2025 REAL ESTATE LICENSE REVIEW
QUESTIONS WITH VERIFIED ANSWERS
ALREADY GRADED A+ BY EXPERTS
A property sold for $60,000 and was financed bya 80% ltv mortgage. On the buyer's portion of
the settlement statement the 2 % loan origination fee would be shown as - CORRECT
ANSWER>>>>a debit to the buyer
How does the buyer's earnest money deposit appear on the closing settlement statement? -
CORRECT ANSWER>>>>as a credit to the buyer
In a state where real property taxes are paid a year in arrears, how would the accrued taxes that
were not due and payable appear on the closing settlement statement? - CORRECT
ANSWER>>>>as a prorated credit to the buyer
A seller's existing loan is assumed at the closing. On the buyer's settlement statement, this item
will appear as - CORRECT ANSWER>>>>a credit to the buyer
Which appraisal approach to value is usually employed to value vacant land? - CORRECT
ANSWER>>>>Market data approach
What is an appraisal? - CORRECT ANSWER>>>>An impartial estimate or opinion of value
Probably the most important factor contributing to property's value is: - CORRECT
ANSWER>>>>the location of the property
Which of the following correctly states the principle of substitution? - CORRECT
ANSWER>>>>When choices offer essentially the same amenities, the buyer will select the one
with the lowest price.
In making adjustments between a subject property and a comparable, the appraiser - CORRECT
ANSWER>>>>subtracts from a superior comparable to adjust it to the subject.
An appraiser would apply accrued depreciation in the - CORRECT ANSWER>>>>cost
approach
which term relates to the process of estimating the value of income producing real estate? -
CORRECT ANSWER>>>>capitalization
What appraisal approach is most often used when a broker does a market analysis for a property
owner. - CORRECT ANSWER>>>>market value approach
Reconciliation is an appraisal term used to describe: - CORRECT ANSWER>>>>the appraiser's
analysis and comparison of the results of each appraisal approach.
,Within a neighborhood, the principle of "conformity" would be violated by - CORRECT
ANSWER>>>>underimprovement or overimprovement of a property
What approach is best used in appraising a now vacant school house? - CORRECT
ANSWER>>>>the cost or summation approach
When an appraiser makes adjustments between the subject property and the comparables, it is
appropriate to - CORRECT ANSWER>>>>add to the value of the comparable property when
the subject property has superior features
The purchaser who decides to buy income property will calculate the difference between future
income and expenses to determine the: - CORRECT ANSWER>>>>net income
The appraisal concept of "highest and best use" would be best indicated by: - CORRECT
ANSWER>>>>the maximum legal use of the subject property at the present time
Physical depreciation of a property is most frequently associated with a - CORRECT
ANSWER>>>>broken kitchen faucet
generally an appraiser gives the finished appraisal only to - CORRECT ANSWER>>>>the
person or institution who commissioned the appraisal
the basis on which taxable gain is computed is the - CORRECT ANSWER>>>>original cost
plus any improvements increasing the property value
Under provisions of the federal income tax law, tax payers may - CORRECT
ANSWER>>>>deduct property taxes paid on a primary residence
The $250,000/$500,000 exemption for capital gains applies only to - CORRECT
ANSWER>>>>principal residences
Regarding a personal residence, which of the following federal tax deductions is currently
allowed? - CORRECT ANSWER>>>>certain mortgage interest
The present loan balance is equal to 60% of the property's appraised value. If the property is
encumbered by a term note with an interest rate of 6% that calls for semi-annual interest
payments of $360, what is the full appraised value of hte property? - CORRECT
ANSWER>>>>$20,000
A homeowner who wishes coverage greater than that provided by a basic insurance policy may
choose a broad form policy for coverage of which of the following additional perils? -
CORRECT ANSWER>>>>Falling objects
The accrued interest on an assumed mortgage loan is entered on the closing statement as a -
CORRECT ANSWER>>>>debit to the seller and a credit to the buyer
, A lot containing 3.5 acres is to be divided into building lots of 100 feet by 200 feet. Of the total
land area, 15 % must be reserved for roads. How many full size lots will be obtained? -
CORRECT ANSWER>>>>six
a 75% LTV bridge loan on a property valued for loan purposes at $28,000 requires a $140 per
month 'interest only' payment. What is the loan interest rate? - CORRECT ANSWER>>>>8%
An income property produces a monthly net income of $1,500 and is valued at $430,000. What
is the approximate rate of return? - CORRECT ANSWER>>>>4.2%
This year, the owner of a 110 - acre apple orchard earned a net profit of $13,000. In the event
he/she decides to sell the property and invest the proceeds at 5%, what must be the selling price
per acre to match the earnings from the orchard? - CORRECT ANSWER>>>>$2,364
Prorations of items in a real estate closing are made usually as of the date of the - CORRECT
ANSWER>>>>title transfer
a mortgage balance is currently $3,627.14 and the amount of interest applied to the loan this
month is $25.75. What is the annual interest rate? - CORRECT ANSWER>>>>8.5%
A home of 1545 square feet sells for $62,500. What is the price per square foot? - CORRECT
ANSWER>>>>$40.45
What is the Internal Revenue Service's Form 1099-S? - CORRECT ANSWER>>>>A form that
summarizes and reports transaction data from a closing.
A home has a market value of $72,500 and an assessed tax value of $59,450. The community tax
levy is 1.33%. What will be the monthly payment for taxes? - CORRECT ANSWER>>>>$65.89
A rectangular lot has 90' frontage and is 140' deep. The building setbacks are 15' front, 30' rear.
and 10' on each side. If a three-story office building was constructed on the lot, what would be
the maximum square footage contained in the building? - CORRECT ANSWER>>>>19,950
square feet
If a tract of land that measures 1,320 feet by 1,980 feet is sold for $2,000 per acre, what is the
total selling price? - CORRECT ANSWER>>>>$120,000
From which of the following investments would you derive the greatest income? - CORRECT
ANSWER>>>>$50,000 at 1% simple interest for nine months
If a broker is to receive a fee of 7% of the actual sale price of a house, how much less will be
earned if the seller reduces the price of $63,000 by $5,000 - CORRECT ANSWER>>>>$350
The practice of channeling families with children away from other buildings into an apartment
building where other families with children reside is - CORRECT ANSWER>>>>steering
QUESTIONS WITH VERIFIED ANSWERS
ALREADY GRADED A+ BY EXPERTS
A property sold for $60,000 and was financed bya 80% ltv mortgage. On the buyer's portion of
the settlement statement the 2 % loan origination fee would be shown as - CORRECT
ANSWER>>>>a debit to the buyer
How does the buyer's earnest money deposit appear on the closing settlement statement? -
CORRECT ANSWER>>>>as a credit to the buyer
In a state where real property taxes are paid a year in arrears, how would the accrued taxes that
were not due and payable appear on the closing settlement statement? - CORRECT
ANSWER>>>>as a prorated credit to the buyer
A seller's existing loan is assumed at the closing. On the buyer's settlement statement, this item
will appear as - CORRECT ANSWER>>>>a credit to the buyer
Which appraisal approach to value is usually employed to value vacant land? - CORRECT
ANSWER>>>>Market data approach
What is an appraisal? - CORRECT ANSWER>>>>An impartial estimate or opinion of value
Probably the most important factor contributing to property's value is: - CORRECT
ANSWER>>>>the location of the property
Which of the following correctly states the principle of substitution? - CORRECT
ANSWER>>>>When choices offer essentially the same amenities, the buyer will select the one
with the lowest price.
In making adjustments between a subject property and a comparable, the appraiser - CORRECT
ANSWER>>>>subtracts from a superior comparable to adjust it to the subject.
An appraiser would apply accrued depreciation in the - CORRECT ANSWER>>>>cost
approach
which term relates to the process of estimating the value of income producing real estate? -
CORRECT ANSWER>>>>capitalization
What appraisal approach is most often used when a broker does a market analysis for a property
owner. - CORRECT ANSWER>>>>market value approach
Reconciliation is an appraisal term used to describe: - CORRECT ANSWER>>>>the appraiser's
analysis and comparison of the results of each appraisal approach.
,Within a neighborhood, the principle of "conformity" would be violated by - CORRECT
ANSWER>>>>underimprovement or overimprovement of a property
What approach is best used in appraising a now vacant school house? - CORRECT
ANSWER>>>>the cost or summation approach
When an appraiser makes adjustments between the subject property and the comparables, it is
appropriate to - CORRECT ANSWER>>>>add to the value of the comparable property when
the subject property has superior features
The purchaser who decides to buy income property will calculate the difference between future
income and expenses to determine the: - CORRECT ANSWER>>>>net income
The appraisal concept of "highest and best use" would be best indicated by: - CORRECT
ANSWER>>>>the maximum legal use of the subject property at the present time
Physical depreciation of a property is most frequently associated with a - CORRECT
ANSWER>>>>broken kitchen faucet
generally an appraiser gives the finished appraisal only to - CORRECT ANSWER>>>>the
person or institution who commissioned the appraisal
the basis on which taxable gain is computed is the - CORRECT ANSWER>>>>original cost
plus any improvements increasing the property value
Under provisions of the federal income tax law, tax payers may - CORRECT
ANSWER>>>>deduct property taxes paid on a primary residence
The $250,000/$500,000 exemption for capital gains applies only to - CORRECT
ANSWER>>>>principal residences
Regarding a personal residence, which of the following federal tax deductions is currently
allowed? - CORRECT ANSWER>>>>certain mortgage interest
The present loan balance is equal to 60% of the property's appraised value. If the property is
encumbered by a term note with an interest rate of 6% that calls for semi-annual interest
payments of $360, what is the full appraised value of hte property? - CORRECT
ANSWER>>>>$20,000
A homeowner who wishes coverage greater than that provided by a basic insurance policy may
choose a broad form policy for coverage of which of the following additional perils? -
CORRECT ANSWER>>>>Falling objects
The accrued interest on an assumed mortgage loan is entered on the closing statement as a -
CORRECT ANSWER>>>>debit to the seller and a credit to the buyer
, A lot containing 3.5 acres is to be divided into building lots of 100 feet by 200 feet. Of the total
land area, 15 % must be reserved for roads. How many full size lots will be obtained? -
CORRECT ANSWER>>>>six
a 75% LTV bridge loan on a property valued for loan purposes at $28,000 requires a $140 per
month 'interest only' payment. What is the loan interest rate? - CORRECT ANSWER>>>>8%
An income property produces a monthly net income of $1,500 and is valued at $430,000. What
is the approximate rate of return? - CORRECT ANSWER>>>>4.2%
This year, the owner of a 110 - acre apple orchard earned a net profit of $13,000. In the event
he/she decides to sell the property and invest the proceeds at 5%, what must be the selling price
per acre to match the earnings from the orchard? - CORRECT ANSWER>>>>$2,364
Prorations of items in a real estate closing are made usually as of the date of the - CORRECT
ANSWER>>>>title transfer
a mortgage balance is currently $3,627.14 and the amount of interest applied to the loan this
month is $25.75. What is the annual interest rate? - CORRECT ANSWER>>>>8.5%
A home of 1545 square feet sells for $62,500. What is the price per square foot? - CORRECT
ANSWER>>>>$40.45
What is the Internal Revenue Service's Form 1099-S? - CORRECT ANSWER>>>>A form that
summarizes and reports transaction data from a closing.
A home has a market value of $72,500 and an assessed tax value of $59,450. The community tax
levy is 1.33%. What will be the monthly payment for taxes? - CORRECT ANSWER>>>>$65.89
A rectangular lot has 90' frontage and is 140' deep. The building setbacks are 15' front, 30' rear.
and 10' on each side. If a three-story office building was constructed on the lot, what would be
the maximum square footage contained in the building? - CORRECT ANSWER>>>>19,950
square feet
If a tract of land that measures 1,320 feet by 1,980 feet is sold for $2,000 per acre, what is the
total selling price? - CORRECT ANSWER>>>>$120,000
From which of the following investments would you derive the greatest income? - CORRECT
ANSWER>>>>$50,000 at 1% simple interest for nine months
If a broker is to receive a fee of 7% of the actual sale price of a house, how much less will be
earned if the seller reduces the price of $63,000 by $5,000 - CORRECT ANSWER>>>>$350
The practice of channeling families with children away from other buildings into an apartment
building where other families with children reside is - CORRECT ANSWER>>>>steering
