THE CE SHOP PROCTOR FINAL EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
Which type of depreciation is a loss in value due to defects in a structure's design? -
Answer-Functional obsolescence
Which approach to finding value would licensed appraiser Christina probably weigh
most heavily when appraising a three-unit rental property? - Answer-Income
What's a survey? - Answer-A professional, on-site measurement of the lot lines and
dimensions of a property
What's the price at which a willing buyer and a willing seller would strike a deal given
normal market conditions? - Answer-Market value
A real estate licensee must conduct marketing campaigns in a way that ______. -
Answer-Makes the property available to all buyers without limits or restrictions
Which of these is an example of a lot and block description? - Answer-Lot 6 of Block 3
of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of
Deeds
What duties does a buyer agent have to the seller? - Answer-To disclose the agent's
relationship with the buyer
What types of monies received from income-producing properties should be deposited
into an escrow account? - Answer-Prepaid rent and security deposits
When is a title search conducted? - Answer-Before a property is sold, to determine if
there are any defects on the title
Who's responsible for conducting the closing meeting? - Answer-The closing agent
An appraiser is working to find the market rent for a 10-unit apartment building. In order
to compare the subject property to similar properties, she will ______. - Answer-Convert
monthly rental income to annual dollars per room
Three suitability categories help licensees and sellers analyze whether a property
should be sold at auction. These categories are ______. - Answer-Property type,
market conditions, and seller's needs
,Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? -
Answer-The appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
Careful handling of all funds is crucial to the success of a brokerage firm. Of special
importance, however, is handling of ______. - Answer-Escrow funds
Which document provides an estimate of the costs a buyer is likely to pay at
settlement? - Answer-Loan Estimate
Whose consent and agreement are required to conduct a short sale? - Answer-The lien
holder's
Gerald creates a trust to convey his property to his heirs. His friend, Nancy, is placed in
charge of making sure the terms of the trust are carried out. In this example, Nancy is
the ________. - Answer-Trustee
Adella received money for her down payment in the form of a tax credit on her federal
tax return. This tax credit is known as a __________________________. - Answer-
Mortgage credit certificate
Minimizing risk in part means avoiding public networks, unsecure sites, and ______
sites. - Answer-Suspicious
The components that make up a borrower's mortgage payment can best be
remembered using which acronym? - Answer-PITI
Which of the following statements is prohibited under fair housing law? - Answer-Perfect
for a couple without kids
When a lower-quality property is adjacent to a higher-quality property, it can diminish
the value of the higher-quality property. What economic principle is this? - Answer-
Regression
Which of the following is one of your duties as a listing agent? - Answer-Promote your
client's interests throughout the entire transaction.
If a rectangular building were 40 feet by 20 feet, the area would be ______. - Answer-
800 square feet
Which of the following is a true statement about options and option fees? - Answer-An
option fee may be for any amount agreed to by the parties.
, If an endangered species or wetlands exist on a site, which of the following is true? -
Answer-These are both environmental concerns that can directly impact the site's
appraisal value.
Shauna just signed a commercial lease in which her payments increase incrementally
from one period to the next over the period of the lease term. What type of lease is this?
- Answer-Graduated
Which statement best describes the use of a legal description or street address when
completing a real estate contract? - Answer-Legal descriptions are required, because
they provide less ambiguous, and more complete descriptions of properties than street
addresses provide.
Which of the following will an appraiser do first when using the sales comparison
approach? - Answer-Identify features of the subject property that are in demand in the
market.
Identify features of the subject property that are in demand in the market. - Answer-
Equity REITs
Ted wants to estimate the value of a commercial property leased to four retail tenants.
In order to find the GIM he can use for his subject property, what's the minimum number
of comparable properties he should try to find? - Answer-10
Which of the following terms refers to the increase or decrease in land value that occurs
when several parcels are combined into one large plot? - Answer-Plottage
Jackie's seller client admitted to Jackie that the house had previously flooded, but he
doesn't want to include this on the property disclosure form because it might lower his
property value. Jackie's ethical obligation is to _______. - Answer-Treat the other
parties honestly, which means disclosing the history of flooding
Willa quit her corporate job to pursue her dream of becoming a watercolor artist. She
gave up her 4-bedroom house in the suburbs for less expensive accommodations. What
type of buyer is Willa? - Answer-Trade-down
When an ______ is added to a sales contract, it changes the original terms of the
contract. - Answer-Amendment
Which of these items should real estate professionals help first-time buyers and buyers
who have experienced recent credit issues to understand? - Answer-Appropriate
financing
Which of the following is a common problem with a foreclosure property purchase? -
Answer-Damage from the prior owner
QUESTIONS WITH COMPLETE
SOLUTIONS
Which type of depreciation is a loss in value due to defects in a structure's design? -
Answer-Functional obsolescence
Which approach to finding value would licensed appraiser Christina probably weigh
most heavily when appraising a three-unit rental property? - Answer-Income
What's a survey? - Answer-A professional, on-site measurement of the lot lines and
dimensions of a property
What's the price at which a willing buyer and a willing seller would strike a deal given
normal market conditions? - Answer-Market value
A real estate licensee must conduct marketing campaigns in a way that ______. -
Answer-Makes the property available to all buyers without limits or restrictions
Which of these is an example of a lot and block description? - Answer-Lot 6 of Block 3
of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of
Deeds
What duties does a buyer agent have to the seller? - Answer-To disclose the agent's
relationship with the buyer
What types of monies received from income-producing properties should be deposited
into an escrow account? - Answer-Prepaid rent and security deposits
When is a title search conducted? - Answer-Before a property is sold, to determine if
there are any defects on the title
Who's responsible for conducting the closing meeting? - Answer-The closing agent
An appraiser is working to find the market rent for a 10-unit apartment building. In order
to compare the subject property to similar properties, she will ______. - Answer-Convert
monthly rental income to annual dollars per room
Three suitability categories help licensees and sellers analyze whether a property
should be sold at auction. These categories are ______. - Answer-Property type,
market conditions, and seller's needs
,Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? -
Answer-The appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
Careful handling of all funds is crucial to the success of a brokerage firm. Of special
importance, however, is handling of ______. - Answer-Escrow funds
Which document provides an estimate of the costs a buyer is likely to pay at
settlement? - Answer-Loan Estimate
Whose consent and agreement are required to conduct a short sale? - Answer-The lien
holder's
Gerald creates a trust to convey his property to his heirs. His friend, Nancy, is placed in
charge of making sure the terms of the trust are carried out. In this example, Nancy is
the ________. - Answer-Trustee
Adella received money for her down payment in the form of a tax credit on her federal
tax return. This tax credit is known as a __________________________. - Answer-
Mortgage credit certificate
Minimizing risk in part means avoiding public networks, unsecure sites, and ______
sites. - Answer-Suspicious
The components that make up a borrower's mortgage payment can best be
remembered using which acronym? - Answer-PITI
Which of the following statements is prohibited under fair housing law? - Answer-Perfect
for a couple without kids
When a lower-quality property is adjacent to a higher-quality property, it can diminish
the value of the higher-quality property. What economic principle is this? - Answer-
Regression
Which of the following is one of your duties as a listing agent? - Answer-Promote your
client's interests throughout the entire transaction.
If a rectangular building were 40 feet by 20 feet, the area would be ______. - Answer-
800 square feet
Which of the following is a true statement about options and option fees? - Answer-An
option fee may be for any amount agreed to by the parties.
, If an endangered species or wetlands exist on a site, which of the following is true? -
Answer-These are both environmental concerns that can directly impact the site's
appraisal value.
Shauna just signed a commercial lease in which her payments increase incrementally
from one period to the next over the period of the lease term. What type of lease is this?
- Answer-Graduated
Which statement best describes the use of a legal description or street address when
completing a real estate contract? - Answer-Legal descriptions are required, because
they provide less ambiguous, and more complete descriptions of properties than street
addresses provide.
Which of the following will an appraiser do first when using the sales comparison
approach? - Answer-Identify features of the subject property that are in demand in the
market.
Identify features of the subject property that are in demand in the market. - Answer-
Equity REITs
Ted wants to estimate the value of a commercial property leased to four retail tenants.
In order to find the GIM he can use for his subject property, what's the minimum number
of comparable properties he should try to find? - Answer-10
Which of the following terms refers to the increase or decrease in land value that occurs
when several parcels are combined into one large plot? - Answer-Plottage
Jackie's seller client admitted to Jackie that the house had previously flooded, but he
doesn't want to include this on the property disclosure form because it might lower his
property value. Jackie's ethical obligation is to _______. - Answer-Treat the other
parties honestly, which means disclosing the history of flooding
Willa quit her corporate job to pursue her dream of becoming a watercolor artist. She
gave up her 4-bedroom house in the suburbs for less expensive accommodations. What
type of buyer is Willa? - Answer-Trade-down
When an ______ is added to a sales contract, it changes the original terms of the
contract. - Answer-Amendment
Which of these items should real estate professionals help first-time buyers and buyers
who have experienced recent credit issues to understand? - Answer-Appropriate
financing
Which of the following is a common problem with a foreclosure property purchase? -
Answer-Damage from the prior owner
