Real Estate Agent License Exam: Prepare and Pass

Tenancy by the entirety is

equal or unequal undivided ownership between two or more people

ownership which requires the four unities: Interest, Possession, Time, and Title.

Ownership that's available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties.

Correct! Wrong!

Exclusive agency listing is when

the agent gets paid no matter who sells the property, regardless of whether it's the agent or the seller.

agents get paid only if they sell the property. No fee is earned if the owner alone sells the property.

sellers have the right to use as many brokers as they want. The seller is not, however, obligated to pay any of them if he or she sells the property without the broker's help.

the agent gets to keep everything he can get that's more than the sale price the owner wants.

Correct! Wrong!

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?

$72,500

$130,000

$137,750

$140,000

$145,000

Correct! Wrong!

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

Which types of the following discrimination are prohibited by the Fair Housing Act of 1968? Please select all that apply

Please select 3 correct answers

Number of Children

Age

Religion

Behavior

National Origin

Correct! Wrong!

Read more at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/FHLaws/yourrights

A valid real estate contract must contain which of the following elements? Please select all that apply:

Please select 3 correct answers

Competency

Selection of a title company

An offer and an acceptance

A "legal object", i.e., a property

Agent's information

Correct! Wrong!

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?

$400,000

$450,000

$500,000

$550,000

$600,000

Correct! Wrong!

$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?

$200,000

$250,000

$300,000

$350,000

$400,000

Correct! Wrong!

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

A mother is deeding her mortgage-free house to her son. Is the deed required to show "good consideration" to be valid in the case?

No, because the house does not have a mortgage and there is no lien holder involved.

No, because family transfers are exempt from the law.

Yes, because all deeds must show good consideration to be valid.

Yes, unless she is deeding it to him in her will.

Correct! Wrong!

Select all that apply:

If a deed is valid it must be:

Please select 3 correct answers

Signed

Recorded

Identify the property and parties involved

Witnessed

Correct! Wrong!

Select all that apply:

Of the many expenses involved with owning a house, which of the following are tax-deductible?

Please select 2 correct answers

Real estate taxes

Insurance

Mortgage interest

General home improvement and repairs

Correct! Wrong!

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

$1.50

$1.75

$2.00

$2.25

$2.50

Correct! Wrong!

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?

$134,925.10

$186,475.50

$229,580.08

$321,125.30

$343,180.70

Correct! Wrong!

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.

A person died testate. After an extensive search, no additional heirs found. The person's real property would transfer by

descent and distribution.

escheat to the state.

devise.

demise.

Correct! Wrong!

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?

40

80

100

120

Correct! Wrong!

(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.

True

False

Correct! Wrong!

Lead paint in a home must always be disclosed.

How much time must the parties to a real estate closing be given to review the HUD statement?

3 hours

12 hours

24 hours

3 days

1 week

Correct! Wrong!

Your client buys a house for $195,000. The contract calls for you to equally share a 6% commission with the seller's broker.What is your portion of the commission?

$4,750

$5,850

$6,200

$11,700

Correct! Wrong!

Select all that apply:

A transaction broker is known as a/an

Please select 3 correct answers

intermediary

fiduciary

nonagent

facilitator

agent

Correct! Wrong!

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?

ECOA

Fair Housing Act of 1968

CRA

RESPA

Regulation Z

Correct! Wrong!

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:

valid

void.

unenforceable

voidable

Correct! Wrong!

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

Adverse possession is:

the sudden loss of land by an act of nature like a landslide.

a legal proceeding to divide property owned by two or more people.

giving up property voluntarily to the governmen

When someone uses your property for a period of time and you lose the property or have your rights to the property restricted.

Correct! Wrong!

Fiduciary Duties of a Real Estate Agent include:

Confidentiality

Accounting

Loyalty

All of the above

None of the above

Correct! Wrong!

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?

$190,000

$210,000

$240,000

$260,000

$290,000

Correct! Wrong!

$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

tenant in common with Amy and Betty.

tenant by the entirety with Amy and Betty.

joint tenant with Amy and Betty.

tenant at will with Amy and Betty.

Correct! Wrong!

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.

Real Estate Agent License Exam

Tenancy by the entirety is

Exclusive agency listing is when

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?

Which types of the following discrimination are prohibited by the Fair Housing Act of 1968? Please select all that apply

A valid real estate contract must contain which of the following elements? Please select all that apply:

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?

A mother is deeding her mortgage-free house to her son. Is the deed required to show "good consideration" to be valid in the case?

Select all that apply:

Select all that apply:

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

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?

A person died testate. After an extensive search, no additional heirs found. The person's real property would transfer by

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?

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

How much time must the parties to a real estate closing be given to review the HUD statement?

Your client buys a house for $195,000. The contract calls for you to equally share a 6% commission with the seller's broker.What is your portion of the commission?

Select all that apply:

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?

Adverse possession is:

Fiduciary Duties of a Real Estate Agent include:

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?

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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