The Ce Shop Practice Test Exam
UPDATED QUESTIONS AND CORRECT
ANSWERS
As a licensee , you'll have several tasks you must perform for your buyer client . One of these tasks is
to - CORRECT ANSWER Review transaction documents with the buyer , clarifying anything
that could be confusing , without stepping outside the scope of your license
Your intuition can ______ a dangerous situation before it happens. - CORRECT ANSWER
Detect
The New York mansion tax would apply to which of the following properties ? - CORRECT
ANSWER A new condo with a sales price of $ 1 million
You're working with a buyer who's purchasing a home that appraised at $ 80,000 . The buyer is
obtaining a 90 % loan , and the lender will charge a one - point origination fee at closing . How much
will the loan origination fee be ? - CORRECT ANSWER $ 720
As part of his job , Mitchell determines a loan's rate and terms . What is Mitchell's job ? - CORRECT
ANSWER Mortgage banker
In investments , there are two types of depreciation , and each is defined by a particular event . Which
of the following most accurately pairs the depreciation type with the event it is tied to ? - CORRECT
ANSWER Tax depreciation and cost recovery
What type of professional must an investor use to conduct a tax - deferred exchange ? - CORRECT
ANSWER A qualified intermediary
Which of the following provides a summary of the title history ? - CORRECT ANSWER
Abstract of title
Three brokers meet and agree that all of their listing contracts will have one - year terms . Of which
type of antitrust violation is this an example ? - CORRECT ANSWER Price fixing
, Why should you advise your buyers to purchase insurance coverage , even if they make a cash
purchase ? - CORRECT ANSWER It protects their investment
When meeting a new client for the first time , where would be an ideal place to meet ? issues -
CORRECT ANSWER At your brokerage
How would you respond if your seller makes the following request ? " We've lived here 10 years and
love our neighbors . They're really concerned about the changes happening to the blocks around us ,
so we want to be careful about who we sell this house to . You know what we mean . You'll help us
find the ' right ' kind of buyer , won't you ? " - CORRECT ANSWER " It would be illegal to
limit the search based on race or religion or anything like that , but I promise I'll find you the most
qualified buyer I can , and we'll sell this house for the highest price possible . "
Which of the following is a lien that will take priority over all other liens ? - CORRECT ANSWER
Real property tax lien
You're working with Becky , who has just decided that she wants you to sell her house . Which of
these forms should you present to her ? - CORRECT ANSWER Exclusive right to sell
agreement
Which of the following is a reason a seller might consider selling his property through an installment
contract rather than a traditional sale ? - CORRECT ANSWER The seller may pay less in
capital gains taxes if he receives the proceeds from the sale over time rather than in a lump sum .
Asbestos can be identified in what way ? - CORRECT ANSWER By viewing it with a
polarized light microscope
The manufacturer of soundproofing , decorative material , shingles , and siding with bestos outlawed
in which decade ? - CORRECT ANSWER 1970s
Sondra , a buyer , signs all the required mortgage documentation , promising to make all payments to
her lender . Unfortunately , Sondra falls on hard times and misses multiple payments , and the bank
indicates that it's going to foreclose on her . The foreclosure proceedings are more difficult for the
lender because Sondra holds the deed to the land . What kind of state does Sondra live in ? -
CORRECT ANSWER A lien theory state
UPDATED QUESTIONS AND CORRECT
ANSWERS
As a licensee , you'll have several tasks you must perform for your buyer client . One of these tasks is
to - CORRECT ANSWER Review transaction documents with the buyer , clarifying anything
that could be confusing , without stepping outside the scope of your license
Your intuition can ______ a dangerous situation before it happens. - CORRECT ANSWER
Detect
The New York mansion tax would apply to which of the following properties ? - CORRECT
ANSWER A new condo with a sales price of $ 1 million
You're working with a buyer who's purchasing a home that appraised at $ 80,000 . The buyer is
obtaining a 90 % loan , and the lender will charge a one - point origination fee at closing . How much
will the loan origination fee be ? - CORRECT ANSWER $ 720
As part of his job , Mitchell determines a loan's rate and terms . What is Mitchell's job ? - CORRECT
ANSWER Mortgage banker
In investments , there are two types of depreciation , and each is defined by a particular event . Which
of the following most accurately pairs the depreciation type with the event it is tied to ? - CORRECT
ANSWER Tax depreciation and cost recovery
What type of professional must an investor use to conduct a tax - deferred exchange ? - CORRECT
ANSWER A qualified intermediary
Which of the following provides a summary of the title history ? - CORRECT ANSWER
Abstract of title
Three brokers meet and agree that all of their listing contracts will have one - year terms . Of which
type of antitrust violation is this an example ? - CORRECT ANSWER Price fixing
, Why should you advise your buyers to purchase insurance coverage , even if they make a cash
purchase ? - CORRECT ANSWER It protects their investment
When meeting a new client for the first time , where would be an ideal place to meet ? issues -
CORRECT ANSWER At your brokerage
How would you respond if your seller makes the following request ? " We've lived here 10 years and
love our neighbors . They're really concerned about the changes happening to the blocks around us ,
so we want to be careful about who we sell this house to . You know what we mean . You'll help us
find the ' right ' kind of buyer , won't you ? " - CORRECT ANSWER " It would be illegal to
limit the search based on race or religion or anything like that , but I promise I'll find you the most
qualified buyer I can , and we'll sell this house for the highest price possible . "
Which of the following is a lien that will take priority over all other liens ? - CORRECT ANSWER
Real property tax lien
You're working with Becky , who has just decided that she wants you to sell her house . Which of
these forms should you present to her ? - CORRECT ANSWER Exclusive right to sell
agreement
Which of the following is a reason a seller might consider selling his property through an installment
contract rather than a traditional sale ? - CORRECT ANSWER The seller may pay less in
capital gains taxes if he receives the proceeds from the sale over time rather than in a lump sum .
Asbestos can be identified in what way ? - CORRECT ANSWER By viewing it with a
polarized light microscope
The manufacturer of soundproofing , decorative material , shingles , and siding with bestos outlawed
in which decade ? - CORRECT ANSWER 1970s
Sondra , a buyer , signs all the required mortgage documentation , promising to make all payments to
her lender . Unfortunately , Sondra falls on hard times and misses multiple payments , and the bank
indicates that it's going to foreclose on her . The foreclosure proceedings are more difficult for the
lender because Sondra holds the deed to the land . What kind of state does Sondra live in ? -
CORRECT ANSWER A lien theory state
