Real Estate License Practice Test – Brokerage Responsibility and Agency Management
How many square feet in one acre?
There are 43,560 square feet in an acre.
Mr. and Mrs. Conners sold their home and paid a 8% commission to their realtor. Assuming no other fees, if they walked away from the sale with $306,000, about how much did their house sell for?
To solve this problem, figure out what the seller had left = 92% of the sale. To set up the equation $306,000 is 92% of x, our unknown value. x =306,000/0.92=332,608.696 round for x= $332,600.00
Which of the following is a violation of the Fair Housing act?
According to Fair Housing laws, a handicapped individual who needs a service dog is permitted to have one even if animals are not generally allowed on the property. However, the person is responsible to pay for any damage the animal causes when their tenancy is up. In new multiple-story housing properties, accommodations must be made on the first floor only.
According to Fair Housing laws, who of the following is considered disabled?
According to Fair housing laws, alcoholics are considered disabled, but other potentially vulnerable populations, such as drug addicts, convicts, and transvestites, are not.
Sarah owns a warehouse and has decided to sell it as an open listing. She has contacted three brokers to sell it for her, Brokers A, B, and C. If Broker B makes the sale, who gets the commission?
In an open listing, whichever broker sells the property gets the commission.
What information would be unethical for a listing agent to share with a potential buyer?
It is inappropriate for a listing agent to tell a prospective buyer personal information about the seller, even if it may encourage a sale. The only exception would be in the case of a seller instructing the agent to do so. Doing so would be a confidentiality breach on the part of the listing agent. The broker should answer all questions related to the property honestly.
A subdivision has a rule that each home in the neighborhood be at least 2,500 square feet. This is an example of which concept?
Restrictive covenants are created by neighborhood developers or associations to ensure that the neighborhood maintains certain standards. Examples include minimum housing size, restrictions on architectural style, or mandated underground sprinkling.
Which of the following describes a transaction brokerage?
In a transaction brokerage, the broker may help with general information or services, but she is not looking out for the specific interests of either the buying or selling party.
Who takes the biggest risk in an open listing?
In an open listing, the seller will only pay the agent if the agent finds the buyer. Because the seller can have many agents in an open listing, only the agent who finds the buyer will be compensated. This means the agents who do not produce a buyer will receive no compensation.
An agency contract is being terminated. In which scenario might there be damages owed to one of the parties?
Agents and owners may resign from a sale, but they may be liable for damages due to breach of contract. However, if there is a legally sound reason for resignation, such as the owners requesting the agent do something illegal or the agent not acting in the sellers best interest, there is no penalty for resignation. “Being overloaded with homes to sell” would not be considered a justifiable reason to end the contract, so the agent may owe the sellers some type of damages. Bankruptcy, death, legal incompetence, and multiple claims on the title all automatically terminate the agency relationship by law.
A reconveyance deed ____.
The trustee is a third party who has the power of sale without court approval. When the lien is paid in full, a title previously in the form of a trust deed becomes reconveyed through new deed.
When dividing a single plot of land into two or three units, the process is called ____, and the units are called ____.
When dividing a land into less than four units, partitioning divides the land into parcels. With more than four units, the land is subdivided into lots.
A reverse mortgage ____.
A reverse mortgage is an option for individuals 62 or older who want to transform equity in their property into cash through a mortgage.
Real property is defined as ____.
As opposed to personal property, real property is land and everything permanently attached to it.
____ are rights and privileges belonging to the land.
All rights and privileges belonging to the land (air, soil, water, etc.) are appurtenances.
Which of these is a fixture?
Fixtures are articles of personal property that are attached (screwed in, etc.) and become real property. When window blinds are screwed into the house, they become part of the improvement that is part of the real property.
A ____ is a promise of real property as security for a loan.
The legal definition of a note, as it applies to Real Estate, is a promise of real property as security for a loan. While the complete term is promissory note, today’s professionals simply use the term note and you should know that it refers to promissory note. The word promise in the question was a clue to the correct answer.
All of these are good examples of severance except ____.
Severance is converting real property to personal property. When it is removed, it turns back into personal property.
Which lien is required by law to be paid first?
Government entities make sure they are the first ones to get a crack at the money when repayment becomes possible.
Which of these is not a type of leasehold estate?
There is no such estate as “estate in perpetuity.” All other answer choices are types of leasehold estates.
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