National Test
A building valued at $105,000 is assessed at 35% of its value and taxed at the rate of 66 mills. One mill 14110 of one cent. what is the quarterly tax payment? A. $2,425.50 B. $9,187.50 C. $606.38 D. $1,732.50
$606.38 Assessed V is 35% of $105,000=$36,750 (36750x66):1000=$2425.50 Annual Tax:4=$606.38
Local ordinance requires a 20-foot rear and front setback. The ordinance also requires a 10-foot side set back. If the lot measures 100' x 200', which is the total allowable square footage of a single story building?
12,800 square feet From the 100' frontage, subtract the 10' per side setback (100' -20' = 80'). From the 200' depth subtract the 20' rear and front setback (200'-40' = 160'). 80 feet of frontage x 160 feet of depth = 12,800 square feet allowed by local ordinance.
In an advertisement for a home, which of the following statements would most LIKELY to be considered discriminatory? A. "beautiful home in an exclusive neighborhood" B. "Cozy home with fabulous view of the bay" C. Excellent location, lots of amenities, near bus stop" D. Four bed room charmer, fenced lot, on a quite cul-de-sac"
A. "beautiful home in an exclusive neighborhood"
Seller Tim told Sally Broker that he wanted to sell his house and would pay Sally a commission if she found a willing, able, and qualified purchaser. However, Tim didn't want to sign any formal agreements. This is an example of what type of Agency Relationship? A. Expressed Agency B. Universal Agency C. General Agency D. Implied Agency
A. Expressed Agency
lady asked the broker she wanted to rent something cheap for her office. Can you suggest me which lease I should get. A. GROSS lease B. Percentage lease C. Sublease D. Net lease.
A. GROSS lease
Barry makes an offer to purchase a home being sold by Pam. Pam does not accept Barry's offer, but makes a counteroffer. Relative to the counteroffer, which of the following statements is INCORRECT? A. If Barry does not accept the counteroffer, Pam has the choice to then accept Barry's original offer. B. Barry is now considered to be the offeree. C. The counteroffer rejects Barry's offer completely. D. Pam may withdraw the counteroffer at any time, prior to acceptance by Barry.
A. If Barry does not accept the counteroffer, Pam has the choice to then accept Barry's original offer.
When a seller makes a counteroffer, which of the following statements is NOT true? A. It is a partial acceptance of the original offer. B. The original offeror becomes the offeree in the counteroffer. C. It is a rejection of an earlier offer. D. It may be withdrawn at any time prior to acceptance.
A. It is a partial acceptance of the original offer.
Landlord often uses his master key to go into his apartments with tenants to see if there are any pets or damages. The tenants are not aware that he does this. Is this legal? A. No, it is a violation of the civil rights B. No, it is a violation of the federal fair housing C. Yes, it is his right as the owner D. No, it violates freehold estate
A. No, it is a violation of the civil rights
A complaint in a discriminatory case under the federal fair housing act must prove A. Only that the discrimination occurred B. The discrimination occur and was provoked C. that the accused party intended to discriminate D. The damage occurred
A. Only that the discrimination occurred
Broker Betty has a listing on Seller Sara's house. Broker Betty puts the listing on the local MLS -- agreeing to share the commission with any other member broker who finds a buyer for the house. Up through the 1970s if another broker found the buyer, that broker would be considered a(n): A. Subagent. B. General Agent. C. Universal agent. D. Special agent.
A. Subagent.
Standard title insurance would protect a buyer A. When the seller has forged his ex-wife's signature B. After the HOA has placed a lien on the property for the previous owners' unpaid dues C. In a purchase where the buyer had knowledge of a shed violating setback requirements D. For the purchase of a property bought sight unseen where the buyer discovers a tenant living at the property
A. When the seller has forged his ex-wife's signature
If the owner of a condominium defaults on his mortgage, the owners of the remaining units: A. are not affected by the defaulting owner's actions. B. become subject to foreclosure. C. must file an injunction against the defaulting owner. D. must immediately institute a suit to quiet title.
A. are not affected by the defaulting owner's actions.
When ownership of a mortgage is transferred from one company or individual to another, it is called: A. an assumption B. an assignment C. an assessment D. all of the above
B - an assignment (When ownership of a mortgage is transferred (assigned) from one company or individual to another, it is called an assignment.)
A lease provides that tenants pay $760 minimum rent per month plus 4 percent of the gross sales in excess of $$150,000 per year. If the tenant paid a total rent of $20,520 last year, what was the gross sales volume? A. $150,000 B. $435,000 C. $513,000 D. $285,000
B. $435,000 $760*12=$9,120 | $20,520 - $9,120 = $11,400 |$11,400/4%=$285,000 | $285,000+$150,000=$435,000
The seller-landlord has collected Sept rent from all five tenants: 2 paying $345 a month each & 3 paying $425 per month each. Determine the prorated amount to be allowed the buyer when the sale closes on Sept 19th: A. $1,965.00 B. $786.00 C. $1,244.50 D. $720.50
B. $786.00
Using the Financial Calculator provided, what is the monthly payment on a 30 year amortized loan in the amount of $250,000 with a yearly interest rate of 7%? In this situation the Annual Taxes of $1,000 and Insurance of $300 must also be included. Factor- 6.65(Amort Table) A. 1663.26 B. 1771.59 C. 1770.34 D. 1300.00
B. 1771.59
The purchase price for a new home was $230K. The buyer put down 20% and the balance was a mortgage of 80% of the purchase price. The appraised value at the time of closing was $250K, and the assessed value was $220,000, what will the buyer pay for one year's property taxes, if her tax rate is 0.2%? A. 4440 B. 440 C. 4450 D. 540
B. 440 (220,000 x 0.002= 440)
Which of the following is an example of a zoning variance? A. a moderate violation of setback requirements is allowed so that an office building is built far enough from a high-pressure natural gas pipeline B. A modest violation of federal fair housing laws is allowed as a means of controlling population density in a new suburban area C. a developer is allowed to include the deed restrictions that all lots in a subdivision contain a house of at least $3,000 square feet of living area D. a developer is allowed to include the deed restriction that all lots in a subdivision must have a swimming pool built on them
B. A modest violation of federal fair housing laws is allowed as a means of controlling population density in a new suburban area
After making three sales in six weeks to growing families with young children in a neighborhood of mostly retirees, a broker decided to seek additional listings there. He went door to door suggesting that homeowners who enjoyed living in their quiet neighborhood might wish to sell now and move to a different area where there would not be so many noisy children. He listed four homes during this marketing campaign.. .this is an example of A. Redlining B. Blockbusting C. Steering D. Channeling
B. Blockbusting
An eligible veteran made a purchase offer of $80,000 on a home he wants to finance with a VA-guaranteed loan. Four weeks after the offer was accepted a certificate of reasonable value (CRV) for $77,000 was issued for the property. In this situation, the veteran could NOT do which of the following? A. Purchase the property with a $3,000 cash down payment B. Borrow the $3,000 for the cash down payment C. Withdraw from the transaction without penalty D. Negotiate with the seller to reduce the price $3,000.
B. Borrow the $3,000 for the cash down payment
to an individual who you are representing they would be considered. A. Customer B. Clients C. Principal D. Fiduciary
B. Clients
You take your buyer client to a house that is for sale and show them the property. The owner of the property is a good friend of yours who is represented by another agent. After the homeowner (your friend) arrives and ask how did it go? You tell your friend that you have an offer and will present it to their agent. Your friend insists that you tell them right there and then what the offer is. What do you do? A. Present the offer B. Contact their agent and present the offer C. Present the offer and later present it to their agent D. Get your clients permission
B. Contact their agent and present the offer
A broker licensee has a tenant client who wishes to minimize any future increase in expenses for the office space she is interested in leasing. What type of lease should the broker recommend? A. Net lease B. Percentage lease C. Gross lease D. Ground lease
B. Designated agents
The foundation of the income approach to appraisal is A. Principle of substitution B. Principle of Anticipation C. Principle of Contribution D. Principle of conformity
B. Principle of Anticipation
A salesperson has been selling residential properties for five years. He would like to get into listing and selling industrial properties. What would be the salesperson's BEST course of action? A. Prospect for some industrial properties to list B. Seek to work with a practicing industrial broker either in his present company or at another local brokerage C. Stay where he is because industrial property brokerage requires a different licensee and is complex and difficult D. Move to a property management company and manage some industrial properties for a while before making this decision
B. Seek to work with a practicing industrial broker either in his present company or at another local brokerage
Your client has both a down payment of $59,000 and income to qualify for a 30 year amortization loan with an interest rate of 6.5% and a loan to value of 80%. If property Taxes plus Hazard Insurance total $3200, calculate PITI using the financial calculator. Factor- 6.32(Amort Table) A. 1759.34 B. 1758.34 C. 2010.34 D. 834.22
B. The closes I got is $1758.19 If $59k is 20%DP, the loan amount is $236k $236x6.32=$1491.52 (MP) ($3200:12months)+MP=$1758.19
Johnny obtained a property through his grandparents who passed away. Johnny is only 16 years old and put the property up for sale with you as the broker. You receive an offer and Johnny excepts and signs the offer. What type of contract's are in play? A. Void B. Voidable C. Unenforceable D. Unilateral
B. Voidable
The heir to a large estate will be of legal age within 30 days. He lists with a broker and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are A. Void B. Voidable C. Executed D. Executory
B. Voidable
A valid contract must: A. be recorded at the county courthouse. B. be supported by legally sufficient consideration. C. have at least one legally competent party to the contract. D. show involuntary agreement by all parties to the contract term
B. be supported by legally sufficient consideration.
A real estate broker enters into an agreement to represent a buyer who is seeking a property to purchase, and remains a single agent throughout the transaction. A seller whom this broker negotiates is this broker's... A. client B. customer C. principal D. fiduciary
B. customer
he broker has noticed that a great number of people who are buying In the neighborhood where his listing Is located speak Russian. He also noted that an attractive feature of the neighborhood seems to be the large Russian grocery storec4 He decides to stop advertising the property In the city newspaper and instead advertise the property on two different Russian tntemet sites. This la A. acceptable because It Is not print medla. B. unacceptable due to Its discriminatory nature. C. acceptable If the advertisement Includes no preferential language. D. the only appropriate way to market property in this neighborhood.
B. unacceptable due to Its discriminatory nature.
A property was sold and appraised for $156,000. The assessed value of the property is based on 50% of the appraised value. What are the annual taxes on this property if the local tax rate is $3.00 per $100 value? A. $864 B. $468 C. $2,340 D. $1,170
C. $2,340
A buyer deposited 10 percent of sales price with the broker as earnest money and the bank has agreed to lend $51,000 which is 80 percent of the sales price. How much additional funding must the buyer provide to complete this transaction? A. $5,100 B. $6,125 C. $6,375 D. $5,500
C. $6,375
Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? A. A broker's price opinion B. A comparative market analysis C. A reconciliation report for an FHA loan D. A value analysis for a non-residential property valued below $250,000
C. A reconciliation report for an FHA loan
At a listing appointment, the seller asks the broker not to disclose the prior termite treatment and repairs since they are now corrected. The broker should: A. Go back to the office without pursuing the listing. B. Insist that the seller disclose these facts to any potential purchaser. C. Agree not to disclose these issues, as they no longer affect the property. D. Confirm that repairs were made, and the extent of those repairs before agreeing.
C. Agree not to disclose these issues, as they no longer affect the property.
Casper is planning to sell his house and desires the broadest possible exposure. He gives Bert an exclusive right-to-sell listing, Gail an exclusive agency listing and Mark an open listing. Mark sells the house. Under these circumstances, which of the following statements is true? A. Mark must split his commission with Bert and Gail. B. Casper owes two commissions, one to Mark and one to Bert and Gail to be split between them. C. Casper owes 3 commissions. D. Mark is the only one who will receive a commission.
C. Casper owes 3 commissions.
Insurance companies not willing to deal directly with borrowers usually pay a loan servicing and preparation fee, and make real estate mortgage loans to purchase indirectly thorough: A. FHA or the VA. B. Freddie Mac. C. Mortgage companies, D, Saving and loan associations.
C. Mortgage companies.
Tammi is the buyer's agent that represents Donna in a transaction. Derrick, the seller of the property, has agreed to pay Tammi a commission handling the sale the property. Based on this information, which of the following statements is true regarding Tammi? A. An agency relationship has been created between the buyer's agent and the seller. B. An agency relationship has been created between the seller and Tammi's broker, but not with Tammi. C. No agency relationship has been created between the buyer's agent and the seller. D. It's against the law for the seller to pay the buyer's agent a commission.
C. No agency relationship has been created between the buyer's agent and the seller.
Seller Corcoran is in very poor health and cannot work on his farm. Should a broker, who has a listing on the farm, disclose this fact to prospective buyers? A. Yes, it is a material fact about the farm which Moore must disclose. B. Yes, it may help to get at least a low offer and help sell the farm. C. No, it may hurt Corcoran's bargaining position and hurt his chances to get a fair price for the property. D. No, it would be a violation of Federal Fair Housing Laws.
C. No, it may hurt Corcoran's bargaining position and hurt his chances to get a fair price for the property.
What is considered an option to purchase ? A. Option contract is a sales contract B. Optionor is the purchaser C. Option must contain a seller and buyer D. Option makes sure everything is a valid contract
C. Option must contain a seller and buyer
Tyler asks a real estate agent to list his house for sale. Tyler is moving to another house within the same neighborhood, and tells his agent that in order to preserve the character of the neighborhood, he does not want the property shown to non-white buyers. Which of the following should the agent do? A. Comply with Tyler's wishes because of the duty of loyalty to the principal B. Enter into a listing agreement that contains Tylor's terms, but still show the property to any interested buyer C. Refuse to accept the listing because it violates federal antidiscrimination laws D. Tell Tyler that the listing cannot contain such instructions, but Tyler may still refuse to sell to buyers based on their race
C. Refuse to accept the listing because it violates federal antidiscrimination laws
When the interest rate is much lower initially in order to get a buyer to use a particular loan program, then jumps to a higher rate at the end of a specified period, this is said to be A. Permanent buydown B. Prime rate C. Teaser rate D. Usury rate
C. Teaser rate
Which of the following analyses must be prepared by a certified appraiser? A. A CMA B. A price opinion for a lender involved with a short sale transaction C. An analysis to determine a projects estimate market capture and cap rate D. A property valuation report supporting a federally-related loan application
D. A property valuation report supporting a federally-related loan application
Broker Jane is acting as a dual agent in a real estate transaction and decides to appoint salesperson Sara to represent the seller and salesperson Ben to represent the buyer. Ben and Sara both work in Jane's firm. A. Jane cannot legally do this. B. Ben and Sara are dual representatives. C. Ben and Sara must be independent contractors. D. Ben and Sara are designated representatives.
D. Ben and Sara are designated representatives.
An exception to title insurance coverage is A. Forged documents B. Defects found in public newspapers C. Incorrect records of marital status D. Defects that clearly appear in the title search
D. Defects that clearly appear in the title search
Real estate investments have which of the following advantages when compared with an investment in securities: A. Appreciation in value B. All of the other options are correct C. Better capital gains treatment D. Depreciation
D. Depreciation
A broker has the opportunity to list a commercial building which all of the available units are currently occupied. The broker does not need to account for any expenses. The numerical tool he would use to price at the building would be known as A. Net Rent Multiplier B. Return on investment C. Gross Rent Multiplier D. Gross Income Multiplier
D. Gross Income Multiplier
Which disclosure is the most commonly required in a residential real estate sale? A. Radon B. Lead-based paint C. Neighborhood Compensation D. Seller's property disclosure
D. Seller's property disclosure
In which of the following situation could a broker receive no commission? A. The broker proves that he is the procuring cause of the buyer in a exclusive right to sell. B. The broker proves that he is the procuring cause of the buyer in an exclusive agency listing. C. The broker proves that he is the procuring cause of the buyer in a opening listing D. The broker proves that he is the buyer in a net listing.
D. The broker proves that he is the buyer in a net listing.
In which of the following situation could a broker receive no commission? A. The broker proves that he is the procuring cause of the buyer in an exclusive right to sell listing B. The broker proves that he is the procuring cause of the buyer in an exclusive agency listing C. The broker proves that he is the procuring cause of the buyer in an opening listing D. The broker proves that he is the buyer in a net listing
D. The broker proves that he is the buyer in a net listing.
In the appraisal of an office building, which of the following would be classified as external obsolescence? A. Termite damage to the structural components of the building B. A poor architectural design resulting in a cluttered floor plan C. An inadequate number of elevators and antiquated restroom facilities D. A law requiring the building to be retro-fitted with fire sprinklers
D. a law requiring the building to be retrofitted with fire sprinklers
A deed was properly completed and executed. Title to the property passed when the deed was A. signed B. recorded C. acknowledged D. accepted by the grantee
D. accepted by the grantee
A typical property management agreement may be terminated by: A. high vacancy rates. B. a holdover tenancy. C. constructive eviction. D. destruction of the property.
D. destruction of the property.
A broker affiliated with Village Realty is working as a buyer's agent. On behalf of the buyer-client, the broker submits an offer on a property listed by another firm. When the listing agent presents the offer to the seller, the seller signs the offer with no charges. The listing agent immediately calls the Village Realty broker to relay the seller's acceptance of the offer. The Village Realty broker then promptly contacts the buyer with the good news that the offer was accepted. Later that day, the listing agent delivers the signed contract to the buyer's agent. The offer became an enforceable contract when the A. seller signed the offer with no changes. B. signed contract was delivered to the buyer's agent. C. buyer's agent told the buyer of the seller's acceptance. D. listing agent told the buyer's agent of the seller's acceptance.
D. listing agent told the buyer's agent of the seller's acceptance.
Jack buys Don's property, which is subject to a mortgage. After five years of payment, Jack defaults and misses a payment. What is the appropriate remedy for the original mortgagor? A. the mortgagor should sue Jack and Don as they are both liable on the mortgage B. the mortgagor has no recourse as there was no assumption C. the mortgagor should sue only Jack as he assumed Don's mortgage D. the mortgagor should sue only Don as Jack took the property only subject to a mortgage and there was no assumption
D. the mortgagor should sue only Don as Jack took the property only subject to a mortgage and there was no assumption
A city has a transfer fee of $1.00 for each $1,000 of the sales price and the state charges $1.50 per $500 of the sales price for real estate transactions. If the buyer pays. What would the sellers transfer tax be on the sale of a $400,000 home? A. $2,000 B. $4,000 C. $6,000 D. $8,000
Question says buyer pays so seller pays nothing. Assuming the question language is wrong the math would be $400,000/1,000 * 1 for the city tax ($400) plus 400,000/500 *1.50 for the state tax ($1,200). $1,200 plus $400 is $1,600.
The seller told an agent that they would pay 5% if the agent would find a ready, willing and able buyer. The agent brings a prospective buyer to the property and the buyer decides to purchase the property for cash. A contract for the sale of the property is drawn up by the agent for the buyer and the seller to sign. At closing the seller refuses to pay the agent a commission. What is a true statement? A. The seller is not obligated to pay because there is no listing agreement signed. B. The agent has earned a commission and the seller is obligated to pay it. The seller told an agent that they would pay 5% if the agent would find a ready, willing and able buyer. The agent brings a prospective buyer to the property and the buyer decides to purchase the property for cash. A contract for the sale of the property is drawn up by the agent for the buyer and the seller to sign. At closing the seller refuses to pay the agent a commission. What is a true statement? A. The seller is not obligated to pay because there is no listing agreement signed. B. The agent has earned a commission and the seller is obligated to pay it. C. The agent is the procuring cause of the sale and has earned a commission. D. The seller has represented them self; it's the buyer who is obligated to pay it.
C. The agent is the procuring cause of the sale and has earned a commission.
The buyer was given a Loan Estimate at the time of the application for the mortgage and it is now three business days before the closing. The appraisal and the Closing Disclosure have been given to the buyer. The buyer's broker meets her client at the property for a walk-through and to review the documents. Which of the following occurrences will result in the buyer having the right to an additional three days to review the documents? A. There was a mathematical error on the proration of taxes or utilities. B. Appliances are missing even though the seller agreed to include them. C. The loan product was changed from a fixed rate to one that is adjustable. D. There was an omission in the property disclosure of a recently discovered special assessment.
C. The loan product was changed from a fixed rate to one that is adjustable.
Which of the following would create legally binding acceptance of a written offer? A. The buyer submits a good faith deposit to the seller. B. A spouse signs for his/her spouse based on marital rights. C. The offeree's digital signature is shared electronically with the offeror. D. The buyer's agent emails the seller to inform the seller of the buyer's intent to accept the offer.
C. The offeree's digital signature is shared electronically with the offeror.
A purchaser submits an offer to a seller with the condition that the property is to be financed by a conventional loan at no more than 10% interest. If the seller agrees but such financing cannot be obtained, which of the following is true? A. The purchaser loses his deposit but is relieved of further liability. B. The seller is obligated to return the deposit plus interest. C. The purchaser may request his deposit be returned. D. The seller can sue for specific performance
C. The purchaser may request his deposit be returned.
Which of the following is not a test for a fixture: A. The intention of the parties B. The agreement of the parties C. The time of attachment D. The method of attachment
C. The time of attachment
A real estate broker has a fiduciary responsibility to her client and her responsibilities include investigating financial references, ordering and examining credit reports, and familiarity with the ADA Title Mi. This broker is most likely working for the client as A. an affiliate. B. an escrow officer. C. as property manager. D. a designated broker
C. as property manager.
The Yuter's purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mortgage, which had a current balance of $23,000. The Yuter's financed the remaining $37,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a: A. wraparound mortgage. B. package mortgage. C. part purchase mortgage. D. balloon note.
C. part purchase mortgage.
Property over which an easement runs in favor of another parcel of real estate is known as a A. prescriptive estate. B. dominant tenement. C. servient tenement. D. condemned estate.
C. servient tenement.
Seller Tom contacts Broker Jones about selling Tom's house. Tom indicates that he wants to sell his house for $245,000. Broker Jones knows that the house is easily worth $265,000. Broker Jones should: A. suggest Tom get an appraisal to ascertain value B. list the house at $245,000 C. tell Tom that, in his opinion, the property is easily worth $265,000 D. buy the house at $245,000 and re-sell it for $265,000; this is good business
C. tell Tom that, in his opinion, the property is easily worth $265,000
A DISTINGUISHING CHARACTER OF OWNING PROPERTY BY LAND TRUST IS THAT A. lower tax assessments usually result B. corporate tax rates are applied to profits C. the identity of the legal owner is kept confidential D. building permits are more easily obtained
C. the identity of the legal owner is kept confidential
