Kansas Real Estate Test
An owner of a residential home believed the property might contain lead-based paint. If
the seller wanted to sell the property, which of the following statements would be true? -
ANSWER-The seller would have to disclose this to any potential purchaser
A bathroom inside a home was deemed to be too airtight. This might lead to problems
concerning: - ANSWER-Mold
Under the 1986 Amendment Act under CERCLA, who is responsible for an
environmental violation? - ANSWER-The current property owner
According to the 1988 Amendments to the Federal Fair Housing Act, which of the
following persons would be protected or covered? - ANSWER-A person who has
HIV/AIDS
Under fair housing laws, a handicap would best be described as a person: - ANSWER-
With a mental disability that impairs one of life's major functions
Under HUD guidelines, when can a lender obtain a credit report regarding a borrower
applying for a home loan? - ANSWER-If it is part of a standardized loan application form
When HUD initially tries to bring parties together to resolve a fair housing complain, this
is called: - ANSWER-a conciliation period
What is the purpose of a broker preparing a closing statement for the buyer and seller at
closing? - ANSWER-To provide the buyer and seller with an accounting of all funds
related to the transaction
A person owned a property next to a stream. The owner's rights to use the stream are
referred to as: - ANSWER-Riparian
Which of the following would best describe the term equity of redemption? - ANSWER-
The right of a debtor to receive property back by paying the debts and any other related
costs.
A seller and buyer agreed on the sale and purchase of a house. As part of the
agreement, the buyer was to take over liability for the seller's existing loan as well as the
payments. This type of arrangement would be called a(n): - ANSWER-loan assumption
In deciding on whether to make a residential home loan, a lender would normally
consider the borrower's - ANSWER-debt to income ratio
, A property sold for $200,000 with an 80% loan to value ratio. The lender charged 1
discount point in connection with the loan. What was the amount for the discount
points? - ANSWER-$1,600
A buyer is inquiring as to what the principal and interest payment will be on a property
that is being purchased. Where would be the best place for the buyer to obtain this
information? - ANSWER-Look on the Closing Disclosure (CD)
A seller and buyer agreed on the sale and purchase of a piece of real estate with
closing to take place in 30 days. Prior to closing, the lender informed the buyer that the
APR was going to change by 0.3%. Which of the following statements would be true
regarding this situation under TRID guidelines? - ANSWER-A revised Closing
Disclosure would need to be issued regarding the change in APR
A builder obtains a blanket mortgage to build homes in a new subdivision. The builder
wants to sell off just one of the newly built homes. Regarding the sale of the one
property, which of the following would be outside the parameters of the blanket
mortgage? - ANSWER-The one property can be released from the blanket mortgage if a
set amount of money is paid down on the loan
Which of the following would be an example of wetlands? - ANSWER-Mossy vegetation
in a field
Which of the following might lead to contamination of ground water where a property
contained an underground storage tank? - ANSWER-Overfills and spills
An agent does not show a minority couple homes in a predominantly white area. This is
an example of: - ANSWER-Steering
CERCLA (the Comprehensive Environmental Response, Compensation and Liability
Act) relates to which of the following entities? - ANSWER-EPA
A broker abandons a listing. What should the seller do in order to list the property with a
new broker? - ANSWER-Notify the existing broker of cancellation of the listing getting
agreement of all parties
A real estate licensee sold a commercial building to a buyer client. What type of
insurance should the agent recommend the buyer obtain regarding the property? -
ANSWER-Hazard
What is the best way for a real estate brokerage to minimize liability regarding real
estate transactions? - ANSWER-Purchase errors and omissions insurance
An owner of a residential home believed the property might contain lead-based paint. If
the seller wanted to sell the property, which of the following statements would be true? -
ANSWER-The seller would have to disclose this to any potential purchaser
A bathroom inside a home was deemed to be too airtight. This might lead to problems
concerning: - ANSWER-Mold
Under the 1986 Amendment Act under CERCLA, who is responsible for an
environmental violation? - ANSWER-The current property owner
According to the 1988 Amendments to the Federal Fair Housing Act, which of the
following persons would be protected or covered? - ANSWER-A person who has
HIV/AIDS
Under fair housing laws, a handicap would best be described as a person: - ANSWER-
With a mental disability that impairs one of life's major functions
Under HUD guidelines, when can a lender obtain a credit report regarding a borrower
applying for a home loan? - ANSWER-If it is part of a standardized loan application form
When HUD initially tries to bring parties together to resolve a fair housing complain, this
is called: - ANSWER-a conciliation period
What is the purpose of a broker preparing a closing statement for the buyer and seller at
closing? - ANSWER-To provide the buyer and seller with an accounting of all funds
related to the transaction
A person owned a property next to a stream. The owner's rights to use the stream are
referred to as: - ANSWER-Riparian
Which of the following would best describe the term equity of redemption? - ANSWER-
The right of a debtor to receive property back by paying the debts and any other related
costs.
A seller and buyer agreed on the sale and purchase of a house. As part of the
agreement, the buyer was to take over liability for the seller's existing loan as well as the
payments. This type of arrangement would be called a(n): - ANSWER-loan assumption
In deciding on whether to make a residential home loan, a lender would normally
consider the borrower's - ANSWER-debt to income ratio
, A property sold for $200,000 with an 80% loan to value ratio. The lender charged 1
discount point in connection with the loan. What was the amount for the discount
points? - ANSWER-$1,600
A buyer is inquiring as to what the principal and interest payment will be on a property
that is being purchased. Where would be the best place for the buyer to obtain this
information? - ANSWER-Look on the Closing Disclosure (CD)
A seller and buyer agreed on the sale and purchase of a piece of real estate with
closing to take place in 30 days. Prior to closing, the lender informed the buyer that the
APR was going to change by 0.3%. Which of the following statements would be true
regarding this situation under TRID guidelines? - ANSWER-A revised Closing
Disclosure would need to be issued regarding the change in APR
A builder obtains a blanket mortgage to build homes in a new subdivision. The builder
wants to sell off just one of the newly built homes. Regarding the sale of the one
property, which of the following would be outside the parameters of the blanket
mortgage? - ANSWER-The one property can be released from the blanket mortgage if a
set amount of money is paid down on the loan
Which of the following would be an example of wetlands? - ANSWER-Mossy vegetation
in a field
Which of the following might lead to contamination of ground water where a property
contained an underground storage tank? - ANSWER-Overfills and spills
An agent does not show a minority couple homes in a predominantly white area. This is
an example of: - ANSWER-Steering
CERCLA (the Comprehensive Environmental Response, Compensation and Liability
Act) relates to which of the following entities? - ANSWER-EPA
A broker abandons a listing. What should the seller do in order to list the property with a
new broker? - ANSWER-Notify the existing broker of cancellation of the listing getting
agreement of all parties
A real estate licensee sold a commercial building to a buyer client. What type of
insurance should the agent recommend the buyer obtain regarding the property? -
ANSWER-Hazard
What is the best way for a real estate brokerage to minimize liability regarding real
estate transactions? - ANSWER-Purchase errors and omissions insurance
