PERRY REAL ESTATE COLLEGE FINAL EXAM
QUESTIONS AND CORRECT DETAILED
SOLUTIONS LATEST EXAM UPDATE
The method of describing land that uses degrees, feet, and monuments is known
as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - CORRECT ANSWER ✔✔metes and bounds
system
which of the following is true regarding a special warranty deed? -The grantors
warranties are limited to the time the grantor owned the property
-the grantor retains an interest in the ownership
-the grantor is making additional warranties beyond those given in a warranty
deed
-the grantor is warranting that non encumbrances exist against the
property - CORRECT ANSWER ✔✔The grantor's warranties are limited
to
the time the grantor owned the property
Page 1 of 33
,If an owner takes his property off the market for a definite period in exchange
for some consideration but grants an individual the right to purchase the
property within that period for a stated price, this is called a(n)
-contract of sale
-installment agreement
-right of first refusal
-option - CORRECT ANSWER ✔✔option
A licensee has a duty to report a conviction to the Commission
-True, if it is a felony
-False, as there is no duty to report
-False, if it is a felony
-True, if it is a felony or a misdemeanor - CORRECT ANSWER ✔✔True,
if it
is a felony
If a license is revoked, which of the following is TRUE?
-The license revocation is permanent
-The license revocation is for 10 years -the license revocation is for 5 years
-none of the above - CORRECT ANSWER ✔✔the license revocation is
for 5
Page 2 of 33
,years
The type of real estate loan that allows the lender to increase the outstanding
balance of a loan up to the original sum in the note while advancing additional
funds is the
-graduated payment mortgage
-growing equity mortgage
-open end mortgage
-wraparound loan - CORRECT ANSWER ✔✔open-end mortgage
The Commission will not pursue a complaint unless it
-has already been investigated
-alleges a prima facie case of a license law violation
-is typewritten
-has already been litigated in court - CORRECT ANSWER ✔✔alleges a
prima
facie of a license law violation
Assume that the listing and selling brokers split the commission evenly.
What is the sales price of a house if the listing broker received $2,593.50
and the total rate is 6%? - CORRECT ANSWER ✔✔$86,450
Page 3 of 33
, The Commission can conduct an emergency hearing for
-Any allegation
-Allegations of gross negligence -alleged escrow account violations
-alleged advertising violations - CORRECT ANSWER ✔✔alleged
escrow
account violations
A trust is a legal arrangement in which property is held for the benefit of a third
party by a(n)
-attorney in fact
-trustee
-trustor
-beneficiary - CORRECT ANSWER ✔✔trustee
a bilateral contract is one in which
-the promise of one party is given in exchange for the promise of the other party
-something is to be done by one party only
-only one of the parties is obligated to act
-a restriction is placed in the contract by one party to limit the performance
by the other - CORRECT ANSWER ✔✔the promise of one party is
given in
exchange for the promise of the other party
Page 4 of 33
QUESTIONS AND CORRECT DETAILED
SOLUTIONS LATEST EXAM UPDATE
The method of describing land that uses degrees, feet, and monuments is known
as the
-angular system.
-metes and bounds system.
-rectangular survey system.
-lot and block system. - CORRECT ANSWER ✔✔metes and bounds
system
which of the following is true regarding a special warranty deed? -The grantors
warranties are limited to the time the grantor owned the property
-the grantor retains an interest in the ownership
-the grantor is making additional warranties beyond those given in a warranty
deed
-the grantor is warranting that non encumbrances exist against the
property - CORRECT ANSWER ✔✔The grantor's warranties are limited
to
the time the grantor owned the property
Page 1 of 33
,If an owner takes his property off the market for a definite period in exchange
for some consideration but grants an individual the right to purchase the
property within that period for a stated price, this is called a(n)
-contract of sale
-installment agreement
-right of first refusal
-option - CORRECT ANSWER ✔✔option
A licensee has a duty to report a conviction to the Commission
-True, if it is a felony
-False, as there is no duty to report
-False, if it is a felony
-True, if it is a felony or a misdemeanor - CORRECT ANSWER ✔✔True,
if it
is a felony
If a license is revoked, which of the following is TRUE?
-The license revocation is permanent
-The license revocation is for 10 years -the license revocation is for 5 years
-none of the above - CORRECT ANSWER ✔✔the license revocation is
for 5
Page 2 of 33
,years
The type of real estate loan that allows the lender to increase the outstanding
balance of a loan up to the original sum in the note while advancing additional
funds is the
-graduated payment mortgage
-growing equity mortgage
-open end mortgage
-wraparound loan - CORRECT ANSWER ✔✔open-end mortgage
The Commission will not pursue a complaint unless it
-has already been investigated
-alleges a prima facie case of a license law violation
-is typewritten
-has already been litigated in court - CORRECT ANSWER ✔✔alleges a
prima
facie of a license law violation
Assume that the listing and selling brokers split the commission evenly.
What is the sales price of a house if the listing broker received $2,593.50
and the total rate is 6%? - CORRECT ANSWER ✔✔$86,450
Page 3 of 33
, The Commission can conduct an emergency hearing for
-Any allegation
-Allegations of gross negligence -alleged escrow account violations
-alleged advertising violations - CORRECT ANSWER ✔✔alleged
escrow
account violations
A trust is a legal arrangement in which property is held for the benefit of a third
party by a(n)
-attorney in fact
-trustee
-trustor
-beneficiary - CORRECT ANSWER ✔✔trustee
a bilateral contract is one in which
-the promise of one party is given in exchange for the promise of the other party
-something is to be done by one party only
-only one of the parties is obligated to act
-a restriction is placed in the contract by one party to limit the performance
by the other - CORRECT ANSWER ✔✔the promise of one party is
given in
exchange for the promise of the other party
Page 4 of 33
