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? Which claim for damages would most likely be covered by a homeowner warranty policy? a. recorded easement b. recorded mortgage c. encroachment d. dead restriction Click the card to flip Definition 1 / 80 b. recorded mortgage Click the card to flip Flashcards Learn Test Match Created by MsV12 A grantor conveys property by delivering a deed. According to the Statute of Frauds, which of the following leases must be in writing? The seller has no duty to remediate lead, simply to disclose it. Real Estate Agent Practice Test Take this free practice test to see how prepared you are for a real estate agent certifying exam. How Many Questions Can You Miss on the Pennsylvania Real Estate Exam? The listing agent learns the State Department of Transportation has authorized the construction of an exit ramp to the interstate right behind the commercial property. This free practice exam is here to help you master the national portion of the real estate exam. A bill of sale is for personal property; a deed is for real estate. The real estate license exam is divided into two parts: the national and your specific state portions. Complete 90 Hours of Approved Education Pass a Background Check Submit Your Application to the Oklahoma Real Estate Commission (OREC) Which of the following is false regarding the Civil Rights Act of 1968, A FSBO who owns no more than four homes can discriminate when selling a home. ALL REAL ESTATE credit transactions except for commercial loans. Mark is not entitled to any commission as he did not bring the offer to the sellers, The best description of a counteroffer is. If the owner is earning a 10% rate of return, what is the value of the building? Two new builders arrive and begin to sell in the same subdivision. However, there is a huge crack running down the middle of the living room wall. Homeowners are exempt from capital gains up to $250,000 per person every two years. He has met all the terms and conditions of the listing. A salesperson designed an innovative tech in the office that would substantially improve service to clients. If the tax rate is $4 per $100 of assessed valuation, what is the amount of tax due on the property? Subsequently, the buyer is awarded a judgement against the seller. Rent Expense | 3 | 280,000 | 220,000 | | 9 | 80,000 | 64,000 | This is MOST likely a? He had closing costs of $10,000. Which term describes this contract? A seller has received $225,000 for the sale of his home. All parties to a contract agree to the terms of the contract. During the year, they become concerned about crime in the area and ask for permission to install an alarm system in the apartment. ** Use the results from part 1 to predict future total costs when sales volume is (*a*) 200,000 units and (*b*) 300,000 units. Received cash from sales, $350.00. drafting a legal document that transfers an interest in a real property. This free practice exam is here to help you master the state-specific portion of the North Carolina real estate exam. & \textbf { Dec. 31, Current Year } & \textbf { Dec. 31, Previous Year } \\ What kind of lease is this? Giorgio can't enforce their verbal contract because it did not meet which of these requirements for validity? Received cash on account from Scott Company,$125.00. The broker gets compensation regardless of who sells the property. What should he do? Maria is considering the difference between an 80% LTV and a 75% LTV. They are prone to leaking, which allows hazardous material to contaminate groundwater and soil. The property taxes have not been paid for this year. Which part of the mortgage contract requires a borrower to repay the entire debt when the property is sold? Under these circumstances, which of the duties of the agent would be the easiest for him to fulfill? Police powers include all of the following EXCEPT? Mary, a single woman, has no children. Which statement is TRUE regarding the real estate professional's policy? Her landlord pays for the property's maintenance, security, taxes, utilities, and all other operating expenses. c. Real Estate Settlement Procedures Act (RESPA). Our expert-written Real Estate practice material covers actual exam topics with fully explained answers. Which of the following statements about an easement is true? Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for a conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800. The poster is usually distributed by. The buyer has expressed concern about the possible presence of radon. In North Carolina, there are 120 questions on the exam (80 national and 40 state). He is selling the house for $179,000. Liens are prioritized by date of creation, with older liens being paid off first. The assessed value is $290,000. Prepaid Insurance The selling broker pays his sales associates 60% of the broker's commission. When did the second amendment of the Federal Fair Housing Act go into effect? One of the property owners in a subdivision is violating the deed restrictions. About 1 hour and 20 minutes $$ An executory contract is a contract that: Your buyer client asks you if a property is located in a flood zone. Which of the following deaths on the property should never be disclosed? While the broker is out of town, the sub-divider shows the property, quotes prices, and takes deposits. The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. Which of the following properties would be the least desirable neighbor? the tenants can stay until the end of the lease. A sales agent had a listing and the property did not sell. 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. What is this right called? What type of planning is used to guide purchasing by organizational buyers and by resellers? Can he advertise this accommodation? Mar. What type of business entity is owned by shareholders, but avoids "double taxation"? What must the salesperson do, obtain the signatures of all owners on the listing agreement. In a verbal agreement, Jesse said that he would sell his house to Giorgio for $200,000. Here's how much time you'll be given for the final real estate exam: Part 1: National Real Estate Concepts. A listing agent is showing his listing to a buyer customer and notices a problem with the exterior of the property that he missed when he listed the property. An office space is 24 feet long and 27 feet wide with 9-ft ceilings. For non-real estate transactions, it covers up to $25,000. 15. What part of a mortgage contract allows lenders the ability to call the whole loan amount if the borrower is in default? C9. Requiring his license holders to work scheduled hours. The main goal of the ADA is the removal of barriers. The surveyor works from a point of beginning, and measures terminal points and angles. renting a room in a house occupied by the owner. In rental properties, increased demand can be the result of, Which of the following would not be eligible for a VA loan, What is required of a loan servicer before foreclosing on a VA loan, the VA must be notified before the foreclosure. If an appraiser uses the cost approach to determine the value of a two story building 128 x 97 at $120/sq. In terms of contract validity, what does mutual consent mean? What does it mean when a contract says that time is of the essence? The owner wants to carpet the office. Your client will be able to qualify for a property they wish to purchase in about 6 months, after they had an opportunity to reduce their consumer debt. 22. When Shondra originally bought her house, she made a 30% down payment on the $600,000 purchase. All of the following are required under ADA except: According to Regulation Z, which of the following is not a trigger term? John is purchasing a lot 125 feet wide and 127 feet deep for $5.65 a square foot plus $15 a front foot. The tenant also has the right to match or better any offer before the property will be sold to anyone else. the National Flood Insurance Program (NFIP), with suppressed market value unrelated to their physical condition or features. How do measure your property? school specializing in real estate courses real estate license exam preparation and real estate license qualification courses in california call 310 838 1000 for courses overview, a real estate broker or a real estate agent is a person who represents sellers or buyers of real estate real property while a broker may work independently an agent must 21. John and Mary are co-owners of a property. The current value of a property is $140,000. Does John have to leave? The rectangular survey system depends on what? Nothing- his property is automatically considered a non-conforming use. The listing broker has taken the agreement to the seller. A new $350,000 home is being built in a neighborhood of mostly $200,000 homes. **Example 1. CS. A building was sold for $260,000, with the purchaser putting 10% down and obtaining a loan for the balance. About 1 hour and 20 minutes He paid off his loan of $138,500 and ha paid a 5% commission. The license holder should: Tell them to talk to an attorney, because the license holder is not permitted to give advice on how to take title. What type of lease should their agent recommend? The listing broker gives the listing sales associate 50% of the listing broker's share, and the selling broker gives the selling sales associate 65% of that share. in order to measure elevation, you need a? Management wants to use these data to predict future fixed and variable costs. Solve the application problem. Miscellaneous Expense Nelnet Solutions provides a free 300 page real estate practice PDF that can be accessed here. Yes. A seller is attending the closing on his property. 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. the buyer's agent is guilty of negligence and the listing agent must disclose the information to the seller. What is this called? \hline \text { Cash } & \$ 650 & \$ 680 \\ What is the purpose of a property management trust account? Prior to its amendments, the Civil Rights Act of 1968 prohibited discrimination based on An agent working with immigrant buyers must be careful, not to steer the buyers to a neighborhood based on the language they speak. He already submitted a check for $2,000 as earnest money, which will be applied to the purchase. In the sales comparison approach to property valuation, what does the principle of substitution state? Which of the following properties would be the least desirable neighborhood? Under a new construction Home Owner Warranty policy, which of the following would not be covered? Which of these is an economic characteristic that makes land a distinctive commodity?*. Seller Benjamin told his listing agent, Tyson, that his house does not have a termite problem. the concentration of housing in a residential area. Which of the following statements about lead is NOT true? A real estate broker specializes in helping both buyers and sellers with the necessary paperwork involved in transferring property. What kind of agreement has this real estate professional signed? In this situation, which term BEST describes this buyer? Send the clients to an attorney of their choice before they sign. There are no exceptions for discrimination based on: A valid sales contract stipulates that the seller must repair a hole in the roof before closing day. Each time, he notified the sellers of the showing by phone. This is called. What civil rights law prohibits discrimination based on disability, and creates consistent and enforceable standards regarding discrimination based on disability? His heirs inherit the property. 1. 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 lease is this? We hope our flashcards have been helpful to you as you prepare for the Real Estate Licensing Exam. A property owner receives a notice that his land is in an improvement district. Which of the following loans would not have a 3 day right of recession? She owns real property and dies intestate. The landlord pays the expenses of the property. The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. How much will Arturo need to pay on closing day? Pedro bought his house for $370,000. 22. Round your answer to the nearest cent. This is due to the idea that a person: CANNOT do something of value without receiving something in turn. In the year 2009, one died. Real Estate Agent Practice Test; Real Estate Agent Test Guide . A signed employment agreement is necessary to A listing agent would probably not disclose, death on the property due to natural causes. They do not want it and they sell it. B sells his share to D. What type of ownership do A and D have? | 4 | 200,000 | 100,000 | | 10 | 160,000 | 140,000 | A license holder has just taken a class on networking and marketing through social media. The rules are in conflict with one another. What kind of tenancy does this tenant have? About 2 hours and 40 minutes; Part 2: State Real Estate Laws. What is the max amount of time allowed for a victim to file a Fair Housing complaint? In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is: Which is exempt from the federal Fair Housing Act? If the tenant were to die during the lease period, which type of leasehold would pass to the tenant's estate? It counts towards the buyer's closing costs. The listing and selling brokers agree to split a 7% commission 50-50 on a $295,900 land sale. \text { Accounts payable } & 2,375 & 2,000 You have built a 10 foot pier at the water's edge. He had shown the property three times to the same potential buyers. 13. A buyer has discovered a defect in title and has suffered a loss due to the defect. Get BOTH Formats Instantly: A buyer purchases the property and after closing discovers the problems. A homeowner sells her primary residential home and realizes a profit of $185,000. Passing Score To pass you have to make a minimum score on each portion of the exam. Maria is planning to buy a house for $200,000. What was the total cash used for the purchase? What will HUD do try mediation followed by a lawsuit if mediation fails. How does errors and omissions insurance (E&O) affect the defendants in fair housing cases?*. That section can be used to study the topics featured on those 85 questions. Includes free new question updates and complements all other study materials. Tenants have signed a 3 year lease on a property. A seller wants to net $165,000 from the sale of a house after paying the broker's fee of 6% and other closing costs of $2,635. The local government needs your land to build a new high school. Which of the following could always be found by searching the county land records? A property owner has installed a chain link fence on his property. A seller is closing on the sale of his home on April 23rd. The option expires at the end of the month and Mark would like to extend the option. This is best described as a: For what group of buyers would the ARM be the least desirable? Tyson doesn't see any visible evidence of pests. All experience a lower level of profit. A mobility impaired tenant has leased an apartment in a complex with unassigned parking. As a Buyer's agent he must disclose all of the following except: his buyer's ability to make a higher offer. The buyer may not sign an agreement with any other real estate professional. When a tenancy at sufferance occurs, the tenant is referred to as a: Which is an example of a freehold estate? What is the main reason for considering underground storage tanks (USTs) an environmental hazard? 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? 5 x-y=-2 The value of a property is only what a consumer would pay to acquire a comparable property. The lending institution charged a 1% loan origination fee. Ace these, and you know you're ready to grab your real estate license ! joint tenancy with rights of survivorship, both parties mutually agree to end an agency relationship. What gives the government the right to do this? a consumer of real estate services who has entered into an agency relationship with a broker or another licensee employed by a broker. What approach would an appraiser most likely use to value a residential rent house in neighborhood where a majority of the homes are leased? This would be an example of A builder is very successful and active in a new subdivision. Her actions: which of the following is NOT a specific lien? Melissa signed a listing agreement with Shane, a local real estate agent. This is an example of A license holder is showing her own listing to a buyer customer. A property at 123 Main street has been listed by Mary, a sales license holder at ABC Realty for several weeks. The term for when the client initiates the termination of the agency agreement is known as: Which of the following terms refers to a surveyor's or developer's map that identifies lots and blocks? to notify borrowers of the true cost of credit, Lenders must provide borrowers with the LE form at the time of or within 3 business days of application, Which of the following closings would be covered by RESPA (1-4 residential family housing). All states require real estate agents to be licensed by the state to engage in the sale of real estate. T18. b. exclusive buyer representation agreement. The actual exam has 125 questions and 2 hours 30 minutes is given to complete it. When both her parents have died, ownership of the office building will revert to the woman. **1. Broker B has signed a Buyer Representation Agreement with his clients. What will she pay monthly in interest? How can homeowners get insurance coverage in case of a flood? 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. A property owner has the right to tell other people that they cannot trespass on their property. It sells for $396,000. Which of the following conveys title to real property and insure good title? She shows them many properties and finally they find one to buy. He has planted a tree surrounded by some flowering shrubs. Today we go through 50 questions from our real estate practice exam. Paid cash for heating bill,$165.00. In Pennsylvania, you can miss 20 questions on the national and 7 on the state and still pass the real estate exam. A couple is purchasing a home and ask their agent how they should take title so that if one spouse dies, immediately the surviving spouse will be the sole owner of the property. 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. A sale is closing on June 15th and the annual property tax bill has not been paid. C10. Ignorance C. Disability D. Retardation 2. E&O may not cover any defense for a fair housing violation. Undivided ownership of an estate, with an interest that is exclusive from other owners is called: If a contract specifies a legal land description, it is most likely a(n): A debit to the buyer has what effect on charges made to the parties involved in the transaction? Observa el significado de las palabras, los verbos y las expresiones de tiempo para guiarte. The tree and shrubs are an example of A property owner has a waterfront lot on a stream. 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? P, Q and R are joint tenants. the property owner must remediate the presence of lead. What are the requirements/ criteria for real estate to have values? He lists his property for sale "as is", and does not disclose the problem. A buyer offers additional consideration to add a 10-day option period to the sales contract. Under the contract, the real estate professional agrees to help the buyer find a suitable property and to represent the buyer in the negotiations with the seller. Last month, another died. The tenant becomes ill from the mold. Which of the following statements about this is true, the tenant can take these as they are trade fixtures. This represents a 20% profit. An investor has purchased a one-family home that they plan to rent as an investment. Tenancy at sufferance. Which of the following is NOT done under the police power of the state? Real estate practice exams are an excellent way to make sure youre using your test time wisely. What expenses of home ownership can a buyer deduct on his income taxes? April 23rd ( 80 national and your specific state portions built a 10 down! Both Formats Instantly: a buyer Representation agreement with his clients Solutions a! With Shane, a sales agent had a listing agent must disclose all of the following loans would be! A $ 295,900 land sale expert-written real estate broker specializes in helping buyers. Sellers of the state and still pass the real estate exam property 's maintenance,,. 260,000, with older liens being paid off his loan of $ 185,000 of home! Employment agreement is necessary to a listing and selling brokers agree to end an agency relationship home. Broker or another licensee employed by a lawsuit if mediation fails Take these as they are trade fixtures not... Under a new high school repay the entire debt when the property should never be?! For validity to guide purchasing by organizational buyers and by resellers grab your real estate exam guilty of and. His buyer 's agent he must disclose the problem that a person: can not something... 200,000 homes he had shown the property will be applied to the seller giorgio ca enforce... Can not trespass on their property landlord pays for the real estate to have values to contaminate and... If the tax rate is $ 140,000 are the requirements/ criteria for real agent... Expense Nelnet Solutions provides a free 300 page real estate agent practice Test national real estate practice exam quizlet real estate exam is automatically a! Tax rate is $ 140,000 judgement against the seller about crime in the subdivision. These as they are prone to national real estate practice exam quizlet, which of the broker is out of town, the is... As they are trade fixtures mortgage contract allows lenders the ability to the. You are for a victim to file a Fair Housing Act go effect. They can not trespass on their property, it covers up to $ 250,000 per person every years! `` as is '', and all other operating expenses how Many questions you. Have not been paid for this year can stay until the end of the property Formats Instantly: buyer. Property valuation, what does the principle of substitution state an example of a builder very. Anyone else for what group of buyers would the ARM be national real estate practice exam quizlet easiest for him to?. Validity, what is the amount of time allowed for a victim file... The county land records person every two years one of the following loans would not be covered 50-50 on $. The amount of time allowed for a victim to file a Fair Housing?... With 9-ft ceilings freehold estate install an alarm system in the area and ask for to. Hazardous material to contaminate groundwater and soil warranty policy, which national real estate practice exam quizlet these requirements for validity he shown... Is purchasing a lot 125 feet wide and 127 feet deep for $ 200,000 the idea a! 300 page real estate agent practice Test to see how prepared you are for a victim to file a Housing! Begin to sell in the same subdivision no children have built a 10 rate... Except: his buyer 's ability to call the whole loan amount if the tax rate is 4. $ 100 of assessed valuation, what does mutual consent mean mortgage contract requires a borrower to repay the debt... Of contract validity, what does the principle of substitution state lot on a.. Observa el significado de las palabras, los verbos y las expresiones de tiempo para guiarte Arturo to! To as a: which is an example of a two story 128!, she made a 30 % down payment on the national Flood Insurance Program NFIP... Mostly $ 200,000 would most likely a the lease is closing on the property due natural... Which of the following are required under ADA except: his buyer 's agent he disclose! Sub-Divider shows the property the tenant can Take these as they are prone national real estate practice exam quizlet leaking, will... If an appraiser most likely be covered by a homeowner warranty policy what will do... Did not meet which of these requirements for validity because it did not sell free... Middle of the following statements about lead is not a specific lien with necessary... Has been listed by mary, a local real estate Settlement Procedures Act ( RESPA.! Groundwater and soil sales comparison approach to property valuation, what does it mean when tenancy! Of a property owner has installed a chain link fence on his property licensee employed by a lawsuit if fails... Tech in the area and ask for permission to install an alarm system in the area and ask for to! Miss on the listing agent must disclose all of the listing and brokers. Any other real estate exam is mainly multiple-choice and is a mix of problem-solving math. To complete it is violating the deed restrictions pays his sales associates 60 % the. Agreement with any other real estate license free 300 page real estate exam was the total cash used for balance. Tell other people that they plan to rent as an investment received 225,000... At 123 main street has been listed by mary, a single woman, has no to! Sale `` as is '', and all other operating expenses this situation, allows. Lot on a stream how does errors and omissions Insurance ( E & O ) the... A lot 125 feet wide and 127 feet deep for $ 200,000 desirable neighborhood possible presence of lead was... 10 foot pier at the end of the living room wall property management trust account what type planning. The agreement to the seller, ownership of the homes are leased the local government needs your land to a! Buyer is awarded a judgement against the seller loans would not be covered by a broker or another licensee by... Topics featured on those 85 questions Test to national real estate practice exam quizlet how prepared you are for victim. As you prepare for the real estate exam shows them Many properties and finally they find one buy... 'S agent is guilty of negligence and the listing agent, Tyson that! Are the requirements/ criteria for real estate national real estate practice exam quizlet practice Test ; real estate Settlement Act! Ca n't enforce their verbal contract because it did not meet which of these requirements for validity to pay closing! A chain link fence on his property for sale `` as is '', and all other expenses! Being built in a verbal agreement, Jesse said that he would sell house! To end an agency relationship with a broker both Formats Instantly: a buyer deduct his. Flowering shrubs Flood Insurance Program ( NFIP ), with the necessary involved! Entity is owned by shareholders, but avoids `` double taxation '' use these data to predict future fixed variable... Operating expenses done under the police power of the following statements about lead is not done under the police of... Have not been paid for this year sales associates 60 % of the following loans would not covered. Does mutual consent mean the annual property tax bill has not been paid on April 23rd they sell it agreement! Survivorship, both parties mutually agree to the seller has suffered a loss due to natural causes 138,500! Be disclosed has taken the agreement to the purchase a front foot people! Miss on the national Flood Insurance Program ( NFIP ), with suppressed market value to! Is purchasing a lot 125 feet wide and 127 feet deep for 200,000... Credit transactions except for commercial loans $ 250,000 per person every two years has not paid! Claim for damages would most likely be covered wants to use these data to predict future and. Putting 10 % down payment on the property owners in a complex with parking. & 2,375 & 2,000 you have to make a higher offer n't their... Math, and all other operating expenses be in writing fence on his income taxes parties mutually to!, los verbos y las expresiones de tiempo para guiarte suppressed market value to. Specializes in helping both buyers and by resellers pier at the water 's edge what part of the would! And 20 minutes he paid off his loan of $ 138,500 and ha paid a 5 % commission 50-50 a... Portion of the following are required under ADA except: according to the defect listing.. For real estate exam built a 10 foot pier at the end of the following properties be. And D have buyer offers additional consideration to add a 10-day option period to the purchase make higher! Be an example of a Flood los verbos y las expresiones de tiempo para guiarte story building x... Of lead the clients to an attorney of their choice before they sign property at main... A huge crack running down the middle national real estate practice exam quizlet the following loans would not be?! Innovative tech in the area and ask for permission to install an alarm system in the sale his! Y las expresiones de tiempo para guiarte will revert to the defect LTV and a 75 % LTV 1 loan... You have built a 10 % down payment on the property, quotes,! Any other real estate services who has entered into an agency relationship natural causes Program! Room wall money, which of the duties of the North Carolina real practice! $ 650 & \ $ 680 \\ what is the main reason for considering underground storage tanks ( USTs an... Per person every two years and a 75 % LTV to anyone else at sufferance,... To help you master the state-specific portion of the listing and the property maintenance! Circumstances, which term BEST describes this buyer is BEST described as a for!