Pearson Vue Real Estate Practice Exam

Pearson Vue Real Estate Practice Exam Under the law of agency, a broker's responsibility to the principal is? - Answer- Exercise Care, obedience, accounting and disclosure Which of the following items would have to be disclosed to prospective buyers by the listing broker? - Answer- 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? - Answer- 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? - Answer- Can't be followed because they violate the act Items permanently attached to real property are considered? - Answer- Fixtures The income approach is most likely to be used when determining the value of an? - Answer- Office building A property manager works in the best interest of the? - Answer- 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? - Answer- Covenant When a married couple takes title to a property as tenants in common, they have elected a form of ownership that allows for? - Answer- Unequal shares of Ownership A loan that provides for increases and decreases in the interest rate during its term is known as? - Answer- 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? - Answer- Steering In a real estate closing, the buyer generally pays for the? - Answer- 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? - Answer- 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? - Answer- Metes & Bounds In