Real Estate Practice Test 3

Contract law requires earnest money be submitted with a contract of sale in the following amount

When a contract of sale is signed and the buyer’s earnest money check is deposited in the special account, the money belongs to?

In the listing agreement, the broker agrees to do his best to procure a buyer. This describes which of the following contract attributes?

All of the following events would terminate a listing agreement EXCEPT

A broker negotiated a sale at $400,000. The buyers need a mortgage of $360,000. The lender will approve only an 80% loan-to-value (LTV) mortgage.

The broker prepares a fake second contract of sale with the purchase price of $450,000, has both parties sign it, and completes the contract.

Which of the following answers best describes what just happened?

Sonny’s mortgage loan is an amortizing loan. What does this mean?

Gail and Bobby have applied for a Federal Housing Administration (FHA) loan. The mortgage will be

An agent sells another firm’s listing for $950,000. The 7% commission is split 50/50 between the two companies. The agent received 60% of her broker’s share.

How much does she receive?

Andrew leased 4 apartments in the Langston Apartments for a total monthly rent of $4,500. If this figure represents an 8% annual return on Andrew’s investment, what was the original cost of the property?

Capitalization of income attributable to real property is BEST defined as

The Real Estate Settlement Procedures Act (RESPA) requires that a good faith estimate (GFE) of a borrower’s closing costs be provided to the borrower

When Floyd and his wife bought a townhouse from his wife’s parents, they received only a quitclaim deed. This was most likely because

A property manager forecasts expected revenues and expenses in a(n)

When Anton sells his farm, which of the following will NOT be a part of the real estate?

Marla purchased a cottage bordering a stream. The rights she has in relation to the stream are

Ryan is an agent working for a broker named Donald but recently became an agent under another broker named Karla. Ryan had five listings he brought to Donald prior to transferring.

What happens to the five listings?

A real estate broker must report any cash deposit that is more than

Matthew signed a 120-day listing with FARE Realty. After 80 days, Matthew decided not to sell. He told FARE Realty he no longer wanted them to market his house.

When is the agency of FARE Realty terminated?

Caveat emptor is a principle that states if the purchaser buys a faulty title, the responsibility for the problem lies with

The Americans with Disabilities Act of 1990 would affect which of the following?