Aceable Agent: Real Estate Principles:
Review Questions and Answers
Question 1
The time period in which a lawsuit can be brought is set by
a. the equal dignities rule.
b. the statute of frauds.
c. the statute of limitations.
d. the probate court.
Correct Answer
C. The Statute of Limitations
Question 2
Trevor owns a vacant lot and employs an appraiser to determine the property's
a. growth.
b. reproduction cost.
c. replacement cost.
d. highest and best use.
Correct Answer
D. Highest and Best Use
Question 3
The Smiths' sale of their residence is
a. a release of equity.
b. a reassessment event.
c. a local assessment.
d. a notice of change of ownership.
Correct Answer
B. A reassessment event
Page 1 of 95
,Question 4
Closing is on June 15, and rent of $2,400 has been prepaid for the current month.
What amount will the seller be debited at closing if the buyer receives credit for the
day of closing?
a. $1,280
b. $1,200
c. $1,350
d. $2,200
Correct Answer
A. $1,280
Question 5
A holder in due course must take a negotiable instrument
a. within 90 days of its execution.
b. with knowledge of all defenses against it.
c. without notice of any defense against its
enforcement.
d. for cash.
Correct Answer
C. Without notice of any defense against its enforcement
Question 6
A typewritten will must be
A. made by a competent person
B. signed by the testator
C. Witnessed
D. All of These
Correct Answer
D. All of These
Page 2 of 95
,Question 7
If a real estate license is NOT renewed before it expires, the licensee
a. is allowed to complete transactions in progress.
b. is allowed to finish transactions that are substantially complete.
c. must cease all real estate activities.
d. may act under authority of another agent's license for a period not to exceed 60
days.
Correct Answer
C. Must cease all real estate activities
Question 8
An office building with an annual gross income of $70,175 sold for $800,000. What is
the building's gross income multiplier?
a. 11.4
b. 1.147
c. .0877
d. 12
Correct Answer
A. 11.4
Question 9
A retail business has a percentage lease based on 5% of gross income of up to
$25,000 per month and 21⁄2% of gross income above that amount. The minimum to be
paid is $1,000 per month. For a month in which the business has a gross income of
$47,000, what will be the rent payment?
a. $1,800
b. $4,675
c. $2,800
d. $3,675
Correct Answer
A. $1800
Page 3 of 95
, Question 10
A homeowner whose property is exempt from the requirements of the federal Fair
Housing Act will still be subject to
a. the 1866 Civil Rights Act.
b. the Housing Financial Discrimination Act.
c. the Subdivision Map Act.
d. the Subdivided Lands Law.
Correct Answer
A. The 1866 Civil Rights Act
Question 11
Which is not a mechanic
- An engineer
- An architect
- An apartment lessor
- An equipment lessor
Correct Answer
C. An apartment lessor
Question 12
One of the forms of concurrent ownership is
a. ownership in severalty.
b. tenancy in partnership.
c. sole proprietorship.
d. separate ownership.
Correct Answer
B. tenancy in partnership
Page 4 of 95
Review Questions and Answers
Question 1
The time period in which a lawsuit can be brought is set by
a. the equal dignities rule.
b. the statute of frauds.
c. the statute of limitations.
d. the probate court.
Correct Answer
C. The Statute of Limitations
Question 2
Trevor owns a vacant lot and employs an appraiser to determine the property's
a. growth.
b. reproduction cost.
c. replacement cost.
d. highest and best use.
Correct Answer
D. Highest and Best Use
Question 3
The Smiths' sale of their residence is
a. a release of equity.
b. a reassessment event.
c. a local assessment.
d. a notice of change of ownership.
Correct Answer
B. A reassessment event
Page 1 of 95
,Question 4
Closing is on June 15, and rent of $2,400 has been prepaid for the current month.
What amount will the seller be debited at closing if the buyer receives credit for the
day of closing?
a. $1,280
b. $1,200
c. $1,350
d. $2,200
Correct Answer
A. $1,280
Question 5
A holder in due course must take a negotiable instrument
a. within 90 days of its execution.
b. with knowledge of all defenses against it.
c. without notice of any defense against its
enforcement.
d. for cash.
Correct Answer
C. Without notice of any defense against its enforcement
Question 6
A typewritten will must be
A. made by a competent person
B. signed by the testator
C. Witnessed
D. All of These
Correct Answer
D. All of These
Page 2 of 95
,Question 7
If a real estate license is NOT renewed before it expires, the licensee
a. is allowed to complete transactions in progress.
b. is allowed to finish transactions that are substantially complete.
c. must cease all real estate activities.
d. may act under authority of another agent's license for a period not to exceed 60
days.
Correct Answer
C. Must cease all real estate activities
Question 8
An office building with an annual gross income of $70,175 sold for $800,000. What is
the building's gross income multiplier?
a. 11.4
b. 1.147
c. .0877
d. 12
Correct Answer
A. 11.4
Question 9
A retail business has a percentage lease based on 5% of gross income of up to
$25,000 per month and 21⁄2% of gross income above that amount. The minimum to be
paid is $1,000 per month. For a month in which the business has a gross income of
$47,000, what will be the rent payment?
a. $1,800
b. $4,675
c. $2,800
d. $3,675
Correct Answer
A. $1800
Page 3 of 95
, Question 10
A homeowner whose property is exempt from the requirements of the federal Fair
Housing Act will still be subject to
a. the 1866 Civil Rights Act.
b. the Housing Financial Discrimination Act.
c. the Subdivision Map Act.
d. the Subdivided Lands Law.
Correct Answer
A. The 1866 Civil Rights Act
Question 11
Which is not a mechanic
- An engineer
- An architect
- An apartment lessor
- An equipment lessor
Correct Answer
C. An apartment lessor
Question 12
One of the forms of concurrent ownership is
a. ownership in severalty.
b. tenancy in partnership.
c. sole proprietorship.
d. separate ownership.
Correct Answer
B. tenancy in partnership
Page 4 of 95
