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ROCKWELL EXAM REAL ESTATE FINAL EXAM 2 VERSIONS
WITH 500 QUESTIONS AND CORRECT DETAILED SOLUTIONS
JUST RELEASED THIS YEAR
Question: A movie theater was built ten years ago. If the neighborhood is now zoned entirely
residential, the movie theater:
A. will have to be torn down
B. must be remodeled to better conform to the neighborhood's intended use
C. will be allowed to continue if the owner obtains a conditional use permit
D. will be allowed to continue since it was built before the new zoning law went into effect -
CORRECT ANSWER✔✔D. Will be allowed to continue since it was built before the new zoning
law went into effect
The movie theater is an example of a nonconforming use, which predated a zoning change.
Nonconforming uses are generally allowed to continue, although they may not be enlarged, or
resumed if they are stopped.
Question: In a bilateral contract:
A. a duty wil be performed by only one party
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
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D. all parties have fully performed their duties - CORRECT ANSWER✔✔C. two parties have
exchanged promises, and both parties are obligated to perform
In a bilateral contract, two parties have exchanged promises and both parties are obligated to
perform. (Bi=two way)
Question: Gerald engages a licensee to list his property and find a buyer for it. In this context,
the licensee is acting as a:
A. General agent
B. power of attorney
C. property manager
D. special agent - CORRECT ANSWER✔✔D. Special Agent
When a licensee represents a seller in a single transaction, and is authorized to perform typical
duties associated with listing a property, she acts as a special agent.
Question: A licensee located what seems like a ready, willing, and able buyer. However, the deal
falls through at closing because the buyer cant obtain necessary financing. At the same time,
though, a seller turns out to be unable to provide marketable title. Does the seller still owe a
commission to the listing agent in this case?
A. No, because the sale didn't close
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B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing - CORRECT
ANSWER✔✔B. No, because there was no ready, willing, and able buyer
The most important rule of determining whether a seller is obligated to pay a commission is
whether a ready, willing, and able buyer was found during the listing period. This would take
precedence over the seller's failure to provide marketable title. A buyer who does not have
financial ability to complete the purchase does not qualify as "able."
Question: Legally, how much earnest money must be submitted with a valid purchase and sale
agreement?
A. 1% of the purchase price
B. 3% of the purchase price
C. 5% of the purchase price, but the amount over 3% cannot be retained as liquidated damages
D. No earnest money is required - CORRECT ANSWER✔✔D. No earnest money is required
While almost all buyers will include an earnest money deposit along with the purchase and sale
agreement, that is because of tradition. There is no contractual or legal requirement of a
particular amount, or any earnest money at all.
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Question: A mortgage often includes a clause requiring the lender's consent before another
borrower may assume the mortgage. This clause is called a/ an:
A. power of sale clause
B. subordination clause
C. defeasance clause
D. alienation clause (due-on-sale clause) - CORRECT ANSWER✔✔D. Alienation clause (due-on-
sale clause)
an Alienation clause prevents assumption without the lender's consent by stipulating that the
loan balance is due and payable in full if the property is sold.
Question: A buyer purchases a rental home that is fully furnished. The document used to
transfer title to the furniture is:
a. quitclaim deed
b. bill of sale
c. special warranty deed
d. general warranty deed - CORRECT ANSWER✔✔b. bill of sale
Deeds transfer title to real estate, a bill of sale is generally needed to transfer title to personal
property.
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SUCCESS!
ROCKWELL EXAM REAL ESTATE FINAL EXAM 2 VERSIONS
WITH 500 QUESTIONS AND CORRECT DETAILED SOLUTIONS
JUST RELEASED THIS YEAR
Question: A movie theater was built ten years ago. If the neighborhood is now zoned entirely
residential, the movie theater:
A. will have to be torn down
B. must be remodeled to better conform to the neighborhood's intended use
C. will be allowed to continue if the owner obtains a conditional use permit
D. will be allowed to continue since it was built before the new zoning law went into effect -
CORRECT ANSWER✔✔D. Will be allowed to continue since it was built before the new zoning
law went into effect
The movie theater is an example of a nonconforming use, which predated a zoning change.
Nonconforming uses are generally allowed to continue, although they may not be enlarged, or
resumed if they are stopped.
Question: In a bilateral contract:
A. a duty wil be performed by only one party
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
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D. all parties have fully performed their duties - CORRECT ANSWER✔✔C. two parties have
exchanged promises, and both parties are obligated to perform
In a bilateral contract, two parties have exchanged promises and both parties are obligated to
perform. (Bi=two way)
Question: Gerald engages a licensee to list his property and find a buyer for it. In this context,
the licensee is acting as a:
A. General agent
B. power of attorney
C. property manager
D. special agent - CORRECT ANSWER✔✔D. Special Agent
When a licensee represents a seller in a single transaction, and is authorized to perform typical
duties associated with listing a property, she acts as a special agent.
Question: A licensee located what seems like a ready, willing, and able buyer. However, the deal
falls through at closing because the buyer cant obtain necessary financing. At the same time,
though, a seller turns out to be unable to provide marketable title. Does the seller still owe a
commission to the listing agent in this case?
A. No, because the sale didn't close
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B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing - CORRECT
ANSWER✔✔B. No, because there was no ready, willing, and able buyer
The most important rule of determining whether a seller is obligated to pay a commission is
whether a ready, willing, and able buyer was found during the listing period. This would take
precedence over the seller's failure to provide marketable title. A buyer who does not have
financial ability to complete the purchase does not qualify as "able."
Question: Legally, how much earnest money must be submitted with a valid purchase and sale
agreement?
A. 1% of the purchase price
B. 3% of the purchase price
C. 5% of the purchase price, but the amount over 3% cannot be retained as liquidated damages
D. No earnest money is required - CORRECT ANSWER✔✔D. No earnest money is required
While almost all buyers will include an earnest money deposit along with the purchase and sale
agreement, that is because of tradition. There is no contractual or legal requirement of a
particular amount, or any earnest money at all.
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Question: A mortgage often includes a clause requiring the lender's consent before another
borrower may assume the mortgage. This clause is called a/ an:
A. power of sale clause
B. subordination clause
C. defeasance clause
D. alienation clause (due-on-sale clause) - CORRECT ANSWER✔✔D. Alienation clause (due-on-
sale clause)
an Alienation clause prevents assumption without the lender's consent by stipulating that the
loan balance is due and payable in full if the property is sold.
Question: A buyer purchases a rental home that is fully furnished. The document used to
transfer title to the furniture is:
a. quitclaim deed
b. bill of sale
c. special warranty deed
d. general warranty deed - CORRECT ANSWER✔✔b. bill of sale
Deeds transfer title to real estate, a bill of sale is generally needed to transfer title to personal
property.
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