ACEABLE FINAL TEST ACTUAL EXAM
PAPER QUESTIONS ANSWERS GRADED A+
◉ The Fair Housing Act is enforced by: Answer: RESPA
◉ What two types of agency have to do with when a third party is
led to mistakenly believe that agency exists between a principal and
an agent? Answer: Ostensible agency and agnecy by estoppel
◉ Which of the groups of descriptors below BEST describes an
exclusive right-to-sell listing agreement? Answer: Broker guaranteed
compenstaion no matter how property is sold
◉ Three origination points and 2 discount points on a $250,000
mortgage would cost a borrower: Answer: 12,500
◉ What type of contract is a real estate sales contract? Answer:
biilateral contract
◉ Which of the following is an important aspect of transaction
coordinators? Answer: Transaction coordinators DO NOT owe any
fiduciary duties to anyone
,◉ What is a formal or witnessed will? Answer: A will typically
created by and attorney as well as witnessed and signed by at least
two witnesses
◉ A condo owner owns the: Answer: interior of thier unit
◉ What is a building permit? Answer: legal documetn from a local
authority that authorizes a contruction or remodeling project
◉ A property manager collected a security deposit from a tenant. He
then placed it in the owner's personal account. Is this action legal?
Answer: No, this is commingling, and is illegal
◉ A building sold for $500,000 and has a net operating income of
$25,000. What was the cap rate of the sale?
Hint: "Ask IRV." Answer: 5%
◉ When lenders want to measure whether or not a property can
adequately cover the debt, they find its debt service coverage ratio
(DSCR). How is debt service coverage ratio calculated? Answer: By
dividing the net operating income by total debt service
◉ Which of these is FALSE regarding license reciprocity in Virginia?
Answer: The applicant must pass both the state and national
portions of the exam
, ◉ Which of these parties can legally act as closing agent in Virginia?
Answer: Buyer, Lender's Attorney, and Buyer's Broker
◉ The Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Community Reinvestment Act, and the Real Estate Settlement
Procedures Act all serve the purpose of regulating the: Answer:
Lending practices of mortgage lenders
◉ On the advice of a real estate broker, Harold calls up Lender Lisa
to get a ballpark figure as to how big of a mortgage loan he could
afford. Lender Lisa asks Harold about his income and, based on what
Harold tells her, states a general range for which Harold could
probably get financing. What step of the loan approval process is
Harold in at this point? Answer: pre-qualification
◉ How many hours of pre-license education are salesperson
applicants required to successfully complete? Answer: 60
◉ Which of these transaction would require a public offering
statement (POS)? Answer: The initial sale of a condominium
◉ Which of these situations demonstrates the principle of
anticipation? Answer: An investor buys above market because they
know an area is rapidly increasing in value
PAPER QUESTIONS ANSWERS GRADED A+
◉ The Fair Housing Act is enforced by: Answer: RESPA
◉ What two types of agency have to do with when a third party is
led to mistakenly believe that agency exists between a principal and
an agent? Answer: Ostensible agency and agnecy by estoppel
◉ Which of the groups of descriptors below BEST describes an
exclusive right-to-sell listing agreement? Answer: Broker guaranteed
compenstaion no matter how property is sold
◉ Three origination points and 2 discount points on a $250,000
mortgage would cost a borrower: Answer: 12,500
◉ What type of contract is a real estate sales contract? Answer:
biilateral contract
◉ Which of the following is an important aspect of transaction
coordinators? Answer: Transaction coordinators DO NOT owe any
fiduciary duties to anyone
,◉ What is a formal or witnessed will? Answer: A will typically
created by and attorney as well as witnessed and signed by at least
two witnesses
◉ A condo owner owns the: Answer: interior of thier unit
◉ What is a building permit? Answer: legal documetn from a local
authority that authorizes a contruction or remodeling project
◉ A property manager collected a security deposit from a tenant. He
then placed it in the owner's personal account. Is this action legal?
Answer: No, this is commingling, and is illegal
◉ A building sold for $500,000 and has a net operating income of
$25,000. What was the cap rate of the sale?
Hint: "Ask IRV." Answer: 5%
◉ When lenders want to measure whether or not a property can
adequately cover the debt, they find its debt service coverage ratio
(DSCR). How is debt service coverage ratio calculated? Answer: By
dividing the net operating income by total debt service
◉ Which of these is FALSE regarding license reciprocity in Virginia?
Answer: The applicant must pass both the state and national
portions of the exam
, ◉ Which of these parties can legally act as closing agent in Virginia?
Answer: Buyer, Lender's Attorney, and Buyer's Broker
◉ The Truth-in-Lending Act, the Equal Credit Opportunity Act, the
Community Reinvestment Act, and the Real Estate Settlement
Procedures Act all serve the purpose of regulating the: Answer:
Lending practices of mortgage lenders
◉ On the advice of a real estate broker, Harold calls up Lender Lisa
to get a ballpark figure as to how big of a mortgage loan he could
afford. Lender Lisa asks Harold about his income and, based on what
Harold tells her, states a general range for which Harold could
probably get financing. What step of the loan approval process is
Harold in at this point? Answer: pre-qualification
◉ How many hours of pre-license education are salesperson
applicants required to successfully complete? Answer: 60
◉ Which of these transaction would require a public offering
statement (POS)? Answer: The initial sale of a condominium
◉ Which of these situations demonstrates the principle of
anticipation? Answer: An investor buys above market because they
know an area is rapidly increasing in value
