Real Estate final exam practice (Pearson
VUE) Questions And Correct Answers
fee simple
most complete form of property ownership.
also called fee absolute and indefeasible fee estate.
owner may do what they want with property
1. In order for a tenant to claim relief for constructive eviction:
the landlord must have intentionally withheld required
repairs or maintenance
A buyer purchases a furnished condominium apartment
as an investment. The document that evidences the buyer's
ownership of the furniture is a:
bill of sale
A broker who enters into a property management contract
is considered a
fiduciary
A buyer's interest in real property, acquired at the moment
the seller and the buyer enter into a sales contract, is
known as:
equitable interest
The appropriate time for a selling broker to explain the
agency relationship to a prospective buyer is:
at their initial meeting
A broker is asked to lease 1,200 square feet of warehouse
space at $6 per square foot per year. If the broker's
commission will be 8 percent of the first year's rental
income, the MAXIMUM amount payable is:
576
1200x6=7200
7200x.08= 576
A geographic region in which similar properties compete
with the subject property for potential buyers is called a:
market area
In the absence of a formal appraisal report, which of the
following choices is the MOST appropriate for setting a
listing price in a new, rapidly selling neighborhood?
The price that willing buyers have recently paid for
similar structures
Which of the following factors would be included in the
description of replacement cost?
Similar utility and current material
, Under an exclusive right-to-sell listing, a broker has the
authority to take which of the following actions on behalf
of a seller?
Advertise the property for sale.
special or specific agency
the principal gives the agent authority to do one specific thing on the principal's behalf:
sell property. agreement will list how the task will be done.
general agency
principal and agent. gives agent (broker) the authority to conduct serval activities prins
behalf: show property, check renters references, negotiate the lease.
buyers agency
buyer agent relationship
dual agency
same agent in a brokerage represents both buyer and a seller in a real estate
transaction
designated agency
broker assigns another agent to represent a client in a dual agency situation.
exclusive right to sell
gives broker sole right to market property. no one can receive commission other than
the broker. `
exclusive agency listing
broker can market property. but if client sells property, broker receives no commission.
open property
gives multiple brokers/seller right to market property. usually used in commercial
property rather than residential.
net listing
broker receives the difference- the net- between the selling price and the price that the
owner wants.
multiple listing system
MLS- brokers to share listings with each other. usually splits commission 50/50
exclusive buyer agency agreement
also known as the exclusive right to represent. broker still receives commission even if
the buyer buys a property with out help from broker, within the time of the contract
exclusive agency buyer agency agreement
broker is give exclusivity but if the buyer finds his own property, broker does not receive
commission.
termination by performance
terminates at closing.
reasons for termination
-expiration of the time period
-mutual agreement between principal and agent
-the resignation of the agent, known as renunciation by the agent
-the principals firing of the agent known as revocation by the principal.
laws regulate the termination of agency as a result of the following
destruction of property
government seizure of the property through eminent domain
VUE) Questions And Correct Answers
fee simple
most complete form of property ownership.
also called fee absolute and indefeasible fee estate.
owner may do what they want with property
1. In order for a tenant to claim relief for constructive eviction:
the landlord must have intentionally withheld required
repairs or maintenance
A buyer purchases a furnished condominium apartment
as an investment. The document that evidences the buyer's
ownership of the furniture is a:
bill of sale
A broker who enters into a property management contract
is considered a
fiduciary
A buyer's interest in real property, acquired at the moment
the seller and the buyer enter into a sales contract, is
known as:
equitable interest
The appropriate time for a selling broker to explain the
agency relationship to a prospective buyer is:
at their initial meeting
A broker is asked to lease 1,200 square feet of warehouse
space at $6 per square foot per year. If the broker's
commission will be 8 percent of the first year's rental
income, the MAXIMUM amount payable is:
576
1200x6=7200
7200x.08= 576
A geographic region in which similar properties compete
with the subject property for potential buyers is called a:
market area
In the absence of a formal appraisal report, which of the
following choices is the MOST appropriate for setting a
listing price in a new, rapidly selling neighborhood?
The price that willing buyers have recently paid for
similar structures
Which of the following factors would be included in the
description of replacement cost?
Similar utility and current material
, Under an exclusive right-to-sell listing, a broker has the
authority to take which of the following actions on behalf
of a seller?
Advertise the property for sale.
special or specific agency
the principal gives the agent authority to do one specific thing on the principal's behalf:
sell property. agreement will list how the task will be done.
general agency
principal and agent. gives agent (broker) the authority to conduct serval activities prins
behalf: show property, check renters references, negotiate the lease.
buyers agency
buyer agent relationship
dual agency
same agent in a brokerage represents both buyer and a seller in a real estate
transaction
designated agency
broker assigns another agent to represent a client in a dual agency situation.
exclusive right to sell
gives broker sole right to market property. no one can receive commission other than
the broker. `
exclusive agency listing
broker can market property. but if client sells property, broker receives no commission.
open property
gives multiple brokers/seller right to market property. usually used in commercial
property rather than residential.
net listing
broker receives the difference- the net- between the selling price and the price that the
owner wants.
multiple listing system
MLS- brokers to share listings with each other. usually splits commission 50/50
exclusive buyer agency agreement
also known as the exclusive right to represent. broker still receives commission even if
the buyer buys a property with out help from broker, within the time of the contract
exclusive agency buyer agency agreement
broker is give exclusivity but if the buyer finds his own property, broker does not receive
commission.
termination by performance
terminates at closing.
reasons for termination
-expiration of the time period
-mutual agreement between principal and agent
-the resignation of the agent, known as renunciation by the agent
-the principals firing of the agent known as revocation by the principal.
laws regulate the termination of agency as a result of the following
destruction of property
government seizure of the property through eminent domain
