Real Estate Exam
A 30 unit apartment complex rented out units for $800 per month. If the complex was 100% occupied for 3, months, 5 units were vacant for 2 months and 3 units were vacant for 6 months, what would be the annual vacancy rate ? A. 7.78% B. 8.48% C. 11.59% D. 12.48%
A
A broker who wants to receive commission even if the owner sells the property personally should ask for which of the following listings? a. exclusive right to sell b. exclusive agency c. open d. net
A
A buyer emailed their birth date and social security number to a buyer's agent regarding obtaining a loan. The buyer's agent forwarded the email to a listing agent. Who might be liable in this scenario ? A. Buyer's agent only B. Listing agent only C. No one as the buyer's agent has no liability as this was done via email D. The lending institution
A
A commercial property had annual gross income of $63,250 and annual vacancies and operating expenses of $24,360. If the prevailing capitalization rate was 10%, what would be the value ? A. $388,900 B. $630,500 C. $750,800 D. $975,100
A
A house valued at $350,000 will depreciate an average of 3.5% per year. What will be the value after 4 years ? A. 301,000 B. 303,513 C. 325,500 D. 337,750
A
A house valued at $550,000 will depreciate an average of 4.5% per year. What will be the value after 4 years ? A. $451,000 B. $465,000 C. $489,000 D. 495,000
A
A landlord owns and leases out a dozen rentals. Who can the landlord legally deny a space to a tenant? a. when the family size is too large for the unit b. when the tenant has children c. when the tenant is mentally impaired d. when the tenant is physically impaired
A
A licensee lists a property with an exclusive right to sell agreement for 180,000. The licensee knows that the seller has a mortgage on the property of 130,000 and will also have to pay commission and closing costs. A prospective buyer wants to make an offer of 120, 000. What should the licensee do? a. tell the seller that if he accepts the offer he will be losing money b. tell the seller to reject the offer c. let the seller decide on their own whether to accept or reject the offer d. tell the buyer that the seller has equity in the property and would probably accept an offer for less than the list price
A
A licensee was paid $1,200 per month as a fixed salary along with a 2.5% commission on all sales. If the total compensation for the salesperson for the month was $4,500, what were the sales for that month ? A. $132,000 B. $180,000 C. $248,000 D. $553,000
A
A property is under contract to be sold. The buyer is having an inspection done of the property during the due dilligence time period. The inspector is mainly concerned with the: A. structure B. title insurance C. financing D. zoning
A
A property owner can deduct depreciation for tax purposes on a property in which of the following circumstances ? A. When the property is a rental property B. When the property is sold C. When the property owner makes improvements of the property D. When the homeowner takes the 55 and over capital gains exclusion
A
A property that was listed for $120,000 sold for $105,000 with the buyer obtaining on 80% loan. The lender charged a 1% loan origination fee. What was the amount of the loan origination fee? A. 840 B. 1050 C. 1200 D. 1430
A
A purchaser entered into a contract to purchase a home. The purchaser wanted a clause in the contract to protect against the loss of earnest money in the event a loan could not be obtained. Which of the following items would BEST protect the purchaser? a. financing contingency b. listing contingency c. a statement of special arrangements to get the earnest money refunded d. option contingency
A
A real estate purchaser is said to have equitable title when: A. the real estate contract is executed by both buyer and seller B. conveyancing occurs C. the offer is submitted to the seller D. the purchaser gives an earnest deposit
A
A residential property was equipped to handle electrical service of 60 amps. The standard in the rest of the homes in the area was 100 amps. Having only 60 amps causes the home to suffer from: A. Functional obsolescence B. Environmental obsolescence C. Economic depreciation D. Physical depreciation
A
A seller and buyer entered into a land contract for 50,000 whereby the buyer would make monthly payments to the seller over a 5 year period. With this type of arrangement, the buyer would obtain a: a. equitable title b. legal title c. unmarkable title d. cloud on the title
A
A seller and potential buyer enter into an option contract. This type of transaction would give the buyer: A. an opportunity to buy but not the obligation to purchase B. the opportunity and obligation to purchase the property C. the first right to purchase the property if it ever became available for sale D. A variable purchase price and time frame but not the obligation to purchase
A
A seller listed their property for sale and planned on spending $9,000 in putting new carpet to update the home. The licensee told the seller she might want to just put in a carpet allowance of $9,000 thus allowing the buyer to ick out the type of carpet the buyer wanted. This scenario would be referred to as discussing. A. Contributory value B. The market data approach C. The cost approach D. The income approach
A
A seller lists with Broker X. Broker Y sells the property. To whom does the seller owe a commission? A. Broker X B. Broker Y C. Broker X and Broker Y's salesperson D. Broker X and Broker Y
A
A trespass of an improvement is which of the following ? A. Encroachment B. Easement C. License D. Lien
A
AAA Realty had a listing with a seller. BBT Realty sold the property as a sub-agent for the seller. Salesperson K was the salesperson for AAA Realty and salesperson R was the salesperson for BBT Realty. To whom is the commission paid? a. the broker of AAA Realty b. Salesperson K and AAA Realty c. the broker of BBT Realty d. Salesperson of R of BBT Realty
A
According to the Environmental Protection Agency, for any residential property built prior to 1978, disclosure must be given to buyers or renters about the possibility of: A. lead b. mold c. underground storage tanks d. UFFI
A
An abandoned commercial or industrial property suspected of containing toxic waste would be called a: A. brownfield B. greenfield C. grayfield D. blackfield
A
An agent is listing a property for sale that has three owners. The licensee should have: A. all three owners sign a listing agreement B. the owners and the mortgagee sign the listing agreement C. only one of the owners have to sign D. one owner sign all three names to the contract
A
An owner listed a property with only one broker. After the sale, the broker was NOT due a commission. Which type of listing was MOST likely in effect? a. exclusive agency b. Open c. Exclusive right to sell d. net
A
How does a buyer become a client of a broker ? A. By signing an agency agreement with a broker B. By looking at a broker's in-house listings C. By writing a sales contract with a broker D. By looking at other companies listings with a broker
A
In a federally regulated wetlands area, the area between the wetlands and any buildings or development is referred to as: A. A buffer zone B. Condemnation C. A covenant D. A deed restriction
A
One of the purposes of a listing agreement with a seller is to: A. spell out all of the duties and provisions a licensee owes to an owner B. disclose all material defects regarding a listed property C. provide the seller with a list of comparable properties for sale D. make sure financing contingencies are addressed
A
Regarding real estate contracts, which of the following BEST describes an agents responsibilities? a. the agent cannot alter or delete any pre-printed legal information b. the agent can have the broker change the contract when necessary c. the agent can amend the contract when appropriate d. the agent can ignore clauses in the contract that the agent deems unnecessary
A
The right of a defaulting borrower to retain title to a property by satisfying the debt prior to the foreclosure sale is called a. equitable redemption b. statutory redemption c. trustees sale d. remainder rights
A
Which of the following activities would a licensee be able to perform for a client ? A. Only the duties authorized in an agency or brokerage services agreement B. Accepting an offer on a client's behalf C. Canceling a sales contract on behalf of a client D. Advertising in publications the licensee believes will benefit the client even though this goes against the client's wishes
A
Which of the following must be contained in a deed in order for the deed to be valid? a. words of conveyance b. signature of the grantee c. recordation d. description of the personal property included in the sale
A
Which of the following statements best describes a plat? a. a document that records a subdivision on a public record b. a document using meridians and base lines c. a diagram of how buildings are to be constructed d. an instrument showing property borders
A
Which of the following statements is true about a lease? a. it is both a contract and an instrument that conveys an interest in real property b. equitable title is transferred from the landlord to the tenant c. it is void if either the lessor or lessee die d. It is void unless signed by all parties
A
Which of the following statements is true regarding the Federal National Mortgage Association (FNMA) ? A. It is part of the secondary mortgage market B. It is a lending institution under government supervision C. It makes loans for first mortgages only D. It is part of the primary mortgage market
A
Which of the following terms would best be associated with the governing of flood maps? a. Police power b. EPA c. Eminent Domain d. Escheat
A
Which of the following would be a violation of fair housing laws? a. a listed property where the seller refuses to sell due to a buyers national origin b. leasing an owner occupied 1-4plex where the owner refuses to rent to a tenant based on persons religion c. a non-profit religious organization refusing to rent to a person based on religion d. a private club that refuses to rent to anyone other than their own club members
A
Which of the following would nullify a listing agreement a. death of the seller b. death of the salesperson c. bankruptcy of the salesperson d. a counteroffer made by the seller
A
a developer bought a property for a development. What would be the best way for the developer to divide the lots in a brand-new subdivision? a. lot nd block b. metes and bounds c. rectangular survey system d. street addresses
A
a person died intestate. the property would pass according to: a. descent b. distribution c. adverse possession d. avulsion
A
a person owned a condominium and leased it to K for one year. What did this create? a. a leasehold estate b. a time-share c. a tenancy by the entireties d. a conditional fee estate
A
a sales contract was signed between a seller and buyer. If the contract does not contain any other restrictions, this contract: a. can be assigned at any time b. can only be assigned with authorization of the seller c. can only be transferred to someone else after closing d. cannot be transferred under any circumstances as the contract is between this particular seller and buyer
A
a seller and a buyer agreed on the price and terms on the sale of a house. Both seller and buyer signed the sales contract. Before closing, the seller and buyer agreed to change the closing date. Which of the following would both parties need to sign? a. addendum b. assignment c. acknowledgement d. assessment
A
property value for property taxes is determined by: a. assessment b. allocation c. allotment d. accumulation
A
the legal relationship between broker and seller is generllly an: a. special agency b. general agency c. ostensible agency d. universal agency
A
what type of interest does the buyer receive in the property after the seller accepts the offer? a. equitable b. easement c. record d. equity
A
which is a voluntary lien against a person's property? a. mortgage lien b. mechanics lien c. judgement lien d. property tax lien
A
which of the following is true of an adjustable rate mortgage? a. the interest rate can change based upon market indexes agreed to up front b. the interest rate can only change with the borrowers consent c. the interest rate cannot change unless it goes up or down more than 2 % from the original starting interest rate d. the loan cannot be sold on the secondary mortgage market
A
which of the following statements would be true regarding earnest money? a. the amount is negotiable between seller and buyer b. earnest money is required to have a valid and enforceable contract c. the earnest money is normally held by the seller d. earnest money must be in the form of cash, check or money order
A
which of the following types of encumbrances would involve the physical use of property? a. an easement b. a mortgage c. a lien d. a license
A
which of the following would be prorated at closing? a. annual real estate taxes b. earnest money c. inspection fees d. closing fee
A
A broker can share commission money with: a. a friend who gave the broker a referral b. another licensed broker c. a salesperson licensed under another broker d. a loan officer
B
A buyer and seller agreed on the purchase of a property with both signing the sales contract stating that an estimated 68 acres were being purchased. When title work came back, it was discovered that there were only 59 acres of ground owned by the seller. Which of the following statements is true regarding this situation ? A. The buyer must void the contract B. The contract is voidable by the buyer C. The buyer must close because the contract is legally binding on both parties D. The buyer must honor the contract because the 68 acres was an estimate
B
A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the sellers personal property to remain with the house. The personal property would transfer to the buyer under which of the following circumstances? a. if it fit into a particular spot in the house b. If it was included in the contract. c. If it was verbally stated by the listing broker d. If it was verbally agreed to between the seller and buyer.
B
An agent takes a listing on a commercial property. The agent finds a buyer for the property and the buyer and seller both sign a contract for the purchase. Prior to closing, the agent learns that the city plans on putting in a ramp on the back of the property. What should the agent do? a. not disclose to the seller so the seller has no liability b. disclose to the seller so the buyer can be informed c. disclose to the seller and then let the seller determine whether or not to disclose to the buyer d. disclose to the buyer only
B
An agreement has been signed by all parties but the terms ahve NOT been fully performed. Which of the following BEST describes the current status of this agreement? A. Executed contract B. Executory contract C. Implied contract D. Unilateral contract
B
An appraiser should lend most validity to the market data approach on which of the following properties ? A. Oil refinery B. Vacant land C. Gas station D. Hotel
B
Earnest money on a closing statement is shown as a: a. credit to the seller b. credit to the buyer c. charge to the buyer d. charge to the seller
B
Economic life refers to the period: A. of physical wear and tear B. Over which a property may be profitably utilized C. of economic obsolescence D. of functional obsolescence
B
From whom can a broker receive commission money from on real estate transactions a. a residential property manager b. a commercial tenant c. an appraiser d. a lender
B
If a tenant stays over without the landlord's permission, this is called: A. Estate for years B. Estate at sufferance C. Periodic tenancy D. Tenancy at will
B
In a contract for land, the seller would be called the: a. vendee b. vendor c. mortgagor d. mortgagee
B
On an FHA loan, the mortgage insurance ends when: a. the borrower dies b. the loan is paid in full c. the property is sold d. when the property is condemned
B
One year ago, a seller had work performed on their property. Currently, the seller sold the property to a buyer. Just before closing, it was discovered that there existed a judgment against the seller from the work that was done one year ago. Who would be responsible for this judgment lien ? A. Seller and buyer B. Seller C. Broker D. No one, as the judgment would have expired
B
Owner J gave J's housekeeper a life estate in a property. J also stipulated that the property go to J's child when the housekeeper died. J died prior to the housekeeper. J's child is referred to as the: a. life tenant b. remainderman c. grantor d. pur autre vie
B
P owned a property adjacent to their resident. P wanted to deed the property to P's parents with the provision that P would get the property back when the parents died. This would be referred to as: a. life estate in remainder b. life estate in reversion c. dower rights d. curtesy rights
B
Some buyers, in purchasing property, ask the agent how they should take title to the property. The agent should explain: a. the various types of ownership and help the buyers choose which one is best for them b. the various types of ownership and have the buyers consult an attorney c. to the buyers that they must take title to this new property in the same way they owned their previous property d. to the buyers that this type of information would cost the buyers extra money
B
The property management agreement is between the property manager and: a. his/her employees b. the property owner c. the tenants d. the lender
B
The rules and regulations for condo owners are listed in the: a. bylaws and landlord tenant laws b. bylaws and charter c. master deed or declaration d. proprietary lease
B
Utility, scarcity and transferability would MOST relate to which of the following terms? A. Appraisal process B. Value C. Zoning process D. Supply and Demand
B
What are three accepted types of legal descriptions ? A. Recorded plat (lot and block), street address, metes and bounds B. Recorded plat ( lot and block), government survey, metes and bounds C. Government survey, lot and block, street address D. Street address, sectional, metes and bounds
B
What does a person have whocan sign legal papers for another person A. Attorney-in-fact B. Power of attorney C. Ostensible agency D. Attorney at law
B
What is it called when radioactive gases naturally decay? a. UFFI b. Radon gas c. Mold d. Carbon monoxide
B
What must be included in a Metes nd Bounds legal description? a. townships b. a point of beginning c. sections d. meridians and base lines
B
What type of general risk insurance should a real estate licensee obtain if litigation is filed against the licensee for failure to perform or mistakes? a. general liability insurance b. errors and omissions insurance c. property insurance d. product liability insurance
B
When a lease expires, what right is given back to the owner ? A. The right to mortgage the property B. The right of possession C. The right to sell the property D. The right of quiet enjoyment
B
When a property is taken through condemnation, it was a result of: a. the owner dying intestate and having no heirs b. the government exercising the right of eminent domain c. non-payment of taxes by the owner d. a violation of the private deed restrictions by the owner
B
Which of the following entities would hire a licensee to be the broker of a real estate brokerage firm ? A. An association B. A corporation C. EPA D. FIRPTA
B
Which of the following statements best describes "economic life" ? A. Physical wear and tear B. The life that property can be used profitably C. Economic obsolescence D. Functional obsolescence
B
Which of the following statements is true regarding a real estate commission ? A. Maximum commission rates are set by the government B. It is always negotiable between a seller and broker C. It is set by the local Board of REALTORS D. It is set by all of the brokers in a particular area
B
Which of the following would be allowed under fair housing laws ? A. Advertising property is available for sale only to people who live in a specific area B. After rehabbing a property, advertising it is accessible to those with a disability C. Advertising a property is available for sale only to English speaking people D. Trying to pre-sell property to minorities only
B
Which of the following would be commingling? a. putting more than on transaction involving earnest money in an escrow account b. putting escrow money into the general office account c. putting rental money into the escrow account d. refunding earnest money out of the escrow account
B
Which of the following would be protected class under the federal fair housing laws? a. a person 70 years of age b. a person with AIDS c. a college student d. an unmarried couple
B
Who governs real estate transaction accounting records and documents? A. Federal government B. State government C. The local REALTOR association D. The county recorder
B
Why is the annual percentage rate higher than the interest rate? a. because the APR uses a calendar year and interest rate is computed based upon 360 days b. because the APR includes the finance charges the buyer pays in addition to the interest c. because the APR is quoted annually and the interest rate over 30 years d. because the APR includes the interest rate and the brokers commission
B
a buyer makes an offer on a listed property with earnest money accompanying the offer. Prior to the listing agent presenting the offer to the seller, the buyer contacts and listing agent to withdraw the offer. What should the listing agent do? a. present the offer to the seller and have the seller counteroffer to the buyer b. give the earnest money back to the buyer immediately c. apply the earnest money to another transaction in which the buyer might be interested d. obtain the seller's authorization before returning the earnest money to the buyer
B
an estate created when a tenant holds over at the end of a lease term without eh landlord's permission is called: a. periodic estate b. estate at sufferance c. tenancy at will d. estate for years
B
an improvement which crosses over the property line without permission is: a. easement b. encroachment c. license d. right-of-way
B
how long must a licensee keep lead based paint records and contract information regarding a real estate transaction? a. 1 year b. 3 years c. 4 years d. 5 years
B
if a licensee represents a seller only, the licensee would be a: a. duel agent b. single agent c. sub-agent d. limited agent
B
in a real estate transaction, when is the title insurance typically paid? a. monthly along with the principal and interest payments b. one time at closing c. one time at the signing of the sales contract d. one time at the loan application
B
in order for a real estate contract to be valid, it must include a: a. survey b. property description c. description of personal property d. commission
B
unless stated otherwise, an unmarried couple buying property would take title as: a. joint tenants b. tenants in common c. tenancy in the entireties d. severalty
B
what agency is charged with enforcing the Clean Water Act? a. CFPB b. EPA c. CIA d. FDA
B
what authorizes one person to act for another person? a. attorney-in-fact b. power of attorney c. estoppel certificate d. certificate of no defense
B
what is required for a borrower to pay on a 90% conventional loan covered by FNMA guidelines? a. Mortgage life insurance b. private mortgage insurance c. credit life insurance d. business interruption insurance
B
what is the purpose of the recording deed? a. signifies delivery and acceptance b. gives constructive notice c. guarantees the grantee clear title d. guarantees that no liens exist on the property
B
which of the following BEST describes the term "vendee"? a. one who sells or tries to sell b. one who buys or offers to buy c. one who loans or offers to loan d. one who borrows or tries to borrow
B
which of the following agencies is involved in enforcing CERCLA, which prohibits the dumping of hazardous materials on property? a. department of justice b. EPA c. FEMA d. OSHA
B
which of the following mortgages uses both real and personal property as security ? a. chattel b. package c. purchase money d. blanket
B
which of the following statements would best describe a holdover tenant? a. a tenant who signs a lease renewal b. a tenant who stays past the lease expiration without permission c. a tenant who pays double rent becaue of the rent being late d. a tenant who exercises an option to purchase
B
which of the following transactions would be governed by securities laws? a. an adjustable rate mortgage with the interest rate tied to the one year treasury bills b. a broker selling shares in a Real Estate Investment Trust c. The Federal Housing Administration in insuring loans for lenders d. a lending institution selling mortgages to Freddie Mac
B
which of the following types of ownership specifically refers to a married couple with the right of survivorship? a. joint tenants b. tenants by the entirety c. tenants in common d. severalty
B
A commercial tenant installed several items in their leased space in order to more efficiently run their business. Which of the following best describes what happens to the installed items once the lease expires? a. the landlord would be able to keep the installed items as once attached the become part of the real estate. b. the landlord would be able to keep the installed items but only if they paid the tenant fair market value. c. the tenant would be able to remove the installed items as they would be considered trade fixtures. d. the tenant can only remove the installed items with the landlords permission.
C
A commercial tenant pays a fixed base rent plus additional money for expenses. This lease would be considered a: a. gross lease b. ground lease c. net lease d. percentage lease
C
A contract based on misrepresentation of a material fact is: a. illegal b. voidable by either party c. voidable by the misrepresented party d. unenforceable by either party
C
A corporation purchases a piece of real estate. The stockholders do not want to be personally liable on the loan used in connection with the purchase. In order for this to be accomplished, what document would be needed ? A. A security agreement B. A deed of reconveyance C. A non-resource agreement D. A satisfaction release
C
A handicapped person made some reasonable modifications to a rented unit after moving in. Which of the following BEST describes what the handicapped person must do ? A. Pay the landlord for any inconvenience cause the alterations B. Demand the landlord reimburse the tenant for the alterations C. Return the space to the landlord in the original condition found D. Move out if the person could not have full enjoyment of the property
C
A licensee advertises a listed property with the phrase "only 8% down required to buy this house." This would be a violation of which of the following? A. Fair housing laws B. HUD C. TILA - Truth-In-Lending Act D. RESPA
C
A licensee believes that a mortgage interest rates are going to go down in the next 12 months. What type of loan might the licensee suggest to a buyer purchasing a property and obtaining a mortgage ? A. A fixed rate mortgage B. A straight note mortgage C. An adjustable rate mortgage (ARM) D. A graduated payment mortgage
C
A licensee believes that mortgage interest rates are going to go down in the next 12 months. What type of loan might the licensee suggest to a buyer purchasing a property and obtaining a mortgage? A. A fixed rate mortgage B. A straight note mortgage C. An adjustable rate mortgage (ARM) D. A graduated payment mortgage
C
A licensee was showing a buyer residential property for sale. While showing, the licensee told the buyer she might be interested in property in a neighborhood with more people similar to her background. Under fair housing laws, this would most likely be a violation of: a. blockbusting b. redlining c. steering d. puffing
C
A material that was used prior to 1978 that becomes hazardous if friable would be: A. radon gas B. asbestos C. lead based paint D. UFFI
C
A non-profit religious institution owned a building. They wanted to lease out a space in the building. Under fair housing laws, in leasing the space, they could limit the space to people: a. of a particular race b. of a particular national origin c. who are members of their religious institution d. who do not have AIDS
C
A person bought a condo unit. The person acquired homeowners insurance on the unit. Which of the following would be covered under the homeowners insurance policy? a. a person falls in the common areas b. a child falls off their bike riding through the trails in the condo c. a person slips and falls in the kitchen d. zoning changes in the area
C
A person bought a lot for $28,000 and then added improvements in the amount of $150,000. The owner wanted to make a profit of 5% on the lot and 40% on the improvements. What would the sale price have to be ? A. $210,000 B. $228,000 C. $239,400 D. $258,100
C
A person died intestate and had no heirs. Which of the following rights gives the state the right to take the property ? A. Eminent Domain B. Condemnation C. Escheat D. Police Power
C
A person owned a property next to a stream. The owner's rights to use the stream are referred to as: A. dower B. curtesy C. riparian D. navigational
C
A property was purchased for $200,000. The borrower obtained a 95% loan with the lender charging PMI of .78$ What would be the amount for the monthly PMI? A. 95.00 B. 112.50 C. 123.50 D. 130.00
C
A real estate brokerage office suffered from a break-in. The thieves stole all of the brokerage office computers. In order to protect clients of the brokerage, the best practice by the broker would have been to: a. have insurance on the office computers b. have a security system in place c. have all the office computer files backed-up offsite d. not keep any of the clients data on the office computers
C
A sale of interstate real estate securities would be governed by which organization? a. ICC b. CIA c. SEC d. HUD
C
A sale of property being financed that is in a flood-prone area would be required to have: a. homeowners insurance b. a flood endorsement to homeowners insurance c. flood insurance d. a flood insurance rider
C
A seller listed their home for sale with a real estate brokerage company. The seller knows that there is lead based paint on the house. The seller must: A. remove the lead-based paint prior to closing B. have the Environmental Protection Agency certify the house as being habitable prior to closing C. disclose this fact to any buyer D. only disclose about the lead-based paint if the buyer asks
C
A seller tells the listing agent about a roof leak that exists on the structure being sold. After the property goes under contract, the buyer has an inspection of the structure. The inspector did not mention anything about a roof leak on the structure. In this scenario, the listing agent should: A. Ignore the roof leak as the listing agent is not a professional inspector B. Only disclose the roof leak if the buyer specifically asks C. still disclose about the roof leak D. suggest the buyer obtain title insurance
C
A seller tells the listing agent about a roof leak that exists on the structure being sold. After the property goes under contract, the buyer has an inspection of the structure. The inspector did not mention anything about a roof leak on the structure. In this scenario, the listing agent should: A. Ignore the roof leak as the listing agent is not a professional inspector B. Only disclose the roof leak if the buyer specifically asks C. Still disclose about the roof leak D. Suggest the buyer obtain title insurance
C
A tenant had paid a landlord a deposit of $1,800 on a rental property which was to be a penalty amount if the tenant terminated the agreement prior to expiration. The lease stated that the tenant would pay a prorated amount of rent if the tenant left early. The rent of $900 per month was required ot be prepaid on the first of each month. The tenant notified the landlord he was terminating the lease early and leaving on April 20th. The amount of money the landlord would be entitled to would be: A. $1,800 B. $2,100 C. $2,400 D. $2,700
C
A tenant rents a property "as is". For which of the following would the tenant be responsible? a. mold b. heating problems c. cosmetic upgrades d. roof repairs
C
An apartment building has a "no pets" policy. A visually impaired person with a seeing eye dog has applied for an apartment. Under the federal fair housing law, which of the following may an owner do ? A. Enforce the "no pets" policy and refuse to rent to the applicant B. Allow the rental of the unit but increase the customary security deposit C. Permit the rental of the unit but charge the person for any damages caused by the seeing eye dog D. Require the person to house the dog outside the unit itself
C
An appraiser, in appraising a residential property, notices that there has been an increase in sales of houses in the area. Which valuation approach would be best for the appraiser to use in estimating the value of the residential property A. Cost B. Income C. Direct Sales Comparison (Market Data Approach) D. Gross Rent Multiplier
C
Construction plans are submitted to a municipality before a building permit is issued in order to: A. Keep nonconforming uses apart B. Keep others from building like properties C. Determine if the building complies with local regulations D. Determine if the owner has sufficient finances to complete the project
C
Encouraging a homeowner to sell al property becaue minority group families are moving into the neighborhood is: a. redlining b. steering c. blockbusting d. puffing
C
For which of the following real estate properties would the American with Disabilities Act apply? a. a single family home b. a residential 4plex c. a hotel d. a townhouse
C
Four parties take title to a property under tenancy-in-common. It is omitted on the deed what of ownership each party has. Which of the following would be correct in this situation? a. all 4 parties would be considered to take title as joint tenants b. all 4 parties must be individuals, not corporate entities, to take title as tenants in common c. all 4 parties would be considered to have a one forth ownership d. they cannot take title in this way without specifying ownership percentages on the deed.
C
From which of the following persons may a salesperson lawfully receive a commission ? A. Seller B. MLS C. The salesperson's broker D. A cooperating broker
C
From whom does a salesperson receive commission? a. owner b. multiple listing service (MLS) c. the salespersons own broker d. a cooperating broker
C
G buys a vacant lot for $28,000 and then builds a home for a cost of $250,000. If G wants to make profit of 5% on the lot and 30% on the home, the total selling price MUST be: A. 278,000 B. 291,000 C. 354,400 D. 375,300
C
If a person gets injured while on the property of a real estate brokerage, what type of insurance would be needed by the real estate brokerage company to be protected? a. property insurance b. errors and omissions insurance c. general liability insurance d. business interruption insurance
C
In appraising a property, which of the following items would have the greatest impact on value ? A. Method of determining square footage B. Method of compensation for the appraiser C. Local economic conditions D. The assessed valuation
C
Knowingly misrepresenting a material fact in a deliberate way so that someone else suffers a loss in attempt to make money is: A. a mistake B. negligent misrepresentation C. fraudulent misrepresentation D. collusion
C
Regarding the closing disclosure, which of the following would need to be changed if the closing date is changed ? A. The brokerage commission earned on the transaction B. The amount of the loan origination fee C. The prepaid interest that would be due D. The type of deed that would be used
C
Regarding the closing disclosure, which of the following would need to be changed if the closing date is changed? A. The brokerage commission earned on the transaction B. The amount of the loan origination fee C. The prepaid interest that would be due D. The type of deed that would be used
C
Taxes were $1,456 on a property that sold and then closed on April 5th. What would be the amount for the tax proration ? A. $235 B. $314 C. $384 D. $1,072
C
The clause in a lease that allows the rent to increase is a: a. acceleration clause b. percentage clause c. escalator clause d. contingency clause
C
Under a listing agreement, who would be the client? a. the salesperson b. the broker c. the seller d. the buyer
C
Under the Federal Fair Housing Law, which of the following qualifies as a protected class under the definition of familial status? a. a person 55 or older b. a person not currently married c. a child under the age of 18 d. a family with dependent children regardless of age
C
Utility, scarcity, demand and transferability all deal with the concept of: A. depreciation B. substitution C. property value D. conformity
C
What interest does a condo owner have in common with other condo owners? a. divided interest in the common properties b. undivided interest in the limited common properties c. undivided interest in the common areas d. undivided interest in the master deed plan
C
When a contract is signed between a buyer and a seller, the buyer is known to have received equitable title upon the happening of which of the following events? a. buyer making the offer b. recording of the deed c. signing of the agreement by the buyer and seller d. conveyance of the deed
C
Which best describes the cost approach to value ? A. It takes into account vacancy factors from year to year B. It considers future income generated versus current net income C. It takes the cost of new improvements minus depreciation plus the current land value D. It takes the present value of improvements plus the current land value
C
Which of the following appraches is the MOST reliable in appraising a single-family residence ? A. Income B. Cost C. Market data D. Ad valorem
C
Which of the following items would be an example of economic obsolescence ? A. Peeling paint B. A window unit air conditioner C. Air pollution D. An outhouse
C
Which of the following statements best describes the concept of seizin? a. the grantor warrants against no emcumbrances b. the grantor promises to provide documents in the future c. the grantor claims ownership of the property d. the grantor conveys to the grantee with no third-party claims of ownership
C
Which of the following statements would be true regarding an appraisal ? A. A license is never required to do appraisals B. Loans are always based on the higher of the sale price or appraisal C. It is required on all federally insured loans D. A real estate licensee cannot also be an appraiser at the same time
C
Which of the following statements would be true regarding an appraisal ? A. A license is never required to do appraisals B. Loans are always based on the higher of the sale price or appraisal C. It is required on all federally insured loans D. A real estate licensee cannot also be an appraiser at the same time
C
Which of the following would be a best for a salesperson to look at in estimating a list price for a seller ? A. What the owner originally paid for the property B. The local county tax records C. Comparable sold properties in the neighborhood D. Comparable sold properties in a nearby neighborhood
C
Which of the following would be a violation of the Sherman Anti-Trust Laws ? A. A broker is still owed a commission if the property is sold to the broker's own buyer B. A broker telling a seller the company charges a 6% commission C. Telling a seller that the commission rate charged is established by the multiple listing service (MLS) D. Charging a $1,000 minimum retainer fee
C
Which of the following would be considered misrepresentation? a. a listing salesperson knows of an underground storage tank but does not disclose this to the buyer b. a broker representing a buyer willfully does not disclose his clients financial inability to purchase a property c. a salesperson mistakenly forgot to disclose something that was on the MLS property fact sheet d. a broker willfully doesn't disclose material facts that are noted in the MLS
C
Which of the following would have the greatest influence on appraisal value? A. Original price owner paid for the property B. Assessed value of the property C. Local economic conditions D. The average of local comparable sold properties
C
Why would a property manager have a reserve account ? A. To have extra funds available if tenants did not pay their rent on time B. In case vacancies and allowances increased, the manager would not have to raise rent, thus hurting current tenants C. In case any long-life items deteriorated, the manager would not have to increase the debt service D. In case the taxes and insurance increased, the manager would not have to raise the rent on the current tenants
C
a blanket mortgage is usually designed to cover: a. both real estate and personal property b. more than one transaction c. more than one piece of property d. loans over an extended time period
C
a buyer assumed a sellers loan without written authorization of the lender. Which of the following mortgage clauses would allow the lender to institute a foreclosure action? a. defeasement b. pre-payment c. due-on-sale d. subordination
C
a licensee is showing an older couple properties that are senior housing units only. The licensee thinks that the couple does not want to be around children. Under the steering concept, this would be an example of a. opinionating b. assimilating c. stereotyping d. persevering
C
a neighbor had encroached on a property but the owner did not complain within the legally specified time period. The neighbor would obtain rights to the land by: a. license b. easement by necessity c. easement by prescription d. easement by gross
C
a neighbor was violating a private deed restriction. Who can force the neighbor to comply with the deed restriction? a. the homeowners association b. the president of the homeowners association c. the courts d. the neighbors in the subdivision that have to comply with the restriction
C
in order to have joint tenancy, there must be the unities of title, interest, possession and... a. right of survivorship b. curtesy rights c time of acquisition d. equal financing
C
the money for an FHA loan is secured from: a. any government agency b. federal housing agency c. FHA approved lending institution d. FDIC
C
what is a schedule of exceptions in a title policy? a. encumbrances b. tax liens c. list of things not insured in the policy d. defects
C
what is the purpose of a borrower paying for private mortgage insurance? a. to protect the seller in case the transaction did not close b. to protect the borrowers interest c. to insure the lender in case of default d. to insure the lender in case of a casualty loss
C
which of the following activities would be a violation of the Sherman Anti-Trust Laws? a. a broker charging a commission of 6% for certain type properties b. a broker charging a minimum fee of 1000 c. all the brokers in an area agreeing to set a common commission rate of 6% d. a broker charging a non-refundable retainer fee to a buyer client
C
which of the following normally triggers a due-on-sale or alienation clause? a. failure to pay mortgage b. failure to pay taxes c. sale or assignment of the mortgaged property d. cancellation of the insurance
C
which of the following would title insurance cover in case of a loss? a. errors and omissions by a surveyor b. zoning issues c. recorded documents only d. errors and omissions by a home inspector
C
A broker get a commission regardless of who sells the property. What type of listing is this ? A. Open listing B. Net listing C. Exclusive agency listing D. Exclusive right to sell listing
D
A buyer and a seller entered into an agreement to purchase and sell a property. Prior to the closing the buyer wished to transfer the purchase right to a 3rd party. In order for the transfer to take place, the buyer must initiate an: a. anticipatory agreement b. addendum c. assumption d. assignment
D
A deed which states that a person transfers his rights, if any, to the property is : a. bargain and sale deed b. grant deed c. special warranty deed d. quitclaim deed
D
A developer built residential condominiums in an area zoned for both residential and commercial uses. One of the condominium owners wanted to run a business out of their unit but the deed restrictions for the condominium complex would not allow any commercial activity. The condominium owner could: A. Obtain a variance from the zoning board to allow the commercial activity B. Begin the business anyway since the commercial zoning is already in place C. Petition the neighbors to allow a spot zoning D. Not do the commercial activity as the deed restrictions prohibited this type of use
D
A licensed agent was a property manager for an apartment complex. In screening tenants, which of the following persons could the property manager refuse to rent to based on fair housing laws? a. a single person who was pregnant b. a person who was asian c. a person in a drug rehab program d. a person currently addicted to cocaine
D
A licensee had a property listed for sale. The listing agent then discovered a latent defect existed on the property. In showing this property to a buyer customer, the listing agent should: a. only disclose the latent defect if the buyer asks b. call the broker for help c. advise the buyer to have a property inspection done d. disclose the latent defect to the buyer
D
A licensee listed a property for sale with the listing eventually expiring. The seller relists with a different brokerage company. In the meantime, the original licensee now has a buyer client who wants to make an offer on the listed property. Regarding information the licensee obtained during the original listing time period, that information must keep confidential: A. Until the end of the current buyer agency agreement B. Until the closing date assuming a sales contract was signed by all parties C. Unless the licensee enters into a buyer agency agreement, thus owing full disclosure to a new buyer client D. forever
D
A licensee lists a seller's property for sale. The licensee finds a buyer who wants to make an offer on the property. Which of the following services would be an item outside the scope of a listing agent's duties ? A. Giving the buyer information on comparable properties for sale B. Negotiating on behalf of the seller C. Helping the seller prepare a counteroffer D. Accepting an offer on behalf of the seller
D
A listing agreement read that the chandlier in the home does not stay with the property. A buyer, however, wants to make an offer on the listed property with the chandelier staying with the property. What is the best way for the buyer to make sure the chandelier stays with the property ? A. Ask the seller verbally to leave the chandelier B. Discuss leaving the chandelier with the listing agent C. Itemize the chandelier in an updated listing agreement D. Include the chandelier staying as part of the sales contact
D
A property manager informs the property owner that the property being leased has a stucco problem. The manager gives the owner the name of only one contractor to contract regarding fixing the problem. The owner hires the one contractor who does not adequately fix the stucco problem. Who may be liable in this situation ? A. The property manager and contractor only B. The property manager only C. The contractor only D. The property owner, property manager and contractor
D
A property was in an area with a lot of smoke and soot from nearby factories. It suffers from: A. Physical depreciation B. Functional obsolescence C. Locational depreciation D. Economic (external) obsolescence
D
A property was purchased for $178,000. Over the past three years, the homes in this area had appreciated at 8% per year. If the current trend continues, what will this new property be worth at the end of the next three years ? A. $198,467 B. $203,568 C. $220,720 D. $224,229
D
A prospective buyer wanted to have the right to purchase a home at a set price within the next 90 days but did not want to be obligated to purchase it. Which of the following documents would allow the buyer to do this? a. quitclaim deed b. estoppel c. right of first refusal d. option
D
A salesperson has scheduled a listing appointment with a seller. Prior to the appointment, the salesperson gathers information in the area where the property is located concerning recently sold properties, current listing and expired listings. This information would be refereed to as a(n): A. appraisal B. short sale analysis C. sales statistical report D. competitive market analysis
D
A salesperson who wanted to be an independent contractor for a broker would insist on which of the following? a. vacation time b. withholding of taxes out of their paycheck c. payment of salary plus commission d. not having defined hours to work
D
A seller lists their home with a real estate broker. Under the fair housing laws, the broker can refuse to show the property to: a. a family with two children under the age of 18 b. a person because of their national origin c. a person because of their religion d. people over age 70
D
A verbal sales contract must be put in writing to be enforceable due to the: A. state license laws B. statute of limitations C. state Real Estate Commission D. statute of frauds
D
An apartment was sold to a new owner with several of the leases still in effect. Which statement BEST describes what happens to the leases? a. the carryover tenants will be considered tenants in sufferance b. the new owner must release all the tenants from their obligations c. the leases must be renewed when they expire d. the new owner must honor the leases in effect
D
An owner decided not to list their property for sale with a broker but rather decided to be a for-sale-by-owner, in advertising, discriminated against buyers based on national origin. Which of the following statements best describes this situation ? A. The owner would be exempt from the fair housing requirements for 30 days B. The owner would be exempt from the fair housing requirements for 60 days C. The owner would be exempt from the fair housing laws as a broker as not used in selling the property D. The owner would not be exempt as fair housing laws apply to all residential sales regarding advertising
D
Contracts must be in writing under the Statute of Frauds in order to make the contract: a. a legal contract b. voidable c. executable d. a legal enforceable contract
D
Familial status under federal fair housing laws would best be described by which of the following ? A. Married childless couple B. Unmarried childless couple C. A couple over the age of 62 D. Families with minor children
D
In an effort to protect the public, the CERCLA law was passed dealing primarily with: a. asbestos b. stigmatized property c. radon gas d. hazardous waste
D
In which of the following circumstances would be competitive market analysis be preferable to use over an apprisal ? A. In estimating the value on behalf of the mortgage company making the loan B. When trying to estimate the value in order to get private mortgage insurance (PMI) dropped from the monthly mortgage C. In estimating the value when a person is trying to refinance the mortgage D. In trying to estimate a list price for a seller of a home in a subdivision
D
In which of the following situations would one possibility file a suit to partition? a. a tenant at sufferance b. an estate for years c. ownership in severalty d. co-owners with joint tenancy
D
S owns a property and lists the property for sale with a broker. The broker finds a buyer who makes an offer on the property. S is considered to be the: A. grantor B. grantee C. offeror D. offeree
D
Some undeveloped real estate measured 1,980 ft. by 1,320 ft. allowing 16 2/3% of this land for streets and parks. How many 1/3-acre tracts of land could be made from this parcel? A. 9.88 B. 29.64 C. 50.00 D. 150.00
D
The right of a person to regain title to property after paying all-debts is known as : A. Release B. Reversion C. Remainder D. Redemption
D
The state of government can take property that has been abandoned by the owner through what right? a. eminent domain b. taxation c. police power d. escheat
D
The type mortgage where the lender would advance additional funds to a borrower after the principal balance has been reduced is called: A. wraparound mortgage B. package mortgage C. open mortgage D. open end mortgage
D
The type mortgage where the lender would advance additional funds to a borrower after the principal balance has been reduced is called: A. wraparound mortgage B. package mortgage C. open mortgage D. open end mortgage
D
Under fair housing laws, which of the following would a landlord who owns an apartment complex be required to do? a. make all units accessible for disabled persons b. waive the security deposit for any persons with a handicap c. refuse to show a handicapped tenant a unit if the landlord thinks it might be harmful to the handicapped person d. make reasonable accommodations for a person in a wheelchair
D
When property is taken for public improvements from an unwilling owner, this is referred to be as: A. police power B. taxation C. escheat D. eminent domain
D
When selling real estate securities, the federal disclosure and anti-fraud provision would apply to: A. seller only B. broker only C. buyer only D. seller and broker only
D
Which of the following constitutes illegal commingling by a licensee ? A. Salesperson deposits earnest money into a broker's trust account B. Broker deposits commercial rent receipts from a property management contract C. Salesperson deposits residential rental money into the trust account D. Broker deposits payroll funds into the trust account
D
Which of the following creates value ? a. An appraiser doing an appraisal. B. A broker doing a broker price opinion (BPO) C. A lender requiring an FHA appraiser on a property purchased through FHA financing D. The price and terms for which a seller and buyer agree on
D
Which of the following persons makes the final decision on the list price? a. appraiser b. salesperson c. broker d. owner
D
Which of the following statements would be true regarding a condominium ? A. Individual condominium owners acquire a stock in the condominium development B. Individual owners do NOT have to carry insurance on their units as this is covered with an umbrella policy by the developer C. Individual owners acquire a life estate to their units D. The common areas are owned as tenants-in-common
D
Which of the following would be true regarding Truth-in-Lending laws or Regulation Z ? A. It sets the maximum interest rate that lenders can charge B. It sets the maximum closing costs allowed to be charged C. It limits the amount of prepaid taxes and insurance that can be collected at closing D. Its purpose is to disclose the true costs of financing
D
Who is responsible for making sure fair housing posters are available for delivery to real estate offices? a. CIA b. OSHA c. FBI d. HUD
D
With a due dilligence clause in a contract, which of the following would be true? a. the seller must repair any items revealed by the inspection b. the seller must pay for any re-inspection after repairs are made c. the buyer can automatically extend the closing date if any adverse material conditions are discovered d. the buyer can cancel the contract if inspections turn up any adverse material conditions.
D
Y offers X 60,000 for x's property. Which of the following terms BEST describes the role of X? a. lessor b. Lessee c. Offeror d. Offeree
D
a developer bought a large tract of land and mortgaged the entire property. The developer then subdivided the land with intent of selling lots one at a time. which of the following statements BEST describes how this is accomplished? a. the entire mortgage must be paid in full before the developer can sell off one of the lots b. The developer can automatically sell one of the lots without affecting the current mortgage c. a buyer would have to agree to be liable for a prorated amount of the current mortgage d. the mortgagee may release the mortgage lien on the one lot sold if an agreed amount of money is paid to the lender by the developer
D
a licensee listed a house for sale. The house had real estate taxes of 5000. However, due to the homeowners disability, the taxes had been reduced to 4000. When the property was sold, the licensee failed to mention to the buyer that the real estate taxes might go up. This would be considered to be... a. gross negligence b. puffing c. a void contract d. misrepresentation
D
a mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment, is called a. prepayment b. subordination c. defeasance d. acceleration
D
a property listed for sale contained asbestos insulation around pipes in the basements. The best way to deal with the asbestos problem would be to: a. remove the asbestos b. fumigate c. use a procedure called capping d. encapsulate
D
a seller and buyer agreed on the sale and purchase of a house. As part of the agreement, the buyer was to take over liability for the sellers existing loan as well as the payments. This type of arrangement would be called a. subordination clause b. alienation clause c. subject to d. loan assumption
D
an agreement whereby a person is hired to investigate potential tenants, collect rent and furnish monthly financial statements for an owner is called a: a. lease b. listing agreement c. customer/client agreement d. property management agreement
D
what is the purpose of a private deed restriction? a. to control the use of a property for a max of 25 years b. to control the zoning of the property in the future c. to control ownership of property in the future d. to control or limit permitted uses of the property
D
which of the following buys mortgages in the secondary market? a. federal reserve b. department of veterans affairs c federal housing administration d. federal national mortgage association
D
which of the following items in an advertisement would be a trigger term that would require disclosure of all financing terms? a. generous terms b. payments less than rent c. low assumption d. assume an 8% loan
D
which of the following must sign a deed in order for it to be valid? a. grantee b. settlement clerk c. grantee and grantor d. grantor
D
which of the following statements would be true regarding a VA loan? a. the buyer must be currently active military b. the buyer must have a down payment of at least 5% c. the buyer can use the loan for the acquisition of a rental property d. the buyer must live in the property
D
which of the following would make a property suspected of having environmental contamination? a. a crack in the stucco on the exterior of a property b. standing water in the crawl space c. basement with several major cracks d. discolored soil near an underground storage tank
D
A commercial tenant's lease for a seafood store was about to expire. The tenant began dismantling display cases that the tenant had originally installed. The owner of the property informed the tenant that the tenant could not dismantle the display cases. Which of the following statements is correct concerning this situation? A. The tenant would be able to take the cases only if the tenant paid the owner for the fair market value of the cases B. The tenant would be able to take the cases and would not have to pay the owner for the fair market value of the cases C. The owner would be able to keep the cases only if the owner paid the tenant for the fair market value of the cases D. The owner would be able to keep the cases and would not have to pay the tenant for the fair market value of the cases
B
A competitive market analysis (CMA) would best be used for which of the following circumstances ? A. Determining the value of a property being taken through eminent domain proceedings B. Determining a list price for a relocation property C. A lender verifying value before refinancing a loan D. Ascertaining value for the donation of property for a charity
B
A decision to replace a 2-family structure with a commercial building would be an example of: A. obtaining a higher selling price B. highest and best use C. police power D. IRS regulations
B
A lender would not loan on properties in certain areas due to the ethnic makeup of the areas. This is called: a. blockbusting b. redlining c. steering d. panic lending
B
A licensee is in receipt of an executed offer to purchase contract. To whom should the licensee give the contract ? A. The principal broker B. The title company C. The real estate commission D. The company attorney
B
A licensee is meeting a client at the brokerage office in order to sign a contract. Upon arriving at the office, the licensee notices a sway in the clients step as well as a strong odor of alcohol. If the client signs the contract, this contract would be considered: a. void b. Voidable c. unenforceable d. unassignable
B
A licensee took earnest money and put it in his personal bank account. This would be: A. legal and considered commingling B. illegal and considered commingling C. an assignment D. rescission
B
A listing agent is showing the listed property to a prospective buyer. The buyer tells the listing agent that a favorable zoning is coming with regard to the listed property. What should the listing agent do ? A. Call the broker for help B. Tell the seller because of the fiduciary obligation to the seller C. Don't tell the seller as this violated confidentiality to the buyer D. Don't tell anyone as the buyer could sue the agent for damages if the information was disclosed
B
A property in a low-lying area with high humidity could be susceptible to which of the following problems? a. radon gas b. mold c. lead based paint d. UFFI
B
A property owner paid off their mortgage on a property. 10 years later the owner wanted to sell the property. A title search, however, still showed a mortgage on the property. Regarding this scenario, which of the following would be correct ? A. The property can be transferred without any issues as the statute of limitations would have run out from 10 years ago B. This property would have a cloud on title C. As long as the buyer purchases title insurance the transaction can close without any issues D. The seller would need to purchase additional title insurance in order to close
B
A property with a sale price of $1,000,000 had earnest money of $50,000 which the listing broker deposited in the escrow account. During the 3-month due diligence time period, the listing broker transferred $2,500 from the escrow account to the broker's personal account to pay some bills. 2 weeks later the broker wrote a $2,500 reimbursement check from the personal account back into the escrow account. This action by the broker would be called: A. an assignment B. conversion C. commingling D. A novation
B
A property with a total value of $40,000 was appraised for tax purposes at 25% of market value. If the tax rate was $3 per $100 of the appraised tax value, how much was owed ? A. 100 B. 300 C. 600 D. 1,200
B
A real estate transaction closed with personal property included as part of the sale. At closing, in addition to the deed, what document would be needed ?
B
A residential property was worth $75,000 based on comparable properties and $85,000 based on reproduction cost. The property was sold at a bankruptcy sale for $70,000. What would be the fair market value of this property ? A. $70,000 B. $75,000 C. $80,000 D. $85,000
B
A seller sold a property to a buyer. The property contained built-in bookshelves. Which statement is true regarding the built-in bookshelves ? A. They must be transferred through a bill of sale B. They stay with the property as they are permanently attached C. They could be removed only if the removal did not cause permanent damage to the property D. They could be sold separately as bookshelves are classified as personal property
B
A tax assessment for the addition of a sidewalk in a neighborhood would be referred to as a(n): A. Ad valorem tax B. Special assessment tax C. Servitude D. Encroachment
B
A veteran buyer was buying a duplex using VA eligibility. Which of the following statements is true regarding this transaction? A. The veteran can use the eligibility just once in a lifetime B. The veteran must prove owner occupancy of one of the properties C. Veterans cannot purchase a duplex with VA eligibility D. It must be shown that the expenses will be less than the income of the rental side of the duplex
B
A written listing agreement between a seller and a broker is considered to be A. an implied contract B. an employment contract C. an exclusive agency agreement D. a unilateral agreement to put it into the MLS
B
An adverse event that has taken place on a property is referred to as an: a. cloudy title b. Stigmatized property c. traumatized property d. unmarketable property
B
A real estate purchaser is said to have equitable title when
The real estate contract is executed by both buyer and seller
