REA 380 REAL ESTATE FINAL EXAM PRATICE
QUESTIONS AND ANSWERS 2024-2025
During a 1031 exchange an investor looking to transfer and hold their sales proceeds before purchasing
a new property would most likely use which type of agent?
Facilitator
A condo was purchased in Las Vegas in a foreclosure auction for $190,000. The investor purchaser spent
$15,000 in rehab costs and at closing has $6,500. His net profit was $31,500. What is the beginning basis
for this investor for tax reporting purposes?
190000
By leveraging her cash, investor Mary Poppins and her family have what options made available to
them, that they otherwise would not have had:
Buying larger investment properties using less money by borrowing
A form of passive income would be which of the following:
Holding rental properties
The current waiting time to purchase a home after a foreclosure using conventional financing is how
long:
7 years
,The State of Arizona has a legal life estate homestead exemption. What would be the homestead
protection for a married couples vacation home:
0, none on vacation home
In Arizona; It is allowed for the broker to place how much of their own money in the general operating
fund account, as long as it is recorded and managed as such?
3000
right before the close of escrow of the property took place, the agent took a portion of the earnest
money as part of the commission owed to him
conversion
What should a broker or agent do when an offer is presented to them without any form of earnest
money:
Present the offer to the seller and let the seller choose what to do
A sellers CLUE report would show what:
insurance claims
A real estate brokerage carries what type of insurance:
E&O
Bob Dole is the remainderman in an estate set up by his father for the life of his mother. What must
happen for Bob Dole to obtain the property
, the life tenant must pass
Before the close of escrow, both buyer and seller will receive what from escrow for review before they
both sign it:
settlement statement
At some point in the past, the grantor added a condition on the deed, which was recorded. What could
be the result:
defeasible fee
What type of estates are created by law:
legal life estates
A seller you are representing asks what they are going to owe since they are Canadians and they
understand FIRPTA. What is the appropriate response:
That only someone qualified in tax related issues can answer this
Under which rule are kickbacks in a settlement deemed illegal:
RESPA
Your buyer is asking very specific questions about their home search and the possible proximity to sex
offenders since they have children. Your best advice to them would be:
consult the appropriate source of information regarding that topic
QUESTIONS AND ANSWERS 2024-2025
During a 1031 exchange an investor looking to transfer and hold their sales proceeds before purchasing
a new property would most likely use which type of agent?
Facilitator
A condo was purchased in Las Vegas in a foreclosure auction for $190,000. The investor purchaser spent
$15,000 in rehab costs and at closing has $6,500. His net profit was $31,500. What is the beginning basis
for this investor for tax reporting purposes?
190000
By leveraging her cash, investor Mary Poppins and her family have what options made available to
them, that they otherwise would not have had:
Buying larger investment properties using less money by borrowing
A form of passive income would be which of the following:
Holding rental properties
The current waiting time to purchase a home after a foreclosure using conventional financing is how
long:
7 years
,The State of Arizona has a legal life estate homestead exemption. What would be the homestead
protection for a married couples vacation home:
0, none on vacation home
In Arizona; It is allowed for the broker to place how much of their own money in the general operating
fund account, as long as it is recorded and managed as such?
3000
right before the close of escrow of the property took place, the agent took a portion of the earnest
money as part of the commission owed to him
conversion
What should a broker or agent do when an offer is presented to them without any form of earnest
money:
Present the offer to the seller and let the seller choose what to do
A sellers CLUE report would show what:
insurance claims
A real estate brokerage carries what type of insurance:
E&O
Bob Dole is the remainderman in an estate set up by his father for the life of his mother. What must
happen for Bob Dole to obtain the property
, the life tenant must pass
Before the close of escrow, both buyer and seller will receive what from escrow for review before they
both sign it:
settlement statement
At some point in the past, the grantor added a condition on the deed, which was recorded. What could
be the result:
defeasible fee
What type of estates are created by law:
legal life estates
A seller you are representing asks what they are going to owe since they are Canadians and they
understand FIRPTA. What is the appropriate response:
That only someone qualified in tax related issues can answer this
Under which rule are kickbacks in a settlement deemed illegal:
RESPA
Your buyer is asking very specific questions about their home search and the possible proximity to sex
offenders since they have children. Your best advice to them would be:
consult the appropriate source of information regarding that topic
