NATIONAL REAL ESTATE
COMPREHENSIVE STUDY GUIDE FULL
QUESTIONS WITH ACCURATE SOLUTIONS
●● A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal?
Answer: 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?
Answer: 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?
Answer: $280
●● A square bedroom measures 10 feet by 10 feet. What is the area of
the room?
Answer: 100 square feet
,●● Which of these is an economic characteristic that makes land a
distinctive commodity?*
Answer: situs
●● In a fixed-rate mortgage that is fully amortized, the total amount of
interest to be paid is:
Answer: predetermined
●● Which is exempt from the federal Fair Housing Act?
Answer: renting a room in a house occupied by the owner
●● The Americans with Disabilities Act applies to:
Answer: 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?
Answer: eminent domain
●● The PHYSICAL characteristics of land are that land is indestructible,
non-homogenous, and:
Answer: immobile
●● Which statement BEST defines the term contingency?
, Answer: 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:
Answer: call the entire loan balance due immediately
●● A metes and bounds legal description always returns to:
Answer: 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?
Answer: advise the client they cannot legally discriminate against certain
groups
●● What is a novation?
Answer: 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?
Answer: $50,000
COMPREHENSIVE STUDY GUIDE FULL
QUESTIONS WITH ACCURATE SOLUTIONS
●● A Christian organization owns a fourplex. It wants to rent to only
Christian tenants. Under the federal Fair Housing Act, is this legal?
Answer: 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?
Answer: 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?
Answer: $280
●● A square bedroom measures 10 feet by 10 feet. What is the area of
the room?
Answer: 100 square feet
,●● Which of these is an economic characteristic that makes land a
distinctive commodity?*
Answer: situs
●● In a fixed-rate mortgage that is fully amortized, the total amount of
interest to be paid is:
Answer: predetermined
●● Which is exempt from the federal Fair Housing Act?
Answer: renting a room in a house occupied by the owner
●● The Americans with Disabilities Act applies to:
Answer: 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?
Answer: eminent domain
●● The PHYSICAL characteristics of land are that land is indestructible,
non-homogenous, and:
Answer: immobile
●● Which statement BEST defines the term contingency?
, Answer: 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:
Answer: call the entire loan balance due immediately
●● A metes and bounds legal description always returns to:
Answer: 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?
Answer: advise the client they cannot legally discriminate against certain
groups
●● What is a novation?
Answer: 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?
Answer: $50,000
