Real Estate Sales Exam Multiple Choice Questions 3 — Questions and Answers
Question 1: Which form of co-ownership requires all owners to hold equal, undivided interests and includes the right of survivorship?
- Tenancy in common
- Tenancy by the entirety
- Joint tenancy (Correct answer)
- Community property
Correct answer: Joint tenancy
Joint tenancy requires the four unities (time, title, interest, possession) and grants the right of survivorship to the surviving co-owners.
Question 2: A homeowner's property is assessed at $180,000 and the tax rate is $12 per $1,000 of assessed value. What is the annual property tax?
- $1,800
- $2,160 (Correct answer)
- $2,400
- $3,600
Correct answer: $2,160
$180,000 ÷ $1,000 = 180 units × $12 = $2,160 annual property tax.
Question 3: The Real Estate Settlement Procedures Act (RESPA) prohibits:
- Sellers from paying closing costs
- Kickbacks and unearned fees among settlement service providers (Correct answer)
- Lenders from requiring escrow accounts
- Buyers from using gift funds for a down payment
Correct answer: Kickbacks and unearned fees among settlement service providers
RESPA Section 8 specifically bans kickbacks and referral fees among lenders, title companies, and other settlement service providers.
Question 4: When a property owner dies intestate and has no heirs, title to the property passes to the state through which process?
- Eminent domain
- Escheat (Correct answer)
- Adverse possession
- Dedication
Correct answer: Escheat
Escheat is the legal process by which a state claims property when the owner dies without a will and without identifiable heirs.
Question 5: Which deed offers the MOST protection to the grantee?
- Quitclaim deed
- Bargain and sale deed
- Special warranty deed
- General warranty deed (Correct answer)
Correct answer: General warranty deed
A general warranty deed contains six covenants, including the covenant of seisin and covenant against encumbrances, providing the highest level of protection against all title defects.
Question 6: An agent tells a prospective buyer that the neighborhood has 'no crime problems' when in fact there is a high crime rate. This is an example of:
- Puffing
- Misrepresentation (Correct answer)
- Blockbusting
- Commingling
Correct answer: Misrepresentation
Stating a false material fact—such as a low crime rate when it is actually high—constitutes misrepresentation, which can expose the agent to civil and disciplinary liability.
Question 7: Under the Americans with Disabilities Act (ADA), which of the following is generally required for commercial properties open to the public?
- Elevators in all multi-story buildings
- Accessible entrances and accommodations for persons with disabilities (Correct answer)
- Dedicated parking in every lot regardless of size
- Braille signage on every interior door
Correct answer: Accessible entrances and accommodations for persons with disabilities
The ADA requires 'places of public accommodation' to remove barriers and provide accessible features so persons with disabilities have equal access.
Real Estate Sales Exam Multiple Choice Questions 3
Which form of co-ownership requires all owners to hold equal, undivided interests and includes the right of survivorship?