NATIONAL REAL ESTATE EXAM QUESTIONS AND ANSWERS| 100% CORRECT 2024

NATIONAL REAL ESTATE EXAM QUESTIONS AND ANSWERS| 100% CORRECT 2024 Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the loan back and finally made her last payment this month. What happens now? - answerBecause the property deed was held by a third-party trustee instead of the lender, the trustee grants a reconveyance deed to Olivia. Warren signed a contract with the Samsons for the sale of property he didn't own. What type of contract is this? - answerA party can't promise to do something impossible in a contract. Doing so makes the contract void. Which amendment to CERCLA says that "innocent landowners" aren't responsible for clean-up of hazardous contamination? - answerThe Superfund Amendments and Reauthorization Act, or SARA, says that innocent landowners aren't responsible for clean-up of hazardous contamination. With the cost approach to value, what is the replacement cost? - answerThe replacement cost reflects the cost to build a functionally equivalent improvement, as opposed to the reproduction cost, which is the cost to build an exact replica of the subject, with the same materials and deficiencies. Antje's clients closed on their property yesterday, but Antje still has some paperwork that she needs to deliver to them as soon as possible. Under which fiduciary duty is Antje acting? - answerThe duty of accounting may continue even after the transaction closes. The agent must account for any documents or money belonging to the client until it is delivered to the appropriate party. When real estate licensee Brian discovered that Arnold was using a 'Choose Your Neighbor' letter to market a property without also listing the property in the MLS, in the local paper, or even putting a for sale sign in the yard, what charge could he bring against Arnold to the National Association of REALTORS®? - answerREALTOR® Brian could charge Arnold with violating Article 10 of the Code of Ethics, which prohibits REALTORS® from agreeing to discriminate against people belonging to a protected class. What is estate at sufferance? - answerEstate at sufferance is when a tenant remains on the property after the lawful authority has expired (a holdover tenant), after which the landlord may evict. Which entity typically enforces the code restrictions and licensing and insurance requirements for contractors, thereby enforcing the building code? - answerWhile builders and developers self-regulate to some degree, they're not responsible for enforcing the building code. This is the local building department's responsibility. Under which types of agency agreement may a buyer and agent operate? - answerOpen, exclusive right to represent, and exclusive agency What is a survey? - answerA survey is used to create, verify, or correct a legal description. It's a professional on-site measurement of the lot lines and dimensions of a property. Melisa's mother gave her house to Melisa, along with a signed copy of the deed granting ownership to Melisa. Years later, Melisa decides to downsize by selling the property. The title company shows that the property is still in Melisa's mother's name. What does Melisa have to do to clear this up? - answerTo preserve the chain of title, Melisa needs to record the signed deed. Then future records will show an unbroken chain of title. Prior to the ______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. - answerThe Housing and Community Development Act of 1974 included gender or a person's sex in the list of protected classes. Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy? - answerTitle insurance companies issue a preliminary report with the current title history and any liens or encumbrances. It outlines what the insurance company will or won't cover on its forthcoming insurance policy if the title is found to be acceptable. When is a lead disclosure required? - answerA lead disclosure is required for residential properties built before 1978 because paint manufacturers used lead in paint before it was banned that year. Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract? - answerDepending upon the contract's terms, a potential disadvantage for a buyer who enters into a lease with an option to buy is that he could lose any funds credited to the purchase price if he breaches the terms of the lease. Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have? - answerA fee simple determinable has limitations as to what can or can't be done with a property. It uses phrases such as "so long as," "while," or "during" to describe the required conditio