National Practice Test #5

A real estate salesperson’s status as independent contractor is important in connection with:

Which of the following statements regarding transfer of title of personal property is false?

How many acres are in a property that is described as the “S 1/2 of the NW 1/4 of the NE 1/4 of the NE 1/4 of Section 23?”

Earl and Merle own a property together with undivided interests, without the right of survivorship. This would be considered:

Jim, Mitch, and Noel own a vacant lot as joint tenants. If Jim dies:

In which of the following ways are joint tenancy and community property similar?

Which of the following is not a way through which an individual can acquire an interest in real property?

If a buyer fails to examine public records relating to a property, the buyer is still considered to have:

Which of the following methods may be used to terminate an easement?

An easement in gross:

Through its police power, local government has the right to regulate land use. This may include:

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

A buyer made an offer on a property on December 1
On December 7, she called the sellers’ broker to check the status of her offer. She was told that the sellers would not be able to respond until December 10
At this point, the buyer could:

An existing contract was replaced by an entirely new contract. This would be defined as a:

In order to be enforceable, an exclusive listing:

On March 1, Craig paid $100 for a 60-day option to purchase a property. The option stated, “Upon exercise of option, optionee is to purchase within 30 days.” On March 15, he sold and assigned the option to Sharon for $10,000. On April 20, Sharon informed the seller that she intended to purchase the property on May 15
What is the status of the option?

An agency relationship may be created in all of the following ways, except:

If a house was built prior to ____, the sellers must disclose information about lead-based paint to prospective buyers.

A buyer makes an offer and gives a good faith deposit to the broker, who deposits the funds into her trust account. Later, the buyer calls the broker to say that he is revoking his offer and thus demanding his deposit back. Instead of attempting to resolve the disposition of the deposit money, the broker turns the funds and the issue over to a court. The resulting court proceeding is called:

Trust accounts are used to:

A multiple listing service issues a listing agreement form with a pre-printed commission rate. This would be considered:

Why would a borrower most likely prefer an installment note to a straight note if the interest rates were the same?

Mortgages and deeds of trust should be recorded immediately to:

In deciding whether or not to approve a potential borrower, a lender will evaluate the borrower according to which of the following?

Which of the following is not a predatory lending practice?

What would be most likely to cause an “unearned increment” increase in a property’s value?

Of the following, which is the most expensive and complicated appraisal type?

A prospective buyer applies for a loan and is approved. He waives, in writing, his RESPA right to a Uniform Settlement Statement. Escrow closes twelve days later. The Uniform Settlement Statement must be provided by the lender:

A house with an apartment above the garage is sold on March 5, with the closing scheduled for March 20
The apartment rents for $600 a month, due on the first of the month. At the time of closing the rent is current. The escrow agent is using a 360-day year, and the parties agree that the seller receives rent for the day of closing. Which of the following statements about the prorated rent is correct?

Which of the following properties could be depreciated for income tax purposes?

If the owner of a rental property decides to add a swimming pool and patio, the costs of these additions are:

A broker has a particular home listed for sale and an African-American buyer comes by and asks to see it. Under what circumstances may the broker refuse to show the buyer the home?

A deed contains a restrictive covenant barring the sale of the land to persons of non-Caucasian descent. This covenant:

A property manager’s budget for the property will typically include which of the following operating expenses?

In real estate investment, “cash flow” refers to:

A major department store leases a large space in a local mall, and it agrees to pay the mall owner, in addition to a base rent, a percentage of its gross earnings. What kind of lease has the store entered into?

The parallel members that support the weight of the floor and ceiling are called:

In residential construction, a footing is:

A bank made an amortized loan for $1,140,000, payable $8,000 or more per month for a 30-year term. If the interest rate for the loan is 7%, how much will the first monthly payment reduce the principal balance?

A buyer bought a house for 20% less than the listed price. Later, she sold it for the originally listed price. What percentage of profit did she make?

How many square miles are in one township?

A person with riparian rights:

A lease in which it is agreed that the rental payments will increase at regular intervals by a specified amount or according to a specified formula is called a:

Broker H charges a leasing fee of one-half of the first month’s rent, plus a management fee of 7% of the total lease payments. H negotiates a two-year lease at a monthly rental of $950
What has H earned on this transaction?

A homeowner wants to sell his home, but during the listing presentation he insists that the broker show the property to Caucasians only. Under these circumstances, what should the broker do?

A property management agreement between Owner Q and ABC Realty calls for a commission rate of 6% of the first $350,000 in rents and 8% of the rents that exceed $350,000. If the previous year’s total rent collected was $475,000, what was the amount of the management fee paid to ABC Realty?

A mortgage loan in which the amount of the monthly payment can change in response to fluctuations in an index is a/an:

Under which of the following circumstances would a listing be terminated?

A landlord can use all or a portion of a tenant’s security deposit for any of the following, EXCEPT:

In the Federal Fair Housing Act, as amended in 1988, “familial status” refers to: