REAL ESTATE PRACTICE TEST Questions with accurate answers, Rated A (2022/2023 latest updates)

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REAL ESTATE PRACTICE TEST Questions with accurate answers, Rated A (2022/2023 latest updates) 1. A blanket mortgage usually contains which clause? A. assumption B. release C. sunrise D. goo... d guy - ✔✔B 2. A CMA is different from an appraisal because: A. an appraisal is based only on facts B. an appraisal is an opinion of value C. a CMA can consider expired listings and properties on market D. an appraiser cannot, by law, perform a CMA - ✔✔c 3. A colorless, odorless, tasteless, radioactive gas which can enter homes is: A. formaldehyde B. freon C. radon D. carbon monoxide - ✔✔c 4. A coop may turn down a prospective buyer for what reason? A. any reason, as long as they don't violate fair housing law B. if they don't qualify for financial reasons C. if they have served time in prison D. all of the above - ✔✔d 5. A landlord discovers his tenant was only 17 when he signed the lease. For the landlord, the lease is: A. unenforceable B. void C. voidable D. a meeting of the minds - ✔✔a 6. A lien is an: A. appurtenance B. encroachment C. encumbrance D. eminent domain - ✔✔c 7. A listing contract creates an agency relationship in which the: A. broker is a general agent B. seller is the principal C. salesperson in an agent D. broker is a dual agent - ✔✔b 8. A party wall is: A. shared as joint tenants B. a cross easement C. part of the bundle of rights D. an easement in gross - ✔✔b 9. Which two protected groups are protected under the 1988 Amendment to Federal Fair Housing Act? A. age and gender B. disability and marital status C. disability and familial status D. religion and national origin - ✔✔c 10. A property with a market value of $80,000 is assessed at 75%. What is the tax rate per mill if the annual tax bill is $900? A. 1.5 B. 15 C. 106 D. 10.6 - ✔✔b 11. A real estate salesperson advises a prospective buyer that the coop they are considering does not accept pets, and their precious Labradoodle cannot live there. This disclosure constitutes: A. disloyalty to the seller B. violation of fiduciary duty C. required disclosure to buyer D. compliance with the Statute of Frauds - ✔✔c 12. Salesperson Sam, associated with Happy Realty, effects a co-broke with Pleasant Homes, who has the exclusive listing. In this transaction, Sam is a subagent of whom? A. seller B. no one - he is a special agent C. buyer D. no one - he is an independent contractor - ✔✔a 13. A salesperson licensee may receive commissions from: A. a referral client B. landlord or tenant C. seller D. supervising broker - ✔✔d 14. A salesperson receives two offers for a listed property in the same afternoon. One offer is higher. The salesperson should present to the seller: A. the offer he believes, in his professional opinion, is the stronger offer B. both offers C. the higher offer only D. the offer which comes directly (is not a co-broke) - ✔✔b 15. A salesperson working for broker Ralph sells a property for $90,000. Ralph keeps 40% of the 6% commission. How much does the salesperson receive? A. $2,160 B. $3,240 C. $5,400 D. $6,000 - ✔✔b 16. A wealthy widower devises his mansion to his children's nanny as a life estate for the lifetime of the children. This is called: A. in remainder B. pur autre vie C. seizin D. escheat - ✔✔b 17. A written listing agreement is an example of: A. due diligence B. acceleration C. express agency D. estoppel - ✔✔c 18. Under NYS Real Property Law, licensees must present sellers of 1- through 4-apartment properties a(n): A. agency disclosure form B. exclusive right to sell agreement C. agreement explaining the alienation clause D. lead paint disclosure form - ✔✔a 19. According to NYS Real Property law, a broker may: A. be paid by only one party B. co-broke with brokers in any state as long as they are licensed C. represent only the parties who pay commission D. represent both parties, with full disclosure and consent of both - ✔✔d 20. An agent is a: A. fiduciary B. salesperson C. employee of the broker D. arbitrator - ✔✔a 21. An agreement that is a financing instrument as well as a contract of sale is a(n): A. package mortgage B. qualified fee simple C. installment contract D. estate for years - ✔✔c 22. An alienation clause makes a mortgage: A. hypothecated B. unassumable C. in default D. adjustable - ✔✔b 23. An arm's length transaction means: A. buyer and seller are not related B. one party does not attend the closing but sends a representative C. the loan to value ratio is higher than usual D. the contract was signed under duress - ✔✔a 24. An estate that cannot be passed to the owner's heirs is called: A. tenancy by sufferance B. conditional C. life estate D. non-freehold - ✔✔c 25. An owner lists his property with several different brokers. If the seller sells the property himself, he does not owe the brokers any commission. This is called: A. exclusive agency B. open listing C. net listing D. qualified listing - ✔✔b 26. Discriminatory advertising (except racial discrimination) may be allowed in a limited way if the ad is: A. for mortgages B. by the owner of a property that contains fewer than 4 units C. by a person looking for a roommate D. for a coop - ✔✔c 27. Due to re-zoning, a nightclub is no longer in compliance with local ordinances, but is allowed to continue operating. This is called: A. spot zoning B. highest and best use C. nonconforming D. restrictive covenant - ✔✔c 28. Environmental reviews by lenders, tenants, or purchasers are part of: A. data required for the HUD-1 form B. the Clean Air Act C. compliance with State transfer requirements D. due diligence - ✔✔d 29. Safe well water is under the purview of: A. U.S. Green Building Council B. Department of Design and Construction C. Department of Health D. Attorney General - ✔✔c 30. If a landlord turns off heat in the middle of winter to force a tenant to move out, this is: A. actual eviction B. energy conservation C. escheat D. constructive eviction - ✔✔d 31. If a salesperson working as a buyer's representative honors a buyer's request to look at homes only in neighborhoods with a certain ethnic composition, the licensee is: A. violating the Statute of Frauds B. complying with Article 12A C. committing steering D. showing obedience to the principal - ✔✔c 32. If all broker members of a real estate board agree to a standard commission rate, this is: A. a violation of the Sherman Anti-Trust Act B. a violation of RESPA C. allowable under New York law if the property is commercial D. an ethics violation only - ✔✔a 33. If a seller sells a property himself and the listing agent is not entitled to a commission, this is: A. exclusive right to sell B. gross listing C. exclusive agency D. specific listing - ✔✔c 34. In addition to a disclosure form, the Residential Lead-based Paint Hazard Reduction Act requires licensees to: A. provide a Protect Your Family pamphlet B. include a lead survey in the home inspection C. advise buyers to obtain a complete home inspection D. inform owners that soil, water and air samples should be taken if the property was built before 1978 - ✔✔a 35. In New York, an individual may obtain a salesperson license at age: A. 16 B. 18 C. 25 D. 21 - ✔✔b 36. When submitting an offer for commercial property, the potential purchasers, an unmarried couple, asked the broker what is the best way to take title to the property. What should the broker suggest? A. tenants in common B. in severalty C. in the entirety D. ask a lawyer - ✔✔d 37. Lead is NOT found in which of the following places? A. drinking water B. soil around the home C. dust D. insulation in older homes - ✔✔d 38. New York State took over private property for construction of a new building. Which is true? A. the owner must be paid fair market value B. the building can only be a government office C. this is an example of escheat D. the owner can file a written complaint with the Zoning Board of Appeals on Grievance Day - ✔✔a 39. Ralph has obtained his broker's license and is opening his own brokerage, with salespersons working as independent contractors. Which of the following is he prohibited from doing? A. refusing to provide health insurance B. allowing salespersons to work whenever they want without a schedule C. holding office meetings with attendance required D. paying salespersons only for a sale or rental - ✔✔c 40. The IRS considers real estate licensees: A. statutory employees B. independent contractors C. special agents D. supervised associates - ✔✔b 41. Real estate licensees are: A. special agents B. universal agents C. general agents D. secret agents - ✔✔a 42. Restraint of trade most closely pertains to: A. the Sherman Act B. New York State Real Property law C. the definition of independent contractor D. the Duncan and Hill decision - ✔✔a 43. Rodney is an investor who wants a 9% return. He is considering buying a building with $40,000 NOI. What should he pay? A. $444,444 B. $400,000 C. $360,000 D. $900,000 - ✔✔a 44. Sam bought 3 acres at $1.50 per square foot. What was the price? A. $130,680 B. $196,020 C. $103,560 D. $180,000 - ✔✔b 45. In the cash on cash return calculation, how do you find out the before tax cash flow? A. you don't; it is privileged information B. that is the purpose of the calculation; to find btcf C. the seller must disclose it following a written request D. it is on the operating statement - ✔✔d 46. Sam owns his home in severalty but owns his roof deck as tenants in common. What kind of building is it? A. coop B. condo C. rental D. private house - ✔✔b 47. Jack sold his property to Julie. Their closing was May 20. Jack's tenant had already paid $600 rent for May. The proration will be a: A. debit to buyer $400 B. debit to seller $200 C. debit to seller $194 D. credit to buyer $194 - ✔✔b 48. Sam wants to net $180,000 [Show More]

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