Comprehensive Study 1 Up to Date Content
Real Estate Final Exam (150
Questions ) #1 Latest Questions
and Graded Answers
A real estate licensee has a buyer agency agreement. What
is the seller in this situation?
Ans: A customer.
An optionor and an optionee make a contract for an option
on a commercial piece of property. If the optionee decides to
exercise his option, when must he perform?
Ans: He must exercise his option under the terms of
the option contract.
When can a landlord evict a disabled blind or disabled
tenant from the premises?
Ans: If the tenant has loud parties, makes too much
noise, and is constantly disturbing other tenants
4. Broker Carr, with ABC Real Estate Company, listed the
property with a seller. Broker Smith, with XYZ Real Estate
Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for
the sale of the property. What, if any, is the relationship
between the buyer's broker, the seller and the listing
broker?
Ans: There is not a relationship between the parties.
Broker Carr represents the Seller and Broker Smith
represents the Buyer.
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A buyer bought a property without telling the seller of his
intended purpose for the property. The contract contains no
contingency clauses and it is a properly executed contract.
After the closing, the buyer is unable to obtain the zoning he
needs for his commercial project. What is the contract at this
stage?
Ans: Enforceable
6. The seller and the buyer finally agreed to a purchase
price of $203,500 with the closing to occur on June 15. The
taxes for the year in the amount of $2,500 have not been paid
by the seller. (Taxes are paid in arrears). How much would
the tax proration amount to, and how would it appear on a full
settlement statement? Base your answer on a 365 day year,
and the buyer is responsible for the day of settlement.
Ans: $1,130.14 debit the seller and credit the buyer
A seller listed his home for six months on February 26. On
April 29, a buyer made an offer on the property. The listing
broker presented the offer to the seller on April 30. The
seller accepted the offer on May 1, with the closing to occur
on June 15. Assuming the closing took place on June 15,
when did the listing expire?
Ans: 6/15
The sellers listed their property for six months on February
26 for $522,500. They agreed to pay the listing broker a 7%
commission at closing on the agreed upon sale price. A
buyer made an offer on the property on March 29 for
$510,000. The seller countered the offer on April 1 at
$517,500, and the buyer accepted the counter offer with the
closing to occur on June 15. How much commission did the
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seller owe the listing broker, and how would it appear on the
settlement statement?
Ans: $36,225. Debit the seller.
The seller and the buyer agreed to a purchase price of
$270,000 with the closing to occur on June 15. The seller's
loan balance after the June 1 payment was $170,000. with an
interest rate of 6%.The monthly payment was $1,800
principal and interest. What was the loan balance the day of
closing, and how much interest did the seller owe the bank?
Ans: Loan balance $170,000; interest due $425
The buyer and seller agreed to a purchase price of
$310,500. The buyer received an 80% loan. How much was
the buyer's loan and how did it appear on the settlement
statement?
Ans: $ 248,400. Credit the buyer only.
A home improvement company was negotiating with a
homeowner to add on two rooms to a home. The company
agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The
company and the homeowner agreed to a price and the
company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the
following day. Assuming that the week had five business
days, until what time could the homeowner rescind the loan?
Ans: Friday, midnight (Three business day period)
The seller under a land contract is called
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Ans: The vendor
On an 8% straight term loan of $6,071, the borrower paid
total interest of $1,700. How long did he have the loan?
Ans: 42 months
Are recording fees and title insurance premiums part of the
Truth in Lending statement?
Ans: No, These are considered legal, not financing
fees and therefore are not part of the Truth in
Lending statement.
A mortgage broker
Ans: arranges loans between borrowers and
investors.
The Smiths' purchased a residence for $750,000. They made
a down payment of $150,000 and agreed to assume the
seller's existing mortgage, which had a current balance of
$230,000. The Smiths' financed the remaining $370,000 of the
purchase price by executing a second mortgage whereby
the seller became a mortgagee. This type of loan is called a
Ans: part purchase mortgage
On a $500,000 loan the borrower is required to pay two
points. How much does the borrower have to pay the lender?
Ans: $510,000.00
The discount points charged by a lender on a federal VA or
FHA loan are a percentage of the
Up to Date Content
Real Estate Final Exam (150
Questions ) #1 Latest Questions
and Graded Answers
A real estate licensee has a buyer agency agreement. What
is the seller in this situation?
Ans: A customer.
An optionor and an optionee make a contract for an option
on a commercial piece of property. If the optionee decides to
exercise his option, when must he perform?
Ans: He must exercise his option under the terms of
the option contract.
When can a landlord evict a disabled blind or disabled
tenant from the premises?
Ans: If the tenant has loud parties, makes too much
noise, and is constantly disturbing other tenants
4. Broker Carr, with ABC Real Estate Company, listed the
property with a seller. Broker Smith, with XYZ Real Estate
Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for
the sale of the property. What, if any, is the relationship
between the buyer's broker, the seller and the listing
broker?
Ans: There is not a relationship between the parties.
Broker Carr represents the Seller and Broker Smith
represents the Buyer.
Up to Date Content
,Comprehensive Study 2 Up to Date Content
A buyer bought a property without telling the seller of his
intended purpose for the property. The contract contains no
contingency clauses and it is a properly executed contract.
After the closing, the buyer is unable to obtain the zoning he
needs for his commercial project. What is the contract at this
stage?
Ans: Enforceable
6. The seller and the buyer finally agreed to a purchase
price of $203,500 with the closing to occur on June 15. The
taxes for the year in the amount of $2,500 have not been paid
by the seller. (Taxes are paid in arrears). How much would
the tax proration amount to, and how would it appear on a full
settlement statement? Base your answer on a 365 day year,
and the buyer is responsible for the day of settlement.
Ans: $1,130.14 debit the seller and credit the buyer
A seller listed his home for six months on February 26. On
April 29, a buyer made an offer on the property. The listing
broker presented the offer to the seller on April 30. The
seller accepted the offer on May 1, with the closing to occur
on June 15. Assuming the closing took place on June 15,
when did the listing expire?
Ans: 6/15
The sellers listed their property for six months on February
26 for $522,500. They agreed to pay the listing broker a 7%
commission at closing on the agreed upon sale price. A
buyer made an offer on the property on March 29 for
$510,000. The seller countered the offer on April 1 at
$517,500, and the buyer accepted the counter offer with the
closing to occur on June 15. How much commission did the
Up to Date Content
,Comprehensive Study 3 Up to Date Content
seller owe the listing broker, and how would it appear on the
settlement statement?
Ans: $36,225. Debit the seller.
The seller and the buyer agreed to a purchase price of
$270,000 with the closing to occur on June 15. The seller's
loan balance after the June 1 payment was $170,000. with an
interest rate of 6%.The monthly payment was $1,800
principal and interest. What was the loan balance the day of
closing, and how much interest did the seller owe the bank?
Ans: Loan balance $170,000; interest due $425
The buyer and seller agreed to a purchase price of
$310,500. The buyer received an 80% loan. How much was
the buyer's loan and how did it appear on the settlement
statement?
Ans: $ 248,400. Credit the buyer only.
A home improvement company was negotiating with a
homeowner to add on two rooms to a home. The company
agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The
company and the homeowner agreed to a price and the
company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the
following day. Assuming that the week had five business
days, until what time could the homeowner rescind the loan?
Ans: Friday, midnight (Three business day period)
The seller under a land contract is called
Up to Date Content
, Comprehensive Study 4 Up to Date Content
Ans: The vendor
On an 8% straight term loan of $6,071, the borrower paid
total interest of $1,700. How long did he have the loan?
Ans: 42 months
Are recording fees and title insurance premiums part of the
Truth in Lending statement?
Ans: No, These are considered legal, not financing
fees and therefore are not part of the Truth in
Lending statement.
A mortgage broker
Ans: arranges loans between borrowers and
investors.
The Smiths' purchased a residence for $750,000. They made
a down payment of $150,000 and agreed to assume the
seller's existing mortgage, which had a current balance of
$230,000. The Smiths' financed the remaining $370,000 of the
purchase price by executing a second mortgage whereby
the seller became a mortgagee. This type of loan is called a
Ans: part purchase mortgage
On a $500,000 loan the borrower is required to pay two
points. How much does the borrower have to pay the lender?
Ans: $510,000.00
The discount points charged by a lender on a federal VA or
FHA loan are a percentage of the
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