Sales General Exam UPDATED ACTUAL Questions and CORRECT Answers
A property description that uses angles and degrees is
Metes and bounds
referred to as
A loan is amortized as though for 25 years, but is due
sooner and paid off in a balloon payment. This is known Partially amortized loan
as a(n)
When the Federal Reserve increases the supply of money, Lowers interest rates and gives more purchasing power to
it people.
A broker found a ready, willing, and able buyer to pur-
chase seller Bond's house at the listing terms. Before
agreeing to the sale, seller Bond introduced a new restric-
Yes, because the broker had fulfilled the listing contract
tion stating that the sale could only be completed if the
and must be paid.
buyer agreed not to build a tennis court on the property.
The buyer refused and withdrew from the negotiations. Is
the broker entitled to a commission?
Which of the following is the best definition of the term Refusing loans in certain areas because of its ethnic make-
"redlining?" up
Soliciting listings based on a fear of racial change in an
Which broker action is an example of blockbusting?
area
Certain defaults, unfortunately, happen quite often and so
they are planned for and consequences outlined in the Liquidated damages
contract. An example is the earnest money deposit. This is
Which of the following falls into the category of appurte-
Improvement
nances?
A deed of trust differs from a mortgage instrument in
that a deed of trust allows the lender a more streamlined
True
process to foreclose on a property and bypass the judicial
process. True or False
You present an offer from a qualified, willing and able
minority buyer. The seller refuses to sell because the in-
, dividual is a minority. You can legally do all the following
Do not show this house to any other minorities.
EXCEPT
Using the sales comparison method, if a subject property
had an extra full bathroom ($6,000) that the comparable
Add $1,000 to the comparable property.
property did not, but was on a less desirable lot ($5,000),
the proper adjustment would be
It is an independent, objective opinion of market value at
The best way to describe an appraisal is
the time of the appraisal.
At the beginning of each month the lessee gives, and the
Periodic tenancy
lessor takes the rent. This best describes
If the loan to value ratio is too high, the lender will want
mortgage insurance to protect its interest in case of de-
81%
fault and foreclosure sale. In almost all cases, what is the
number that triggers mortgage insurance being paid?
The owner of a commercial property wants to sell. The
Execute an Open Listing with the brokerages he/she wish-
seller wishes to allow many brokerages the opportunity to
es to hire.
sell the property. The seller should
A lender, as security for a loan, has the right to force the
sale of the property to recover the amount owed. But if
Lien theory
more than the loan and costs amount is recovered, the
excess goes back to the borrower. This is
Which of these situations does NOT cause a contract to
become voidable?; (a) One of the parties is a minor (b) B. Contract is not in writing
Contract is not in writing (c) Duress (d) Menace
Truth in Lending or Reg. Z includes all the following re-
quirements EXCEPT; (a) Use of APR (b) Disclosure of costs C. Settlement Costs & You
(c) Settlement Costs & You (d) Advertising restrictions
Tim gets a 80% loan on a $100,000 property and is
charged a 1 point origination fee. He is also charged a $35
A property description that uses angles and degrees is
Metes and bounds
referred to as
A loan is amortized as though for 25 years, but is due
sooner and paid off in a balloon payment. This is known Partially amortized loan
as a(n)
When the Federal Reserve increases the supply of money, Lowers interest rates and gives more purchasing power to
it people.
A broker found a ready, willing, and able buyer to pur-
chase seller Bond's house at the listing terms. Before
agreeing to the sale, seller Bond introduced a new restric-
Yes, because the broker had fulfilled the listing contract
tion stating that the sale could only be completed if the
and must be paid.
buyer agreed not to build a tennis court on the property.
The buyer refused and withdrew from the negotiations. Is
the broker entitled to a commission?
Which of the following is the best definition of the term Refusing loans in certain areas because of its ethnic make-
"redlining?" up
Soliciting listings based on a fear of racial change in an
Which broker action is an example of blockbusting?
area
Certain defaults, unfortunately, happen quite often and so
they are planned for and consequences outlined in the Liquidated damages
contract. An example is the earnest money deposit. This is
Which of the following falls into the category of appurte-
Improvement
nances?
A deed of trust differs from a mortgage instrument in
that a deed of trust allows the lender a more streamlined
True
process to foreclose on a property and bypass the judicial
process. True or False
You present an offer from a qualified, willing and able
minority buyer. The seller refuses to sell because the in-
, dividual is a minority. You can legally do all the following
Do not show this house to any other minorities.
EXCEPT
Using the sales comparison method, if a subject property
had an extra full bathroom ($6,000) that the comparable
Add $1,000 to the comparable property.
property did not, but was on a less desirable lot ($5,000),
the proper adjustment would be
It is an independent, objective opinion of market value at
The best way to describe an appraisal is
the time of the appraisal.
At the beginning of each month the lessee gives, and the
Periodic tenancy
lessor takes the rent. This best describes
If the loan to value ratio is too high, the lender will want
mortgage insurance to protect its interest in case of de-
81%
fault and foreclosure sale. In almost all cases, what is the
number that triggers mortgage insurance being paid?
The owner of a commercial property wants to sell. The
Execute an Open Listing with the brokerages he/she wish-
seller wishes to allow many brokerages the opportunity to
es to hire.
sell the property. The seller should
A lender, as security for a loan, has the right to force the
sale of the property to recover the amount owed. But if
Lien theory
more than the loan and costs amount is recovered, the
excess goes back to the borrower. This is
Which of these situations does NOT cause a contract to
become voidable?; (a) One of the parties is a minor (b) B. Contract is not in writing
Contract is not in writing (c) Duress (d) Menace
Truth in Lending or Reg. Z includes all the following re-
quirements EXCEPT; (a) Use of APR (b) Disclosure of costs C. Settlement Costs & You
(c) Settlement Costs & You (d) Advertising restrictions
Tim gets a 80% loan on a $100,000 property and is
charged a 1 point origination fee. He is also charged a $35
