Pearson VUE practice test questions
with Correct Answers
c. Bill of sale - Answer-1A buyer purchases a furnished condominimum apartment as an
investment. The document that evidences the buyer's ownership of the furniture is a
a. Special warranty deed
b. Homeowner's insurance policy
c. Bill of sale
d. Buyers inventory
d. Accrued depreciation - Answer-Using the cost approach, an f calculates the current
new replacement cost of a 15 year old structure. The next factor the appraiser will
consider n completing this approach is:
a. Land value
b. Capitalization rate
c. Net operating income
d. Accrued depreciation
c. 14320 - Answer-A buyer purchases a home for $55,000 and gets a commitment from
a lender for an 80% loan. The lender has advised the buyer that 3 discount points will
be charged. If additional closing costs are $2,000, how much total cash MUST the buyer
have at closing?
a. 1300
b. 13200
c. 14320
d. 15650
c. Always prohibited - Answer-Any referral of a settlement service provider for
compensation is
a. Only allowed on federally funded transaction
b. Allowed when fully disclosed
c. Always prohibited
d. Only prohibited on federally funded transaction
a. Earnest monies received from a clients properties in the agency's business account -
Answer-A licensee is commingling trust funds by depositing:
a. Earnest monies received from a clients properties in the agency's business account
b. Earnest monies and rents received from a client's various properties in the same
escrow/trust account
c. Rents received from the licensee's own properties in a personal account
d. Tenants security depositites received from various clients properties in the same
escrow/trust account.
, b. 51200 - Answer-A lease calls for a commercial tenant to pay a guaranteed rental of
$1,775 per month plus 6.5% of the gross income in excess of $325,000 per year. If the
yearly gross income is $785,000, what is the annual rent?
a. 51025
b. 51200
c. 52800
d. 72325
c. Built-in dishwasher - Answer-The lease of a restaurant terminates and the tenant
wishes to move to another location. Which of the following items can the tenant remove
from the restaurant as trade fixtures?
a. Sprinkler system
b. Radiators
c. Built-in dishwasher
d. Recessed ceiling lighting
b. Equitable title - Answer-A buyer's interest in real property, acquired at the moment
the seller and the buyer enter into a sales contract, is known as:
a. Legal title
b. Equitable title
c. Fee simple determinable
d. An option to purchase
d. Nonconforming use - Answer-K owns and operates a small restaurant in an area
recently annexed by a nearby city. As part of the annexation, the area was zoned for
single-family residence, but K is allowed to continue operating the restaurant under the
city's amended zoning ordinance. The allowance for K's continued operation is known
as:
a. Variance
b. Spot zoning
c. Conditional use
d. Nonconforming use
c. Constructive fraud - Answer-An unintentional or negligent misrepresentation would
BEST be described as:
a. Tortious action
b. Puffing
c. Constructive fraud
d. Breach of duty
c. Environmental protection agency - Answer-The entity that is charged with enforcing
CERCLA in the case of an owner who allows the dumping of wastes on a property is
the:
a. Department of housing and urban development
b. Federal emergency management agency
c. Environmental protection agency
with Correct Answers
c. Bill of sale - Answer-1A buyer purchases a furnished condominimum apartment as an
investment. The document that evidences the buyer's ownership of the furniture is a
a. Special warranty deed
b. Homeowner's insurance policy
c. Bill of sale
d. Buyers inventory
d. Accrued depreciation - Answer-Using the cost approach, an f calculates the current
new replacement cost of a 15 year old structure. The next factor the appraiser will
consider n completing this approach is:
a. Land value
b. Capitalization rate
c. Net operating income
d. Accrued depreciation
c. 14320 - Answer-A buyer purchases a home for $55,000 and gets a commitment from
a lender for an 80% loan. The lender has advised the buyer that 3 discount points will
be charged. If additional closing costs are $2,000, how much total cash MUST the buyer
have at closing?
a. 1300
b. 13200
c. 14320
d. 15650
c. Always prohibited - Answer-Any referral of a settlement service provider for
compensation is
a. Only allowed on federally funded transaction
b. Allowed when fully disclosed
c. Always prohibited
d. Only prohibited on federally funded transaction
a. Earnest monies received from a clients properties in the agency's business account -
Answer-A licensee is commingling trust funds by depositing:
a. Earnest monies received from a clients properties in the agency's business account
b. Earnest monies and rents received from a client's various properties in the same
escrow/trust account
c. Rents received from the licensee's own properties in a personal account
d. Tenants security depositites received from various clients properties in the same
escrow/trust account.
, b. 51200 - Answer-A lease calls for a commercial tenant to pay a guaranteed rental of
$1,775 per month plus 6.5% of the gross income in excess of $325,000 per year. If the
yearly gross income is $785,000, what is the annual rent?
a. 51025
b. 51200
c. 52800
d. 72325
c. Built-in dishwasher - Answer-The lease of a restaurant terminates and the tenant
wishes to move to another location. Which of the following items can the tenant remove
from the restaurant as trade fixtures?
a. Sprinkler system
b. Radiators
c. Built-in dishwasher
d. Recessed ceiling lighting
b. Equitable title - Answer-A buyer's interest in real property, acquired at the moment
the seller and the buyer enter into a sales contract, is known as:
a. Legal title
b. Equitable title
c. Fee simple determinable
d. An option to purchase
d. Nonconforming use - Answer-K owns and operates a small restaurant in an area
recently annexed by a nearby city. As part of the annexation, the area was zoned for
single-family residence, but K is allowed to continue operating the restaurant under the
city's amended zoning ordinance. The allowance for K's continued operation is known
as:
a. Variance
b. Spot zoning
c. Conditional use
d. Nonconforming use
c. Constructive fraud - Answer-An unintentional or negligent misrepresentation would
BEST be described as:
a. Tortious action
b. Puffing
c. Constructive fraud
d. Breach of duty
c. Environmental protection agency - Answer-The entity that is charged with enforcing
CERCLA in the case of an owner who allows the dumping of wastes on a property is
the:
a. Department of housing and urban development
b. Federal emergency management agency
c. Environmental protection agency
