Utah General Sales exam UPDATED ACTUAL Questions and CORRECT
Answers
M starts a small business teaching people how to do
unique types of quilting and stitchery and hires one per-
son to help her. She finds an old house to rent cheaply. It
only has one very small 1/2 bath, and five steps to get in
the front door. In this case, ADA requirements:
(a) are violated because a handicapped person would not a
have equal access.
(b) do not apply since there's only one employee.
(c) don't apply as it would be too costly for a small
business to make major construction modifications.
(d) only apply when there are more than 15 employees.
An agent from a buyer brokerage represents the:
(a) is a neutral facilitator
(b) buyer b
(c) seller
(d) seller and buyer
An appraisal may be considered complete without which
of the following?
(a) Property description
d
(b) Signature
(c) Date
(d) Sales approach
What term best describes a situation where the lessor
collects rents from the tenants and pays expenses out of
those rents?
(a) License estate b
(b) Gross lease
(c) Net lease
(d) Participation lease
,Which of the following is NOT a true statement about the
settlement statement?
(a) It will note if monies were paid up front.
(b) Buyer total closing cost appear on the back and front
of the statement. d
(c) It is to account for all money involved in the transac-
tion
(d) The seller's loan payoff will be a debit to the seller, a
credit to the buyer.
The buyers made an offer; the sellers accepted it by
signing the sales contract. Then the buyers decided they
wanted to extend closing a week later. What should the
agent do?
(a) X out the old date and write in the new date on the
contract. Give eveveryone a copy.
d
(b) Get the sellers permission, then notify the buyers of
their agreement.
(c) Rewrite the contract with the new date and get every-
one's signatures.
(d) Write an addendum with the new date and have both
parties sign.
If the interest rate on a straight loan is 8% and the monthly
interest payment is $650, what is the amount of the loan?
(a) $88,750
b
(b) $97,500
(c) $75,682
(d) $103,250
The appraiser was determing the value of the property
based on the cost approach. The outside dimensions of
the home were 28' x 40' and the cost was $11.25 per
square foot. His estimate of value was:
, (a) $126,000.00
(b) $1,530.00
d
(c) $765.00
(d) $12,600.00
An up-front cost the lender charges to the borrower, usu-
ally a percent of the loan amount, that generates profit
to the lender and factors in the lender's cost of getting
money.
d
(a) Document prep fee
(b) Title insurance fee
(c) Discount points
(d) Origination fee
In which of the following situations involving a 1031 would
income taxes NOT have to be paid?
(a) The exchange of a boat which can be a residence for
a single family home.
(b) Exchanging a duplex and a car for a triplex d
(c) The exchange of two properties resulting in one owner
owing $5,000 less than before on the property loan.
(d) The exchange of a fourplex in the city for a small farm
of equal value.
A lessee agreed to pay property tax and hazard insurance
as well as rent. This lease is:
(a) Gross lease
c
(b) Percentage lease
(c) Net lease
(d) Proprietary lease
Using the sales comparison method, the property adjust-
ment for a comparable property that is viewed to be worth
$10,000 more because it is newer would be:
, (a) Add $10,000 to the comparable property.
(b) Add $10,000 to the subject property.
d
(c) Subtract $10,000 from the subject property.
(d) Subtract $10,000 from the comparable property.
Which arrangement may occur in a typical construction
loan?
(a) The full loan is advanced before construction begins.
(b) Funds are given after construction is completed.
c
(c) Funds are paid in installments at various stages of
construction.
(d) Interest on the total amount of the loan is charged
from the beginning.
J carried back a 2nd mortgage when his home was sold.
Now he needs some ready cash and is going to sell it to a
secondary lender for 60% of face value. This discounting
of the loan does NOT have which of the following advan-
tages?
(a) It gets a lump sum of cash immediately for J.
b
(b) The person who bought the house and has the loan
will now pay a higher interest rate.
(c) It provides an increased yield for the secondary
lender.
(d) The secondary lender has a secured investment at
relatively high interest.
About 35% of the credit score consists of:
(a) The applicant's most recent 6 months of payment
behavior.
(b) The applicant's mix of trade accounts open. d
(c) The applicant's attitude toward taking on new debt.
(d) How promptly and consistently the applicant pays
his/her obligations.
Answers
M starts a small business teaching people how to do
unique types of quilting and stitchery and hires one per-
son to help her. She finds an old house to rent cheaply. It
only has one very small 1/2 bath, and five steps to get in
the front door. In this case, ADA requirements:
(a) are violated because a handicapped person would not a
have equal access.
(b) do not apply since there's only one employee.
(c) don't apply as it would be too costly for a small
business to make major construction modifications.
(d) only apply when there are more than 15 employees.
An agent from a buyer brokerage represents the:
(a) is a neutral facilitator
(b) buyer b
(c) seller
(d) seller and buyer
An appraisal may be considered complete without which
of the following?
(a) Property description
d
(b) Signature
(c) Date
(d) Sales approach
What term best describes a situation where the lessor
collects rents from the tenants and pays expenses out of
those rents?
(a) License estate b
(b) Gross lease
(c) Net lease
(d) Participation lease
,Which of the following is NOT a true statement about the
settlement statement?
(a) It will note if monies were paid up front.
(b) Buyer total closing cost appear on the back and front
of the statement. d
(c) It is to account for all money involved in the transac-
tion
(d) The seller's loan payoff will be a debit to the seller, a
credit to the buyer.
The buyers made an offer; the sellers accepted it by
signing the sales contract. Then the buyers decided they
wanted to extend closing a week later. What should the
agent do?
(a) X out the old date and write in the new date on the
contract. Give eveveryone a copy.
d
(b) Get the sellers permission, then notify the buyers of
their agreement.
(c) Rewrite the contract with the new date and get every-
one's signatures.
(d) Write an addendum with the new date and have both
parties sign.
If the interest rate on a straight loan is 8% and the monthly
interest payment is $650, what is the amount of the loan?
(a) $88,750
b
(b) $97,500
(c) $75,682
(d) $103,250
The appraiser was determing the value of the property
based on the cost approach. The outside dimensions of
the home were 28' x 40' and the cost was $11.25 per
square foot. His estimate of value was:
, (a) $126,000.00
(b) $1,530.00
d
(c) $765.00
(d) $12,600.00
An up-front cost the lender charges to the borrower, usu-
ally a percent of the loan amount, that generates profit
to the lender and factors in the lender's cost of getting
money.
d
(a) Document prep fee
(b) Title insurance fee
(c) Discount points
(d) Origination fee
In which of the following situations involving a 1031 would
income taxes NOT have to be paid?
(a) The exchange of a boat which can be a residence for
a single family home.
(b) Exchanging a duplex and a car for a triplex d
(c) The exchange of two properties resulting in one owner
owing $5,000 less than before on the property loan.
(d) The exchange of a fourplex in the city for a small farm
of equal value.
A lessee agreed to pay property tax and hazard insurance
as well as rent. This lease is:
(a) Gross lease
c
(b) Percentage lease
(c) Net lease
(d) Proprietary lease
Using the sales comparison method, the property adjust-
ment for a comparable property that is viewed to be worth
$10,000 more because it is newer would be:
, (a) Add $10,000 to the comparable property.
(b) Add $10,000 to the subject property.
d
(c) Subtract $10,000 from the subject property.
(d) Subtract $10,000 from the comparable property.
Which arrangement may occur in a typical construction
loan?
(a) The full loan is advanced before construction begins.
(b) Funds are given after construction is completed.
c
(c) Funds are paid in installments at various stages of
construction.
(d) Interest on the total amount of the loan is charged
from the beginning.
J carried back a 2nd mortgage when his home was sold.
Now he needs some ready cash and is going to sell it to a
secondary lender for 60% of face value. This discounting
of the loan does NOT have which of the following advan-
tages?
(a) It gets a lump sum of cash immediately for J.
b
(b) The person who bought the house and has the loan
will now pay a higher interest rate.
(c) It provides an increased yield for the secondary
lender.
(d) The secondary lender has a secured investment at
relatively high interest.
About 35% of the credit score consists of:
(a) The applicant's most recent 6 months of payment
behavior.
(b) The applicant's mix of trade accounts open. d
(c) The applicant's attitude toward taking on new debt.
(d) How promptly and consistently the applicant pays
his/her obligations.
