REAL ESTATE PRACTICE EXAM QUESTIONS WITH CORRECT ANSWERS

REAL ESTATE PRACTICE EXAM QUESTIONS WITH CORRECT
ANSWERS



A title was recorded for a parcel of real property vested in the name of Johan Wilson, a
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l, property only in the name of Johan Roberts, a married woman. The discrepancy in the
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l, grantor's name is: -- Answer ✔✔ A defect which may cause a cloud on the title.
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Which contract would be the most difficult for a buyer to obtain financing? -- Answer ✔✔
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l, Land Contract l,




When a broker runs an advertisement, the broker must disclose: -- Answer ✔✔ Name of
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l, the Broker
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Following in-house sales are true, except: -- Answer ✔✔ The listing broker can act as a
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l, buyer's agent only l, l,




The Federal Housing Administration (FHA) was created primarily: -- Answer ✔✔ To
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l, provide insurance for home loans made by approved lender
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A person who wishes to purchase a home using a Cal-Vet program would send his
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l, application to: -- Answer ✔✔ Department of Veterans Affairs l, l, l, l, l, l, l, l,




The item that would appear on the debit side of a buyer's closing statement would be: --
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l, Answer ✔✔ Purchase Price l, l, l,




When dealing with the public, a broker may not: -- Answer ✔✔ Remain silent concerning
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l, material facts about a property known only by himself
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, A buyer relied upon the fraudulent statement of the seller's agent and was damaged. The
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l, seller was unaware of the agent's false statement, and he tried to enforce the agreement.
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l, The buyer: -- Answer ✔✔ Could sue the seller for fraud,
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Could sue the seller's agent for fraud, l, l, l, l, l, l,




Has sufficient grounds for rescission
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(All The Above) l, l,




Lenders know that the lower the loan-to-value ratio, the higher the: -- Answer ✔✔ Equity
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An offer to purchase a real estate could be terminated in all of the following ways, except: --
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l, Answer ✔✔ Failure to communicate notice of revocation before the other party has
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l, communicated his acceptance l, l,




For Federal Income Tax purpose, the capital expenditures for improvements are: -- Answer
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l, ✔✔ Added to the cost basis of the property and depreciated
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A property sold for $150,000 in a county which had established a documentary transfer tax
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l, rate of $.55 for each $500. Of the purchase price of $150,000, only $125,000 was subjected
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l, to tax. Which of the following is nearest to the tax amount that would have to be paid? --
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l, Answer ✔✔ $138 l, l,




$125,000/500= 250 l,




$.55 x 250= $137.5 l, l, l,




A broker is negotiating a 25-year commercial lease at a straight annual rental of $30,000.
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l, The broker is to receive a compensation for negotiating this lease as follows: 7% of the
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l, annual rental for the first year, 5% of the annual rental for the next four years, 3% of the
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l, annual rental for each of the next fifteen years; and 1% of the annual rental for every year
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l, thereafter during the term of the lease. By the end of the 19th year, the broker will have
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l, received a total commission of most nearly: -- Answer ✔✔ $20,700
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