Pearson Vue Real Estate Salesperson Practice Exam

Pearson Vue Real Estate Salesperson Practice Exam 1 12/14/2022 Flashcards The duties of the property manager include all of the following EXCEPTA. maintaining the property while preserving finances.B. marketing for a constant tenant base.C. seeking interested buyers.D. preparing budgets.Choice CThe property manager typically is not involved in selling the property.The Residential Lead-Based Paint Hazard Reduction Act requires the disclosure of known information on lead-based paint and lead-based paint hazards before the sale or lease of most housing built before 1978. Under the statute, all of the following are true EXCEPTA. a licensee must certify in writing that the licensee has advised the sellers and landlords of their disclosure obligations.B. a licensee must ensure that sales contracts and leases include proper disclosure language and signatures.C. a licensee must inform the buyer or renter that he or she is responsible for payment of a lead-based paint survey at closing.D. any seller, landlord, or licensee who knowingly violates the law is jointly and severally liable to the purchaser or lessee for potentially significant financial penalties.Choice CThe statute does not require either the seller or buyer to pay for testing.The area of a lot that measures 850' × 850' is how many square yards? Round your answer to the nearest whole number.A. 80,278B. 240,833C. 26,759D. 722,500 Choice A850' times 850' divided by 9 (there are 3 yards/foot, and area is yards squared, so you divide by 9) is just under 80,278 square yards.In the event of default and foreclosure, which clause would require the lender to look only to the property for satisfaction of the debt?A. defeasance clauseB.exculpatory clauseC. cognivit clauseD. subordination clause Choice BAn exculpatory clause relieves the borrower of any personal liability, thus the lender can only recover from the mortgage security and not from the personal assets of the borrower.A salesperson has earned $120,000 in gross commissions this year. If the average commission is 2.6% per transaction and the salesperson receives 60% of the commission from each transaction, how much sales volume has that salesperson settled this year? Round your answer to the nearest whole number.A. $7,200,000B.

$4,615.380C. $7,692,300D. $8,000.000

Choice C$120,000 divided by 0.60 is $200,000. $200,000 divided by 0.026 is approximately $7,692,300.Which of the following statements are true regarding the FHA?I. FHA insures loans but does not guarantee them.II.FHA has a program 203b that is for one- to four-family dwellings.III. FHA loans are funded by conventional lenders.A. I onlyB. I and II onlyC. II and III onlyD. I, II, and III Choice CFHA has a program 203b that is for one- to four-family dwellings. In addition, FHA loans are funded by conventional lenders.

The income capitalization approach is based onI. past income of the property.II. present income of the property.III.future income of the propertyA. I onlyB. I and II onlyC. II onlyD. II and III only Choice DThe income approach is based on present income and the expectation of future income.Tenancy by the entirety is a special form of ownership available only toA. sole owners.B. corporations.C. married couples.D. limited partners.Choice CTenancy by the entirety, available in most non-community property states, is automatically assumed when a married couple purchases real estate together, unless they specify some other form of ownership.The Real Estate Settlement Procedures Act mandates all of the following procedures EXCEPTA. establishing performance standards for providers of settlement services.B. giving consumers information about loan costs.C. eliminating "kickbacks" to any person who is not a transaction-related service provider.D. giving notice to the parties of the transaction of the cash required to close and the net proceeds to be expected.Choice APerformance standards are set by the marketplace and competition.George Brown owns 150 acres of farmland and has posted "No Trespassing" signs on the fence surrounding the property. He can enforce this notice by virtue of hisA.constitutional privilege.B. right to exclude.C. obligation of disposition.D. surface rights.Choice BThe right to exclude is one of the rights contained in the bundle of legal rights of ownership.At a general meeting of a brokers' trade association, several members begin talking about setting standard fees and business practices. This sort of activity could be consideredA. a violation of the Sherman Antitrust Act.B.activity prohibited by the Better Business Bureau.C. an appropriate activity within the association.D. a good way for brokers to learn about the different practices nationwide.Choice AAny discussion of fees between competitors could be viewed as price fixing, an attempt to conspire to set the cost of real estate brokerage services, a violation of Antitrust law.A tenant is delinquent on his lease payments. The owner canA. have his bill collector evict the tenant from the premises.B. turn off the electricity and water.C. personally evict the tenant after giving 24-hour constructive notice.D.bring a court action.Choice DThe Landlord Tenant Act in most states clearly establishes specific court procedures with strict time lines.Which of the following would be an example of an involuntary alienation of real property?A. DeviseB. Special warranty deedC. Gift deedD. Adverse possession Choice DBy definition, this manner of acquiring real estate must be open, notorious, and against the wishes of the owner for a specific statutory period of time.Solly wants to invest in Mort's real estate venture for the purchase of a shopping center. Solly does not want to have any continuing financial liability or management headaches, and he wants the best income tax arrangement. Mort could best serve Solly and his other investors by forming aA. Subchapter S Corporation.B.regular "C" corporation.C. limited liability partnership (LLP).D. general partnership.Choice CA limited liability partnership would be the ideal form of ownership for Solly and other passive investors because he would not be liable for any financial funds beyond the initial investment. He could not be engaged in the management of the shopping center, and the partnership pays no income tax.

When describing the particulars about a property, the agent does not disclose that a capital improvement project that will result in a special assessment to the owner in the near future has been approved. The broker hasA. acted in accordance with the duties of a fiduciary.B. refrained from disclosing anything that would weaken the principal's bargaining position.C. committed a fraud.D. prevented future legal problems for the seller client.Choice CRegardless of an agency relationship, the agent must disclose all pertinent facts about a property or may be charged with committing a fraud. The seller has the same obligation.In a residential transaction, an agent is required to disclose the existence of which of the following when the agent is aware of it and is asked about it directly?A. asbestosB.lead-based paintC. radon gasD. All of the above must be disclosed Choice DBecause they could cause severe health problems, the presence of asbestos, lead-based paint, and radon gas must be disclosed.Which clause, if included in a mortgage, allows a lien recorded subsequent in time to have a superior position to the mortgage that was recorded prior in time?A. a release clauseB. a subordination clauseC. a cognovit clauseD. a superior clause Choice BA subordination clause allows a subsequent mortgage to be placed ahead of the existing mortgage.If there is suspicion of radon presence in a house, which of the following measures should be taken?A. Enclose the house to limit ventilation.B. Relocate living areas to the basement or lower levels.C. Seal tightly all basement and lower level areas.D. Do nothing-radon does not affect humans.Choice CSince radon gas comes from decaying uranium in the ground, one of the most effective ways to reduce its presence is to seal cracks and openings in the structure to minimize its ability to get into the structure.The assessed value of a property is $450,000, and the tax rate is $0.823 per hundred of value. What is the monthly escrow deposit that would be needed to assure having enough money on hand to pay the annual tax bill?A.

$3,703.00B. $308.63C. $370.35D. $450.00

Choice B($4,500 × 0.823) divided by 12 = $308.63 Property managers often make management decisions about tenant selection and budgets for their clients. In these relationships, the property manager is acting as a(n)A. special agent.B. testator.C. independent contractor.D. general agent.Choice DThe general agent is empowered to make binding decisions on behalf of the principal in a number of delegated functions. Approving leases and property expenditures are among those activities.A salesperson negotiates a sale and obtains a written contract signed by all parties. The sale closes but the seller refuses to pay the broker a commission. The broker is not willing to sue the seller for the commission because the seller is his favorite brother-in-law. The salesperson mayA.sue the seller.B. sue the broker.C. force the broker to sue the seller.D. place a lien against the seller's property for the amount of the commission.Choice BOnly the broker may sue the principal. The agent's claim must be made against the his broker, pursuant to their independent contractor's agreement.A type of lease that is common in retail properties requires the tenant to pay a portion of gross sales to the landlord.This is commonly referred to as aA. net lease.B. sales

lease.C. percentage lease.D. gross lease.Choice CA percentage lease has a base rent plus a percentage (overage) of the gross sales after the retailer goes over a predetermined threshold in sales.