CE Shop Exam Questions
with Correct Answers
Update
Lenders will require which type of fund for taxes and insurance? Balloon fund
Emergency fund
Mortgage fund
Reserve fund - Answer -✔✔Reserve fund
Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh,
a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but
Mark made the loan because he was able to arrange for a guarantee from ______.
Farmer Mac
The Farm Credit System
The Farm Service Agency
The Federal Agricultural Housing Authority - Answer -✔✔The Farm Service Agency
When a developer selling timeshare units receives earnest money deposits or down
payments, what is the developer required to do with that money?
Forward the money to the timeshare owner's association
Hold the money in the developer's escrow account for no more than three days
Hold the money in the developer's escrow account through the buyer's rescission period
Maintain the money in a trust fund account that will be used for maintenance of the
timeshare complex - Answer -✔✔Hold the money in the developer's escrow account
through the buyer's rescission period
You represent a seller as a single agent. What's it called when you're simultaneously
working for the buyer's best interests in the transaction without the seller's knowledge?
Broker agency
Dual agency
Split agency
Sub-agency - Answer -✔✔Dual Agency
What happens when a married couple who owns a property as tenants by the entirety
divorce?
Their ownership reduces to tenancy in common or joint tenancy.
Their ownership rights terminate.
The one who records title first gets the property.
They become joint tenants with right of survivorship. - Answer -✔✔Their ownership
reduces to tenancy in common or joint tenancy.
,What's a foreclosure?
A property sale that occurs in less than one week
A sale that fails to receive a high enough bid at auction and then falls to the bank's
ownership
The forced sale of a property due to the borrower defaulting on the mortgage loan
The sale of a property when the market value of the home is less than what is owed,
plus closing costs - Answer -✔✔The forced sale of a property due to the borrower
defaulting on the mortgage loan
Which type of events are generally on a title insurance policy's schedule of exceptions?
Claim from an owner with an unrecorded deed
Claim that was filed on the public record before a title insurance policy's effective date
Liens or claims that aren't on the public record
Mechanic's liens filed prior to a title insurance policy's effective date - Answer -✔✔Liens
or claims that aren't on the public record
Annie and George have been saving and are finally ready to purchase their first home
for their family (including their two toddlers). They want to make an offer on a sweet little
bungalow in a quiet Richmond neighborhood. If the sellers are represented by a real
estate licensee, which situation would be a violation of fair housing laws?
Their offer is rejected because it's too low.
Their offer is rejected because the seller knows the neighbors don't like children.
They rescinded their offer when a house they were previously outbid on became
available again.
They rescinded their offer when their inspection revealed structural issues with the
house. - Answer -✔✔Their offer is rejected because the seller knows the neighbors
don't like children.
The listing agreement is a legally binding contract between ______.
The buyer and seller
The buyer's agent and seller
The listing broker and seller
The seller and lender - Answer -✔✔The listing broker and seller
Real estate, plus all of the interests, benefits, and rights included in ownership, is also
known as ______.
Estate
Land
Personal property
Real property - Answer -✔✔Real property
Who is responsible for testing private wells for water safety?
Property owners
The DEP
The EPA
, The local water utility - Answer -✔✔Property owners
Which of these statements about cooperating with other licensees is true?
Licensees must cooperate with and compensate other licensees, but only when it's their
client's best interest.
Licensees must cooperate with and compensate other licensees, even if it is not in their
client's best interest.
Licensees must cooperate with other licensees, but only if it's in their client's best
interest, and there's no obligation to compensate cooperating licensees.
Licensees must cooperate with other licensees, even if it is not in their client's best
interest. - Answer -✔✔Licensees must cooperate with other licensees, but only if it's in
their client's best interest, and there's no obligation to compensate cooperating
licensees.
Who is responsible for testing community wells?
The DEP
The EPA
The local health department
The local water utility - Answer -✔✔The local health department
The ______makes it illegal to send unsolicited commercial solicitations via fax without
the recipient's permission or an established relationship.
Anti-Telemarketer Act of 2000
CAN-SPAM Act of 2003
Do Not Call Implementation Act of 2003
Junk Fax Prevention Act of 2005 - Answer -✔✔Junk Fax Prevention Act of 2005
Which act gives companies the right to sue a competitor for making deceptive ad
claims?
The Gramm-Bliley Act
The Lanham Act
The Privacy Act
The Truth in Advertising Act - Answer -✔✔The Lanham Act-The Lanham Act is a federal
act that provides companies with the right to sue competitors for making deceptive ad
claims.
What are PCBs?
A chemical compound that occurs naturally in the environment
A substance resulting from the decay of uranium
A substance that grows due to moisture problems
Chemical compounds used in cooling and insulating, mainly in electrical transformers -
Answer -✔✔Chemical compounds used in cooling and insulating, mainly in electrical
transformers
Marnie decided the listing she was representing would be perfect for her family. She
had her brother buy it, and after closing, he sold it to her. What is this an example of?
with Correct Answers
Update
Lenders will require which type of fund for taxes and insurance? Balloon fund
Emergency fund
Mortgage fund
Reserve fund - Answer -✔✔Reserve fund
Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh,
a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but
Mark made the loan because he was able to arrange for a guarantee from ______.
Farmer Mac
The Farm Credit System
The Farm Service Agency
The Federal Agricultural Housing Authority - Answer -✔✔The Farm Service Agency
When a developer selling timeshare units receives earnest money deposits or down
payments, what is the developer required to do with that money?
Forward the money to the timeshare owner's association
Hold the money in the developer's escrow account for no more than three days
Hold the money in the developer's escrow account through the buyer's rescission period
Maintain the money in a trust fund account that will be used for maintenance of the
timeshare complex - Answer -✔✔Hold the money in the developer's escrow account
through the buyer's rescission period
You represent a seller as a single agent. What's it called when you're simultaneously
working for the buyer's best interests in the transaction without the seller's knowledge?
Broker agency
Dual agency
Split agency
Sub-agency - Answer -✔✔Dual Agency
What happens when a married couple who owns a property as tenants by the entirety
divorce?
Their ownership reduces to tenancy in common or joint tenancy.
Their ownership rights terminate.
The one who records title first gets the property.
They become joint tenants with right of survivorship. - Answer -✔✔Their ownership
reduces to tenancy in common or joint tenancy.
,What's a foreclosure?
A property sale that occurs in less than one week
A sale that fails to receive a high enough bid at auction and then falls to the bank's
ownership
The forced sale of a property due to the borrower defaulting on the mortgage loan
The sale of a property when the market value of the home is less than what is owed,
plus closing costs - Answer -✔✔The forced sale of a property due to the borrower
defaulting on the mortgage loan
Which type of events are generally on a title insurance policy's schedule of exceptions?
Claim from an owner with an unrecorded deed
Claim that was filed on the public record before a title insurance policy's effective date
Liens or claims that aren't on the public record
Mechanic's liens filed prior to a title insurance policy's effective date - Answer -✔✔Liens
or claims that aren't on the public record
Annie and George have been saving and are finally ready to purchase their first home
for their family (including their two toddlers). They want to make an offer on a sweet little
bungalow in a quiet Richmond neighborhood. If the sellers are represented by a real
estate licensee, which situation would be a violation of fair housing laws?
Their offer is rejected because it's too low.
Their offer is rejected because the seller knows the neighbors don't like children.
They rescinded their offer when a house they were previously outbid on became
available again.
They rescinded their offer when their inspection revealed structural issues with the
house. - Answer -✔✔Their offer is rejected because the seller knows the neighbors
don't like children.
The listing agreement is a legally binding contract between ______.
The buyer and seller
The buyer's agent and seller
The listing broker and seller
The seller and lender - Answer -✔✔The listing broker and seller
Real estate, plus all of the interests, benefits, and rights included in ownership, is also
known as ______.
Estate
Land
Personal property
Real property - Answer -✔✔Real property
Who is responsible for testing private wells for water safety?
Property owners
The DEP
The EPA
, The local water utility - Answer -✔✔Property owners
Which of these statements about cooperating with other licensees is true?
Licensees must cooperate with and compensate other licensees, but only when it's their
client's best interest.
Licensees must cooperate with and compensate other licensees, even if it is not in their
client's best interest.
Licensees must cooperate with other licensees, but only if it's in their client's best
interest, and there's no obligation to compensate cooperating licensees.
Licensees must cooperate with other licensees, even if it is not in their client's best
interest. - Answer -✔✔Licensees must cooperate with other licensees, but only if it's in
their client's best interest, and there's no obligation to compensate cooperating
licensees.
Who is responsible for testing community wells?
The DEP
The EPA
The local health department
The local water utility - Answer -✔✔The local health department
The ______makes it illegal to send unsolicited commercial solicitations via fax without
the recipient's permission or an established relationship.
Anti-Telemarketer Act of 2000
CAN-SPAM Act of 2003
Do Not Call Implementation Act of 2003
Junk Fax Prevention Act of 2005 - Answer -✔✔Junk Fax Prevention Act of 2005
Which act gives companies the right to sue a competitor for making deceptive ad
claims?
The Gramm-Bliley Act
The Lanham Act
The Privacy Act
The Truth in Advertising Act - Answer -✔✔The Lanham Act-The Lanham Act is a federal
act that provides companies with the right to sue competitors for making deceptive ad
claims.
What are PCBs?
A chemical compound that occurs naturally in the environment
A substance resulting from the decay of uranium
A substance that grows due to moisture problems
Chemical compounds used in cooling and insulating, mainly in electrical transformers -
Answer -✔✔Chemical compounds used in cooling and insulating, mainly in electrical
transformers
Marnie decided the listing she was representing would be perfect for her family. She
had her brother buy it, and after closing, he sold it to her. What is this an example of?
