REAL ESTATE EXAM | QUESTIONS & 100%
CORRECT ANSWERS (VERIFIED) | LATEST
UPDATE | GRADE A+
Many states determine the order of water rights according to which users of the water
hold a recorded beneficial use permit. This allocation of water rights is determined by:
A. accretion
B. riparian theory
C. littoral theory
D. the doctrine of prior appropriation
Answer: D. All terms relate to water rights, with "riparian" - the right to use water
adjacent to one's property - being the most common in sections of the U.S. where water
is abundant. However, in the states where water is more scarce, a form of "prior
appropriation" applies. Also known as "first in time is first in right," it grants water rights
to divert a specific amount of water from a specific source to irrigate a specific piece of
property. Those rights are then assigned a priority based on when the right was first
used or applied for. In periods of peak demand, they give those whose claim is the
oldest the right to get their water first.
A real estate licensee has a buyer agency agreement. What is the seller in this
situation?
A. a customer
1
,B. a client
C. a fiduciary
D. an agent
Answer: A. There's an important distinction between client and customer. Unless there
is a specific agreement to the contrary, licensees represent only one side in a
transaction. In this case, it's the buyer who is the client and it's the licensee's obligation
to negotiate a deal that's in that person's best interests, not the one that's "fairest" to
both parties
The fastest way to calculate one month's interest on a real estate loan with an interest
rate of 7.2% interest per annul is to multiply the principal balance by:
A. 0.006
B. 0.6
C. 7.2% and divide by 12
D. 12 and divide by 7.2%
Answer: A. By dividing the 7.2% rate by 12 first, you can find one month's interest by
multiplying the loan amount by .006; 7.2% divided by 12 = .006, rate for one month.
An optionor and an optionee make a contract for an option on a commercial piece of
property. If the optionee decides to exercise his option, when must he perform?
A. He must exercise his option within 6 months under state law
B. He must exercise his option under the terms of the option contract
C. He must exercise his option when the optionor demands it
2
,D. He can exercise his option whenever he wants
Answer: B. Options are generally concerned with only two things: time and price.
Whatever the parties agree to in those regards defines the terms of the option and the
obligations of the parties.
The right to control one's property includes all of the following EXCEPT:
A. the right to invite people on the property for a political fund-raiser
B. the right to exclude the utilities meter reader
C. the right to erect "no trespassing" signs
D. the right to enjoy pride of ownership
Answer: B. This right to enter and work on a property is granted to utility companies
(water, sewer, gas and electric) as well as telephone and cable companies. Essentially,
if a company provides a service and owns the equipment (e.g., phone and cable lines),
they are usually granted an easement.
Mr. Brown, licensed broker, took an offer from Mr. Green on land for $6,000 with the
following terms: $2,000 down and purchase money trust deed and note for the balance,
payable $70 per month including interest at 7.2%. If the offer was accepted by the
seller, what is the balance of the loan after the first 3 months payment?
A. $3,186
B. $3,467
C. $3,861
D. $3,790
3
, Answer: C. $6,000 price - $2,000 down = $4,000 first trust deed. $4,000 x .006 =
$24.00 interest first month. $70 - $24 = $46.00 applied to principal. $4,000 - $46 =
$3,954 balance after first month. $3,954 x .006 = $23.72 interest second month. $70 -
$23.72 = $46.28 applied to principal. $3954 - $46.28 = $3907.72 balance after second
month $3,907.72 x .006 = $23.45. $70 - $23.45 = $46.55 applied to principal. $3,907.72
- $46,55 = $3,861.17.
When can a landlord evict a disabled blind or disabled tenant from the premises?
A. If the tenant gets a dog and the apartment policy does not allow pets
B. If the tenant insists on a handicapped parking place
C. If the tenant makes modifications to his unit at his expense
D. If the tenant has loud parties and makes too much noise
Answer: D. The law requires "reasonable accommodation" - for example, allowing a
guide dog for a blind person even if there's a "no pets" policy. However, that does not
mean that all rules are suspended. Noise, safety, and "use of premises policies" may
still be enforced.
Which of the following types of ownership CANNOT be created by operation of law, but
must be created by the parties' expressed intent
A. community property
B. tenancy in common
C. condominium ownership
D. tenancy by the entireties
4
CORRECT ANSWERS (VERIFIED) | LATEST
UPDATE | GRADE A+
Many states determine the order of water rights according to which users of the water
hold a recorded beneficial use permit. This allocation of water rights is determined by:
A. accretion
B. riparian theory
C. littoral theory
D. the doctrine of prior appropriation
Answer: D. All terms relate to water rights, with "riparian" - the right to use water
adjacent to one's property - being the most common in sections of the U.S. where water
is abundant. However, in the states where water is more scarce, a form of "prior
appropriation" applies. Also known as "first in time is first in right," it grants water rights
to divert a specific amount of water from a specific source to irrigate a specific piece of
property. Those rights are then assigned a priority based on when the right was first
used or applied for. In periods of peak demand, they give those whose claim is the
oldest the right to get their water first.
A real estate licensee has a buyer agency agreement. What is the seller in this
situation?
A. a customer
1
,B. a client
C. a fiduciary
D. an agent
Answer: A. There's an important distinction between client and customer. Unless there
is a specific agreement to the contrary, licensees represent only one side in a
transaction. In this case, it's the buyer who is the client and it's the licensee's obligation
to negotiate a deal that's in that person's best interests, not the one that's "fairest" to
both parties
The fastest way to calculate one month's interest on a real estate loan with an interest
rate of 7.2% interest per annul is to multiply the principal balance by:
A. 0.006
B. 0.6
C. 7.2% and divide by 12
D. 12 and divide by 7.2%
Answer: A. By dividing the 7.2% rate by 12 first, you can find one month's interest by
multiplying the loan amount by .006; 7.2% divided by 12 = .006, rate for one month.
An optionor and an optionee make a contract for an option on a commercial piece of
property. If the optionee decides to exercise his option, when must he perform?
A. He must exercise his option within 6 months under state law
B. He must exercise his option under the terms of the option contract
C. He must exercise his option when the optionor demands it
2
,D. He can exercise his option whenever he wants
Answer: B. Options are generally concerned with only two things: time and price.
Whatever the parties agree to in those regards defines the terms of the option and the
obligations of the parties.
The right to control one's property includes all of the following EXCEPT:
A. the right to invite people on the property for a political fund-raiser
B. the right to exclude the utilities meter reader
C. the right to erect "no trespassing" signs
D. the right to enjoy pride of ownership
Answer: B. This right to enter and work on a property is granted to utility companies
(water, sewer, gas and electric) as well as telephone and cable companies. Essentially,
if a company provides a service and owns the equipment (e.g., phone and cable lines),
they are usually granted an easement.
Mr. Brown, licensed broker, took an offer from Mr. Green on land for $6,000 with the
following terms: $2,000 down and purchase money trust deed and note for the balance,
payable $70 per month including interest at 7.2%. If the offer was accepted by the
seller, what is the balance of the loan after the first 3 months payment?
A. $3,186
B. $3,467
C. $3,861
D. $3,790
3
, Answer: C. $6,000 price - $2,000 down = $4,000 first trust deed. $4,000 x .006 =
$24.00 interest first month. $70 - $24 = $46.00 applied to principal. $4,000 - $46 =
$3,954 balance after first month. $3,954 x .006 = $23.72 interest second month. $70 -
$23.72 = $46.28 applied to principal. $3954 - $46.28 = $3907.72 balance after second
month $3,907.72 x .006 = $23.45. $70 - $23.45 = $46.55 applied to principal. $3,907.72
- $46,55 = $3,861.17.
When can a landlord evict a disabled blind or disabled tenant from the premises?
A. If the tenant gets a dog and the apartment policy does not allow pets
B. If the tenant insists on a handicapped parking place
C. If the tenant makes modifications to his unit at his expense
D. If the tenant has loud parties and makes too much noise
Answer: D. The law requires "reasonable accommodation" - for example, allowing a
guide dog for a blind person even if there's a "no pets" policy. However, that does not
mean that all rules are suspended. Noise, safety, and "use of premises policies" may
still be enforced.
Which of the following types of ownership CANNOT be created by operation of law, but
must be created by the parties' expressed intent
A. community property
B. tenancy in common
C. condominium ownership
D. tenancy by the entireties
4
