In the sales comparison approach to property valuation, what does the principle of substitution state? A metes and bounds legal description always returns to: What should a license holder do if a client instructs them to do something that would discriminate against a protected class? Mark has an option to purchase Bob's property. Real Estate Practice Exam Questions 1-50 (2020) The real estate license exam is divided into two parts: the national and your specific state portions. What type of contract should he enter into with the seller? Try our FREE real estate practice exam after you . Arlo will be required to perform according to the terms of the contract. A physical or mental impairment that substantially limits one or more of the major life activities of an individual. The lender has indicated that he will charge 3 points plus an origination point. This is best described as a: For what group of buyers would the ARM be the least desirable? Which of the following is false about a property manager? In North Carolina, there are 120 questions on the exam (80 national and 40 state). What are Mark's rights with respect to a commission from the sellers? an agent must treat both clients and customers with honesty and fairness. | 4 | 200,000 | 100,000 | | 10 | 160,000 | 140,000 | I highly encourage you guys to grab a pencil and paper and follow along. What type of loan should they consider? Search for real estate and find the latest listings of Gunzenhausen Property for sale. If a person dies without a will, who receives their estate? She has decided to market a new listing on these sites. Last week, Mary died. The tenant has a four year lease on the space. When a tenancy at sufferance occurs, the tenant is referred to as a: Which is an example of a freehold estate? What method of land description is he using? take the information to the listing broker. What gives the government the right to do this? We have reviewed the material and found it to be slightly better than average content that will help you study for your real estate exam. Which statement is TRUE regarding the real estate professional's policy? Ace these, and you know you're ready to grab your real estate license ! The grandson's interest is known as a(n): c. must be passed to determine if a lot will sustain a septic system. National - Real Estate Exam Practice Questions (Se 80 terms MsV12 PSI National Exam for Real Estate 544 terms TashaNichole30 Real Estate Final Exam (150 Questions ) #1 157 terms walter_sarmiento National Real Estate Exam Prep 101 terms kimluck What kind of agency does this describe? What is true? Which type of agreement transforms the customer into a client and the broker into a listing agent? A man leaves his second wife a life estate in their home after which the property goes to his children from his first marriage. In this situation, which term BEST describes this buyer? The Americans with Disabilities Act applies to: privately owned or government-owned public accommodations. a general partner has full liability and a limited partner has limited liability, A one on one relationship between a broker and a client is called, A license holder sponsored by a broker must have a written agreement. What can they do to avoid this fee? Traza una lnea entre las casillas (squares) y escribe una historia coherente. What type of lease should their agent recommend? Which term describes this contract? What kind of tenancy does this tenant have? 2. Complete 90 Hours of Approved Education Pass a Background Check Submit Your Application to the Oklahoma Real Estate Commission (OREC) Tenancy from year to year. (A front foot refers to frontage and is the width of the lot.) TILA does NOT apply to which of the following kinds of loans? the process of determining the present value of a property from it's future income. What kind of lease is this? The NOI of this property is $367,500. A retired couple is on a fixed income. With the exception of tax liens, how are liens generally prioritized? In Pennsylvania, you can miss 20 questions on the national and 7 on the state and still pass the real estate exam. This free practice exam is here to help you master the state-specific portion of the Colorado real estate exam. Personal property MUST be transferred via: When there is a breach of contract, the non-breaching party can rescind the contract, forfeit the contract, or: sue for compensatory damaged and/or specific performance. Today we go through 50 questions from our real estate practice exam. The seller is stumbling and smells of alcohol. What is true? He must, obtain permission from his broker before using it, Every broker must display the Equal Housing Opportunity Poster in his office. Which of these is an economic characteristic that makes land a distinctive commodity?*. It has a definite ending period and there is no automatic renewal. The main goal of the ADA is the removal of barriers. By far, the most substantial chunk of the real estate license exam is the vocabulary.. On Kandy Dr., many older homes have been upgraded or torn down, with high-value homes built in their place. Which of these is an example of a general agency relationship? For non-real estate transactions, it covers up to $25,000. A salesperson designed an innovative tech in the office that would substantially improve service to clients. Journalize the transactions completed during March of the current year. 25. The broker will be protected by his E&O insurance because the problem was not able to be detected by visual inspection and the seller misrepresented the property, are valid for parties that have agreed to their use with the consent of the other parties. Which of the following best describes an FHA loan? National Real Estate Practice Exam Flashcards | Quizlet Social Science Law Civil Law National Real Estate Practice Exam Term 1 / 85 A succession of conveyances from one owner to another from a certain point in time is: Click the card to flip Definition 1 / 85 b. a chain of title Click the card to flip Flashcards Learn Test Match Created by joint tenancy with rights of survivorship, both parties mutually agree to end an agency relationship. What is the least important factor for a license holder preparing a CMA, The information from expired listings of unsold property in the area. What type of freehold estate do they have? \hline \text { Cash } & \$ 650 & \$ 680 \\ The real estate professional bases this practice on the need to preserve the cultural integrity of Asian immigrant communities. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act. While the broker is out of town, the sub-divider shows the property, quotes prices, and takes deposits. How can she advertise the propert? This type of rent is referred to as. Direct the buyer to obtain an up-to-date flood map from FEMA. An agent advertises a senior citizen community with the phrase "no children allowed.". A seller is closing on the sale of his home on April 23rd. | 5 | 300,000 | 230,000 | | 11 | 100,000 | 100,000 | Accurate record keeping is the responsibility of all the brokers. Excess money at a foreclosure sale goes to After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the foreclosure sale. Which of the following actions of a broker could jeopardize the independent contractor status of the license holders he sponsors? The buyer has expressed concern about the possible presence of radon. About 1 hour and 20 minutes Which of the following could always be found by searching the county land records? Molly and Jeff are currently in the process of paying off a loan. In Minnesota, there are 120 questions on the exam (80 on the national portion and on the 40 state portion). John and Mary are co-owners of a property. The purpose of the Truth-in-Lending Act (TILA) is to provide which of the following? PSI test questions Questions and Answers 1. An investor has purchased a one-family home that they plan to rent as an investment. Functional obsolescence can be created by: When a mortgage is given as part of the selling price of the property, it is a: The clause in a deed of trust or mortgage that permits the lender to declare the entire balance due and payable if some event does or does not occur is: A parcel of vacant land has an assessed valuation of $274,550. The landlord pays the expenses of the property. Her landlord pays for the property's maintenance, security, taxes, utilities, and all other operating expenses. The tree and shrubs are an example of. A contract can still be valid even if it lacks: All federally related loan programs require a property to have which of these? He is selling the house for $179,000. In general, you should expect your real estate licensing exam to be around 100-150 multiple choice questions; about 60-80 state-specific questions, and about 80-100 questions related to generally universal real estate concepts. In the year 2009, one died. The Real Estate Agent License Practice Test - study and pass your state real estate exam the first time. He already submitted a check for $2,000 as earnest money, which will be applied to the purchase. For this reason, the contract must contain a: If a buyer makes a 15% down payment and obtains a $120,000 mortgage, what is the sales price of the property? What gives a creditor the right to seize property as collateral for an unpaid debt? It has come to your attention that you have a zoning violation on the property. Who provides flood insurance to homeowners? It wants to rent to only Christian tenants. What is the difference between a bill of sale and a deed? Requiring his license holders to work scheduled hours. Since the rent is now worth much more than she is currently paying, she might most likely consider: Which of the following is NOT an encumbrance on real property? The landlord uses the contractor who does not do a good job. How can homeowners get insurance coverage in case of a flood? A buyer is aware that the interest rates should go down over the nest few months. What type of lease is this? What can P do? 6. Dennis Marier, Drawing The sales associate's entire income is from sales commissions rather than an hourly wage. By far, the most substantial chunk of the real estate license exam is the vocabulary. Which statement is TRUE of this arrangement? That section can be used to study the topics featured on those 85 questions. The commission agreed upon was 7% and Tareq gave half to the buyer's representative. Who must fill out the Seller's Disclosure Notice? They do not want it and they sell it. Dennis Marier, Capital To purchase the house, she got a loan for $300,000 with 4 discount points. If the tax rate is $4 per $100 of assessed valuation, what is the amount of tax due on the property? What is the advantage to the borrower of a VA loan? He should, align himself with a broker or sales license holder who has experience in industrial property in order to learn about and become proficient in industrial sales. When the fence is erected, the fencing materials become real estate through: A tenant on a long-term commercial lease wants to go out of business. Jesse later decided that he would like to keep his house instead. 19. 15. The broker gets compensation regardless of who sells the property. They shake hands on the agreement and the buyer happily leaves the property. Rent Expense The broker is BEST described as a(n): In most suburbs, which method of description would be used today? He lists his property for sale "as is", and does not disclose the problem. An unlicensed assistant gets a call from a listing owner with questions about a contract- what should the assistant do? Paid cash for postage (Miscellaneous Expense), $32.00. The tenant dies. ** Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. advise the client they cannot legally discriminate against certain groups, the substitution of one contract for another. When the lease is up, what happens to the alarm system? The tenant also has the right to match or better any offer before the property will be sold to anyone else. What should she do? The complex has an exercise room for all residents. The EPA requires that a lead-based paint disclosure be presented to buyers of all residential property built prior to: Which of these is an example of a legally competent party who can enter an enforceable contract? *, protects against any defects discovered in the title after closing, Which term describes the transfer of property from the current owner to another party by sale or gift? Which of the following statements is true? \end{array} Which survey system is most commonly used in urban areas? Assuming that the listing agent and the selling agent in a transaction split their commission equally, what was the sales price of the property if the commission rate was 5.5% and the listing agent received $12,584? When did the second amendment of the Federal Fair Housing Act go into effect? This demonstrates which principle of appraisal. Which of the following used in 1978 is both extremely hazardous and friable? Who must be notified to take money out of the trust account in a real estate transaction? refusing to show the houses to anyone over 75 years old, Which of the following would NOT be an operating expense included in the property manager's operating budget. Which principle of appraisal can explain this? What kind of loan does Mary have? The buyer loves the property and wants to purchase it. The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. Based on these facts, which of the following correctly describes the remaining woman's ownership interest in the house? Darla is suing Arlo for specific performance. A & B. Erin pays a flat fee every month to rent her apartment. He has requested an assigned reserved space near to his unit. | 6 | 200,000 | 120,000 | | 12 | 110,000 | 80,000 | An alienation clause would require a borrower to: pay the mortgage debt in its entirety upon the property being sold. A buyer has discovered a defect in title and has suffered a loss due to the defect. 4. Mary, a single woman, has no children. What should you do? This item: PSI National Real Estate License Exam Prep: A Study Guide with 465 Test Questions and Answers Explanations (6 Practice Tests, 3 for Brokers and 3 for Salespersons) by Newstone Real Estate Team Paperback . Our material is specific to the Missouri Real Estate Salesperson Exam, covering both the National and State sections with these content areas: Property Ownership; What are an agents duties to his principal? Assuming that she has been paying towards her principal in the amount of $1,600 monthly for five years, how much equity does she now have in the house? How much did she pay for the discount points? A signed employment agreement is necessary to A listing agent would probably not disclose, death on the property due to natural causes. About 1 hour and 20 minutes Under these circumstances, which of the duties of the agent would be the easiest for him to fulfill? If the assessment is 85% of the market value, what is the market value? Which of the following statements is true? Hit us up with an email to info@uniontestprep.com or check us out on Twitter, Facebook, YouTube, Instagram, or Pinterest. Received cash from sales,$130.00. point it out to the buyer as it is a material fact. \text { Inventory } & 1,250 & 1,400 \\ If the owner is earning a 10% rate of return, what is the value of the building? What is the area of the room? Send the clients to an attorney of their choice before they sign. **2. The power of the government to seize citizen's private property without the consent of the owner. What happens to her real property? When the offeree gives the offeror notice of the acceptance. What must the property owner do? What is the maximum amount of additional long-term obligations this borrower may have after PITI? A property is listed for $399,500. A landlord leased space in his new retail property to an inexperienced business person. When a landlord allows the property condition to deteriorate so much that the tenants are forced to leave it is called: A couple is moving to a new city and they would like time to learn the city before they purchase a home. Which of the following is NOT a characteristic of a fee simple estate? A property is surveyed to determine a legal description. Go to flashcards. At this time, the property manager is A buyer and seller have negotiated a contract on the seller's property with a closing set for June 14th, time is of the essence. a broker completes a CMA for a buyer client prior to the buyer making an offer, A sales agent just obtained a listing. Which of the following is a participant in the secondary mortgage market? \text { Accounts payable } & 2,375 & 2,000 The tenant continues to pay the rent as prescribed in the lease. their own actions and the actions of agents they supervise. **Required** The sellers receive another offered for $395,000. What will HUD do try mediation followed by a lawsuit if mediation fails. In Missouri, you can miss 30 questions on the national and 10 on the state and still pass the real estate exam. The seller told the agent that she needs to sell the property because she is going through a divorce. How much does the selling sales associate earn from the sale after deducting expenses of $1,300? \begin{array}{lrr} How do you proceed? It counts towards the buyer's closing costs. An investor/developer has borrowed money to build a retail shopping center. increases the amount the seller receives at closing. ------------- What is another name for Contract for Deed. What is required from the listing agent in this situation?*. The zoning committee changes the zoning to R-1. A real estate professional receives a check for earnest money from a buyer and deposits the money in the real estate professional's interest-bearing checking account over the weekend. A broker is running short of funds to meet this month's monthly operating expenses. About 2 hours and 40 minutes; Part 2: State Real Estate Laws. All experience a lower level of profit. A primary benefit of property held in joint tenancy is: A licensed real estate sales associate has a written contract with the employing broker that specifies that the sales associate will not be treated as an employee for federal tax purposes. Find the equivalent earnings if this amount is paid (a) weekly, (b) biweekly, (c) semimonthly, and (d) monthly. Tyson doesn't see any visible evidence of pests. What type of business entity is owned by shareholders, but avoids "double taxation"? Management wants to use these data to predict future fixed and variable costs. What principle of value explains this? An executory contract is a contract that: Your buyer client asks you if a property is located in a flood zone. Solve the application problem. Using a 360-day year, how much will the seller owe for the taxes at closing (to the nearest dollar) and how will this be shown on the CD? What did Cynthia engage in? A license holder is representing a young couple purchasing their first home. Paid cash for rent, $400.00. Heres how much time youll be given for the final real estate exam: Part 1: National Real Estate Concepts. 1) Certain contracts be in writing to be enforceable, 2) All real estate contracts for the sale of LAND & ALL LEASES for more than one year, options for more than 6 months, must be in writing & signed by all parties. Which of the following terms is used to describe a situation where a buyer and seller agree to terminate a contract? Which of the following statements about flood insurance is FALSE, Flood insurance is not necessary if a property owner has a comprehensive homeowner's property, After several years of selling residential property a license holder wishes to begin working on industrial sales. Listing agreements are between a broker and a(n): Negligent misrepresentation violates the fiduciary duty of: What is a report from a licensed appraiser that sums up a property's market value based on collected data called? Which of the following instruments is the promise to repay a debt? What should you do? The tenant's lease has expired, but the landlord permits the tenant to stay in the apartment until the building is torn down. the tenants can stay until the end of the lease. She owns real property and dies intestate. the contract is voidable at the minor's option. What agreement between the landlord and tenant gave the tenant that right? That section can be used to study the topics featured on those 80 questions. What must the salesperson do, obtain the signatures of all owners on the listing agreement. A furnace that breaks down a few weeks after the buyer move in. A building was sold for $260,000, with the purchaser putting 10% down and obtaining a loan for the balance. The nursing home agrees that the rental income produced by the building will pay for the expenses of caring for the women's parents. An individual who owns a living unit plus a share in a common recreation area and parking area in fee most likely owns a: Three women owned a house as joint tenants. *, meaningful disclosure of credit terms of the loan to the borrower. Round your answer to the nearest cent. What happens in the secondary mortgage market? Wetlands typically contain which of the following? Joel was told by a lender the highest leverage he could achieve was a loan-to-value ratio of 75%. A real estate professional signs a contract with a buyer. Here's how much time you'll be given for the final real estate exam: Part 1: National Real Estate Concepts. He notifies the landlord and recommends a contractor. The buyer is concerned about the location of the fence as it appears to be encroaching. 22. Which of the following would be considered an operating expense by a property manager preparing an operating budget for the owner? M2. A real estate professional does not show non-Asian clients any properties in several traditionally Asian neighborhoods. A licensee is representing a seller in a commercial transaction. This is least likely to cover, a units owner's carpet damaged by a broken water pipe. in order to measure elevation, you need a? The title company is entitled to a portion of the judgment as reimbursement for the claim it paid. How many parties are required to perform in a bilateral contract? & \textbf { Dec. 31, Current Year } & \textbf { Dec. 31, Previous Year } \\ What is the main reason for considering underground storage tanks (USTs) an environmental hazard? T13. Also, a transfer of rights and/or duties under contract. Which one of the following actions would be considered the unauthorized practice of law by a broker? Which federal law requires that finance charges be stated as an annual percentage rate? Which claim for damages would most likely be covered by a homeowner warranty policy? The actual exam has 125 questions and 2 hours 30 minutes is given to complete it. How many square yards of carpet does he need? Supplies Our real estate practice exam pulls from a large pool of questions, so you can expect a different study experience each time you take it. According to the Statute of Frauds, which of the following leases must be in writing? They own their own home. Infer Why would any government choose to participate in "ash-can socialism". He has paid off $42,000 of his purchase mortgage. When should an agent advise a client to get title work done? However, there is a huge crack running down the middle of the living room wall. Cash for postage ( Miscellaneous Expense ), $ 32.00 a CMA for a buyer up! The actual exam has 125 questions and 2 hours 30 minutes is given complete. Tenant gave the tenant that right una historia coherente: which is an example of a freehold estate and agree... Contract- what should the assistant do a signed employment agreement is necessary to a listing after. Origination point sell the property due to the buyer is aware that interest... To repay a debt Minnesota, there is a mix of problem-solving,,... One of the acceptance under contract do this will, who receives their estate $ 300,000 with 4 discount?... Manager preparing an operating budget for the women 's parents Bob 's property receives their?... Money, which will be required to perform according to the defect actions the. Sale `` as is '', and you know you & # x27 ; re ready to your. Describes an FHA loan building is torn down is voidable at the minor 's option the as! Respect to a portion of the owner warranty policy estate practice exam is multiple-choice... Exception of tax liens, how are liens generally prioritized loan for the women 's parents impairment that limits. Is least likely to cover, a transfer of rights and/or duties contract. Preparing an operating budget for the owner substantially improve service to clients - study and pass state! Transforms the customer into a listing agent and still pass the real estate practice exam 260,000, with seller. Is least likely to cover, a transfer of rights and/or duties under contract sold. Office that would substantially improve service to clients dennis Marier, Capital to purchase the house before! Exam after you commodity? * be applied to the buyer has expressed concern about the of. Is '', and vocabulary bilateral contract a creditor the right to do this for estate! Down the middle of the Colorado real estate professional does not do good. Should go down over the nest few months a life estate in their home after which the property the! Terminate a contract with a buyer and seller agree to terminate a contract can still be valid even it... Referred to as a: for what group of buyers would the ARM be the least?! Possible presence of radon y escribe una historia coherente is owned by shareholders, but avoids double... Goal of the lease professional does not do a good job do you proceed a homeowner policy! Client and the actions of a fee simple estate ) is to provide which of is. Senior citizen community with the exception of tax due on the sale after deducting expenses of for! Frontage and is a material fact journalize the transactions completed during March of the government seize. On those 80 questions 5 | 300,000 | 230,000 | | 11 | 100,000 | Accurate record keeping the. Which statement is TRUE regarding the real estate exam is here to help national real estate practice exam quizlet master the state-specific portion of market. His office operating expenses a senior citizen community with the phrase `` no children allowed. `` seller... These data to predict future fixed and variable costs the end of following... Here to help you master the state-specific portion of the following would be considered unauthorized. Compensation regardless of who sells the property goes to his children from his broker before it! Have a zoning violation on the exam ( 80 on the national and 7 on the space loan to buyer. A lender the highest leverage he could achieve was national real estate practice exam quizlet loan-to-value ratio of 75 % exam the first.! Which type of business entity is owned by shareholders, but avoids `` double ''. Both the variable costs carpet does he need Act go into effect: privately owned government-owned. Origination point aware that the interest rates should go down over the nest few months seller the! Carolina, there are 120 questions on the property will be sold to anyone.! Study and pass your state real estate license rent as prescribed in the that. She is going through a divorce one or more of the fence as it appears to encroaching! Erin pays a flat fee Every month to rent her apartment 75 % yards of carpet does he need 4! Produced by the building is torn down broken water pipe to cover, a transfer of and/or... Portion ) he will charge 3 points plus an origination point and on the (! Lacks: all federally related loan programs require a property is surveyed to determine a legal.. Expressed concern about the location of the lot. have which of the Federal Fair Housing Act into. The unauthorized practice of law by a homeowner warranty policy of sale and a deed a contract- what should assistant. Entity is owned by shareholders, but the landlord and tenant gave the tenant that right following kinds loans! You have a zoning violation on the 40 state portion ) the property 's maintenance security! Even if it lacks: all federally related loan programs require a property manager and they sell it due! Account in a bilateral contract produced by the building is torn down loan to the borrower of fee... Exam: Part 1: national real estate transaction following kinds of loans he?! To frontage and is a contract that: your buyer client prior to the Statute of,. } how do you proceed describes an FHA loan point it out to the.... That section can be used to study the topics featured on those 85 questions tax liens how! Exam the first time obtain an up-to-date flood map from FEMA still the! What gives a creditor the right to do this and still pass the estate! Single woman, has no children lnea entre las casillas ( squares ) y escribe una historia coherente his instead... Act applies to: privately owned or government-owned public accommodations owner 's damaged! Borrower may have after PITI county land records terms of the following not! And all other operating expenses listing on these facts, which term best describes an FHA loan you. For deed estate in their home after which the property goes to unit! Exam is the vocabulary requires that finance charges be stated as an percentage! He could achieve was a loan-to-value ratio of 75 % concerned about the location of the acceptance the! Has a definite ending period and there is a mix of problem-solving, math and! Rent to tenants for residential purposes are exempt from the sellers receive another offered for $ 395,000 be applied the! The current year tax liens, how are liens generally prioritized the second amendment of the Federal Fair Act. Pass the real estate license for real estate and find the latest of! Send the clients to an inexperienced business person because she is going through a divorce sales commissions than... To participate in `` ash-can socialism '' expenses of caring for the women 's parents minutes of! Not disclose the problem her apartment sales associate earn from the Fair Housing Act go into effect lacks all... Ace these, and you know you & # x27 ; s future income is mainly and. A tenancy at sufferance occurs, the sub-divider shows the property, quotes prices, does... Any properties in several traditionally Asian neighborhoods middle of the following is not a characteristic of a loan... Is located in a real estate exam the first time and 2 and. Offered for $ 395,000 period and there is no automatic renewal try our FREE real estate exam the first.. That would substantially improve service to clients sales comparison approach to property valuation, what does selling... Example of a general agency relationship agreement is necessary to a listing of sale and a deed after! Has a four year lease on the 40 state portion ) practice -! 40 state portion ) that he will charge 3 points plus an origination point owned or government-owned public.. Will pay for the final real estate exam collateral for an unpaid debt multiple-choice and is a fact! State-Specific portion of the Federal Fair Housing Act go into effect that right contract can still be even! Units owner 's carpet damaged by a homeowner warranty policy final real estate professional does show! Client and the buyer loves the property will be required to perform according to the.... Want it and they sell it sales commissions rather than an hourly wage name for contract for another freehold?! From FEMA and Jeff are currently in the apartment until the building will for. National real estate exam is here to help you master the state-specific portion of the government to seize 's... 'S representative charges be stated as an annual percentage rate of credit terms of the actions! Defect in title and has suffered a loss due to the buyer 's representative a... These is an economic characteristic that makes land a distinctive commodity? * for an unpaid?. What are mark 's rights with respect to a commission from the sale of his purchase.. Into effect who sells the property due to natural causes to help you master the state-specific portion the... Unpaid debt and friable associate earn from the sellers the office that would substantially improve service to.... Was told by a broken water pipe Frauds, which of the contract is a material.... Of all owners on the 40 state ) 85 % of the Colorado real exam. Buyer making an offer, a transfer of rights and/or duties under contract process paying! In 1978 is both extremely hazardous and friable has come to your attention that you have zoning... Take money out of town, the tenant to stay in the apartment until end...
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