RE Final Exam questions well answered
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A home valued at $168,500 has just had a 70% mortgage loan placed on it. The interest rate is 5.25%.
The monthly payment is $651.32 including principal and interest. What will the principal balance of the
mortgage loan be after the next monthly payment is made? - correct answer ✔✔$117,950.00
Tina buys a cat and keeps it in her apartment, even though her apartment lease includes a clause that
prohibits tenants from owning a pet. She does not remove the cat even after the landlord gives her a
written reminder of the lease agreement and insists that she remove the pet from the apartment. Tina
refuses, saying that the cat is very small and will cause no damage to the apartment. The landlord
decides to remove Tina due to the breach of the lease agreement. The legal process to remove the
tenant is known as - correct answer ✔✔actual eviction
Which of the following listing agreements permit owners of a listed property to sell the property on their
own without having to pay the listing broker a commission? - correct answer ✔✔open listing only
Lawrence does not want to be obligated to purchase a property but would like to have the right to
purchase a property within 60 days for $300,000. Lawrence should try to negotiate - correct answer
✔✔an option
A broker that does not have a client relationship with any of the parties in a real estate transaction and
only offers ministerial acts on the behalf of the parties would be a - correct answer ✔✔transaction
broker
For land to be taken by the government under its right of eminent domain, which of the following must
apply? - correct answer ✔✔the taking must be for public purpose
Which of the following describes a legal proceeding or legal action brought by either the buyer or the
seller under a purchase contract to enforce the terms of the contract? - correct answer ✔✔Suit for
specific performance
, Which of the following describes the difference between the current value of a property and any liens on
a property? - correct answer ✔✔equity
A building is valued at $100,000 using a capitalization rate of 8%. If an investor demands a capitalization
rate of 10%, the value of the building will - correct answer ✔✔decrease more than 10,000
A surveyor followed a property's legal description by starting at a point of beginning, then following the
indicated directions between natural and artificial landmarks to arrive back at the point of beginning,
using the method called - correct answer ✔✔metes and bounds
Owen tells his next door neighbor that she can store her camper in his yard for a few weeks until he
needs the space. Owen does not charge the neighbor any rent for the use of his yard. Owen has given his
neighbor - correct answer ✔✔a license
All of the following are generally exempt from paying real estate taxes EXCEPT - correct answer ✔✔for-
profit assisted living facility
The type of deed in which the grantor defends the title back to its beginning is - correct answer
✔✔general warranty deed
Escheat and eminent domain are both examples of - correct answer ✔✔involuntary possession
Bill hires Andrew as a buyer's agent. Bill confides he filed for bankruptcy two years ago. Bill would like to
find a seller who is willing to carry the loan. In this situation, a correct statement about Andrew's
responsibility regarding disclosure of the bankruptcy when presenting the offer to purchase is that
Andrew is - correct answer ✔✔required to disclose the bankruptcy because it is a material fact—
information important to the seller's evaluation of the offer.
An FHA-insured loan in the amount of $157,500 at 5.5% for 30 years closed on July 17. The first monthly
payment is due on September 1. Using a 360-day year and assuming that interest is being paid for the
day of closing, what was the amount of the interest adjustment the buyer had to make at the
settlement? - correct answer ✔✔336.87
latest update
A home valued at $168,500 has just had a 70% mortgage loan placed on it. The interest rate is 5.25%.
The monthly payment is $651.32 including principal and interest. What will the principal balance of the
mortgage loan be after the next monthly payment is made? - correct answer ✔✔$117,950.00
Tina buys a cat and keeps it in her apartment, even though her apartment lease includes a clause that
prohibits tenants from owning a pet. She does not remove the cat even after the landlord gives her a
written reminder of the lease agreement and insists that she remove the pet from the apartment. Tina
refuses, saying that the cat is very small and will cause no damage to the apartment. The landlord
decides to remove Tina due to the breach of the lease agreement. The legal process to remove the
tenant is known as - correct answer ✔✔actual eviction
Which of the following listing agreements permit owners of a listed property to sell the property on their
own without having to pay the listing broker a commission? - correct answer ✔✔open listing only
Lawrence does not want to be obligated to purchase a property but would like to have the right to
purchase a property within 60 days for $300,000. Lawrence should try to negotiate - correct answer
✔✔an option
A broker that does not have a client relationship with any of the parties in a real estate transaction and
only offers ministerial acts on the behalf of the parties would be a - correct answer ✔✔transaction
broker
For land to be taken by the government under its right of eminent domain, which of the following must
apply? - correct answer ✔✔the taking must be for public purpose
Which of the following describes a legal proceeding or legal action brought by either the buyer or the
seller under a purchase contract to enforce the terms of the contract? - correct answer ✔✔Suit for
specific performance
, Which of the following describes the difference between the current value of a property and any liens on
a property? - correct answer ✔✔equity
A building is valued at $100,000 using a capitalization rate of 8%. If an investor demands a capitalization
rate of 10%, the value of the building will - correct answer ✔✔decrease more than 10,000
A surveyor followed a property's legal description by starting at a point of beginning, then following the
indicated directions between natural and artificial landmarks to arrive back at the point of beginning,
using the method called - correct answer ✔✔metes and bounds
Owen tells his next door neighbor that she can store her camper in his yard for a few weeks until he
needs the space. Owen does not charge the neighbor any rent for the use of his yard. Owen has given his
neighbor - correct answer ✔✔a license
All of the following are generally exempt from paying real estate taxes EXCEPT - correct answer ✔✔for-
profit assisted living facility
The type of deed in which the grantor defends the title back to its beginning is - correct answer
✔✔general warranty deed
Escheat and eminent domain are both examples of - correct answer ✔✔involuntary possession
Bill hires Andrew as a buyer's agent. Bill confides he filed for bankruptcy two years ago. Bill would like to
find a seller who is willing to carry the loan. In this situation, a correct statement about Andrew's
responsibility regarding disclosure of the bankruptcy when presenting the offer to purchase is that
Andrew is - correct answer ✔✔required to disclose the bankruptcy because it is a material fact—
information important to the seller's evaluation of the offer.
An FHA-insured loan in the amount of $157,500 at 5.5% for 30 years closed on July 17. The first monthly
payment is due on September 1. Using a 360-day year and assuming that interest is being paid for the
day of closing, what was the amount of the interest adjustment the buyer had to make at the
settlement? - correct answer ✔✔336.87
