BOB BROOKS FINAL EXAM QUESTIONS AND
CORRECT ANSWERS 2024-2025
When does earnest money and/or deposits received by the broker have to be deposited
into the escrow account?
a. Earnest money does not have to be deposited into an escrow account.
b. Before the end of the next banking day after its receipt
c. Within 24 hours
d. Within 48 hours - Answer b. Before the end of the next banking day after its receipt
To be recordable, a deed MUST be in writing and:
a. signed by grantee
b. recite the actual purchase price
c. acknowledged
d. be free of all liens - Answer c. acknowledged
An exclusive agency listing:
a. Allows the owner to sell through his own efforts without obligation to pay a
commission
b. Need not contain a definite termination date
c. Means the seller pays the agency regardless of who sells the property
d. None of the above - Answer a. Allows the owner to sell through his own efforts without
obligation to pay a commission
,A lease that requires a lessor to pay operating expenses of the property is called:
a. Gross lease
b. Net lease Incorrect
c. Graduated lease
d. Participation lease - Answer a. Gross lease
The idea that a property's value is safer when surrounded by similar properties is the
principle of:
a. Substitution
b. Progression
c. Regression
d. Conformity - Answer d. Conformity
An abstract of title reveals:
a. Devises
b. Foreclosures
c. Liens
d. All of the above. - Answer d. All of the above.
The chain of title is broken between a former owner and current owner. To convey the
title, the following will most likely be needed:
a. title inspection
b. quiet title suit
c. contrct for deed
, d. bill of sale - Answer b. quiet title suit
A real estate agent may provide an opinion of the sales price of real property for a
prospective listing or sale, so long as:
a. It is not referred to as an appraisal.
b. There is no promise by the seller to list their property for no less than the price
opinion.
c. There is no promise by the seller to accept no less than the price opinion regardless
of the appraisal price.
d. The price opinion is identical to the appraisal price. - Answer a. It is not referred to as
an appraisal.
A closing in which the duty of one agent is to collect all the signatures, money, and
documents WOULD be referred to as:
a. Act of sale closing.
b. Escrow closing.
c. Settlement meeting.
d. Consideration. - Answer b. Escrow closing.
RESPA was passed into law in 1974 for the following reason:
a. To ensure adequate disclosure at all times is made available to the purchaser
regarding interest rate on any new note.
b. To bring about specified changes in the settlement process that lead to more
effective advance disclosure of settlement costs to home buyers and sellers.
c. To ensure full disclosure is at all times made regarding financing on FHA and VA
loans.
d. To allow lending institutions to charge discount points and to have all of this fully
disclosed at the time of closing of the sale. - Answer b. To bring about specific changes
CORRECT ANSWERS 2024-2025
When does earnest money and/or deposits received by the broker have to be deposited
into the escrow account?
a. Earnest money does not have to be deposited into an escrow account.
b. Before the end of the next banking day after its receipt
c. Within 24 hours
d. Within 48 hours - Answer b. Before the end of the next banking day after its receipt
To be recordable, a deed MUST be in writing and:
a. signed by grantee
b. recite the actual purchase price
c. acknowledged
d. be free of all liens - Answer c. acknowledged
An exclusive agency listing:
a. Allows the owner to sell through his own efforts without obligation to pay a
commission
b. Need not contain a definite termination date
c. Means the seller pays the agency regardless of who sells the property
d. None of the above - Answer a. Allows the owner to sell through his own efforts without
obligation to pay a commission
,A lease that requires a lessor to pay operating expenses of the property is called:
a. Gross lease
b. Net lease Incorrect
c. Graduated lease
d. Participation lease - Answer a. Gross lease
The idea that a property's value is safer when surrounded by similar properties is the
principle of:
a. Substitution
b. Progression
c. Regression
d. Conformity - Answer d. Conformity
An abstract of title reveals:
a. Devises
b. Foreclosures
c. Liens
d. All of the above. - Answer d. All of the above.
The chain of title is broken between a former owner and current owner. To convey the
title, the following will most likely be needed:
a. title inspection
b. quiet title suit
c. contrct for deed
, d. bill of sale - Answer b. quiet title suit
A real estate agent may provide an opinion of the sales price of real property for a
prospective listing or sale, so long as:
a. It is not referred to as an appraisal.
b. There is no promise by the seller to list their property for no less than the price
opinion.
c. There is no promise by the seller to accept no less than the price opinion regardless
of the appraisal price.
d. The price opinion is identical to the appraisal price. - Answer a. It is not referred to as
an appraisal.
A closing in which the duty of one agent is to collect all the signatures, money, and
documents WOULD be referred to as:
a. Act of sale closing.
b. Escrow closing.
c. Settlement meeting.
d. Consideration. - Answer b. Escrow closing.
RESPA was passed into law in 1974 for the following reason:
a. To ensure adequate disclosure at all times is made available to the purchaser
regarding interest rate on any new note.
b. To bring about specified changes in the settlement process that lead to more
effective advance disclosure of settlement costs to home buyers and sellers.
c. To ensure full disclosure is at all times made regarding financing on FHA and VA
loans.
d. To allow lending institutions to charge discount points and to have all of this fully
disclosed at the time of closing of the sale. - Answer b. To bring about specific changes
