Aceable Agent Principles of Real Estate
2 Practice Test Questions With Complete
Solutions 100%Verified
What is investment gain? - correct answer...✔✔an increase in property value due to
active and purposeful developments or improvements
Ben has recently purchased a policy for title insurance. Two weeks after making his
purchase, it is revealed that there were unknown liens attached to the title. What is
TRUE of this situation? - correct answer...✔✔Any problems that arise after policy
purchase are not covered.
Which of the following is an example of something that would be listed on a Closing
Disclosure as a credit to the buyer? - correct answer...✔✔A credit is an amount a
person receives at closing.
Gladys owns two properties: one is a residential property and the other is a plot of
undeveloped land. Which of the following is TRUE about Gladys' properties? - correct
answer...✔✔She CAN claim depreciation on her residential property; she can NOT
claim depreciation on her undeveloped land.
Landlords MUST allow tenants with disabilities to make reasonable modifications to a
property so they can enjoy it. But there are also unreasonable modifications a landlord
does NOT have to allow; all of the following are unreasonable modifications EXCEPT: -
correct answer...✔✔modifications made at the tenant's expense
What does "REO" stand for? - correct answer...✔✔"Real Estate Owned"
In which of the following cases would a property manager NOT need a real estate
license? - correct answer...✔✔A property manager who is an on-site apartment
manager NOT acting as an agent, leasing the owner's real estate.
What is a fee simple subject to a condition subsequent estate? - correct answer...✔✔
an estate in which the property MUST be used for a specific purpose and if it's not, the
real estate reverts back to the original owner
Which of the following is NOT a principle of appraisal? - correct answer...✔✔While
appraisers do concern themselves with the highest and best use of a property, "principle
of best use" is not among the principles.
AGRADESOLUTIONS
, Lara has her first investor client. She can expect her investor client to do all of the
following EXCEPT: - correct answer...✔✔Her investor client may require Lara to
conduct the majority of the activity on the selling side of the transaction.
Michelle is purchasing a condo uptown. She received a loan of $145,000 for the condo,
which leverages 67% of the financing. What is the amount of the down payment
Michelle will be making? - correct answer...✔✔The sale price is $216,417.91 (loan
amount divided by percentage), minus the loan amount ($145,000) makes the down
payment $71,417.91.
Ben would like to construct a restaurant on a parcel of land. This particular parcel is not
zoned for a commercial use. Ben should go to the city and seek a(n): - correct answer...
✔✔Ben should go to the city and seek a use variance.
James owns several properties that are close to a state park. In marketing these
properties, he denotes that the properties have easy access to the park, but he does
NOT describe the type of buyer this feature might appeal to, i.e. "outdoorsy people," etc.
What activity is James avoiding? - correct answer...✔✔illegal target marketing
Maria pays off her loan in equal installments of principal and interest over a period of
ten years. What can we call this method of payment? - correct answer...✔✔
amortization
Brad and Janet are getting divorced and splitting up their assets. Brad is leaving the
state and giving up his claim to their shared property. What type of deed will Janet and
Brad utilize to give sole ownership to Janet? - correct answer...✔✔quitclaim deed
Andy is the landlord of a rental home. Andy neglects to trim the tree that shades the
home and the tree creates a hole in the roof. This develops into a severe roof leak. The
ensuing roof repair would qualify as: - correct answer...✔✔corrective maintenance
A property is under contract for $175,000 with a 10% down payment. How much will be
paid at closing for 2.5 discount points and 1 point origination fee? - correct answer...✔
✔5512.5
What is a zoning variance and what needs to happen in order for a government to
approve it? - correct answer...✔✔A variance allows the individual property to deviate
from a specific provision of the zoning ordinance; it is for the benefit of one parcel (a
piece of land) only.
Which of the following BEST describes the concept of the time value of money? -
correct answer...✔✔today's money is worth MORE now than the same amount will be
in the future (because of the money's current potential to earn more money)
AGRADESOLUTIONS
2 Practice Test Questions With Complete
Solutions 100%Verified
What is investment gain? - correct answer...✔✔an increase in property value due to
active and purposeful developments or improvements
Ben has recently purchased a policy for title insurance. Two weeks after making his
purchase, it is revealed that there were unknown liens attached to the title. What is
TRUE of this situation? - correct answer...✔✔Any problems that arise after policy
purchase are not covered.
Which of the following is an example of something that would be listed on a Closing
Disclosure as a credit to the buyer? - correct answer...✔✔A credit is an amount a
person receives at closing.
Gladys owns two properties: one is a residential property and the other is a plot of
undeveloped land. Which of the following is TRUE about Gladys' properties? - correct
answer...✔✔She CAN claim depreciation on her residential property; she can NOT
claim depreciation on her undeveloped land.
Landlords MUST allow tenants with disabilities to make reasonable modifications to a
property so they can enjoy it. But there are also unreasonable modifications a landlord
does NOT have to allow; all of the following are unreasonable modifications EXCEPT: -
correct answer...✔✔modifications made at the tenant's expense
What does "REO" stand for? - correct answer...✔✔"Real Estate Owned"
In which of the following cases would a property manager NOT need a real estate
license? - correct answer...✔✔A property manager who is an on-site apartment
manager NOT acting as an agent, leasing the owner's real estate.
What is a fee simple subject to a condition subsequent estate? - correct answer...✔✔
an estate in which the property MUST be used for a specific purpose and if it's not, the
real estate reverts back to the original owner
Which of the following is NOT a principle of appraisal? - correct answer...✔✔While
appraisers do concern themselves with the highest and best use of a property, "principle
of best use" is not among the principles.
AGRADESOLUTIONS
, Lara has her first investor client. She can expect her investor client to do all of the
following EXCEPT: - correct answer...✔✔Her investor client may require Lara to
conduct the majority of the activity on the selling side of the transaction.
Michelle is purchasing a condo uptown. She received a loan of $145,000 for the condo,
which leverages 67% of the financing. What is the amount of the down payment
Michelle will be making? - correct answer...✔✔The sale price is $216,417.91 (loan
amount divided by percentage), minus the loan amount ($145,000) makes the down
payment $71,417.91.
Ben would like to construct a restaurant on a parcel of land. This particular parcel is not
zoned for a commercial use. Ben should go to the city and seek a(n): - correct answer...
✔✔Ben should go to the city and seek a use variance.
James owns several properties that are close to a state park. In marketing these
properties, he denotes that the properties have easy access to the park, but he does
NOT describe the type of buyer this feature might appeal to, i.e. "outdoorsy people," etc.
What activity is James avoiding? - correct answer...✔✔illegal target marketing
Maria pays off her loan in equal installments of principal and interest over a period of
ten years. What can we call this method of payment? - correct answer...✔✔
amortization
Brad and Janet are getting divorced and splitting up their assets. Brad is leaving the
state and giving up his claim to their shared property. What type of deed will Janet and
Brad utilize to give sole ownership to Janet? - correct answer...✔✔quitclaim deed
Andy is the landlord of a rental home. Andy neglects to trim the tree that shades the
home and the tree creates a hole in the roof. This develops into a severe roof leak. The
ensuing roof repair would qualify as: - correct answer...✔✔corrective maintenance
A property is under contract for $175,000 with a 10% down payment. How much will be
paid at closing for 2.5 discount points and 1 point origination fee? - correct answer...✔
✔5512.5
What is a zoning variance and what needs to happen in order for a government to
approve it? - correct answer...✔✔A variance allows the individual property to deviate
from a specific provision of the zoning ordinance; it is for the benefit of one parcel (a
piece of land) only.
Which of the following BEST describes the concept of the time value of money? -
correct answer...✔✔today's money is worth MORE now than the same amount will be
in the future (because of the money's current potential to earn more money)
AGRADESOLUTIONS
