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Consist of 80 multichoice Questions with Answers
- a broker charges a leasing fee of one-half of the first months rent and a management fee of 8% of all rents collected. the broker negotiates a two-year lease at a monthly rental of $550. which of the following amounts will the broker earn on this lease
a. $1, b $1, c. $1, d. $1, Answer: B. $1,
- a property manager works in the BEST interests of the
a. tenant b. owner
- the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot b. office building c. single-family home d. cooperative apartment Answer: B. office building
- the G's purchased a house from the T's. the G's agreed to the following terms: monthly payments of $650 to the T's and the balance to be paid in full after 7 years. at the time the balance is paid, the T's will give the G's a warranty deed transferring title. in this situation, what type of financing was used
a. fha loan b. wrap around mortgage c. package mortgage d. contract for deed Answer: D. contract for deed
- In stating a seller's price and terms to a prospective buyer, the seller's broker is required by the law of agency to state ONLY those terms that are
a. included in the listing agreement b. based on the brokers evaluation of prevailing prices and terms c. favorable for the seller, as determined by the broker d. attractive to buyers, as determined by the broker Answer: A. included in the listing agreement
- a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20 feet in the rear, and 20 feet on each side. if a builder wants to put a one-story building on the lot, the MAXIMUM square footage it can contain is
a. 3,300 sq ft b. 3,600 sq ft c. 6,300 sq ft d. 6,600 sq ft Answer: C. 6,300 sq ft
- a house with a market value of $80,000 is located where property is as- sessed at 70% of market value. if the tax rate is $4 per $100 of assessed value, the property taxes are
c. seller d. brokerage Answer: B. buyer
- K and R bought a house as tenants in common. If K dies, which of the following statements about ownership of the house is CORRECT?
a. it automatically becomes tenancy in severalty b. it is divided, with R retaining R's original interest and the balance going to K's estate C. R holds fee simple ownership in k's share of the property d. R holds life estate ownership in K's share of the property Answer: B. it is divided, with R retaining R's original interest and the balance going to K's estate
- a visually-impaired person with a service animal completes an application for rental of an apartment that has a vigorously enforced "no pets" policy in the building. according to the federal fair housing act the owner MAY:
a. refuse to rent as a result of policy b. require the person to house the animal outside c. require the person to restore any damage that results from the animal
d. increase the customary security deposit Answer: C. require the person to restore any damage that results from the animal
- Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called
a. adverse possession b. foreclosure c. specific performance d. forcible detainer Answer: C. specific performance
- a developer who leases real property from the owner with the intent of constructing an office building has which of the following interests in the property?
a. leased fee
b conventional loan c. blanket loan d. adjustable loan Answer: D. adjustable loan
- a salesperson who completes a written listing agreement with a seller is helping to create a contractual relationship between the
a. salesperson and the seller b. salesperson and the buyer c. salesperson and the listing broker d. salespersons broker and the seller Answer: D. salespersons broker and the seller
- buyers make an earnest money deposit on a property and sign a contract that is contingent on specific financing terms. if a bank commits to the financing, but the buyers change their minds and notify the seller in writing that they do not intend to buy the property, which of the following statements is correct
a. the bank may sue the buyers b. the seller may sue the buyers for breach of contract c. the buyers may rescind the contract only after paying the brokerage fee
d. the buyers are entitled to the return of the earnest money deposit Answer: B. the seller may sue the buyers for breach of contract
- which of the following documents is usually prepared when a real estate buyer also purchases a seller's riding lawn mower
a. an option b. a wraparound loan c. a conditional sales contract d. a bill of sale Answer: D. a bill of sale
- the difference between the value of a property and the total amount of liens against it is known as
a. market value b. equity c. actual cash value d. collateral Answer: B. equity
- which of the following actions is an example of blockbusting
a. telling homeowners that a neighborhood will have a new golf course
- which of the following credit terms may be included in an advertisement for real estate without further disclosure?
a. "8% annual percentage rate" b. "5 years to repay" c. "$5,000 down payment d. "$300 monthly payment" Answer: A. "8% annual percentage rate"
- when a contract states that "time is of the essence," the contract MUST be delivered and presented
a. within 24 hours b. within 48 hours c. electronically d. as soon as possible Answer: D. ASAP
- which of the following clauses in a conventional mortgage instrument entitles the lender to accelerate the loan if the loan is assumed
A. prepayment b. right-to-sell c. due-on-sale
d. variable interest rate Answer: C. due-on-sale
- a seller has delinquent property taxes of $572. at closing, the taxes will be a
a. debit to the seller $ b. debit to the buyer $ c. credit to the seller $ d. credit to the buyer $ Answer: A. debit to the seller $
- an apartment project with 160 units has 8 vancancies. the vacancy rate is:
a. 5% b.8% c 92% d. 95% Answer: A 5%
- to be certain that a property has no encroachments, an appraiser should check a
a. survey b. deed
d. group insurance Answer: B. errors and omissions insurance
- A broker is typically considered to be which of the following types of agents
a. a special agent b. universal agent c. general agent d. individual agent Answer: A. special agent
- which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of beginning?
a. rectangular b. lot and block c. metes and bounds d. geodetic Answer: C. metes and bounds
- the donation of private land for public use is called
a. accretion
b. dedication c. assignment d. condemnation Answer: B. dedication
- when a private property is abandoned, the state MAY acquire title to that property under the right of
a. escheat b. eminent domain c. police power d. taxation Answer: A. escheat
- a lease that provides for periodic increases of rent at regular intervals is called a
a. graduated lease b. percentage lease c. yearly lease d. long-term lease Answer: A. graduated lease
- a listing salesperson MUST disclose what info to potential buyers
a. personal property cannot be included in the purchase and sale agreement b. an amendment to the contract is required to make it enforceable c. they are legally obligated to withdraw their offer d. they are not legally obligated to purchase the house Answer: D. they are not legally obligated to purchase the house
- a minority couple asks a licensee to show them a listed house. what is the licensee guilty of if the licensee suggests that they look at houses in areas with larger minority populations than that of the listed house
a. blockbusting b. panic peddling c. steering d. redlining Answer: C. steering
- federal law requires a written disclosure to be provided to purchasers for which of the following environmental hazards?
a. lead-based paint b. formaldehyde c. asbestos d. radon
Answer: A. lead-based paint
- which of the following forms of ownership may be mortgaged, taxed, sold, or otherwise transferred in ownership, separately and independently of all other units in a structure?
a. time share b. cooperative c. condo d. limited partership Answer: C. condo
- a broker lists a property. the broker advertises and shows the property several times, but after each showing, the owners call the broker with a list of unreasonable restrictions they want placed on the showing of the property. the broker decides not to continue the listing. in this situation the broker:
a. must sue the owners to obtain a release from the listing contract b. must give the owners 30 days advance written notice to cancel the listing contract c. may not cancel the listing contract
