REAL ESTATE PRACTICE EXAM (#1-#4
COMBINED) WITH 100% CORRECT
ANSWERS { GRADED A+}
Which type of insurance is used to insure against rent being stolen by an
employee of a property management company?
A. Rent loss insurance
B. Surety bond
C. Business interruption insurance
D. Liability insurance - ✔✔B. Surety bond
Which of the following is not a typical way that property management fees
are set?
A. Fixed fee
B. Commission on new leases
C. % of gross income
,D. % of operating costs - ✔✔D. % of operating costs
For what activity does a person generally not need a real estate license?
A. Collecting rents as an employee of a building owner
B. Representing people in the exchange of properties
C. Selling properties on behalf of several owners
D. Negotiating leases on behalf of several commercial building owners -
✔✔A. Collecting rents as an employee of a building owner
Roof replacement is considered what type of expense in a building's
budget?
A. Capital
B. Operating
C. Maintenance
D. Fixed - ✔✔A. Capital
Which of the following is true for an independent contractor working for a
broker?
A. The broker is required to pay the contractor's Social Security taxes.
,B. The broker is required to withhold income taxes from the contractor's
commission checks.
C. The broker must give workman's compensation to the contractor.
D. The broker is required to supervise the contractor. - ✔✔D. The broker is
required to supervise the contractor.
The primary duty of a property manager is to
A. Ensure that income is generated by the building
B. Maintain the building
C. Protect the owner's investment in the building
D. Maximize income while maintaining the building's value - ✔✔D.
Maximize income while maintaining the building's value
A real estate broker hired to represent someone who wants to sell his
house is
A. Special agent
B. General agent
C. Universal agent
D. Representative agent - ✔✔A. Special agent
Fiduciary responsibilities are always owed to
, A. the client
B. the customer
C. the buyer
D. the seller - ✔✔A. the client
Fiduciary duties do not include
A. Care
B. Control
C. Accounting
D. Confidentiality - ✔✔B. Control
The client is always
A. Seller
B. Buyer
C. Principal
D. Customer - ✔✔C. Principal
Which of the following would not end an agency relationship?
A. The property was sold.
COMBINED) WITH 100% CORRECT
ANSWERS { GRADED A+}
Which type of insurance is used to insure against rent being stolen by an
employee of a property management company?
A. Rent loss insurance
B. Surety bond
C. Business interruption insurance
D. Liability insurance - ✔✔B. Surety bond
Which of the following is not a typical way that property management fees
are set?
A. Fixed fee
B. Commission on new leases
C. % of gross income
,D. % of operating costs - ✔✔D. % of operating costs
For what activity does a person generally not need a real estate license?
A. Collecting rents as an employee of a building owner
B. Representing people in the exchange of properties
C. Selling properties on behalf of several owners
D. Negotiating leases on behalf of several commercial building owners -
✔✔A. Collecting rents as an employee of a building owner
Roof replacement is considered what type of expense in a building's
budget?
A. Capital
B. Operating
C. Maintenance
D. Fixed - ✔✔A. Capital
Which of the following is true for an independent contractor working for a
broker?
A. The broker is required to pay the contractor's Social Security taxes.
,B. The broker is required to withhold income taxes from the contractor's
commission checks.
C. The broker must give workman's compensation to the contractor.
D. The broker is required to supervise the contractor. - ✔✔D. The broker is
required to supervise the contractor.
The primary duty of a property manager is to
A. Ensure that income is generated by the building
B. Maintain the building
C. Protect the owner's investment in the building
D. Maximize income while maintaining the building's value - ✔✔D.
Maximize income while maintaining the building's value
A real estate broker hired to represent someone who wants to sell his
house is
A. Special agent
B. General agent
C. Universal agent
D. Representative agent - ✔✔A. Special agent
Fiduciary responsibilities are always owed to
, A. the client
B. the customer
C. the buyer
D. the seller - ✔✔A. the client
Fiduciary duties do not include
A. Care
B. Control
C. Accounting
D. Confidentiality - ✔✔B. Control
The client is always
A. Seller
B. Buyer
C. Principal
D. Customer - ✔✔C. Principal
Which of the following would not end an agency relationship?
A. The property was sold.
