Upgrade to remove ads
Real Estate Practice Exam- National
Terms in this set (67)
A salesperson is aware that the township has voted to widen Naragasssett Road and that work will begin in several months. The salesperson is showing a property along Naragassett Road to an out-of-town buyer customer. What is the salesperson's responsibility to the buyer?
Disclose the road widening.. it is a material fact to which the buyer is entitled to know
A buyer agrees to purchase a home from the seller via a land contract. The seller asks the listing agent if the listing agent could prepare the land contract document. To do so, the listing agent:
Would be acting outside the scope of authority usually allowed a real estate licensee
Two top salespersons have been competing for listings in the same farm area, frequently cutting commissions. They get together and agree to charge the same fees so that neither one of them is hurt economically. This agreement:
Is a violation of the Sherman Antitrust Act
A salesperson calls friends whom the salesperson knows may be interested in selling their home. The homeowners agree on the telephone to allow the salesperson to show the home to out-of-town buyers who will visit the city over the weekend. If the home is sold, the sellers agree to pay a four percent commission to the salesperson's brokerage company. The agreement is best described as:
An expressed agency relationship
A salesperson has a listing on a property. The salesperson is going to show that property to a buyer/customer. The salesperson must disclose:
To the buyer that the agent represents the seller
A listing agent knows of a defect in the listed property. When the listing agent becomes ill, another agent in the same company takes over the listing. The second agent:
By law has the same responsibility regarding the defect as the listing agent whether or not the listing agent disclosed it to the second agent
A salesperson has a listing on a property. The seller has several mortgages on the property, all of which are delinquent, as well as an IRS tax lien. When a prospective purchaser makes an offer, the seller insists on the earnest money deposit check being paid to the seller rather than deposited in the broker's trust account. The salesperson has a duty to:
Write a counter offer per the seller's instructions
A salesperson has an exclusive right to sell listing on a residential property. One offer has already been received, but not yet presented, when another offer is submitted by a different purchaser. The salesperson's duty regarding the multiple offers is:
With the seller's permission, disclose the existence of the multiple offers to the buyers
The Smiths want to erect a fence around their property. Their neighbor next door opposed their fence at a zoning meeting and won. As a result they can only fence three sides of their property. If their lot is 180' of frontage x 200' deep how many linear feet will they need of fencing?
A salesperson is the subject of a complaint from the real estate regulatory agency. It is discovered that some forms consumers signed are not included in the office transaction file. The salesperson:
Has violated the licensing laws
A salesperson agrees to represent a prospective buyer in the search for a home. The buyer subsequently decides to rent a home instead of buying. If the salesperson is also representing another buyer/client who wants to see some of the homes that were shown to the previous buyer/client, the salesperson:
Can show them the homes without regard to the previous buyer/client
When a salesperson takes a listing on a property on behalf of the broker, the seller is typically termed:
A salesperson take a listing on a property. During the course of the listing, but before any offers are received, the seller dies. The listing:
Is terminated by the seller's death
A salesperson takes an exclusive right to sell listing on a residential property. After the property is under contract, but before closing, the owner of the property dies. The purchase contract:
Is binding on the seller's heirs
A property owner lists a property with a salesperson under a 90 day exclusive right to sell listing agreement. The next day, the owner discovers a family member wants to buy the property and sells it to the family member without the assistance of the broker. The broker:
Is entitled to a commission
A property owner lists a property with a salesperson under an exclusive agency listing. The next day, the owner discovers a family member wants to buy the property and the owner sells it to the family member without the assistance of the broker. The broker:
Is not entitled to a commission
Which of the following is true regarding an open listing and an exclusive agency listing?
Under both, the seller avoids paying the broker commission if the seller sells it himself
A salesperson lists a property for sale. The sellers have had water in the basement previously within the past two years, but tell the salesperson they have recently corrected the problem and the basement no longer leaks. The sellers did the work themselves and have no contractor's receipts or certification. The salesperson:
Should see that the previous conditions is disclosed to prospective purchasers
A buyer is looking at homes with a salesperson. The buyer is being treated as a customer, a relationship that was disclosed to the buyer by the salesperson in the initial consultation. When making an offer on a property, the buyers disclose to the salesperson that they have been pre-approve
Must disclose this information to the seller/client
Jan has been looking for land to build a new building for her veterinarian practice. She needs between 5 and 10 acres. Jan located a property that is rectangular with measurements of 400' x 800'. How many acres are in this parcel?
A salesperson is found guilty of illegal discrimination in the rental of property the salesperson owns personally and markets separately from the brokerage company. The conviction:
Must be reported to the real estate licensing agency
Which of the following scenarios demonstrates an exception to the provisions of the Federal Fair Housing Law?
A church lodge restricts lodge stays to members of church only
A purchaser requests a general warranty deed as a condition of purchasing a property. The title the purchaser would most likely receive is:
Fee simple absolute
A property owner gives a family member the right to reside in a property for the duration of the family member's life. When the family member dies, the property will go back to the property owner. This describes:
Life estate with reversionary interest
You own a property along a major street. The city has announced that it is widening the street and will take ten feet of your front yard for that purpose. The taking of your land by the city, with appropriate compensation is called:
Federal regulations require many prospective purchasers and tenants to receive disclosure information about which environmental issue?
A land owner owns fifty acres with a five acre lake centrally located on the land. When the owner sells off twenty acres which border the lake, it is stated that the owner retains a permanent right to access the lake for recreational purposes. This would best be accomplished through:
An easement appurtenant
Which of the following would constitute both a lien and an encumbrance against a property?
Lender Larry is giving borrower Bill a 30 year fixed loan at 6.5%. Using the amortization chart, what will the P&I payment be if Bill purchases the property for $180,000 and paying 20% down?
A property described as the N 1/2, NE 1/4, NE 1/4, of section 32 is listed for sale for $20,000 per acre. What is the listing price?
An appraiser has been hired to determine the market value of a single family home. What is the next step in the appraisal process?
Determine the scope of work
A three bedroom home has one very large bedroom. The owner converts the large bedroom into two smaller bedrooms by building a wall down the middle. It is necessary to pass through one of the new bedrooms to get to the other. An appraiser appraising this home would make an adjustment of value based on what principle?
Which of the following would be a characteristic of value?
An estimate of the probable price of property on the date of the appraisal is best termed:
An appraiser is making adjustments of value for the differences between the subject property and the comparables. The appraiser would always:
Make adjustments to the comparables
An older property with plaster walls sustains significant damage in a fire. When renovations take place, plaster walls are replaced with drywall. This would be an example of:
A building sells for $1,200,000 and produces a gross annual income of $12,000 monthly. Annual building expenses are $8,400. Calculate the gross annual rent multiplier.
An appraisal subject property has 2 comparables. House A has 2 positive differences and one negative difference totaling a $1,500 positive difference to the subject property. House B has one positive difference of $1,000 and no negative differences. Which is the best comparable?
House B because it has only one adjustment
A rental property could generate $125,000 in gross annual income. A vacancy factor of five percent is normal for the area and annual expenses for the building total $8,750. Calculate the value of the property using a capitalization rate of 11%.
A buyer makes a written offer on a home that is accepted by the seller, creating a contract. Later, the parties agree to change the closing date from the original agreement. To accomplish this, the licensee should:
Have the parties modify the original agreement and have the parties sign the changes
Which of the folling would be an appropriate item to negotiate in a purchase agreement?
The possession date
A prospective purchaser makes an offer on a property. The owners do not accept the offer but instead issue a written counter offer. What is the status of the original offer?
No longer exists due to the seller's counter offer
Consideration in a purchase offer would best be defined as:
The purchase price
An offer which includes no earnest money is typically:
Valid if accepted by the seller
A contract to purchase real estate calls for a closing date of August 1 and notes "time is of the essence." The buyer cannot close until August 5. Which of the following best describes the situation?
The contract is void after August 1
A salesperson receives an offer on a listing. The sellers elect to issue a counter offer. Before the prospective purchaser responds to the counter offer, another offer is received from a different prospective purchaser. The second offer:
Has equal status with the counter offer
What was the percentage of commission in this sale if a property sold for $129,900 and the broker's portion of the sale was $9,093
A salesperson receives an offer on a listing. The sellers accept the offer and the buyer proceeds to arrange financing. The day before a scheduled closing, the sellers indicated they have had a change of heart and will not close
The buyers could bring a legal action against the sellers
What word or clause pledges property as security for a loan without giving up possession of it?
A buyer purchases an investment property with a tenant living in it. The seller has a security deposit of $500 from the tenant and one month's rent in advance of $650. The transaction closed on January 13th. What is the credit to the buyer or seller on the closing statement?
A credit to the buyer of $877
Which of the following is true about a purchase money mortgage?
It is signed by the purchaser and given to the seller
A purchaser goes to a lender to apply for a mortgage loan. At the time of the application, Regulation Z of the Federal Truth in Lending Act would require the lender to give the purchaser:
A disclosure of the APR
A note calls for level monthly payments for 5 years with a lump sum payment due at the end of 5 years. What type of loan is it?
A buyer's mortgage loan on a closing statement is:
A credit to the buyer
What is another name for a VA appraisal?
A borrower has a monthly principal and interest payment of $8.56 per thousand. If the $100,000 mortgage will be paid off over a 20 year period, what is the total interest paid over the life of the loan?
A mortgagor is behind on the monthly mortgage payments and the mortgagee is threatening to foreclose on the mortgage. The mortgagor agrees to give the property back to the mortgagee instead. This is called:
Deed in Lieu
Refusing credit for which of the following reasons would be a violation of the Federal Equal Credit Opportunity Act?
Federal regulations require that a purchaser of a home be given a good faith estimate of the costs of buying that home. The applicable federal regulation is:
Real Estate Settlement Procedures Act
Which of the following is an instrument used to transfer legal title in real estate?
General warranty deed
Property taxes are termed ad valorem taxes because they are based upon:
Assessed value of the property
Which of the following would be true about recording a deed?
The deed should be recorded for the grantee's legal protection
Dave and Mark are buying a home together. In an effort to reduce their interest rate and monthly payment the lender offered them to pay 3 points up front on their loan. How much will 3 points equal if their loan amount is for $135,000?
How can a buyer get the greatest protection for clear title?
Jan found the perfect building for her new veterinarian clinic. She learned the property's assessed value is $87,500 which is at a 35% assessment rate. What is the value of the property?
Before the hazards of asbestos were discovered, why was it used?
Contaminated properties where hazardous waste is located, are called what by the EPA?
YOU MIGHT ALSO LIKE...
Real Estate Dynamics (Midterm Assessment)
Real Estate Salesperson National Prep Exam 2
Real Estate - National Review - Part 1
National Real Estate Exam
OTHER SETS BY THIS CREATOR
Exam Round 4
Compucram Final Exam Missed Questions Round 3
Real Estate National Exam missed questions Round 2
Real Estate National Missed Questions Round 1
OTHER QUIZLET SETS
Fine Arts Super Quiz pt5
MIC Phys Quiz 1-2
ACC 340: End of Chapter Questions (8&9)