RE 100Ab
Broker and Sales Associate share a commission with a ratio of 4 to 3 respectively. If the sales amounted to $34,000, $42,000, and $54,000 at an 8% commission, how much more did the broker receive than the sales associate? a. $4,457.13 B. $1,485.71 c. $2,845.00 d. $3,485.00
B. $1,485.71
Which of the following sales would NET the brokerage firm making the sale profit of $2,439.97? A. Sales Price ($40,571) Commission Rate (6%) Expenses ($400) B. Sales Price ($34,857) Commission Rate (7%) Expenses ($610) C. Sales Price ($35,533) Commission Rate (7.5%) Expenses ($225) D. Sales Price ($42,950) Commission Rate (8%) Expenses ($916)
C. Sales Price ($35,533) Commission Rate (7.5%) Expenses ($225)
"D" gave "J" an estate based on the life of "F" and named "B" as remained. Upon the death of "J": a. "J's" heirs receive the property b. "F" owns the property c. the estate reverts to "D" d. the estate goes to "B"
a. "J's" heirs receive the property
You have just negotiated a 20 year lease with payments of $350 per month for the first 5 years, with a $50 a month increase every 5 years. What would be your commission at 11% of the gross rents over the term of the lease? a. $11,220 b. $10,220 c. $9,220 d. $12,220
a. $11,220
A seller received $75,850 at closing. if he paid broker's commission at 7% and a mortgage of $34,650 and received a tax credit of $253, what did he sell the property for? a. $118,545.16 b. $110,500.00 c. $110,753.00 D. $119,361.29
a. $118,545.16
An agent who sells exclusively for a residential development company receives an 8% commission on the first $90,000 of sales for the year and 2% for all sales over that amount. If she sold, in one year, houses for $32,000, $46,500, $41,800 and $55,600. Approximately how much more would she have earned had she worked on a straight commission of 6%? a. $1636 b. $1854 c. $2457 d. $1330
a. $1636
A broker received 60% of a $3,420 commission on a cross sales and paid a termite inspection fee of $40.00. How much commission did the broker net? a. $2,012 B. $2,052 c. $3,380 d. $2,028
a. $2,012
A broker received 4% on the first $30,000 of a gross sales price of $70,000, plus 6% on the next $20,000 and 3% on the remainder. What was the broker's total commission on the sale? a. $3000 b. $2400 c. $2457 d. $1800
a. $3000
A broker is to receive 7% on a property he last listed for $46,000. If the property sells for $45,400, how much does the broker earn? a. $3178 b. $3220 c. $3330 d. $3718
a. $3178
a house with 2,200 square feet of living area, located of a 1/4 acre lot is listed with a REALTOR. the owner states that the list price my be equal to $35.00 per square foot of area, plus $15,600 per acre for the lot, and the 7% commission. What price should the REALTOR list the property for? a. $86,989.24 b. $80.900.88 c. $77,000.91 d. $86,899.00
a. $86,989.24
A property managers received 12% of the 1st year's gross rents plus 8% of the net proceeds in the succeeding years. If rentals were $50,000 per year and expenses were $5,000 per year, the property manager's share of the gross income would be at least what percent over a three year leasing period? a. 8% b. 9% c. 12% d. 14%
a. 8%
At a closing, it was discovered that the title to the property was defective. According to general practice, which of the following is true? a. In most cases, the seller would pay for the title examination b. the buyer is obligated to the contract and must take title c. a defective title does not affect the purchase agreement d. the seller must correct the title
a. In most cases, the seller would pay for the title examination
Which of the following would NOT be a responsibility of a listing agent? a. Maintaining the property b. informing the owner of a possible zoning change on the property across the street c. advising the owners of a buyer's financial condition d. showing the property
a. Maintaining the property
A buyer received title to a property. Later, an error was found in the legal description. if the grantor had given the buyer a warranty deed, what type of deed would the grantor give to correct this error? a. Quitclaim b. General Warranty C. Bargain and sale D. Grant
a. Quitclaim
A broker who has been given power-of-attorney to sign offers on behalf of a principal is acting as: a. a special agent b. a universal agent c. a general agent d. a limited general agent
a. a special agent
A grantor declared that he had signed a deed of his own free will. This act is called: a. an Acknowledgement b. an authorization c. Attestation d. Testimonum
a. an Acknowledgement
A life tenant who allows a house to deteriorate: a. commits waste b. may do so because it is his property c. forfeits the estate d. commits vandalism
a. commits waste
a general warranty deed was conveyed to a buyer who later discovered a mistake in the legal description. what covenant would require the grantor to correct the error? a. further assurances b. seizen c. quiet enjoyment d. warranty of title
a. further assurances
A cooperative tenant was sued by the corporation for failing to abide by the by-laws and for being a disruptive tenant. The Corporation: a. may be able to evict the tenant b. cannot sue for eviction c. can only sue for damages d. can evict the tenant regardless of a court decision
a. may be able to evict the tenant
Seller "W" would like to sell his home himself while at the same time list the property with broker "M". which of the following would allow Mr. "W" to sell the property on terms different from the listing agreement and forget paying the commission? a. open or exclusive listing b. Exclusive or exclusive right to sell listing c. Net or open listing d. Exclusive listing
a. open or exclusive listing
as a general rule, a title insurance policy would NOT cover a loss that resulted from: a. real estate taxes not yet due and payable b. a missing heir b. forged documents d. negligence by a title examiner
a. real estate taxes not yet due and payable
"K" made an offer to buy a landlocked property subject to her obtaining an easement by necessity from "W". If "W" grants the easement. a. the property will most likely increase in value b. the easement will terminated upon the sale of "W's" property c. "W" will own the dominant estate d. "W" must maintain the easement
a. the property will most likely increase in value
While examining a title, an attorney discovered the following: grantor "M", grantee "J", grantor "J", grantee "S", grantor "W", grantee "T". Based upon the above information, which of the following is true? a. there is a break in the chain of title b. the title indicates a chronological order c. the attorney was doing an abstract of title d. title insurance will be required before the title can be transferred to the grantee
a. there is a break in the chain of title
an interest in property that allows occupancy on an interval basis while creating a common ownership interest can be best described as: a. time share ownership b. a limited tenancy in common c. a periodic tenancy d. Condominium ownership
a. time share ownership
a man claimed to be the owner of a 4-acre tract of land. He built a house on the land and lived there for 20 years. The man most likely claim: a. title by prescription b. a prescriptive easement c. no ownership; the landlord can sue him for trespassing d. a suit to quiet the title
a. title by prescription
Which of the following deeds would presume that a seller's interest is being conveyed? a. warranty deed b. a deed in trust c. a reconveyance deed d. a trust deed
a. warranty deed
A tenant who is leasing space to open a grocery store needs to add shelving and coolers. If the tenant adds these items, they: a. will be considered the personal property of the tenant b. can be removed by the tenant before or after expiration of the lease c. become the property of the landlord when they are attached to the property d. will be classified an item of chattel real
a. will be considered the personal property of the tenant
"J" has remodeled his home and has added some built-in cabinets in his dining room. One year after "J" sells the property. In regards to the cabinets, they: a. will remain with the property b. will remain only if they are mentioned in the deed. c. must be conveyed to the buyer with a bill of sale d. can be removed by "J" because they are considered personal property
a. will remain with the property
Under which of the following circumstances would the termination of a listing result in liability for one of the contacting parties? a. withdrawal by the seller b. death of the broker c. destruction of the property d. expiration of the contract
a. withdrawal by the seller
Proration can be best described as: a. a division of unpaid taxes and special assessments b. an apportionment of taxes which may be paid or unpaid c. an apportionment of various expenses or income which may be paid or unpaid d. a division of various paid expenses
c. an apportionment of various expenses or income which may be paid or unpaid
An exclusive listing is considered to be: a. an executed bilateral contract b. an executory unilateral contract c. an executory bilateral contract d. an executed express contract
c. an executory bilateral contract
"J", "D", and "F" want to buy some investment properties. They would like to take title in a manner that allows a pass through of income tax purposes while reducing liability for "D" and "F". How should they take title? a. in a corporate name b. as general partners c. as limited partners d. as tenants in common
c. as limited partners
"M" hired an attorney to represent her when she purchased a property from "W". The deed to the property was not recorded. In regards to this situation: a. "M" violated state law by not recording the deed b. "W" should have recorded the deed c. between the parties, the title is good d. "M" becomes the titleholder of record
c. between the parties, the title is good
a government's right to take land when it is need for the good of the public, after paying just compensation, is called: a. condemnation b. escheat c. eminent domain d. a grant
c. eminent domain
Which of the following would NOT be personal property? a. a free standing refrigerator b. a potted plant c. house keys d. a window air conditioner
c. house keys
Due to inflationary trends, the maintenance fee at a condominium complex needs to be increase. the amount of increase would normally be determined by the: a. homeowners b. associations c. master deed and declaration d. board of directors
c. master deed and declaration
Broker "H" has a listing and has found a ready, willing, and able buyer on the seller's terms. Two days before the closing, the title was found to be defective and deal fell through. Regarding her commission, broker "H": a. may not collect; the title was unmarketable b. may collect a portion of it c. may collect; she found the buyer on the seller's terms d. may not collect; the deal fell through
c. may collect; she found the buyer on the seller's terms
Which of the following items would normally be prorated at a closing? a. homeowner's insurance b. private mortgage insurance c. rent d. discount points
c. rent
A co-owner who wishes to seek partition would MOST LIKELY own the property as a: a. tenant at will b. tenant by the entireties c. tenant in common d. severalty owner
c. tenant in common
a deed conveyed title to "J" and "K" as co-owners. In most cases, their ownership would be constructed to be: a. a joint tenancy because the deed made reference to joint owners b. tenancy by the entireties c. tenants in common d. condominiums
c. tenants in common
A sales associate who lists property is considered to be: a. the agent of the seller b. a fiduciary of the buyer c. the agent of the listing broker d. an independent contractor if the seller
c. the agent of the listing broker
Due to severe structural problems, the Board of Directors of a condominium had to levy a special assessment against each owner. Four of the owners refused to pay the assessment. Which of the following is TRUE? a. the board cannot levy special assessments b. an unpaid assessment by any owner constitutes a lien on the entire building c. the association may place a lien and initiate foreclosure against the unties of the four owners. d. A special assessment on a condo unit cannot take precedence over a mortgage.
c. the association may place a lien and initiate foreclosure against the unties of the four owners.
a purchaser who wished to protect his or her mineral rights would MOST LIKELY purchase: a. mineral insurance b. mortgage insurance c. title insurance d. homeowner's insurance
c. title insurance
Under which of the following circumstances would an easement by prescription be granted? a. when a utility company uses its tight of eminent domain b. when a landowner reserves an easement in a deed c. when school children have been using a neighbors yard as a safe short cut to school b. when a landowner indicates an easement will be granted
c. when school children have been using a neighbors yard as a safe short cut to school
"W" gave a deed with the following conditions: "title can be held by a grantee as long the land is used for residential purposes". According to the deed: a. the grantee could sell the property to someone who may be able to use the land for commercial purposes. b. the land has a restriction and cannot be sold c. the land must always be used for residential purposes d. title will revert to "W" if the land is used for something other than residential purposes
d. title will revert to "W" if the land is used for something other than residential purposes
The full bundle of the rights in real property includes a. use, control, destruction, and possession b. use, enjoyment, destruction, and possession c. use exclusion, control d. use, disposition, control, and possession
d. use, disposition, control, and possession (REMEMBER DCUP) D - dispostion C - control U - use P - possession
"J" conveyed title to "K" who was using the fictitious name (nick name) "L". The conveyance is: a. invalid; title cannot be given to a person who uses a fictitious name b. valid between the parties; however, the deed cannot be recorded c. valid if the grantee's name and fictitious name are both mentioned in the deed. d. valid
d. valid
Which of the following LEAST LIKEY to create an encumbrance against the title to the land? a. an encroachment b. a profit c. a license d. an easement
c. a license
A percentage lease called for a rental of $460 a month plus 4.5% of the annual gross income over $100,000. The total rent paid during the year was $7,780. What was the gross volume of business? a. $110,170 b. $150,222 c. $262,267 d. $272,889
b. $150,222
A broker obtained a listing at a price of $80,000. The seller agrees to pay the broker a 7% commission. If the broker sells the property and is to receive one-half the commission, what does she receive? a. $2,400 b. $2,800 c. $2,200 d. $5,600
b. $2,800
A real estate office splits commission as follows: 10% to the sales manager, 15% to the listing salesman; the remaining balance is to be be split equally between the broker and the salesman who sold the property. A salesman lists and sells a $80,000 house at a 7% commission. What is the salesman's share of the commission? a. $2,100 b. $2,940 c. $560 d. $5,600
b. $2,940
"J" is a sales associate for Miami Realty Company. He receives 55% of earn commissions and his broker receives 45%. if "J" takes a $2,000 draw on his share of earned commission, how much would he receive after selling a $63,000 home at 6% commission? a. $3,810 b. $79.00 c. $1,810 d. $2,079.00
b. $79.00
A salesman receives 1/4 of his income from 6% commissions and each of the remaining 1/4's from 5% commissions. What is his average rate of commission? a. 5.5% b. 5.25% c. 9.7% d. 14.5%
b. 5.25%
Which of the following is regulated by RESPA? a. the loan to value ratio b. Escrows c. Interest rates d. Brokers Commission
b. Escrows
Liens, encumbrances, and easements would MOST LIKELY be found in what section of a deed? a. Habendum b. Exceptions and reservations c. Granting Clause d. Testimonum
b. Exceptions and reservations
A seller has agreed to hold a $10,000 second mortgage for the buyer. The mortgage being held by the seller would appear on a closing sheet as: a. a debit to the seller b. a debit to the seller and a credit to the buyer c. a credit to the buyer d. a debit to the buyer and a credit to the seller
b. a debit to the seller and a credit to the buyer
An individual has purchased the right to occupy a unit, one week each year, for the next ten years. The Individual MOST LIKELY has: a. time share estate b. a time share use c. a lease agreement d. interval ownership
b. a time share use
A real estate broker who sells property he listed to a buyer client is: a. violating the law of agency b. acting as dual agent c. conducting two separate transaction d. is a transaction broker
b. acting as dual agent
Which of the following will guarantee a broker he will receive a commission id the property he listed is sold? a. open listing b. exclusive right to sell listing c. exclusive listing d. broker's net listing
b. exclusive right to sell listing
which of the following would be considered a primary difference between a deed condition and deed covenant? a. one is voluntary, the other is involuntary b. remedies that may be used if they are breached c. time periods d. how they run with the land succession
b. remedies that may be used if they are breached
as a general rule, a condition in a deed: a. terminates upon the sale of property b. runs with the land unless specified otherwise c. can be terminated by the grantee d. can never be removed
b. runs with the land unless specified otherwise
The list price of a property is determined by: a. the agent b. the seller c. an appraisal d. the buyer
b. the seller
According to RESPA, the lender must give an estimated cost of closing to a borrow: a. at closing b. within 3 business days of loan application c. within 3 business days of the closing d. upon loan approval
b. within 3 business days of loan application
The principal parties to a listing contract are: a. the sales associate, the broker, and the seller b. the seller and the sales associate c. the buyer and seller d. the broker and seller
d. the broker and seller
"T", "D", and "H" own property as joint tenants. "H" decides to sell his interest to "J". Regarding the sale, which of the following statements is FALSE? a. The sale by "H" severed the joint tenancy with "T" and "D" b. "J" takes title as tenant in common with "T" and "D" c. "Upon "T's" death, "D" and "J" will own the property as joint tenants d. Conveyance by "H" does not terminate the survivorship between "T" and "D"
c. "Upon "T's" death, "D" and "J" will own the property as joint tenants
A rental agent collects monthly rents of $235, $350, and $425 for three houses. During one month she makes the owner's loan payments of $175, $190, and $235, and spends $110 on repairs. If the agents receives 15% of the rent collected as her commission, how much should she send the owner at the end of the month? a. $935 b. $435 c. $148.50 d. $173
c. $148.50
A brokers has a 7 year contract to manage an apartment building. the yearly rent totals $60,000. The broker will receive 6% of the yearly rent the first year, 5% each year for the second and third year, and 3% each year for the remaining term of the lease. How much will the broker receive altogether? a. $15,900 b. $17,650 c. $16,800 d. $18,600
c. $16,800
A seller wants to net $25,000 after pay an 8% commission and after paying selling expenses of $531.00. If a buyer assumes the mortgage balance of $21,500, what did he sell the house for? a. $50,793.48 b. $50,543.47 c. $51,120.65 d. $51,210.65
c. $51,120.65
If an agent is paid $200 per month as salary, plus one-half of the 6% commission on all his sales, what must be his total sales per month if he is to receive a monthly income of $2000? a. $54,000 b. $68,000 c. $60,000 d. $63,500
c. $60,000
A 525 acre farm was listed to sell at $4,430 per acre. If a 12% commission is paid on the first million, 9% on the next million, and 4% on the balance, what will the sales associate earn if the commission is split 60/40 between the broker and the sales associate? a. $133,818 b. $89,112 c. $89,212 d. 92,818
c. $89,212
A broker received a 7.5% commission at a real estate closing. The seller received $26,540. what was the selling price? a. $21,518.90 b. $2,151.89 c. 28,691.89 d. $6,540
c. 28,691.89
The total brokerage fee on a $160,000 sale was computed to be 6% on the first $50,000, plus a certain percentage of the balance. If the fee paid was $7,620, what was the second mortgage? a. 4.5% b. 42% c. 4.2% d. 2.8%
c. 4.2%
Under a written agreement, a property owner gave "M" the right to enter upon his land and remove any minerals that were found. The owner has given "M": a. An easement b. A license c. A profit d. riparian rights
c. A profit
a property owner died without a will and had no heirs. What will happen to this real estate? a. Descent and distribution will determine what happens to the property b. the property will revert to local government through dedication c. It will become the property of the state through its right of escheat d. it must be sold at public auction to settle the owner's estate.
c. It will become the property of the state through its right of escheat
"W" and ABC Corporation have decided to buy a property and take title as co-owners. which of the following will MOST LIKELY occur? a. They will take title as joint tenants b. They will take title in a partnership name c. They will take title as tenants in common d. they will take title as severalty owners, a corporation cannot take title with an individual
c. They will take title as tenants in common
"A" told "B" he could fish in his pond. After "A's" death, his son "C" received title to the property and denied "B" the right to fish in the pond. Does "C" have the right to do this? a. Yes, "B" has an easement b. No, "B's" has a license which terminated upon the death of "A" c. Yes, "B" had a license which terminated upon the death of "A" d. No, "B" has adverse possession
c. Yes, "B" had a license which terminated upon the death of "A"
A broker who was representing a seller decided to loan $2000 to the buyer at 10% interest in order to close a deal. Must the broker disclose the loan to the seller? a. No, this transaction does not affect the seller b. No, because the broker was acting as an agent for the buyer when he made the loan c. Yes, because the broker was making a profit beyond the stipulated commission d. Yes, because a broker always represents a seller in a real estate transaction
c. Yes, because the broker was making a profit beyond the stipulated commission
a seller conveyed a title to a buyer implying that he had ownership of the property; no other warranties were expressed. The seller has MOST LIKELY given the buyer: a. a grant deed b. a special warranty deed c. a bargain and sale deed d. a warranty deed
c. a bargain and sale deed
An Estate which conditions can be best described as: a. an indefensible fee b. a defendable fee c. a defeasible fee d. a fee in severalty
c. a defeasible fee
a married couple received information from a friend about taking title as tenants by the entireties. the couple decided to ask their attorney if the information was correct. Which statement did the attorney say was true? a. a husband can mortgage the property alone b. a husband or wife can sign a deed in order to convey title to a buyer c. a husband and wife who take title by the entireties have an undivided interest in the property d. when tenants by the entireties are divorced, their ownership reverts to joint tenancy
c. a husband and wife who take title by the entireties have an undivided interest in the property
"D" listing a property and placed it on the MLS. "F" who represents another broker showed the property to "J". Which statement is MOST CORRECT? a. "F" is "J's" agent b. "F" is "D's" agent c. "F" becomes a subagent when she shows property placed on the MLS d. "F" may be the agent of the buyer or seller depending upon her actions
d. "F" may be the agent of the buyer or seller depending upon her actions
"F" sold a property to "J" with restrictive covenants stating that the property could only be used for commercial purposes. "J" wants to sell the property to "B" who wishes to use the property to build a house to live in. Which of the following is CORRECT? a. "J" can declare the restriction void b. "B" can build his home c. If "B" builds his home the title will revert to "J" d. "F" may stop "B" from building his home.
d. "F" may stop "B" from building his home.
A property was leased for $1,000 per month. The owner pays $227.00 per month for the mortgage and 9% of the gross income to a broker. How much did the owner pay the broker annually? a. $1,059 b. $1,074 c. $1,150 d. $1,080
d. $1,080
A property was listed for $54,000 and sold for 5/6 of the list price. If the 6% commission was shared equally by two brokers, how much did each get? a. $765 b. $2,669 c. $1,944 d. $1,350
d. $1,350
A buyer paid $40,000 for 8 lots, each with 50 front feet. He wishes to make a profit of $20,000 while retaining 1 lot for himself. what must the sale price be per front foot of each lot sold? a. $141.72 B. $1,100.00 c. $150.00 d. $171.42
d. $171.42
A commission amounted to $3,560. The agent received 5% on first $40,000 and 3% on the remainder. What was the sales price? a. $52,000 b. $73,000 c. $84,000 d. $92,000
d. $92,000
Broker "M" and seller "W" entered into a listing contract. Which of the following statements would be consistent with normal agency agreements? a. Broker "M" cannot get paid unless the amount of commission is expressed in writing. b. To be valid. the listing must be signed by the seller, broker, and witnessed by the sales associate c. Unless the listing is written, the agreements is unenforceable d. Exclusive listings exclude other brokers from listing the property
d. Exclusive listings exclude other brokers from listing the property
Which of the following would be sign legal documents for a corporation? a. the president of the board b. the secretary c. the agent for the corporation d. One names in the corporate resolution or charter
d. One names in the corporate resolution or charter
Which of the following forms of ownership would not recognize survivorship rights? a. limited partnerships b. tenancy by the entireties c. Joint Tenancy in common d. Tenancy in common
d. Tenancy in common
RESPA does not cover: a. residential condo unit b. a single family home c. an owner occupied duplex d. a 5 unit apartment building
d. a 5 unit apartment building RESPA covers up to a 4 plex
a document issued by a title examiner which specifies the condition of title and may express the attorney's opinion of title is called: a. an abstract b. a chain of title c. an affidavit of title d. a certificate of title
d. a certificate of title
In order to convey title, a deed must contain: a. a habendum clause b. a street address c. the grantee's signature d. a granting clause
d. a granting clause
an individual who purchases an interest in a cooperative obtains: a. stock and a deed to the unit b. a real property interest in personal property c. a prospectus d. a personal property interest in the real estate
d. a personal property interest in the real estate
An easement in gross can be best described as: a. a limited right to use land B. a personal privilege c. an assignable right d. a personal right
d. a personal right
Involuntary alienation would occur when: a. a title is conveyed through devise b. a seller gives a buyer a quit claim deed c. property is dedicated d. a sheriff gives a deed at a foreclosure sale
d. a sheriff gives a deed at a foreclosure sale
as a general rule, a riparian owner cannot: a. fish from a creak that adjoins the property b. erect a legal pier c. divert water for irrigation purposes d. convey title to the water rights
d. convey title to the water rights
Which of the following characteristics of real estate would allow a buyer of real estate to seek specific performance against a seller who defaulted on a contract? a. immobility b. scarcity d. transferability d. heterogeneity
d. heterogeneity
Regarding a fee simple absolute estate, which of the following is false? a. it is an estate that can be given to heirs b. it is freely transferable c. it is for an uncertain duration d. it is a defeasible fee
d. it is a defeasible fee
at a closing, the buyer would normally be obligated to pay the: a. transfer tax b. brokers commission c. release of existing mortgage liens d. orignation fee
d. orignation fee
a purchaser who wants to make sure that correct public notice has been given as too his or her property rights would: a. get a title examination b. Acknowledge the deed c. do a title search d. record the deed
d. record the deed