TESTED QUESTIONS AND CORRECT
SOLUTIONS
◉ which of the following BEST defines a circumstance requiring a real
estate license? Answer: performing a real estate act for another party
with the intent to receive compensation (Performing a real estate act for
another party with the intent to receive compensation best defines the
real estate license requirement.)
◉ What is the MOST COMMON clause in listing agreements? Answer:
sign posting clause
◉ which document provides a detailed list of each partys expenses at
closing? Answer: the closing disclosure
◉ how is debt service ratio calculated? Answer: by dividing net
operating income by total debt service
◉ What is NOT NEEDED when prorating an expense? Answer: real
estate transfer amount (usually paid by seller)
◉ what mortgage is short-term and paid out in draws? Answer:
construction mortgage (lender pays funds to borrower in installments,
called draws, as the construction progress)
, ◉ Molly wants to buy a property downtown so she will be closer to the
local nightlife and have a shorter work commute. Her interest in a
property is greatly influenced by the economic significance of the
property's location. What is Molly influenced by? Answer: Situs
(economic significance of a propertys location)
◉ Seller Jordan chooses to not disclose an easement on his property and
the buyer never asks about it. What is this an example of? Answer:
Silent fraud
◉ Agent Laura completed a CMA on a property her client was
interested in making an offer on. What kind of value was Laura
attempting to determine? Answer: Market Value (CMA = comparative
market analysis)
◉ what does "vicarious liability" mean? Answer: broker is responsible
for their licensees actions or omissions
◉ what is easement by condemnation? Answer: easement in which
property is taken via eminent domain and serves as a declaration that a
structure must be closed because it's unfit for occupants (An easement
by condemnation is an easement in which private property is taken for
public use via eminent domain. It serves as a declaration that a structure
must be closed or demolished because it is unfit for occupants.)