Page 1 of 229
Rockwell TEST 1 & 2 all 500 QUESTIONS
AND CORRECT ANSWERS LATEST UPDATE
THIS YEAR NEW!!
VERSION 1
A federal law requires lenders to give a booklet about shopping for a home loan to all
prospective borrowers within three business days of loan application. What law is this?
A.Fraud Enforcement and Recovery Act
B.Home Loan Disclosure Act
C.RESPA
D.Truth in Lending Act
C.RESPA
RESPA requires, among other things, that lenders give prospective borrowers a copy of a
booklet about closing costs and the home buying process, entitled “Your Home Loan Toolkit.”
1
,Page 2 of 229
Which of the following actions by a developer would require a zoning variance or a rezone,
because it would result in a more intensive use of the land?
A.Deed restriction prohibiting further subdivision of individual lots
B.Deed restriction prohibiting painting houses non-earth-tone colors
C.Fewer outbuildings placed on each lot than allowed by law
D.Increase in number of lots per acre
D.Increase in number of lots per acre
D is the only possible answer. An increased number of lots per acre would be a more intensive
use than before and since developers tend to build to the zoning limit, an increase in the
number of lots per acre would likely require either a variance or a rezone.
Mineral rights associated with real property are always:
A.conveyed along with the surface rights to the property
B.separable and divisible
C.sold separately from the property
D.an interest in personal property
B. separable and divisible
2
,Page 3 of 229
Mineral rights may be sold separately from the land. However, they are appurtenant to the land
and will be conveyed with the land unless there is an agreement otherwise.
An investor rents a property to a tenant. For tax purposes, depreciation on this property is
based on:
A.market value, plus capital improvements, minus land value
B.market value, plus rental income, minus land value
C.price, plus capital improvements, minus land value
D.price, plus rental income, minus land value
C.price, plus capital improvements, minus land value.
Adjusted basis is calculated by starting with initial basis (the cost of obtaining the property),
adding capital expenditures, and then subtracting depreciation deductions. The value of the
land must also be subtracted from what is depreciable; land does not wear out, so depreciation
doesn't apply.
A couple with children would like to buy a house that was built in 1950. The home was
recently remodeled, with completely new paint and plumbing. In this situation, what does
the agent always have to do?
A.Ensure that the paint used during the remodel is lead-free
B.Make sure the buyers receive a pamphlet on lead-based paint
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, Page 4 of 229
C.Provide them with a copy of a recent lead inspection report
D.Nothing; the house was remodeled so lead-based paint rules don't apply
B.Make sure the buyers receive a pamphlet on lead-based paint
A seller of a house built before 1978 must always give buyers a copy of a pamphlet on lead-
based paint prepared by the Environmental Protection Agency. If (but only if) the property has
been inspected for lead-based paint, the seller must also give a copy of the inspection report.
The agent must make sure that the seller takes these steps.
A buyers' purchase and sale agreement contained a financing contingency. The buyers
applied for a loan with a local lender, who verbally informed them that their loan application
was denied. The buyers' agent should:
A.ask the sellers to provide a purchase money loan instead
B.have the sellers extend the contingency deadline
C.tell the buyers about their right to receive the denial in writing
D.terminate the agency relationship
C.tell the buyers about their right to receive the denial in writing
Under the Fair Credit Reporting Act, when a lender takes an adverse action on the basis of a
credit report, the applicant or borrower must receive written notice of that action. The
4
Rockwell TEST 1 & 2 all 500 QUESTIONS
AND CORRECT ANSWERS LATEST UPDATE
THIS YEAR NEW!!
VERSION 1
A federal law requires lenders to give a booklet about shopping for a home loan to all
prospective borrowers within three business days of loan application. What law is this?
A.Fraud Enforcement and Recovery Act
B.Home Loan Disclosure Act
C.RESPA
D.Truth in Lending Act
C.RESPA
RESPA requires, among other things, that lenders give prospective borrowers a copy of a
booklet about closing costs and the home buying process, entitled “Your Home Loan Toolkit.”
1
,Page 2 of 229
Which of the following actions by a developer would require a zoning variance or a rezone,
because it would result in a more intensive use of the land?
A.Deed restriction prohibiting further subdivision of individual lots
B.Deed restriction prohibiting painting houses non-earth-tone colors
C.Fewer outbuildings placed on each lot than allowed by law
D.Increase in number of lots per acre
D.Increase in number of lots per acre
D is the only possible answer. An increased number of lots per acre would be a more intensive
use than before and since developers tend to build to the zoning limit, an increase in the
number of lots per acre would likely require either a variance or a rezone.
Mineral rights associated with real property are always:
A.conveyed along with the surface rights to the property
B.separable and divisible
C.sold separately from the property
D.an interest in personal property
B. separable and divisible
2
,Page 3 of 229
Mineral rights may be sold separately from the land. However, they are appurtenant to the land
and will be conveyed with the land unless there is an agreement otherwise.
An investor rents a property to a tenant. For tax purposes, depreciation on this property is
based on:
A.market value, plus capital improvements, minus land value
B.market value, plus rental income, minus land value
C.price, plus capital improvements, minus land value
D.price, plus rental income, minus land value
C.price, plus capital improvements, minus land value.
Adjusted basis is calculated by starting with initial basis (the cost of obtaining the property),
adding capital expenditures, and then subtracting depreciation deductions. The value of the
land must also be subtracted from what is depreciable; land does not wear out, so depreciation
doesn't apply.
A couple with children would like to buy a house that was built in 1950. The home was
recently remodeled, with completely new paint and plumbing. In this situation, what does
the agent always have to do?
A.Ensure that the paint used during the remodel is lead-free
B.Make sure the buyers receive a pamphlet on lead-based paint
3
, Page 4 of 229
C.Provide them with a copy of a recent lead inspection report
D.Nothing; the house was remodeled so lead-based paint rules don't apply
B.Make sure the buyers receive a pamphlet on lead-based paint
A seller of a house built before 1978 must always give buyers a copy of a pamphlet on lead-
based paint prepared by the Environmental Protection Agency. If (but only if) the property has
been inspected for lead-based paint, the seller must also give a copy of the inspection report.
The agent must make sure that the seller takes these steps.
A buyers' purchase and sale agreement contained a financing contingency. The buyers
applied for a loan with a local lender, who verbally informed them that their loan application
was denied. The buyers' agent should:
A.ask the sellers to provide a purchase money loan instead
B.have the sellers extend the contingency deadline
C.tell the buyers about their right to receive the denial in writing
D.terminate the agency relationship
C.tell the buyers about their right to receive the denial in writing
Under the Fair Credit Reporting Act, when a lender takes an adverse action on the basis of a
credit report, the applicant or borrower must receive written notice of that action. The
4
