WorksheetsSalesperson National exam 2 worksheet
Total questions: 80
Worksheet time: 40mins
Which of the following would not terminate an easement?
Merger
Acquiring the adjacent property
Prescription
Abandonment
Which of the following would not be an example of police power?
Zoning
Building codes
Deed restrictions
Regulation of coastal properties, floodplains, and wetlands
In discussing property taxes, which of the following statements would be false?
Property taxes are an automatic lien on real property
Property taxes are a general lien
Property taxes are paid first at foreclosure
Property taxes are based on the assessed value and the tax rate
John owns a bar and restaurant on the corner of Broad St. The neighborhood is rezoned to category R-1 (Residential Single-Family only). What does John have to do to keep his business at that location?
Apply for a non-conforming use permit
Nothing
Apply for a variance
John cannot keep his business at that location
The government will take real property under the right of escheat when:
property is abandoned
a property owner dies without a will
a property owner has defaulted on ad valorem taxes
the property owner has violated local zoning laws
The buyer's agent is working with a couple who have decided on a particular property. They are concerned about the boundaries as it appears the fence from a neighboring property encroaches. The buyer's agent should:
check the listing to determine if there is an encroachment
talk to the listing agent to determine if there is an encroachment
contact the sellers to ask if they are aware of any encroachment
recommend that the buyers get a survey
A developer owns 300 acres of land and plans to build a new subdivision. The surveyor has recorded the plat. The developer will sell individual parcels of land to custom builders. What type of legal description will most likely be used for these transactions?
Lot and block description
Metes and bounds description
Government Survey System
Rectangular Survey System
A property is surrounded by a wooden fence. The owner removes the fence and now has a pile of lumber in the yard. This action is best described as:
annexation
severance
destruction of an improvement
sufferance
A property has an easement appurtenant. Which of the following statements about this is true?
The easement belongs to a person or corporation
The easement does not go with the land
The easement crosses over the dominant estate
The easement benefits the dominant estate
A court order directing the county sheriff to seize and sell property of a debtor to satisfy a lien is:
An injunction
A writ of execution
A lis pendens
A judgment
Mark and Robert are brothers. They inherited the family farm as joint tenants upon the death of their father. Mark and Robert have agreed to partition, and Robert has sold his interest in the farm to their cousin Carl. What type of ownership do Mark and Carl have?
Tenancy by the entirety
Tenancy at will
Tenancy in severalty
Tenancy in common
Jane and Anna are joint tenants in an investment property. One wants to sell, the other does not. How can this be settled?
Partition
Accession
Rescission
Defeasance
A seller has sold his property but will continue to occupy the property after the sale. This is called:
lease with an option to buy
lease purchase agreement
leaseback
right of first refusal
Which of the following statements about foreclosure is false?
Notice must be received by the borrower 21 days before the sale
Notice must be mailed to the borrower 21 days before the foreclosure sale
Notice must be posted at the door of the county courthouse
Notice must be filed in the county clerk's office
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 three-year lease on office space would be terminated by:
Death of the landlord
Death of the tenant
Mutual rescission
Sale of the property
Constructive eviction is a result of:
actions of the tenants
pest infestation
the presence of noisy neighbors
actions or inactions of the landlord
A residential single-family home neighborhood was never fully built out. The developer has sold a tract of land in the middle of the subdivision to a group of investors who plan to build an industrial park on the land. The result of this will be many new jobs for the area. Based on appraisal principles what will happen to the value of the homes in the immediate vicinity of the industrial park?
The industrial park will not affect the value of the homes
The value of the homes will increase
The value of the homes will decrease
Appraisal principles do not address this type of situation or construction
A house has an unpopular floorplan. This is an example of:
Physical deterioration
Economic obsolescence
Functional obsolescence
Regression
A house is in a subdivision that is six miles from the nearest elementary school. A new school will be opening in the subdivision for the coming school year. Listing agents in the area have started to raise list prices on homes in the neighborhood based on this fact. Which principle of appraisal are the agents applying?
Anticipation
Change
Substitution
Highest and best use
A license holder has been asked to prepare a CMA on a single-family home for a prospective client. Which of the following facts will be most important to the license holder when choosing comparables?
The assessed value of the comparable property
The total value of all liens on the comparable property
The depreciated value of the comparable property
The date of sale of the comparable property
An appraiser has been asked to value a single-family home. The home has two bathrooms and a fireplace. He has found two comparable properties in the neighborhood. The first comparable has 2-1/2 bathrooms and a fireplace and sold for $180,000. The second has two bathrooms and no fireplace and sold for $175,000. The appraiser has determined that a ½ bath is worth $2,000 and a fireplace is worth $3,000. What is the appraised value of the subject property?
$178,000
$175,000
$179,000
$180,000
A property is listed for $399,500 in a hot seller's market. The contract sale price $415,000. The appraiser values the property at $405,000. What is the market value of this property?
$399,500 — the list price
$405,000 — the appraised value
$415,000 — the contract price
$406,500 — an average of the list price, appraised value, and contract price
The words demand, utility, scarcity and transferability represent:
principles of appraisal
characteristics of appraisal
characteristics of value
approaches to appraisal
Which of the following could a real estate license holder provide?
An opinion of value
A market analysis
An appraised value
Assessed value
FIRREA is a federal law requiring the use of licensed or certified appraisers in certain federally related transactions. Where does an appraiser obtain a license or certification?
Appraiser licensing and certification is done at the state level
Appraiser licensing and certification is done through USPAP
Appraiser licensing is done at the federal level
Appraiser licensing and certification is provided by private and public schools and colleges.
An appraisal tool with a yearly component in the calculation is:
the cost approach
the GRM
the GIM
the income approach
An agent has been contacted to list a unique property. Which of the following would be most likely to help the agent to value this property?
A cost approach appraisal
A CMA
A BPO
A GIM
A broker has entered into an agency relationship by securing a listing on a seller's property. The broker must:
Arrange financing for qualified buyers
Manage the listed property
Account for any funds received in connection with the property
Accept any offer for at least list price
A residential property has been listed under an exclusive right to sell listing agreement with ABC Realty. The sellers have confided to the listing broker that they would like a quick sale as they are in the process of getting a divorce. The listing broker tells a buyer-customer to put in a low offer because the sellers are anxious to sell. The buyer offers 15% below list price and the sellers accept the offer. What is true?
The broker has violated the confidentiality of the seller, but since the sellers accepted the offer, the broker's actions are not considered unethical or improper
The broker has violated his agency relationship with the seller
Encouraging bidding is an effective marketing technique
The broker's actions were in the sellers' best interests as they resulted in a quick sale
The law requiring that real estate contracts be in writing to be enforceable is:
The Statute of Frauds
The Statute of Limitations
The Law of Agency
The Sherman Anti-Trust Act
When does an offer to purchase real property become a sales contract?
When it is signed by the buyer
When it is signed, and acceptance is communicated
When it is signed by the seller
When the last party signs
Two brothers have inherited the family farm. The brothers are 19 and 16 years old. The 19-year-old does not want the property and deeds his share to the 16-year-old. The 16-year-old sells the property. At this point the sales contract is:
void
voidable due to incapacity
terminated
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 chosen?
Liquidated damages
Partial performance
Suit for specific performance
Money damages
A listing agreement is:
a bilateral contract
terminated by the death of the listing agent
an employment contract
a general agency agreement
At what age is an individual considered to have contractual ability?
25
21
18
19
What real estate contract is an exception to the Statute of Frauds?
A lease for one year or less
An option contract
A listing contract
A buyer representation agreement
A sales license holder has negotiated a listing agreement with a seller. This agreement establishes an agency relationship between:
the broker and the seller
the seller and any prospective buyers
the seller and the actual buyer
the seller and the sales license holder
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 broker plans to sue for a commission. What is necessary for the broker to be able to win that suit?
The broker must be a realtor©
The broker must have a written listing agreement
The broker must have an office in the same community as the property in question
The broker must be able to prove he was the procuring cause of sale
A written contract where one party can rescind is best described as:
void
voidable
unenforceable
illegal
A builder and a buyer have negotiated a contract for a new home. The builder has added a clause into the contract stating that he will pay the buyer $250 for every day that he is late in delivering the completed project. The $250 per day is an example of:
liquidated damages
specific performance
compensatory damages
punitive damages
What type of contract falls into the "If.......Then......." format?
Implied
Express
Unilateral
Bilateral
Which of the following is NOT a requirement of a valid contract?
Legal purpose
In writing
Offer and acceptance
Competent parties
When should a license holder advise a client to have a contract examined by an attorney?
Before a client signs a document he/she does not understand
At first substantive dialogue with a client
Prior to closing on a property
Never, as it is a waste of time and money and that is not in the client's best interest
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
Which of the following situations or conditions regarding a property should never be disclosed?
Murder on the property
The property is alleged to be haunted
A previous owner died from HIV/Aids
A structural problem on the property resulted in a death on the property
A sales license holder has worked in residential real estate for five years. He has decided to move to industrial sales. He should:
Pursue industrial listings and learn from experience
Advertise himself as an industrial broker to obtain clients
Visit some industrial properties and provide the property owners with his business card
Join a firm with a broker who specializes in industrial property and work with that broker to learn the business and develop competency
A buyer has had inspections on property and is not pleased with some of the information. He has terminated his contract to buy. His right to do so suggests that his contract had:
a due diligence clause
a substitution clause
a default clause
an alienation clause
Which of the following is NOT a penalty for violation of the Federal Fair Housing Act?
Fines
Up to one year in jail
Injunctions
Assessment of attorney fees
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. As long as the services of a broker are not involved and she does not discriminate in her advertising, she can discriminate for any reason except:
Color/Race
Age
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 must restore it if structural changes he made might impair the rights of future tenants
An apartment complex is advertising for new tenants. Which of the following statements in advertising would violate Fair Housing Laws?
No drugs
No students
No alcohol
No alcoholics
Persuading a property owner to sell by stating that minorities are moving into the area is called:
Steering
Panic peddling
Channeling
Marketing
John owns a residential rental property. He has leased an apartment to a visually impaired tenant who has a guide dog. John's usual lease agreement has a "no pets policy" clause. What is true in this situation?
John may enforce the "no pets" policy because a guide dog is considered a pet
John may require the tenant to remove the guide dog or terminate the lease
John must allow the tenant to keep the guide dog, however, the tenant will be liable if the dog damages the property
John can allow the guide dog but may charge an additional monthly pet rent
A sales license holder is working with a minority couple to find a home for them. The license holder is only showing the buyers homes in minority neighborhoods. The license holder is guilty of:
Target marketing
Blockbusting
Panic peddling
Steering
Why is commingling illegal?
To protect the broker from claims by creditors of the clients
To protect clients' funds from claims by creditors of the broker
Due to the difficulty of maintaining accurate records of clients' funds
To prevent a broker from earning interest on client funds
A broker has placed his own funds with client funds in his trust account. He has then used those funds to pay his office rent. The broker is guilty of:
commingling
conversion
subversion
misrepresentation
A property is found to have asbestos on site. What is true?
Asbestos must be remediated by the seller
Asbestos must be removed by the seller
Encapsulation of the asbestos containing materials can be used to solve the problem
Property must be tented to remove asbestos safely
Many states require a seller's disclosure of property condition. Which statement about a seller's disclosure is FALSE?
A broker is responsible for discovering and disclosing all problems in areas accessible for visual inspection
A broker's role is to encourage honesty and full disclosure by the seller
A broker is not liable for hidden defects not disclosed by the seller
Both the broker and the seller are responsible for the accuracy of the disclosure form.
Which of the following statements about radon is false?
Radon is colorless and odorless
HUD does not require radon testing for FHA loans
Radon is only harmful to individuals who smoke or have lung disease
Radon enters homes through their foundations
A license holder is showing a property with a pond. He notices iridescence on the surface of the pond and is concerned about the possible causes. What should the license holder do?
Advise the buyer to look for another property
Mention his concerns about the pond and tell the buyer to seek expert advice
Recommend that the buyer have inspections on the property, but not mention his concerns
Ignore the issue, because he does not know for sure if it is a problem and he does not want to be sued by the seller
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
Homeowner's insurance will NOT protect property from:
flood
fire
vandalism
storms
Gently used water that could be recycled but should not be used for human consumption is called:
whitewater
blackwater
greywater
clear water
Which of the following underground storage tanks is NOT exempt from federal UST rules?
Tanks storing heating oil used on the premises
Tanks on or above the ground
Septic tanks for collecting storm water and waste-water
Farm and residential tanks with a capacity greater than 1100 gallons
A sales license holder has advertised a property. Her ad states that the property is in a family-oriented neighborhood and can be purchased for a month. What is wrong with this advertisement?
It violates Federal Fair Housing laws
It violates Federal Fair Housing laws and Truth in Lending
It violates Truth in Lending and the Equal Credit Opportunity Act
It violates the Equal Credit Opportunity Act and the Consumer Credit Protection Act
A borrower is aware that interest rates are going down soon. He wants to purchase property now and be able to take advantage of the lower rates in the future. What type of loan should he secure?
A term loan
A budget loan
An ARM
A fixed rate loan
Which of the following statements about a conforming loan is FALSE?
It is a standardized conventional loan
It is not eligible for sale in the secondary market
It is written on uniform documents that meet the purchase requirements of Fannie Mae and Freddie Mac
Both the loan amount and borrower characteristics are considered in determining if a loan is conforming or not
According to the Equal Credit Opportunity Act, a lender cannot deny credit if the borrower's sole source of income is:
Alimony
Child support
A result of participation in public assistance programs
A pension plan
In what document would you find an unconditional 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
To qualify, a veteran must have 181 days of active duty and be honorably discharged
Which of the following would be least likely to have a negative impact on a person's credit rating?
Short sale
Foreclosure
Assumption subject to
Straight assumption
A commercial property has potential gross rents of $20,000 per month and an occupancy rate of 80%. The expenses per year are $60,000 and the market value is $1,100,000. What is the owner's rate of return?
8%
10%
12%
14%
A sales agent has negotiated a listing with a commission rate of 5.5% with 3% going to the selling broker and 2.5% going to the listing broker. The property sells for $365,000. The listing sales agent receives 60% of her broker's commission. How much does the listing sales agent receive?
$9,125
$10,950
$6,570
$5,475
A property was purchased for $200,000 with an 80% loan-to-value purchase mortgage. The owner has paid off $53,000 and is now selling the property for $225,000. What is the seller's equity?
$78,000
$47,000
$118,000
$88,000
A homebuyer plans to purchase a home using a $200,000 loan with a loan factor of $5.30. The tax and insurance payment on the property is $900 per month. What is the minimum monthly income the buyer needs to qualify for the loan if lenders are qualifying at 28%?
$7,500
$7,000
$8,000
$7,750
A commercial property measures 150' wide x 165' long. It is being sold for $10 per sq. ft. with a lot premium of $100 per front foot. What is the price of the property?
$262,500
$247,500
$15,000
$150,000
A home was purchased for $300,000 in a neighborhood where homes have been appreciating 3% a year for the past 4 years. Using compound appreciation, what is the current value of the property? (Round your answer to the nearest dollar amount.
$309,000
$336,000
$337,653
$327,523
An apartment complex has 12 units that lease for $2400 a month each. Last year one unit was vacant for 8 months. Two units were each vacant for 3 months. One unit was vacant for 4 months. Eight units were fully occupied all year. What is the vacancy rate for this complex?
8%
12.50%
10%
14%
