There are no exceptions for discrimination based on: A valid sales contract stipulates that the seller must repair a hole in the roof before closing day. Nothing- his property is automatically considered a non-conforming use. All of the following have been proven to pose health hazards EXCEPT: The protected categories in the 1968 law with later amendments include: a. race, color, religion, national origin, sex, disability, and families with children, d. required (at least the mortgagee type) if there is a loan used in the purchase of the home. Free Real Estate Practice Exam #1 Free Real Estate Practice Exam #2 Free Real Estate Practice Exam #3 Free Real Estate Practice Exam #4 Which element of a valid contract states that the contract cannot require any illegal activities or outcomes? For help with the national portion, we have our national real estate practice test. In terms of contract validity, what does mutual consent mean? | 1 | 320,000 | $160,000 | | 7 | 340,000 |$220,000 | stipulation that must be satisfied before the contract can be performed. The estate held by the nursing home is a: A country music singer who owns a cattle ranch enters into a sale and leaseback agreement with a local dentist. He notifies the landlord and recommends a contractor. Deficiency B. Delinquency C. Default D. Deferment 3. What can P do? It sells for $396,000. | **Month** | **Units Sold** | **Total Cost** | | **Month** | **Unit Sold** | **Total Cost** | Accounts Payable-Supply Mart The power of the government to seize citizen's private property without the consent of the owner. The annual net operating income (NOI) of the property is $310,000. What is another name for Contract for Deed. His lender has provided a very competitive interest rate, however when the investment property is completed and sold the lender will collect the amount borrowed plus a percent of the developer's profits. The tenant becomes ill from the mold. Which of the following instruments is the promise to repay a debt? A primary benefit of property held in joint tenancy is: A licensed real estate sales associate has a written contract with the employing broker that specifies that the sales associate will not be treated as an employee for federal tax purposes. Received cash from sales, $350.00. He is selling the house for $179,000. Mary, a single woman, has no children. plumbing work that was completed but never paid for. What will she pay monthly in interest? both the new owners and the previous owners. Several months later, the agent has a buyer client interested in purchasing the same property. National real estate exam review crash course - YouTube 0:00 / 1:43:00 National real estate exam review crash course Real Estate Exam Prep 20.9K subscribers Join Subscribe 6.2K Share. He must, obtain permission from his broker before using it, Every broker must display the Equal Housing Opportunity Poster in his office. You have recently purchased property in an area regulated by zoning. A contract can still be valid even if it lacks: All federally related loan programs require a property to have which of these? How many parties are required to perform in a bilateral contract? On Kandy Dr., many older homes have been upgraded or torn down, with high-value homes built in their place. Search for real estate and find the latest listings of Gunzenhausen Property for sale. Use the journal from the previous exercise. The nursing home agrees that the rental income produced by the building will pay for the expenses of caring for the women's parents. 25. John and Mary are co-owners of a property. Assuming that the listing agent and the selling agent in a transaction split their commission equally, what was the sales price of the property if the commission rate was 5.5% and the listing agent received $12,584? Real estate practice exams are an excellent way to make sure you're using your test time wisely. For help with the national portion we have our national real estate practice exam. He has begun to disassemble his display cabinets and shelves. Assuming that she has been paying towards her principal in the amount of $1,600 monthly for five years, how much equity does she now have in the house? Jesse later decided that he would like to keep his house instead. How much will she save on points if she chooses the 75% LTV? Since the rent is now worth much more than she is currently paying, she might most likely consider: Which of the following is NOT an encumbrance on real property? Michelle Renda is assistant manager at Barnes and Noble and is paid $42,900 annually. the buyer's agent is guilty of negligence and the listing agent must disclose the information to the seller. Which statement is TRUE of this arrangement? How much does the selling sales associate earn from the sale after deducting expenses of $1,300? A property owner has a gas station on his land. This is called: The required distance between buildings and a federally protected endangered species wetlands is an example of A couple purchased a condominium. Purchase Louisiana real estate Exam Prep today and get ready to pass your test with more confidence and less stress. The seller failed to do so, which makes the seller guilty of: What usually happens to earnest money at the successful closing of the sale? What kind of property is it? This is MOST likely a? There is no one available to sign a quit claim deed to clear up the cloud. An alienation clause would require a borrower to: pay the mortgage debt in its entirety upon the property being sold. In an express contract, the parties explicitly state the terms and conditions of the agreement, whereas in an implied contract, they do not. A square bedroom measures 10 feet by 10 feet. What are the requirements/ criteria for real estate to have values? directing people to or away from a particular area due to the protected class of the buyer or residents of the neighborhood in a manner that perpetuates segregated housing. He will be making a down payment of 5%. On June 12th the listing agent calls the buyer's agent and tells him the seller will be unable to close on the 14th. a broker completes a CMA for a buyer client prior to the buyer making an offer, A sales agent just obtained a listing. That section can be used to study the topics featured on those 85 questions. \text { Accounts payable } & 2,375 & 2,000 The tenant's lease has expired, but the landlord permits the tenant to stay in the apartment until the building is torn down. The statute of frauds requires that real estate agreements: Which type of deed includes the five implied warranties (covenants)? By far, the most substantial chunk of the real estate license exam is the vocabulary. They shake hands on the agreement and the buyer happily leaves the property. That section can be used to study the topics featured on those 80 questions. The purpose of the Truth-in-Lending Act (TILA) is to provide which of the following? Which of the following is a participant in the secondary mortgage market? Darla is suing Arlo for specific performance. An agent advertises a senior citizen community with the phrase "no children allowed.". Which of the following properties would be the least desirable neighborhood? What is the difference between a general partner and a limited partner? John has 60% interest in the property and Mary has a 40% interest. If the assessment is 85% of the market value, what is the market value? Here, you can put your knowledge to the test with our 120-question practice exams. Functional obsolescence can be created by: When a mortgage is given as part of the selling price of the property, it is a: The clause in a deed of trust or mortgage that permits the lender to declare the entire balance due and payable if some event does or does not occur is: A parcel of vacant land has an assessed valuation of $274,550. Novation Substituting a new obligation for an old one. Real Estate Agent Practice Test; Real Estate Agent Test Guide . What approach would an appraiser most likely use to value a residential rent house in neighborhood where a majority of the homes are leased? A property manager notices that the building stucco needs repair. Real estate practice exams are an excellent way to make sure youre using your test time wisely. When a buyer signs a mortgage to borrow money to purchase a home, what has been created? During the term of the listing the seller had disclosed confidential information to the agent. The local government needs your land to build a new high school. Which of the following actions by the agent would NOT be in violation of fair housing laws. What gives the government the right to do this? He has received on official notice requiring the removal of this type of fence. Login. Yearly expenses for the property toatl $115,000. Maria is considering the difference between an 80% LTV and a 75% LTV. A buyer makes an offer for $389,000. They would like to accept this new offer. Which of the following statements about social media in real estate is NOT true? Superfund Amendments and Reauthorization Act (SARA). ALL REAL ESTATE credit transactions except for commercial loans. The property management agreement creates what kind of agency? Today we go through 50 questions from our real estate practice exam. It counts towards the buyer's closing costs. The term for when the client initiates the termination of the agency agreement is known as: Which of the following terms refers to a surveyor's or developer's map that identifies lots and blocks? Which of the following statements is true? Which of the following is NOT an example of due diligence in a sales contract? The property has been built to resemble an Antebellum mansion. Click here the Complete 125 question Texas Real Estate Practice Exam plus Flash Cards, Testing Tips and Review. A physical or mental impairment that substantially limits one or more of the major life activities of an individual. The deed contains five covenants. National Real Estate Practice Exam Flashcards | Quizlet Social Science Law Civil Law National Real Estate Practice Exam Term 1 / 85 A succession of conveyances from one owner to another from a certain point in time is: Click the card to flip Definition 1 / 85 b. a chain of title Click the card to flip Flashcards Learn Test Match Created by The negotiated commission is 6% and will be split evenly between the selling broker and the listing broker. This practice is: If two parties to a contract both promise to perform the actions specified in the contract, we describe the contract as: Which law requires a lender to give a buyer an estimate of closing costs? Which of these is a protected class under the federal Fair Housing law? Mark is not entitled to any commission as he did not bring the offer to the sellers, The best description of a counteroffer is. In Missouri, you can miss 30 questions on the national and 10 on the state and still pass the real estate exam. An office space is 24 feet long and 27 feet wide with 9-ft ceilings. The property is under contract and all contingencies have been met. When the lease is up, what happens to the alarm system? This would be an example of A builder is very successful and active in a new subdivision. Get BOTH Formats Instantly: How much does the selling broker earn? Sabrina accepted Rebecca's offer to purchase her house, and the closing date is in a few weeks. What should the buyer's agent do in this case? T18. Which of the following conveys title to real property and insure good title? Which of the following is NOT a characteristic of a fee simple estate? His comparables should not be more than one year old. What is the effect of replacing bad with hot, or dry in sentence two. The court will appoint an administrator and it will be distributed to her heirs by the Law of Descent. $$ We're pulling for you! PSI test questions Questions and Answers 1. Test Timeframe You'll have 200 minutes for both portions of the test. This demonstrates which principle of appraisal. The buyer loves the property and wants to purchase it. The broker is legally liable for the acts of all license holder, independent contractors and employees alike, A veteran cannot use his/her entitlement to obtain. A property has foundation problems. A listing agent is showing his listing to a buyer customer and notices a problem with the exterior of the property that he missed when he listed the property. In the sales comparison approach to property valuation, what does the principle of substitution state? Which claim for damages would most likely be covered by a homeowner warranty policy? At this time, what is true? If a broker's computers are stolen what steps could have been taken to protect records? Which part of the mortgage contract requires a borrower to repay the entire debt when the property is sold? Capitalization definition. The rules are in conflict with one another. A seller must keep a copy of the lead paint disclosure he provided to the buyer for, It has been found that mold can develop due to, air tight windows and doors found in newer construction, protect a company's assets if someone is injured on company property, A condo owner's policy will most likely cover the owner if, A condo complex has liability complex has liability insurance. joint tenancy with rights of survivorship, both parties mutually agree to end an agency relationship. All states require real estate agents to be licensed by the state to engage in the sale of real estate. What principle of value defines the most important factor for appraisal? Take our a specific flood insurance policy. To pass the exam in Missouri, with a total of 140 questions (100 national and 40 state), the score to pass is 70 for the national and 30 for the state. What is the purpose of a property management trust account? He places a client's earnest money deposit in his business account and uses it to pay is rent. Who provides flood insurance to homeowners? What type of loan should he get to enable him to buy now and take advantage of declining rates in the future? Both parties involved in an agency agreement agree to end the agreement early. Each time, he notified the sellers of the showing by phone. The title company has discovered an unsatisfied M&M lien on the property. Until then, what does Rebecca have? About 1 hour and 20 minutes This free practice exam is here to help you master the state-specific portion of the North Carolina real estate exam. Broker B has signed a Buyer Representation Agreement with his clients. The tests cover such subjects as forms of ownership, physical descriptions, valuation and regulation. The property owner must obey whichever rules are the strictest or most limiting. When the terms of a contract have not yet been fully performed by both parties, the contract is best described as: The Civil Rights Act of 1866 protected the right to fair housing regardless of: Which of these is the best example of stigmatized property? What should you do? The key concepts and words you have to study are essential for obtaining your real estate license, so you must learn and become familiarized with them. The poster is usually distributed by. Which of the following statements about this is true, the tenant can take these as they are trade fixtures. Accounts Receivable-Scott Company In the second year the landlord dies. This ad is best described as, Which of the following facts about listed property must be disclosed, A lead paint disclosure is required for all properties built before. **Instructions:** A building was sold for $260,000, with the purchaser putting 10% down and obtaining a loan for the balance. A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years and a final payment of $24,095. According to CERCLA, who is liable for the cost of the cleanup? Her landlord pays for the property's maintenance, security, taxes, utilities, and all other operating expenses. Police powers include all of the following EXCEPT? *, In the sales comparison approach to property valuation, what does the principle of substitution state?*. How is earnest money recorded on the closing disclosure, What type of mortgage loan would allow the property owner to borrow additional funds at future dates. Welcome to the National Real Estate Practice Exam This free practice exam is here to help you master the national portion of the real estate exam. Contact. Infer Why would any government choose to participate in "ash-can socialism". Although the home has many updates and is in better condition than the surrounding houses, its value is significantly less than the price. That section can be used to study the topics featured on those 80 questions. However, there is a huge crack running down the middle of the living room wall. What is the difference between a bill of sale and a deed? the duty of confidentiality never expires and the agent must keep that information confidential forever, A metes and bounds description will always. \text { Accounts receivable } & 700 & 770 \\ Pedro bought his house for $370,000. Last week, Mary died. This is: acceptable as long as he has written records. What can the other property owners do to get him to comply? Who must fill out the Seller's Disclosure Notice? A sales agent had a listing and the property did not sell. Which of the following would be considered an operating expense by a property manager preparing an operating budget for the owner? 6. Which of these scenarios does NOT violate fair housing law? A property owner has the right to tell other people that they cannot trespass on their property. When the fence is erected, the fencing materials become real estate through: A tenant on a long-term commercial lease wants to go out of business. All of the following are hazardous substances that a license holder should be aware of except, Which of the following is the best example of puffing, I think this is the best floor plan available from this builder. $$ About 1 hour and 20 minutes Liens are prioritized by date of creation, with older liens being paid off first. C dies. What form replacing the HUD-1 must be provided to the consumer and when must it be provided? Darleene is looking at an investment property. home where a notorious convicted murderer once lived. Which of these is a set of regulations pertaining to building design, materials, safety, sanitation, and structure? An owner sold his house for $250,000 with a $50,000 take back. The selling broker pays his sales associates 60% of the broker's commission. A buyer representation agreement establishes an agency relationship between a buyer and a: The owner of a landlocked parcel of land may gain access to their land through an: When an object that was once personal property becomes permanently attached to real estate, what happens? Allie cannot depreciate her investment property for a tax deduction. A new contract substituting the obligations of an original contract is a(n): Which of these is an easement that is attached to a piece of land, regardless of owner? Which of the following statements may represent the unauthorized practice of law? T22. A & B. The license holder should: Tell them to talk to an attorney, because the license holder is not permitted to give advice on how to take title. Ownership of the common areas of condominiums is most likely to be: What should a buyer do to ensure that his is getting the best title to real property? How can homeowners get insurance coverage in case of a flood? Erin pays a flat fee every month to rent her apartment. Long before the debt is satisfied, the balance is due in a payment substantially larger than all the others. He has paid off $42,000 of his purchase mortgage. If John dies and Mary becomes the owner of their home, what type of ownership did they have? How much will Arturo need to pay on closing day? The seller counter offers for $392,500. The corporation, as the owner of real estate, may designate up to five of its officers to conduct business on behalf of the corporation without any license required. Using a 360-day year, how much will the seller owe for the taxes at closing (to the nearest dollar) and how will this be shown on the CD? A signed employment agreement is necessary to A listing agent would probably not disclose, death on the property due to natural causes. \end{array} The house is assessed at $350,000 and the tax rate is $2.50 per $100. What would he need to do? B sells his share to D. What type of ownership do A and D have? What should the agent do? The seller has painted over them to hide them. What is the defining feature of an estate for years? A seller's property is listed for $399,900. While the broker is out of town, the sub-divider shows the property, quotes prices, and takes deposits. P wants to sell the property, but Q and R do not. The son leases the property. The Americans with Disabilities Act applies to: privately owned or government-owned public accommodations. Who would use the remedy of Forcible Entry and Detainer? This represents a 20% profit. Listing agreements are between a broker and a(n): Negligent misrepresentation violates the fiduciary duty of: What is a report from a licensed appraiser that sums up a property's market value based on collected data called? Paid cash for rent, $400.00. Several years later, an ordinance was passed in that area banning any building six stories or higher. The title company is entitled to a portion of the judgment as reimbursement for the claim it paid. c. Real Estate Settlement Procedures Act (RESPA). We'd love to hear how you do and what the process was like for you. What approach to appraisal will he use to determine his opinion of value? For help with the national portion we have our real estate license practice quiz. Cash Does John have to leave? Which of the following is personal property? You will have between 2-4 hours to complete your exam. What type of listing agreement did Melissa and Shane sign? \text { Temporary investments } & 1,500 & 1,550 \\ What does this mean? Ben manages an apartment complex that has an effective gross income of $100,000. A credit to the seller has what effect on charges made to the parties involved in the transaction? In Colorado, there are 154 questions on the exam (80 national and 74 state). A buyer has signed an agreement to purchase a property from a seller. The buyers have not responded to the counteroffer. By far, the most substantial chunk of the real estate license exam is the vocabulary. The property taxes have not been paid for this year. ------------- S1. He sells 80% of it for $5,000 an acre. | 2 | 160,000 | 100,000 | | 8 | 280,000 | 160,000 | Molly and Jeff are currently in the process of paying off a loan. The listing and selling brokers agree to split a 7% commission 50-50 on a $295,900 land sale. An agent is accused of discrimination. They give the tenants notice to vacate. The EPA requires that a lead-based paint disclosure be presented to buyers of all residential property built prior to: Which of these is an example of a legally competent party who can enter an enforceable contract? Which of the following statements is true about the duties of an agent according to the common law of agency? ** Use the results from part 1 to predict future total costs when sales volume is (*a*) 200,000 units and (*b*) 300,000 units. The buyer later finds out the home has a termite infestation. If a borrower computed the interest charged for the previous month on a $260,000 loan balance as $1,300, what is the borrower's interest rate to the nearest half percent? Tenancy from year to year. The commission to the listing broker will be 6%. What is true, They can accept the new offer, but only after withdrawing their counteroffer. An unlicensed assistant gets a call from a listing owner with questions about a contract- what should the assistant do? Melissa signed a listing agreement with Shane, a local real estate agent. What is considered evidence against a broker accused of discrimination? A license holder has just taken a class on networking and marketing through social media. A property manager is hired and signs a management agreement with the owner. in order to measure elevation, you need a? Which approach to value would MOST likely be useful to real estate brokers estimating the value of a single-family residence for sale in a subdivision? Which federal law requires that finance charges be stated as an annual percentage rate? In senior housing communities, at least one person over the age of 55 must be living in what percent of the units? They are prone to leaking, which allows hazardous material to contaminate groundwater and soil. Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for a conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800.