1. Which of the following ownership interests applies to parties who own real property as tenants in common?
    Ownership interest must be conveyed separately.?
  2. A buyer broker agreement is most likely to create which of the following types of agency relationships?
  3. Which of the following government powers provides for the transfer of ownership of real property from an owner to the state in the event the property owner dies without a will or known errors?
  4. Which of the following statements best defines what a Time is of the essence clause means in a real estate sales contract?
    The contract is subject to cancellation if any time requirement is not met.?
  5. A person who owns a house in several tea dies interstate. This person?s spouse has also passed away, and one of their three children ran away from home and has not been heard from in over 20 years. Which of the following statements about the transfer of this property is correct?
    The missing child represents a cloud on the title for future property transfers.
  6. Which of the following situations best exemplifies and implied agency relationship?
    If seller expresses an interest in finding a similar property in a neighboring town and the listing licensee brings the seller to some in-house listings.
  7. A couple asks their buyer agent which way to take title so that a surviving spouse will inherit the other persons interest even without a will and the agent says, ?joint tenancy with the right of survivorship is the way you want to go.? In this situation, the agent?s response is best described as
    Illegal practice of law.
  8. As used in property management, the term ?constructive eviction? is best understood to mean that
    Tenant has left the property after a landlord has allowed it to become uninhabitable.
  9. In performing a direct sales comparison (market data) analysis, and appraiser would be most interested in data on
    Comparable properties.
  10. During an appraisal of a residential property, and appraiser estimates the cost of rebuilding the subject property so that it is identical to its current size and condition. This is an example of which of the following appraisal principles?
  11. An appraiser determines that is subject 32-year-old resident has a replacement cost of $185,000 and is on the parcel of land worth $47,000. The structures accrued depreciation from physical deterioration and functional obsolescence is estimated at approximately 40% given this information which of the following best represents the property?s value?
  12. A homeowner without any liens on the property arranges for a loan that provides a series of small monthly payments to the owner rather than a single large payment that must be paid back in installments. This arrangement is best identified as which type of loans?
    Reverse annuity.
  13. Shortly after taking a property listing, the listing licensee is approached by a family member who asks the licensee to prepare an offer at a significantly reduced price. Under the common law of agency, the licensee MUST
    Disclose the family relationship with the potential buyer to the seller.
  14. A licensee showing some properties to a client- buyer only select properties in areas where the owners are of the same general age, sex, and ethnic background as the client-buyer. According to federal fair housing law, this conduct would be an example of an illegal practice known as
  15. A residential property owner wants to buy a vacant lot next to the property to build a garage and small guest house. The lot has a recent appraisal of $10,000, but the property owner is prepared to pay more than that, if necessary, to be able to expand. Which of the following terms best identifies the amount the owner is willing to pay?
    Market price.
  16. When a property is creditors are not fully repaid out of the proceeds of a foreclosure sale, they may make a foreclosed property owner personally liable for the balance due by bringing a legal action for a
    Deficiency judgment.
  17. Which of the following terms identifies a property owner who has entered into an agency relationship with a licensee?
  18. A licensee acting as a buyer?s broker is preparing an offer for a buyer, who asks the lesson see if there are any tax benefits to arranging seller financing instead of going to a conventional lender. Which of the following statements represents the licensee?s best response to this question?
    ?Make your best offer and include a contingency allowing you to review your options with a tax accountant or tax attorney?
  19. Which of the following types of buyer broker agreement provides a licensee with the greatest assurance of receiving compensation if the buyer purchases the property?
    Exclusive buyer-agency
  20. A property owner built a house on 7500 square-foot lot several years prior to the enactment of new zoning that requires at least 20,000 ft.? for residential properties in that area. A correct statement about the situation is that
    The property represents a non-conforming use and nothing must be done.
  21. A property owner on a private road objects to a new neighbors choice and erecting a white vinyl fence, saying it is ugly and violates the traditional neighborhood balance of stone walls and hedges. Under which of the following circumstances could the fence be prohibited and its removal required?
    There is either a deed restriction or pathway in place that requires only natural fencing
  22. Requirements governing which real estate transaction records must be kept and for how long are determined primarily by which of the following authorities?
    State regulations
  23. A buyer arranges for a $90,000 mortgage loan with an annual interest rate of 8% in a fixed monthly payment of $745. If the first loan payment is due 30 days after the loan origination date, how much of that payment will represent principal? Use a 360 day year and a 30 day month.
  24. It?s seller of a house in a residential subdivision has a host of marketing and property condition materials prepared for prospective buyers, including a set of CC and ours a termite inspection report, a property inspection report, a maintenance records for the heating and cooling system. In preparing an offer for a buyer, the buyer agents best to handling of this report is to advise the buyer to
    Include a contingency for an independent property inspection that verifies acceptable condition of all material elements.
  25. Three months after closing, a buyer has some work done on the yard and a backhoe breaks through and falls partway into an improperly filled a septic tank that was an abandoned well the former owners? hooked up to municipal sewer. This is an example of which of the following concepts?
    Latent defects.
  26. Which of the following terms identifies an element that is essential to creating a valid real estate sales contract?
    Legal purpose.
  27. A couple with a modest combined income and strong employment history is having difficulty qualifying for a conventional loan to purchase a home due to their income and limited cash. Which of the following sources of real estate funding is most likely to meet their needs?
    Seller financing.
  28. When preparing a competitive market analysis, an annuity worth $5000 in a comparable property is best handled in which of the following ways?
    It is subtracted from the comparable properties sale price.
  29. A correct statement about mortgage insurance premiums charged for federal housing authority FHA loans is
    That they may be included in the total loan amount.
  30. Which of the following statements best defines real property?
    Land and it?s improvements in all included ownership rights
  31. Residence of an area with wells that go dry during severe drought arranged with the municipality to provide city water to each property. This work is most likely to be funded through a special assessment.
    General assessment.
  32. Which of the following events will terminate an agency relationship?
    Bankruptcy of the principal
  33. A home owner hires a carpenter to build a back deck then refuses to pay. The Carpenter is entitled to take which of the following actions?
    Place a mechanic?s lien on the property.
  34. When applied to a real estate sales contract, the term ?rescission? is most likely to indicate that the contract has been
  35. In the preparation of a competitive market analysis CMA or appraisal, which of the following situations is most likely to be interpreted as a stigmatizing property condition?
    A history of a major crime on the site.
  36. According to the common law of agency, which of the following statements about the fiduciary obligation of confidentiality is correct when an agent represents a principal in a real estate transaction?
    It out less the termination of the agency relationship.
  37. Which of the following statements made in a property advertisement is most likely to be characterized as puffing?
    Best view of the mountains in town!
  38. A property owner list a residence and specifically avoid telling the listing licensee about a leaking roof. The licensee you notices water stains in a closet ceiling, but considers them old and never discusses them with either the owner or the buyer. The property is sold without disclosing this condition and the buyer Sue?s for damages based on material misrepresentation. Do the seller and or the licensee have any liability? Why or why not?
    The seller and the licensee are both liable because it is reasonable that the licensee should have discovered this condition.
  39. Which of the following types of listing agreements allows the seller to contract with multiple licenses and all only compensate the one that produces the buyer?
  40. Which of the following documents is used to transfer ownership of personal property that is included in the sale of real estate?
    A Bill of sale.
  41. The truth in lending act is a part of which of the following federal laws?
    Consumer credit protection act.
  42. A property owner who is selling a commercial building at a considerable profit wants to legally avoid paying capital gains on the sale for as long as possible the seller is most likely to achieve this objective by
    Reinvesting the money according to the terms of a 1031 exchange.
  43. A newly licensed real estate licensee has entered into an independent contractor agreement with a firms primary broker to work as a sales person. Under this type of relationship, the firm is most likely to be responsible for paying which of the following licensee expenses?
    Office space rent and telephone charges.
  44. When acting in a fiduciary capacity for a seller in a real estate transaction, a licensee must
    Be loyal to the sellers interest.
  45. Which of the following combination of elements represents distinguishing characteristics of a planned unit development PUD?
    Mixed use and flexible zoning.
  46. Which of the following appraisal methods would be the most appropriate one to use in the valuation of a 20-year-old post office?
  47. Access ramps to government buildings, grab bars in public restrooms, and a row of payphones with several place lower than the others are examples of compliance with which of the following federal laws?
    Americans with disabilities act.
  48. A correct statement about compensation arrangements in real estate agency employment contracts is that they are
    Established by negotiation between the seller and the agent.
  49. A lender is most likely to require a borrower to pay for private mortgage insurance in which of the following situations?
    The loan amount is for 90% of the property?s value.
  50. An unmarried carpenter bought a building lot and erected a two-story home and lived there for three years before selling it for a large profit. According to IRS regulations, what is the maximum amount of any profit that would be exempt from capital gains tax?
  51. The best statement about the relationship between a property mortgage and a promissory note is that
    The mortgage creates a property lien as a security for the note, which gives the details about the amount of debt and the terms of repayment.
  52. A lead based paint disclosure notice must be included with a sales contract for a
    residential property built before 1978.
  53. Which of the following situations best exemplifies what is meant by ?conversion of fundsjQuery112408779797251866612_1557504635564
    Using client funds as a source for temporary personal loans
  54. Which of the following situation best characterizes a property suffering from external economic obsolescence?
    A car dealership is located downwind of a new hog farm.
  55. Property managers are often granted a wide range of job-related authority to act on behalf of their principal. This is known as which of the following types of agency?
  56. Property taxes for the calendar year $2700, payable on December 31, for a property closing on June 15 of the tax year. Which of the following amounts is most likely to appear on the settlement statement for prorated taxes?
  57. At the time it is signed by all required parties, what type of a contract is a real estate option contract?
  58. A prospective buyer and an agent prepare an offer. The seller reviews the offer and except it with the added provision that the earnest money will be forfeited by the buyer if the buyer backs out for any reason. Which of the following statements about the situation is correct?
    The seller has legally rejected the original offer and replaced it with a counter offer.
  59. Which of the following interests in real property does a prospective buyer receive once an offer to purchase becomes a binding offer?
    Equitable title.
  60. A licensee takes an as is listing on a residential property downhill from an abandoned industrial site. The licensee finds a buyer for the property who discovers after closing that residential industrial waste has been leaching into the houses water supply for several years. In this situation, which of the following parties is most likely to have liability for the expense of correcting this problem?
    The industrial property owner, the former and the current residential owners, and the licensee.
  61. When a deed or a lien is placed in the public records in order to make them available to anyone searching the records this is known as providing constructive notice.
    Recording of lis pendent.
  62. The terms riparian, accession, and littoral refer to which of the following property rights?
  63. Which of the following terms identifies the ownership of real property that is complete and has no restrictions on its use or transfer?
    Fee simple
  64. A municipal mass appraisal has assigned a property a fair market value of $306,750. If the municipality has a mill rate of 16.86 and assesses property at 70% of FMVE, the annual taxes on this property would be which of the following amounts? Round to the nearest dollar. None of these. $1220 $2440 $3486 or None of these.
    None of these.
  65. Which of the following general property conditions is most likely to be categorized as material?
    A cracked foundation.
  66. Under federal fair housing act requirements, a property manager of a residential multiunit property may legally refuse to approve which of the following situations?
    Renting a unit in a property exclusively occupied by persons over 65 to a single parent with an infant child.
  67. According to the common law of agency, a licensee has which of the following obligations to an individual that prefers to remain a customer rather than become a client?
    Honesty and fair dealing.
  68. The name of the colorless, odorless gas often found in residential properties that represents an environmental health hazard associated with promoting lung cancer is
Card Set
Questions to study for a broker's exam