National Practice Test #2

When taking a listing, the agent should:

A desk fee is:

Which of the following would be considered real property?

All of the following are fixtures, EXCEPT:

Which of the following would be considered an interest in personal property?

Of the following, which is the best definition of a fee simple absolute estate?

Who would execute a quitclaim deed in order to clear away a cloud on a title?

Ed executes a deed to Ned and Ned records it. Ed later tries to set the conveyance aside, claiming that the deed was never delivered. Why is Ed’s argument unlikely to succeed?

Unless there is an agreement to the contrary, the deed of trust that has the highest lien priority is the one that was:

The holder of an easement may terminate the easement by recording a:

A city passes a bond issue to improve streets in a particular neighborhood. The properties in that area will be burdened:

Zoning laws are constitutional and enforceable because:

Which of the following would be an example of actual fraud?

A valid contract requires consideration. Which of the following could be consideration?

Any of the following will terminate an offer, except:

A buyer who purchases a property through a land contract would immediately receive:

If a seller uses an open listing, she may employ several brokers:

A broker who accepts a listing to sell real estate owes a fiduciary duty to:

If a property owner takes action that demonstrates approval of a real estate salesperson’s earlier unauthorized acts, that would be an example of agency created by:

Which of the following would be a violation of the Sherman Antitrust Act?

To qualify as an associate broker, an applicant must:

During the process of foreclosure on a deed of trust, the trustor retains the right to reinstate the loan. Who has the right of possession of the property during this period?

A clause that states that the rights of a deed of trust’s beneficiary are secondary to those of the beneficiary of a subsequent deed of trust is a/an:

Which of the following elements in the underwriting decision is the most difficult for the lender to evaluate?

The Truth in Lending Act requires that the cost of credit on certain consumer loans is expressed as a/an:

Value is affected by all but which of the following?

Laura’s house has a fair market value of $330,000 and rents for $2,200 per month. Micah’s house is across the street and rents for $2,400 per month. Assuming the same rate of return, what is the value of Micah’s property?

A broker helps a buyer apply for financing and explains the loan processing costs involved at closing. A copy of the HUD booklet “Special Information Booklet” containing information about settlement costs must be provided to the applicant:

RESPA requires lenders to give which of the following to loan applicants?

In a sale of real property, the primary reason for using an escrow is to:

An apartment complex valued at $125,000 has an outstanding mortgage of $37,000. A duplex worth $149,000 has a first mortgage balance of $18,500 as well as a junior mortgage balance of $12,300. If the two properties are exchanged, how much in cash or other boot will be paid?

In a tax-free exchange, “boot” could refer to:

An apartment rental application contains a question about marital status. This question is:

A broker regularly lists homes at prices about 10% above their fair market value, requiring minority buyers to pay the listed prices, but allowing other buyers to pay lower amounts. This:

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

Which of the following would NOT typically be a responsibility of a property manager?

Which of the following is a common design deficiency?

R-value is a concern when evaluating the quality of a house’s:

A building that has interior dimensions of 25 feet by 30 feet and walls 6 inches thick will cover an area of:

A property is reassessed at $600,000. The applicable tax rate is 1.15%. What will the new monthly property tax bill be?

A mobile home owner removes the wheels from the home and permanently mounts it on a concrete pad. Which of the following is true?

Under Title VIII of the Federal Fair Housing Act, certain transactions are exempt from FHA provisions. Which of the following is an allowable exemption?

M, a married woman, is selling a home that is her sole and separate property. Still, the buyer’s attorney insists that both M and her husband sign the deed because:

A person dies, leaving a will. The individual who is responsible for administering the will is called a/an:

Broker T owns a building maintenance company, in addition to a property management firm. T’s building maintenance company services most of the properties that T manages. May T legally do this?

The purpose of collateralizing a note with a deed of trust is to protect the:

Borrower C is approved for a 90% loan with 1.5 points. The sales price is $195,000. If C is charged no other closing costs, how much money will she need at closing?

A seller tells a buyer that the property is connected to the sewer when, in fact, it is not. The buyer later learns the truth and immediately consults a lawyer. The attorney advises the buyer that she has a voidable contract. From the seller’s point of view, what is the status of the contract?

At what point does the three-day right of rescission under the Truth in Lending Act begin?

The characteristic that distinguishes real property from personal property is: