National Practice Test #1

Who may refer to himself as a REALTOR®?

A home sells for $375,000. The parties are represented by Listing Salesperson and Selling Salesperson. The seller pays a commission of 6% to Listing Broker, who has agreed to a 50-50 commission split with Selling Broker. If both brokers split their shares equally with their salespersons, how much does each salesperson receive?

In its broadest sense, the definition of property refers to:

Tests to distinguish a fixture from personal property include all of the following, EXCEPT:

A joint tenancy would become a tenancy in common in which of the following situations?

Which of the following statements about condominiums is false?

There are three processes involved in the issuance of a standard title insurance policy. Of the following, which is not one of those processes?

What does the term “escheat” refer to?

Which of the following liens will have the superior lien position?

Mr. Pink sold a property to Mr. Blonde, which had an easement appurtenant across Mr. Brown’s property. When Mr. Blonde tried to use the easement, Mr. Brown objected. A court would find that:

Which of the following is the general purpose of local building codes?

Ad valorem property taxes would be levied against:

Land use controls, master planning, and zoning are important examples of:

A contract signed under duress would be:

If a party to a purchase agreement is an unemancipated minor, the contract should be signed by:

A real estate financing device that transfers equitable title to a buyer while allowing the seller to retain legal title is a:

In a valid assignment of a lease, the assignee becomes the new:

In a dual agency relationship, the agent owes fiduciary duties to both the buyer and the seller. Therefore, a dual agency is permissible:

Agency law is concerned with the duties and rights among:

Which of the following statements about a blind ad is true?

After a real estate sales contract is signed, but before the transaction is complete, the buyer and seller have a dispute and the buyer demands a full refund of her earnest money deposit. The seller instructs the broker to turn the earnest money over to him. What is the appropriate course of action for the broker?

It is likely that mortgage interest rates would decline when:

A lender’s promise to make a permanent loan upon completion of construction is a/an:

A lender will charge discount points when issuing a new loan in order to:

Savings and loan associations obtain most of the funds used for making home loans from:

Warehouse and other industrial space for rent is generally expressed using which unit of measurement?

Of the following characteristics, which is not an essential element of value?

To an appraiser, depreciation is:

A deed, note, bond, or money held by a third party until certain conditions are satisfied is known as:

A fourplex sold recently. Two of the units rented for $850 a month, and the remaining two units rented for $950 a month. The rents were paid at the first of the month. The transaction closed on the 20th of the month. How much would the seller owe the buyer in prorated rents at the time of closing? Base your calculations on a 30-day month.

Tom buys a new home and trades his former personal residence to Jerry for a rental property. Tom continues to rent out the property. Jerry uses Tom’s old home for rental income as well. Which of the following is true?

An advantage of selling property through an installment sale is that:

The purpose of the Equal Credit Opportunity Act is to:

Under the Fair Housing and Employment Act, a person who has suffered from discrimination in housing may receive:

An agreement between a property manager and a property owner that sets forth all the terms and conditions of the management relationship is called a:

What would a typical property management agreement obligate a property manager to do?

Which of the following architectural styles is a one-story house?

In a residential area, most of the homes are owner-occupied. This indicates:

If a property produces a monthly income of $1,200 and the appropriate gross income multiplier is 10.72, what is the value of the property?

An appraiser values an investment property at $200,000 using a capitalization rate of 9%, based on its annual income of $18,000. What would the value of the property be if a 12% capitalization rate is applied?

A loan, secured by a mortgage, in which a borrower can reborrow up to the original loan amount without having to requalify for the loan, is called a/an:

An apartment owner provides free, unassigned parking to her tenants. A prospective tenant who is handicapped asks that he be assigned a parking space next to his apartment. What is the owner required to do?

L is appraising a 25-year-old residence. Which of the following approaches to value should she use?

In what circumstances is an item considered part of the real estate?

B purchases a small commercial property, and he finances it with a 65% loan. The lender charges 9.25% annual interest and three discount points. The discount points:

The interest paid on a real estate loan is:

A seller’s agent may disclose confidential information about her client:

A purchase and sale agreement would NOT be voidable under which of the following circumstances?

A mortgage that has not been fully amortized will call for which of the following when the last regular payment has been made?

Which of the following policies of title insurance is used by most buyers of real property?