STRINGHAM REAL ESTATE SCHOOL
SALES GENERAL EXAM – VERIFIED
QUESTIONS WITH CORRECT ANSWERS
If the interest rate on a straight loan is 8% and the monthly interest payment is
$650, what is the amount of the loan?
a) $75,682
b) $103,250
c) $88,750
d) $97,500 - CORRECT ANSWER>>>>d) $97,500
Which of the following is NOT part of an appraisal?
a) The date of the appraisal report
b) Appraiser's best estimate value
c) A description of the neighborhood surrounding the property
d) The signature of the appraiser - CORRECT ANSWER>>>>
The owner wants to net $40,000 upon selling the property. The commission is 7%,
there will be $2,500 in closing costs, plus a $450 fee to the attorney. What does the
property need to sell for to the the owner $40,000 net?
a) $215,716
b) $50,125.00
c) $200,555
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,d) $46,182.80 - CORRECT ANSWER>>>>d) $46,182.80
The relationship between the lessor and the lessee could be defined as which of the
following? a) Tenants in common
b) Tenancy for years
c) Joint Tenancy
d) Life Estate - CORRECT ANSWER>>>>b) Tenancy for years
The purpose of a document receipt is to verify that:
a) both the buyer and seller received all appropriate documents at the closing
b) The buyer signed all documents involved with the loan
c) All parties have received fully signed copies of the Real Estate Purchase
Contract
d) All involved agents and brokers have signed the purchase agreement -
CORRECT
ANSWER>>>>c) All parties have received fully signed copies of the Real Estate
Purchase Contract
Zachary received a warranty deed after purchasing a property. He saw that his
name had been misspelled. Which of the following documents would he
execute to correct the title? a) Special Warranty Deed
b) Quit Claim Deed
c) Bargain and Sale Deed
d) General Warranty Deed - CORRECT ANSWER>>>>b) Quit Claim Deed
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,After an offer to purchase real property has been signed and presented, how long
does the offer- or have to withdraw the offer?
a) Once the offer has been signed, it cannot be
withdrawn until the offeree accepts, rejects,
counters or the stated time period for
acceptance has elapsed. b) Twenty-four hours
following presentation
c) Until the offer has been accepted
d) Three days following the presentation - CORRECT ANSWER>>>>c) Until the
offer has
been accepted
The survey helps establish all of the following EXCEPT:
a) Property Condition
b) Easements in relation to all permanent structures
c) True property lines
d) Placement of structures, consistent with setback requirements and other
restrictions - CORRECT ANSWER>>>>a) Property Condition
The home to be insured had a value of $313,500. It was only insured for 85% of
its value, and the cost for insurance was .65 per $100 of value for a three- year
policy. How much was the premium for one year?
a) $577.36
b) $625.00
c) $533.42
d) $638.50 - CORRECT ANSWER>>>>a) $577.36
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, All of the following are true about residential appraisals EXCEPT:
a) Since a borrower's available cash for closing is generally limited and the
lending guidelines
are rigid, the loan originator should carefully review the
appraisal for any errors.
b) A lender will generally limit the loan to a maximum percentage of the
appraised value of the
property.
c) The appraiser's final estimated market value readily allows for an increase
in settlement costs
up to
10% before the closing.
d) A successful closing can be highly dependent on the appraiser's opinion of
value. - CORRECT ANSWER>>>>c) The appraiser's final estimated market
value readily allows for an increase in settlement costs up to 10% before the
closing.
What is the risk to a lender who accepts a deed in lieu of foreclosure?
a) There must be a foreclosure to make the deed valid
b) A deed in lieu of foreclosure is considered illegal
c) The original borrower may be represented by a lawyer.
d) They would accept the deed subject to any junior liens. - CORRECT
ANSWER>>>>d) They
would accept the deed subject to any junior liens.
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SALES GENERAL EXAM – VERIFIED
QUESTIONS WITH CORRECT ANSWERS
If the interest rate on a straight loan is 8% and the monthly interest payment is
$650, what is the amount of the loan?
a) $75,682
b) $103,250
c) $88,750
d) $97,500 - CORRECT ANSWER>>>>d) $97,500
Which of the following is NOT part of an appraisal?
a) The date of the appraisal report
b) Appraiser's best estimate value
c) A description of the neighborhood surrounding the property
d) The signature of the appraiser - CORRECT ANSWER>>>>
The owner wants to net $40,000 upon selling the property. The commission is 7%,
there will be $2,500 in closing costs, plus a $450 fee to the attorney. What does the
property need to sell for to the the owner $40,000 net?
a) $215,716
b) $50,125.00
c) $200,555
Page | 1
,d) $46,182.80 - CORRECT ANSWER>>>>d) $46,182.80
The relationship between the lessor and the lessee could be defined as which of the
following? a) Tenants in common
b) Tenancy for years
c) Joint Tenancy
d) Life Estate - CORRECT ANSWER>>>>b) Tenancy for years
The purpose of a document receipt is to verify that:
a) both the buyer and seller received all appropriate documents at the closing
b) The buyer signed all documents involved with the loan
c) All parties have received fully signed copies of the Real Estate Purchase
Contract
d) All involved agents and brokers have signed the purchase agreement -
CORRECT
ANSWER>>>>c) All parties have received fully signed copies of the Real Estate
Purchase Contract
Zachary received a warranty deed after purchasing a property. He saw that his
name had been misspelled. Which of the following documents would he
execute to correct the title? a) Special Warranty Deed
b) Quit Claim Deed
c) Bargain and Sale Deed
d) General Warranty Deed - CORRECT ANSWER>>>>b) Quit Claim Deed
Page | 2
,After an offer to purchase real property has been signed and presented, how long
does the offer- or have to withdraw the offer?
a) Once the offer has been signed, it cannot be
withdrawn until the offeree accepts, rejects,
counters or the stated time period for
acceptance has elapsed. b) Twenty-four hours
following presentation
c) Until the offer has been accepted
d) Three days following the presentation - CORRECT ANSWER>>>>c) Until the
offer has
been accepted
The survey helps establish all of the following EXCEPT:
a) Property Condition
b) Easements in relation to all permanent structures
c) True property lines
d) Placement of structures, consistent with setback requirements and other
restrictions - CORRECT ANSWER>>>>a) Property Condition
The home to be insured had a value of $313,500. It was only insured for 85% of
its value, and the cost for insurance was .65 per $100 of value for a three- year
policy. How much was the premium for one year?
a) $577.36
b) $625.00
c) $533.42
d) $638.50 - CORRECT ANSWER>>>>a) $577.36
Page | 3
, All of the following are true about residential appraisals EXCEPT:
a) Since a borrower's available cash for closing is generally limited and the
lending guidelines
are rigid, the loan originator should carefully review the
appraisal for any errors.
b) A lender will generally limit the loan to a maximum percentage of the
appraised value of the
property.
c) The appraiser's final estimated market value readily allows for an increase
in settlement costs
up to
10% before the closing.
d) A successful closing can be highly dependent on the appraiser's opinion of
value. - CORRECT ANSWER>>>>c) The appraiser's final estimated market
value readily allows for an increase in settlement costs up to 10% before the
closing.
What is the risk to a lender who accepts a deed in lieu of foreclosure?
a) There must be a foreclosure to make the deed valid
b) A deed in lieu of foreclosure is considered illegal
c) The original borrower may be represented by a lawyer.
d) They would accept the deed subject to any junior liens. - CORRECT
ANSWER>>>>d) They
would accept the deed subject to any junior liens.
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