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Questions and Graded Answers
A purchase contract required that the property be free of
tenants when the property conveyance occurred. On the day
of closing, the tenants were still living in the property. Who is
responsible for ensuring that tenants vacated the property
prior to closing?
A. Buyer
B. Sellers Agent
C. Seller
D. Listing Agent
Ans: Seller
A real estate broker enters into an agreement to represent a
buyer who is seeking a property to purchase, and remains a
single agent throughout the transaction. A seller with whom
the broker negotiates is the broker's
A. Client
B. Principal
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C. Customer
D. Fiduciary
Ans: Customer
An investor has come to the broker because he may be
interested in selling one of his residential properties. His
family has owned the 8-unit building for several years and
have kept accurate records of income expenses. The
investor brings out a file of lavish improvements that he has
completed inside each of the units, including granite
counters, top of the line appliances and marble floors. He has
no idea what the property is worth and has asked the broker
to tell him what his potential profit will be before he agrees
to list it. In this situation, what is most important for the
broker to explore before counseling the investors and
putting his units on the market?
A. Be honest with the investor and tell him that he was foolish
for spending so much money on rental properties and he
should keep the property until he is able to depreciate all the
improvements over the next 31 years.
B. Establish what the expenses, i
Ans: Explain that he will develop his opinion of value
by using the income approach and that the investors
may not be able to recover all the cost of his
improvements
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A broker has a listing agreement to deliver to his out of town
client. To properly secure his listing, the agreement
A. Must have original ink signature
B. Must be retained in the broker's files for 3 years
C. May be an oral agreement
D. May be in electronic format
Ans: May be in electronic format
Working to convince a potential buyer that a single-family
house near a university could be converted to student
housing, a broker guarantees the buyer substantial profit.
Such a guarantee
A. Maybe unethical but is not violation of the real estate rules
and regulations
B. Requires comparable sales information to support the
claim of future value
C. Is an acceptable professional practice if the property is
properly zoned
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D. Constitutes failure to engage in competent practice under
the real estate rules and regulations
Ans: Constitutes failure to engage in competent
practice under the real estate rules and regulations
A recently widowed farm owner has called a broker to list
his one-acre building site in order to raise the money to pay
the property taxes. How should the broker proceed?
A. Pace off the land, put markers on the corners, and
advertise the building site for sale
B. Contact the municipality to determine if this is possible,
and then have a surveyor prepare the description
C. Draw up the legal description of the property, list it, and
begin the marketing campaign
D. Refuse the assignment, as one cannot divide and sell a
portion of one's land without selling all of it..
Ans: Contact the municipality to determine if this is
possible, and then have a surveyor prepare the
description
A listing broker has recently sold a house to an investor.
Prior to making an offer, the investor told the broker he
planned to turn the large property into apartments. It was in
a neighborhood that had many multi-family properties. The
buyer has now discovered that the other properties are non-
Up to Date Content
National Real Estate Exam Latest
Questions and Graded Answers
A purchase contract required that the property be free of
tenants when the property conveyance occurred. On the day
of closing, the tenants were still living in the property. Who is
responsible for ensuring that tenants vacated the property
prior to closing?
A. Buyer
B. Sellers Agent
C. Seller
D. Listing Agent
Ans: Seller
A real estate broker enters into an agreement to represent a
buyer who is seeking a property to purchase, and remains a
single agent throughout the transaction. A seller with whom
the broker negotiates is the broker's
A. Client
B. Principal
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C. Customer
D. Fiduciary
Ans: Customer
An investor has come to the broker because he may be
interested in selling one of his residential properties. His
family has owned the 8-unit building for several years and
have kept accurate records of income expenses. The
investor brings out a file of lavish improvements that he has
completed inside each of the units, including granite
counters, top of the line appliances and marble floors. He has
no idea what the property is worth and has asked the broker
to tell him what his potential profit will be before he agrees
to list it. In this situation, what is most important for the
broker to explore before counseling the investors and
putting his units on the market?
A. Be honest with the investor and tell him that he was foolish
for spending so much money on rental properties and he
should keep the property until he is able to depreciate all the
improvements over the next 31 years.
B. Establish what the expenses, i
Ans: Explain that he will develop his opinion of value
by using the income approach and that the investors
may not be able to recover all the cost of his
improvements
Up to Date Content
,Comprehensive Study 3 Up to Date Content
A broker has a listing agreement to deliver to his out of town
client. To properly secure his listing, the agreement
A. Must have original ink signature
B. Must be retained in the broker's files for 3 years
C. May be an oral agreement
D. May be in electronic format
Ans: May be in electronic format
Working to convince a potential buyer that a single-family
house near a university could be converted to student
housing, a broker guarantees the buyer substantial profit.
Such a guarantee
A. Maybe unethical but is not violation of the real estate rules
and regulations
B. Requires comparable sales information to support the
claim of future value
C. Is an acceptable professional practice if the property is
properly zoned
Up to Date Content
, Comprehensive Study 4 Up to Date Content
D. Constitutes failure to engage in competent practice under
the real estate rules and regulations
Ans: Constitutes failure to engage in competent
practice under the real estate rules and regulations
A recently widowed farm owner has called a broker to list
his one-acre building site in order to raise the money to pay
the property taxes. How should the broker proceed?
A. Pace off the land, put markers on the corners, and
advertise the building site for sale
B. Contact the municipality to determine if this is possible,
and then have a surveyor prepare the description
C. Draw up the legal description of the property, list it, and
begin the marketing campaign
D. Refuse the assignment, as one cannot divide and sell a
portion of one's land without selling all of it..
Ans: Contact the municipality to determine if this is
possible, and then have a surveyor prepare the
description
A listing broker has recently sold a house to an investor.
Prior to making an offer, the investor told the broker he
planned to turn the large property into apartments. It was in
a neighborhood that had many multi-family properties. The
buyer has now discovered that the other properties are non-
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