Sales General Exam UPDATED ACTUAL Questions and CORRECT Answers
A new Truth-in-Lending (TIL) disclosure must be provid-
ed:
(a) Within 3 business days of discovering the annual
percentage rate changed by more than 1/8%.
(b) At least 3 days prior to closing whether there has been
a
a change in annual percentage rate or not.
(c) Within 7 business days of discovering the annual
percentage rate changed by more than 1/4%.
(d) Within 3 business days of discovering the annual
percentage rate changed by more than 1/4%
Broker L lists a home and offers subagency through the
MLS. Broker S takes a buyer to the house and then writes
an offer to purchase. Broker L has never met the buyer.
Broker S has never met the seller. Broker S does not have
a written contract with the buyer. Which is true? b
(a) Broker S is the agent for the buyer and seller.
(b) Both Broker L and Broker S are agents of the seller.
(c) Broker L is the agent of the buyer.
(d) Broker L is the subagent of the buyer.
When a lender confirms a specific loan amount and
agrees to the interest rate, this process is referred to as
a(n):
(a) Origination fee C
(b) Disclosure
(c) Lock
(d) Interest insurance
A lot was purchased as an investment for $10,500. It was
sold a year later at a loss of 20%. What was the loss on the
C
sale?
(a) $3,150
, (b) $8,400
(c) $2,100
(d) $1,260
The sales comparison approach to property valuation:
(a) Is based on the concept that a buyer is willing to
pay only as much money as he/she would have to pay for
another similar property.
(b) Has nothing to do with the buyer or seller, it is deter-
A
mined statistically by the appraiser.
(c) Is based on how much more a buyer would pay to
upgrade from his/her present home.
(d) Is viewed to be the least accurate because it is based
on buyer/seller emotion.
Broker L listed a home that sold for the full price of
$325,000. The contract called for a 6.5% commission. How
much did Broker L make?
(a) $21,125 a
(b) $18,500
(c) $23,500
(d) $20,250
The phrase "the primary evidence of a loan" best de-
scribes:
(a) The mortgage document
d
(b) The defeasance clause
(c) The trust deed
(d) The promissory note
D wanted to buy a home from K, but wouldn't buy it unless
the pool table came with it. D and K decide that the pool
B
table is personal property. What contract would be the
best tool for the pool table purchase?
, (a) Handshake and one hug
(b) Bill of Sale
(c) REPC
(d) Pinky swear
When a remainder estate is involved, what owner interest
is involved?
(a) Community property
d
(b) Ownership in severalty
(c) Joint tenancy
(d) Life Estate
Which of the following do not have the ability to enter a
contract?
(a) A deceased person
d
(b) An Alien
(c) An illiterate person
(d) An insane person
A loan is obtained for $30,000. The loan calls for the
principal to be paid in equal installments each month for
25 years. The interest on the loan is 0.75% per month.
How much is the first payment? c (divide loan by 300 monthly payments ($100) and add
(a) $1,425 first month's interest ($30,000 x 0.0075=$225)
(b) $355
(c) $325
(d) $2,350
When a person dies leaving no will and no heirs, the
government will get the property by the process of:
(a) Eminent domain
d
(b) Police power
(c) Quiet Title Action
(d) Escheat
, When someone makes a statement to a qualified oflcial
that they freely and voluntarily executed a deed or docu-
ment:
(a) Habendum a
(b) Acknowledge
(c) Certification
(d) Recording
A uniform land contract could best be described as a:
d ( Its four names are: Uniform Land Sales Contract, In-
(a) Installment Contract
stallment Sales Contract, Land
(b) Real Estate Purchase Contract
Contract, and Contract for Deed. It is used in seller financ-
(c) Listing
ing)
(d) Trust Deed and Note
Rent control laws have what effect?
(a) They benefit lessors and lessees equally.
(b) Tenants like them because it means the lease has no
termination date.
c
(c) Landlords don't like them as they must carry the
burden of inflation.
(d) They raise the general economy and everyone likes
them.
A sporting goods store had a lease agreement to pay d (This is a percentage rent problem. Before doing the
1.75% on all income over $56,000 a month gross in ad- FRL, there's a preliminary step: Paid rent
dition to the base rent they paid of $2,000. Last year they minus base rent. So, $56,500 paid minus $24,000 base =
paid $56,500 in rent. What was their total gross income? $32,500 extra rent. FIRST = extra income; RATE =
(a) $1,857,143 1.75%; LAST = extra rent ($32,500). Divide the one below
(b) $1,368,321 the line by the one above and you get the extra
(c) $1,954,330 income. Add that to the $56,000 base income to get gross
(d) $2,529,143 income.)
A deed filed in the public records provides which of the
following:
A new Truth-in-Lending (TIL) disclosure must be provid-
ed:
(a) Within 3 business days of discovering the annual
percentage rate changed by more than 1/8%.
(b) At least 3 days prior to closing whether there has been
a
a change in annual percentage rate or not.
(c) Within 7 business days of discovering the annual
percentage rate changed by more than 1/4%.
(d) Within 3 business days of discovering the annual
percentage rate changed by more than 1/4%
Broker L lists a home and offers subagency through the
MLS. Broker S takes a buyer to the house and then writes
an offer to purchase. Broker L has never met the buyer.
Broker S has never met the seller. Broker S does not have
a written contract with the buyer. Which is true? b
(a) Broker S is the agent for the buyer and seller.
(b) Both Broker L and Broker S are agents of the seller.
(c) Broker L is the agent of the buyer.
(d) Broker L is the subagent of the buyer.
When a lender confirms a specific loan amount and
agrees to the interest rate, this process is referred to as
a(n):
(a) Origination fee C
(b) Disclosure
(c) Lock
(d) Interest insurance
A lot was purchased as an investment for $10,500. It was
sold a year later at a loss of 20%. What was the loss on the
C
sale?
(a) $3,150
, (b) $8,400
(c) $2,100
(d) $1,260
The sales comparison approach to property valuation:
(a) Is based on the concept that a buyer is willing to
pay only as much money as he/she would have to pay for
another similar property.
(b) Has nothing to do with the buyer or seller, it is deter-
A
mined statistically by the appraiser.
(c) Is based on how much more a buyer would pay to
upgrade from his/her present home.
(d) Is viewed to be the least accurate because it is based
on buyer/seller emotion.
Broker L listed a home that sold for the full price of
$325,000. The contract called for a 6.5% commission. How
much did Broker L make?
(a) $21,125 a
(b) $18,500
(c) $23,500
(d) $20,250
The phrase "the primary evidence of a loan" best de-
scribes:
(a) The mortgage document
d
(b) The defeasance clause
(c) The trust deed
(d) The promissory note
D wanted to buy a home from K, but wouldn't buy it unless
the pool table came with it. D and K decide that the pool
B
table is personal property. What contract would be the
best tool for the pool table purchase?
, (a) Handshake and one hug
(b) Bill of Sale
(c) REPC
(d) Pinky swear
When a remainder estate is involved, what owner interest
is involved?
(a) Community property
d
(b) Ownership in severalty
(c) Joint tenancy
(d) Life Estate
Which of the following do not have the ability to enter a
contract?
(a) A deceased person
d
(b) An Alien
(c) An illiterate person
(d) An insane person
A loan is obtained for $30,000. The loan calls for the
principal to be paid in equal installments each month for
25 years. The interest on the loan is 0.75% per month.
How much is the first payment? c (divide loan by 300 monthly payments ($100) and add
(a) $1,425 first month's interest ($30,000 x 0.0075=$225)
(b) $355
(c) $325
(d) $2,350
When a person dies leaving no will and no heirs, the
government will get the property by the process of:
(a) Eminent domain
d
(b) Police power
(c) Quiet Title Action
(d) Escheat
, When someone makes a statement to a qualified oflcial
that they freely and voluntarily executed a deed or docu-
ment:
(a) Habendum a
(b) Acknowledge
(c) Certification
(d) Recording
A uniform land contract could best be described as a:
d ( Its four names are: Uniform Land Sales Contract, In-
(a) Installment Contract
stallment Sales Contract, Land
(b) Real Estate Purchase Contract
Contract, and Contract for Deed. It is used in seller financ-
(c) Listing
ing)
(d) Trust Deed and Note
Rent control laws have what effect?
(a) They benefit lessors and lessees equally.
(b) Tenants like them because it means the lease has no
termination date.
c
(c) Landlords don't like them as they must carry the
burden of inflation.
(d) They raise the general economy and everyone likes
them.
A sporting goods store had a lease agreement to pay d (This is a percentage rent problem. Before doing the
1.75% on all income over $56,000 a month gross in ad- FRL, there's a preliminary step: Paid rent
dition to the base rent they paid of $2,000. Last year they minus base rent. So, $56,500 paid minus $24,000 base =
paid $56,500 in rent. What was their total gross income? $32,500 extra rent. FIRST = extra income; RATE =
(a) $1,857,143 1.75%; LAST = extra rent ($32,500). Divide the one below
(b) $1,368,321 the line by the one above and you get the extra
(c) $1,954,330 income. Add that to the $56,000 base income to get gross
(d) $2,529,143 income.)
A deed filed in the public records provides which of the
following:
