Sales General Exam (Stringham) UPDATED ACTUAL Questions and CORRECT
Answers
(b) $1,285
Under the law of emblements, which of the following
situations is true?
(a) The seller deeds the property to the buyer but has
rights to the crop.
(b) The buyer gets the land, the seller gets the farm
house.
(c) The buyer gets everything, and after harvesting the
crop, gets the profits from it.
(d) Everything goes to the buyer and the seller has no
further rights to anything on the property.
When a listing is taken how does the agent confirm the
amounts owed on the mortgages?
(a) The listing agent should personally contact all lien
holders and verify balances.
(b) Order an Estoppel Certificate.
(c) Have the title company verify balances.
(d) The seller must list all lien amounts on the Seller's
Proceeds Sheet.
Truth in Lending or Reg. Z includes all the following re-
quirements EXCEPT:
(a) Use of APR
(b) Settlement Costs & You
(c) Disclosure of costs
(d) Advertising restrictions
Tim gets a 80% loan on a $100,000 property and is
charged a 1 point origination fee. He is also charged a $35
credit report fee and a $450 appraisal. How much must
Tim come to settlement with to then close the deal?
(a) $21, 285
,The seller deeds the property to the buyer but has rights
to the crop.
Order an Estoppel Certificate.
(Explanation: Estoppel Certificate is a formal term
describ-ing the document that the lender provides
accounting forthe total amounts owed. Agents should
not be personal- ly gathering this information. Agents
should advise their clients to personally verify the
amounts on the Estoppel Certificate.)
Settlement Costs & You
(Explanation: "Settlement Costs & You" is a booklet re-
quired to be given to prospective borrowers under the
Real Estate Settlement Procedures Act [RESPA], not
Truthin Lending.)
$21, 285
, (c) $100,485
(d) $1,485
For the purpose of property taxes, an appraisal is done
and the value is determined by the:
(a) County Tax Appraiser's Oflce
County Tax Assessor
(b) Board of Equalization
(c) County Tax Assessor
(d) State Appraisal Board
A lien on real property, documented by a signed mortgage
contract gives the lender the right to:
(a) Go to court and/or sell the property if the owner
defaults any of the provisions of the mortgage
Go to court and/or sell the property if the owner defaults
(b) Collect a particular interest rate on the loan.
any of the provisions of the mortgage
(c) Sell the servicing rights to the loan to another in-
vestor.
(d) Collect monthly payments for insurance and taxes and
place them in an escrow account.
The buyers insisted they were not interested in a property
that was less than 1.75 acres in size. A house on a property
that was 465 feet by 643 looked great. How many acres
does it have?
6.86
(a) 5.75
(b) 6.86
(c) 7.25
(d) 4.5
The commission structure for the brokerage was 5% on
the first $1,000,000 and 8% on the rest. The property sold $77,600
for $1,345,000. How much was the commission?
(a) $97,250 (Explanation: One million x 5% = part of the commission -
(b) $67,250
, (c) $77,600 $50,000. "The rest," or $345,000 x 8% = $27,600. Add the
(d) $174,850 two parts together for the correct answer.)
A deed filed in the public records provides which of the
Constructive notice
following:
(a) Escheat
(Explanation: [Deeds & Transfer] Actual delivery is giving
(b) Constructive notice
the deed to the grantee. Escheat pertains to dying without
(c) Statute of limitations
a will, and statute of limitations relates to contract law.)
(d) Actual delivery
The borrower used a document which gave the trustee
power of sale as the security for the loan to buy the home.
What document would contain that power:
(a) Trustee's Deed Deed of Trust
(b) Uniform Real Estate Contract
(c) Mortgage
(d) Deed of Trust
George Smith, who owns his property fee simple, grants
a three-year lease to Tom Green. During the second year
of the lease, George sells the property to Ned Gray. What
happens to the lease when the sale closes?
(a) The lease remains in effect with Mr. Gray and Mr.
Green. The lease remains in effect with Mr. Gray and Mr. Green.
(b) It must be negotiated between Gray and Mr. Green,
the leasee.
(c) Property cannot be sold and title transferred to a new
owner when a lease is in effect.
(d) It terminates.
Automated underwriting systems offer the following ben-
efits EXCEPT:
Reduced closing cost to borrower
(a) Immediate feedback for correcting deficiencies
(b) Speed and low operating cost
Answers
(b) $1,285
Under the law of emblements, which of the following
situations is true?
(a) The seller deeds the property to the buyer but has
rights to the crop.
(b) The buyer gets the land, the seller gets the farm
house.
(c) The buyer gets everything, and after harvesting the
crop, gets the profits from it.
(d) Everything goes to the buyer and the seller has no
further rights to anything on the property.
When a listing is taken how does the agent confirm the
amounts owed on the mortgages?
(a) The listing agent should personally contact all lien
holders and verify balances.
(b) Order an Estoppel Certificate.
(c) Have the title company verify balances.
(d) The seller must list all lien amounts on the Seller's
Proceeds Sheet.
Truth in Lending or Reg. Z includes all the following re-
quirements EXCEPT:
(a) Use of APR
(b) Settlement Costs & You
(c) Disclosure of costs
(d) Advertising restrictions
Tim gets a 80% loan on a $100,000 property and is
charged a 1 point origination fee. He is also charged a $35
credit report fee and a $450 appraisal. How much must
Tim come to settlement with to then close the deal?
(a) $21, 285
,The seller deeds the property to the buyer but has rights
to the crop.
Order an Estoppel Certificate.
(Explanation: Estoppel Certificate is a formal term
describ-ing the document that the lender provides
accounting forthe total amounts owed. Agents should
not be personal- ly gathering this information. Agents
should advise their clients to personally verify the
amounts on the Estoppel Certificate.)
Settlement Costs & You
(Explanation: "Settlement Costs & You" is a booklet re-
quired to be given to prospective borrowers under the
Real Estate Settlement Procedures Act [RESPA], not
Truthin Lending.)
$21, 285
, (c) $100,485
(d) $1,485
For the purpose of property taxes, an appraisal is done
and the value is determined by the:
(a) County Tax Appraiser's Oflce
County Tax Assessor
(b) Board of Equalization
(c) County Tax Assessor
(d) State Appraisal Board
A lien on real property, documented by a signed mortgage
contract gives the lender the right to:
(a) Go to court and/or sell the property if the owner
defaults any of the provisions of the mortgage
Go to court and/or sell the property if the owner defaults
(b) Collect a particular interest rate on the loan.
any of the provisions of the mortgage
(c) Sell the servicing rights to the loan to another in-
vestor.
(d) Collect monthly payments for insurance and taxes and
place them in an escrow account.
The buyers insisted they were not interested in a property
that was less than 1.75 acres in size. A house on a property
that was 465 feet by 643 looked great. How many acres
does it have?
6.86
(a) 5.75
(b) 6.86
(c) 7.25
(d) 4.5
The commission structure for the brokerage was 5% on
the first $1,000,000 and 8% on the rest. The property sold $77,600
for $1,345,000. How much was the commission?
(a) $97,250 (Explanation: One million x 5% = part of the commission -
(b) $67,250
, (c) $77,600 $50,000. "The rest," or $345,000 x 8% = $27,600. Add the
(d) $174,850 two parts together for the correct answer.)
A deed filed in the public records provides which of the
Constructive notice
following:
(a) Escheat
(Explanation: [Deeds & Transfer] Actual delivery is giving
(b) Constructive notice
the deed to the grantee. Escheat pertains to dying without
(c) Statute of limitations
a will, and statute of limitations relates to contract law.)
(d) Actual delivery
The borrower used a document which gave the trustee
power of sale as the security for the loan to buy the home.
What document would contain that power:
(a) Trustee's Deed Deed of Trust
(b) Uniform Real Estate Contract
(c) Mortgage
(d) Deed of Trust
George Smith, who owns his property fee simple, grants
a three-year lease to Tom Green. During the second year
of the lease, George sells the property to Ned Gray. What
happens to the lease when the sale closes?
(a) The lease remains in effect with Mr. Gray and Mr.
Green. The lease remains in effect with Mr. Gray and Mr. Green.
(b) It must be negotiated between Gray and Mr. Green,
the leasee.
(c) Property cannot be sold and title transferred to a new
owner when a lease is in effect.
(d) It terminates.
Automated underwriting systems offer the following ben-
efits EXCEPT:
Reduced closing cost to borrower
(a) Immediate feedback for correcting deficiencies
(b) Speed and low operating cost
