Real Estate Practice Test 5

An earnest money deposit, if offered, is given to the broker at the time a sales contract is authorized by the seller and presented to the buyer.

Absent any specific instructions in the sales contract, the broker has a legal responsibility to:

An option:

Dennis is mentally incompetent and has a court-appointed guardian. Dennis enters into a contract to buy a house from Dorie, an adult.

Which statement is TRUE?

An enforceable agreement between competent parties in which each party acquires a benefit or right is called a

Private mortgage insurance (PMI) is required for conventional loans when the following occurs

Which of the following instruments is used to pledge property as security for the repayment of a home loan?

Erica purchased her house for $330,000 and sold it a few years later for $425,000. What was Erica’s rate of profit?

A country home sold for $385,000. The broker received $30,800. What rate of commission did this broker charge?

The gross income of an office building is $122,000. Operating expenses are $70,000. The capitalization rate is 10%. What is the value estimate?

Zoning or deed restrictions on physical development fall under which category of forces affecting real estate value?

Edwin sold Barry a parcel of land; title has passed, but to date Barry has not paid the purchase price in full as originally agreed. If Edwin does not receive payment, which could he use to enforce the payment?

A property manager is responsible for maintaining the value of a property while

Curb appeal refers to

What is the purpose of a deed?

The MOST complete type of ownership in real estate is

When an agent represents the buyer and not the seller of a property, he/she is engaging in

James lists his house with Sam, a licensed broker. James offers a bonus commission of $500 to the agent who brings a good buyer before May. Samantha, a licensed agent, who is associated with the cooperating firm of Tommy Lang, effects the sale on April 1.

Who will receive the commission?

Maria, a licensed broker, does not think the seller will seriously consider an offer she received for 15% less than the listing price. Maria should

In order to successfully sue a broker for misrepresentation, a buyer must be able to prove that

According to HUD standards, which of the following would be an acceptable neighborhood advertisement?