Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate Express Final > Real Estate Express Practice Exam > Flashcards

Real Estate Express Practice Exam Flashcards

1
Q

Broker Austin represents a party in a transaction where there is a dispute regarding the deposited escrow money. What should Austin do?

A

Hold the money until both parties (or their lawyers) provide a written release.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Which of the following legal description methods has been used the longest in the US?

A

The metes and bounds system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which of the following would be found in a management proposal?

A

Schedule of maintenance requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P&I payment of $3,780?

A

$779,470

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If a comparable has one less bathroom than the subject, an adjustment is made by

A

adding value to the comparable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Which of these statements about an independent contractor is false?

A

He or she is reimbursed for all business expenses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Why is the condition of bearing walls more important than non-bearing walls?

A

Bearing walls support the ceiling and the roof.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A town is replacing a sidewalk that serves eight homes. The length of the sidewalk is 900 feet. Laura’s property has 60 feet of the sidewalk. If the cost of the project to be paid by a special assessment is $18,000, what will Laura’s assessment be?

A

$1,200

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Which of the following statements is false regarding a tenancy in common?

A

The co-owners must be married.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Broker Jon is attaching a rider strip to a For Sale sign. What information is most likely on this rider strip?

A

Jon’s cell phone number

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A cooperative is

A

a type of residential property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which of the following types of property sales typically requires a property condition disclosure?

A

A three unit, multi-family dwelling

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Broker Ron wants to open a separate escrow account for each transaction he is involved in. Is this legal?

A

Yes, there is no legal limit on the number of escrow accounts a broker can have.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

160 County Drive has 4 acres of open pasture and a 1,900 square foot home. The home has 2 bedrooms and 4 bathrooms. Call 555-555-5555 now for information! What is missing from this advertisement that makes it a blind ad?

A

The broker’s identification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a disadvantage of real estate investment?

A

It is not highly liquid.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Alex’s home has been on the market for eight months. What is the most likely reason Alex’s home has not been sold yet?

A

The property is overpriced.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Mary abandoned her property by failing to pay its property taxes, and the property reverted to the state. This is an example of

A

escheat.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Which of the following would be considered community property in a community property state?

A

A car the spouses bought together after the marriage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Home Hoarding Realty is advertising to the public that their managing broker has been in the business 37 years and has sold over 1,250 homes. This is an example of

A

institutional advertising.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Which of the following is a valuable skill for a property manager to have?

A

Knowledge of building systems

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Earl orally agreed to a 18-month lease with landlord Blake. Is this contract enforceable?

A

No, all leases for longer than one year must be in writing to be enforceable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

One of the major considerations in a master plan is

A

the effect of new development on traffic patterns and the environment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The first step in the appraisal process is to

A

state the problem.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

On a $280,000 loan, the lender charges a 2 point service charge. How much does the borrower have to pay for just these two points?

A

$5,600

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The size of jurisdiction’s tax base is derived by

A

subtracting exemptions from assessed values.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Under the _______ of recording, title passes when the conveyance is registered on the title certificate.

A

Torrens system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Which clause protects a lender if he does not want the loan to be assumed by another party?

A

Alienation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Homeowner Louise has been lax in protecting her property rights. According to the ___________, Louise may lose those property rights.

A

Doctrine of Laches

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Bobbie decided to redeem her property after a tax sale. Bobbie exercised her

A

statutory right of redemption.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Of the following liens: a $100,000 mortgage, a $2,500 property tax bill, and a $8,000 mechanic’s lien, and a $25,000 judgment lien, which will be paid off first after a foreclosure sale?

A

The $2,500 property tax lien

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

The cost of doing direct mail advertising depends on

A

the frequency of the mailings.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which of these activities is appropriate to do within the first few days of obtaining a listing?

A

Have the managing broker send a “thank you for listing” letter to the sellers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Broker Torrey hires salesperson Wes as an independent contractor. As an independent contractor, Wes can expect which of the following from Broker Torrey?

A

Performance expectations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Non-judicial foreclosure is required to foreclose on a

A

Deed of Trust.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the most common lease term for space in an office building?

A

3-5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Which form does RESPA require lenders to use to detail the costs that the buyer and seller will pay at closing?

A

Closing Disclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Robert owns his property and enjoys the full bundle of rights. Can he use his property as collateral for debt?

A

Yes, Robert can encumber his property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Given the net income of a property, the appraiser can determine an opinion of the value for that property by

A

dividing by the rate of capitalization.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Which of the following would qualify as an example of retail property?

A

A shopping center

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?

A

Seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

A(n) ________ contract is one that unduly favors the party with superior bargaining power.

A

unconscionable

42
Q

Neal’s home has been foreclosed on and sold at a Sheriff’s sale. The sale brought in $500,000 and the total liabilities on the home were $425,000. Who receives the additional $75,000?

A

Neal

43
Q

Vicky was posing as a customer of Establishment Realty. However, she was really there to see if Establishment Realty was following fair housing laws. Vicky was a

A

tester.

44
Q

Why is designated agency a good alternative to traditional dual agency?

A

Even though the same broker represents each party, both the buyer and seller have a licensee who exclusively acts as their agent in the transaction.

45
Q

Francis just signed the papers on a conventional 30-year, $210,000 loan. He was wondering what type of interest will he be paying on the loan. What is the correct answer?

A

Simple interest

46
Q

What is another common name for the lot and block system of legal descriptions?

A

The recorded plat method

47
Q

Who can qualify for an FHA loan?

A

Anyone with qualified income

48
Q

Carla has been walking across a path on John’s property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla?

A

An easement by prescription

49
Q

What type of agency cannot be revoked by the principal, nor is terminated if the principal dies?

A

Agency coupled with an interest

50
Q

The Quarry Mountain Subdivision requires all properties to have fences that are at least 8 feet tall surrounding each property. This is an example of

A

a deed restriction.

51
Q

The cost to replace an improvement with original materials is known as

A

reproduction cost.

52
Q

A property has a Gross Income Multiplier of 14, and value of $800,000. What is its annual income?

A

$57,143

53
Q

How might a voidable contract become valid?

A

If the party who has reason to disaffirm the contract elects instead to perform it

54
Q

What is the definition of “valuable consideration” in regard to contract validity?

A

Something specifically offered in exchange for something else

55
Q

Why would a property with a rectangular system description also have a metes and bounds legal description?

A

Because the property is irregular in shape

56
Q

Morgan owned a large condominium on the ocean. She died and no legal heirs were found. Who will receive title to the property?

A

The state or county

57
Q

The system of land ownership in the United States is known as what?

A

The allodial system

58
Q

In the appraisal process, looking at the number of recreational facilities, the distances to schools and adequacy of public transportation is called

A

neighborhood analysis.

59
Q

If a cooperative corporation cannot pay its bills, what would happen?

A

The corporation owning the property would be dissolved, and all of the residents could lose their interest in the cooperative.

60
Q

A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have?

A

To sue for specific performance

61
Q

Which statement about a deed in lieu of foreclosure is false?

A

It gives the borrower an opportunity to change the loan terms.

62
Q

A tenant who stays beyond his lease without consent of the landlord is known as

A

a tenant at sufferance.

63
Q

The essential criteria for an acceptable legal description is that it

A

accurately locates the parcel in the opinion of a court.

64
Q

Which of these statements about the Americans with Disabilities Act is TRUE?

A

An apartment manager might be required to allow a tenant with a disability to widen a doorway.

65
Q

Which of the following best describes the principle of conformity?

A

A home maintains its highest value by being in a neighborhood with similar-type housing.

66
Q

How does the Federal Reserve control lenders?

A

They tell lenders what percentage of assets they must keep as reserves.

67
Q

Licensee Alex only represents the buyer in a transaction. What is Alex called in this situation?

A

A single agent

68
Q

Jordan has a month-to-month lease with landlord Greg. What type of lease did Jordan sign?

A

Estate from period-to-period

69
Q

Which of these listing agreement statements is false?

A

The seller can change the listing agreement whenever he or she wants.

70
Q

Which of the following wills may be considered invalid?

A

A will that is not signed

71
Q

A type of mortgage which allows the lender to increase the outstanding balance of a loan up to the original amount of the loan in order to advance additional funds is called an

A

open-end mortgage.

72
Q

Which of the following statements best describes what happens with a judicial foreclosure?

A

The mortgaged property is sold under the supervision of a court.

73
Q

Unlike buyer/seller agency agreements that create _________, the management agreement creates ________.

A

special agency, general agency

74
Q

Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy?

A

Option

75
Q

Broker Jack has an agreement with seller Mauve that says Jack will receive compensation if anyone except Mauve sells Mauve’s home. This is an example of

A

exclusive agency.

76
Q

When the agency relationship has been terminated, the licensee is no longer considered the principal’s agent and does not owe any further duties to the principal except for

A

accounting and confidentiality.

77
Q

What is a forecast of income and expenses that can be projected over five years?

A

Stabilized budget

78
Q

“This property has the best view in the entire county.” This statement is an example of

A

puffing.

79
Q

What type of clause allows a broker to collect a commission for some period of time after the listing expires?

A

A carryover clause

80
Q

Which principle is used with the Sales Comparison Approach to value?

A

Substitution

81
Q

Real estate licensees should know enough about building ordinances to be able to

A

alert clients of potential problems in a home.

82
Q

A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms is a(n)

A

conditional approval.

83
Q

Seller Monica is selling her property to Harriet. What is Monica’s primary responsibility at closing?

A

To deliver marketable title

84
Q

Justin defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Justin’s house sold for $339,000 and the unpaid balance of his loan is $400,000. What must the lender do to recover the $61,000 Justin still owes?

A

Seek a deficiency judgment.

85
Q

Which is false regarding a promissory note?

A

It is the term used for a note that is guaranteed or insured by a governmental agency.

86
Q

The assessed value of Sidney’s home is $350,000 but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does Sidney have?

A

She can file a complaint with the local board of assessment review.

87
Q

What are the primary advantages of PEX piping?

A

PEX piping is able to withstand both high and low temperatures and it is highly resistant to chemicals.

88
Q

How does Planned Unit Development zoning differ from ordinary zoning?

A

It requires that multiple tracts of land be developed according to a single design for efficient use of space.

89
Q

Gerald is 55, single, and resides on his 3 acre property. Why will Gerald qualify for a homestead exemption?

A

Because he lives on the property

90
Q

New salesperson Juliet has been assigned office duty for Saturday and Sunday. What is another common term for office duty?

A

Floor time

91
Q

A(n) ________ is one that conflicts with the ordinances that were enacted after the use commenced.

A

legal nonconforming use

92
Q

Escrow moneys should be held in the broker’s

A

escrow account.

93
Q

Which parties typically purchase title insurance once the transaction is complete?

A

The lender and buyer

94
Q

Which of these is a violation of Sherman Antitrust laws?

A

Market allocation

95
Q

A buyer told broker Lena that she wants to move to a Cuban neighborhood. Then the buyer asked if Lena could show her the best home in a Cuban area. How should Lena respond to this request?

A

Lena should explain to the buyer that she ethically and legally cannot recommend housing based on national origin.

96
Q

Should a licensee who represents both the buyer and seller tell the buyer about material defects on the seller’s property?

A

Yes, any defects known to the broker should have been disclosed to the buyer.

97
Q

A broker induces an owner to sell by telling him that Muslims are moving into the neighborhood. This broker is guilty of

A

blockbusting.

98
Q

Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the grant. What type of estate existed?

A

Fee simple defeasible

99
Q

An income producing property rents for $2,790 per month and the GRM is 97. What is the estimated market value of the property?

A

$270,630

100
Q

Owner Tom decided to lease out his basement to a college student. By leasing the basement, Tom has

A

transferred a portion of his bundle of rights.

Real Estate Express Final (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions