Real Estate Exam Practice Top Graded Questions and Answers 2024

Amenities of residential real estate are: - A) The property's physical attributes B) Measurable on the market C) Not considered by appraisers because they are intangible qualities D) Related to its capacity to provide shelter effectively B) To restore an old home to its original condition without making any changes in the floor plan or style is referred to as - A) Rehabilitiation B) Modernization C) Reclamation D) Remodeling A) One who takes in severalty most generally takes title - A) In partnership B) In common C) In joint tenancy D) As sole owner D) Which would be the best and most nearly complete definition of the term encumbrance? - A) Any action taken relative to a property other than an acquisiton B) Anything that affects or limits the fee simple title to property C) Degree, quantity, nature and extent of interest a person has in property D) The use of property by a debtor to offer a creditor security of debt B) The year in which the U.S. supreme court barred racial discrimination, both public and private, in the sale or rental of real property - A)1972 B)1960 C)1968 D)1984 C) An investment property is appraised at 400,000 based on a net income of 36000 and a 9 percent capitalization rate. The value of the property based on a 12 percent capitalization rate would be. - A) 450000 B)250000 C) 423000 D)300000 R x V=I .12 x V= 36000 V=36000 / .12 = 300000 D) Items that a landlord owned apartment building and a condominium project would have in common would be - A) After development of five units both would be under the subdivision law B) Separate tax bills sent to each tenant C) Occupants of both have a fee interest D) Occupants of both have estates in real property D) An appraiser using the replacement cost approach on an older residential property would use all of these except - A) Capitalization of income B) Land Value C) Depreciation D) Cost of improvements new A) A licensee who is guilty of conversion is one who is - A) Commingling B) Misrepresenting C) Failing to make a full disclosure D) Misappropriating the funds of clients A clause in a second trust deed that permits the first trust deed to be refinanced without affecting its priority would be known as a - A) Acceleration clause B) Subordination clause C) Lien Waiver D) Alienation clause B) Which type of financing would least likely create a need for a cash down payment from a borrower? - A)VA B) Cal-Vet C) Conventional D)FHA A downpayment is not a requirement of a VA guaranteed loan (unless the certificate of reasonable value is less than purchase price) A) In planning a shopping center in a suburban community, which would be the most important consideration? - A) Proximity of shipping and warehousing facilities B) Purchasing power C) Amenities D) Weather B)