Real Estate Study Questions
An owner may discriminate in who they rent or sell to under which of these sets of conditions? A) The house is sold of renter without the services of a licensed real estate agent; the owner has an interest in more than three single-family houses; discriminatory advertising is allowed as long as not used on the MLS B) The owner does not own or have interest in more than three single-family houses at any one time; the house is sold or rented without the services of a licensed real estate agent; no discriminatory advertising is used C) The owner does not own or have interest in more than four single-family houses at any one time; the house is sold or rented with the services of a licensed real estate agent; no discriminatory advertising is used D) The house is sold or renter without the services of a licensed real estate agent; the property is a multi-unit complex in which there are separate locations for different classes of renters; no discriminatory advertising is used
B
A broker is responsible for any reasonable actions taken by their supervised licensees, even if in error, through which of these concepts? A) General liability B) Vicarious liability C) Limited liabiliry D) Strict liability
B
Armand put down $3500 in earnest money on Serphina's home, spent $300 on an inspection, and paid $35 application for a credit check, but later backed out of the deal. How much money is there as potential liquidated damages? A) $1750 B) $3500 C) None of these D) $3115
B
Disadvantages for the seller in an owner/seller financing situation include which of these? A) Can retain control and title of the property B) Receipt of proceeds is spread out over the length of the contract C) Buyer may be difficult to qualify with a lender D) Repossession of the property due to default is more difficult
B
Regardless of their brokerage relationship, licensees owe which of these to all parties? A) Loyalty B) Obedience C) Honesty D) Fidelity
C
Seraphina made an offer to Armand to buy his home. He agreed but said he wanted a shorter clsoing period, but otherwise agreed. What action did Armand take? A) Novation B) Modification C) Counteroffer D) Amendment
C
Market value is the estimated price for which a property will sell and market price is which of these? A) The value on which property taxes are based B) The value based on square footage of comparables recently sold in the immediate vicinity C) The broker's price opinion estimated worth D) The actual selling price of the property
D
Which of these would not be a legitimate form of covenant, condition, or restriction (CCR)? A) Whether there can be a home-based business B) What colors and landscaping can be used C) Where and how to park Rvs and other wehicles D) Who is allowed to live there
D
_ refers to the balance between monies owed against borrowed funds and income received as a return on investment A) Equity B) Income C) Risk D) Leverage
D
A business entity may not act as a broker unless: A) The entity's designated broker is a licensed individual broker in active status and good standing according to the commission's records B) An unlicensed representative of the entity sits for, and successfully completed, the license examination C) A representative of the entity has attended the required training courses D) The entity has received an exemption waiver from the Commission
A
A licensee has how may days from the date of a final conviction or plea of guilty or nolo contendere to a felony or criminal offense involving fraud to report this to the Texas Real Estate Commission? A) 30 B) 20 C) 15 D) 10
A
A licensee in an intermediary brokerage relationship is permitted to disclose which of these? A) Any confidential information required by law or authorized by the party to whom the confidential information pertains B) The fact that the buyer will go higher on their offer C) Any confidential information that the intermediary feels will advance the transaction with benefits to both parties D) The fact that the seller will accept less than the listed price
A
A resale certificate contains information including, but not limited to, which of the following? A) Statements specifying the amount and frequency of regular assessments and the style and cause number of lawsuits to which the property owners' association is a party B) All of the applicable CCRs pertinent to the property and any liens currently held against the property or the owners association C) Statements specifying the amount and frequency of regular assessments and any liens currently held against the property or the owners association D) All of the applicable CCRs pertinent to the property and the style and cause number of lawsuits to which the property owners' association is a party
A
A third party may have an interest in real property without ever having an opportunity to enjoy it under which of these circumstances? A) They hold a remainder interest in property, but predecease the party possessing the property B) There is a reversionary interest and the current possessor of the property passes away C) The current holder has a fee defeasible with condition subsequent interest and passes away prior to the condition being fulfilled D) The current holder has a fee defeasible with condition subsequent and the condition is fulfilled
A
Brokerages need to set their own commission rated and fee rates independent of any other brokerages as a risk management protection from which of these antitrust violations? A) Price-fixing B) Boycotting C) Monopolies D) Product-tying
A
Buyer Desmond and Seller Elvira are calculating the prorated costs in their sale. The closing date is April 10. Elvira has already paid annual taxes of $4800, an annual insurance premium of $800; no April utilities which are $150; and they have agreed to split the $500 escrow fee. How much will each cover in these prorated costs that have not already been paid? A) Desmond will pay $4296 in the prorated costs; while Elvira pays $297 B) Desmond will pay $2496 in the prorated costs; while Elvira pays $279 C) Desmond will pay $4926 in the prorated costs; while Elvira pays $297 D) Desmond will pay $4692 in the prorated costs; while Elvira pays $279
A
Desmond is acting as property manager for Seraphina. Their property management agreement states that all security deposits will be help in trust by Seraphina and Desmond will not be responsible for them. However, Desmond still receives the deposits initially. Unless otherwise stated by the property management agreement, when must Desmond transmit the deposits to Seraphina? A) By the end of the month in which the deposit was received B) By the end of the week in which the deposit was received C) Within 10 days of receiving from the tenant D) Within 3 business days of receiving the deposits from the tenant
A
Desmond is selling a two-story home that is 30 feet deep with parallel front and back walls of 60 feet. On the ground floor only, there are extensions on both ends forming triangles off the 30' ends with a 15' length at the center. How many feet can Desmond accurately state that this home provides? A) 4,050 B) 3,900 C) 4,500 D) 3,600
A
Section 535.146 Chapter N of the Texas Administrative Code deals specifically with which of the following? A) Trust money and trust accounts B) Advertising real property C) Changing sponsoring brokers D) Fair housing practices
A
Securing a loan, a title search, lender appraisal, and approval of homeowners association rules are all forms of which of the following? A) Contingencies B) Consideration C) Addenda D) Amendments
A
Select the set pf "characteristics" best describing the economic characteristics of land. A) Scarcity, stitus, fixity, modification B) scarcity, indestructibility, stitus, immobility C) nonhomogeneity, scarcity, immobility, modification D) nonhomogeneity, indestructibility, immobility
A
Seraphina purchased a home for $325,000 in 2010. She put down 10% and borrowed the balance to cover the cost. She has paid off 30% of the mortgage loan and the home has increased 22% in value from the time that she bought it. Was is her current equity in the home? A) $191,750 B) $118,950 C) $224,250 D) $277,550
A
The _ is a consumer protection act passed by Congress to keep shady land dealers from preying on potential home buyers A) Interestate land sales full disclosure act B) Sherman Antitrust Act C) TILA-RESPA Act D) Federal Trade Commission Section 5
A
The buyer-broker agreement generally will charge the broker with which of the following sets of duties? A) Find properties fitting the buyer's criteria; review paperwork; prepare purchase offers; conduct visual inspection of buyer's prospective properties B) Cooperate with the broker; consider each home that is presented, read any and all important documents C) Visually inspect properties, cooperate with the broker; review paperwork, read any and all important documents D) Find properties fitting the buyer's criteria; consider each home presented; prepare purchase offers; conduct professional inspection of buyer's prospective properties
A
The law requiring that real estate transactions be in writing in order to be valid is which of the following? A) Statute of frauds B) Statute of liberty C) Statute of validity D) Statute of limitations
A
To be eligible for a license under this chapter, a business entity generally must, among other requirements, provide proof of which of the following? A) That the entity maintains errors and omissions insurance with a minimum annual limit of $1 million for each occurrence B) That the entity maintains general liability insurance with a minimum annual limit of $1 million for each occurrence C) That the entity maintains errors and omissions insurance with an accumulated minimum annual limit of $1 million D) That the entity maintains general liability insurance with an accumulated minimum annual limit of $1 million
A
Which of the following actions would be within the real estate licensee's authorized activities? A) Inserting numerous material handwritten modifications to a contract initialed and dated by all parties B) Appearing as an expert witness on matters of real estate sales procedures and protocols C) Providing review services for abstracts of title approval D) Downloading a standardized contract form, then reordering and adding material sections to the contract
A
Which of the following agreements most likely would not be a voidable contract? A) Desmond agrees to provide an essential life service, such as an apartment, to emancipated 17-year-old Elvira B) Armand, although under a court-appointed guardianship, agreed to buy a car from 30-year-old Elvira C) Desmond agrees to sell his car to 17-year-old Elvira D) Desmond sells a duplex to Seraphina who was under a temporary court-enforced guardianship
A
Which of the following financing methods is most likely to include a prepayment penalty? A) A conventional loan B) A government-insured loan C) A subprime loan D) A seller-financed sale (loan)
A
Which of the following information known to a seller would the seller be obligated to disclose in Texas? A) A death on a property caused by some feature or natural condition of the property B) A death on the property caused by negligent or reckless actions taken by the deceased party C) A death of a previous resident from AIDS?HIV-related issues D) A suicide that took place on the property
A
Which of the following is NOT an encumbrance on real property? A) A first mortgage B) An easement C) A mechanic's lien D) A license
A
Which of the following lists of potential comparables best fits for valuing a home built in 2010, with 3 bedrooms, 3 baths, 2500 sqft, on a quarter acre lot? A) 1) built 2008, 3 br,2 ba, 2250 sqft, 8,400 sqft lot 2) built 2011, 3 br, 3 ba, 2320 sqft, 12,175 sqft lot 3) built 2005 3 br, 2 ba, 2650 sqft, 7590 sqft lot B) 1) built 2008, 3 br, 2 ba, 1850 sqft, 6400 sqft lot 2) built 2001 3 br, 2 ba, 1720 sqft, 12.175 sqft lot 3) built 1995, 3 br, 2 ba, 1650 sqft, 15,590 sqft lot C) 1) built 2018, 3 br, 2 ba, 2050 sqft, 8400 sqft, 2) built 2011 4 br, 2 ba, 2320 sqft, 6,175 sqft lot 3) built 2000, 3 br, 2 ba, 1650 sqft, 5790 sqft lot D) 1) built 1998, 3 br, 2 ba, 2250 sqft, quarter acre lot 2) built 2001 3 br 3 ba, 1820 sqft, 18,175 sqft lot 3) built 1995, 4 br, 2 ba, 3250 sqft, 7590 sqft lot
A
Which of the following scenarios most likely results in an unenforceable contract? A) Seraphina gave Desmond a $10,000 deposit to purchase a specific home in Desmond's development, but was under a court order guardianship to manage her finances at the time B) Desmond sold Seraphina a used car unaware that she was only 17 at the time. Seraphina made her payments on time then paid off the loan on her 18th birthday C) Seraphina gave Desmond a $10,000 deposit to purchase one of the homes in Desmond's development, but which home would be purchase was never specified D) Desmond agreed to a six-month lease for a rental space owned by Seraphina, but nothing was ever put into writing
A
Handwritten modifications to a contract are allowed so long as which of these sets of criteria is followed? A) As many modifications as desired may be made, but must be initialed or signed and dated by all parties B) Modifications are not too extensive and are initialed or signed, and dated by all parties C) Modifications are not to extensive or, if extensive, are initialed or signed and dated by the listing party D) Modifications are not too extensive or, if extensive, are initialed or signed and dated by all brokers
B
If a spouse dies and there is no plan for the community property, what determines where their property and any community property debt goes? A) Federal laws B) Local laws C) State administrative rules D) State statutes
B
In Texas, the home loan borrower holds which of the following? A) Virtual title B) Actual title C) A lien on the property D) Equitable title
B
In addition to a Certificate of Eligibility, what are the other two primary considerations for a Veterans Administration home loan guarantee? A) Credit score over 550 and a job B) Sufficient credit and adequate income C) Personal references and an honorable discharge D) Adequate credit score and strong rental history
B
In which of the following situations is an "alienation clause" most likely to be enforceable? A) Desmond passes away and his property is devised to his children B) Desmond and Seraphina get a divorce and the home goes to Seraphina C) Desmond assigns ownership of his home and attendant mortgage to his cousin, Armand D) Desmond assigns the ownership to a living trust in which he is the beneficiary
B
Real estate salespersons who are looking to change their real estate broker sponsorship can utilize: A) Texas Associations of Realtors B) The Texas Real Estate Commission's Relationship Management tool (RMT) C) Youtube D) Multiple listing system
B
Select the executed contract from the following choices A) Elmer and Desmond have a year-long lease on a commercial property that has one more month and one more payment to go, with no talk so far of renewal B) Seraphina just made the final payment on her land contract with Armando, who immediately conveyed and delivered title to her and Seraphina recored it with the county C) Tyler rented an apartment to Priya on a month to month basis which they have renewd monthly for more than two years when Priya announced that she will be terminating the agreement at the three year mark D) Ashton offered Soo $450,000 for her home to close in 90 days which Soo agreed to, but returned the offer to Ashton with a 120-day closing
B
Texas is a lien theory state which means that in a real property transaction, which of the following is true? A) Actual and equitable title is held by a third-party trustee B) The borrower holds actual title and the lender has a lien against the real property C) The borrower holds actual title; a third party trustee holds a lien, and the lender holds equitable title on the real property D) The borrower holds equitable title only; a third-party trustee holds actual title, and the lender holds a lien on the real property
B
The Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) is better known as the environmental _ A) safe fund B) superfund C) environmental protection act D) federal fair housing law
B
The Real Estate License Act (TRELA) establishes minimum requirements on all brokers representing a party regarding client communications and negotiations, which include which of the following? A) Providing minimum of fiduciary duties of accounting, quiet enjoyment, and confidentiality B) Inform client of any material information received related to the transaction and answer client questions and present any offers to or from a client C) Providing minimum of fiduciary duties of loyalty, obedience, and confidentiality D) Inform client of any recent changes to pertinent laws and answer client questions and present any offers to or from a client as the licensee deems appropriate
B
The four "common unities" of a joint tenancy are which of these combinations? A) Time, equitable, interest, title, and enjoyment B) Title, time, interest, and possession C) Time, common interest, claim of right, and possession D) Title, cost, interest, and principal
B
The gross income multiplier is a property valuation method that looks at values as a multiple of which of these? A) The income generated by a property in a quarter (3 months) B) The income generated by a property in a year C) The income generated by a property in a week D) The income generated by a property in a month
B
The only acceptable method in Texas for representing both sides of a transaction is which of these forms of representation? A) Disclosed dual agency B) Intermediary brokerage C) Undisclosed dual agency D) Statutory dual agency
B
Under the Texas fair housing laws, an aggrieved consumer who believes that they have been a victim of illegal discrimination has several avenues of complaint, and must do which of the following? A) Must file any complaint with all of the potential governing agencies B) File their complaint within one year of the date that the alleged discriminatory action took place C) Complain to the Texas and National Associations of Realtors D) Report it to the local police department
B
Under which of the following conditions is a landlord allowed to discriminate against a family with children who qualify in all other ways? A) When the rest of the complex is populated by mostly quiet, single, professionals B) When the housing is recognized by HUD as senior housing C) When the number of family members equal the maximum occupancy D) When the other residents object and threaten to move because of the potential noise and inconvenience of children
B
What agency duties are owed by the sales agent to their supervising broker? A) All fiduciary duties unless in conflict with a client's best interest B) Standard fiduciary duties owed by an agent to a principal C) All non-fiduciary duties owed to all parties, plus the duties of loyalty and obedience D) Non-fiduciary duties owed by an agent to all parties
B
What is the portion of the mortgage loan contract that obligates the borrower to pay back the loaned money? A) a deed of trust B) a promissory note C) a title theory D) a lien
B
Which of the Subchapters of Texas Occupation Code Chapter 1101 provide specifically for Prohibited Practices and Disciplinary Proceedings? A) Subchapter O B) Subchapter N C) Subchapter M D) Subchapter P
B
Which of these lists consists ONLY of items that are required disclosure under normal/most common residential real estate transactions? A) Presence of radon, potential personal income tax liabilities, memberships in homeowners cooperative, and private transfer fee obligation B) Presence of lead-based paint, additional tax liabilities, memberships in homeowners association, and private transfer fee obligation C) Presence of lead-based paint, is pending, availability of home warranty, and private transfer fee option D) Presence of radon, unpaid tax liabilities, memberships in homeowners cooperative, and private transfer fee obligation
B
Which of these practices engenders the most common threat to venturing into the unauthorized practice of law for a real estate licensee? A) negotiating the price for a client B) writing their own or altering contracts C) explaining agency relationships to a client D) making minor handwritten notes signed and initialed by all parties
B
Which of these sets of activities represents activities that are appropriate for unlicensed assistants to perform? A) Scheduling appointments for closing; signing listing agreements; placing signs, billboards, websites and other similar form of advertising; running open houses B) Scheduling appointments; filling and maintaining records; placing signs and other similar forms of advertising C) Scheduling appointments for and showing properties; creating and approving advertising; running open houses; overseeing MLS listings D) Scheduling appointments; handling closings; placing signs and other similar forms of advertising; running specials and rebate offers
B
_ contracts are the most common form of real estate contrast: Party A offers money in exchange for the property of Party B. A) Option B) Bilateral C) Unilateral D) Implied
B
"Subjective value" of a property is BEST summarized by which of these sets of criteria? A) Based on location issues such as proximity of schools, proximity of retail and services, and access to utilities B) Based on convenience issues such as number of bedrooms, proximity of schools, and utility access C) Based on personal feelings, taste, and/or opinions D) Based on physical characteristics such as number of bedrooms, size of property, number of bathrooms
C
A listing agent's primary duties in the seller's disclosures is which of the following? A) To assist in the completion of the seller's disclosure, ensure that all filled in, and sign off on the disclosure with the seller B) To guide the seller through the disclosure, directing them in which sections to leave blank, and ensure that they reveal no damaging information C) Be certain the seller performs the disclosure, that they do it honestly, and that they know what types of information needs to be disclosed D) To perform the disclosure, make a complete disclosure to the seller of what is being disclosed, and get the seller's sign off on the disclosure
C
A person who gives or accepts any portion, split, or percentage of a charge for real estate settlement services is in violation of RESPA regulation in any case except in which of these circumstances? A) The buying client provides their written approval B) Actual services are provided C) Both buyer and seller provide written approval D) The selling client gives their written approval
C
Although popular and generally safer to use, what is the drawback to many currently approved promulgated contract forms? A) Using them might be constructed as the unauthorized practice of law B) They are more expensive to use C) They might not include all provision required by a particular agreement D) Use of standardized forms can lead to copyright infringement issues
C
As a rule of thumb, in general, a property manager will be compensated with some fees and stipends for new tenants, and a percentage of rent in which of these ranges? A) 12% to 18% B) 1% to 6% C) 6% to 12% D) 9% to 15%
C
Consummation of a loan takes place at which of the following points? A) That closing has been completed and possession has formally changed hands B) That the real property sales transaction becomes final C) That the borrower becomes obligated to the lender for the loan D) That both parties have signed the offer and been notified of the other's signing
C
Elvira is looking to buy retail space for investment purposes. Her agent found a small mall space for $2.55 million that earns $175,000 annually. What is the capitalization rate for the property. A) 6.5 B) 7.2 C) 6.8 D) 7
C
Gaps and gores are indicators of which of the following? A) Land targeted by the local jurisdiction as strong candidates for eminent domain claims by the jurisdiction B) Land targeted by the local jurisdiction as protected from any eminent domain claims by the jursdiction C) Unintentional spaces left between properties D) Intentional spaces left between property
C
If the commission proposes to deny, suspend, or revoke a person's license or certificate of registration, the person is entitle to a hearing conducted by which of these agencies? A) The Texas Real Estate Commission (TREC) B) The Texas Association of Realtors C) The State Office of Administrative Hearings D) The Dept. of Housing and Development (HUD)
C
Improvements to property are considered to be which of the economic characteristics of land? A) Scarcity B) Fixity C) Modifications D) Situs
C
Neighbor Ned built a shed and one corner crossed the property line. This is a(n): A) Easement B) Encumbrance C) Encroachment D) Equitable Interest
C
Owner was forced to sell their property to pay off liens (in order of priority) of $250,000, $32,500, $125,000 and $5,450. The property sold for $410,00. How much did each creditor receive? A) $248,250, $32,274.5, $124,125, $5411 B) $250,000, $32,500, $125,000, $5,450 C) $250,000, $32,500, $125,000, $2,500 D) $215,000, $32,200, $120,000, $4,500
C
Predatory lending is BEST described by which of the following? A) Misleading or fraudulent practices by a real estate employee when referring another real estate employee to a lender B) Redlining and other fraudulent practices by a borrower when soliciting or providing a loan to a consumer C) Unfair, deceptive, or fraudulent practices by a lender when soliciting or providing a loan to a consumer D) Misleading or aggressive practices by a lender when soliciting or providing a loan with offers of rebates and lower interest rates
C
Signing and dating by all parties is required for real estate contracts pet the Texas Statute of Frauds, as is a seller's non-owning spouse's signature required. And, in most cases, which of the following also is required? A) A notary will be required to witness all actions B) An additional affidavit of authenticity will need to be provided C) Each page of the contract will need to be initialed D) Both the sales agent and the sponsoring broker will need to submit a copy of their real estate license
C
The appraisal process is federally regulated under which of these federal agencies? A) FHA (federal housing administration) B) DOL (department of labor) C) FDIC (federal deposit insurance corporation) D) HUD (housing and urban development)
C
The more conventional manner of contract type that we are generally accustomed to is which of the following? A) Option B) Unilateral C) Express D) Implied
C
Tyler was renting an apartment from Priya on a month-to-month rental agreement with payment due on the first of each month. On the 15th of the month, Tyler gives his notice of intent to terminate the agreement on the last day of that month (30th). Under Texas law, with no other agreement between the parties, what day does the agreement actually terminate? A) The 15th (day of notice) B) The 30th (per Tyler's notice) C) The 16th of the next month D) The 30th of the following month
C
Under Article 3 of the National Association of Realtors Code of Ethics, what is the exception to the requirement to work cooperatively with other brokers? A) When instructed by a sponsoring broker to be uncooperative B) When the other broker does not appear to be cooperating C) When it is not in the best interests of the client D) When the procuring cause for claiming a commission may be at risk
C
Under TILA-RESPA, any buyer rebates intended to be paid to a buyer first must be disclosed to and approved by which of these? A) The seller B) The listing agent C) The lender D) The Commission
C
Which of the following lists BEST represents the most common defenses to a breach of contract? A) Impossibility, illegality, collusion, misrepresentation, fraud B) Impracticability/impossibility, legality, voidability, misrepresentation, fraud C) Impracticability/impossibility, illegality, coercion or duress, mistake, fraud D) Impossibility, legality, collusion or duration, mistake, statute of frauds
C
Which of the following may a licensee accept for referring clients to a specific escrow company or closing agent? A) A flat fee of no more than $25 per referral with a cap of no more than 10 referrals in any one quarter B) A kickback of no more than 25% of the escrow fee or $100 whichever is greater C) Licensees are not allowed to receive compensation for referrals to escrow companies or closing agents D) An exclusive on client referrals from the escrow company or closing agent
C
Which of these lists best represents acceptable reasons for suspending or revoking a real estate license? When a licensee: A) Engages in dishonest dealing, fraud, unlawful discrimination, or a deceptive act; practices puffery in advertising; acts in error; demonstrates unorthodox methods B) Unintentionally publishes incorrect listing location; acts in bad faith; demonstrates uncooperativeness; fails to successfully market and sell a listing C) Engages in dishonest dealing, fraud, unlawful discrimination, or a deceptive act; makes a misrepresentation; acts in bad faith; demonstrates untrustworthiness D)Unintentionally republishes a misrepresentation; acts in blind faith; demonstrates untrustworthiness; fails to successfully market and sell a listing
C
Which of these lists of natural resources best describes those subject to local subsurface rights? A) Gas, soil, and minerals B) Oil, water, and minerals C) Oil, gas, and minerals D) Gas, oil, and effuvium
C
_ is the type of description most often employed in metropolitan and suburban areas where there is high density housing, also is referred to as the recorded plat survey system, subdivision-lot system, lot and block, platted descriptions, or the recorded map survey system. A) Comprehensive master plan B) Government survey system C) Recorded Subdivision Plat D) Besting the bounds
C
A salesperson may require, sign, and present a broker price opinion or comparative market analysis for the salesperson's sponsoring broker, but the salesperson must do which of the following? A) Provide proof that their sponsoring broker supervised the entire process, step by step B) Show that they have previously preformed broker price opinions of comparative market analyses that have been used and validated by licensed appraisers C) Complete three hours of continuing education on preparation of broker price opinions and comparative market analyses D) Submit the broker price opinion or comparative market analysis in the broker's name and the broker is responsible for it
D
Amendments to the Fair Housing Act in 1974 and 1988 added which of these categories to the protected classes? A) Race, sex, age B) Sex, sexual orientation, religion C) Race, physical and mental disabilities, source of income D) Sex, physical and mental disabilities, familial status
D
An estate at sufferance is also referred to as a(n): A) At will tenant B) Squatter C) Adverse possessor D) Holdover tenant
D
An important effect of a counteroffer to remember is that it not only modifies the terms of the previous offer/counteroffer, it also does which of the following? A) Prohibits additional counteroffers B) Automatically kicks in a back-up offer C) Resurrects the previous counteroffer if rejected D) Rejects the previous offer/counteroffer
D
Desmond was the listing agent for a home sold for $650,000. The listing agency received 3% for their commission and the buyer received 2%. Desmond must split his commission 75/25 in his favor. How much commission did Desmond earn on this sale? A) $13,000 B) $9,750 C) $19,500 D) $14,625
D
In most circumstances, violations of lead-based disclosures by a seller and their agent could only result in which of the following? A) Permanent loss of license B) Cancellation of sale C) Jail time D) Criminal and civil penalties
D
One major advantage for a property manager to cultivate a relationship with a single property maintenance crew is which of the following? A) Workers familiar with the property may be more flexible in negotiating their rates and overlooking other problems B) Workers with whom you are familiar are easier to discipline and give frequent directions, and otherwise control their actions C) Workers you know are always better than the workers you don't know D) Workers familiar with the property will be better prepared to spot existing problems and suggest potential improvements in a proactive manner
D
Regulation Z implements which of these critical pieces of federal legislation? A) Real Estate Settlement Procedures Act B) Fair Credit Reporting Act C) Fair Housing Act D) Truth in Lending Act
D
Select the BEST option describing circumstances under which a real estate agent is exempted from certain telephone solicitations? A) The call is generated by an automated system; the transaction will not require a face-to-face meeting to make payment; and the consumer has not previously informed the caller that they don't want to sell B) The call is generated by an automated system; the transaction will not require a face-to-face meeting to complete and make payment; and the consumer has previously informed the caller that they don't want to receive sales calls from the caller C) The call is not generated by an automated system; the transaction will require more than one face-to-face meeting to reach an agreement; and the consumer has not previously informed the caller that they don't want to sell their home D) The call is not generated by an automated system; the transaction will require a face-to-face meeting to complete and make payment; and the consumer has not previously informed the caller that they don't want to receive sales calls from the caller
D
Select the list that most clearly represents only voluntary forms of "alienation" of property A) escheat, inheritance, gift B) escheat, foreclosure, gift C) sale, condemnation, foreclosure D) sale, gift, inheritance
D
The Americans with Disabilities Act of 1990 vastly increased the scope of what previous federal legislative protective act? A) Executive Order 11246 of 1965 (by President Lyndon Johnson) B) Title IX of the Civil Rights Act of 1964 C) The Equal Credit Opportunity Act (ECOA) D) Section 504 of the Rehabilitation Act of 1973
D
The method of valuation sometimes referred to as appraisal by summation, which bases the value estimate off of the cost required to replace the property with a new one, is better known as the: A) Market comparison approach B) Income approach C) Comparative Sale Approach D) Cost Approach
D
What document can be used to detail the rights and privileges of the title holder besides a deed? A) purchase and sales agreement B) Promissory note C) Mortgage D) Bill of Sale
D
When a contract agreement does not include "time is of the essence" clause, how is timing treated by the courts? A) If a contract is silent on the time for performance of work, the courts will assume a maximum 7 days for performance once either party has objected to the delay B) If a contract is silent on the time for performance of work, the courts will assume a maximum 7 days for performance of any obligation C) If a contract is silent on the time for performance of work, the courts will assume a maximum 14 days for performance of any obligation D) If a contract is silent on the time for performance of work, the courts will infer a reasonable time for performance
D
Which of the following actions does NOT call for immediate cancellation of a licensee's listing on the MLS? A) At closing of sale of the home B) At the point the parties mutually consent to terminate the listing agreement C) At the expiration date of the listing D) A client's notice of intent not to renew a listing agreement
D
Which of the following lists best describes the most common forms of terminating agency relationships? A) Completion, rescission, judicial intervention, acts of the parties B) Consummation, expiration, violation of law, acts of third parties C) Consummation, rescission, operation of law, acts of third parties D) Completion, expiration, operation of law, acts of the parties
D
Which of the following processes allows real property owners to swap properties without immediate tax implications? A) IRS 501 (c) B) Capital Gains Act C) Federal Trade Commission Section 5 D) 1031 Exchange
D
Which of the following selections most likely would be considered to be a material factor to a buyer who is clear that gardening is their passion, they intend to run a boutique nursery, and rely on public transportation for most of their local travel? A) The nearest bus stop is two blocks away B) There is a competing nursery in the retail center a mile away C) There is no built-in sprinkler system in the yard D) Home businesses are prohibited in this community
D
Which of the following would be true for a homeowner defaulting on their $320,000 home mortgage balance selling the home for $275,000 on an approved short sale? A) They are automatically off the hook for the balance of the loan B) They could still be sued for an amount equal to the full balance owed ($320,000) C) They are required to pay the difference to the lender as a rule D) They could still be sued for the balance of $45,000
D
Which of these groups of "ratios" BEST describes those that the FHA is concerned with when determining an individual's eligibility for an FHA-insured loan? A) Loan-to-Debt, Debt-to-Household Expense, and Loan Value to Income B) Loan-to-Value, Debt-to-Expenses, and Household Income to Value C) Loan-to-Debt, Debt-to-Income, and Household Income to Expense D) Loan-to-Value, Debt-to-Income, and Household Expense to Income
D
Which of these sets of items BEST reflects changes made to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) by the 1986 Superfund Amendment and Reauthorization Act (SARA)? A) encouraging more citizen participation; move authority to override state laws; increased local jurisdiction roles; diminished priority of health issues; reduced funds B) increased priority of health issues; better coordination with other laws; less authority and fewer options; decreased state roles; encouraging more citizen participation; reduced funds C) added authority and settlement options; increased federal role; increased priority of economic impact; encouraging more small business owner participation; more staff D) better coordination with other laws; added authority and settlement options; increased state roles; increased priority of health issues; encouraging more citizen participation; more money
D