Real Estate Final Exam (150 Questions )
#1 With Verified Solution.
A ‘.real ‘.estate ‘.licensee ‘.has ‘.a ‘.buyer ‘.agency ‘.agreement. ‘.What ‘.is ‘.the ‘.seller ‘.in ‘.this ‘.situation? ‘.- ‘.
(correct ‘.answer) ‘.-A ‘.customer.
An ‘.optionor ‘.and ‘.an ‘.optionee ‘.make ‘.a ‘.contract ‘.for ‘.an ‘.option ‘.on ‘.a ‘.commercial ‘.piece ‘.of
‘.property. ‘.If ‘.the ‘.optionee ‘.decides ‘.to ‘.exercise ‘.his ‘.option, ‘.when ‘.must ‘.he ‘.perform? ‘.- ‘.(correct
‘.answer) ‘.-He ‘.must ‘.exercise ‘.his ‘.option ‘.under ‘.the ‘.terms ‘.of ‘.the ‘.option ‘.contract.
When ‘.can ‘.a ‘.landlord ‘.evict ‘.a ‘.disabled ‘.blind ‘.or ‘.disabled ‘.tenant ‘.from ‘.the ‘.premises? ‘.- ‘.(correct
‘.answer) ‘.-If ‘.the ‘.tenant ‘.has ‘.loud ‘.parties, ‘.makes ‘.too ‘.much ‘.noise, ‘.and ‘.is ‘.constantly ‘.disturbing
‘.other ‘.tenants
4. ‘.Broker ‘.Carr, ‘.with ‘.ABC ‘.Real ‘.Estate ‘.Company, ‘.listed ‘.the ‘.property ‘.with ‘.a ‘.seller. ‘.Broker
‘.Smith, ‘.with ‘.XYZ ‘.Real ‘.Estate ‘.Company, ‘.called ‘.Broker ‘.Carr, ‘.and ‘.disclosed ‘.that ‘.he ‘.was ‘.a ‘.Buyer
‘.Agent. ‘.Broker ‘.Smith ‘.wrote ‘.a ‘.contract ‘.with ‘.a ‘.buyer ‘.for ‘.the ‘.sale ‘.of ‘.the ‘.property. ‘.What, ‘.if
‘.any, ‘.is ‘.the ‘.relationship ‘.between ‘.the ‘.buyer's ‘.broker, ‘.the ‘.seller ‘.and ‘.the ‘.listing ‘.broker? ‘.- ‘.
(correct ‘.answer) ‘.-There ‘.is ‘.not ‘.a ‘.relationship ‘.between ‘.the ‘.parties. ‘.Broker ‘.Carr ‘.represents ‘.the
‘.Seller ‘.and ‘.Broker ‘.Smith ‘.represents ‘.the ‘.Buyer.
A ‘.buyer ‘.bought ‘.a ‘.property ‘.without ‘.telling ‘.the ‘.seller ‘.of ‘.his ‘.intended ‘.purpose ‘.for ‘.the
‘.property. ‘.The ‘.contract ‘.contains ‘.no ‘.contingency ‘.clauses ‘.and ‘.it ‘.is ‘.a ‘.properly ‘.executed
‘.contract. ‘.After ‘.the ‘.closing, ‘.the ‘.buyer ‘.is ‘.unable ‘.to ‘.obtain ‘.the ‘.zoning ‘.he ‘.needs ‘.for ‘.his
‘.commercial ‘.project. ‘.What ‘.is ‘.the ‘.contract ‘.at ‘.this ‘.stage? ‘.- ‘.(correct ‘.answer) ‘.-Enforceable
6. ‘.The ‘.seller ‘.and ‘.the ‘.buyer ‘.finally ‘.agreed ‘.to ‘.a ‘.purchase ‘.price ‘.of ‘.$203,500 ‘.with ‘.the ‘.closing
‘.to ‘.occur ‘.on ‘.June ‘.15. ‘.The ‘.taxes ‘.for ‘.the ‘.year ‘.in ‘.the ‘.amount ‘.of ‘.$2,500 ‘.have ‘.not ‘.been ‘.paid
‘.by ‘.the ‘.seller. ‘.(Taxes ‘.are ‘.paid ‘.in ‘.arrears). ‘.How ‘.much ‘.would ‘.the ‘.tax ‘.proration ‘.amount ‘.to,
‘.and ‘.how ‘.would ‘.it ‘.appear ‘.on ‘.a ‘.full ‘.settlement ‘.statement? ‘.Base ‘.your ‘.answer ‘.on ‘.a ‘.365 ‘.day
‘.year, ‘.and ‘.the ‘.buyer ‘.is ‘.responsible ‘.for ‘.the ‘.day ‘.of ‘.settlement. ‘.- ‘.(correct ‘.answer) ‘.-$1,130.14
‘.debit ‘.the ‘.seller ‘.and ‘.credit ‘.the ‘.buyer
A ‘.seller ‘.listed ‘.his ‘.home ‘.for ‘.six ‘.months ‘.on ‘.February ‘.26. ‘.On ‘.April ‘.29, ‘.a ‘.buyer ‘.made ‘.an ‘.offer
‘.on ‘.the ‘.property. ‘.The ‘.listing ‘.broker ‘.presented ‘.the ‘.offer ‘.to ‘.the ‘.seller ‘.on ‘.April ‘.30. ‘.The ‘.seller
, ‘.accepted ‘.the ‘.offer ‘.on ‘.May ‘.1, ‘.with ‘.the ‘.closing ‘.to ‘.occur ‘.on ‘.June ‘.15. ‘.Assuming ‘.the ‘.closing
‘.took ‘.place ‘.on ‘.June ‘.15, ‘.when ‘.did ‘.the ‘.listing ‘.expire? ‘.- ‘.(correct ‘.answer) ‘.-6/15
The ‘.sellers ‘.listed ‘.their ‘.property ‘.for ‘.six ‘.months ‘.on ‘.February ‘.26 ‘.for ‘.$522,500. ‘.They ‘.agreed ‘.to
‘.pay ‘.the ‘.listing ‘.broker ‘.a ‘.7% ‘.commission ‘.at ‘.closing ‘.on ‘.the ‘.agreed ‘.upon ‘.sale ‘.price. ‘.A ‘.buyer
‘.made ‘.an ‘.offer ‘.on ‘.the ‘.property ‘.on ‘.March ‘.29 ‘.for ‘.$510,000. ‘.The ‘.seller ‘.countered ‘.the ‘.offer
‘.on ‘.April ‘.1 ‘.at ‘.$517,500, ‘.and ‘.the ‘.buyer ‘.accepted ‘.the ‘.counter ‘.offer ‘.with ‘.the ‘.closing ‘.to ‘.occur
‘.on ‘.June ‘.15. ‘.How ‘.much ‘.commission ‘.did ‘.the ‘.seller ‘.owe ‘.the ‘.listing ‘.broker, ‘.and ‘.how ‘.would ‘.it
‘.appear ‘.on ‘.the ‘.settlement ‘.statement? ‘.- ‘.(correct ‘.answer) ‘.-$36,225. ‘.Debit ‘.the ‘.seller.
The ‘.seller ‘.and ‘.the ‘.buyer ‘.agreed ‘.to ‘.a ‘.purchase ‘.price ‘.of ‘.$270,000 ‘.with ‘.the ‘.closing ‘.to ‘.occur
‘.on ‘.June ‘.15. ‘.The ‘.seller's ‘.loan ‘.balance ‘.after ‘.the ‘.June ‘.1 ‘.payment ‘.was ‘.$170,000. ‘.with ‘.an
‘.interest ‘.rate ‘.of ‘.6%.The ‘.monthly ‘.payment ‘.was ‘.$1,800 ‘.principal ‘.and ‘.interest. ‘.What ‘.was ‘.the
‘.loan ‘.balance ‘.the ‘.day ‘.of ‘.closing, ‘.and ‘.how ‘.much ‘.interest ‘.did ‘.the ‘.seller ‘.owe ‘.the ‘.bank? ‘.- ‘.
(correct ‘.answer) ‘.-Loan ‘.balance ‘.$170,000; ‘.interest ‘.due ‘.$425
The ‘.buyer ‘.and ‘.seller ‘.agreed ‘.to ‘.a ‘.purchase ‘.price ‘.of ‘.$310,500. ‘.The ‘.buyer ‘.received ‘.an ‘.80%
‘.loan. ‘.How ‘.much ‘.was ‘.the ‘.buyer's ‘.loan ‘.and ‘.how ‘.did ‘.it ‘.appear ‘.on ‘.the ‘.settlement ‘.statement?
‘.- ‘.(correct ‘.answer) ‘.-$ ‘.248,400. ‘.Credit ‘.the ‘.buyer ‘.only.
A ‘.home ‘.improvement ‘.company ‘.was ‘.negotiating ‘.with ‘.a ‘.homeowner ‘.to ‘.add ‘.on ‘.two ‘.rooms ‘.to
‘.a ‘.home. ‘.The ‘.company ‘.agreed ‘.to ‘.take ‘.a ‘.second ‘.mortgage ‘.as ‘.long ‘.as ‘.the ‘.homeowner ‘.also
‘.included ‘.the ‘.rest ‘.of ‘.the ‘.property ‘.in ‘.the ‘.loan. ‘.The ‘.company ‘.and ‘.the ‘.homeowner ‘.agreed ‘.to
‘.a ‘.price ‘.and ‘.the ‘.company ‘.provided ‘.the ‘.necessary ‘.disclosure ‘.form ‘.on ‘.Monday ‘.and ‘.the
‘.homeowner ‘.signed ‘.the ‘.agreement ‘.at ‘.noon ‘.the ‘.following ‘.day. ‘.Assuming ‘.that ‘.the ‘.week ‘.had
‘.five ‘.business ‘.days, ‘.until ‘.what ‘.time ‘.could ‘.the ‘.homeowner ‘.rescind ‘.the ‘.loan? ‘.- ‘.(correct
‘.answer) ‘.-Friday, ‘.midnight ‘.(Three ‘.business ‘.day ‘.period)
The ‘.seller ‘.under ‘.a ‘.land ‘.contract ‘.is ‘.called ‘.- ‘.(correct ‘.answer) ‘.-The ‘.vendor
On ‘.an ‘.8% ‘.straight ‘.term ‘.loan ‘.of ‘.$6,071, ‘.the ‘.borrower ‘.paid ‘.total ‘.interest ‘.of ‘.$1,700. ‘.How
‘.long ‘.did ‘.he ‘.have ‘.the ‘.loan? ‘.- ‘.(correct ‘.answer) ‘.-42 ‘.months
Are ‘.recording ‘.fees ‘.and ‘.title ‘.insurance ‘.premiums ‘.part ‘.of ‘.the ‘.Truth ‘.in ‘.Lending ‘.statement? ‘.- ‘.
(correct ‘.answer) ‘.-No, ‘.These ‘.are ‘.considered ‘.legal, ‘.not ‘.financing ‘.fees ‘.and ‘.therefore ‘.are ‘.not
‘.part ‘.of ‘.the ‘.Truth ‘.in ‘.Lending ‘.statement.
A ‘.mortgage ‘.broker ‘.- ‘.(correct ‘.answer) ‘.-arranges ‘.loans ‘.between ‘.borrowers ‘.and ‘.investors.
The ‘.Smiths' ‘.purchased ‘.a ‘.residence ‘.for ‘.$750,000. ‘.They ‘.made ‘.a ‘.down ‘.payment ‘.of ‘.$150,000
‘.and ‘.agreed ‘.to ‘.assume ‘.the ‘.seller's ‘.existing ‘.mortgage, ‘.which ‘.had ‘.a ‘.current ‘.balance ‘.of ‘.
$230,000. ‘.The ‘.Smiths' ‘.financed ‘.the ‘.remaining ‘.$370,000 ‘.of ‘.the ‘.purchase ‘.price ‘.by ‘.executing ‘.a
‘.second ‘.mortgage ‘.whereby ‘.the ‘.seller ‘.became ‘.a ‘.mortgagee. ‘.This ‘.type ‘.of ‘.loan ‘.is ‘.called ‘.a ‘.- ‘.
(correct ‘.answer) ‘.-part ‘.purchase ‘.mortgage
#1 With Verified Solution.
A ‘.real ‘.estate ‘.licensee ‘.has ‘.a ‘.buyer ‘.agency ‘.agreement. ‘.What ‘.is ‘.the ‘.seller ‘.in ‘.this ‘.situation? ‘.- ‘.
(correct ‘.answer) ‘.-A ‘.customer.
An ‘.optionor ‘.and ‘.an ‘.optionee ‘.make ‘.a ‘.contract ‘.for ‘.an ‘.option ‘.on ‘.a ‘.commercial ‘.piece ‘.of
‘.property. ‘.If ‘.the ‘.optionee ‘.decides ‘.to ‘.exercise ‘.his ‘.option, ‘.when ‘.must ‘.he ‘.perform? ‘.- ‘.(correct
‘.answer) ‘.-He ‘.must ‘.exercise ‘.his ‘.option ‘.under ‘.the ‘.terms ‘.of ‘.the ‘.option ‘.contract.
When ‘.can ‘.a ‘.landlord ‘.evict ‘.a ‘.disabled ‘.blind ‘.or ‘.disabled ‘.tenant ‘.from ‘.the ‘.premises? ‘.- ‘.(correct
‘.answer) ‘.-If ‘.the ‘.tenant ‘.has ‘.loud ‘.parties, ‘.makes ‘.too ‘.much ‘.noise, ‘.and ‘.is ‘.constantly ‘.disturbing
‘.other ‘.tenants
4. ‘.Broker ‘.Carr, ‘.with ‘.ABC ‘.Real ‘.Estate ‘.Company, ‘.listed ‘.the ‘.property ‘.with ‘.a ‘.seller. ‘.Broker
‘.Smith, ‘.with ‘.XYZ ‘.Real ‘.Estate ‘.Company, ‘.called ‘.Broker ‘.Carr, ‘.and ‘.disclosed ‘.that ‘.he ‘.was ‘.a ‘.Buyer
‘.Agent. ‘.Broker ‘.Smith ‘.wrote ‘.a ‘.contract ‘.with ‘.a ‘.buyer ‘.for ‘.the ‘.sale ‘.of ‘.the ‘.property. ‘.What, ‘.if
‘.any, ‘.is ‘.the ‘.relationship ‘.between ‘.the ‘.buyer's ‘.broker, ‘.the ‘.seller ‘.and ‘.the ‘.listing ‘.broker? ‘.- ‘.
(correct ‘.answer) ‘.-There ‘.is ‘.not ‘.a ‘.relationship ‘.between ‘.the ‘.parties. ‘.Broker ‘.Carr ‘.represents ‘.the
‘.Seller ‘.and ‘.Broker ‘.Smith ‘.represents ‘.the ‘.Buyer.
A ‘.buyer ‘.bought ‘.a ‘.property ‘.without ‘.telling ‘.the ‘.seller ‘.of ‘.his ‘.intended ‘.purpose ‘.for ‘.the
‘.property. ‘.The ‘.contract ‘.contains ‘.no ‘.contingency ‘.clauses ‘.and ‘.it ‘.is ‘.a ‘.properly ‘.executed
‘.contract. ‘.After ‘.the ‘.closing, ‘.the ‘.buyer ‘.is ‘.unable ‘.to ‘.obtain ‘.the ‘.zoning ‘.he ‘.needs ‘.for ‘.his
‘.commercial ‘.project. ‘.What ‘.is ‘.the ‘.contract ‘.at ‘.this ‘.stage? ‘.- ‘.(correct ‘.answer) ‘.-Enforceable
6. ‘.The ‘.seller ‘.and ‘.the ‘.buyer ‘.finally ‘.agreed ‘.to ‘.a ‘.purchase ‘.price ‘.of ‘.$203,500 ‘.with ‘.the ‘.closing
‘.to ‘.occur ‘.on ‘.June ‘.15. ‘.The ‘.taxes ‘.for ‘.the ‘.year ‘.in ‘.the ‘.amount ‘.of ‘.$2,500 ‘.have ‘.not ‘.been ‘.paid
‘.by ‘.the ‘.seller. ‘.(Taxes ‘.are ‘.paid ‘.in ‘.arrears). ‘.How ‘.much ‘.would ‘.the ‘.tax ‘.proration ‘.amount ‘.to,
‘.and ‘.how ‘.would ‘.it ‘.appear ‘.on ‘.a ‘.full ‘.settlement ‘.statement? ‘.Base ‘.your ‘.answer ‘.on ‘.a ‘.365 ‘.day
‘.year, ‘.and ‘.the ‘.buyer ‘.is ‘.responsible ‘.for ‘.the ‘.day ‘.of ‘.settlement. ‘.- ‘.(correct ‘.answer) ‘.-$1,130.14
‘.debit ‘.the ‘.seller ‘.and ‘.credit ‘.the ‘.buyer
A ‘.seller ‘.listed ‘.his ‘.home ‘.for ‘.six ‘.months ‘.on ‘.February ‘.26. ‘.On ‘.April ‘.29, ‘.a ‘.buyer ‘.made ‘.an ‘.offer
‘.on ‘.the ‘.property. ‘.The ‘.listing ‘.broker ‘.presented ‘.the ‘.offer ‘.to ‘.the ‘.seller ‘.on ‘.April ‘.30. ‘.The ‘.seller
, ‘.accepted ‘.the ‘.offer ‘.on ‘.May ‘.1, ‘.with ‘.the ‘.closing ‘.to ‘.occur ‘.on ‘.June ‘.15. ‘.Assuming ‘.the ‘.closing
‘.took ‘.place ‘.on ‘.June ‘.15, ‘.when ‘.did ‘.the ‘.listing ‘.expire? ‘.- ‘.(correct ‘.answer) ‘.-6/15
The ‘.sellers ‘.listed ‘.their ‘.property ‘.for ‘.six ‘.months ‘.on ‘.February ‘.26 ‘.for ‘.$522,500. ‘.They ‘.agreed ‘.to
‘.pay ‘.the ‘.listing ‘.broker ‘.a ‘.7% ‘.commission ‘.at ‘.closing ‘.on ‘.the ‘.agreed ‘.upon ‘.sale ‘.price. ‘.A ‘.buyer
‘.made ‘.an ‘.offer ‘.on ‘.the ‘.property ‘.on ‘.March ‘.29 ‘.for ‘.$510,000. ‘.The ‘.seller ‘.countered ‘.the ‘.offer
‘.on ‘.April ‘.1 ‘.at ‘.$517,500, ‘.and ‘.the ‘.buyer ‘.accepted ‘.the ‘.counter ‘.offer ‘.with ‘.the ‘.closing ‘.to ‘.occur
‘.on ‘.June ‘.15. ‘.How ‘.much ‘.commission ‘.did ‘.the ‘.seller ‘.owe ‘.the ‘.listing ‘.broker, ‘.and ‘.how ‘.would ‘.it
‘.appear ‘.on ‘.the ‘.settlement ‘.statement? ‘.- ‘.(correct ‘.answer) ‘.-$36,225. ‘.Debit ‘.the ‘.seller.
The ‘.seller ‘.and ‘.the ‘.buyer ‘.agreed ‘.to ‘.a ‘.purchase ‘.price ‘.of ‘.$270,000 ‘.with ‘.the ‘.closing ‘.to ‘.occur
‘.on ‘.June ‘.15. ‘.The ‘.seller's ‘.loan ‘.balance ‘.after ‘.the ‘.June ‘.1 ‘.payment ‘.was ‘.$170,000. ‘.with ‘.an
‘.interest ‘.rate ‘.of ‘.6%.The ‘.monthly ‘.payment ‘.was ‘.$1,800 ‘.principal ‘.and ‘.interest. ‘.What ‘.was ‘.the
‘.loan ‘.balance ‘.the ‘.day ‘.of ‘.closing, ‘.and ‘.how ‘.much ‘.interest ‘.did ‘.the ‘.seller ‘.owe ‘.the ‘.bank? ‘.- ‘.
(correct ‘.answer) ‘.-Loan ‘.balance ‘.$170,000; ‘.interest ‘.due ‘.$425
The ‘.buyer ‘.and ‘.seller ‘.agreed ‘.to ‘.a ‘.purchase ‘.price ‘.of ‘.$310,500. ‘.The ‘.buyer ‘.received ‘.an ‘.80%
‘.loan. ‘.How ‘.much ‘.was ‘.the ‘.buyer's ‘.loan ‘.and ‘.how ‘.did ‘.it ‘.appear ‘.on ‘.the ‘.settlement ‘.statement?
‘.- ‘.(correct ‘.answer) ‘.-$ ‘.248,400. ‘.Credit ‘.the ‘.buyer ‘.only.
A ‘.home ‘.improvement ‘.company ‘.was ‘.negotiating ‘.with ‘.a ‘.homeowner ‘.to ‘.add ‘.on ‘.two ‘.rooms ‘.to
‘.a ‘.home. ‘.The ‘.company ‘.agreed ‘.to ‘.take ‘.a ‘.second ‘.mortgage ‘.as ‘.long ‘.as ‘.the ‘.homeowner ‘.also
‘.included ‘.the ‘.rest ‘.of ‘.the ‘.property ‘.in ‘.the ‘.loan. ‘.The ‘.company ‘.and ‘.the ‘.homeowner ‘.agreed ‘.to
‘.a ‘.price ‘.and ‘.the ‘.company ‘.provided ‘.the ‘.necessary ‘.disclosure ‘.form ‘.on ‘.Monday ‘.and ‘.the
‘.homeowner ‘.signed ‘.the ‘.agreement ‘.at ‘.noon ‘.the ‘.following ‘.day. ‘.Assuming ‘.that ‘.the ‘.week ‘.had
‘.five ‘.business ‘.days, ‘.until ‘.what ‘.time ‘.could ‘.the ‘.homeowner ‘.rescind ‘.the ‘.loan? ‘.- ‘.(correct
‘.answer) ‘.-Friday, ‘.midnight ‘.(Three ‘.business ‘.day ‘.period)
The ‘.seller ‘.under ‘.a ‘.land ‘.contract ‘.is ‘.called ‘.- ‘.(correct ‘.answer) ‘.-The ‘.vendor
On ‘.an ‘.8% ‘.straight ‘.term ‘.loan ‘.of ‘.$6,071, ‘.the ‘.borrower ‘.paid ‘.total ‘.interest ‘.of ‘.$1,700. ‘.How
‘.long ‘.did ‘.he ‘.have ‘.the ‘.loan? ‘.- ‘.(correct ‘.answer) ‘.-42 ‘.months
Are ‘.recording ‘.fees ‘.and ‘.title ‘.insurance ‘.premiums ‘.part ‘.of ‘.the ‘.Truth ‘.in ‘.Lending ‘.statement? ‘.- ‘.
(correct ‘.answer) ‘.-No, ‘.These ‘.are ‘.considered ‘.legal, ‘.not ‘.financing ‘.fees ‘.and ‘.therefore ‘.are ‘.not
‘.part ‘.of ‘.the ‘.Truth ‘.in ‘.Lending ‘.statement.
A ‘.mortgage ‘.broker ‘.- ‘.(correct ‘.answer) ‘.-arranges ‘.loans ‘.between ‘.borrowers ‘.and ‘.investors.
The ‘.Smiths' ‘.purchased ‘.a ‘.residence ‘.for ‘.$750,000. ‘.They ‘.made ‘.a ‘.down ‘.payment ‘.of ‘.$150,000
‘.and ‘.agreed ‘.to ‘.assume ‘.the ‘.seller's ‘.existing ‘.mortgage, ‘.which ‘.had ‘.a ‘.current ‘.balance ‘.of ‘.
$230,000. ‘.The ‘.Smiths' ‘.financed ‘.the ‘.remaining ‘.$370,000 ‘.of ‘.the ‘.purchase ‘.price ‘.by ‘.executing ‘.a
‘.second ‘.mortgage ‘.whereby ‘.the ‘.seller ‘.became ‘.a ‘.mortgagee. ‘.This ‘.type ‘.of ‘.loan ‘.is ‘.called ‘.a ‘.- ‘.
(correct ‘.answer) ‘.-part ‘.purchase ‘.mortgage
