WorksheetsSalesperson Nation exam 4 — Worksheet Questions
Total questions: 80
Worksheet time: 40mins
John owns the dominant estate with an easement appurtenant. John sells the property. What happens to the easement?
An easement is terminated by the sale.
It belongs to the buyer.
Its ownership must be negotiated outside the sale.
John retains ownership of the easement.
A commercial tenant's lease will expire at the end of this month. He is currently in the process of removing his display cases from the shop. What is true?
He must leave the fixtures if the owner wants them.
He must negotiate with the owner to take the fixtures.
He can take these trade fixtures as long as he removes them prior to lease end.
He can only take them if he pays for them.
A surveyor has described a property from a point of beginning 200 feet north on Broad St. from the oak tree at the intersection of Main St. and Broad St., then 90° east for 100 ft., then 90° north for 50 ft., then 90° west for 100 ft., then 90° south for 50 feet back to the point of beginning. What type of description is this?
Government Survey System
Metes and Bounds
Monuments
Lot, block, and subdivision plot
Which of the following demonstrates the physical characteristic of indestructibility?
A building has major foundation problems, but it is still standing.
A property is foreclosed on for non-payment of property taxes.
A house is destroyed by natural causes, but the soil remains.
A house is condemned by the city.
Mary, a single woman with no children, owns her own home. She dies intestate. What happens to her property?
the courts will appoint an executor to settle her estate
the courts will appoint an administrator to settle her estate
the executor she chose will settle her estate
her heirs will inherit her property by devise
Which of the following is the best example of an emblement?
Barley
Sugar cane
Rose bushes
An elm tree
Which of the following would not be an example of police power?
Zoning
Building codes
Deed restrictions
Regulation of coastal properties, floodplains, and wetlands
Which of the following would NOT be a characteristic of a PUD?
A greenspace for use by property owners
A non-profit HOA to provide maintenance of the green space
An extra tax on property owners for the maintenance of the green space
Non-conforming use status
Personal property that is installed or attached to real property is best described as:
chattel
a fixture
fixity
situs
Joe received payment from his title insurance company to compensate him for a defect in his title. Subsequently he was awarded a judgment against the seller, and collected the funds from the seller, to compensate him for the same defect. The title company has claimed the right to a refund from Joe. What clause in the title policy allows the title company to make this claim?
Subrogation
Arbitration
Subordination
Defeasance
An agreement allowing a tenant to match or better any purchase offer the landlord receives before the property will be sold to another is called:
a right of first refusal agreement
a lease with an option to buy
an option contract
a rescission agreement
A standard policy of title insurance will not provide protection for:
illegal acts of attorneys
forged deeds
survey or boundary problems
human error in copying and recording
What is the main disadvantage to a lender who chooses to accept deed in lieu of foreclosure?
It takes longer than foreclosure
The lender must accept responsibility for subordinate liens on the property
It is more expensive for the lender than foreclosure
It is more complicated than foreclosure which results in loss of time and money for the lender
A buyer has a signed sales contract and has not yet gone to closing. His interest in the property is called:
equitable title
a statutory estate
a defeasible fee
conditional fee simple
Who must be involved in the negotiation of a short sale?
The buyer's lender, the seller's lender, and an appraiser
The seller's lender and the title company
The buyer, seller, and seller's lender
The seller's lender, the buyer's lender, and the title company
John, Maria and Mark are joint tenants. Their joint tenancy agreement allows for partition if all parties agree. Mark dies. Maria sells her share to Jane, with John's agreement. John and Jane are:
joint tenants
tenants by partition
sole owners
tenants in common
A buyer who wants to be sure that he is getting good title to a property should rely on:
an attorney's opinion of title
a title insurance policy
a general warranty deed
a title commitment based on the abstract of title from the title company
It has been determined that an older home needs to be renovated and updated to meet the needs of modern technology. What type of depreciation would this renovation eliminate?
Physical deterioration
Economic obsolescence
Functional obsolescence
External obsolescence
What do Demand, Utility, Transferability and Scarcity represent?
the elements of a contractual agreement
the characteristics of marketable title
the requirements of adverse possession
the characteristics of value
What does the GIM convey or determine?
Net yield
Value
Rent/month
Operating expense
Which principle of value used by appraisers states that values are maximized when properties have a reasonable degree of similarity?
The principle of conformity
The principle of contribution
The principle of competition
The principle of substitution
A fast food establishment is extremely successful, and the drive-through lanes are always crowded. What principle of appraisal would explain a similar establishment planning to open directly across the highway?
Balance
Change
Competition
Substitution
Which of the following statements about a CMA is true?
A broker can advertise a CMA as an appraisal
A CMA results in a range of value
A broker cannot charge for a CMA
Only a broker can prepare a CMA
An appraiser has valued a residential property. He then observed the neighborhood and noticed many declining-valued properties surrounding the subject. As a result, he deducted $10,000 from the appraisal result. Which principle of appraisal explains this?
Regression
Substitution
Decreasing Returns
Change
What is the step in the appraisal process that determines an exact number rather than a range of value?
Regression
Capitalization
Reconciliation
Reporting the results to the client
Which of the following statements about a BPO is FALSE?
Only a broker can prepare a BPO
A BPO may be used in a short sale instead of an appraisal
A broker usually charges a fee to prepare a BPO
A BPO can be prepared by a sales license holder
The value of a residential property for tax purposes is:
appraised value
mill value
market value
assessed value
An appraiser has been hired to value an office building. What approach will he be most likely to use to determine the value of this investment?
The market approach
The GIM
The income approach
The cost approach
A broker has listed his own property for sale. Which of the following statements is true?
The broker must always disclose this dual role
The broker must disclose his ownership interest if asked
This is called dual agency
The broker cannot list his own property as it creates a conflict of interest
A seller has received and accepted an offer on his property with a closing date of November 15th, time is of the essence. Two days before closing, the seller notifies the buyer that he will be unable to close on the required date but will be able to close 2 days later if the buyer agrees. At that point this contract is:
void
valid but unenforceable
invalid
voidable at the option of the buyer
When does a buyer's offer become a binding contract?
When the buyer signs it
When it is delivered to the seller
When all negotiations are complete and both parties agree
When it is accepted, and the acceptance is communicated
A landlord and tenant negotiate a verbal lease agreement on the phone for an 8-month term. The tenant later decides not to move in. What best describes the lease agreement in this situation?
Valid but unenforceable
Valid and enforceable
Voidable and unenforceable
Void and unenforceable
A buyer has defaulted on a sales contract. The seller has agreed to keep the earnest money deposit as compensation. What remedy has the seller agreed to?
Liquidated damages
Partial performance
Suit for specific performance
Money damages
A listing agent will always:
give advice and opinions to the buyer and the seller
give full disclosure of all facts to both parties
treat both parties with honesty and fairness
support and defend the needs of the customer
A house is listed for $499,000. The seller received an offer for $485,000. He countered at $490,000. He has not had a response to his counteroffer. The listing agent has received a new offer from a second buyer for
$495,000 and presented it to his seller. The seller would like to accept this new offer. What is true?
The seller must wait to hear from the first buyer before he can accept the second offer
The seller can accept the second offer because he has not had a response to his counteroffer
The seller can only accept the second offer as a backup contract
The seller can withdraw his counteroffer to the first buyer and then accept the offer from the second buyer
John has equitable title to the property at 123 Main Street. Which term describes his contract?
Enforceable
Executory
Voidable
Unenforceable
A property owner has a property tax exemption due to a physical disability. The result is a $1500 reduction in the annual property tax bill. The listing license holder failed to notice the exemption on the appraisal district website and therefore has not disclosed this exemption. This failure to disclose a material fact about the property is an example of:
fraud
negligent misrepresentation
puffing
errors and omissions insurance
A landlord and tenant sign a lease agreement and the tenant pays for the first and last month's rent. The landlord learns that the tenant is only 17 years old. Which of the following statements describes this lease?
It is voidable at the option of the tenant because he is a minor
It is voidable at the option of the landlord because the tenant did not disclose his age
It is valid and binding on both parties because the tenant already paid some rent
It is void because there was no real mutual agreement
Which of the following answers best describes the agent's duties to his principal?
Care, obedience, loyalty and confidentiality
Loyalty, consideration, reasonable care and responsibility
Compensation, reimbursement and indemnification
Loyalty, indemnification, accounting and disclosure
Which statement about a 1031 is TRUE?
An investor must own a property for at least 3 years before he can do a 1031
At the time of the 1031, capital gains taxes are deferred
At the time of the 1031, the boot is not taxed
An investor must hold a property for 5 years before he can do a 1031
Which of the following will terminate a sales contract?
death of the seller or buyer
bankruptcy of the seller
death of the broker
death of the listing agent
Which of the following best describes a unilateral contract?
It is unenforceable
It is binding on both parties
Either party can sue for breach of contract
It is in the "if.....then......" format
What type of contract can be described as a contract where one party can rescind?
Void
Voidable
Unenforceable
Invalid
Which is an example of an enforceable bilateral real estate contract?
A written sales contract
A written option contract
A verbal buyer representation agreement
A verbal option contract
A party inherits a property. He wants to sell it quickly, as he wants the cash. He contacts a broker to list the property for $300,000. The broker knows that homes in that neighborhood are selling for $325,000 and more. What should the broker do?
Take a net listing on the property
Buy the property himself as an investment or to resell
Provide the seller with a CMA and encourage the seller to price it correctly
List the property for $300,000 as this is what the seller wants
A property where there has been a murder is referred to as:
undesirable
stigmatized
red-flagged
condemned
A senior apartment complex has more than 80% of the units occupied by someone 55 years old or older. There is a vacant apartment. Can they refuse to lease it to a single mother with a child?
No
Yes
Yes, if they advertise "adults only"
Yes, but only if her income is too low to meet their requirements
Which of the following is an example of illegal commingling?
A buyer deposits money in an escrow account
A broker deposits tenant security checks in an operating account
A property manager puts client rents in an operating account
A landlord deposits rents in the business operating account
A license holder who advertises a listed property as having "the most beautiful view of the city" is probably:
Liable for damages if sued by the buyer
Guilty of fraud
Guilty of misrepresentation
Puffing
A sales agent has just attended a seminar on the benefits of using social media in marketing her client's properties. She is very excited to begin to use all the wonderful ideas that were presented. In order to advertise her client's properties on social media she will need:
written permission from the owner
access to the property owner's Facebook page
access to the owner's Twitter account
verbal permission from the owner
Electronic signatures are the equivalent of handwritten signatures:
If the listing agent is willing to use them
Never
If both the buyer and seller agree to their use
If both the listing broker and selling broker agree to their use
Mary, an unlicensed individual, owns a three-family property. She lives in one unit and rents out the other two. She chooses to discriminate when selecting her tenants. If the services of a broker are not involved and she does not discriminate in her advertising, she can discriminate for any reason except:
Age
Color/Race
Religion
Sex
A physically handicapped tenant has modified an apartment to meet his needs at his own expense. His lease is about to expire, and he plans to move. The landlord wants the apartment restored to its original condition. What is true?
The tenant has no responsibility to restore the apartment
The tenant must restore the apartment at the landlord's expense
The tenant must restore the apartment at his own expense
The tenant only must restore structural changes that might impair the rights of other tenants
A property is advertised as "For Sale by Owner." The seller owns 2 homes. The seller receives several offers and chooses the buyer based on the buyer's national origin. Neither party is represented by a broker. Which of the following is true about violation of the Fair Housing laws?
The seller is in violation of Fair Housing laws because national origin is a protected class
The seller is not in violation of the law because his actions do not involve a broker
The buyer is in violation because he did not hire a broker to represent him
There is no violation because "For Sale by Owner" transactions are exempt from all Fair Housing laws
A seller-client is abandoned by the listing agent of his property. He is very anxious to sell and very upset by this situation. What can the client do?
File for release due to abandonment
Wait for the written agreement to expire
Verbally terminate the contract
Hire a new agent
Which of the following would be considered an operating expense when a property manager draws up the operating budget for the owner?
repainting units for new occupants
depreciation
mortgage loan payments
building an extension on the parking garage
The Exclusive Right to Sell Listing entitles the broker to:
the right to sell without exclusivity
the exclusive right to be the only broker to sell the listing
rights to sell with the right to convey title
exclusive right to a commission no matter who sells the listing
A buyer tells an agent that he wants to purchase a home in a Hispanic neighborhood. What should the agent do?
Tell the buyer that he does not have access to that type of information
Tell the buyer he will check with his broker and get back to the buyer
Tell the buyer it is illegal for the agent to share information or choose a neighborhood based on national origin
Tell the buyer he will Google it and get back to the buyer
Who would inspect an oil and gas lease for compliance with the law?
The EPA
Surveyor
Inspector
Engineer
A buyer's inspection report on a property shows the presence of asbestos on the property. Which of the following statements about asbestos is FALSE?
The asbestos abatement plan outlines the control of asbestos on a property
The owner of the property must remove the asbestos
Methods of abatement include encapsulation
The dust from the removal of asbestos is extremely hazardous
A hazardous substance that was used before 1978 and that is friable is:
asbestos
lead
radon
mold
Gently used water from showers, sinks and tubs is called:
clearwater
blackwater
whitewater
greywater
What department of the government administers CERCLA?
The Department of the Interior
The EPA
The Department of Homeland Security
The Department of Transportation
What statement about radon is true?
A plan to control radon is an abatement plan
Radon has a distinctive odor
Radon is produced by decaying rocks underground
Radon is only harmful to individuals with a compromised immune system
Homeowner's insurance will not protect a property for damage due to:
flooding
fire
vandalism
storms
What law was passed to increase the balance available for cleanup in the Superfund when CERCLA could no longer meet the needs for this?
EIS
SARA
ESA
FEMA
Which of the following statements about Contract for Deed is FALSE?
Contract for deed is not fully executed until the seller delivers the deed to the buyer
Legal title is transferred to the buyer when the agreement is signed
Contract for Deed is also called an installment contract
The buyer is the vendee and the seller is the vendor
Redlining is an illegal practice for:
Brokers
Lawyers
Title companies
Appraisers
In what document would you find the borrower's promise to pay a debt?
The Deed of Trust
The lien
The mortgage
The note
Which of the following statements about VA loans is FALSE?
Certain surviving spouses of veterans are eligible for these loans
Parents of veterans are eligible for VA loans
A non-veteran can assume an existing VA loan
The VA must be notified prior to a foreclosure by the loan servicer on a VA loan
Which of the following transactions would not qualify for VA financing?
Senior apartment complex
Fourplex where one unit will be occupied by the owner
Single family home
a rural home on 10 acres
A property is advertised for sale on the radio. What part of the advertisement involves a trigger term?
the house is in a neighborhood of beautiful homes
the house is close to schools and churches
easy financing is available to qualified buyers
the seller offers an interest rate of only 5% on purchase mortgages
Which clause in a mortgage requires that the loan balance be repaid if the property is sold, or changes owners?
subordination clause
defeasance clause
alienation clause
Using compound depreciation, what would be the value of a $250,000 property at the end of 2 years if depreciation is calculated to be 4% per year?
$230,400
$230,000
$210,000
$150,000
A home is sold for $79,650. The buyer has a 6% down payment. The seller agrees to owner financing with an 83% LTV. There will be a second mortgage on the property. What will be the amount of the 2nd mortgage (rounded to the nearest dollar)?
$4,779
$8,762
$13,541
$15,930
An apartment complex has 8 units. 6 units were each vacant for one-month last year. 1 unit was vacant for 4 months. 1 unit was vacant for 2 months. What was the vacancy rate for the complex?
10%
11%
12.50%
15%
A home sold for $334,880. This price includes a 12% profit. What was the original cost?
$294,694
$299,000
$295,000
$300,000
If a lot measured 140' x 200' and there was a lot premium of $20 per front foot, what premium would be charged?
$2,800
$4,000
$6,800
$3,000
Monthly taxes and insurance on a single-family home are $1200. Lenders are qualifying at 28% with a loan factor of $5.00. What monthly income will buyers need to qualify for a $300,000 loan?
$9,463
$6,493
$9,643
$9,346
A lease expired at the end of March. The tenant is holding over until April 15. At move in the tenant had paid a one month's rent security deposit for $1100. How much of that deposit will be refunded to the tenant.
$950
$587
$1,000
$550
