Real Estate Associate Practice Quiz 1

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| By Proudmuslima2006

Proudmuslima2006

Community Contributor

Quizzes Created: 1 | Total Attempts: 299

Questions: 10 | Attempts: 299 | Updated: Mar 21, 2023

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Real Estate Associate Practice Quiz 1 - Quiz

BI IZ MI ALLAH- THIS QUIZ HAS BEEN CREATED TO ASSIST MY RARARRRSSS IN PASSING THE REAL ESTATE ASSOCIATES EXAM, INSHA'ALLAH.

Questions and Answers

1.

DISCOUNT POINTS ARE?
- A.
  
  CHARGES IMPOSED BY A LENDER TO INCREASE THE INTEREST YIELD ON A MORTGAGE
- B.
  
  A LIST OF CHARGE/EXPENSES INCURRED FOR APPLYING FOR A MORTGAGE
- C.
  
  CHARGES PAID BY A BUYER FOR SECURING AN FHA MORTGAGE
- D.
  
  CHARGES ASSESSED MEMBER BANKS FOR BORROWING FROM THE FEDERAL RESERVE BANK
Correct Answer
A. CHARGES IMPOSED BY A LENDER TO INCREASE THE INTEREST YIELD ON A MORTGAGE

Explanation
Discount points are charges imposed by a lender to increase the interest yield on a mortgage. These points are essentially prepaid interest that borrowers can choose to pay upfront in exchange for a lower interest rate on their mortgage. Each discount point typically costs 1% of the total loan amount and can lower the interest rate by a certain percentage, usually 0.25%. By paying discount points, borrowers can reduce their monthly mortgage payments and save money in the long run.

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2.

BROKER IS ASKED TO ESTIMATE THE MARKET VALUE OF A 3-BEDROOM HOUSE WITH 2 BATHROOMS AND AN UNFINISHED BASEMENT. SHE FOUND 3 RECENT COMPARABLE SALES. THE RELEVANT INFORMATION ON THESE SALE SUMMARIZED BELOW.BROKER HAS ESTIMATED THAT AN EXTRA BEDROOM IS WORTH $7,000, AN EXTRA BATHROOM $2,500, A FINISHED BASEMENT $6,000 USING THIS INFORMATION WHAT IS THE ESTIMATED VALUE OF THE SUBJECT PROPERTY
- A.
  
  $82,000
- B.
  
  $75,000
- C.
  
  $78,000
- D.
  
  $76,000
Correct Answer
B. $75,000

Explanation
The estimated value of the subject property is $75,000. This is calculated by adding the value of the 3 bedrooms ($21,000), the 2 bathrooms ($5,000), and the unfinished basement ($0) to the base value of the house.

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3.

SALESPERSON EARNS 2/3 OF A 7% COMMISSION ON A SALE OF 14 ACRES AT $2,150 PER ACRE THE COMMISSION WOULD BE?
- A.
  
  $702.33
- B.
  
  $140.47
- C.
  
  $2,107.00
- D.
  
  $1,404.67
Correct Answer
D. $1,404.67

Explanation
The salesperson earns 2/3 of a 7% commission on a sale of 14 acres at $2,150 per acre. To calculate the commission, we first find the total sale amount by multiplying the number of acres (14) by the price per acre ($2,150), which equals $30,100. Then, we calculate the commission by multiplying the total sale amount by the commission rate (7%), which equals $2,107. Finally, we find 2/3 of the commission by multiplying the commission amount by 2/3, which equals $1,404.67. Therefore, the commission would be $1,404.67.

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4.

BROKER EMPLOYS AN UNLICENSED SECRETARY WHO OCCASIONALLY REFERS PROSPECTS TO BROKER, SHE PAID $25 FOR EACH OF THESE REFERRALS AS A BONUS TO HER SALARY. WHICH OF THE FOLLOWING IS CORRECT?
- A.
  
  ONLY SECRETARY IS IN VIOLATION OF CHAPTER 475, F.S.
- B.
  
  ONLY BROKER IS IN VIOLATION OF CHAPTER 475, F.S.
- C.
  
  BOTH BROKER AND SECRETARY ARE IN VIOLATION OF CHAPTER 475, F.S.
- D.
  
  NEITHER BROKER NOR SECRETARY ARE IN VIOLATION OF CHAPTER 475, F.S.
Correct Answer
B. ONLY BROKER IS IN VIOLATION OF CHAPTER 475, F.S.

Explanation
The correct answer is that only the broker is in violation of Chapter 475, F.S. This is because the broker is employing an unlicensed secretary who is referring prospects to the broker and receiving a bonus for each referral. According to Chapter 475, F.S., it is illegal for anyone to engage in real estate brokerage activities without a valid license, and the secretary's actions can be considered as engaging in brokerage activities. Therefore, the broker, who is responsible for ensuring that all employees are properly licensed, is in violation of the law.

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5.

UNDER WHICH OF THE FOLLOWING CONDITIONS CAN A SALESPERSON ACCEPT A DEPOSIT IN CONNECTION WITH A REAL ESTATE TRANSACTION?
- A.
  
  I AND III ONLY
- B.
  
  I ONLY
- C.
  
  II ONLY
- D.
  
  III ONLY
Correct Answer
D. III ONLY

Explanation
A salesperson can accept a deposit in connection with a real estate transaction only under the condition mentioned in option III. This means that the salesperson can accept a deposit if they are licensed and authorized to do so by their broker. Options I and II are not valid conditions for accepting a deposit in this context.

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6.

OWNERS SIGNS A HOME IMPROVEMENT LOAN O HIS PERSOAL RESIDENCE AFTER SIGNING, HE FEELS TO RESCIND THE CONTRACT BECAUSE OF REGULATION Z HOW MANY DAYS AFTER SIGNING IS OWNER ALLOWED FOR RESCISSION?
- A.
  
  3 BUSINESS DAYS
- B.
  
  30 BUSINESS DAYS
- C.
  
  10 BUSINESS DAYS
- D.
  
  15 BUSINESS DAYS
Correct Answer
A. 3 BUSINESS DAYS

Explanation
After signing a home improvement loan on his personal residence, the owner is allowed 3 business days to rescind the contract due to Regulation Z. Regulation Z is a federal law that provides certain consumer protections for credit transactions, including the right to cancel certain types of loans within a specified period of time. In this case, the owner has the option to rescind the contract within 3 business days of signing.

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7.

ALL OF THE FOLLOWING ARE CORRECT STATEMENTS CONCERNING BRANCH OFFICE SIGNS EXCEPT?
- A.
  
  LETTERS ON THE EXTERNAL SIGNS MUST BE A LEAST ONE-INCH IN HEIGHT
- B.
  
  THE SIGN MUST INDICATED THAT THE OFFICE IS A BRANCH OFFICE
- C.
  
  NAMES OF SALESPERSON MAY APPEAR ON THE SIGN IF THEY ARE CATIONS "SALESPERSON: OR BROKER-SALESPERSON AND A LINE OR OBSERVABLE SPACE SEPARATES THE WORDS "LICENSED REAL ESTATE BROKER" FROM THE SALESPERSONS' NAMES
- D.
  
  THE NAME OF ALL ACTIVE MEMBERS OF THE PARTNERSHIP OR ALL ACTIVE MEMBERS OF THE CORPORATION MAY BE ADDED BENEATH THE NAME OF THE PRINCIPAL BROKER(S)
Correct Answer
B. THE SIGN MUST INDICATED THAT THE OFFICE IS A BRANCH OFFICE

Explanation
The correct answer is "THE SIGN MUST INDICATED THAT THE OFFICE IS A BRANCH OFFICE." This statement is incorrect because branch office signs are not required to indicate that the office is a branch office.

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8.

A REAL ESTATE SALESPERSON MAY RECEIVE A BROKERAGE COMMISSION FROM?I) A COOPERATING SALESPERSONII) A COOPERATING BROKERIII) HIS/HER EMPLOYING BROKER
- A.
  
  III ONLY
- B.
  
  I ONLY
- C.
  
  II ONLY
- D.
  
  I, II AND III
Correct Answer
A. III ONLY

Explanation
A real estate salesperson may receive a brokerage commission only from his/her employing broker. This means that the salesperson can only receive a commission from the broker they work for and not from any other cooperating salesperson or broker.

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9.

A HOMEOWNER IS INFORMED THAT THE CITY PLANS TO TAKE HER HOMESTEADED PROPERTY TO BUILD A PUBLIC LIBRARY. THE CITY
- A.
  
  CAN SEIZE THE HOMESTEADED PROPERTY BUT THE HOMEOWNER WILL HAVE LIFE IN THE PROPERTY
- B.
  
  CAN SEIZE THE PROPERTY THROUGH AN ESCHEAT PROCEEDING
- C.
  
  HAS THE AUTHORITY TO PROCEED THROUGH THE RIGHT OF EMINENT DOMAIN
- D.
  
  CANNOT TAKE THE PROPERTY BECAUSE IT IS HOMESTEADED
Correct Answer
C. HAS THE AUTHORITY TO PROCEED THROUGH THE RIGHT OF EMINENT DOMAIN

Explanation
The correct answer is that the city has the authority to proceed through the right of eminent domain. Eminent domain is the power of the government to take private property for public use, as long as just compensation is provided to the property owner. In this case, the city plans to take the homeowner's property to build a public library, which qualifies as a public use. Therefore, the city has the authority to proceed with the seizure of the property through the right of eminent domain.

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10.

OWNER HAS A $30,000 MORTGAGE ON HIS HOUSE FOR A TERM OF 30 YEARS AT AN ANNUAL INTEREST RATE OF 8.5%. THE MONTHLY PRINCIPAL AND INTEREST PAYMENT IS $230.67. CALCULATE THE PRINCIPAL PAID ON THE SECOND MONTH'S PAYMENT
- A.
  
  $36.34
- B.
  
  $18.30
- C.
  
  $18.00
- D.
  
  $18.17
Correct Answer
B. $18.30

Explanation
The principal paid on the second month's payment can be calculated by subtracting the interest paid from the total monthly payment. Since the monthly payment is $230.67 and the annual interest rate is 8.5%, the monthly interest can be calculated as (8.5% / 12) * $30,000 = $212.50. Therefore, the principal paid on the second month's payment is $230.67 - $212.50 = $18.17.

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Current Version
Mar 21, 2023

Quiz Edited by
ProProfs Editorial Team
Nov 12, 2009

Quiz Created by
Proudmuslima2006

Real Estate Associate Practice Quiz 1

DISCOUNT POINTS ARE?

SALESPERSON EARNS 2/3 OF A 7% COMMISSION ON A SALE OF 14 ACRES AT $2,150 PER ACRE THE COMMISSION WOULD BE?

BROKER EMPLOYS AN UNLICENSED SECRETARY WHO OCCASIONALLY REFERS PROSPECTS TO BROKER, SHE PAID $25 FOR EACH OF THESE REFERRALS AS A BONUS TO HER SALARY. WHICH OF THE FOLLOWING IS CORRECT?

UNDER WHICH OF THE FOLLOWING CONDITIONS CAN A SALESPERSON ACCEPT A DEPOSIT IN CONNECTION WITH A REAL ESTATE TRANSACTION?

OWNERS SIGNS A HOME IMPROVEMENT LOAN O HIS PERSOAL RESIDENCE AFTER SIGNING, HE FEELS TO RESCIND THE CONTRACT BECAUSE OF REGULATION Z HOW MANY DAYS AFTER SIGNING IS OWNER ALLOWED FOR RESCISSION?

ALL OF THE FOLLOWING ARE CORRECT STATEMENTS CONCERNING BRANCH OFFICE SIGNS EXCEPT?

A REAL ESTATE SALESPERSON MAY RECEIVE A BROKERAGE COMMISSION FROM?I) A COOPERATING SALESPERSONII) A COOPERATING BROKERIII) HIS/HER EMPLOYING BROKER

A HOMEOWNER IS INFORMED THAT THE CITY PLANS TO TAKE HER HOMESTEADED PROPERTY TO BUILD A PUBLIC LIBRARY. THE CITY

OWNER HAS A $30,000 MORTGAGE ON HIS HOUSE FOR A TERM OF 30 YEARS AT AN ANNUAL INTEREST RATE OF 8.5%. THE MONTHLY PRINCIPAL AND INTEREST PAYMENT IS $230.67. CALCULATE THE PRINCIPAL PAID ON THE SECOND MONTH'S PAYMENT