Pearson Vue Real Estate Exam
Questions and answers, 100% Accurate,
graded A+
The maximum amount of commission on a real estate transaction is: - ✔✔-determined by the broker's
contract with the seller.
A salesperson for ABC Realty has moved to XYZ Realty. What happens to the listing the salesperson took
at ABC Realty? - ✔✔-They belong to ABC Realty
The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give
the firm the most protection. In this case, the salespeople should be trying to get what type of listings? -
✔✔-Exclusive right-to-sell listings.
The prime obligation of an agent to the client is: - ✔✔-loyalty
An appraiser seeking to find market value would be concerned with all of the following EXCEPT: - ✔✔-
Original cost of the property
There are three main causes of depreciation. Which one of these finds it origin in social sources and is
the basis for the old axiom: "more houses are torn down than fall down''? - ✔✔-Economic Obsolescence
An appraiser advised the owner of an older home that considerably more income could be obtained if
the house were torn down and a different improvement placed upon the lot. This illustrates the
principle of: - ✔✔-Highest and best use
Of the two employment arrangements, the employer/employee and the employer/independent
contractor, which allows the employer to have control over the results of the salesperson's work? - ✔✔-
Either arrangement
, ABC Realty has an exclusive agency listing on the seller's property and has put it in the MLS. A
salesperson from XYZ Realty brings an offer, which the seller accepts, and the transaction closes. The
commission will be: - ✔✔-Split between the two brokerage firms, per the MLS terms.
The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give
the firm the most protection. In this case, the salespeople should be trying to get what type of listings? -
✔✔-Exclusive right-to-sell listings
A licensee acting on behalf of a property owner is best described as: - ✔✔-A Fiduciary
There are three main causes of depreciation. Which one of these finds its origin in social sources and is
the basis for the old axiom: "more houses are torn down than fall down." - ✔✔-Economic Obsolescence
Constructing homes costing $190,000 in an area of homes valued at $140,000 would mean the current
homes in the neighborhood should see: - ✔✔-An increase in value
The substitution of a new contract, which terminate and replaces an existing contract, is called: - ✔✔-
Novation: Novation removes all obligations and liabilities of the first contract, replacing it with a new
contract. Assignment still leaves some liabilities from the first contract.
In a home sale, the seller promises to sell and the buyer promises to buy. This is known as: - ✔✔-
Consideration: Consideration is money, promises, or something of value. In the purchase contract, the
consideration is the promises made by the seller and buyer.
The loan-to-value ratio is the loan amount divided by the: - ✔✔-appraised value or selling price,
whichever is lower. As its name states, the loan-to-value ratio is the loan expressed as a percentage of
the value. An 80% loan is a loan representing 80% of the appraised value. To find the ration, divide the
loan amount by the value of the property. Note, however, that lenders will base the loan on the lower of
the sales price or the appraised value.
The net monthly income of a five-unit apartment building is $4,600. The capitalization rate the lender
uses is 6%. What is the value of the building? - ✔✔-$920,000
Questions and answers, 100% Accurate,
graded A+
The maximum amount of commission on a real estate transaction is: - ✔✔-determined by the broker's
contract with the seller.
A salesperson for ABC Realty has moved to XYZ Realty. What happens to the listing the salesperson took
at ABC Realty? - ✔✔-They belong to ABC Realty
The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give
the firm the most protection. In this case, the salespeople should be trying to get what type of listings? -
✔✔-Exclusive right-to-sell listings.
The prime obligation of an agent to the client is: - ✔✔-loyalty
An appraiser seeking to find market value would be concerned with all of the following EXCEPT: - ✔✔-
Original cost of the property
There are three main causes of depreciation. Which one of these finds it origin in social sources and is
the basis for the old axiom: "more houses are torn down than fall down''? - ✔✔-Economic Obsolescence
An appraiser advised the owner of an older home that considerably more income could be obtained if
the house were torn down and a different improvement placed upon the lot. This illustrates the
principle of: - ✔✔-Highest and best use
Of the two employment arrangements, the employer/employee and the employer/independent
contractor, which allows the employer to have control over the results of the salesperson's work? - ✔✔-
Either arrangement
, ABC Realty has an exclusive agency listing on the seller's property and has put it in the MLS. A
salesperson from XYZ Realty brings an offer, which the seller accepts, and the transaction closes. The
commission will be: - ✔✔-Split between the two brokerage firms, per the MLS terms.
The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give
the firm the most protection. In this case, the salespeople should be trying to get what type of listings? -
✔✔-Exclusive right-to-sell listings
A licensee acting on behalf of a property owner is best described as: - ✔✔-A Fiduciary
There are three main causes of depreciation. Which one of these finds its origin in social sources and is
the basis for the old axiom: "more houses are torn down than fall down." - ✔✔-Economic Obsolescence
Constructing homes costing $190,000 in an area of homes valued at $140,000 would mean the current
homes in the neighborhood should see: - ✔✔-An increase in value
The substitution of a new contract, which terminate and replaces an existing contract, is called: - ✔✔-
Novation: Novation removes all obligations and liabilities of the first contract, replacing it with a new
contract. Assignment still leaves some liabilities from the first contract.
In a home sale, the seller promises to sell and the buyer promises to buy. This is known as: - ✔✔-
Consideration: Consideration is money, promises, or something of value. In the purchase contract, the
consideration is the promises made by the seller and buyer.
The loan-to-value ratio is the loan amount divided by the: - ✔✔-appraised value or selling price,
whichever is lower. As its name states, the loan-to-value ratio is the loan expressed as a percentage of
the value. An 80% loan is a loan representing 80% of the appraised value. To find the ration, divide the
loan amount by the value of the property. Note, however, that lenders will base the loan on the lower of
the sales price or the appraised value.
The net monthly income of a five-unit apartment building is $4,600. The capitalization rate the lender
uses is 6%. What is the value of the building? - ✔✔-$920,000
