Level I Test Pearson VUE Exam Questions and answers, 100% Accurate, rated A+

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Level I Test Pearson VUE Exam Questions and answers, 100% Accurate, rated A+ 1. Which broker action is an example of blockbusting? (page 134) A. Refusing to sell or rent to prospects because of ... race B. Refusing to rent to families with children C. Soliciting listings based on a fear of racial change in an area D. Directing people to an area based on race - ✔✔-C (Inducing panic selling due to fear of entry of people of different race, color, religion, or national origin.) 2. The phrase definite duration refers to a(n). (page 186) A. life estate. B. estate for years. C. estate at will. D. periodic tenancy. - ✔✔-B (An estate for years is a lease for a definite period.) 3. A lease that automatically renews itself, in the absence of notice, would be a(n) (page 186) A. estate for years. B. net lease. C. month-to-month tenancy. D. percentage lease. - ✔✔-C (A periodic tenancy that renews unless notice given by lessor or lessee to terminate-generally 30 days.) 4. C just sold a condominium for $80,000. This gave C a 20 percent profit on what C paid. What did C pay? (pages 217- 218) A. $64,000 B. $66,666 C. $120,000 D. $662,800 - ✔✔-B (The whole = the part / rate; the part is $80,000 and the rate is 120% or 1.2 as a decimal.) 5. A property has a variety of liens against it. Which of the following deeds would give the grantee the greatest protection against the existing liens? (page 48) A. Gift deed B. Quit claim deed C. Warranty deed D. Tax deed - ✔✔-D (Tax liens are priority liens so tax sales generally wipe out all junior liens.) 6. A business wishes to increase its liquidity while reducing its long-term debt. This would be possible with a (page 187) A. piggyback loan. B. sale-leaseback. C. wraparound loan. D. nonconforming loan. - ✔✔-B (Generates purchase price plus removes mortgage from balance sheet.) 7. In real estate, the term steering refers to (page 134) A. directing buyers to properties that best meet their needs. B. engaging in the qualification process for buyers. C. directing people to or away from areas based on their race, religion, or national origin. D. dividing apartment buildings into adult only and family areas. - ✔✔-C (Prohibited by Civil Rights Act of 1968.) 8. In a buyer's closing statement, the selling price is (page 174) A. a debit to the buyer. B. a credit to the buyer. C. assumed by the seller. D. less the amount to be paid for commission. - ✔✔-A (The buyer must come up with this amount. It would be a credit to the seller.) 9. What deduction from income does a homeowner have for tax purposes? (page 80) A. Interest expense B. Insurance cost C. Depreciation D. Maintenance expense - ✔✔-A (With some limitations, interest is deductible as well as property taxes.) 11. A requirement of a valid deed is that the deed be (page 116) A. dated. B. acknowledged. C. recorded. D. signed by the grantor. - ✔✔-D (Federal requirement.) 11. A requirement of a valid deed is that the deed be (page 40) A. dated. B. acknowledged. C. recorded. D. signed by the grantor. - ✔✔-D (It is presumed dated as of delivery. While it needs to be acknowledged to be recorded, it is valid between the parties without recordation.) 12. Which of the following is both a lien and an encumbrance? (page 35) A. A restrictive covenant B. An easement C. A lease D. A mortgage - ✔✔-D (It is a money charge {lien} as well as a charge or burden against the property.) 13. To locate buyers for other properties, a broker advertised a property that was not available but which would generate great interest. The broker's action violated (page 139) A. RESPA. B. Truth-in-Lending. C. ADA. D. the Sherman Act. - ✔✔-B (Bait-and-switch advertising is a Truth-in Lending violation.) 14. There is an inherent conflict of interest between the owner and the broker when there is a(n) (pages 112-113) A. exclusive-agency listing. B. exclusive-right-to-sell listing. C. net listing. D. open listing. - ✔✔-C (The broker wants a sale at the highest price possible while owner wants a quick sale that will meet his or her net.) 15. The first step in the appraisal process is to (page 70) A. determine the highest and best use. B. do a reconciliation. C. define the problem. D. determine land value. - ✔✔-C (The appraiser must determine the interest to be appraised in what property and for what purpose.) 16. A property manager may properly refuse to rent a second floor apartment to a(n) (page 135) A. unmarried pregnant woman. B. blind person with a guide dog. C. person who is ill with AIDS. D. person addicted to drugs. - ✔✔-D (Drug addicts are not a protected group.) 17. Market value is defined as (page 65) A. assessed value less depreciation. B. the probable price a willing, informed buyer would pay to a willing, informed seller. C. subjective value. D. utility value of the property to the owner. - ✔✔-B (With reasonable time to sell. The market place determines market value, appraisers only estimate it.) 18. An owner sold a property without any help of an agent; however, he was obligated to pay a commission to the agent. What type of listing did the agent have? (page 112) A. Exclusive agency listing B. Exclusive right to locate property listing C. Exclusive-right-to-sell listing D. Open listing - ✔✔-C (The agent gets paid no matter who makes the sale.) 19. A lessee has the right to have a portion of the rent apply to a purchase. The lessee could have a(n) (page 188) A. option to purchase. B. exculpatory clause. C. recapture clause. D. condemnation right. - ✔✔-A (While not a requirement of purchase option agreements, it is a common provision.) 20. A federally mandated disclosure deals with (page 116) A. asbestos. B. lead paint. C. radon. D. toxic mold. - ✔✔-B (The Protect Your Family From Lead Paint booklet must be given to buyers and ten ants.) 21. If no period is set for a residential tenancy but rent is to be paid monthly, the lease is a (page 186) A. month-to-month tenancy. B. lease for one month only. C. lease for one year. D. week-to-week rental. - ✔✔-A (Tenancy would customarily be the length of rent-paying period.) 22. When there is FHA financing, a borrower must receive a notice dealing with (page 118) A. the importance of a home inspection. B. government munitions storage. C. the existence of brownfields. D. toxic mold. - ✔✔-A (Also required when dwelling is HUD owned.) 23. An apartment complex of 420 units has 21 vacancies. What is the vacancy rate? (page 216) A. 4% B. 5% C. 6% D. 7% - ✔✔-B (Rate = Part / Whole or 21 / 420.) 24. A minor cannot list property the minor owns with a broker because (page 98) A. a minor cannot appoint an agent. B. of the statute of frauds. C. of the statute of limitations. D. of laches. - ✔✔-A (Minors lack contractual authority so can't appoint agents to do what they cannot do themselves.) 25. Which of the following is true of a blind ad? (page 110) A. It fails to include the owner's name. B. It omits the property address. C. It does not include a price. D. It fails to indicate the advertiser is an agent. - ✔✔-D (It would be grounds for disciplinary action.) 26. A builder wanted the listing to reflect $85 per square foot for a 2,500-square-foot home plus $75,000 for the lot after the 6 percent commission was paid. What should the home be listed at to meet the builder's wishes? (pages 217-218) A. $212,500 B. $287,500 C. $304,750 D. $305,851 - ✔✔-D (2,500 x $85 = $212,500 {building} + $75,000 for lot = $287,500. This equals sale price after 6% is taken out, or 94% of sale price. Whole = Part {287,500} / percentage rate {0.94}.) 27. A buyer of property did not know the property had previously been used as a chemical disposal site. The buyer was held liable for cleanup costs under (page 116) A. the doctrine of vicarious liability. B. CERCLA. C. RESPA. D. FIRPTA. - ✔✔-B (Buyer can escape liability if appropriate inquiry was made as to prior use and possible problems.) 28. Salesperson J's contract with his broker K calls for a 50/50 split of all listing and sales commissions received by the office sells a home listed by broker L for $180,000. L's listing provides for a 6 percent commission. If L splits the sales commission 40/60, with 60 percent going to the selling office, what will J earn on the sale? (page 218) A. $3,240 B. $5,400 C. $6,480 D. $10,800 - ✔✔-A (6% of $180,000 = $10,800 commission. 60% of $10,800 = $6480 {0.60 x 10,800}: J gets 50% or $3,240.) 29. In an exclusive listing, the broker's promise to use diligence makes the listing. (page 97) A. a unilateral contract. B. a bilateral contract. C. voidable. D. an illusory contract. - ✔✔-B (It is a promise for a promise. The owner's promise is to pay a commission.) 30. To have a valid deed there must be (page 45) A. a seal. B. witnesses. C. recording. D. a description of the property. - ✔✔-D (Must have an unambiguous description. Some states require a legal description) 31. How many acres are contained in the legal description, The NW 1/4 of the SW 1/4 of the NE 1/4 of the SE 1/4 of Section 18, T4N, R2E, San Bernardino Base Line and Meridian? (page 6) A. 2 1/2 B. 5 C. 7 1/2 D. 10 - ✔✔-A (Since a Section contains 640 acres, 1/4 Section equals 160 acres, 1/4 of 160 equals 40, 1/4 of 40 equals 10 and 1/4 of 10 equal [Show More]

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