National Real Estate Exam - Guide to Pearson Vue Book 2023/2024 with Complete Solutions

An estate for years - ANSWER-The phrase definite duration refers to: A periodic tenancy - ANSWER-A lease that automatically renews itself, in the absence of notice, is: $66,666 - ANSWER-A man just sold a condo for $80,000. This gave him a 20% profit on what he paid. What did the man pay? $80,000/1.20 Signed by the grantor - ANSWER-A requirement of a valid deed is that the deed be: The Truth In Lending Act - ANSWER-To locate buyers for other properties, a broker advertised a property that was not available but which would generate great interest. The broker's action violated: Lead paint - ANSWER-A federally mandated disclosure deals with: periodic tenancy - ANSWER-If no period is set for a residential tenancy but rent is to be paid monthly, the lease is a: $305, 851 - ANSWER-A builder wanted the listing to reflect $85 per square foot for a 2,500 square foot home plus $75,000 for the lot after the 6% commission was paid. What should the home be listed at to meet the builder's wishes? 2500x85 = 212,500 + 75,000 = 287,500/.94 = 305,851 Transfer it - ANSWER-To alienate property means to An encumbrance - ANSWER-A deed restriction is BEST described as A cloud on the title - ANSWER-A minor discrepancy concerning a title is the forfeiture of a deposit - ANSWER-An example of liquidated damages in a real property purchase contract is greater than the nominal rate - ANSWER-The annual percentage rate is property - ANSWER-Collateral for a real estate loan is the: mortgagee - ANSWER-A clause in a mortgage that provides for the assignment of rents benefits the: the resale mortgage marketplace - ANSWER-The secondary mortgage marketplace refers to purchasing mortgages originated by financial institutions - ANSWER-Fannie Mae activities include $291,555 - ANSWER-A straight 9% loan at 75% of a property's appraised value earned first-year interest of $19,680. What was the property's valuation? 19,680/.09 = 218,666.67/.75 = 291,555 designated agency - ANSWER-One salesperson in a broker's office had single agency with a buyer, while another salesperson in the same office had single agency with the seller on the same transaction. This situation describes forgery in the chain of title - ANSWER-A standard policy of title insurance protects the purchaser from title problems relating to: life estate - ANSWER-Which of the following tenancies is a free hold interest? defects discovered by property inspection. - ANSWER-A lender's extended policy of title insurance goes beyond standard coverage by including? Executory bilateral contract - ANSWER-What type of contract is an exclusive listing in a broker's inventory before sale? hypothecation - ANSWER-A borrower keeps control of the loan collateral but gives the lender a lien. This is called liability protection - ANSWER-Homeowners insurance includes $441,600 - ANSWER-When a new mall opened, rental income for the old mall was reduced by $4,600 per month. Assuming a 12.5% capitalization rate, what was the loss in value for the old mall? 4600x12 = 55,200 55,200/.125 = 441,600 reformation - ANSWER-A man agreed to buy a woman's farm, but the deed given by the woman had the wrong legal description, describing land that the woman did not own. The man, who wants the land bargained for, would ask the court for the remedy of: parol evidence rule - ANSWER-The use of verbal evidence to show that a contract means something other than it states is prohibited by the novation (the substitution of a new contract in place of an old one) - ANSWER-A seller agreed to a substitution of buyers in a purchase contract. This is a