Real Estate Exam One

150 Questions | By Slynch1783 | Last updated: Mar 20, 2022 | Total Attempts: 182

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Real Estate Exam One

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1.

A title was recorded for a parcel of real property vested in the name of Johan Wilson, a single woman. After her marriage to William Roberts, she executed a deed to the property only in the name of Johan Roberts, a married woman. The discrepancy in the grantor's name is.
- A.
  
  Valid if William Roberts agrees to it
- B.
  
  A defect on title that may cause title to be vested as tenants in common
- C.
  
  Immaterial if the propety is properly describe
- D.
  
  A defect which may cause a cloud on the title
2.

Which Contract would be the most difficult for a buyer to obtain financing?
- A.
  
  Land Contract
- B.
  
  FHA
- C.
  
  VA
- D.
  
  Conventional
3.

When a broker runs an advertisement, the broker must disclose:
- A.
  
  Last name of the broker
- B.
  
  Name of the broker
- C.
  
  Name of broker and salesperson
- D.
  
  Name of the salesperson
4.

Following in-house sales are true, except:
- A.
  
  A listing agent can act as a dual agent
- B.
  
  The listing broker can act as a buyer's agent only
- C.
  
  The broker may purchase the property himself
- D.
  
  The seller may represent the seller only
5.

The Federal Housing Administration (FHA) was created primarily:
- A.
  
  To provide insurance for home loanis in the secondary market
- B.
  
  To insure the borrower
- C.
  
  To provide insurance for home loans made by approved lender
- D.
  
  To improve the economy for mortgage bankers
6.

Which of the following loans on a home would probably be made without requiring a down payment from the borrower?
- A.
  
  VA Loan
- B.
  
  CAL-VET
- C.
  
  FHA
- D.
  
  Conventional
7.

A person who wishes to purchase a home using the Cal-Vet program would send his application to:
- A.
  
  Department of Real Estate
- B.
  
  Real Estate Commissioner
- C.
  
  Department of Veterans Affairs
- D.
  
  Veterans Administration
8.

The item that would appear on the debit side of a buyer's closing statement would be:
- A.
  
  Purchase Price
- B.
  
  Prepaid Rents
- C.
  
  Mortgage Interest
- D.
  
  Down Payment
9.

When dealing with the public, a broker may not:
- A.
  
  Disclose any of his duties to other agents
- B.
  
  Remain silent concerning material facts about a property know only by himself
- C.
  
  Reject a listing if it is discriminatory or overpriced for minorities
- D.
  
  All of the above
10.

Which of the following is the reason that a real estate agent must keep his principal informed of material facts concerning a pending real estate transaction?
- A.
  
  When the agent is a fiduciary
- B.
  
  When it's printed on the purchase agreement
- C.
  
  When the agent concerned with the commission which seller is paying
- D.
  
  When the broker works only for the seller
11.

A buyer relied upon the fraudulent statement of the seller's agent and was damaged. The seller was unaware of the agents's false statement, and he tried to enforce the agreement. The buyer:
- A.
  
  Could sue the seller for fraud
- B.
  
  Could sue the seller's agent for fraud
- C.
  
  Has sufficient grounds for rescission
- D.
  
  Could do any of the the above
12.

Lenders know that the lower the loan-to-value ratio, the higher the:
- A.
  
  Interest Rate
- B.
  
  Risk
- C.
  
  Loan to Value Ratio
- D.
  
  Equity
13.

An offer to purchase a real estate could be terminated in all of the following ways, except:
- A.
  
  Acceptance with a counter offer to the offeror
- B.
  
  Failure to communicate notice of revocation before the other party has communicated his acceptance
- C.
  
  Death of offeree or offeror
- D.
  
  Expiration of time to accept an offer
14.

In which of the following contract will apply if one of the parties agrees not to revoke an offer for a certain period of time:
- A.
  
  Exclusive right to sell listing
- B.
  
  Exclusive agency listing
- C.
  
  Net Listing
- D.
  
  An option
15.

For Federal Income Tax purpose, the capital expenditures for improvements are:
- A.
  
  A percentage depreciated
- B.
  
  Subtracted from the cost basis of the property
- C.
  
  Added to the cost basis of the property and depreciated
- D.
  
  Cannot be depreciated
16.

A property sold for $150,000 in a county which had established a documentary transfer tax rate of $.55 for each $500. Of the purchase price of $150,000, only $125,000 was subjected to tax. Which of the following is nearest to the tax amount that would have to be paid?
- A.
  
  $165
- B.
  
  $138
- C.
  
  $27
- D.
  
  $139
17.

Leland uses an 8% capitalization rate for a 40-unit apartment building that generates $174,000 net income. Which of the following is the most appropriate value of this property?
- A.
  
  $1,400,000
- B.
  
  $1,566,000
- C.
  
  $2,175,000
- D.
  
  $2,170,000
18.

A broker is negotiating a 25-year commercial lease at a straight annual rental of $30,000. The broker is to recieve a compensation for negotiating this lease as follows: 7% of the annual rental for the first year, 5% of the annual rental for the next four years, 3% of the annual rental for each of the next fifteen years; and 1% of the annual renatl for every year thereafter during the term of the lease. By the end of the 19th year, the broker will have recieved a total commission of most nearly:
- A.
  
  $25,000
- B.
  
  $20,800
- C.
  
  $20,500
- D.
  
  $20,700
19.

A salesman was to receive a 45% share of a 6% gross commission. He received $8,100. The property was sold for:
- A.
  
  $300,000
- B.
  
  $200,000
- C.
  
  $280,000
- D.
  
  $400,000
20.

Two brokers agreed to split a 4 1/2 % commission on a 50-50 basis on the sale of a property for $162,500. The listing salesperson agreed to a 50-50 split with his employing broker. What would be the commission amount for the listing salesperson?
- A.
  
  $3,626.20
- B.
  
  $1,828.13
- C.
  
  $5,400.00
- D.
  
  $4,860.00
21.

Buyer Parker paid $4.40 per square foot to purchase a 20,000 square foot lot. If the parcel is in rectangular shape and 200 feet deep, the approximate cost per front foot would be:
- A.
  
  $200
- B.
  
  $440
- C.
  
  $880
- D.
  
  $960
22.

A deed:
- A.
  
  Does not have to be recorded to transfer title
- B.
  
  Has to be recorded to be valid
- C.
  
  Has to be acknowledged
- D.
  
  Can only be recorded by the lender
23.

Of the following types of deeds, which one would contain no warranties and expressed or implied:
- A.
  
  A will deed
- B.
  
  Grant deed
- C.
  
  Warranty deed
- D.
  
  Quitclaim deed
24.

An easement could be created for what length of time:
- A.
  
  Perpetual
- B.
  
  For years
- C.
  
  Lifetime
- D.
  
  Any of the above
25.

Land that is subject to an easement is said to be:
- A.
  
  Prescriptive easement
- B.
  
  Appurtenant to the land
- C.
  
  Encumbered
- D.
  
  An encroachment