Which example of puffing would be acceptable?

This house has the most beautiful view

A broker signs an exclusive contract to sell a house. Two weeks later the owner sells it to a neighbor.

the broker will not earn commission

A buyer dies before he accepts an offer, his heirs decide not to purchase the property. Is this legal?

yes, the contract terminates upon death of the buyer

What is true regarding offers?

the agent must present all offers until closing day

Which is an example of misrepresentation found in Blue Sky Laws?

This house will make 10 times your investment

Tim is 65 years old. He needs money to cover his medical bills. His son suggests that he look into a reverse mortgage.

Tim will be eligible for a reverse mortgage since he is 62 or older

The foundation of a house has problems. A client asks their sales agent to keep it a secret. The sales agent must...

disclose the information to potential buyers

combining two or more parcels of land

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Real Estate Practice Test

100 termsStudBud Administration138 plays

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Questions 100

Answers

1
? is used by appraisers to estimate the value of real estate which produces an income. It is based on future benefits.
Income Approach
Cost Approach
Market Data Approach
depreciation
2
A buyer wants to give a boat as an earnest money deposit. Can he do this?
yes, anything of value counts
no, it must be money
yes, if the seller will accept
only if the seller lived on a lake
3
Which is not true about trust funds regarding the sale of personally owned properties?
open your own trust account with your broker’s permission and register
use your own personal account
list with another broker and put funds in his account
list with your broker and put funds in his trust account
4
Which example of puffing would be acceptable?
This house has the biggest basement on the street
This house will never have any problems
This has has the largest master bedroom on the block
This house has the most beautiful view
5
Who makes the final decision on a loan approval?
the buyer
the lender
the trustee
the underwriter
6
Which type of co-ownership can have unequal percentage ownership
community property
tenants by the entireties
tenants in common
joint tenants
7
Earnest money is required for a valid binding contract
False
True
8
A Transaction Broker only works with customers
True
False
9
Which appraisal approach is used most with residential purchases?
Income Approach
Cost Approach
Competitive Market Analysis approach
Market Data Approach
10
In an exclusive right to sell listing, a broker must prove that he/she was the procuring cause to the sell.
True
False
11
Which type of listing is illegal in Georgia?
Exclusive Right to Sell
Exclusive
Open
Net
12
A broker signs an exclusive contract to sell a house. Two weeks later the owner sells it to a neighbor.
the broker will still get commission
the broker can sue the buyer for a commission
the broker will split the commission with the owner
the broker will not earn commission
13
In the Government or Rectangular Survey, properties are described as they relate to base lines and meridians.
False
True
14
A(n) ? is a mortgage with an interest rate that changes over time according to the Index.
Adjustable Rate Mortgage (ARM)
Graduated Rate Mortgage (GRM)
Home Equity Line Of Credit
Partially Amortized Mortgage
15
What is the formula for Intangible Tax?
TB \div 365 x days
GRM x Monthly Rent = Value
SP(-AL) \div 100 x $.10
LA \div 500 x 1.50
16
FHA currently only allows loan assumptions if the borrower does a full qualified assumption.
False
True
17
A buyer dies before he accepts an offer, his heirs decide not to purchase the property. Is this legal?
yes, but they will have to take the seller to court
yes, the contract terminates upon death of the buyer
No, a sales contract is enforceable on heirs
No, the offer is binding to the buyer
18
A “fixture” is personal property that becomes real property
False
True
19
Developers use ? with partial release clauses to allow them to sell off one lot at a time.
Blanket Mortgages
Release Mortgages
Interim Mortages
Deed of Trust
20
Which type of broker holds a broker's licence, but acts as a sales agent under another broker?
transaction broker
qualifying broker
sales broker
associate broker
21
In a limited partnership, an individual is only liable to the degree of their investment and have no say in management.
False
True
22
A quiet title action is a legal action that is intended to clarify ownership of a given property.
False
True
23
An acceleration clause allows a lender to call the full amount due upon a sale
False
True
24
Anti-trust laws require disclosure of APR
False
True
25
Janet purchases a home. She puts nothing down for a downpayment. She most likely has a...
VA loan
FHA loan
Interim Loan
Conventional Loan
26
A specific performance lawsuit forces a party to carry out his/her obligations under a contract.
False
True
27
If a qualifying broker passes away, how many does does the firm have to secure a new one?
30
10
14
60
28
What is true regarding offers?
the agent must present all offers until closing day
the agent must present all offers in the order in which they are received
the agent must present all offers until one is accepted
the agent can exclude offers that he/she knows her client will not take
29
Which is an example of misrepresentation found in Blue Sky Laws?
This house may increase in value next year
This house may see a return on investment
This house is the prettiest house on the block
This house will make 10 times your investment
30
Loan amount is $69,000, Interest rate is 13%, Closing date is March 17th. What is the amount of interest adjustment?
$375.43
$373.75
$594.99
$153.85
31
Functional obsolescence is defined as a form of depreciation or loss in value due to conditions outside the property
False
True
32
Lisa wants to purchase a house for 345,000. She gets a lown for 80%. What will her down payment be on the property?
69,000
6,900
276,000
34,500
33
Tim is 65 years old. He needs money to cover his medical bills. His son suggests that he look into a reverse mortgage.
This would transer Tim's property to his son
Tim will be eligible for a reverse mortgage since he is 62 or older
This would not help Tim get any money
Tim will not be eligible for a reverse mortgage
34
? is a person/organization that acts on behalf of another person, putting their clients' interests ahead of their own.
a beneficiary
A fiduciary
a power of attorney
An agency
35
Which item can be held in an Escrow account?
earnest money
all of these
real estate taxes
mortgage insurance
36
Market allocation is not illegal when agreed between 2 agents in the same office or company.
True
False
37
Which type of lien covers all real and personal property?
specific
involuntary
general
voluntary
38
The foundation of a house has problems. A client asks their sales agent to keep it a secret. The sales agent must...
sign a nondisclosure agreement
report the seller to the commission
keep it a secret due to confidentiality
disclose the information to potential buyers
39
Which is an example of functional obsolescence?
excess construction
poor design
All of these
lack of utility; there are features that are not practical or desirable.
40
A seller can go back an accept an original offer after a less desirable counter offer is made
False
True
41
A property address is a formal legal description
False
True
42
You can always count on an earnest money refund even if you withdraw your offer after acceptance
False
True
43
Special stipulations are used to fully express the intent of the parties when not covered in the pre-printed forms
False
True
44
Who is the person legally responsible for a real estate office, the training, and supervision of all licensees?
associate broker
qualifying broker
owner
training broker
45
Assemblage means...
combining two or more parcels of land
splitting up a parcel of land
downzoning a property
reducing the value of properties
46
A contract to purchase with a minor is...
void
valid
voidable by the minor
voidable by the seller
47
A vendor is a seller
False
True
48
A builder agrees to sell lot a as long as you purchase lot b, a less desirable lot, as well. This is known as...
buy in
tie in
BOGO
fair trade
49
If you die without a will, you are considered testate.
False
True
50
An estate from year to year has a specific beginning and end date
True
False
51
Ministerial Acts are only for clients
True
False
52
Which type of listing guarantees a commission when a property is sold?
exclusive right to sell listing
open listing
transaction listing
exclusive listing
53
designated agency is the same as dual agency
False
True
54
Bob purchased a house for 115,000. He put down 11,500. The bank loaned him the rest. What percent did the bank loan him?
95%
80%
90%
75%
55
In general partnership, all partners must participate in management and are personally liable for all activities
True
False
56
If you pass the state exam, you must activate your license within how many months to avoid retaking the state exam?
2 months
6 months
12 months
1 month
57
A lender refuses to loan funds in specific neighborhoods. This is known as...
fair housing laws
redlining
blockbusting
steering
58
When working as a designated agent you can ask advice from other agents
True
False
59
Employees of the Commission may have an active real estate license
True
False
60
The Cost Approach is usually used to appraise special purpose properties, like libraries, schools, and police stations
True
False
61
Fixtures area appurtenances
False
True
62
Mortgages are general liens on property
True
False
63
The closing date for a property was July 31. The yearly taxes were $2,100. What would the proration amount be at closing
$880.27
$1,219.73
$1,500
$2,100
64
Current illegal drug users are covered under Fair Housing laws
True
False
65
The closing date is March 1, how many days of adjustment are there for prepaid interest?
0
28
2
12
66
Which is not a test for a fixture
Relationship
Method
Intention
Cost to replace
67
Which is not one of the Four Essential Elements of value?
Transferability
Scarcity
Demand
Equity
68
In Georgia, the Homestead Protection protects a home from being taken for debts
False
True
69
Recording a valid deed gives actual notice
False
True
70
Plottage is an increase in value by combining two or more parcels of land.
False
True
71
What can a Lender do to get the remaining balance after a foreclosure?
quiet title suit
quit claim deed
estoppel
deficiency judgment
72
What does a condo owner and an apartment dweller have in common?
they both live in a major city
they both own a time share
they both have an estate in real property
they both hold a proprietary lease
73
In Georgia, once home is under contract, you must only present all written offers.
False
True
74
Lisa purchases a property that is 823' by 756'. How many acres did she purchase?
15
14
622,188
972
75
A straight mortgage is principal only payments
False
True
76
A mortgagor is the lender who gives out a mortgage
False
True
77
When a deal fails and the buyer and seller cannot agree on earnest money dispersal, a broker must contact the commission
True
False
78
Alcohol restriction on a deed from the seller makes the borrower have a fee simple defeasible estate.
False
True
79
What is true of owners of cooperatives?
they own an airlot
they have a proprietary lease and stock in the corporation
they pay their own property taxes
they can will their lot to heirs
80
The “market data approach" is based on the principal of substitution
False
True
81
Trade fixtures are
personal property that is not removable by a tenant
real property attached to a business
personal property that has become real property
personal property that is essential to a business, so it is removable
82
Joseph buys a lot that is 10 acres. How many square feet did he buy?
43,560
4,360
435,600
100
83
A seller can accept, reject, or counter any offer.
False
True
84
George, a sales agent, wants his client to "fit in" the neighborhood, so he only shows him houses in certain areas
this is called blockbusting and it's illegal
this is called good customer service, so it is not illegal
this is called sterring and it's illegal
this is called redlining and it's illegal
85
New agent registered with post license course but not completed by a year, must complete post license within 18 months
False
True
86
A sales agent tries to get business by persuading her catholic neighbors to move since Jewish people are moving in.
this is called steering and it's illegal
this is called blockbusting and it's illegal
this is called redlining and it's illegal
she had harmless intentions, so it is not illegal
87
Which is not true regarding joint tenacy?
The joint tenants own an undivided interest in the property as a whole
The joint tenants hold their property under the same title.
The joint tenants have right to survivorship
Joint tenants can be added at any time
88
As a dual agent, if the seller reveals his bottom line, only disclose with written contract.
False
True
89
A(n) ____ is not considered a true interest in the land because it can be taken away at any time and does not transfer.
encumbrance
license
encroachment
easement
90
Sherman Anti-Trust Act prevents monopolies
True
False
91
Commissions are determined by the listing broker only
True
False
92
Insufficient payment to pay one month’s interest payment results in negative amortization.
False
True
93
An Attorney In Fact is a legally binding document that allows you to appoint someone to manage your affairs.
True
False
94
What is the formula for Gross Rate Multiplier?
SP \div R = GRM
LXW = GRM
annual NOI \div cost/value/price
SP X R = GRM
95
Bill pays his mortgage in installments, but once the installments end, he pays a large amount to complete the loan.
he had an adjustable rate mortgage
He had a reverse mortgage
He had a fully amortized mortgage
He paid a balloon payment at the end
96
Which would not cause a listing to terminate?
death of seller
destruction of property
death of broker
death of the sales agent
97
When does an offer become binding?
after is it accepted and communicated back to the seller
after it is accepted
after a counter offer
after reasonable time
98
A closing date falls on March 15. Which is true regarding taxes?
The buyer will owe the seller
The seller will owe the buyer
The seller and buyer will split the tax bill evenly
None of these are true
99
Option to buy price is determined when negotiating the original option agreement
False
True
100
The seller pays the full commission to the Listing Broker, and then it is divided among the companies.
False
True

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