Real Estate Salesperson License Exam Questions

A basic owners title insurance policy will cover all of the following EXCEPT? - answer-Building permit Violations A broker has a listing on a property. The seller has accepted an offer from the buyer, but the transaction fails to close. Under which of the following conditions would the broker be eligible for a commission? - answer-The seller has refused to clear up a cloud on the title and the property cannot be transferred to a buyer. A broker has listed a seller's property. The seller travels extensively and would like the broker to have the authority to accept a full price offer if he receives one. The seller's layers prepares a limited power of attorney authorizing the broker to accept any offer for at least list price. Once the broker has the authority to accept a full price or better offer for the seller, what is his agency role with that seller? - answer-He is a General Agent A broker has written permission to represent both the seller and the buyer as a dual agent. Under these circumstances, which of the duties of an agent would be the easiest for him to fulfill? - answer-Obedience A Broker owes customers - answer-Honesty and Fairness A builder is using inferior siding and paint in an effort to construct affordable housing. This builder is an example of? - answer-Functional Obsolescence A builder is very successful and active in a new subdivision. Homes in the subdivision are selling well, and the builder is making a good profile on the sale. The new builders arrive and begin to sell in the same subdivision. All experience a lower level of profit. Which principle of appraisal would this be? - answer-Principle of Competition A buyer and his agent visit a listed property. The buyer loves the property and wants to purchase it. He speaks with the seller, who is at home at the time, and they come to an agreement regarding the price and terms. They shake hands on the agreement and the buyer happily leaves the property. His agent should? - answer-Warn the buyer that a verbal sales contract is unenforceable A buyer has discovered a defect in title and has suffered a loss due to the defect. The title company has compensated the buyer for the loss. Subsequently, the buyer is awarded judgement against the seller. The title company is entitled to a portion of the judgement as reimbursement for the claim it paid. This describes what? - answer-Subrogation A buyer has signed an agreement to purchase a property from a seller. He has met all the terms and conditions of the listing. The listing broker has taken the agreement to the seller. The seller has changed his mind about selling and refuses to sign the agreement. What is true? - answer-The seller does not have to sell, but owes the listing broker a commission. A buyer with a signed contract who has not yet gone to closing is an example of? - answer-Equitable Title A buyer's agent has helped a buyer find a home. The buyer has expressed concern about the possible presence of radon. What should the buyer's agent recommend to the buyer in this case? - answer-Recommend an inspection for hazardous materials a chemical manufacturing company purchases a plant after closing they discover that the previous owners had spilled hazardous materials on the land. According to CERCLA, who is liable for the cost of the cleanup? - answer-Both the new owners and the previous owners A client has asked an agent" what is the biggest disadvantage of investing in real estate?" the licensee's response should be? - answer-Lack of Liquidity A Commercial property is sold for cash without inspections. After closing the buyer discovers environmental problems on the property. Who is liable for the cleanup? - answer-The buyers, the seller, the broker, and all in the chain of title who contributed to the problems A landowner wants to sell his property. A title search uncovers a cloud on the title. There is no one available to sign a quit claim deed to clear up the cloud. What can the owner do? - answer-Pursue an action to quiet title in court A lot that measures 475x525 sold for 275,000. what was the cost per acre? - answer-$48,036 A married couple purchases property and takes title as Tenants by the Entirety. What is not true about this? - answer-When the spouse dies their share will pass to their heirs including but not limited to the surviving spouse. A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of the interim financing to the mortgage company and is called? - answer-Warehousing A one-half acre parcel of land in Manhattan, NY is worth considerably more than a one-half acre parcel in White Plains, NY. This is an example of: - answer-Scarcity A practice of trying to induce homeowners to sell by convincing them that a minority group is moving into the area causing property value to drop is? - answer-Blockbusting A property at 123 Main Street has been listed by Mary, a sales licensee at ABC Realty for several weeks. Last week, Mary died. What affect will Mary's death have on the Listing Agreement? - answer-The seller can claim abandonment and terminate the listing A property has lead based paint in the interior and on the exterior. What is true? - answer-The seller ha son duty to remediate lead, simply to disclose it. A Property is surveyed to determine a legal description. The surveyor works from a point of beginning, and measures terminal points and angles. What method of land description is he using? - answer-Metes and Bounds A property owner has a gas station on his land. The zoning committee changes the zoning to R-1. What must a property owner do? - answer-Nothing. The property is automatically considered a con-conforming use. A property owner has installed a chain link fence on his property. He has received an official notice requiring the removal of this type of fence. This fence is most likely a violation of? - answer-Deed Restrictions or Deed Covenants A property owner receives a notice that his land is an improvement district. What does this mean? - answer-He wil l receive an additional tax bill. A real estate licensee who has listed a property is a/an - answer-General agent of the broker and special agent of the seller A seller shows his property with ceiling fans. After closing when the buyer enters the house the ceiling fans have been removed and the wires are hanging down from the ceiling. What best describes this situation? - answer-The seller cannot take the fans because they are fixtures. A seller's property is listed for $399,900. A buyer makes an offer for $398,000. The seller counteroffers for $392,000. The buyers responded to the counteroffer. The seller receives another offer for $395,000. They would like to accept the new offer. What is true? - answer-They can accept the new offer only if they withdraw the counteroffer. A signed employment agreement is necessary to? - answer-Sue for a commission A single property is regulated by building codes, zoning, and deed restrictions. The rules are in conflict with one another. Which must the property owner obey? - answer-Whichever rules are the most strict or limiting. A tenant has a three year lease on some office space. He has occupied the space for seven months. His landlord dies. The heirs sell the building. The new landlord wants the tenant to move out. Does the tenant have to move? - answer-No, the tenant has a 3 year lease. A veteran received a certificate of eligibility for $40,000. He signed a contract to purchase a home for $155,000. The CRV on the property is $153,000. The bank wants a 75/25 ration. How much does the buyer need to purchase the property? - answer-$2,000 According to regulation Z, all of the following are trigger terms except? - answer-APR According to Regulation Z, what is NOT a trigger term? - answer-APR After the buyer's offer was accepted by the seller, the broker cashed the buyer's deposit check and put it in his office safe pending the close of escrow. The seller demanded the deposit money but the broker refused to give it to him. Assuming only the above, what is true? - answer-This conduct would probably subject the broker to disciplinary action by the real estate commissioner. All of the follo