National Practice Test #6

Which of the following persons would be responsible to her employer for results only?

A bill of sale must be:

Items of personal property that become real property once they are attached to real property are known as:

A possessory ownership right or interest in real property is a/an:

Of the following choices, which one contains only items of real property?

Recording a deed gives:

An ALTA policy of title insurance would cover:

Who is entitled to examine the records of a county recorder?

Which of the following documents must be verified and recorded in order to have any validity?

Which of the following statements about liens is correct?

What is the main difference between real property taxes and special assessment bonds?

“Ad valorem” most nearly means:

Which of the following is the best definition of a contract?

A contract that can be rescinded by one or more of the parties is considered:

Which of the following statements regarding options is not correct?

A tenant may abandon a lease if she is constructively evicted by the landlord’s actions. Which of the following examples would not be constructive eviction?

In an in-house transaction, all of the following are true EXCEPT:

Renunciation of an agency occurs:

A broker negotiates the sale of a property. He is to receive a $500 commission from the seller at closing. A week before closing, he receives a $5,000 cash deposit. He is permitted to do which of the following?

A licensee is taking a listing. In her discussion with the seller, which of the following statements suggests a violation of the Sherman Antitrust Act?

If a lender “calls” a note, that means he:

What is the function of a release clause in a mortgage?

Liquidation of a financial obligation through installment payments is known as:

If the monthly payments on an adjustable rate mortgage are insufficient to cover the interest due, the result is:

How would the unit costs of building improvements on a small residence compare to the unit costs of building the same improvements on a large residence?

Under normal market conditions, an apartment building’s vacancy rate is determined by:

Of the following items, which would be least likely to appear on a closing statement as a debit to the buyer?

The buyer has deposited the purchase price in escrow. The escrow agent will release this money:

Depreciation on real property means that:

An owner of an apartment complex reports income on a cash basis. Which of the following is not tax-deductible?

A real estate licensee is approached by a minority homebuyer who asks to be shown a specific home in a minority neighborhood. It is lawful for the licensee to assume that:

In an integrated urban neighborhood, rising crime rates have caused a number of white families to move. Observing this trend, a broker begins actively soliciting listings from white families, providing discounted commission rates and frequent reminders that neighborhood values are declining. In doing so, the broker is:

The owner of a strip mall has a rental space available. A prospective tenant who planned to start a business but had no business experience contacted the landlord about leasing the space. The tenant’s earnings were expected to grow in the years ahead. If the owner wanted a long-term lease with a fair market return, which of the following types of leases would be most appropriate?

In a sale-leaseback:

In a conventionally-constructed house, the highest structural member in the frame is the:

Which of the following styles of houses is most likely to feature a tile roof?

In a new building, conduit would be installed by the:

A farm’s southern boundary runs for 7,920 feet along an east-west road. Its western boundary extends northward for 7,920 feet from the road. Its eastern boundary extends northward for 3,960 feet from the road. The northern boundary is an irrigation canal that connects the open sides. How many acres is this farm?

A commercial property rents for $3,000 per month. Its fixed operating expenses are $9,000 per year; in addition, the property was vacant for three months during the past five years. If a 10% capitalization rate is used, what is the estimated value of the property?

A joint tenancy between two people would become a tenancy in common if one owner:

When real estate taxes remain unpaid, they constitute a lien that is:

A tenant on a long-term commercial lease is going out of business. Because contract rent on the tenant’s lease is well below current market rents, a broker advises the tenant to:

Which one of the following transactions is subject to the Real Estate Settlement Procedures Act?

When using the cost approach to value while appraising a small department store, the appraiser will need to determine which of the following?

Which of the following best describes a condominium?

The highest price a buyer will pay for a property that is offered for sale on the open market under normal conditions is referred to as its:

What is the primary difference between air rights and subsurface rights?

Under the Truth in Lending Act (Regulation Z), a lender must provide a loan applicant with which of the following?

If a seller has declared bankruptcy, what is the listing agent required to do?

With the exception of sales supervised by the court, the amount of the earnest money deposited by a purchaser along with his offer is determined by: