Pearson Vue Real Estate Exam Questions and answers, 100% Accurate, graded A+

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Pearson Vue Real Estate Exam Questions and answers, 100% Accurate, graded A+ The maximum amount of commission on a real estate transaction is: - ✔✔-determined by the broker's contract with t... he seller. A salesperson for ABC Realty has moved to XYZ Realty. What happens to the listing the salesperson took at ABC Realty? - ✔✔-They belong to ABC Realty The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give the firm the most protection. In this case, the salespeople should be trying to get what type of listings? - ✔✔-Exclusive right-to-sell listings. The prime obligation of an agent to the client is: - ✔✔-loyalty An appraiser seeking to find market value would be concerned with all of the following EXCEPT: - ✔✔- Original cost of the property There are three main causes of depreciation. Which one of these finds it origin in social sources and is the basis for the old axiom: "more houses are torn down than fall down''? - ✔✔-Economic Obsolescence An appraiser advised the owner of an older home that considerably more income could be obtained if the house were torn down and a different improvement placed upon the lot. This illustrates the principle of: - ✔✔-Highest and best use Of the two employment arrangements, the employer/employee and the employer/independent contractor, which allows the employer to have control over the results of the salesperson's work? - ✔✔- Either arrangement ABC Realty has an exclusive agency listing on the seller's property and has put it in the MLS. A salesperson from XYZ Realty brings an offer, which the seller accepts, and the transaction closes. The commission will be: - ✔✔-Split between the two brokerage firms, per the MLS terms. The principal broker at XYZ Realty has told her salespeople to try to only sign listing contracts that give the firm the most protection. In this case, the salespeople should be trying to get what type of listings? - ✔✔-Exclusive right-to-sell listings A licensee acting on behalf of a property owner is best described as: - ✔✔-A Fiduciary There are three main causes of depreciation. Which one of these finds its origin in social sources and is the basis for the old axiom: "more houses are torn down than fall down." - ✔✔-Economic Obsolescence Constructing homes costing $190,000 in an area of homes valued at $140,000 would mean the current homes in the neighborhood should see: - ✔✔-An increase in value The substitution of a new contract, which terminate and replaces an existing contract, is called: - ✔✔- Novation: Novation removes all obligations and liabilities of the first contract, replacing it with a new contract. Assignment still leaves some liabilities from the first contract. In a home sale, the seller promises to sell and the buyer promises to buy. This is known as: - ✔✔- Consideration: Consideration is money, promises, or something of value. In the purchase contract, the consideration is the promises made by the seller and buyer. The loan-to-value ratio is the loan amount divided by the: - ✔✔-appraised value or selling price, whichever is lower. As its name states, the loan-to-value ratio is the loan expressed as a percentage of the value. An 80% loan is a loan representing 80% of the appraised value. To find the ration, divide the loan amount by the value of the property. Note, however, that lenders will base the loan on the lower of the sales price or the appraised value. The net monthly income of a five-unit apartment building is $4,600. The capitalization rate the lender uses is 6%. What is the value of the building? - ✔✔-$920,000 A lender charges 2.25 discount points to allow the borrower to buy down the rate to 4%. What will the borrower pay for discount points on a sale of $128,000 with a LTV of 90%? - ✔✔-$2,592 $128,000 price x 0.90 loan-to-value ration= $115,200 loan $115,200 loan x 0.0225 points= $2,592 in points A seller sold an acre and reserved an easement appurtenant for ingress and egress to enable him to reach the public road. The buyer's land: - ✔✔-Is called the servient tenement. The Servient estate is burdened (encumbered) by the easement. Because the easement is irrevocable, it cannot be terminated due to inconvenience or hardship on the owner of the servient estate. When a party owns landlocked property and requires access over the land of an adjacent owner to reach his property, he would likely be entitled to an - ✔✔-Easement by necessity. An easement by necessity is a type of implied easement, created when justice or necessity make it necessary that an easement be provided for access (ingress and egress) to and from the property. Involuntary alienation of an estate means: - ✔✔-Ownersh [Show More]

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