Real Estate Agent Practice Test

Front 1

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

Back 1

ANS. B - $8,100

Front 2

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

Back 2

ANS. B -50

Front 3

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

True

False

Back 3

ANS. FALSE

Front 4

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

Back 4

ANS. D

Front 5

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

Back 5

ANS. C

Front 6

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

Back 6

ANS. D

Front 7

You can only legally receive a commission from your employer.

True

False

Back 7

ANS. TRUE

Front 8

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.

Back 8

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

Front 9

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.

Back 9

ANS. C - Federally related mortgage loans

Front 10

If a deed is valid it must be:

a. Signed

b. Recorded

c. Witnessed

d. All of the above.

e. Both a and c

Back 10

ANS. E - Both a and c

Front 11

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

True

False

Back 11

ANS. TRUE

Front 12

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.

Back 12

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

Front 13

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

Back 13

ANS. B - One day before closing

Front 14

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

Back 14

ANS. A - 5 % vacancy

Front 15

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

Back 15

ANS. B - $118,750

Front 16

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.

Back 16

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.

Front 17

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

Back 17

ANS. FALSE

Front 18

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

Back 18

ANS. D - Number of children

Front 19

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.

Back 19

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

Front 20

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.

Back 20

ANS. D - All of the above.

-a. Competency;

-b. An offer and an acceptance;

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

Front 21

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

Back 21

ANS. FALSE

Front 22

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

Back 22

ANS. C - Building permit violations

Front 23

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

Back 23

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

Front 24

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

Back 24

ANS. D - Conventional 30-year ARM

Front 25

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.

Back 25

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