sales general practice exam – Pearson Questions with 100% Correct Answer

sales general practice exam – Pearson Questions with 100% Correct Answer Which of the following clauses in a conventional mortgage instrument entitles the lender to accelerate the loan if the loan is assumed? Prepayment Right-to-sell Due-on-sale Variable interest rate - Answer- Due-on-sale If the value of a property is affected by negative forces outside the property, which are beyond the control of the owner, this is referred to as: physical deterioration accrued depreciation functional obsolescence economic obsolescence - Answer- economic obsolescence An agreement between what two parties determines the amount of earnest money during a real estate transaction? - Answer- Buyer and Seller If XYZ Company defaults on its unexpired lease and abandons the rented premises, the property manager SHOULD: release XYZ from any further obligations and sublet the property forfeit XYZ's security deposit and most recent rent payment notify XYZ that it is responsible for the remaining lease payments charge XYZ a penalty of three times the rent due - Answer- release XYZ from any further obligations and sublet the property A property manager works in the BEST interests of the: tenant owner agent bank - Answer- owner Under which circumstances is a licensee permitted to use a client's money for personal use? A.With verbal permission from the broker B.With written permission from the buyer and the seller C.If permitted by the state real estate commission D.Under no circumstances - Answer- D.Under no circumstances Which type of mortgage loan has provisions for periodic changes in the amount of the payment, the interest rate, the maturity date, and the remaining balance owed? A.FHA loan B.Conventional loan C.Blanket loan D.Adjustable loan - Answer- D.Adjustable loan Which of the following actions is an example of blockbusting? A.Telling homeowners that a neighborhood will have a new golf course B.Advertising a neighborhood party where alcohol will be served C.Making sales calls to neighbors who are on the Do Not Call list D.Stating that the presence of certain persons in a neighborhood will increase crime - Answer- D.Stating that the presence of certain persons in a neighborhood will increase crime The brokerage fee charged by a listing broker is determined by the: A.local ordinance B.local real estate board C.multiple listing service D.broker and the principal - Answer- D.broker and the principal What type of insurance would cover a mistake or negligence on a licensee's part that results in financial loss to a client? A.General liability insurance B.Errors and Omissions (E&O) insurance C.Hazard insurance D.Group insurance - Answer- B.Errors and Omissions (E&O) insurance The donation of private land for public use is called: A.accretion B.dedication C.assignmen