PERRY REAL ESTATE REVIEW TIPS QUESTIONS AND
ANSWERS SET A+
✔✔What is the cost of constructing a fence 6 ft 6 in high around a lot measuring 90' x
175', if the cost of erecting the fence is $1,25 per linear ft and the cost of material is
$.825 per sg ft of fence? - ✔✔$3,505
✔✔A building is valued as $215,000 and contains 4 apartments that rent for $470 each
per month. The owner estimates that the net operating income is 65% of the gross
rental receipts. What is the capitalization rate?
-3.7%
-14.2%
-10.5%
-6.8% - ✔✔6.8%
✔✔Carbon monoxide is not
-quickly absorbed in the body
-a result of incomplete combustion
-a natural result of combustion
-easy to detect - ✔✔Carbon monoxide is not easy to detect
✔✔When compared with a 30 year payment period, taking out a loan with a 20 year
payment period would result in
-lower monthly payments
-higher monthly payments
-greater impound requirements
-slower equity buildup - ✔✔higher monthly payments
✔✔All of the following are subject to real property ownership rights EXCEPT
-buildings located on the land
-air space above the land
-navigable rivers running through the land
-easements running with the land - ✔✔navigable rivers running through the land
, ✔✔All of the following are alternative risk management techniques EXCEPT
-ignoring it
-retaining it
-transferring it
-avoiding it - ✔✔ignoring it
✔✔An important characteristic of land is that is may be modified or improved at some
point in time. Depending on its type, an improvement may increase the value of real
estate greatly. All of the following are considered to be improvements EXCEPT
-buildings
-crops
-sewers
-roads - ✔✔crops
✔✔Federal income tax regulations allow homeowners to reduce their taxable income by
amounts paid for
-repairs and maintenance
-hazard insurance premiums
-principal and interest
-real estate taxes - ✔✔real estate taxes
✔✔Referral fees can be legally paid
-from a licensed broker to a consumer who referred a client
-from one licensed agent to another licensed agent
-from one licensed broker to another licensed broker
-from one consumer to another consumer - ✔✔from one licensed broker to another
licensed broker
✔✔A tenant has an estate for years. According to the written one-year lease, the
tenancy will expire on May 1st. To obtain possession as of the date, the landlord
-must give the tenant 30 days' notice
-must give the tenant 60 days notice
-is not required to give the tenant any notice
-must give the tenant noticed before April 15th - ✔✔is not required to give the tenant
any notice
✔✔In Kentucky, errors and omissions insurance is
-voluntary
-recommended
-not necessary
-mandatory - ✔✔mandatory
ANSWERS SET A+
✔✔What is the cost of constructing a fence 6 ft 6 in high around a lot measuring 90' x
175', if the cost of erecting the fence is $1,25 per linear ft and the cost of material is
$.825 per sg ft of fence? - ✔✔$3,505
✔✔A building is valued as $215,000 and contains 4 apartments that rent for $470 each
per month. The owner estimates that the net operating income is 65% of the gross
rental receipts. What is the capitalization rate?
-3.7%
-14.2%
-10.5%
-6.8% - ✔✔6.8%
✔✔Carbon monoxide is not
-quickly absorbed in the body
-a result of incomplete combustion
-a natural result of combustion
-easy to detect - ✔✔Carbon monoxide is not easy to detect
✔✔When compared with a 30 year payment period, taking out a loan with a 20 year
payment period would result in
-lower monthly payments
-higher monthly payments
-greater impound requirements
-slower equity buildup - ✔✔higher monthly payments
✔✔All of the following are subject to real property ownership rights EXCEPT
-buildings located on the land
-air space above the land
-navigable rivers running through the land
-easements running with the land - ✔✔navigable rivers running through the land
, ✔✔All of the following are alternative risk management techniques EXCEPT
-ignoring it
-retaining it
-transferring it
-avoiding it - ✔✔ignoring it
✔✔An important characteristic of land is that is may be modified or improved at some
point in time. Depending on its type, an improvement may increase the value of real
estate greatly. All of the following are considered to be improvements EXCEPT
-buildings
-crops
-sewers
-roads - ✔✔crops
✔✔Federal income tax regulations allow homeowners to reduce their taxable income by
amounts paid for
-repairs and maintenance
-hazard insurance premiums
-principal and interest
-real estate taxes - ✔✔real estate taxes
✔✔Referral fees can be legally paid
-from a licensed broker to a consumer who referred a client
-from one licensed agent to another licensed agent
-from one licensed broker to another licensed broker
-from one consumer to another consumer - ✔✔from one licensed broker to another
licensed broker
✔✔A tenant has an estate for years. According to the written one-year lease, the
tenancy will expire on May 1st. To obtain possession as of the date, the landlord
-must give the tenant 30 days' notice
-must give the tenant 60 days notice
-is not required to give the tenant any notice
-must give the tenant noticed before April 15th - ✔✔is not required to give the tenant
any notice
✔✔In Kentucky, errors and omissions insurance is
-voluntary
-recommended
-not necessary
-mandatory - ✔✔mandatory
