1) Tenancy by the entirety is?
A).equal or unequal undivided ownership between two or more people
B).ownership which requires the four unities: Interest, Possession, Time, and Title.
C). Ownership that's available only to married couples, tenancy by the e
C). Ownership that's available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties.
2) Exclusive agency listing is when?
A.) he agent gets paid no matter who sells the property, regardless of whether it's the agent or the seller.
B).agents get paid only if they sell the property. No fee is earned if the owner alone sells the property.
C)
B).agents get paid only if they sell the property. No fee is earned if the owner alone sells the property.
You are trying to price a property. Five years ago it was sold for $145,000, but property values in this particular neighborhood have decreased by an average of 5 percent since then. What is the rough value of this property?
A) $72,500
B). $130,000
C). $1
Explanation of Answer:
$145,000 * .95 = $137,500
4) Which of the following types of discrimination are prohibited by the Fair Housing Act of 1968? Please select all that apply
A).Number of Children
B). Age
C). Religion
D). Behavior
E). National Origin
A). Number of Children
C). Religion
E). National Origin
5) A valid real estate contract must contain which of the following elements?
Please select all that apply:
A). Competency
B). Selection of a title company
C). An offer and an acceptance
D). A "legal object", i.e., a property
E). Agent's information
A. Competency
C. An offer and an acceptance
D. A "legal object", i.e., a property
6) The total commission paid a brokerage firm was $23,000. The firm was paid 6% on the first $200,000, 4% on the next $200,000 and 2% on the remainder. What was the sales price of the property?
A). $400,000
B). $450,000
C). $500,000
D). $550,000
E). $600,
Explanation of Answer:
$200,000 * 6% = $12,000
$200,000 * 4% = $8,000
TOTAL = $20,000
$23,000 - $20,000= $3,000 / .02 = $150,000
$150,000 * 2% = $3,000
ADD: 200,000 + 200,000 + 150,000+ $550.000
7) As an agent you received $1,312.50 as commission for a referral fee. The listing agent paid 25% of her commission for the referral. The total commission paid was 6%, which was split equally between the listing and selling brokerage firms. If the listin
Explanation of Answer:
$350,000 * .06 = $21,000
$21,000/2 = $10,500
$10,500/2 = $5,250
$5,250 * 25% = $1,312.50
D). $350,000
8) A mother is deeding her mortgage-free house to her son. Is the deed required to show "good consideration" to be valid in this case?
A).No, because the house does not have a mortgage and there
is no lien holder involved.
B). No, because family transfers
D). Yes, unless she is deeding it to him in her will.
9) Select all that apply:
If a deed is valid it must be:
A). Signed
B). Recorded
C). Identify the property and parties involved
D). Witnessed
A). Signed
C). Identify the property and parties involved
D). Witnessed
10) Select all that apply:
Of the many expenses involved with owning a house, which of the following are tax-deductible?
A). Real estate taxes
B). Insurance
C). Mortgage interest
D). General home improvement and repairs
A). Real estate taxes
C). Mortgage interest
1) A lot that measures 420' x 670' sold for $633,150. What was the cost per square foot?
A). $1.50
B). $1.75
C). $2.00
D). $2.25
E). $2.50
Explanation of Answer:
420 * 670 = 281,400
$633,150 / 281,400 = $2.25
12) A buyer purchases a home for $225,000. The have acquired a 30 year loan at 6.5% with 20% down. How much interest will the buyers pay over the life of the loan?
A). $134,925.10
B). $186,475.50
C). $229,580.08
D). $321,125.30
E). $343,180.70
Explanation of Answer:
To calculate this, you must first determine the amount of the mortgage the buyer is taking. This is done by subtracting the 20% down from the purchase price leaving a note in the amount of $180,000. Then when you amortize the mortga
13) A person died testate. After an extensive search, no additional heirs were found. The person's real property would transfer by
A). descent and distribution.
B). escheat to the state.
C). devise.
D). demise.
C). devise.
Def: The act of disposing of property, especially real property,
by will.
When a person dies testate, it means the person died with a will. Real property is devised or transferred by the will. If a person dies intestate, or without a will, the
14) The zoning laws in your town require an apartment building to provide 2 and a half parking spaces for every 1,000 square feet of inhabited space. A local apartment building has 40,000 square feet of apartments. How many parking spaces should it have?
C). 90
15) The presence of lead paint in a home must only be disclosed if the home is being purchased using an FHA loan.
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True
False
FALSE
16) How much time must the parties to a real estate closing be given to review the HUD statement?
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A). 3 hours
B). 12 hours
C). 24 hours
D). 3 days
E). 1 week
C). 24 HOURS
17) Your client buys a house for $195,000. The contract calls for you to equally share a 6% commission with the seller's broker. What is your portion of the commission?
A). $4,750
B). $5,850
C). $6,200
D). $11,700
B). $5,850
18)
Select all that apply:
A transaction broker is known as a/an
A). intermediary
B). fiduciary
C). nonagent
D). facilitator
E). agent
A). intermediary
C). nonagent
D). facilitator
19) You referred a client to a lender. In return they sent you a thank you note with a $50 gift card to a local restaurant. Which law makes this kickback illegal?
A). ECOA
B). Fair Housing Act of 1968
C). CRA
D). RESPA
E). Regulation Z
D). RESPA
The Real Estate Settlement Procedures Act (RESPA) prohibits kickbacks from service providers.
20) John and Leslie are business partners and they decided to list their apartment complex for sale. John met with Susan, an agent, and told him that he and his partner would give her the listing. John met with Susan on Monday afternoon and signed the lis
Explanation of Answer:
The listing must be signed by the parties who have the authority to sell.
B). VOID
21) Adverse possession is:
A). the sudden loss of land by an act of nature like a
landslide.
B). a legal proceeding to divide property owned by two or
more people.
C). giving up property voluntarily to the government.
D). When someone uses your property f
D). When someone uses your property for a period of time and
you lose the property or have your rights to the property
restricted.
22) Fiduciary Duties of a Real Estate Agent include:
A). Confidentiality
B). Accounting
C). Loyalty
D). All of the above
D). All of the above
23) When Leonard bought his property he had a 20% down payment and secured a 30 year loan at 7% interest. If his first month's interest was $1120.00, how much did he pay for the property?
A). $190,000
B). $210,000
C). $240,000
D). $260,000
E). $290,000
Explanation of Answer:
$1,120 x 12 = $13,440.
$13,440 � 7% = $192,000.
$192,000 � 80% = $240,000
C). $240,000
24) Amy, Betty and Charlie are siblings and own a property as joint tenants. Charlie decides to sell his share to Larry for a reduced amount. Upon closing, Larry is a
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A). tenant in common with Amy and Betty.
B). tenant by the entirety with Amy
Explanation of Answer:
Joint tenancy requires the unities of time, title, interest and possession. When Jayne sells her property to Maggie, the unity of time and title is breached. Agnes and Zelma are still joint tenants, but Maggie would be a tenant in c
25). Nonhomogeneity describes a/an?
A. physical characteristic of real estate and refers to uniqueness of the property.
B. physical characteristic of real estate and refers to the indestructibility of the property.
C. economic characteristic of real estat
Correct answer - A
Heterogeneity, or nonhomogeneity, is describes a physical characteristic of real estate. Every parcel of land is physically different from another parcel of land.
26). Emblements are
A. real property/fructus industriales.
B. real property/fructus naturales.
C. personal property/fructus industriales.
D. personal property/fructus naturales.
Emblements are annual crops that are classified as personal property of the person who grew them. (Potatoes, tomatoes, tobacco, and corn) They are also known as fructus industralies, or fruits of industry (work). Trees, grasses, and perennials that do not
All of the following are included in the bundle of legal rights EXCEPT
A. right of control of the property.
B. right of enjoyment.
C. right of exclusion.
D. right of survivorship.
Your answer: D. right of survivorship.
Correct!
The right of survivorship is a right found in joint tenancy and tenancy by the entirety, but it is not a part of the bundle of legal rights. The bundle of legal rights include the right of possession, contro
5. A real estate licensee who has listed a property is a/an
A. general agent of the broker and a special agent to the seller.
B. general agent of the broker and a general agent to the seller.
C. universal agent of the broker and a special agent to the sel
Correct answer - A
A general agent is expected to be involved in an on-going business relationship. A special agent in limited to a specific transaction. A universal agent is acting on behalf of a person, as if he/she was the person. (Guardian) A licensee
8. Negligent misrepresentation occurs when
A. there is intentional misrepresentation of a material fact by a broker in order to take financial advantage of another.
B. the agent showing the property exaggerates the property's benefits.
C. a broker should
Correct answer - C
There are many definitions of the word misrepresentation. The basic definition is that a party made a decision based on information he/she/they thought was true, but it was not. Was it a mistake and no one could have reasonably known? W
9. Buyers met an agent at an open house. In order to buy the listed property, the buyers needed to sell their house. The agent wrote an offer to purchase with the following terms. "Purchasers shall list purchasers property at 567 Main Street, Your Town, Y
Correct answer - D
The Sherman Antitrust Act does not allow tying (tie-in) agreements. To "tie" an offer to a listing agreement is not allowed.
10. In most states which of the following situations would MOST LIKELY be grounds for suspension or revocation of a real estate license?
A. Failure to specify a definite termination date in a listing contract
B. Failure to find a buyer for a listed proper
Your answer: A. Failure to specify a definite termination date in a listing contract
Most states do not allow a listing contract to "automatically renew." There must be definite beginning and ending dates in a listing.
12. Which of the following would be future interests in a fee simple defeasible estate?
A. Remainder/ Reversion
B. Possibility of Reverter/ Right of Re-Entry
C. Reconveyance/ Redemption
D. Dower/Curtesy
Correct answer - B
A fee simple defeasible estate means that the title may revert upon the occurrence or non-occurrence of a specified event. The two types of fee simple defeasible estates are special limitation with the possibility of reverter and condit
14. If state law permits, the unities of time, title, interest, possession and person would be created when
A. John, Peggy and George buy a cottage on the lake.
B. Mr. and Mrs. Jones buy real estate.
C. Carrie buys her first house.
D. a corporation purcha
Correct answer - B
The unities of time, title, interest, possession are person are found in tenancy by the entireties, when two people are married to each other.
15. When Branham brought his property he had a 20% down payment and secured a 30 year loan at 7% interest. If his first month's interest was $787.50, how much did he pay for the property?
A. $135,000
B. $140,625
C. $168,750
D. $158,250
Correct answer - C
$787.50 x 12 = $9,450
$9,450 � 7% = $135,000
$135,000 � 80% = $168,750
16. The S1/2 of the NE1/4 and the NW1/4 of the SE1/4 would contain
A. 2,344,560 square feet.
B. 3,484,800 square feet.
C. 4,395,340 square feet.
D. 5,277,200 square feet.
Correct answer: D
640 � 4 � 2 = 80 acres
640 � 4 � 4 = 40 acres
80 acres + 40 acres = 120 acres
120 acres x 43,560 = 5,227,200 square feet
17. In 1969 Carmel purchased a condo for $15,000. Today she sold the property for $85,000 and agreed to finance the loan for the buyer. This transaction is known as a/an
A. conventional loan.
B. unconventional loan.
C. land contract.
D. blanket mortgage.
Correct answer - C
A land contract is also known as an installment sale. The seller agrees to finance the property in a land contract.
20. The market value of a property is $140,000. The owners pay $144.375 in monthly property taxes, or $2.75 per $100. What is the assessment rate?
A. 45 mills
B. 4.50%
C. 45%
D. 0.45%
Correct answer - C
$2.75 � $100 = .0275
$144.375 x 12 = $1732.50
$1,732.50 � .0275 = $63,000
$63,000 � $140,000 = .45 or 45%
18. A lot that measures 475' x 525' sold for $275,000. What was the cost per front foot?
A. $523.80
B. $578.95
C. $592.35
D. $597.98
Correct answer - B
$275,000 � 475 = $578.947
Only asking per front foot tricky question...
21. Two brothers owned a property and decided to list it with Agent Tejasi. Thirty minutes before the listing appointment, one of the brothers was called out of town on an emergency. So, a friend signed the listing contract for him. Tejasi had no idea tha
Your answer: A. void.
Correct!
The listing must be signed by the parties who have the authority to sell.
22. A habendum clause would be found in a/an
A. mortgage.
B. note.
C. deed.
D. sales contract.
Correct answer - C
The habendum clause is found in a deed. The seller is transferring the rights to the new owner "to have and to hold." It is sometimes called the granting clause.
115. A seller's failure to properly and honestly complete the Seller's Real Property disclosure Form allows a buyer all of the following, EXCEPT:
a. litigate and be entitled to treble damages
b. entitled to court and legal fees
c. have up to two years fro
15. D The buyer can only collect from the Recovery fund after obtaining a judgment against the seller and then only if the damages were caused by the actions of the licensee.
101. A real estate salesperson advised a prospective buyer that the property the buyer was considering was scheduled for annexation into the city limits. This disclosure constituted which of the following:
a. disloyalty to principal
b. misrepresentation
c
C-- The annexation in to the city is a material fact that could affect the consideration to be given and therefore must be disclosed.
109. The owner tells the broker that there is a sewer on the property. A buyer purchases the property and discovers there is only a septic tank on the property. Who is liable?
a. the seller
b. the broker
c. the appraiser
d. there is no liability attaching
B The broker could be held liable under the theory that the broker is a professional and should investigate the accuracy of the seller's representation.