CT REAL ESTATE CHAPTERS 1-10
PRACTICE EXAM QUESTIONS WITH
VERIFIED ANSWERS
Tenancy with survivorship means
a. the tenancy interest will be inherited.
b. the tenant's heirs are survivors.
c. the tenancy interest will pass to the surviving tenant(s) upon the death of a tenant.
d. this is not a legal tenancy. - ANSWER-c. the tenancy interest will pass to the
surviving tenant(s) upon the death of a tenant.
Because a couple no longer needs their large house, they decide to sell it and move
into a cooperative apartment building. In a cooperative, they will
a. own their individual apartment.
b. own the common elements.
c. receive a 20-year lease to their apartment.
d. become shareholders in a corporation. - ANSWER-d. become shareholders in a
corporation.
Which of the following is TRUE of condominium ownership?
a. An owner's interest in the limited common elements cannot be sold separately.
b. The individual units cannot be mortgaged.
c. The corporation pays the real estate taxes.
d. The ownership cannot be willed. - ANSWER-a. An ownser's interest in the limited
common elements cannot be sold separately.
A cooperative obtains the funds necessary to cover ongoing operating expenses and
mortgage payments by
a. charging rent to each of the shareholders.
b. selling the common elements.
c. charging special assessments.
d. collecting regular assessments from shareholders. - ANSWER-d. Collecting
regular assessments from shareholders.
27. The primary survey line running north and south in any area described by the
rectangular survey system is its
a. township line.
b. base line.
c. principal meridian.
d. range line. - ANSWER-c. principal meridian.
A recorded subdivision plat is used in the
a. geodetic survey system.
b. lot and block system.
c. rectangular survey system.
d. metes and bounds system. - ANSWER-b. lot and block system.
,An FHA-insured loan in the amount of $157,500 at 4% for 30 years closed on July
17. The first monthly payment is due on September 1. Using a 360-day year and
assuming that interest is being paid for the day of closing, what was the amount of
the interest adjustment the buyer had to make at the closing?
a. $262.50
b. $245.00
c. $24.06
d. $0.00 - ANSWER-b. $245.00
At the closing of a real estate transaction, prepaid homeowners association fees are
typically a
a. credit to the buyer, debit to the seller.
b. debit to the buyer, credit to the seller.
c. credit to the seller only.
d. debit to the seller only. - ANSWER-b. debit to the buyer, credit to the seller.
A broker's office policy is that a sales associate's share of a commission is 65%.
What is the sales associate's compensation if the sales price of a property is
$195,000, the broker is entitled to a 5.5% commission, and there is no cooperating
broker?
a. $697.13
b. $6,971.25
c. $8,872.50
d. $69,712.50 - ANSWER-b. $6,971.25
An investment property now worth $180,000 was purchased seven years ago for
$142,000. At the time of the purchase, the land was valued at $18,000. Using a 39-
year life for straight-line depreciation purposes, the present book value of the
property is
a. $95,071.35.
b. $113,071.00.
c. $119,743.58.
d. $126,000.50. - ANSWER-c. $119,743.58
An owner of a ranch enters into a sale-and-leaseback agreement with a buyer.
Which statement is TRUE of this arrangement?
a. The buyer is the lessor.
b. The owner retains title to the ranch.
c. The buyer receives possession of the property.
d. The owner is the lessor. - ANSWER-a. The buyer is the lessor.
A real estate broker acting as a property manager leased a building for 10 years at
an annual rent of $48,000. The will receive a commission of 7.5% for the first five
years, 5% for the next three years, and 3.5% for the final two years. What will the
broker's gross income be from this commission over the life of the lease?
a. $18,000
b. $25,200
c. $28,560
d. $30,000 - ANSWER-c. $28,560
, If the quarterly interest on a loan at 5.5% is $450, the principal amount of the loan is
a. $8,181.
b. $9.900.
c. $16,636.
d. $32,727. - ANSWER-d. $32,727.
If a mortgage loan is 70% of the appraised value of a house and the interest rate of
5% amounts to $500 for the first month, the appraised value of the house is
a. $14,285.
b. $120,000.
c. $165,428.
d. $171,428. - ANSWER-d. $171,428.
If the borrower paid $189.06 interest last month on a $27,500 loan, what is the
interest rate?
a. 7%
b. 7 3/4%
c. 8 1⁄4%
d. 8 1⁄2% - ANSWER-c. 8 1/4%
Which of the following is an example of involuntary alienation?
a. Selling a property to pay off debts
b. Having a piece of land sold for delinquent taxes
c. Giving a piece of land to the park district.
d. Letting another person plant crops on an unused portion of a piece of land -
ANSWER-b. Having a piece of land sold for delinquent taxes
Grantee is to a deed as devisee is to a
a. will.
b. trust.
c. estate.
d. leasehold. - ANSWER-a. will.
What will happen to real estate when its deceased owner did NOT write a will and no
heirs can be located?
a. The ownership will escheat.
b. The ownership will pass by devise.
c. The ownership will revert to the previous owner.
d. The courts will seize the ownership. - ANSWER-a. The owndership will escheat.
10. A property owner wishes to net $56,500 from the sale of a vacant lot. After
paying closing costs of $2,285 and a 7% commission, what must the selling price be
(rounded to the nearest dollar)?
a. $60,455
b. $60,753
c. $62,400
d. $63,210 - ANSWER-d. $63.210.
A house was listed for sale at $184,900. The seller received $171,000 after paying
the broker a 5% commission. What was the selling price of the property (rounded to
the nearest dollar)?
PRACTICE EXAM QUESTIONS WITH
VERIFIED ANSWERS
Tenancy with survivorship means
a. the tenancy interest will be inherited.
b. the tenant's heirs are survivors.
c. the tenancy interest will pass to the surviving tenant(s) upon the death of a tenant.
d. this is not a legal tenancy. - ANSWER-c. the tenancy interest will pass to the
surviving tenant(s) upon the death of a tenant.
Because a couple no longer needs their large house, they decide to sell it and move
into a cooperative apartment building. In a cooperative, they will
a. own their individual apartment.
b. own the common elements.
c. receive a 20-year lease to their apartment.
d. become shareholders in a corporation. - ANSWER-d. become shareholders in a
corporation.
Which of the following is TRUE of condominium ownership?
a. An owner's interest in the limited common elements cannot be sold separately.
b. The individual units cannot be mortgaged.
c. The corporation pays the real estate taxes.
d. The ownership cannot be willed. - ANSWER-a. An ownser's interest in the limited
common elements cannot be sold separately.
A cooperative obtains the funds necessary to cover ongoing operating expenses and
mortgage payments by
a. charging rent to each of the shareholders.
b. selling the common elements.
c. charging special assessments.
d. collecting regular assessments from shareholders. - ANSWER-d. Collecting
regular assessments from shareholders.
27. The primary survey line running north and south in any area described by the
rectangular survey system is its
a. township line.
b. base line.
c. principal meridian.
d. range line. - ANSWER-c. principal meridian.
A recorded subdivision plat is used in the
a. geodetic survey system.
b. lot and block system.
c. rectangular survey system.
d. metes and bounds system. - ANSWER-b. lot and block system.
,An FHA-insured loan in the amount of $157,500 at 4% for 30 years closed on July
17. The first monthly payment is due on September 1. Using a 360-day year and
assuming that interest is being paid for the day of closing, what was the amount of
the interest adjustment the buyer had to make at the closing?
a. $262.50
b. $245.00
c. $24.06
d. $0.00 - ANSWER-b. $245.00
At the closing of a real estate transaction, prepaid homeowners association fees are
typically a
a. credit to the buyer, debit to the seller.
b. debit to the buyer, credit to the seller.
c. credit to the seller only.
d. debit to the seller only. - ANSWER-b. debit to the buyer, credit to the seller.
A broker's office policy is that a sales associate's share of a commission is 65%.
What is the sales associate's compensation if the sales price of a property is
$195,000, the broker is entitled to a 5.5% commission, and there is no cooperating
broker?
a. $697.13
b. $6,971.25
c. $8,872.50
d. $69,712.50 - ANSWER-b. $6,971.25
An investment property now worth $180,000 was purchased seven years ago for
$142,000. At the time of the purchase, the land was valued at $18,000. Using a 39-
year life for straight-line depreciation purposes, the present book value of the
property is
a. $95,071.35.
b. $113,071.00.
c. $119,743.58.
d. $126,000.50. - ANSWER-c. $119,743.58
An owner of a ranch enters into a sale-and-leaseback agreement with a buyer.
Which statement is TRUE of this arrangement?
a. The buyer is the lessor.
b. The owner retains title to the ranch.
c. The buyer receives possession of the property.
d. The owner is the lessor. - ANSWER-a. The buyer is the lessor.
A real estate broker acting as a property manager leased a building for 10 years at
an annual rent of $48,000. The will receive a commission of 7.5% for the first five
years, 5% for the next three years, and 3.5% for the final two years. What will the
broker's gross income be from this commission over the life of the lease?
a. $18,000
b. $25,200
c. $28,560
d. $30,000 - ANSWER-c. $28,560
, If the quarterly interest on a loan at 5.5% is $450, the principal amount of the loan is
a. $8,181.
b. $9.900.
c. $16,636.
d. $32,727. - ANSWER-d. $32,727.
If a mortgage loan is 70% of the appraised value of a house and the interest rate of
5% amounts to $500 for the first month, the appraised value of the house is
a. $14,285.
b. $120,000.
c. $165,428.
d. $171,428. - ANSWER-d. $171,428.
If the borrower paid $189.06 interest last month on a $27,500 loan, what is the
interest rate?
a. 7%
b. 7 3/4%
c. 8 1⁄4%
d. 8 1⁄2% - ANSWER-c. 8 1/4%
Which of the following is an example of involuntary alienation?
a. Selling a property to pay off debts
b. Having a piece of land sold for delinquent taxes
c. Giving a piece of land to the park district.
d. Letting another person plant crops on an unused portion of a piece of land -
ANSWER-b. Having a piece of land sold for delinquent taxes
Grantee is to a deed as devisee is to a
a. will.
b. trust.
c. estate.
d. leasehold. - ANSWER-a. will.
What will happen to real estate when its deceased owner did NOT write a will and no
heirs can be located?
a. The ownership will escheat.
b. The ownership will pass by devise.
c. The ownership will revert to the previous owner.
d. The courts will seize the ownership. - ANSWER-a. The owndership will escheat.
10. A property owner wishes to net $56,500 from the sale of a vacant lot. After
paying closing costs of $2,285 and a 7% commission, what must the selling price be
(rounded to the nearest dollar)?
a. $60,455
b. $60,753
c. $62,400
d. $63,210 - ANSWER-d. $63.210.
A house was listed for sale at $184,900. The seller received $171,000 after paying
the broker a 5% commission. What was the selling price of the property (rounded to
the nearest dollar)?
