Rockwell Cram Exam #2 Questions with Answers (100%
Correct Answers)
Which of the following people might bring a suit for specific performance? —Answer: A buyer
in a real estate transaction in which the seller backed out one day before closing
Once a lender issues a veteran a VA-guaranteed loan, the veteran: —Answer: immediately
becomes liable for the guaranteed amount
A property manager decides to offer some additional services beyond what is specified in the
property management agreement. She may do so after: —Answer: the management agreement
is amended in a writing signed by the owner and designated broker
An optionee's rights can be assigned under all of the following circumstances, except when the:
—Answer: option money is in the form of a promissory note
Five people buy an investment property. They take title so that they each have equal ownership
shares, and so that if one of them dies, his share will pass to his heirs. How did they take title?
—Answer: Tenancy in common
For income tax purposes, a homeowner can deduct: —Answer: property taxes
An Asian-American buyer asks to be shown homes that are located in neighborhoods that he
knows are primarily Asian. If a real estate agent complies with his wishes, this is: —Answer:
legal, as it is done at the buyer's request
A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the
title, he should file a/an: —Answer: quiet title action
A broker would need to have a securities license to participate in: —Answer: a transaction
involving an investment contract
A buyer who records a deed is giving: —Answer: constructive notice
A veteran's guaranty benefits may be restored by a: —Answer: substitution of
eligibility/entitlement by another veteran assuming the loan
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, John leases a commercial property. In the lease, he agrees to pay part of the utilities and taxes,
as well as a fixed monthly rent amount. This is a: —Answer: net lease
A quitclaim deed conveys: —Answer: the grantor's interest in a given property, if any
The entity that determines the maximum number of people who may legally live in a rental unit
is the: —Answer: local health department and zoning authority
On a settlement statement, the seller's net proceeds are calculated by: —Answer: subtracting
the seller's debits from the seller's credits
Which law prohibits discrimination in real estate transactions based on race, with no
exceptions? —Answer: Civil Rights Act of 1866
If a buyer wants to protect herself against unrecorded encumbrances, she should: —Answer:
request a title insurance policy that has the fewest exceptions
A minor leases an apartment right before he turns 18. Immediately after he reaches the age of
majority, he contacts the landlord and says he's terminating the lease. Which is true? —Answer:
This is possible because he is doing so within a reasonable amount of time after having reached
the age of majority
An owner-occupied property qualifies for its state's homestead exemption from property taxes.
Shortly after closing, the new assessed value of the property is issued, and the property tax
amount increases significantly. The selling agent is obligated to: —Answer: do nothing
The purpose of a building code is to: —Answer: provide minimum standards for construction
Which of the following methods would be most appropriate for valuing a recently built, single-
family home? —Answer: Market analysis and replacement cost
For how long is a deed restriction valid? —Answer: Potentially forever
A ten-year-old home cost $120,000 to build and the land it's on cost $20,000. If an appraiser finds
that depreciation has averaged 1.5% per year, what is the total amount of depreciation on the
property? —Answer: $18,000
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Correct Answers)
Which of the following people might bring a suit for specific performance? —Answer: A buyer
in a real estate transaction in which the seller backed out one day before closing
Once a lender issues a veteran a VA-guaranteed loan, the veteran: —Answer: immediately
becomes liable for the guaranteed amount
A property manager decides to offer some additional services beyond what is specified in the
property management agreement. She may do so after: —Answer: the management agreement
is amended in a writing signed by the owner and designated broker
An optionee's rights can be assigned under all of the following circumstances, except when the:
—Answer: option money is in the form of a promissory note
Five people buy an investment property. They take title so that they each have equal ownership
shares, and so that if one of them dies, his share will pass to his heirs. How did they take title?
—Answer: Tenancy in common
For income tax purposes, a homeowner can deduct: —Answer: property taxes
An Asian-American buyer asks to be shown homes that are located in neighborhoods that he
knows are primarily Asian. If a real estate agent complies with his wishes, this is: —Answer:
legal, as it is done at the buyer's request
A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the
title, he should file a/an: —Answer: quiet title action
A broker would need to have a securities license to participate in: —Answer: a transaction
involving an investment contract
A buyer who records a deed is giving: —Answer: constructive notice
A veteran's guaranty benefits may be restored by a: —Answer: substitution of
eligibility/entitlement by another veteran assuming the loan
© 2025 All rights reserved
, John leases a commercial property. In the lease, he agrees to pay part of the utilities and taxes,
as well as a fixed monthly rent amount. This is a: —Answer: net lease
A quitclaim deed conveys: —Answer: the grantor's interest in a given property, if any
The entity that determines the maximum number of people who may legally live in a rental unit
is the: —Answer: local health department and zoning authority
On a settlement statement, the seller's net proceeds are calculated by: —Answer: subtracting
the seller's debits from the seller's credits
Which law prohibits discrimination in real estate transactions based on race, with no
exceptions? —Answer: Civil Rights Act of 1866
If a buyer wants to protect herself against unrecorded encumbrances, she should: —Answer:
request a title insurance policy that has the fewest exceptions
A minor leases an apartment right before he turns 18. Immediately after he reaches the age of
majority, he contacts the landlord and says he's terminating the lease. Which is true? —Answer:
This is possible because he is doing so within a reasonable amount of time after having reached
the age of majority
An owner-occupied property qualifies for its state's homestead exemption from property taxes.
Shortly after closing, the new assessed value of the property is issued, and the property tax
amount increases significantly. The selling agent is obligated to: —Answer: do nothing
The purpose of a building code is to: —Answer: provide minimum standards for construction
Which of the following methods would be most appropriate for valuing a recently built, single-
family home? —Answer: Market analysis and replacement cost
For how long is a deed restriction valid? —Answer: Potentially forever
A ten-year-old home cost $120,000 to build and the land it's on cost $20,000. If an appraiser finds
that depreciation has averaged 1.5% per year, what is the total amount of depreciation on the
property? —Answer: $18,000
© 2025 All rights reserved
