1.) The interest pre-paid on the closing statement with a new loan on the property by the buyer is
A. Credit to the buyer
B. Credit to the seller
C. Debit to the buyer
D. Debit to the seller
2)On a closing statement, the earnest money paid by the buyer would be which of the following?
A.Debit buyer, credit seller
B.Credit buyer, debit seller
C.Credit buyer only
D.Credit seller only
3)If the buyer is assuming an existing loan on the property, which of the following is prorated at closing?
A.Interest only
B. Principal only
C. Mortgage principal
D. Both interest and principal
4)The sales price of the property will show on the settlement statements as
A)debit seller, credit buyer.
B)debit buyer, credit seller.
C)credit buyer, and seller.
D)debit buyer, and seller.
5.) Who pays to record the deed of trust?
A)Seller
B)Check the contract
C)Buyer
D)Broker
6.) A contract is terminated if?
A. one of the parties decides not to go forward.
B. a third party intervenes.
C. it is impossible for one of the parties to perform.
D. one party assigns his rights to another.
7.) Who will ALWAYS be charged for unpaid taxes for the preceding year?
A)No entry; will be paid from the tax reserve
B)Seller
C)Broker
D)Buyer
8.) An order for payment from the real estate guarantee fund issued as a result of conduct by a licensee with result in an?
A. minimum five-year revocation of licensing
B. automatic revocation of license with no eligibility for reinstatement until the funds is reimbursed C. minimum $5000 fine
D. automatic suspension of licensee for a minimum of one year with no eligibility for restatement until the fund is reimbursed
9.) A real estate licensee representing a buyer may do all of the following except
a.Disclose the seller’s motivation for selling
b.Identify latent property defects
c.Prepare a Competitive Market Analysis (CMA)
d.Disclose the highest price the buyer is willing to pay
10.) In many states, usury laws
a.Determine the possible legal us of land
b.Provide a right to use property belonging to another
c.Impose a tax on a purchaser of personal property for resale or use
d.Establish a maximum rate of interest allowed for loans
11.) A broker-in-charge believes that providing a handbook of company policies constitutes adequate training, as every associated licensee has had the required pre-license education in real estate, and all are operating as independent contractors. An associated licensee commits a fraud, but claims he did not understand the situation due to lack of training, and blames the broker-in-charge. The broker-in-charge argues that it was the associate’s responsibility to ask for the broker’s help if he was unsure about correct procedure. In this case, the
a.Agent and the broker are both subject to discipline
b.Broker alone is subject to discipline for his failure to train his agents
c.Broker will avoid disciplinary action, as training of independent contractors is not required
d.Associate alone is subject to discipline, as the fraud was a result of his failure to seek counsel.
12.) A MAJOR difference between freehold and non-freehold estates is that all non-freehold estates.
A. have an ownership interest.
B. terminate upon the death of the person on whose life they are based.
C. are estates of inheritance.
D. are estates for a fixed term
13.) The seller responded to the buyer’s offer, proposing changes to some of the terms. In this case the seller would be the
a.Offeree giving a counteroffer
b.Offeror giving a counteroffer
c.Offeror giving an amended offer
d.Offeree giving an amended offer
14.) When MUST a listing broker provide a copy of a fully executed written listing agreement to the owner? A. Upon execution of the listing agreement by all parties
B. Within three days of execution of the listing agreement by registered mail, return-receipt-requested
C. Within five business days of execution of the listing agreement
D. At the time of presentation of a written offer
15.) When must a seller receive a copy of the listing agreement? A. After the broker’s receptionist has had a chance to make copies B. Immediately after the agreement is signed by all parties C. Before the home is shown for the first time
D. Any time before an offer is presented
16.) A potential buyer signs a contract with a seller but then decides not to buy. The seller may sue the potential buyer for specific performance or damages unless the contract was
a.Bilateral contract
b.An installment contract.
c.A land contract. d. An option
17.) Which of the following differentiates a bilateral contract from a unilateral contract?
a.number of parties involve
b.performance obligation of the parties
c.relative value of the object of the contract
d.type of property specified in the contract
18.) When a landowner uses his land as a security for a loan, the encumbrance created is called?
a.A special security
b.A mortgage or deed of trust lien —
c.An involuntary lien
d.A gratuitous privilege
19.) as a rental agent you tell a prospect that a certain neighborhood is undergoing changes because a certain “group” is moving in, this is an example of
a.blockbusting
b.steering
c.redlining
d.preferential treatment
20.) A broker has a single agency relationship with the seller. Any REQUIRED property condition disclosure would be completed by the
A.Seller.
B.broker.
C.agent on behalf of broker. D. agent on behalf of seller
21.) A buyer broker located the property that is listed with another broker. The buyer makes an offer through the buyer broker and an agreement of sales results in the situation, the buyer broker is acting
A.sub-agent of the listing broker
b.referring broker with the listing broker
c.representative of the buyer and owns no fiduciary obligation to the seller
d.representative of the seller and owns no fiduciary obligation to the buyer
22)A licensee is emailing information regarding an open house for one of her listings. In addition to complying with state-specific requirements for advertising, which of the following must also be included in the email?
a.Opt-out provision
b.How the recipient’s name was obtained
c.Complete property address
d.Listing sale price
23.) A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period, and authorizes the broker through a limited power of attorney to accept any of all cash at a price of $108,000 or more pending his return. The broker receives and offer for $110,000 all cash. The broker
A. may not accept the offer until the seller returns
B. must forward the offer to the seller’s attorney for consideration
C. may accept the offer
D. may sign a deed of conveyance if the seller does not return on time
24)An owner has a freestanding cabinet that was custom-built to fit an alcove of the living room. When the owner sells the home, the cabinet will be described as
A. real property
B. personal property
C.fixture
D.an appurtenance
25.) Martha gave Hannah the right to purchase her vacant lot for $65,000. Hannah paid Martha $1,200 for this right. Hannah is the:
a.mortgagor
b.mortgagee
c.optionor
d.Optionee
26.) Neighbors Sam and Molly share the use of Sam’s driveway, which is entirely on Sam’s property. Sam wants to have control of driveway use in case Molly sells her home, and Sam = *-
does not like the new owner. Sam should provide Molly with
A. a license.
B. a covenant.
C. an easement.
D. an encroachment
27.) Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12-month period exclusively for Buyer B. This would be an example of a
A. unilateral contract in which only Seller A has made a promise to perform
B. unilateral contract in which only Buyer B has made a promise to perform
C. bilateral contract which both parties are obligated to perform within the time period
D. void contract
28.) The purchase and offer agreement provide for release of earnest money to the seller after the buyer’s property inspection. The seller requests the earnest money prior to the property inspection. The broker should
–
A. release the earnest money to the seller immediately
B. notify the buyers of the broker intention to release the earnest money to the seller
C. release the earnest money on the buyer’s approval
D. refuse to release the earnest money
29.) What does a mortgage lender MOST often rely on when deciding how much is safe to lend on a parcel of real estate?
A. Market analysis
B. sales contract
C. Appraisal report
D. Assessors determination
30.) Which of the following items would be prorated at closing with the credit going to the seller? A. Accrued interest on an assumed mortgage
B. Pre paid property taxes
C. Earnest money
D. Unearned rent collected in advance
