VA Real Estate Practice Exam National 2 Solved 100%

When leasing property under a net lease, the tenant could deduct all of the following as business expenses, EXCEPT: A. Maintenance B. Fire insurance C. Depreciation D. Utilities - Answer Depreciation Encouraging a homeowner to sell his or her property because minority group families are moving into the neighborhood is: A. Redlining B. Steering C. Blockbusting D. Puffery - Answer Blockbusting A broker accepts an exclusive right-to-sell listing. However, the property is later sold by another broker. How many brokers could be owed a commission by the principals in this transaction? A. 0 B. 1 C. 2 D. 3 - Answer 2 Phil is a salesman working for Broker Joan. Phil takes a listing on January 3rd. The listing is a 60-day exclusive right-to-sell agreement. On February 1st, Phil was killed in an automobile accident. What is the status of the listing? A. The listing becomes an open listing B. The listing terminates by operation of law C. The listing remains valid D. The seller may now list the property with another salesman working for Broker Joan - Answer The listing remains valid Two brokers agree that they will charge the same commission rate on all property listed by their offices. Such an action: A. Is common practice B. Is in violation of anti-trust laws C. Is prohibited by RESPA D. Both B and C - Answer Is in violation of anti-trust laws Which of the following does NOT reflect current real estate market conditions? A. Building permits B. Deed recordings C. Mortgage recordings D. Divorce filings - Answer Divorce filings Harry the Homeowner buys a new home. The purchase is financed with a conventional, amortized loan equal to $67,000. The interest rate on the loan is 8%, payable over 30 years. Harry's first monthly payment is $500. What is the loan balance after Harry's first payment? A. $60,000.00 B. $64,557.00 C. $65,088.65 D. $66,946.67 - Answer $66,946.67 Interest (annual) = $67,000 x 0.08 = $5,360 Interest (monthly) = $5,360 / 12 = $446.67. Next, deduct Harry's monthly payment from the monthly interest to determine the principal amount, and then the new loan balance: Principal = $500 - $446.67 = $53.33. Loan balance = $67,000 - $53.33 = $66,946.67. Under RESPA, the Mortgage Servicing Statement informs borrowers of: A. All the payments expected to be deposited into the escrow account B. The actual fees and services that will be provided C. Whether the lender expects someone else to service the loan D. Settlement service charges that the borrower will likely have to pay - Answer Whether the lender expects someone else to service the loan A net lease affords the lessee with: A. The right to depreciate the building B. A deduction for interest payments on the loan C. A pro rata share of building expenses D. The right to assign the lease - Answer A pro rata share of building expenses The difference between the property value and its debts is known as: A. Ownership B. Equity C. Collateral D. Novation - Answer Equity A comparable for a property has a pool and sun roof, but the subject property does not. The price of the: A. Subject property will be adjusted higher B. Subject property will be adjusted lower C. Comparable property will be adjusted higher D. Comparable property will be adjusted lower - Answer Comparable property will be adjusted lower The relationship that generally exists between a salesperson and a seller is a: A. Universal agency B. Special agency C. General agency D. None of the above - Answer None of the above The money under an FHA loan is provided by: A. The Federal Housing Administration B. Qualified lenders C. The FDIC D. The Federal Treasury - Answer Qualified lenders Tax assessment of real property according to value is known as: A. Appraisal B. Ad valorem C. Replacement cost D. Accretion - Answer Ad valorem Which of the following practices would most likely deteriorate the economic status of a neighborhood? A. Redlining B. Steering C. Over-development of property D. Bulk zoning - Answer Redlining Which act regulates the closing procedures in a real estate transaction? A. ECOA B. RESPA C. FIRPTA D. Lead Act - Answer RESPA Which of the following entities is NOT involved in the secondary mortgage market? A. Federal National Mortgage Association B. Government National Mortgage Association C. Federal Housing Administration D. Federal Home Loan Mortgage Corporation - Answer Federal Housing Administration Using a property in the most profitable manner is called the: A. Economic life B. Highest and best use C. Principle of conformity D. Reconciliation process - Answer Highest and best use Broker A shows a house with a faulty roof. When he finds out about the roof, should he tell the buyer/customer? A. Yes, it is an agency responsibility B. Yes, it is a material fact C. Only if he is a dual agent D. Only if he has the seller's permission - Answer Yes, it is a material fact A broker has an exclusive right-to-sell listing, but the seller finds his own buyer while the listing is still in force. The broker is entitled to: A. A full commission B. Half of the commission C. Reimbursement for out-of-pocket expenses D. No commission, because the owner is the one who sold the house - Answer A full commission