Barney Fletcher Exam | Real Estate Licensing Test & Certification Review
In doing a market analysis, you find a recently sold property where the owners had just gone through a
divorce. It was listed for $60,000 for 3 months but sold for $40,000. Would you use this as a
comparable?
A. no, because it had only been listed for 3 months
B. no, because of the divorce, it was not an arms length agreement
C. yes, you would use the actual sales price of $40,000
D. yes, because it was a comparable type property - (ANSWER)B. no, because of the divorce, it was not
an arms length agreement
A property was worth $289,000 if capitalized at 4%. What is it worth if it capitalized at 5%?
A. $185,000
B. $231,200
C. $300,000
D. $325,000 - (ANSWER)B. $231,200
$289,000 x 4% = $11,560 divided by 5% = $231,200
An heirloom chandelier in a house would be considered:
A. chattel
B. personal property
C. a fixture
D. a trade fixture - (ANSWER)C. a fixture
An owner of a life estate died and the land passed to the remainderman. What interest would the
remainderman receive?
A. estate in reversion
, Barney Fletcher Exam | Real Estate Licensing Test & Certification Review
B. life estate
C. estate at will
D. estate in fee simple - (ANSWER)D. estate in fee simple
Which of the following BEST describes the extent of an owner's rights in land?
A. the surface of the land only
B. the land and five miles below certain mineral rights
C. the surface of the land up to infinity
D. the land from the center of the earth up to infinity - (ANSWER)D. the land from the center of the
earth up to infinity
Which of the following does NOT make loans?
A. the secondary mortgage market
B. the federal reserve
C. savings and loans
D. commercial banks - (ANSWER)A. the secondary mortgage market
What can the VA require a veteran do when applying for a loan?
A. make the down payment directly to the VA
B. make a down payment in cash
C. make the veteran immediately assume liability for the VA guaranty amount
D. NOT allow the veteran to make prepayments on the principal amount - (ANSWER)C. make the
veteran immediately assume liability for the VA guaranty amount
Which of the following ways of advertising would be allowed under the Federal Truth In Lending Laws
(Regulation Z)?
In doing a market analysis, you find a recently sold property where the owners had just gone through a
divorce. It was listed for $60,000 for 3 months but sold for $40,000. Would you use this as a
comparable?
A. no, because it had only been listed for 3 months
B. no, because of the divorce, it was not an arms length agreement
C. yes, you would use the actual sales price of $40,000
D. yes, because it was a comparable type property - (ANSWER)B. no, because of the divorce, it was not
an arms length agreement
A property was worth $289,000 if capitalized at 4%. What is it worth if it capitalized at 5%?
A. $185,000
B. $231,200
C. $300,000
D. $325,000 - (ANSWER)B. $231,200
$289,000 x 4% = $11,560 divided by 5% = $231,200
An heirloom chandelier in a house would be considered:
A. chattel
B. personal property
C. a fixture
D. a trade fixture - (ANSWER)C. a fixture
An owner of a life estate died and the land passed to the remainderman. What interest would the
remainderman receive?
A. estate in reversion
, Barney Fletcher Exam | Real Estate Licensing Test & Certification Review
B. life estate
C. estate at will
D. estate in fee simple - (ANSWER)D. estate in fee simple
Which of the following BEST describes the extent of an owner's rights in land?
A. the surface of the land only
B. the land and five miles below certain mineral rights
C. the surface of the land up to infinity
D. the land from the center of the earth up to infinity - (ANSWER)D. the land from the center of the
earth up to infinity
Which of the following does NOT make loans?
A. the secondary mortgage market
B. the federal reserve
C. savings and loans
D. commercial banks - (ANSWER)A. the secondary mortgage market
What can the VA require a veteran do when applying for a loan?
A. make the down payment directly to the VA
B. make a down payment in cash
C. make the veteran immediately assume liability for the VA guaranty amount
D. NOT allow the veteran to make prepayments on the principal amount - (ANSWER)C. make the
veteran immediately assume liability for the VA guaranty amount
Which of the following ways of advertising would be allowed under the Federal Truth In Lending Laws
(Regulation Z)?
