Level I Test Pearson VUE Exam
Questions and answers, 100% Accurate,
rated A+
1. Which broker action is an example of blockbusting? (page 134)
A. Refusing to sell or rent to prospects because of race
B. Refusing to rent to families with children
C. Soliciting listings based on a fear of racial change in an area
D. Directing people to an area based on race - ✔✔-C
(Inducing panic selling due to fear of entry of people of different race, color, religion, or national origin.)
2. The phrase definite duration refers to a(n). (page 186)
A. life estate.
B. estate for years.
C. estate at will.
D. periodic tenancy. - ✔✔-B
(An estate for years is a lease for a definite period.)
3. A lease that automatically renews itself, in the absence of notice, would be a(n) (page 186)
A. estate for years.
B. net lease.
C. month-to-month tenancy.
D. percentage lease. - ✔✔-C
(A periodic tenancy that renews unless notice given by lessor or lessee to terminate-generally 30 days.)
,4. C just sold a condominium for $80,000. This gave C a 20 percent profit on what C paid. What did C
pay? (pages 217- 218)
A. $64,000
B. $66,666
C. $120,000
D. $662,800 - ✔✔-B
(The whole = the part / rate; the part is $80,000 and the rate is 120% or 1.2 as a decimal.)
5. A property has a variety of liens against it. Which of the following deeds would give the grantee the
greatest protection against the existing liens? (page 48)
A. Gift deed
B. Quit claim deed
C. Warranty deed
D. Tax deed - ✔✔-D
(Tax liens are priority liens so tax sales generally wipe out all junior liens.)
6. A business wishes to increase its liquidity while reducing its long-term debt. This would be possible
with a (page 187)
A. piggyback loan.
B. sale-leaseback.
C. wraparound loan.
D. nonconforming loan. - ✔✔-B
(Generates purchase price plus removes mortgage from balance sheet.)
7. In real estate, the term steering refers to (page 134)
, A. directing buyers to properties that best meet their needs.
B. engaging in the qualification process for buyers.
C. directing people to or away from areas based on their race, religion, or national origin.
D. dividing apartment buildings into adult only and family areas. - ✔✔-C
(Prohibited by Civil Rights Act of 1968.)
8. In a buyer's closing statement, the selling price is (page 174)
A. a debit to the buyer.
B. a credit to the buyer.
C. assumed by the seller.
D. less the amount to be paid for commission. - ✔✔-A
(The buyer must come up with this amount. It would be a credit to the seller.)
9. What deduction from income does a homeowner have for tax purposes? (page 80)
A. Interest expense
B. Insurance cost
C. Depreciation
D. Maintenance expense - ✔✔-A
(With some limitations, interest is deductible as well as property taxes.)
11. A requirement of a valid deed is that the deed be (page 116)
A. dated.
B. acknowledged.
C. recorded.
D. signed by the grantor. - ✔✔-D
Questions and answers, 100% Accurate,
rated A+
1. Which broker action is an example of blockbusting? (page 134)
A. Refusing to sell or rent to prospects because of race
B. Refusing to rent to families with children
C. Soliciting listings based on a fear of racial change in an area
D. Directing people to an area based on race - ✔✔-C
(Inducing panic selling due to fear of entry of people of different race, color, religion, or national origin.)
2. The phrase definite duration refers to a(n). (page 186)
A. life estate.
B. estate for years.
C. estate at will.
D. periodic tenancy. - ✔✔-B
(An estate for years is a lease for a definite period.)
3. A lease that automatically renews itself, in the absence of notice, would be a(n) (page 186)
A. estate for years.
B. net lease.
C. month-to-month tenancy.
D. percentage lease. - ✔✔-C
(A periodic tenancy that renews unless notice given by lessor or lessee to terminate-generally 30 days.)
,4. C just sold a condominium for $80,000. This gave C a 20 percent profit on what C paid. What did C
pay? (pages 217- 218)
A. $64,000
B. $66,666
C. $120,000
D. $662,800 - ✔✔-B
(The whole = the part / rate; the part is $80,000 and the rate is 120% or 1.2 as a decimal.)
5. A property has a variety of liens against it. Which of the following deeds would give the grantee the
greatest protection against the existing liens? (page 48)
A. Gift deed
B. Quit claim deed
C. Warranty deed
D. Tax deed - ✔✔-D
(Tax liens are priority liens so tax sales generally wipe out all junior liens.)
6. A business wishes to increase its liquidity while reducing its long-term debt. This would be possible
with a (page 187)
A. piggyback loan.
B. sale-leaseback.
C. wraparound loan.
D. nonconforming loan. - ✔✔-B
(Generates purchase price plus removes mortgage from balance sheet.)
7. In real estate, the term steering refers to (page 134)
, A. directing buyers to properties that best meet their needs.
B. engaging in the qualification process for buyers.
C. directing people to or away from areas based on their race, religion, or national origin.
D. dividing apartment buildings into adult only and family areas. - ✔✔-C
(Prohibited by Civil Rights Act of 1968.)
8. In a buyer's closing statement, the selling price is (page 174)
A. a debit to the buyer.
B. a credit to the buyer.
C. assumed by the seller.
D. less the amount to be paid for commission. - ✔✔-A
(The buyer must come up with this amount. It would be a credit to the seller.)
9. What deduction from income does a homeowner have for tax purposes? (page 80)
A. Interest expense
B. Insurance cost
C. Depreciation
D. Maintenance expense - ✔✔-A
(With some limitations, interest is deductible as well as property taxes.)
11. A requirement of a valid deed is that the deed be (page 116)
A. dated.
B. acknowledged.
C. recorded.
D. signed by the grantor. - ✔✔-D
