Bob Brooks School (Combined Sections)

The market data approach is based on the principle of: a. Substitution b. Change c. Anticipation d. Conformity

a. Substitution

A parcel of land measuring 1,320 feet by 1,320 feet is EQUAL to: a. 1/4 section or 160 acres b. 1/4 of a 1/4 section or 40 acres c. 1/4 of a 1/4 of a 1/4 section or 10 acres d. 1/2 of a 1/4 section or 80.

b. 1/4 of a 1/4 section or 40 acres

When must the Commission be notified of the closing of an Escrow or Rental Trust account? a. Within 5 days b. 10 days after closing the escrow. c. Commission does not have to be notified. d. Within 15 days.

b. 10 days after closing the escrow.

The Assessment Rate for Louisiana Residential is: a. 5% b. 10% c. 15% d. 20%

b. 10%

An Arpent is: a. 1/4 of an acre b. 5/6 of an acre c. 3/4 of an acre d. Larger than an acre

b. 5/6 of an acre

When the actions of the parties indicate an intention to create a contract: a. An implied contract results b. No contract results unless it is in writing c. An expressive contract results d. An unenforceable contract results because there are no signatures.

a. An implied contract results

When water is scarce and its use is restricted, this is called: a. Littoral Rights b. Doctrine of Prior Appropriation c. Doctrine of Necessity d. None of the above.

b. Doctrine of Prior Appropriation

All of the following are leasehold interest EXCEPT: a. Tenant for years b. Life tenant c. Tenant at will d. Tenant from period to period

b. Life tenant

A property with a market value of $140,000 and the annual net income of $19,600 would have a capitalization rate of: a. 12% b. 7% c. 14% d. 17%

c. 14%

The Fair Housing Act was signed into law in: a. 1803 b. 1866 c. 1968 d. 1988

c. 1968

The Governor of Louisiana: a. Appoints members to the Real Estate Commission. b. Selects the Chairman of the Real Estate Commission. c. Must appoint only REALTORS to the Commission. d. Selects only salespersons to the Commission.

a. Appoints members to the Real Estate Commission.

With an FHA Loan, when the selling price exceeds the appraised value, what will the loan be made on? a. Appraised price b. Selling price c. Higher of the two d. None of the above.

a. Appraised price

If the actions of the parties created an agency agreement, this would be a(n): a. Implied agency b. Expressed agency c. Buyer's agency d. Seller's agency

a. Implied agency

The Statute of Frauds requires a real estate purchase agreement to be: a. In writing b. Recorded c. Acknowledged d. Accompanied by earnest money.

a. In writing

Title insurance: a. Is paid only once. b. Shows the chain of title. c. Is always paid for by the seller. d. Is paid through the listing broker.

a. Is paid only once.

A licensee who has a written agreement to sell real estate and act as an agent is known as the: a. Property Manager b. Listing Agent c. Subagent d. None of the above.

b. Listing Agent

Which is the highest loan to value ratio for a single family home loan? a. Conventional b. FHA 245 c. VA d. Conventional with PMI

c. VA

In Louisiana an agent shows a home where a suicide has been committed. The agent should: a. Disclose the fact b. Does not have to disclose the fact c. Broker must disclose the fact d. Must tell only if asked

b. Does not have to disclose the fact

Once an offer is made on a home, who presents the offer to the Seller? a. Client b. Listing Salesperson c. Selling Salesperson d. Broker

b. Listing Salesperson

The Commission may charge a fee to pay for the Research and Education Fund at initial application and renewal of licenses in an amount not to exceed: a. Ten dollars a year b. Eight dollars a year c. As much as is needed d. The fund is paid for from donations

a. Ten dollars a year

A person who leaves a valid will upon his death is said to have died: a. Testate b. Probate c. Legate d. Escheat

a. Testate

If a broker suspects a terminated licensee is encouraging clients to leave his/her company, when MUST they notify the Commission by? a. The Commission does not get involved. b. 10 days c. 20 days d. 5 days

a. The Commission does not get involved.

A federal savings and loan company must insure its deposits with the FDIC to a MAXIMUM of: a. $250,000 b. $50,000 c. $100,000 d. $40,000

a. $250,000

Discount Points are figured on the: a. Selling Price b. Loan Balance c. Salary of buyer d. None of the above.

b. Loan Balance

Delinquent fee January 1 - February 15 is _____ . a. $50 b. $35 c. $100 d. $45

a. $50

To compute the dollar value of a loan discount, each point is equal to: a. 1% of the amount to be loaned. b. 1% of the down payment. c. 1% of the appraised value. d. 1% of the sales price.

a. 1% of the amount to be loaned.

How long after taking possession do tenants and buyers have to get a property inspected for lead problems? a. 10 days b. 30 days c. 60 days d. 90 days

a. 10 days

A lot that is 100' x 150' has how many front feet? a. 100 b. 150 c. 50 d. 250.

a. 100

All renewals MUST show proof of: a. 12 hours of continuing education for the preceding year. b. 10 hours of continuing education for the preceding year. c. 6 hours of continuing education for the preceding year. d. 8 hours of continuing education for the preceding year.

a. 12 hours of continuing education for the preceding year.

A piece of property which is 1/2 mile square is: a. 160 acres b. 320 acres c. A township d. 1/2 section

a. 160 acres

When the association of a salesperson is terminated with his/her sponsoring broker, the salesperson's license must be delivered to the commission by the broker within _____ days of such termination. a. 5 b. 10 c. 3 d. 15

a. 5

For a mortgage to be enforceable, the following is needed: a. A Promissory Note b. A Mortgage c. A Deed d. A Contract

a. A Promissory Note

When a real estate transaction pertains to more than one party, licensees shall provide to all persons signing the document a. A copy of the completed document with all signatures. b. Copies within eight days after final signature is affixed to the document. c. All copies must be hand delivered. No facsimile or electronic transmissions will be accepted. d. Nothing needs to be provided to the parties.

a. A copy of the completed document with all signatures.

To be valid, a metes and bounds description MUST have: a. A fixed beginning point. b. A legal street address. c. A plat description. d. Tier and range lines.

a. A fixed beginning point.

The principle of substitution is that: a. A person will not pay more for a property than the cost of another property of equal utility and desirability. b. Amenities are always balanced in appraising. c. Locations can be freely substituted. d. The period for which a property can show a return attributable to the improvements.

a. A person will not pay more for a property than the cost of another property of equal utility and desirability.

Of the following which would NOT be recorded? a. A promissory note b. A land contract c. A purchase money mortgage d. A deed of trust

a. A promissory note

Which of the following is allowed with the Real Estate Settlement Procedures Act (RESPA)? a. A salesperson may direct a borrower to a particular lender. b. A broker accepts a kickback on the placement of a loan that is subject to RESPA. c. A lender supplies an estimate of loan costs more than 72 hours after receiving a loan application. d. A broker accepts a fee for services not performed.

a. A salesperson may direct a borrower to a particular lender.

What is known as the Naked Owner? a. Abusus b. Fructus c. Usus d. None of the above.

a. Abusus

All of the following are TRUE about advertising EXCEPT: a. Advertising by salespeople can be by phone number alone. b. Salesperson's phone number can be used in ad. c. Salespeople can advertise their own personal real estate for sale. d. Salesperson's name and phone number may be larger in ad than the company name and phone number.

a. Advertising by salespeople can be by phone number alone.

APR is an accurate measurement of the cost of credit because it includes: a. All additional costs of borrowing. b. Only the interest rate. c. Attorneys fees d. Brokerage fees

a. All additional costs of borrowing.

Contractual ability means: a. All parties are competent. b. An attorney prepared the contract. c. The contract has a legal purpose. d. The act of sale will close on time.

a. All parties are competent.

An exclusive agency listing: a. Allows the owner to sell through his own efforts without obligation to pay a commission b. Need not contain a definite termination date c. Means the seller pays the agency regardless of who sells the property d. None of the above

a. Allows the owner to sell through his own efforts without obligation to pay a commission

A fiduciary relationship exists between: a. An agent and his principal b. A broker and a salesperson employed by the broker c. The buyer and the seller d. All of the above

a. An agent and his principal

An impediment to title to real estate is: a. An encumbrance b. An intrusion c. An appurtenance d. An encroachment

a. An encumbrance

Which of the following is NOT included in Truth-In-Lending? a. Attorneys fees b. Installment payments c. Finance charges d. Amount of down payment

a. Attorneys fees

The washing away of land by the action of water from one owner to another by the sudden change in the flow of a stream or river is: a. Avulsion b. Accretion c. Alluvion d. Reliction

a. Avulsion

A deed that implies that the grantor has title to the property and the right to convey it, but makes no warranties is known as a a. Bargain and sale deed b. Special warranty deed c. Quitclaim deed d. Warranty deed

a. Bargain and sale deed

A loan with payment that includes an amount to cover insurance and taxes would be a(an): a. Budget loan. b. Escrow loan. c. Blanket loan. d. Compound loan.

a. Budget loan.

A park placed between a subdivision and a commercial area WOULD be called a: a. Buffer Zone b. Variance c. Set Back d. Nonconforming Use

a. Buffer Zone

One who engages the professional advice and services of a licensee as his/her agent is a: a. Client b. Seller c. Customer d. Buyer

a. Client

The person who engages the services of a broker and whose interests are protected by the loyalties imposed by the relationship is a(an): a. Client b. Customer c. Attorney d. Salesperson

a. Client

Broker Mary Jones deposits $500.00 of a client's deposit money into her personal account and the balance into her trust account. This is: a. Commingling b. Co-depositing c. Reciprocity d. Escheat

a. Commingling

A recorded deed provides which of the following? a. Constructive notice b. Personal notice c. Actual notice d. Legal notice

a. Constructive notice

Which thing has a body? a. Corporeal b. Incorporeal c. Fixture d. Reconduction

a. Corporeal

The factors of value DOES NOT include: a. Cost b. Utility c. Scarcity d. Demand.

a. Cost

Which is (are) TRUE concerning mortgages: a. Creates a lien but does not convey title to lender. b. Security for mortgage is promissory note. c. Mortgages must be recorded to be legal. d. All of the above are true.

a. Creates a lien but does not convey title to lender.

Which of the following would NOT terminate a lease? a. Death of the lessor. b. Agreement between parties. c. Breach of contract. d. Expiration of lease term.

a. Death of the lessor.

Licenses are automatically suspended if NOT renewed by: a. December 31st b. January 31st c. One year from date of issue. d. March 31st.

a. December 31st

The clause in a mortgage that terminates the lender's interest when the mortgage is paid in full is known as: a. Defeasance b. Acceleration c. Alienation d. Satisfaction

a. Defeasance

The Commission has the power to create rules and procedures by which it may: a. Determine to whom a disputed escrow deposit should be paid. b. Determine the amount of commission to be charged a seller. c. Determine the amount of commission a salesperson should be paid on a sale.

a. Determine to whom a disputed escrow deposit should be paid.

Real property conveyed by will is called (a): a. Devise b. Legacy c. Bequest d. Rights of survivorship

a. Devise

Procedures for title transfer: a. Differ widely throughout the country. b. Are the same all over the country. c. Differ only in common law states. d. Are always the same in common law states.

a. Differ widely throughout the country.

The period for which a property can show a return attributable to the improvements is known as: a. Economic life b. Chronological life c. Effective age d. Depreciation life

a. Economic life

As to economic life and physical life: a. Economic life is shorter. b. Physical life is shorter. c. Economic life is longer. d. They normally are of the same duration.

a. Economic life is shorter.

When a buyer signs a valid real estate contract and seller accepts it; the buyer gains: a. Equitable title b. Legal title c. Actual title d. Chattel title

a. Equitable title

When real estate is abandoned or an individual dies with no will and no heirs; the State, Parish or County government authorities MAY then exercise its reversionary interest through: a. Escheat b. Police Power c. Eminent Domain d. Taxation

a. Escheat

A broker presents a seller with a written offer to purchase. The broker is responsible for: a. Explaining the advantages and disadvantages of the offer b. Explaining the legal implications of accepting the offer c. Binding the seller to the offer d. Preparing the title search once the agreement is signed

a. Explaining the advantages and disadvantages of the offer

In LOUISIANA; state or local government MAY exercise its power of eminent domain to take private land for public use, through the process of: a. Expropriation b. Assemblage c. Appropriation d. Allocation

a. Expropriation

Who is responsible for the enforcement of the Truth-In-Lending Law? a. Federal Trade Commission b. Real Estate Commission c. Corporations Commissions d. RESPA.

a. Federal Trade Commission

An owner's title insurance policy remains in force: a. For as long as he/she or his/her heirs own the property. b. Until the loan is paid. c. Until the loan balance drops below 70%. d. For five years.

a. For as long as he/she or his/her heirs own the property.

A life estate is: a. Freehold estate b. Leasehold estate c. Fee simple estate d. Feudal estate

a. Freehold estate

Of the following statements which is TRUE about the recording of a mortgage? a. Gives constructive notice of the mortgage lien. b. Gives actual notice of the mortgage lien. c. Complies with the requirements of RESPA d. Makes the note valid.

a. Gives constructive notice of the mortgage lien.

The Real Estate Commission consist of eleven members appointed by the: a. Governor b. Legislature c. Supreme Court d. President

a. Governor

A lease that requires a lessor to pay operating expenses of the property is called: a. Gross lease b. Net lease c. Graduated lease d. Participation lease

a. Gross lease

The clause in a deed that states the form of title the grantee WILL receive is the: a. Habendum clause b. Grantees clause c. Seisin clause d. Recordation clause.

a. Habendum clause

A salesperson who fails to account for a deposit can: a. Have his/her license revoked. b. Cause Broker to be fined. c. Reimburse the deposit from their personal account. d. Practice real estate for 30 more days.

a. Have his/her license revoked.

Which of the following are true about an owner who terminated an exclusive listing contract before its expiration date? a. He/she could be sued for breach of contract. b. He/she could be imprisoned for up to two years. c. He/she has no liability. d. None of the above

a. He/she could be sued for breach of contract.

A poor man's will for a husband and wife would be what type of ownership? a. Joint tenancy b. Tenancy by the entireties c. Tenants in common d. Community property

a. Joint tenancy

The relationship between the principal and the broker is covered by the: a. Law of Agency b. Fiduciary agreement c. Statute of Accountability d. Statute of Frauds

a. Law of Agency

A person issued a license by the Louisiana Real Estate Commission is a: a. Licensee b. Buyer c. Client d. Seller

a. Licensee

Who does the Real Estate Commission adjudicate disputes between? a. Licensees and their principals. b. Brokers and Salespeople. c. Realtors d. Will not involve themselves in disputes of any kind.

a. Licensees and their principals.

Sometimes personal property and fixtures are difficult to distinguish from each other. What is the best way to deal with this problem? a. List all questionable items in all contracts. b. Check how they are attached. c. Have the seller remove such items the day before the act of sale. d. Remove all the items before placing it on the market.

a. List all questionable items in all contracts.

Mortgagee's title insurance is paid on the: a. Loan amount b. Selling price Incorrect. c. Appraised price d. Assessed value

a. Loan amount

The principal advantage in contracting for a 30-year mortgage rather than a 25-year mortgage is: a. Lower monthly payments. b. Lower down payment. c. Easier financing. d. Higher interest rate.

a. Lower monthly payments.

Lesion Beyond Moiety: a. May rescind a sale if the immovable was less than half the value of the property at time of sale. b. A known vice was discovered after the sale. c. May receive half of the money back you paid for the property. d. May result in a felony conviction.

a. May rescind a sale if the immovable was less than half the value of the property at time of sale.

Metes and Bounds refer to: a. Measurement by angles and distances from a specific point. b. Lines running north and south. c. Area 24 miles square. d. Emblements

a. Measurement by angles and distances from a specific point.

On a non-navigable stream the property line is: a. Middle of stream b. Waters edge c. Lands edge d. None of the above.

a. Middle of stream

Acts that a licensee may perform for a person that are informative in nature such as conducting an open house and setting an appointment to view property are examples of a. Ministerial Acts b. Errors and Omissions c. Recovery Fund d. Agency Disclosure

a. Ministerial Acts

A vendors lien is always filed against the: a. Mortgage b. Promissory Note c. Selling Price d. None of the above.

a. Mortgage

The borrower of money or the person who gave the mortgage to the lender is: a. Mortgagor b. Mortgagee c. Borrower d. Borrowee

a. Mortgagor

An appointed member of the Real Estate Commission: a. Must be a Real Estate Broker. b. Can be reappointed to succeed themselves. c. Must have been a salesperson for 5 years. d. Must sponsor at least 10 licensees.

a. Must be a Real Estate Broker.

A broker who obtains an exclusive listing: a. Must include a definite termination date b. Must place the broker's "For Sale" sign on the property c. Must list it for at least a year d. All of the above

a. Must include a definite termination date

A listing agreement creates a: a. Special agency b. General agency c. Universal agency d. Agency with an interest

a. Special agency

The party who receives an offer to purchase is the: a. Offeree b. Offeror c. Buyer d. Agent

a. Offeree

Real property taxes are determined by which of the following ways? a. On an ad valorem basis. b. According to the number of occupants. c. By square footage. d. All of the above.

a. On an ad valorem basis.

Priority of liens is set by: a. Order of recordation. b. Amount of debt. c. Federal law d. The title attorney.

a. Order of recordation.

The proceeding where a property must be appraised and should sell for 2/3 of the appraised value is known as: a. Ordinary process. b. Confession of judgment. c. Executory process. d. Judgment.

a. Ordinary process.

When a mortgagee files suit to foreclose on a property, this is called: a. Ordinary process. b. Executory process. c. Confession of judgment. d. Judgment.

a. Ordinary process.

In using the cost approach, you would NOT need to know: a. Original cost b. Square footage c. Depreciation d. Land value

a. Original cost

Escalator clauses in leases provide for: a. Pass through of some expenses to tenant. b. Landlords right to raise rent at any time. c. Extending lease term. d. Landlords right to remove elevators.

a. Pass through of some expenses to tenant.

Zoning laws represent a government's: a. Police powers b. Variance power c. Eminent Domain d. Development power

a. Police powers

When we speak of "fair market value" we are referring to: a. Property on an open market offered for sale when neither buyer nor seller is pressured to buy or sell. b. Selling price of property. c. Loan value. d. Net proceeds of the seller.

a. Property on an open market offered for sale when neither buyer nor seller is pressured to buy or sell.

Option is exercised by: a. Purchase agreement b. Option extension c. Oral acceptance d. Option money.

a. Purchase agreement

The Smiths own their house free and clear of all liens and offer it for sale at $110,000. The buyers, the Byrds, give a deposit of $3,000 and agree to make a down payment of $37,000. The Smiths agree to loan the Byrds $70,000, which will be amortized for 30 years at 12% interest. This type of mortgage would be: a. Purchase money mortgage. b. Second mortgage. c. Term loan. d. Straight loan.

a. Purchase money mortgage.

A broker who is the sponsoring broker for a partnership or corporation is called a(n): a. Qualifying broker b. Individual real estate broker c. Realtor d. Associate broker

a. Qualifying broker

All of the following normally have to comply with Truth-In-Lending disclosure laws EXCEPT: a. Real estate brokers b. Mortgage companies c. Mortgage brokers d. Savings and loans

a. Real estate brokers

To provide for reimbursement to any person who is judged to have suffered monetary damages by reason of acts committed in violation of the Louisiana Real Estate License Law. a. Recovery Fund b. Agency Disclosure c. Errors and Omissions d. Real Estate Research and Education Fund

a. Recovery Fund

When a salesperson transfers to another broker; the old broker MUST: a. Return the salesperson's license to the Commission by hand delivery or certified mail. b. Send notice to the salespersons last known residence address. c. Give license to salesperson to deliver to new broker. d. Any method will work.

a. Return the salesperson's license to the Commission by hand delivery or certified mail.

Riparian Rights mean: a. River Bank b. Washing away c. Build up d. None of the above.

a. River Bank

Section 36 is located in what part of a township? a. SE b. NW c. NE d. SW

a. SE

Laws which determine the distance from the street that a building MAY be erected are: a. Setback ordinances b. Building codes c. Street clearance ordinances d. Curb laws

a. Setback ordinances

A mechanic's lien is a: a. Specific lien b. General lien c. Voluntary lien d. Governance Lien

a. Specific lien

A buyer withdraws a written offer before the seller has signed it. What is the brokers position in the transaction? a. The broker gets nothing. b. The broker splits the deposit money with the seller. c. The broker charges a commission later. d. The broker is entitled to expenses.

a. The broker gets nothing.

Before the Commission may suspend or revoke a license: a. The licensee must be given a hearing by the Commission. b. The Attorney General must make a ruling. c. He/she must be allowed to finish all pending business. d. He/she must be given a jury trial.

a. The licensee must be given a hearing by the Commission.

If property is claimed under eminent domain, the amount paid to the owner is: a. The market value of the property. b. The assessed value of the property. c. The appraised value of the property. d. The owner is not paid.

a. The market value of the property.

Which of the following statements is CORRECT? a. The object of a contract must be legal. b. All contracts must be in writing. c. Contracts signed by minors are never enforceable. d. Contracts must be recorded to be enforceable.

a. The object of a contract must be legal.

An option becomes a contract so sell when: a. The option is exercised. b. The option money is given (deposit). c. The option is signed by all parties. d. The listing broker is notified.

a. The option is exercised.

Who is (are) the principal(s) in a listing agreement? a. The owner b. The listing salesperson and the owner. c. The buyer and the seller d. The salesperson and the broker

a. The owner

A novation is best defined as: a. The substitution of one party for another in a contract wherein the original contract is extinguished and the undertaking of the new party is a new obligation. b. The substitution for one party for another in a contract wherein both parties are still liable. c. The same as an assignment. d. The means of acquiring title by adverse possession.

a. The substitution of one party for another in a contract wherein the original contract is extinguished and the undertaking of the new party is a new obligation.

Which of the following is shown on an estoppel certificate? a. Unpaid balance and interest rate on mortgage. b. Time of foreclosure c. Novation of the seller. d. Any defects in the title.

a. Unpaid balance and interest rate on mortgage.

Which of the following is shown on an estoppel certificate? a. Unpaid balance and interest rate on mortgage. b. Time of foreclosure. c. Novation of the seller. d. Any defects in the title.

a. Unpaid balance and interest rate on mortgage.

The right to use is known as: a. Usus b. Abusus c. Fructus d. None of the above.

a. Usus

A property is listed. Before it is sold the seller dies, the listing is now: a. Void b. Valid until it expires. c. Voidable d. None of the above.

a. Void

If the licensee wishes to appeal a revocation of his/her license, it must be done: a. Within 30 days. b. Within 60 days. c. Within 20 days. d. Within 6 months.

a. Within 30 days.

Land use control by local government WOULD be known as: a. Zoning Laws b. Master Plan c. Subdivision Regulation d. Building Codes

a. Zoning Laws

A licensee is permitted to accept a commission or valuable consideration from: a. An agent with another firm. b. His/her sponsoring broker. c. Both of the above. d. Neither of the above.

b. His/her sponsoring broker.

Which of the following WOULD NOT be involved with a will? a. administrator b. testator c. executor d. devisee

a. administrator

Real property taxes are considered ad valorem taxes because they a. are based on the value of a property b. pay for services to a property c. are based on the income-producing future of a property d. have an affect on each property equally

a. are based on the value of a property

The percentage borrowed in relation to the appraised price would be the: a. Equity rate. b. Loan to value ratio. c. Assessment rate. d. Interest rate.

b. Loan to value ratio.

Insurance premiums on FHA loans are paid by the a. borrower b. lender c. seller d. broker

a. borrower

Individual ownership of units in a multi-unit structure is a: a. condominium b. cooperative c. leasehold d. timeshare

a. condominium

Enacting real estate laws in Louisiana is the job of the: a. Louisiana Board of Realtors b. Louisiana State Legislature c. Louisiana Real Estate Commission d. Louisiana Real Estate License Bureau

b. Louisiana State Legislature

Owners of stock in a cooperative corporation are called: a. cooperators b. incorporators c. owners d. tenants

a. cooperators

To be effective a deed MUST be a. delivered and accepted b. filed and executed c. recorded and witnessed d. acknowledged and notarized

a. delivered and accepted

A document executed by a mortgagor or mortgagee setting forth the principal amount is a/an a. estoppel certificate b. encroachment c. defeasance clause d. release clause

a. estoppel certificate

A broker who intends to be compensated regardless of who sells the property SHOULD obtain a(an): a. exclusive right to sell b. exclusive agency listing c. net listing d. broker protected listing

a. exclusive right to sell

Legislation governing condominium development is known as a: a. horizontal property act b. vertical property act c. timeshare acts d. multi-unit legislation

a. horizontal property act

Personal property conveyed by will is known as a: a. legacy b. devise Incorrect. c. request d. probate

a. legacy

All of the following are government operated or supervised agencies in the secondary mortgage market EXCEPT a. Fannie Mae b. Maggie Mae c. Ginnie Mae d. Freddie Mac

b. Maggie Mae

The commission rate for the sale of real estate is determined by: a. negotiation between the broker and the seller b. silent agreement between brokers in the area c. scarcity of real estate for sale d. the Real Estate Commission

a. negotiation between the broker and the seller

When co-owners of a property disagree as to how the property should be divided, the courts WOULD most likely settle the dispute through: a. partition action b. escheat c. foreclosure action d. succession

a. partition action

Wills are under the jurisdiction of the: a. probate court b. appellate court c. municipal court d. district court

a. probate court

A lease which rental payments are adjusted periodically based on a percentage of market value of the building is a(an) a. re-appraisal lease b. index lease c. graduated lease d. gross lease

a. re-appraisal lease

Profits that are divided, in this type of mortgage, from the sale of the secured property between the seller and the lender is a(an) a. shared appreciation mortgage b. adjustable payment mortgage c. reverse annuity mortgage d. indexed mortgage

a. shared appreciation mortgage

A lease which permits the landlord to increase the rent annually by a predetermined amount is a(an) a. step-up lease b. reappraisal lease c. index lease d. percentage lease

a. step-up lease

A lessee who does NOT renew a lease but remains in possession against the lessor's wishes is a a. tenant at sufferance b. tenant for years c. tenant for period to period d. tenant by the entireties

a. tenant at sufferance

Within individual units in a condominium, insurance is provided by: a. the owner of the unit b. the owner's association c. the developer d. the tenants

a. the owner of the unit

On a closing statement, the seller WOULD receive credit for: a. the sales price b. taxes payable in arrears c. the deed preparation fee d. the mortgagee's title policy

a. the sales price

Jim Jackson wanted to have a 14% return on his building which he valued at $140,000. What kind of monthly rent should be charged? a. $19,600 b. $1,633 c. $1,000 d. $1,233

b. $1,633

Rental income from an office building is now $800.00 less per month since street parking was made illegal. Assuming a capitalization rate of 8%, the building suffered a loss in value of: a. $10,000 b. $120,000 c. $100,000 d. A change in rents doesn't affect value.

b. $120,000

Two buyers who attempted to purchase a parcel of land lose $32,000 because of a misrepresentation by the salesperson. What is the most they can get from the Recovery Fund? a. $10,000 b. $20,000 c. $30,000 d. $50,000

b. $20,000

The fee to change a licensee's status from active to inactive is: a. $25 b. $35 c. $45 d. $100

b. $35

A husband and wife have 3 children under the age of 23. The husband dies. What is the forced portion the children will receive? a. 1/4 b. 1/2 c. 3/4 d. None of the above.

b. 1/2

With Community Property each spouse owns an Undivided ______ Interest. a. 1/4 b. 1/2 c. Separate d. 75%

b. 1/2

Each license, certificate or registration shall be issued for a period of ____ year(s). a. 3 b. 1 c. 5 d. 10

b. 1

No individual real estate salesperson's license shall be issued to any person who has not attained the age of: a. 15 b. 18 c. 21 d. 25

b. 18

What is the MAXIMUM length of time to file a claim with the Recovery Fund? a. 360 days b. 180 days c. 90 days d. 30 days

b. 180 days

The 1st Fair Housing Act was in: a. 1803 b. 1866 c. 1968 d. 1988

b. 1866

It is the agent's responsibility to disclose all potential purchases of properties that were built prior to which date that possible lead hazards may be present in the house? a. 1975 b. 1978 c. 1980 d. None of the above

b. 1978

Licensees remaining on inactive status one to three years shall complete ____ hours of continuing education upon application to return to active license status. a. 10 b. 20 c. 8 d. 30

b. 20

All applicants for a brokers license shall have first served actively for _____ year(s) as a real estate salesperson. a. 1 b. 4 c. 2 d. 10

b. 4

A building with an economic life of 20 years would depreciate at what rate each year? a. 2% b. 5% c. 10% d. 20%

b. 5%

An option is which of the following? a. A bilateral contract b. A contract giving an individual the right to buy during a definite period at a definite price. c. A non-binding implied agreement. d. A voidable bilateral agreement.

b. A contract giving an individual the right to buy during a definite period at a definite price.

When the parties to a contract are thinking of the same thing and there has been an offer and acceptance: a. The contract must be in writing to be valid. b. A meeting of the minds has taken place. c. The contract has been executed. d. Each party is obligated to perform.

b. A meeting of the minds has taken place.

ECOA would allow a credit applicant to be refused a loan if they were: a. A female b. A minor c. A 70 year old person d. Unmarried

b. A minor

The following may file a claim with the Recovery Fund: a. Brokers who have their licenses suspended b. A person who suffered monetary loss from the actions of a licensee c. Brokers and salespeople with commission disputes d. Brokers who suffered a financial loss because of a civil suit

b. A person who suffered monetary loss from the actions of a licensee

To clear a cloud on a title which of the following is often used? a. An abstract and opinion b. A quitclaim deed c. A grant deed d. Private mortgage insurance

b. A quitclaim deed

The clause in a mortgage which benefits the lender if the buyer defaults is the: a. Redemption b. Acceleration c. Escalation d. Arbitration

b. Acceleration

Using similar properties selling in the same area for the purpose of appraising, is known as the: a. Cost approach b. Market Data approach c. Highest and Best Use approach. d. Income approach.

b. Market Data approach

A prospective buyer makes an offer on a property lower than the listed price. This offer is accompanied by an earnest money deposit. Of the following, which MUST the broker do? a. Accept the offer only and present it to the seller, and if offer is accepted request the deposit. b. Accept the offer and the deposit and present both to the seller. c. Accept the offer and deposit and wait until other offers on the property are made before presenting it to the seller. d. Refuse the offer and the deposit.

b. Accept the offer and the deposit and present both to the seller.

The buildup of land by the forces of nature are: a. Alluvion b. Accretion c. Avulsion d. Reliction

b. Accretion

Taxation of Real Estate is figured on a/an: a. Special Assessment Basis b. Ad Valorem Basis c. Market Value Basis d. None of the above.

b. Ad Valorem Basis

A relationship in which a real estate broker or licensee represents a client by the client's consent, whether express or implied, in an immovable property transaction. a. Recovery Fund b. Agency c. Ministerial Acts d. Errors and Omissions

b. Agency

Licensees shall provide the parties to a real estate transaction with this informational pamphlet. a. Errors and Omissions b. Agency Disclosure c. Recovery Fund d. Real Estate Research and Education Fund

b. Agency Disclosure

All licensees must provide both to buyers and sellers a (an): a. Completed settlement form b. Agency disclosure pamphlet c. Truth in Lending disclosure form d. Good Faith Estimate.

b. Agency disclosure pamphlet

Land is privately owned under the: a. Feudal system b. Allodial system c. Fee Simple system d. Market Data system

b. Allodial system

Consideration in a contract is: a. Not required. b. An exchange of promises. c. The deposit d. When all documents have been properly signed.

b. An exchange of promises.

When a monthly note is paid and the payment covers the previous month, the note is said to be in: a. Advance b. Arrears c. Graduated d. Default

b. Arrears

A person with a broker's license exclusively affiliated with another licensed broker. a. Qualified Broker b. Associate Broker c. Client d. Agent

b. Associate Broker

A licensee holding a brokers license but who is sponsored by another broker is a(n): a. Realtor associate b. Associate broker c. Sponsoring broker d. Salesperson

b. Associate broker

The revocation of a sponsoring brokers license will: a. Automatically revoke all salespersons licenses sponsored by him/her. b. Automatically suspend all salespersons licenses sponsored by him/her. c. Automatically transfer all sponsored licenses to the Real Estate Commission. d. Require all licensees to retake their license exam.

b. Automatically suspend all salespersons licenses sponsored by him/her.

the domicile of the commission shall be in the city of: a. New Orleans b. Baton Rouge c. Shreveport d. Lafayette

b. Baton Rouge

On a cooperative sale; all written offers SHOULD: a. Be presented to the owner by the selling agent. b. Be presented to the owner by the listing agent. c. Only be presented if no other offers are pending. d. Only be presented if within 10% of listed price.

b. Be presented to the owner by the listing agent.

Which of the following is not a power of the LREC?: a. Investigate the actions of any licensee upon its own motion. b. Become involved in disputes between licensees regarding the payment of commissions involving the sale of real estate. c. Fine licensees up to $5,000. d. Investigate the actions of any licensee upon a written and signed complaint.

b. Become involved in disputes between licensees regarding the payment of commissions involving the sale of real estate.

Listing agreements shall have: a. Beginning date only. b. Beginning and ending date. c. Ending date only. d. Neither a beginning nor ending date

b. Beginning and ending date.

A contract in which the consideration is a promise given in exchange for a promise is: a. Unilateral b. Bilateral c. Void d. Unenforceable

b. Bilateral

Transfer of ownership of personal property is done with: a. Bill of lading b. Bill of sale c. Deed d. Easement.

b. Bill of sale

A contract in which title is NOT transferred until all terms have been met is a(an): a. Real Estate Sales Contract. b. Bond For Deed. c. Option Contract. d. Earnest Money Contract.

b. Bond For Deed.

What is the similarity between VA and FHA loans? a. Both are guaranteed by the Federal government. b. Both require little or no down payment. c. Both are insured by the Federal government. d. Both require a certificate of eligibility.

b. Both require little or no down payment.

Laws which regulate construction and building standards within an area are called: a. Building liens b. Building codes c. Zoning ordinances d. Construction codes

b. Building codes

If a buyer wishes to be represented legally by the real estate company, he should sign a: a. Listing agreement b. Buyer's agency agreement c. Purchase agreement d. None of the above

b. Buyer's agency agreement

The investor's rate of return is the: a. Debt Service b. Capitalization Rate c. Rent Multiplier d. Net present value.

b. Capitalization Rate

A licensee may have his license revoked for all EXCEPT: a. Improper, fraudulent, or dishonest dealings. b. Charging a lower commission than is charged by other brokers in his/her locality. c. Failing to appear before the Commission when subpoenaed. d. Guaranteeing a client future profits on a sale.

b. Charging a lower commission than is charged by other brokers in his/her locality.

Mixing personal funds with funds belonging to other persons is: a. Legal b. Commingling c. Assemblage d. Steering

b. Commingling

In Louisiana the Matrimonial Regime of Husband & Wife owns property called: a. Tenancy by the Entirety b. Community Property c. Undivided Interest d. Separately

b. Community Property

A method used by brokers and salespeople to determine the value of a property in order to place it on the market is: a. Income approach b. Competitive market analysis c. GRM d. Cost approach

b. Competitive market analysis

All of the following are methods of appraising EXCEPT: a. Income approach b. Competitive market analysis c. Cost approach d. Market data approach

b. Competitive market analysis

Things such as Plumbing, Heating, Cooling and Electrical, would be known as: a. Component by Incorporation b. Component by Attachment c. Component by Declaration d. Corporeal Immovable

b. Component by Attachment

The process in which the mortgagor waived benefit of appraisement in a foreclosure proceeding is known as: a. Ordinary process. b. Confession of judgment. c. Trustee. d. Mortgagee.

b. Confession of judgment.

When a document is recorded in the public record, the world is given: a. Actual notice b. Constructive notice c. Legacious notification d. Implied notice.

b. Constructive notice

A clause in a contract which bases mutual consent on a specific event which may or may not occur is called: a. Consideration b. Contingency c. Agreement by Premonition d. Novation

b. Contingency

A separate value for the land must be computed for: a. Market approach b. Cost approach c. Capitalization approach d. Income approach.

b. Cost approach

The best method for appraising new properties or properties that are unique is the: a. Income approach b. Cost approach c. Market Data approach d. Assemblage approach

b. Cost approach

The covenant in a deed that states the grantor is the owner and has the right to sell the property is: a. Covenant of further assurance b. Covenant of seisin c. Covenant of quiet enjoyment d. Covenant of prior ownership

b. Covenant of seisin

Which of the following people could be legally refused under Fair Housing? a. Chronic alcoholic b. Crack addict c. Mentally ill person d. Person with AIDS.

b. Crack addict

Private owners can place what on property? a. Zoning b. Deed Restriction c. Laws d. Police Powers

b. Deed Restriction

A salesperson MAY buy property listed with his/her firm if he/she: a. Offers at least 75% of the listed price. b. Discloses to owner in writing that he/she is licensed with the listing firm. c. Calls the owner and lets him/her know he/she is licensed. d. Notifies the Real Estate Commission of his/her intentions to buy.

b. Discloses to owner in writing that he/she is licensed with the listing firm.

If a lender holding a note for $58,000 sold it to a second lender for $50,000, his action would be known as: a. Refinancing b. Discounting c. Depreciating d. Hypothecating

b. Discounting

Which of the following determines the gross rent multiplier: a. Multiplying the capitalization rate by the net income. b. Dividing the sales price by the gross rents. c. Multiplying the gross rents by the capitalization rate. d. Dividing the net income by the capitalization rate.

b. Dividing the sales price by the gross rents.

Which of the following easements COULD be created without a written document? a. Easement by encumbrance. b. Easement by prescription. c. Easement by appropriation. d. Easement by allotment.

b. Easement by prescription.

Crops that are grown and harvested annually are known as: a. Fixtures b. Emblements c. Chattel d. Real estate

b. Emblements

A junk yard located across from a subdivision would cause: a. Functional obsolescence b. Environmental obsolescence c. Physical obsolescence d. Non-conforming obsolescence

b. Environmental obsolescence

The borrower's right to redeem property is the period of default up to sheriff's sale is: a. Redemption period. b. Equitable Redemption. c. Statutory Redemption. d. Equity Redemption.

b. Equitable Redemption.

The difference between the value of property and the amount owed on it is: a. Leverage b. Equity c. Cash flow d. None of the above

b. Equity

A closing which is handled by one agent being responsible for collecting all signatures, money and documents WOULD be called: a. Act of sale closing. b. Escrow closing. c. Settlement meeting. d. Consideration.

b. Escrow closing.

A lease is for an original term of two years. If the tenant stays one extra day beyond the two years and the lease is automatically renewed, it would be a(an): a. Estate for years. b. Estate from period to period. c. Estate at sufferance. d. Estate at will.

b. Estate from period to period.

A life estate that passes to a third party upon the death of the life tenant is a(an): a. Estate in reversion b. Estate in remainder c. Estate in severalty. d. None of the above.

b. Estate in remainder

The document from a lender that gives the status of the loan such as loan balance, interest, time remaining and note is the: a. Loan certificate b. Estoppel certificate c. Equity certificate d. Mortgage certificate

b. Estoppel certificate

Foreclosure where there is no court action is an example of: a. Confession of judgment. b. Executory process. c. Judgment. d. Ordinary.

b. Executory process.

In a partially amortized loan with a balloon payment; when the balloon becomes due: what is the usual course of action? a. Foreclose on the property. b. Extend the loan for another period (roll-over). c. Make the borrowers borrow more money. d. Sue the mortgagors.

b. Extend the loan for another period (roll-over).

Usury does NOT apply to: a. FHA, VA and conventional loans. b. FHA and VA loans. c. Equity loans. d. Term loans.

b. FHA and VA loans.

Louisiana has adopted laws that allow Condominiums to exist. This is known as the: a. Condo Laws b. Horizontal Property Act c. Separate Property Act d. Housing Law

b. Horizontal Property Act

A certificate of eligibility MUST be provided by the borrower to obtain a a. FHA loan b. Conventional loan c. VA loan d. Second mortgage loan

c. VA loan

The two things about the Truth-In-Lending Act that real estate licensees should be most aware of are: a. Discount and carrying charges b. Finance Charge and Annual Percentage Rate c. Disclosure and discount d. Monthly installment and rescission

b. Finance Charge and Annual Percentage Rate

The Real Estate Commission is given the authority to: a. Prosecute licensees b. Fine licenses for violations up to $5,000. c. Enforce the Code of Ethics. d. Negotiate commission disputes between licensees.

b. Fine licenses for violations up to $5,000.

An agreement that would give a party the first chance to buy a property if it were ever placed on the market is called: a. An option b. First right of refusal. c. First right of acceptance. d. Prepository supposition

b. First right of refusal.

A quorum for Commission meetings is _____ members. a. Four b. Five c. Nine d. Six

b. Five

If a property owner refuses to pay his federal income tax, then his property WILL be encumbered by a: a. Voluntary lien b. General lien c. Special lien d. All of the above.

b. General lien

The federal agency of HUD that buys and sells mortgages for subsidized low income properties is: a. Fannie Mae b. Ginnie Mae c. Freddie Mac d. Farmer Mac

b. Ginnie Mae

Match the Common Law Concept of Life Estate. a. Community Property b. Habitation c. Sole Ownership d. Fee Simple

b. Habitation

Applicants for a salesperson license MUST: a. Have at least two years of college credit. b. Have a high school diploma or equivalent. c. Have completed 120 hours of classroom instruction. d. Have lived in this state for at least six months.

b. Have a high school diploma or equivalent.

An applicant for a brokers license MUST: a. Have been an active agent for at least five years. b. Have been an active agent for at least four years. c. Have completed at least one year of college credit in real estate. d. Be at least twenty-five years old.

b. Have been an active agent for at least four years.

On all sales; if the owner rejects the offer, the listing agent SHOULD: a. Call the selling agent and tell him to try and get another higher offer. b. Have the seller sign it and mark it "Rejected" then return a copy to selling agent. c. Not allow seller to reject. d. Call the selling agent in to persuade seller to accept.

b. Have the seller sign it and mark it "Rejected" then return a copy to selling agent.

In order to advertise a property the broker MUST: a. Have verbal permission from the owners. b. Have written permission from the owners. c. Use two signs in each yard. d. Advertise on the internet.

b. Have written permission from the owners.

In appraising a vacant lot, you should first determine: a. Asking price. b. Highest and best use. c. Price asked for similar lots. d. Original cost and when purchased.

b. Highest and best use.

All of the following statements are FALSE about an earnest money deposit EXCEPT: a. It will not be refunded if the seller rejects the offer to purchase b. It is not essential to make a contract of sale binding. c. It shows the seller's good faith. d. It may not be kept by the seller.

b. It is not essential to make a contract of sale binding.

All of the following statements are FALSE about an earnest money deposit EXCEPT: a. It will not be refunded if the seller rejects the offer to purchase b. It is not essential to make a contract of sale binding. c. It shows the seller's good faith. d. It may not be kept by the seller.

b. It is not essential to make a contract of sale binding.

Which of the following statements is NOT TRUE about a promissory note? a. It is executed by the borrower b. It is recorded with the mortgage. c. It is a personal obligation of the borrower. d. It is evidence of a debt.

b. It is recorded with the mortgage.

Mr. Wood will be in possession of a property until his death. Then the property goes to Mr. Smith. Mr. Wood's interest is a(an): a. Remainderman b. Life estate c. Leasehold d. Fee simple

b. Life estate

All of the following are common ways to measure land EXCEPT: a. Square foot b. Metes and Bounds c. Front foot d. Acre

b. Metes and Bounds

RESPA regulates: a. Methods of recording titles. b. Methods of settlement and closing. c. Interest rates on home mortgages. d. The money supply in the economy.

b. Methods of settlement and closing.

Which of the following changes over time under a graduated payment loan? a. Amount of the release fee. b. Monthly payment. c. Interest rate d. Payoff period

b. Monthly payment.

A cooperative association of Realtor firms who share listings is the: a. LA Real Estate Commission b. Multiple Listing Service c. Securities & Exchange Commission d. None of the above

b. Multiple Listing Service

A person procuring prospects for the sale of real estate for a fee: a. Will be arrested. b. Must be licensed. c. Must be a broker. d. Will be fined by the Louisiana Real Estate Commission.

b. Must be licensed.

If there is any difference between the loan amount and the sales price, it must be: a. Money may be borrowed. b. Must be paid by borrower. c. May be paid by seller. d. None of the above.

b. Must be paid by borrower.

A "Code of Ethics" for licensees was written by the: a. Real Estate Commission b. National Association of Realtors c. United States Congress d. Louisiana Legislature

b. National Association of Realtors

The amount and type of deposit required is determined by: a. Real Estate Commission rules b. Negotiation c. The listing broker d. Realtor Code of Ethics

b. Negotiation

When using the income approach, the appraiser divides the capitalization rate into: a. Gross income b. Net income c. Effective gross income d. Operating expense

b. Net income

Under which of the following leases may a lessee be responsible for paying for fire insurance? a. Index lease b. Net lease c. Gross lease d. Ground lease

b. Net lease

If the seller agrees to allow the broker to keep all money earned in a sale above a certain amount requested by the seller, the arrangement is called a(n): a. Open listing b. Net listing c. Multiple listing d. Exclusive right to sell listing

b. Net listing

In Louisiana a Lease: a. Must be in writing. b. Not required to be in writing. c. Must have a written contract. d. None of the above.

b. Not required to be in writing.

Substitution of a new contract for a former one is called: a. Fiduciary replacement b. Novation c. Compensatory substitution d. Satisfaction of contract.

b. Novation

If a lease expires and the tenant stays an extra week without opposition, the lease is extended: a. One week b. One month c. Two months d. Six weeks

b. One month

Lesion Beyond Moiety time for rescinding a sale is: a. 6 months b. One year c. Three years d. Five years

b. One year

Licenses are issued for: a. Two full years b. One year c. One full year starting on the date applicant passed test. d. Five years.

b. One year

The time frame for Redhibition is: a. 6 months b. One year c. Three years d. Five years

b. One year

The right of a landlord to re-enter and regain possession of a premises upon expiration of a lease is known as which of the following? a. Recovery b. Reversion c. Remainder d. Redemption

b. Reversion

A borrower is permitted to borrow an additional sum in the future. Which type of mortgage does he have? a. Package mortgage b. Open end mortgage c. Senior mortgage d. Blanket loan

b. Open end mortgage

An owner who employs more than one broker at the same time to accomplish the same task has given each broker a: a. Net listing b. Open listing c. Multiple listing d. None of the above

b. Open listing

Under Foreclosure proceedings, when you file a suit, this would be which of the following: a. Executory Process b. Ordinary Process c. Confessions of Judgement

b. Ordinary Process

A licensee spreading rumors of a toxic dump moving into an area so he can list houses is: a. Redlining b. Panic peddling c. Steering d. Intimidation

b. Panic peddling

A Limited Partnership is also known as a/an: a. Equal Partnership b. Partnership in Commendam c. General Partnership d. Unequal Partnership

b. Partnership in Commendam

A probate court: a. Settles disputes between co-owners of real property. b. Passes title of estates to the proper heirs. c. Determines the length of time required to claim title under adverse possession. d. Rules on warranty claims.

b. Passes title of estates to the proper heirs.

A veteran purchased a home that appraised for less than purchase price. He can do which of the following? a. Take out a second mortgage for the difference. b. Pay the difference in cash. c. Cannot purchase the house. d. Get a loan for the full value.

b. Pay the difference in cash.

After assembling two parcels of property and selling the new single parcel, you realized a profit of $50,000. This would be known as: a. Assemblage b. Plottage c. Substitution d. Income

b. Plottage

Title restrictive covenants or deed restrictions are established by: a. Local ordinance b. Private owners c. Federal law Incorrect. d. The IRS

b. Private owners

When an agent makes non-factual statements about the property that could reasonably be recognized as exaggeration, it is known as: a. Imputed disclosure b. Puffing c. Misrepresentation d. None of the above

b. Puffing

Owner financing where the title remains with the purchaser is called a: a. Budget Mortgage. b. Purchase Money Mortgage. c. Bond for Deed. d. Graduated Mortgage.

b. Purchase Money Mortgage.

The formula for determining taxes is: a. Tax x rate = assessed value b. Rate x assessed value = tax c. Tax x assessed value = rate d. Assessed value - tax = rate

b. Rate x assessed value = tax

The art of analyzing and effectively weighing the findings under the cost, market and income approach is: a. Plottage b. Reconciliation c. Assemblage d. Emblements

b. Reconciliation

When a lease expires and it is extended by the tenant staying an extra week or month, this is known as: a. Judicial Lease b. Reconduction c. Leftover Tenant d. Privilage

b. Reconduction

A salesman filling out a contract for a suburban home located in a subdivision that has been registered at the county (parish) courthouse, would normally describe the property using: a. Metes and Bounds b. Recorded Lot and Block Number c. Government Survey System d. Front Foot.

b. Recorded Lot and Block Number

A 3,000 square foot house built among many 2,000 square foot houses would probably experience: a. Progression b. Regression c. Anticipation d. Assemblage

b. Regression

In appraising a house for insurance coverage, you would be most concerned with: a. Income b. Replacement cost c. Selling price of similar homes. d. Age of the house.

b. Replacement cost

A reverse annuity mortgage (RAM) is best for: a. 1st time home buyers. b. Retired people on fixed incomes. c. FHA buyers. d. Couples with a low income to debt ratio.

b. Retired people on fixed incomes.

A borrower is permitted to borrow against the equity in his property and receive the loan funds on a monthly payment basis. Which of the following types of loans is this known as? a. Graduated Payment Mortgage b. Reverse Annuity Mortgage c. Shared Appreciation Mortgage d. Adjustable Rate Mortgage

b. Reverse Annuity Mortgage

An individual who owns a commercial building and wants money for improvements may get involved with a(an): a. Ground lease b. Sale with Leaseback. c. Index lease d. Sub-lease

b. Sale with Leaseback.

To determine the annual gross rent multiplier: a. Monthly rent divided into the sales price. b. Sales price divided by the monthly rent. c. Annual rent divided into the sales price. d. Sales price divided by the annual rent.

b. Sales price divided by the monthly rent.

The segment of the financial market that buys packages of loans is the: a. Primary market b. Secondary market c. Federal Mortgage Purchase Association d. Credit Unions

b. Secondary market

The selling of interstate securities or shares in real estate investments across state lines is regulated by the: a. Multiple Listing Service b. Securities & Exchange Commission c. Realtors d. None of the above

b. Securities & Exchange Commission

A property manager may do all of the following EXCEPT: a. Collect rent b. Sell time shares. c. Manage real estate d. Supervise maintenance

b. Sell time shares.

In an option contract who makes a promise? a. Buyer b. Seller c. The licensee d. The listing broker.

b. Seller

The advantage of an Executory Process is: a. No court action. b. Shorter period of time. c. No foreclosure period

b. Shorter period of time.

The personal choice of people for one area over another is: a. Amenities b. Situs c. Plottage d. Reconcile

b. Situs

If a buyer assumes a loan, which would be the better of the following? a. Assumption of b. Subject to c. Neither A nor B. d. Both A & B.

b. Subject to

If given the choice, it's best if the Buyer assumes an existing loan: a. Assumption of b. Subject to c. Buy Down d. None of the above.

b. Subject to

A clause in which the owner of a property assigns his rights to sue to his insurance company is called: a. Subordination clause b. Subrogation clause c. Acceleration clause d. Defeasance clause

b. Subrogation clause

A delinquent licensee who has NOT renewed by March 31st MUST: a. Take all educational hours again. b. Take the state license exam again. c. Pay a $500 delinquent fee. d. Pay a $100 delinquent fee.

b. Take the state license exam again.

Mr. Smith dies. His son comes in for his half of the property. Mrs. Smith and her son have a: a. Joint tenancy b. Tenancy in common c. Tenancy in severalty d. Tenancy by the entireties

b. Tenancy in common

Which of the following institutions is NOT a financial intermediary? a. Federally Chartered Commercial Bank b. The FHA c. Federally Chartered Savings and Loan d. Federally Regulated Credit Union

b. The FHA

Joe Jones lists his house for sale with Ben Brown who is a sales associate with H & H Realty. Which of the following is TRUE? a. The agency exists between Jones and Brown. b. The agency exists between Jones and H & H Realty. c. Both are direct agents of Joe Jones. d. None of the above

b. The agency exists between Jones and H & H Realty.

If a deposit is paid in advance and the tenant moves out: a. The deposit must be returned in full. b. The deposit must be returned unless any damage to the property. c. Landlord may keep the deposit at his discretion. d. None of the above.

b. The deposit must be returned unless any damage to the property.

The owner's equity in his/her property is: a. The amount paid by owner for his property. b. The difference between the property's market value and the amount owed on it by owner. c. The property's original market value minus its original cost. d. The current appraised value of the property.

b. The difference between the property's market value and the amount owed on it by owner.

In a loan having a balloon payment: a. The last payment has a higher interest rate than previous payments. b. The last payment is larger than previous payments. c. The last payment is principal only. d. Only interest is paid until the last payment.

b. The last payment is larger than previous payments.

If a purchase agreement is signed by both parties and then natural gas is discovered on the property before the closing; the royalties would go to: a. The current owner (seller). b. The new owner. c. They would split all royalties by law. d. No one gets any royalties.

b. The new owner.

Eminent Domain is: a. The process of taking private land. b. The right to take property for public use. c. Property owned by the federal government. d. A national park

b. The right to take property for public use.

The listing broker owes a fiduciary duty to: a. The buyer b. The seller c. The lender d. The Real Estate Commission

b. The seller

Which of the following statements is TRUE about an open or general listing? a. It must have a termination date. b. The termination date is not required. c. The broker receives commission regardless of who sells the property. d. The seller is not allowed to sell his property.

b. The termination date is not required.

In regard to reciprocity; if a licensee from another state wants a non-resident license in Louisiana: a. They must have relatives here in Louisiana. b. They must have an active license in their home state. c. They must pay a $500 non-resident license fee. d. They must open a branch office here in Louisiana.

b. They must have an active license in their home state.

RESPA was enacted in 1974 for the following purpose: a. To assure proper disclosure is always given to the buyer concerning interest rate on a new note. b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers. c. To assure full disclosure is always made in regard to financing on FHA and VA loans. d. To allow lending institutions to charge discount points and have all this fully disclosed at the time of closing of the sale.

b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers.

All of the following refer to legal descriptions EXCEPT: a. U.S. Government Survey b. Topographical Lines c. Metes and Bounds d. Lot and Block

b. Topographical Lines

In a trust deed, the borrower is called the: a. Trustee. b. Trustor. c. Beneficiary. d. Assignor.

b. Trustor.

In order to have a Predial Servitude you MUST have how many pieces of land? a. One b. Two c. Three d. Four

b. Two

A person has signed a contract to purchase property as a result of fear. This contract is said to be signed a. As a result of fraud. b. Under duress. c. Through undue influence. d. While temporarily insane.

b. Under duress.

A contract that would allow a minor to withdraw if he wished would be: a. Void b. Voidable c. Illegal d. Unenforceable

b. Voidable

When one party or the other to a contract has the option of declaring it void but has not taken action to do so; the contract is: a. Unenforceable b. Voidable c. Unimpaired d. Novations

b. Voidable

On a river such as the Mississippi, the property line is the: a. Middle of the river b. Waters edge c. Lands edge d. None of the above.

b. Waters edge

When should any licensee who has notified their broker of a desire to transfer expect the broker to return the license to the Commission? a. Within 72 hours. b. Within 5 days. c. Within 10 days. d. It is the salesperson's responsibility to return the license to the Commission.

b. Within 5 days.

A cooperative development is owned by: a. individual tenants b. a corporation c. owner's association d. tenants association

b. a corporation

A salesperson would use any of the following as a legal description on a purchase agreement EXCEPT: a. metes and bounds b. assessors case number c. lot and block d. rectangular survey system

b. assessors case number

A seller can be exempt of his liability under a mortgage by having a buyer a. subordinate the loan on the property b. assume the loan through novation c. take the property subject to the loan d. subrogate the loan on the property

b. assume the loan through novation

The removal of land when a river suddenly changes its channel is known as: a. reliction b. avulsion c. accretion d. riparian removal

b. avulsion

Of the following an example of an agency relationship WOULD be between a: a. buyer and seller b. broker and seller c. buyer and lender d. tenant and landlord

b. broker and seller

The powers of the Real Estate Commission do NOT include: a. Revocation and suspension of licenses b. Enforcement of Rules and Regulations. c. Enacting the Real Estate laws. d. Overseeing the licensing examination.

c. Enacting the Real Estate laws.

A buyer who wants a property and has the money to buy it best defines: a. utility b. demand c. scarcity d. transferability

b. demand

Heirs of a decedent who receive property from the estate are called: a. distributors b. distributees c. legators d. devisors

b. distributees

The most difficult depreciation to correct would be: a. functional b. economic c. physical d. accelerated

b. economic

The right of a governmental body to take land of an individual for the public good is known as a. adverse possession b. eminent domain c. escheat d. reversion

b. eminent domain

Jim is selling his property and the survey shows he has fenced in three feet of his neighbors yard. This WOULD be a(an): a. encumbrance b. encroachment c. license d. easement

b. encroachment

The person named in a will to carry out its provisions is called the: a. administrator b. executor c. testator d. promulgator

b. executor

Title to a unit in a condominium is derived from a: Select one: a. proprietary deed b. master deed c. leasehold agreement d. bill of sale

b. master deed

A copy of the complete copy should be given to all parties within ____ days. a. three b. five c. eight d. ten

b. five

If Mr. & Mrs. Jones own property as joint tenants and Mrs. Jones conveys her interest to their daughter, Mr. Jones and the daughter will own the property as: a. tenants in severalty b. tenants in common c. tenants by the entireties d. joint tenants

b. tenants in common

Recording a deed is of greatest benefit to the: a. broker b. grantee c. grantor d. title insurance company

b. grantee

The process of pledging real estate as security without giving up possession is known as a. novation b. hypothecation c. voluntary lien d. inchoate

b. hypothecation

A wraparound mortgage is a special form of second mortgage that a. secures real and personal property b. includes the original loan plus an additional loan amount c. covers more than one piece of property d. is a short-term mortgage

b. includes the original loan plus an additional loan amount

Financing of individual condominium units is usually through: a. a master mortgage on all units b. individual mortgages on each unit c. proprietary promissory notes d. blanket mortgages

b. individual mortgages on each unit

The right of survivorship is provided by a. period to period lease b. joint tenancy c. tenancy in common d. life estate

b. joint tenancy

A deed is used to convey: a. equitable title b. legal title c. leasehold rights d. Statutory title

b. legal title

What are the usual taxes on common elements in a condominium? a. paid by the tenants' association b. prorated along with taxes on individual units c. paid by the developer d. no taxes are charged on common elements

b. prorated along with taxes on individual units

The chain of title is broken between a previous owner and the present owner. To convey the title, the following will probably be required: a. title inspection b. quiet title suit c. contrct for deed d. bill of sale

b. quiet title suit

A devisee receives: a. personal property in a will b. real property in a will c. property by escheat d. foreclosed property

b. real property in a will

After foreclosure, the right of a person to regain title to his property is called the right of a. statutory recall b. redemption c. alienation d. reversion

b. redemption

"Littoral" property is located on: a. river bank b. seashore c. hillside d. a boundary line

b. seashore

The relationship between seller and broker is known as a. general agency b. special agency c. open agency d. universal agency

b. special agency

Which type of warranty limits the covenants of the grantor when he conveys real estate? a. quitclaim warranty b. special warranty c. general warranty d. Equitable warranty

b. special warranty

A type of deed used to create warranties but limits them to the time period of ownership by the grantor is a a. grant deed b. special warranty deed c. warranty deed d. quitclaim deed

b. special warranty deed

PMI is required when a Buyer pays less then _____ % Down. a. 5% b. 10% c. 20% d. 25%

c. 20%

Sally owned Lot A and Lot B behind her. She sold Lot B to Fred and gave him a servitude so that he would have ingress and egress for Lot B. Sally's property is now: a. the dominant estate b. the servient estate c. an encroached estate d. encumbered

b. the servient estate

An ownership interest in a condominium is distinguished from other types by a. divided interest in limited common areas b. undivided interest in common areas c. undivided interest in limited common areas d. divided interest in common areas

b. undivided interest in common areas

According to Truth-In-Lending, which of the following would be the proper usage in an advertisement relating to housing? a. "Assume a 7 1/2% mortgage . . ." b. "Take over a 7 1/2% mortgage . . ." c. "Assume a 7 1/2% Annual Percentage Rate mortgage . . ." d. "Nothing Down... "

c. "Assume a 7 1/2% Annual Percentage Rate mortgage . . ."

Two discount points charged on an FHA loan of $50,000 would amount to: a. $500 b. $700 c. $1,000 d. $2,000

c. $1,000

All active licensees licensed in accordance with the provisions of the Licensing Law are mandated to carry this type of insurance. a. Recovery Fund b. Agency Disclosure c. Errors and Omissions d. Real Estate Research and Education Fund

c. Errors and Omissions

The annual net income for a property is $30,000. If the owner realizes an 8% return on his investment, the value of the building would be: a. $160,000 b. $315,000 c. $375,000 d. $325,000

c. $375,000

According to the Uniform Commercial Code; any sale of personal property over a certain amount MUST be in writing to prove ownership. What is the amount? a. $100 b. $250 c. $500 d. $1,000

c. $500

Salespersons must take __ hours of continuing education before their license will be renewed. a. 5 b. 8 c. 12 d. 24

c. 12

How many sections in a township? a. 12 b. 24 c. 36 d. 48

c. 36

A parcel of land 1/4 of a mile by 1/4 of a mile is how many acres? a. 20 acres b. 60 acres c. 40 acres d. 80 acres

c. 40 acres

A licensee applying for a Louisiana non-resident license from a state that has reciprocity with Louisiana MUST provide the Louisiana Real Estate Commission proof that he/she has passed their home state's licensing exam within the last _____ years. a. 2 b. 4 c. 5 d. 6

c. 5

Brokers are required to maintain records for: a. 1 year. b. 3 years. c. 5 years. d. 6 years.

c. 5 years.

Contractors have how many days to file a mechanics lien? a. 30 b. 45 c. 60 d. 90

c. 60

Applicants have how long to find a sponsoring broker after passing the State exam? a. Must have broker before taking exam. b. Six months c. 90 days d. 60 days

c. 90 days

An option on real estate is: a. A deposit b. A consideration c. A contract d. An endorsement

c. A contract

The Commission consists of _____ members. a. Five b. Seven c. Eleven d. Fifteen

c. Eleven

Substitution of a new contract for a prior contract such as an assumption in which of the following? a. Lis pendens b. Plottage c. Novation d. Prescription

c. Novation

The buildup of soil on a riverbank or a stream is called: a. Alluvion b. Reliction c. Accretion d. Avulsion

c. Accretion

A loan with an interest rate tied to a changing index such as the Prime Lending Rate is called a(an): a. Percentage loan. b. Participation loan. c. Adjustable rate mortgage. d. Prime rate loan.

c. Adjustable rate mortgage.

A person acting under the provisions of the license law in a real estate transaction is a(n): a. Customer b. Client c. Agent d. Attorney in fact

c. Agent

Under an exclusive authorization (right) to sell listing: a. The seller may sell through his own efforts without obligation to pay a commission. b. The broker receives a commission regardless of whether the property is sold. c. All negotiations are handled through the listing broker. d. All of the above

c. All negotiations are handled through the listing broker.

A loan where the payment stays the same but the principal increases and the interest decreases after each payment is called a(an): a. Term loan. b. Variable Rate loan. c. Amortized loan. d. Equity loan.

c. Amortized loan.

A loan with payments that include both interest and principal in each payment is called a(an): a. Term loan. b. Balloon note. c. Amortized loan. d. None of the above.

c. Amortized loan.

A construction loan is considered to be: a. A Take Out Loan. b. A Low Risk Loan. c. An Interim Loan. d. A Secondary Loan.

c. An Interim Loan.

A french acre is known as a(an): a. Dation b. Section c. Arpent d. Linear

c. Arpent

Three lots were combined to make one large useful parcel. This is known as: a. Partition b. Plottage c. Assemblage d. Competition

c. Assemblage

Three lots were combined to make one large useful parcel. This is known as: a. Partition b. Plottage Incorrect. c. Assemblage d. Competition

c. Assemblage

When a non-veteran takes over a VA loan it is considered which of the following? a. Subordination b. Prescription c. Assumption d. Correlation

c. Assumption

Of the following, which applies to the Market Data Approach of appraising? a. Based on how many days the property has been on the market. b. Based on the income the property can produce. c. Based on the principle of substitution. d. Based on the cost to rebuild the building.

c. Based on the principle of substitution.

A contract involving an exchange of promises between the parties is a(an): a. Unilateral contract b. Binary contract c. Bilateral contract d. Novatory agreement

c. Bilateral contract

The illegal practice of inducing an element into an area for the purpose of inducing families to move is known as: a. Redlining b. Intimidation c. Blockbusting d. Steering

c. Blockbusting

What are laws regulating the selling of shares in real estate investments across state lines is called? a. Realtors' laws b. MLS laws c. Blue Sky laws d. None of the above

c. Blue Sky laws

Every applicant for a license shall submit a sworn statement attesting that he/she has knowledge of an understands the provisions of: a. The Fair Housing Act of 1968 only b. The Louisiana Equal Housing Opportunity Act only c. Both the Fair Housing Act of 1968 and the Louisiana Equal Housing Opportunity Act d. Neither the Fair Housing Act of 1968 and the Louisiana Equal Housing Opportunity Act

c. Both the Fair Housing Act of 1968 and the Louisiana Equal Housing Opportunity Act

On all sales; if the listing agent is aware of another possible offer arriving, he SHOULD: a. Wait until the offer arrives and then submit both offers. b. Wait for the other offer for no longer than 24 hours. c. Bring the first offer to seller as soon as possible. d. If the other offer arrives; submit only the highest offer.

c. Bring the first offer to seller as soon as possible.

A principal refers to which of the following? a. Agent and Seller b. Broker and Agent c. Buyer and Seller d. Agent and Buyer

c. Buyer and Seller

A buyer is told by a broker that a property is serviced by the city water company at the time he signs a purchase agreement on this property. The water source is actually a well and the buyer finds this out and refuses to close. Which of the following is TRUE in this particular situation? a. The broker may collect a commission from the seller. b. Seller may sue buyer for specific performance. c. Buyer may rescind the contract of sale. d. The closing must take place.

c. Buyer may rescind the contract of sale.

Which of the following statements is TRUE if a purchase agreement is signed and then the seller decides NOT to sell? a. Broker is not entitled to a commission. b. Buyer is reimbursed a portion of his earnest money. c. Buyer may sue for damages. d. Seller retains the earnest money.

c. Buyer may sue for damages.

When the real estate company legally represents the purchaser, it is a: a. Listing agreement b. Seller's agency c. Buyer's agency d. None of the above

c. Buyer's agency

A vendee is best described as one who: a. Sells or offers to sell. b. Loans money. c. Buys or offers to buy. d. Borrows money.

c. Buys or offers to buy.

When an appraiser assigns value to the rights to future income he is most likely using the: a. Market data approach b. Cost approach c. Capitalization approach d. Future forecast approach

c. Capitalization approach

The total amount of money remaining after all expenditures have been paid is: a. Appreciation b. Leverage c. Cash flow d. None of the above

c. Cash flow

Under ECOA rules, a borrower is less likely to be approved for a loan if their income is from: a. Child support b. Public assistance c. Commissions d. Alimony

c. Commissions

All advertisements for the sale of real estate MUST contain the: a. Home telephone number of broker. b. Home telephone number of listing agent. c. Company telephone number d. Address of the listed property.

c. Company telephone number

An example of an Emblement would be: a. Gas and oil b. Trees c. Corn d. None of the above.

c. Corn

A broker who changes his/her business address without notifying the Commission: a. Would have his/her license automatically suspended. b. Would automatically be scheduled for a hearing at the Commission. c. Could have his/her license suspended or revoked. d. Would have to pay a $100 fine.

c. Could have his/her license suspended or revoked.

Under a real estate contract, failure to meet an obligation is called: a. Rejection b. Damages c. Default d. Reversion

c. Default

Failure to meet an obligation when due is as: a. Duress. b. Deficiency. c. Default. d. Defeasance.

c. Default.

A licensee could have his/her license revoked for: a. Failure to devote full time to real estate businesses. b. Listing a property at less than 6% commission. c. Deliberately misrepresenting property so as to cause harm to a principal. d. Not being active during the previous year in the real estate business.

c. Deliberately misrepresenting property so as to cause harm to a principal.

The formula for the cost approach is replacement cost minus _________ plus land value = property value. a. Tax value b. Original cost c. Depreciation d. Sales price.

c. Depreciation

A broker, upon inspecting a property listed with his office, discovers a floor weakened by termite damage. He should: a. Remain silent to protect the interests of his client, the owner. b. Cancel the listing. c. Disclose this information to all concerned. d. Report the owner to the Commission.

c. Disclose this information to all concerned.

An owner who lives near a waterway but NOT abutting it, to have access to the water, this is called: a. Littoral Right b. Doctrine of Prior Appropriation c. Doctrine of Necessity d. None of the above.

c. Doctrine of Necessity

An owner wants to list her house with a broker, but does NOT wish to pay commission if she sells it to a lady who had looked at the house a few days earlier. Which listing contract would be used? a. Exclusive right to sell listing b. Open listing c. Exclusive agency listing d. Multiple listing

c. Exclusive agency listing

Definite termination dates must appear in: a. Agency agreements b. Open listings c. Exclusive listings d. All of the above

c. Exclusive listings

Proving procuring cause would not usually be necessary for a broker to receive a commission in what type of listing? a. Open listing b. Net listing c. Exclusive right to sell listing. d. Exclusive agency listing

c. Exclusive right to sell listing.

A contract which is created by the parties stating their intentions in words is a(an): a. Executory Contract b. Implied Contract c. Expressed Contract d. Executed Contract

c. Expressed Contract

Title restrictive covenants or deed restrictions are established by: a. Local ordinance b. Private owners c. Federal law d. The IRS

c. Federal law

The Commission has the power to require that brokers keep records of all transactions and receipts for all escrow deposits for: a. One year b. Two years c. Five years d. Ten years

c. Five years

Personal property that is attached to a building or land so that it becomes part of the real estate is known as: a. Emblements b. Improvement c. Fixture d. Chattel

c. Fixture

The penalty for "usury" is: a. One year in jail. b. $2,000. c. Forfeiture of all interest received. d. Usury is not illegal.

c. Forfeiture of all interest received.

Penalty for Usury is: a. Twice the interest paid. b. Depends on the Usury Rate. c. Forfeiture of all the interest. d. There is no penalty.

c. Forfeiture of all the interest.

If an agent knows that a roof leaks but tells a buyer that it doesn't, it is called: a. Innocent misrepresentation b. Unintentional puffing c. Fraud d. Salesmanship

c. Fraud

The Right to Enjoy the Fruits is known as: a. Usus b. Abusus c. Fructus d. None of the above.

c. Fructus

One bathroom in a four bedroom home would result in: a. Economic obsolescence b. Physical obsolescence c. Functional obsolescence d. Transferrable obsolescence.

c. Functional obsolescence

All are examples of Real Estate EXCEPT: a. Land b. House c. Gas & oil d. Barn

c. Gas & oil

A residential property GRM would use: a. Gross annual rent b. Net monthly rent c. Gross monthly rent d. Net annual rent

c. Gross monthly rent

The Right of a Person to live in the house of another for their lifetime in Louisiana is known as: a. Usufruct b. Life Estate c. Habitation d. None of the above.

c. Habitation

An original applicant for a Broker's license MUST: a. Have completed 90 hours of approved instruction. b. Have lived in this state at least six months. c. Have completed 150 hours of approved instruction. d. Be an agent for 1 year

c. Have completed 150 hours of approved instruction.

Any license who has had money paid on his behalf by the Recovery Fund will: a. Be suspended for a minimum of six months b. Be imprisoned for at least 30 days c. Have his license revoked d. Be fined no more than two thousand dollars

c. Have his license revoked

Mr. Green decided to purchase a house as his residence. He contracted to receive a first mortgage from a Federal Savings and Loan Association. Under the Federal Truth-In-Lending Act: a. He cannot cancel as it is with a Federal Savings and Loan. b. He can cancel as it is his right to cancel any loan. c. He cannot cancel as it is a first mortgage on his residence. d. He can cancel because it is a first mortgage on his house.

c. He cannot cancel as it is a first mortgage on his residence.

A broker is responsible for violations of the License Law by his/her agents: a. At all times b. Only if they work in the main office with him/her. c. If he/she was aware of their actions. d. If he/she was unaware of their actions.

c. If he/she was aware of their actions.

A broker is responsible for violations of the License Law by his/her agents: a. At all times. b. Only if they work in the main office. c. If the broker was aware of their actions. d. If the broker was unaware of their actions.

c. If the broker was aware of their actions.

When the value of money decreases but retail prices increase, it is: a. Cash flow b. Leverage c. Inflation d. Deflation

c. Inflation

Institutions making FHA loans would regard FHA as a(an): a. Secondary Market b. Source of funds c. Insurer d. Primary Market

c. Insurer

An abstract of title: a. Would show all encroachments on property. b. Insures clear title. c. Is a history of the property in the public record. d. Provides actual notice of all hidden defects.

c. Is a history of the property in the public record.

With an Earnest Money Contract, if one party backs out, the other party: a. May sue. b. Can demand Specific Performance. c. Is entitled to the Earnest Money Deposit. d. None of the above.

c. Is entitled to the Earnest Money Deposit.

Jane and Mary purchase land as equal partners. Mary has two children. If Mary dies before Jane, her share goes to Jane. What type arrangement do Mary and Jane have? a. Tenancy in common. b. Fee simple absolute. c. Joint tenancy. d. Fee simple conditional.

c. Joint tenancy.

The term that best describes a tenants rights to leased property would be: a. Reversionary interest b. Remainder interest c. Leasehold interest d. Life estate

c. Leasehold interest

The Commission has the right to subpoena for purposes of holding any hearings: a. Brokers only b. Salespeople only. c. Licensed and unlicensed people. d. They have no subpoena rights.

c. Licensed and unlicensed people.

If a Contracts terms are not met, the Contract is said to be: a. Relative Null b. Absolutely Null c. Null d. Lawfully Null

c. Null

Privilege is also known as a/an: a. Bond b. Affidavit c. Lien d. None of the above.

c. Lien

The provision in a real estate sales contract that states the buyer will forfeit the earnest money deposit in the event of his default provides for one of the following types of damages. a. Specific performance b. Compensatory c. Liquidated d. Actual

c. Liquidated

The provision in a real estate sales contract that states the buyer will forfeit the earnest money deposit in the event of his default provides for one of the following types of damages. a. Specific performance b. Compensatory Incorrect. c. Liquidated d. Actual

c. Liquidated

A written and signed document authorizing a broker to sell the real estate described in such document is a: a. License b. Franchise Agreement c. Listing Agreement d. Purchase Agreement

c. Listing Agreement

Ginnie Mae provides funds for: a. VA, FHA and Conventional Loans b. Savings and Loan Associations c. Low income housing d. All of the above.

c. Low income housing

An appraisal of property determines the: a. Selling price b. Highest and best use. c. Market value d. Economic value

c. Market value

An overall plan for the orderly growth of a community is called a(an): a. Development plan b. Site plan c. Master plan d. Recorded plat

c. Master plan

A sponsoring broker: a. May use unlicensed agents as long as they are in a prelicensing school. b. May be unlicensed agents as long as they work only with buyers. c. May sponsor only licensed agents. d. Must sponsor only licensed brokers

c. May sponsor only licensed agents.

A party to a purchase agreement signed the contract on the basis of false information about the property, the contract is voidable by which of the following? a. Lack of consideration. b. Capacity of the parties. c. Misrepresentation of facts. d. Legal objectivity.

c. Misrepresentation of facts.

When Zoning and Deed Restrictions conflict, which one controls? a. Zoning b. Deed Restriction c. More Restrictive of the Two d. Neither

c. More Restrictive of the Two

A blanket mortgage covers: a. Both real and movable property. b. More than one transaction. c. More than one piece of property. d. Both the property and the appropriate mortgage insurance.

c. More than one piece of property.

Which of these is a voluntary lien? a. Special assessment b. Taxes c. Mortgage d. Court judgment

c. Mortgage

If a salesperson who is transferring to a new broker still owes the old broker money, the old broker: a. May hold the license until paid. b. May request that Commission revoke the license. c. Must transfer license to Commission. d. May file a complaint with the LREC.

c. Must transfer license to Commission.

The amount of commission paid to a broker is determined by: a. The Board of Realtors b. The Real Estate Commission c. Negotiation d. The State law

c. Negotiation

A broker has his/her office in his/her home. The area is recently zoned to single family residential. He/she WILL be permitted to maintain his/her office by: a. Variance b. Spot zoning c. Non-conforming use d. Zoning amendment

c. Non-conforming use

When a salesperson changes his/her address or phone number he/she should: a. Notify the broker within five days. b. Notify the Commission within 20 days. c. Notify the Commission within 10 days. d. He/she is not required to tell anyone.

c. Notify the Commission within 10 days.

A Louisiana broker MAY cooperate with a broker from another state on sales within Louisiana if: a. The out-of-state broker agrees to be the responsible party. b. A copy of the brokers agreement is sent to the local Board of Realtors. c. One copy of the agreement between the brokers is sent to the Commission. d. The out-of-state broker gets less than half of the commission.

c. One copy of the agreement between the brokers is sent to the Commission.

A broker has one main office and three branch offices. She/he must have: a. One license for her/his main office only. b. Two licenses; one for the main office and one blanket license for the three branches. c. One license for the main office and one for each of the three branches. d. Licenses are not issued for offices; only brokers and salespeople.

c. One license for the main office and one for each of the three branches.

Which is NOT allowed under Fair Housing? a. Private club renting to members only. b. Owner of duplex refusing to rent other side to family with a child. c. Owner of 10 unit complex rents to women only. d. Baptist private school refuses to rent housing to public.

c. Owner of 10 unit complex rents to women only.

Monthly payments for a particular loan are figured on a 25 year amortization schedule. However, the loan is due in full after five years. What type of loan is this? a. Open-end mortgage. b. Variable rate mortgage. c. Partially amortized loan. d. Reverse payment mortgage.

c. Partially amortized loan.

When a broker acts for more than one party in a real estate transaction with the knowledge and consent of all parties, it is considered: a. Grounds for disciplinary action. b. Contrary to the Code of Ethics. c. Permissible according to licensing law. d. Illegal under Louisiana License Law.

c. Permissible according to licensing law.

Commingling of funds is: a. Placing all client funds in the same escrow account. b. Placing brokers personal funds in the company operating account. c. Placing clients funds in the brokers personal account. d. Placing client funds in the hands of the Real Estate Commission.

c. Placing clients funds in the brokers personal account.

Discount points on FHA loans are a form of: a. Discount to the seller. b. Insurance coverage c. Prepaid interest d. Reserve for insurance and property tax payments.

c. Prepaid interest

One who for a fee manages real estate, collects rents, supervises property maintenance for another. a. Sponsering Broker b. Agent c. Property Manager d. Buyer

c. Property Manager

The primary purpose of the LA Real Estate Commission is to: a. Restrict competition. b. Protect licensees from unethical conduct. c. Protect the public. d. Educate the public.

c. Protect the public.

Together Fannie Mae, Ginnie Mae, and Freddie Mac: a. Securer loans originated by savings and loan associations. b. Regulate the low cost housing market. c. Provide a place for primary lenders to sell loans. d. Provide mortgage insurance for primary lenders.

c. Provide a place for primary lenders to sell loans.

The first step of an appraisal is for the appraiser to realize the: a. Market Value b. Fair Market Value c. Purpose of the appraisal. d. Cost of materials used to build.

c. Purpose of the appraisal.

Which type of deed is used to clear up title defects? a. Bargain and sale deed b. Quiet title deed c. Quitclaim deed d. General warranty deed

c. Quitclaim deed

The Civil Rights Act of 1866 prohibits discrimination on: a. Religion b. Nationality c. Race d. Sex

c. Race

Established for education and to promote the advancement and more efficient administration of the real estate industry. a. Recovery Fund b. Agency Disclosure c. Real Estate Research and Education Fund d. Errors and Omissions

c. Real Estate Research and Education Fund

A certain lender restricts loans in a particular area of town because of its racial makeup. This is: a. Steering b. Panic Lending c. Redlining d. Blockbusting.

c. Redlining

"Aggrieved" persons may file a complaint with HUD for: a. Up to 180 days. b. Up to two years. c. Up to one year. d. An indefinite period.

c. Up to one year.

The Equal Credit Opportunity Act (ECOA) prohibits: a. Lenders from giving reasons for rejecting applications for credit. b. Discrimination in the rental of apartments. c. Refusing credit because a woman is unmarried. d. The use of federal disclosures in closing loans.

c. Refusing credit because a woman is unmarried.

All trade names, symbols, and logos used in advertising a real estate company MUST be: a. Professionally designed. b. Filed with the Board of Realtors. c. Registered with the Real Estate Commission. d. Registered only with the Secretary of State of Louisiana.

c. Registered with the Real Estate Commission.

Dry land that is exposed by gradual receding of the water line is: a. Accretion b. Alluvion c. Reliction d. Avulsion

c. Reliction

Sales escrow accounts shall contain: a. Company operating funds b. Rental security deposits c. Sales deposits d. Sales commission funds

c. Sales deposits

Laws related to selling of shares in real estate ventures are called "Blue Sky Laws". Who has jurisdiction for enforcing those laws? a. Federal Trade Commission b. Internal Revenue Service c. Securities and Exchange Commission (SEC) d. LA Real Estate Commission

c. Securities and Exchange Commission (SEC)

Ownership by one person in common law state is known as: a. Reversion b. Remainder c. Severalty d. Tenancy

c. Severalty

A court order to compel an owner or buyer to live up to the terms agreed upon in a contract is: a. Liquidated damages b. Litigatory exclusion c. Specific performance d. Rescission

c. Specific performance

The borrower has the right to redeem the property after it has been sold to another at the sheriff's sale. This is called the: a. Redemption period. b. Equitable Redemption. c. Statutory Redemption. d. Equity Redemption.

c. Statutory Redemption.

When restrictions are placed on a number of properties simultaneously in a subdivision, it is done with a: a. Special assessment b. Write of execution. c. Subdivision restrictions d. Group restriction.

c. Subdivision restrictions

An encroachment would be detected by: a. Appraisal b. Title search c. Survey d. Abstract of title

c. Survey

The revocation or suspension of a broker's license shall automatically a. Suspend only associate broker's license's sponsored by the broker. b. Suspend only salesperson's license's sponsored by the broker. c. Suspend both associate broker's and salesperson's license's sponsored by the broker. d. This will not affect any associate broker or salesperson's licenses sponsored by the broker.

c. Suspend both associate broker's and salesperson's license's sponsored by the broker.

There is no right of survivorship in: a. Tenancy by the entireties b. Joint tenancy c. Tenants in common d. Blue sky tenancy

c. Tenants in common

A licensee SHALL be investigated by the Commission: a. Upon a verbal complaint called in to the Commission. b. Upon a written complaint sent to the Board of Realtors. c. Upon a written and signed complaint sent to the Commission. d. Once every two years.

c. Upon a written and signed complaint sent to the Commission.

Which of the following is a violation of the broker's fiduciary responsibility to the seller? a. The broker charges no commission. b. The broker charges a 30% commission. c. The broker tells a prospective purchaser the lowest price the seller will accept. d. The broker tells a prospective purchaser the highest price the seller will accept.

c. The broker tells a prospective purchaser the lowest price the seller will accept.

Mr. Jones sold his property to Mr. Walsh without letting him know about a recorded easement against the land. What happens to this easement? a. It is no longer valid. b. This is fraud. c. The easement goes with the land. d. A new easement has to be written & recorded.

c. The easement goes with the land.

Escrow accounts shall be maintained until: a. The funds can be moved to brokers personal account. b. The funds can be sent to the Real Estate Commission. c. The funds are properly disbursed according to law. d. The funds are shifted to broker's general operating fund.

c. The funds are properly disbursed according to law.

Every real estate corporation or partnership MUST designate on the company license: a. The names of all partners or stockholders. b. The names of all associate brokers. c. The name of the qualifying broker. d. The name of the sales manager.

c. The name of the qualifying broker.

Mr. Smith pays Mr. Jones $10,000 for an option to purchase a property for $400,000 within one year. After six months, Mr. Smith offers Mr. Jones a lower price for the property. Which of the following is TRUE? a. The new offer voids the option. b. The new offer is in violation of the law. c. The new offer may be accepted by Mr. Jones. d. Mr. Smith may sue for breach of contract.

c. The new offer may be accepted by Mr. Jones.

Which statement is TRUE about a grantor in a deed? a. The person must be competent. b. The person must be over 18 years of age. c. The person must be identified with reasonable certainty. d. The person must execute the deed.

c. The person must be identified with reasonable certainty.

RESPA requires lenders give to borrowers all of the following EXCEPT: a. Good faith estimate of costs b. "Settlement Costs and You" booklet c. Three day right of rescission d. Completed settlement form

c. Three day right of rescission

A licensee whose license has been inactive for 3 years must take _____ hours of continuing education to transfer to active status. a. Eight b. Sixteen c. Twenty d. Thirty-two

c. Twenty

In LOUISIANA, under the rectangular survey system we have: a. One meridian and one base line. b. Two meridians and two base lines. c. Two meridians and one base line. d. Two base lines and one meridian.

c. Two meridians and one base line.

An exemption for capital gains for most residential properties is available if the property is owned for a certain amount of time. What is the length of time? a. 6 months b. One year c. Two years d. Five years

c. Two years

A survey that refers to fractional sections, townships and ranges is a legal description by: a. Metes and Bounds b. Recorded map. c. U.S. Government Survey d. Lot and Block.

c. U.S. Government Survey

When the owner of a property sells it with an existing lease, the lease is: a. Terminated. b. Renegotiated with new owner. c. Unaffected by the sale. d. Rescinded.

c. Unaffected by the sale.

A contract in which neither party could sue would be: a. Void b. Voidable c. Unenforceable d. Implied

c. Unenforceable

A listing agreement would be a(an): a. Counteroffer b. Bilateral contract c. Unilateral contract d. Implied contract

c. Unilateral contract

An owner's title insurance policy protects the buyer: a. Against theft. b. Against structural damage. c. Up to his purchase price if the title is defective. d. Up to the loan amount only.

c. Up to his purchase price if the title is defective.

Legal permission granted to violate the zoning laws WOULD be a(an): a. Non-conforming use. b. Setback permission. c. Variance d. Buffer zone

c. Variance

If a purchaser signed a contract under duress; it is generally: a. Void b. Voidable by the seller. c. Voidable by the buyer. d. Voidable by either party.

c. Voidable by the buyer.

A licensee wishing to appeal the revocation of his/her license: a. Must submit an appeal bond. b. Will have his/her case heard by the Attorney General. c. Will have his/her case heard by the 19th Judicial District Court. d. Must wait six months.

c. Will have his/her case heard by the 19th Judicial District Court.

Which is NOT a fixture: a. Ceiling fan b. Water fountain c. Window air conditioner d. Mirrors

c. Window air conditioner

A broker offering another person's real estate for sale must have: a. Verbal consent from all owners. b. Written consent from the Real Estate Commission. c. Written consent from the owners. d. A certificate of authority from the local Board of Realtors.

c. Written consent from the owners.

Brokerage firms affiliated with franchise operations MUST include the phrase "Individually Owned and Operated" in the following advertising EXCEPT for: a. Newspapers b. Brochures c. Yard Signs d. Magazines

c. Yard Signs

In order to record a deed, it MUST be in writing and: a. signed by grantee b. recite the actual purchase price c. acknowledged d. be free of all liens

c. acknowledged

Three purchase agreement contact offers come in on a property the same day but at different times. The listing broker receiving the offers is finally able to contact the seller at 6:00 p.m. of that same day. The broker SHOULD present a. all three offers to the seller in the order in which they were received b. only the highest priced offer to the seller c. all three offers to the seller at the same time d. only the highest price to the seller

c. all three offers to the seller at the same time

The amount a lender will loan on a property is generally based on its: a. sales price b. appraised price c. appraised value or the sales price, whichever is less d. appraised value or the sales price whichever is greater

c. appraised value or the sales price, whichever is less

To secure a 12% return to the buyer of a 9% junior mortgage, it MUST be sold at: a. propration b. option c. discount d. assumption

c. discount

If a property is redeemed after foreclosure but before the sheriff's sale it is: a. expropriation b. redhibition c. equitable redemption d. statutory redemption

c. equitable redemption

If an owner of real estate dies without a will and without heirs, the property will revert to the government through a process known as a. reconveyance b. reversion c. escheat d. succession

c. escheat

Mr. Smith died and left a will in which Mr. Jones was named to settle Mr. Smith's affairs. Mr. Jones is called the estate's a. administrator b. testator c. executor d. accouontant

c. executor

A contract of sale signed by the purchaser and seller is called a(an) a. consideration contract b. unilateral contract c. expressed contract d. implied contract

c. expressed contract

A Broker or Salesperson using any internet electronic communication for advertising MUST include name as registered with the Commission, city and state where the office is located and the regulatory jurisdiction(s) in which the broker holds a real estate brokerage license on the _________________ of all communications. a. first page b. last page c. first or last page d. This is not a necessary disclosure.

c. first or last page

A quitclaim deed conveys the interest of the: a. grantee b. mortgagee c. grantor d. lessee

c. grantor

If a person dies intestate, title to his/her property WOULD usually pass to: a. the government b. his devisee c. his heirs d. the IRS

c. his heirs

A major difference between a freehold estate and a non-freehold estate is that a freehold estate is usually: a. for a fixed period of time. b. terminated at death. c. inheritable d. renewed automatically

c. inheritable

Which of the following is an assignable contract? a. A lease b. A promissory note c. A purchase agreement d. All of these contracts can be assigned.

d. All of these contracts can be assigned.

A licensee may act as a dual agent: a. with the written consent of the buyer. b. with the written consent of the seller. c. only with the written consent of all clients. d. the licensee does not need written consent from either client.

c. only with the written consent of all clients.

The priority of mortgage liens is determined by the: a. date of the mortgage b. amount of the note c. order of recordation d. date of the mortgage note

c. order of recordation

Repairs and maintenance of common elements in a condominium development are paid for by: a. individual tenants b. the developer c. owners association d. only the owners that want to.

c. owners association

A lease under which the rent is based upon the gross revenues of the business is a(an) a. index lease b. gross lease c. percentage lease d. step-up lease

c. percentage lease

Allen sold a right of way to ABC Pipeline to cross his land. The company acquired a(an): a. predial servitude b. license c. personal servitude d. strip of land

c. personal servitude

The right to an easement acquired by continuous use of real property without the consent of the property owner for a period of years is created by a. reservation b. a grant c. prescription d. necessity

c. prescription

Which of the following MAY be acquired by adverse possession? a. state property b. federal property c. private property d. county property

c. private property

Probate means an action to: a. cure a defect by a quit claim deed b. prove title by adverse possession c. process a will, to establish its validity d. obtain access to a safe deposit box

c. process a will, to establish its validity

The rights of use of individual units in a cooperative development are derived from a: a. master deed b. master lease c. proprietary lease d. promissory note

c. proprietary lease

Title acquired by adverse possession MAY be perfected by: a. recording within 180 days b. marketing or selling the property c. quiet title action d. prescription

c. quiet title action

Mr. Wood is presently in possession of a property. His interest in the property may be all of the following EXCEPT a a. life estate b. fee simple c. remainder interest d. period to period lease

c. remainder interest

Private agreements that govern the use of land are: a. zoning codes b. encroachments c. restrictions d. workman liens

c. restrictions

A type of mortgage which enables elderly homeowners to borrow against the equity in their homes so they can receive monthly payments needed to help meet living costs is known as a. resulting trust b. retainage c. reverse annuity mortgage d. risk capital

c. reverse annuity mortgage

The grantor, under a general warranty deed, does NOT give warranties relating to a. possessory rights b. easements c. structural soundness of buildings d. mechanic's liens

c. structural soundness of buildings

When an adverse claimant transfers his rights to another person, this is called: a. expropriation b. partition sale c. tacking d. Claim of possession

c. tacking

If a Real Estate agent is sued over a Real Estate transaction, it should be reported within ____ days to the Commission. a. three b. five c. ten d. thirty

c. ten

A deed that conveys title to two unrelated grantees and makes no statement about the type of interest they will hold creates a a. tenancy by the entireties b. tenancy at will c. tenancy in common d. joint tenancy

c. tenancy in common

Title insurance policies standard form provide legal certainty that: a. there are no judgments or pledges against the property b. the property is free and clear of all encumbrances c. the title is only as it appears on record subject to conditions and exceptions d. the records do not contain any forged instruments

c. the title is only as it appears on record subject to conditions and exceptions

Conventional loans must be insured by PMI insurance if the down payment is less than: a. 5% b. 10% c. 15% d. 20%

d. 20%

Which of the following is the clause in a mortgage allowing the lender to declare the outstanding balance of the loan due when in default by the borrower? a. An escalation clause b. An equity of redemption clause c. A habendum clause d. An acceleration clause

d. An acceleration clause

A parcel of land six miles wide and six miles long is: a. One acre b. A section c. A range d. A township

d. A township

The Delinquent Fee February 16 - March 31st is: a. $25 b. $45 c. $100 d. $200

d. $200

The Real Estate Commission may fine licensee up to: a. $500 b. $1,000 c. $2,500 d. $5,000

d. $5,000

A broker sells several different tracts of land to six different buyers. A total of $60,000 is lost. How much can be collected from the Recovery Fund? a. $20,000 b. $30,000 c. $40,000 d. $50,000

d. $50,000

What age may a child no longer be a forced heir? a. 18 b. 20 c. 21 d. 24

d. 24

Which is larger than a section? a. 1/36th of a township b. 16 forty-acre parcels c. 27,000,000 square feet d. 5,000 feet by 6,000 feet

d. 5,000 feet by 6,000 feet

A privilege or lien is filed within _____ days when last work was done. a. 10 b. 15 c. 30 d. 60

d. 60

Because of death of the Broker, Salesperson may transfer to new Broker within: a. 5 days b. 10 days c. 30 days d. 60 days

d. 60 days

How many acres in a section? a. 160 b. 480 c. 320 d. 640

d. 640

Real Estate licensing shall be required in which the following situations?: a. A trustee selling under a mortgage. b. An attorney required by a client in legal representation. c. A Sherriff selling property at a foreclosure sale. d. A father selling a property for his college-aged son.

d. A father selling a property for his college-aged son.

All of the following correctly describes a fiduciary EXCEPT: a. A fiduciary owes loyalty to the principal. b. A fiduciary must conform to the client's legal instructions. c. A fiduciary is an agent. d. A fiduciary is a neutral third party.

d. A fiduciary is a neutral third party.

Civil penalties for a violation of the License Law are: a. A fine of not more than two thousand dollars only. b. Imprisonment of not more than five years only. c. Revocation of the real estate license. d. A fine of not more than two thousand dollars, imprisonment of not more than five years, or both.

d. A fine of not more than two thousand dollars, imprisonment of not more than five years, or both.

Of the following which will NOT encumber title to a property? a. An easement b. A deed restriction c. A lien d. A license

d. A license

Which of the following would be acting as a general agent? a. A salesperson representing a buyer. b. A residential broker taking a listing. c. An attorney defending a broker in court. d. A property manager overseeing all of his principals' properties.

d. A property manager overseeing all of his principals' properties.

The professional competency of any applicant for a real estate license shall be judged solely on the basis of: a. A recommendation from the Governor. b. An oral exam administered by the Commission. c. A written exam administered by the local Board of Realtors. d. A written exam administered through the Real Estate Commission.

d. A written exam administered through the Real Estate Commission.

An example of Common things would be: a. House b. Land c. Minerals d. Air

d. Air

A bank demands full payment on the loan because the house was sold. This was because of the: a. Prepayment clause b. Escalation clause c. Right to sell d. Alienation clause

d. Alienation clause

A real estate broker: a. Has a fiduciary relationship to the owner of the property which he lists b. Is appointed by the owner to act for and in his stead c. Can be held accountable for his actions d. All of the above

d. All of the above

A real estate listing agreement may be terminated by: a. Agreement of the parties b. Insanity of either party c. Death of one of the parties d. All of the above

d. All of the above

An agent owes his principal the duty of: a. Loyalty to the principal's interest b. Obedience to the principal's legal instructions c. Accountability d. All of the above

d. All of the above

In an exclusive right to sell listing, the listing broker is owed a commission if the property is sold by: a. The listing office b. The owner c. The co-operating broker d. All of the above

d. All of the above

In order to be a principal in an agency contract: a. The principal must have reached majority b. The principal must possess the authority to be conveyed upon the agent c. The principal must be mentally competent d. All of the above

d. All of the above

The employment contract between an agent and a principal creates: a. An agency b. A fiduciary relationship c. A relationship of loyalty and trust d. All of the above

d. All of the above

Under which listing can an owner sell his property and NOT have to pay a commission? a. Open listing b. Exclusive agency listing c. General listing d. All of the above

d. All of the above

A property with a clear title WOULD most likely be: a. Merchantable b. Marketable c. Saleable d. All of the above are correct terms.

d. All of the above are correct terms.

The moment when a seller transfers ownership or interest in a property to a grantee MAY be called: a. Title closing b. Settlement c. Escrow closing d. All of the above are correct.

d. All of the above are correct.

The acceptance of a real estate offer must be: a. In writing b. Received by time specified in contract. c. Communicated back to offeror d. All of the above must occur.

d. All of the above must occur.

A condominium development MAY take the form of: a. high-rise units b. office/warehouse c. townhouses d. All of the above.

d. All of the above.

A general warranty deed: a. Is the best possible deed for a grantee to receive. b. Includes all covenants of title. c. Warrants for acts of all previous owners. d. All of the above.

d. All of the above.

A mortgagee's policy of title insurance: a. Protects only the interest of the lender. b. Diminishes in coverage as the loan is paid down. c. Could pay off loan if title problem occurs. d. All of the above.

d. All of the above.

An Authentic Act is: a. Signed by each party. b. Two witnesses c. Notarized d. All of the above.

d. All of the above.

An abstract of title shows: a. Devises b. Foreclosures c. Liens d. All of the above.

d. All of the above.

An owner of land MAY stop a claim of title by adverse possession by: a. Granting the occupant permission to occupy the land. b. Having the occupant evicted from the land. c. Leasing the land to the occupant. d. All of the above.

d. All of the above.

Cooperators MAY find themselves: a. liable for other tenants' share of expenses b. prohibited from sub-leasing their units without approval of the tenants' association c. having increasing maintenance fees d. All of the above.

d. All of the above.

Elevators, hallways, tennis courts, etc. in a condominium which are used by all homeowners are: a. common elements b. jointly owned by all homeowners c. owned as tenants in common d. All of the above.

d. All of the above.

In addition to transfer by deed, real property MAY also be conveyed by: a. Inheritance b. Condemnation c. Adverse possession d. All of the above.

d. All of the above.

In addition to transfer by deed, real property MAY also be conveyed by: Select one: a. Inheritance b. Condemnation c. Adverse possession d. All of the above.

d. All of the above.

In order to acquire title by adverse possession, the claimant MUST: a. Make an actual claim of ownership. b. Prove that he/she has met all requirements of the law. c. Have had continuous possession. d. All of the above.

d. All of the above.

In the city of Crestveiw, the revenue needed from real property taxes is $4,000,000. The assessed value of all real estate in the city is $12,000,000. The tax rate WOULD be approximately: a. 33 Mills b. $3.30 per $100 c. $33.00 per $1000 d. All of the above.

d. All of the above.

To acquire title by adverse possession, the claimant MUST prove: a. actual possession b. notorious possession c. open possession d. All of the above.

d. All of the above.

An expressed contract can be: a. Oral b. Written c. Bilateral d. An expressed contracts can be all of those mentioned above.

d. An expressed contracts can be all of those mentioned above.

Which of the following is NOT a completed contract? a. A lease for under one year. b. A mortgage c. An option d. An offer

d. An offer

An offeree is permitted to: a. Refuse to negotiate. b. Accept the offer exactly as offered. c. Change the offer and send it back (counteroffer). d. An offeree is permitted to do all of the above.

d. An offeree is permitted to do all of the above.

Economic obsolescence DOES NOT result from: a. Adverse zoning changes. b. A large industry in the city closing its doors. c. A waste dump next to a subdivision. d. An outdated kitchen.

d. An outdated kitchen.

A condominium unit owner owns which of the following? a. A lease on his unit. b. Stock in the condominium corporation. c. The land under his unit. d. An undivided interest in all common areas.

d. An undivided interest in all common areas.

Which of the following are required disclosures for Truth-In-Lending? a. Interest Rate b. Sales Price c. Amount owed by the seller d. Annual Percentage Rate.

d. Annual Percentage Rate.

Real Estate Commissioners in Louisiana are: a. Elected from each Congressional district. b. Appointed by the Secretary of State. c. Elected from each Parish on a rotating basis. d. Appointed by the Governor.

d. Appointed by the Governor.

A mortgage broker: a. is a lender b. buys mortgages in the secondary market c. buys mortgages and resells them at a profit d. Arranges loans between borrowers and lenders.

d. Arranges loans between borrowers and lenders.

A person given the right to sign or execute a contract on behalf of another is: a. Administrator b. Executor c. Escrow agent d. Attorney-in-Fact

d. Attorney-in-Fact

A real estate salesperson discharged by his/her sponsoring broker MUST: a. Turn in his/her license to the Commission. b. Send in his/her license with an explanation of why he/she was terminated. c. Carry his/her license to a new sponsoring broker. d. Be notified by the broker of the termination.

d. Be notified by the broker of the termination.

The lender in a trust deed arrangement is the: a. Mortgagee. b. Trustee. c. Trustor. d. Beneficiary.

d. Beneficiary.

Louisiana has the following Meridians: a. Louisiana Meridian b. St. Helena Meridian c. Acadia Meridian d. Both A & B above.

d. Both A & B above.

Which of the following would be a Separate Immovable? a. Building b. Standing Timber c. Land d. Both A & B above.

d. Both A & B above.

In order to collect a fee from both parties a broker that represents both buyer and seller in a transaction MUST notify a. the seller only b. the buyer only c. The Real Estate Commission in writing 10 days prior to closing of sale. d. Both buyer and seller that a commission will be collected from both parties.

d. Both buyer and seller that a commission will be collected from both parties.

Payment for Eminent Domain is based on: a. Sales price only b. Amount of owner's loss only c. Neither sales price or amount of owner's loss. d. Both sales price and amount of owner's loss.

d. Both sales price and amount of owner's loss.

All of the following are established by the private sector EXCEPT: a. Building styles b. Title restrictive covenants c. Subdivision plats d. Building codes

d. Building codes

An agent who is employed by and represents only the purchaser in a transaction is: a. Listing agent b. Selling agent c. Cooperating agent d. Buyer's agent

d. Buyer's agent

FNMA: a. Originates loans too large for commercial lenders to handle. b. Regulates Commercial Banks and Savings & Loan Associations. c. Buys and sells low income loans. d. Buys and sells FHA, VA and Conventional loans.

d. Buys and sells FHA, VA and Conventional loans.

The instrument used to pledge personal property as security for a loan is a: a. Mortgagor. b. Collateral Agreement. c. Promissory Note. d. Chattel Mortgage.

d. Chattel Mortgage.

The idea that a property's value is safer when surrounded by similar properties is the principle of: a. Substitution b. Progression c. Regression d. Conformity

d. Conformity

Of the following which is an essential element of a real estate contract? a. Acknowledgment b. Recordation c. Witnessing d. Consideration

d. Consideration

When the landlord fails to live up to his end of the lease agreement, the tenant would have the right to break the lease through: a. Sub-lease b. Assignment c. Actual eviction d. Constructive eviction

d. Constructive eviction

The deed covenant that states there are no liens that buyer has NOT been told about is: a. Covenant of seisin b. Covenant of further assurance c. Covenant of quiet enjoyment d. Covenant against encumbrances

d. Covenant against encumbrances

On June 6th a property was sold with annual taxes of $775 and a water bill of $86 for the current calendar year. Both have been paid in full on January 1st. If these amounts are prorated which of the following is TRUE? a. Credit seller $373.44 b. Debit seller $487.56 c. Debit buyer $373.44 d. Credit seller $487.56

d. Credit seller $487.56

The definition of "handicap" includes all of the following EXCEPT: a. Former drug addicts b. Alcoholics c. Persons who test positive for HIV infection. d. Current illegal drug users.

d. Current illegal drug users.

In a foreclosure, the mortgagee seeks additional compensation from the mortgagor if the sale of the property does not completely satisfy the debt through the sue of a: a. Deferred payment arrangement. b. Write of execution. c. Satisfaction of judgment. d. Deficiency judgment.

d. Deficiency judgment.

The first step in the appraisal process is: a. Collection of the data. b. Analysis of the data. c. Inspection of property d. Definition of the problem.

d. Definition of the problem.

A licensee named by a broker as the agent of a client is a a. Client b. Buyer c. Seller d. Designated Agent

d. Designated Agent

Title insurance would NOT protect against: a. An oversight by the abstractor (title examiner). b. Forged deeds c. Hidden defects in the title. d. Destruction by a tornado.

d. Destruction by a tornado.

A property is listed in "as is" condition. On inspecting the property the salesperson finds a major defect in the attic floor. When showing the property the salesperson SHOULD: a. Disclose the defect only if asked about the attic floor by the prospective buyer. b. Make no disclosure of the defect but advise prospective buyer to inspect the property. c. Make no disclosure of the defect since the property is listed in "as is" condition. d. Disclose the defect to all prospective buyers.

d. Disclose the defect to all prospective buyers.

Which takes effect at death? a. Gratuitous b. Onerous c. Remunerative d. Donation Mortis Causa

d. Donation Mortis Causa

When one broker is legally representing both parties it is a: a. Seller's agency b. Single agency c. Multiple agency d. Dual agency

d. Dual agency

A Broker or Salesperson advertising on a site on the internet MUST include all of the following EXCEPT: a. Name as registered with the Commission. b. City & state where the office is located. c. Regulatory jurisdiction where the license is held. d. Email address of the broker.

d. Email address of the broker.

On which type of listing can a broker receive a commission no matter who sells it? a. Net listing b. Exclusive agency listing c. Open listing d. Exclusive right to sell listing

d. Exclusive right to sell listing

The primary function of Fannie Mae is to: a. Provide a source of financial backing for FHA and VA loans. b. Facilitate the origination of construction loans. c. Insure that savings and loan associations retain a certain percentage of their demand deposits as financial reserves. d. Facilitate the flow of money and credit to primary lenders.

d. Facilitate the flow of money and credit to primary lenders.

Which of the following groups is a buyer in the secondary market? a. Federal Reserve System b. Veterans Administration c. Federal Housing Administration d. Fannie Mae

d. Fannie Mae

The concept of duress is based on: a. Deception b. Abuse of power c. Intentional misrepresentation d. Fear

d. Fear

Which of the following would NOT come under the jurisdiction of the LREC? a. Broker b. Salesman c. Associate Broker d. For Sale by Owner.

d. For Sale by Owner.

A large warehouse office that CANNOT be air-conditioned would best define: a. Economic obsolescence b. Locational obsolescence c. Physical depreciation d. Functional obsolescence

d. Functional obsolescence

All of the following pertain to a fixture EXCEPT: a. Agreement of Parties b. Method of Attachment c. Intention of the Parties d. Furniture

d. Furniture

A lease that allows a pass-through of some operating expenses to tenant in the form of higher rents would be a(an): a. Step-up lease b. Ground lease c. Percentage lease d. Graduated lease

d. Graduated lease

A lease in which the tenant pays a fixed rent and landlord is responsible for operating expenses is a(an): a. Net lease b. Maintenance lease c. Fixed lease d. Gross lease

d. Gross lease

A lessee is frequently required to build his own building under a: a. Net lease b. Percentage lease c. Improvement lease d. Ground lease

d. Ground lease

The 1988 Fair Housing Amendments Act added which of the following two classes? a. Marital status and handicap b. Marital status and familial status. c. Age and handicap. d. Handicap and familial status.

d. Handicap and familial status.

A man lives in a four-plex that he owns. He is exempt from Fair Housing in that it allows him to rent to all of the following EXCEPT: a. Rent only to singles. b. Rent only to Methodists. c. Rent only to Canadians. d. He can rent to anyone he chooses.

d. He can rent to anyone he chooses.

On all sales; all written offers SHOULD be presented: a. Within five days. b. Within 24 hours. c. Within 72 hours. d. Immediately.

d. Immediately.

A term or straight loan provides for: a. Principal and interest payments monthly. b. Amortized payments. c. P, I, T and I payments. d. Interest payments only until maturity of loan.

d. Interest payments only until maturity of loan.

The Commission MAY, upon its own motion: a. Fine licensees for violations. b. Imprison licensees for up to one month for violations. c. Revoke a license without a hearing. d. Investigate licensees.

d. Investigate licensees.

Mr. West is granted permission to fish on Mr. North's land. ALL of the following are TRUE EXCEPT: a. It can be revoked by Mr. North at any time. b. It conveys a personal right. c. It is called a license. d. It can be assigned by Mr. West.

d. It can be assigned by Mr. West.

An oral contract for the sale of real estate would NOT be enforceable because: a. It would be too hard to decide who is telling the truth b. It would be impossible to prove c. Federal law does not allow it d. It does not conform to the Statute of Frauds

d. It does not conform to the Statute of Frauds

Which of the following is TRUE of a second mortgage? a. It has priority over a first mortgage. b. It cannot be used as a security. c. It is not negotiable. d. It is usually issued at a higher rate of interest than a first mortgage.

d. It is usually issued at a higher rate of interest than a first mortgage.

A holographic will WOULD be valid only if: a. It was witnessed by two relatives. b. It was notarized. c. It was recorded. d. It was in the testator's own handwriting.

d. It was in the testator's own handwriting.

A broker would be guilty of commingling funds if he/she: a. Kept client funds in the Rental Trust account. b. Kept client funds in the sales escrow account. c. Kept personal funds in the company general operating account. d. Kept client funds in the company general operating account.

d. Kept client funds in the company general operating account.

Primary lender is: a. FNMA b. Ginnie Mae c. Freddie Mac d. Local Lender

d. Local Lender

All of the following are methods of describing land EXCEPT: a. U.S. Government Survey b. Metes and bounds c. Lot and Block d. Longitudes and Latitudes

d. Longitudes and Latitudes

In a U.S. Government survey the following are used as a legal description EXCEPT: a. Townships b. Meridians c. Sections d. Lot and Block Numbers

d. Lot and Block Numbers

Enforcing laws concerning real estate and licensees is the job of the: a. Louisiana Board of Realtors b. Louisiana State Legislature c. Louisiana State Police d. Louisiana Real Estate Commission

d. Louisiana Real Estate Commission

Most of the Real Estate Commission members shall be appointed from: a. Public Service Commission Districts b. Congressional Districts Only c. State Senatorial Districts d. Louisiana Supreme Court Districts

d. Louisiana Supreme Court Districts

Which of the following would be considered "good" consideration? a. $120,000 b. Land exchanged for land. c. 1,000 shares of Intel stock. d. Love for a child.

d. Love for a child.

Which of the following does NOT apply to a characteristic of land? a. Air Rights b. Surface Rights c. Sub-Surface Rights d. Mineral Rights

d. Mineral Rights

A salesperson has a purchase agreement signed by a minor. The following person MAY terminate the listing without liability. a. Selling broker b. Selling salesperson c. Listing salesperson d. Minor

d. Minor

All of the following are physical characteristics of land EXCEPT: a. Permanent and indestructable b. Immobile c. Unique d. Mobile

d. Mobile

The relationship of the value of property to its monthly rental income determines the: a. Capitalization rate b. Recovery rate c. Recapture rate d. Monthly gross rental multiplier.

d. Monthly gross rental multiplier.

The lender of mortgage money is the: a. Mortgagor b. Vendee c. Trustee d. Mortgagee

d. Mortgagee

Which is NOT a characteristic of land? a. Permanent and indestructible b. Immobile c. Unique d. Natural

d. Natural

The redemption period for a Foreclosure in Louisiana is: a. One year b. Two years c. Five years d. Never

d. Never

Limited common elements in a condominium development are owned by: a. all tenants b. the developer c. owner's association d. None of the above.

d. None of the above.

Jim Jones sells his furnished home to Mary Smith, who assumes his existing loan of $29,000. All of the following documents must be prepared for the closing EXCEPT: a. Insurance b. Settlement statements c. Assumption of sale d. Note and mortgage

d. Note and mortgage

Salespersons are required to keep records for: a. 1 year b. 3 years c. 5 years d. Only brokers are required to keep records

d. Only brokers are required to keep records

Physical deterioration of a property is associated with which of the following? a. Eccentric design b. Changing function c. Obsolescence d. Ordinary wear and tear.

d. Ordinary wear and tear.

The Federal National Mortgage Association can do ALL but which one of the following: a. Purchase conventional loans b. Sell mortgages to institutions. c. Buy FHA-VA loans d. Originate federal loans.

d. Originate federal loans.

All's TRUE of fee simple ownership except: a. Owner has maximum control. b. It is best title owner can have. c. It is inheritable. d. Owner must live in the property for life.

d. Owner must live in the property for life.

With the Principle of Change, you have ALL the following EXCEPT: a. Growth b. Stability c. Decline d. Progression

d. Progression

All of the following are essentials of a valid contract EXCEPT: a. Legal object b. Mutual agreement c. Competent parties d. Properly written

d. Properly written

The Commission has the power to do all of the following EXCEPT: a. Issue subpoenas. b. Take testimony by deposition. c. Suspend or revoke a license. d. Prosecute licensees for real estate fraud.

d. Prosecute licensees for real estate fraud.

To convey an uncertain interest the grantor SHOULD use which of the following forms of deeds? a. Special warranty b. General warranty c. Correction d. Quitclaim

d. Quitclaim

Condominiums, leaseholds, and other interest in land with the exception of oil, gas, or minerals is called: a. Insurance b. Commingling c. Property Manager d. Real Estate

d. Real Estate

Which of the following terminates an offer to purchase? a. Consideration b. Assignment c. Novation d. Rejection

d. Rejection

The sand and silt deposited through the action of water: a. Alluvion b. Accretion c. Avulsion d. Reliction

d. Reliction

The buyer's withdrawing an offer to purchase before the seller accepts it is: a. Rejection b. Reversion c. Waiver d. Revocation

d. Revocation

Under the Truth-In-Lending, the lender of a first mortgage loan must disclose in writing to the buyer of a home ALL of the following EXCEPT: a. Annual percentage rate b. Total amount financed. c. Finance charge d. Right to rescind.

d. Right to rescind.

Sam's sponsoring broker dies. Which of the following statements is true? a. Sam cannot close any transactions currently under contract. b. Sam can continue to do business until the end of the current calendar year. c. Sam's license is automatically suspended. d. Sam can close all pending business but cannot solicit or start any new business.

d. Sam can close all pending business but cannot solicit or start any new business.

An example of a Public thing would be: a. House b. Land c. Mineral d. Seashore

d. Seashore

Each member of the Real Estate Commission shall serve _____ year terms. a. Four b. Five c. Two d. Six

d. Six

A real estate broker who sponsors associate brokers or real estate salespersons. a. Client's Broker b. Customer's Broker c. Licensee d. Sponsoring Broker

d. Sponsoring Broker

When a person is directed away from a particular area of town by a licensee for discriminatory reasons it would be known as: a. Blockbusting b. Redlining c. Intimidation d. Steering

d. Steering

A licensee can have his/her license suspended or revoked for all EXCEPT: a. Representing to a lender a higher price than actually agreed upon on a sale. b. Failure to give the buyer an agency disclosure form. c. Failure to give the seller an agency disclosure form. d. Submitting a bona-fide offer to a seller while an offer is pending.

d. Submitting a bona-fide offer to a seller while an offer is pending.

The Board of Realtors establishes a Research and Education Fund for: a. Scholarships for licensee's children b. Financial backing for real estate research projects c. Continuing education classes d. The Board of Realtors does not establish the Research and Education Fund.

d. The Board of Realtors does not establish the Research and Education Fund.

Unless there is a written agreement to the contrary, any licensee involved in a transaction is: a. The agent of the buyer. b. The sub-agent of the buyer. c. The agent or sub-agent of the seller. d. The agent of the person they are working with.

d. The agent of the person they are working with.

If a buyer in a real estate transaction makes a deposit and the seller agrees to the contract and then backs out; the buyer has the right of: a. Specific performance b. Compensatory damages c. Rescission d. The buyer has the right to any of the above.

d. The buyer has the right to any of the above.

"Time is of the Essence" means: a. The date specified on the contract is unimportant. b. A reasonable time. c. At the convenience of both parties. d. The date specified on the contract is important.

d. The date specified on the contract is important.

If the seller in a purchase agreement should die prior to the closing; which of the following is TRUE: a. The contract is voidable by the seller's heirs. b. The contract is voidable by the buyer. c. The contract is automatically terminated by law. d. The death of the seller does no normally terminate a contract.

d. The death of the seller does no normally terminate a contract.

A Husband and Wife have been married for 4 years. The Wife inherited a 40 acre farm, the Husband's interest in the property is: a. 1/4 b. 1/2 c. Undivided Interest d. The husband owns no interest in the farm.

d. The husband owns no interest in the farm.

All of the following are true regarding subdivision plats EXCEPT: a. Should be recorded. b. Become legal descriptions for that portion of the country. c. Are also called lot and block descriptions. d. This is referrers to as the Metes and Bounds method.

d. This is referrers to as the Metes and Bounds method.

A licensed Real Estate salesperson is allowed to sell all EXCEPT one of the following? a. Houses b. Commercial Warehouse c. Land d. Time Shares

d. Time Shares

The lender who decides that a loan should be approved is called the: a. Vice-president b. Mortgagor c. Secondary market manager d. Underwriter

d. Underwriter

When consideration in a contract consists of a promise in exchange for an act; the contract is: a. Void b. Voidable c. Bilateral d. Unilateral

d. Unilateral

Which of the following may NOT sell real estate without a license? a. Receiver in Bankruptcy b. Trustee c. Sheriff d. Unlicensed assistant to a licensed real estate agent.

d. Unlicensed assistant to a licensed real estate agent.

The right to use and enjoy the benefits of property is called: a. Usus b. Fructus c. Abusus d. Usufruct

d. Usufruct

A purchaser secures a loan to buy a home and needs no down payment. He probably bought with which financing arrangement? a. Conventional guaranteed loan b. Conventional non-guaranteed loan c. FHA guaranteed loan d. VA guaranteed loan

d. VA guaranteed loan

A loan which allows the interest rate to go up or down is referred to as having a(an): a. Escalated rate. b. Graduated rate. c. All inclusive rate. d. Variable rate.

d. Variable rate.

VA loans can be originated for: a. Commercial properties b. All owner occupied dwellings c. All financially qualified individuals d. Veterans and their qualified dependents

d. Veterans and their qualified dependents

A contract which has no legal force or effect is: a. Unenforceable b. Voidable c. Valid d. Void

d. Void

After a Real Estate License has been sent to the Commission for transfer, the licensee MAY: a. Continue selling for former broker for 30 more days. b. Immediately begin selling for new sponsoring broker. c. Wait 30 days then begin selling again. d. Wait for the new license to be issued under the new sponsoring broker.

d. Wait for the new license to be issued under the new sponsoring broker.

Money deposited into a Sales Escrow shall NOT be removed upon: a. Mutual consent of all parties. b. The Commission's order c. Court order d. Written notification from the seller.

d. Written notification from the seller.

The position of the broker as an agent to the principal is described accurately as which relationship? a. confidential b. trustee c. trustor d. fiduciary

d. fiduciary

The statutory right of redemption period under a foreclosure transpires a. after the default judgment is rendered b. during the default period c. during the time between default and foreclosure sale d. after the foreclosure sale

d. after the foreclosure sale

An option becomes a contract of sale a. when the option is given b. after a consideration is paid c. when the option is signed by all parties d. after the option is exercised

d. after the option is exercised

A listing broker MAY earn a commission without showing "procuring cause" under a. a net listing b. an exclusive listing c. an open listing d. an exclusive right to sell listing

d. an exclusive right to sell listing

The passing of title to real property to the state on the death of the owner is known as a. condemnation b. reconveyance c. devise d. escheat

d. escheat

Mr. and Mrs. Smith executed a listing agreement with a real estate company for a six month period and reserved the right to sell the property themselves without paying a commission to the company. This listing is called a(an): a. exclusive right to sell b. multiple listing c. broker protected listing d. exclusive agency

d. exclusive agency

The recording of a warranty deed: a. passes the title b. insures the title c. guarantees the title d. gives constructive notice of ownership

d. gives constructive notice of ownership

Upon signing any real estate document a copy should be provided: a. within 8 hours b. within 12 hours c. within 24 hours d. immediately after signing.

d. immediately after signing.

A husband and wife owned property together. When he died, she gained ownership of the property automatically. The form of ownership they had was: a. tenancy in common b. community property c. tenancy at will d. joint tenancy

d. joint tenancy

A non-freehold possessory interest in real property is called a. fee simple estate b. life estate c. conditional fee estate d. leasehold estate

d. leasehold estate

The primary difference between a straight-term loan and an amortized loan is the a. number of discount points charged b. interest rate charged c. pre-payment clause d. method of repaying the principal

d. method of repaying the principal

Under a net lease, the tenant may be responsible for ALL of the following EXCEPT: a. real estate taxes b. property insurance c. utilities d. mortgage payments

d. mortgage payments

A purchase agreement, to be legally enforceable, MUST be a. witnessed by a notary public b. accompanied by earnest money c. acknowledged by all parties to the contract d. negotiated between competent parties

d. negotiated between competent parties

From the standpoint of the grantor in a deed conveying real estate, which of the following types of deeds create the least liability? a. special warranty deed b. general warranty deed c. bargain and sale deed d. quitclaim deed

d. quitclaim deed

The premium for a mortgagee's title insurance policy is paid: a. monthly, with mortgage payments b. quarterly, with homeowner's insurance payments c. annually, with property tax d. once, on issuance of the policy

d. once, on issuance of the policy

Which one of the following is NOT necessary for a valid transfer of title to real estate? a. signing by grantor b. acknowledgement c. delivery d. recording

d. recording

The transfer of property that entails the greatest liability to the vendor is a a. property deed b. sale without warranty c. quitclaim deed d. sale with warranty

d. sale with warranty

A broker informs his salespeople of termite damage to a property that is listed with his firm. A salesperson from another firm sells the property but fails to tell the buyer about the damage. The buyer does NOT learn about the damage until after closing. All of the following are liable for failure to disclose this information EXCEPT the: a. selling salesperson b. listing broker c. seller d. title company

d. title company

A broker's promise of $250 bonus to the salesperson who obtains 5 listings in a week is an example of a(an) a. implied contract b. executed contract c. void contract d. unilateral contract

d. unilateral contract