Real Estate Quiz 8

Question 1

During a routine audit, all of the following documents will be reviewed by the auditor except:
Select one:
a. Operating account bank statements
b. Signed monthly broker statement
c. Current bank activity report for escrow
d. Lease/rental agreements for rental audit

Answer 1

The correct answer is: Operating account bank statements

Question 2

The sale or purchase of securities by the Federal Reserve System (FRS) involves:
Select one:
a. Liquidity adjustment 
b. Changing the discount rate 
c. Reserve requirements of member banks 
d. Its open market operations

Answer 2

The correct answer is: Its open market operations

Question 3

The three types of narrative appraisal reports include all of the following except:
Select one:
a. Restricted report 
b. Form report 
c. Summary report 
d. Self-contained report

Answer 3

Feedback

The correct answer is: Form report

Question 4

Al, Barbara, and Charlie buy property as Joint Tenants in 2007. In 2008, Charlie sells his one-third interest to Donna. In 2009, Al dies. Which parties now own the property and in what shares?
Select one:
a. Barbara one-third, Donna two-thirds
b. Barbara is the sole owner (100%)
c. Barbara two-thirds and Donna one-third
d. Barbara one-third, Donna one-third, Al’s heirs one-third

Answer 4

Feedback

The correct answer is: Barbara two-thirds and Donna one-third

Question 5

A homeowner may deduct the following items from his or her taxable income:
Select one:
a. Real estate taxes 
b. Mortgage payment 
c. Depreciation 
d. All of the above

Answer 5

Feedback

The correct answer is: Real estate taxes

Question 6

Characteristics of a successful sales associate include:
Select one:
a. Education and age 
b. Empathy and ego 
c. Education, ego, and age 
d. Education, empathy, ego, and age

Answer 6

Feedback

The correct answer is: Empathy and ego

Question 7

The successful leader who possesses character will evoke:
Select one:
a. Respect 
b. Rapport 
c. Compliance 
d. Confidence

Answer 7

Feedback

The correct answer is: Respect

Question 8

Tom purchased a home from Fred for $100,000. Tom assumed a first mortgage of $75,000, and Fred took back a purchase money mortgage for $10,000. Which of the follow is correct regarding the appropriate stamps at closing?
Select one:
a. a) Doc stamp on the deed, intangible tax on the new mortgage, and doc stamp on the new note
b. Doc stamp on the deed, intangible tax on the new mortgage, and doc stamps on the new and assumed notes
c. Doc stamp on the deed, doc stamps on the new and assumed notes
d. Doc stamp on the deed and intangible tax on the new mortgage

Answer 8

Feedback
The correct answer is: Doc stamp on the deed, intangible tax on the new mortgage, and doc stamps on the new and assumed notes

Question 9

Clark and Ellen owned their principal residence for four years when they sold in 2009 for $650,000. If they bought the property for $500,000, how much is their recognized gain?
Select one:
a. $0 
b. $75,000 each 
c. $150,000 
d. $650,000

Answer 9

Feedback

The correct answer is: $0

Question 10

Steve is a sales associate who owns a real estate brokerage corporation. Which of the following statements would best apply in Steve’s situation?
Select one:
a. This is permissible provided Steve owns stock in the corporation and is not registered as an officer or director
b. This is permissible provided Steve owns all of the stock in the corporation and is not an officer or director
c. This is permissible provided Steve owns all of the stock in the corporation and does not act as the president
d. This is not permissible since sales associates cannot be officers or director of a real estate brokerage corporation

Answer 10

Feedback
The correct answer is: This is permissible provided Steve owns stock in the corporation and is not registered as an officer or director