Trivia Quiz: Can You Pass The PSI Real Estate Exam?

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Trivia Quiz: Can You Pass The PSI Real Estate Exam?

Can You Pass The Psi Real Estate Exam? If you are in the real estate business, you must know some of the things that make a property sellable and how to get the best price for your customers. If you are looking to refresh your knowledge before the certification exams, this quiz is for you to see if you need more studying!


Questions and Answers
  • 1. 
    A farmer sells his farm on July 1 when the corn is knee-high. Nevertheless, the farmer is able to come onto the farm the following September and harvest the corn crop because the corn is
    • A. 

      A trade fixture

    • B. 

      An emblement

    • C. 

      A chattel real

    • D. 

      A littoral right

  • 2. 
    In a particular township, which section is just south of section 2?
    • A. 

      9

    • B. 

      10

    • C. 

      11

    • D. 

      12

  • 3. 
    Which of the following statements is true?
    • A. 

      Leverage is increased by making a larger downpayment

    • B. 

      Leverage is a method used to hedge against negative cash flow

    • C. 

      Leverage is maximized by making an all-cash purchase

    • D. 

      Leverage is increased by making a smaller down payment

  • 4. 
    A salesperson who lists a property under a listing agreement that permits subagents is _______ of the broker and a _________ of the client.
    • A. 

      An agent, single agent

    • B. 

      A designated agent, subagent

    • C. 

      An agent, subagent

    • D. 

      An agent, designated agent

  • 5. 
    In many states, what must be given to the purchaser of a single-family home before the purchaser signs the purchase agreement?
    • A. 

      A property condition disclosure statement

    • B. 

      A listing agreement

    • C. 

      Escrow instructions

    • D. 

      A good-faith estimate of costs

  • 6. 
    A lender's title insurance policy
    • A. 

      Is always paid for by the lender

    • B. 

      Typically can be transferred if the loan is sold

    • C. 

      Protects the borrower up to the amount of principal outstanding on the loan

    • D. 

      Is required by borrowers

  • 7. 
    • A. 

      $9,120

    • B. 

      $42,750

    • C. 

      $45,600

    • D. 

      None of the above

  • 8. 
    An interstate project acquires a stretch of land running through the middle of Joel's farm, making it difficult for Joe to get back and forth between the two remaining portions of his farm. Joe might be able to receive what as a result of this eminent domain action?
    • A. 

      Specific performance

    • B. 

      Severance damages

    • C. 

      Zoning variance damages

    • D. 

      Conditional use damages

  • 9. 
    A quiet title action is
    • A. 

      Any document, claim, lien, or other encumbrance that may impair the title to real property or cast doubt on the validity of title

    • B. 

      A legal process by which a lender, in an attempt to recover the balance of a loan from a borrower who has defaulted on the loan, forces the sale of the collateral that secured the loan

    • C. 

      A court proceeding intended to establish the true ownership of a property, thereby eliminating any cloud on title

    • D. 

      The cancellation of a contract and the restoration of each party to the same position held before the contract was entered into

  • 10. 
    Charles makes payments of $1,872 per month, including 6% interest on a fixed-rate, fully amortized 30-year loan. What was the initial amount of his loan? Monthly Payment Per $1,000 on Fixed-Rate, Fully Amortized Loans Rate 10-year term 15-year term 30-year term 40-year term 4% 10.125 7.397 4.775 4.18 5% 10.607 7.908 5.369 4.822 6% 11.102 8.349 5.996 5.503 7% 11.611 8.989 6.653 6.215 8% 12.133 9.557 7.338 6.954
    • A. 

      $312,208

    • B. 

      $281,377

    • C. 

      $348,668

    • D. 

      None of the above

  • 11. 
    Which of the following statements in true?
    • A. 

      To be valid a deed need not be signed by the grantor.

    • B. 

      To be valid a deed need not be signed by the grantee.

    • C. 

      To be valid a deed need not contain a granting clause.

    • D. 

      To be valid a deed need not be in writing.

  • 12. 
    Examples of trust funds do not include
    • A. 

      Earnest money deposits that a prospective purchaser gives to a broker as good-faith evidence of intention to complete a transaction

    • B. 

      Rent received by a broker from real estate or other property owned by a broker's client

    • C. 

      A broker's real estate commissions

    • D. 

      Advance fees paid by a seller to an agent to cover expected cash outlays of the agent

  • 13. 
    Pursuant to the federal Residential Lead-Based Paint Hazard Reduction Act, a seller (or lessor) of a residential dwelling unit built before ____ must notify a buyer (or tenant) in writing about required disclosures for lead-based paint.
    • A. 

      1968

    • B. 

      1978

    • C. 

      1988

    • D. 

      1990

  • 14. 
    In  states that permit the practice, a ________ owes fiduciary duties to a specified principal, but other agents in the brokerage may represent other parties to the same transaction that the specified principal is a party to without creating a dual agency situation.
    • A. 

      Dual agent

    • B. 

      Designated agent

    • C. 

      Subagent

    • D. 

      Single agent

  • 15. 
    A potential buyer hires an appraiser to estimate the value of a single-family home. The estimate comes in at $315,000. This estimate best represents the
    • A. 

      Market price of the home

    • B. 

      Utility value of the home

    • C. 

      Functional value of the home

    • D. 

      Market value of the home

  • 16. 
    I promise to pay you $20 if you mow my lawn on Tuesday, and you shrug your shoulders and say, "I'll see if I have time." If on Monday I call and tell you that I am withdrawing my offer, but you nevertheless mow my lawn on Tuesday,
    • A. 

      I will owe you $20 because you fulfilled your side of the bargain

    • B. 

      I will owe you $20 because you did not agree to letting me out of my offer

    • C. 

      I will not owe you $20 by the terms of the agreement because I revoked my offer before you accepted it.

    • D. 

      I will owe you $20 because you accepted my offer by performing as agreed.

  • 17. 
    Private mortgage insurance (PMI)
    • A. 

      Is insurance that lenders often require for loans with an LTV more than 75%

    • B. 

      Is insurance that lenders often require for loans with an LTV more than 80%

    • C. 

      Insures the borrower

    • D. 

      Insures the trustee

  • 18. 
    Joe and Susan own adjacent parcels of land. Susan purchases Joe's parcel, making one large parcel, which has a fair market value $75,000 higher than the sum of the fair market values of the two parcels prior to Susan's purchase of Joe's parcel. This is an example of the principle of
    • A. 

      Progression

    • B. 

      Anticipation

    • C. 

      Plottage

    • D. 

      Contribution

  • 19. 
    Some states permit the broker to act not  as an agent who represents one or more parties to a real estate transaction, but to act as a mere middleman who brings the parties together and lets the parties do all of the negotiating among themselves. Such a broker is referred to as
    • A. 

      A transactional broker

    • B. 

      A designated broker

    • C. 

      A universal broker

    • D. 

      An onstensible broker

  • 20. 
    If a person dies intestate and no heirs can be found, a court may order
    • A. 

      An escheat of the property

    • B. 

      A condemnation of the property

    • C. 

      A rezoning of the property

    • D. 

      Use of the property for public housing

  • 21. 
    Which of the following statements is false?
    • A. 

      A material fact is any fact that is unlikely to affect the decision of a party as to whether to enter into a transaction on the specified terms.

    • B. 

      Licensees should be on the lookout for "red flags" and make inquiry with the owners as to what they know about red-flag issues.

    • C. 

      It is also important that licensees attempt to verify what sellers tell them before passing such information on to potential customers.

    • D. 

      Licensees who pass on incorrect information that was given to them by sellers without performing reasonable verification of the information subject themselves to lawsuits from purchasers.

  • 22. 
    Nearly every contract involving a real estate transaction is express because
    • A. 

      Of the statute limitations

    • B. 

      No such contract can be created orally

    • C. 

      Of the statute of frauds

    • D. 

      Real estate agents are smart enough not to trust a mere hand shake

  • 23. 
    Property owned by a decedent who does not well leave a will is distributed according to the resident state's
    • A. 

      Statute of wills

    • B. 

      Statute of descent

    • C. 

      Statute of bequests

    • D. 

      Statute of devisees

  • 24. 
    Unless specifically asked to do otherwise, Alice only shows her Korean clients homes in predominantly Korean areas because she feels they will fit in better, and be more comfortable in, such areas. Alice's actions are
    • A. 

      Illegal redlining

    • B. 

      Illegal blockbusting

    • C. 

      Illegal steering

    • D. 

      Legal because real estate law mandates that licensees owe a fiduciary duty to their clients, which includes helping their clients find residences were they will best fit in and feel comfortable.

  • 25. 
    Susan is assuming John's $75,000 mortgage on the condo she is purchasing from him. At closing, what adjustment (s) should be made?
    • A. 

      Credit Susan $75,000, debit John and $75,000

    • B. 

      Debit Susan $75,000, credit John $75,000

    • C. 

      Debit Susan $75,000, no adjustment to John

    • D. 

      No adjustment to either Susan or John

  • 26. 
    When two or more parcels are assembled together  to make a larger parcel, the value added resulting from his assemblage is called
    • A. 

      Plotted value

    • B. 

      Progression value

    • C. 

      Utility value

    • D. 

      Integration value

  • 27. 
    A signed will giving his farm to his friend Susan, and a deed granting his farm to his daughter Emily, were discovered in Frank's safe after he died. If the deed was signed before the will, who will probably acquire the farm?
    • A. 

      Susan.

    • B. 

      Emily because the deed was signed before the will.

    • C. 

      Emily because a deed signed during the grantor's life has priority over a will.

    • D. 

      Emily because blood relatives have priority over friends.

  • 28. 
    The primary purpose of zoning laws is to
    • A. 

      Regulate building codes

    • B. 

      Ensure that buffer zones are created to separate residential zones from industrial zones

    • C. 

      Help implement the local master plan

    • D. 

      Help ensure that building permits take into consideration traffic congestion

  • 29. 
    Susan and John told their listing agent that they are moving because of the constant barking of the next-door neighbor's dogs. The agent should
    • A. 

      Warn the neighbors about their responsibility for declines in property values

    • B. 

      Warn the neighbors that their dogs present a nuisance to the surrounding properties

    • C. 

      Call the city Neighborhood Mediation Council

    • D. 

      Disclose this fact to prospective purchasers

  • 30. 
    Essential elements for the existence of a valid contract do not include
    • A. 

      Mutual consent

    • B. 

      A writing

    • C. 

      Lawful object or purpose

    • D. 

      Adequate consideration

  • 31. 
    Which of the following are included in PITI calculations?
    • A. 

      Child support payments

    • B. 

      Credit card payments

    • C. 

      Real estate taxes

    • D. 

      Alimony payments

  • 32. 
    Which legal description system is being used in the following partial description? "Beginning at the northwest corner of the intersection of Highway 5 and Grant Road; then north along Grant Road 275 feet;..."
    • A. 

      Recorded plat

    • B. 

      U.S. government survey

    • C. 

      Metes and bounds

    • D. 

      Lot, block, and tract

  • 33. 
    In those states that do not permit dual agency,
    • A. 

      Agents are not required to disclose agency relationships

    • B. 

      Agents may represent both parties but only with full agency relationship disclosure

    • C. 

      Agents are required to disclose agency relationships

    • D. 

      Agents may not be special agents

  • 34. 
    Broker Alice publishes an advertisement stating that she has a listing for a 2475 sq. ft. house on 111 Main Street in Any City, Texas, price $325,000. Joe sends a signed and dated letter to Alice that states "I accept your offer for the house on 111 Main Street, Any City, TX for $325,000."
    • A. 

      Joe' s acceptance of the offer is valid because it was communicated before the offer was revoked.

    • B. 

      Joe's acceptance of the offer is valid because Alice is the owner's agent and the owner is vicariously liable of the acts of the agent.

    • C. 

      Joe's letter does not qualify as an acceptance of an offer to sell the house.

    • D. 

      None of the above.

  • 35. 
    The greatest deed-warranty protection for a grantee is provided by a
    • A. 

      Sheriff's deed

    • B. 

      Special warranty deed

    • C. 

      General warranty deed

    • D. 

      Grant deed

  • 36. 
    The Federal Fair Housing Act requires that advertisements for the sale, rent, or financing of residential real estate in any print or display advertising (except classified ads)
    • A. 

      State the APR

    • B. 

      Disclose a number of required credit terms of the ad contains a trigger term

    • C. 

      Contain the HUD logo

    • D. 

      Contain the equal opportunity logo

  • 37. 
    Eva received a loan with and LTV of 80% to purchase a home that had a sales price of $275,000 and an appraised value of $280,000. What is the amount of Eva's loan if the LTV was based on the lesser of the appraised value or the sales price?
    • A. 

      $220,000

    • B. 

      $224,000

    • C. 

      $222,000

    • D. 

      None of the above

  • 38. 
    Susan exchanges her apartment building for Emily's luxury home that Emily lives in. The depreciated cost basis of the apartment building is $2,500,000, and the fair market value of Emily's home is $3,000,000. Emily receives both apartment building and $400,000 in cash in the exchange.
    • A. 

      This exchange qualifies for a 1031 exchange and the boot is $400,000.

    • B. 

      This exchange qualifies for a 1031 exchange and the boot is $500,000.

    • C. 

      This is an illegal 1031 exchange because the values do not match.

    • D. 

      This exchange does not qualify for a 1031 exchange.

  • 39. 
    In an adjustable-rate mortgage, the margin generally is 
    • A. 

      A predetermined number of percentage points

    • B. 

      A benchmark rate of Interest that is adjusted periodically

    • C. 

      Subtracted from the index to obtain the fully indexed rate

    • D. 

      An initial rate often referred to as a teaser rate

  • 40. 
    A mechanics lien is a ________; a judgement lien is a _______.
    • A. 

      Voluntary lien, involuntary lien

    • B. 

      Specific lien, general lien

    • C. 

      General lien, specific lien

    • D. 

      Involuntary lien, voluntary lien

  • 41. 
    Acting without bad intention and believing that his or her assertions are true, a real estate agent may nevertheless be guilty of fraudulent misrepresentation regarding a condo
    • A. 

      If the assertions were warranted by the information available to the agent

    • B. 

      If the assertions were warranted by information based on public records

    • C. 

      If the assertions were warranted based on the records of the homeowners association

    • D. 

      If the assertions were not warranted by the information available to the agent

  • 42. 
    A provision in a listing agreement, providing that the broker will earn the full commission if the property is sold within a specified number of days after the termination of the listing to a buyer with whom the broker has negotiated on the property is called a
    • A. 

      Safety clause

    • B. 

      Severability clause

    • C. 

      Contingency clause

    • D. 

      Liquidated damages clause

  • 43. 
    Which of the following statements is false?
    • A. 

      A universal agent is an agent given power of attorney to act on behalf of a principal for an unlimited range of legal matters.

    • B. 

      A dual agent is a real estate broker who represents both the buyer and the seller in a real estate transaction.

    • C. 

      An ostensible agent is an agent authorized by a real estate broker to represent a specific principal to the exclusion of all other agents in the brokerage.

    • D. 

      A subagent id an agent of an agent.

  • 44. 
    The National Environment Policy Act requires that federal agencies prepare _______ for any development project that a federal agency could prohibit or regulate, and any development project for which any portion is federally financed.
    • A. 

      A master plan

    • B. 

      An environmental impact statement

    • C. 

      A coastal preservation plan

    • D. 

      An environmental protection master plan

  • 45. 
    Susan lease an apartment from Apt.Co. The terms of the lease call for Susan to pay a fixed amount of rent each month, and the landlord pays all of the operating expenses for the premises. Susan has what kind of lease?
    • A. 

      Net lease

    • B. 

      Gross lease

    • C. 

      Graduated lease

    • D. 

      Ground lease

  • 46. 
    Broker Bob advertises one of his listings in the local MLS as "a beautiful home in an upscale Chicano neighborhood." Bob's advertisement most likely is
    • A. 

      Legal because, after inquiry by HUD officials, it is found to be entirely truthful, and holding the ad to be illegal would violate the broker's constitutional right to free speech

    • B. 

      Illegal because it misrepresents the quality of the house

    • C. 

      Illegal because it constitutes discriminatory advertising

    • D. 

      Legal because the word "beautiful" is obviously merely a matter of opinion, so the statement amounts to puffing, not misrepresentation

  • 47. 
    José purchased a home for $195,130 with a 6% fixed-rate, fully amortized 30-year loan in the principal amount of $156, 104. He makes payments of $936 per month. What is the amount of interest for the second month if calculated based on a 360-day year?
    • A. 

      $780.52

    • B. 

      $155.48

    • C. 

      $779.74

    • D. 

      $156.26

  • 48. 
    Under the Superfund Law, a person may be able to assert the innocent landowner defense if
    • A. 

      The person can prove that he or she is not responsible for contaminating the property

    • B. 

      The person can prove that someone else contaminated the property

    • C. 

      The person acquired the property by inheritance after it was contaminated

    • D. 

      The person can prove that the site was contaminated by the prior owner or owners

  • 49. 
    Brokers Mary and Larry meet at a real estate continuing education class. After the class, Mary asks Larry if he knows anything about broker Bob. Larry tells Mary what a dishonest person he thinks Bob is and suggests that they both stop doing business with Bob. Mary does not say that she agrees to do so, but shortly after their meeting, both Mary and Larry tell Bob that they will no longer cooperate with him in any real estate transaction.
    • A. 

      Mary but not Larry could be guilty of group boycott.

    • B. 

      Larry but not Mary could be guilty of group boycott.

    • C. 

      Both Larry and Mary could be guilty of group boycott.

    • D. 

      Neither Larry nor Mary is likely to have violated the prohibition against group boycott.

  • 50. 
    Helen owns a home in which she has a large amount of equity. She wishes to acquire a loan to help with monthly expenses over the rest of her life. What type of mortgage may be best suited for Helen's needs?
    • A. 

      A fully amortized mortgage

    • B. 

      A level payment mortgage

    • C. 

      A reverse mortgage

    • D. 

      A conforming mortgage

  • 51. 
    The replacement cost approach is likely to be the appraisal approach of choice if 
    • A. 

      The property is an old house

    • B. 

      Zoning laws have recently increased the market value of the property

    • C. 

      The improvements are quite new so that data on precise current costs can be gathered.

    • D. 

      A recent increase in crime in the area has had a significant detrimental effect on the value of the property

  • 52. 
    Taxes on properties for improvements that confer benefits directly on the properties taxed are referred to as
    • A. 

      General real estate taxes

    • B. 

      Ad valorem taxes

    • C. 

      Special assessments

    • D. 

      Mechanics liens

  • 53. 
    Which of the following statements in false?
    • A. 

      An agent occupies a special legal relationship, referred to as fiduciary relationship, with his or her principal.

    • B. 

      There is a rule of equity known as estoppel that holds that one who causes another rely on his or her words or actions shall be prohibited from later taking a contrary position detrimental to the person who so relied.

    • C. 

      States that permit transactional brokers do not impose an obligation on the nonagent to act fairly, honestly, and competently to find qualified buyers or suitable properties.

    • D. 

      A broker's principal is also referred to as the broker's client.

  • 54. 
    XYZ Corp. leases an industrial building. The lease states that XYZ Corp. will pay a fixed rental amount plus the landlord's property taxes, hazard insurance, and all maintenance costs not specifically reserved for the landlord's maintenance. What kind of lease does XYZ Corp. have?
    • A. 

      Gross lease

    • B. 

      Percentage lease

    • C. 

      Triple net lease

    • D. 

      Graduated lease

  • 55. 
    Sherry sells her townhouse and signs the grant deed, conveying title to Philip. She personally hands the signed deed to Philip with the intention of immediately conveying title to him. Philip asks her to acknowledge the deed in front of a notary public and to record it at the county recorder's office, which she does. In most states, at what point would title to Sherry's townhouse have passed to Philip?
    • A. 

      When Sherry signed the deed

    • B. 

      When Sherry handed the deed to Philip

    • C. 

      When Sherry acknowledged the deed

    • D. 

      When the deed was recorded

  • 56. 
    John's lender gave him an $88,000 loan based on a loan-to-value ratio (LTV) of 80% of the lesser of the appraised value of the property, which was $120,000, or the sales price. What was the sales price of John's property?
    • A. 

      $110,000

    • B. 

      $120,000

    • C. 

      $100,000

    • D. 

      None of the above

  • 57. 
    Homeowners enjoy many tax advantages, including deductions for
    • A. 

      Loan discount points that represent interest

    • B. 

      Homeowners insurance premiums

    • C. 

      FHA mortgage premiums

    • D. 

      Private mortgage insurance premiums

  • 58. 
    Margaret has a lease on a house that calls for annual increases in rent based on the average percentage increase (or decrease) in property taxes on the house. Margaret has what kind of lease?
    • A. 

      Net lease

    • B. 

      Graduated lease

    • C. 

      Percentage lease

    • D. 

      Gross lease

  • 59. 
    Which of the following entities does not make loans in the primary mortgage market?
    • A. 

      The FHA

    • B. 

      Life insurance companies

    • C. 

      Credit unions

    • D. 

      Pension funds

  • 60. 
    Examples of general liens include
    • A. 

      Mechanics liens, property tax liens, judgement liens

    • B. 

      Property tax liens, special assessment liens, mortgage liens

    • C. 

      Mechanics liens, property tax liens, federal income tax liens

    • D. 

      Judgement liens, federal income tax liens, state income tax liens

  • 61. 
    XYZ Developers has a 30-year lease with the owner of 4 acre of unimproved land. The lease states that XYZ Developers will construct an industrial building on the land at XYZ's expense. At the end of the lease, the building becomes the property of the landowner. XYZ Developers has what kind of lease?
    • A. 

      Gross lease

    • B. 

      Triple net lease

    • C. 

      Ground lease

    • D. 

      Graduated lease

  • 62. 
    Which of the following statements is false?
    • A. 

      Most states require that trust funds be kept in a non-interest-bearing account unless the beneficiaries request otherwise.

    • B. 

      Real estate licensee's trust fund accounts are audited by most states.

    • C. 

      A violation of trust accounting is not one of the most common reasons for suspension or revocation of real estate licenses.

    • D. 

      Many states require the separate trust fund accounts be maintained for sales transactions and for rents received from property management accounts.

  • 63. 
    The Federal Fair Housing Act does not prohibit
    • A. 

      Retaliation against, or intimidation of, anyone making a fair-housing complaint

    • B. 

      Discriminatory advertising, sales, or loan terms

    • C. 

      Directing people of protected classes away from, or toward, particular areas

    • D. 

      Discrimination against children with respect to properties occupied solely by persons 62 years of age or older

  • 64. 
    Sophie is a real estate salesperson who procured a buyer for a home. Sophie's agreement with her employing broker, Eva, is that Sophie gets a commission of 40% of whatever commission that Eva receives on sales made by Sophie. Sophie procures a sale of a house that was listed  by John, who had an 50-50 commission-split agreement with Eva. Sophie's commission on the sale was $4,074. The listing agreement provided for a 6%  commission. What was the sales price of the house?
    • A. 

      $271,600

    • B. 

      $339,500

    • C. 

      $424,375

    • D. 

      None of the above

  • 65. 
    Loss in value due to out-dated equipment is referred to as
    • A. 

      External obsolescence

    • B. 

      Economic obsolescence

    • C. 

      Deferred obsolescence

    • D. 

      Functional obsolescence

  • 66. 
    Which of the following statements is false?
    • A. 

      A dual agency arises if the listing broker becomes an actual or ostensible agent of the buyer.

    • B. 

      Conversion is the unauthorized use of another's funds for one's own use.

    • C. 

      A listing broker who becomes an ostensible agent of the buyer is not a dual agent

    • D. 

      Commingling is the act of placing funds belonging to clients or customers into accounts also holding the agent's funds.

  • 67. 
    Margaret signs a listing with Broker Olivia that provides exclusive authority to Olivia to represent Margaret's property for sale but gives Margaret the right personally to procure a buyer and not pay Olivia any commission. This listing is
    • A. 

      A multiple listing

    • B. 

      An exclusive agency listing

    • C. 

      An open listing

    • D. 

      An exclusive right to sell listing

  • 68. 
    A developer has a mortgage loan that secures three different parcels of land. This developer  has what kind of mortgage?
    • A. 

      An assumption mortgage

    • B. 

      A subordination mortgage

    • C. 

      A level payment mortgage

    • D. 

      A blanket mortgage

  • 69. 
    A cable company is planning to extend new fiber optic cable across Sally's backyard. The cable company should apply for
    • A. 

      An easement in gross

    • B. 

      A license

    • C. 

      An easement appurtenant

    • D. 

      An encroachment variance

  • 70. 
    John sees a listing for 111 Any Street published by the seller's agent on the Internet that states the price is $199,000, all cash, for 111 Any Street."
    • A. 

      The seller has given John a counteroffer.

    • B. 

      John has accepted the offer, thereby forming an enforceable contract to purchase the house

    • C. 

      The seller must accept John's or issue a counteroffer.

    • D. 

      The seller need not accept John's offer or issue a counteroffer.

  • 71. 
    Which of the following statements is true?
    • A. 

      A CMA never considers properties that have not sold

    • B. 

      A CMA takes into consideration square footage of comparable properties

    • C. 

      A CMA can only be prepared by a licensed appraiser

    • D. 

      A CMA is typically not used to help set the list price for a property

  • 72. 
    A developer in a large city is required by the zoning commission to set aside a portion of new construction for people of low to moderate income. This is an example of
    • A. 

      Eminent domain

    • B. 

      Spot zoning

    • C. 

      Escheat

    • D. 

      Inclusionary zoning

  • 73. 
    The monthly gross income multiplier is calculated by
    • A. 

      Dividing the sales price of the property by the monthly net rental income

    • B. 

      Dividing the sales price of the property by the monthly gross rental income

    • C. 

      Dividing the sales price of the property by the monthly net income

    • D. 

      Dividing the sales price of the property by the monthly gross income

  • 74. 
    Broker Greg knows that Susan lost her job 3 months ago and is desperate to sell her house and move into a rented apartment. If he discloses Susan's plight to Julie, Greg would not be violating real estate law.
    • A. 

      Greg likely is a dual agent.

    • B. 

      Greg likely is the listing agent for the house.

    • C. 

      Greg likely is a buyer' agent.

    • D. 

      Greg likely is Susan's attorney in fact.

  • 75. 
    Susan sees a home that she likes on broker Janet's website. Susan goes to visit Janet's office and asks to see more information on this home that Janet has listed. At this point office and asks to see more information on this home that Janet has listed. At this point
    • A. 

      Both Susan and the seller are Janet's clients

    • B. 

      Both Susan and the seller are Janet's customers

    • C. 

      The seller is Janet's principal and Susan is Janet's customer

    • D. 

      The seller is Janet's customer and the Susan is Janet's client

  • 76. 
    A city controls land use by all of the following except
    • A. 

      Inverse condemnation

    • B. 

      Building codes

    • C. 

      Spot zoning

    • D. 

      Taxation

  • 77. 
    A developer has a mortgage from XYZ Bank that states that construction liens recorded against the secured property later than XYZ's lien will take priority over XYZ's lien. The XYZ mortgage contains a
    • A. 

      Prepayment penalty clause

    • B. 

      Partial release clause

    • C. 

      Subordination clause

    • D. 

      Subrogation clause

  • 78. 
    If Sally dies before Janet, an estate in which Bill granted to Sally an estate for the life of Janet
    • A. 

      Reverts to Bill

    • B. 

      Ceases to exist

    • C. 

      Vests in Janet for her life

    • D. 

      Vests in whoever is entitled to Sally's interest in the estate for the life of Janet

  • 79. 
    The Civil Right Act of 1866 prohibited what type(s) of discrimination?
    • A. 

      Racial only

    • B. 

      Racial and religious only

    • C. 

      Racial, religious, and familial only

    • D. 

      Racial, religious, familial, and national origin

  • 80. 
    A broker with a net listing on a condo finds a buyer who pays $300,000 for the condo. The condo had a loan balance of $100,000; the closing costs were $5,000; the seller's specified net was $200,000; and there were no other claims against the property or cost of sale. How much commission would the broker receive from this transaction?
    • A. 

      $20,000

    • B. 

      $15,000

    • C. 

      $5,000

    • D. 

      $0