PEARSON VUE PRACTICE EXAM GUARANTEE SUCCESS
1. When stating a seller's price and terms to a prospective buyer, a seller's broker is required by law to
state only those terms that are:
A. Based on the broker's evaluation of prevailing prices and terms
B. Favorable for the seller, as determined by the broker
C. Included in the listing agreement
D. Attractive to buyers, as determined by the broker
Correct answer: C. Included in the listing agreement
2. 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. What is the maximum square footage a one-story building can
contain?
A. 3,300 sq ft
B. 3,600 sq ft
C. 6,300 sq ft
D. 6,600 sq ft
Correct answer: C. 6,300 sq ft
3. 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, what are the property taxes?
A. $224
B. $960
C. $2,240
D. $3,200
,Correct answer: C. $2,240
4. A broker charges a leasing fee of one-half of the first month's rent and a management fee of 8% of all
rents collected. The broker negotiates a two-year lease at a monthly rental of $550. How much will the
broker earn on this lease?
A. $1,378
B. $1,331
C. $1,287
D. $1,056
Correct answer: B. $1,331
5. Who does a property manager work in the best interests of?
A. Tenant
B. Owner
C. Agent
D. Bank
Correct answer: B. Owner
6. In reviewing the deed to a listed property, a licensee notes a number of limitations regarding its use.
These limitations are commonly known as:
A. Codicils
B. Constraints
C. Building codes
D. Restricted covenants
, Correct answer: D. Restricted covenants
7. What is the price at which a willing and informed buyer would buy and a willing and informed seller
would sell called?
A. Assessed value
B. Book value
C. Income approach to value
D. Market value
Correct answer: D. Market value
8. Which approach is most likely to be used when determining the value of an office building?
A. Vacant residential lot
B. Office building
C. Single-family home
D. Cooperative apartment
Correct answer: 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
1. When stating a seller's price and terms to a prospective buyer, a seller's broker is required by law to
state only those terms that are:
A. Based on the broker's evaluation of prevailing prices and terms
B. Favorable for the seller, as determined by the broker
C. Included in the listing agreement
D. Attractive to buyers, as determined by the broker
Correct answer: C. Included in the listing agreement
2. 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. What is the maximum square footage a one-story building can
contain?
A. 3,300 sq ft
B. 3,600 sq ft
C. 6,300 sq ft
D. 6,600 sq ft
Correct answer: C. 6,300 sq ft
3. 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, what are the property taxes?
A. $224
B. $960
C. $2,240
D. $3,200
,Correct answer: C. $2,240
4. A broker charges a leasing fee of one-half of the first month's rent and a management fee of 8% of all
rents collected. The broker negotiates a two-year lease at a monthly rental of $550. How much will the
broker earn on this lease?
A. $1,378
B. $1,331
C. $1,287
D. $1,056
Correct answer: B. $1,331
5. Who does a property manager work in the best interests of?
A. Tenant
B. Owner
C. Agent
D. Bank
Correct answer: B. Owner
6. In reviewing the deed to a listed property, a licensee notes a number of limitations regarding its use.
These limitations are commonly known as:
A. Codicils
B. Constraints
C. Building codes
D. Restricted covenants
, Correct answer: D. Restricted covenants
7. What is the price at which a willing and informed buyer would buy and a willing and informed seller
would sell called?
A. Assessed value
B. Book value
C. Income approach to value
D. Market value
Correct answer: D. Market value
8. Which approach is most likely to be used when determining the value of an office building?
A. Vacant residential lot
B. Office building
C. Single-family home
D. Cooperative apartment
Correct answer: 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
