Real Estate Exam National and State
A buyer and a seller enter into a binding agreement to sell a house. The sellers then refuse to sell the house to the buyer because they decide they want to continue living there. Which of the following principles of law will be used to sue the seller? Select one: A.Specific Performance B.Lesion beyond Moiety C.Redhibition D.Partition
A.Specific Performance
Salespeople cannot accept a commission or valuable consideration for the performance of any act under the license law from any person, except their Select one: A.Sponsoring broker. B.Associate broker. C.Sellers and buyers. D.All of the above.
A.Sponsoring broker.
You signed a lease for one year and took possession of an apartment. When the lease expired, you continued to live in the apartment without the owner's consent. Your tenancy would be considered to be a(n) Select one: A.Tenancy at sufferance B.Estate from year to year C.Tenancy at will D.Estate for years
A.Tenancy at sufferance
Which of the following is NOT a power of the Louisiana Real Estate Commission? Select one: A.Regulation of the issuance of licenses, registrations, and certificates. B.Creation and editing rights to the Louisiana Law of Agency C.Impose additional continuing education requirements on licensees, registrants, or certificate holders. D.Adopt all necessary rules and bylaws for the enforcement of the License Law.
B.Creation and editing rights to the Louisiana Law of Agency
The donation of property while living is called Select one: A.Donation Inter Venus B.Donation Inter Vivos C.Donation Vilas Causa D.Donation Mortis Causa
B.Donation Inter Vivos
A meat-packing plant has just been built one block from where your house is located. Strong odors emitted by the plant are lowering property values in your neighborhood. This loss in value would be classified as: Select one: A.Functional obsolescence. B.External Obsolescence. C.Physical deterioration. D.The principal of change.
B.External Obsolescence.
All of the following agencies are included in the secondary mortgage market EXCEPT the: Select one: A.FHLMC B.FHA C.GNMA D.FNMA
B.FHA
The amount of commission charged a client is established: Select one: A.In accordance with the Federal Consumer Protection Act B.In negotiations between broker and seller C.By agreement with local Real Estate Boards D.By the Louisiana State Legislature
B.In negotiations between broker and seller
John is appraising a property using the sales comparison approach. The subject property has an enclosed garage that is more valuable than the carport of one of his comparables. Which of the following statements is true? Select one: A.John will add money to the subject to make it compare in value with the comparable property. B.John will add money to the comparable property to make it compare in value with the subject property. C.John will subtract money from the subject property to make it compare in value with the comparable property. D.None of the above is true.
B.John will add money to the comparable property to make it compare in value with the subject property.
A limited partnership in Louisiana is called: Select one: A.Timeshare B.Partnership in commendam C.Corporation. D.Partnership in common.
B.Partnership in commendam
If a property is sold by the lessor during the term of the lease, the deposit should be turned over to the: Select one: A.Tenant. B.Purchaser. C.Escrow agent. D.Broker.
B.Purchaser.
Any corporation or partnership operating as a broker in the state of Louisiana must have a(an): Select one: A.Charter in the state of LA. B.Qualifying broker. C.$100,000 bond with the Louisiana Real Estate Commission. D.All of the above.
B.Qualifying broker.
You are appraising a property in which seller motivation is a significant factor. The motivation would be most important in utilizing which of the following? Select one: A.Gross rent multiplier method B.Sales comparison approach C.Income approach D.Cost approach
B.Sales comparison approach
A licensee is found guilty at a Real Estate Commission hearing and has his license suspended. The licensee appeals the decision in court. Which of the following is true? Select one: A.The licensee can only close any pending business during the appeal process. B.The licensee can list and sell during the appeal, but only if a stay of enforcement is granted. C.The licensee cannot list property during the appeal under any condition. D.The licensee must file an appeal within 60 days of the Commission decision.
B.The licensee can list and sell during the appeal, but only if a stay of enforcement is granted.
A broker with a great deal of business needs help from sales agents as soon as possible. He makes a deal with a license applicant to go ahead and knock on doors and turn all leads over to the broker. The broker suggests that any listings generated by this system will be turned over to the salesperson when he gets his license. Which of the following statements is true? Select one: A.This is legal because the new salesperson will not get the listing until he is licensed. B.This is illegal under the Louisiana License Law. C.This is legal because no commissions will be paid until after the salesperson receives a license. D.This is legal since the new salesperson applicant is only performing ministerial acts.
B.This is illegal under the Louisiana License Law.
Upon testate death of a spouse, the surviving spouse must be given: Select one: A.Abusus over all community property, and usus of separate property B.Usufruct over the community property C.Full or perfect ownership of half the property D.Naked ownership of all property
B.Usufruct over the community property
Acceptance of an irrevocable offer under Louisiana Civil Law is best defined as: Select one: A.When the offer is signed and that is communicated to the offeror. B.When the offer is signed and received by the offeror. C.When the offer is signed and dated by the offeree. D.When the original offer is signed in black ink.
B.When the offer is signed and received by the offeror.
Agent Johnson has been appointed by his broker as the agent of the seller in a listing agreement. Only Agent Johnson represents the seller, no one else in Agent Johnson's office. Agent Johnson is best described as: Select one: A.a single agent B.a designated agent. C.a dual agent. D.a transactional broker.
B.a designated agent.
A servitude requiring a property owner to maintain and not prevent the natural flow of water across his property is an example of Select one: A.a natural personal servitude B.a natural predial servitude C.a legal personal servitude D.a legal predial servitude
B.a natural predial servitude
Brokers get together and divide their market areas by region. This is: Select one: A.legal if you are a member of an MLS. B.a violation under Antitrust Laws. C.legal if you are in the same Board of Real Estate Agents. D.legal if you do not also set commission rates.
B.a violation under Antitrust Laws.
Salesperson A for broker B has listed a home. Salesperson C for broker D is trying to sell the home to his own buyer. Salesperson C is a designated agent. Salesperson C is primarily responsible to: Select one: A.Broker B. B.his own buyer. C.Broker D. D.Salesperson A.
B.his own buyer.
Refusing a tenant on the basis of their profession is Select one: A.illegal B.not a violation of Fair Housing C.only a technical violation D.none of the above
B.not a violation of Fair Housing
A competitive market analysis most likely determines the: Select one: A.sales price of the property. B.probable price of the property. C.appraised value of the property. D.highest price of the property.
B.probable price of the property.
If a client refuses to sign an agency disclosure, the licensee must Select one: A.sign the client's name to the refusal. B.put the time and date on the disclosure. C.keep it on file for 3 years.. D.All of the above.
B.put the time and date on the disclosure.
Disclosure of the existence of sex offenders in the neighborhood is Select one: A.required only if written in the contract. B.required in some states, regulations vary. C.required in all states. D.required only if they are on the list.
B.required in some states, regulations vary.
When acting as a dual agent, a licensee shall not disclose: Select one: A.information that is not confidential. B.the price the seller or landlord will take other than the listed price. C.the price the buyer will pay with written permission of the buyer. D.All of the above.
B.the price the seller or landlord will take other than the listed price.
An agent lists a property for sale under an Exclusive Right to Sell listing. The agent finds a buyer who makes an offer that is accepted by seller. The agent gets the commission: Select one: A. if the property is taken by eminent domain. B. only if there is an act of sale. C. if his client then decides not to sell. D. if the seller declares bankruptcy.
C. if his client then decides not to sell.
An equal housing opportunity logo or statement should appear Select one: A. in all office leases B. in all purchase agreements C. in all residential ads D. all of the above
C. in all residential ads
John owns of a piece of property and wants to build a new structure within 15 feet of his property line, however local law requires a 20 foot setback for any improvements. He should apply to the local government for a: Select one: A. nonconditional use permit. B. lis pendens. C. variance. D. zoning change.
C. variance.
A sale is to close on June 23. Real estate taxes of $2,640 for the current year have NOT been paid. What is the amount of the real estate tax proration to be credited to the buyer? (Use a 30-day month for calculation.) Select one: A.$168.67 B.$868.67 C.$1,268.66 D.None of the above
C.$1,268.66
The monthly scheduled rent on a building is $3800.00. It went to an Act of Sale on the 15th of December. Prorating through the Act of Sale, how much was the credit to the buyer for rent if the seller only collected $3600.00 in December? Select one: A.$1858.06 B.$2400.00 C.$1800.00 D.$1792.32
C.$1800.00
You receive a monthly salary of $600 plus 3.5 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you received $8,460 in salary and commission. What was the value of the property you sold? Select one: A.$131,000 B.$224,571 C.$314,400 D.None of the above
C.$314,400
The transfer fee for switching license status to inactive is: Select one: A.$55. B.$70. C.$45. D.$35.
C.$45.
The Louisiana Real Estate Commission is comprised of Select one: A.9 members appointed by the Governor B.11 members elected at large C.11 members appointed by the Governor D.6 members appointed by the Governor
C.11 members appointed by the Governor
After how many days notice after a buyer's default in payments may a Bond for Deed be cancelled? Select one: A.30 Days B.6 Months C.45 Days D.1 Month
C.45 Days
Which of the following is NOT a sanction possible by the disciplinary action of the LREC? Select one or more: A.A license suspension and a fine of $2000. B.A censure and a requirement to complete 20 hours of continuing education. C.A fine of $5000 and a prison term of 2 years. D.Revocation of a person's real estate license.
C.A fine of $5000 and a prison term of 2 years.
Consent of both parties to form a contract is established through: Select one: A.Lesion beyond moiety. B.Buyer and seller signing the contract. C.A licensed broker. D.Offer and acceptance
C.A licensed broker.
Which of the following types of transactions would NOT be considered federally related under TRID guidelines? Select one: A.Financed transactions involving residential property up to 4 units. B.Loan transactions made by banks who are insured by the FDIC. C.Cash sales recorded on public record. D.Loan transactions involving HUD.
C.Cash sales recorded on public record.
A foreclosure may be followed by a deficiency judgement only if there was a (an): Select one: A.Fraud involved in the sale. B.Foreclosure without appraisement. C.Foreclosure with appraisement. D.Provisions in the mortgage allowing a deficiency.
C.Foreclosure with appraisement.
Licensees are required to furnish to their clients a copy of any document which the client has signed pertinent to a real estate transaction: Select one: A.Within 10 calendar days. B.Within 5 calendar days. C.Immediately. D.Within 72 hours.
C.Immediately.
Which of the following bests describes a counteroffer? Select one: A.All other parts of the previous offer are binding if you change only the price. B.It is a negotiation tactic by sellers and buyers to get the best price. C.It terminates the previous offer by making a new one back to the other party. D.It must have a termination date.
C.It terminates the previous offer by making a new one back to the other party.
When land is expropriated by the state, the landowner may expect compensation as follows: Select one: A.The full appraised value of the land B.The sales price plus 5% per year of ownership C.Just compensation as well as other expenses such as moving expenses etc. D.The appraised value plus 15%
C.Just compensation as well as other expenses such as moving expenses etc.
Which of the following statements is true? Select one: A.Licensees must renew their license by March 31. B.Current E&O insurance is not required to hold an active license. C.Licensees need 12 hours of continuing education each year (except the first). D.Licenses are renewed every other year.
C.Licensees need 12 hours of continuing education each year (except the first).
The borrower under a note secured by a mortgage is known as the: Select one: A.Mortgagee B.Trustee C.Mortgagor D.Vendee
C.Mortgagor
A broker listed a property for 90 days. Soon after the listing expired, the owner sold the property to someone who had been shown the property by the broker during the listing period. The owner was obligated to pay the broker a commission on this. This obligation is covered in which clause of the listing agreement? Select one: A.Defeasance B.Alienation C.Protection D.Acceleration
C.Protection
A grantor wishes to convey title to a grantee in a deed that creates the least protection for the grantee. The grantor should give the grantee a: Select one: A.Bargain and Sale deed. B.Special Warranty deed. C.Quitclaim deed. D.General Warranty deed.
C.Quitclaim deed.
Which of the following is not a Ministerial act? Select one: A.Responding to phone inquiries by persons as to the availability and pricing of brokerage services B.Setting an appointment to view property C.Showing property and responding to questions about the property from a person D.All of the above are Ministerial acts
C.Showing property and responding to questions about the property from a person
A listing agent tells a customer buyer that the seller will probably take a little less than he is asking if he makes an offer right away even though he has not yet been willing to lower the asking price. Select one: A.This is legal, but not binding on the seller to accept the offer. B.This is called disclosed dual agency. C.This is a violation of the Louisiana Agency Law D.This is legal because it is in the best interests of the seller to get the house sold
C.This is a violation of the Louisiana Agency Law
Under which of the following circumstances may a salesperson lawfully refuse to show a home to a minority prospect who has specifically asked to see it? Select one: A.When the agent sincerely believes that such a showing will cause panic in the neighborhood B.When the owner has exercised her exemption under the 1968 Fair Housing law and designated her home as not available to minority persons C.When the owner is out of town and has instructed the agent that no showings may be made in her absence D.Never
C.When the owner is out of town and has instructed the agent that no showings may be made in her absence
You list your property for sale with a broker. The listing contract stipulates that the seller will receive $110,000 "net," with all proceeds over $110,000 being the broker's commission. This type of listing is: Select one: A.an exclusive-right-to-sell listing. B.an exclusive-agency listing. C.a net listing. D.an open listing.
C.a net listing.
All of the following might legally terminate a listing with a broker EXCEPT: Select one: A. inability of the broker to find a buyer within a reasonable amount of time. B. bankruptcy of the client. C. an economic depression. D. insanity of the broker.
C.an economic depression.
Any knowledge the agent has pertaining to coming changes in school district boundaries would: Select one: A.not ever considered a material fact. B.only be a material fact if the buyer had children of school age and had said it was important. C.be considered a material fact that must be disclosed. D.not be considered a material fact if it has not yet gone into effect.
C.be considered a material fact that must be disclosed.
The Interstate Land Sales Full Disclosure Act regulates the sale of undeveloped land across state lines Select one: A.by newspaper B.by television C.by mail or telephone D.all of the above
C.by mail or telephone
Mold disclosures are required: Select one: A.only for properties built before 1978. B.only for previously flooded properties. C.for all clients. D.never.
C.for all clients.
If a licensee purchases a property listed with his company Select one: A.he must make his position with the company known in writing to the seller. B.he must make the offer through another licensed agent in the office. C.he must make his position with the company known in writing to the seller and put it in writing that he is a licensed agent before the seller accepts the offer on the property. D.he must notify the seller in writing that he is a licensed agent before the seller accepts the offer.
C.he must make his position with the company known in writing to the seller and put it in writing that he is a licensed agent before the seller accepts the offer on the property.
If a licensee sells a property he/she owns without another licensee involved and writes the terms of the agreement accepted by the purchaser Select one: A.the licensee is an undisclosed dual agent. B.the licensee can only be a dual agent with a dual agency consent form signed by the purchaser before the licensee acts as a dual agent. C.is not a dual agent. D.none of the above.
C.is not a dual agent.
Providing the Residential Property Condition Disclosure Document Select one: A.relieves the purchaser of the requirement to do inspections. B.relieves the listing agent of the responsibility of providing any additional information to the buyer. C.is not intended to be part of any contract between the buyer and the seller. D.is considered a warranty by the seller.
C.is not intended to be part of any contract between the buyer and the seller.
If a broker is involved in obtaining deposits in property management, the broker must Select one: A.maintain a surety bond in the amount of $50,000. B.keep up to $2500. in a checking account in the broker's name to return deposits. C.open an account titled "Security Deposit Trust Account". D.put the money in a "Rental Trust Account".
C.open an account titled "Security Deposit Trust Account".
The listing broker owes fiduciary duty to the: Select one: A.agent. B.lender. C.seller. D.buyer.
C.seller.
A principal factor for which adjustments must be made in using the sales comparison approach is: Select one: A.the cost of replacement. B.the amount of real estate taxes. C.the date of sale. D.depreciation.
C.the date of sale.
An agent is told by the seller that the taxes are $1500 per year. The agent is asked by the buyer how much the taxes are on the property. The agent should Select one: A.tell the buyer the taxes are low. B.tell the buyer they are $1500. C.verify the tax figure for accuracy. D.tell the buyer he does not know.
C.verify the tax figure for accuracy.
A broker using E-mail must include which of the following on each page of his E-mail? Select one: A.The broker's name as registered with the Commission B.The city, state and country in which the broker's main office is located C.The regulatory jurisdiction(s) in which the broker holds a real estate brokerage license D.All of the above
D.All of the above
A real estate broker advertising or marketing on a site on the Internet must include which of the following on each page of the site on which the advertising appears? Select one or more: A.The broker's name as registered with the LREC. B.City and State where the main office is located. C.The license jurisdiction(s) held by the broker. D.All of the above.
D.All of the above.
All persons have legal capacity to contract except: Select one: A.Unemancipated minors. B.Interdicts. C.Persons denied of reason at the time of contract. D.All of the above.
D.All of the above.
Sellers are responsible for: Select one: A.unknown undisclosed defects. B.known undisclosed defects. C.all unknown defects. D.All of the above.
D.All of the above.
Which of the following statements is true regarding broker applicants? Select one: A.At least 30 hours of the broker educational requirement must be obtained in course work emphasizing broker responsibilities. B.The commission may accept real estate related credit hours from an accredited college or university as partial substitution of the broker licensing educational requirement. C.The commission shall have the authority to accept experience in the real estate business or related fields as credit toward fulfillment of the education requirement. D.All of the above.
D.All of the above.
Which of the following statements is true? Select one: A.The commission can grant a license to a convicted felon. B.The commission can grant a license to a person who has had their license suspended or revoked in the past. C.The commission can grant a license to a person who had made a false statement on their application. D.All of the above.
D.All of the above.
Fees to non-licensees for finding clients are: Select one: A.A violation of federal trade laws B.Legal, as long as the fee is paid by the brokerage firm C.Legal, if for less than $100 D.Always a violation of the regulations
D.Always a violation of the regulations
Considering the following circumstances, when should the agency disclosure informational pamphlet be provided to persons by a licensed real estate agent? Select one: A.Only if confidential information is disclosed or could be disclosed. B.By the time a purchase agreement is signed. C.At first initial contact, regardless of the nature of the discussion. D.At first face-to-face contact, or whenever substantive information is solicited or received.
D.At first face-to-face contact, or whenever substantive information is solicited or received.
To secure a deficiency judgment in the state of Louisiana, all of the following are true EXCEPT: Select one: A.The property must go to sheriff's sale with a current appraisal B.The property must sell for less than all monies due C.Bidding must start at 2/3 of the appraised value D.Bidding must start at 2/3 of the mortgage amount
D.Bidding must start at 2/3 of the mortgage amount
Buying subject to a mortgage: Select one: A.Releases the original mortgagor from the obligation. B.Makes the buyer personally liable for the obligation, and the lien remains with the property after sale. C.Makes the buyer solidarily liable with the original mortgagor. D.Keeps the seller personally liable for the loan, although the lien remains with the property after sale.
D.Keeps the seller personally liable for the loan, although the lien remains with the property after sale.
Which of the following is(are) true? Select one: A.All brokers must have a Rental Trust Account B.Upon opening an escrow account, an affidavit about the account must be sent to the Commission at least 10 days prior to opening the account C.Both of the above are true D.Neither of the above are true
D.Neither of the above are true
You have entered into a lease that requires you to pay 20 percent of the owner's expenses. Your lease would be an example of a: Select one: A.Gross lease. B.Percentage lease. C.Variable lease. D.Net lease.
D.Net lease.
Defects that a seller is required by law to correct include: Select one: A.asbestos. B.ghosts. C.lead-based paint. D.None of the above.
D.None of the above.
A buyer notices that the roof does not seem quite right and asks their agent if the roof leaks. The agent responds that upon asking the seller about the roof he was told that there is no seepage and no leaks. However, later it is discovered that there is a seepage problem with the roof. Which of the following best describes the agent's position in this situation? Select one: A.Adverse Possession B.Misrepresentation C.Fraud D.Nothing was done improper in this situation
D.Nothing was done improper in this situation
If a contract is replaced by a new agreement between the parties, essentially terminating the previous agreement, it is called: Select one: A.Assignment B.Partition C.Recission D.Novation
D.Novation
Sally Salesperson received 3 offers on one of her listings, one at 9 am, one at 11 am, one at 1 pm - all on the same day. How should Sally present these offers when she sees the seller that evening at 7 pm? Select one: A.Present the full price offer first, or if none, then the highest offer first and the rest in descending order. B.Present the offers in the same order she received them to the seller. C.Present the offers in ascending order of the offering price, starting with the highest. D.Present all offers at the same time to the seller.
D.Present all offers at the same time to the seller.
Which of the following is required to earn a commission? Select one: A.You are the only agent with the Listing. B.That you are the agent that first showed the property. C.You have a written agreement with the buyer. D.Procuring Cause
D.Procuring Cause
Which of the following must be proved in a Fair Housing Complaint? Select one: A.That the seller was purposely disrespectful B.That the discrimination was because of race C.That the intent was to discriminate D.That discrimination occurred.
D.That discrimination occurred.
An Express Agency: A.is not allowed by law. B.must be oral. C.must be in writing. D.can be oral or in writing.
D.can be oral or in writing.
Which of the following is most likely used in the cost approach? Select one: A. original cost of building or improvement B. future value of residential comparable property C. estimating cost of building using today's cost D. a competitive market analysis
C. estimating cost of building using today's cost
Which of the following is NOT a test of a fixture? Select one: A. Manner of Removal B. Intention of the Parties C. Adaptation to surroundings D. Agreement of the Parties
A. Manner of Removal
Which of the following grants zoning authority to municipal governments? Select one: A. State enabling acts B. Eminent domain C. Doctrine of Laches D. Escheat
A. State enabling acts
In dual agency in Louisiana, Select one: A. each client and licensee only know the information they were actually given. B. the law imputes minimum knowledge the client should know about the licensee. C. the licensee must disclose all information he is actually given. D. the law imputes minimum knowledge the licensee should know about the client.
A. each client and licensee only know the information they were actually given.
A man gave his best friend the right to go hunting on his farm. This would be an example of a (an): Select one: A. easement in gross. B. easement appurtenant. C. easement by prescription. D. easement by necessity.
A. easement in gross.
Salesperson A, who works for Broker C on a 50-50 basis, sold a house listed by Broker E for $203,000. The seller agreed to pay a 6 percent commission but stipulated in the listing that 60 percent was to go to the selling broker. How much commission (to nearest dollar) will Salesperson A make on this sale? Select one: A.$3654. B.$4189. C.$2436. D.$3045.
A.$3654.
The profit that is excluded from taxes for a married couple selling the home that has been their primary residence for at least 2 of the last 5 years is: Select one: A.$500,000. B.$100,000. C.$250,000. D.$350,000.
A.$500,000.
Which of the following is true about duties of licensees representing clients A.A licensee representing a client breaches a duty or obligation to the client by showing alternative properties to prospective buyers or tenants or by showing properties in which the client is interested to other prospective buyers or tenants. B.A licensee that works on the basis that the licensee shall receive a higher fee or compensation based on a higher selling price when working with a buyer is breaking the law C.A licensee shall not be liable to a client for providing false information to the client if the false information was provided to the licensee by a customer unless the licensee knew or should have known the information was false D.All of the above
A.A licensee representing a client breaches a duty or obligation to the client by showing alternative properties to prospective buyers or tenants or by showing properties in which the client is interested to other prospective buyers or tenants.
Which of the following is NOT a requirement to be appointed to the Louisiana Real Estate Commission? Select one: A.A real estate broker for at least 5 years with a minimum of 100 transactions in experience. B.A qualified elector in Louisiana. C.A licensed real estate broker for at least 5 years. D.A resident of the state of Louisiana.
A.A real estate broker for at least 5 years with a minimum of 100 transactions in experience.
If a broker's license is revoked due to a violation of the License Law, what happens to her salespeople? Select one: A.Automatically suspended. B.Automatically revoked. C.They are allowed to close pending business. D.Nothing happens to the sponsored licensees in this case.
A.Automatically suspended.
A man has his property listed with a broker. On June 23, a fire causes considerable damage to the property. On June 25, the owner revokes the listing. On June 29, the broker is deemed incompetent. Two days later, on July 1, the listing expires. On what date was the listing terminated? Select one: A.June 23 B.On the expiration date included in the listing. C.June 29 D.June 25
A.June 23
Which of the following statements are true? Select one: A.Licensees that transfer from one broker to another may receive commissions earned from the previous broker but only when paid by their current broker B.It is legal to pay unlicensed people finder's fees for bringing a licensee clients C.Licensees that transfer from one broker to another may receive commissions earned from the previous broker D.A salesperson in a brokerage firm may pay directly to another salesperson in the same firm for helping in a real estate transaction
A.Licensees that transfer from one broker to another may receive commissions earned from the previous broker but only when paid by their current broker
A lawsuit based on lesion beyond moiety must be filed within: Select one: A.One year. B.Four years. C.Two years. D.Six months.
A.One year.
A property is sold which includes an old bakery business which has been in existence on this location for years. After the purchase, the property is rezoned as residential land but allows for the bakery under a grandfather law. The new property owners wish to continue operating the bakery business, but would like to demolish the old bakery and build a new modern version with more conveniences built-in. What will the bakery's new owners likely be able to do? Select one: A.The new owners may continue operating the old bakery, but they may not build a new one without further permission B.The sellers must immediately close the bakery until the property is zoned correctly C.Since the property is now zoned residential, the owners will have to sell the bakery and build a residential structure within 10 years D.The new owners may build any structure they choose as long as it conforms to the local building codes and is used as a bakery
A.The new owners may continue operating the old bakery, but they may not build a new one without further permission
Of the following, which would not be considered a material fact that should be disclosed to a purchaser if the agent is representing the seller and is aware of the situation? A.The previous owner murdered his wife in the home and committed suicide. B.The air conditioner is leaking freon and was only charged to operate long enough to pass the inspection. C.The school districts have been remapped and the house will be in a new elementary school district for the coming year. D.The local property taxes for the property are scheduled to increase significantly. The new assessment ordinance has already passed.
A.The previous owner murdered his wife in the home and committed suicide.
Which of the following is true about Ministerial acts? Select one: A.They are acts that are considered informative in nature and do not cause an agency to be formed B.Working with a buyer is always a ministerial act C.Ministerial acts require the use of the agency Informational Pamphlet D.They may be performed by licensees or nonlicensees Clear my choice
A.They are acts that are considered informative in nature and do not cause an agency to be formed
In comparing an ARM and a GPM: Select one: A.They both have lower payments in the early years, but the GPM has a variable rate. B.The ARM has a lower rate, but higher payments in the early years. C.They both have lower payments in the early years, but the GPM has negative amortization. D.The ARM always has lower payments in the early years.
A.They both have lower payments in the early years, but the GPM has a variable rate.
A contract in which the party who accepts an obligation of the other does not assume a reciprocal obligation is called a (an): Select one: A.Unilateral contract. B.Bilateral contract C.Synallagmatic contract. D.Onerous contract.
A.Unilateral contract.
The most important step for a property manager is Select one or more: A.a property management agreement B.repair the property C.write clear reports D.have a deposit from the owner
A.a property management agreement
A contract in which the intentions of the parties are shown by their conduct is: Select one: A.an implied contract. B.a bilateral contract. C.an executory contract. D.an expressed contract.
A.an implied contract.
In a Fair Housing Complaint, an agent may be guilty of a violation if: Select one: A.discrimination occurred, even if unintentional or unconcious. B.Only if the discrimination was because of race. C.only if the intent was to discriminate. D.Only if the seller was purposely disrespectful.
A.discrimination occurred, even if unintentional or unconcious.
An oral offer is made to a tenant and the tenant orally accepts the offer to rent property. Which of the following best describes this transaction? Select one: A.express contract B.voidable contract C.executed contract D.Oral contracts for leases are always unenforceable
A.express contract
An owner lists her home for $98,000 and the listing broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $96,000 and the seller accepts. In this situation: A.the broker violated the agency relationship by explaining the seller's position. B.the broker was unethical, but because no one was harmed, the broker did not violate any laws in this situation C.the broker is fully authorized to encourage all offers, which sometimes may include creative language introducing the buyer to the seller's motivation. D.the broker was legally facilitating a sale because he was the listing broker.
A.the broker violated the agency relationship by explaining the seller's position.
If one client does not consent to dual agency in a Louisiana transaction, Select one: A.the licensee must give a written disclosure to both clients to receive a referral fee for the one withdrawing. B.the licensee must withdraw from the transaction. C.the licensee may refer the client to another for a referral fee with disclosure to the one client. D.the licensee cannot represent the client in other transactions.
A.the licensee must give a written disclosure to both clients to receive a referral fee for the one withdrawing.
Regulation Z is a federal law regarding real estate financing which is contained within the text of which Federal Statute? Select one: A. Controlled Business Act B. Truth in Lending Act C. Fair Housing Act D. RESPA
B. Truth in Lending Act
After unsuccessful negotiations, Joe went to court to gain regular access to his property. The judge likely granted Joe a (an): Select one: A. personal easement in gross. B. easement by necessity. C. easement by prescription. D. easement appurtenant.
B. easement by necessity.
If a landlocked property owner fails to acquire a voluntary agreement to access his property from the nearest public road, he may get such access by an: Select one: A. easement by appointment. B. easement by necessity. C. easement in gross. D. easement appurtenant.
B. easement by necessity.
An easement by necessity is generally utilized to: Select one: A. fulfill a public need. B. grant access to a landlocked landowner. C. divide marital property by licitation. D. provide access to the nearest water supply.
B. grant access to a landlocked landowner.
Zoning regulations and decisions are usually handled by: Select one: A. the state government. B. towns and cities. C. the courts. D. the federal government.
B. towns and cities.
You receive a monthly salary of $1,200 plus a 3 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you receive $6,300 in salary and commission. What is the value of the property that sold? Select one: A.$170,000 B.$204,000 C.$252,000 D.None of the above
B.$204,000
Salesperson A, who works for broker C on a 50-50 basis, sold a house listed by broker E for $193,950. The seller agreed to pay a 6 percent commission but stipulated in the listing that 60 percent was to go to the selling broker. How much commission (to nearest dollar) will Salesperson A make on this sale? Select one: A.$4,189.32 B.$3,491.10 C.$2,327.40 D.$2,909.25
B.$3,491.10
You sign an agreement to purchase a home. The contract requires that the seller replace the damaged living room carpet. The carpet you have chosen costs $16.95 per square yard plus $4.50 per square yard for installation. If the living room dimensions are 11' on the north wall, 10' on the west wall ( at a right angle to the north), and 14' on the south wall (at a right angle to the west), and the east wall at a slight diagonal, how much will the seller have to pay for the job? Select one: A.$297.92 B.$353.93 C.$357.50 D.$314.60
B.$353.93
For Regulation Z to apply, a creditor is someone who extends consumer credit more than 25 times a year or more than _____ times a year if the transaction involves a residence as security. Select one: A.2 B.5 C.10 D.3
B.5
Which of the following scenarios would not be considered discriminatory under the federal fair housing law? Select one: A.A landlord places all families in selected buildings in his apartment complex B.A man owns and lives in his four-unit apartment building, and he refuses to rent to families with children C.A landlord charges higher security deposits to tenants with children D.A landlord refuses to rent to a pregnant woman
B.A man owns and lives in his four-unit apartment building, and he refuses to rent to families with children
A summary of all the recorded instruments affecting the title to a property is called a(an) Select one: A.Escrow B.Abstract of title C.Certificate of title D.Title insurance policy
B.Abstract of title
When selling her own home, a salesperson must inform the buyer of her ownership at which of the following times? Select one: A.When she negotiates the commission B.At the time she offers it for sale C.Only if she sells her home to another salesperson D.After she has accepted the purchase agreement
B.At the time she offers it for sale
Which of the following is a legitimate reason for a broker to remove a deposit from her escrow account? Select one: A.By consent of either party having an interest in the money, B.By clear interpretation of the contract regarding the deposit money. C.After having her license revoked, the broker is allowed to remove the escrow account including all money. D.None of the above.
B.By clear interpretation of the contract regarding the deposit money.
All of the following are requirements to perfect a sale in Louisiana EXCEPT: Select one: A.The price. B.Constructive notice of the sale. C.The consent of the parties. D.The thing sold.
B.Constructive notice of the sale.
Joint Tenancy is a form of: Select one: A. Life estate B. Easement C. Co-Ownership D. Leasehold Estate
C. Co-Ownership
An agent puts an ad in the newspaper for a studio apartment in the city. Which of the following ad statements does not violate the Fair Housing Act? Select one: A. No children allowed. B. Great for a single. C. Cozy for one or two. D. Good start for married couple.
C. Cozy for one or two.
A Seller confides with their agent in a conversation that he is willing to take less for the property under certain conditions. Considering this information, what is the agent's best option moving forward? Select one: A. The agent cannot properly advertise the property since there is a conflict on the price. B. The agent should inform any potential buyers that the seller is desperate and will likely accept a low offer. C. The agent should advertise the property under the original terms of the listing contract. D. The agent should advertise the property with the statement "owner will take less" conditions.
C. The agent should advertise the property under the original terms of the listing contract.
An appraiser uses the cost approach in appraising a home. The appraiser should NOT use which of the following types of information? Select one: A. Cost of replacement of house B. Economic obsolescence C. Physical deterioration D. Depreciation on the land
D. Depreciation on the land
In 1988 the Federal Fair Housing Act was amended to add which of the following protected classes? Select one: A. Race B. Religion C. Sexual orientation D. Familial Status
D. Familial Status
UFFI is Select one: A. a type of electrical insulation in the oil that was used in transformers. B. a colorless oderless gas created by imperfect combustion of fossil fuels. C. the acronym for Uniform Flourhydrate Foam Insulation. D. an insulation that was used in mobile homes and renovations until determined to be an irritant.
D. an insulation that was used in mobile homes and renovations until determined to be an irritant.
Intentional acts of discrimination are called Select one: A. inequitable treatment B. injunctive service C. disparate impact D. disparate treatment
D. disparate treatment
You are estimating the value of an apartment building. The monthly scheduled gross income is $4000. The annual operating expenses are $23,000. The rate of return a typical buyer expects is 8%. If the average vacancy rate is 5%, what would be your estimate of value? Select one: A.$187,500 B.$170,000 C.$212,500 D.$282,500
D.$282,500
Which of the following is not true about confidential information? Select one: A.Information that can be obtained from a public source such as court records is not considered confidential B.Confidential information can be disclosed by a designated agent to his broker for the purpose of seeking advice or assistance for the benefit of the client C.Confidential information shall not be considered to include material information about the physical condition of the property D.All information told to a licensee in confidence by a client is considered confidential and cannot be disclosed by the licensee
D.All information told to a licensee in confidence by a client is considered confidential and cannot be disclosed by the licensee
Agent Thurmond has a listing that is in a flood hazard area that floods often and has been deemed ineligible for flood insurance.That condition would make the property ineligible for typical federally-related first mortgage financing. Agent Thurmond is representing only the seller in this transaction. Agent Thurmond has received an offer from a potential buyer that plans to pay cash and would not be required to have flood insurance because he is not getting a mortgage. Agent Thurmond must: Select one: A.say nothing to the buyer, he is representing the seller. B.say nothing to the buyer because there is no mortgage required for the sale, so it is not a material fact.If there was a mortgage required, he would have to disclose it to the mortgage company. C.only disclose it if the buyer tells him a flood hazard is a material fact. D.disclose the material fact about the flood hazard to the buyer.
D.disclose the material fact about the flood hazard to the buyer.
The giver of an option is called the: Select one: A.optionee. B.vendee. C.vendor. D.optionor.
D.optionor.
In selecting comparables for the Sales Comparison Approach, the appraiser selects from ___________________ the properties most similar to the subject property. Select one: A.pending sales B.current listings C.expired listings D.recent closed sales
D.recent closed sales
When new land is acquired as water recedes it is called: Select one: A.avulsion. B.accretion. C.erosion. D.reliction.
D.reliction.
You are managing a property that has a one year written lease signed 3 months ago. The landlord dies. The new owner wants to manage the property himself when your management contract expires in one month. You should: Select one: A.notify the tenant he will have to renegotiate a new lease with the new owner within 30 days or move out. B.notify the tenant that his lease is void since the landlord died and return his deposit. C.tell the tenant that his lease is void, but the new owner will have to evict him. D.turn over the security deposit and the lease and tenant information to the new owner at the end of your contract.
D.turn over the security deposit and the lease and tenant information to the new owner at the end of your contract.
If another agent is representing a buyer and is showing your listing and you tell him that your seller is eager and may accept a lower price if they make an offer right away, this is Select one: A.disclosure B.okay C.disclosed dual agency D.undisclosed dual agency
D.undisclosed dual agency
Under the new TILA-RESPA Integrated Disclosure Rule (TRID), what is the name of the required disclosure which must be sent to an applicant within 3 business days of making a loan application? Select one: a. Pre-Qualification Letter. b. Closing Disclosure Form. c. Loan Estimate Form. d. Hud Informational Booklet.
c. Loan Estimate Form.
During a recent Board meeting, the Board's membership agreed that cutting commissions to gain market share would harm the industry as a whole and agreed to set certain limits on Board members and what they could charge for their services in the marketplace. Is this legal, and why? Select one: a. Yes this is legal since it only applies to Board members and not all licensed brokers. b. Yes this is legal since Anti-Trust laws do not apply to private Board members and the setting of their respective pricing. c. No this is not legal and would be considered price-fixing which is an Anti-Trust violation. d. No this is not legal since all licensed Brokers were not in attendance at the meeting.
c. No this is not legal and would be considered price-fixing which is an Anti-Trust violation.
