Pearson Vue Real Estate Practice Exam Questions with 100% Verified Solutions

Under the law of agency, a broker's responsibility to the principal is? - Exercise Care, obedience, accounting and disclosure Which of the following items would have to be disclosed to prospective buyers by the listing broker? - A defect existing in the property being offered. Under a sales contract, the legal remedy that MAY be used to force the seller to consummate the sale is called? - Specific Performance A homeowner who plans to travel for a year asks a real estate firm to rent the house for this period and indicates a preference for a white family rather than a black family, "if at all possible." Under the Federal Fair Housing Act, the broker should inform that these instructions? - Can't be followed because they violate the act Items permanently attached to real property are considered? - Fixtures The income approach is most likely to be used when determining the value of an? - Office building A property manager works in the best interest of the? - Owner An agreement that restricts the use and occupancy of real estate, is part of a conveyance, and is binding on all subsequent buyers is called? - Covenant When a married couple takes title to a property as tenants in common, they have elected a form of ownership that allows for? - Unequal shares of Ownership A loan that provides for increases and decreases in the interest rate during its term is known as? - An ARM, adjustable-rate mortgage A minority couple asks a licensee to show them a listed house. The licensee suggests that they look at houses in areas with larger minority populations than that of the listed house. What is the licensee guilty of? - Steering In a real estate closing, the buyer generally pays for the? - recording of a new mortgage An illegal lending practice whereby a bank refuses to make mortgage loans in a certain neighborhood based on the ethnic makeup of that area is known as? - Red-lining Which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances? - Metes & Bounds In addition to real property, pledging a freestanding stove and refrigerator as security for a loan is an example of which of the following mortgages? - Package