General Practice Test

General Practice Test

1 / 50

The Federal Reserve Board has noticed a rise in inflation. In the past they have chosen to limit, to some degree, the expansion of currency by:

2 / 50

When a person dies testate, his real property:

3 / 50

Kathy is a broker who has been showing her client apartment buildings. He is interested in investing in these buildings and has been touring them with Kathy over the last 6 months. He has located one he would like to write an offer on, however there is not a pre-printed form that will fit her needs. What should she do:

4 / 50

Linda is happy with her inspection results and would like to remove the contingency in the contract. Her agent would prepare a/an ________ for both parties in the contract to sign removing the contingency.

5 / 50

If a broker is representing a buyer, which of these fiduciary duties would they owe the buyer?

6 / 50

Frank, a buyer, is frustrated to learn that  Amber, a seller, is backing out of the purchase and sale contract they have that was set to close next week. What can Frank likely not do?

7 / 50

Liam believes that his neighbor's fence is encroaching on his property. What should he order to determine if this is the case?

8 / 50

The document that sets forth all the terms and conditions under which a purchaser offers to purchase property. This offer, when accepted by the seller, becomes a binding agreement of purchase and sale once all conditions have been removed. What is this called?

9 / 50

William is employed as the broker for David's property. Since William is employed by and has the legal authority to act on behalf of David, he is called the:

10 / 50

A CMA (competitive market analysis) is:

11 / 50

Katie hated to waste her time running out to have clients sign listing agreement extensions when her exclusive right to sell listings expired. She decided to have new listing contracts printed that continued on indefinitely until the listing sold. Is this allowed?

12 / 50

Harold's House of Realty, a popular brokerage in the city, runs an ad on a home stating that it is for sale for $220,000. This is a very low price for the market area. Whenever they meet a potential buyer at the property, however, the agents from the brokerage let the buyer know the "price has just increased to $275,000 per the homeowner." This is an illegal practice known as

13 / 50

An appraiser has been asked to appraise a unique and unusual property. In his report, he utilizes the following formula: replacement cost - depreciation + land value= value. Which method of appraisal is he using?

14 / 50

A real property transfer fee of four mills on the sale of real estate at a total consideration of $52,000 equals:

15 / 50

When a new shopping mall went up near a residential neighborhood, the shopping mall developer was required to leave greenspace in the area to transition from the residential to the commercial area. This open space is known as a/an

16 / 50

The city of Dayton has enacted land-use controls. This is an example of:

17 / 50

Henry has an agreement with his broker in which Henry is paid one-fourth of all commissions earned as a result of sales he completes. If Henry sells a property for $850,000 with a 6% commission rate, then Henry’s share of the commission is:

18 / 50

Carolyn, a broker, listed a property for $425,000 at a 7% commission rate. If the eventual sales price was $400,000, her commission was _______ less than it would have been if the property had sold at the listed price.

19 / 50

A poisonous gas given off as part of combustion is known as:

20 / 50

In most cases, when is a broker entitled to commission?

 

21 / 50

An appraiser noted a negative effect on the value of a home, due to the Superfund site located next door. This is referred to as:

22 / 50

Joey has a property that costs more to maintain than it generates in profits for him. He has decided that this building has no remaining:

23 / 50

A deed that contains the covenant in which the grantor guarantees that he or she will forever be responsible for warranting title and will defend the title and possession is a:

 

24 / 50

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

25 / 50

Jan lives in a cooperative. Which of the following are characteristics of a cooperative?

 

26 / 50

The agent of an agent is known as a

 

27 / 50

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

28 / 50

An instrument that creates a voluntary lien on real estate to secure repayment of a debt is a:

29 / 50

Conventional loans are made from:

30 / 50

The promise to pay used in a mortgage transaction is the:

31 / 50

Alan owns a property with riparian rights, but no prior appropriation rights. Which of these could he not do?

32 / 50

Emily, a broker, sold her client’s house for $3,095,500. If her commission rate was 5.75%, her commission was:

33 / 50

In a dramatic display of salesmanship. Caroline threw open the curtains in her new listings and declared to open house visitors, “This property has the most beautiful view in this entire city!"  What is this called?

34 / 50

Jean's broker told her the ad she wrote for her new listing included a triggering term. Reviewing the following ad text, what is the triggering term? "Beautiful three-bedroom home in the Meadowbrook Subdivision in Laurel Springs. Pay only $700 per month with no down payment and use either an FHA or VA mortgage for this easy monthly payment home! Call Jean at ABC Realty - (212) 555-1212"

 

35 / 50

Theresa, a property owner, has a contract in which she has granted Bill the right to purchase the property for three months. This is called a/an

36 / 50

Elizabeth has a lease that has a definite expiration date. It ends on December 21st. This is known as a/an:

 

 

37 / 50

A real property transfer fee of four mills on the sale of real estate at a total consideration of $79,500 equals:

 

38 / 50

A comparative market analysis prepared by a broker would likely not consider:

39 / 50

Why was the Real Estate Settlement Procedures Act (RESPA) enacted?

 

40 / 50

Jennifer has found there is a cloud on her deed. If she files a lawsuit to remove the cloud, it is known as a/an:

41 / 50

Marla has taken out an interest only payment loan with a principal amount of $623,000. If her annual interest rate is 5.15 %, how much will she owe in interest in the first year?

42 / 50

Condo communities have both common areas and limited common areas. Which of the following would be an example of a limited common area?

43 / 50

The power of a government to impose restrictions on private rights, including property rights, for the sake of public welfare, health, order, and security. This is known as:

44 / 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?

45 / 50

Bryan was a loner with no known relatives or heirs. He died without a will. If the state eventually takes his real property due to an inability to locate any heirs, what would this be called?

46 / 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:

47 / 50

Eugene has been a lifelong Libertarian and doesn't like the government getting involved in his farming operation. When Eugene was recently advised by the government that a public utility company planned to cross his property with a power line, his response was an emphatic "no". If Eugene refuses to cooperate, the utility company can seek to acquire this right through the use of :

48 / 50

A property sale will close on March 31, 2021; taxes are $5,360 per year and are paid through the first half of 2020. Calculate the seller's share of taxes using a 365-day year.

49 / 50

Jamie is tired of paying rent so she finds an abandoned home near her work and moves in without permission. What is Jamie?

50 / 50

If a loan has a loan to value ratio of 90 percent, an appraised value of $310,000, and a sales price of $315,000, what is the amount of the loan if the LTV was based on the lesser of the appraised value or the sales price

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