PRINCIPLES Real Estate Practice Chapter 19 Exam Practice Solved 100%

1 of 50 - What is one of the major objectives of professional property management? A. Maximize the return to the property management firm. B. Minimize expenses while maximizing profits for the owner. C. Help control area rent schedules. D. Maintain 100 percent occupancy. - Answer B. Minimize expenses while maximizing profits for the owner. 2 of 50 - Which of the following newspaper information is not helpful in developing a Prospecting Plan? A. Birth and Death Announcements B. Code Violations and Tax Delinquencies C. Promotions and Job Transfers D. Editorials and Bid Proposals - Answer D. Editorials and Bid Proposals 3 of 50 - The title report on a property shows there is a lien on the property. Who is responsible for removing the lien to clear the title? A. Broker B. Title company C. Buyer D. Seller - Answer D. Seller 4 of 50 - Glenna and Amanda just bought their first home. They will have a number of new expenses as a result of this purchase. Which of these expenses is not associated with owning a home? A. Real estate taxes B. Interest on the loan C. Personal property tax D. Homeowner's insurance - Answer C. Personal property tax 5 of 50 - Once signed, escrow instructions can be changed only by: A. The escrow agent B. The broker C. Amending the purchase agreement D. Mutual consent of both parties - Answer D. Mutual consent of both parties 6 of 50 - Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation? A. Equal Credit Opportunity Act B. Truth in Lending C. Real Estate Settlement and Procedures Act D. Fair Housing laws - Answer B. Truth in Lending 7 of 50 - When doing a competitive market analysis, the recently sold properties you include should have sold within what timeframe? A. The past month B. Past three to six months C. Past seven months D. Last six to nine months - Answer B. Past three to six months 8 of 50 - Eric is acting as a disclosed dual agent in a transaction. Which statement is true? A. Eric can require that both the buyer and seller share equally in his commission. B. He must withdraw his representation of one of the parties. C. Eric may not represent the seller's interests to the detriment of the buyer. D. Eric's broker should appoint Eric as the designated agent in this transaction. - Answer C. Eric may not represent the seller's interests to the detriment of the buyer. 9 of 50 - Veteran Bill has applied and been approved for a non-VA-guaranteed CalVet loan. Which of the following statements is not true? A. Bill will pay a 3% down payment. B. Bill is purchasing a 6-family apartment building. C. If Bill pays off the loan early, there will be no prepayment penalty. D. There is a loan protection plan included with the loan. - Answer B. Bill is purchasing a 6-family apartment building. 10 of 50 - Alice is an employee of Mid-State Realty Services. She would likely be required to do which of the following? A. List properties in her own name. B. Attend weekly staff meetings at the office. C. Accept commissions from referral agents. D. Pay for worker's compensation. - Answer B. Attend weekly staff meetings at the office. 11 of 50 - Which one of these statements would not be considered a measurable goal? A. I will make two new contacts every day this week. B. I will practice my listing presentations. C. I will get three new listings this month. D. I will complete a property management seminar within the next year. - Answer B. I will practice my listing presentations. 12 of 50 - What is the primary role of Fannie Mae? A. To purchase conventional, FHA and VA loans B. To guarantee all FHA and VA loans C. To originate FHA and VA loans D. To insure conventional, FHA and VA loans - Answer A. To purchase conventional, FHA and VA loans