Real Estate Practice Test 2

Charles wanted to offer to purchase Tony’s home and engaged Mary to be his agent. When the offer was delivered to Tony, it had a provision limiting the time for acceptance to 48 hours.

Tony rejected the offer. After thinking about it for 36 hours, Tony decided he wanted to do the deal.

Which of the following best describes the status of the contract?

Mark, a licensed broker, conveys an offer from his client to Janet, a licensed agent, wherein Mark’s client wishes to purchase a 200-acre farm from Janet’s client for $500,000, two 5-year-old tractors and 200 sheep.

What would the consideration offered by Mark fall under?

The amount of commission a broker shares with his/her agent is

The listing agreement whereby a principal lists property for sale with a number of brokers is known as a(n)

When an agreement of the parties is demonstrated by their acts and/or conduct, this is known as what type of contract?

The Federal Housing Administration (FHA) insures various types of loans to provide housing EXCEPT for the following type of loan?

A mortgage which requires a large final principal payment can be BEST described as a(n)

In order for a seller of a property to realize a final net amount of $362,000 after paying a broker’s commission of 6%, what must the minimum sales price be (rounded to the nearest dollar)?

A broker is about to receive a 7% commission on the sale of a $750,000 home. What will be the broker’s commission?

Which valuation approach is used when appraising a single use property when sales of comparable properties are not available?

The Real Estate Settlement Procedures Act (RESPA) explicitly prohibits an agent from paying kickbacks or unearned fees. The act does NOT prohibit a

A notary’s acknowledgment of the signature on a deed is necessary

Glenda, a prospective tenant of the Astor Apartments, tripped while looking at a vacant apartment. Expenses for Glenda’s injuries are covered by the property owner’s

The 6 categories of real property are residential, commercial, industrial, agricultural, special purpose, and

If Billy owns his home free and clear of encumbrances and has the right to devise it to his daughter, he owns a(n)

Which type of deed does NOT contain covenants or warranties?

How frequently should the contract between a broker and an independent contractor be renewed?

Cathy purchased a house in 1985 for $20,500. Cathy knows properties have appreciated and asks the broker to sell it for $200,000. The broker knows the value could be more than $300,000.

The broker should do which of the following?

Selling a home “as is” does NOT relieve the seller from defects to the property that affect the value when

A buyer, before any binding contract of sale is signed, is entitled to receive a property condition disclosure statement from the seller, and