Real Estate National Exam Prep #3 Questions and Answers 100% Pass

Real Estate National Exam Prep #3 Questions and Answers 100% Pass Under an exclusive right to sell listing, a license holder has the authority to take which of the following actions on behalf of a seller? (a) make price adjustments based on feedback from showings (b) refuse to present offers that the salesperson feels are too low (c) advertise the property for sale (d) offer a lease purchase arrangement to a prospective buyer - Correct Answer ️️ -(c) advertise the property for sale In a contract for deed, the seller is the: (a) Guarantee (b) Vendor (c) Offeror (d) Trustee - Correct Answer ️️ -(b) Vendor A home has a current market value of $225,000. MLS data from the last five years shows that home values have appreciated 6% per year. Based on this information, what will be the value of the house 5 years from now assuming compound appreciation? (a) $301,101 (b) $284,057 (c) $267,979 (d) $252,810 - Correct Answer ️️ -(a) $301,101 Which of the following expenses is prorated at closing? (a) Appraisal costs of the buyer (b) Title policy fees to be paid by the seller (c) Property taxes owed by the seller (d) Home warranty policy premium - Correct Answer ️️ -(c) Property taxes owed by the seller A property is advertised as "For Sale by Owner." The seller owns 2 homes. The seller receives several offers and chooses the buyer based on the buyer's national origin. Neither party is represented by a broker. Which of the following is true about violation of the Fair Housing laws? (a) The seller is in violation of the Fair Housing Act (b) The seller is not in violation because his actions do not involve a broker. (c) The seller is only in violation for 6 months (d) The seller is only in violation for 2 years - Correct Answer ️️ -(b) The seller is not in violation because his actions do not involve a broker. Which of the following is a known cause of mold? (a) Lead based paint (b) Humidity (c) Mortar board (d) Cement board - Correct Answer ️️ -(b) Humidity A builder has a blanket loan on a parcel of land and sells a lot from the parcel. How can he deliver a deed to to the buyer at closing? (a) He pays off the cost of the lot (b) He gets a new mortgage on the lot (c) He refinances the existing mortgage (d) He gets a package mortgage - Correct Answer ️️ -(a) He pays off the cost of the lot A component of the Gross Income Multiplier (GIM) is: (a) Net yield (b) Vacancy rate (c) Yearly rent (d) Operating expenses - Correct Answer ️️ -(c) Yearly rent An appraiser reduces the value of a home due to 60amp service when the standard electrical service for the subdivision is 100amp. What is he citing? (a) Physical deterioration (b) Economic obsolescence (c) Functional obsolescence (d) Deferred maintenance - Correct Answer ️️ -(c) Functional obsolescence A person selling a home wants to advertise they will not sell to a specific national origin. This act is: (a) Illegal (b) Legal if they own 3 units or less (c) Only race and color preferences would be illegal (d) This is only illegal for 2 or more units - Correct Answer ️️ -(a) Illegal A landlord rents a 6 unit apartment complex for $450/unit per month. The property manager receives a 10% management fee. The mortgage for the complex is $1800/month and repairs are $180/month. What is the landlord's net income per month? (a) $450 (b) $900 (c) $2,700 (d) $2,250 - Correct Answer ️️ -(d) $2,250 Which of the following transactions would not qualify for VA financing? (a) Senior apartment complex (b) Fourplex where one unit will be occupied by the owner (c) Single family home (d) a rural home on 10 acres - Correct Answer ️️ -(a) Senior apartment complex A property is described as having the best views and best floorplan in the subdivision. This would be considered: (a) misrepresentation (b) Puffing (c) Exaggeration (d) Willful misleading - Correct Answer ️️ -(b) Puffing A client is abandoned by the agent. What can the client do?