ACEABLE AGENT EXAM PREP PAPER 2026
TESTED QUESTIONS AND ANSWERS 100%
CORRECT
◉ A marketable title is a title that is free from significant encumbrances
or defects (such as liens) that might otherwise prevent a purchaser from
enjoying or eventually selling the property. Answer: Odonis' client is
concerned about the marketability of their title. Odonis advises that if
they want their title to be marketable, they need to focus on clearing up
all:
◉ Common Law. Answer: Can be traced back to customs and precedent
established by court decisions over the centuries in England
◉ Alfie bought the home subject to the mortgage. (A property sold
subject to the existing loan retains its original loan. The seller is
responsible for making the payments to the bank, and the buyer makes
the payments to the seller. The seller transfers the title to the buyer, but
retains responsibility for the loan. The bank does not sign off on this
agreement — it is done under the table between the buyer and seller.)
Alice is the only one who assumed the loan. (Assumption is when a
buyer takes over a loan from a seller with the lender's permission. The
loan is officially transferred to the buyer with the title of the property,
and the buyer makes the remainder of the loan payments.) The
difference between assuming a mortgage and buying subject to is that
the lender is not aware of Alfie's subject-to mortgage, and did not
,approve the transfer. Answer: Which of these situations BEST describes
a buyer assuming a mortgage?
◉ Offering tax preparation services for borrowers is not something
lenders do. Collecting property taxes in an escrow account and paying
them for the borrower ensures that a tax lien won't take priority in case
of default. Answer: What is one way lenders prevent other liens from
hopping ahead of them in the debt priority line?
◉ A thin market indicates that there are few buyers and sellers in an
area. An increase in building permits means that there will be an increase
in supply. Answer: Real estate licensee Jamie discovers that there is an
increase in the number of building permits being issued in her town.
What can she expect will result from this?
◉ Real estate is land and improvements. Real property is land,
improvements, and the bundle of rights. Answer: How is real estate
different from real property?
◉ The use of designated sales associates in a nonresidential in-house
transaction allows a brokerage to offer fiduciary representation to both
sides of the transaction under certain circumstances. One of those
circumstances is that parties to the in-house transaction must sign a
disclosure notice consenting to the use of designated sales associates,
and declaring that they are financially eligible (both parties must have
assets of one million dollars or more). Answer: Why does each party in a
designated sales associate transaction have two disclosures to sign?
,◉ The fact that there are two parties and in an in-house transaction
means that this must be a nonresidential transaction with designated
sales associates. This is only allowed if the parties have assets equal to
or in excess of one million dollars. Answer: In what kind of in-house
transaction can there be two parties, each with a licensee providing
fiduciary levels of representation? What would that tell you about the
assets held by the two parties?
◉ Use the following formula to calculate the percentage put down on a
property: Down payment ÷ Purchase price = Percentage down. $85,000
÷ $320,000 = 0.265, or 26.5% Answer: Ozzy bought a house. He put
down $85,000. The purchase price of the house was $320,000. What
percentage did Ozzy put down?
◉ Large residential properties typically require a large amount of hands-
on management and upkeep. The advantage is that the residential
property market is less volatile than commercial markets. Answer:
Carmela is part of an investment group that wants to purchase a
property. She's debating between a large residential development and an
office space. When you're laying out the pros and cons of each kind of
property, what is one advantage of residential property you would share
with her?
◉ A multiple offer situation occurs when more than one party submits
an offer on a single property. There could be two people, or, in some hot
markets, more than 10 people all trying to buy the same home. That's not
, what's happening here, as Stevie's revised offer is a counteroffer. A
counteroffer is considered a rejection of the original offer, meaning the
original offer dies with the submission of a counteroffer. A counteroffer
is basically a new offer! Answer: Stevie receives an offer for his house.
He takes part of that offer and adds new language. He sends it to the
buyer. This revised offer:
◉ That's the savings on only school taxes. We need to add the savings
for city and county property taxes, too. Total exemptions x Tax rate =
Property tax savings. If a home has an assessed value above $75,000, the
owner gets the base $25,000 exemption plus an additional $25,000
exemption on city and county taxes only. So, let's do school taxes first:
$25,000 x 0.0091 = $227.50. (That's what you got! Now keep going!)
For city and county, add the mills first to get 18.2 mills. $50,000 x
0.0182 = $910. $227.50 + $910 = $1,137.50 Answer: Ella's house
assessed for $91,000. The tax rate for city, county, and school taxes was
9.1 mills each.
How much did she save in property taxes this year?
◉ To find the debt-service ratio, just divide the NOI by the debt service.
For Misha, that equals 2.5. Answer: Misha is applying for a commercial
mortgage so she can finally open up a laser tag facility. She is able to
convince the lender that the facility will have a net operating income
(NOI) of $500,000 per year. This, along with an annual debt service of
$200,000.
What is Misha's debt-service ratio?
TESTED QUESTIONS AND ANSWERS 100%
CORRECT
◉ A marketable title is a title that is free from significant encumbrances
or defects (such as liens) that might otherwise prevent a purchaser from
enjoying or eventually selling the property. Answer: Odonis' client is
concerned about the marketability of their title. Odonis advises that if
they want their title to be marketable, they need to focus on clearing up
all:
◉ Common Law. Answer: Can be traced back to customs and precedent
established by court decisions over the centuries in England
◉ Alfie bought the home subject to the mortgage. (A property sold
subject to the existing loan retains its original loan. The seller is
responsible for making the payments to the bank, and the buyer makes
the payments to the seller. The seller transfers the title to the buyer, but
retains responsibility for the loan. The bank does not sign off on this
agreement — it is done under the table between the buyer and seller.)
Alice is the only one who assumed the loan. (Assumption is when a
buyer takes over a loan from a seller with the lender's permission. The
loan is officially transferred to the buyer with the title of the property,
and the buyer makes the remainder of the loan payments.) The
difference between assuming a mortgage and buying subject to is that
the lender is not aware of Alfie's subject-to mortgage, and did not
,approve the transfer. Answer: Which of these situations BEST describes
a buyer assuming a mortgage?
◉ Offering tax preparation services for borrowers is not something
lenders do. Collecting property taxes in an escrow account and paying
them for the borrower ensures that a tax lien won't take priority in case
of default. Answer: What is one way lenders prevent other liens from
hopping ahead of them in the debt priority line?
◉ A thin market indicates that there are few buyers and sellers in an
area. An increase in building permits means that there will be an increase
in supply. Answer: Real estate licensee Jamie discovers that there is an
increase in the number of building permits being issued in her town.
What can she expect will result from this?
◉ Real estate is land and improvements. Real property is land,
improvements, and the bundle of rights. Answer: How is real estate
different from real property?
◉ The use of designated sales associates in a nonresidential in-house
transaction allows a brokerage to offer fiduciary representation to both
sides of the transaction under certain circumstances. One of those
circumstances is that parties to the in-house transaction must sign a
disclosure notice consenting to the use of designated sales associates,
and declaring that they are financially eligible (both parties must have
assets of one million dollars or more). Answer: Why does each party in a
designated sales associate transaction have two disclosures to sign?
,◉ The fact that there are two parties and in an in-house transaction
means that this must be a nonresidential transaction with designated
sales associates. This is only allowed if the parties have assets equal to
or in excess of one million dollars. Answer: In what kind of in-house
transaction can there be two parties, each with a licensee providing
fiduciary levels of representation? What would that tell you about the
assets held by the two parties?
◉ Use the following formula to calculate the percentage put down on a
property: Down payment ÷ Purchase price = Percentage down. $85,000
÷ $320,000 = 0.265, or 26.5% Answer: Ozzy bought a house. He put
down $85,000. The purchase price of the house was $320,000. What
percentage did Ozzy put down?
◉ Large residential properties typically require a large amount of hands-
on management and upkeep. The advantage is that the residential
property market is less volatile than commercial markets. Answer:
Carmela is part of an investment group that wants to purchase a
property. She's debating between a large residential development and an
office space. When you're laying out the pros and cons of each kind of
property, what is one advantage of residential property you would share
with her?
◉ A multiple offer situation occurs when more than one party submits
an offer on a single property. There could be two people, or, in some hot
markets, more than 10 people all trying to buy the same home. That's not
, what's happening here, as Stevie's revised offer is a counteroffer. A
counteroffer is considered a rejection of the original offer, meaning the
original offer dies with the submission of a counteroffer. A counteroffer
is basically a new offer! Answer: Stevie receives an offer for his house.
He takes part of that offer and adds new language. He sends it to the
buyer. This revised offer:
◉ That's the savings on only school taxes. We need to add the savings
for city and county property taxes, too. Total exemptions x Tax rate =
Property tax savings. If a home has an assessed value above $75,000, the
owner gets the base $25,000 exemption plus an additional $25,000
exemption on city and county taxes only. So, let's do school taxes first:
$25,000 x 0.0091 = $227.50. (That's what you got! Now keep going!)
For city and county, add the mills first to get 18.2 mills. $50,000 x
0.0182 = $910. $227.50 + $910 = $1,137.50 Answer: Ella's house
assessed for $91,000. The tax rate for city, county, and school taxes was
9.1 mills each.
How much did she save in property taxes this year?
◉ To find the debt-service ratio, just divide the NOI by the debt service.
For Misha, that equals 2.5. Answer: Misha is applying for a commercial
mortgage so she can finally open up a laser tag facility. She is able to
convince the lender that the facility will have a net operating income
(NOI) of $500,000 per year. This, along with an annual debt service of
$200,000.
What is Misha's debt-service ratio?
