Yha - Broker Pre-license Practice Final Exam (125 Questions)

125 Questions | Total Attempts: 2869

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75-Hour Broker Pre-License Course PRACTICE FINAL EXAM


Questions and Answers
  • 1. 
    The amount of commission to be paid to the broker by the client is determined by
    • A. 

      Mutual agreement.

    • B. 

      The MLS.

    • C. 

      Real estate licensing laws.

    • D. 

      Court order.

  • 2. 
    A fee simple holder of a parcel of real estate grants a life estate to his son and stipulates that upon the son's death the property will pass to his grandson. The grandson's interest in the property is called
    • A. 

      An estate at sufferance.

    • B. 

      A legal life estate.

    • C. 

      A remainder estate.

    • D. 

      A reversionary estate.

  • 3. 
    What enviornmental hazard is a product of the natural decay of radioactive substances found in the ground?
    • A. 

      Lead

    • B. 

      Radon

    • C. 

      Asbestos

    • D. 

      Carbon monoxide

  • 4. 
    Which of these types of real estate descriptions defines property by outlining its boundaries using directions and distances from a specific point of beginning?
    • A. 

      Recorded plat system

    • B. 

      Metes-and-bounds

    • C. 

      Rectangular survey

    • D. 

      Datum system

  • 5. 
    A property buyer obtains a term loan to finance the purchase of the property. Which of these is TRUE regarding the buyer's loan?
    • A. 

      The loan payments include both interest and principal.

    • B. 

      All of the interest is paid at the end of the loan period.

    • C. 

      The entire loan principal is due at the end of the loan period.

    • D. 

      The balance will be amortized over the life of the loan.

  • 6. 
    One general rule of the federal do-not-call regulations is
    • A. 

      Real estate offices are exempt from the laws.

    • B. 

      The national registry must be updated once a year.

    • C. 

      Unsolicited phone calls must not be made to a number listed on the national registry.

    • D. 

      States must maintain separate do-not-call lists.

  • 7. 
    If a tenant pays a fixed amount of rent plus all the property's expenses, the tenant's lease is known as a
    • A. 

      Graduated lease.

    • B. 

      Percentage lease.

    • C. 

      Gross lease.

    • D. 

      Net lease.

  • 8. 
    Which of these situations would be considered a dual agency?
    • A. 

      A broker representing the seller but also cooperating with a broker acting for the buyer

    • B. 

      Brokers from two offices splitting a sales commission

    • C. 

      A broker acting for both the buyer and seller in the same transaction

    • D. 

      A licensee and his or her employing broker splitting the commission

  • 9. 
    A sister and brother bought a house, taking title as tenants in common. If the brother dies, which of these is TRUE about ownership of the house?
    • A. 

      The sister owns the property in severalty.

    • B. 

      The sister holds a life estate in the brother's share of the property.

    • C. 

      The sister continues to hold her original interest, and the brother's interest goes to the brother's heirs.

    • D. 

      The sister holds fee simple ownership in the brother's share of the property.

  • 10. 
    At the closing for the sale of a home, the lender requires the buyer to place a sum of money into an escrow account. The purpose of this money is most likely for
    • A. 

      Title insurance fees.

    • B. 

      Loan processing fees.

    • C. 

      Discount points.

    • D. 

      Payment of future real estate taxes or property insurance.

  • 11. 
    A rectanglular parcel of land is 260 feet deep and 50 yards wide. How many square feet does it contain?
    • A. 

      13,000 sq. ft.

    • B. 

      36,400 sq. ft.

    • C. 

      39,000 sq. ft.

    • D. 

      52,000 sq. ft.

  • 12. 
    Brokers should deposit all earnest money checks they receive into an escrow account to prevent being accused of
    • A. 

      Antitrust violation.

    • B. 

      Fraud.

    • C. 

      Misrepresentation.

    • D. 

      Commingling.

  • 13. 
    A seller received an offer to purchase her house from a prospective buyer. The seller will still be able to accept the offer even if
    • A. 

      Another offer is received from a third party.

    • B. 

      The seller makes a counteroffer.

    • C. 

      The offer is withdrawn by the buyer before it is accepted.

    • D. 

      The time period stated in the offer expires.

  • 14. 
    A property is sold for $320,000 and the salesperson was entitled to 60% of the total commission. If the commission was 6% of the selling price, how much did the salesperson earn?
    • A. 

      $7,488

    • B. 

      $11,520

    • C. 

      $18,720

    • D. 

      $187,200

  • 15. 
    Potholes in the driveway, peeling paint, and broken windows are examples of
    • A. 

      Physical curable depreciation.

    • B. 

      Incurable physical depreciation.

    • C. 

      Economic obsolescence.

    • D. 

      Functional curable depreciation.

  • 16. 
    What government power allows the state to acquire title to property that has been abandoned?
    • A. 

      Eminent domain

    • B. 

      Zoning

    • C. 

      Taxation

    • D. 

      Escheatment

  • 17. 
    The act that establishes requirements for those who send commercial email is called the
    • A. 

      Do Not Call Act.

    • B. 

      No Solicitation Act.

    • C. 

      CAN-SPAM Act.

    • D. 

      Telecommunications Act.

  • 18. 
    In performing an appraisal of real estate, the appraiser
    • A. 

      Determines the property's final selling price.

    • B. 

      Estimates the property's market value.

    • C. 

      Establishes the cost basis of the property.

    • D. 

      Sets the assessed value of the property.

  • 19. 
    Both owners of cooperative apartments and owners of condominium units
    • A. 

      Must pay assessments.

    • B. 

      Own real property.

    • C. 

      Receive an annual real estate tax bill.

    • D. 

      Own shares of stock.

  • 20. 
    A couple purchased a house for $350,000, making a down payment of $100,000. The buyers get a new mortgage of $230,000 from a lender and financed the remaining $20,000 through a mortgage given to them by the seller. The $20,000 mortgage is called a
    • A. 

      Wraparound mortgage.

    • B. 

      Purchase money mortgage.

    • C. 

      Blanket mortgage.

    • D. 

      Balloon mortgage.

  • 21. 
    A grantor conveying title wishes to only guarantee that the property was not encumbered during the time the grantor held title, except for encumbrances noted in the deed. The type of deed used by the grantor is a
    • A. 

      General warranty deed.

    • B. 

      Special warranty deed.

    • C. 

      Sheriff's deed.

    • D. 

      Quitclaim deed.

  • 22. 
    What BEST describes the agreement between an owner and a developer who leases the property from the owner with the intention of constructing an office building on the property?
    • A. 

      Ground leasehold

    • B. 

      Sale and leaseback

    • C. 

      Lease option

    • D. 

      Land contract

  • 23. 
    Which of these is an essential element of a contract?
    • A. 

      Consideration

    • B. 

      Contingency

    • C. 

      Performance

    • D. 

      Recording

  • 24. 
    Local zoning ordinances are used to regulate all of these EXCEPT
    • A. 

      Rules for conducting open houses.

    • B. 

      The height of buildings.

    • C. 

      The density of the population.

    • D. 

      Allowable uses for buildings.

  • 25. 
    The amount of the earnest money deposit in a real estate sales contract is determined by
    • A. 

      Agreement between the seller and the broker.

    • B. 

      The local multiple listing service.

    • C. 

      The listing broker's office policy.

    • D. 

      Agreement between the buyer and seller.

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