BARNEY FLETCHER 2026 FINAL ASSESSMENT
PAPER BROKERAGE OPERATIONS
COMPREHENSIVE QUESTIONS AND ANSWERS
VERIFIED A+
◉ Interest that is calculated every month based on the remaining
loan balance is best referred to as? Answer: Simple Interest
◉ Sam sold a property to Emma for $225,000. Sam's loan balance
was $44,500 with an interest rate of 7%. Emma's conventional loan
was at 8% with a 90% loan to value ratio. The taxes for the year
were $1250 and the home owner's insurance was $495. Closing took
place on October 30th. Based on this information, answer the
following question. What was the amount of the property tax
proration? Answer: $212.33
(Closing after July 1st, paid in full. Seller credited 62 days - October
31st-December 31st)
$ 1,250 (annual tax) / 365 (days in year) = $ 3.4246 per day x 62
days = $ 212. 3287 = $ 212.33
◉ Sam sold a property to Emma for $225,000. Sam's loan balance
was $44,500 with an interest rate of 7%. Emma's conventional loan
,was at 8% with a 90% loan to value ratio. The taxes for the year
were $1250 and the home owner's insurance was $495. Closing took
place on October 30th. Based on this information, answer the
following question. How much was the transfer tax? Answer:
$225.00
NO LOAN BEING ASSUMED
$225, = 2250 x .10 = $225.00
◉ Sam sold a property to Emma for $225,000. Sam's loan balance
was $44,500 with an interest rate of 7%. Emma's conventional loan
was at 8% with a 90% loan to value ratio. The taxes for the year
were $1250 and the home owner's insurance was $495. Closing took
place on October 30th. Based on this information, answer the
following question. How much was the accrued interest and to
whom was it paid? Answer: $259.58
(30 days = October 30th = Day of closing is included)
$ 44,500 (loan amount) x 7% (interest rate) = $ 3, =
8.6527 x 30 days = $ 259.5833 = $259.58
◉ Which of the following would not be covered under RESPA?
Answer: A buyer assumed a $40,000 FHA insured first mortgage on
a $50,000 single-family residence.
,◉ A broker obtains an open listing on a piece of property. In order to
collect a commission on the sale of this property, the broker must be
able to prove which of the following?
a. He was licensed at the time of the sale
b. He was employed at the time of the sale
c. He was the procuring cause of the sale
d. All of the above Answer: All of the above
◉ A buyer requests the broker take a listed property off the market
until his wife sees the property. Should the broker do this? Answer:
No, this would violate the agency agreement.
◉ A person owned a house which had been built over underground
springs. This was a well-known fact in the area. The broker sold the
property to a buyer but did not inform the buyer about the
underground springs. Six months later, the back corner of the house
was found to have structural damage caused by the springs. Which
of the following is true? Answer: The agent and seller could be
responsible because they did not disclose to the buyer about the
house being built over the springs
◉ A rental property manager's agreement allowed performance of
normal maintenance and repairs. Which of the following acts would
, require the property manager to obtain the specific approval of the
owner to do?
a. Fix a broken window
b. Repair the elevator
c. Renovate a unit for a tenant
d. Paint the outside trim Answer: Renovate a unit for a tenant
◉ Which of the following MUST be disclosed by an agent to his
client, in a real estate transaction?
a. Minority groups are moving into the area
b. The average commission recommended by the local real estate
association
c. The buyer intends to violate deed restrictions
d. The buyer has had previous credit problems which may have an
impact on loan qualifications Answer: The buyer has had previous
credit problems which may have an impact on loan qualifications
◉ An agreement in which rent is increased at specified intervals is
known as: Answer: Graduated rental lease
PAPER BROKERAGE OPERATIONS
COMPREHENSIVE QUESTIONS AND ANSWERS
VERIFIED A+
◉ Interest that is calculated every month based on the remaining
loan balance is best referred to as? Answer: Simple Interest
◉ Sam sold a property to Emma for $225,000. Sam's loan balance
was $44,500 with an interest rate of 7%. Emma's conventional loan
was at 8% with a 90% loan to value ratio. The taxes for the year
were $1250 and the home owner's insurance was $495. Closing took
place on October 30th. Based on this information, answer the
following question. What was the amount of the property tax
proration? Answer: $212.33
(Closing after July 1st, paid in full. Seller credited 62 days - October
31st-December 31st)
$ 1,250 (annual tax) / 365 (days in year) = $ 3.4246 per day x 62
days = $ 212. 3287 = $ 212.33
◉ Sam sold a property to Emma for $225,000. Sam's loan balance
was $44,500 with an interest rate of 7%. Emma's conventional loan
,was at 8% with a 90% loan to value ratio. The taxes for the year
were $1250 and the home owner's insurance was $495. Closing took
place on October 30th. Based on this information, answer the
following question. How much was the transfer tax? Answer:
$225.00
NO LOAN BEING ASSUMED
$225, = 2250 x .10 = $225.00
◉ Sam sold a property to Emma for $225,000. Sam's loan balance
was $44,500 with an interest rate of 7%. Emma's conventional loan
was at 8% with a 90% loan to value ratio. The taxes for the year
were $1250 and the home owner's insurance was $495. Closing took
place on October 30th. Based on this information, answer the
following question. How much was the accrued interest and to
whom was it paid? Answer: $259.58
(30 days = October 30th = Day of closing is included)
$ 44,500 (loan amount) x 7% (interest rate) = $ 3, =
8.6527 x 30 days = $ 259.5833 = $259.58
◉ Which of the following would not be covered under RESPA?
Answer: A buyer assumed a $40,000 FHA insured first mortgage on
a $50,000 single-family residence.
,◉ A broker obtains an open listing on a piece of property. In order to
collect a commission on the sale of this property, the broker must be
able to prove which of the following?
a. He was licensed at the time of the sale
b. He was employed at the time of the sale
c. He was the procuring cause of the sale
d. All of the above Answer: All of the above
◉ A buyer requests the broker take a listed property off the market
until his wife sees the property. Should the broker do this? Answer:
No, this would violate the agency agreement.
◉ A person owned a house which had been built over underground
springs. This was a well-known fact in the area. The broker sold the
property to a buyer but did not inform the buyer about the
underground springs. Six months later, the back corner of the house
was found to have structural damage caused by the springs. Which
of the following is true? Answer: The agent and seller could be
responsible because they did not disclose to the buyer about the
house being built over the springs
◉ A rental property manager's agreement allowed performance of
normal maintenance and repairs. Which of the following acts would
, require the property manager to obtain the specific approval of the
owner to do?
a. Fix a broken window
b. Repair the elevator
c. Renovate a unit for a tenant
d. Paint the outside trim Answer: Renovate a unit for a tenant
◉ Which of the following MUST be disclosed by an agent to his
client, in a real estate transaction?
a. Minority groups are moving into the area
b. The average commission recommended by the local real estate
association
c. The buyer intends to violate deed restrictions
d. The buyer has had previous credit problems which may have an
impact on loan qualifications Answer: The buyer has had previous
credit problems which may have an impact on loan qualifications
◉ An agreement in which rent is increased at specified intervals is
known as: Answer: Graduated rental lease
