NATIONAL REAL ESTATE EXAM PRACTICE TEST
WITH ANSWERS
In most cases, broker compensation, as a percentage of
home price, falls somewhere between: - ANSWER -5-7%
A Christian organization owns a fourplex. It wants to rent
to only Christian tenants. Under the federal Fair Housing
Act, is this legal? - ANSWER -Yes. Religious organizations
which rent to tenants for residential purposes are exempt
from the Fair Housing Act
What happens to trade fixtures after a business moves
out of a leased property? - ANSWER -The tenant
removes their trade fixtures and takes them upon moving
out.
,Suppose that a borrower has a gross monthly income of
$3,000 and wants to qualify for a conforming loan (total
debt service ratio of 36%) with a monthly PITI payment of
$800. What is the maximum amount of additional long-
term obligations this borrower may have after PITI? -
ANSWER -$280
A square bedroom measures 10 feet by 10 feet. What is
the area of the room? - ANSWER -100 square feet
Which of these is an economic characteristic that makes
land a distinctive commodity?* - ANSWER -situs
In a fixed-rate mortgage that is fully amortized, the total
amount of interest to be paid is: - ANSWER -
predetermined
,Which is exempt from the federal Fair Housing Act? -
ANSWER -renting a room in a house occupied by the
owner
The Americans with Disabilities Act applies to: - ANSWER
-privately owned or government-owned public
accommodations
Condemnation is the act of seizing private property from
citizens. What gives the government the right to do this?
- ANSWER -eminent domain
The PHYSICAL characteristics of land are that land is
indestructible, non-homogenous, and: - ANSWER -
immobile
Which statement BEST defines the term contingency? -
ANSWER -stipulation that must be satisfied before the
contract can be performed
, If a borrower is behind on payments, the acceleration
clause gives the lender the ability to: - ANSWER -call the
entire loan balance due immediately
A metes and bounds legal description always returns to: -
ANSWER -the point of beginning
What should a license holder do if a client instructs them
to do something that would discriminate against a
protected class? - ANSWER -advise the client they cannot
legally discriminate against certain groups
What is a novation? - ANSWER -the substitution of one
contract for another
A married couple bought a home ten years ago for
$400,000. Their neighborhood has rapidly grown in
popularity, and they were able to sell their home this
year for $950,000. How much of that money will they be
required to pay capital gains tax on? - ANSWER -$50,000
WITH ANSWERS
In most cases, broker compensation, as a percentage of
home price, falls somewhere between: - ANSWER -5-7%
A Christian organization owns a fourplex. It wants to rent
to only Christian tenants. Under the federal Fair Housing
Act, is this legal? - ANSWER -Yes. Religious organizations
which rent to tenants for residential purposes are exempt
from the Fair Housing Act
What happens to trade fixtures after a business moves
out of a leased property? - ANSWER -The tenant
removes their trade fixtures and takes them upon moving
out.
,Suppose that a borrower has a gross monthly income of
$3,000 and wants to qualify for a conforming loan (total
debt service ratio of 36%) with a monthly PITI payment of
$800. What is the maximum amount of additional long-
term obligations this borrower may have after PITI? -
ANSWER -$280
A square bedroom measures 10 feet by 10 feet. What is
the area of the room? - ANSWER -100 square feet
Which of these is an economic characteristic that makes
land a distinctive commodity?* - ANSWER -situs
In a fixed-rate mortgage that is fully amortized, the total
amount of interest to be paid is: - ANSWER -
predetermined
,Which is exempt from the federal Fair Housing Act? -
ANSWER -renting a room in a house occupied by the
owner
The Americans with Disabilities Act applies to: - ANSWER
-privately owned or government-owned public
accommodations
Condemnation is the act of seizing private property from
citizens. What gives the government the right to do this?
- ANSWER -eminent domain
The PHYSICAL characteristics of land are that land is
indestructible, non-homogenous, and: - ANSWER -
immobile
Which statement BEST defines the term contingency? -
ANSWER -stipulation that must be satisfied before the
contract can be performed
, If a borrower is behind on payments, the acceleration
clause gives the lender the ability to: - ANSWER -call the
entire loan balance due immediately
A metes and bounds legal description always returns to: -
ANSWER -the point of beginning
What should a license holder do if a client instructs them
to do something that would discriminate against a
protected class? - ANSWER -advise the client they cannot
legally discriminate against certain groups
What is a novation? - ANSWER -the substitution of one
contract for another
A married couple bought a home ten years ago for
$400,000. Their neighborhood has rapidly grown in
popularity, and they were able to sell their home this
year for $950,000. How much of that money will they be
required to pay capital gains tax on? - ANSWER -$50,000
