NATIONAL REAL ESTATE EXAM PRACTICE TEST WITH 170
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
Deanna wants to sue her real estate agent, but finds out that she has no legal
recourse because too many years have passed since the offending incident. What
is this an example of? - CORRECT ANSWER ✔✔ - statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax
rate for Pedro's county is 2.375%, what will he pay in ad valorem taxes this year? -
CORRECT ANSWER ✔✔ - $6,887.50
A potentially valid contract in which at least one party has the option to rescind is
described as: - CORRECT ANSWER ✔✔ - voidable
When you're talking about mortgages, what is another name for an origination
fee? - CORRECT ANSWER ✔✔ - points
Both parties involved in an agency agreement agree to end the agreement early.
What is this called? - CORRECT ANSWER ✔✔ - mutual rescission
What does a standard title insurance policy do?* - CORRECT ANSWER ✔✔ -
protects against any defects discovered in the title after closing
Which term describes the transfer of property from the current owner to another
party by sale or gift?* - CORRECT ANSWER ✔✔ - voluntary alienation
Pg. 1
,In the sales comparison approach to property valuation, what does the principle
of substitution state?* - CORRECT ANSWER ✔✔ - The value of a property is only
what a consumer would pay to acquire a comparable property.
Who can require a buyer to purchase homeowners insurance? - CORRECT
ANSWER ✔✔ - lender
Which of the following statements may represent the unauthorized practice of
law?* - CORRECT ANSWER ✔✔ - "You should proceed without ordering a new
abstract - this title is clear."
A property owner has the right to tell other people that they cannot trespass on
their property. What is this right called? - CORRECT ANSWER ✔✔ - right of
exclusion
The term for when the client initiates the termination of the agency agreement is
known as: - CORRECT ANSWER ✔✔ - revocation
Which of the following terms refers to a surveyor's or developer's map that
identifies lots and blocks? - CORRECT ANSWER ✔✔ - plat
The statute of frauds requires that real estate agreements: - CORRECT ANSWER
✔✔ - be in writing
Which type of deed includes the five implied warranties (covenants)? - CORRECT
ANSWER ✔✔ - general warranty deed
Pg. 2
, Which of these scenarios does NOT violate fair housing law? - CORRECT ANSWER
✔✔ - An agent advertises a senior citizen community with the phrase "no children
allowed."
What is the difference between a bill of sale and a deed? - CORRECT ANSWER ✔✔
- A bill of sale is for personal property; a deed is for real estate.
A buyer offers additional consideration to add a 10-day option period to the sales
contract. During this period, the buyer can:* - CORRECT ANSWER ✔✔ - terminate
the contract for any reason
Brenda and her husband are interested in buying a house that was constructed in
1971 that has all the original paint, windows, and flooring. What is required from
the listing agent in this situation?* - CORRECT ANSWER ✔✔ - The agent needs to
furnish the buyers with a pamphlet approved by the EPA concerning lead based
paint prior to closing.
In order to be valid, what MUST a deed have? - CORRECT ANSWER ✔✔ - a legal
description
Hans bought an investment property for $5,250,000. The NOI of this property is
$367,500. At what cap rate did he purchase this property? - CORRECT ANSWER
✔✔ - 7%
What does the principle of anticipation state about the valuation of property? -
CORRECT ANSWER ✔✔ - The present value of a property is affected by the
anticipated income or utility that property will give its property owner.
Pg. 3
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A+
Deanna wants to sue her real estate agent, but finds out that she has no legal
recourse because too many years have passed since the offending incident. What
is this an example of? - CORRECT ANSWER ✔✔ - statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax
rate for Pedro's county is 2.375%, what will he pay in ad valorem taxes this year? -
CORRECT ANSWER ✔✔ - $6,887.50
A potentially valid contract in which at least one party has the option to rescind is
described as: - CORRECT ANSWER ✔✔ - voidable
When you're talking about mortgages, what is another name for an origination
fee? - CORRECT ANSWER ✔✔ - points
Both parties involved in an agency agreement agree to end the agreement early.
What is this called? - CORRECT ANSWER ✔✔ - mutual rescission
What does a standard title insurance policy do?* - CORRECT ANSWER ✔✔ -
protects against any defects discovered in the title after closing
Which term describes the transfer of property from the current owner to another
party by sale or gift?* - CORRECT ANSWER ✔✔ - voluntary alienation
Pg. 1
,In the sales comparison approach to property valuation, what does the principle
of substitution state?* - CORRECT ANSWER ✔✔ - The value of a property is only
what a consumer would pay to acquire a comparable property.
Who can require a buyer to purchase homeowners insurance? - CORRECT
ANSWER ✔✔ - lender
Which of the following statements may represent the unauthorized practice of
law?* - CORRECT ANSWER ✔✔ - "You should proceed without ordering a new
abstract - this title is clear."
A property owner has the right to tell other people that they cannot trespass on
their property. What is this right called? - CORRECT ANSWER ✔✔ - right of
exclusion
The term for when the client initiates the termination of the agency agreement is
known as: - CORRECT ANSWER ✔✔ - revocation
Which of the following terms refers to a surveyor's or developer's map that
identifies lots and blocks? - CORRECT ANSWER ✔✔ - plat
The statute of frauds requires that real estate agreements: - CORRECT ANSWER
✔✔ - be in writing
Which type of deed includes the five implied warranties (covenants)? - CORRECT
ANSWER ✔✔ - general warranty deed
Pg. 2
, Which of these scenarios does NOT violate fair housing law? - CORRECT ANSWER
✔✔ - An agent advertises a senior citizen community with the phrase "no children
allowed."
What is the difference between a bill of sale and a deed? - CORRECT ANSWER ✔✔
- A bill of sale is for personal property; a deed is for real estate.
A buyer offers additional consideration to add a 10-day option period to the sales
contract. During this period, the buyer can:* - CORRECT ANSWER ✔✔ - terminate
the contract for any reason
Brenda and her husband are interested in buying a house that was constructed in
1971 that has all the original paint, windows, and flooring. What is required from
the listing agent in this situation?* - CORRECT ANSWER ✔✔ - The agent needs to
furnish the buyers with a pamphlet approved by the EPA concerning lead based
paint prior to closing.
In order to be valid, what MUST a deed have? - CORRECT ANSWER ✔✔ - a legal
description
Hans bought an investment property for $5,250,000. The NOI of this property is
$367,500. At what cap rate did he purchase this property? - CORRECT ANSWER
✔✔ - 7%
What does the principle of anticipation state about the valuation of property? -
CORRECT ANSWER ✔✔ - The present value of a property is affected by the
anticipated income or utility that property will give its property owner.
Pg. 3
