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25 Cards in this Set

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You sell a house for $135,000. The selling price includes the standard six percent commission rate your brokerage charges. What is your portion of the commission?

a. $4,050

b. $8,100

c. $2,025

d. None of the above

ANS. B - $8,100

The zoning laws in your town require an apartment building to provide two and a half parking spaces for every 1,000 square feet of inhabited space. A local apartment building has 20,000 square feet of apartments. How many parking spaces should it have?

a. 40

b. 50

c. 45

d. 55

ANS. B -50

The presence of lead paint in a home must only be disclosed if the home is being purchased using an FHA loan.

True

False

ANS. FALSE

Of the many expenses involved with owning a house, which of the following are tax-deductible?

a. Taxes

b. Insurance

c. Interest

d. Both a and c

ANS. D

The monthly net income on an investment of $115,000 if the rate of return is 12 ½ percent is _____________.

a. $1,150.00

b. $7,666.67

c. $1,197.92

d. $14,375.00

ANS. C

You sell a home for a client and the client receives $40,000 in cash after she pays off her mortgage. The mortgage payoff amount was $80,000. The client paid six percent in commissions. What did you sell the house for?

a. $106,000

b. $120,000

c. $126,000

d. $127,200

ANS. D

You can only legally receive a commission from your employer.

True

False

ANS. TRUE

An offer comes in on a house you are listing, but it does not have an escrow check. What should you do?

a. Give the offer to your client.

b. Call the buyer's agent and tell him you need an escrow check or you can not submit the offer to your client.

c. Give the offer to your client, but suggest that she make a counteroffer and ask for an escrow check.

d. Any of the above.

ANS. C - Give the offer to your client, but suggest that she make a counteroffer and ask for an escrow check.

The Real Estate Settlement Procedure Act (RESPA) applies to what types of real estate transactions?

a. All cash sales

b. Sales invovling seller financing

c. Federally related mortgage loans

d. Sales involving rental agreements

e. All of the above.

ANS. C - Federally related mortgage loans

If a deed is valid it must be:

a. Signed

b. Recorded

c. Witnessed

d. All of the above.

e. Both a and c

ANS. E - Both a and c

An agent, broker or lender who is "blockbusting" is trying to scare owners in a neighborhood into selling their property.

True

False

ANS. TRUE

A buyer is applying for an ARM loan. How do the payments on such a loan change?

a. They stay the same over the course of the loan.

b. The interest rate changes every year, which can raise or lower the total payment.

c. The interest rate goes up every year.

d. The interest rate goes down every year.
ANS. B - The interest rate changes every year, which can raise or lower the total payment.

How much time must the parties to a real estate closing be given to review the HUD statement?

a. One hour before closing

b. One day before closing

c. Three days before closing

d. One week before closing

ANS. B - One day before closing

Which of the following is considered a good balance between the supply of and demand for apartments?

a. 5 percent vacancy

b. 10 percent vacancy

c. 7 percent vacancy

d. 2 percent vacancy

ANS. A - 5 % vacancy

You are trying to price a property. Five years ago it was sold for $125,000, but property values in this particular neighborhood have decreased by an average of 5 percent since then. What is the rough value of this property?

a. $117,500

b. $118,750

c. $118,000

d. $119,000

ANS. B - $118,750

A homeowner has a mortgage with a fixed interest rate. Under what circumstances would her payments change?

a. None; the payment will not change over the life of the loan.

b. The property taxes go up or down.

c. The cost of homeowner's insurance goes up or down.

d. Either b or c.

ANS. D - Either b or c




-b. The property taxes go up or down.


-c. The cost of homeowner's insurance goes up or down.

It is legal for you to work for more than one broker at a time, as long as you disclose any conflicts of interest.

True

False

ANS. FALSE

Which of the following types of discrimination are prohibited by the Fair Housing Act of 1968?

a. Behavior

b. Age

c. Marital Status

d. Number of children

ANS. D - Number of children

You receive an offer on a listing and an escrow check. Your client accepts the offer. What should you do with the escrow check?

a. Turn it over to your broker as soon as possible.

b. Deposit it into the broker's account.

c. Keep it and write a check to your broker.

d. Put it in the file and hold it until the closing.

ANS. A - Turn it over to your broker as soon as possible.

A valid real estate contract must contain which of the following elements?

a. Competency

b. An offer and an acceptance

c. A "legal object", i.e., a property

d. All of the above.

ANS. D - All of the above.


-a. Competency;


-b. An offer and an acceptance;


-c. A "legal object", i.e., a property

You can only appraise a listing if you are a certified appraiser, unless it is a residential property and you are appraising it for listing purposes only.

True

False

ANS. FALSE

A basic owner's title insurance policy will cover all of the following except ________________.

a. Incorrect signatures on documents

b. Encumbrances and judgments

c. Building permit violations

d. Defective recordation
ANS. C - Building permit violations

What must a homeowner in foreclosure do to exercise his right of redemption?

a. Pay the entire mortgage

b. Pay the entire mortgage, plus interest

c. Pay the entire mortgage, plus court costs and legal fees

d. Pay the entire mortgage, plus court costs, legal fees and interest

ANS. D - Pay the entire mortgage, plus court costs, legal fees and interest

Which of the following types of mortgages will probably have the lowest initial interest rate?

a. Conventional 30-year fixed rate

b. 30-year fixed rate FHA loan

c. Conventional 15-year fixed rate

d. Conventional 30-year ARM

ANS. D - Conventional 30-year ARM

A woman is deeding her mortgage-free house to her son. Is the deed required to show "good consideration" to be valid in this case?

a. Yes, because all deeds must show good consideration to be valid.

b. No, because family transfers are exempt from the law.

c. Yes, unless she is deeding it to him in her will.

d. No, because the house does not have a mortgage and there is no lien holder involved.

ANS. C - Yes, unless she is deeding it to him in her will.