NATIONAL REAL ESTATE EXAM
QUESTIONS COMPLETE WITH
100% CORRECT ANSWERS
\.In most cases, broker compensation, as a percentage of home price,
falls somewhere between: - ANSWERS-5-7%
\.A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal? -
ANSWERS-Yes. Religious organizations which rent to tenants for
residential purposes are exempt from the Fair Housing Act
\.What happens to trade fixtures after a business moves out of a leased
property? - ANSWERS-The tenant removes their trade fixtures and takes
them upon moving out.
\.Suppose that a borrower has a gross monthly income of $3,000 and
wants to qualify for a conforming loan (total debt service ratio of 36%)
with a monthly PITI payment of $800. What is the maximum amount of
additional long-term obligations this borrower may have after PITI? -
ANSWERS-$280
,\.A square bedroom measures 10 feet by 10 feet. What is the area of
the room? - ANSWERS-100 square feet
\.Which of these is an economic characteristic that makes land a
distinctive commodity?* - ANSWERS-situs
\.In a fixed-rate mortgage that is fully amortized, the total amount of
interest to be paid is: - ANSWERS-predetermined
\.Which is exempt from the federal Fair Housing Act? - ANSWERS-
renting a room in a house occupied by the owner
\.The Americans with Disabilities Act applies to: - ANSWERS-privately
owned or government-owned public accommodations
\.Condemnation is the act of seizing private property from citizens.
What gives the government the right to do this? - ANSWERS-eminent
domain
\.The PHYSICAL characteristics of land are that land is indestructible,
non-homogenous, and: - ANSWERS-immobile
, \.Which statement BEST defines the term contingency? - ANSWERS-
stipulation that must be satisfied before the contract can be performed
\.If a borrower is behind on payments, the acceleration clause gives the
lender the ability to: - ANSWERS-call the entire loan balance due
immediately
\.A metes and bounds legal description always returns to: - ANSWERS-
the point of beginning
\.What should a license holder do if a client instructs them to do
something that would discriminate against a protected class? -
ANSWERS-advise the client they cannot legally discriminate against
certain groups
\.What is a novation? - ANSWERS-the substitution of one contract for
another
\.A married couple bought a home ten years ago for $400,000. Their
neighborhood has rapidly grown in popularity, and they were able to
sell their home this year for $950,000. How much of that money will
they be required to pay capital gains tax on? - ANSWERS-$50,000
QUESTIONS COMPLETE WITH
100% CORRECT ANSWERS
\.In most cases, broker compensation, as a percentage of home price,
falls somewhere between: - ANSWERS-5-7%
\.A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal? -
ANSWERS-Yes. Religious organizations which rent to tenants for
residential purposes are exempt from the Fair Housing Act
\.What happens to trade fixtures after a business moves out of a leased
property? - ANSWERS-The tenant removes their trade fixtures and takes
them upon moving out.
\.Suppose that a borrower has a gross monthly income of $3,000 and
wants to qualify for a conforming loan (total debt service ratio of 36%)
with a monthly PITI payment of $800. What is the maximum amount of
additional long-term obligations this borrower may have after PITI? -
ANSWERS-$280
,\.A square bedroom measures 10 feet by 10 feet. What is the area of
the room? - ANSWERS-100 square feet
\.Which of these is an economic characteristic that makes land a
distinctive commodity?* - ANSWERS-situs
\.In a fixed-rate mortgage that is fully amortized, the total amount of
interest to be paid is: - ANSWERS-predetermined
\.Which is exempt from the federal Fair Housing Act? - ANSWERS-
renting a room in a house occupied by the owner
\.The Americans with Disabilities Act applies to: - ANSWERS-privately
owned or government-owned public accommodations
\.Condemnation is the act of seizing private property from citizens.
What gives the government the right to do this? - ANSWERS-eminent
domain
\.The PHYSICAL characteristics of land are that land is indestructible,
non-homogenous, and: - ANSWERS-immobile
, \.Which statement BEST defines the term contingency? - ANSWERS-
stipulation that must be satisfied before the contract can be performed
\.If a borrower is behind on payments, the acceleration clause gives the
lender the ability to: - ANSWERS-call the entire loan balance due
immediately
\.A metes and bounds legal description always returns to: - ANSWERS-
the point of beginning
\.What should a license holder do if a client instructs them to do
something that would discriminate against a protected class? -
ANSWERS-advise the client they cannot legally discriminate against
certain groups
\.What is a novation? - ANSWERS-the substitution of one contract for
another
\.A married couple bought a home ten years ago for $400,000. Their
neighborhood has rapidly grown in popularity, and they were able to
sell their home this year for $950,000. How much of that money will
they be required to pay capital gains tax on? - ANSWERS-$50,000
