General RE Practice Exam #1 questions with
complete solutions graded A+
The use of more than one appraisal method with different weights to each method describes
__________ - correct answer ✔✔Reconciliation
An offer is terminated by ______ - correct answer ✔✔Rejection by the offeree
A valid contract would be unenforceable because of _____ - correct answer ✔✔The statute of
limitations
RESPA requirements include _______ - correct answer ✔✔The prohibition of a broker's receiving of a
referral fee from a lender.
The loan that would command the highest loan-to-value ratio would be for - correct answer ✔✔A single-
family residence
A home sells 2 days after your listing contract expires to a buyer to whom you showed the property. You
may be able to command a commission under which clause in your listing contract? - correct answer
✔✔Holdover.
A clause in the listing contract which allows that the broker earn his or her commission, for a set amount
of days after the listing agreement has expired if a buyer that the broker showed the property to decides
to buy the property after the listing agreement has ended, and if there is no other broker currently
engaged by the seller.
The owner of an interest in commonly held property wishes to dispose of the property, while the other
owners do not want to do so. The owner will probably ______ - correct answer ✔✔Bring a suit to
partition the monetary investment.
Partition: A means by which people in an undesirable common relationship can free themselves of the
relationship incidental to such common ownership.
, An ad used a term that triggered full disclosure of loan terms. The ad stated _____
a. $10,000 down
b. Payments lesser than rent
c. Low down payment
d. 8% APR - correct answer ✔✔a. $10,000 down
Truth in lending act advertising rules are triggered if the amount of percentage of down payment,
number of payments, period of repayment, or finance charges are included in any advertisement.
A property valued at $72,000 has an assessed value of 50%. If the mill rate is 6 mills, what is the tax? -
correct answer ✔✔$216
$72,000 x 0.5 = $36,000 x 0.0006 = $216
What is true of both special assessments and ad valorem taxes? - correct answer ✔✔Delinquent
payment is grounds for foreclosure sale of the property.
Which of the following approaches MOST reliably estimates the sales price of a single-family residence?
a. Market data approach
b. Sales comparison approach
c. Cost approach
d. Both 1 and 2 are correct - correct answer ✔✔d. Both 1 and 2 are correct
A market data approach is also known as sales comparison approach.
An assumable loan, whereby a lender releases the seller and substitutes a buyer as the party liable for
the debt, would be known as ______ - correct answer ✔✔Novation
complete solutions graded A+
The use of more than one appraisal method with different weights to each method describes
__________ - correct answer ✔✔Reconciliation
An offer is terminated by ______ - correct answer ✔✔Rejection by the offeree
A valid contract would be unenforceable because of _____ - correct answer ✔✔The statute of
limitations
RESPA requirements include _______ - correct answer ✔✔The prohibition of a broker's receiving of a
referral fee from a lender.
The loan that would command the highest loan-to-value ratio would be for - correct answer ✔✔A single-
family residence
A home sells 2 days after your listing contract expires to a buyer to whom you showed the property. You
may be able to command a commission under which clause in your listing contract? - correct answer
✔✔Holdover.
A clause in the listing contract which allows that the broker earn his or her commission, for a set amount
of days after the listing agreement has expired if a buyer that the broker showed the property to decides
to buy the property after the listing agreement has ended, and if there is no other broker currently
engaged by the seller.
The owner of an interest in commonly held property wishes to dispose of the property, while the other
owners do not want to do so. The owner will probably ______ - correct answer ✔✔Bring a suit to
partition the monetary investment.
Partition: A means by which people in an undesirable common relationship can free themselves of the
relationship incidental to such common ownership.
, An ad used a term that triggered full disclosure of loan terms. The ad stated _____
a. $10,000 down
b. Payments lesser than rent
c. Low down payment
d. 8% APR - correct answer ✔✔a. $10,000 down
Truth in lending act advertising rules are triggered if the amount of percentage of down payment,
number of payments, period of repayment, or finance charges are included in any advertisement.
A property valued at $72,000 has an assessed value of 50%. If the mill rate is 6 mills, what is the tax? -
correct answer ✔✔$216
$72,000 x 0.5 = $36,000 x 0.0006 = $216
What is true of both special assessments and ad valorem taxes? - correct answer ✔✔Delinquent
payment is grounds for foreclosure sale of the property.
Which of the following approaches MOST reliably estimates the sales price of a single-family residence?
a. Market data approach
b. Sales comparison approach
c. Cost approach
d. Both 1 and 2 are correct - correct answer ✔✔d. Both 1 and 2 are correct
A market data approach is also known as sales comparison approach.
An assumable loan, whereby a lender releases the seller and substitutes a buyer as the party liable for
the debt, would be known as ______ - correct answer ✔✔Novation
