Real Estate final exam practice (Pearson VUE) Questions And Correct Answers

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 bankruptcy of either the principal or the agent death of either the principal or the agent declaration of incompetence of either the principal or the agent an attempt to set standard rates among agents is price fixing, is violation of the antitrust law Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly sales. This type of lease is called a: percentage The agency that is charged with enforcing the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in the case of an owner who allows the dumping of wastes on a property is the: Environmental Protection Agency A percentage lease would MOST often be used for tenants in: a shopping center A license holder is showing a home built in 1972 to buyers who notice paint flaking on the woodwork. How should the license holder proceed? Advise the prospective buyers to get a lead-based paint inspection. A lot was purchased as an investment for $10,500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owner's net loss on the sale? 2940? A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker's BEST response to the buyer? Check with local law enforcement authorities about the crime rate Which of the following statements about the law of agency is CORRECT? It establishes a fiduciary relationship A lender's title policy will protect the: lender against existing, undiscovered title defects The provision in a mortgage or deed of trust that gives the lender the rights to call the entire balance due upon a default in any payment is called a(n): acceleration clause In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income? Operating expenses The value placed on land and buildings by a governmental unit for use in levying annual real estate taxes is called the: