NATIONAL REAL ESTATE EXAM
PRACTICE TEST QUESTIONS AND
VERIFIED ANSWERS
In most cases, broker compensation, as a percentage of home price, falls
somewhere between: - ANSWER- 5-7%
A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal? -
ANSWER- Yes. Religious organizations which rent to tenants for
residential purposes are exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased
property? - ANSWER- The tenant removes their trade fixtures and takes
them upon moving out.
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. What is the maximum amount of
additional long-term obligations this borrower may have after PITI? -
ANSWER- $280
,A square bedroom measures 10 feet by 10 feet. What is the area of the
room? - ANSWER- 100 square feet
Which of these is an economic characteristic that makes land a
distinctive commodity?* - ANSWER- situs
In a fixed-rate mortgage that is fully amortized, the total amount of
interest to be paid is: - ANSWER- predetermined
Which is exempt from the federal Fair Housing Act? - ANSWER-
renting a room in a house occupied by the owner
The Americans with Disabilities Act applies to: - ANSWER- privately
owned or government-owned public accommodations
Condemnation is the act of seizing private property from citizens. What
gives the government the right to do this? - ANSWER- eminent domain
The PHYSICAL characteristics of land are that land is indestructible,
non-homogenous, and: - ANSWER- immobile
Which statement BEST defines the term contingency? - ANSWER-
stipulation that must be satisfied before the contract can be performed
, If a borrower is behind on payments, the acceleration clause gives the
lender the ability to: - ANSWER- call the entire loan balance due
immediately
A metes and bounds legal description always returns to: - ANSWER- the
point of beginning
What should a license holder do if a client instructs them to do
something that would discriminate against a protected class? -
ANSWER- advise the client they cannot legally discriminate against
certain groups
What is a novation? - ANSWER- the substitution of one contract for
another
A married couple bought a home ten years ago for $400,000. Their
neighborhood has rapidly grown in popularity, and they were able to sell
their home this year for $950,000. How much of that money will they be
required to pay capital gains tax on? - ANSWER- $50,000
Which element of a valid contract states that the contract cannot require
any illegal activities or outcomes? - ANSWER- lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no
legal recourse because too many years have passed since the offending
incident. What is this an example of? - ANSWER- statute of limitations
PRACTICE TEST QUESTIONS AND
VERIFIED ANSWERS
In most cases, broker compensation, as a percentage of home price, falls
somewhere between: - ANSWER- 5-7%
A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal? -
ANSWER- Yes. Religious organizations which rent to tenants for
residential purposes are exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased
property? - ANSWER- The tenant removes their trade fixtures and takes
them upon moving out.
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. What is the maximum amount of
additional long-term obligations this borrower may have after PITI? -
ANSWER- $280
,A square bedroom measures 10 feet by 10 feet. What is the area of the
room? - ANSWER- 100 square feet
Which of these is an economic characteristic that makes land a
distinctive commodity?* - ANSWER- situs
In a fixed-rate mortgage that is fully amortized, the total amount of
interest to be paid is: - ANSWER- predetermined
Which is exempt from the federal Fair Housing Act? - ANSWER-
renting a room in a house occupied by the owner
The Americans with Disabilities Act applies to: - ANSWER- privately
owned or government-owned public accommodations
Condemnation is the act of seizing private property from citizens. What
gives the government the right to do this? - ANSWER- eminent domain
The PHYSICAL characteristics of land are that land is indestructible,
non-homogenous, and: - ANSWER- immobile
Which statement BEST defines the term contingency? - ANSWER-
stipulation that must be satisfied before the contract can be performed
, If a borrower is behind on payments, the acceleration clause gives the
lender the ability to: - ANSWER- call the entire loan balance due
immediately
A metes and bounds legal description always returns to: - ANSWER- the
point of beginning
What should a license holder do if a client instructs them to do
something that would discriminate against a protected class? -
ANSWER- advise the client they cannot legally discriminate against
certain groups
What is a novation? - ANSWER- the substitution of one contract for
another
A married couple bought a home ten years ago for $400,000. Their
neighborhood has rapidly grown in popularity, and they were able to sell
their home this year for $950,000. How much of that money will they be
required to pay capital gains tax on? - ANSWER- $50,000
Which element of a valid contract states that the contract cannot require
any illegal activities or outcomes? - ANSWER- lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no
legal recourse because too many years have passed since the offending
incident. What is this an example of? - ANSWER- statute of limitations
