National Real Estate Exam Prep Flashcards

National Real Estate Exam Prep Flashcards Ownership of the common areas of condominiums is most

likely to be:a. joint tenancyb. tenancy by the entiretyc.

tenancy in commond. sole ownership

• tenancy in common

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?a. an agent advertising client property on social media needs written permission from the clientb. an agent advertising on social media must comply with all the same laws and rules as print and broadcast advertisingc. an agent with permission to advertise a property on social media does not have to worry about protecting confidential information about the clientd. the use of social media in real estate advertising is growing

• an agent with permission to advertise a property on

social media does not have to worry about protecting confidential information about the client John owns lakefront property. He has been granted water

rights to the lake. He has:a. Riparian Rightsb. Appropriative

Rightsc. Littoral Rightsd. Prior Appropriation

• littoral rights

A broker has accepted a buyer's deposit check and placed one half of the deposit in the escrow account and the other half in his operating account. He has used the funds in the operating account to pay his office expenses. The broker is

guilty of:A. ComminglingB. ConversionC. FraudD.

Embezzlement

• Conversion

Which of the following statements about an easement is true?a. an easement is a benefit to the servient property ownerb. an easement is an encroachmentc. an easement is a benefit to the dominant property ownerd. an easement in gross belongs to or passes with the land

• an easement is a benefit to the dominant property owner

Which of the following statements about lead is NOT true?a. the lead paint disclosure is required for all properties built before 1978b. the lead paint disclosure allows an inspection for 10 days after the date of the contractc. the lead paint disclosure allows a buyer to waive the right to an inspectiond. the property owner must remediate the presence of lead

• the property owner must remediate the presence of lead

Under what right can the government change property use from commercial to residential only?a. Police Powerb.Eminent Domainc. Taxationd. Escheat

• police power

Which of the following situations would require an appraisal?a. A seller wants to be sure to price his home

competitively.b. A buyer wants to make a fair offer on a listed property.c. A parent wishes to gift a property to a child.d. A court ordered partition is dividing a joint tenancy.

• A court ordered partition is dividing a joint tenancy.

A seller was unaware of the presence of asbestos on his property. The buyer's inspection has found that asbestos is present. Which of the following statements is true?A. There is no duty for the seller to perform asbestos abatement.B.Asbestos removal is not considered hazardous, therefore, the seller can simply remove it before closing.C. The removal of asbestos is called remediation.D. As a result of EPA rulings, the presence of asbestos on a property automatically voids the sales.

• There is no duty for the seller to perform asbestos

abatement What are the requirements/criteria for real estate to have value?a. Demand, Utility, Scarcity, Transferabilityb.Demand, Utility, Supply, Taxabilityc. Demand, Usury, Scarcity, Taxabilityd. Deed, Usury, Supply, Transferability

• Demand, Utility, Scarcity, Transferability

At closing a seller learns that he has an unsatisfied M&M

Lien on his property. This is most likely the result of:a.

Property Taxesb. A fence that was built on the property, but not paid forc. An IRS claimd. A home improvement loan

• A fence that was built on the property, but not paid for

In many instances a lender will require a buyer to purchase PMI when financing the purchase of a home. What does PMI do?A. Insures the total loan amountB. Insures the lender's exposure of risk, usually the top 25-30% of the loan amount.C. Pays off the loan in the event of the death of one of the property owners.D. Ensures the lender will receive the entire balance due at foreclosure sale, regardless of the price of the property at that foreclosure sale.

• Insures the lender's exposure of risk, usually the top

25-30% of the loan amount.Which of the following closings would be regulated by RESPA?A. An apartment buildingB. A co-opC. A retail outletD. A condominium

• A co-op

A license holder has just taken a class in marketing on social media. She is very excited about the idea and has decided to market her listings this way. She has joined Facebook and Twitter, intending to use them as advertising media. Which of the following statements about advertising on social media is false?A. The license holder does not need written permission from her clients to advertise their properties on social media.B. All advertising on social media must comply with Fair Housing and TIL rules.C.Puffing in advertising is permitted.D. Exaggerated puffing, which leads to misrepresentation, is not permitted.

• The license holder does not need written permission

from her clients to advertise their properties on social media.An investor has purchased a property that is giving him a 10% rate of return. Potential gross rents total $10,000.00 a month. Expenses for the property total $47,570.00 per year. The property has a vacancy rate of 8%. What is the market value of the property?A. $628,300.00B.

$724,300.00C. $722,020.00D. $664,258.00

• $628,300.00

Which of the following creates a general agency relationship?A. A listing agreementB. A buyer representation agreementC. A management agreementD.A sales contract

• A management agreement