National Practice Test #3

Which of the following is the customary method through which a buyer’s agent may be compensated?

Laws enacted by a legislative body are known as:

Which of the following rights are included within the owner’s “bundle of rights?”

What kind of water rights does a property owner have if his or her land abuts water?

Adam leased a property from Casey for a five-year term. Casey died, at which point Adam found out that Casey had only a life estate in the property that he was leasing. The lease is:

Which of the following is NOT considered a common element in a condominium?

The principal purpose of a deed is to:

Which of the following would not ordinarily apply to a will?

Which of the following statements about lien priority is incorrect?

Daniel injured himself while swimming in Petra’s pool. If Daniel sued Petra and received a $2,500 judgment in his favor, the resulting lien would be a/an:

Brendan bought a property from Lisa on March 1, 2004. The property taxes for the 2004-2005 fiscal year are:

A property use that is permitted to continue even though it doesn’t comply with a new zoning ordinance is called a:

An agent promised, while taking a listing, that she would use advance fees from the seller in order to advertise the property. Instead, she used the advance fees to buy cocaine for herself. This would be an example of:

When a counteroffer is made:

A broker acting in good faith received misinformation provided by the seller, and passed it on to a ready, willing, and able buyer, who entered into a purchase contract with the seller. When the buyer found out, he rescinded the contract. In this situation:

A seller listed his property with a broker, and specified in the listing: “Seller not to receive more than 20% cash downpayment.” The broker presented an offer to pay all cash for the property. The broker is entitled to:

A buyer under a land contract will acquire:

Which of the following is the customary method through which a buyer’s agent may be compensated?

A broker, in dealing with the public, may not:

The federal antitrust law that prohibits any agreement that has the effect of a restraint on trade, such as price fixing, is called the:

A salesperson negotiates a sale late in the afternoon on Friday. He collects an earnest money deposit from the buyer. He’s going to be out of town over the weekend and doesn’t want to chance losing the money so he deposits it in his personal account. On Monday he writes a check for the earnest money to his broker for placement in the broker’s trust account. Which of the following is true?

Which pair of loans is synonymous?

The Federal Reserve could create a tight money market by:

Which of the following would not be included in a disclosure statement required by the Truth in Lending Act?

The mutual mortgage insurance on an FHA loan will:

The conditions of sale will affect which of a property’s characteristics?

What does functional utility in a residence depend on?

RESPA prohibits sellers from:

RESPA’s disclosure requirements apply to which of the following?

Which of the following personal residence expenses may be claimed as deductions on a federal income tax return?

A condominium owner living in his condominium is permitted to deduct which of the following expenses on his federal income tax return?

Which of the following statements about a tax-free exchange is TRUE?

In an attempt to obtain listings, a broker visits sellers in a particular neighborhood and tells them that property values will soon decline due to a recent influx of minority homebuyers. This tactic is:

According to the Americans With Disabilities Act:

An example of a liquid asset is a/an:

A lease in which the rent is set at a fixed amount and the landlord pays most or all of the operating expenses is called a:

Disclosure of what potentially harmful substance is important, since it tends to grow out of sight in damp, enclosed spaces?

Which of the following will a standard homeowners’ hazard insurance policy not cover?

A rectangular lot is 900 square yards in area. It has a 45-foot frontage. How deep is the lot?

A homeowner wanted to expand his current rectangular lot, which measured 17,550 square feet and was 150 feet deep. The rectangular lot next door was for sale, which contained 9,000 square feet and also was 150 feet deep. If he purchased the neighboring lot, what would be the total frontage of the combined lot?

If the seller rejects an offer from a prospective buyer that matches the terms set forth in the listing agreement, the seller:

Which of the following statements regarding the power of eminent domain is true?

In a sale-leaseback:

A principal instructs the agent not to show his property to members of a certain ethnic group. What should the agent do?

The difference between the fair market value and the debt that is owed against a property is called:

Which type of deed limits the covenants of the grantor?

The term “capitalization” refers to:

R conveys title to land to K by means of a special warranty deed. To ensure that the deed conveys all of the property, it must include:

Broker Z enters into a property management agreement. Which of the following would be the other party to the contract?

An architect is designing a 10-unit apartment, with five units upstairs and five units downstairs. There is no elevator. How many of the units must be wheelchair-accessible?