Page 1 of 86
Pearson VUE Property Insurance Exam ALL 300
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIR YEAR
QUESTION: a broker charges a leasing fee of one-half of the first months rent and a
management fee of 8% of all rents collected. the broker negotiates a two-year lease at a
monthly rental of $550. which of the following amounts will the broker earn on this lease
a. $1,378
b $1,331
c. $1,287
d. $1,056 - ANSWER-b. $1,331
QUESTION: a property manager works in the BEST interests of the
a. tenant
b. owner
1
, Page 2 of 86
c. agent
d. bank - ANSWER-b. owner
QUESTION: in reviewing the deed to a listed property, a licensee noted a number of limitations
regarding its use. these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants - ANSWER-D. Restricted covenants
QUESTION: the price at which a willing and informed buyer would buy and a willing and
informed seller would sell is called the
a. assessed value
b. book value
2
, Page 3 of 86
c. income approach to value
d. market value - ANSWER-d. market value
QUESTION: the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment - ANSWER-b. office building
QUESTION: the G's purchased a house from the T's. the G's agreed to the following terms:
monthly payments of $650 to the T's and the balance to be paid in full after 7 years. at the time
the balance is paid, the T's will give the G's a warranty deed transferring title. in this situation,
what type of financing was used
a. fha loan
b. wrap around mortgage
3
, Page 4 of 86
c. package mortgage
d. contract for deed - ANSWER-d. contract for deed
QUESTION: the provision in a mortgage or deed of trust that gives the lender the right to call
the entire balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause - ANSWER-a. acceleration clause
Q; In stating a seller's price and terms to a prospective buyer, the seller's broker is required by
the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
4
Pearson VUE Property Insurance Exam ALL 300
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIR YEAR
QUESTION: a broker charges a leasing fee of one-half of the first months rent and a
management fee of 8% of all rents collected. the broker negotiates a two-year lease at a
monthly rental of $550. which of the following amounts will the broker earn on this lease
a. $1,378
b $1,331
c. $1,287
d. $1,056 - ANSWER-b. $1,331
QUESTION: a property manager works in the BEST interests of the
a. tenant
b. owner
1
, Page 2 of 86
c. agent
d. bank - ANSWER-b. owner
QUESTION: in reviewing the deed to a listed property, a licensee noted a number of limitations
regarding its use. these limitations aare commonly known as:
A. Codicils
B. constraints
C. building codes
D. restricted covenants - ANSWER-D. Restricted covenants
QUESTION: the price at which a willing and informed buyer would buy and a willing and
informed seller would sell is called the
a. assessed value
b. book value
2
, Page 3 of 86
c. income approach to value
d. market value - ANSWER-d. market value
QUESTION: the income approach is MOST likely to be used when determining the value of a
A. vacant residential lot
b. office building
c. single-family home
d. cooperative apartment - ANSWER-b. office building
QUESTION: the G's purchased a house from the T's. the G's agreed to the following terms:
monthly payments of $650 to the T's and the balance to be paid in full after 7 years. at the time
the balance is paid, the T's will give the G's a warranty deed transferring title. in this situation,
what type of financing was used
a. fha loan
b. wrap around mortgage
3
, Page 4 of 86
c. package mortgage
d. contract for deed - ANSWER-d. contract for deed
QUESTION: the provision in a mortgage or deed of trust that gives the lender the right to call
the entire balance due upon a default in any payment is called a:
a. acceleration clause
b. prepayment penalty clause
c. prepayment priveledge clause
d. right of redemption clause - ANSWER-a. acceleration clause
Q; In stating a seller's price and terms to a prospective buyer, the seller's broker is required by
the law of agency to state ONLY those terms that are
a. included in the listing agreement
b. based on the brokers evaluation of prevailing prices and terms
4
