecorded claims are not valid.

B. Yes, once the title is conveyed all existing claims are void.

C. No, there is a cloud on the title.

D. No, the deed cannot be recorded. 

A lien on the property that has not been released by a lien holder would create:

A. a cloud on the title.

B. a latent defect.

C. an encroachment.

D. a deed restriction

A suit to quiet title refers to:

A. a title insurance company’s search of the title.

B. a mortgagor relinquishing title after foreclosure.

C. the deposit of a title with an escrow agent.

D. the removal of a cloud on the title by a court action. 

In a divorce settlement, the woman received ownership to the house. While selling the house, a title search revealed the ex-husband’s name was still indicated in public record as an owner. If she is unable to locate him, her best action would be to:

A. claim ownership by adverse possession.

B. file a suit to quiet title.

C. file a quitclaim deed.

D. file an action in court to partition the property

Which of the following would be used to clear a defect from the title records?

A. A lis pendens.

B. An estoppel certificate.

C. A suit to quiet title.

D. A writ of attachment

In Georgia, a title search starts with the present owner and is traced back how many years?

A. 14.

B. 21.

C. 50.

D. 99

The history of all owners of a specific parcel of real estate is the property’s:

A. chain of title.

B. certificate of title.

C. title insurance policy.

D. abstract of title

A written summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called a(n):

A. Affidavit of title.

B. certificate of title.

C. abstract of title.

D. title insurance policy

The best reason for a buyer to obtain title insurance is:

A. that the mortgage lender requires it.

B. to ensure that the seller can deliver marketable title.

C. to ensure that the abstractor has prepared a complete summary of title.

D. to pay future liens that may be filed.

Which of the following is TRUE about title insurance?

A. It ensures against future losses.

B. It protects the insured from events before the policy was issued.

C. It covers changes in land used brought about by zoning ordinances.

D. It includes defects known to the buyer. 

A document that protects against hidden risks such as forgeries and loss due to defects in the title, subject to specific exceptions, is called a(n):

A. chain of title.

B. abstract of title.

C. certificate of title.

D. title insurance policy.

When a claim is settled by a title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. This is known as:

A. caveat emptor.

B. surety bond.

C. subordination.

D. subrogation

D. subrogation

note: subrogation= When a title company makes a payment to settle a claim covered by a policy, the company generally acquires the right to any remedy or damages available to the insured

The mortgagee received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is TRUE?

A. The policy is issued for the benefit of the buyer.

B. The policy guarantees that the buyer’s equity will be protected.

C. The amount of coverage is commensurate with the loan amount.

D. The amount of coverage increases as the borrower’s equity increases

Title insurance is the best protection a buyer and/or lender may have. Which of the following statements concerning title insurance is MOST true?

A. Both the buyer and the lender are protected against title defects by one single policy.

B. Title insurance protects against physical defects to the party named in the policy.

C. Only one premium is paid, per policy, and the policy protects the named beneficiary.

D. It requires a certificate of ownership issued by the county court

A tenant signed a written nine month lease with a specific expiration date and no notice is required to terminate. This is MOST LIKELY which of the following leasehold estates?

A. Estate (tenancy) for years.

B. Estate (tenancy) at sufferance.

C. Estate (tenancy) from period to period.

D. Estate (tenancy) at will.

A tenant has agreed to lease property under a leasehold estate for years. Under such an agreement:

A. the term of the lease must be for at least one year.

B. no notice is required to terminate the lease.

C. a 30-day notice is required by the tenant to terminate the lease.

D. the tenant would have a freehold estate

The principal difference between an estate for years and an estate from year to year is:

A. an estate for years is a life estate.

B. an estate for years cannot be terminated.

C. an estate from year to year must be in writing.

D. an estate from year to year has no expiration date

A tenant has an estate for years. According to the written one-year lease, the tenancy will expire on May 1st. To obtain possession as of that date, the landlord:

A. must give the tenant

30 days notice.

B. must give the tenant 60 days notice.

C. must give the tenant notice before April 15th.

D. is not required to give the tenant any notice.

Which of the following leasehold estates does not require a notice to terminate?

A. A period to period estate.

B. A holdover tenant.

C. An estate for years.

D. An estate at will

A tenant leases the property on a yearly basis with the understanding that the lessor or lessee could terminate the lease by giving the other party a 60 day notice. This is MOST LIKELY an:

A. estate from period to period.

B. estate for years.

C. estate at will.

D. estate at sufferance. 

A. estate from period to period.

note: An estate (tenancy) from period to period, or periodic tenancy, is created when the landlord and tenant enter into an agreement for an indefinite time—that is, the lease does not contain a specific expiration date. Such a tenancy is created initially to run for a definite amount of time—for instance, month to month, week to week, or year to year—but the tenancy continues indefinitely until proper notice of termination is given. 

A commercial building is leased to one tenant for a period of ten years. This is an example of:

A. estate from year to year.

B. estate at will.

C. estate at sufferance.

D. estate for years.

D. estate for years.

note: An estate (tenancy) for years is a leasehold estate that continues for a definite period. That period may be years, months, weeks, or even days. An estate for years (sometimes called an estate for term) 

When a tenant holds possession of a landlord’s property for an uncertain duration but with the consent of the landlord, this is called:

A. tenancy in common.

B. tenancy at sufferance.

C. tenancy at will.

D. trepass

C. tenancy at will.

note: gives the tenant the right to possess property with the landlord’s consent for an unspecified or uncertain term. An estate at will is a tenancy of indefinite duration; it continues until it is terminated by either party giving proper notice. 

The Tolson’s apartment lease has expired, but their landlord has indicated to them that they may continue to rent the apartment until a sale of the building is closed. They will be charged their normal monthly rental during this period. The right held by the Tolson’s is called a(n):

A. year to year holdover.

B. estate for years.

C. estate at sufferance.

D. tenancy at will

D. tenancy at will

note: An estate (tenancy) at will gives the tenant the right to possess property with the landlord’s consent for an unspecified or uncertain term. An estate at will is a tenancy of indefinite duration; it continues until it is terminated by either party giving proper notice.

A lessee is in possession of property under a tenancy at will. Which of the following is true?

A. The lessee has not received the consent of the landlord to possess the property.

B. The tenancy will terminate if the lessee dies.

C. The tenancy was created by the death of the lessor.

D. The tenancy has a definite termination date.

Baird signed a three-year lease to occupy a house. When the lease expired, Baird continued to live in the house without the owner’s consent. Baird is considered a:

A. landlord.

B. holdover tenant.

C. lessor.

D. devisee

B. holdover tenant.

note: holdover tenant may be created when a tenant with an estate for years stays on after the lease term expires and the landlord accepts rent payment.

A tenant’s lease has expired, but the tenant has not vacated the premises or negotiated a renewal lease. The landlord has declared that the tenant is not to remain in the building. This situation is an example of:

A. an estate for years.

B. an estate from year to year.

C. tenancy at will.

D. tenancy at sufferance. 

D. tenancy at sufferance. 

note: An estate (tenancy) at sufferance arises when a tenant who lawfully took possession of real property continues in possession of the premises without the landlord’s consent after the right of possession has expired

The owner of real estate who leases it to another is called the:

A. vendor.

B. lessor.

C. grantor.

D. trustor.

The statute of fraud requires that lease agreements:

A. provide some form of security deposit to be held by the landlord.

B. cannot be assigned or subleased by the tenant.

C. for one year or less to be in writing to be enforceable.

D. for more than one year to be in writing to be enforceable.

A lease that will terminate within one year of its inception: A. is invalid.

B. violates the provisions of the statute of frauds.

C. must be in writing.

D. may be oral

Which of the following lease contracts should be written?

A. Month to month.

B. Six months to six months.

C. Year to year.

D. Any term greater than a year. 

Rent would best be defined as:

A. contractual consideration to a third party.

B. consideration for the use of real property.

C. all monies paid by the lessor to the lessee.

D. the total balance owed under the terms of a lease

B. consideration for the use of real property.

note: rent= A fixed, periodic payment made by a tenant of a property to the owner for possession and use, usually by prior agreement of the parties. 

A tenant leased a house from an owner. When the tenant was ready to move in, she discovered that another person was in possession. She would not have to pay the rent to the owner because of the covenant of:

A. seizing.

B. quiet enjoyment.

C. further assurance.

D. warranty forever

B. quiet enjoyment.

note: quiet enjoyment= The covenant implied in a lease that ensures that the landlord will not interfere in the tenant’s possession or use of the property

The covenant implied in a lease that ensures that the landlord will not interfere in the tenant’s possession or use of the property is the covenant:

A. of seizing.

B. of quiet enjoyment.

C. of warranty forever.

D. against encumbrances.

John Marlow, lessor, has leased his apartment to Jane Jones, lessee. He has put a clause in the lease agreement stating that he will not be responsible for any injuries occurring on the property. This clause is an example of a(n):

A. alienation clause.

B. exculpatory clause.

C. escalation clause.

D. subordination clause

B. exculpatory clause.

note: A clause in a contract, lease or loan document where one party waives or limits the other party's liability. A landlord often includes an exculpation clause to limit its liability under the lease to the landlord's interest in the property.

When a tenant sublets all or any part of the premises rented under a written lease:

A. the tenant assigns all rights, and interests in the rented property to the new lessee.

B. the sub-lessee becomes primarily responsible to the landlord for the payment of rent and maintenance of the property.

C. the original lease is automatically canceled and the sub-lessee takes possession of the property on a month to month basis.

D. the original lease is unaffected unless it contains a provision that prohibits such subletting

A tenant’s lease does not terminate for five years. The premises, however, have become too small to accommodate the tenant’s growing business. Another business owner is interested in leasing the premises from the current tenant for three years. Which of the following would the parties use for the current tenant to lease the space to the business owner?

A. An assignment.

B. A novation.

C. A sublease.

D. A tenancy at sufferance.

C. A sublease

note: sublease/subletting= The leasing of premises by a lessee to a third party for part of the lessee’s remaining term

In a gross lease, the operating expenses are paid by the:

A. lessee.

B. lessor.

C. shared by both.

D. property manager.

B. lessor.

note:  in a gross lease, A lease of property according to which a landlord pays all property charges regularly incurred through ownership, such as repairs, taxes, insurance, and operating expenses.

***Most residential leases are gross leases. 

Which of the following leases is usually used for retail business?

A. Gross lease.

B. Percentage lease.

C. Ground lease.

D. Lease purchase.

B. Percentage lease.

note: percentage lease A lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premises; it usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount. 

In a percentage lease, the tenant agreed to pay $1,500 per month plus 5 percent of the business's annual sales exceeding $200,000. On annual sales of $260,000 the tenant annual rent would be:

A. $18,000.

B. $21,000.

C. $28,000.

D. $31,000.

Which of the following statements is LEAST true regarding a sale/leaseback transaction?

A. The old owner retains possession of the real estate.

B. The new owner may depreciate the value of the improvements.

C. The old owner may not deduct any rental payments as a business expense.

D. The new owner receives any appreciation in property value. 

C. The old owner may not deduct any rental payments as a business expense.

note: sale-and-leaseback A transaction in which the owner sells improved property and, as part of the same transaction, signs a long-term lease to remain in possession of the premises

The lessor and lessee have agreed to a lease term of five years. In order to ensure that the rental income during the term is reflective of market conditions, the lessor could:

A. negotiate a new lease each year.

B. collect an additional security deposit each year.

C. negotiate an index lease.

D. negotiate a gross lease.

C. negotiate an index lease.

note: An index lease allows rent to be increased or decreased periodically based on changes in the consumer price index or some other indicator.

A lease agreement in which the lessee agrees to purchase the property and a portion of the rent maybe applied toward a set purchase price is BEST described as a(n):

A. ground lease.

B. lease purchase.

C. lease option.

D. percentage lease.

B. lease purchase.

note: A lease purchase is used when a tenant wants to purchase the property but is not yet able to do so. Perhaps the tenant cannot obtain favorable financing or clear title, or the tax consequences of a purchase are currently unfavorable.

A lessor wanting to protect herself against inflation could contract for increased rental payments over a period of time by inserting an escalator clause. This lease is BEST described as a(n):

A. variable / graduated lease.

B. percentage lease.

C. gross lease.

D. net lease. 

A. variable / graduated lease.

note: may allow for increases in the rental charges during the lease term. A graduated lease provides for specified rent increases at set future dates.

A tenant leases a two-bedroom apartment. Due to ordinary wear and tear, the dishwasher breaks down. Who must pay for its repair?

A. The lessor.

B. The lessee.

C. The insurance company.

D. The real estate agent

An individual rents an apartment for one year. The landlord sells the building during the one year lease term. What effect does the sale have on the lease?

A. The sale does not affect the lease.

B. The lease is automatically terminated.

C. The new landlord will decide whether to honor the existing lease.

D. The lease is terminated after 60 days notice from the new owner

A lease can be terminated by all of the following EXCEPT:

A. expiration of the lease period.

B. mutual agreement of the parties.

C. sale of the rental property.

D. breach of the lease by either the landlord or tenant.

Which of the following types of leasehold estates will death automatically terminate?

A. Estate at will.

B. Estate from year to year.

C. Estate for years.

D. Fee simple estate.

Constructive eviction is:

A. the legal action to evict a tenant.

B. the legal action by the tenant to cancel the lease.

C. allowing a property to become uninhabitable by the landlord’s negligence.

D. the unlawful act of a tenant to quit the lease

C. allowing a property to become uninhabitable by the landlord’s negligence.

note: If a landlord breaches any clause of a lease agreement, the tenant has the right to sue and recover damages against the landlord. If the leased premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them

The tenant leases a heated apartment, but the landlord fails to provide heat. The tenant gives notice, vacates the premises and refuses to pay any rent. This is an example of:

A. abandonment.

B. actual eviction.

C. constructive eviction.

D. lessor negligence

C. constructive eviction.

note: If a landlord breaches any clause of a lease agreement, the tenant has the right to sue and recover damages against the landlord. If the leased premises become unusable for the purpose stated in the lease, the tenant may have the right to abandon them. 

The authority to carry out the eviction of a delinquent tenant from rented property comes from the:

A. court.

B. landlord.

C. sheriff.

D. property owner.

In the event that it is necessary for a landlord to remove a tenant from the premises, she does it by:

A. refunding any rents paid.

B. refunding any security or other deposits paid.

C. filing a suit for possession.

D. using the minimum amount of physical force necessary. 

Which of the following is the best definition of actual eviction?

A. The right of a landlord to use the rental premises.

B. The enforcement of a court order to remove a lessor.

C. The landlord’s reversionary right in the rental premises. D. The enforcement of a court order to remove a lessee.

A property manager’s primary obligation is to the:

A. tenants.

B. owners.

C. bankers.

D. government authorities.

A real estate broker acting as an owner’s property manager:

A. must not profit from private contracts at the expense of the owner.

B. may manage the client’s property to his/her own advantage.

C. need not maintain complete and accurate trust account records.

D. can personally collect the interest earned on trust account funds. 

The property manager’s chief concern should be that:

A. the property is seldom vacant because it is consistently rented at the lowest possible rents.

B. the property is managed to achieve the highest overall rate of return possible on the owner’s investment.

C. the property manager’s time is maximized in his/her management of the property.

D. the property exhibits the proper amount of the owner’s pride of ownership.  

A property manager is a:

A. special agent of the owner.

B. special agent of the tenants.

C. general agent of the owner.

D. general agent of the tenants

How is a property manager usually compensated?

A. A percentage of gross rents collected.

B. A percentage of gross rents.

C. A fee set by state regulatory agencies.

D. All of the property managers in a community agree to a certain fee

All of the following are important functions of a property manager EXCEPT:

A. supervising the maintenance of the property.

B. protecting the physical integrity of the property.

C. meeting the functional requirements of the tenants.

D. preparing the owner’s income tax returns

Successful property managers do all of the following EXCEPT:

A. screen the tenant’s ability to pay and their space needs. B. study rental rates in the area to get the best possible sense of supply and demand.

C. consider the type of business the tenant has and how it will fit businesses already on the property.

D. keep on good terms with tenants by overlooking infractions of building rules.

In preparing an operating budget, the property manager would MOST LIKELY consider which of the following items a fixed cost?

A. Replacement of furnace.

B. Property taxes.

C. Capital improvements.

D. Roof repairs

All of the following should be considerations in selecting a tenant for the property EXCEPT the:

A. size of the available space relative to the tenant's requirements.

B. tenant's ability to make the rental payments.

C. compatibility of the tenant's business with those of other tenants.

D. ethnic background of the tenant and his or her employees.

A resident manager is renting a duplex unit. In considering tenants, which of the following parties could the manager NOT discriminate against under the federal fair housing law?

A. A married couple.

B. An unmarried couple.

C. A financially capable couple.

D. A pregnant woman.

In determining rental amounts, a property manager considers the economic principle of:

A. marginal contribution.

B. supply and demand.

C. conformity.

D. balance

Adaptations of property specifications to suit tenant requirements are:

A. tax-exempt improvements.

B. tenants improvements.

C. prohibited by most nonresidential leases.

D. generally not a good idea.

All of the following would cause a high vacancy rate EXCEPT:

A. inept management.

B. poor location.

C. excessive rent.

D. very desirable amenities

An apartment manager could legally do which of the following?

A. Charge a higher security deposit to tenants that have children.

B. Segregating tenants with children into a separate section of the building.

C. Charge a higher rent to persons who have a handicap.

D. Evaluate potential tenants to determine if they have the ability to pay the rent

A property manager has established rules and policies which prohibit the use of the swimming pool by handicap tenants. Is this a violation of the fair housing laws?

A. Yes, the manager must make reasonable accommodations in rules and policies to allow a disabled person equal enjoyment of the pool.

B. Yes, the swimming area is considered a public area and cannot be controlled by the property manager.

C. No, the manager can restrict the use of any area for the safety of all tenants.

D. No, the federal fair housing laws are not based on handicap status

The type of maintenance that is most often neglected is:

A. corrective.

B. deferred.

C. routine.

D. preventive

When preparing his annual income tax return, the homeowner may be able to deduct all of the following EXCEPT:

A. real estate taxes.

B. loan discount points.

C. mortgage interest on a second home.

D. homeowner’s insurance premiums. 

A house was purchased for $40,000 and $20,000 of improvements were made over two (2) years. The property was later sold for $80,000. The $20,000 profit would be considered:

A. gross income.

B. a capital gain.

C. the tax cost basis.

D. the adjusted sales price.

Federal income tax regulations allow homeowners to reduce their taxable income by amounts paid for:

A. repairs and maintenance.

B. hazard insurance premiums.

C. real estate taxes.

D. principal and interest.

Homeowners may deduct all of the following expenses when preparing their income tax return EXCEPT:

A. real estate taxes.

B. mortgage interest on a first home.

C. mortgage interest on a second home.

D. mortgage interest on a third home.

Federal income tax law excludes gain realized on the sale of a primary residence for individuals filing separately and for couples filing jointly. The amount of this exclusion is (separately/jointly):

A. $100,000/$200,000

B. $125,000/$250,000

C. $250,000/$500,000

D. $300,000/$600,000