Pearson Vue Real Estate Insurance Exam
Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 80 multichoice Questions with Answers
1. a broker charges a leasing fee of one-half of the first months rent and a management fee of 8% of all rents
collected. the broker negotiates a two-year lease at a monthly rental of $550. which of the following amounts will
the broker earn on this lease
a. $1,378 b
$1,331 c.
$1,287
d. $1,056
Answer: B. $1,331
2. a property manager works in the BEST interests of the
a. tenant
b. owner
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,c. agent
d. bank
Answer: B. owner
3. in reviewing the deed to a listed property, a licensee noted a number of limitations regarding its use.
these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants
Answer: D. Restricted covenants
4. the price at which a willing and informed buyer would buy and a willing and informed seller would sell is
called the
a. assessed value
b. book value
c. income approach to value
d. market value
Answer: D. market value
5. the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment
Answer: B. office building
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, 6. the G's purchased a house from the T's. the G's agreed to the following terms: monthly payments of $650 to
the T's and the balance to be paid in full after 7 years. at the time the balance is paid, the T's will give the G's a
warranty deed transferring title. in this situation, what type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed
Answer: D. contract for deed
7. In stating a seller's price and terms to a prospective buyer, the seller's
broker is required by the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
c. favorable for the seller, as determined by the broker
d. attractive to buyers, as determined by the broker
Answer: A. included in the listing agreement
8. a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20 feet in the rear, and
20 feet on each side. if a builder wants to put a one-story building on the lot, the MAXIMUM square footage it can
contain is
a. 3,300 sq ft
b. 3,600 sq ft
c. 6,300 sq ft
d. 6,600 sq ft
Answer: C. 6,300 sq ft
9. a house with a market value of $80,000 is located where property is as- sessed at 70% of market value. if the
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, tax rate is $4 per $100 of assessed value, the property taxes are
a. $224 b.
$960 c.
$2,240
d. $3,200
Answer: C. $2,240
10. the provision in a mortgage or deed of trust that gives the lender the right to call the entire balance due upon
a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause
Answer: A. acceleration clause
11. a broker who represents a buyer is trying to negotiate on the buyer's behalf
in a potential transaction. the broker realizes that by negotiating a reduced price for the buyer, the broker's
commission will also be reduced. in this situation, the broker is obligated to negotiate the BEST price for the
A. buyer and broker
b. buyer
c. seller
d. brokerage
Answer: B. buyer
12. K and R bought a house as tenants in common. If K dies, which of the following statements about
ownership of the house is CORRECT?
a. it automatically becomes tenancy in severalty
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Questions with Verified Answers
100% Guarantee passing score of 90% or higher
Consist of 80 multichoice Questions with Answers
1. a broker charges a leasing fee of one-half of the first months rent and a management fee of 8% of all rents
collected. the broker negotiates a two-year lease at a monthly rental of $550. which of the following amounts will
the broker earn on this lease
a. $1,378 b
$1,331 c.
$1,287
d. $1,056
Answer: B. $1,331
2. a property manager works in the BEST interests of the
a. tenant
b. owner
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,c. agent
d. bank
Answer: B. owner
3. in reviewing the deed to a listed property, a licensee noted a number of limitations regarding its use.
these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants
Answer: D. Restricted covenants
4. the price at which a willing and informed buyer would buy and a willing and informed seller would sell is
called the
a. assessed value
b. book value
c. income approach to value
d. market value
Answer: D. market value
5. the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment
Answer: B. office building
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, 6. the G's purchased a house from the T's. the G's agreed to the following terms: monthly payments of $650 to
the T's and the balance to be paid in full after 7 years. at the time the balance is paid, the T's will give the G's a
warranty deed transferring title. in this situation, what type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed
Answer: D. contract for deed
7. In stating a seller's price and terms to a prospective buyer, the seller's
broker is required by the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
c. favorable for the seller, as determined by the broker
d. attractive to buyers, as determined by the broker
Answer: A. included in the listing agreement
8. a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20 feet in the rear, and
20 feet on each side. if a builder wants to put a one-story building on the lot, the MAXIMUM square footage it can
contain is
a. 3,300 sq ft
b. 3,600 sq ft
c. 6,300 sq ft
d. 6,600 sq ft
Answer: C. 6,300 sq ft
9. a house with a market value of $80,000 is located where property is as- sessed at 70% of market value. if the
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, tax rate is $4 per $100 of assessed value, the property taxes are
a. $224 b.
$960 c.
$2,240
d. $3,200
Answer: C. $2,240
10. the provision in a mortgage or deed of trust that gives the lender the right to call the entire balance due upon
a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause
Answer: A. acceleration clause
11. a broker who represents a buyer is trying to negotiate on the buyer's behalf
in a potential transaction. the broker realizes that by negotiating a reduced price for the buyer, the broker's
commission will also be reduced. in this situation, the broker is obligated to negotiate the BEST price for the
A. buyer and broker
b. buyer
c. seller
d. brokerage
Answer: B. buyer
12. K and R bought a house as tenants in common. If K dies, which of the following statements about
ownership of the house is CORRECT?
a. it automatically becomes tenancy in severalty
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