BSRV4601 Fundamentals of Real Estate: Final Exam
(Comprehensive) - Questions with Correct Answers
100 questions
1. Commission is generally only payable if:
A. The vendor likes the agent
B. A buyer views the property
C. The property is advertised
D. The agency agreement complies with the Act and the licensee is the effective cause of the sale
Correct Answer: D. The agency agreement complies with the Act and the licensee is the
effective cause of the sale
Rationale: Effective cause.
2. Marketing expenses in an agency agreement should be:
A. Charged without notice
B. Paid by the buyer
C. Agreed in writing with the client before they are incurred
D. Hidden in commission
Correct Answer: C. Agreed in writing with the client before they are incurred
Rationale: Informed consent.
3. A 'sunset clause' in an off-the-plan agreement allows:
A. The agent to cancel
B. The buyer to avoid paying ever
C. Cancellation if the development is not completed by a set date
D. The council to sell
Correct Answer: C. Cancellation if the development is not completed by a set date
Rationale: Off-the-plan risk.
4. A 'GST' clause in a sale and purchase agreement matters when:
A. The property is a house sold privately always
B. One or both parties are GST-registered and the supply may be taxable or zero-rated
C. The buyer is a student
D. The price is under $100
Correct Answer: B. One or both parties are GST-registered and the supply may be taxable or
zero-rated
Rationale: Seek tax advice.
5. A record of title typically shows:
A. The property's market value
B. Legal description, estate type, registered owners and registered interests
C. The owner's income
D. Council rates history
Correct Answer: B. Legal description, estate type, registered owners and registered interests
Rationale: Key title information.
,6. The Crown is the ultimate source of title in New Zealand because:
A. The Crown owns all houses
B. Councils own land
C. REINZ issues titles
D. All land titles derive originally from Crown grants
Correct Answer: D. All land titles derive originally from Crown grants
Rationale: Doctrine of tenure.
7. Leasehold interests can be:
A. Never transferred
B. Only inherited
C. Bought and sold, subject to lease terms
D. Only owned by councils
Correct Answer: C. Bought and sold, subject to lease terms
Rationale: Transferable.
8. Disputes between cross-lease owners are often governed by:
A. Body corporate rules
B. The Unit Titles Act
C. Covenants in the memorandum of lease
D. Te Ture Whenua M■ori Act
Correct Answer: C. Covenants in the memorandum of lease
Rationale: Lease terms.
9. A licensee marketing a unit title must not:
A. Misrepresent levies, rules or known building issues
B. Mention the body corporate
C. Show photos
D. Provide floor plans
Correct Answer: A. Misrepresent levies, rules or known building issues
Rationale: Accurate disclosure.
10. A special levy is:
A. An extra charge for unbudgeted costs such as major repairs
B. A council rate
C. Ground rent
D. Agent commission
Correct Answer: A. An extra charge for unbudgeted costs such as major repairs
Rationale: Unexpected costs.
11. Partition of M■ori freehold land refers to:
A. Painting fences
B. Unit plans
C. Dividing a block among owners into separate parcels
D. Licensing agents
Correct Answer: C. Dividing a block among owners into separate parcels
Rationale: Court order.
, 12. An archaeological authority may be needed before:
A. Painting a house
B. Selling a house
C. Signing an agency agreement
D. Modifying or destroying an archaeological site
Correct Answer: D. Modifying or destroying an archaeological site
Rationale: Heritage NZ.
13. Before signing an occupation right agreement, an intending retirement village resident must:
A. Pay full price without advice
B. Sign at the agent's office only
C. Receive independent legal advice
D. Register at LINZ
Correct Answer: C. Receive independent legal advice
Rationale: Statutory requirement.
14. The 'preferred classes of alienees' for M■ori freehold land generally include:
A. Overseas investors
B. Real estate agencies
C. Councils only
D. Wh■nau and members of the hap■ associated with the land
Correct Answer: D. Wh■nau and members of the hap■ associated with the land
Rationale: Priority to kin.
15. The specialist court that deals with M■ori land matters is the:
A. M■ori Land Court
B. Tenancy Tribunal
C. Disputes Tribunal
D. Employment Court
Correct Answer: A. M■ori Land Court
Rationale: Te Kooti Whenua M■ori.
16. Licensees should be careful when describing a 'licence to occupy' because buyers might
wrongly believe they are:
A. Renting
B. Joining a body corporate
C. Buying a car
D. Buying ownership of land
Correct Answer: D. Buying ownership of land
Rationale: Avoid misleading.
17. Retirement villages in New Zealand are regulated by the:
A. Unit Titles Act 2010
B. Retirement Villages Act 2003
C. Residential Tenancies Act 1986
D. Land Transfer Act 2017
Correct Answer: B. Retirement Villages Act 2003
Rationale: Consumer protection for residents.
(Comprehensive) - Questions with Correct Answers
100 questions
1. Commission is generally only payable if:
A. The vendor likes the agent
B. A buyer views the property
C. The property is advertised
D. The agency agreement complies with the Act and the licensee is the effective cause of the sale
Correct Answer: D. The agency agreement complies with the Act and the licensee is the
effective cause of the sale
Rationale: Effective cause.
2. Marketing expenses in an agency agreement should be:
A. Charged without notice
B. Paid by the buyer
C. Agreed in writing with the client before they are incurred
D. Hidden in commission
Correct Answer: C. Agreed in writing with the client before they are incurred
Rationale: Informed consent.
3. A 'sunset clause' in an off-the-plan agreement allows:
A. The agent to cancel
B. The buyer to avoid paying ever
C. Cancellation if the development is not completed by a set date
D. The council to sell
Correct Answer: C. Cancellation if the development is not completed by a set date
Rationale: Off-the-plan risk.
4. A 'GST' clause in a sale and purchase agreement matters when:
A. The property is a house sold privately always
B. One or both parties are GST-registered and the supply may be taxable or zero-rated
C. The buyer is a student
D. The price is under $100
Correct Answer: B. One or both parties are GST-registered and the supply may be taxable or
zero-rated
Rationale: Seek tax advice.
5. A record of title typically shows:
A. The property's market value
B. Legal description, estate type, registered owners and registered interests
C. The owner's income
D. Council rates history
Correct Answer: B. Legal description, estate type, registered owners and registered interests
Rationale: Key title information.
,6. The Crown is the ultimate source of title in New Zealand because:
A. The Crown owns all houses
B. Councils own land
C. REINZ issues titles
D. All land titles derive originally from Crown grants
Correct Answer: D. All land titles derive originally from Crown grants
Rationale: Doctrine of tenure.
7. Leasehold interests can be:
A. Never transferred
B. Only inherited
C. Bought and sold, subject to lease terms
D. Only owned by councils
Correct Answer: C. Bought and sold, subject to lease terms
Rationale: Transferable.
8. Disputes between cross-lease owners are often governed by:
A. Body corporate rules
B. The Unit Titles Act
C. Covenants in the memorandum of lease
D. Te Ture Whenua M■ori Act
Correct Answer: C. Covenants in the memorandum of lease
Rationale: Lease terms.
9. A licensee marketing a unit title must not:
A. Misrepresent levies, rules or known building issues
B. Mention the body corporate
C. Show photos
D. Provide floor plans
Correct Answer: A. Misrepresent levies, rules or known building issues
Rationale: Accurate disclosure.
10. A special levy is:
A. An extra charge for unbudgeted costs such as major repairs
B. A council rate
C. Ground rent
D. Agent commission
Correct Answer: A. An extra charge for unbudgeted costs such as major repairs
Rationale: Unexpected costs.
11. Partition of M■ori freehold land refers to:
A. Painting fences
B. Unit plans
C. Dividing a block among owners into separate parcels
D. Licensing agents
Correct Answer: C. Dividing a block among owners into separate parcels
Rationale: Court order.
, 12. An archaeological authority may be needed before:
A. Painting a house
B. Selling a house
C. Signing an agency agreement
D. Modifying or destroying an archaeological site
Correct Answer: D. Modifying or destroying an archaeological site
Rationale: Heritage NZ.
13. Before signing an occupation right agreement, an intending retirement village resident must:
A. Pay full price without advice
B. Sign at the agent's office only
C. Receive independent legal advice
D. Register at LINZ
Correct Answer: C. Receive independent legal advice
Rationale: Statutory requirement.
14. The 'preferred classes of alienees' for M■ori freehold land generally include:
A. Overseas investors
B. Real estate agencies
C. Councils only
D. Wh■nau and members of the hap■ associated with the land
Correct Answer: D. Wh■nau and members of the hap■ associated with the land
Rationale: Priority to kin.
15. The specialist court that deals with M■ori land matters is the:
A. M■ori Land Court
B. Tenancy Tribunal
C. Disputes Tribunal
D. Employment Court
Correct Answer: A. M■ori Land Court
Rationale: Te Kooti Whenua M■ori.
16. Licensees should be careful when describing a 'licence to occupy' because buyers might
wrongly believe they are:
A. Renting
B. Joining a body corporate
C. Buying a car
D. Buying ownership of land
Correct Answer: D. Buying ownership of land
Rationale: Avoid misleading.
17. Retirement villages in New Zealand are regulated by the:
A. Unit Titles Act 2010
B. Retirement Villages Act 2003
C. Residential Tenancies Act 1986
D. Land Transfer Act 2017
Correct Answer: B. Retirement Villages Act 2003
Rationale: Consumer protection for residents.
