Sales General Exam - Stringham Real Estate School UPDATED Exam Questions and CORRECT Answers

Sales General Exam - Stringham Real Estate School UPDATED Exam Questions and CORRECT Answers A particular parcel was zoned residential, single family and was surrounded by others zoned the same. That parcel was rezoned commercial so a convenience store could be built. This is an example of: a) Legal non -conforming use b) Defeasible fee estate c) Spot Zoning d) Variance - CORRECT ANSWER - c) Spot Zoning Z listed the property. When the buyers expressed interest in seeing it, Z disclosed they would have no representation and the buyers agreed in writing. When writing the offer, the buyers asked Z what they should offer. Z responded, "Oh 93% of the listed pr ice would be good." Which most applies? a) This would be a good suggestion for the agent to make. b) This is ostensible agency between Z and the buyers c) Z is properly representing the seller and obtaining an offer. d) This is limited agency and legal . - CORRECT ANSWER - b) This is ostensible agency between Z and the buyers. George smith who owns his property fee simple grants a three year lease to tom green during the second year of the lease George sells the property to Ned Gray what happens to the l ease when the sale closes a) property cannot be sold and title transferred to a new owner when a lease is in effect b) it must be negotiated between gray and Mr Green the leasee c)the lease remains in effect with Mr gray and Mr green d) it terminates - CORRECT ANSWER - c) The lease remains in effect with Mr. Gray and Mr. Green At the beginning of each month the lessee gives, and the lessor takes the rent. This best describes: a) Tenancy by the entirety b) Periodic Tenancy c) Joint Tenancy d) Tenancy at will - CORRECT ANSWER - b) Periodic Tenancy What is the amount of pre -paid interest to the borrower if her $205,000 loan at 5.5% annual interest rate closes on November 15? a) $258.33 b) $939.58 c) $469.79 d) $370.00 - CORRECT ANSWER - c) $469.79 What term best describes a situation where the lessor collects rents from the tenants and pays expenses out of those rents? a) Net Lease b) Participation Lease c) License Estate d) Gross Lease - CORRECT ANSWER - d) Gross Lease L agreed to carry a 2nd in the sale of the home. It was for $20,000, 9% interest, 30 years, payment of $160.92 per month. However, it had a five year call when the buyer would pay off the balance of $19,176. How would you describe this loan arrangement? a) Fully amortized b) Discounted c) Wraparound d) Partially amortized - CORRECT ANSWER - d) Partially Amortized An assessor is trying to determine the square footage of a property. He measures: a) the outside dimensions. b) the inside rooms includi ng the closets. c) inside, usable area. d) the home, excluding hallways. - CORRECT ANSWER - a) the outside dimensions An agent contacted an owner to see if they might want to sell the property. The agent said, "I think I can get you $250,000," which su rprised the owner. The owner said, "Ok, and anything over that can be your commission." This is: a) A really good deal for the agent and the agent should jump on it! b) Only legal if the agent ran comps and can justify the $250,000 number. c) A perfec tly good way for agents to market themselves and get listings. d) Is a net listing and could be grounds for disciplinary action against the agent. - CORRECT ANSWER - d) Is a net listing and could be grounds for disciplinary action against the agent. If the interest rate on a straight loan is 8% and the monthly interest payment is $650, what is the amount of the loan? a) $75,682 b) $103,250 c) $88,750 d) $97,500 - CORRECT ANSWER - d) $97,500 Which of the following is NOT part of an appraisal? a) The d ate of the appraisal report b) Appraiser's best estimate value c) A description of the neighborhood surrounding the property d) The signature of the appraiser - CORRECT ANSWER - The owner wants to net $40,000 upon selling the property. The commission is 7%, there will be $2,500 in closing costs, plus a $450 fee to the attorney. What does the property need to sell for to the the owner $40,000 net? a) $215,716 b) $50,125.00 c) $2 00,555 d) $46,182.80 - CORRECT ANSWER - d) $46,182.80 The relationship between the lessor and the lessee could be defined as which of the following?