National test Exam smart

Taxes of $1200 were pre-paid for the year on January 1. If the property was sold with a closing date of March 1 and the buyer was credited with the day of closing, what would be the tax proration?

$1000

A three-year-old property appraised for $90,000. If it depreciated an average of 10% per year what was the original value of the property?

$140,000

Hey sales person on 2.75% commission on $600,000 in sales for the year. However the sales person and only taking a draw against commission of$150 per week for the entire year for the sales person salary. What would be the total amount earned by the sales person?

$16,500

A property had a list price of $164,000 in an actual price of $158,000 and $124,000 loan. Transferred he was three dollars per $1000 what was the fee?

$474

A tenant was in possession of leased property. The landlord gave me a written notice to the tenant to quit. The tenant, however, remain in the property and continued to send Rent payments to the landlord. The landlord refuse to except the rent checks the situation would be described as a

Tenancy at sufferance

A commercial tenant least a commercial space from the landlord. The tenant operated the grocery store on the premises. Which of the following statements would be true if the landlord died?

The HeirsHave to honor of the lease as it runs with the land

Which type of relationship is established between a principal and a broker?

Fiduciary

A seller and buyer and turn to a sales contract on a property. The seller reaches the agreement causing the buyer to super specific performance. If the buyer wins this lawsuit the seller will have to

Follow through with the original contract

In order to be in compliance with the statute of frauds, a sales contract must be

In writing

Which of the following indicates functional obsolescence?

Inherent inadequacies of the property

The value of the property over and above all outstanding debts is called

Equity

A sales person, and doing a comparative market analysis (CMA) For a seller, should not tell the seller

That this is a professional appraisal

If an owner tells a licensee not to show the property to minorities, which of the following statements best describes the Obligations of the agent?

Inform the owner that the licensee cannot legally accept the listing

Which of the following is not contained in a note?

Title insurance

When the contract is signed between the buyer and a seller, the buyer is known to have received equitable title upon the happenings of which of the following events?

Signing of the agreement by the buyer and the seller

A blanket mortgage is usually design to cover

More than one piece of property

I'll legal description that uses directions, distances and monuments is called

A metes and bounds description

Mediators who work matching Lenders with borrowers are called

Mortgage brokers

A person bought a lot for $20,000 and then added improvements and I'm out of $150,000. The owner wanted to make a profit of 5% on the lot and 40% on the improvements. What would the sale price have to be?

239,400

A broker sold a commercial property for $1.5 million. The broker earn a total commission of $87,000. If the broker was paid 6% on the first $1.2 million of sales price, what was the brokers rate of commission on the amount of sales price over $1.2 million?

5%

A household for $39,379. The buyer pay 20% down. Monthly interest on the one was $229.69 what was the annual interest rate on the loan?

8.75%

What documents would be a condensed history of all records that affect the title?

An abstract

The property has had termite problems in the past. A broker tells a buyer that the termite problems had been taken care of knowing that the problems actually still exist. The broker is guilty of

Deceptive and fraudulent conduct

A seller sold a property to a buyer with the seller also transferring The refrigerator to the buyer as a personal property item. The document needed for the transfer of the refrigerator would be a

Bill of sale

How does a buyer become a client of a broker?

By signing an agency agreement with a broker

When ownership is conveyed through the transfer of shares of stock, this is

Cooperative

Knowingly miss representing a material fact and I deliver it way so that someone else suffers a loss in an attempt to make money is

Fraud

A property did not abut The waterway. The owner establish a beneficiary use through the state under Prior appropriation. How could the owner gain access to the water?

Go to the neighbor and negotiate an easement

A broker signs and exclusive right to sell listing with an owner. The next day, the owner tax another broker about listing the same property. What should be the brokers response to the owner?

I cannot list the property while another broker has a current exclusive listing

The lender is adding 1/12 of the annual taxes and insurance to a borrowers monthly mortgage payment. These pre-pay taxes and insurance are kept in an

Impounds or escrow account

An agent takes a listing on a commercial property. The agent find a buyer for the property and the buyer and the seller both sign a contract to purchase. Prior to the closing, that you didn't learn set the city plans on putting in a ramp on the back of the property. What should the agent do?

It's close to the seller so the buyer can be informed

And agreement between the seller and a broker where a broker is hired to sell if sellers property is referred to as an

Listing agreement

The purpose of an appraisal is to estimate

Market value

Person on a property next to extreme. The owners rights to use the stream are referred to as

Riparian

The tenant signed a three-year lease with the landlord. The landlord dies with the heirs inheriting the rental property. The heirs then sold the rental property to a new owner. The new owner would like to terminate the tenants lease. Can the owner do so?

No, the lease is still valid for the remainder of the term

Right to buy a property for a definite feel price but a definite time. Is referred to as a

Option contract

Which of the following transactions is exempt from the requirements of the federal Fair housing act?

Owner renting one room in an owner occupied residence

What does a person have who can find legal papers for another person?

Power of attorney

A sales person received an offer on a house. While preparing to present the offer, another offer on the same house came in to the office. Which of the following statements best describes with the sales person should do?

Present both offers at the same time

An agent is working with a married couple of the purchase of a home. The couple ask the agent how they should take title to the property. Agent should say

See an attorney

Private Land uses are normally dictated by

Private deed covenants

Which of the following deeds would give the seller the least amount of liability?

Quit claim

An item in a house is usually easy and inexpensive to remedy is

Radon gas

Which of the following would not be a valid way for an agent to take a listing

Receiving As commission anything obtained in sales price over a certain amount for the seller

What does a standard title insurance policy cover?

Recorded title defects and liens

With the exception of real estate taxes, liens generally are repaired at a foreclosure sale based on the

Recording date of the lien

I am using the cost approach to value on an older building, which type of cost would be best?

Replacement cost

An agent write an offer to the seller with the seller counter offer him back to the buyer. In the meantime, another offer was brought to the seller with terms more favorable to the seller. The seller is best option would be to

Rescind The first counter offer before acceptance and then except the better offer

What is used to describe the right of a lessor To reclaim a property once a lease expires?

Reversion

A buyer obtain a $50,000 loan with a 9% interest rate. The long was amortized over 30 years with a monthly payment of $403. Which of the following statements is true?

The amount of principal and the first months payment was $28

And a life estate situation, what happens to ownership of the property when the life tenant dies?

The current title holder or heirs Get the property

Two persons on a property under tenancy in common. Which statement would be correct assuming one of the owners dies?

The heirs Of the deceased would inherit the property

From which of the following persons me a sales person lawfully receive a commission?

The sales person's broker

Are you seller called a sales person asking the sales person to list the sellers home for sale. The sales person did so and submitted the listing to the MLS after the sales person's broker approve the listing. Another broker within the MLS cool operated with the listing broker and found a buyer for the house. Which of the following best describes the relationship of the parties involved?

The selling broker is an agent of the listing broker

She gave a neighbor the right to crossover teeth properly. T's property would be referred to as

The servient tenement

Which of the following properties with an appraiser not depreciate

Vacant land to be used for commercial property

Which of the following statements best describes the fact on mineral rights on the land is sold

They pass to the grantee unless specifically noted

If someone is building a building without a building permit what is the worst that would happen

They would make them tear it down

A local multiple listing service (MLS) passed a rule saying that any broker Who charges less than 4% commission and a minority area cannot belong to the MLS. Which of the following statements would be true?

This is illegal as this violated price-fixing laws on your the Sherman antitrust laws

A person has had a mental disability in the past but has recovered and is now mentally competent. Which statement is true under the 1988 to your house in amendments act?

This person would be covered as the 1988L applies to any disability whether a person is recovered or not

A person owns a property and an improvement District. And assessment role has been confirmed for that area. The owner is in the process of selling the property. The buyer should be informed that

This property will be subject to a special assessment tax

Which of the following statements best describes they usually go effect of a contract sign between an adult and a minor?

Voidable by the minor

Broker A Enters a listing and the multiple listing service under the rules of sub agency. Broker be, a member of the multiple listing service, find a buyer and shows the house under the rules of a sub agency. Which of the following statements best describes the relationship of the parties?

Worker B was an agent of broker A

Which of the following items would not always be a part of a contract for the sale of personal property?

Written agreement

Which is a voluntary lien against a person's property?

mortgage lien