National Practice Test #7

The final step in a real estate transaction is:

Luisa owns two parcels of farm property. One is described as the “N 1/2 of the S 1/2 of the E 1/2 of the W 1/2 of the NW 1/4 of Section 3,” while the other is the “E 1/2 of the NE 1/4 of the NE 1/4 of Section 4.” How many total acres does she own?

The characteristic that distinguishes real property from personal property is:

In a condominium, real property tax assessments:

In his will, Raul left his house to his son, Steve, and Steve’s wife, Tonya. Raul specified that Steve would receive a 2/3 interest and Tonya would receive a 1/3 interest, and that they would have the right of survivorship. How would Steve and Tonya take title?

If a corporate seal is present on a deed, that means:

A standard policy of title insurance will insure against:

Which of the following would not affect the physical condition or use of a parcel of real property?

A specified charge against real property used as security is a/an:

The principal difference between a mechanic’s lien and a judgment lien is that:

All of the following goals are accomplished through zoning regulations, except:

If a property owner wanted to receive an exception from zoning laws in order to build a structure in a manner that would not be detrimental to the public, he would apply for a:

Duress may be a consideration in the validity of:

M received an offer from J, which was $5,000 below his asking price of $130,000. M made a counteroffer that said, “I accept your offer, provided the purchase price is $127,500.” J rejected the counteroffer. M then changed his mind and decided to accept J’s initial offer and so notified J in writing. Which of the following statements is CORRECT?

How is the maximum commission rate a broker may charge established?

What is a sublease?

An agency would not terminate in which of the following situations?

Which of the following is not a way in which an agency can be created?

Which of the following would NOT be an example of commingling?

A licensee is sanctioned for committing conversion, which means she:

Which party to a deed of trust would execute a deed of reconveyance?

If a lender charges an interest rate greater than that allowed by law, it is known as:

A prudent lender who is deciding whether or not to make a real estate loan to a prospective borrower will ensure that:

When a lender decides whether or not to make a real estate loan, which of the following would it be most concerned with?

A balloon payment in a first deed of trust is:

Residential property amenities are:

Developer Dan builds a $300,000 home in an area filled with homes valued between $200,000 and $250,000. The value of Dan’s home is likely to diminish due to:

Which of the following may not be prorated on a closing statement?

When an escrow agent is handling an escrow for both parties in a transaction, she is acting as an:

Erin purchases an investment property for $250,000. She eventually sells it for the same amount. During her eight-year period of ownership, she depreciates the property’s improvements $50,000. For income tax purposes:

Regarding tax-free exchanges, which of the following is true?

Broker Beatrice obtains a full-price offer on a home from a Chicano buyer, as well as a lower price offer from a white buyer. She presents both offers to the seller, who accepts neither and instead sells to a neighbor, through Beatrice. The neighbor tells Beatrice and the seller he is buying the house because he is uncomfortable with minorities moving into the neighborhood. Who has not violated the Fair Housing Act?

The Federal Fair Housing Act was intended to:

A quarterly summary statement given by a property manager to her client would contain all of the following, EXCEPT:

Typical duties of a property manager include:

With an air conditioning unit, the higher the energy-efficiency ratio (EER), the:

Which of the following is not a desirable characteristic in a neighborhood?

A borrower took out a straight loan of $265,000 for 10 years at a 15% per annum interest rate. How much interest would he pay over the course of the loan?

In order to earn $750 per month; an investor would have to invest how much at a 5% per annum rate of return?

A borrower paid $9,450 interest on a straight note for $70,000 at an annual interest rate of 9%. What was the length of the loan term?

A voidable contract is one that:

An owner sold his property through his own efforts, but still wound up paying a commission. He used a/an:

Which of the following statements about a lease is true?

The term usury refers to which of the following?

The loan-to-value ratio represents the relationship between the:

A borrower financing the purchase of real property is required to sign a security instrument in order to:

S has agreed to purchase a home for $170,000. Her lender begins processing the loan application and in so doing orders a certificate of reasonable value. What type of financing is S seeking?

In order to avoid inadvertent dual agency, a real estate agent must make an agency disclosure:

One difference between FHA and VA financing is that:

A provision in a sales contract that states that a sum agreed to in advance will serve as full compensation in the event of a breach is a: