Rockwell Exam 3 Questions and Answers 100% Pass

Rockwell Exam 3 Questions and Answers 100% Pass Which of the following is TRUE about the holder of an inactive license? This person: A. may not perform any acts that require a real estate license B. is technically licensed, and may perform certain acts that require a real estate license C. can keep the license on inactive status for a maximum of three years D. must obtain 30 clock hours of real estate instruction prior to each inactive license renewal - A. may not perform any acts that require a real estate license A borrower defaults on a mortgage. What does the acceleration clause in the mortgage allow the lender to do? A. Compel the borrower to sell the property and repay the debt B. Demand immediate payment of the entire loan balance C. Prevent the borrower from selling the property 2 | P a g e Katelyn Whitman© 2025, All Rights Reserved. D. Report the borrower to a collection agency - B. Demand immediate payment of the entire loan balance A prospective tenant applies to rent a unit in a 12-unit apartment building, where the owner lives in one of the units and handles all lease transactions on his own. The tenant is turned down, and believes he has been discriminated against on the basis of his race. If true, this would be: A. lawful, because no discriminatory advertising was used B. lawful, because the owner lives on the premises C. lawful, because no real estate agent was used D. unlawful, because this is a 12-unit building - D. unlawful, because this is a 12-unit building Only lawful for four or fewer unit buildings If a licensee is sued based on her real estate activities, the licensee must notify the Real Estate Program Manager: A. if the judge determines the case to be serious enough to warrant disclosure 3 | P a g e Katelyn Whitman© 2025, All Rights Reserved. B. within 20 days of any settlement conference C. within 20 days of a court order, verdict, or judgment against the licensee D. at the conclusion of the case, unless the licensee intends to appeal - C. within 20 days of a court order, verdict, or judgment against the licensee A letter of intent: A. contains all terms and conditions of a contractual agreement B. is generally binding C. is used regularly in small residential transactions D. sets out basics prior to negotiation - D. sets out basics prior to negotiation A letter of intent is not a contract and isn't binding. Its just a preliminary statement that lays out parameters for negotiation of a contract An elderly woman gives a power of attorney to her son to manage all of her affairs. What sort of agent is he? A. Ostensible agent B. Special agent 4 | P a g e Katelyn Whitman© 2025, All Rights Reserved. C. Universal agent D. Unlimited agent - C. Universal agent The description of the power of attorney doesn't mention any limitations so the document gives the son universal agency authority. A plaintiff files a lawsuit involving a property and also files a separate document intended to provide notice of the lawsuit. This recorded notice of a pending legal action is called a/an: A. abstract of judgment B. petition for alienation C. writ of execution D. lis pendens - D. lis pendens When can an earnest money deposit be held by someone other than the firm that the check is made out to? A. When borrower and lender agree in writing B. When both parties agree in writing 5 | P a g e Katelyn Whitman© 2025, All Rights Reserved. C. When deposit funds will be used right away for repairs D. When the deposit amount is below a certain de minimis amount - B. When both parties agree in writing A real estate agent lists Harold's home, which he owns as a life estate. Harold's children hold the remainder interest. Which of the following is true? A. Someone who buys Harold's life estate receives only the interest held by Harold B. Harold's children need to sign the listing agreement C. The buyer will automatically receive a fee simple absolute interest D. Since a life estate cannot be sold, the listing is invalid - A. Someone who buys Harold's life estate receives only the interest held by Harold Which law prohibits discrimination in real estate transactions based on race, with no exceptions? A. Civil Rights Act of 1866 B,. Civil Rights Act of 1964 C. Civil Rights Act of 1968 D. Fair Housing Act - A. Civil Rights Act of 1866 6 | P a g e Katelyn Whitman© 2025, All Rights Reserved. 1866 prevents discrimination based on race or color in any real estate transaction, 1964 limited to programs where the federal government offers financial assistance. Fair Housing Act (part of 1986) is limited to residential transactions A buyer who records a deed is giving: A. constructive notice B. actual notice C. pending notice D. statutory notice - A. constructive notice When making the required agency disclosure, a licensee must always: A. conduct herself in conformity with the agency disclosu