NATIONAL REAL ESTATE EXAM PRACTICE TEST {ALREADY GRADED A+ } NEWEST VERSION

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NATIONAL REAL ESTATE EXAM PRACTICE

TEST {ALREADY GRADED A+ } NEWEST

VERSION

• Condemnation is the act of seizing private property from citizens. What gives the

government the right to do this?

• Correct Answer: eminent domain

• A square bedroom measures 10 feet by 10 feet. What is the area of the room?

• Correct Answer: 100 square feet

• A Christian organization owns a fourplex. It wants to rent to only Christian tenants.

Under the federal Fair Housing Act, is this legal?• Correct Answer: Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act

• Which is exempt from the federal Fair Housing Act?

• Correct Answer: renting a room in a house occupied by the owner

• In most cases, broker compensation, as a percentage of home price, falls

somewhere between:

• Correct Answer: 5-7%

6. The Americans with Disabilities Act applies to:

• Correct Answer: privately owned or government-owned public accommodations

• What happens to trade fixtures after a business moves out of a leased property?

• Correct Answer: The tenant removes their trade fixtures and takes them upon

moving out.

• Which of these is an economic characteristic that makes land a distinctive

commodity?

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• Correct Answer: situs

• Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify

for a conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800. What is the maximum amount of additional long-term obligations this borrower may have after PITI?

• Correct Answer: $280

• In a fixed-rate mortgage that is fully amortized, the total amount of interest to be

paid is:

• Correct Answer: predetermined

• The PHYSICAL characteristics of land are that land is indestructible, non-

homogenous, and:

• Correct Answer: immobile

• Which statement BEST defines the term contingency?

• Correct Answer: stipulation that must be satisfied before the contract can be performed

• If a borrower is behind on payments, the acceleration clause gives the lender the

ability to:

• Correct Answer: call the entire loan balance due immediately

14. A metes and bounds legal description always returns to:

• Correct Answer: the point of beginning

• What should a license holder do if a client instructs them to do something that

would discriminate against a protected class?• Correct Answer: advise the client they cannot legally discriminate against certain groups

• What is a novation?

• Correct Answer: the substitution of one contract for another

• A married couple bought a home ten years ago for $400,000. Their neighborhood

has rapidly grown in popularity, and they were able to sell their home this year for $950,000. How much of that money will they be required to pay capital gains tax on?

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• Correct Answer: $50,000

• Which element of a valid contract states that the contract cannot require any

illegal activities or outcomes?

• Correct Answer: lawful objective

• Deanna wants to sue her real estate agent, but finds out that she has no legal

recourse because too many years have passed since the offending incident. What is this an example of?

• Correct Answer: statute of limitations

• Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate

for Pedro's county is 2.375%, what will he pay in ad valorem taxes this year?

• Correct Answer: $6,887.50

• A potentially valid contract in which at least one party has the option to rescind is

described as:

• Correct Answer: voidable

• When you're talking about mortgages, what is another name for an origination fee?

• Correct Answer: points

• Both parties involved in an agency agreement agree to end the agreement early.

What is this called?

• Correct Answer: mutual rescission

• What does a standard title insurance policy do?

• Correct Answer: protects against any defects discovered in the title after closing

• Which term describes the transfer of property from the current owner to another

party by sale or gift?

• Correct Answer: voluntary alienation

• In the sales comparison approach to property valuation, what does the principle of

substitution state?• Correct Answer: The value of a property is only what a consumer would pay to acquire a comparable property.

• Who can require a buyer to purchase homeowners insurance?

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• Correct Answer: lender

• Which of the following statements may represent the unauthorized practice of

law?• Correct Answer: "You should proceed without ordering a new abstract - this title is clear."

• A property owner has the right to tell other people that they cannot trespass on

their property. What is this right called?

• Correct Answer: right of exclusion

• The term for when the client initiates the termination of the agency agreement is

known as:

• Correct Answer: revocation

• Which of the following terms refers to a surveyor's or developer's map that

identifies lots and blocks?

• Correct Answer: plat

32. The statute of frauds requires that real estate agreements:

• Correct Answer: be in writing

• Which type of deed includes the five implied warranties (covenants)?

• Correct Answer: general warranty deed

• Which of these scenarios does NOT violate fair housing law?

• Correct Answer: An agent advertises a senior citizen community with the phrase "no children allowed."

• What is the difference between a bill of sale and a deed?

• Correct Answer: A bill of sale is for personal property; a deed is for real estate.

• A buyer offers additional consideration to add a 10-day option period to the sales

contract. During this period, the buyer can:

• Correct Answer: terminate the contract for any reason

• Brenda and her husband are interested in buying a house that was constructed in

1971 that has all the original paint, windows, and flooring. What is required from the listing agent in this situation?