Exam 3: Principles of Real Estate Test
Questions All Solved Correctly.
The final inspection of the property just prior to closing that makes certain that the premises
have been vacated, no damages have occurred, and the seller has not removed or taken any
real property. - Answer Walk-through
The process of completing a real estate transaction. Occurs when the buyer pays for the
property and the seller delivers the deed. - Answer Title closing
Seller meets in person with the buyer and delivers the deed - Answer Closing meeting
The most commonly used methods of real estate appraisal are...
A) market, income, and cost
B) income, reproduction, and cost
C) residual, cost, and market data
D) comparison, income, and capitalization - Answer A) market, income, and cost
In valuing a structure like the Greek Theatre on the U of A campus, an appraiser would most
likely emphasize the....
A) market approach
B) cost approach
C) income approach
D) capitalization approach - Answer B) cost approach
Which of the following in an old commercial building would most likely be a cause of incurable
obsolescence?
A) misplaced water and wastewater facilities
B) lack of a wifi system
C) lack of ceiling height
D) unattractive decor - Answer C) lack of ceiling height
, An apartment building seller for $700,000 and has a gross rent multiplier of 7.0. How much
annual rent does the building produce?
A) $40,000
B) $60,000
C) $80,000
D) $100,000 - Answer D) $100,000
Adjustments for available advantageous financing would be made in the...
A) market comparison approach to appraisal
B) cost approach to appraisal
C) income approach to appraisal
D) revised market price - Answer A) market comparison approach to appraisal
The basic rationale for real estate license laws and regulations was to....
A) assist the broker settle their disputes
B) protect the public
C) protect the broker
D) protect the real estate market - Answer B) protect the publci
Of the following who would be required to have a real estate license?
A) a real estate broker's assistant
B) an attorney who specializes in real estate law
C) an escrow/closing agent officer
D) a person who solicits buyers and sellers for a broker - Answer D) a person who solicits
buyers and sellers for a broker
In which states are licensing examinations required for a real estate license?
A) only states west of the Mississippi River
B) all states but the New England states
C) all but Texas, Hawaii, and Alaska due to the average size of transactions
Questions All Solved Correctly.
The final inspection of the property just prior to closing that makes certain that the premises
have been vacated, no damages have occurred, and the seller has not removed or taken any
real property. - Answer Walk-through
The process of completing a real estate transaction. Occurs when the buyer pays for the
property and the seller delivers the deed. - Answer Title closing
Seller meets in person with the buyer and delivers the deed - Answer Closing meeting
The most commonly used methods of real estate appraisal are...
A) market, income, and cost
B) income, reproduction, and cost
C) residual, cost, and market data
D) comparison, income, and capitalization - Answer A) market, income, and cost
In valuing a structure like the Greek Theatre on the U of A campus, an appraiser would most
likely emphasize the....
A) market approach
B) cost approach
C) income approach
D) capitalization approach - Answer B) cost approach
Which of the following in an old commercial building would most likely be a cause of incurable
obsolescence?
A) misplaced water and wastewater facilities
B) lack of a wifi system
C) lack of ceiling height
D) unattractive decor - Answer C) lack of ceiling height
, An apartment building seller for $700,000 and has a gross rent multiplier of 7.0. How much
annual rent does the building produce?
A) $40,000
B) $60,000
C) $80,000
D) $100,000 - Answer D) $100,000
Adjustments for available advantageous financing would be made in the...
A) market comparison approach to appraisal
B) cost approach to appraisal
C) income approach to appraisal
D) revised market price - Answer A) market comparison approach to appraisal
The basic rationale for real estate license laws and regulations was to....
A) assist the broker settle their disputes
B) protect the public
C) protect the broker
D) protect the real estate market - Answer B) protect the publci
Of the following who would be required to have a real estate license?
A) a real estate broker's assistant
B) an attorney who specializes in real estate law
C) an escrow/closing agent officer
D) a person who solicits buyers and sellers for a broker - Answer D) a person who solicits
buyers and sellers for a broker
In which states are licensing examinations required for a real estate license?
A) only states west of the Mississippi River
B) all states but the New England states
C) all but Texas, Hawaii, and Alaska due to the average size of transactions
