They have the right to take your land for the public good. Melissa signed a listing agreement with Shane, a local real estate agent. $$ Nothing- his property is automatically considered a non-conforming use. Which of these is an example of a general agency relationship? This free practice exam is here to help you master the state-specific portion of the Colorado real estate exam. What does a standard title insurance policy do? In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is: Which is exempt from the federal Fair Housing Act? You will have between 2-4 hours to complete your exam. They do not want it and they sell it. Novation Substituting a new obligation for an old one. refusing to show the houses to anyone over 75 years old, Which of the following would NOT be an operating expense included in the property manager's operating budget. It has come to your attention that you have a zoning violation on the property. ALL REAL ESTATE credit transactions except for commercial loans. Ace these, and you know you're ready to grab your real estate license ! Which statement is TRUE of this arrangement? He has hired an agent to lease the houses. A buyer's agent has helped a buyer to find a home. The buyers have not responded to the counteroffer. Where does the secondary market get its funds? According to the Statute of Frauds, which of the following leases must be in writing? *, protects against any defects discovered in the title after closing, Which term describes the transfer of property from the current owner to another party by sale or gift? What is the difference between an implied contract and an express contract? An office space is 24 feet long and 27 feet wide with 9-ft ceilings. What can they do to avoid this fee? Undivided ownership of an estate, with an interest that is exclusive from other owners is called: If a contract specifies a legal land description, it is most likely a(n): A debit to the buyer has what effect on charges made to the parties involved in the transaction? The owner of a house wants to fence the yard for the family pet. $29.99. Estate for years. You have built a 10 foot pier at the water's edge. T22. Received cash on account from Scott Company,$125.00. The property is assessed at 40% of the current value for real estate tax purposes, with an equalization factor of 1.5 applied to the assessed value. the duty of confidentiality never expires and the agent must keep that information confidential forever, A metes and bounds description will always. The landlord uses the contractor who does not do a good job. The exit ramp will greatly increase the value of the seller's property. C6. If a broker's computers are stolen what steps could have been taken to protect records? Which of the following statements may represent the unauthorized practice of law? A physical or mental impairment that substantially limits one or more of the major life activities of an individual. Melissa was then contacted by a neighbor who agreed to purchase the house, but Shane still received compensation. This is called. Which of the following is a participant in the secondary mortgage market? What should you do? 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. Police powers include all of the following EXCEPT? plumbing work that was completed but never paid for. Arturo is buying a house for $400,000. He has met all the terms and conditions of the listing. | 5 | 300,000 | 230,000 | | 11 | 100,000 | 100,000 | Solve the application problem. A tenant is aware that his lease will expire at the end of the month. Journalize the transactions completed during March of the current year. An alienation clause would require a borrower to: pay the mortgage debt in its entirety upon the property being sold. A grantor conveys property by delivering a deed. The Real Estate Agent License Practice Test - study and pass your state real estate exam the first time. A property is bought based on fraudulent statements by the listing broker. After his next closing, he replaces the client's deposit in his trust account. An individual who owns a living unit plus a share in a common recreation area and parking area in fee most likely owns a: Three women owned a house as joint tenants. What is this right called? (A front foot refers to frontage and is the width of the lot.) The broker is BEST described as a(n): In most suburbs, which method of description would be used today? When the offeree gives the offeror notice of the acceptance. They have found a property that they would like to purchase now. increases the amount due from the buyer at closing. The landlord pays the expenses of the property. 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. The tenant's lease has expired, but the landlord permits the tenant to stay in the apartment until the building is torn down. *, In the sales comparison approach to property valuation, what does the principle of substitution state?*. I highly encourage you guys to grab a pencil and paper and follow along. 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. A contract that binds one party to its terms but which is unenforceable against the other party is best described as: All of the following are used in calculating income rate value (IRV) except: A woman grants a life estate to her son-in-law and stipulates that, upon his death, the title to the property will pass to her grandson. A buyer is aware that the interest rates should go down over the nest few months. An appraiser is using the Market Data Approach to determine the value of a residential property. 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. What approach to appraisal will he use to determine his opinion of value? Broker B has signed a Buyer Representation Agreement with his clients. The title company has compensated the buyer for the loss. **Transactions:** Which of the following best describes an FHA loan? Our real estate practice exam pulls from a large pool of questions, so you can expect a different study experience each time you take it. Which type of loan is this an example of? The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. **Required** He has requested an assigned reserved space near to his unit. A landlord leased space in his new retail property to an inexperienced business person. | 2 | 160,000 | 100,000 | | 8 | 280,000 | 160,000 | Who provides flood insurance to homeowners? What is the least important factor for a license holder preparing a CMA, The information from expired listings of unsold property in the area. Which of the following is unlikely to have a negative impact on seller's credit score? 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. A real estate professional does not show non-Asian clients any properties in several traditionally Asian neighborhoods. Find the slope of the graph of the following equation. Which of these is a protected class under the federal Fair Housing law? Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next 6 months. Which of these is a naturally occurring mineral that is commonly used in insulation, but if airborne or inhaled, can cause severe respiratory health issues? What is the difference between a bill of sale and a deed? What method of land description is he using? 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? \text { Temporary investments } & 1,500 & 1,550 \\ In an express contract, the parties explicitly state the terms and conditions of the agreement, whereas in an implied contract, they do not. They would like to accept this new offer. Which of the following is the best definition of market value? She has decided to market a new listing on these sites. Hit us up with an email to info@uniontestprep.com or check us out on Twitter, Facebook, YouTube, Instagram, or Pinterest. the process of determining the present value of a property from it's future income. The new owner wants John to move out. both the new owners and the previous owners. Mortgage notes made in the primary market are bought and sold. Wetlands typically contain which of the following? A property owner has installed a chain link fence on his property. He must pay a loan balance of $180,530 and closing costs at $10,000. In the second year the landlord dies. A property owner has the right to tell other people that they cannot trespass on their property. How long after an incident does a victim of housing discrimination have to file a complaint with HUD? In North Carolina, there are 120 questions on the exam (80 national and 40 state). a consumer of real estate services who has entered into an agency relationship with a broker or another licensee employed by a broker. What is true? Until then, what does Rebecca have? The annual tax bill is $2,008. 5 x-y=-2 A sub-divider who does not have a real estate license hires a broker to see her property. an easement is a benefit to the dominant property owner. When both her parents have died, ownership of the office building will revert to the woman. An agent has acted without authority to do so. Inform the buyer 8. Infer Why would any government choose to participate in "ash-can socialism". Find your state and pick the right real estate exam prep package for you. What are Mark's rights with respect to a commission from the sellers? M2. Rent Expense Liens are prioritized by date of creation, with older liens being paid off first. Tenancy from year to year. \begin{array}{lrr} the tenants can stay until the end of the lease. Long before the debt is satisfied, the balance is due in a payment substantially larger than all the others. Which situation does NOT violate the federal Fair Housing Act: d. A widow's insistence on renting her spare bedroom only to another widowed women, d. Section 16 lies to the north of Section 21. What can P do? What are the requirements/ criteria for real estate to have values? Contact. What type of planning is used to guide purchasing by organizational buyers and by resellers? Sold services on account to Scott Company, $225.00. take the information to the listing broker. A young couple leases an apartment in an apartment complex for one year. Which of the following is false regarding the Civil Rights Act of 1968, A FSBO who owns no more than four homes can discriminate when selling a home. Find the equivalent earnings if this amount is paid (a) weekly, (b) biweekly, (c) semimonthly, and (d) monthly. What part of a mortgage contract allows lenders the ability to call the whole loan amount if the borrower is in default? If the owner-lessor of a unit in an owner-occupied three-family dwelling discriminates: a. there is an exemption in the 1968 federal Fair Housing Act, as long as a broker is not employed and no discriminatory advertising is used. Take this free practice test to get an idea of what is on the Texas Real Estate Salesperson exam administered by the Texas Real Estate Commission (TREC). A broker has written permission to represent both the seller and the buyer as a dual agent. 19. Which of the following properties would be the least desirable neighborhood? The listing and selling brokers agree to split a 7% commission 50-50 on a $295,900 land sale. Which term describes this contract? What is required? Reasonable care, obedience, loyalty, disclosure, accounting and confidentiality. Ben manages an apartment complex that has an effective gross income of $100,000. What is the total sale price? R2. If John dies and Mary becomes the owner of their home, what type of ownership did they have? That section can be used to study the topics featured on those . What type of lease can he enter into with the tenant that will allow the landlord to benefit from the tenant's success? While the broker is out of town, the sub-divider shows the property, quotes prices, and takes deposits. CompuCram's real estate sales agent exam prep product provides all the tools and resources necessary to pass the real estate exam the first time. A seller is closing on the sale of his home on April 23rd. The corporate officer must be the president and CEO of the corporation to engage in business on behalf of the corporation. 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. About 2 hours and 40 minutes; Part 2: State Real Estate Laws. Received cash from sales,$130.00. A, B and C are joint tenants. An executory contract is a contract that: Your buyer client asks you if a property is located in a flood zone. (The loan factors is $6.00). Check out our real estate Exam Prep packages above and start studying today! | 1 | 320,000 | $160,000 | | 7 | 340,000 |$220,000 | The listing expired. What type of permission allows an individual property to deviate from a specific provision of a zoning ordinance? The rules are in conflict with one another. The seller is stumbling and smells of alcohol. The tenant becomes ill from the mold. The agent needs to furnish the buyers with a pamphlet approved by the EPA concerning lead based paint prior to closing. His principal has found out about the actions and accepted them. What is the advantage to the borrower of a VA loan? The tests cover such subjects as forms of ownership, physical descriptions, valuation and regulation. Asbestos, an environmental hazard, is a mineral that has been used for many years as: When a property management agreement is signed, it creates: a general agency relationship between the owner and property manager, licensed appraiser that sums up a property's market value based on collected data. If the assessment is 85% of the market value, what is the market value? John has a loan with equal regular payments of principal and interest. When should an agent advise a client to get title work done? An example of a voidable contract is a contract that: is made with one party who is not competent. 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