GOLD COAST STATE EXAM PRACTICE
TESTS Questions and Answers
1.When a sales contract fell apart, both parties made a claim on
the escrow de- posit. The broker followed the required
procedure and was eventually issued an escrow disbursement
order from FREC to give the deposit to the seller. The buyer
sues the broker and wins. Which of the following is true
regarding this situation?
Answer The recovery fund will cover the judgment and the broker will
not be disciplined.
2.New Commission rules must be approved by which of the
following entities?
Answer No one
3.Which of the following is the warrant in a deed in which the
grantor assures the grantee freedom from hostile claims
against their ownership?
Answer Warrant of quiet enjoyment
4.Jason has a listing on a house. The seller must sell because
the new house he had built is ready to close and he cannot
afford two mortgage payments. What can Jason do?
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,Answer He may not disclose the motivation of the seller
5.The warrant of quiet enjoyment can be found in which type of
deed?
Answer General Warranty
6.The sales price is $62,300 and the brokerage fee is 7%. The
commission will be split as follows; MLS 5%, with the remaining
95% split between the sales associate (65%) and broker (35%).
How much commission will the sales associate receive?
Answer $2,692.92
7.An applicant for a real estate license had their application
denied. All of the following are valid reasons for a denial,
EXCEPT?
Answer The applicant was not a US Citizen.
8.A homeowner visited a resort which contained a beautiful
pool with caves and a lazy river. The homeowner then spent
$100,000 to create a similar setting in their own yard. When the
property was appraised for financing purposes, the appraiser
only allocated $10,000 for the pool. What is this an example of?
Answer Over improvement
9.Who pays the balance due to the seller upon the closing of
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, a real estate transaction?
Answer The buyer
10.Which law prohibits discrimination on the basis of age in
the granting of loans?
Answer Equal Credit Opportunity Act
11.If a licensee does not renew a real estate license for any
renewal period other than the first renewal, what will happen
to their license?
Answer It will revert to involuntary inactive for a maximum of two
years.
12.When a brokerage firm and a home seller are about to enter
a fiduciary re- lationship, the seller must be provided with
which disclosure?
Answer Single Agency Notice
13.What is the role of the Federal Housing Administration?
Answer (b) Loan insurance
14.Prior to deregulation of the banking industry in the 1980s,
which insti- tutions were dominant in providing funds for the
purchase of single-family residences?
Answer Saving associations
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20
TESTS Questions and Answers
1.When a sales contract fell apart, both parties made a claim on
the escrow de- posit. The broker followed the required
procedure and was eventually issued an escrow disbursement
order from FREC to give the deposit to the seller. The buyer
sues the broker and wins. Which of the following is true
regarding this situation?
Answer The recovery fund will cover the judgment and the broker will
not be disciplined.
2.New Commission rules must be approved by which of the
following entities?
Answer No one
3.Which of the following is the warrant in a deed in which the
grantor assures the grantee freedom from hostile claims
against their ownership?
Answer Warrant of quiet enjoyment
4.Jason has a listing on a house. The seller must sell because
the new house he had built is ready to close and he cannot
afford two mortgage payments. What can Jason do?
1/
20
,Answer He may not disclose the motivation of the seller
5.The warrant of quiet enjoyment can be found in which type of
deed?
Answer General Warranty
6.The sales price is $62,300 and the brokerage fee is 7%. The
commission will be split as follows; MLS 5%, with the remaining
95% split between the sales associate (65%) and broker (35%).
How much commission will the sales associate receive?
Answer $2,692.92
7.An applicant for a real estate license had their application
denied. All of the following are valid reasons for a denial,
EXCEPT?
Answer The applicant was not a US Citizen.
8.A homeowner visited a resort which contained a beautiful
pool with caves and a lazy river. The homeowner then spent
$100,000 to create a similar setting in their own yard. When the
property was appraised for financing purposes, the appraiser
only allocated $10,000 for the pool. What is this an example of?
Answer Over improvement
9.Who pays the balance due to the seller upon the closing of
2/
20
, a real estate transaction?
Answer The buyer
10.Which law prohibits discrimination on the basis of age in
the granting of loans?
Answer Equal Credit Opportunity Act
11.If a licensee does not renew a real estate license for any
renewal period other than the first renewal, what will happen
to their license?
Answer It will revert to involuntary inactive for a maximum of two
years.
12.When a brokerage firm and a home seller are about to enter
a fiduciary re- lationship, the seller must be provided with
which disclosure?
Answer Single Agency Notice
13.What is the role of the Federal Housing Administration?
Answer (b) Loan insurance
14.Prior to deregulation of the banking industry in the 1980s,
which insti- tutions were dominant in providing funds for the
purchase of single-family residences?
Answer Saving associations
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20
