ACEABLE REAL ESTATE PRINCIPALS 1 EXAM PRACTICE TEST WITH COMPLETE SOLUTIONS

ACEABLE REAL ESTATE PRINCIPALS 1 EXAM PRACTICE TEST WITH COMPLETE SOLUTIONS A married couple purchased a primary residence for $600,000 in 2015. They lived there for seven years. In 2022, they sold the property for $1,000,000. How much profit will they owe capital gains tax on? -answer0 What is a REALTOR®? -answera member of the National Association of Realtors®. Which of the following is NOT a category of the NAR® Code of Ethics? -answerDuties to lenders Select the statement that describes why trade fixtures are considered personal property. - answerTrade fixtures are items that a tenant uses in their business that will be removed at the end of the lease. What is the word used to describe something valuable that each party exchanges in order to demonstrate that they agree to the contract's terms? -answerconsideration In which type of residential property does a resident hold no actual ownership in the property, but instead holds a proprietary lease as a stockholder? -answerco-op Where do the funds in the Real Estate Recovery Trust Account come from? -answerlicense holders When a broker signs a listing agreement with a seller, under what classification of agency are they operating? -answerspecial agency What does the ADA do? -answerProhibits discrimination against people with disabilities For which of following things can an agent NOT discriminate? -answernational origin According to the Equal Credit Opportunity Act (ECOA), which of these factors can a lender NOT take into consideration when approving or denying a loan? -answerwhether or not a person uses public assistance According the Rectangular Survey system, what is the acreage of an area of land identified as the N 1/2 of the S/W 1/4 of the NE 1/4? -answer20 acres In Texas, mandatory membership to an HOA must be: -answerdisclosed Which of the following best describes when a broker might act as an intermediary in Texas? - answerwhen both the seller and the buyer are clients of the same broker What is the term for a rejection of an offer to buy or sell made with the simultaneous substitution of a new offer? -answercounteroffer The primary difference between an executory and an executed contract has to do with : - answerwhether or not the terms of the contract have been completely fulfilled by all parties When land is in short supply and in high demand: -answerit will be more valuable What is required for a broker to act as an intermediary in a real estate transaction? - answerwritten consent from both parties Which of these events is least likely to be covered by standard hazard (homeowners) insurance? -answerJason's basement flooded in a hurricane What type of property rights are limited to 10 acres of contiguous parcels (for urban property) or up to 200 acres of rural property? -answerhomestead rights Which of these would create constructive notice that you owned a property? - answerrecording the deed with the county Who does a listing agent usually represent? -answerseller Molly is part of a limited partnership. She does not handle the day-to-day business of the partnership, and she is liable only for the money she has invested in the partnership. Based on this description, what kind of partner is Molly most likely to be? -answerlimited partner The starting point for a metes and bounds legal description is called a: -answerpoint of beginning Oswald's home was foreclosed on. A contractor put a $5,000 mechanic's lien on the property on January 22, 2019. He owed $187,000 on his mortgage, originally taken out on May 1, 2015. He also owed $18,000 on a second mortgage, taken out September 13, 2017. He also owed $12,000 in property taxes. When the house is sold, in what order will these debts most likely be paid? -answertaxes, mortgage, second mortgage, mechanic's lien How does a condo differ from a PUD? -answerPUD buyers purchase both the building AND the land it sits on while condo buyers do NOT purchase land Which of the following is NOT a duty an agent owes a customer or third party? - answerloyalt