Pearson vue real estate Exam, Multiple Choice Questions And Correct Answers.

Pearson vue real estate Exam, Multiple Choice Questions And Correct Answers. If a licensee is paid a salary of $600 per month plus half of the office's 6% fee on all sales, what MUST the licensee's monthly sales be in order for the licensee to receive a total monthly income of $2,220? A. 27,000 B. 37,000 C. 54,000 D. 74,000 An agreement that restricts the use and occupancy of real estate, is part of a conveyance, and is binding on all subsequent buyers is called a(n): A. Agreement for deed B. Non conforming use C. Documentary tax D. Covenant Which of the following items would have to be disclosed to prospective buyers by the listing broker? A. The price the seller paid to purchase the property B. A deflect existing in the property being offered C. The sellers motivation for the sell D. The lowest price the seller would accept If two lots, each 75 feet wide by 105 feet long, cost $30,000 in total, what is their approximate cost per square foot? A. $1 B. $2 C. $3 D. $4 In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income? A. Debt service B. Advances to owners C. Operating expenses D. Reserve for replacements c. Operating expenses The potential gross monthly rent on an apartment building is $5,380. In July, operating expenses were $3,500. A tenant whose monthly rent is $625 failed to pay rent in July. If the property manager's commission is 6% of the rental income, the manager's fee for July was: A. $113 B. $210 C. $285 D. $323 Which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of origin? A. Rectangular B. Lot and block C. Metes and bounds D. Geodetic A landlord enters into a lease with a tenant. The lease contains a provision stating that, if the landlord decides to sell the property during the term of the lease, the tenant will have the first right of refusal to purchase the property. Prior to the tenant's lease expiration, the landlord would like to sell the property. The landlord: A. May sell the property to someone else without notice B. May not sell the property to someone else C. Must offer the tenting the first opportunity to purchase D. Has no obligation to the tenant C. must offer the tenant the first opportunity to purchase If a prospective buyer is concerned about the electric service on a property, the buyer's licensee SHOULD: A. advise the buyer to hire inspectors to examine the property after the closing B. recommend that the buyer insert an inspection contingency in the purchase agreement C. recommend a home warranty for the electric appliances D. inspect the fuse box personally B. recommend that the buyer insert an inspection contingency in the purchase agreement A property has an appraised value of $50,000. A loan is granted on the property for 75% of its appraised value. The loan is spread over 25 years at an interest rate of 3/4% per month. If the amount paid toward the principal is to remain constant throughout the life of the loan, what is the FIRST monthly payment? A. 125 B. 281 C. 406 D. 500 C. 406 In a condominium apartment project, the BEST term to describe swimming pools and laundry rooms for the use of unit owners is: A. Common elements B. Limited common elements C. Fee simple elements D. Leasehold elements common elements Which of the following actions BEST describes proper supervision of a licensee by their broker? A. Requiring the licensee to pay quarterly taxes B. Scheduling floor time only during regular office hours C. Reviewing all documents and transaction files prior to closing D. Confirming the licensee has paid all dues and association fees monthly C. Reviewing all documents and transaction files prior to closing Buyers make an earnest money deposit on a property and sign a contract that is contingent on specific financing terms. Though a bank commits to the financing, the buyers end up changing their minds. The buyers proceed to notify the seller, in writing, that they do not intend to buy the property. Which of the following statements is CORRECT? A. The bank may sue the buyers for specific performance B. The seller may sue the buyers for breach of contract C. The buyers may rescind the contract only after paying the brokerage fee. D. The buyers are entitled to the return of the earnest money deposit. A minority couple asks a licensee to show them a listed house. The licensee suggests that they look at houses in areas with larger minority populations than that of the listed house. What is the licensee guilty of? A. Blockbusting B. Panic peddling C. Steering D. Redlining steering A buyer purchased a house for $80,000 and obtained a $60,000 mortgage. If 3 discount points were charged to originate the loan, the total cost of the origination fee is: A. 300 B. 600 C. 1800 D. 2400 The income approach is most likely to be used when determining the value of a(n): A. Office building B. Single family home C. Cooperative apartment D. Vacant residential lot office building Broker P lists a property for a seller. A buyer, represented by Broker Q, submits an offer to purchase the house and tells Broker P that they are willing to pay up to $10,000 more than the offer price, if the seller counters. In this situation, Broker P is: obligated to convey the information to the seller because of the duties to their client Public regulations that control the specific uses of land in a given area are called: A. Tax rates B. Zoning laws C. Deed restrictions D. Easements zoning laws If a purchase contract for a commercial property includes a due diligence contingency for the buyer, then the buyer MAY: A. continue the due diligence period by demand B. require the seller to repair items requested by the buyer C. Require the seller to arrange a second inspection after items are repaired D. terminate the contract if the buyer is not satisfied with the inspection terminate the contract if the buyer is not satisfied with the inspection A visually impaired person with a service animal completes an application for rental of an apartment that has a vigorously enforced "no pets" policy in the building. According to the Federal Fair Housing Act, the owner MAY: A. refuse to rent to the applicant as a result of the policy B. require the tenant to restore any damage to the apartment that results from the animal C. charge the applicant an increased security deposit D. require the tenant to house the animal outside of the apartment require the tenant to house the animal outside of the apartment A net lease affords the lessee the: A. Right to depreciate the building B. Deduction on interest paid on the mortgage C. Deduction for real estate taxes D. Right to sell the property deduction for real estate taxes Under a sales contract, the legal remedy that MAY be used to force the seller to consummate the sale is called: A. Foreclosure B. Forcible detainer C. Adverse possession D. Specific performance specific performance The presence of government-regulated wetlands on a building lot: A. Adds to the value of the lot B. Lowers property taxes C. Renders the lot useless D. Is a material fact is a material fact A licensee deposited a client's earnest money into the licensee's personal account to hold. This is considered illegal and known as: A. Commingling B. Money laundering C. Reconciliation D. Fraud commingling A valid real estate sales contract MUST A. Be signed by the seller B. Provide for installment payments C. provide for possession of the property by the buyer