National Final

An agent tells a prospective buyer that a new highway off ramp is to be built next to the land within the next 6 months. The buyer purchases the land and the ramp is never built. This is an example of: Select one: a. Puffing b. An honest error c. Salesmanship d. A material misrepresentation

A material misrepresentation

A carpenter did work on a property but was NOT paid. What would his course of action be? Select one: a. A mechanic's lien b. A general lien c. A materialmen's lien d. A carpenter's lien

A mechanic's lien

What would be a likely buffer zone? Select one: a. A park between a high rise apartment building and high rise offices. b. A chemical plant that separates a large piece of land and a residential neighborhood. c. Two subdivisions separated by a small canal. d. A row of shrubs planted to keep an area quiet.

A park between a high rise apartment building and high rise offices.

In a contract for deed title transfers: Select one: a. After half of payments are made. b. When recorded. c. When buyer takes possession of property. d. After last payment is made to seller.

After last payment is made to seller.

The four elements of value are all EXCEPT: Select one: a. Age b. Demand c. Utility d. Scarcity

Age

What is an example of puffing? Select one: a. "This property is expected to increase by 25% over the next 10 years." b. "This house has the best view of the lake." c. "The children in this neighborhood have the highest SAT scores in the city." d. "There is no crime in this neighborhood."

"This house has the best view of the lake."

A property was listed at $125,000 and sold for $120,000 with the buyers getting an 80% loan. If two points were charged, how much did the buyers have to pay? Select one: a. $1,860 b. $2,400 c. $2,500 d. $1,920

$1,920

There is a developer that has 100 acres. 10% is for recreation and 2% is for roads and drainage. He wants to sell one acre lots for $32,000. What is his gross income? Select one: a. $384,000 b. $2,816,000 c. $3,136,000 d. $3,200,000

$2,816,000

A home is valued at $103,000. Property in the city is assessed at 80% of its value and the local tax rate is $3.60 per $100. What is the amount of the owner's monthly taxes? Select one: a. $824 b. $2,966.40 c. $247.20 d. None of the above.

$247.20

Two people are looking to purchase a home with a mortgage payment of $900 per month. The lender requires the mortgage payment be no more than 25% or their gross income. How much do they need to make in order to afford the home? Select one: a. $2,250 b. $3,600 c. $5,000 d. $7,200

$3,600

A buyer wanted to purchase a property at a price indicated by the income approach.The gross income on the property was $6,000/month. The net income was $4,000/month. The loan rate was 5% and the capitalization rate was 7%. What was the price the buyer was willing to pay? Select one: a. $57,142 b. $685,714 c. $960,000 d. $1,028,571

$685,714

An appraiser knows a properties square footage and the price per square foot. What appraisal method does he use? Select one: a. Cost b. Income c. Market Comparison d. Data

Cost

Which of the following is not a requirement for determining a fixture? Select one: a. Method of attachment b. Intention of parties c. Cost of Replacement d. Adaptation of object

Cost of Replacement

Assumption of old loan balance shows on settlement statements as: Select one: a. Credit to seller b. Debit to seller c. Credit to buyer d. Debit to buyer

Credit to buyer

A salesperson is talking with the seller of a house he has listed at the open house. The agent's sister shows up and wants to make an offer. The agent should: Select one: a. Turn over the sale to another agent. b. Regard her as a 3rd party and write up the offer. c. Disclose the relationship. d. Refuse to write the offer.

Disclose the relationship.

Which of the following would be the main priority of a property manager of an industrial comples? Select one: a. Environmental concerns b. Solicitors c. Selling the property d. None of the above.

Environmental concerns

A developer signs an agreement with a broker to list lots. The developer does not want to pay the broker a commission if the developer sells a lot himself. They type of arrangement they have is: Select one: a. Net Agency b. Exclusive agency c. Open agency d. General agency

Exclusive agency

An agency relationship representing the seller must be entered into through: Select one: a. Implied agreement b. Oral agreement c. Expressed agreement

Expressed agreement

In a partially amortized loan with a balloon payment, when the balloon becomes due, what is the usual course of action? Select one: a. Extend the loan for another period (roll over). b. Requires that borrowers borrow more. c. Foreclose on the property. d. None of the above.

Extend the loan for another period (roll over).

A large office building that CANNOT be air conditioned best defines: Select one: a. Locational obsolescence b. Economnic obsolescence c. Functional obsolescence d. Physical depreciation

Functional obsolescence

A broker goes into a listing appointment, loves the house and becomes interested in making an offer. She should: Select one: a. Immediately tell the seller she is interested in buying b. List the property below market value c. She cannot offer to buy it d. List the house but make an offer at the same time

Immediately tell the seller she is interested in buying

Which of the following is not a characteristic of radon gas? Select one: a. It is a cancer causing agent. b. It is a result of decaying of natural radioactive elements. c. It is odorless. d. It is used in building materials.

It is used in building materials.

Two unrelated people buy property together. They want to make sure that if one dies the other gets the rest of the property. How should they acquire the title? Select one: a. Tenancy in common b. Joint Tenancy c. Tenancy in the entities d. Quiet Title Action

Joint Tenancy

Joe owns a grocery store and has signed a 6 year lease with a tenant. Two years into the lease Joe sells the grocery store. What happens to the lease? Select one: a. Terminated because it was sold. b. Terminated. c. Lease stays with original owner. d. Lease goes with the new owner

Lease goes with the new owner.

An agent shows a house that has 9x9 black and white tiles built in 1964. What is the agent obligation? Select one: a. Notify the party it may have asbestos b. The agent has no obligation c. The agent only has to notify the lender d. Let them know the house was built prior to 1978 and they may want to get it tested for led based paint

Let them know the house was built prior to 1978 and they may want to get it tested for led based paint

A key disadvantage to being overly leveraged is: Select one: a. Negative cash flow. b. Liquidity c. Positive cash flow. d. Liability

Liquidity

What happens to a salesperson's listings if he transfers to a new broker? Select one: a. Listing stays with old broker. b. Listing goes to new broker. c. Listing agreement is void. d. Listing agreement is voidable.

Listing stays with old broker

An advantage of Private Mortgage Insurance is: Select one: a. Lower Down Payment b. Lower note for the borrower c. Lower interest rate d. Lower principal balance

Lower Down Payment

The term "oak tree" is used in the property description, it is most likely: Select one: a. Metes and Bounds b. Lot and Block c. Recorded Plat d. Government Survey System

Metes and Bounds

Broker shows a house and notices a leak, what does he do? Select one: a. Must disclose because it is a fact. b. Must disclose because of fiduciary relationship. c. Do not show the home anymore. d. The broker does not have to disclose the problem.

Must disclose because it is a fact

An elderly couple applies for a loan and believes it is a fixed interest rate. the mortgage banker issues a loan with an adjustable rate. This is: Select one: a. Relining b. Predatory Lending c. Blockbusting d. Steering

Predatory Lending

When brokers agree to charge the same commission it is called: Select one: a. Price fixing b. Good business c. Fair trade practice d. Unfair claims and settlement practice

Price fixing

A gas that is colorless, odorless and causes certain types of cancer is: Select one: a. Formaldehyde b. Carbon Monoxide c. Radon d. Mold

Radon

Buyers are required to get homeowners insurance. They ask the agent for help. What should the agent do? Select one: a. Buy the insurance policy b. Recommend several policies the buyer can choose from c. Recommend several insurance agents who will recommend coverage d. Recommend one insurance agent who provides several coverages

Recommend several insurance agents who will recommend coverage

Counter-offer is a _____. Select one: a. Rejection b. Amendment c. Acceptance d. Enhancement

Rejection

A broker is showing buyers a home. The sellers say the neighbors added an addition on their home and that it may have extended on to the sellers property. What should the broker do? Select one: a. Go measure the property to verify b. Request the buyer to get a survey c. Go ask the neighbors and verify d. Write an exception in the contract

Request the buyer to get a survey

What best describes a buffer zone? Select one: a. Office park in between 2 residential subdivisions. b. A warehouse in between a single family subdivision and a park. c. Residential subdivision, garden home, commercial property. d. None of the above.

Residential subdivision, garden home, commercial property.

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

Retired people on fixed incomes.

An owner lists his house with a brokerage through a salesperson. Which would NOT terminate the listing? Select one: a. Salesperson dies. b. Broker dies. c. Seller dies. Incorrect. d. House burns to the ground.

Salesperson dies.

A person discovers that the amount they owe on their house is more than the value of their property. What is their best solution? Select one: a. Forclosure b. Short Sale c. Quit Claim d. Bond for Deed

Short Sale

A disadvantage to a real estate as an investment is: Select one: a. Slow liquidity b. Appreciation c. Income d. Tax deductions

Slow liquidity

What legal concept dictates that contracts should be in writing? Select one: a. Appropriation b. Statute of frauds c. Escheat d. Statute of writing

Statute of frauds

Easements are discovered through: Select one: a. Actual notice b. Constructive notice c. Survey d. Appraisal

Survey

If a buyer asks an agent what is the best way to acquire title to the property: Select one: a. Ask the buyer if they are married or single b. Tell the buyer it is Tenancy in Common c. Tell the buyer it is Joint Tanancy d. Tell the buyer to consult an attorney

Tell the buyer to consult an attorney

The only way a person can will their property after they die is: a. Joint Tenancy b. Tenancy by the entireties c. Tenancy in common d. Forced heirship

Tenancy in common

If a licensee represents the lessee, they represent the: Select one: a. Landlord b. Tenant c. Owner d. Broker

Tenant

A notarized deed insures that: Select one: a. All parties are competent. b. Delivery was made. c. The deed can be recorded. d. The deed is legal.

The deed can be recorded

An a/c is put in a house. The increased value in the home is determined by: Select one: a. Price of a/c but not cost of installation. b. Price and installation of the a/c c. Cost of installation but not the price of the a/c. d. The difference between houses with a/c and those without a/c.

The difference between houses with a/c and those without a/c.

A landlord executes a three year lease and dies after the first year. The property passes to his heirs who want the tenant kicked out so they can occupy the unit. Which is true? Select one: a. The heirs cannot kick out because lease unaffected by lessor's death. b. The heirs now own the property and can do what they want. c. The tenants have 30 days to move out. d. The heirs must wait one full year before taking action.

The heirs cannot kick out because lease unaffected by lessor's death.

A contract that cannot be completed because of "impossibility of performance" would best be illustrated by: Select one: a. The object of contract was destroyed by fire. b. Misrepresentation took place in the contract negotiations. c. One of the principals was drunk when they signed. d. One of the principals was a minor.

The object of contract was destroyed by fire.

What happens to an offer if either party dies or becomes incapacitated before acceptance? Select one: a. If irrevocable, the offer is valid until the irrevocable period runs out. b. The offer is open to the deceased party's heirs. c. The offer is binding on the deceased party's heirs. d. The offer is terminated.

The offer is terminated

A salesperson has a listing agreement with a seller. The house has been shown by several salespersons including the salespersons broker. Which of the following is TRUE? Select one: a. The salesperson represents seller and the broker represents buyer. b. The broker and salesperson represent the seller. c. The broker and salesperson can not be involved in the same transaction. d. The broker represents both the buyer and seller.

The salesperson represents seller and the broker represents buyer.

A Broker introduces an unconventional business model into the market and is very successful. The other brokers decide not to show any of the new broker's listings. which of the following is true? Select one: a. this is a RESPA violation b. This is a violation of the Sherman Anti-Trust Act c. This is a violation of state license law d. No violation has occurred

This is a violation of the Sherman Anti-Trust Act

Radon can be detected in a home by: Select one: a. It's distinct smell. b. Through testing only.* c. Discoloration on walls and floors. d. Cracks in a home's foundation.

Through testing only.*

A method for controlling the problems and conflicts of interest inherent in dual agency is for the broker: Select one: a. To refuse the contract b. To turn the transaction over to another company. c. To designate agents to work with the two clients. d. To do nothing

To designate agents to work with the two clients.

A contract in which neither party can sue the other would be: Select one: a. Unenforceable. b. Implied. c. Voidable. d. Void.

Unenforceable

Charging a higher interest rate than the law allows is called: Select one: a. Usury b. Finance c. Mortgage d. Equity

Usury

A contract written that violates the law would be: Select one: a. Voidable. b. Void. c. Inert. d. Unenforceable.

Void

A minor will reach majority in 30 days. The minor signs a purchase agreement to be closed in 45 days. The contract is: Select one: a. Valid b. Void c. Voidable d. Unenforceable

Voidable

Using a Market Data Appraisal, how many comparables should you get? Select one: a. 1 only b. At least 2 c. 3 to 5 d. 5 or more

3 to 5

A buyer is purchasing a house for $165,000 at 7%. How many years does the loan need to be amortized in order to afford a note less than $1,100 per month? Select one: a. 15 b. 20 c. 25 d. 30

30

How can you put stop on a contract that would NOT harm the buyer? Select one: a. Escape Clause b. Contingency c. Escalator Clause d. Right of First Refusal

Contingency

A "partnership in commendam" is also known as: Select one: a. A general partnership b. A limited partnership c. A specific partnership d. A limited liability company

A limited partnership

A company wishes to build a 20,000 square foot building on a lot that needs to be four times the size of the building. What is the minimum acreage lot they need? Select one: a. 1 b. 2 c. 4 d. 8

2

A seller contracted 3 brokers and asked each to suggest the listing price for his property. Broker A said $78,000, Broker B said $79,000 and Broker C said $91,000. The seller listed with Broker C and the house later sold for $76,000. Broker C is guilty of violating which of his or her agency responsibilities? Select one: a. Loyalty b. Reasonable care c. Disclosure d. Accountability

Accountability

The lender required the entire balance be paid at once because a property was sold. This was because of the: Select one: a. Assumption clause b. Alienation clause c. Pay in full clause d. Defeasance clause

Alienation clause

A real estate agent notices that a person is signing for another on a contract. The agent should: Select one: a. Refuse to accept the contract. b. Call the sheriff. c. Ask if they have authority to sign. d. Initial next to the signature as a witness.

Ask if they have authority to sign.

In order to be valid a deed MUST be: Select one: a. Recorded. b. Notarized and witnessed. c. Signed by grantor and grantee. d. Delivered and accepted.

Delivered and accepted

A buyer who wants a property and has the money to buy it best defines: Select one: a. Transferability b. Scarcity c. Demand d. Utility

Demand

A real estate salesperson MUST receive all commissions from the sale of property: Select one: a. From his or her principal broker b. From the selling agents principal broker c. Directly from the seller d. From his or her associate broker

From his or her principal broker

A borrower gets a 30-year loan where the payments stay the same and include P&I. They have a: Select one: a. Partially amortized loan b. Fully amortized Loan c. Term Loan d. Adjustable rate

Fully amortized Loan

A contract in which title is NOT transferred until all terms have been met is a(an)? Select one: a. Purchase agreement Incorrect. b. Installment land contract c. Lease d. Right of first refusal.

Installment land contract

A contract can be all of the following EXCEPT: Select one: a. Void b. Voidable c. Valid d. Involuntary

Involuntary

When scouting locations for a client who is interested in opening a coffee shop what do you look for? Select one: a. Places with low density b. Places with a lot of traffic c. Places that have great topography d. Places with high disposable income

Places with high disposable income

In a state that requires a property condition for disclosure, it should be filled out by: Select one: a. Seller b. Seller 1st then the agent to verify that it is correct c. Agent Incorrect. d. Broker

Seller

You are the listing agent who do you represent? Select one: a. Broker b. Buyer c. Seller d. Title Company

Seller

A listing agreement belongs to whom? Select one: a. Both broker and salesperson b. The salesperson c. The broker d. None of the above.

The broker