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Superior real estate school practice exam > Practical Exam > Flashcards

Practical Exam Flashcards

1
Q
  1. The seller of a property has cold feet and has decided to breach an otherwise valid contract by not completing the sale. The buyer has elected to sue for specific performance. What could be the result of such an action?

A. The seller must reimburse the buyer for all expenses, but will not be forced to sell the home.
B. The buyer may seek punitive damages with treble damages.
C. The court may force the seller to sell the home.
D. The seller may force the buyer to rescind the contract.

A

C. The court may force the seller to sell the home.

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2
Q
  1. The terms meridian and parallels refer to which of the following real property legal descriptions?
    A. Plat maps
    B. Lot and block references
    C. Metes and bounds
    D. Government survey rectangular method
A

D. Government survey rectangular method

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3
Q
  1. Provisional broker John works for Sandra, who is a BIC. Sandra has a listing that one of John’s buyer clients wants to see. In regard to the agency relationship that will be formed with John’s buyer client, what type of agency relationship will both John and Sandra have in this transaction?
    A. They will both be single agents.
    B. They will both be dual agents.
    C. They will both be designated agents, if that is what the firm practices.
    D. John will be a designated agent and Sandra will be a dual agent.
A

B. They will both be dual agents.

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4
Q

Which of the following regarding members of the North Carolina Real Estate Commission?
A. There are 9 Commission members who are appointed by the governor.
B. The Commission members are all members of the real estate profession.
C. Members of the Real Estate Commission are appointed by both the governor and the Legislature, and at least 3 of them must have a real estate license.
D. The Real Estate Commission must have at least 3 members from the general public.

A

C. Members of the Real Estate Commission are appointed by both the governor and the Legislature, and at least 3 of them must have a real estate license.

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5
Q

Once a provisional broker is licensed, in regard to continuing education, the provisional broker must adhere to which of the following Commission Rules?
A. Complete 90 hours of CE in the first 3 years of licensure
B. Complete 8 hours of CE, plus 30 hours of postlicensing in the first year of licensure
C. Complete 8 hours of CE every year by June 10, prior to the second renewal of the provisional broker’s license
D. Complete 8 hours of CE every year, commencing upon completion of the postlicensing requirement

A

Complete 8 hours of CE every year by June 10, prior to the second renewal of the provisional broker’s license

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6
Q
  1. Which of the following is true regarding supply and demand in the real estate market?
    A. As demand increases and supply increases, prices tend to increase.
    B. As demand decreases and supply increases, prices tend to increase.
    C. As supply increases and demand decreases, prices remain the same.
    D. As supply decreases and demand increases, prices tend to rise.
A

D. As supply decreases and demand increases, prices tend to rise.

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7
Q
  1. All of the following would be considered an appurtenance, EXCEPT:
    A. A building on the property
    B. The right or privilege to exclude others from the property
    C. A fence that surrounds the property
    D. Growing crops that are attached to the ground
A

D. Growing crops that are attached to the ground

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8
Q
  1. A homeowner lives in a homeowner’s association that has some protective covenants originally created by the developer. One of the neighbors has constructed a shed on their property, which violates these provisions. The homeowner would be able to enforce these by a process that would involve:
    A. Contacting the local zoning authority about the violation
    B. Submitting written notice of the violation to the developer
    C. Filing a lawsuit in court
    D. They cannot be enforced if the neighbor properly obtained a variance
A

C. Filing a lawsuit in court

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9
Q

All of the following items would normally remain with the property and transfer to the new owner, EXCEPT.

A. Gas logs attached to pipes in a fireplace
B. Awnings that have been installed above the home’s windows
C. A $4,000 gazebo in the backyard with no foundation
D. A $100 pewter switch plate cover next to the front door

A

C. A $4,000 gazebo in the backyard with no foundation

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10
Q
  1. A homeowner would like to install a new heating and cooling system. His home is 50 feet by 70 feet and has 10-foot ceilings. The home also has a 20 foot by 20 foot detached garage. What is the total cubic footage of air in this home?
    A. 24,500 cubic feet
    B. 2,450,000 cubic feet
    C. 245,000 cubic feet
    D. 35,000 cubic feet
A

D. 35,000 cubic feet

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11
Q
  1. A two-acre rectangular parcel has four lots. Each lot is 90 feet wide. How many feet deep is each lot?
    A. 87,120 feet
    B. 24.2 feet
    C. 242 feet
    D. 190 feet
A

C. 242 feet

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12
Q
  1. Which of the following statement is true about time shares?A. They do not have to be registered with the NC
    Real Estate Commission.
    B. They may be transferred prior to registering with the NC Real Estate Commission.
    C. They must be registered with the NC Real Estate Commission prior to sale.
    D. The timeshare broker may be fined by the NC
    Real Estate Commission.
A

C. They must be registered with the NC Real Estate Commission prior to sale.

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13
Q
  1. All of the following are considered to be leasehold interests in real estate, EXCEPT:
    Al Estate for years
    B. Estate at will
    C. Estate at sufferance
    D. Life estate
A

D. Life estate

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14
Q
  1. An owner of a property reserved a life estate that was conditioned upon the life of a relative. At the end of the life estate, the owner specified that the property was to be transferred to their children.
    What type of interest do the children have in the property?
    A. A reversionary interest
    B. A life tenancy
    C. A fee simple ownership
    D. A remainder interest
A

D. A remainder interest

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15
Q
  1. A neighbor has been using a lot that is adjacent to them for a long period of time. They regularly mow the grass and have had a garage and shed constructed on the lot. If the original owner decides to sell the lot, does the neighbor have any legal rights to the property?
    A. Yes, the neighbor is a squatter. If they use the property for the statutory period, they may claim ownership by adverse possession.
    B. No, squatters are never allowed to acquire property; they may only receive a prescriptive
    • easement.
    C. Yes, but only if the neighbor files with the clerk of court and pays fair market value for the property.
    D. No, the neighbor may not acquire the property because they never had the owner’s permission to use the property.
A

A. Yes, the neighbor is a squatter. If they use the property for the statutory period, they may claim ownership by adverse possession.

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16
Q
  1. None of the following are essential elements of a contract to purchase real property, EXCEPT:
    A. Earnest money
    B. Consideration
    C. Due diligence fee
    D. Recording prior to closing
A

B. Consideration

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17
Q
  1. A buyer had their offer accepted by the seller, but has decided to cancel within the due diligence period. In this situation:
    A. The listing broker agent must complete the Earnest Money Release form with the seller’s and buyer’s signatures before releasing any earnest monies to the buyer.
    B. The buyer is entitled to a refund of both their earnest money and their due diligence fee.
    C. The earnest money must be returned to the buyer immediately.
    D. The broker can only release the money to the buyer without the seller’s consent if the broker is acting as a dual agent.
A

A. The listing broker agent must complete the Earnest Money Release form with the seller’s and buyer’s signatures before releasing any earnest monies to the buyer.

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18
Q
  1. A buyer and seller are under contract. While under contract, the buyer lost their job and is unable to produce the necessary funds for closing. The listing firm insists that the seller pay the commission promised in the listing agreement.
    The listing firm’s argument is that they produced a ready, willing and able buyer. Which of the following will most likely occur?
    A. The listing firm will be able to collect because the listing agreement is a valid binding contract, even if the buyer is unwilling and unable.
    B. The listing firm will not be able to collect because the Good Funds Settlement Act requires funds to be good.
    C. The listing firm will most likely have a difficult time gollecting their commission because the buyer did not produce the necessary funds.
    • D. The listing firm should place a lien on the
A

C. The listing firm will most likely have a difficult time gollecting their commission because the buyer did not produce the necessary funds.

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19
Q
  1. A sixteen-year-old enters into a contract to purchase an investment property from an elderly couple. What is the status of the contract?
    A. The contract is voidable at the seller’s option.
    B. The contract is enforceable as long as all the essential elements of the contract are present.
    C. The contract is void because the elderly couple entered it with a minor.
    D. The contract is voidable at the buyer’s option.
A

D. The contract is voidable at the buyer’s option.

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20
Q
  1. In the state of North Carolina, building codes have been established to create minimum construction standards to assure the safety of the building’s occupants. Which of the following statements is correct regarding building codes?
    A. Building codes are created at the local level but enforced by the state.
    B. Building codes are created and enforced at the local level.
    C. Building codes are created at the state level through the Building Code Council but enforced at the local level.
    D. There are no building codes in North Carolina.
    • Enforcement of construction is done through zoning.
A

C. Building codes are created at the state level through the Building Code Council but enforced at the local level.

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21
Q
  1. A life tenant who has received a conventional life estate may do all of the following, EXCEPT:
    A. Sell their interest in the property
    B. Will their interest to their children
    C. Encumber the property
    D. Obtain a loan against the property
A

B. Will their interest to their children

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22
Q
  1. Two properties are adjacent to each other. One of the properties benefits from the existence of an easement. In regard to the property that is benefiting, what is the easement called?
    A. Dominant easement|
    B. Servient easement
    C. Easement in gross
    D. Easement appurtenant
A

D. Easement appurtenant

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23
Q
  1. John is the BIC at ABC Brokerage. Paul is a provisional broker at ABC, and Sally is a full broker at ABC. Fred is a full broker with XYZ Brokerage.
    Under this situation, who can properly be named as designated agents in a real estate transaction?
    A. John & Sally
    B. John & Paul
    C. Paul & Fred
    D. Fred & Sally
A

A. John & Sally

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24
Q
  1. On June 1, Sandra received a phone call from a buyer who asked if a particular property was still
    on the market. During the phone call, they scheduled an appointment with Sandra to see the property. On June 5, she met the buyers at her office and discussed with them their loan
    prequalification and their reasons for moving. On June 8, the buyer wrote an offer on the property.
    When must Sandra provide the buyers with the
    NCREC Working With Real Estate Agents
    Disclosure?A. On June 1, when they first contacted her.
    B. On June 1, because she plans to show them the property.
    C. On June 5, when she met with them in her office.
    D. On June 8, prior to the buyers writing an offer.
A

C. On June 5, when she met with them in her office.

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25
Q
  1. Jan is the BIC with Top Gun Realty. She has a listing agreement with a seller, and one of her provisional brokers, Donald, has a buyer under a buyer agency agreement. Donald’s buyer wishes to see the property listed by Jan. In regard to the clients in this transaction, Jan and Donald will be in what type of agency relationship?
    A. Single agents
    B. Designated agents
    C. Dual agents
    D. They cannot be in an agency relationship because Jan is a BIC and Donald is a provisional broker.
A

C. Dual agents

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26
Q
  1. Ben & Jerry, two ice cream moguls, decided to purchase a property and took title as tenants in common. If Jerry dies intestate, who will control his interest in the property?
    A. Whoever Jerry has named in his will.
    B. Ben will own the property.
    C. Jerry’s spouse and children will own the property.
    D. The property will be owned according to state laws on intestate succession.
A

D. The property will be owned according to state laws on intestate succession.

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27
Q
  1. Which of the following statements made by a real estate agent could create an implied agency relationship between the real estate agent and a buyer?
    A. “I need to let you know that the roof has a small leak and the seller is addressing it.”
    B. “Doesn’t this pea green carpet look stunning?”
    C. “You should take this deal; it’s the best one for you.”
    D. “There has been talk of a new highway being sited just a half a mile from here.”
A

C. “You should take this deal; it’s the best one for you.”

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28
Q
  1. All of the following would create an agency relationship, EXCEPT:
    A. The payment of money
    B. A written agency contract between the buyer and agent
    C. An oral buyer agency agreement
    D. The actions of the parties
A

A. The payment of money

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29
Q
  1. The process by which the government takes title to private land for the public use and pays the owner just compensation is known as:
    A. Eminent domain
    B. Condemnation
    C. Easement by necessity
    D. Police power
A

B. Condemnation

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30
Q
  1. In a cooperative, what the buyer receives is an interest in:
    A. A corporation’s stock and a proprietary lease
    B. Jointly owned tenancy in common
    C. Their unit and an undivided interest in the common area
    D. The ownership of the building by the entireties
A

A. A corporation’s stock and a proprietary lease

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31
Q
  1. The encumbrance that takes priority over all other liens on a property is:
    A. The lien for any unpaid property taxes
    B. Recorded mechanic’s liens
    C. Liens of the homeowner’s association
    D. Federal IRS income tax liens
A

A. The lien for any unpaid property taxes

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32
Q
  1. All of the following would be an encumbrance on a parcel of real estate, EXCEPT:
    A. Real estate taxes
    B. A loan made by a bank
    C. An easement
    D. Unpaid medical bills that are in collections
A

D. Unpaid medical bills that are in collections

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33
Q
  1. The Statute of Frauds requires that:
    A. Deeds must be recorded to be valid
    B. Deeds must be notarized.
    C. Contracts for the exchange of real estate must be in writing in order to be enforceable.
    D. All leases for longer than one year must be in writing.
A

C. Contracts for the exchange of real estate must be in writing in order to be enforceable.

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34
Q
  1. Jack, a buyer, was never provided with a Residential Property Disclosure Statement by the seller. Under NC law, Jack has the right to:
    A. Cancel his contract within 5 days.
    B. Cancel his contract at any time prior to closing.
    C. Cancel his contract within 3 days of the date of his offer.
    D. Cancel his gontract within 3 days of the date the contract was accepted.
A

D. Cancel his gontract within 3 days of the date the contract was accepted.

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35
Q
  1. The ad valprem tax rate may adjust:
    A. Once at least every 8 years
    B. Once at least every 4 years
    C. Once a year
    D. Once at least every 2 years
A

C. Once a year

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36
Q
  1. A provisional broker whose firm has a listing with a seller owes fiduciary obligations to the seller when working with the seller because:
    A. The client is the provisional broker’s client.
    B. All agents owe fiduciary duties to sellers.
    C. Subagency imposes on the provisional broker the fiduciary obligations of the firm.
    D. The seller is the provisional broker’s customer.
A

C. Subagency imposes on the provisional broker the fiduciary obligations of the firm.

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37
Q
  1. How many acres are there in the following legal description: the N ½ of the SE ¼ and the SE ¼ of the NE ¼?
    A. 80 acres
    B. 40 acres
    C. 120 acres
    D. 160 acres
A

C. 120 acres

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38
Q
  1. Which characteristics are correct regarding a planned unit development (PUD)?
    A. There is tvoical v no homeowner’s associntion.
    B. PUD differs from a normal subdivision in that buildings may be clustered together rather than complying with normal lot size and setback, which leaves more room for open spaces and recreational areas.
    C. PUDs can only exist in areas that have spot zoning.
    D. The homeowners in a PUD hold title to the common areas as tenants in common.
A

B. PUD differs from a normal subdivision in that buildings may be clustered together rather than complying with normal lot size and setback, which leaves more room for open spaces and recreational areas.

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39
Q
  1. The annual property tax bill is $3,780. If the tax rate is 180 mills, what was the assessed value of the property?
    A. $2,100.00
    B. $21,000.00
    C. $210,000.00
    D. $680.40
A

B. $21,000.00

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40
Q
  1. A licensee tells a prospective buyer that the home they are buying contains great insulation and low-cost utility bills without doing any research or investigation. If the insulation in the home turns out to be of inferior quality and the heating bills extremely high, the representation made by the licensee to the buyer would be best classified as:
    A. Putting
    B. willful omission
    C. Negligent misrepresentation
    D. Wiltu misrepresentation
A

C. Negligent misrepresentation

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41
Q
  1. The following statements are correct about tenancy by the entirety, EXCEPT:
    A. Property that is purchased after marriage, if held in both the husband and wife’s names, will by default be titled as tenants by the entirety.
    B. If a married couple becomes separated, any property they acquired after marriage will remain as tenants by the entirety unless they take action to change the ownership status.
    C. Property acquired prior to marriage does not automatically become tenancy by the entirety ownership.
    D. If a married couple becomes divorced, any property acquired during the marriage that was deeded as tenancy by the entireties will remain as such.
A

D. If a married couple becomes divorced, any property acquired during the marriage that was deeded as tenancy by the entireties will remain as such.

42
Q
  1. A buyer makes an offer on a property. After the offer has been presented, the listing agent informs the buyer’s agent that there are multiple offers being presented to the seller. When the buyer is informed of the multiple offer situation, the buyer asks the buyer’s agent, “What are the prices of the competing offers?” Under NC Real Estate Commission rules:
    A. The listing agent can never disclose prices and terms of competing offers on the property.
    B. The seller can give the listing agent permission to “shop offers” and disclose the prices, terms, conditions and provisions to all buyers’ agents.
    C. If all buyers making offers on the property agree that their offers can be disclosed to other buyers, then mutual agreement by the buyers will allow disclosure of the price and terms of all offers.
    D. The disclosure of the price and terms of other offers is only permitted when the agent is practicing single agency.
A

C. If all buyers making offers on the property agree that their offers can be disclosed to other buyers, then mutual agreement by the buyers will allow disclosure of the price and terms of all offers.

43
Q

43.Which of the following statements
regarding the NC Timeshare Act?
I. A person who sells timeshares for a timeshare developer must have a NC real estate license.
II. The NC Real Estate Commission can fine a timeshare developer $500 for each violation of the NC Timeshare Act because of actions of the developer or their agents.
A. I only
B. II only
C. Both I and Il
D. Neither I nor lI

A

C. Both I and Il

44
Q
  1. Which of the following statements is correct regarding NC Residential Property Disclosure
    Act?
    I. Sellers are required to disclose all defects in their property.
    II. If the buyer does not receive the NC
    Residential Property Disclosure Statement by time of offer, then the buyer has a 5 calendar day period of time to cancel the sales contract.
    A. I only
    B. II only
    C. Both I and II
    D. Neither I nor I|
A

D. Neither I nor I|

45
Q
  1. In many states, other than North Carolina, property is considered to be equal between husband and wife. Any property acquired during the marriage is deemed to have been obtained by mutual effort. When a spouse dies, the surviving spouse retains their one-half interest in the property and the other half of the estate is inherited by the decedent’s heirs. In what manner do these people hold title?
    A Joint tenancy
    B. Tenancy in common
    C. Community property
    D. Tenancy by the entireties
A

C. Community property

46
Q
  1. The reason that deeds are recorded under the Conner Act is because:
    A. Deeds are subject to the Stätute of Frauds.
    B. Recording provides actual notice to all of the parties in the transaction.
    C. Recording provides constructive notice of the transfer.
    D. The Conner Act does not require deeds to be recorded.
A

C. Recording provides constructive notice of the transfer.

47
Q
  1. All of the following would be ways in which an agency relationship can be terminated without the parties incurring any further liability, EXCEPT:
    A. Death of the principal
    B. Destruction of the property
    C. Unilateral revocation
    D. Filing of bankruptcy by the seller
A

C. Unilateral revocation

48
Q
  1. A licensee who is involved in a transaction as a dual agent must:
  2. Disclose and get the consent of all parties involved
    II. Avoid discussions about motivations, prices
    and terms with all parties
    A. I only
    B. II only
    C. Both I & Il
    D. Neither I nor lI
A

C. Both I & Il

49
Q
  1. What is the typical type of agency between a seller and a real estate firm?
    A. Universal
    B. General
    C. Special
    D. Servient
A

C. Special

50
Q
  1. A deed that only warrants claims and encumbrances against the property during the term of the grantor’s ownership is a:
    A. General warranty deed
    B. Bargain & sale deed
    C. Quit-claim deed
    D. Special warranty deed
A

D. Special warranty deed

51
Q
  1. During the previewing of a property, the prospective buyer asks the listing agent about whether or not a garage located on the property is within the boundaries of the property line. If the garage extends over the property line, which of the following statements is false?
    A. The agent should advise the buyer to get a survey.
    B. The seller is required to disclose the existence of the encroachment on the seller’s property disclosure.
    C. The existence of an easement for such a purpose would solve an encroachment problem.
    D. If the garage has existed for a required statutory period, the issue may be resolved by the existence of a prescriptive easement.
A

B. The seller is required to disclose the existence of the encroachment on the seller’s property disclosure.

52
Q
  1. All of the following would result in termination of an easement, EXCEPT:
    A. Sale of the property
    B. Merger
    C. Mutual agreement
    D. Abandonment
A

A. Sale of the property

53
Q
  1. A valid and enforceable contract must have all of the following elements, EXCEPT:
    A. Contain a meeting of the minds
    B. Be for a legal purpose
    C. Monetary consideration
    D. Competent parties
A

C. Monetary consideration

54
Q
  1. Which of the following statements is correct regarding the issuance of title insurance?
    A. The title insurance will insure the owner against any encroachments or issues with the property.
    B. The title insurance protects the purchaser.
    C. The title insurance only protects against errors in the recorded documents and any undisclosed liens or encumbrances.
    D. The title insurance should be obtained by the owner to protect the owner’s investment and equity.
A

D. The title insurance should be obtained by the owner to protect the owner’s investment and equity.

55
Q
  1. This type of legal description would be used in heavily populated areas and is usually used to convey the smallest parcels in subdivisions:
    A. Metes and bounds
    B. Government survey
    C. Lot and block
    D. Street addresses
A

C. Lot and block

56
Q
  1. The annual taxes on a parcel of property are $2,800. These taxes have been paid by the seller.
    When the property is transferred, how will the proration of these taxes be handled on the Closing Disclosure?
    A. A debit to the buyer and a debit to the seller
    B. A debit to the buyer and a credit to the seller
    C. A credit to the buyer and a debit to the seller
    D. A credit to the buyer and a credit to the seller
A

B. A debit to the buyer and a credit to the seller

57
Q
  1. Under the federal Sherman Antitrust Act, which of the following statements would a real estate professional be legally permitted to make?
    A. Informing a consumer that another company does not train its agents well
    B. Telling a prospective seller that if they check around they would find that your commission is about the average in the market
    C. Informing a client that your broker insists that the commission be 7%
    D. Telling a buyer to avoid looking at a certain listing because the agent listing it works with a company with a bad reputation
A

C. Informing a client that your broker insists that the commission be 7%

58
Q
  1. All offers to purchase and documents to clients should be delivered:
    A. Within 3 days of the signature of all parties
    B. Immediately, but never later than 3 business days
    C. Immediately
    D. Immediately, but never later than 3 calendar days
A

D. Immediately, but never later than 3 calendar days

59
Q
  1. Once a provisional broker has taken possession of earnest money and due diligence fees:
    A. The earnest money and due diligence fees must be deposited into a trust account.
    B. The provisional broker may hold the earnest money until the contract is accepted and the due diligence fee should be given to the seller immediately.
    C. All monies should be delivered to the BIC immediately.
    D. The due diligence fee is refundable during the due diligence period, but the earnest money is not.
A

C. All monies should be delivered to the BIC immediately.

60
Q
  1. An offer to purchase would include all of the following, EXCEPT:
    A. Confirmation of the agency relationship of the parties
    B. The fees to be charged to the parties
    C. An accurate description of the property
    D. The obligations and duties of the buyer to the seller
A

B. The fees to be charged to the parties

61
Q

61.Which of the following is correct regarding the cancellation of a timeshare agreement in North Carolina?
A. The buyer has 5 days to cancel, and the developer must refund their money with 10 days.
B. The buyer has 3 days to cancel, and the developer must refund their money within 15 days.
C. The buyer has 5 days to cancel, and the developer must refund their money within 30 days.
D. The buyer has 3 days to cancel, and the developer must refund their money within 10 days.

A

C. The buyer has 5 days to cancel, and the developer must refund their money within 30 days.

62
Q
  1. A buyer tendered an offer to purchase with a 10-day due diligence period and a settlement date for 30 days later. The buyer provided a $3,000 earnest money deposit and a $500 due diligence fee. Three days prior to closing, the buyer lost their job and now cannot complete the transaction.
    Under this scenario, what will be the disposition of the funds?
    A. The buyer will get back their earnest money deposit and due diligence fee.
    B. The buyer will lose both their earnest money and due diligence fee.
    C. The buyer loses their due diligence fee but will get back their earnest money,
    D. The buyer loses their earest money but gets back their due diligence fee.
A

B. The buyer will lose both their earnest money and due diligence fee.

63
Q
  1. All of the following would be terminated at the death of the parties, EXCEPT:
    A. An offer to purchase that has not yet been accepted
    B. A listing agreement
    C. A life estate
    D. A purchase contract that has been fully signed and accepted by all parties
A

D. A purchase contract that has been fully signed and accepted by all parties

64
Q
  1. Which of the following statements is correct regarding statement?
    A. The seller must disclose all material issues with the property.
    B. If the statement is not provided to the buyer, the tuyer has 5 days to cancel the contract.
    C. The-agent may be liable for the seller’s omissions if the agent did not disclose material facts.
    D. Agents and sellers are only liable for the representations they make.
    The annual taxes on a parcel of property are $2,520. These taxes have not been paid by the seller. If closing occurs on November 15 and the escrow agent is instructed to collect and pay the full taxes, how will this appear on the Closing Disclosure?
A

C. The-agent may be liable for the seller’s omissions if the agent did not disclose material facts.

65
Q
  1. Under which of the following type of listing agreement will an agent be paid only if they or another agent find the buyer, but not if the seller sells the property on their own?
    “A. Open listing
    B. Net listing
    C. Exclusive right to sell listing
    D. Exclusive agency listing
A

D. Exclusive agency listing

66
Q
  1. Under which of the following type of listing agreement will an agent be paid only if they or another agent find the buyer, but not if the seller sells the property on their own?
    A. Open listing
    B. Net listing
    C. Exclusive right to sell listing
    D. Exclusive agency listing
A

D. Exclusive agency listing

67
Q
  1. The substitution of an existing contract for another contract is a concept known as:
    A. Assignment
    B. Reallocation
    C. Novation
    D. Rescission
A

C. Novation

68
Q
  1. A bargain and sale deed would contain which of the following covenants?
    A. Covenant against encumbrances
    B. Covenant of further assurances
    C. Covenant of seizin
    D. Covenant of quiet enjoyment
A

C. Covenant of seizin

69
Q
  1. Which
    ownership of a unit with tenancy in common?
    A. Townhomes
    B. Condominiums
    C. Cooperatives
    D. Planned unit developments
A

B. Condominiums

70
Q
  1. An agent must discuss agency with a prospective buyer or seller at “first substantial contact.” This is the moment the consumer begins talking about confidential information:
    wants, needs, and desires; or any terms and conditions they would purchase
    information is required to be discussed/provided,
    EXCEPT:
    A. The agent must discuss their brokerage split with their firm.
    B. The agent must provide the Working with Real Estate Agents Disclosure form.
    C. The agent must discuss and explain the agency relationships that are available to the consumer.
    D. The agent must disclose the status of their agency relationship with the consumer.
A

A. The agent must discuss their brokerage split with their firm.

71
Q
  1. When someone dies testate, the people whol inherit the decedent’s real executor would be receiving
    A. Legacy
    B. Bequest
    C. Devise
    D. Descent
A

C. Devise

72
Q
  1. Which of the following is incorrect regarding designated agency?
    A. The firm’s broker in charge makes the designation.
    B. A firm may inform a consumer that designated agency is not avallable to them.
    C. The brokers in designated agency must work for different firms.
    D. The firm must have policies and procedures in place to enforce designated agency rules.
A

C. The brokers in designated agency must work for different firms.

73
Q

73.When an owner of real property sells or transfers it and retains their right or interest to the mineral rights, they are creating:
A. An easement that must appear in the deed
B. An encroachment that affects subsequent ownership of the land
C. A reservation and exception that must appear in the deed
D. An illegal interference in the bundle of rights of the buyer

A

C. A reservation and exception that must appear in the deed

74
Q
  1. A purchase contract in which one of the parties has made a substantial misrepresentation or omission is:
    A. Void
    B. Enforceable
    C. Voidable by the party damaged by the misrepresentation
    D. Unenforceable
A

C. Voidable by the party damaged by the misrepresentation

75
Q
  1. All of the following would be
    involuntary alienation of real estate, EXCEPT:
    A. A foreclosure by a lender
    B. A condemnation proceeding
    C. A transfer in a will
    D. Escheat
A

C. A transfer in a will

76
Q
  1. A seller needs to pay an estimated $3,500 in closing costs, $96,000 on her current mortgage, and wants $45,000 in cash for a down payment on another house. Her listing agreement obligates her to pay 6.5% commission to the brokerage.
    Round your answer up to the nearest dollar.
    A. $148,835
    B. $153,893
    C. $154,546
    D. $158,509
A

C. $154,546

77
Q
  1. Agent S executes a buyer agency agreement with buyer B. S reads an ad placed by a FSBO seller, offering 3.5% commission to the broker who brings the buyer. What is the seller’s relationship to S if B makes an offer on the house?
    A. The seller is an agent.
    B. The seller is a client.
    C. The seller is a customer.
A

C. The seller is a customer.

78
Q
  1. A property owner wants to put in a wheelchair ramp to accommodate a disabled family member.
    The ramp’s proximity to the sidewalk would violate the setback requirements for the community. What should the property owner request of the zoning commission?
    A. a grandfather clause
    B. a nonconforming use
    C. a spot zone exception
    D. a variance
A

D. a variance

79
Q
  1. A homeowner enters into a listing agreement with a brokerage company.
    listing, but before the broker begins actively marketing the property, the homeowner sells the property lo a close friend. If the homeowner still owes the broker a commission, what type of listing was it?
    A. exclusive listing
    B. exclusive right to sell listing
    C. net listing
    D. open listing
A

B. exclusive right to sell listing

80
Q
  1. A nursery and tree farm has been operating just outside of the city limits for 30 years. Over time, the area around the nursery is rezoned from agricultural to residential as the farmland is subdivided. What type of zoning exception would allow the nursery and tree farm to continue operation?
    A. area variance
    B. conditional use
    C. nonconforming use
    D. special exception
A

C. nonconforming use

81
Q
  1. A home sells for $163,825. If the state transfer tax is $1 per $500 of value or fraction thereof, what will the seller owe the state in transfer tax at closing?
    A. $327.65
    B. $328.00
    C. $490.50
    D. $492.00
A

B. $328.00

82
Q
  1. A small strip mall has an effective gross income of $44,000. Operating expenses are $26,000, and debt service is $8,800. If the desired capitalization rate is 10%, how much would a buyer be willing to pay for the property?
    A. $32,400
    B. $92,000
    C. $172,000
    D. $180,000
A

D. $180,000

83
Q
  1. A licensed real estate broker takes a seller’s listing, but later decides he wants to buy the property himself. He can purchase the property for himself
    A. if he gets someone else to represent the seller.
    B. if he discloses to the seller that he is the buyer.
    C. only after the listing agreement expires.
    D. never; a licensee cannot purchase one of his own listings.
A

B. if he discloses to the seller that he is the buyer.

84
Q
  1. A and B sign a purchase agreement. Prior to closing,
    It is discovered that A was legally incompetent when she signed the contract, what is the status of the contract? 
    A. executory
    B. valid, unless there was fraud
    C. void
    D. voidable by A only
A

C. void

85
Q
  1. Local governments exercise control over the permitted use of private property primarily through
    A. building codes.
    B. covenants, conditions, and restrictions (CCRs).
    C. deed restrictions.
    D. zoning ordinances.

.

A

D. zoning ordinances.

86
Q
  1. Which statement about a comparative market analysis is FALSE?
    A. A CMA can assist a buyer in determining a fair price to offer for a home.
    B. A CMA can assist a seller in determining an appropriate listing price.
    C. A CMA may be used to determine property value for a federally regulated loan.
    D. A CMA should evaluate properties currently listed, recently sold, or with expired listings
A

C. A CMA may be used to determine property value for a federally regulated loan.

87
Q
  1. A deed contains the following
    description: “Beginning at the northeast corner of Oak and Elm streets, thence 15 degrees East to the embedded steel pin, thence North 90 degrees …” What type of legal description system is this?
    A. governhent survey
    B. lot and block
    C. metes and bounds
    D. plat map
A

C. metes and bounds

88
Q
  1. A homeowner list his property through a licensing of ABC Realty. The broker charges 6.5% commission and offers of 40% split to the cooperating broker. The license he gets 45% of what earns. The house sells for 462,000. How much does the license make parentheses (round to the nearest dollar)
    A. $8,108
    B. $8,316
    C. $9,910
    D. $12,012
A

A. $8,108

89
Q
  1. A single woman buys a home. Several years later, she gets married and changes her name. Now she wants to sell the property. To clear the cloud on the title caused by having a different name on the deed used to convey the property to someone else, she can file a
    A. bargain and sale deed.
    B. limited warranty deed.
    C. quitclaim deed.
    D. referee’s deed.
A

C. quitclaim deed.

90
Q
  1. A real estate licensee has actual knowledge of structural damage to the floor boards of a home he has listed due to termite infestation. He informs the buyer’s agent that there are no termites or termite damage in the home. The buyer signs a contract to purchase the property. Is the listing agent susceptible to claims of fraud?
    A. No, because the buyer should have discovered the termite damage.
    B. No, because the buyer’s agent should have been looking out for the buyer.
    C. Not as long as there is an as-is clause in the purchase agreement.
    D. Yes, because he intentionally withheld a material defect.
A

D. Yes, because he intentionally withheld a material defect.

91
Q
  1. A buyer offers a seller $189,500 for his house.
    The seller accepts. The appraisal comes in at $188,000. If the buyer’s lender requires a loan-to-value ratio of 80%, how much of a down payment-must she make?
    A. $37,600
    B. $37,900
    C. $39,100
    D. $39,500
A

C. $39,100

92
Q
  1. Legally, the presence of a sexual offender in the neighborhood is considered
    A. confidential information that a licensee cannot disclose.
    B. an immaterial fact that a licensee is not required to disclose.
    C. a material fact that a licensee must disclose.
    D. a material fact that the seller must disclose.
A

B. an immaterial fact that a licensee is not required to disclose.

93
Q
  1. Which obligation has first priority in the event of a foreclosure sale?
    A. ad valorem taxes
    B. first mortgage
    C. IRS tax lien
    D. mechanic’s lien
A

A. ad valorem taxes

94
Q
  1. Which situation represents a blind ad?
    A. A broker includes the NAR logo on his business card, but he is not a REALTORS.
    B. A broker includes a national franchise logo in an ad, but she has no affiliation with it.
    C. A homeowner is selling her house FSBO but puts a local broker’s name on the yard sign.
    D. A licensee places a for sale sign in his client’s yard with only his phone number on it.
A

D. A licensee places a for sale sign in his client’s yard with only his phone number on it.

95
Q
  1. A subject property has 4 bedrooms; a comparable property has 3. A bedroom in that neighborhood is valued at $5,000. The comp does not have a basement; the subject does.
    subject does not. A pool is valued at $4,000. The comp sold for $260,000. What is the subjects estimate of value based on this comp?
    A. $247,000/
    B. $264.000
    C.$269,000
    D. $273,000
A

C.$269,000

96
Q
  1. A dual agent who represents both buyer and seller in the same transaction CANNOT
    A. estimate the closing costs that each should expect to pay
    B. make arrangements to gather documentation
    In preparation for settlement.
    C. recommend an amount to offer or counteroffer.
    D. perform a comparative market analysis of similar properties and present it to both.
A

D. perform a comparative market analysis of similar properties and present it to both.

97
Q
  1. RESPA applies to
    federally regulated loan.
    A. any commercial or residential property
    B. any residential property
    C. one- to four-family residences
    D. only single-family dwellings
A

C. one- to four-family residences

98
Q
  1. A resident has a proprietary lease on one of the residential units in a large complex. She also has use of the building’s common areas. She lives in a
    A. condominium.
    B. cooperative.
    C. timeshare.
    D. townhome.
A

B. cooperative.

99
Q
  1. A special assessment levy passes for 5.2 mills annually to pay for new sewers. The levy will be in place for three years. A property has a market value of $296,000. Property is assessed for tax purposes at 45% of its appraised value. What will the 5.2 mill tax levy cost this property owner in total?
    A. $692.64
    B. $1,539.20
    C. $2,077.92
    D. $2,539.68
A

C. $2,077.92

100
Q
  1. A homeowner wants to install a laminate floor in her cottage kitchen. The room measures 12’ x 18’, and the flooring will cost $18.50 per square yard.
    How much will the materials cost?
    A. $444
    B. $1,332
    C. $1,998
    D. $3,996
A

A. $444

Superior real estate school practice exam (2 decks)

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