IC MOCK EXAM 2 / INSURANCE COMMISSION TRADITIONAL LIFE
MOCK EXAMS_ 2025 LATEST UPDATED
the buyer - (answers)A real estate professional sells property listed by another brokerage firm in
the multiple listing service. The real estate professional has been working with the buyer for
many months but does not have an agency agreement with the buyer. The real estate professional
has fiduciary obligations to:
The real estate professional acted appropriately to sell the seller's property. - (answers)A house
has been listed for sale for more than one year and the owner is very anxious to move into a
retirement community. A real estate professional, who is an agent of the seller, tells a prospective
buyer to make a low offer because the seller is likely to accept it. Regarding the real estate
professional's conduct in giving that advice to the buyer, which of the following is FALSE?
Withholding the information prevents the buyer from making an informed decision. - (answers)A
real estate professional who represents the seller is showing a house to a prospective buyer-
customer. The real estate professional knows that the house has water problems in the basement.
Which of the following is TRUE?
$12,500 - (answers)What is a commission of 5% on a sales price of $250,000?
acts on behalf of the broker - (answers)A broker's newest sales associate brings in a listing for the
sale of a condominium. In this transaction, the sales associate:
$3,622.85 - (answers)The commission on the sale of a house is $9,410, and 30% of that amount
goes to the broker who listed the property. Of the remainder, the broker whose sales associate
who brought a buyer to the transaction gets 45%, and the sales associate receives the balance.
How much does the sales associate receive?
$1,075 - (answers)This year's property taxes on a parcel are $1,743.25 and have not been paid. If
a sale of the property is to be closed on August 12, what is the approximate tax proration that will
be charged to the seller based on a 360-day year?
, $763,808.48 - (answers)A loan on an investment property closed on July 1 for $765,000 at 5.5%
interest amortized over 25 years at $4,697.77 per month. Using a 360-day year, what would the
principal amount be after the monthly payment was made August 1?
$2,400 - (answers)A house sold for $180,000 and the buyer obtained an FHA-insured mortgage
loan for $120,000. The lender charged two discount points, the buyer would pay how much in
fees?
$100,000 - (answers)A buyer made a full price offer on a house listed for $125,000. The house,
appraised for $127,500. Based on these facts, if the buyer applies for an 80% mortgage, what
will be the amount of the loan?
$319,300 - (answers)A developer is planning a warehouse that will contain 103,000 square feet.
Construction costs are estimated to be $62 per square foot. Ninety-five percent financing is
available for the structure. How much money must the developer put up to complete the project?
Number of parties involved in the loan - (answers)In what way does a deed of trust differ from a
mortgage?
at a fixed price within a certain period of time - (answers)An option is granted when an owner
gives the potential purchaser the right to purchase the property:
buyer has the right to revoke the offer at any time until it is accepted and recover the earnest
money - (answers)A broker receives an earnest money deposit with a written offer to purchase
that includes a 10- day acceptance clause. On the fifth day, before the offer is accepted, the buyer
notifies the broker that the offer is being withdrawn and demands the return of the earnest money
deposit. In this situation, the:
statute of frauds - (answers)The law that requires real estate contracts to be in writing to be
enforceable is the:
a licensee who performs real estate activities on behalf of a broker - (answers)In real estate, a
sales associate is always:
MOCK EXAMS_ 2025 LATEST UPDATED
the buyer - (answers)A real estate professional sells property listed by another brokerage firm in
the multiple listing service. The real estate professional has been working with the buyer for
many months but does not have an agency agreement with the buyer. The real estate professional
has fiduciary obligations to:
The real estate professional acted appropriately to sell the seller's property. - (answers)A house
has been listed for sale for more than one year and the owner is very anxious to move into a
retirement community. A real estate professional, who is an agent of the seller, tells a prospective
buyer to make a low offer because the seller is likely to accept it. Regarding the real estate
professional's conduct in giving that advice to the buyer, which of the following is FALSE?
Withholding the information prevents the buyer from making an informed decision. - (answers)A
real estate professional who represents the seller is showing a house to a prospective buyer-
customer. The real estate professional knows that the house has water problems in the basement.
Which of the following is TRUE?
$12,500 - (answers)What is a commission of 5% on a sales price of $250,000?
acts on behalf of the broker - (answers)A broker's newest sales associate brings in a listing for the
sale of a condominium. In this transaction, the sales associate:
$3,622.85 - (answers)The commission on the sale of a house is $9,410, and 30% of that amount
goes to the broker who listed the property. Of the remainder, the broker whose sales associate
who brought a buyer to the transaction gets 45%, and the sales associate receives the balance.
How much does the sales associate receive?
$1,075 - (answers)This year's property taxes on a parcel are $1,743.25 and have not been paid. If
a sale of the property is to be closed on August 12, what is the approximate tax proration that will
be charged to the seller based on a 360-day year?
, $763,808.48 - (answers)A loan on an investment property closed on July 1 for $765,000 at 5.5%
interest amortized over 25 years at $4,697.77 per month. Using a 360-day year, what would the
principal amount be after the monthly payment was made August 1?
$2,400 - (answers)A house sold for $180,000 and the buyer obtained an FHA-insured mortgage
loan for $120,000. The lender charged two discount points, the buyer would pay how much in
fees?
$100,000 - (answers)A buyer made a full price offer on a house listed for $125,000. The house,
appraised for $127,500. Based on these facts, if the buyer applies for an 80% mortgage, what
will be the amount of the loan?
$319,300 - (answers)A developer is planning a warehouse that will contain 103,000 square feet.
Construction costs are estimated to be $62 per square foot. Ninety-five percent financing is
available for the structure. How much money must the developer put up to complete the project?
Number of parties involved in the loan - (answers)In what way does a deed of trust differ from a
mortgage?
at a fixed price within a certain period of time - (answers)An option is granted when an owner
gives the potential purchaser the right to purchase the property:
buyer has the right to revoke the offer at any time until it is accepted and recover the earnest
money - (answers)A broker receives an earnest money deposit with a written offer to purchase
that includes a 10- day acceptance clause. On the fifth day, before the offer is accepted, the buyer
notifies the broker that the offer is being withdrawn and demands the return of the earnest money
deposit. In this situation, the:
statute of frauds - (answers)The law that requires real estate contracts to be in writing to be
enforceable is the:
a licensee who performs real estate activities on behalf of a broker - (answers)In real estate, a
sales associate is always:
