Pearson Vue Real Estate National Practice Exam Review Flashcards

Pearson Vue Real Estate National Practice Exam Review Flashcards A licensee preparing a competitive market analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is ten years old and has two baths, the comparable property is five years old and has one bath. In

this case, the licensee should adjust the:

sale price of the comparable property, down for the age and up for the number of baths The potential gross monthly rent on an apartment building is $5,380. In July, operating expenses were $3,500. A tenant whose monthly rent is $625 failed to pay the rent in July. If the property manager's commission is 6% of the

rental income, the manager's fee for July was:

$285 The difference between the value of a property and the

total amount of liens against it is known as:

equity Broker P lists a property for a seller. A buyer, represented by Broker Q, submits an offer to purchase the house and tells Broker P that they are willing to pay up to $10,000 more than the offer price, if the seller counters. In this

situation, Broker P is:

obligated to convey the information to the seller because of the duties to their clients A licensee pays for the maintenance on a rental unit using

a tenant's security deposit. This is an example of:

conversion of funds The act of recovering title to property lost through

foreclosure on a mortgage is called:

redemption A visually impaired person with a service animal completes an application for rental of an apartment that has a vigorously enforced "no pets" policy in the building.

According to the Federal Fair Housing Act, the owner MAY:

require the tenant to restore any damage to the apartment that results from the animal The difference between reproduction cost and the present

value of a property is:

depreciation A seller rejects an offer of $84,000 on a property that is listed for $85,000. One week later, another prospective buyer asks the salesperson to submit an offer of $82,000

for the property. In this situation, the salesperson SHOULD:

present the offer to the seller The owners of a house sign a listing agreement and later tell the licensee that the garage rood leaks. If the owners tell the licensee not to reveal the roof's condition to any

prospective buyers, the licensee MUST:

disclose the condition of the roof to prospective buyers A title insurance policy will protect a buyer from financial

losses that are cause by a(n):

encumbrance to which the policy has not taken an exception A plaintiff files a lawsuit against a license for a property that was later determined to have termite damage. The licensee was unaware of any damage at the time of the property

sale. The type of insurance that protects the licensee in this

situation is:

errors and omissions

A portion of an advertisement reads: "New four-bedroom,

two-bath home for sale in a family neighborhood. Yours for

only $1,100 per month." This advertisement VIOLATES the

provisions of the:

Truth in Lending and Fair Housing Acts

Under the law of agency, a broker's responsibility to the

principal is to:

exercise care, obedience, accounting, and disclosure Which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of origin?metes and bound A 40-foot easement exists across the front of a property, and a zoning ordinance requires a building setback of 50 feet from the front property line. If the property is offered for sale, a licensee SHOULD take which of the following actions when notifying prospective buyers about this situation?inform them of the existence of both the easement and the setback line A buyer makes a down payment of $27,000 on a house selling for $75,000 and secures a new mortgage for the difference at $288 per month for 25 years. How much does the buyer pay in interest over the life of the mortgage?

$38,400

When using the cost approach to determine the value of a

residential dwelling, an appraiser SHOULD:

determine replacement value less depreciation The compensation a buyer agrees to pay under the terms of a buyer representation agreement is to be paid at

settlement to the:

buyer's agent A licensee describes a house as "fabulous and wonderful" and "having the best view in town." This is most likely an

example of:

puffing A child inherits their parent's property prior to their 18th birthday. If the child decides to sell the property, and enters

into a purchase agreement, the contract could be:

voidable by the seller A licensee deposited a client's earnest money into the licensee's personal account to hold. This is considered

illegal and known as:

commingling The income approach is most likely to be used when

determining the value of a(n):

office building Buyers make an earnest money deposit on a property and sign a contract that is contingent on specific financing terms. Though a bank commits to the financing, the buyers end up changing their minds. The buyers proceed to notify the seller, in writing, that they do not intend to buy the property. Which of the following statements is CORRECT?the seller may sue the buyers for breach of contact The direct sales comparison (market data) approach would

be MOST appropriate for establishing the value of a:

5-year old single family residence When a broker lists a property that is owned by a married couple as joint tenants, the broker SHOULD make sure that

the listing agreement is signed by:

the broker and both of the spouses The owner of a farm has found a buyer for the property, which is leased to a tenant farmer. With regard to any growing crops that were planted by the tenant, which of the