Pearson VUE practice test questions
and answers with absolute solutions
c. Bill of sale CORRECT ANSWERS 1A buyer purchases a furnished condominimum apartment as an investment. The document that evidences the buyer's ownership of the
furniture is a a. Special warranty deed b. Homeowner's insurance policy
c. Bill of sale
d. Buyers inventory
d. Accrued depreciation CORRECT ANSWERS Using the cost approach, an f calculates the current new replacement cost of a 15 year old structure. The next factor the appraiser will consider n completing this approach is:
a. Land value
b. Capitalization rate
c. Net operating income
d. Accrued depreciation
c. 14320 CORRECT ANSWERS A buyer purchases a home for $55,000 and gets a commitment from a lender for an 80% loan. The lender has advised the buyer that 3 discount points will be charged. If additional closing costs are $2,000, how much total cash MUST the buyer have at closing?
a. 1300
b. 13200
c. 14320
d. 15650
c. Always prohibited CORRECT ANSWERS Any referral of a settlement service provider for compensation is a. Only allowed on federally funded transaction
b. Allowed when fully disclosed
c. Always prohibited
d. Only prohibited on federally funded transaction
a. Earnest monies received from a clients properties in the agency's business account CORRECT ANSWERS A licensee is commingling trust funds by depositing:
a. Earnest monies received from a clients properties in the agency's business account
b. Earnest monies and rents received from a client's various properties in the same escrow/trust account
c. Rents received from the licensee's own properties in a personal account
d. Tenants security depositites received from various clients properties in the same escrow/trust account. b. 51200 CORRECT ANSWERS A lease calls for a commercial tenant to pay a guaranteed rental of $1,775 per month plus 6.5% of the gross income in excess of $325,000 per year. If the yearly gross income is $785,000, what is the annual rent?
a. 51025
b. 51200
c. 52800
d. 72325
c. Built-in dishwasher CORRECT ANSWERS The lease of a restaurant terminates and the tenant wishes to move to another location. Which of the following items can the tenant remove from the restaurant as trade fixtures?
a. Sprinkler system
b. Radiators
c. Built-in dishwasher
d. Recessed ceiling lighting
b. Equitable title CORRECT ANSWERS A buyer's interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as:
a. Legal title
b. Equitable title c. Fee simple determinable
d. An option to purchase
d. Nonconforming use CORRECT ANSWERS K owns and operates a small restaurant in an area recently annexed by a nearby city. As part of the annexation, the area was zoned for single-family residence, but K is allowed to continue operating the restaurant under the city's amended zoning ordinance. The allowance for K's continued operation is known as:
a. Variance b. Spot zoning c. Conditional use
d. Nonconforming use
c. Constructive fraud CORRECT ANSWERS An unintentional or negligent misrepresentation would BEST be described as:
a. Tortious action
b. Puffing
c. Constructive fraud
d. Breach of duty
c. Environmental protection agency CORRECT ANSWERS The entity that is charged with enforcing CERCLA in the case of an owner who allows the dumping of wastes on a
property is the:
a. Department of housing and urban development
b. Federal emergency management agency c. Environmental protection agency d. Occupational safety and health administration
d. Utility, scarcity, demand, and transferability CORRECT ANSWERS The four essential
elements of value are:
a. Governmental, economic, social, and physical
b. Police power, escheat, location, and versatility
c. Functionality, economy, zoning, obsolescence
d. Utility, scarcity, demand, and transferability
b. The broker has not earned a commission. CORRECT ANSWERS A broker spoke with a homeowner about obtaining an exclusive right-to-sell listing on the homeowner's property. Before signing the listing contract, the homeowner was approached by a buyer, who offered to buy the homeowner's property. The homeowner and the buyer signed a purchase agreement, and the buyer gave the homeowner a $500 earnest money check. Which of the following statements about this situation is CORRECT?
a. The homeowner must deposit the earnest money check in the broker's trust account.
b. The broker has not earned a commission.
c. The homeowner and the buyer do not have a contract of sale.
d. The homeowner must reimburse the broker for any expenses incurred.
b. The owner CORRECT ANSWERS A sales agent is meeting with a potential home seller about listing their home. There are many comparable properties for sale in the neighborhood. Who determines the listing price?
a. The real estate commissions b. The owner
c. The broker
d. The sales agent
d. 305,000 CORRECT ANSWERS Ten years ago, a house valued at $200,000 was built on a two-acre plot valued at $50,000. Five years later, one acre of the plot was sold
for $60,000. If the rest of the lot continued to appreciate at the same average annual percent and if the house appreciated at 1/2 percent a year, what is the present combined value of the house and lot?
a. 255,000
b. 280,000
c. 285,000
d. 305,000
a. Off-site improvements CORRECT ANSWERS Quality and adequacy of water and sewer, availability and cost of energy, and access and condition of public roads are factors that are categorized as:
a. Off-site improvements
b. On-site improvements
c. Zoning considerations
d. Soft costs
and answers with absolute solutions
c. Bill of sale CORRECT ANSWERS 1A buyer purchases a furnished condominimum apartment as an investment. The document that evidences the buyer's ownership of the
furniture is a a. Special warranty deed b. Homeowner's insurance policy
c. Bill of sale
d. Buyers inventory
d. Accrued depreciation CORRECT ANSWERS Using the cost approach, an f calculates the current new replacement cost of a 15 year old structure. The next factor the appraiser will consider n completing this approach is:
a. Land value
b. Capitalization rate
c. Net operating income
d. Accrued depreciation
c. 14320 CORRECT ANSWERS A buyer purchases a home for $55,000 and gets a commitment from a lender for an 80% loan. The lender has advised the buyer that 3 discount points will be charged. If additional closing costs are $2,000, how much total cash MUST the buyer have at closing?
a. 1300
b. 13200
c. 14320
d. 15650
c. Always prohibited CORRECT ANSWERS Any referral of a settlement service provider for compensation is a. Only allowed on federally funded transaction
b. Allowed when fully disclosed
c. Always prohibited
d. Only prohibited on federally funded transaction
a. Earnest monies received from a clients properties in the agency's business account CORRECT ANSWERS A licensee is commingling trust funds by depositing:
a. Earnest monies received from a clients properties in the agency's business account
b. Earnest monies and rents received from a client's various properties in the same escrow/trust account
c. Rents received from the licensee's own properties in a personal account
d. Tenants security depositites received from various clients properties in the same escrow/trust account. b. 51200 CORRECT ANSWERS A lease calls for a commercial tenant to pay a guaranteed rental of $1,775 per month plus 6.5% of the gross income in excess of $325,000 per year. If the yearly gross income is $785,000, what is the annual rent?
a. 51025
b. 51200
c. 52800
d. 72325
c. Built-in dishwasher CORRECT ANSWERS The lease of a restaurant terminates and the tenant wishes to move to another location. Which of the following items can the tenant remove from the restaurant as trade fixtures?
a. Sprinkler system
b. Radiators
c. Built-in dishwasher
d. Recessed ceiling lighting
b. Equitable title CORRECT ANSWERS A buyer's interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as:
a. Legal title
b. Equitable title c. Fee simple determinable
d. An option to purchase
d. Nonconforming use CORRECT ANSWERS K owns and operates a small restaurant in an area recently annexed by a nearby city. As part of the annexation, the area was zoned for single-family residence, but K is allowed to continue operating the restaurant under the city's amended zoning ordinance. The allowance for K's continued operation is known as:
a. Variance b. Spot zoning c. Conditional use
d. Nonconforming use
c. Constructive fraud CORRECT ANSWERS An unintentional or negligent misrepresentation would BEST be described as:
a. Tortious action
b. Puffing
c. Constructive fraud
d. Breach of duty
c. Environmental protection agency CORRECT ANSWERS The entity that is charged with enforcing CERCLA in the case of an owner who allows the dumping of wastes on a
property is the:
a. Department of housing and urban development
b. Federal emergency management agency c. Environmental protection agency d. Occupational safety and health administration
d. Utility, scarcity, demand, and transferability CORRECT ANSWERS The four essential
elements of value are:
a. Governmental, economic, social, and physical
b. Police power, escheat, location, and versatility
c. Functionality, economy, zoning, obsolescence
d. Utility, scarcity, demand, and transferability
b. The broker has not earned a commission. CORRECT ANSWERS A broker spoke with a homeowner about obtaining an exclusive right-to-sell listing on the homeowner's property. Before signing the listing contract, the homeowner was approached by a buyer, who offered to buy the homeowner's property. The homeowner and the buyer signed a purchase agreement, and the buyer gave the homeowner a $500 earnest money check. Which of the following statements about this situation is CORRECT?
a. The homeowner must deposit the earnest money check in the broker's trust account.
b. The broker has not earned a commission.
c. The homeowner and the buyer do not have a contract of sale.
d. The homeowner must reimburse the broker for any expenses incurred.
b. The owner CORRECT ANSWERS A sales agent is meeting with a potential home seller about listing their home. There are many comparable properties for sale in the neighborhood. Who determines the listing price?
a. The real estate commissions b. The owner
c. The broker
d. The sales agent
d. 305,000 CORRECT ANSWERS Ten years ago, a house valued at $200,000 was built on a two-acre plot valued at $50,000. Five years later, one acre of the plot was sold
for $60,000. If the rest of the lot continued to appreciate at the same average annual percent and if the house appreciated at 1/2 percent a year, what is the present combined value of the house and lot?
a. 255,000
b. 280,000
c. 285,000
d. 305,000
a. Off-site improvements CORRECT ANSWERS Quality and adequacy of water and sewer, availability and cost of energy, and access and condition of public roads are factors that are categorized as:
a. Off-site improvements
b. On-site improvements
c. Zoning considerations
d. Soft costs
