Pearson VUE practice test Questions with accurate answers, 100% Acurrate. Verified.

Document Content and Description Below

Pearson VUE practice test Questions with accurate answers, 100% Acurrate. Verified. c. Bill of sale - ✔✔-1A buyer purchases a furnished condominimum apartment as an investment. The document... that evidences the buyer's ownership of the furniture is a a. Special warranty deed b. Homeowner's insurance policy c. Bill of sale d. Buyers inventory d. Accrued depreciation - ✔✔-Using the cost approach, an f calculates the current new replacement cost of a 15 year old structure. The next factor the appraiser will consider n completing this approach is: a. Land value b. Capitalization rate c. Net operating income d. Accrued depreciation c. 14320 - ✔✔-A buyer purchases a home for $55,000 and gets a commitment from a lender for an 80% loan. The lender has advised the buyer that 3 discount points will be charged. If additional closing costs are $2,000, how much total cash MUST the buyer have at closing? a. 1300 b. 13200 c. 14320 d. 15650 c. Always prohibited - ✔✔-Any referral of a settlement service provider for compensation is a. Only allowed on federally funded transaction b. Allowed when fully disclosed c. Always prohibited d. Only prohibited on federally funded transaction a. Earnest monies received from a clients properties in the agency's business account - ✔✔-A licensee is commingling trust funds by depositing: a. Earnest monies received from a clients properties in the agency's business account b. Earnest monies and rents received from a client's various properties in the same escrow/trust account c. Rents received from the licensee's own properties in a personal account d. Tenants security depositites received from various clients properties in the same escrow/trust account. b. 51200 - ✔✔-A lease calls for a commercial tenant to pay a guaranteed rental of $1,775 per month plus 6.5% of the gross income in excess of $325,000 per year. If the yearly gross income is $785,000, what is the annual rent? a. 51025 b. 51200 c. 52800 d. 72325 c. Built-in dishwasher - ✔✔-The lease of a restaurant terminates and the tenant wishes to move to another location. Which of the following items can the tenant remove from the restaurant as trade fixtures? a. Sprinkler system b. Radiators c. Built-in dishwasher d. Recessed ceiling lighting b. Equitable title - ✔✔-A buyer's interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as: a. Legal title b. Equitable title c. Fee simple determinable d. An option to purchase d. Nonconforming use - ✔✔-K owns and operates a small restaurant in an area recently annexed by a nearby city. As part of the annexation, the area was zoned for single-family residence, but K is allowed to continue operating the restaurant under the city's amended zoning ordinance. The allowance for K's continued operation is known as: a. Variance b. Spot zoning c. Conditional use d. Nonconforming use c. Constructive fraud - ✔✔-An unintentional or negligent misrepresentation would BEST be described as: a. Tortious action b. Puffing c. Constructive fraud d. Breach of duty c. Environmental protection agency - ✔✔-The entity that is charged with enforcing CERCLA in the case of an owner who allows the dumping of wastes on a property is the: a. Department of housing and urban development b. Federal emergency management agency c. Environmental protection agency d. Occupational safety and health administration d. Utility, scarcity, demand, and transferability - ✔✔-The four essential elements of value are: a. Governmental, economic, social, and physical b. Police power, escheat, location, and versatility c. Functionality, economy, zoning, obsolescence d. Utility, scarcity, demand, and transferability b. The broker has not earned a commission. - ✔✔-A broker spoke with a homeowner about obtaining an exclusive right-to-sell listing on the homeowner's property. Before signing the listing contract, the homeowner was approached by a buyer, who offered to buy the homeowner's property. The homeowner and the buyer signed a purchase agreement, and the buyer gave the homeowner a $500 earnest money check. Which of the following statements about this situation is CORRECT? a. The homeowner must deposit the earnest money check in the broker's trust account. b. The broker has not earned a commission. c. The homeowner and the buyer do not have a contract of sale. d. The homeowner must reimburse the broker for any expenses incurred. b. The owner - ✔✔-A sales agent is meeting with a potential home seller about listing their home. There are many comparable properties for sale in the neighborhood. Who determines the listing price? a. The real estate commissions b. The owner c. The broker d. The sales agent d. 305,000 - ✔✔-Ten years ago, a house valued at $200,000 was built on a two-acre plot valued at $50,000. Five years later, one acre of the plot was sold for $60,000. If the rest of the lot continued to appreciate at the same average annual percent and if the house appreciated at 1/2 percent a year, what is the present combined value of the house and lot? a. 255,000 b. 280,000 c. 285,000 d. 305,000 a. Off-site improvements - ✔✔-Quality and adequacy of water and sewer, availability and cost of energy, and access and condition of public roads are factors that are categorized as: a. Off-site improvements b. On-site improvements c. Zoning considerations d. Soft costs b. credit to the buyer and a debit to the seller - ✔✔-A property owner sells a house to a buyer and agrees to finance $10,000 of the purchase price on an installment note. At closing, the $10,000 will be a: a. credit to the buyer and a credit to the seller b. credit to the buyer and a debit to the seller c. debit to the buyer and a debit to the seller d. debit to the buyer and a credit to the seller b. The contract binds both parties to complete the sale within a given period of time. - ✔✔-18. Which of the following statements about a real estate sales contract is CORRECT? a. The contract conveys legal title to property when it has been signed by both parties. b. The contract binds both parties to complete the sale within a given period of time. c. Both parties have the right of specific performance. d. The broker may keep the earnest money if the buyer defaults. d. 232,333 - ✔✔-19. The potential gross income of a warehouse is $36,000 per year, and the vacancy allowance is 2%. The taxes are $2,000 per year, and annual maintenance costs are $3,600. Annual reserves for replacement are $1,800, debt service is $13,500, and depreciation is $3,500. If the capitalization rate is 12%, what is the estimated value of the warehouse? a. 134,333 b. 203,167 c. 218,167 d. 232,333 c. Buyer - ✔✔-20. The Equal Credit Opportunity Act (ECOA) requires that a copy of an appraisal paid for by a buyer must be made available to the: a. Title company b. Appraisal institute c. Buyer d. Seller c. National flood insurance program - ✔✔-21. A homeowner's property damaged by flood waters would be covered by the: a. Federal Emergency Management Agency b. American flood insurance program c. National flood insurance program d. Federal emergency housing association b. Discount point - ✔✔-22. A lender charges a percentage of the loan that fluctuates depending on the availability of mortgage money. This charge is called a: a. Tax service fee b. Discount point c. Document preparation fee d. Warehousing fee b. 40000 - ✔✔-23. A managing broker receives a 1% commission on the total sales of the office. The office charges a 7% commission on residential sales and has 4 salespeople, each of whom sold $1 million worth of real estate and received a 3% commission. Based on the sales of these four salespeople, what is the managing broker's income? a. 2800 b. 40000 c. 120000 d. 160000 b. The power of attorney must be in writing if it grants J the power to sign a sales contract on behalf of M. - ✔✔-24. M has given J power of attorney to act as attorney-in-fact to sell M's property. In this situation, which of the following statements is CORRECT? a. The power of attorney empowers J to sign a deed conveying title to M's property even if the power of attorney does not contain this specific statement. b. The power of attorney must be in writing if it grants J the power to sign a sales contract on behalf of M. c. If M dies, J may enter into a valid contract of sale on behalf of M's estate. d. Any contract J enters into under the power of attorney should be signed "J, attorney-in-fact for M." d. Impending action - ✔✔-25. A lis pendens filed in a foreclosure is a notice of a(n): a. Mortgagee in possession b. Deficiency judgement c. Writ of entry d. Impending action c. explaining various loan programs to the buyer [Show More]

Last updated: 1 year ago

Preview 1 out of 21 pages