Final RE Exam Review (latest update)
questions with verified solutions
1. Licensee Chad works for broker Michael. Licensee Chad has a listing agreement with seller Ray.
Licensee Chad decided to transfer brokers. What will most likely happen with Chad's listing? - correct
answer ✔✔It will stay with Michaels brokerage.
1. Earl was a life tenant who lived in Lilly's property. Earl recently passed away. As a result of his death,
Earl's interest will pass to which of the following? - correct answer ✔✔Lilly
When a listing agent has an active listing agreement and decides to transfer brokers, what happens to
their listing? - correct answer ✔✔It stays with their current broker
If a broker's license is suspended or revoked, a branch office for that broker - correct answer ✔✔is
terminated automatically
What items are usually prorated at closing? - correct answer ✔✔taxes, insurance and homeowner
association fee
1. Vance's property had a bird feeder that was attached to the land. Today, Vance decided to remove the
bird feeder. This is an example of
a. attachment.
b. severance.
c. enhancement.
d. instant domain. - correct answer ✔✔b. severance
, What is severance in real estate? - correct answer ✔✔Severance is the conversion of real property to
personal property by detaching it from the real estate, such as by cutting down a tree, detaching a door
from a shed, or removing an antenna from a roof
What is affixing in real estate? - correct answer ✔✔. Affixing, or attachment, is the act of converting
personal property to real property by attaching it to the real estate, such as by assembling a pile of bricks
into a barbecue pit, or constructing a boat dock from wood planks.
Homeowner Elizabeth sold her house and had net proceeds of $266,000. Her adjusted basis in the home
was $235,000. She immediately bought another house for $198,000. What was Elizabeth's capital gain?
a. $31,000
b. $68,000
c. $37,000
d. $34,000 - correct answer ✔✔a. $31,000
1. In most states, a licensee must provide a(n) _______ of any existing agency relationships to all parties
_________ to whom they provide real estate brokerage services.
a. written disclosure, at first substantive contact
b. oral disclosure, at closing
c. written disclosure, after an offer has been accepted
e. oral disclosure, before first substantive contact - correct answer ✔✔a. written disclosure, at first
substantive contact
1. What form should agents show sellers near the end of a listing presentation to help them become
more familiar with the upcoming transaction?
a. A blank copy of a buyer's agency agreement
questions with verified solutions
1. Licensee Chad works for broker Michael. Licensee Chad has a listing agreement with seller Ray.
Licensee Chad decided to transfer brokers. What will most likely happen with Chad's listing? - correct
answer ✔✔It will stay with Michaels brokerage.
1. Earl was a life tenant who lived in Lilly's property. Earl recently passed away. As a result of his death,
Earl's interest will pass to which of the following? - correct answer ✔✔Lilly
When a listing agent has an active listing agreement and decides to transfer brokers, what happens to
their listing? - correct answer ✔✔It stays with their current broker
If a broker's license is suspended or revoked, a branch office for that broker - correct answer ✔✔is
terminated automatically
What items are usually prorated at closing? - correct answer ✔✔taxes, insurance and homeowner
association fee
1. Vance's property had a bird feeder that was attached to the land. Today, Vance decided to remove the
bird feeder. This is an example of
a. attachment.
b. severance.
c. enhancement.
d. instant domain. - correct answer ✔✔b. severance
, What is severance in real estate? - correct answer ✔✔Severance is the conversion of real property to
personal property by detaching it from the real estate, such as by cutting down a tree, detaching a door
from a shed, or removing an antenna from a roof
What is affixing in real estate? - correct answer ✔✔. Affixing, or attachment, is the act of converting
personal property to real property by attaching it to the real estate, such as by assembling a pile of bricks
into a barbecue pit, or constructing a boat dock from wood planks.
Homeowner Elizabeth sold her house and had net proceeds of $266,000. Her adjusted basis in the home
was $235,000. She immediately bought another house for $198,000. What was Elizabeth's capital gain?
a. $31,000
b. $68,000
c. $37,000
d. $34,000 - correct answer ✔✔a. $31,000
1. In most states, a licensee must provide a(n) _______ of any existing agency relationships to all parties
_________ to whom they provide real estate brokerage services.
a. written disclosure, at first substantive contact
b. oral disclosure, at closing
c. written disclosure, after an offer has been accepted
e. oral disclosure, before first substantive contact - correct answer ✔✔a. written disclosure, at first
substantive contact
1. What form should agents show sellers near the end of a listing presentation to help them become
more familiar with the upcoming transaction?
a. A blank copy of a buyer's agency agreement
