Real Estate License Exam Prep Course - National
Portion.
After discussing various terms and options for the sale of her property, Mary has decided
to extend an Option Contract to Shelly who is a potential purchaser. Shelly has stated to
Mary that she will consider the contract, as well as bringing it to her investors to discuss
their alternatives or to make a decision. This type of contract best describes which type of
contractual obligation? - ANS a. bilateral - a contract in which both parties have reciprocal
obligations towards each other
b. unilateral - a contact whereby only one party is obligated to perform his obligation to
another.
c. unenforceable - legal to do but cannot be sue for performance
d. executory - a contract not yet fully performed.
Which one of the below listed examples would best describe a requirement of an
employee rather than an independent contractor? - ANS a. Should have a written contract
with the broker stating their terms and status as a contractor.
b. Must carry an active real estate license.
c. On an annual basis at least 90% of stated income should come from production.
d. Paid a salary or hourly wage based on hours worked.
Which of the following is NOT considered one of the bundle of legal rights included with
real property ownership? - ANS a. right of possession
b. right of exclusion
c. right to future profit or gains
d. right of transfer
A property was sold with the closing date set for July 31. Property taxes of $3150.00 and
flood insurance of $680.00 were paid in advance by the seller and need to be prorated
through the date of closing. What would the property entry be for the buyer on the closing
documents, assuming a banker's year is used for all finances in this transaction? - ANS a.
Debit to buyer of $2,234.40
b. Credit to buyer of $2,234.40
c. Debit to seller of $1,596.00
, d. Debit to buyer of $1,596.00
Which of the following is generally considered a good idea in a real estate transaction but
likely is not required by law? - ANS a. disclosure of material defects
b. disclosure of agent representation
c. information regarding prior occupants possibly having HIV
d. property inspection
Of the following examples listed, choose the one which BEST describes negligent
misrepresentation: - ANS a. After taking a training course on advertising and marketing,
Bob the buyer's agent puts out social media advertisements which grossly mistake
property characteristics. He believes this practice is acceptable as he learned you need
"click bait" to make consumers click on his ads.
b. Knowing that termites will likely cause her listing to remain unsold for a period of time,
the listing agent informs her seller of the importance not to disclose this information and to
allow the buyers the opportunity to discover the termites on their own during inspections.
c. Not believing it to be a big deal, a seller informs her listing agent Sally that there is some
"moldy stuff" in the garage but they will "take care of it soon." During a phone call
concerning this listed property, Sally tells a potential buyer that there is no mold in the
property and "there is nothing to worry about."
d. After a previous discussion with her client, a listing agent incorrectly shares with a
customer that the property is not in a flood zone. The seller had provided an insurance
form from last year to the agent which appeared to show this as accurate.
If a borrower decised to sell a property which includes a mortgage loan that has not yet
been paid off, a particular clause will be invoked which requires repayment of the
remaining loan amount. This clause is known as the: - ANS a. exculpatory clause
b. covenant clause
c. granting clause - Words in a deed that indicated the grantors intent to transfer an
interest in property. Also called the words of conveyance
d. alienation clause - A provision in a security instrument that gives the lender the right to
declare the entire loan balance due immediately if the borrower sells or otherwise
transfers the security property. Also call a due-on-sale.
While acting as a listing agent under contract, during the process of showing your listing to
a buyer-customer the buyer proclaims their desire to pay even more than the asking price
Portion.
After discussing various terms and options for the sale of her property, Mary has decided
to extend an Option Contract to Shelly who is a potential purchaser. Shelly has stated to
Mary that she will consider the contract, as well as bringing it to her investors to discuss
their alternatives or to make a decision. This type of contract best describes which type of
contractual obligation? - ANS a. bilateral - a contract in which both parties have reciprocal
obligations towards each other
b. unilateral - a contact whereby only one party is obligated to perform his obligation to
another.
c. unenforceable - legal to do but cannot be sue for performance
d. executory - a contract not yet fully performed.
Which one of the below listed examples would best describe a requirement of an
employee rather than an independent contractor? - ANS a. Should have a written contract
with the broker stating their terms and status as a contractor.
b. Must carry an active real estate license.
c. On an annual basis at least 90% of stated income should come from production.
d. Paid a salary or hourly wage based on hours worked.
Which of the following is NOT considered one of the bundle of legal rights included with
real property ownership? - ANS a. right of possession
b. right of exclusion
c. right to future profit or gains
d. right of transfer
A property was sold with the closing date set for July 31. Property taxes of $3150.00 and
flood insurance of $680.00 were paid in advance by the seller and need to be prorated
through the date of closing. What would the property entry be for the buyer on the closing
documents, assuming a banker's year is used for all finances in this transaction? - ANS a.
Debit to buyer of $2,234.40
b. Credit to buyer of $2,234.40
c. Debit to seller of $1,596.00
, d. Debit to buyer of $1,596.00
Which of the following is generally considered a good idea in a real estate transaction but
likely is not required by law? - ANS a. disclosure of material defects
b. disclosure of agent representation
c. information regarding prior occupants possibly having HIV
d. property inspection
Of the following examples listed, choose the one which BEST describes negligent
misrepresentation: - ANS a. After taking a training course on advertising and marketing,
Bob the buyer's agent puts out social media advertisements which grossly mistake
property characteristics. He believes this practice is acceptable as he learned you need
"click bait" to make consumers click on his ads.
b. Knowing that termites will likely cause her listing to remain unsold for a period of time,
the listing agent informs her seller of the importance not to disclose this information and to
allow the buyers the opportunity to discover the termites on their own during inspections.
c. Not believing it to be a big deal, a seller informs her listing agent Sally that there is some
"moldy stuff" in the garage but they will "take care of it soon." During a phone call
concerning this listed property, Sally tells a potential buyer that there is no mold in the
property and "there is nothing to worry about."
d. After a previous discussion with her client, a listing agent incorrectly shares with a
customer that the property is not in a flood zone. The seller had provided an insurance
form from last year to the agent which appeared to show this as accurate.
If a borrower decised to sell a property which includes a mortgage loan that has not yet
been paid off, a particular clause will be invoked which requires repayment of the
remaining loan amount. This clause is known as the: - ANS a. exculpatory clause
b. covenant clause
c. granting clause - Words in a deed that indicated the grantors intent to transfer an
interest in property. Also called the words of conveyance
d. alienation clause - A provision in a security instrument that gives the lender the right to
declare the entire loan balance due immediately if the borrower sells or otherwise
transfers the security property. Also call a due-on-sale.
While acting as a listing agent under contract, during the process of showing your listing to
a buyer-customer the buyer proclaims their desire to pay even more than the asking price
