AYPO Real Estate Principles
AYPO Real Estate Principles Of Real Estate Final Exam Practice
Questions & Answers Updated Edition
1. A real estate agent walked through a client's house. He noted 4 things: side yard is not maintained,
lock on back door doesn't effectively latch, support beams in the basement are discolored and has
some cracks, and some of the linoleum tiles in the kitchen are loose. Which of these items should he
suggest to be professionally inspected? - answer ✔ - the support beams in the basement
2. if the total cost of the loan is paid off in a set of scheduled payments across the term, the loan is... -
answer ✔ - fully amortized
3. In order for a deed to be legal, it must: - answer ✔ - be recorded with the county clerk
4. Does the real estate settlement procedures act allow the receiving of unearned fees for services not
actually preformed? - answer ✔ - no
5. What is the purpose of mortgage insurance - answer ✔ - to reimburse a lender should a borrower
default on a mortgage loan
6. What is the primary purpose of regular reconciliation on clients' trust accounts? - answer ✔ - to
catch problems when they are small
7. What kind of contract is an option? - answer ✔ - a unilateral contract
8. Discount points - answer ✔ - a fee that reduces the interest rate on a mortgage loan
1
AYPO Real Estate Principles
, AYPO Real Estate Principles
9. Carol takes out a second mortgage on her house. What should the bank issuing the second mortgage
do if they want to give their lien preferential weight over any other liens that may be imposed on
carol's property? - answer ✔ - perfect the lien from the second mortgage
10. What is the official legal term in michigan for listing or buyer agency agreement that est. An agency
relationship between a real estate broker and a client? - answer ✔ - service provision agreement
11. Equitable remedy - answer ✔ - reformation
12. Cc&rs in real estate stands for: - answer ✔ - covenants, conditions, and restrictions
13. If the demand for a product remains relatively the same, what is the best way to increase the value
of that product? - answer ✔ - decrease the supply of that product
14. Comprehensive long-range plan intended to guide growth and development of a community or
region? - answer ✔ - a master plan
15. Who reviews the form and content of the real estate exam? - answer ✔ - both the department of
licensing and regulations and the board of real estate brokers and salespersons
16. What type of agency is likely in a power of attorney arrangement? - answer ✔ - universal
17. A property owner is considering "buying" discount points for a $65,000 second mortgage with a 30
year term. This will lower annual interest rates from 10.5% to 9.5%. Is the total cost of the second
mortgage greater with the 10.5% annual interest rate or with the 9.5% rate and the added cost of
the points? - answer ✔ - greater total cost at 10.5% interest ($214,110)
2
AYPO Real Estate Principles
AYPO Real Estate Principles Of Real Estate Final Exam Practice
Questions & Answers Updated Edition
1. A real estate agent walked through a client's house. He noted 4 things: side yard is not maintained,
lock on back door doesn't effectively latch, support beams in the basement are discolored and has
some cracks, and some of the linoleum tiles in the kitchen are loose. Which of these items should he
suggest to be professionally inspected? - answer ✔ - the support beams in the basement
2. if the total cost of the loan is paid off in a set of scheduled payments across the term, the loan is... -
answer ✔ - fully amortized
3. In order for a deed to be legal, it must: - answer ✔ - be recorded with the county clerk
4. Does the real estate settlement procedures act allow the receiving of unearned fees for services not
actually preformed? - answer ✔ - no
5. What is the purpose of mortgage insurance - answer ✔ - to reimburse a lender should a borrower
default on a mortgage loan
6. What is the primary purpose of regular reconciliation on clients' trust accounts? - answer ✔ - to
catch problems when they are small
7. What kind of contract is an option? - answer ✔ - a unilateral contract
8. Discount points - answer ✔ - a fee that reduces the interest rate on a mortgage loan
1
AYPO Real Estate Principles
, AYPO Real Estate Principles
9. Carol takes out a second mortgage on her house. What should the bank issuing the second mortgage
do if they want to give their lien preferential weight over any other liens that may be imposed on
carol's property? - answer ✔ - perfect the lien from the second mortgage
10. What is the official legal term in michigan for listing or buyer agency agreement that est. An agency
relationship between a real estate broker and a client? - answer ✔ - service provision agreement
11. Equitable remedy - answer ✔ - reformation
12. Cc&rs in real estate stands for: - answer ✔ - covenants, conditions, and restrictions
13. If the demand for a product remains relatively the same, what is the best way to increase the value
of that product? - answer ✔ - decrease the supply of that product
14. Comprehensive long-range plan intended to guide growth and development of a community or
region? - answer ✔ - a master plan
15. Who reviews the form and content of the real estate exam? - answer ✔ - both the department of
licensing and regulations and the board of real estate brokers and salespersons
16. What type of agency is likely in a power of attorney arrangement? - answer ✔ - universal
17. A property owner is considering "buying" discount points for a $65,000 second mortgage with a 30
year term. This will lower annual interest rates from 10.5% to 9.5%. Is the total cost of the second
mortgage greater with the 10.5% annual interest rate or with the 9.5% rate and the added cost of
the points? - answer ✔ - greater total cost at 10.5% interest ($214,110)
2
AYPO Real Estate Principles
