.Pearson Vue Test Revised 2025
Evaluation Graded A+
Which of the following entities is an example of encroachment?
A.A legal access road that runs across a property from a public road to another property
B.A storage building that extends over the boundary line between the property of the building's owner and an
adjacent property
C.Timber that has been cut down on the property by a tenant for use as firewood
D.A right-of-way for electric and telephone lines that goes across a property
B
A 40-foot easement exists across the front of a property, and a zoning ordinance requires a building setback of 50
feet from the front property line. If the property is offered for sale, a licensee should take which of the following
actions when notifying prospective buyers about this situation?
A.Not inform them of the easement, since the setback includes the easements.
B.Not inform them of the easement, since a title insurance policy will provide protection against any possible
problems.
C.Inform them of the existence of both the easement and the setback line.
D.Have stakes placed on the property to identify both the easement and the setback line.
C
A title insurance policy will protect a buyer from financial losses that are caused by a(n):
A.change in zoning regulations
B.recorded easement to which the policy has taken an exception
C.unrecorded easement to which the policy has taken an exception
D.encumbrance to which the policy has not taken an exception
D
An apartment project with 160 units has 8 vacancies. The vacancy rate is:
A.5 %
B.8 %
C.92%
D.95%
A
Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called:
A.adverse possession
B.foreclosure
C.specific performance
D.forcible detainer
C
If the value of a property is affected by negative forces outside the property which are beyond the control of the
owner, this is referred to as:
A.physical deterioration
B.accrued depreciation
, C.functional obsolescence
D.economic obsolescence
D
When a husband and wife take title to a property as tenants in common, they have elected a form of ownership that
allows for:
A.title in severalty
B.separate life estates
C.the right of survivorship
D.unequal shares of ownership
D
The owners of a house sign a listing agreement and later tell the licensee that the garage roof leaks. If they tell the
licensee not to reveal the roof's condition to any prospective buyers, the licensee MUST:
A.abide by the owners' request
B.advise the sellers that they must disclose the condition of the roof to prospective buyers
C.advise only those prospective buyers who ask about the roof's condition
D.refer all prospective buyers who have questions about the roof's condition to the sellers
B
A CORRECT statement about the Federal National Mortgage Association (FNMA) is that it:
A.purchases certain mortgages originated by lending institutions
B.insures mortgages through insurance fees paid by borrowers
C.provides guarantees to lenders on certain mortgages
D.is the nation's central bank, designed to provide economic stability
A
When private property is abandoned, the state may acquire title to that property under the right of:
A.escheat
B.eminent domain
C.police power
D.taxation
A
The direct sales comparison (market data) approach would be MOST appropriate for establishing the value of a:
A.5-year-old single-family house
B.10-unit apartment building
C.25-year-old church
D.retail commercial property
A lease that provides for periodic increases of rent at regular intervals is called a:
A.graduated lease
B.percentage lease
C.yearly lease
D.long-term lease
A
A CORRECT statement about the owners of a condominium unit and the owners of a cooperative apartment is that
they both:
A.receive an annual real estate tax bill
B.must pay assessments
C.own shares of stock
D.own real property
Evaluation Graded A+
Which of the following entities is an example of encroachment?
A.A legal access road that runs across a property from a public road to another property
B.A storage building that extends over the boundary line between the property of the building's owner and an
adjacent property
C.Timber that has been cut down on the property by a tenant for use as firewood
D.A right-of-way for electric and telephone lines that goes across a property
B
A 40-foot easement exists across the front of a property, and a zoning ordinance requires a building setback of 50
feet from the front property line. If the property is offered for sale, a licensee should take which of the following
actions when notifying prospective buyers about this situation?
A.Not inform them of the easement, since the setback includes the easements.
B.Not inform them of the easement, since a title insurance policy will provide protection against any possible
problems.
C.Inform them of the existence of both the easement and the setback line.
D.Have stakes placed on the property to identify both the easement and the setback line.
C
A title insurance policy will protect a buyer from financial losses that are caused by a(n):
A.change in zoning regulations
B.recorded easement to which the policy has taken an exception
C.unrecorded easement to which the policy has taken an exception
D.encumbrance to which the policy has not taken an exception
D
An apartment project with 160 units has 8 vacancies. The vacancy rate is:
A.5 %
B.8 %
C.92%
D.95%
A
Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called:
A.adverse possession
B.foreclosure
C.specific performance
D.forcible detainer
C
If the value of a property is affected by negative forces outside the property which are beyond the control of the
owner, this is referred to as:
A.physical deterioration
B.accrued depreciation
, C.functional obsolescence
D.economic obsolescence
D
When a husband and wife take title to a property as tenants in common, they have elected a form of ownership that
allows for:
A.title in severalty
B.separate life estates
C.the right of survivorship
D.unequal shares of ownership
D
The owners of a house sign a listing agreement and later tell the licensee that the garage roof leaks. If they tell the
licensee not to reveal the roof's condition to any prospective buyers, the licensee MUST:
A.abide by the owners' request
B.advise the sellers that they must disclose the condition of the roof to prospective buyers
C.advise only those prospective buyers who ask about the roof's condition
D.refer all prospective buyers who have questions about the roof's condition to the sellers
B
A CORRECT statement about the Federal National Mortgage Association (FNMA) is that it:
A.purchases certain mortgages originated by lending institutions
B.insures mortgages through insurance fees paid by borrowers
C.provides guarantees to lenders on certain mortgages
D.is the nation's central bank, designed to provide economic stability
A
When private property is abandoned, the state may acquire title to that property under the right of:
A.escheat
B.eminent domain
C.police power
D.taxation
A
The direct sales comparison (market data) approach would be MOST appropriate for establishing the value of a:
A.5-year-old single-family house
B.10-unit apartment building
C.25-year-old church
D.retail commercial property
A lease that provides for periodic increases of rent at regular intervals is called a:
A.graduated lease
B.percentage lease
C.yearly lease
D.long-term lease
A
A CORRECT statement about the owners of a condominium unit and the owners of a cooperative apartment is that
they both:
A.receive an annual real estate tax bill
B.must pay assessments
C.own shares of stock
D.own real property
