PRINCIPLES OF REAL ESTATE 2
CORRECT 100%
The quarterly interest payment of a loan is $3,600. The interest rate if 6%. What is the
loan amount?
a) $240,000
b) $24,000
c) $60,000
d) $600,000 - ANSWER a) $240,000
The closing of a real estate transaction in which all the appropriate documents are
signed, and the proceeds of the loan are disbursed are known as ___.
a) Funding
b) Consummation
c) Servicing
d) Origination - ANSWER b) Consummation
The principle of appraisal that states "value is influenced by the cost of acquiring a
comparable replacement" is the ___.
a) Principle of Substitution
b) Principle of Competition
c) Principle of Anticipation
d) Principle of Conformity - ANSWER a) Principle of Substitution
The deed that contains no warranties of ownership and gives the buyer the least
protection is the___.
a) General warranty deed
b) Bargain and sale deed
c) Special warranty deed
d) Quitclaim deed - ANSWER d) Quitclaim deed
The role of a property manager is established by a written agreement called a(n) ___.
a) Service contract
b) Temporary employment contract
c) Management agreement
d) Independent contractor agreement - ANSWER c) Management agreement
When should a buyer do a final walk-through of a property?
a) 1 to 3 days before closing
b) 1 week before closing
c) 2 weeks before closing
d) After the closing documents have been signed - ANSWER a) 1 to 3 days before
closing
, Eminent Domain is:
a) The sovereignty of the soil
b) The right of the government to acquire real estate when the owner dies without a will
and with no heirs
c) The dominant estate in an easement
d) The right of the government to take privately owned land for public use - ANSWER d)
The right of the government to take privately owned land for public use
A property is listed for $399,500 and sells for $395,600. The listing broker negotiated a
5% commission, agreed to keep 2% and to give the selling broker 3%. How much did
the selling broker receive?
a) $7,990
b) $11,985
c) $11,868
d) $7,912 - ANSWER c) $11,868
The TREC buyer and seller temporary lease agreements are for periods of ___.
a) 90 days or less
b) 60 days or less
c) 30 days or less
d) Any number of days - ANSWER a) 90 days or less
A sponsoring broker must:
a) Maintain written policies to ensure the competency of a supervised sales agent
b) Require that sales agents are adequately trained in the area in which they practice
c) Advise a sales agent in writing of the scope of the sales agent's authorized activities
d) A sponsoring broker must do all of these things - ANSWER d) A sponsoring broker
must do all of these things
Tim just purchased 100 acres of land to build his new home on. How many sq. of land
does Tim now own?
a) 4,356 sf
b) 43,560 sf
c) 4,356,000 sf
d) 8,000,000 sf - ANSWER c) 4,356,000 sf
Which type of mortgage plan includes a monthly payment of principal and interest plus
1/12th of the annual property tax assessment and 1/12th of the annual insurance
premium?
a) Budget mortgage
b) Blanket mortgage
c) Package mortgage
d) Sub-prime mortgage - ANSWER a) Budget mortgage
The secondary mortgage market is funded by ___.
a) Banks
CORRECT 100%
The quarterly interest payment of a loan is $3,600. The interest rate if 6%. What is the
loan amount?
a) $240,000
b) $24,000
c) $60,000
d) $600,000 - ANSWER a) $240,000
The closing of a real estate transaction in which all the appropriate documents are
signed, and the proceeds of the loan are disbursed are known as ___.
a) Funding
b) Consummation
c) Servicing
d) Origination - ANSWER b) Consummation
The principle of appraisal that states "value is influenced by the cost of acquiring a
comparable replacement" is the ___.
a) Principle of Substitution
b) Principle of Competition
c) Principle of Anticipation
d) Principle of Conformity - ANSWER a) Principle of Substitution
The deed that contains no warranties of ownership and gives the buyer the least
protection is the___.
a) General warranty deed
b) Bargain and sale deed
c) Special warranty deed
d) Quitclaim deed - ANSWER d) Quitclaim deed
The role of a property manager is established by a written agreement called a(n) ___.
a) Service contract
b) Temporary employment contract
c) Management agreement
d) Independent contractor agreement - ANSWER c) Management agreement
When should a buyer do a final walk-through of a property?
a) 1 to 3 days before closing
b) 1 week before closing
c) 2 weeks before closing
d) After the closing documents have been signed - ANSWER a) 1 to 3 days before
closing
, Eminent Domain is:
a) The sovereignty of the soil
b) The right of the government to acquire real estate when the owner dies without a will
and with no heirs
c) The dominant estate in an easement
d) The right of the government to take privately owned land for public use - ANSWER d)
The right of the government to take privately owned land for public use
A property is listed for $399,500 and sells for $395,600. The listing broker negotiated a
5% commission, agreed to keep 2% and to give the selling broker 3%. How much did
the selling broker receive?
a) $7,990
b) $11,985
c) $11,868
d) $7,912 - ANSWER c) $11,868
The TREC buyer and seller temporary lease agreements are for periods of ___.
a) 90 days or less
b) 60 days or less
c) 30 days or less
d) Any number of days - ANSWER a) 90 days or less
A sponsoring broker must:
a) Maintain written policies to ensure the competency of a supervised sales agent
b) Require that sales agents are adequately trained in the area in which they practice
c) Advise a sales agent in writing of the scope of the sales agent's authorized activities
d) A sponsoring broker must do all of these things - ANSWER d) A sponsoring broker
must do all of these things
Tim just purchased 100 acres of land to build his new home on. How many sq. of land
does Tim now own?
a) 4,356 sf
b) 43,560 sf
c) 4,356,000 sf
d) 8,000,000 sf - ANSWER c) 4,356,000 sf
Which type of mortgage plan includes a monthly payment of principal and interest plus
1/12th of the annual property tax assessment and 1/12th of the annual insurance
premium?
a) Budget mortgage
b) Blanket mortgage
c) Package mortgage
d) Sub-prime mortgage - ANSWER a) Budget mortgage
The secondary mortgage market is funded by ___.
a) Banks
