General Practice Test

General Practice Test

1 / 50

Kelly's property runs to the river. Her right to use the water is known as

2 / 50

A property is appraised at $500,000 using a cap rate of 7 %. What is the net operating income?

3 / 50

The Fair Credit Reporting Act gives borrowers which right(s)?

4 / 50

Sarah notices a large, obvious crack in the basement wall of a home that she toured with her agent. She buys the property knowing that the patent defect is present in the basement. A month after the closing she decides to sue her agent because she never disclosed the patent defect to her. What will most likely happen?

5 / 50

Lacey is a lucky agent- she has listed a home that everyone wants to see! While her seller was still considering the first offer on the listing, two more came in. What should she do?

6 / 50

When does legal title to real property pass from the seller to the buyer?

7 / 50

When a mortgage is based on personal property rather than real property it is known as a

8 / 50

Rose recently had her home appraised and the appraised value was $300,000.  The first mortgage against her home has an outstanding balance of $210,000. Rose has now arranged a home equity line of credit in the amount of 80 % of the appraised value of her home, minus the total outstanding indebtedness against the home. What is the amount of her line of credit?

9 / 50

Which type of listing allows the broker the right to collect a commission if any other brokerage firm brings a buyer but not if the seller obtains the buyer?

10 / 50

The process by which unauthorized possession and use of another’s property can turn into ownership of that other’s property without the owner being paid for it is:

11 / 50

In an adjustable rate mortgage, the fully indexed rate is:

12 / 50

A builder has taken interest in a neighborhood of homes that typically sell for approximately $200,000. They have placed a sign in the new subdivision they are building indicating that the homes they were starting to build would sell for $230,000-$240,000. What impact might this have on the older homes currently located in the area?

13 / 50

It is generally understood that land has what three fundamental characteristics

14 / 50

A real estate agent listing a home for sale is most likely a:

15 / 50

Georgia had her property appraised ten years after he purchased it and discovered that it was valued at $387,000, while her mortgage balance was only $287,000. In this case, $100,000 represents:

 

16 / 50

Angela has a contract on a property, with the understanding that the seller already has an executory contract in place. Angela has a:

17 / 50

Katherine recently sold her house and received a check for $125,000.00 after paying $3,000 of closing costs and a 5% commission. Based on the information provided, the gross sales price of Katherine’s house was:

18 / 50

A federal law that requires the release of relevant information to protect the public from sexually violent offenders is known as:

19 / 50

What is the commission rate on a sale of $134,000 if the total commission paid was $8,100?

20 / 50

The cost a borrower pays to cover the expense of processing a loan is known as a/an:

21 / 50

An agent or broker tries to guide a buyer to or away from a particular area or neighborhood based on their race or religion. This is known as:

22 / 50

Sam has purchased a property. He will make payments to the seller while he is living in the property, but he will not receive the deed until most or all of the terms have been met. What is this called?

23 / 50

An appraiser is working on an appraisal report on a very unique building that was formerly used as a museum. Which appraisal approach would he most likely use?

24 / 50

A deed used to transfer title states that the conveyance will remain in effect "so long as the property is not used for the sale of firearms." What kind of estate would the owner receive?

25 / 50

If a homeowner physically attaches a fixture to real property, thereby causing it to become a part of the real property, this is called:

 

26 / 50

A developer turns over part of his land to a public use. This is known as:

27 / 50

A notice filed or recorded for the purpose of warning all persons that the title or right to the possession of certain real property is in litigation; literally "suit pending;" usually recorded so as to give constructive notice of pending litigation is called:

28 / 50

Harry has decided to use the income capitalization approach to determine the value of a building. Which of these properties is he evaluating:

29 / 50

William's lender has required him to purchase title insurance that protects the lender as part of his closing on a loan. What is this insurance called?

30 / 50

Anna rents a shop at the mall. She pays her landlord a fixed amount of rent every month. In addition, she owes him a percentage of her profits as part of the lease. This is known as a

 

31 / 50

Jack, an investor who owns multiple properties, pledged five of his apartment buildings as collateral in order to receive a blanket mortgage. If Jack pays down his loan to a certain point, his lender will agree to release certain properties pledged as collateral from the loan. This is known as a:

32 / 50

Joey moved to an apartment that had many favorable features- it was close to a major employer in the area, on the bus line, and had a large swimming pool. These features are referred to as:

33 / 50

Jim, a broker, has a listing that requires a 5% brokerage commission. Jim offers 40% of the commission to the selling broker, Wendy. If Jim sells the property for $635,000, how much commission would Jim keep?

34 / 50

The Swanson family thinks that Betty is the best agent in the world. To show their appreciation for her hard work, they handed her a card with $500 cash inside after they closed on their new home. Betty took it straight to the mall and bought several new outfits. Is this OK?

35 / 50

Exposure to lead is associated with:

36 / 50

The local zoning rules state that the construction of new homes requires a 25 foot setback. Larry's lot size will not allow for this much of a setback without an undue hardship on Larry. Larry will like request a/an:

37 / 50

Karla owns a lot that is specified as part of a larger tract. What is this called?

38 / 50

John's contract with Gregory states that if any term of the contract is held to be ineffective or invalid, the remaining contract terms should nevertheless be given full force and effect. This contract term is called a:

39 / 50

Patricia's loan requires periodic payments of principal and interest, however the loan will not be fully amortized by the end of the loan. The final, larger payment that Patricia will owe is known as a/an

40 / 50

A real estate broker who represents both the seller and the buyer in a real estate transaction:

41 / 50

A building has 11 office suites generating annual potential rent of $10,000 each. The vacancy rate of the building is 8% and annual expenses are $45,000. What is the net operating income?

 

42 / 50

Emma, the seller, bought and paid for a two-year insurance policy on January 12, 2021 for $1732. If the closing will take place April 14, 2021, and the buyer is assuming the policy, what credit is due to Emma? Use a 365-day calendar.

43 / 50

In the context of a real estate appraisal, what is depreciation?

44 / 50

Virginia's family has owned and operated a corner store since 1974. When they built the store, it was in an area where the zoning allowed for such use. Since then, the area has been rezoned to now be residential zoning. Virginia is still allowed to operate the store. This is an example of:

45 / 50

An owner lists a property for sale with a broker. At what price must the property be sold to net the owner $37,000 after paying a 5% commission and satisfying the existing $ 38,000 mortgage?

46 / 50

Gail determines the value of her property using two different cap rates. First, she uses a 7 % cap rate. Next, she figures a second value for the property using a 4% cap rate. Will the value of the property using the lower cap rate be higher or lower than the first value?

47 / 50

A loan under which the mortgage payments pay all of the interest due but not enough of the principal to fully pay off the loan at the end of the loan term is called:

48 / 50

Sam is an appraiser who has decided to use the reproduction cost in his report. For which property would he likely include this cost

49 / 50

The transfer of rights under a contract without the release from obligation is known as:

50 / 50

Frank is a broker who refuses to cooperate with a few other brokers in his town because of race. This is prohibited by?

 

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