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51 Cards in this Set

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H agrees to purchase V's real estate for $230,000 and deposits $6,900 earnest money with Broker L. However, V is unable to clear the title to the property, and H demands the return of his earnest money as provided in the purchase contract. Broker L should:
A) Deduct his commission and return the balance to H.
B) Deduct his commission and give the balance to V.
C) Return the entire amount to H.
D) Give the entire amount to V to dispose of as he decides.
The correct answer is "C - Return the entire amount to H. " Brokers and salespeople only earn their commission when a transaction closes. Since the transaction was never completed, no commission is owed. Additionally, H is entitled to have all his earnest money returned since it was the seller, not he, who defaulted on the contract.
A buyer makes an earnest money deposit of $1,500 on a $15,000 property and then withdraws her offer before the seller can accept it. The broker is responsible for disposing of the earnest money by:
A) turning it over to the seller.
B) deducting the commission and giving the balance to the seller.
C) returning it to the buyer.
D) depositing it in his or her trust account.
The correct answer is "C - returning it to the buyer. " A contract only exists when it is both offered by the buyer and accepted by the seller. Since the second part of this requirement was never fulfilled, the buyer is entitled to have his earnest money returned.
Broker K arrives to present a purchase offer to Mrs. D, an 80 year old invalid who is not always of sound mind, and finds her son and her daughter-in-law present. In the presence of Broker K, both individuals persistently urge D to accept the offer, even though it is much lower than the price she has been asking for her home. If D accepts the offer, she may later claim that:
A) Broker K should not have brought her such a low offer for her property.
B) She was under undue duress from her son and daughter-in-law, and, therefore, the contract is voidable.
C) Broker K defrauded her by allowing her son and daughter-in-law to see the purchase offer he brought to her.
D) Her consumer protection rights have been usurped by her son and daughter-in-law.
The correct answer is "B - She was under undue duress from her son and daughter-in-law, and, therefore, the contract is voidable. " "Duress" is the application of coercion or pressure to influence a person to act in a way contrary to his/her best interests. Further, since voluntary participation is a key condition of any contract, Mrs. D could well be successful in such an action. A voidable contract is one that is able to be voided because Mrs D was under duress or undue influence.
The law that requires real estate contracts to be in writing to be enforceable is the:
A) law of descent and distribution.
B) statute of frauds.
C) parole evidence rule.
D) statute of limitations.
The correct answer is "B - statute of frauds. " Contrary to popular belief, the statute of frauds is not about specific actions defined as fraud, but the requirement in every state that certain documents be in writing, especially those pertaining to real estate. It's called the statute of frauds because it was first enacted in England in 1677 to prevent fraudulent claims of title.
A(n) _______ is when an owner takes his property off the market for a definite period of time in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price.
A) option
B) contract of sale
C) right of first refusal
D) installment agreement
The correct answer is "A - option " It's important to note that options generally give flexibility to only one side of the transaction. For example, let's say Barney is expecting a big promotion in six months and wants to buy Fred's house for $300,000 if it comes through. In exchange for keeping his home off the market for six months and agreeing to sell it to Barney for $300,000 at Barney's option, Barney gives Fred $3,000. The $3,000 is Fred's to keep no matter what. However, Barney is not obligated to buy Fred's house; it's his choice. Further, if he does get the promotion and wants to exercise his option, Fred must sell Barney his home for $300,000, even if market conditions have now made it worth more.
A breach of contract is a refusal or a failure to comply with the terms of the contract. If the seller breaches the purchase contract, the buyer may do all of the following EXCEPT:
A) Sue the seller for specific performance.
B) Rescind the contract and recover the earnest money.
C) Sue the seller for damages.
D) Sue the broker for non-performance.
The correct answer is "D - Sue the broker for non-performance. " While brokers and salespeople are responsible for bringing people together, they cannot be expected to know every detail of their circumstances or intent. Thus, if a buyer cannot get clear title or a seller is unexpectedly transferred, it is not the broker's fault the transaction failed and he or she bears no responsibility or liability.
To assign a contract for the sale of real estate means to:
A) Record the contract with the county recorder's office.
B) Permit another broker to act as agent for the principal.
C) Transfer one's rights under the contract.
D) Allow the seller and the buyer to exchange positions.
The correct answer is "C - Transfer one's rights under the contract. " Assigning a contract means to transfer it to another.
The property manager suspects that the tenants in a property are engaging in illegal drug trafficking. What should the property manager do?
A) Cancel the property management agreement.
B) Observe the property for 30 days and then tell the owner.
C) Notify the owner immediately of the suspicious activity.
D) Don't worry. It's the owner's problem.
The correct answer is "C - Notify the owner immediately of the suspicious activity. " The property manager is the owner's agent, but not his "proxy." That is, he must inform the owner but not act on his behalf without authorization. For example, while calling the police to investigate might be appropriate, if the manager's suspicions were groundless and he called the authorities without authorization, the tenants might be able to sue the owner.
A zoning change has been announced that will result in the loss of value of the property to a property owner. What should a property manager do?
A) Advise the owner immediately.
B) Terminate the property management agreement.
C) Follow the owner's instructions that were previously given.
D) Keep his/her mouth shut.
The correct answer is "A - Advise the owner immediately. " Again, the property manager is the owner's "eyes and ears" for protecting the owner's best interests. Anything that can impact the property's value in either a positive or negative way should be communicated immediately.
A broker and seller terminate the listing contract. An offer is received in the mail by the broker after the termination of the listing contract. The offer is for full price and includes all of the terms and conditions of the seller. Why is this NOT a valid contract?
A) There is no consideration involved.
B) No acceptance has been given.
C) No earnest money has been enclosed.
D) There is no current listing agreement.
The correct answer is "B - No acceptance has been given. " It has not been presented to or accepted by the owner. Remember, contracts aren't valid until both parties agree. However, even though the listing agreement has expired, the offer should be presented. If it's accepted and the transaction closes, the broker will generally be entitled to his or her full commission.
A real estate licensee has a buyer agency agreement. What is the seller in this situation?
A) a customer
B) a client
C) a fiduciary
D) an agent
The correct answer is "A - a customer " There's an important distinction between client and customer. Unless there is a specific agreement to the contrary, licensees represent only one side in a transaction. In this case, it's the buyer who is the client and it's the licensee's obligation to negotiate a deal that's in that person's best interests, not the one that's "fairest" to both parties.
An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?
A) He must exercise his option within 6 months under state law.
B) He must exercise his option under the terms of the option contract.
C) He must exercise his option when the optionor demands it.
D) He can exercise his option whenever he wants.
The correct answer is "B - He must exercise his option under the terms of the option contract. " Options are generally concerned with only two things: time and price. Whatever the parties agree to in those regards defines the terms of the option and the obligations of the parties.
When can a landlord evict a disabled blind or disabled tenant from the premises?
A) If the tenant gets a guide dog and the apartment policy does not allow pets
B) If the tenant insists on a handicapped parking place
C) If the tenant makes modifications to his unit at his expense
D) If the tenant has loud parties and makes too much noise, and is constantly disturbing other tenants.
The correct answer is "D - If the tenant has loud parties and makes too much noise, and is constantly disturbing other tenants. " The law requires "reasonable accommodation"--for example, allowing a guide dog for a blind person even if there's a "no pets" policy. However, that does not mean that all rules are suspended. Noise, safety, and "use of premises policies" may still be enforced.
Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker?
A) There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.
B) customer
C) agency
D) dual agency
The correct answer is "A - There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer. " Since each broker represents separate sides in the transaction, no relationship exists.
A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage?
A) void
B) voidable
C) breach
D) enforceable
The correct answer is "D - enforceable " Since there were no contingency clauses, and no restrictive covenants of record. If the buyer cannot secure a change of zoning , the contract is perfectly valid as stands and is enforceable between the parties.
The seller and the buyer finally agreed to a purchase price of $103,500.00 with the closing to occur on June 15, 1995. The taxes for the year 1995 in the amount of $2,500.00 have not been paid by the seller. (Taxes are paid in arrears). How much would the tax proration amount to, and how would it appear on a full settlement statement? Base your answer on a 365 day year, and the buyer is responsible for the day of settlement.
A) $1,130.14 debit the seller and credit the buyer
B) $1,354.17 debit the seller and credit the buyer
C) $2,500.00 credit the seller and debit the buyer
D) Nothing. The seller does not owe since the buyer is buying
The correct answer is "A - $1,130.14 debit the seller and credit the buyer " The seller would owe money, and the buyer would receive money, because the seller has not paid the taxes. $2500 divided by 365 is $6.849315 times the actual days of 165 is $1,130.14.
A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire?
A) 26-May-04
B) 15-Jun-04
C) 26-Aug-04
D) 15-Dec-04
The correct answer is "B - 15-Jun-04 " Listing contracts set forth the terms and conditions under which a broker will sell a property for his or her client. When the closing takes place, the terms of the contract have been fulfilled and it expires automatically.
The sellers listed their property for six months on February 26 for $104,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $102,000. The seller countered the offer on April 1 at $103,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?
A) $3,622.50. Debit the seller.
B) $7,140. Credit the seller.
C) $7,315. Debit the seller.
D) $7,245. Debit the seller.
The correct answer is "D - $7,245. Debit the seller. " Commissions are paid based on the actual selling price, not the listing price. Additionally, since the broker represented the sellers in this transaction, the commission is debited from their side of the ledger.
The seller and the buyer agreed to a purchase price of $103,500 with the closing to occur on June 15. The seller's loan balance after the June 1 payment was $39,440. with an interest rate of 10%.The monthly payment was $440 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank?
A) loan balance $39,440; interest due $10,350
B) loan balance $39,000; interest due $3,944
C) loan balance $39,000; interest due $862.50
D) loan balance $39,440; interest due $164.33
The correct answer is "D - loan balance $39,440; interest due $164.33 " Although many types of loans can become more complex in their calculations of remaining principal and interest at a particular point in time, in this case the interest portion of the payment is calculated simply by multiplying $39,440 by 10% and dividing by twelve. That results in monthly interest of $328.66, with half that amount, or $164.33 added to the principal payment at closing.
The buyer and seller agreed to a purchase price of $103,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement?
A) $103,500. Credit the buyer and debit the seller.
B) $100,000. Debit both the seller and the buyer.
C) $ 95,000. Credit both the seller and the buyer.
D) $ 82,800. Credit the buyer only.
The correct answer is "D - $ 82,800. Credit the buyer only. " Mortgage monies are credited to the buyer's side of the ledger as a portion of the funds he or she will use to complete the transaction. Once all the funds have been accounted for, the monies (less appropriate deductions) transfer to the seller.
A home improvement company was negotiating with a homeowner to add on two rooms to a home. The company agreed to take a second mortgage as long as the homeowner also included the rest of the property in the loan. The company and the homeowner agreed to a price and the company provided the necessary disclosure form on Monday and the homeowner signed the agreement at noon the following day. Assuming that the week had five business days, until what time could the homeowner rescind the loan?
A) Tuesday, midnight
B) Thursday, midnight
C) Friday, midnight
D) There is no rescission on a house.
The correct answer is "C - Friday, midnight " Because agreement was reached and SIGNED documents were provided on TUESDAY, Friday midnight ends the THREE-business-day period
The seller under a land contract is called:
A) the grantor.
B) the grantee.
C) the vendor.
D) the vendee.
The correct answer is "C - the vendor. " Land contracts are also known as installment contracts. In this type of arrangement, the buyer occupies the property, but the title is held in the name of the seller until some future point in time--often when the last payment is made.
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan?
A) 30 months
B) 36 months
C) 42 months
D) 48 months
The correct answer is "C - 42 months " Eight percent of $6,071 is $486 per year or $40.50 per month. $1,700 divided by $40.50 means the borrower held the loan for forty-two months.
The finance charges recorded on the Truth in Lending statements would include all of the following EXCEPT:
A) loan fees charged by the lender.
B) insurance premiums for mortgage insurance payment.
C) discount points and service fees.
D) recording fees and title insurance premiums.
The correct answer is "D - recording fees and title insurance premiums. " These are considered legal, not financing fees and therefore are not part of the Truth in Lending statement.
A mortgage broker:
A) arranges loans between borrowers and investors.
B) is a lender.
C) buys mortgages in the secondary mortgage market.
D) buys mortgages and resells them at a profit.
The correct answer is "A - arranges loans between borrowers and investors. " Mortgage brokers function much like independent insurance agents and represent a variety of lenders. Their role is to match the circumstances of individual buyers with the mortgage program best suited to their needs.
The Smiths' purchased a residence for $75,000. They made a down payment of $15,000 and agreed to assume the seller's existing mortgage, which had a current balance of $23,000. The Smiths' financed the remaining $37,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a:
A) wraparound mortgage.
B) package mortgage.
C) balloon note.
D) part purchase mortgage.
The correct answer is "D - part purchase mortgage. " Also known as a "purchase money second," this is a streamlined and often cost-effective financing option.
On a $50,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender?
A) $49,000.00
B) $50,000.00
C) $51,000.00
D) $52,000.00
The correct answer is "C - $51,000.00 " One point equals one percent; thus two points are two percent of $50,000, or $1,000, which becomes part of the buyer's total obligation to the lender.
The discount points charged by a lender on a federal VA or FHA loan are a percentage of the:
A) sales price.
B) appraised price.
C) loan amount.
D) down payment.
The correct answer is "C - loan amount. " Like points, discount points are one-time charges equal to one percent of the loan amount for each point charged.
An increase in the availability of money would lead to which effect?
A) Interest rates would go up.
B) Interest rates would go down.
C) Interest rates would NOT be affected due to RESPA guidelines.
D) Interest rates would NOT be affected due to TRUTH IN LENDING.
The correct answer is "B - Interest rates would go down. " Just like most things in a free market economy, mortgage loans are subject to the laws of supply and demand. Thus, when there is more mortgage money in the market place "looking for a home," borrowers have more choices, which leads to increased competition among lenders, which leads to lower interest rates.
When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called:
A) an escalation payment.
B) a balloon payment.
C) a satisfaction payment
D) an acceleration payment.
The correct answer is "B - a balloon payment. " Typically, mortgages with balloon payments are used as a creative financing tool in which buyers plan to refinance the balance in three to five years with better terms than they can qualify for now.
In an installment land contract, what type of title did the seller retain?
A) joint
B) legal
C) equitable
D) record
The correct answer is "B - legal " In this type of contract, the BUYER doesn't receive legal title to the property until the final payment is made. The BUYER receives equitable title at closing, and upon final payment to the seller receives legal title.
Which of the following is true of a second mortgage?
A) It has priority over a first mortgage.
B) It cannot be used as a security instrument.
C) It is not negotiable.
D) It is usually issued at a higher rate of interest.
The correct answer is "D - It is usually issued at a higher rate of interest. " Second mortgages carry higher risk for lenders because they're "second" in line after the first mortgage holder. In case of foreclosure, that means the first mortgage holder is paid in full before any remaining monies are distributed. This added exposure typically results in higher interest rates.
Usury MOST nearly means:
A) making loans without the benefit of co-signors.
B) lending money at fluctuating interest rates.
C) being capable of multiple usage.
D) illegal interest.
The correct answer is "D - illegal interest. " Each state sets its own ceiling for the maximum interest rate lenders may charge. Rates above that ceiling are considered usurious and illegal. No reputable lender exceeds those rates and those that make a practice of it are commonly known as loan sharks.
A borrower bought a $74,000 house with no down payment. The loan was probably:
A) a conventional insured loan.
B) a VA loan.
C) an FHA loan.
D) a conventional loan.
The correct answer is "B - a VA loan. " VA loans are zero-down instruments, while FHA loans permit low down payments in the 5% range.
A house sold for $42,000. The buyer made a 20% down payment. Monthly interest on the loan was $252. What was the interest rate on the loan?
A) 5%
B) 7%
C) 9%
D) 11%
The correct answer is "C - 9% " With a 20% down payment of $8,400, the buyer had a mortgage of $33,600. Since interest is expressed in annual terms, multiply the monthly payment of $252 times twelve. That yields an annual interest cost of $3,024, divided by the principal balance of $33,600, yields an annual rate of 9%.
Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied?
A) amortized loan
B) annuity loan
C) acceleration loan
D) assemblage loan
The correct answer is "A - amortized loan " This question is a formal description of amortized loans--the most common form of mortgage where monthly payments include both principal and interes (as opposed to balloon or interest-only seconds). Typically, monthly payment amounts remain constant, while the interest portion is higher in the earlier years, giving homeowners a larger tax deduction with higher percentages of principal paid in the later years.
Under RESPA, a copy of REAL ESTATE SETTLEMENT COSTS AND YOU must be given:
A) within one day before closing.
B) at the time of loan application, or within 3 days of application.
C) within 5 days of application.
D) at closing.
The correct answer is "B - at the time of loan application, or within 3 days of application. " The intent of RESPA--the federal Real Estate Settlement Procedures Act--is to make borrowers more aware of costs and charges. Accordingly, it should be given at the time of application and no later than three days after that.
The clause in a trust deed or mortgage which permits the mortgagee to declare the entire unpaid sum due upon a default by a mortgagor is called:
A) a judgment clause.
B) an acceleration clause.
C) an escalator clause.
D) a forfeiture clause.
The correct answer is "B - an acceleration clause. " "Acceleration clauses" are stipulations that if certain events occur, such as not making payments, the entire amount of the mortgage can become due. Most typically, this is seen in "due on sale" clauses that require the mortgage balance be paid in full at the time the house is sold.
An impound or reserve account MOST benefits whom?
A) the borrower
B) the lender
C) the trustee
D) the trustor
The correct answer is "B - the lender " Also known as escrow accounts, impound accounts accumulate funds from closing costs and monthly payments to ensure that property taxes and homeowner's insurance are kept current.
The lender is not insured or guaranteed against a loss, by reason of the borrower's default in repayment, under which type of loan?
A) FHA
B) Conventional
C) VA
D) GI
The correct answer is "B - Conventional " Government-sponsored loan programs such as FHA are not actually loans, but guarantees to lenders to encourage them to make favorable mortgages available to qualifying individuals.
The lender is not insured or guaranteed against a loss, by reason of the borrower's default in repayment, under which type of loan?
A) FHA
B) Conventional
C) VA
D) GI
The correct answer is "B - Conventional " Government-sponsored loan programs such as FHA are not actually loans, but guarantees to lenders to encourage them to make favorable mortgages available to qualifying individuals.
When must licensees give prospective buyers the written mortgage disclosure statement?
A) As soon as they express interest.
B) Within three business days of receiving a completed loan application.
C) Before the borrower becomes obligated to accept the note.
D) b or c.
The correct answer is "D - b or c. " Whichever comes first.
Who may make withdrawals from a broker's trust account?
A) Only the broker who maintains the account.
B) Only the broker in charge of the office.
C) The broker or a designated other.
D) The office manager.
The correct answer is "C - The broker or a designated other. " As long as the person has the broker's written authorization, a licensed salesperson or broker may make withdrawals. Additional, an unlicensed employee of the firm may also make withdrawals if he or she has a fidelity bond at least equal to the maximum amount to which that person has access.
What is a "liquidated damages" clause in a contract and is it legal?
A) It is a clause that specifies a certain dollar amount that will be paid in "damages" if a party breaches a contract. It is legal.
B) A legal insurance clause that protects the buyer in case a property becomes damaged before escrow closes and he or she can take possession.
C) An amount over and above the amount due on a mortgage that a lender may collect as additional damages if a borrower defaults on a loan. It is not legal.
D) An amount the buyer of a new home may collect from a builder if a dwelling is not ready for occupancy within thirty days of the agree-upon closing date. It is legal, but not generally enforceable except in cases of gross failure to perform as promised.
The correct answer is "A - It is a clause that specifies a certain dollar amount that will be paid in "damages" if a party breaches a contract. It is legal. " Although legal, liquidated damages clauses aren't viewed with much favor by California courts because of the inherent vagueness about the true costs of "damages" and a tendency towards abuse.
What is the maximum amount that can be paid from the Real Estate Education, Research and Recovery Account on behalf of a licensee in a judicial action?
A) $20,000
B) $40,000
C) $50,000
D) $100,000
The correct answer is "D - $100,000 " Intended as a last resort, the Recovery Fund reimburses consumers for losses suffered because of fraud or other acts of misconduct committed by a licensee. It's important to note that the ceiling is $20,000 per transaction, up to a combined total of $100,000 per household.
A neighborhood is overwhelmingly white while an adjoining neighborhood has recently experienced an influx of homeowners from another ethnic group. A real estate salesperson begins canvassing the white neighborhood telling people they should sell now because the minorities will soon be moving in and property values could drop. Which of the following violations is that person guilty of?
A) "Panic peddling."
B) Blockbusting.
C) Steering.
D) Both a and b.
The correct answer is "D - Both a and b. " The terms mean the same thing and refer to attempts to create and exploit fear about property values based on racial, religious or other prejudices.
In one of her weekly sales meetings, broker Elizabeth Johnson made the following two statements to her sales staff: (1) "We're going to solicit listings in the Rancho Los Cabos neighborhood because a large number of black and Asian buyers are moving in." (2) "Only speak to the white homeowners, because the others have only recently moved in and won't be interested in selling." Which, if either, of these statements is legal?
A) #1 is illegal, but #2 is legal.
B) Both #1 and #2 are legal if part of a conversations kept within the firm and not discussed publicly.
C) Both #1 and #2 are illegal.
D) #1 is legal, but #2 is illegal.
The correct answer is "C - Both #1 and #2 are illegal. " The first statement is another example of attempted "blockbusting." The second is a form of "steering" -- encouraging people of a particular group to buy in one community or avoid another.
Allan is a homeowner who has had an attachment lien placed on his house by a creditor. Which of the following will NOT release the lien.
A) A written release by the creditor.
B) A satisfied judgment in favor of the plaintiffs.
C) Allan's death.
D) A court order.
The correct answer is "C - Allan's death. " By definition, "attachment" means a person's property is placed in the custody of the courts pending outcome of a suit. Therefore, only resolution of the case, not the defendant's death, can remove the lien.
Allison has just qualified for her salesperson's license. How much time does she have to file her application to practice?
A) Two years from the date she passed the exam.
B) One year from the date she passed the exam.
C) Two years from the date she was notified she had passed the exam.
D) One year from the date she was notified she passed the exam.
The correct answer is "B - One year from the date she passed the exam. " Although most people who pass the exam are anxious to get their license and begin practicing real estate, the rules do allow up to one year to make the application.
Palisades Construction is completing a new home and must back-fill. What is back-fill?
A) Dirt, usually left over from excavation, that is used to fill in space around a foundation or other structure.
B) Dirt from an excavation that must be hauled off a property.
C) Dirt or topsoil that is used to berm and create landscaping interest.
D) None of the above
The correct answer is "A - Dirt, usually left over from excavation, that is used to fill in space around a foundation or other structure. " Backfill has no negative connotations, it's simply that excavations for foundations and such must be wider than the structural elements to permit space to work. Once complete and cured, this space must be filled in again for stability and drainage.
What is the maximum distance allowed between wall studs in most building codes?
A) twenty-four inches on center.
B) Sixteen inches on center.
C) Twelve inches on center.
D) Six inches on center.
The correct answer is "B - Sixteen inches on center. " Wall studs form the vertical wood framing members to which dry wall or other material is attached to form the interior walls and exterior sheathing. "On center" means the distance from the center of one vertical stud to the center of the next. Sixteen inches is the accepted standard because it balances the need for strength and rigidity with cost and ease of workability for electrical and HVAC systems.