Barney Fletcher Practice Exam 1 questions with verified
answers
$1,000 is paid for a 30 day option to buy. Which of the following BEST
describes the listing agent's commission?
A. it is earned at the time the option is entered into
B. it is earned when the option is exercised
C. the commission comes out of the $1,000
D. the commission is payable at the end of the 30 day option period
Ans✓✓✓ B. it is earned when the option is exercised
A buyer borrowed $1,500 to purchase a hot tub. If the agreement
between the parties was for the total principal and interest to be repaid
in a single payment, what was the interest rate on the loan if the
payment was $1,695?
A. 11.3%
B. 11.5%
C. 13.0%
D. 15.0% Ans✓✓✓ C. 13.0%
$1,695 - $1,500 = $195. $195 divided by $1,500 = interest rate of 13%
,A buyer put 20% down on the purchase of a house. The lender required
the buyer to pay two discount points in order to obtain a loan. The
buyer paid $1,000 for the discount points. What was the purchase price
of the house?
A. $50,000
B. $62,500
C. $75,000
D. $87,000 Ans✓✓✓ B. $62,500
$1,000 divided by 2% = $50,000. The buyer putting down 20% means
the loan must have been at 80% of the purchase price. $50,000 divided
by 80% = $62,500
A contract would be considered executed when:
A. the deed has been delivered and accepted
B. all contract terms have been satisfied
C. the deed has been recorded
D. the deed has been acknowledged Ans✓✓✓ B. all contract terms
have been satisfied
A cooperative would take title to property under which of the following
categories?
, A. tenants in common
B. joint tenancy
C. severalty
D. tenancy by the entireties Ans✓✓✓ C. severalty
A corporation set up a business to do office rental services. Which of
the following acts could the members do without a real estate license?
A. handle the leasing of its own property
B. lease other companies' properties
C. procure tenants for other owners
D. receive referral fees from brokers but no actual commissions
Ans✓✓✓ A. handle the leasing of its own property
A husband and wife filed for and received a divorce. The wife then tried
to sell the property but the ex husband's name was still on the deed.
Which of the following actions would be best in trying to remedy the
situation?
A. suit to partition
B. quiet title suit
C. lis pendens
answers
$1,000 is paid for a 30 day option to buy. Which of the following BEST
describes the listing agent's commission?
A. it is earned at the time the option is entered into
B. it is earned when the option is exercised
C. the commission comes out of the $1,000
D. the commission is payable at the end of the 30 day option period
Ans✓✓✓ B. it is earned when the option is exercised
A buyer borrowed $1,500 to purchase a hot tub. If the agreement
between the parties was for the total principal and interest to be repaid
in a single payment, what was the interest rate on the loan if the
payment was $1,695?
A. 11.3%
B. 11.5%
C. 13.0%
D. 15.0% Ans✓✓✓ C. 13.0%
$1,695 - $1,500 = $195. $195 divided by $1,500 = interest rate of 13%
,A buyer put 20% down on the purchase of a house. The lender required
the buyer to pay two discount points in order to obtain a loan. The
buyer paid $1,000 for the discount points. What was the purchase price
of the house?
A. $50,000
B. $62,500
C. $75,000
D. $87,000 Ans✓✓✓ B. $62,500
$1,000 divided by 2% = $50,000. The buyer putting down 20% means
the loan must have been at 80% of the purchase price. $50,000 divided
by 80% = $62,500
A contract would be considered executed when:
A. the deed has been delivered and accepted
B. all contract terms have been satisfied
C. the deed has been recorded
D. the deed has been acknowledged Ans✓✓✓ B. all contract terms
have been satisfied
A cooperative would take title to property under which of the following
categories?
, A. tenants in common
B. joint tenancy
C. severalty
D. tenancy by the entireties Ans✓✓✓ C. severalty
A corporation set up a business to do office rental services. Which of
the following acts could the members do without a real estate license?
A. handle the leasing of its own property
B. lease other companies' properties
C. procure tenants for other owners
D. receive referral fees from brokers but no actual commissions
Ans✓✓✓ A. handle the leasing of its own property
A husband and wife filed for and received a divorce. The wife then tried
to sell the property but the ex husband's name was still on the deed.
Which of the following actions would be best in trying to remedy the
situation?
A. suit to partition
B. quiet title suit
C. lis pendens
