PEARSON VUE UPDATED EXAM STUDY GUIDE QUESTIONS
AND SOLUTIONS RATED A+
✔✔If a Purchase and Sale Agreement for a commercial property includes a due
diligence contingency for the buyer, then the buyer may:
A.
continue the due diligence period by demand
B.
require the seller to repair items requested by the buyer
C.
require the seller to arrange a second inspection after items are repaired
D.
terminate the Purchase and Sale Agreement if the buyer is not satisfied with the results
of an inspection - ✔✔D
✔✔A licensee crafts an online advertisement for a beachfront property in which the
licensee describes the property as having "the best ocean view in town." This is most
likely an example of:
A.
steering
B.
deception
C.
puffing
D.
misrepresentation - ✔✔C
✔✔Due to the homeowner's disability exemption, property taxes of $4,000 are reduced
to $3,000 in a transaction. However, the listing licensee fails to disclose to the buyer the
difference in the amount of property taxes to be paid by the buyer. Failing to disclose
this material fact is an example of:
A.
exemption
B.
misrepresentation
,C.
misappropriation
D.
mutual regression - ✔✔B
✔✔The final decision in establishing the listing price is made by the:
A.
salesperson
B.
broker
C.
appraiser
D.
owner - ✔✔D
✔✔A visually-impaired person with a service animal makes application for rental of an
apartment that has a vigorously enforced "no pets" policy in the building. According to
the Federal Fair Housing Act, the owner may:
A.
refuse to rent to the applicant as a result of the policy
B.
require the person to house the animal outside of the apartment
C.
require the person to restore any damage to the apartment that results from the animal
D.
increase the customary security deposit - ✔✔C
✔✔One of the required elements of a valid real estate sales contract is that it MUST:
A.
be signed by the seller
B.
provide for possession of the property by the buyer
C.
provide for installment payments
, D.
contain a metes and bounds description of the property - ✔✔A
✔✔Which of the following entities is an example of encroachment?
A.
A legal access road that runs across a property from a public road to another property
B.
A storage building that extends over the boundary line between the property of the
building's owner and an adjacent property
C.
Timber that has been cut down on the property by a tenant for use as firewood
D.
A right-of-way for electric and telephone lines that goes across a property - ✔✔B
✔✔A 40-foot easement exists across the front of a property, and a zoning ordinance
requires a building setback of 50 feet from the front property line. If the property is
offered for sale, a licensee should take which of the following actions when notifying
prospective buyers about this situation?
A.
Not inform them of the easement, since the setback includes the easements.
B.
Not inform them of the easement, since a title insurance policy will provide protection
against any possible problems.
C.
Inform them of the existence of both the easement and the setback line.
D.
Have stakes placed on the property to identify both the easement and the setback line. -
✔✔C
✔✔A title insurance policy will protect a buyer from financial losses that are caused by
a(n):
A.
change in zoning regulations
B.
recorded easement to which the policy has taken an exception
AND SOLUTIONS RATED A+
✔✔If a Purchase and Sale Agreement for a commercial property includes a due
diligence contingency for the buyer, then the buyer may:
A.
continue the due diligence period by demand
B.
require the seller to repair items requested by the buyer
C.
require the seller to arrange a second inspection after items are repaired
D.
terminate the Purchase and Sale Agreement if the buyer is not satisfied with the results
of an inspection - ✔✔D
✔✔A licensee crafts an online advertisement for a beachfront property in which the
licensee describes the property as having "the best ocean view in town." This is most
likely an example of:
A.
steering
B.
deception
C.
puffing
D.
misrepresentation - ✔✔C
✔✔Due to the homeowner's disability exemption, property taxes of $4,000 are reduced
to $3,000 in a transaction. However, the listing licensee fails to disclose to the buyer the
difference in the amount of property taxes to be paid by the buyer. Failing to disclose
this material fact is an example of:
A.
exemption
B.
misrepresentation
,C.
misappropriation
D.
mutual regression - ✔✔B
✔✔The final decision in establishing the listing price is made by the:
A.
salesperson
B.
broker
C.
appraiser
D.
owner - ✔✔D
✔✔A visually-impaired person with a service animal makes application for rental of an
apartment that has a vigorously enforced "no pets" policy in the building. According to
the Federal Fair Housing Act, the owner may:
A.
refuse to rent to the applicant as a result of the policy
B.
require the person to house the animal outside of the apartment
C.
require the person to restore any damage to the apartment that results from the animal
D.
increase the customary security deposit - ✔✔C
✔✔One of the required elements of a valid real estate sales contract is that it MUST:
A.
be signed by the seller
B.
provide for possession of the property by the buyer
C.
provide for installment payments
, D.
contain a metes and bounds description of the property - ✔✔A
✔✔Which of the following entities is an example of encroachment?
A.
A legal access road that runs across a property from a public road to another property
B.
A storage building that extends over the boundary line between the property of the
building's owner and an adjacent property
C.
Timber that has been cut down on the property by a tenant for use as firewood
D.
A right-of-way for electric and telephone lines that goes across a property - ✔✔B
✔✔A 40-foot easement exists across the front of a property, and a zoning ordinance
requires a building setback of 50 feet from the front property line. If the property is
offered for sale, a licensee should take which of the following actions when notifying
prospective buyers about this situation?
A.
Not inform them of the easement, since the setback includes the easements.
B.
Not inform them of the easement, since a title insurance policy will provide protection
against any possible problems.
C.
Inform them of the existence of both the easement and the setback line.
D.
Have stakes placed on the property to identify both the easement and the setback line. -
✔✔C
✔✔A title insurance policy will protect a buyer from financial losses that are caused by
a(n):
A.
change in zoning regulations
B.
recorded easement to which the policy has taken an exception
