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WorksheetsNational Portion Mock Test 2
Total questions: 99
Worksheet time: 50mins
The reduction in value from everyday wear and use is known as:
FUNCTIONAL OBSOLESCENCE
EXTERIOR DETERIORATION
PHYSICAL DETERIORATION
ECONOMIC OBSOLESCENCE
The illegal practice by a real estate agent of blending personal finances with client funds is called:
QUIET TITLE ACTION
COMMINGLING
CONVERSION
ESCHEAT
A document detailing a company's financial performance, including earnings and expenditures over a specific period, is:
REVENUE REPORT
BALANCE SHEET
PROFIT AND LOSS STATEMENT
NET DIFFERENTIAL STATEMENT
Rights concerning the use of flowing water from rivers or streams are:
LITTORAL RIGHTS
RIPARIAN RIGHTS
DUE PROCESS
BUNDLE OF RIGHTS
Fixtures within a business premise, considered personal property, are:
Business lien
Trade fixture
Trade source
Business item
A wall that carries not only its own weight but also the load from other parts of the building is:
Support wall
Hip wall
Load-bearing wall
Foundation wall
Property rights for land adjacent to oceans and lakes are termed:
Avulsion
Riparian
Littoral
Accretion
A type of lease where the tenant covers the rent plus property expenses like taxes, insurance, and maintenance is:
SANDWICH LEASE
NET LEASE
GROSS LEASE
PERCENTAGE LEASE
Value growth in property due to external community or area developments rather than direct improvements to the property itself is called:
WAIVER
VALUE
YIELD
UNEARDED INCREMENT
A provision that allows a later mortgage to become more important than an existing one is:
Open-end clause
Acceleration clause
Release clause
Subordination clause
Under the Federal Truth-in-Lending Law, credit cost on certain loans are expressed as:
A. A monthly rate
B. An annual percentage rate
C. The highest possible rate
D. The lowest possible rate
A mortgage requiring $875.70 monthly for 20 years with a large final payment is identified as:
Accelerated
Variable
Balloon
Wraparound
The primary purpose of the FHA is to:
Guarantee qualified borrowers against default
Create a secondary market for mortgages
Provide insurance for home loans made by approved lenders
Insure all home equity loans for qualified borrowers
Denying a Savings & Loan application from Mr. and Mrs. Sparks would breach the Federal Fair Housing Act if based on:
Insufficient income
Age
Minority background
Excessive borrowing history
Jones has a mortgage payment plan that allows him to pay less than the real amount required to pay off the debt and interest. He is at risk for:
Shared equity
Scaled payments
Negative amortization
Mortgage modification
The mortgage clause allowing the lender to demand full repayment upon default is termed:
An acceleration clause
Legal action clause
Loss clause
Step-up clause
A mortgage with steady payments not covering the full balance, resulting in a remaining sum, refers to:
Final settlement payment
Quick repayment
Escalation payment
Balloon payment
What is a Purchase Money Mortgage?
A release of the primary mortgage
Financing on bought personal property
A mortgage given from buyer to seller to secure the purchase price
Part of a payment plan sale
The Federal Reserve Board raises cash reserve requirements to:
Market securities
Stimulate borrowing
Increase taxes
Decrease loan activity
Which of the following types of loans were most likely obtained by buyers who bought a home for $142,500 and received a loan for 100% of the purchase price?
VA-guaranteed
FHA-insured
Wraparound
Conventional
All the following are required in an exclusive listing contract, except:
The final contract price
All relevant parties' signatures
Detailed property description
A defined termination date
A verbal agreement to buy a house, accompanied by a $500 earnest money check, is considered:
Finalized
Unenforceable
Invalid
Legally binding
The legal action that forces a seller to complete a sale is known as:
Specific performance
Property repossession
Execution order
Eviction order
Essentially, a listing agreement is a/an:
Employment contract
Purchase agreement
One-sided contract
Selling option
All listing types except one require the broker to directly facilitate the sale to earn a commission. The exception is:
A. A non-exclusive listing
B. An exclusive-right-to-sell listing
C. There are no exceptions; all require direct facilitation
D. An exclusive agency listing
Which of the following is not essential for creating a contract?
A. Proposal
B. Exchange of value
C. Performance
D. Agreement
Each party is obliged to a certain date for performance if a real estate sales contract includes:
A due-on-sale requirement
A provision that time is of the essence
A celebratory acknowledgment
A deadline for mortgage approval
If a buyer retracts an offer before the seller accepts it:
The broker can demand the buyer complete the purchase
The seller can successfully demand contract completion
The seller keeps half the earnest money deposit
The buyer is entitled to a refund of the earnest money deposit
The legal principle requiring real estate contracts to be in writing is the:
Statute of frauds
Time-limit statute
Spoken evidence regulation
Inheritance and property law
A verbal agreement is made by a tenant to rent a home for six months. The renter informs the owner that he would be moving out the next month because he has discovered a more appealing apartment. The agreement is:
Void
Invalid due to lack of writing
Not legally binding
Enforceable
Once a purchase contract is signed by both Joe (buyer) and Stephen (seller), what type of title interest does Joe have?
Revocable interest
Title insurance interest
Legal title interest
Equitable
When an owner gives a life estate to her grandson, specifying that it passes to her son-in-law upon her death, the son-in-law holds:
A. A statutory life estate
B. Remainder interest
C. An interest in reverting
D. A fixed-term estate
A fee simple estate is best described as:
A fixed-term estate
Unrestricted ownership
The most interest that one can hold in land
A lifetime ownership
A vacant lot near a hospital was owned in fee simple. She chose to make the lot accessible to the hospital. Her attorney drafted a deed transferring title of the lot to the hospital 'so long as it is used for medical purposes.' After the gift is complete, the hospital will own:
A. A fee simple defeasible estate
B. A fixed-term lease
C. A perpetual care estate
D. A renewable lease
A municipality's regulatory powers do not extend to:
Restrictive covenants
Minimum parcel sizes
Construction types
Building heights
Oscar, Andrew, and Douglas are co-tenants who jointly own a piece of property. Douglas tells his friend Joe that he's interested. Following the transfer, Oscar and Andrew:
Jointly include Joe
Retain joint tenancy without Douglas
Remain joint tenants owning a two-thirds interest
Share ownership equally with Joe
A specific, involuntary lien refers to:
Federal income tax obligations
A real estate property tax lien
Estate taxes due
Court-awarded debt claims
Oscar and Susan reside next door. Oscar is told by Susan that he can keep his camper in her yard until she needs the space, which should be a few weeks. Oscar was not charged rent by Susan for using her yard. Oscar has received what from Susan?
License
Required access right
Land use right
Temporary use permission
Which item is not traditionally considered an appurtenance?
A built-in swimming facility
Trade Fixture
A right-of-way agreement
Natural features like trees
If one has a permanent right to access their home through another's property, their property is
Individually burdened
A dominant tenement
Temporarily permitted
Burdened by the easement
When evaluating a/an ________, the income capitalization method to value would be the most crucial.
office building
vacant residential lot
condominium
single-family residence
When there is a decline in supply and no change in demand,
demand tends to decline
price tends to decline
price tends to rise
demand tends to rise
Susan recently found out that the city wants to demolish three houses across the street and replace them with a multi-unit apartment complex. She wishes to get rid of her house quickly to avoid a drop in value. Here's an illustration of:
Anticipation
Participation
Conformance
Rivalry
The appraiser uses the following when applying the cost approach to value:
Prices paid for comparable local buildings
The building's estimated current replacement cost
Evaluated building value
The building's initial cost to the owner
A home with four bedrooms and a single-car garage would be an example of:
Functional obsolescence
Financial obsolescence
Environmental obsolescence
Physical degradation
Which item is not traditionally considered an appurtenance?
A built-in swimming facility
Trade fixture
A right-of-way agreement
Natural features like trees
If one has a permanent right to access their home through another's property, their property is
Individually burdened
A dominant tenement
Temporarily permitted
Burdened by the easement
When evaluating a/an ________, the income capitalization method to value would be the most crucial.
office building
vacant residential lot
condominium
single-family residence
When there is a decline in supply and no change in demand,
demand tends to decline
price tends to decline
price tends to rise
demand tends to rise
Susan recently found out that the city wants to demolish three houses across the street and replace them with a multi-unit apartment complex. She wishes to get rid of her house quickly to avoid a drop in value. Here's an illustration of:
Anticipation
Participation
Conformance
Rivalry
The appraiser uses the following when applying the cost approach to value:
Prices paid for comparable local buildings
The building's estimated current replacement cost
Evaluated building value
The building's initial cost to the owner
A home with four bedrooms and a single-car garage would be an example of:
Functional obsolescence
Financial obsolescence
Environmental obsolescence
Physical degradation
To alienate the title of property, one:
Conveys title
Clouds the title
Records a homestead
Encumbers the title
If Joe dies without leaving a will, it is claimed to be:
Intestate
A Testator
In Probate
A Testate
In real estate, 'tax shelter' refers to:
Income tax
Net earnings from investments
Taxes levied on real estate
Principal amounts paid on loans
What happens to a lease under an 'estate for years' agreement when the leased real estate is sold?
The lease can be ended with appropriate notice
The lease concludes upon the property's sale
The lease remains valid but cannot be enforced
It binds the new owner
Which of the following is not typically taxable?
Patents and trademarks
Watercraft
Earned income
Residential property
In a sale/leaseback transaction for a commercial building, the buyer's least concern is:
The building's physical state
The depreciated book value of the building
The property's location within the broader community
The financial credibility of the seller
Once a judgment has been properly recorded, those who buy the property later or those unaware of the judgment have received:
Indirect notice
Constructive notice
Direct legal notice
First-hand notice
A bill of sale is utilized to transfer ownership of:
Fixtures
Personal property
Real property
Appurtenances
When a market experiences a significant lack of homes, leading to increased construction, this scenario illustrates:
Supply surpassing demand
Demand surpassing the market value
Consumer confidence
The market moving toward a state of equilibrium
In a burgeoning town where all prime vacant lots are already developed, the expectation for the prices of existing homes in that premium area is that they:
Will stabilize due to inevitable population stabilization
Are likely to rise
Will decrease due to the impossibility of further construction
Cannot be predicted with any consistency
The four core factors determining the value of a product include:
Endurance, practicality, transferability, and geographic setting
Desire, utility, scarcity, and purchasing power
Public perception, recognition, marketing efforts, and discounts
Exchangeability, cost factors, accessibility, and distinctiveness
A decrease in vacancies within the real estate sector typically leads to:
Increasing prices
Decreasing prices
Reduced construction activities
Lower rates of property being rented or sold
“Absorption” in the context of real estate market analysis is defined as:
The addition of new space to the market within a certain timeframe
The construction of residential units over a specified period
The total occupied space at any moment
The number of available units that become occupied over a period of time
When a property owner merges two adjacent lots into a single, more valuable entity, this value-increasing strategy is known as:
Assemblage
Natural growth
Enhancement through proximity
Division for increased value
The measurement of a property's gross living area is typically taken:
Excluding the footprint of any structures on the property
From the exterior dimensions of above-grade spaces, omitting open areas
By calculating the total interior living spaces
Excluding basements and attics from the total enclosed spaces
Real estate stands out as an economic good due to:
Its standardized nature
Its diversity
Each property's uniqueness
Its propensity for value appreciation over time
When a market reaches equilibrium, it means that:
A. New competitors will lower the price by entering the market
B. Demand will gradually decrease, reducing prices
C. Unfulfilled demand shifts towards alternative products
D. Supply matches demand, stabilizing prices and values equally
An increase in the price of a product typically indicates that:
A. Demand for the product is falling relative to its supply
B. Demand for the product is increasing in relation to supply of the product
C. There is more of the product available
D. Both the product's demand and supply are rising
After purchasing their home, the Jacksons discovered a leaky roof during rainstorms. The seller had informed Bankers Agency's broker of the issue, but Bankers claims the Jacksons didn't inquire about it. What is the Jacksons' recourse?
They can initiate legal action against the broker for non-disclosure
They have no recourse as the inspection should have identified the leak
They cannot pursue legal action against the broker according to license law
They have the option to sue the seller under license law provisions
The typical lease format for an apartment in a residential complex is:
A net lease
A lease based on a percentage of sales
A gross lease
A lease concerning the land itself
Redlining is defined as:
Denying loans based strictly on sound economic reasons
The refusal to offer loans or insurance in certain areas, not based on applicants' financial reliability
The absence of financial institutions in neighborhoods solely due to non-economic considerations
Invalidating mortgage documents through selective editing
What is RESPA?
A law aimed at preventing discrimination
A set of regulations for accommodating disabilities
A standard for closing procedures
A program designed to assist low-income housing
In which scenario should an agent NOT suggest hiring an external inspector?
When noticing a toilet with slow drainage
When a door hinge is detached
Observing sawdust in kitchen cabinets
Detecting a gas smell in the basement
When presenting offers to sellers, agents should always be:
Suspicious and confrontational
Enthusiastic and straightforward
Careful and responsible
Aggressive and combative
Which action could lead to a salesperson's license being revoked by the real estate commission?
Signing an exclusive listing agreement with a seller
Showing a property listed by an unaffiliated broker
Attempting to act on behalf of a buyer
Depositing a buyer's earnest money into a personal account
What does it mean if a licensee claims a property near a large park is 'in the best part of town'?
Puffing
Overstating
Misrepresenting
Committing fraud
How long does an individual have to file a Fair Housing complaint with the Department of Housing and Urban Development after an alleged violation?
6 months
2 years
1 year
5 years
The permission to perform specific acts on another's land without holding any estate therein is defined as:
A license
An option
An encroachment
An easement
The trust and obligation the broker holds as an agent for the client is best described as:
A trustor bond
A trustee association
A confidential connection
A fiduciary relationship
When presenting offers to sellers, agents should always be:
Suspicious and confrontational
Enthusiastic and straightforward
Careful and responsible
Aggressive and combative
Which action could lead to a salesperson's license being revoked by the real estate commission?
Signing an exclusive listing agreement with a seller
Showing a property listed by an unaffiliated broker
Attempting to act on behalf of a buyer
Depositing a buyer's earnest money into a personal account
What does it mean if a licensee claims a property near a large park is "in the best part of town"?
Puffing
Overstating
Misrepresenting
Committing fraud
How long does an individual have to file a Fair Housing complaint with the Department of Housing and Urban Development after an alleged violation?
6 months
2 years
1 year
5 years
The permission to perform specific acts on another's land without holding any estate therein is defined as:
A. A license
B. An option
C. An encroachment
D. An easement
The trust and obligation the broker holds as an agent for the client is best described as:
A trustor bond
A trustee association
A confidential connection
A fiduciary relationship
Upon issuing a new counter-offer:
The offer terms remain unchanged
The counter-offer becomes the counter-offeree
None of the other statements are accurate
The offeror may unilaterally alter the offer’s conditions
An agency relationship cannot be established through:
A verbal agreement
A documented agreement
An implied agreement
A voluntary offer by the agent
What is the annual interest rate if 150ispaidininterestevery8monthsona 2,500 straight note?
7%
2%
9%
11%
An individual who earns $225 per month on a money market savings account that yields 7 1/2% per year, has invested which amount?
$42,000
$36,000
$48,000
$18,000
If a $350,000 investment yields a 12% yearly return, how much income does it generate?
$42,000
$29,200
$42,800
$30,450
What is the annual tax on a 20,000propertyassessedat 4.00 per $100?
$800
$500
$450
$225
What is the estimated worth of a building with a capitalization rate of 10% and an annual income of $20,000?
$400,000
$200,000
$222,200
$22,400
Selwyn owned a straight note with a yearly interest rate of 8.4 percent. In five years, he earned $5,460 in interest. What was the principle amount on the note?
$13,000
$12,092
$10,500
$5,000
A property sells for $495,000, yielding a 10% profit for the owner. What was the property's original cost?
$400,000
$300,000
$450,000
$500,000
$140 is 3.5% of what amount?
$4,000
$3,500
$2,000
$5,000
Find the capitalization rate for a building worth 430,000andrentingfor 1,500 per month.
10%
5%
2%
4%
An guy borrowed 7,000onastraightnotewith9 945, what was the loan's term?
6 months
10 months
12 months
18 months
