National Real Estate Exam Practice Questions Correct and Verified Answers Graded A

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National Real Estate Exam Practice Questions Correct and Verified Answers Graded A

• Question: A, B and C are joint tenants. C dies. B sells his share to D. What type of

ownership do A and D have? Multiple Choices: A) Joint tenancy B) Tenancy in common C)

Severalty D) Tenancy by the entirety Correct Answer: B) Tenancy in common

• Question: P, Q and R are joint tenants. P wants to sell the property, but Q and R do not.

What can P do? Multiple Choices: A) Evict Q and R from the property B) Forcefully sell the entire property without their consent C) File a suit for partition D) Nothing, all joint tenants

must agree to sell Correct Answer: C) File a suit for partition

• Question: Which of the following statements about an easement is true? Multiple

Choices: A) An easement is a benefit to the dominant property owner B) An easement always restricts the dominant property owner C) An easement is a benefit to the servient property owner D) Easements are illegal in residential real estate Correct Answer: A) An easement is a benefit to the dominant property owner

• Question: A man leaves his second wife a life estate in their home after which the

property goes to his children from his first marriage. The children... Multiple Choices: A) Are the life tenants B) Are remaindermen C) Have no rights to the property D) Hold a

leasehold estate Correct Answer: B) Are remaindermen

• Question: A father gives his son a life estate on a property. The son leases the property.

The tenant dies. What happens to the property? Multiple Choices: A) It goes to the tenant's heirs B) It goes back to the father immediately C) It goes back to the son until he dies D) The state takes ownership of the property Correct Answer: C) It goes back to the son until he dies

• Question: A listing agent went to inspect a seller's property hoping to list it for sale. The

seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is an example of... Multiple Choices: A) An appurtenance B) An encroachment C) An

easement D) A trade fixture Correct Answer: B) An encroachment

• Question: A seller is attending the closing on his property. The title company has

discovered an unsatisfied M&M lien on the property. Which of the following is the most

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likely reason for the lien? Multiple Choices: A) Unpaid property taxes B) An unpaid mortgage loan C) Plumbing work that was completed but never paid for D) Unpaid homeowners association dues Correct Answer: C) Plumbing work that was completed but never paid for

• Question: A tenant is aware that his lease will expire at the end of the month. He has

begun to disassemble his display cabinets and shelves. Which of the following statements about this is true? Multiple Choices: A) The landlord keeps them as they are real property

• The tenant can take these as they are trade fixtures C) The tenant must pay a fee to the

landlord to take them D) They belong to the next tenant who leases the space Correct

Answer: B) The tenant can take these as they are trade fixtures

• Question: A property owner has a waterfront lot on a stream. He has the right to use the

water from the stream. What is this right called? Multiple Choices: A) Riparian B) Littoral

C) Prior appropriation D) Avulsion Correct Answer: A) Riparian

• Question: A property owner has decided to do some landscaping work on his yard. He

has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an example of... Multiple Choices: A) Chattels B) Trade fixtures C) Personal property D)

Improvements Correct Answer: D) Improvements

Question: Under what right can the government change property use from commercial to

residential only? Correct Answer: police power

Question: Ownership of the common areas of condominiums is most likely to be: Correct

Answer: tenancy in common

Question: What should a buyer do to ensure that his is getting the best title to real

property? Correct Answer: get a general warranty deed

Question: Which covenant in a deed guarantees that the owners will not suffer or be

disturbed by any claims on the property? Correct Answer: the covenant of quiet

enjoyment Question: Excess money at a foreclosure sale goes to... Correct Answer: the borrower Question: After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the foreclosure sale. This is called: Correct Answer: right of redemption Question: The required distance between buildings and a federally protected endangered

species wetlands is an example of... Correct Answer: a buffer zone

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Question: A couple purchased a condominium. The complex has an exercise room for all residents. The couple does not use the exercise room and does not want to pay the monthly fee for the use of the facility. What can they do to avoid this fee? Correct Answer: they must pay the fee as they have a tenancy in common interest in all common areas Question: Which of the following is personal property? Correct Answer: a lease Question: A landlord leased space in his new retail property to an inexperienced business person. Based on location and the type of business, the landlord believes it will be a great success. What type of lease can he enter into with the tenant that will allow the landlord to

benefit from the tenant's success? Correct Answer: a percentage lease

Question: A buyer has purchased a property and after closing the seller will continue to occupy the property. This is an example of... Correct Answer: sale and leaseback Question: Your client will be able to qualify for a property they wish to purchase in about 6 months, after they had an opportunity to reduce their consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter into with a seller that will allow them to occupy the property now and purchase it within the 6

months? Correct Answer: lease with an option to buy

Question: Tenants have signed a 3 year lease on a property. In the second year the owner dies and his heirs inherit the property. They give the tenants notice to vacate. What is true?

Correct Answer: the tenants can stay until the end of the lease

Question: A developer decides to build a commercial property in the middle of a

residential subdivision. What is required? Correct Answer: a variance

Question: A zoning ordinance would affect which of the following? Correct Answer: the concentration of housing in a residential area Question: If a person dies without a will, who receives their estate? Correct Answer: spouse and children Question: What are the requirements/ criteria for real estate to have values? Correct

Answer: demand, utility, scarcity, transferability

Question: What principle of value defines the most important factor for appraisal? Correct

Answer: highest and best use

Question: What approach would an appraiser most likely use to value a residential rent

house in neighborhood where a majority of the homes are leased? Correct Answer:

income approach

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Question: A licensed broker is advertising that he will perform a free appraisal if you contact him for a listing appointment. He is not in violation of the law... Correct Answer: if he is a licensed appraiser Question: Which of the following is NOT an example of functional obsolescence? Correct

Answer: deferred maintenance

Question: According to the Statute of Frauds, which of the following leases must be in

writing? Correct Answer: a lease for more than one year

Question: Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next 6 months. What type of contract should he

enter into with the seller? Correct Answer: an option contract

Question: A signed sales contract that has not yet gone to closing is... Correct Answer: executory Question: When does an offer become a contract? Correct Answer: When the offeree gives the offeror notice of the acceptance Question: Which of the following statements is true about the duties of an agent according to the common law of agency? Correct Answer: an agent must treat both clients and customers with honesty and fairness Question: A property manager is hired and signs a management agreement with the owner.

At this time, the property manager is... Correct Answer: a general agent

Question: A buyer and seller have negotiated a contract on the seller's property with a closing set for June 14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this time, what is true? Correct Answer: the contract is voidable by the buyer Question: A licensee is representing a seller in a commercial transaction. The property is under contract and all contingencies have been met. The listing agent learns the State Department of Transportation has authorized the construction of an exit ramp to the interstate right behind the commercial property. The exit ramp will greatly increase the value of the seller's property. What should the agent do? Correct Answer: tell the seller and encourage the seller to complete the negotiated sale Question: A listing agent is showing his listing to a buyer customer and notices a problem with the exterior of the property that he missed when he listed the property. What should he

do? Correct Answer: point it out to the buyer as it is a material fact