Real Estate GA Mid Term UPDATED ACTUAL Questions and
CORRECT Answers
1. Which of the following is NOT considered to be an D. Immobility
economic characteristic of land'?'
A. Scarcity
B. Modification
C. Location (situs)
D. Immobility
2. A property is listed for $110,000. On March 1 , the owner B. A fair market price, as determined by a certified appraiser
accepts a written offer for $105,000, and the closing date
is set for June 15. On March 15, it is announced that a new
shopping center will be built near the property, and the
owner believes that the property is now worth $145,000.
Which of the following should determine the amount
paid at closing?
A. The amount specified by the accepted offer
B. A fair market price, as determined by a certified
appraiser
C. The original listing price, since that is what the seller
thought was fair
D. A compromise between the offer and the current
value, approximately $125,000
3. Which of the following actions would NOT LIKELY A. A broker shows several properties to a customer
create an agency relationship?
A. A broker shows several properties to a customer
B. A broker agrees to find a buyer for a friend's home for
no commission
C. A broker and seller sign a listing agreement
D. A broker manages a client's rental property
,4. A change in zoning from multifamily to single-family A. down zoning
use would be an example of:
A. down zoning
B. up zoning
C. a variance
D. spot zoning
5. A buyer and seller have a verbal agreement stating the B. Buyer
seller will pay all closing costs. When the agreement was
put in writing it stated the buyer would pay all closing
costs.
If both the seller and buyer sign the agreement, who
would MOST LIKELY be responsible for the closing
costs?
A. Seller
B. Buyer
C. Lender
D. Broker
6. A property was listed for $125.000 and the broker D. Rejected offer
lound a buyer who made an offer of
$115.000 which was not accepted by the seller. This
sltuallon would be BEST described as a(an):
A. First right of refusal
B. Installment sale
C. Option to purchase
D. Rejected offer
, 7. A bowling alley is tocated on the outskirts of a city. The C. No, the bowling alley is considered a nonconforming use because it was
area was recenlly rezoned for resklential use. Will this constructed prior to the enactment of the ordinance so it may continue operating
change affect the present operation of the bowling
alley?
A. Yes, they will have to relocate
B. Yes, to continue operating the bowling alley, a petition
for a variance must be filed with the zoning appeal board
C. No, the bowling alley is considered a nonconforming
use because it was constructed prior to the enactment of
the ordinance so it may continue operating
D. No, only urban renewal projects require absolute
compliance
8. Under a lease, the leasehold estate is a right belonging B. tenant.
to the;
A. landlord.
B. tenant.
C. remainderman.
D. reversioner
9. The developer of a property is planning to install an B. A percolation test
underground septic tank and needs information to
determine the soil's absorption and drainage capacity.
This information would be obtained from:
A. A survey
B. A percolation test
C. The building codes
D. An Appraisal
CORRECT Answers
1. Which of the following is NOT considered to be an D. Immobility
economic characteristic of land'?'
A. Scarcity
B. Modification
C. Location (situs)
D. Immobility
2. A property is listed for $110,000. On March 1 , the owner B. A fair market price, as determined by a certified appraiser
accepts a written offer for $105,000, and the closing date
is set for June 15. On March 15, it is announced that a new
shopping center will be built near the property, and the
owner believes that the property is now worth $145,000.
Which of the following should determine the amount
paid at closing?
A. The amount specified by the accepted offer
B. A fair market price, as determined by a certified
appraiser
C. The original listing price, since that is what the seller
thought was fair
D. A compromise between the offer and the current
value, approximately $125,000
3. Which of the following actions would NOT LIKELY A. A broker shows several properties to a customer
create an agency relationship?
A. A broker shows several properties to a customer
B. A broker agrees to find a buyer for a friend's home for
no commission
C. A broker and seller sign a listing agreement
D. A broker manages a client's rental property
,4. A change in zoning from multifamily to single-family A. down zoning
use would be an example of:
A. down zoning
B. up zoning
C. a variance
D. spot zoning
5. A buyer and seller have a verbal agreement stating the B. Buyer
seller will pay all closing costs. When the agreement was
put in writing it stated the buyer would pay all closing
costs.
If both the seller and buyer sign the agreement, who
would MOST LIKELY be responsible for the closing
costs?
A. Seller
B. Buyer
C. Lender
D. Broker
6. A property was listed for $125.000 and the broker D. Rejected offer
lound a buyer who made an offer of
$115.000 which was not accepted by the seller. This
sltuallon would be BEST described as a(an):
A. First right of refusal
B. Installment sale
C. Option to purchase
D. Rejected offer
, 7. A bowling alley is tocated on the outskirts of a city. The C. No, the bowling alley is considered a nonconforming use because it was
area was recenlly rezoned for resklential use. Will this constructed prior to the enactment of the ordinance so it may continue operating
change affect the present operation of the bowling
alley?
A. Yes, they will have to relocate
B. Yes, to continue operating the bowling alley, a petition
for a variance must be filed with the zoning appeal board
C. No, the bowling alley is considered a nonconforming
use because it was constructed prior to the enactment of
the ordinance so it may continue operating
D. No, only urban renewal projects require absolute
compliance
8. Under a lease, the leasehold estate is a right belonging B. tenant.
to the;
A. landlord.
B. tenant.
C. remainderman.
D. reversioner
9. The developer of a property is planning to install an B. A percolation test
underground septic tank and needs information to
determine the soil's absorption and drainage capacity.
This information would be obtained from:
A. A survey
B. A percolation test
C. The building codes
D. An Appraisal
