Pearson Vue Real Estate Practice
Exam
Under the law of agency, a broker's responsibility to the principal is? - Answer-Exercise Care, obedience,
accounting and disclosure
Which of the following items would have to be disclosed to prospective buyers by the listing broker? -
Answer-A defect existing in the property being offered.
Under a sales contract, the legal remedy that MAY be used to force the seller to consummate the sale is
called? - Answer-Specific Performance
A homeowner who plans to travel for a year asks a real estate firm to rent the house for this period and
indicates a preference for a white family rather than a black family, "if at all possible." Under the Federal
Fair Housing Act, the broker should inform that these instructions? - Answer-Can't be followed because
they violate the act
Items permanently attached to real property are considered? - Answer-Fixtures
The income approach is most likely to be used when determining the value of an? - Answer-Office
building
A property manager works in the best interest of the? - Answer-Owner
An agreement that restricts the use and occupancy of real estate, is part of a conveyance, and is binding
on all subsequent buyers is called? - Answer-Covenant
, When a married couple takes title to a property as tenants in common, they have elected a form of
ownership that allows for? - Answer-Unequal shares of Ownership
A loan that provides for increases and decreases in the interest rate during its term is known as? -
Answer-An ARM, adjustable-rate mortgage
A minority couple asks a licensee to show them a listed house. The licensee suggests that they look at
houses in areas with larger minority populations than that of the listed house. What is the licensee guilty
of? - Answer-Steering
In a real estate closing, the buyer generally pays for the? - Answer-recording of a new mortgage
An illegal lending practice whereby a bank refuses to make mortgage loans in a certain neighborhood
based on the ethnic makeup of that area is known as? - Answer-Red-lining
Which of the following types of legal descriptions identifies a property by outlining its boundaries in
terms of a series of directions and distances? - Answer-Metes & Bounds
In addition to real property, pledging a freestanding stove and refrigerator as security for a loan is an
example of which of the following mortgages? - Answer-Package
Which of the following clauses will put the priority of an existing mortgage or deed of trust below that of
a mortgage recorded later? - Answer-A subordination clause
According to the Federal Fair Housing Act, which of the following individuals is permitted to reside in
housing with a familial status exemption? - Answer-A 63-year-old employed postal worker
Public regulations that control the specific uses of land in a given are area called? - Answer-Zoning Laws
Exam
Under the law of agency, a broker's responsibility to the principal is? - Answer-Exercise Care, obedience,
accounting and disclosure
Which of the following items would have to be disclosed to prospective buyers by the listing broker? -
Answer-A defect existing in the property being offered.
Under a sales contract, the legal remedy that MAY be used to force the seller to consummate the sale is
called? - Answer-Specific Performance
A homeowner who plans to travel for a year asks a real estate firm to rent the house for this period and
indicates a preference for a white family rather than a black family, "if at all possible." Under the Federal
Fair Housing Act, the broker should inform that these instructions? - Answer-Can't be followed because
they violate the act
Items permanently attached to real property are considered? - Answer-Fixtures
The income approach is most likely to be used when determining the value of an? - Answer-Office
building
A property manager works in the best interest of the? - Answer-Owner
An agreement that restricts the use and occupancy of real estate, is part of a conveyance, and is binding
on all subsequent buyers is called? - Answer-Covenant
, When a married couple takes title to a property as tenants in common, they have elected a form of
ownership that allows for? - Answer-Unequal shares of Ownership
A loan that provides for increases and decreases in the interest rate during its term is known as? -
Answer-An ARM, adjustable-rate mortgage
A minority couple asks a licensee to show them a listed house. The licensee suggests that they look at
houses in areas with larger minority populations than that of the listed house. What is the licensee guilty
of? - Answer-Steering
In a real estate closing, the buyer generally pays for the? - Answer-recording of a new mortgage
An illegal lending practice whereby a bank refuses to make mortgage loans in a certain neighborhood
based on the ethnic makeup of that area is known as? - Answer-Red-lining
Which of the following types of legal descriptions identifies a property by outlining its boundaries in
terms of a series of directions and distances? - Answer-Metes & Bounds
In addition to real property, pledging a freestanding stove and refrigerator as security for a loan is an
example of which of the following mortgages? - Answer-Package
Which of the following clauses will put the priority of an existing mortgage or deed of trust below that of
a mortgage recorded later? - Answer-A subordination clause
According to the Federal Fair Housing Act, which of the following individuals is permitted to reside in
housing with a familial status exemption? - Answer-A 63-year-old employed postal worker
Public regulations that control the specific uses of land in a given are area called? - Answer-Zoning Laws
