Real Estate Sales Exam Multiple Choice Questions 3

Question 1

Which form of co-ownership requires all owners to hold equal, undivided interests and includes the right of survivorship?

Accepted Answer

Joint tenancy

Answer

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?

Accepted Answer

$2,160

Answer

$180,000 ÷ $1,000 = 180 units × $12 = $2,160 annual property tax.

Question 3

The Real Estate Settlement Procedures Act (RESPA) prohibits:

Accepted Answer

Kickbacks and unearned fees among settlement service providers

Answer

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?

Accepted Answer

Escheat

Answer

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?

Accepted Answer

General warranty deed

Answer

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.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Multiple Choice Questions 3