Pearson vue practice exam questions
with Correct Answers
In stating a seller's price and terms to a prospective buyer, the seller's broker is required
by the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
c. favorable for the seller, as determined by the broker
d. attractive to buyers, as determined by the broker - Answer-a. included in the listing
agreement
a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in
front, 20 feet in the rear, and 20 feet on each side. if a builder wants to put a one-story
building on the lot, the MAXIMUM square footage it can contain is
a. 3,300 sq ft
b. 3,600 sq ft
c. 6,300 sq ft
d. 6,600 sq ft - Answer-c. 6,300 sq ft
a house with a market value of $80,000 is located where property is assessed at 70% of
market value. if the tax rate is $4 per $100 of assessed value, the property taxes are
a. $224
b. $960
c. $2,240
d. $3,200 - Answer-c. $2,240
a broker charges a leasing fee of one-half of the first months rent and a management
fee of 8% of all rents collected. the broker negotiates a two-year lease at a monthly
rental of $550. which of the following amounts will the broker earn on this lease
a. $1,378
b $1,331
c. $1,287
d. $1,056 - Answer-b. $1,331
a property manager works in the BEST interests of the
a. tenant
b. owner
c. agent
d. bank - Answer-b. owner
, in reviewing the deed to a listed property, a licensee noted a number of limitations
regarding its use. these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants - Answer-D. Restricted covenants
the price at which a willing and informed buyer would buy and a willing and informed
seller would sell is called the
a. assessed value
b. book value
c. income approach to value
d. market value - Answer-d. market value
the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment - Answer-b. office building
the G's purchased a house from the T's. the G's agreed to the following terms: monthly
payments of $650 to the T's and the balance to be paid in full after 7 years. at the time
the balance is paid, the T's will give the G's a warranty deed transferring title. in this
situation, what type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed - Answer-d. contract for deed
the provision in a mortgage or deed of trust that gives the lender the right to call the
entire balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause - Answer-a. acceleration clause
a broker who represents a buyer is trying to negotiate on the buyer's behalf in a
potential transaction. the broker realizes that by negotiating a reduced price for the
buyer, the broker's commission will also be reduced. in this situation, the broker is
obligated to negotiate the BEST price for the
with Correct Answers
In stating a seller's price and terms to a prospective buyer, the seller's broker is required
by the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
c. favorable for the seller, as determined by the broker
d. attractive to buyers, as determined by the broker - Answer-a. included in the listing
agreement
a lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in
front, 20 feet in the rear, and 20 feet on each side. if a builder wants to put a one-story
building on the lot, the MAXIMUM square footage it can contain is
a. 3,300 sq ft
b. 3,600 sq ft
c. 6,300 sq ft
d. 6,600 sq ft - Answer-c. 6,300 sq ft
a house with a market value of $80,000 is located where property is assessed at 70% of
market value. if the tax rate is $4 per $100 of assessed value, the property taxes are
a. $224
b. $960
c. $2,240
d. $3,200 - Answer-c. $2,240
a broker charges a leasing fee of one-half of the first months rent and a management
fee of 8% of all rents collected. the broker negotiates a two-year lease at a monthly
rental of $550. which of the following amounts will the broker earn on this lease
a. $1,378
b $1,331
c. $1,287
d. $1,056 - Answer-b. $1,331
a property manager works in the BEST interests of the
a. tenant
b. owner
c. agent
d. bank - Answer-b. owner
, in reviewing the deed to a listed property, a licensee noted a number of limitations
regarding its use. these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants - Answer-D. Restricted covenants
the price at which a willing and informed buyer would buy and a willing and informed
seller would sell is called the
a. assessed value
b. book value
c. income approach to value
d. market value - Answer-d. market value
the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment - Answer-b. office building
the G's purchased a house from the T's. the G's agreed to the following terms: monthly
payments of $650 to the T's and the balance to be paid in full after 7 years. at the time
the balance is paid, the T's will give the G's a warranty deed transferring title. in this
situation, what type of financing was used
a. fha loan
b. wrap around mortgage
c. package mortgage
d. contract for deed - Answer-d. contract for deed
the provision in a mortgage or deed of trust that gives the lender the right to call the
entire balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause - Answer-a. acceleration clause
a broker who represents a buyer is trying to negotiate on the buyer's behalf in a
potential transaction. the broker realizes that by negotiating a reduced price for the
buyer, the broker's commission will also be reduced. in this situation, the broker is
obligated to negotiate the BEST price for the
