pearson vue practice exam Questions and answers, 100% Accurate, graded A+

pearson vue practice exam Questions and answers, 100% Accurate, graded A+ In stating a seller's price and terms to a prospective buyer, the seller's broker is required by the law of agency to state ONLY those terms that are a. included in the listing agreement b. based on the brokers evaluation of prevailing prices and terms c. favorable for the seller, as determined by the broker d. attractive to buyers, as determined by the broker - -a. included in the listing agreement a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20 feet in the rear, and 20 feet on each side. if a builder wants to put a one-story building on the lot, the MAXIMUM square footage it can contain is a. 3,300 sq ft b. 3,600 sq ft c. 6,300 sq ft d. 6,600 sq ft - -c. 6,300 sq ft a house with a market value of $80,000 is located where property is assessed at 70% of market value. if the tax rate is $4 per $100 of assessed value, the property taxes are a. $224 b. $960 c. $2,240 d. $3,200 - -c. $2,240 a broker charges a leasing fee of one-half of the first months rent and a management fee of 8% of all rents collected. the broker negotiates a two-year lease at a monthly rental of $550. which of the following amounts will the broker earn on this lease a. $1,378 b $1,331 c. $1,287 d. $1,056 - -b. $1,331 a property manager works in the BEST interests of the a. tenant b. owner c. agent d. bank - -b. owner in reviewing the deed to a listed property, a licensee noted a number of limitations regarding its use. these limitations aare commonly known as: A. Codicils B. constraints C. building codes D. restricted covenants - -D. Restricted covenants the price at which a willing and informed buyer would buy and a willing and informed seller would sell is called the a. assessed value b. book value c. income approach to value d. market value - -d. market value the income approach is MOST likely to be used when determining the value of a A. vacant residential lot b. office building c. single-family home d. cooperative apartment - -b. office building the G's purchased a house from the T's. the G's agreed to the following terms: monthly payments of $650 to the T's and the balance to be paid in full after 7 years. at the time the balance is paid, the T's will give the G's a warranty deed transferring title. in this situation, what type of financing was used a. fha loan b. wrap around mortgage c. package mortgage d. contract for deed - -d. contract for deed the provision in a mortgage or deed of trust that gives the lender the right to call the entire balance due upon a default in any payment is called a: a. acceleration clause b. prepayment penalty clause c. prepayment priveledge clause d. right of redemption clause - -a. acceleration clause a broker who represents a buyer is trying to negotiate on the buyer's behalf in a potential transaction. the broker realizes that by negotiating a reduced price for the buyer, the broker's commission will also be reduced. in this situation, the broker is obligated to negotiate the BEST price for the A. buyer and broker b. buyer c. seller d. brokerage - -b. buyer K and R bought a house as tenants in common. If K dies, which of the following statements about ownership of the house is CORRECT? a. it automatically becomes tenancy in severalty b. it is divided, with R retaining R's original interest and the balance going to K's estate C. R holds fee simple ownership in k's share of the property d. R holds life estate ownership in K's share of the property - -B. it is divided, with R retaining R's original interest and the balance going to K's estate a visually-impaired person with a service animal completes an application for rental of an apartment that has a vigorously enforced "no pets" policy in the building. according to the federal fair housing act the owner MAY: a. refuse to rent as a result of policy b. require the person to house the animal outside c. require the person to restore any damage that results from the animal d. increase the customary security deposit - -c. require the person to restore any damage that results from the animal Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called a. adverse possession b. foreclosure c. specific performance d. forcible detainer - -c. specific performance a developer who leases real property from the owner with the intent of constructing an office building has which of the following interests in the property? a. leased fee b. leasehold c. sale and leaseback d. lease option - -b. leasehold the owners of a house sign a listing agreement and later tell the licensee that the garage roof leaks. if they tell the licensee not to reveal the roof's condition to any prospective buyers the licensee MUST a. abide by the owners request b. advise the sellers that they must disclose the condition of the roof to prospective buyers c. advice only those prospective buyers who ask about the roof d. refer all prospective buyers who have questions about the roofs condition to sellers - -b. advise the sellers that they must disclose the condition of the roof to prospective buyers which type of mortgage loan has provisions for periodic changes in the amount of the payment, the interest rate, the maturity date, and the remaining balance owed? a. fha loan b conventional loan c. blanket loan d. adjustable loan - -d. adjustable loan a salesperson who completes a written listing agreement with a seller is helping to create a contractual relationship between the a. salesperson and the seller b. salesperson and the buyer c. salesperson and the listing broker d. salespersons broker and the seller - -d. salespersons broker and the seller buyers make an earnest money deposit on a property and sign a contract that is contingent on specific financing terms. if a bank commits to the financing, but the buyers change their minds and notify the seller in writing that they do not intend to buy the property, which of the following statements is correct a. the bank may sue the buyers b. the seller may sue the buyers for breach of contract c. the buyers may rescind the contract only after paying the brokerage fee d. the buyers are entitled to the return of the earnest money deposit - -b. the seller may sue the buyers for breach of contract which of the following documents is usually prepared when a real estate buyer also purchases a seller's riding lawn mower a. an option b. a wraparound loan c. a conditional sales contract d. a bill of sale - -d. a bill of sale the difference between the value of a property and the total amount of liens against it is known as a. market value b. equity c. actual cash value d. collateral - -b. equity which of the following actions is an example of blockbusting a. telling homeowners that a neighborhood will have a new golf course b. advertising a neighborhood party where alcohol will be served c. making sales calls to neighbors who are on the Do Not Call list d. stating that the presence of certain persons in a neighborhood will increase crime - -d. stating that the presence of certain persons in a neighborhood will increase crime A lender's title policy will protect the: a. lender against default in loan payments b. borrower against default in loan payments c.. lender against existing, undiscovered title defects d. borrower against unrecorded liens - -c. lender against existing, undiscovered title defects which of the following BEST describes personal property that, by its attachment to real property, is regarded as real estate a. emblements b. personality c. fixtures d. appliances - -c. fixtures which of the following credit terms may be included in an advertisement for real estate without further disclosure? a. "8% annual percentage rate" b. "5 years to repay" c. "$5,000 down payment d. "$300 monthly payment" - -a. "8% annual percentage rate" when a contract states that "time is of the essence," the contract MUST be delivered and presented a. within 24 hours b. within 48 hours c. electronically d. as soon as possible - -D. ASAP which of the following clauses in a conventional mortgage instrument entitles the lender to accelerate the loan if the loan is assumed A. prepayment b. right-to-sell c. due-on-sale d. variable interest rate - -c. due-on-sale a seller has delinquent property taxes of $572. at closing, the taxes will be a a. debit to the seller $572 b. debit to the buyer $572 c. credit to the seller $572 d. credit to the buyer $572 - -a. debit to the seller $572 an apartment project with 160 units has 8 vancancies. the vacancy rate is: a. 5% b.8% c 92% d. 95% - -a 5% to be certain that a property has no encroachments, an appraiser should check a a. survey b. deed c. field book d. tax map book - -a. survey a licensee is contacted by a potential buyer interested in purchasing a commercial property as an investment. the licensee has no experience with this type of property. what SHOULD the licensee do? a. contact an attorney to draft a specialized agency contract b. discourage the potential buyer from purchasing a commercial property w/o seeking advise from a cpa c. inform the potential buyer that the licensee has limited experience with this type of property. d. assess the brokerage's current commercial property inventory and suggest possible listings to the client - -c. inform the buyer that the licensee has limited experience with this type of property what type of insurance would cover a mistake or negligence on a licensee's part that results in financial loss to a client a. general liability insurance b. errors and ommissions (E&O) insurance c. hazard insurance d. group insurance - -b. errors and omissions insurance A broker is typically considered to be which of the following types of agents a. a special agent b. universal agent c. general agent d. individual agent - -a. special agent which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of beginning