PEARSON VUE STUDY EXAMS GUIDE ANSWERS AND
QUESTIONS SET A+
✔✔the owners of a house sign a listing agreement and later tell the licensee that the
garage roof leaks. if they tell the licensee not to reveal the roof's condition to any
prospective buyers the licensee MUST
a. abide by the owners request
b. advise the sellers that they must disclose the condition of the roof to prospective
buyers
c. advice only those prospective buyers who ask about the roof
d. refer all prospective buyers who have questions about the roofs condition to sellers -
✔✔b. advise the sellers that they must disclose the condition of the roof to prospective
buyers
✔✔which type of mortgage loan has provisions for periodic changes in the amount of
the payment, the interest rate, the maturity date, and the remaining balance owed?
a. fha loan
b conventional loan
c. blanket loan
d. adjustable loan - ✔✔d. adjustable loan
✔✔a salesperson who completes a written listing agreement with a seller is helping to
create a contractual relationship between the
a. salesperson and the seller
b. salesperson and the buyer
c. salesperson and the listing broker
d. salespersons broker and the seller - ✔✔d. salespersons broker and the seller
✔✔buyers make an earnest money deposit on a property and sign a contract that is
contingent on specific financing terms. if a bank commits to the financing, but the buyers
,change their minds and notify the seller in writing that they do not intend to buy the
property, which of the following statements is correct
a. the bank may sue the buyers
b. the seller may sue the buyers for breach of contract
c. the buyers may rescind the contract only after paying the brokerage fee
d. the buyers are entitled to the return of the earnest money deposit - ✔✔b. the seller
may sue the buyers for breach of contract
✔✔which of the following documents is usually prepared when a real estate buyer also
purchases a seller's riding lawn mower
a. an option
b. a wraparound loan
c. a conditional sales contract
d. a bill of sale - ✔✔d. a bill of sale
✔✔the difference between the value of a property and the total amount of liens against
it is known as
a. market value
b. equity
c. actual cash value
d. collateral - ✔✔b. equity
✔✔which of the following actions is an example of blockbusting
a. telling homeowners that a neighborhood will have a new golf course
b. advertising a neighborhood party where alcohol will be served
c. making sales calls to neighbors who are on the Do Not Call list
d. stating that the presence of certain persons in a neighborhood will increase crime -
✔✔d. stating that the presence of certain persons in a neighborhood will increase crime
✔✔A lender's title policy will protect the:
a. lender against default in loan payments
b. borrower against default in loan payments
c.. lender against existing, undiscovered title defects
d. borrower against unrecorded liens - ✔✔c. lender against existing, undiscovered title
defects
✔✔which of the following BEST describes personal property that, by its attachment to
real property, is regarded as real estate
a. emblements
, b. personality
c. fixtures
d. appliances - ✔✔c. fixtures
✔✔which of the following credit terms may be included in an advertisement for real
estate without further disclosure?
a. "8% annual percentage rate"
b. "5 years to repay"
c. "$5,000 down payment
d. "$300 monthly payment" - ✔✔a. "8% annual percentage rate"
✔✔when a contract states that "time is of the essence," the contract MUST be delivered
and presented
a. within 24 hours
b. within 48 hours
c. electronically
d. as soon as possible - ✔✔D. ASAP
✔✔which of the following clauses in a conventional mortgage instrument entitles the
lender to accelerate the loan if the loan is assumed
A. prepayment
b. right-to-sell
c. due-on-sale
d. variable interest rate - ✔✔c. due-on-sale
✔✔a seller has delinquent property taxes of $572. at closing, the taxes will be a
a. debit to the seller $572
b. debit to the buyer $572
c. credit to the seller $572
d. credit to the buyer $572 - ✔✔a. debit to the seller $572
✔✔an apartment project with 160 units has 8 vancancies. the vacancy rate is:
a. 5%
b.8%
c 92%
d. 95% - ✔✔a 5%
✔✔to be certain that a property has no encroachments, an appraiser should check a
a. survey
QUESTIONS SET A+
✔✔the owners of a house sign a listing agreement and later tell the licensee that the
garage roof leaks. if they tell the licensee not to reveal the roof's condition to any
prospective buyers the licensee MUST
a. abide by the owners request
b. advise the sellers that they must disclose the condition of the roof to prospective
buyers
c. advice only those prospective buyers who ask about the roof
d. refer all prospective buyers who have questions about the roofs condition to sellers -
✔✔b. advise the sellers that they must disclose the condition of the roof to prospective
buyers
✔✔which type of mortgage loan has provisions for periodic changes in the amount of
the payment, the interest rate, the maturity date, and the remaining balance owed?
a. fha loan
b conventional loan
c. blanket loan
d. adjustable loan - ✔✔d. adjustable loan
✔✔a salesperson who completes a written listing agreement with a seller is helping to
create a contractual relationship between the
a. salesperson and the seller
b. salesperson and the buyer
c. salesperson and the listing broker
d. salespersons broker and the seller - ✔✔d. salespersons broker and the seller
✔✔buyers make an earnest money deposit on a property and sign a contract that is
contingent on specific financing terms. if a bank commits to the financing, but the buyers
,change their minds and notify the seller in writing that they do not intend to buy the
property, which of the following statements is correct
a. the bank may sue the buyers
b. the seller may sue the buyers for breach of contract
c. the buyers may rescind the contract only after paying the brokerage fee
d. the buyers are entitled to the return of the earnest money deposit - ✔✔b. the seller
may sue the buyers for breach of contract
✔✔which of the following documents is usually prepared when a real estate buyer also
purchases a seller's riding lawn mower
a. an option
b. a wraparound loan
c. a conditional sales contract
d. a bill of sale - ✔✔d. a bill of sale
✔✔the difference between the value of a property and the total amount of liens against
it is known as
a. market value
b. equity
c. actual cash value
d. collateral - ✔✔b. equity
✔✔which of the following actions is an example of blockbusting
a. telling homeowners that a neighborhood will have a new golf course
b. advertising a neighborhood party where alcohol will be served
c. making sales calls to neighbors who are on the Do Not Call list
d. stating that the presence of certain persons in a neighborhood will increase crime -
✔✔d. stating that the presence of certain persons in a neighborhood will increase crime
✔✔A lender's title policy will protect the:
a. lender against default in loan payments
b. borrower against default in loan payments
c.. lender against existing, undiscovered title defects
d. borrower against unrecorded liens - ✔✔c. lender against existing, undiscovered title
defects
✔✔which of the following BEST describes personal property that, by its attachment to
real property, is regarded as real estate
a. emblements
, b. personality
c. fixtures
d. appliances - ✔✔c. fixtures
✔✔which of the following credit terms may be included in an advertisement for real
estate without further disclosure?
a. "8% annual percentage rate"
b. "5 years to repay"
c. "$5,000 down payment
d. "$300 monthly payment" - ✔✔a. "8% annual percentage rate"
✔✔when a contract states that "time is of the essence," the contract MUST be delivered
and presented
a. within 24 hours
b. within 48 hours
c. electronically
d. as soon as possible - ✔✔D. ASAP
✔✔which of the following clauses in a conventional mortgage instrument entitles the
lender to accelerate the loan if the loan is assumed
A. prepayment
b. right-to-sell
c. due-on-sale
d. variable interest rate - ✔✔c. due-on-sale
✔✔a seller has delinquent property taxes of $572. at closing, the taxes will be a
a. debit to the seller $572
b. debit to the buyer $572
c. credit to the seller $572
d. credit to the buyer $572 - ✔✔a. debit to the seller $572
✔✔an apartment project with 160 units has 8 vancancies. the vacancy rate is:
a. 5%
b.8%
c 92%
d. 95% - ✔✔a 5%
✔✔to be certain that a property has no encroachments, an appraiser should check a
a. survey
