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Real Estate Salesperson License Exam Questions and 100% Correct Answers
The fact that an individual must go to the land describes what physical characteristics of land? - ✔✔ Immobility John and Mary are co-owners of a ... [Show More] property. John has a 60% interest in the property and Mary has 40%. What type of freehold estate do they have? - ✔✔ Tenancy in Common A Property is surveyed to determine a legal description. The surveyor works from a point of beginning, and measures terminal points and angles. What method of land description is he using? - ✔✔ Metes and Bounds John leased space in a building and installed bookcases and ceiling fans in that space. His lease will end soon. What will happen to the bookcases and fan? - ✔✔ Because they have been installed, the bookcases and fans are fixtures and have become part of the property. He must leave them behind. What is an example of involuntary, statutory, specific lien? - ✔✔ Ad Valorem Tax Lien Buyer's agent has helped her buyers find a property. The sellers have installed a fountain in the courtyard and the buyers have stressed tot heir agent that they want the fountain to be included in the purchase. What should the buyers' agent do to ensure that her clients get the fountain? - ✔✔ The agent can include wording int he buyers' offer that indicates the fountain is included in the sale. All of the following are fixtures except?: 1. Shrubs 2. Pool 3. Tree 4. Land - ✔✔ Land Mary and John are married with grown children. Both are intestate. If John dies and Mary becomes the owner of the home, what type of ownership did they have? - ✔✔ Tenancy by the Entirety A one-half acre parcel of land in Manhattan, NY is worth considerably more than a one-half acre parcel in White Plains, NY. This is an example of: - ✔✔ Scarcity What is the difference between an easement and a lien? - ✔✔ Easement is a right in land and a lien is not A seller shows his property with ceiling fans. After closing when the buyer enters the house the ceiling fans have been removed and the wires are hanging down from the ceiling. What best describes this situation? - ✔✔ The seller cannot take the fans because they are fixtures. A married couple purchases property and takes title as Tenants by the Entirety. What is not true about this? - ✔✔ When the spouse dies their share will pass to their heirs including but not limited to the surviving spouse. The local government needs your land to build a new high school. They have the right to take your land for the public good. What is this called? - ✔✔ Eminent Domain You have recently purchased property in an area regulated by zoning. It has come to your attention that you have zoning violation on the property. What should you do? - ✔✔ Request a variance from the zoning board One of the property owners in a subdivision is violating the deed restrictions. What can the other property owners do to get him to comply? - ✔✔ Seek an injunction from the courts Your property boarders a non-navigable waterway and you have riparian rights. You have built a 10-foot pier at the waters edge. How do you measure your property? - ✔✔ To the middle of the waterway Mary, a single woman, ha snow children. She owns real property and dies intestate. What happens to her real property? - ✔✔ The court will appoint an administrator and it will be distributed to her heirs by the Law of Descent. What is the best example of a buffer zone? - ✔✔ Garden apartments between single family homes and retail shops. All of the following apply to water rights except? - ✔✔ Prior appropriation Main difference between Zoning and Master Planning? - ✔✔ Zoning laws are implementation and Master Planning is a process. A property owner has a gas station on his land. The zoning committee changes the zoning to R-1. What must a property owner do? - ✔✔ Nothing. The property is automatically considered a con-conforming use. A property owner receives a notice that his land is an improvement district. What does this mean? - ✔✔ He wil l receive an additional tax bill. A property owner has installed a chain link fence on his property. He has received an official notice requiring the removal of this type of fence. This fence is most likely a violation of? - ✔✔ Deed Restrictions or Deed Covenants A single property is regulated by building codes, zoning, and deed restrictions. The rules are in conflict with one another. Which must the property owner obey? - ✔✔ Whichever rules are the most strict or limiting. M.A.I. refers to what professional group? - ✔✔ Real Estate Appraisers A builder is using inferior siding and paint in an effort to construct affordable housing. This builder is an example of? - ✔✔ Functional Obsolescence An appraiser has been asked to determine the market value of a home significantly older than all other homes in the neighborhood. What approach should he use? - ✔✔ Cost Approach using replacement cost A builder is very successful and active in a new subdivision. Homes in the subdivision are selling well, and the builder is making a good profile on the sale. The new builders arrive and begin to sell in the same subdivision. All experience a lower level of profit. Which principle of appraisal would this be? - ✔✔ Principle of Competition When measuring gross area the appraiser measures the? - ✔✔ Under roof What is the best definition for market value? - ✔✔ Most probable price In preparing an appraisal, which of the following would have the least impact on the appraiser's estimate of value? - ✔✔ Physical Deterioration An appraiser has been asked to determine the value of an old house in an up and coming neighborhood. What method would he likely use to provide the most accurate and reliable result? - ✔✔ Market Data Approach What is the least important factor for a licensee preparing a CMA? - ✔✔ Information from expired listings of unsold property in the area. [Show Less]
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National Real Estate Exam Practice Questions with Correct Solutions| Verified
A property owner has decided to do some landscaping work on his yard. He has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an... [Show More] example of... - ✔✔ improvements A property owner has a waterfront lot on a stream. He has the right to use the water from the stream. What is this right called? - ✔✔ riparian A tenant is aware that his lease will expire at the end of the month. He has begun to disassemble his display cabinets and shelves. Which of the following statements about this is true - ✔✔ the tenant can take these as they are trade fixtures A seller is attending the closing on his property. The title company has discovered an unsatisfied M&M lien on the property. Which of the following is the most likely reason for the lien? - ✔✔ plumbing work that was completed but never paid for A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is an example of... - ✔✔ encroachment A father gives his son a life estate on a property. The son leases the property. The tenant dies. What happens to the property? - ✔✔ it goes back to the son until he dies A man leaves his second wife a life estate in their home after which the property goes to his children from his first marriage. The children... - ✔✔ are remaindermen Which of the following statements about an easement is true? - ✔✔ an easement is a benefit to the dominant property owner P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P do? - ✔✔ file a suit for partition A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and D have? - ✔✔ tenants in common Under what right can the government change property use from commercial to residential only? - ✔✔ police power Ownership of the common areas of condominiums is most likely to be: - ✔✔ tenancy in common What should a buyer do to ensure that his is getting the best title to real property? - ✔✔ get a general warranty deed Which covenant in a deed guarantees that the owners will not suffer or be disturbed by any claims on the property? - ✔✔ the covenant of quiet enjoyment Excess money at a foreclosure sale goes to... - ✔✔ the borrower After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the foreclosure sale. This is called: - ✔✔ right of redemption The required distance between buildings and a federally protected endangered species wetlands is an example of... - ✔✔ a buffer zone A couple purchased a condominium. The complex has an exercise room for all residents. The couple does not use the exercise room and does not want to pay the monthly fee for the use of the facility. What can they do to avoid this fee? - ✔✔ they must pay the fee as they have a tenancy in common interest in all common areas Which of the following is personal property? - ✔✔ a lease A landlord leased space in his new retail property to an inexperienced business person. Based on location and the type of business, the landlord believes it will be a great success. What type of lease can he enter into with the tenant that will allow the landlord to benefit from the tenant's success? - ✔✔ a percentage lease A buyer has purchased a property and after closing the seller will continue to occupy the property. This is an example of... - ✔✔ sale and leaseback Your client will be able to qualify for a property they wish to purchase in about 6 months, after they had an opportunity to reduce their consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter into with a seller that will allow them to occupy the property now and purchase it within the 6 months? - ✔✔ lease with an option to buy Tenants have signed a 3 year lease on a property. In the second year the owner dies and his heirs inherit the property. They give the tenants notice to vacate. What is true? - ✔✔ the tenants can stay until the end of the lease A developer decides to build a commercial property in the middle of a residential subdivision. What is required? - ✔✔ a variance A zoning ordinance would affect which of the following? - ✔✔ the concentration of housing in a residential area If a person dies without a will, who receives their estate? - ✔✔ spouse and children What are the requirements/ criteria for real estate to have values? - ✔✔ demand, utility, scarcity, transferability What principle of value defines the most important factor for appraisal? - ✔✔ highest and best use What approach would an appraiser most likely use to value a residential rent house in neighborhood where a majority of the homes are leased? - ✔✔ income approach A licensed broker is advertising that he will perform a free appraisal if you contact him for a listing appointment. He is not in violation of the law... - ✔✔ if he is a licensed appraiser Which of the following is NOT an example of functional obsolescence? - ✔✔ deferred maintenance According to the Statute of Frauds, which of the following leases must be in writing? - ✔✔ a lease for more than one year Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next 6 months. What type of contract should he enter into with the seller? - ✔✔ an option contract A signed sales contract that has not yet gone to closing is... - ✔✔ executory When does an offer become a contract? - ✔✔ When the offeree gives the offeror notice of the acceptance Which of the following statements is true about the duties of an agent according to the common law of agency? - ✔✔ an agent must treat both clients and customers with honesty and fairness A property manager is hired and signs a management agreement with the owner. At this time, the property manager is... - ✔✔ a general agent [Show Less]
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Real Estate License Exam Questions and Correct Answers| Rated A+
A real estate licensee may have his/her license revoked for - ✔✔ accepting compensation for brokerage services from someone other than the employing ... [Show More] broker Who must comply with the state license laws? - ✔✔ A real property owner involved in a like kind exchange with another property owner who is represented by a license Which of the following is /are regulated by the real estate license laws? - ✔✔ An individual charging a finder's fee for referral of information leading to a listing A license may be revoked upon proof of - ✔✔ stating to a perspective client that the listing commission is set by state law As a salesperson involved in a real estate transaction, you may accept a commission from the - ✔✔ employing broker A salesperson may advertise a property for sale only - ✔✔ if the name of the employing broker is in the ad A licensing board or commission has jurisdiction to do which of the following? - ✔✔ Establish that all real estate commissions are negotiable A broker can have his/her license revoked for - ✔✔ failing to pay salespeople their earned commissions A real estate broker hires a secretary who does not have a real estate license to be in charge of the clerical staff. The broker agrees to pay the secretary a fixed salary. Which of the following duties may the secretary perform? - ✔✔ Typing contracts submitted by the salespeople in the broker's office Which of the following requires a real estate license? - ✔✔ Obtaining a listing to find a tenant to rent a store Which of the following is/are entitled to a hearing before the real estate licensing commission? - ✔✔ One who has passed the state licensing exam and has been denied a license A broker is guilty of commingling if he/she maintains client's monies - ✔✔ In a sealed envelope in the office safe Which of the following actions on the part of a real estate broker or salesperson could result in license revocation? - ✔✔ Quoting to prospective buyer's a sale price that is lower than the listed price A licensee could have his/her license revoked for - ✔✔ failing to disclose to the buyer customer the agency relationship he/she has with the buyer Which of the following is notrequired in an application for a real estate salesperson's license? - ✔✔ U.S. citizenship A broker's license can be revoked if he/she: - ✔✔ directs a salesperson to make the first bid on the property without notifying the owner in writing that the prospective purchaser works for the broker Which of the following is/are true of each broker licensed in the state? - ✔✔ The broker may engage in the business of real estate in less then a full time capacity Which of the following needs a real estate license? - ✔✔ Said builder-owner who is hired by you for a fee to locate a new home for you that was built by his/her competitors A broker may deposit into the client escrow deposit account - ✔✔ a small amount of the broker's money to keep the client's accounting system open Which of the following is/are true? - ✔✔ When asked by the buyer, the broker acting as a, Designated Seller Representative, cannot divulge confidential personal information about the seller What are the responsibilities of a broker concerning the monies entrusted to him/her in a real estate transaction? - ✔✔ Provide a full accounting to each party of all receipts and distributions of any fund entrusted to him/her by the parties. Which of the following can file suit to collect an earned commission? - ✔✔ A presently inactive salesperson whowants to sue his/her former broker for payment of earned but unpaid commissions A broker's license can be revoked if he/she - ✔✔ directs a salesperson to make the first bid on the property without notifying the owner in writing that the prospective purchaser works for the broker If a salesperson makes a misrepresentation in selling property: - ✔✔ the contract can be voided by the buyer and the salesperson can be disciplined by the licensing authority The purpose of the license law is to - ✔✔ protect the general public. The Rhode Island Real Estate Recovery Fund may be used to settle which of the following - ✔✔ A monetary loss by a person who sold property to a broker who had an undisclosed interest in the property In Rhode Island, the real estate license law is administered by the - ✔✔ Director of the R.I. Department of Business Regulations. How are the members of the R.I. Real Estate Commission selected? - ✔✔ By the Governor of R.I. The Director of the R.I. Department of Business Regulations has the authority to - ✔✔ make and enforce rules by which R.I. real estate licensees must abide The Director of the R.I. Department of Business Regulations may undertake an investigation of alicensee based on all of the following grounds EXCEPT - ✔✔ a random selection of licensee's In Rhode Island, a real estate license is required for a - ✔✔ person who employs fewer than 3 apartment leasing agents A real estate license is required for which of the following - ✔✔ a company that matches individuals from different parts of the country who want to exchange properties and for a fee assists them in the exchange According to Rhode Island law, any person other than the owner who sells an individual co-operative unit must - ✔✔ be licensed as a commodities broker According to R.I. License Law, a partnership, association or corporation will be granted a license only if - ✔✔ the broker retains a current license "Engaging in the real estate business" consists of acting for another for a fee in all of the following EXCEPT - ✔✔ re-selling mobile homes The office manager for a local real estate firm is responsible for the following activities: preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is - ✔✔ exempt from the real estate licensing requirements In Rhode Island applications for any real estate license must - ✔✔ be completed and submitted to the Rhode Island Department of Business Regulations after taking the written real estate licensing examination All Rhode Island real estate licensee's wishing to keep their real estate license active are required to renew their existing licenses prior to? - ✔✔ May 1 of every even year [Show Less]
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Real estate Consolidated Tests Questions and Correct Solutions
The concerns of the federal government in regulating real property right's include - ✔✔ Discrimination Which of the following is included in the b... [Show More] undle of rights inherent in ownership - ✔✔ To transfer What are three unique physical characteristics of land? - ✔✔ Immobile, indestructible, heterogeneous The concept that the state controls all bodies of water is called - ✔✔ The doctrine of prior appropriation Which government entity is the primary regulator of the real estate business? - ✔✔ The state The level of government that focuses on land-use regulations and taxation is the - ✔✔ County and local A property abutting a static body of water has ____________ rights - ✔✔ Littoral Which may an item attached to a structure be considered personal property rather than real property - ✔✔ When the owner originally intended to remove it before conveying the property Which is the "best" description of "land" - ✔✔ Everything above, on, and below the surface of the Earth What part of the non-navigable waterway does the owner of an abutting property own - ✔✔ To the middle of the waterway Surface rights include which of the following - ✔✔ Water rights What guarantees the right of private ownership of real estate in the United States - ✔✔ The constitution Which of these is the best definition for personal property - ✔✔ Any property that is not classified as real property What do we call the conversion of real property to personal property by detaching it from the real estate - ✔✔ Affixing The primary distinction between the legal concepts of land and real estate is that - ✔✔ land does not include man-made structures Uncle Jake wrote his will out on a notepad. This type of will is called - ✔✔ Holographic Of the principle forms of title of evidence in Illinois, the one that provides the best evidence is - ✔✔ A title insurance policy A deed is not valid unless it is - ✔✔ Accompanied by a consideration A hermit lives secretly in a cave on a large property. After 20 years, the hermit makes a claim of ownership. This claim will most likely be - ✔✔ Declined because possession was secretive A lender forecloses on a property. The type of deed that will convey ownership after a public auction is reconfirmed by the court is a - ✔✔ Sheriffs deed The only required clause in a deed of conveyance is one that - ✔✔ Names the parties, describes the property, and indicates a consideration A person claims ownership of a parcel of real estate to a prospective buyer, stating that she has lived on the property for five years and nobody has ever bothered her. The claimant also shows the buyer a copy of the deed. The legal basis of this claim is referred to as - ✔✔ Actual notice A break in the chain of title to a property results in - ✔✔ A cloud on title For a deed to convey title, it is necessary for the deed to be - ✔✔ accepted by the grantee The amount of the transfer tax is based on - ✔✔ The actual sales price of the property conveyed *note, in Illinois the tax can be reduced if a buyer has assumed the sellers mortgage "subject to" The type of deed that gives the highest assurance of good title is the - ✔✔ General warranty deed Which of the following best describes the concept of "legal title" to real estate - ✔✔ Ownership of the bundle of rights to real estate Which document contains a summary of the title search? - ✔✔ Title certificate Constructive notice of ownership of a parcel of real estate is primarily demonstrated through - ✔✔ Title records An owner transfers title to a property to buy an exchange for a consideration. This is an example of. - ✔✔ Voluntary alienation Title records do all of the following - ✔✔ Establish lien priority, reveal condition of title, give public notice of ownership Aunt Molly, who had no legal heirs, died without leaving a will. What will happen to her estate - ✔✔ It will escheat to the state or county after all claims have been settled Which authority regulates involuntary title transfers - ✔✔ State law regulated environmental conditions - ✔✔ Electromagnetic fields, airport traffic noise, construction in earthquake zones The Illinois residential real property disclosure act requires a seller to give a buyer written property condition disclosure - ✔✔ Before the buyer signs an offer to purchase Which of the following can terminate a private deed restriction - ✔✔ A quietclaim deed Which of the following statements about federal and state environmental laws is true - ✔✔ They must be incorporated into local land use plans Countries and municipalities have the legal right to control land use due to - ✔✔ Delegation of authority by state-level enabling acts When was led first banned in the manufacture of paint used in residential properties - ✔✔ 1978 When a property is taken by eminent domain, what does the owner have? - ✔✔ To receive "just compensation" If a property owner demonstrates a need, a zoning board may grant a - ✔✔ Variance The Illinois residential disclosure act requires that material defects related to which of the following must be disclosed by the seller - ✔✔ Asbestos, mold, methamphetamine production Who is responsible for insuring that a buyer receives the protect your family from lead pamphlet? - ✔✔ Agents for buyers and sellers Which environmental legislation created the requirement for environmental impact surveys on large development projects? - ✔✔ The national environmental policy act A central goal of public land use planning is to - ✔✔ Balance individual property rights with the community's welfare The authority that allows the government to control land use is called - ✔✔ Police power A buyer may terminate a purchase contract without liability within _________ business days, if a disclosure report indicating a material defect is received after a binding real estate contract has been entered into by all parties - ✔✔ Three If a municipality exerts its power of eminent domain against a certain property owner, what happens - ✔✔ The owner must sell the property or grant an easement to the municipality for just compensation Dioxins, mercury, and methyl tertiary butyl ether (MTBE) are examples of - ✔✔ Soil and water pollutants A property is exempt from lead disclosure requirements if - ✔✔ It has no separate bedrooms With regard to environmental issues, which of the following is true - ✔✔ Licensees must disclose potential hazards if known Unlike a deed restriction, a decoration restriction - ✔✔ Cannot be extinguished by a quitclaim deed Licensees are required to disclose to a buyer that - ✔✔ The licensee knows of a latent structural defect Referral fees and bonuses for licensees are known as - ✔✔ Compensation Seller Joe has told his agent sam that if he sells his house within three weeks, he will give sam a $500 bonus. What are the acceptable means by which Sam can be paid the bonus - ✔✔ The bonus is to be given to Sam's sponsoring broker and then passed on to sam Which of the following statements is true regarding compensation? -The sponsoring broker is the only one allowed to compensate his/her licensee -Compensation must be disclosed to clients -Compensation must always go from the seller or the buyer through the sponsoring broker to the licensee -All of the above are true regarding compensation - ✔✔ All of the above are true regarding compensation Which of the following describes a person who is not represented by a licensee but is receiving clerical acts from the licensee - ✔✔ Customer [Show Less]
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Real Estate Test Questions and Correct Solutions| Graded A+
The rights of ownership of real property include all of the following EXCEPT - ✔✔ Compatibility An important characteristic of land is that it may... [Show More] be modified or improved at some point in time. Depending on its type, an improvement may increase the value of real estate greatly. All of the following are considered to be improvements EXCEPT - ✔✔ Crops A man leases a store space to open a restaurant. He installs ovens, booths, counters, and other equipment. When would these items become real property? - ✔✔ At lease expiration, if the man does not remove them A real estate professional sells property listed by another brokerage firm in the multiple listing service. The real estate professional has been working with the buyer for many months but does not have an agency contract with him. This real estate professional has fiduciary obligations to - ✔✔ the seller. A man's house has been listed for sale for more than one year and he is very anxious to move into a retirement community. A real estate professional, who is a subagent of the seller, tells a prospective buyer to make a low offer because she is sure that the seller will accept it. Regarding the real estate professional's conduct, which of the following is FALSE? - ✔✔ She acted appropriately to sell the seller's property A real estate professional who represents the seller is showing a house to a prospective buyer-customer. The real estate professional knows that the house has water problems in the basement. Which of the following is TRUE? - ✔✔ Withholding the information prevents the buyer from making an informed decision What is the commission rate of 5% on a sale of $250,000? - ✔✔ $12,500 A broker's newest sales associate lists a unit in a condominium building for sale. In this transaction, the sales associate - ✔✔ acts on behalf of the broker. The commission on the sale of a house is $9,410, and 30% goes to the broker who listed the property. Of the remainder, the broker whose sales associate completed the transaction gets 45%, and the sales associate receives the balance. How much does the sales associate who made the sale receive? - ✔✔ $3,622.85 The type of real estate ownership that is MOST all-inclusive is a - ✔✔ fee simple estate. A father conveyed the family home to his daughter by will as a pur autre vie estate for the life of her mother. If the daughter should die before the mother, who gains possession of the property? - ✔✔ Daughter's heirs A man owned two acres of land. He sold one acre to a neighbor and reserved for himself an appurtenant easement over his neighbor's land for ingress and egress. The man's land - ✔✔ is the dominant tenement .A woman owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser? - ✔✔ Appurtenant easement A homestead exemption protects against judgments - ✔✔ of unsecured creditors The owner of a secluded area adjacent to an ocean noticed that people from town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for several years. He went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be - ✔✔ unsuccessful because the owner's property extends only to the high-water mark and the public may use the land beyond this point. In a limited partnership, - ✔✔ the general partners run the business. Which of the following parcels of land is the smallest? - ✔✔ 5% of a township "Beginning at the SE corner of the NE¼ of the section, then due west 5,280 feet more or less to the SW corner of the NW¼, then north along the west line of the section 2,640 feet, more or less, to the NW corner of said NW¼, then in a straight line to the point of beginning." How many acres does this parcel contain? - ✔✔ 160 .The current property taxes on a parcel are $1,743.25 and have not been paid. If the sale is to be closed on August 12, what is the approximate tax proration that will be charged to the seller based on a 360-day year? - ✔✔ $1,074 .A home mortgage loan closed on July 1 for $765,000 at 5.5% interest amortized over 25 years at $4,697.77 per month. Using a 360-day year, what would the principal amount be after the monthly payment was made August 1? - ✔✔ $763,808.48 .An appraiser estimated the replacement cost new of a building at $560,000. The building has an estimated economic life of 40 years and an estimated remaining life of 30 years. What is the current value of the building? - ✔✔ $420,000 .Property purchased five years ago was assessed for tax purposes at 50% of market value. The tax rate was $4.90 per $100 of assessed valuation. Today, the taxes, imposed at the same tax and assessment rates, have increased by $637. How much has the market value of the property increased assuming straight-line appreciation? - ✔✔ $26,000.00 .Find the cost to build a fence 6 feet 6 inches high around a lot measuring 90 feet by 175 feet, if the cost of erecting the fence is $2.25 per linear foot and the cost of material is $1.82 per square foot of fence? - ✔✔ $7,462.40 A business tenant pays 2% of his total gross sales volume as rent, with a minimum base rental of $1,000 per month. In the past year, his sales totaled $435,000. How much rent did he pay? - ✔✔ $12,000 .A lease provides that the tenant pays $760 minimum rent per month plus 4% of the gross sales in excess of $150,000 per year. If the tenant paid a total rent of $20,520 last year, what was the gross sales volume? - ✔✔ $435,000 .According to a broker's comparative market analysis (CMA), a property is worth $225,000. The homeowner bought the property for $190,000 and added $50,000 in improvements, for a total of $240,000. The property sold for $222,500. Which amount represents the property's market price? - ✔✔ $222,500 A suburban home with four bedrooms and only one bathroom suffers from what condition? - ✔✔ Functional obsolescence A house sold for $180,000 and the buyer obtained an FHA-insured mortgage loan for $120,000. If the lender charged two discount points, the buyer would pay - ✔✔ $2,400. .A buyer bought a house for $125,000. The house, which had originally sold for $118,250, appraised for $122,500. Based on these facts, if the buyer applies for an 80% mortgage, what will be the amount of the loan? - ✔✔ $98,000 A developer is planning a warehouse that will contain 103,000 square feet. Construction costs are estimated to be $62 per square foot. Ninety-five percent financing is available for the structure. How much money must the developer put up to complete the project? - ✔✔ $319,300 [Show Less]
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Real Estate Exam Questions and Correct Answers| Rated A+
limited partnership - ✔✔ investors in properties invest money and receive a share of profits without being liable for the debts common tenance - â... [Show More] œ”✔ have equal or unequal amounts of property and may acquire title at different times A real estate broker associated with a principal broker is allowed to accept commission directly from who? - ✔✔ Only from his principal broker. testate intestate - ✔✔ will without will reconveyance deed - ✔✔ used in trust deeds trust deed - ✔✔ a written contract given to a lender by a property owner making the real property security for the loan riparian - ✔✔ owner is one who owns land boarding the river A real estate broker associated with a principal broker is allowed to accept compensation for his participation in a real estate transaction, directly from.. - ✔✔ A real estate broker associated with a principal broker participating in a real estate transaction may accept compensation directly only from his principal broker. ground water act of 1955 - ✔✔ requires permit on all wells An Oregon principal broker can pay a finder's fee... - ✔✔ to a real estate broker previously licensed with him who earned the fee prior to transferring his license. Which of the following acts are permitted under the OREgon License Law? 1. A real estate broker associated with a principal broker sharing a commision directly with a licensee from another office. 2. A principal broker paying a finder's fee to an unlicensed person for referring a buyer. 3. None of these. 4. A principal broker paying a finder's fee directly to a licensee associated with another principal broker. - ✔✔ 3. None of these A real estate broker associated with a principal broker is allowed to accept a commission directly from who? - ✔✔ His principal broker. An Oregon principal broker can pay a listing finder's fee.. 1. directly to a real estate broker associated with another broker. 2. to a licensed Oregon real estate property manager referring a buyer to him. 3. to a real estate broker previously licensed with him who earned the fee prior to transferring his license. 4. to a licensed Oregon real estate property manager for referring the buyer in a transaction involving the lease-option of real estate. - ✔✔ 3. to a real estate broker previously licensed with him who earned the fee prior to transferring his license. An Oregon principal broker, may NOT share a commission with... 1. a broker previously associated with him, who earned the fee prior to surrendering his license. 2. a residential broker licensed in another state who comes to Oregon to help his buyer purchase a home listed with him. 3/ a broker previously associated with him, who earned the fee prior to transferring his license. 4. a broker licensed with him who earned the fee prior to placing his license on inactive status. - ✔✔ 2. Smith is a real estate broker assoicated with Brown Realty. Jones is a real estate broker assocaited with White Realty. Both firms belong to the same multiple listing service. Smith secures a listing and places it in the MLS. Jones sells the property for White Realty. Jones can collect a commission directly from... 1. Brown Realty 2. the owner of the property. 3. White Realty. 4. the escrow agent who closes the transaction. - ✔✔ 3. Under federal fair housing laws, the term "steering" may mean all of the following except... 1. failing to inform a person of the desirable features of a dwelling or a community because of his familial status. 2. telling a neighborhood's residents that minorities are buying homes in the neighborhood in attempt to get existing residents to sell their homes 3.telling a person he would not be comfortable with the residents of the neighborhood because of his religion. 4. discouraging a person from inspecting property because of his sex. - ✔✔ B Steering is channeling home buyers into or away from particular areas on the basis of the race, color, sex, religion,familial status, etc. The prohibitions of the 1968 Fair Housing Act apply to privately owned housing when I. a property manager, broker or other person engaged in selling or renting dwellings is used II. discriminatory advertising is used. - ✔✔ I & II The law applies to all residential properties except: -sale or rental of single-family property owned by an individual if neither a broker nor discriminatory advertising are used, no more than one dwelling in which the owner was not the most recent resident, is sold during any 2-year period, and the owner owns no more than three houses total. - rental units in a 1-4 family building in which the owner occupies one of the units if no discriminatory advertising is used. - dwellings owned by a religious organization for other than commercial purposes, if membership in the religion is not restricted on the basis of race, color, sex, national origin, familial status, or handicap. - lodgings or private clubs used for other than commercial purposes by members. * NOTE* the question does not ask what is prohibited, it asks when the law applies. The law does not apply when agents are used and whendiscramtory advertising is used. Title VIII of the Civil Rights Act, the Fair Housing Act, applies to... 1. all of these 2. multiple family units containing six apartments, with an owner that occupies one of the residence. 3. a single-family unit that is individually owned by the broker selling it. 4. a single- family home owned and sold by a private individuals who own more than three such dwellings at any one time. - ✔✔ 1. any of these ?? Which federal law prohibits discrimination against handicapped persons in commercial properties? 1. The Civil Rights Act of 1968 2. The Americans with Disabilities Act (ADA) 3. The fair Housing Amendments Act of 1988 4. The Civil Rights Act of 1866 - ✔✔ 2. [Show Less]
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Real Estate Vocab Questions and Correct Solutions| Verified
The earth's surface extending downward to the center of the earth and upward into space, including all things permanently attached, is know as - ✔✔ R... [Show More] eal Estate Movable objects, which are not considered real estate, are known as - ✔✔ Personal Property The permanent right to use another's land for the benefit of a neighboring parcel is known as - ✔✔ An Appurtenant Easement- an easement for adjacent properties or neighbors, which run with the land. (Think of the A's - Appurtenant = Adjacent of Another) The ownership of property by one person only is known as - ✔✔ severalty A condensed history of title to a particular piece of real estate, including a summary of the original grant, and all subsequent conveyances and encumbrances affecting the property, is known as - ✔✔ abstract of title The illegal practice of inducing homeowners to sell their properties by making representations about the prospective entry of persons of a certain race/national origin into the neighborhood is also called - ✔✔ Blockbusting- trying to induce or force people to move out of their neighborhood or BLOCK The term for something that grants the right to use another's land for a specific purpose, and is considered an incorporeal interest in land is - ✔✔ Easement The clauses in a deed that limit the future uses of a property are known as - ✔✔ deed restrictions The loss of value in any property, regardless of the specific cause, in an appraisal, is known as - ✔✔ depreciation A person who has complete control over a parcel of real estate is said to own a - ✔✔ fee simple estate The law that requires real estate contracts to be in writing to be enforceable is the - ✔✔ statue of frauds The effort that brings about the desired result in a real estate sale is known as - ✔✔ procuring cause A naturally occurring gas that is suspected of causing lung cancer is known as - ✔✔ radon A claim or liability attached to a property is called - ✔✔ an encumbrance- Restrictions, liens, and buyer's claims are all forms of encumbrances In an appurtenant easement, the party that benefits is known as the - ✔✔ dominant tenement An encumbrance that affects the title, usually related to money, is known as - ✔✔ a lien A recorded legal document that gives constructive notice that an action affecting a certain property has been filed in court is called - ✔✔ lis pendens- "litigation pending" This document that defines the relationship between the real estate firm and the seller is the - ✔✔ listing agreement The rights of a landowner to use waters of an adjacent stream or river are known as - ✔✔ riparian rights- River and Riparian The rights of a landowner to use waters of an adjacent lake or ocean are known as - ✔✔ littoral rights- Lake and Littoral A claim or interest revealed by a title search is called a - ✔✔ cloud on title When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called - ✔✔ a balloon payment The process in which boundaries are measured and land areas determined is called - ✔✔ a survey An estimate of the value of something, usually a property, is known as - ✔✔ an appraisal A lien placed on the property without the consent of the owner is known as a(n) - ✔✔ involuntary lien This type of lien is created by law. It is known as - ✔✔ a statutory lien The type of lien that is secured by specific property and only affects that property is known as - ✔✔ a specific lien The system established in 1785 by the U.S. government, which describes land with principal meridians and base lines, is called - ✔✔ rectangular survey system A listing contract under which the broker's commission is contingent upon his producing a ready, willing, and able buyer before the property is sold by the seller or another broker is known as - ✔✔ an open listing A portion of a township under the rectangular survey system, which is a square with mile-long sides, is called a - ✔✔ section The type of easement that is necessary for another person to enter his own land by going through another's property is known as - ✔✔ an easement by necessity A contract in which all the parties have fulfilled all their promises and performed the contract is known as - ✔✔ an executed contract An oral contract in which the parties state the contract's terms and express their intentions in words is known as - ✔✔ an expressed contract The type of depreciation caused by outside factors, which are external to the property, is known as - ✔✔ external obsolescence The benefit, interest or value that induces a promise, and the glue that binds a contract, is known as - ✔✔ consideration [Show Less]
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Real Estate Exam | Already Passed
In contrast to land that has buildings on it, vacant land is ______. - ✔✔ Harder to finance Camille is a young, ambitious professional who works d... [Show More] owntown. Which of the following new construction properties would probably be of most interest to her? - ✔✔ City condo Bessie is a(n) ______ buyer who focuses on distressed properties and deep discounts. She often pays with cash - ✔✔ Investor Owning a condo on a golf course is Tom's goal, and Erma is happy to be along for the ride. The condo association takes care of maintenance, and Tom is steps away from the clubhouse at all times. What better way to spend their golden years? What type of buyers are Tom and Erma? - ✔✔ Retirees The MLS is a good source for data when researching a subject property. What information will you find there? - ✔✔ Former sales price How do inventory rates work as a market indicator? - ✔✔ They show how long it takes to sell the supply of homes on the market. You've just received a trio from a title company. It contains an assessor's map and property profile, and ______. - ✔✔ Deed What do investors call an investment in vacant land?_. - ✔✔ Dead money Vacant land is land that has no ______. - ✔✔ Buildings How would you perform a market analysis on a fixer or distressed property? - ✔✔ Follow the same procedure as you would for a non-distressed property. James has a new listing, and in doing his research, he viewed the former listing. What would he find there? - ✔✔ Amenities at time of listing Which if these is NOT an issue that can occur with new construction properties? - ✔✔ Financing for first-time buyers Which of the following statements about new construction properties is true? - ✔✔ New construction rarely appeals to older buyers. ______ rely on their knowledge from previous home buying experiences. This experience helps them to identify what they're looking for in a new property, which is often more space or a newer home with a good location and extra living space. - ✔✔ Trade-up buyers Buyers in this category want to purchase smaller homes, likely because their children have moved out or because their financial situation has changed. Many look for smaller properties that can offer the same quality of living as the property they're moving from. - ✔✔ Trade-down buyers Which of the following is one of the primary reasons that developers like to invest in unimproved land? - ✔✔ It's easier to build on a blank canvas than it is to retrofit existing infrastructure. ______ often have a fixed income, but they may have large down payments from selling prior homes. Accessible properties with little to no maintenance tend to be attractive to these buyers. - ✔✔ Retirees You've just received a potential listing referral from a licensee friend in another city. Besides calling the sellers, what's one thing you can do right at the beginning to start getting a feel for the property? - ✔✔ Check Google Maps to get an idea of the property's street view, landscaping, lot privacy, and neighboring properties. These types of buyers want to purchase larger or newer homes. They're fairly knowledgeable because they've purchased before. - ✔✔ Trade-up buyers Which of the following information can be found in a subject property's former listing on the MLS? - ✔✔ Amenities at time of listing Misti, your client, is looking at a three-bedroom, two-bathroom home in a brand new suburban neighborhood. Misti is a young professional who works downtown. What do you tell her? - ✔✔ "You'll want to get a home inspection, even though it's new construction." Owner-occupied fixers requiring major work may be eligible for ______. - ✔✔ Rehabilitation loans Clem, a licensee, told his buyers of a new construction property that they wouldn't have to worry about a home inspection. Is this correct? - ✔✔ No. New construction may have repair issues. Which of the following may be the result of building delays on a new construction? - ✔✔ A delay in closing Bessie is a(n) ______ buyer who focuses on distressed properties and deep discounts. She often pays with cash. - ✔✔ Investor Percy wants to buy unimproved land. When he contacted his lender, he was surprised to find that he would need a 50% down payment. Why is that? - ✔✔ There's more risk financing unimproved land. You can't move land, and location plays a huge role in the value of real estate. This refers to the ______ of the real estate market. - ✔✔ Immobility Shane is preparing a CMA. He may need to make an adjustment to a comparable for which item of difference from the subject property? - ✔✔ Busy street A buyer has assembled quite a list of repairs he'd like the seller to make. The seller, fearing she might lose this buyer, agrees to every item on the list. In what type of market is this concern most valid? - ✔✔ cold Larry is buying a new home and he makes an offer that's quite a bit under list price. The seller, fearing she might lose this buyer, agrees to Larry's offer. In what type of market is this concern most valid? - ✔✔ cold Price levels are an obvious indicator of ______. - ✔✔ demand Home affordability is affected by government controls and policies, such as ______. - ✔✔ Interest rates, property tax rates, and the availability of funds for loans What makes real estate unique? - ✔✔ Indestructability When your broker explains market value, she would be correct to state what? - ✔✔ "It's the probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership." Which of these is the correct definition for market value? - ✔✔ The probable price at which a willing seller and a willing buyer, neither of whom are under undue pressure, would transact a sale in a competitive and open market Which of these dangers might buyer's agents see from clients in a cold market? - ✔✔ Waiting too long and missing the market David is performing a market analysis, and he's gathered comparable sales data. Why might he also want to gather information on comparable properties that expired without selling? - ✔✔ To demonstrate the price at which a comparable property won't sell How do vacancy rates work as a real estate market indicator? - ✔✔ When vacancy rates decrease, more renters move into the buying market. When preparing a market analysis, several factors can be used for comparability. Which of these would be a good factor to use? - ✔✔ Condition of sale Pembra's search for comparables turned up 65. What should she do? - ✔✔ Screen by those that are most similar to the subject property [Show Less]
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Real Estate Finance Exam Questions and Correct Solutions| 100% Correct
Freddie Mac is a(n) - ✔✔ Freddie Mac is a(n) Which agency guarantees that investors will receive timely payments of principal and interest on mort... [Show More] gage-backed securities backed by the FHA or DVA? - ✔✔ Ginnie Mae Fannie Mae currently buys loans at - ✔✔ an administered price. Which of the following types of loans do lenders generally keep in their own investment portfolios rather than sell on the secondary market? - ✔✔ Jumbo When Fannie Mae purchases mortgage loans from lending institutions, they are packaged into - ✔✔ mortgage-backed securities. Fannie Mae is a - ✔✔ a quasi-private corporation with government oversight The term used to describe loans that conform to the Fannie Mae/Freddie Mac qualifying guidelines is - ✔✔ conforming. Loan originators that sell mortgages to Fannie Mae can - ✔✔ continue to service the loans. All of the following agencies are participants in the secondary mortgage market except - ✔✔ CalHFA The Federal Housing Finance Agency (FHFA) regulates - ✔✔ Fannie Mae, Freddie Mac, and the FHLB. Which of the following amounts is the interest adjustment on a new $100,000 loan at 7% issued on March 20th, if the first payment is not due until May 31? (Use 360 days) - ✔✔ $797.22 If the property taxes and insurance premiums are due in November and a new loan closes on the following first day of January, how many months' impounds will be charged to the borrower? - ✔✔ 3 months The two-point discount on the sale of a $175,000 home subject to a new $150,000 loan is - ✔✔ $3,000.00 Which of the following items is usually charged to the buyer? - ✔✔ Impound fund balance on assumed loan In the real estate lending business, assignment refers to - ✔✔ sale of a loan on the secondary market. In order to remove a cloud from a property's title, the owner must file a(n) - ✔✔ suit to quiet title. Title insurance guarantees the validity and accuracy of the - ✔✔ synopsis of the recorded history of a property. In real estate finance, an abstract is a(n) - ✔✔ synopsis of the recorded history of a property. Which of the following items is usually charged to the seller? - ✔✔ Prepayment penalties All of the following items are categorized as actual notices except a(n) - ✔✔ unrecorded lien. The income approach estimate of value for an apartment project generating $200,000 gross annual income with a 40% operating ratio and a 10% market capitalization rate is - ✔✔ $1.2 million. Borrowers are considered good credit risks and eligible for real estate loans when their - ✔✔ current ratio is 2:1. The cost approach estimate of the value of a 10-year old house (50-year life expectancy, straight line depreciation), with 2,500 square feet at an $82 replacement cost per square foot, and a lot value of $15,000 is - ✔✔ $179,000. When creating a loan for 50 percent of a collateral property's value, most of the underwriting will be focused on the - ✔✔ value of the collateral. Credit scoring reflects a borrower's - ✔✔ credit risk factors. Underwriting a loan for real estate finance includes all of the following procedures except checking the - ✔✔ willingness of the lender to make the loan. If an appraiser finds that the market, cost, and income approaches indicate values of $100,000, $105,000 and $110,000, and they are weighted 50%, 30% and 20% respectively, then the reconciliation value will be - ✔✔ $103,500.00 What is meant by the phrase "net worth is anything you want it to be, while cash is king"? - ✔✔ Lenders place great weight upon a borrower's cash position. When checking on a loan applicant's employment circumstances, all of the following items will be questioned except - ✔✔ job qualifications. Under a conventional loan with principal, interest, taxes, insurance, and homeowners fees totaling $850 per month, a borrower must earn at least which of the following gross monthly incomes to qualify? - ✔✔ $3,035 A Covenant of Seisin in a loan document - ✔✔ stipulates that the borrower has the authority to pledge the property as collateral. Covenants that "run with the land" mean that they - ✔✔ endure no matter how many times the property sells. Where possible, lenders prefer to use the deed of trust as a financing instrument primarily because it - ✔✔ avoids the time and costs of a judicial foreclosure. A charge against a property wherein the property itself is made security for the performance of a certain act describes a(n) - ✔✔ lien. The note executed for a loan - ✔✔ is a fully enforceable promise to pay. When a property is purchased "subject-to" the balance of an existing loan, all of the following statements are true except that the - ✔✔ buyer becomes personally liable for the loan. A mortgage is a(n) - ✔✔ lien on the property. The power of sale clause in a trust deed in a nonjudicial foreclosure allows the lender - ✔✔ a shorter foreclosure period. The inclusion of a Due-On-Sale clause in a loan contract - ✔✔ requires the lender's permission for its assumption. The provisions of a real property sales contract - ✔✔ retain title in the name of the vendor. A graduated payment loan with less than interest-only payments results in - ✔✔ negative amortization. Under HUD's Home Equity Conversion Mortgage, monthly payments are paid to borrowers for - ✔✔ as long as equity is available. A construction lender requires all of the following activities to take place before advancing any draws except that the - ✔✔ builder will pay additional points at each draw to offset the time value of money. Under an open-end loan calling for obligatory future advances, the borrower is able to secure additional funds - ✔✔ under the terms of the original mortgage. A lender's annual return on a $100,000 wraparound loan drawn at 10% interest-only for five years, subject to an existing $65,000 loan at 7.5% interest is - ✔✔ 14.64%. A completion bond for a construction loan is generally issued by - ✔✔ an insurance company. Borrowers are attracted to 15-year mortgages because they allow them to - ✔✔ save money on interest. [Show Less]
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New York State Real Estate Salesperson Licensing Exam Questions and Answers
In NYS, how old must one be to enter into contracts? - ✔✔ 18 What other capability should they possess? - ✔✔ Mental and emotional capability... [Show More] What happens if one of the parties to the contract is a minor? - ✔✔ The contract is voidable by the minor What does the zoning board of appeals do? - ✔✔ Grants variances What regulates construction standards in NYS? - ✔✔ Building codes What does municipal engineer's office do? - ✔✔ Oversees planning and construction of major highways, sweet systems and water connections If a property ad states that the property is near the vicinity of a geographical area, what else mud the ad include? - ✔✔ It must include the name of the geographical area where the property is actually located Who is usually exempt from property taxes? - ✔✔ Disabled, veterans, farmers, elderly gold star parents *kids die in the war, star program homeowners Who is not usually exempt from property taxes? - ✔✔ Second home owners What covers fully or personal property lost in a fire? - ✔✔ Replacement cost Find the square footage of a rectangular shaped floor plan. How do you find the area of a square/rectangle? - ✔✔ Length x Width = Area What is the cash on cash return on a $2,000,000 property with a down payment of $500,000 and $15,000 monthly rental income? - ✔✔ 36% Who hires the agent? - ✔✔ Principal or client What is not a CMA (Comparative Market Analysis?) - ✔✔ An apprasial What cannot a salesperson do? - ✔✔ Collect money directly from the client or customer When should the Agency disclosure form be submitted? - ✔✔ At the first substantive contact Which document describes the agency (who he or she represents) of the salesperson? - ✔✔ Agency disclosure form What is another name for the slope of a roof? - ✔✔ Pitch What carcinogenic component was used as insulation in electric transformers that contaminated soil and ground water? - ✔✔ PCB's or polychlorinated biphenyls What can brokers provide their salespeople if they are independent contractors? - ✔✔ Office phone Whats right to access whiter from a river or stream called? - ✔✔ Riparian What did the civil rights act of 1866 protect without exception? - ✔✔ Race What did the 1988 amendment to the civil rights act protect? - ✔✔ Disability and familial status What is convincing owners to sell/lease property by telling them a particular group of people are moving into the area called? - ✔✔ Blockbusting What is it called when lenders/insurance agents refuse to do business in a certain area based on the characteristics of the people living there? - ✔✔ Redlining Unless specified a lesser estate, transfer of title to real property in NYS creates what type of interest? - ✔✔ Fee Simple What is another name for transfer of title to real property? - ✔✔ Conveyance What is it called when the government dictates how a property can be used? - ✔✔ Zoning Who issues real estate licenses? - ✔✔ NY Department of State Who oversees licensing and registration of mortgage bankers and brokers? - ✔✔ NYS banking department Which department oversees drinking water safety? - ✔✔ Department of Health Who determines commission? - ✔✔ Principal/Client and the broker What occurs when the agent represents the seller but also works in the best interests of the buyer? - ✔✔ Undisclosed dual agency A real estate salesperson is what type of agent? - ✔✔ Special What clause in the deed describes the property? - ✔✔ Legal descriptions What type of income is partnership/investments? - ✔✔ Portfolio Whats the name of the policy that provides additional liability coverage beyond the primary policy? - ✔✔ Umbrella policy What type of maintenance is fixing a leaky faucet? - ✔✔ Corrective maintenance What are property taxes based on? - ✔✔ Assessed value What is the market value? - ✔✔ What the property will sell for in a competitive marketplace What is a loft lease? - ✔✔ Its a lease for space that is not divided into rooms Which types of commercial properties use percentage lease? - ✔✔ Retail stores/ shopping malls Who is responsible for the terms in the lease if the unit has been subleased? - ✔✔ Lessee [Show Less]
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