National Exam Missed Questions
added value one gets from combining two parcels into one parcel which is worth more than the total value of the individual parcels together is called a) plottage b) adage c) quiet value d) capitalization
a) plottage the added value is called plottage value
FHA mortgage insurance premium is calculated at a rate of 1/2% annually. How much is the premium for the month which remaining principal owed is $92,347 a) 46.17 b) 38.48 c) 12.00 d) 0.05
b) 38.48 92,347 x .005/12 = 38.48 per month
Points are directly related to: a) negotiated sale price b) actual loan amount c) sale price minus fees, commissions, and taxes d) appraised value of the real estate
b) actual loan amount
The determination of what constitutes a fixture primarily revolves around: a) method of annexation b) fitness or adaptation to a particular use of the premises c) the intention of the parties d) all of the above
a) method annexation how the fixture is attached to the property will determine if it is a part of the property
Rent on a residential lease is usually a) paid in advance on a monthly basis b) paid in arrears for the month previously occupied c) paid quarterly d) paid in full at the time the lease contract is accepted
a) paid in advance on a monthly basis
An agent sells a house for 160,000. Assuming there are two brokers who agreed to split the 6% total commission how much will the selling agent receive if he is on a 60/40 split? a) 2880 b) 5760 c) 3840 d) 1920
a) 2880 160,000 x .06 = 9,600 / 2 = 4,800 4,800 x . 6 = $2,880
The tax assessment ratio for a house valued at $90,000 is 90%. If the tax rate is $3.50 per $100, what is the annual tax? a) $2835 b) $3150 c) $2910 d) $3250
a) 2835 $90000 x .90 = $81000 x .0350 = $2,835
A listing agent wanting to give a seller maximum protection from subsequent claims by the buyer would strongly reccomend a) that the buyer have the property thoroughly inspected prior to closing b) that the seller cover all obvious property defects with cosmetic treatments c) that the buyer sign a "hold harmless" agreement with the seller d) that the seller offer the property "as is"
a) that the buyer have the property thoroughly inspected prior to closing seller should do this so that they buyer should know of all the defects in the property prior to closing. This gives the seller some assurance that they buyer had full knowledge of the condition of the property
Which of the following is NOT an addendum promulgated by TREC? a) realease of liability on assumption of FHA, VA or Conventional loans, restoration of seller's entitlement for VA guaranteed loan b) addendum for seller's disclosure of information on lead based paint and lead based paint hazard c) seller's temporary lease d) addendum for sale of other property by owner
b) addendum for seller's disclosure of information on lead based paint and lead based paint hazard Information on lead based paint is not a promulgated form by TREC. However, there is a form supplied by Texas Association of Realtors that may be used by all Texas licensees
Trust accounts must always be in the: a) agents name b) brokers name c) clients name d) none of the above
b) broker name only a broker may maintain a trust account, salespersons may be a signer on the account but may not have the trust account solely in their name
A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker's BEST response to the buyer? a) the crime rate in the neigbhorhood is no higher than in any other area b) check with local law enforcement authorities about the crime rate c) any information about the crime rate must come directly from the seller d) crime rate is not a defective property condition and need not be disclosed
b) check with local law enforcement authorities about the crime rate
The process some lenders have to approve FHA loans "in house" is called a) automatic endorsement b) direct endorsement c) low doc loan d) direct loan
b) direct endorsement
The Fair Credit Reporting Act requires a landlord to a) reject a tenant based on his credit report b) give the name of the reporting agency if applicant denied due to credit c) reject applicant based on information other than the credit report d) disclose all information discovered on the credit report
b) give the name of the reporting agency if applicant denied due to credit if an applicant is denied because of their credit history, the landlord must provide them with the name and address of the credit reporting service that provided them with the report
Which of these is considered to be personal property? a) lien b) promissory note c) riparian rights d) mortgage
b) promissory note promissory note is considered the personal property of the holder of the note. The holder of the note may sell the note to another party without the permission of the mortgagor. This will not change the terms of the note and will not effect the mortgagor other than where the payments should be sent in the future
Because a corporation is a legal entity, real estate owned by the corporation is owned in a) joint tenancy b) severalty c) partnership d) stock tenancy
b) severalty since a corporation is a single entity, all property owned by the corporation is owned in severalty. although there are many stock holders, the corporation has title, not the individual stock holders
The following are all requirements under the Landlord Tenant Act EXCEPT: a) all exteriror doors must have a keyless deadbolt b) tenant pay property charges and repairs c) landlord must disperse security deposits within 30 days of move out d) landlord must re0key the property when tenants change
b) tenant pay charges and repairs in most cases the tenant signs a gross lease making the landlord responsible for all property charges and repairs of the property during the lease term
A seller promises a broker a bonus if the broker brings him a full price within 30 days. This is an example of: a) bilateral agreement b) unilateral agreement c) expressed contract d) none of the above
b) unilateral agreement
The TAR Residential Buyer/Tenant Representation Agreement states that the broker will seek payment of commission first from the seller, landlord or their agents. If such persons refuse or fail to pay, the broker will be paid by the: a)buyer customer b) tenant customer c) client or customer d) none of the above
c) client of customer
Whose signature is required for transfer of ownership? a) trustee b) grantee c) grantor d) all of the above
c) grantor the signature of the grantor is required for the transfer of ownership
If the builder does not allow cyclone fencing in a subdivision, this would be because of the a) zoning ordinances b) building codes c) restrictive covenants d) personal preference
c) restrictive covenants restrictive covenants are created at the time the sub divider first applies for a permit to build the subdivision. Restriction apply to all property within the subdivision
If you have a home worth $280,000 and have first lien of $196,000 and a second lien of $42,000 with unpaid taxes totaling $5,660: what is the equity in your home? a) $36,340 b) $47,660 c) $84,000 d) $42,000
d) 42,000 Equity = Value - all liens against the property
Functional Obsolescense results from a) external economic factors, such as limited street access b) overall physical deterioration c) wear and tear on fixtures d) four bedrooms with only one bath
d) four bedrooms with only one bath functional obsolescence - when a property is not desirable due to it being outdated or just not what a purchaser wants in the property
When a buyer is seeking to buy a single-family residence, inspections should be done a) prior to entering a purchase contract b) no need to have inspections done if they have received a disclosure from the seller c) only after financing has been secured and the title report has been received d) immediately after entering into a binding sales contract
d) immediately after entering into a binding sales contract inspection is normally done right after a contract is written, if there is an option period stated in the contract it will allow the buyer to cancel the contract if the property has defects that the seller will not repair
which of the following commission schedules are illegal? a) percentage of sales price b) hourly rate c) fee for service d) none of the above
d) none of the above any agreed upon commission structure is acceptable if all parties have agreed to terms
Which of the following is an example of special purpose real estate? a) an industrial park b) a planned unit development c) shopping center d) public library
d) public library library is a property that is for a special purpose and does not fall into a class of common use properties
