Simulated Exam 1-25

Question 1

Real property that is acquired by a neighbor through natural processes such as erosion is an example of:

Answer 1

Accretion

Question 2

If evidence of active infestation is found, a structural pest control report is required to be provided:

Answer 2

When the home being purchased is financed by a FHA insured loan or a VA guaranteed loan.

Question 3

A purchaser of a condo unit requests a copy of the C,C&R’s. These documents need to be provided within:

Answer 3

Ten days

Question 4

The expression “company dollar” refers to:

Answer 4

Money left over after a salesperson’s share of a commission has been paid.

Question 5

If an appraiser uses improper valuation methods or is negligent in completing a government loan assignment, they may be guilty of:

Answer 5

Violating appraisal ethics & committing a felony

Question 6

The calendar date that is of most concern to an appraiser is the date:

Answer 6

The purchase contract was signed

Question 7

Fee amounts are always

Answer 7

Negotiable and not fixed by law

Question 8

The term “kiosk” refers to a(n):

Answer 8

Open-sided booth

Question 9

Agency relationships may not be solely created by:

Answer 9

TRICK QUESTION
voluntary offer by the agent

An agency relationship cannot be created solely by the voluntary act of only the agent. The formation of an agency relationship requires a written or oral agreement between both the principal and the agent.

Question 10

When representing their client to third persons in a sale, a licensed real estate broker is operating under the law of:

Answer 10

Agency

Question 11

Gloria is considering an income-producing property to purchase as an investment. In analyzing its suitability for investment, what is Gloria most interested in?

Answer 11

The capitalization rate

The annual rate of return on invested capital based on net operating income

Question 12

What occurs when a listing agent deletes provisions on the face of a buyer’s signed purchase agreement and adds copy to replace the deleted material?

Answer 12

Interlineation

The process of modifying wording in a form by inserting additional language between printed lines.

Question 13

A contract has been fully executed when it has been:

Answer 13

Completely and fully performed.

Question 14

Real property that builds up along a riverbank is acquired through:

Answer 14

Accession

Question 15

A metropolitan area where the cities within it have grown together is known as a(n):

Answer 15

Megalopolis

Question 16

When a salesperson’s employing broker dies, the salesperson needs to:

Answer 16

Stop all real estate activity immediately until they find a new employing broker.

Question 17

The final step in the appraisal process is to:

Answer 17

Reconcile the different approaches and arrive at a conclusion.

Question 18

The principle that housing passes down to lower economic groups would be:

Answer 18

Filtering down

Question 19

When a broker solicits and accepts a deposit on the purchase of real property without express written authorization from the owner to sell the property, the broker is:

Answer 19

Acting as an agent for the buyer

Question 20

A real estate broker generally acts from a position of trust for the seller or buyer. This is described legally as a(n):

Answer 20

Fiduciary relationship

Question 21

Nathan agreed to list his property for sale with broker Chan. In the listing agreement, Nathan specified broker Chan is not authorized to accept a deposit towards the purchase price from the buyer. What happens if broker Chan produces a buyer?

Answer 21

If he accepts a deposit, he holds it as an agent of the buyer until the offer is accepted by the seller.

Question 22

What is an individual’s opinion or estimate of a property’s value on a specific date?

Answer 22

Appraisal

Question 23

The employment agreement between a broker and a salesperson needs to be retained by the broker and salesperson for:

Answer 23

Three years from the date of the termination of the salesperson’s employment

Question 24

How soon must a broker deposit a client check that is made out to the broker’s trust account?

Answer 24

Three business days

Question 25

Who must receiver a copy of the structural pest control report?

Answer 25

The buyer