100 question Real Estate Test
Questions with Accurate Answers
A provision in all mortgages that allows the delinquent mortgagor to avoid foreclosure
by paying all the back mortgage payments, late penalties, and costs of collection up
until the time of foreclosure sale is the - ANSWERSequity of redemption.
The bundle of legal rights associated with real property ownership does NOT include
the right of - ANSWERSintent.
Which statement does NOT describe a planned unit development? -
ANSWERSIndustrial parks are a welcomed offshoot of the PUD concept.
Which entity is a primary mortgage lender that does NOT accept demand deposits? -
ANSWERSMortgage lenders
A buyer who obtains a mortgage loan that covers the purchase of a condominium plus
furniture, appliances, and other personal property, such as towels and kitchen utensils,
has a - ANSWERSpackage mortgage.
If a seller refuses to pay a broker her sales commission after the residential property is
sold, the broker may - ANSWERSfile a suit in the courts for her commission.
The rate of interest that the Federal Reserve Bank charges member banks for
borrowing from the Federal Reserve Bank is called - ANSWERSthe discount rate.
Which statement concerning characteristics of the real estate market is FALSE? -
ANSWERSThe real estate market is organized and controlled centrally.
If you have located a township numbered T2S, R4E, the township due south of that
township is - ANSWERST3S, R4E.
A sales associate who is employed by an owner-developer who owns properties in the
name of various entities may be issued - ANSWERSa group license.
You are appraising a five-year-old, single-family home. The livable area is 60 feet by 50
feet. The garage is 24 feet by 20 feet. According to figures obtained from a cost-
estimating service, the base construction cost per square foot of livable area is $103
and $92 per square foot for the garage. Calculate the reproduction cost new of the
structure. - ANSWERS$353,160
Which term refers to a situation where, during the early years of a loan, the principal
balance increases? - ANSWERSNegative amortization
, In relation to section 1 of a township, section 12 is due - ANSWERSsouth.
A mortgage in which changes in the interest rate may cause changes in the monthly
payment amount is called - ANSWERSan adjustable-rate mortgage.
A licensed real estate broker has been hired by a lender to appraise a home for a buyer
who has applied for an FHA loan. Which statement is TRUE regarding this situation? -
ANSWERSThe broker is required to be a state-certified appraiser to perform this
appraisal assignment.
Which element is NOT essential in a valid real estate sale contract? - ANSWERSAn
earnest money deposit
A property closes on June 10, with the day of closing charged to the buyer. The buyer is
assuming the seller's mortgage loan with its principal balance of $227,500 at 4.5%
interest. Which entry will appear on the closing disclosure? - ANSWERSDebit to seller
and credit to buyer in the amount of $252.43
Which statement is FALSE regarding advertising? - ANSWERSThe brokerage firm's
address is required in all advertising.
A man is a 72-year-old retired college professor. The local lender to whom the man
applied for a 30-year mortgage denied the man's loan application, even though he has
sufficient income from his pension plan and an excellent credit history. - ANSWERSThe
lender's actions violate the Equal Credit Opportunity Act.
Which entity may NOT be registered as a real estate brokerage? - ANSWERSSole
proprietorship
Within what period of time must landlords of five or more units notify tenants in writing of
the method used to hold security deposits? - ANSWERS30 days
An example of an ad valorem tax is - ANSWERSa property tax.
Which disclosure must be given to the buyer of both new and resale residential
condominium units? - ANSWERSDeclaration
A title theory state is one in which a mortgage - ANSWERStransfers title to the lender or
escrow agent until the loan is paid
Depreciation (cost recovery) - ANSWERSis an allowable deduction on investment
property that requires no current outlay of cash.
The formula to calculate the overall capitalization rate is - ANSWERSNOI ÷ value (or
price).
Questions with Accurate Answers
A provision in all mortgages that allows the delinquent mortgagor to avoid foreclosure
by paying all the back mortgage payments, late penalties, and costs of collection up
until the time of foreclosure sale is the - ANSWERSequity of redemption.
The bundle of legal rights associated with real property ownership does NOT include
the right of - ANSWERSintent.
Which statement does NOT describe a planned unit development? -
ANSWERSIndustrial parks are a welcomed offshoot of the PUD concept.
Which entity is a primary mortgage lender that does NOT accept demand deposits? -
ANSWERSMortgage lenders
A buyer who obtains a mortgage loan that covers the purchase of a condominium plus
furniture, appliances, and other personal property, such as towels and kitchen utensils,
has a - ANSWERSpackage mortgage.
If a seller refuses to pay a broker her sales commission after the residential property is
sold, the broker may - ANSWERSfile a suit in the courts for her commission.
The rate of interest that the Federal Reserve Bank charges member banks for
borrowing from the Federal Reserve Bank is called - ANSWERSthe discount rate.
Which statement concerning characteristics of the real estate market is FALSE? -
ANSWERSThe real estate market is organized and controlled centrally.
If you have located a township numbered T2S, R4E, the township due south of that
township is - ANSWERST3S, R4E.
A sales associate who is employed by an owner-developer who owns properties in the
name of various entities may be issued - ANSWERSa group license.
You are appraising a five-year-old, single-family home. The livable area is 60 feet by 50
feet. The garage is 24 feet by 20 feet. According to figures obtained from a cost-
estimating service, the base construction cost per square foot of livable area is $103
and $92 per square foot for the garage. Calculate the reproduction cost new of the
structure. - ANSWERS$353,160
Which term refers to a situation where, during the early years of a loan, the principal
balance increases? - ANSWERSNegative amortization
, In relation to section 1 of a township, section 12 is due - ANSWERSsouth.
A mortgage in which changes in the interest rate may cause changes in the monthly
payment amount is called - ANSWERSan adjustable-rate mortgage.
A licensed real estate broker has been hired by a lender to appraise a home for a buyer
who has applied for an FHA loan. Which statement is TRUE regarding this situation? -
ANSWERSThe broker is required to be a state-certified appraiser to perform this
appraisal assignment.
Which element is NOT essential in a valid real estate sale contract? - ANSWERSAn
earnest money deposit
A property closes on June 10, with the day of closing charged to the buyer. The buyer is
assuming the seller's mortgage loan with its principal balance of $227,500 at 4.5%
interest. Which entry will appear on the closing disclosure? - ANSWERSDebit to seller
and credit to buyer in the amount of $252.43
Which statement is FALSE regarding advertising? - ANSWERSThe brokerage firm's
address is required in all advertising.
A man is a 72-year-old retired college professor. The local lender to whom the man
applied for a 30-year mortgage denied the man's loan application, even though he has
sufficient income from his pension plan and an excellent credit history. - ANSWERSThe
lender's actions violate the Equal Credit Opportunity Act.
Which entity may NOT be registered as a real estate brokerage? - ANSWERSSole
proprietorship
Within what period of time must landlords of five or more units notify tenants in writing of
the method used to hold security deposits? - ANSWERS30 days
An example of an ad valorem tax is - ANSWERSa property tax.
Which disclosure must be given to the buyer of both new and resale residential
condominium units? - ANSWERSDeclaration
A title theory state is one in which a mortgage - ANSWERStransfers title to the lender or
escrow agent until the loan is paid
Depreciation (cost recovery) - ANSWERSis an allowable deduction on investment
property that requires no current outlay of cash.
The formula to calculate the overall capitalization rate is - ANSWERSNOI ÷ value (or
price).
