Real Estate Sales Exam Multiple Choice Questions 5

Question 1

A property listed for sale has an underground oil tank that the seller is aware of. Under most state disclosure laws, the seller must:

Accepted Answer

Disclose the known material defect to prospective buyers

Answer

Underground storage tanks are material defects that sellers are required to disclose because they can represent environmental liability and affect property value.

Question 2

Which document transfers legal title to real property from the seller to the buyer at closing?

Accepted Answer

Deed

Answer

A deed is the legal instrument that conveys title (ownership) of real property from a grantor (seller) to a grantee (buyer).

Question 3

An agent advertises a property in a way that is true but omits a material fact, causing a buyer to make a decision they otherwise would not have made. This is an example of:

Accepted Answer

Fraudulent concealment

Answer

Fraudulent concealment involves intentionally hiding a material fact that the other party would consider important, even if no outright false statement is made.

Question 4

Which of the following is NOT one of the four unities required to create a joint tenancy?

Accepted Answer

Unity of relationship

Answer

Joint tenancy requires the four unities of time, title, interest, and possession; 'unity of relationship' is not a recognized legal element.

Question 5

A lender charges a buyer 2 discount points on a $250,000 loan. How much does the buyer pay in points?

Accepted Answer

$5,000

Answer

One discount point equals 1% of the loan amount; 2 points × $250,000 × 1% = $5,000.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Multiple Choice Questions 5