Donaldson Final Exam Real Estate principal With
Complete Solutions
Which of the following is an economical characteristic of land? - ANSWER-Situs
A man gave his best friend the right to go hunting on his farm. This would be an
example of a (an): - ANSWER-Easement in gross
You and your spouse own your house in a form of ownership in which neither of you
can sell the house individually your form of ownership is most likely: - ANSWER-
Tenancy by entirety
When discussing the concept of total square footage with your client , what is the best
way to describe how the total square footage is measurement ? - ANSWER-Total are
under Roof (TAUR)
An Eastman by necessity is generally utilized to - ANSWER-Grant access to a
Landlocked land owner
Joint Tennessee is a form of: - ANSWER-Coownership
A joint tenant may transfer his or her interest under which of the following
circumstances? - ANSWER-At any time, without permission or approval, but the
purchaser will not be a joint tenant
A natural object , such as a boulder stream or tree, maybe use as a marker in what form
of legal description - ANSWER-Metes and bounds
What is the method of land description that identify as parcel by its shape boundaries? -
ANSWER-Metes and bounds
Does Zone of property with a gas station is substantially changed to allow residential
use only which of the following is true regarding the future use of a gas station -
ANSWER-The gas Station may continue in is current use
The process of taking property while providing just compensation, is called - ANSWER-
condemnation
An Easement by necessity is generally utilized to - ANSWER-Grant access to land lock
land owner
Which of the following grants zoning authority to municipal government? - ANSWER-
State enabling act
,Zoning laws, building codes in environmental law or example of government use of -
ANSWER-Police power
An appraisal uses. the cost approach, in appraiser a home the appraisal should not use
which of the following type of information - ANSWER-Depreciation on the lane
For consideration during the appraisal process, which of the following is most likely be
used as part of the valuation or estimation process - ANSWER-Effective age
An agent is trying to establish value for a residential rental home, using sold, rental
comparables, in the neighborhood which of the following is the most likely methods use
for the income approach to value - ANSWER-Gross rent multiply method
Which of the following types of depreciation is general in curable - ANSWER-
The amount of commission charged a client is established - ANSWER-In negotiation
between broker and seller.
A deposit in a typical Real Estate transaction - ANSWER-Must be maintained by the
broker
In the brokers designated escrow
Account.
When the association of an associate broker or salesperson is terminated with their firm
for any reason, the broker must return the license to the LREC: - ANSWER-With in 5
days
If a broker is involved in obtaining deposits in property management, the broker must -
ANSWER-open an account titled "Security Deposit Trust Account".
Sale people cannot accept a commission or valuable consideration for the performance
of any act under the license law from any person except their - ANSWER-Sponsoring
broker
According to the license law must be . - ANSWER-In writing
If a broker cannot resolve a dispute over a sales deposit - ANSWER-he must give the
money to the local court and notify commission .
Every license must sign a sworn statement on their application attesting that they shall
not induce any person to sell or rent and dwelling by representation regarding the entry
of any person to the area due to that persons race color religion or national origin this
prohibited is know as - ANSWER-Block busting
A law suite base on lesion by and moiety must be filled within - ANSWER-One year
,If two or more person own the same piece of property each as an undivided share , this
is refined to ad a - ANSWER-Undivided interest
A vendor who wishes to keep a life interest and convey the remainder to a relative may
best do this by which of the following methods? - ANSWER-
you sign lease for one year and took possession of an apartment when the lease
expired you continued to live in the apartment without the owner consent your tendency
would be considered to be - ANSWER-Tenancy at sufferances
A man gave his best friend the right to go hunting on his farm. This would be an
example of a (an): - ANSWER-easement in gross
Zoning regulations and decision are usually handle by - ANSWER-Town and cities
Ad valorem is Latin for - ANSWER-According to value
A property is sold under a deed restriction ( CCR) that state s the property may not be
use as a bakery under these conditions which of the following is true? - ANSWER-A
adjoining property owner may enforce the restriction by a court injunction
John own a peace of property and want to build a new structure with in 15 feet of his
property line how ever local law requires a 20 foot set back for any improvement he
should apply to the local government for a - ANSWER-
Disclosing a suicide or murder that occurred on the property - ANSWER-not a material
fact
Material Facts include - ANSWER-easements.
encroachments.
and
structural issues.
Of the following, which would not be considered a material fact that should be disclosed
to a purchaser if the agent is representing the seller and is aware of the situation? -
ANSWER-The previous owner murdered his wife in the home and committed suicide.
Defects that a seller is required by law to correct include: - ANSWER-none of the above
The current occupancy of the property by someone with HIV is: - ANSWER-illegal to
disclose.
A seller has slab problems which have resulted in cracked walls. The seller covers up
the cracks and does not disclose to anyone that there is a problem. Under these
conditions, which of the following is true? - ANSWER-the buyers can sue the seller for
concealing the defect.
, A buyer notices that the roof does not seem quite right and asks their agent if the roof
leaks. The agent responds that upon asking the seller about the roof he was told that
there is no seepage and no leaks. However, later it is discovered that there is a
seepage problem with the roof. Which of the following best describes the agent's
position in this situation? - ANSWER-Nothing was done wrong improper in this
situation .
The broker has listed an owner's home. This agreement will be terminated by all of the
following EXCEPT: - ANSWER-
An agency is best described as when the: - ANSWER-broker represents the principal.
Under the Law of Agency, the Principal owes the Agent: - ANSWER-assistance in the
sale of the property.
compensation for service.
reimbursement for agreed upon expenses.
All of the above.
The relationship of the broker to the listing owner who hired him or her is best described
using which term? - ANSWER-Fiduciary
The amount of the commission is determined by: - ANSWER-negotiation of the parties
All of the following are considered agents EXCEPT - ANSWER-personal assistant
Which of the following is an example of a Principal-Agency Contract? - ANSWER-Buyer
Representative Contract
As a licensed real estate salesperson, Mary works as a designated agent for her broker
on a listing for Sally the seller. Mary also likes to work with buyers, and has several
buyers currently working with her in addition to Sally's listing. One of Mary's buyers
attends her open house for Sally seller's property and expresses interest in the home.
The potential buyer asks Mary about the asking price and how much "room for
negotiation" there is, and Mary tells her buyer client that the home is definitely
overpriced. Choose the statement which BEST identifies this situation: - ANSWER-By
showing the listed property to her buyer client, Mary is acting as an undisclosed dual
agent since no disclosure form was used. Furthermore, she has breached her fiduciary
duty to her seller by discussing the property's pricing with her buyer client.
Bob the broker has been contacted by a bank to provide a valuation estimate on a
home going into foreclosure. For an agreed upon fee, Bob prepares a valuation report
and submits it to the bank representative. What would this report MOST likely be
considered? - ANSWER-A Broker Price Opinion (BPO).
Complete Solutions
Which of the following is an economical characteristic of land? - ANSWER-Situs
A man gave his best friend the right to go hunting on his farm. This would be an
example of a (an): - ANSWER-Easement in gross
You and your spouse own your house in a form of ownership in which neither of you
can sell the house individually your form of ownership is most likely: - ANSWER-
Tenancy by entirety
When discussing the concept of total square footage with your client , what is the best
way to describe how the total square footage is measurement ? - ANSWER-Total are
under Roof (TAUR)
An Eastman by necessity is generally utilized to - ANSWER-Grant access to a
Landlocked land owner
Joint Tennessee is a form of: - ANSWER-Coownership
A joint tenant may transfer his or her interest under which of the following
circumstances? - ANSWER-At any time, without permission or approval, but the
purchaser will not be a joint tenant
A natural object , such as a boulder stream or tree, maybe use as a marker in what form
of legal description - ANSWER-Metes and bounds
What is the method of land description that identify as parcel by its shape boundaries? -
ANSWER-Metes and bounds
Does Zone of property with a gas station is substantially changed to allow residential
use only which of the following is true regarding the future use of a gas station -
ANSWER-The gas Station may continue in is current use
The process of taking property while providing just compensation, is called - ANSWER-
condemnation
An Easement by necessity is generally utilized to - ANSWER-Grant access to land lock
land owner
Which of the following grants zoning authority to municipal government? - ANSWER-
State enabling act
,Zoning laws, building codes in environmental law or example of government use of -
ANSWER-Police power
An appraisal uses. the cost approach, in appraiser a home the appraisal should not use
which of the following type of information - ANSWER-Depreciation on the lane
For consideration during the appraisal process, which of the following is most likely be
used as part of the valuation or estimation process - ANSWER-Effective age
An agent is trying to establish value for a residential rental home, using sold, rental
comparables, in the neighborhood which of the following is the most likely methods use
for the income approach to value - ANSWER-Gross rent multiply method
Which of the following types of depreciation is general in curable - ANSWER-
The amount of commission charged a client is established - ANSWER-In negotiation
between broker and seller.
A deposit in a typical Real Estate transaction - ANSWER-Must be maintained by the
broker
In the brokers designated escrow
Account.
When the association of an associate broker or salesperson is terminated with their firm
for any reason, the broker must return the license to the LREC: - ANSWER-With in 5
days
If a broker is involved in obtaining deposits in property management, the broker must -
ANSWER-open an account titled "Security Deposit Trust Account".
Sale people cannot accept a commission or valuable consideration for the performance
of any act under the license law from any person except their - ANSWER-Sponsoring
broker
According to the license law must be . - ANSWER-In writing
If a broker cannot resolve a dispute over a sales deposit - ANSWER-he must give the
money to the local court and notify commission .
Every license must sign a sworn statement on their application attesting that they shall
not induce any person to sell or rent and dwelling by representation regarding the entry
of any person to the area due to that persons race color religion or national origin this
prohibited is know as - ANSWER-Block busting
A law suite base on lesion by and moiety must be filled within - ANSWER-One year
,If two or more person own the same piece of property each as an undivided share , this
is refined to ad a - ANSWER-Undivided interest
A vendor who wishes to keep a life interest and convey the remainder to a relative may
best do this by which of the following methods? - ANSWER-
you sign lease for one year and took possession of an apartment when the lease
expired you continued to live in the apartment without the owner consent your tendency
would be considered to be - ANSWER-Tenancy at sufferances
A man gave his best friend the right to go hunting on his farm. This would be an
example of a (an): - ANSWER-easement in gross
Zoning regulations and decision are usually handle by - ANSWER-Town and cities
Ad valorem is Latin for - ANSWER-According to value
A property is sold under a deed restriction ( CCR) that state s the property may not be
use as a bakery under these conditions which of the following is true? - ANSWER-A
adjoining property owner may enforce the restriction by a court injunction
John own a peace of property and want to build a new structure with in 15 feet of his
property line how ever local law requires a 20 foot set back for any improvement he
should apply to the local government for a - ANSWER-
Disclosing a suicide or murder that occurred on the property - ANSWER-not a material
fact
Material Facts include - ANSWER-easements.
encroachments.
and
structural issues.
Of the following, which would not be considered a material fact that should be disclosed
to a purchaser if the agent is representing the seller and is aware of the situation? -
ANSWER-The previous owner murdered his wife in the home and committed suicide.
Defects that a seller is required by law to correct include: - ANSWER-none of the above
The current occupancy of the property by someone with HIV is: - ANSWER-illegal to
disclose.
A seller has slab problems which have resulted in cracked walls. The seller covers up
the cracks and does not disclose to anyone that there is a problem. Under these
conditions, which of the following is true? - ANSWER-the buyers can sue the seller for
concealing the defect.
, A buyer notices that the roof does not seem quite right and asks their agent if the roof
leaks. The agent responds that upon asking the seller about the roof he was told that
there is no seepage and no leaks. However, later it is discovered that there is a
seepage problem with the roof. Which of the following best describes the agent's
position in this situation? - ANSWER-Nothing was done wrong improper in this
situation .
The broker has listed an owner's home. This agreement will be terminated by all of the
following EXCEPT: - ANSWER-
An agency is best described as when the: - ANSWER-broker represents the principal.
Under the Law of Agency, the Principal owes the Agent: - ANSWER-assistance in the
sale of the property.
compensation for service.
reimbursement for agreed upon expenses.
All of the above.
The relationship of the broker to the listing owner who hired him or her is best described
using which term? - ANSWER-Fiduciary
The amount of the commission is determined by: - ANSWER-negotiation of the parties
All of the following are considered agents EXCEPT - ANSWER-personal assistant
Which of the following is an example of a Principal-Agency Contract? - ANSWER-Buyer
Representative Contract
As a licensed real estate salesperson, Mary works as a designated agent for her broker
on a listing for Sally the seller. Mary also likes to work with buyers, and has several
buyers currently working with her in addition to Sally's listing. One of Mary's buyers
attends her open house for Sally seller's property and expresses interest in the home.
The potential buyer asks Mary about the asking price and how much "room for
negotiation" there is, and Mary tells her buyer client that the home is definitely
overpriced. Choose the statement which BEST identifies this situation: - ANSWER-By
showing the listed property to her buyer client, Mary is acting as an undisclosed dual
agent since no disclosure form was used. Furthermore, she has breached her fiduciary
duty to her seller by discussing the property's pricing with her buyer client.
Bob the broker has been contacted by a bank to provide a valuation estimate on a
home going into foreclosure. For an agreed upon fee, Bob prepares a valuation report
and submits it to the bank representative. What would this report MOST likely be
considered? - ANSWER-A Broker Price Opinion (BPO).
