National Real Estate Exam Practice Questions Flashcards

National Real Estate Exam Practice Questions Flashcards When does an offer become a contract?When the offeree gives the offeror notice of the acceptance What is another name for Contract for Deed installment contract If an appraiser uses the cost approach to determine the value of a two story building 128 x 97 at $120/sq. ft, with $10,000 in depreciation and a $27,500 lot, what is the value of the property?

$2,997,340

What type of mortgage loan would allow the property owner to borrow additional funds at future dates an HELOC What should a buyer do to ensure that his is getting the best title to real property?get a general warranty deed Which of the following closings would be covered by RESPA (1-4 residential family housing) a condominium A property manager is hired and signs a management agreement with the owner. At this time, the property manager is...a general agent Which of the following would NOT be an operating expense included in the property manager's operating budget mortgage payments According to the Statute of Frauds, which of the following leases must be in writing?a lease for more than one year

CERCLA is under the administration of:EPA

A property manager notices that the building stucco needs repair. He notifies the landlord and recommends a contractor. The landlord uses the contractor who does not do a good job. The new stucco leaks and mold grows. The tenant becomes ill from the mold. Who is responsible?the landlord A listing agent is showing his listing to a buyer customer and notices a problem with the exterior of the property that he missed when he listed the property. What should he do?point it out to the buyer as it is a material fact A seller comes into the office to sign a contract. The seller is stumbling and smells of alcohol. How do you proceed?tell the seller to leave and return another time Which of the following properties would be the least desirable neighborhood?brownfields What approach would an appraiser most likely use to value a residential rent house in neighborhood where a majority of the homes are leased?income approach Economic life is defined asyears of depriciation Maria is planning to buy a house for $200,000. The lender has indicated that he will charge 3 points plus an origination point. Maria is considering the difference between an 80% LTV and a 75% LTV. How much will she save on points if she chooses the 75% LTV?$400

Regulation Z applies to:ALL REAL ESTATE credit transactions except for

commercial loans. For non-real estate transactions, it covers up to $25,000.An investor has 15 rent houses. He has hired an agent to lease the houses. Which of the following actions by the agent would NOT be in violation of fair housing laws.refusing to show the houses to anyone over 75 years old A seller has received $225,000 for the sale of his home.This represents a 20% profit. What did he pay for the house when he purchased it?

$187,500

What department of the government oversees the FHA insurance program?

HUD An agent is accused of discrimination. What will HUD do...try mediation followed by a lawsuit if mediation fails A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is an example of...encroachment Which of the following is NOT an example of due diligence in a sales contract?a broker completes a CMA for a buyer client prior to the buyer making an offer Mark purchased a home for $150,000 He had an 80% LTV.He has paid off $42,000 of his purchase mortgage. He is selling the house for $179,000. How much equity does he have?

$101,000

An agent working with immigrant buyers must be carefulnot to steer the buyers to a neighborhood based on the language they speak A property owner has decided to do some landscaping work on his yard. He has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an example of...improvements Which of the following statements is true about the duties of an agent according to the common law of agency?an agent must treat both clients and customers with honesty and fairness A buyer and seller have negotiated a contract on the seller's property with a closing set for June 14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this time, what is true?the contract is voidable by the buyer Tenants have signed a 3 year lease on a property. In the second year the owner dies and his heirs inherit the property. They give the tenants notice to vacate. What is true?the tenants can stay until the end of the lease A buyer is aware that the interest rates should go down over the nest few months. What type of loan should he get to enable him to buy now and take advantage of declining rates in the future?

ARM

Under what right can the government change property use from commercial to residential only?police power A broker is running short of funds to meet this month's monthly operating expenses. He places a client's earnest money deposit in his business account and uses it to pay is rent. After his next closing, he replaces the client's deposit in his trust account. The broker...is guilty of conversion A signed sales contract that has not yet gone to closing is...executory Which of the following is personal property? a lease When does the buyer under contract for deed get title to the property?when the final loan payment is made An unlicensed assistant gets a call from a listing owner with questions about a contract- what should the assistant do?take the information to the listing broker Which of the following is NOT an example of functional obsolescence?deferred maintenance A licensee is representing a seller in a commercial transaction. The property is under contract and all contingencies have been met. The listing agent learns the State Department of Transportation has authorized the construction of an exit ramp to the interstate right behind the commercial property. The exit ramp will greatly increase the value of the seller's property. What should the agent do?tell the seller and encourage the seller to complete the negotiated sale General liability insurance willprotect a company's assets if someone is injured on company property A seller must keep a copy of the lead paint disclosure he provided to the buyer for

• years

A developer has 2,178,000 sq.ft of property. He sells 80% of it for $5,000 an acre. What is the total sale price?

$200,000

Your client will be able to qualify for a property they wish to purchase in about 6 months, after they had an opportunity to reduce their consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter into with a seller that will allow them to occupy the property now and purchase it within the

• months?

lease with an option to buy Which of the following is unlikely to have a negative impact on seller's credit score?a straight assumption It has been found that mold can develop due to air tight windows and doors found in newer construction A seller wants to net $185,000 on the sale of his property.He must pay a loan balance of $180,530 and closing costs at $10,000. The commission to the listing broker will be 6%.What is the lowest price the property can sell for to accomplish this?

$399,500

A buyer has purchased a property and after closing the seller will continue to occupy the property. This is an example of...sale and leaseback Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next 6 months. What type of contract should he enter into with the seller?an option contract Which of the following statements about lead is NOT true?the property owner must remediate the presence of lead A high rise condominium property is advertised as having the "Most beautiful view of the city". This ad is best described as puffing In rental properties, increased demand can be the result ofhigh mortgage interest rates Which of the following facts about listed property must be disclosed death due to structural defects A landlord leased space in his new retail property to an inexperienced business person. Based on location and the type of business, the landlord believes it will be a great success. What type of lease can he enter into with the tenant that will allow the landlord to benefit from the tenant's success?a percentage lease When did the second amendment of the Federal Fair Housing Act go into effect?March 12, 1989 A license holder has just attended a training seminar about technology in real estate and is excited about using social media with her clients. Which of the following statements about social media in real estate is NOT true?an agent with permission to advertise a property on social media does not have to worry about protecting confidential information about the client A property is listed for $399,500. It sells for $396,000. The negotiated commission is 6% and will be split evenly between the selling broker and the listing broker. The selling broker pays his sales associates 60% of the broker's commission. How much does the selling broker earn?

$4,752

A developer decides to build a commercial property in the middle of a residential subdivision. What is required?a variance A condo complex has liability complex has liability insurance. This is least likely to cover a units owner's carpet damaged by a broken water pipe Prior to its amendments, the Civil Rights Act of 1968 prohibited discrimination based on...national origin A sales agent is showing a property. He trips in the house causes major damage to property of the owner. What type of insurance will cover this accident?liability insurance A man leaves his second wife a life estate in their home after which the property goes to his children from his first marriage. The children...are remaindermen