Real Estate Test Exam Prep 2026/2027 |
Complete Study Guide | Practice
Questions, Answers & Exam Review
In appraising a single-purpose building, such as a church, the most reliable
approach to an indication of its value would generally be the... - correct answer-*
A) Cost approach
B) Market data approach
C) Income approach
D) None of the above
Amy asked you to appraise their property. This property had no monthly income
and had no comparables in the market. You would most likely use the... - correct
answer-A) Market Comparison Approach
B) Declining balance method
C) Income Approach
* D) Cost approach
,The County Board of Supervisors announced State and Federal Funding go widen
a two lane road to four lanes. Within a month, property values along the route
yielded a 10% gain. This is an example of which Principle of Valuation? - correct
answer-* A) Anticipation
B) Supply & Demand
C) Progression
D) Highest and best rate
What factor would be necessary in the equation to determine the Gross Rent
multiplier (GRM) contrasted to calculating the Gross Income Multiplier (GIM)? -
correct answer-A) Sales Price
B) Annual Rental Income
C) Quarterly Rental Income
* D) Monthly Rental Income
When changed surroundings cause an existing house to lose value, there is... -
correct answer-A) Physical deterioration
* B) economic obsolescence
C) Functional obsolescence
D) all of the above
If a house you are appraising has one bathroom valued at $2,500, and a house in
the same neighborhood is very similar but has two bathrooms, you should make
an adjustment to the comparables of... - correct answer-A) Plus $2,500
* B) Minus $2,500
C) Plus $1,250
D) Minus $1,250
,A major employer relocates,leaving many homes in an area vacant and
unmaintained. This is an example of... - correct answer-A) Physical deterioration
B) Functional obsolescence
* C) Incurable economic obsolescence
D) Curable external obsolescence
When is a Lender required by FIRRFA to directly engage the services of an
appraiser? - correct answer-A) Never. In a free market economy, Lenders have
significant latitude.
B) Always. Sub-Prime loans made between 2003-2008 changed the rules.
* C) Anytime the transaction is Federally related.
D) On any property loan where the total Lender exposure is in excess of
$99,000.00.
If a person dies with legal heirs and has left no valid will, what happens to real
property owned by that person? - correct answer-UNKNOWN ??
X - A) It is taken by the state according to the process called escheat.
B) It is probated according to the terms agreed to by their heirs.
C) It is probated and passes to the heirs by laws of descent.
D) It is conveyed to the highest bidder at a public auction.
Which of the following items are paid in arrears? - correct answer-* A) Taxes
B) Rents & Interest
C) Insurance & Interest
, D) Rents & Taxes
Title insurance with extended coverage generally covers... - correct answer-* A)
Defects that are not in the public record
B) Liens that are in the public record & listed in the policy
C) Defects to the title known to the buyer
D) All of the above
A special warranty deed is a conveyance instrument which... - correct answer-A)
Does not purport to convey title to real estate
B) Is another name for "quitclaim deed"
* C) Limits any warranties made to those defects which arose during the time the
grantor owned the property being conveyed.
D) Includes some, but not all of the promises made in a general warranty deed.
When must a lender use form (H-25) Closing Disclosure? - correct answer-A)
When a buyer/borrower is not represented by a licensed real estate broker.
* B) When the loan is insured or guaranteed by a federal agency.
C) When the loan amount exceeds $78,000.
D) When closing costs exceeds 1% of the loan amount.
Which of the following is true of a homestead? - correct answer-A) A homestead
interest can be conveyed by one spouse.
B) A homestead interest cannot be exempt from creditors.
* C) A homestead interest is a form of legal life estate.
D) A homestead is any privately owned single family residence.
Complete Study Guide | Practice
Questions, Answers & Exam Review
In appraising a single-purpose building, such as a church, the most reliable
approach to an indication of its value would generally be the... - correct answer-*
A) Cost approach
B) Market data approach
C) Income approach
D) None of the above
Amy asked you to appraise their property. This property had no monthly income
and had no comparables in the market. You would most likely use the... - correct
answer-A) Market Comparison Approach
B) Declining balance method
C) Income Approach
* D) Cost approach
,The County Board of Supervisors announced State and Federal Funding go widen
a two lane road to four lanes. Within a month, property values along the route
yielded a 10% gain. This is an example of which Principle of Valuation? - correct
answer-* A) Anticipation
B) Supply & Demand
C) Progression
D) Highest and best rate
What factor would be necessary in the equation to determine the Gross Rent
multiplier (GRM) contrasted to calculating the Gross Income Multiplier (GIM)? -
correct answer-A) Sales Price
B) Annual Rental Income
C) Quarterly Rental Income
* D) Monthly Rental Income
When changed surroundings cause an existing house to lose value, there is... -
correct answer-A) Physical deterioration
* B) economic obsolescence
C) Functional obsolescence
D) all of the above
If a house you are appraising has one bathroom valued at $2,500, and a house in
the same neighborhood is very similar but has two bathrooms, you should make
an adjustment to the comparables of... - correct answer-A) Plus $2,500
* B) Minus $2,500
C) Plus $1,250
D) Minus $1,250
,A major employer relocates,leaving many homes in an area vacant and
unmaintained. This is an example of... - correct answer-A) Physical deterioration
B) Functional obsolescence
* C) Incurable economic obsolescence
D) Curable external obsolescence
When is a Lender required by FIRRFA to directly engage the services of an
appraiser? - correct answer-A) Never. In a free market economy, Lenders have
significant latitude.
B) Always. Sub-Prime loans made between 2003-2008 changed the rules.
* C) Anytime the transaction is Federally related.
D) On any property loan where the total Lender exposure is in excess of
$99,000.00.
If a person dies with legal heirs and has left no valid will, what happens to real
property owned by that person? - correct answer-UNKNOWN ??
X - A) It is taken by the state according to the process called escheat.
B) It is probated according to the terms agreed to by their heirs.
C) It is probated and passes to the heirs by laws of descent.
D) It is conveyed to the highest bidder at a public auction.
Which of the following items are paid in arrears? - correct answer-* A) Taxes
B) Rents & Interest
C) Insurance & Interest
, D) Rents & Taxes
Title insurance with extended coverage generally covers... - correct answer-* A)
Defects that are not in the public record
B) Liens that are in the public record & listed in the policy
C) Defects to the title known to the buyer
D) All of the above
A special warranty deed is a conveyance instrument which... - correct answer-A)
Does not purport to convey title to real estate
B) Is another name for "quitclaim deed"
* C) Limits any warranties made to those defects which arose during the time the
grantor owned the property being conveyed.
D) Includes some, but not all of the promises made in a general warranty deed.
When must a lender use form (H-25) Closing Disclosure? - correct answer-A)
When a buyer/borrower is not represented by a licensed real estate broker.
* B) When the loan is insured or guaranteed by a federal agency.
C) When the loan amount exceeds $78,000.
D) When closing costs exceeds 1% of the loan amount.
Which of the following is true of a homestead? - correct answer-A) A homestead
interest can be conveyed by one spouse.
B) A homestead interest cannot be exempt from creditors.
* C) A homestead interest is a form of legal life estate.
D) A homestead is any privately owned single family residence.
