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Questions in this quiz (80)
11: The presence of government regulated wetlands on a building lot:
- AA: Adds to the Value of the Lot
- BB: Lowers property taxes
- CC: Renders the lot useless
- DD: Is a material fact
2A property has an appraised value of $50,0000. A loan is granted on the property for 75% of its appraised value.The loan is spread over 25 years at an interest rate at ¾% per month. If the amount paid toward the principal is to remain constant throughout the life of the loan, what is the FIRST monthly payment.
- AA: $125
- BB: $281
- CC: $406
- DD: $500
3A licensee describes a house as “fabulous and wonderful" and “having the best view in town” . This is most likely an example of
- AA: Puffing
- BB: Deception
- CC: Fraud
- DD: Misrepresentation
4The Final decision in establishing the listing price is made by the:
- AA: Salesperson
- BB: Broker
- CC: Appraiser
- DD: Seller
5The Compensation a buyer agrees to pay under the terms of a buyer representation agreement is to be paid at settlement to the:
- AA: Listing Broker
- BB: Buyer’s Broker
- CC: Seller’s Agent
- DD: Buyers Agent
6If two lots, each 75 feet wide by 105 feet long, cost $30,000 in total, what is their approximate cost per square foot?
- AA: $1
- BB: $2
- CC: $3
- DD: $4
7If a license is paid a salary of $600 per month plus half of the office 6% fee on all sales, what MUST the licensee’s monthly sales be in order for the license to receive a total monthly income of $2,220?
- AA: $27,000
- BB: 37,000
- CC: $54,000
- DD: $74,000
8A valid estate sales contract MUST:
- AA: Be signed by the seller
- BB: Provide for installment payments
- CC: Provide for possession of the property by the buyer
- DD: contain a metes and bounds description of the property
9According to the Fair Housing Act, which of the following individuals is permitted to reside in housing with a familial status exemption?
- AA: 50-year old employed nurse
- BB: A 53-year old retired construction worker
- CC: A 54-year old retired teacher
- DD: A 63-year old employed postal worker
10Which of the following items would have to be disclosed to prospective buyers by the listing broker?
- AA: The Price the seller paid to purchase the property
- BB: A defect existing in the property being offered
- CC: The seller's motivation for the sale
- DD; The lowest price the seller would accept
11As defined in a real estate contract, the due diligence period allows which party to thoroughly investigate a property?
- AA: Broker
- BB: Lender
- CC: Buyer
- DD: Seller
12The owners of a house sign a listing agreement and later tell the license that the garage roof leaks. If the owners tell the licensee not to reveal the roof’s condition to any prospective buyer, the licensee MUST:
- AA: refer the owner to a licensed and insured roofer
- BB: disclose the condition of the roof to prospective buyer
- CC: Advise only prospective buyer who ask about the roof’s condition
- DD: Refer all prospective buyers who have questions about the roof’s condition to the seller
13The direct sale comparison (market data) approach would be MOST appropriate for establishing the value of a.
- AA: 5-year old single family residence
- BB: 10-unit apartment building
- CC: Retail commercial property
- DD: 25-year old church
14The act of recovering title to property lost through foreclosure on a mortgage is called:
- AA: Redemption
- BB: Reclamation
- CC: Restitution
- DD: Reparation
15When using the cost approach to determine the value of a residential dwelling, an appraiser SHOULD:
- AA: adjust the comparable property if economic conditions have changed
- BB: user comparable property locations when estimate value
- CC: Determine replacement value less depreciation
- DD: Calculate the potential net operating income
16When a prospective buyer ask about a property location in regard to a flood zone, the licensee SHOULD direct the buyer to:
- AA: Calculate the average cost of flood insurance
- BB: Obtain an up-to-date flood map from FEMA
- CC: Determine the location of the nearest storm water management system
- DD: Locate the property on an elevation map
17When a married couple take title to a property as tenants in common, they have elected a form of ownership that allows for:
- AA: Title in severalty
- BB: Dissolution upon divorce
- CC: the right of survivorship
- DD: Unequal shares of ownership
18A homeowner who plans to travel for a year asks a real estate firm to rent the house for this period and indicates a preference for a white family rather than a black family, “if at all possible.” Under the Federal Fair Housing Act, the broker SHOULD inform the owner that these instructions
- AA: Cannot be followed because they violate the ACT
- BB: Will be followed only if the owner accepts responsibility in case of a lawsuit
- CC: Will be followed only if the owner put them in writing
- DD: Will be followed because normally the house if owner occupied
19Federal law REQUIRES a written disclosure be provided to purchases for which of the following environment hazards?
- AA: Lead-Based Paint
- BB: Formaldehyde
- CC: Asbestos
- DD: Radon
20A buyer purchased a house for $80,000 and obtained a $60,000 mortgage. If 3 discount paint were charged to original the loan, the total cost of the origination fee is:
- AA:$300
- BB: $600
- CC: 1,800
- DD: $2,400
21Under the law of agency, a broker’s responsibility to the principal is to:
- AA:Exercise care, obedience, accounting, and disclosure
- BB: Put the listing in a multiple listing service
- CC; Respect the customer’s confidently
- DD: Advertise the property weekly
22In a condominium project, the BEST term to describe swimming pools and laundry room for the use of unit owners is:
- AA: Common elements
- BB: Limited common elements
- CC: Fee simple elements
- DD: Leasehold elements
23A seller rejects an off of $84,000 that is listed for $85,000. One week later, another prospective buyer asked the salesperson to submit an offer of $82,000 for the property. In this situation, the salesperson SHOULD:
- AA:Advise the buyer of the minimum offer the seller will accept
- BB: Disclose that a higher offer was rejected by the seller
- CC: Refuse to submit the offer to the seller
- DD: Present the offer to the seller
24The potential gross monthly rent on an apartment building is $5,380. In July, operating expenses were $3,500. A tenant whose monthly rent is $625 failed to pay rent in July. If the property manager’s commission is 6% of the rental income, the manger;s fee for July was:
- AA: $113
- BB: $210
- CC: $285
- DD: $323
25In a real estate closing, the buyer generally pays for the:
- AA Releaser of the mortgage
- BB: recording of a new mortgage
- CC: Preparation of the deed
- DD: Sales commission
26Broker P lists a property for a seller. A buyer, represented by Broker Q, submits an offer to purchase the house and tells the Broker P that they are willing to pay up to $ 10,000 more than the offer price, if the seller counters. In this situation, Broker P is:
- AA: Not obligated to convey the information to the seller because it would violate the buyer confidentiality privacy
- BB: not obligated to convey the information to the seller because the buyer is not bound by this verbal representation
- CC: Obligated to withdraw from the transaction because of conflicting obligations to both parties
- DD: obligated to convey the information to the seller because of the duties to their client
27Which of the following actions is an example of blockbusting?
- AA: Telling homeowners that a neighborhood will have a new golf course
- BB: Advertising a neighborhood party where alcohol will be served
- CC: Mailing sales call to neighborhoods who are on the Do Not Call list
- DD: Stating that the presence of certain person in a neighborhood will increase crime
28Which of the following phrases is considered discriminatory advertising by HUD?
- AA: “Close to public transportation
- BB: “Fourth floor walks”
- CC: ‘Exclusive neighborhood”
- DD: “Over 62 condo complex:
29In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income?
- AA: Debt Service
- BB: Advances to owners
- CC: Operating Expenses
- DD: Reserve for replacements
30To be certain that a property had no encroachments, an appraiser should check a:
- AA: Deed
- BB: Survey
- CC: Field Book
- DD: Tax Map Book
31The owners of a shopping center want a major department stores lease to provide rental payments that reflect the store’s sales. They are most likely to use which type of lease?
- AA: Flat Fee
- BB: Percentage
- CC: Gross
- DD: Net
32A 40-Foot easement exists across the front of a property, and a zoning ordinance requires a building setback of 50 feet from the front property line. If the property is offered for sale, a licensee should take which of the following action when notifying prospective buyers abouts this situations
- AA: Refrain from informing them of the easement, since the setback include the easement
- BB: Refrain from informing them of the easement, since a title insurance policy will provide protection against any possible problems
- CC: Indormth them of the existence of both the easement and the setback
- DD: Place stakes on the property to identify both the easement and the setback line
33The difference between reproduction cost and the present value of a property is:
- AA: Appreciation
- BB: Deprecation
- CC: Market Value
- DD: Book Value
34A title insurance policy will protect a buyer from financial losses that are caused by a(n):
- AA: Unrecorded easement
- BB: Amendment to zoning regulations
- CC: Encumbrances to which the policy has not taken an exception
- DD: Recorded easement to which the policy has taken an exception
35With the exception of court order sales, the amount of earnest money to by a prospective buyer is determined by the:
- AD: Listing Broker
- BC: Local Real Estate Association
- CB: Agreement between the seller and the buyer
- DA: State real property law
36Public regulation, that control the specific of land in a given area are called:
- AA: Tax Rates
- BB: Zoning Laws
- CC: Deed Restrictions
- DD: Easements
37A child inherits their parent’s property prior to their 18th birthday. If the child decides to sell the property, and enters into a purchase agreement, the contract could be:
- AA: Void
- BB: Illegal
- CC: Voidable by the seller
- DD: Enforceable by the buyer
38Which of the following clauses will put the priority of an existing mortgage or deed of trust below that of a mortgage record later?
- AA: An exculpatory Clause
- BB: A prepayment Clause
- CC: An assumption clause
- DD: A subordination Clause
39Under a sales contract, the legal remedy that MAY be used to force to consummate the sale is called:
- AA: Foreclosure
- BB: Forcible Detainer
- CC: Adverse Possession
- DD: Specific Performance
40The gross income multiplier (GIM) is BEST used to value:
- AA: Duplex dwellings
- BB: Commercial Properties
- CC: Bank-owned Properties
- DD: Open Market Real Estate
41In addition to real property, pledging a freestanding stove and refrigerator as security for a loan is an example of which of the following mortgages?
- AA:Wraparound
- BB: Open
- CC: Package
- DD: Blanket
42The value of a property is affected by a negative forces outside the property, which are between the control of the owner.This is referred to as:
- AA: Physical Deterioration
- BB: Accrued depreciation
- CC: Functional Obsolescence
- DD: Economic Obsolescence
43Potential buyers tells their sales agent that they are worried about the presence of radon gas in a home they are thinking about buying. What SHOULD the sales agent say?
- AA: “I asked the seller and they said there is no problem
- BB: “ I suggest that a radon inspection be preformed”
- CC: ‘Radon has not been proven to be harmful”
- DD: “If you’re worried, I recommend making an offer less than the listed price”.
44An agreement that restricts the use and occupancy of real estate, is part of a conveyance, and is binding on a sell subsequent buyers is called a(n):
- AA: Deed
- BB: Nonconforming Use
- CC: Documentary Tax
- DD: Covenant
45When a broker lists a property that is owned by a married couple as joint tenants, the broker should make sure that the listing agreement is signed by:
- AA:All children of this marriage
- BB: the broker and either of the spouses
- CC: The broker and both of the spouse
- DD: Either spouse only
46Which 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 origin?
- AA: Rectangular
- BB: Lot and Block
- CC: Metes and bounds
- DD: Geodetic
47A minority couple asks a licensee to show them a listed house. The licensee suggests that they look at houses in areas with large minority population than that of the listed house. What is the licensee guilty of?
- AA:Blockbusting
- BB: Panic Peddling
- CC: Steering
- DD: Redlining
48The CERCLA is administered by the:
- AA: Environmental Protection Agency (EPA)
- BB: Department of Housing and Urban Development (HUD)
- CC: Department of Health nad Human Services (HHS)
- DD: Federal Emergency Management Agency (FEMA)
49When a buyer purchase a property subject to a seller’s existing mortgage, which of the following statement is correct?
- AA: The seller’s credit will not ne affected by foreclosure on the property
- BB: The seller is released from all liability of the loan
- CC: Any mortgage loan obtained by the buyer to complete the purchase will be a first mortgage loan.
- DD: The seller’s obligation under the existing remain unchanged
50A licensee preparing a Competitive Market Analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is ten years old and has two baths, the comparable property is five years old and has one bath. In this case, the licensee SHOULD adjust the:
- AA: sale price of the comparable property, down for the age and up for the number of bath
- BB: Sale Price of the comparable property, up for the agene and down for the number of baths
- CC: Value of the subject property, up for the agent and up for for the number of baths
- DD: Value of the subject property, up for the age and down for the number of bath
51When a contact state that “time is of the essence” the contract MUST be delivered and present
- AA: Within 24 hours
- BB: Within 48 hours
- CC: Electronically
- DD: As soon as possible
52If a prosperity buyer is concerned about the electric service on a property, the buyer's license SHOULD:
- AA: Advise the buyer to hire inspectors to examine the property after closing
- BB :Recommended that the buyer insert an inspection contingency in the purchase agreement
- CC: Recommend a home warranty for the electric appliances
- DD :Inspect the fuse box personally
53On Tuesday, buyers make an offer to purchase a house for $250,000 and include a provision to buy the dining room furniture. The offer expires at 5:00PM on Sunday. On Thursday, the seller replied in writing that they will accept the offer of $250,000, buy they will not include the dining room furniture. While the buyer are considering the counteroffer on Friday. The sellers change their minds and decide to accept the original offer, including dining room furniture; in writing. What is the current obligations of the buyers?
- AA: They are legally obligated to withdraw the offer
- BB: They are not likely obligated to purchase the house
- CC: An amendment to the contract is required to make it enforceable
- DD: Personal Property cannot be included in the Purchase and Sale Agreement
54A plaintiff files a lawsuit against a licensee for a property that was later determined to have termite damage. The licensees was unaware of an damage at the time of the property sale. The type of insurance that protects the situation is:
- AA: General liability
- BB: Eros and Omissions
- CC: Payment Protection
- DD: Worker’s Compensation
55Which of the following documents is usually prepared when a real estate buyer also purchases a seller’s riding lawn mower?
- AA: An option
- BB: A wraparound Loan
- CC: A conditional Sales Contract
- DD: A bill of sale
56A property manager works in the best interest of the:
- AA: Tenant
- BB: Owner
- CC: Agent
- DD: Bank
57When private property is abandoned, the state MAY acquire title to that property under the right of:
- AA: Escheat
- BB: Eminent Domain
- CC: Police Power
- DD: Taxation
58Which of the following statements about the income approach to value is correct?
- AA: It estimate an investment property value based on its return
- BB: It is the most accurate method of appraising single-family houses.
- CC: It producers the highest estimate of value possible
- DD: It is used to set loan-to-value ratios
59The federal act that provides funds to waste management and solutions for cleanup is the:
- AA: Toxic Substance Control Act (TSCA)
- BB: Comprehensive Environmental Response, Compensation and liability Act (CERCLA)
- CC: National Environmental Policy Act (NEPA)
- DD: Clean Air Act (CAA)
60If a broker list a property and agrees to net the seller $83,000 after the broker's 6% commission is paid, the property must be sold for a MINIMUM of:
- AA: $78,020
- BB: $87,980
- CC: $88,298
- DD: $93,259
61A buyer naked a down payment of $27,000 and secures a new mortgage for the difference at $288 per month for 25 years. How much does the buyer pay in interest over the life of the mortgage?
- AA:$11,400
- BB: $22,800
- CC: $34,200
- DD: $38,400
62Buyers make an earnest money deposit on a property and sign a contract that is contingent on specific financing terms.Through a bank commits to the financing, the buer ends up changing their minds. The Buyer proceeds to notify the seller, in writing, that they do not intend to buy the property.Which of the following statements is CORRECT?
- AA: The bank may sue the buyers for specific performance
- BB: the seller may sue the buyers for breach of contract
- CC: The may buyer rescind the contract only after paying the brokerage fee
- DD: The buyer are entitled to the return of the earnest money deposit
63A loan that provides for increase and decreases in the interest rate during its term is known as a (n):
- AA: Equity sharing
- BB: Graduated-payment loan
- CC: Reverse-annuity loan
- DD: Adjusted-rate mortgage
64A portion of an advertisement reads: “New four-bedroom, two baths home for sale in a family neighborhood. Yours for only $1,100 per months.” This advertisement VIOLATES the provisions of the:
- AA: Truth in Lending and Fair Housing Acts
- BB: RESPA and Fair Housing Act
- CC: Fair Housing and American with Disabilities Act
- DD: Fair Housing and Sherman Antitrust Acts
65If a purchase contract for a commercial property included a due diligence contingency for the buyer, then the buyer MAY:
- AA: Continue the due diligence period by demand
- BB: Require the seller to repair items requested by the buyer
- CC: Require the seller to arrange a second inspection after items are repaired
- DD: Terminate the contract if the buyer is not satisfied with the inspection
66A landlord enters into a lease with a tenant/ THe lease contain a provisions stating that, if the landlord decides to sell the program during the terms of the lease, the tenant will have the first right of refusal to purchase the property. Prior to the tenant's lease expiration, the landlord would like to sell the property. The landlord:
- AA: May sell the property to someone else without notice
- BB: May not sell the property to someone else
- CC: Must offer the tenant the first opportunity to purchase
- DD: has no obligation to the tenant
67A licensee pays for maintenance on a rental unit using a tenant's security deposit. This is an example of:
- AA:Commingling of funds
- BB: Conversion of funds
- CC: An advanced commission payment
- DD: A properly managed escrow account
68A license deposited a client’s earnest money into the license persona account to hold this is considered illegal and know as:
- AA:commingly
- BB: money laundering
- CC: Reconciliation
- DD: Fraud
69A visually impaired person with a service annual completes an application for rental of a n apartment that has a vigorously enforced “no pets” policy in the building. According to the Federal Fair Housing ACt, the owner MAY:
- AA: Refuse to rent to the applicant as a result of the policy
- BB: Require the tenant to restore any damages to the apartment that results from the animal
- CC: Charge the applicant an increased security deposit
- DD: require the tenant to house the animal outside of the apartment
70An illegal lending practice whereby a bank refuse to make mortgage loans in certain neighborhoods based on the ethnic makeup of that ares is known as:
- AA: Segregation
- BB: bad-risk-lending
- CC:Blueblooding
- DD: Redlining
71Items permanently attached to real property are considered:
- AA: Chattels
- BB: accouterments
- CC: Personal Property
- DD: Fixtures
72A 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:
- AA: Must sue the owners to obtain a release from the listing contract
- BB: Must give the owners 30 days advance written notice to cancel the listing contract
- CC: may rescind the listing contract upon obtaining permission from the owners
- DD: May file suit from commission cutting procuring cause
73A net lease afford the lessee the:
- AA: right to depreciate the building
- BB: dedication on interest paid on the mortgage
- CC: dedication of real estate taxes
- DD: right to sell the property
74Which of the following actions BEST describes proper supervision of a licensee by their broker?
- AA: Requiring the licensee to pay quarterly taxes
- BB: Scheduling floor time only during regular office hours
- CC: Reviewing all document and transactions files prior to closing
- DD: Confirming the license has paid all dues association fees monthly
75The price of which a willing and informed buyer would buy, and a willing and informed seller would sell, is called the:
- AA: assessed value
- BB: Book Value
- CC: Income Approach to Value
- DD: Market Value
76A property owner MUSt comply property that is subject to an option when the optionee:
A: sells the option
B: Assigns the option
C: Fulfills the option
D: Offers the exercise the option of a reduced price- AA: sells the option
- BB: Assigns the option
- CC: Fulfills the option
- DD: Offers the exercise the option of a reduced price
77The donation of private land for public use is called:
- AA: Accretion
- BB: Dedication
- CC: Assignment
- DD: Condemnation
78The difference between the value of property and the total amount of liens against it is know as:
- AA: Market Value
- BB: Equity
- CC: Actual Cash Value
- DD: Collateral
79The Owner of a farm has found a buyer for the property, which is leased to a tenant farmer. With regard to any growing crops that were planted by the tenant, which of the following is True?
- AA:The buyer owner the crops
- BB: The Crops are real property
- CC: The tenant owns the crops
- DD: The crops run with the land
80The income approach is most likely to be used when determining the value of a (n):
- AA: Office-Building
- BB: Single-Family Home
- CC: Cooperative apartment
- DD: Vacant Residential Lot
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- Texas Real Estate Sales Pearson Vue
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- Michael notes
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- English
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