ACEABLE AGENT PRINCIPLES OF REAL ESTATE 2
EXAM QUESTIONS AND CORRECT ANSWERS
What is a gain on an investment? ANSWER: a rise in property value brought
about by deliberate and ongoing renovations or developments
Ben recently bought a title insurance coverage. Unknown liens were discovered
to be linked to the title two weeks after he made his purchase. What about this
situation is TRUE? ANSWER Any issues that come up after purchasing a
policy are not covered.
Which of the following best describes a credit to the buyer that would appear on
a Closing Disclosure? ANSWER An sum received at closing is known as a
credit.
Gladys is the owner of two properties: a home building and an undeveloped
land piece. Regarding Gladys' properties, which of the following statements is
TRUE? ANSWER She is able to deduct depreciation on her dwelling property,
but not on her undeveloped acreage.
In order for renters with disabilities to enjoy a property, landlords must permit
them to make reasonable adjustments. However, a landlord is not required to
permit all of the following adjustments since they are unreasonable, with the
exception of: ANSWER changes that are paid for by the renter
What is meant by "REO"? "Real Estate Owned" is the response.
Which of the following scenarios would not require a real estate license for a
property manager? ANSWER A property manager who leases the owner's real
estate while working as an on-site apartment manager and not an agent.
What does it mean to have a fee simple with a future estate condition?
ANSWER: An estate where the property must be used for a certain purpose;
else, the original owner will regain ownership.
, Out of the following, which is NOT an appraisal principle? ANSWER Although
the highest and best use of a property is a concern of appraisers, the "principle
of best use" is not one of the guiding concepts.
Lara's first investing client has arrived. She can anticipate that her investment
client will do everything listed below, with the exception of: ANSWER Lara
might be asked by her investor client to handle much of the selling side of the
transaction.
Michelle is buying an uptown condo. For the condo, she obtained a $145,000
loan, which represents 67% of the total financing. How much will Michelle be
contributing as a down payment? ANSWER The down payment is $71,417.91,
which is calculated by subtracting the loan amount ($145,000) from the sale
price of $216,417.91 (loan amount divided by percentage).
Ben wants to build a restaurant on a piece of property. This specific plot does
not have a commercial use zone. Ben ought to visit the city and look for a
ANSWER Ben ought to visit the city to get a usage variance.
James has a number of properties near a state park. Although he mentions in his
marketing that the properties are conveniently located near the park, he makes
no mention of the kind of buyer this characteristic could appeal to, such as
"outdoorsy people," etc. What does James avoid doing? Responding to unlawful
target marketing
Over a ten-year period, Maria repays her debt in equal principal and interest
installments. What do we call this payment method? The amortization of
answers
Brad and Janet are divorcing and dividing their property. Brad is relinquishing
his claim to their joint property and departing the state. What kind of document
will Janet and Brad use to provide Janet sole possession? ANSWER Quitclaim
Deed
Andy owns and operates a rental property. A hole is made in the roof by the tree
that shadows the house since Andy forgets to cut it. This turns into a serious
EXAM QUESTIONS AND CORRECT ANSWERS
What is a gain on an investment? ANSWER: a rise in property value brought
about by deliberate and ongoing renovations or developments
Ben recently bought a title insurance coverage. Unknown liens were discovered
to be linked to the title two weeks after he made his purchase. What about this
situation is TRUE? ANSWER Any issues that come up after purchasing a
policy are not covered.
Which of the following best describes a credit to the buyer that would appear on
a Closing Disclosure? ANSWER An sum received at closing is known as a
credit.
Gladys is the owner of two properties: a home building and an undeveloped
land piece. Regarding Gladys' properties, which of the following statements is
TRUE? ANSWER She is able to deduct depreciation on her dwelling property,
but not on her undeveloped acreage.
In order for renters with disabilities to enjoy a property, landlords must permit
them to make reasonable adjustments. However, a landlord is not required to
permit all of the following adjustments since they are unreasonable, with the
exception of: ANSWER changes that are paid for by the renter
What is meant by "REO"? "Real Estate Owned" is the response.
Which of the following scenarios would not require a real estate license for a
property manager? ANSWER A property manager who leases the owner's real
estate while working as an on-site apartment manager and not an agent.
What does it mean to have a fee simple with a future estate condition?
ANSWER: An estate where the property must be used for a certain purpose;
else, the original owner will regain ownership.
, Out of the following, which is NOT an appraisal principle? ANSWER Although
the highest and best use of a property is a concern of appraisers, the "principle
of best use" is not one of the guiding concepts.
Lara's first investing client has arrived. She can anticipate that her investment
client will do everything listed below, with the exception of: ANSWER Lara
might be asked by her investor client to handle much of the selling side of the
transaction.
Michelle is buying an uptown condo. For the condo, she obtained a $145,000
loan, which represents 67% of the total financing. How much will Michelle be
contributing as a down payment? ANSWER The down payment is $71,417.91,
which is calculated by subtracting the loan amount ($145,000) from the sale
price of $216,417.91 (loan amount divided by percentage).
Ben wants to build a restaurant on a piece of property. This specific plot does
not have a commercial use zone. Ben ought to visit the city and look for a
ANSWER Ben ought to visit the city to get a usage variance.
James has a number of properties near a state park. Although he mentions in his
marketing that the properties are conveniently located near the park, he makes
no mention of the kind of buyer this characteristic could appeal to, such as
"outdoorsy people," etc. What does James avoid doing? Responding to unlawful
target marketing
Over a ten-year period, Maria repays her debt in equal principal and interest
installments. What do we call this payment method? The amortization of
answers
Brad and Janet are divorcing and dividing their property. Brad is relinquishing
his claim to their joint property and departing the state. What kind of document
will Janet and Brad use to provide Janet sole possession? ANSWER Quitclaim
Deed
Andy owns and operates a rental property. A hole is made in the roof by the tree
that shadows the house since Andy forgets to cut it. This turns into a serious
