Salesperson Examination I Review
Which of the following does NOT correctly describe how real estate licensees should handle the possibility of hazardous substances on a property being sold? 1. Clients should be asked about the possibility of hazardous substances on the property. 2. Licensees should consider the consequences of potential liability. 3. Licensees should be scrupulous in considering environmental issues. 4. Licensees should not disclose the problem because it might harm the seller.
Licensees should not disclose the problem because it might harm the seller.
The servient estate in an easement appuertenant is the property
owned by the landlord
Using $9.91 as a mortgage factor, what is the monthly payment for a $150,000 loan at 11.5 percent for 30 years?
$1,486.50 $150,000 / 1,000 = $150 x 9.91 = $1,486.50
A home is values at $92,00. Property in this city is assessed at 70 percent of its value and the local tax rate is $3.40 per $100. What is the amount of the owner's monthly taxes?
$182.47 $92,000 x 70% = $64,000 (assesed value) Divide by 100 because the tax rate is stated per $100 $64,000 / 100 = $644 $644 x $3.40 = $2,189.60 annual taxes Dived by 12 to get the monthly taxes $2,189.60 / 12 = $182.47
What is the actual value of your property if that annual taxes are $2,800 and real estate is assessed at 30 percent of actual value? (Figure a levy of 4.8%, or 48 mills, or $480 per 100)
$200,000 $2,880 / 0.048 = $60,000 assessed value $60,000 / 30% = $200,000 market value
Which of the following is NOT a violation of antitrust laws? 1. Two brokers agree that they both will pay 2/5 percent of the sales price to cooperating brokers on all listing published in an MLS after the date of the specified agreement. 2. Two brokers agree to pay just $40 to the Reliance Title Company for closings. 3. Two brokers agree not to cooperate with a flat-fee broker 4. A broker refuses to cooperate with a flat fee broker
A broker refuses to cooperate with a flat fee broker
Which of the following single family residences would get the MOST accurate appraidal by applying the reproduction cost approach to value? 1. A rental property 2. A vacant property 3. A new property 4. An historic property
A new property
Which of the following statement concerning encumbrances is NOT true? 1. All encumbrances are liens 2. All liens are encumbrances. 3. Restrictions beneficial to the grantee are encumbrances. 4. An easement is a physical encumbrance.
All encumbranes are liens
Which of the following is a similarity between an exclusive-right-to-sell listing and an exclusive agency listing? 1. Under both the seller avoids paying the broker a commission if the seller sells the property without the help of the broker. 2. Both give the responsibility of representing the seller to just one broker. 3. Both are net listings. 4. Under both, the seller authorizes one specific salesperson to show the property.
Both give the responsibility of representing the seller to just one broker.
Which of the following statement would NOT be a material fact to be disclosed by a seller's agent? 1. Presentation of all offers 2. A relationship that the agent has with the buyer 3. Buyer's ability to make a lower offer 4. Discussion of disadvantages of an offer
Buyer's ability to make a lower offer
A farmer was unable to secure credit from other sources, so he probably got a mortgage loan from which of the following? 1. FHA 2. Savings and loan 3. Farm Service Agency 4. Commercial bank
Farm Service Agency
Which of the following is NOT a category protected by federal fair housing laws against discrimination in housing? 1. Race 2. National origin 3. Sexual orientation 4. Familial status
National origin
Regulation Z of the Truth-in-Lending Act provides which of the following penalties for licensees who willfully fail to comply with its advertising guidelines for real estate financing? 1. Fines only 2. License revocation 3. Fines and/or imprisonment 4. None: all violations of regulation Z are referred to state licensing agencies
None: all violations of regulation Z are referred to state licensing agencies
Which of the following is NOT a specific lien? 1. Mortgage lien 2. State inheritance taxes 3. Real estate taxes 4. Mechanic's lien
Real estate taxes
A broker listed a residential property under a valid written listing agreement. After the sale was completed, the owner refused to pay the broker's fee. Which of the following can the broker do? 1. She can take the seller to court and sue for the commission. 2. She is entitled to a lien on the seller's property for the amount of the commission. 3. She can go to court and stop the transaction until she is paid. 4. She can collect the commission from the buyer
She can take the seller to court and sue for the commission.
If a husband and wife own an apartment building and the husband owns an undivided three-fourths interest and the wife owns a one-fourth interest, what type of tenancy exists?
Tenancy by the entirety
A broker listed an owner's home and later received an offer from another licensee that met all of the listing terms and conditions. After considering the offer, the owner informed the broker that the owner no longer wished to sell, and asked to be released from the listing agreement immediately. Which of the following is a TRUE statement about the broker's position in this situation? 1. The broker must release the owner without obligation. 2. The broker must tell the owner that the offeror may sue for specific performance. 3. The broker may succeed in collecting an earned commission from the owner. 4. The broker may keep the earnest money that accompanied the offer as liquidated damages.
The broker may succeed in collecting an earned commission from the owner.
A salesperson listen a home for sale and transferred to another brokerage firm two weeks later. Which of the following statements describes the status of the listing?
The listing will stay with the former broker of the salesperson.
You are working as a buyer's broker for a client. Which of the following would NOT describer you role as a buyer's broker? 1. You should show the buyer properties only in which your commission is protected. 2. You should counsel the buyer about developing accurate objectives. 3. You should search for the best properties for your buyer to inspect, widening the marketplace to include homes for sale by owners (FSBOs) 4. You should help the buyer prepare the strongest offer.
You should show the buyer properties only in which your commission is protected
In the appraisal of a public building, an appraiser would use the...
cost approach
A person who receives real property by will is called:
devisee
You are married and own a house under a form of ownership and that prohibits you from selling it without the signature of your spouse. Your form of ownership is LEAST likely to be: 1. in severalty 2. a joint tenancy 3. a tenancy in common 4. a tenancy by the entirety
in severalty
According to the law of agency, a real estate broker does NOT owe the principal the duty of: 1. exercising reasonable care 2. acting in good faith 3. conforming with principal's legal instructions 4. offering legal advice
offering legal advice
The Civil Rights Act of 1866 prohibits discrimination based on...
race
In MOST states, the listing broker has a fiduciary duty with...
the client
Under the new capital gains tax law, a single person may take up to $250,000 in capital gains tax free on the sale of a home if that person has lived in the house for at least:
two of the past five years