NATIONAL REAL ESTATE EXAM PRACTICE TEST Flashcards

NATIONAL REAL ESTATE EXAM PRACTICE TEST Flashcards What should a license holder do if a client instructs them to do something that would discriminate against a protected class?advise the client they cannot legally discriminate against certain groups Who can require a buyer to purchase homeowners insurance?lender Which survey system is most commonly used in urban areas?lot and block John submitted an offer to buy a condo, but he can only carry out the purchase if the bank approves his request for

a loan. For this reason, the contract must contain a:

contingency Which law requires a lender to give a buyer an estimate of closing costs?

RESPA A valid sales contract stipulates that the seller must repair a hole in the roof before closing day. The seller failed to do

so, which makes the seller guilty of:

breach of contract What type of permission allows an individual property to deviate from a specific provision of a zoning ordinance?variance The EPA requires that a lead-based paint disclosure be

presented to buyers of all residential property built prior to:

1978 Who must fill out the Seller's Disclosure Notice? seller Which of these is an example of a general agency relationship?broker and sponsored agent If a buyer makes a 15% down payment and obtains a $120,000 mortgage, what is the sales price of the property?

$141,176

What is the difference between a bill of sale and a deed?A bill of sale is for personal property; a deed is for real estate.The Americans with Disabilities Act applies to: privately owned or government-owned public accommodations What happens to trade fixtures after a business moves out of a leased property?The tenant removes their trade fixtures and takes them upon moving out.Which appraisal method would an appraiser be most likely to use on an owner-occupied residential home?sales comparison approach Hans bought an investment property for $5,250,000. The NOI of this property is $367,500. At what cap rate did he purchase this property?7% Mary has a loan whose payments and interest rate will stay the same throughout the life of the loan (not including the cost changes caused by insurance and tax rates). What kind of loan does Mary have?fixed-rate, fully amortized Sabrina accepted Rebecca's offer to purchase her house, and the closing date is in a few weeks. Until then, what

does Rebecca have?equitable title

Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate for Pedro's county is 2.375%, what will he pay in ad valorem taxes this year?

$6,887.50

Which of these is an economic characteristic that makes land a distinctive commodity?* situs Which of the following statements may represent the unauthorized practice of law?* "You should proceed without ordering a new abstract - this title is clear." Tareq represented the seller in the sale of a house for $427,000. The commission agreed upon was 7% and Tareq gave half to the buyer's representative. What will he take home if the split with his brokerage is 80% Tareq - 20% broker?

$11,956

What is the defining feature of an estate for years?It has a definite ending period and there is no automatic renewal.Which type of deed includes the five implied warranties (covenants)?general warranty deed A property owner has the right to tell other people that they cannot trespass on their property. What is this right called?right of exclusion What usually happens to earnest money at the successful closing of the sale?It counts towards the buyer's closing costs.Darla is suing Arlo for specific performance. If she is successful, what will happen?Arlo will be required to perform according to the terms of the contract.What does the principle of anticipation state about the valuation of property?The present value of a property is affected by the anticipated income or utility that property will give its property owner.Jordan took out a loan in the amount of $265,000. Her annual interest rate is 4%. What will she pay monthly in interest?

$883.33

Steering is the practice of:directing people to or away from a particular area due to the protected class of the buyer or residents of the neighborhood in a manner that perpetuates segregated housing TILA does NOT apply to which of the following kinds of loans?business loans Condemnation is the act of seizing private property from citizens. What gives the government the right to do this?eminent domain In most cases, broker compensation, as a percentage of

home price, falls somewhere between:

5-7% Which of the following terms refers to a surveyor's or developer's map that identifies lots and blocks?plat

A metes and bounds legal description always returns to:the point of beginning

Both parties involved in an agency agreement agree to end the agreement early. What is this called?mutual rescission Melissa signed a listing agreement with Shane, a local real estate agent. Melissa was then contacted by a neighbor

who agreed to purchase the house, but Shane still received compensation. What type of listing agreement did Melissa and Shane sign?exclusive right-to-sell listing