# Real Estate Agent License Exam

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#### You are trying to price a property. Five years ago it was sold for \$145,000, but property value in this particular neighborhood have decreased by an average of 5 percent since then. What is the rough value of this property?

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\$145,000 * .95 = \$137,500

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#### The total commission paid a brokerage firm was \$23,000. The firm was paid 6% on the first \$200,000, 4% on the next 200,000 and 2% on the remainder. What was the sale price of the property?

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\$200,000 * 6% = \$12,000 \$200,000 * 4% = \$8,000 \$150,000 * 2% = \$3,000

#### As an agent you received \$1,312.50 as commission for a referral fee. The listing agent paid 25% of her commission for the referral. The total commission paid was 6%, which was split equally between the listing and selling brokerage firms. If the listing agent was paid 50% of her firm's commission, what was the sale price of the property?

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\$350,000 * .06 = \$21,000 \$21,000/2 = \$10,500 \$10,500/2 = \$5,250 \$5,250 * 25% = \$1,312.50

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#### A lot measures 420' x 670' sold for \$633,150. What was the cost per square foot?

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420 * 670 = 281,400 \$633,150 / 281,400 = \$2.25

#### A buyer purchase a home for \$225,000. They have acquired a 30 year loan at 6.5% with 20 % down. How much interest will the buyers pay over the life of the loan?

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To calculate this, you must first determine the amount of the mortgage the buyer is taking. This is done by subtracting the 20% down from the purchase price leaving a note in the amount of \$180,000. Then when you amortize the mortgage you will find the buyer is paying \$229,580.08 in interest over the course of the loan.

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#### The zoning laws in your town require an apartment building to provide two an a half parking spaces for every 1,000 square feet of inhabited space.A local apartment building has 40,000 square feet of apartments. How many parking spaces should it have?

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(2.5 * 40,000)/1,000 = 100 parking spaces

#### The presence of lead paint in a home must only be disclosed if the home is being purchased using an FHA loan.

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Lead paint in a home must always be disclosed.

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#### You referred a client to a lender. In return they sent you note with a \$50 gift card to a local restaurant. Which law makes this kickback illegal?

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The Real Estate Settlement Procedures Act (RESPA) prohibits kickbacks from service providers.

#### John and Leslie are business partners and they decided to list their apartment complex for sale. John met with Susan, an agent, and told him that he and his partner would give her the listing. John met with Susan on Monday afternoon and signed the listing agreement. Leslie was, scheduled to meet with Susan on Tuesday morning but was called into a emergency meeting in another state. Leslie decide to send her friend, Daniella to meet with Susan instead. Daniella signed the listing agreement for Leslie.Susan had no idea that Daniella was not an owner of the property. The status of the listing agreement is:

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The listing must be signed by the parties who have the authority to sell.

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#### When Leonard bought his property he had a 20% down payment and secured a 30 year loan at 7% interest. If his first month's interest was \$1,120.00, how much did he pay for the property?

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\$1,120 x 12 = \$13,440. \$13,440 ÷ 7% = \$192,000. \$192,000 ÷ 80% = \$240,000

#### Amy, Betty and Charlie are siblings and own a property as joint tenants. Charlie decide to sell his share to Larry for a reduced amount. Upon closing, Larry is a

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Joint tenancy requires the unities of time, title, interest and possession. When Jayne sells her property to Maggie, the unity of time and title is breached. Agnes and Zelma are still joint tenants, but Maggie would be a tenant in common with them.