RE Final Exam Questions/Answers
A broker gave permission for a real estate sales associate to deal directly with the
broker's principal. Which statement correctly applies? - CORRECT ANSWERS Both the broker
and sales associate have a fiduciary relationship with the principal
A business known as the XYZ Company is legally formed as what type of business? - CORRECT
ANSWERS Corporation for profit.
A city is in need of additional land for a new school. What right would the city have to acquire the land,
even over the objections of the property owner? - CORRECT ANSWERS Eminent Domain
A homeowner defaults on the mortgage. The homeowner owes the lender $200,000. The home is sold at
public auction and the sale produces $240,000. Where does the surplus amount of the. alcance due on the
promissory note go? - CORRECT ANSWERS To the mortgagor (homeowner)
A homeowner in a neighborhood with homes valued in the $100,000 range adds an in-ground pool at cost
of $75,000. This is an example of which of the following? - CORRECT ANSWERS Over
improvement
A homeowner receives a property tax assessment for 2020. When does the property tax become
delinquent? - CORRECT ANSWERS April 1st, 2021
A landlord may commingle tenants' security deposits with other business funds under which conditions? -
CORRECT ANSWERS The landlord posts a surety bond.
A listing broker is employed to find a purchaser and produces a full cash offer that meets the seller's
terms. The seller refuses to accept the offer because he doesn't like the buyer. Which condition exists? -
CORRECT ANSWERS The broker is entitled to compensation since he produced a buyer who met
the seller's terms for sale.
A real estate licensee working with a seller in limited representation received a telephone call from
another real estate agent working with the buyer. The agent's opening comments state the following. "Hi,
this is Robert Dawson, with East Side Realty. I am standing in front of a house that has your name on the
listing sign and I am with my principal. I have a few questions to ask you about the property." Based on
, the buyer's agent's comment, what should the licensee working with the seller conclude? - CORRECT
ANSWERS The agent representing the buyer is in a single agency relationship.
A sales associate has decided to concentrate on trying to obtain listings from a particular neighborhood.
The associate believes this should increase knowledge of the market and improve the likelihood of
success. Which term refers to approach to the real estate business? - CORRECT
ANSWERS Farming
A sales contract called for a $10,000 secondary deposit to be paid by June 1st. The sales associate forgot
to collect the deposit. Which statement correctly applies to this situation? - CORRECT
ANSWERS The sales associates may be charged with culpable negligence
After defaulting on mortgage payments but prior to foreclosure, the mortgagor has the right to redeem his
or her interest in the mortgaged property by paying the money owed the lender. What term is used for this
right? - CORRECT ANSWERS Equity of redemption
All of the following statements are correct regarding a Planned Unit Development (PUD), EXCEPT: -
CORRECT ANSWERS A buyer may void a sales contract within 3 days if the required disclosure
was not provided.
All of the following statements are correct regarding the Americans with Disabilities Act, EXCEPT: -
CORRECT ANSWERS Owners of existing properties must make all necessary modifications of
their properties to bring them into compliance without regard to the cost of such modification.
All of the following statements are true regarding a broker's office, EXCEPT: - CORRECT
ANSWERS The office can be located in a motor home provided the letterheads and advertising of
the firm properly disclose it as an office.
An applicant for a real estate license was denied by the department, which statement is correct regarding
this denial? - CORRECT ANSWERS The applicant must be notified in writing of the reason for
the denial and advised of the right to request a formal hearing.
An owner-developer may employ a sales associate to perform real estate services for property belonging
to the owner-developer. What are the registration and real estate licensing requirements for an owner-
developer? - CORRECT ANSWERS Must be registered, but not licensed
A broker gave permission for a real estate sales associate to deal directly with the
broker's principal. Which statement correctly applies? - CORRECT ANSWERS Both the broker
and sales associate have a fiduciary relationship with the principal
A business known as the XYZ Company is legally formed as what type of business? - CORRECT
ANSWERS Corporation for profit.
A city is in need of additional land for a new school. What right would the city have to acquire the land,
even over the objections of the property owner? - CORRECT ANSWERS Eminent Domain
A homeowner defaults on the mortgage. The homeowner owes the lender $200,000. The home is sold at
public auction and the sale produces $240,000. Where does the surplus amount of the. alcance due on the
promissory note go? - CORRECT ANSWERS To the mortgagor (homeowner)
A homeowner in a neighborhood with homes valued in the $100,000 range adds an in-ground pool at cost
of $75,000. This is an example of which of the following? - CORRECT ANSWERS Over
improvement
A homeowner receives a property tax assessment for 2020. When does the property tax become
delinquent? - CORRECT ANSWERS April 1st, 2021
A landlord may commingle tenants' security deposits with other business funds under which conditions? -
CORRECT ANSWERS The landlord posts a surety bond.
A listing broker is employed to find a purchaser and produces a full cash offer that meets the seller's
terms. The seller refuses to accept the offer because he doesn't like the buyer. Which condition exists? -
CORRECT ANSWERS The broker is entitled to compensation since he produced a buyer who met
the seller's terms for sale.
A real estate licensee working with a seller in limited representation received a telephone call from
another real estate agent working with the buyer. The agent's opening comments state the following. "Hi,
this is Robert Dawson, with East Side Realty. I am standing in front of a house that has your name on the
listing sign and I am with my principal. I have a few questions to ask you about the property." Based on
, the buyer's agent's comment, what should the licensee working with the seller conclude? - CORRECT
ANSWERS The agent representing the buyer is in a single agency relationship.
A sales associate has decided to concentrate on trying to obtain listings from a particular neighborhood.
The associate believes this should increase knowledge of the market and improve the likelihood of
success. Which term refers to approach to the real estate business? - CORRECT
ANSWERS Farming
A sales contract called for a $10,000 secondary deposit to be paid by June 1st. The sales associate forgot
to collect the deposit. Which statement correctly applies to this situation? - CORRECT
ANSWERS The sales associates may be charged with culpable negligence
After defaulting on mortgage payments but prior to foreclosure, the mortgagor has the right to redeem his
or her interest in the mortgaged property by paying the money owed the lender. What term is used for this
right? - CORRECT ANSWERS Equity of redemption
All of the following statements are correct regarding a Planned Unit Development (PUD), EXCEPT: -
CORRECT ANSWERS A buyer may void a sales contract within 3 days if the required disclosure
was not provided.
All of the following statements are correct regarding the Americans with Disabilities Act, EXCEPT: -
CORRECT ANSWERS Owners of existing properties must make all necessary modifications of
their properties to bring them into compliance without regard to the cost of such modification.
All of the following statements are true regarding a broker's office, EXCEPT: - CORRECT
ANSWERS The office can be located in a motor home provided the letterheads and advertising of
the firm properly disclose it as an office.
An applicant for a real estate license was denied by the department, which statement is correct regarding
this denial? - CORRECT ANSWERS The applicant must be notified in writing of the reason for
the denial and advised of the right to request a formal hearing.
An owner-developer may employ a sales associate to perform real estate services for property belonging
to the owner-developer. What are the registration and real estate licensing requirements for an owner-
developer? - CORRECT ANSWERS Must be registered, but not licensed
