STATE EXAM PRACTICE TEST

Bill and Bob, who are neighbors, enter into an agreement not to permit their real estate agents to sell their homes to families of color. This agreement lacks ______, so it's void.

A lawful objective

What's the term used for an offer that's able to be rescinded at any time before acceptance?

A revocable offer

What should never affect an agency relationship, per Louisiana law?

Agent compensation

When a loan is assumed, who or what takes on the responsibility of the debt?

BUYER

All Louisiana candidates for a real estate license must ____.

Be fully competent to transact business in a way that protects consumers' interests

A real estate license is required ______.

When performing real estate activities for others, for compensation of any kind

Anna and Cindy, two friends, enter a contract to buy Jake's home. However, at the last minute, Cindy has a change of heart and wants out of the deal. Anna asks another friend, Sally, if she wants to take Cindy's place as co-buyer of Jake's home. Everyone agrees to the substitution of Sally for Cindy on the contract. This is an example of ______.

Novation

What must a complaint against a Louisiana licensee for an alleged license law violation contain?

Either the signature of the complainant or the signature of the complainant's legal representative

Records related to a real estate transaction in Louisiana must be kept, and available upon commission request, for at least ______ years.

FIVE

Which type of Louisiana mortgage burdens all of the borrower's present and future property?

GENERAL

Penny submits an offer to Kyle, who counters it. Which of the following is true of the original offer?

It's negated.

The three types of predial servitudes are conventional, legal, and _____.

NATURAL

If any child predeceased the decedent, then that child's descendants will inherit their parent's share of the separate property by _____.

Roots

In Louisiana, brokerages are responsible for depositing security deposits into a(n) ______.

Security deposit trust account

_____ occurs the moment the donor dies, whether the successor is aware of the death or not.

Seizin

Lisa's real estate license has been suspended. Which entity had the power to do this?

The Louisiana Real Estate Commission

What prevents owners from making a defense claim during expropriation when their lands were appropriated either without their protest or with their express consent?

The St. Julien Doctrine

What is a naked owner?

The owner of a thing under a usufruct

Ronald can't disclose anything confidential that his buyer client Amy shared with him, unless which of the following things occur?

Amy gives him permission to share a specific piece of information.

In Louisiana, a legal relationship in which the obligor becomes bound to perform in the obligee's favor is known as ______.

An obligation

Which of the following requirements is necessary to obtain a real estate salesperson license in Louisiana?

Applicants must be sponsored by an actively licensed sponsoring broker.

In which of the following scenarios is impossibility of contract performance occurring?

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

Which of the following is NOT an example of a consumable?

Farm equipment

Which term means the expectation that a client should know everything that his agent knows about a real estate transaction?

Imputed knowledge

Suit for specific performance, suit for damages, and acceptance of liquidated damages are all ______.

Options a wronged party has to remedy a breach of contract in Louisiana

Full ownership in Louisiana is the equivalent of _____ in common law

Ownership in severalty

Individuals in which role are primarily responsible for determining a Louisiana property's assessed value?

PARISH TAX ASSESSORS

Which of the following is true when it comes to community property?

Insurance payments for damages to community property are community property.

When a Louisiana licensee helps a customer by performing ministerial acts, how does that affect the agency relationship the licensee has with the client in the transaction?

It has no effect on the agency relationship with the client.

Of the following items, which is required for a valid contract in Louisiana?

It must have a lawful cause.

Bob holds a real estate license in Alabama and is looking to obtain a reciprocal license in Louisiana. Which of the following is one of the requirements he must meet?

Pay all required licensing fees.

Which of these obligations must lessees fulfill, according to the lease contract?

Pay the rent in accordance with the agreed-upon terms

Louisiana resident Mary agreed to sign her brokerage agreement with her agent, Betty, electronically, but didn't want to conduct her purchase agreement electronically. Which of the following is true of this situation?

Just because Mary conducts one transaction electronically, this doesn't mean she must conduct them all this way.

Testate successors are called _____.

LEGATEES

Francine has just entered into a lease where she agreed to let Alphonse enjoy the use of one of her apartments. Francine is the ______.

LESSOR

Which Louisiana meridian is used for land parcels west of the Mississippi river?

LOUISIANA

Julien and Mara have just entered into a written lease agreement. One section of the lease states that both parties are adults and are of sound mind, and therefore they are able to enter into a legal contract. Which essential element of the contract is this an example of?

Legal capacity

Louisiana real estate licensee Alexa was just found guilty of violating Louisiana license law. What is the most likely punishment she'll receive?

License suspension/revocation

The Louisiana law governing timeshares is the _____.

Louisiana Timesharing Act

Which of the following activities can a person do without a real estate license in Louisiana?

Sell personally owned property

When a buyer takes on a seller's loan subject to an existing mortgage, who or what is directly responsible for repayment of the entire debt?

Seller

_____ in terms of Louisiana civil law is/are the equivalent of "property" in common law.

THINGS

The last Shreveport tenants let their child draw on three walls with permanent marker, and someone also punched four holes in another wall. What should the landlord do?

Take the repair money out of their security deposit and send them the rest with an itemized list of expenses.

If you're a designated agent for a seller in Louisiana, which of the following would violate confidentiality?

Telling a buyer the lowest price the seller would be willing to accept

Louisiana's ownership in indivision is equivalent to _____ in common law.

Tenancy in common

When people die and leave a will, they die _____.

Testate

What is a dation en paiement in Louisiana?

The borrower turns the property over to the lender rather than face foreclosure proceedings

A real estate contract must be for a lawful objective. What does this mean?

The contract must be written for a legal purpose.

Which of these statements about the fiduciary duty of confidentiality is true?

The duty of confidentiality survives both the closing of the transaction and the termination of agency.

Debra's listing agent, Raj, just called to tell her that he'd received an offer on her house and an earnest money check for $4,500. "I'm on my way over to go through the offer with you. I think you'll like it!" Debra's excited, and she knows exactly what she wants to spend that $4,500 on. What's wrong with Debra's thought process?

The earnest money doesn't belong to Debra. It will be held in an escrow account

A Louisiana couple has a special assessment exemption because their adjusted gross income is less than the state cutoff level. Mitch, age 64, passes away, leaving Karen, age 57, in the home. What happens to the special assessment exemption?

The exemption is unaffected.

Louisiana licensees are required to provide prospects with agency disclosures. These disclosures explain the general concept of agency, and also explain what?

The types of agency relationships available in Louisiana

What happens to a usufruct if its object property is sold by the naked owner?

The usufruct remains in place.

In Louisiana, when married people with descendants die intestate, who or what entity inherits their share of community property?

Their descendants with a usufruct for the surviving spouse

Which of the following is FALSE about general partnerships in Louisiana?

They own immovables via co-ownership.

What is true about property taxes in Louisiana?

They're levied at the parish level only.

If a seller was liable for the mistakes of the seller's agent, this would be called ______.

Vicarious liability

Sub-agency is legal in Louisiana if there is a ______ in place.

WRITTEN AGREEMENT

You're representing Crystal in the purchase of a house. Crystal has a trust fund and can more than afford the house on which she's made an offer. Which of the following statements is true?

Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller.

Katherine is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her?

Honesty

The act of rendering a manufactured home an immovable is called _____.

Immobilization

A predial servitude may be lost if it's not used for _____ years.

10 YEARS

The Louisiana Real Estate Commission comprises how many members?

11

How many classroom hours of pre-licensing education are required for someone to become a broker in Louisiana?

150 hours

How many acres are in a parcel that is 1/32 of a rectangular land survey section?

20 640 acres ÷ 32 = 20 acres.

How many hours of post-licensing education are active Louisiana salespeople required to take?

45 hours

What's the maximum the Louisiana Real Estate Recovery Fund will pay on behalf of a single licensee, regardless of the number of judgments or transactions involved?

50,000

Which of these individuals would need a real estate license?

A broker or salesperson

In Louisiana, under an obligation, the person who is obligated to perform in another person's favor is known as the ______.

OBILGOR

What acronym can be used to remember an agent's fiduciary duties?

OLD CAR

Billy and Amy are proud that they've paid off their family home. Their daughter, Sadie, is only 12 right now, but one day they hope to gift her the home. What right allows them to do this?

OWNERSHIP

Sponsoring broker Evan just had his real estate license revoked after being convicted of fraud. What does this mean for Oakley, a newly licensed affiliated salesperson at his firm?

Oakley's license is suspended until she can find another sponsoring broker to represent her.

Which of the following statements about Louisiana counter-offers is true?

Once a counter-offer has been made, the prior offer is negated.

What type of Louisiana foreclosure is initiated when the lender files suit against the borrower?

Ordinary

There was a fire in Naomi's condo building, and her unit is uninhabitable. She'd been trying to sell it through a listing agreement with Jason. What happens to the listing agreement now?

The agency agreement is terminated upon destruction of the property.

Which of the following provides an example of a universal agent?

A court-appointed guardian

In Louisiana, a person doesn't possess the mental capacity to enter into contracts when ______.

A court of law has filed an interdiction against the person

After an investigation but prior to ordering sanctions against a licensee for a license law violation, the Louisiana Real Estate Commission will hold a(n) ______.

Adjudicatory hearing

Terence made an appointment with Louisiana licensee Jocelyn to discuss the possibility of Jocelyn listing Terence's house for sale. With which of the following will Terence be provided at that first meeting?

Agency disclosure

Saying, "I'll sell you my house if it snows on Christmas," is an example of a(n) ______ contract.

Aleatory

Which of the following statements is true regarding Louisiana community property rights and property ownership?

Both partners may own other properties purchased before the marriage separately (in severalty), but any properties purchased during their marriage are owned equally.

Joe finds an entrance on his property to a cave that runs underground, including partially under his neighbor Cecily's property. Cecily's property doesn't have an access point to the cave. Who owns the portion of the cave that runs under Cecily's property?

CICLEY

Excess funds from the Louisiana Real Estate Recovery Fund may be transferred to the education fund on what date?

DEC 31

You've just helped Bella and Tony Vega purchase a new home. Which of the following should be recorded to ensure that someone else doesn't try to claim ownership of the same property?

DEED

Which of the following is NOT true of forced heirship?

Forced heirs may be disinherited for ingratitude.

What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific transaction?

GENERAL

Which of the following is a claim against a specific individual and all of his property?

General privilege

A servitude of habitation _____.

Gives someone the right to live in a house owned by another person

In what type of contract is one party obligated to do something for the other's benefit, but the obligated party doesn't receive anything in return?

Gratuitous

Simon is a licensee in Louisiana working as a designated agent for seller Helen. He's also assisting the buyer customer, Roger, in the same transaction. To whom does Simon owe the duty of confidentiality?

Helen

Materials that have been removed from a structure in order to repair, change, or add on to that structure, and that will be placed back, are _____.

Immovables

Which of the following is considered a component by declaration and registry?

Mobile home

A usufructuary _____.

Must return the thing to the owner when the usufruct terminates

Which of the following is a required element of a Louisiana contract?

Mutual consent

Which of the following is NOT an example of a bound in a metes and bounds legal description?

North 300 feet

In Louisiana, "separate property" is property most likely acquired ______.

Prior to marriage

Which of the following statements regarding Louisiana property management is true?

Property managers receive a fee for their property management services

In order for landlords to lawfully evict tenants in Louisiana, they must_______.

Provide the tenants with a written notice and allow them five days to vacate.

The three types of eminent domain used in Louisiana are expropriation, appropriation, and _____.

Quick taking

_____ is the method used by the DOTD to take property for highway projects.

Quick taking