UPDATED Exam Questions and
CORRECT Answers
when does the real estate agent give the seller's a copy of their listing agreement form? -
Correct Answer- immediately
what are the elements needed for a valid purchase and sales agreement? - Correct Answer-
consideration (not of monetary value), in writing & lawful purpose. There does not need to be
earnest money but often is
a mortgage that secures both real and personal property as collateral to secure a borrower's
debt - Correct Answer- package mortgage
name of the state/local sales tax debt to the seller in the transfer of property listed on the
uniform settlement statement - Correct Answer- documentary stamp tax or transfer tax
a property owner could qualify for tax deferred exchange if it was what? - Correct Answer-
used in a business or trade
conditional use permit - Correct Answer- allows certain beneficial uses (schools, churches,
etc) to operate in residential neighborhoods despite zoning laws
what do the terms "offer and acceptance", "mutual assent" & "meeting of the minds" all
mean? - Correct Answer- that there is an unqualified acceptance in offer, all these terms refer
to whether the parties mutually consented to the terms of a contract. (a counteroffer is
sometimes referred to as a qualified acceptance.)
who's responsibility is it (buyer or seller) when remedial action is needed? - Correct Answer-
whichever party agreed to pay for the expense in the purchase and sales agreement
what about prepayment penalties is true? - Correct Answer- neither FHA nor VA loans allow
prepayment penalties
, four elements of economic characteristics of real estate - Correct Answer- scarcity, demand,
transferability, and utility
which charges are prorated between the buyer and seller at closing? - Correct Answer-
property taxes, utility bills, special assessments.
why are recording fees not prorated between the buyer and seller at closing? - Correct
Answer- instead, each party pays the costs associated with the recording documents that
benefit that particular part
before the parties to a tax-deferred exchange can qualify for the tax benefit they must provide
notice of exchange within...? - Correct Answer- 45 days
what are the conditions a tenant with a disability must adhere to by law when changing an
apartment? - Correct Answer- they are allowed to make any necessary modifications at their
own expense but the landlord can require that they restore the property at the end of the lease
to it's original condition
a section of land is equivalent to what? - Correct Answer- one square mile, 640 acres
a seller who wants to make public notice of their interest in property they are financing (seller
financed) should what? - Correct Answer- record the mortgage. buyer records the deed to
give notice of his/her ownership interest
building codes provide what? - Correct Answer- minimum standards for construction
what is a latent defect? - Correct Answer- is a problem that would not be discovered by
ordinary inspection
what is the lead based paint cut off? - Correct Answer- any house built before 1978
what type of repairs can be tax deductible for the owner of an investment property? - Correct
Answer- repairs to keep an investment property in ordinary operating condition are
deductible the year the are preformed