HOSMERIT
VanEd NATIONAL REAL ESTATE EXAM COMPLETE
SOLUTION 2024/2025
Question: A sublessee is a(n) - ANSWER-. Tenant
Question: A major disadvantage of owning investment property might be - ANSWER-Lack of
Liquidity
Question: The most favorable thing about a VA loan is that - ANSWER-VA loans guarranty
gives the veteran favorable financing terms because the lender is protected from loss
Question: Once the funds of a construction loan are disbursed to the contractor, and if the sub-
contractor is not paid, - ANSWER-. The sub-contractor can file a lien against the home, even if
the home is sold, after it closes
Question: Marie dies intestate, and her property will transfer according to intestate succession.
This means - ANSWER-. The courts will give the property based on state law
Question: A seller cannot get marketable title due to a break in the chain of title. He will need -
ANSWER-. Quiet title Action
Question: Which is the term used for the person or organization who acts as an intermediary for
the purpose of obtaining financing? - ANSWER-Mortgage Broker
Question: Seller Andy had a custom table made to fit in a corner of his study, attached to the
floorboards on one end. When he sells his home the table will be considered - ANSWER-A
fixture
Question: The term lis pendent refers to - ANSWER-. Advance notice of a lawsuit to be filed
Question: What kind of zoning would require that a developer build 10% of the homes in a
subdivision for low-income families? - ANSWER-Inclusionary
Question: Functional obsolescence can be caused by - ANSWER-. An over-improvement of the
property
,Question: An owner may properly refuse to rent to a prospective tenant because the prospective
tenant is - ANSWER-A drug addict with abusive behavior
Question: 'A' purchased a commercial lot from 'B' based on 'B's fraudulent representation as to
lot size, zoning, and water connections. 'A' cannot use the parcel purchased. What remedy should
'A' seek? - ANSWER-Recission
Question: An offer is accepted one day after the offer period expires. How could the offeror
create a valid contract? - ANSWER-Have the offeror sign a waiver of the offer period
Question: A broker has an exclusive-right-to sell listing. A buyer offers to purchase the listed
property. The buyer knows that the broker is an agent of the seller, yet tells the agent in
confidence that she may be willing to increase his offer by $10,000 if it is not accepted by the
seller. The broker - ANSWER-. Must convey this information to the seller
Question: To perfect a lien against personal property, a creditor would record a(n) - ANSWER-.
Financing Statment
Question: A property manager needs to have a bid on floor coverings based on this statement of
fact. "The building he manages is 90' by 60'. Sixty percent of the building will be carpeted at a
cost of $16.00 per square yard, and the remainder will be tiled at a cost of $8.00 per square yard.
Estimate the cost of the floor covering. - ANSWER-$7,680
Question: Which if the following is NOT considered an element of value? - ANSWER-Cost
Question: A property has a net income of $40,000.00. One appraiser decides to use a 12 %
capitalization rate, while a second appraiser uses a 10% rate. Use of the higher rate results in -
ANSWER-. $66,667 decrease in appraised value
Question: A broker is instructed not to show a property while the owner, who is caucasian, is
away. While the owner is out of town, an African American couple requests to be shown the
property. The broker should - ANSWER-. Refuse to show the property
Question: An agency that cannot be terminated by an owner is a(n) - ANSWER-Agency coupled
with an interest
Question: A valid contract would be unenforceable because of - ANSWER-The statue of
limitations
, Question: The loan that would command the highest loan-to-value ratio would be for -
ANSWER-. A single-family residence
Question: Of the following, which would be considered equivalent to an annuity by an owner? -
ANSWER-A long term-ground lease
Question: Real estate property taxes are based on a banker's year and are payable in arrears. The
taxes were $1,214.00 for the year. The closing is on April 1. The seller is - ANSWER-Debited,
and the buyer is credited $306.67
Question: The parcel of land you are viewing is 3 acres. The front of the square lot is 450 feet
wide. What is the depth? - ANSWER-290.4 feet
Question: A buyer is obtaining a new private loan with a principal amount of $250,000.00 at 9%.
Closing takes place on April 15. The interest due will appear on the worksheet as - ANSWER-
Debit $937.50 to buyer, and credit broker $937.50
Question: Two brokers from different companies have gotten together to discuss what
commission they will charge. This is prohibited by - ANSWER-. The Sherman Anti-Trust Act
Question: The previous tenant of your investment listing died of AIDS. Should you disclose this
to potential buyers, and why? - ANSWER-In most states, Fiduciary Duty of Confidentiality
precludes you from disclosing non-material facts (however some states do require disclosure).
Question: If you think you smell radon gas in a home, - ANSWER-Investigate the source, as any
gas leak is serious and radon gas is odorless
Question: The increased value resulting from the consolidation of 2 adjacent lots into 1 larger lot
is - ANSWER- Plottage
Question: An ad used a term that triggered full disclosure of loan terms. The ad stated -
ANSWER-. $10,000 down
Question: Deducting the cost of the property in equal annual installments is - ANSWER-Straight
line depreciation
Question: Private deed restrictions are - ANSWER-. Restrictive covenants, restrict the use of the
property, encumbrances
VanEd NATIONAL REAL ESTATE EXAM COMPLETE
SOLUTION 2024/2025
Question: A sublessee is a(n) - ANSWER-. Tenant
Question: A major disadvantage of owning investment property might be - ANSWER-Lack of
Liquidity
Question: The most favorable thing about a VA loan is that - ANSWER-VA loans guarranty
gives the veteran favorable financing terms because the lender is protected from loss
Question: Once the funds of a construction loan are disbursed to the contractor, and if the sub-
contractor is not paid, - ANSWER-. The sub-contractor can file a lien against the home, even if
the home is sold, after it closes
Question: Marie dies intestate, and her property will transfer according to intestate succession.
This means - ANSWER-. The courts will give the property based on state law
Question: A seller cannot get marketable title due to a break in the chain of title. He will need -
ANSWER-. Quiet title Action
Question: Which is the term used for the person or organization who acts as an intermediary for
the purpose of obtaining financing? - ANSWER-Mortgage Broker
Question: Seller Andy had a custom table made to fit in a corner of his study, attached to the
floorboards on one end. When he sells his home the table will be considered - ANSWER-A
fixture
Question: The term lis pendent refers to - ANSWER-. Advance notice of a lawsuit to be filed
Question: What kind of zoning would require that a developer build 10% of the homes in a
subdivision for low-income families? - ANSWER-Inclusionary
Question: Functional obsolescence can be caused by - ANSWER-. An over-improvement of the
property
,Question: An owner may properly refuse to rent to a prospective tenant because the prospective
tenant is - ANSWER-A drug addict with abusive behavior
Question: 'A' purchased a commercial lot from 'B' based on 'B's fraudulent representation as to
lot size, zoning, and water connections. 'A' cannot use the parcel purchased. What remedy should
'A' seek? - ANSWER-Recission
Question: An offer is accepted one day after the offer period expires. How could the offeror
create a valid contract? - ANSWER-Have the offeror sign a waiver of the offer period
Question: A broker has an exclusive-right-to sell listing. A buyer offers to purchase the listed
property. The buyer knows that the broker is an agent of the seller, yet tells the agent in
confidence that she may be willing to increase his offer by $10,000 if it is not accepted by the
seller. The broker - ANSWER-. Must convey this information to the seller
Question: To perfect a lien against personal property, a creditor would record a(n) - ANSWER-.
Financing Statment
Question: A property manager needs to have a bid on floor coverings based on this statement of
fact. "The building he manages is 90' by 60'. Sixty percent of the building will be carpeted at a
cost of $16.00 per square yard, and the remainder will be tiled at a cost of $8.00 per square yard.
Estimate the cost of the floor covering. - ANSWER-$7,680
Question: Which if the following is NOT considered an element of value? - ANSWER-Cost
Question: A property has a net income of $40,000.00. One appraiser decides to use a 12 %
capitalization rate, while a second appraiser uses a 10% rate. Use of the higher rate results in -
ANSWER-. $66,667 decrease in appraised value
Question: A broker is instructed not to show a property while the owner, who is caucasian, is
away. While the owner is out of town, an African American couple requests to be shown the
property. The broker should - ANSWER-. Refuse to show the property
Question: An agency that cannot be terminated by an owner is a(n) - ANSWER-Agency coupled
with an interest
Question: A valid contract would be unenforceable because of - ANSWER-The statue of
limitations
, Question: The loan that would command the highest loan-to-value ratio would be for -
ANSWER-. A single-family residence
Question: Of the following, which would be considered equivalent to an annuity by an owner? -
ANSWER-A long term-ground lease
Question: Real estate property taxes are based on a banker's year and are payable in arrears. The
taxes were $1,214.00 for the year. The closing is on April 1. The seller is - ANSWER-Debited,
and the buyer is credited $306.67
Question: The parcel of land you are viewing is 3 acres. The front of the square lot is 450 feet
wide. What is the depth? - ANSWER-290.4 feet
Question: A buyer is obtaining a new private loan with a principal amount of $250,000.00 at 9%.
Closing takes place on April 15. The interest due will appear on the worksheet as - ANSWER-
Debit $937.50 to buyer, and credit broker $937.50
Question: Two brokers from different companies have gotten together to discuss what
commission they will charge. This is prohibited by - ANSWER-. The Sherman Anti-Trust Act
Question: The previous tenant of your investment listing died of AIDS. Should you disclose this
to potential buyers, and why? - ANSWER-In most states, Fiduciary Duty of Confidentiality
precludes you from disclosing non-material facts (however some states do require disclosure).
Question: If you think you smell radon gas in a home, - ANSWER-Investigate the source, as any
gas leak is serious and radon gas is odorless
Question: The increased value resulting from the consolidation of 2 adjacent lots into 1 larger lot
is - ANSWER- Plottage
Question: An ad used a term that triggered full disclosure of loan terms. The ad stated -
ANSWER-. $10,000 down
Question: Deducting the cost of the property in equal annual installments is - ANSWER-Straight
line depreciation
Question: Private deed restrictions are - ANSWER-. Restrictive covenants, restrict the use of the
property, encumbrances
