Real Estate Test Questions

A buyer purchased a $200,000 house obtaining a 90% loan as well as putting up $5,000 in earnest money. The lender charged the buyer 2 discount points, a 1% loan origination fee and a lenders title insurance fee of $500. How much must the buyer pay for the loan origination fee? A. $500 B. $1,800 C. $2,000 D. $3,600

$1,800 Page 75

A broker sells property receiving $8400 by charging a 6% commission. What was the sale price? A. $140,000 B. $157,000 C. $182,000 D. $302,000

A $140,000

Which of the following statements is true regarding short sale?

A disadvantage is that the defaulting borrower might receive a 1099 form to incur tax liability.

Ann Carr Planted a rose garden on the corner of Mrs, Bairds property. Mrs. Baird was home-bound and never left her house. Mrs. Baird never knew that Ann Carr had planted a rose garden on her property. The statutory period had elapsed and Ann Carr claimed the rose garden. Would Ann Carr have a good chance of getting right to an easement by prescription? A. Yes, because she had made open use of the property B. Yes, because she made improvements that would not have been made otherwise C. No, because Mrs. Baird did not know of the rose garden D. No, because no improvements had been made to the property.

A. Yes because she had made open use of the property.

A buyer purchased a property for $60,000 putting 15% down and paying two discount points. How much in dollars were the points? A. $1,020 B. $1,200 C. $1,320 D. $1,500

A. $1,202

A property was purchased for $43,950 with an sassed value of $39,950. If he tax rate was $3 per $1000. What were the annual taxes? A. $119.85 B. $131.85 C. $157.98 D. $180.00

A. $119.85 Check on page 45 in book

A transaction for Real Estate closed on June 15. The buyers loan was for $90,000 at 7% interest the lender charged interest through the end of the month. The buyer also paid to discount points and a 1.5% loan origination fee. The seller paid $450 for a home warranty protection plan that was $600 for the title insurance. What was the amount of prepaid interest paid by the buyer? A. $280 B. $300 C. $320 D. $340

A. $280

A buyer purchased a property for $100,000 obtaining an 80% loan to value ratio. The appraisal came in at $80,000. What would be the down payment? A. $12,800 B. $16,000 C. $19,200 D. $36,000

A. $36,000 Page 74

A property sold for $230,000, was appraised at $250,000 and has an assessed value of $220,000. If the property has a .2% tax rate, how much were the real estate taxes for the year? A. $440 B. $460 C. $500 D. $540

A. $440

A buyer bought a property for $60,000 obtaining a 90% loan. The lender had an appraisal done which came in at $50,000. If the lender charged 1 1/2 discount points, how much were the points? A. $783 B. $900 C. $1,200 D. $1,435

A. $783

A seller listed the property with a brokerage for $350,000 at a 6% commission rate. A licensee with the brokerage company sold the property for $325,000. The brokerage company paid the licensee 55% of the total commission. How much commission money was left for the brokerage company to keep? A. $8775 B. $9450 C. $10,725 D. $11,550

A. $8,775

A buyer purchased a property for $200,000. The buyer obtaining 90% loan for 30 years at 4% interest. If the payment factor was $4.77. The monthly mortgage payment would be: A. $858.60 B. $901.80 C. $978.20 D. $1100.50

A. $858.60

A buyer purchased a property for $200,000. The buyer obtained a 90% loan for 30 years at 4% interest. If the payment factor was $4.77. The monthly mortgage payment would be: A. $858.60 B. $901.80 C. $978.20 D. $1,100.50

A. $858.60 Page 64

How many CORE hours of continuing education does a licensee need for renewal every two years? A. 3 B. 6 C. 9 D. 12

A. 3

What is the main difference between a freehold estate and a non-freehold estate/ A. A freehold estate always involves ownership B. A freehold estate ends when a life estate terminates C. A freehold estate is always inheritable D. A freehold estate is for a fixed period of time

A. A freehold estate always involves ownership

What information must be in a written dual agency agreement between the seller, buyer, and broker? A. All written terms regarding paying of commission B. The total percentage of commission C. Written disclosure regarding commission to seller only D. Written disclosure regarding commission to buyer only

A. All written terms regarding paying of commission

What information must be in written dual agency agreement between the seller, buyer, and the broker? A. All written terms regarding paying of commissions B. The total percentage of commission C. Written disclosure regarding commission to seller only D. Written disclosure regarding commission to buyer only

A. All written terms regarding paying os commission

Which of the following would be allowed under Missouri state license law? A Allowing a sales person to deposit earnest money on behalf of the broker B. Allowing a sales person to close on a transaction without broker supervision C. Depositing earnest money into the brokers business account D. Allowing a broker to receive interest earned on a brokerage escrow account without written consent of all parties to the contract

A. Allowing a salesperson to deposit earnest money on behalf of the broker

A city wanted to take land as the space was needed to install a cloverleaf, Allowing easier access to an interstate highway. The owner of the property refused to sell to the city. As a result of this, the city started the process of acquiring the property against the owners of wishes. This process is referred to as: A. Condemnation B. Eminent domain C. Escheat D. Police power

A. Condemnation

A developer would like to restrict the usage of the land in a particular development. You would do this through a: A. Covenant in the deed B. City restrictions C. Deed of trust D. Mortgage

A. Covenant in the deed

Which of the following entities would be part of the secondary mortgage market? A. Federal National Mortgage Association (FNMA) B. Savings and loan C. Commercial bank D. Mortgage banker

A. Federal National Mortgage Association (FNMA)

An agent wanting to represent both sides of the transaction and be dual agent would need to: A. Have written informed consent from both parties B. Have payment from both parties C. Make sure both parties see in attorney D. Make sure both parties receive an agency brochure

A. Have a written informed consent from both parties

A branch office of a principal real estate company must: A. Have all business overseen by either a broker-salesperson, broker-partner, broker-officer or broker associate B. Have all business overseen by a broker only C. Have all business overseen by a sales person that is in daily contact with a broker D. Be managed by the principal broker

A. Have all business overseen by either a broker-salesperson, broker-partner, -broker officer, broker associate

A branch office of a principal real estate company must: A. Have all business overseen by either a broker-salesperson, broker-partner, broker-officer, or a broker associate B. Have all business overseen by a broker only C. Have all business overseen by a salesperson that is in daily contact with a broker D. Be managed by the principal broker

A. Have all business overseen by either a broker-salesperson, broker-partner, broker-officer, or a broker associate

How long does a salesperson have to deliver earnest money to the broker? A. Immediately B. 2 banking days C. 5 banking days D. 10 banking days

A. Immediately

Two unmarried people wanted to purchase property with right of survivorship. What ownership form should they choose? A. Joint Tenancy B. Tenancy in common C. Tenancy in the entirety D. Community Property

A. Joint Tenancy

Under TILA, what would be allowed to be advertised by itself? A. No down payment B. Interest payment C. Monthly loan payment

A. No down payment

The government telling people how to use their property in order to protect the public would be an example of: A. Police power B. Taxation C. Escheat D. Eminent Domain

A. Police power

A person purchased a property and obtained a 90% loan. The monthly payments on the debt service would apply to: A. Principal and interest B. Principal, interest, taxes and insurance C. Principal only D. Interest only

A. Principal and interest

A written document that is used to promise repayment of a loan is called a: A promissory note B. Mortgage C. Deed D. Title

A. Promissory note

Which is true regarding the responsibilities of the Administrative Hearing Commission (AHC)? A. The MREC must send all complaints to the AHC B. The MREC may revoke the license of a person if it believes a legitimate complaint has been made without further hearings from any other body C. The AHC must find the licensee guilty before the MREC can revoke the license D. The AHC makes no recommendations to the MREC regarding punishment of licensees

A. The MREC must send all complaints to the AHC

What is the primary purpose of Chapter 339 of the Missouri statues? A. To protect the public by regulating the actions of brokers and salespersons B. To protect salesperson from actions caused by dishonest brokers

A. To protect the public by regulating the actions of brokers and salespersons

A salesperson sells a listed property to his fiancé for full price. He tells the seller he is an agent but does not tell the seller that he was engaged to the buyer. Did he violate the law? A. Yes, this is a violation of the fiduciary relationship because he did not reveal his future interest B. Yes, an agent cannot buy listed property C. No, he does not have to reveal his marital intentions D. No, he only has to reveal he is a salesperson

A. Yes, this is a violations of the fiduciary relationship because he did not reveal his future interest

An owner built a freestanding bookshelf to fit in an alcove in the basement. If wish to sell property, the bookshelf would be:

Real property

A broker lists a property for sale on an exclusive right to sell basis. Per the sellers instructions, the broker advertises the property as a nice 3 bedroom house - call 777-7777 for more information as a 24 hour recording is available. This would be: A. A violation as the advertisement must contain the brokerage name and phone number B. A violation as the advertisement did not contain the brokerage name C. Allowed as a broker must follow the principals instructions D. Allowed as the brokerage phone number was in the advertisement

B. A violation as the advertisement did not contain brokerage name

A broker lists a property for sale on an exclusive right to sell basis. Per the seller instructions, the broker advertises the property as a nice 3-bedroom house - call 77-7777 for more information as a 24-hour recording is available. This would be: A. A violation as the advertisement must contain the brokerage name and phone number. B. A violation as the advertisement did not contain the brokerage name C. Allowed as a broker must follow the principal instructions D. Allowed as the brokerage phone number was not in the advertisement

B. A violation as the advertisement did not contain the brokerage name

Which is true when a corporation receives a brokers license? A. All brokers license under the corporation must be officers of the corporation B. All corporate officers involved in the brokerage business must have active broker-officer or salesperson licenses C. I am corporate officers must have active sales person licenses

B. All corporate officers involved in the brokerage business must have an active broker-officer salesperson licenses

What document would be a condensed history of all records that affect the title? A. A survey B. An abstract C. An affidavit of title D. A chain of title

B. An abstract

Mortgage interest is always computed: A. As being paid in advance B. As being paid in arrears C. Using compound interest D. With a variable interest rate

B. As being paid in arrears

A final payments on a loan that was larger than the previous payment would be called: A. Fully amortized loan B. Balloon payment C. Straight note D. Term loan

B. Balloon payment

What is true about FHA and VA loans? A. Both require a certificate of eligibility B. Both require owner occupancy C. Both require MIP insurance D. Both allow non-qualifying assumptions

B. Both require owner occupancy

A person that has stock ownership in an apartment and a proprietary right to lease that space would be participating in a(an): A. Condominium B. Cooperation C. Time share D. Alienation

B. Cooperative

How does earnest money appear on a closing statement? A. Debit buyer only B. Credit buyer only C. Credit seller only D. Credit buyer and seller

B. Credit buyer only

Which clause in a mortgage would make the loan non-as sum able? A. Acceleration B. Due on sale C. Prepayment D. Defeasance

B. Due on sale

The highest quality of ownership for a person to obtain in real property is: A. A life estate B. Fee simple C. A leasehold estate D. A conditional fee estate

B. Fee simple

Which of the following would be true regarding special assessment taxes? A. These are also called ad valorem taxes B. If not paid, the property could be sold at a foreclosure sale C. They are paid one time at closing D. They are generally for the good of the entire community in raising money for police and fire protection

B. If not paid, the property could be sold at a foreclosure sale

The purpose of a survey is to determine: A. Where improvements should be placed B. If there are any encroachments on the property C. If the property has an liens D. The market value of comparable properties

B. If there are any encroachments on the property

A land contract is also referred to as: A. Right of first refusal B. Installment contract C. Option contract D. Listing contract

B. Installment contract

An unlicensed clerical employee of a real estate brokerage is showing listen property to a buyer. Is this legal? A. No, as only buyer agents can show buyer listed property that is for sale B. No, this would be a violation of Missouri license law as only real estate licensees can show property C. Yes, this is allowed as the person is an employee

B. No, this would be a violation of Missouri license law as only real estate licensee can show property.

A six unit apartment complex in an area that has recently been refined R-1 for single family residential property only would be an example of a: A. Variance B. Non-conforming use C. Building code D. Master land plan

B. Non-conforming use

A salesperson, while showing a buyer property, drives past a house with a "for sale by owner" sign in the yard. If the buyer asks to stop and look at it, what should the salesperson do? A. Stop and try to make an appointment B. Not show the property because the salesperson has no written authorization to show the property C. Have the company broker call for an appointment D. Advise the buyer that the salesperson cannot show the property unless the buyer agrees to pay a commission

B. Not show the property because the salesperson has no written authorization to show the property

Broker A and Broker B both an open listing agreement with the seller. Broker B ending approved curing the buyer who purchased the property. Which of the following statements is true regarding paying the commission? A. The seller pays the commission to broker a who then intern pays Broker B B. Only Broker B receives commission from the seller C. Broker A and Broker B both split the commission equally D. Since it is an open listing, the seller does not hav to pay any commission

B. Only Broker B receives commission from the seller

Harvsting of crops that require annual planting means that the crops are considered to be: A. Real property B. Personal property C. Fixtures D. Trade fixtures

B. Personal property

Which of the following items would automatically transfer with the sale of property? A. Trade fixtures B. Plumbing fixtures C. A free-standing appliance D. Emblements

B. Plumbing fixtures

A deed restriction would apply to the: A. Current owner only B. Present and future owners C. Original developer D. Homes association

B. Present and future owners

Which of the following deeds would give the seller the LEAST amount of liability? A. Bargain and sale B. Quitclaim C. Special Warranty D. General Warranty

B. Quitclaim

A broker is representing a seller as a special agent. Which of the following activities with the broker be able to do? A. Perform any acts as there is no fiduciary relationship B. Represent the seller and any transactions for which the broker is authorized C. Do you only with other properties not involving a principal D. Deal with all of the sellers properties on a continuous basis

B. Represent the seller and any transactions for which the broker is authorized

An elderly person has recently made the last payment on a mortgage. This person would like to supplement their retirement income. The loan most likely to help in this situation would be a: A. Package mortgage B. Reverse annuity mortgage (RAM) C. Blanket mortgage D. Purchase money mortgage

B. Reverse annuity mortgage (RAM)

A fiduciary relationship is created when a broker does which of the following? A. Brings an offer to purchase B. Signs a listing contract C. Takes a third party to apply for financing D. Disburses earnest money

B. Signs a listing contract

Six miles of curbs and gutters were installed to improve the properties in a certain area. The properties that were improved would most likely pay for the improvements through a: A. Benevolent city fund B. Special assessment tax C. General assessment tax D. Improvements tax

B. Special assessment tax

Real estate sales contracts must be in writing to be enforceable under which body of law? A. Real estate settlement procedures act (RESPA) B. Statue of frauds C. Truth in lending (Regulation Z) D. Equal credit opportunity act

B. Statue of Frauds

Which statue says that contract must be in writing to be enforceable? A. Statue of limitations B. Statue of fraud C. Statue of Liberty

B. Statue of fraud

A tenant was able to negotiate with a landlord a two-month lease for entertainment purpose. What type of leasehold estate would this be? A. Periodic tenancy B. Tenancy for years C. Estate at will D. Tenancy at sufferance

B. Tenancy at sufferance

A tenant was able to negotiate with a landlord a two month lease for entertainment purposes. What type of leasehold would this be? A. Periodic tenancy B. Tenancy for years C. Estate at will D. Tenancy at sufferance

B. Tenancy for years

What is the advantage for a borrower who chooses to pay private mortgage insurance (PMI) in receiving a loan? A. The insurance is tax deductible B. The borrower can purchase with a lower down payment C. The borrower receives a lower interest rate D. The borrower only pays this one time at closing

B. The borrower can purchase with a lower down payment

In a life estate situation, what happens to ownership of the property with a life tenant dies? A. The life tenants heirs would get the property B. The current title holder or heirs would get the property C. The state government will get the property D. Whoever had the mortgage on the property would get the property

B. The current title holder or heirs would get the property

What is the purpose of a master plan? A. To insure safety in construction B. To guide in the future development in cities C. To give cities a way to acquire private property in the future if needed D. To allow cities a way to acquire private property in the future if needed

B. To guide in the future development in cities

When would a property manger be guilty of violating fiduciary obligations to an owner?

Being hesitant to ask about a tenants income.

What would best describe commingling?

Brokerage company mixing the brokerage money with the clients/companies escrow money.

A property was sold by a foreclosure sale. The sale did not produce enough money to satisfy all the debts on the property. What could the creditors who weren't paid enough now file? A. A deed in lieu of foreclosure B. An estoppel certificate C. A deficiency judgement D. A blanket mortgage

C. A deficiency judgement

The Equal Credit Opportunity Act prohibits discrimination based on: A. Sexual orientation B. A person being a minor C. A person being a senior citizen D. A persons credit rating

C. A person being a senior citizen

Which of the following liens would take priority getting paid off at a foreclosure sale? A. A mortgage lien B. A mechanics lien C. A real estate tax lien D. A judgement lien

C. A real estate tax lien

Which mortgage clause allows a lender to regain their investment if a borrower does not pay the payment? A. Alienation B. Due on sale C. Acceleration D. Defeasance

C. Acceleration

Which of the following would be an easement by necessity? A. A railroad has to reroute tracks around a piece of land if not allowed to go straight through B. A gas company having to run gas lines around a property C. An owner was landlocked and could not gain access to his property D. A utility company had no access to a subdivision

C. An owner was landlocked and could not gain access to his property

What kind of value does the government use in raising money for operations? A. Appreciated value B. Depreciated value C. Assessed value D. Original purchase price

C. Assessed value

The main difference between joint tenancy and tenancy in common is that joint tenancy: A. Is inheritable to the heirs B. Has a right of transfer C. Carries the right of survivorship D. Has a unity of possession

C. Carries the tight of survivor

What is the best way to determine a list price for a residential property? A. Mortgage value B. Assessed value C. Competitive market value analysis (CMA) D. Appraised value

C. Competitive market value analysis (CMA)

The AHC (Administrative Hearing Commission) can do which of the following? A. Investigate a claim B. Impose a penalty C. Conduct a hearing to determine if a violation has occurred D. Revoke a license

C. Conduct a hearing to determine if a violation has occured

And assume the loan in a real estate transaction would appear on the closing statement as a: A. Credit to the buyer only B. Debit to the buyer, credit to the seller C. Debit to the seller, credit to the buyer

C. Debit to the seller, credit to the buyer

Which of the following would be correct concerning the validity of a contract? A. The legal description of the property is required B. Earnest money of at least one dollar is required C. Earnest money is not required D. A verbal contract for real estate would be enforceable in a court of law

C. Earnest money is required

A person dies with no valid will and no heirs. The state government could claim ownership of this property through government right? A. Eminent domain B. Taxation C. Escheat D. Police power (government)

C. Escheat

A contractor failed to pay subcontractors for work performed on a property. What could the subcontractors do? A. Sue the contractor for fraud B. Remove the materials from the improved property C. File a mechanics lien on the improved property D.petition the attorney general for the money

C. File a mechanics lien on the improved property.

A lender is adding 1/12 of the annual taxes and insurance to a borrower's monthly mortgage payment. These prepaid taxes and insurance are kept in a (an): A. Lenders account of choice B. Borrowers account C. Impounds or escrow account D. State account

C. Impounds or escrow account

Three parties only residence as tenants in common but only two live there. The third-party nonresident wants to sell the property, but the other two living there disagree and do not want to sell. In order to get the property sold, the third-party would need to: A. Initiate an actual eviction B. Initiate a lease-purchase agreement C. Initiate a lawsuit for partition D. Refuse to pay the real estate taxes

C. Initiate a lawsuit for partition

A promissory note must have all the following accept: A. Term of note B. Amount of money borrowed C. Loan to value ratio D. Interest rate

C. Loan to value ratio

An appurtenant easement can be terminated by: A. The death of the dominant tenement B. The death of the serving tenement C. Merger of the properties D. Destruction of the property

C. Merger of the property

A buyer was moving to a city. The buyer wanted to wait a little while and look around the city before purchasing a home. In he meantime, the buyer wanted to just rent. The best thing for the buyer would be a: A. Lease option B. Lease purchase C. Month to month lease D. Tenancy at sufferance

C. Month to month lease

A tenant was moving to a city. The buyer wanted to wait a little while and look around the city before purchasing a home. In the meantime, the buyer wanted to just rent. The best thing before purchasing a home would be a: A. Lease option B. Lease purchase C. Month-to-month lease D. Tenancy at sufferance

C. Month-to-month lease

Which is the following would not be an appurtenance? A. Garage apartment B. Easement on an adjacent property C. Mortgage lien D. Pipeline on a property

C. Mortgage lien

On February 6, John Grant finished and passed a sales person pre-license class. On August 25, John pass the sales person examination. Can John receive a license? A. Yes, because he took a pre-license course B. Yes, because he passed a pre-license course C. No, because he did not apply for license within six months after finishing class D. No, because he did not apply for a license within 60 days after passing the exam

C. No, because he did not apply for license within six months after finishing class

The purpose of laws allowing for the state to take property through escheat is to: A. Allow the property to be purchased cheaply by the state B. Provide for more public land C. Prevent land from becoming ownerless D. Allow for the assessment of taxes

C. Prevent land from becoming ownerless

An owner of a residential property had planned a rose bush several years ago on the property. The owner then decided to sell her property. Regarding the rose bush she had planted, this would be considered. A. Personal Property B. Chattel C. Real Estate D. Emblements

C. Real Estate

With the exception of real estate taxes, liens are generally repaid at a foreclosure sale based on the: A. Dollar amount of the lien B. Actual need of the creditors involved C. Recording date of the lien D. Original date of the agreement that led to the lien being filed

C. Recording date of the lien

Converting real property into personal property would be called? A. Chattel B. Annexation C. Severance D. Fixture

C. Severance

A developer was in the process of developing a brand new subdivision of Holmes. In order to preserve the value of the new homes being built, the developer decided to require all the homes built to have a minimum of 1800 ft.². This would best be accomplished through: A. An easement by prescription B. Zoning laws C. Subdivision deed restrictions D. A lien

C. Subdivision deed restrictions

Two persons own a property under tenancy in common. Which statement would be correct assuming one of the owners dies? A. The probate court would have to make the final determination B. The other Underwood received our ship under right of survivorship C. The heirs of the deceased would inherit the property D. The administrator would determine the rightful owner

C. The heirs would inherit the property

A person was served notice that a $20,000 judgment has been obtained against the person. This person was considered with losing their personal residence due to the judgment. Which of the following statements would be true? A. The judgment must be over $25,000 to attach a house B. A judgment does not ever attach to a house C. The homestead exemption might protect the person from losing the house D. A person can always lose their house if a judgment is placed against the property

C. The homestead exemption might protect a person from losing the house

Which of the following would be true of a partially amortized loan? A. The amount going toward interest increases as time goes along B. At the end of the loan, there is nothing left to be paid off C. There are generally smaller monthly payments D. The loan payments consist of interest only

C. There are generally smaller monthly payments

Which os he following statements would be true of a partially amortized loan? A. The amount going toward interest increases as time goes along B. At the end of the loan, there is nothing left to be paid off C. There are generally smaller monthly payments D. The loan payments consist of interest only

C. There are generally smaller monthly payments

What is the purpose of the federal anti-trust law? A. To make sure that consumers always pay the lowest price B. To allow businesses to cooperate with each other in setting minimum prices that allow for a livable wage for employees C. To ensure a fair and competitive business environment in the marketplace D. Do you mandate maximum commissions that real estate licensee's can charge

C. To ensure a fair and competitive business environment in the marketplace

Taxes of $1200 for pre-paid for the year on January 1. If the property was sold with a closing date of March 1 and the buyer was credited with the day of closing, what would be the tax proration? A. $200 B. $500 C. $800 D. $1,000

D. $1,000

A seller sold her property for $350,000 with a closing date of July 1. The seller pay the 6% commission. The seller had paid the second quarter water and electricity bill which totaled $1750. The seller also had spent $2100 in roof repairs. How much did the seller net at closing? A. $325,150 B. $326,900 C. $327,250 D. $329,000

D. $329,000

A property sold for $125,000 with a loan of $50,000. The seller paid $2000 in closing costs and a 7% commission. How much would the seller net? A. $54,250 B. $57,000 C. $61,300 D. $64,250

D. $64,250

Which of the following loans would fall under the three day right of rescission allowed under regulation Z? A. a residential loan for a first mortgage B. A loan for a commercial property C. A loan for an agricultural property D. A home improvement loan for a principal residence

D. A home improvement loan for a principal residence

Which of the following would be the BEST example of a buffer zone? A. An agricultural property between multi-family dwellings and a commercial property B. A single-family property between two commercial properties C. A single-family property between a multi-family dwelling and a commercial property D. A park between a high-rise apartment building and an industrial area

D. A park between a high-rise apartment building and an Indus area

One main difference between an easement and a lien is that: A. An easement makes a property unmarketable B. An easement can only be granted by the government C. A lien requires money to be set aside in escrow D. An easement gives the right to cross over another's property to the holder of the easement

D. An easement gives their right to cross over another's property to the holder of the easement

With regards to water rights and prior appropriation concepts, which of the following terms might be applicable? A. Survey B. Estoppel certificate C. Covenant D. Avulsion

D. Avulsion

Which of the following items would NOT be a fixture? A. Chandelier B. Built-in shelves C. Heirloom rose bush D. Cast iron garden bench

D. Cast iron garden bench

How would a loan origination fee normally show up on a closing statement? A. Debit buyer - credit seller B. Debit seller - credit buyer C. Debit seller - no entry to buyer D. Debit buyer - no entry to seller

D. Debit buyer - no entry to seller

A lender is going through the foreclosure process. The lender, however, would like to resell the property as soon as possible. The lender should seek a: A. Judicial foreclosure B. Quick foreclosure C. Power foreclosure D. Deed in lieu of foreclosure

D. Deed in lieu of foreclosure

I did restriction in a subdivision required a minimum of 1300 ft.² for any house that was built. A person purchased a lot in the subdivision wishing to build a tiny house that was only 800 ft.². Regarding this particular deed restriction, it would be: A. Unenforceable last tiny houses are good for the environment B. Unenforceable as tiny houses are good for the community C. Subject to change on me with 100% of all owners a green to change D. Enforceable as written

D. Enforceable as written

A broker with XYZ realty personally owned a building. The broker decided to list the property for sale with XYZ realty. How could the property legally advertise? A. For sale by broker/owner B. For sale by owner C. For sale - call 555-1234 D. For sale - call XYZ realty

D. For sale - call XYZ realty

A broker with XYZ realty personally owned a building. The broker decided to list the property for sale with XYZ realty. How could the property be legally advertised? A. For sale by broker/owner B. For sale by owner C. For sale - call 555-1212 D. For sale - call XYZ realty

D. For sale _ call XYZ realty

Which of the following would provide for constant principal and interest payment with loan completely paid off at the end of the term? A. Straight note B. Term loan C. Partially amortized note D. Fully amortized note

D. Fully amortized note

Which of the following would provide for constant principal and interest payments with the loan completely paid off at the end of the term? A. Straight note B. Term loan C. Partially amortized note D. Fully amortized note

D. Fully amortized note

A buyer purchased a listed property from a seller who was also the developer. The sales contract contain a provision that if the buyer resolve the property the buyer would have to use the same listing brokerage company that the developer had employed. This would be considered: A. A good marketing plan B. Reasonable as the original listing brokerage company would have knowledge and expertise regarding the property C. Legal as long as the buyer consult a legal counsel before signing the contract D. Illegal as this is a tying contract

D. Illegal as this is a tying contract

A Missouri broker was acing under the presumption of transaction brokerage in trying to sell a property. The broker found a buyer of the property. The buyer however, had not hired a buyers agent for representation. In this scenario, who does the broker represent? A. Buyer only B. Seller only C. Buyer and seller D. Neither buyer or seller

D. Neither buyer or seller

A sales person is showing a buyer client a listed property. The property she showing is listed for sale by her own broker under seller agency. House in Mesa sales person disclose both parties and the conversion to transaction brokerage? A prior to closing B. Prior to the offer being submitted to the seller C. Prior to inspection D. Prior to the first showing

D. Prior to the first showing

What does a standard title insurance policy cover? A. Questions of survey B. Rights of parties in possession C. Unrecorded liens D. Recorded title defects and liens

D. Recorded title defects and liens

What does a standard title insurance policy cover? A. Questions of survey B. Rights of parties in possession C. Unrecorded liens D. Recorded title defects and liens

D. Recorded title defects and liens

Which of the following is true regarding a contract for deed? A. Seller retains equitable title; buyer gets legal title in one month B. Seller retains equitable title; buyer gets legal title in one year C. Seller retains legal title; buyer gets equitable title in one month D. Seller retains legal title; buyer gets equitable title immediately

D. Seller retains legal title; buyer gets equitable title immediately

The common areas in a condominium are owned by the unit owners under: A. Joint tenancy B. Severalty C. Tenancy in the entireties D. Tenancy in common

D. Tenancy in common

A person was applying for a VA loan on a single-family home purchase. Which federal law was passed to ensure the buyer received disclosure of the total closing costs? A. Trust-In-Lending Laws (Regulation Z) B. The Equal Credit Opportunity Act C. Usury laws D. The Real Estate Settlement Procedures Act (RESPA)

D. The Real Estate Settlement Procedures Act (RESPA)

A judgement had been issued against a person for debts. The person owned a car, boat, farm house and some land. Which of the following pieces of property could the judgement lien be placed upon? A. The car only B. The car and boat only C. The farmhouse and the land only D. The car, boat, farmhouse and the land.

D. The car, boat, farmhouse and the land.

Which of the following statements would describe the concept of negative amortization? A. The interest rate on a loan can change based upon an index B. Monthly mortgage payments are applied to both principal and interest C. The property appraisal comes in at a lower value than the actual price and the sales contract D. The monthly payments on the debt do not cover the amount of interest owed

D. The monthly payments on the debt do not cover the amount of interest

A sales person wrote in her blog about current listings she has for sale. What must she include in her blog? A. The real estate brokerage phone number B. The salespersons phone number C. The real estate brokerage address D. The real estate brokerage name

D. The real estate brokerage name

A salesperson wrote in her blog about current listings she has for sale. What must she include in her blog? A. He real estate brokerage phone number B. The salespersons phone number C. The real estate brokerage address D. The real estate brokerage name

D. The real estate brokerage name

After closing, which of the following situations would require a quiet title suit? A. The listing agent misrepresented a material fact about the property B. The seller misrepresented to the buyer about a roof and basement leak in the property C. The inspection company failed to discover the property contained mold D. The sellers cousin was claiming on ownership interest in the property and refuses to sign a quitclaim deed

D. The sellers cousin was claiming on ownership interest in the property and refuses to sign a quitclaim deed

What is the purpose of zoning regulations? A. To allow of taxation on real estate B. To allow the government to take private property for public good C. To determine the type of construction materials that can be used in certain area D. To implement the master land plan

D. To implement the master land plan

What is the primary purpose of the Federal Housing Administration? A. To buy notes from lenders B. To make loans to borrowers C. To set maximum interest rates D. To insure loan for lenders

D. To insure loan to lenders

A buyer made an offer on a listed property with the earnest money being a promissory note. What should the salesperson do regarding presenting off this offer to the seller? A. Present the offer as s B. Tell the buyer a promissory note is not acceptable as earnest money C. Give full disclosure to the seller of the promissory note being earnest money prior to the seller signing the contract D. Verify the buyers funds backing the promissory note prior to presenting the offer to the seller

D. Verify the buyers funds back in the promissory note prior to presenting the offer to the seller

Where would one look to find out what type of structure is allowed to be built on a certain piece of ground? A. Title policy B. Plat map C. Abstract D. Zoning ordinance

D. Zoning ordinance

How would prepaid taxes, with a mid year closing, show up on a closing statement?

Debit buyer, credit seller

In helping a buyer purchase a property, what should not be done?

Disclose to a seller/customer the highest price the buyer was willing to pay.

An unmarried couple acquired property with unequal ownership percentages. Which of the following statements would be true regarding the scenario?

Either one can sell their interest without notifying the other.

A buyer wanted a lower loan to value ratio:

Larger down payment is required.

In order for a deed to be valid, there but be a(an):

Legal or complete description of the property.

Who establishes zoning laws?

Local cities and towns

Which issue would be classified as stigmatized?

Murder/suicide that happened on property.

What promise is made in a special warranty deed?

No encumbrances other than what was noted in the deed.

A certified appraisal would be required:

On all federally regulated loans.

A lenders escrow account would be for holding prepaid:

taxes and insurance

Which of the following items could the MREC require of a person before issuing a license? A. A drivers license B. A person must be a resident of Missouri C. A credit report D. US citizen

C. A credit report

A property was sold by a foreclosure sale. The sale did not produce enough money to satisfy all the debt on the property. What could the creditors who weren't paid now file? A a deed in lieu of foreclosure B. An estoppel certificate C. A deficiency judgement D. A blanket mortgage

C. A deficiency judgement

How many ELECTIVE hours of continuing education does a licensee need for renewal every two years? A. 3 B. 6 C. 9 D. 12

C. 9

How many elective hours of continuing education does a licensee need for renewal every two years? A. 3 B. 6 C. 9 D. 12

C. 9

The property was sold with closing to take place on July 31. The yearly taxes of $2,100 were paid in arrears. What would be the proration amount at closing? A. $875 B. $1,225 C. $1,500 D. $2,100

B. $1,225

A property sold for $350,000 with the buyer obtaining an 80% loan. If the transfer fee was three dollars per $1000, what was the amount of the fee? A. $840 B. $1050 C. $1175 D. $1300

B. $1050

An industrial building sold for $535,000. The listing broker charged a 4.5% commission agreeing to cooperate with other brokers and split the commission 50-50. If a cooperating broker sold the property, how much would each of the brokers receive? A. $10,535.50 B. $12,037.50 C. $24,075 D. $28,975

B. $12,037.50

A three-year straight note was obtained at 10% per year. Interest paid for the first two years was $4200. The loan on the house was 75% of the value what was the total value of the property? A. $21,000 B. $28,000 C. $31,040 D. $38,750

B. $28,000

A 3-year straight note was obtained at 10% per year. Interest paid the first two years was $4,200. The loan on the house was 75% of the value. What was the total value of the property? A. $21,000 B. $28,000 C. $31,040 D. $38,750

B. $28,000 Page 64

How long does a person have who has been discriminated against to file a complaint with the department of housing and urban development (HUD)? A. 6 months B. 1 year C. 2 years D. 3 years

B. 1 year

How long does a person have who has been discriminated against to file a complaint with the department of housing and urban development? A. 6 months B. 1 year C. 2 years D. 3 years

B. 1 year

Which of the following would be a good example of a person being protected under the federal fair housing laws? A. A minority person steered in minority neighborhoods only B. A blind person with a seeing eye dog being able to rent an apartment that has a no pets policy C. A property manager refusing to rent to a person with small children D. A lender refusing to make loans in questionable areas

B. A blind person with a seeing eye dog being able to rent an apartment that has a no pets policy

He property was sold with a 300 gallon fuel tank being part of the sale. The tank was 2/3 full at closing with a cost of $1.45 per gallon. What would be the proration at closing? A. $100 B. $145 C. $290 D. $435

C. $290

Taxes on the property were paid in arrears running from July 1 to June 30. If closing was on April 15 and the annual taxes were $912, what was the tax proration? A. $191 B. $437 C. $721 D. $912

C. $721

Mortgagor is behind making monthly payment. Lender agrees to deed of lieu of foreclosure. What would be true?

The junior liens would still be valid.

Which of the following statements would describe negative amortization?

The monthly payments on a debt do not cover the amount of interest owed.

All dates in the contract should be adhered to and given prominence, in a contract that would mean:

Time is of the essence clause

When can a managing broker release earnest money out of an escrow account?

When directed by the title company who is closing the transaction.