REAL ESTATE U FINAL EXAM TEST BANK
AND STUDY GUIDE | ALL EXAM VERSIONS
1 , 2 AND 3 | ACCURATE REAL EXAM
QUESTIONS AND ANSWERS | RECENTLY
TESTED | EXPERT VERIFIED |
GUARANTEED PASS
Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for
people with advanced Alzheimer's disease, where they're both residents. They fell
in love and get hitched, signing a marriage certificate. This is an example of a(n)
______ contract.
a. Executory
b. Implied
c. Invalid
d. Valid - ANSWER>>c. Invalid
When a prospective homebuyer isn't represented, what doesn't she have?
a. An agency agreement
b. A seller's agreement
c. Responsibility to pay the seller's commission
d. The legal right to purchase - ANSWER>>a. An agency agreement
What's a foreclosure?
a. A property sale that occurs in less than one week
,b. A sale that fails to receive a high enough bid at auction and then falls to the
bank's ownership
c. The forced sale of a property due to the borrower defaulting on the mortgage
loan
d. The sale of a property when the market value of the home is less than what is
owed, plus closing costs - ANSWER>>c. The forced sale of a property due to the
borrower defaulting on the mortgage loan
_______ can be defined as everything that's not real property.
a. Land property
b. Personal property
c. Private property
d. Real estate - ANSWER>>b. Personal property
What are the two categories of comparison when evaluating comparables to a
subject property in the market comparison approach?
a. Broad and specific
b. Components and measures
c. Elements and units
d. General and detailed - ANSWER>>c. Elements and units
Which of the following items must be included in the security instrument used
for a real estate transaction?
a. Borrower credit report
b. Legal description of the property
,c. Lender disclosures
d. Title insurance abstract - ANSWER>>b. Legal description of the property
Which of the following statements best describes a mortgage broker?
a. An institution that focuses on commercial lending
b. An institution that specializes in taking in savings deposits then lends money
out as loans and mortgages
c. A person who works for a specific lender and can offer products from that
particular institution
d. A person who works with multiple lenders to find the product that works best
for the client - ANSWER>>d. A person who works with multiple lenders to find
the product that works best for the client
Appraiser Niles uses ______ to determine a range of values based on comparing a
subject property to comparable sales. He makes sure to use some comparables
that lack features of his subject property, and others that have even more
desirable features, to balance out the comparison.
a. Bracketing
b. Competition
c. Correlation
d. Substituting - ANSWER>>a. Bracketing
At what point in a residential transaction must a seller's agent deliver a
completed Residential Real Property Disclosure Report to a buyer?
a. At least five days prior to closing
, b. Prior to showing the property to the prospective buyer
c. Prior to the parties signing a purchase agreement
d. Within three days after the parties sign a purchase agreement - ANSWER>>c.
Prior to the parties signing a purchase agreement
Which of the following is a residential dwelling with attached walls, where the
owner also typically owns the land on which the home sits?
a. Apartment
b. Condominium
c. Single-family detached home
d. Townhome - ANSWER>>d. Townhome
A ______ is the expected rate of return on an investment.
a. Capitalization rate
b. Cash flow
c. Income ratio
d. Profit margin - ANSWER>>a. Capitalization rate
A borrower makes the same monthly mortgage payment for the entire term of
the loan. At the end of the loan period, all of the interest and principal is paid off.
This is known as a ______ loan.
a. Fully amortized
b. Growing equity
c. Negative amortization
d. Reverse annuity - ANSWER>>a. Fully amortized
AND STUDY GUIDE | ALL EXAM VERSIONS
1 , 2 AND 3 | ACCURATE REAL EXAM
QUESTIONS AND ANSWERS | RECENTLY
TESTED | EXPERT VERIFIED |
GUARANTEED PASS
Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for
people with advanced Alzheimer's disease, where they're both residents. They fell
in love and get hitched, signing a marriage certificate. This is an example of a(n)
______ contract.
a. Executory
b. Implied
c. Invalid
d. Valid - ANSWER>>c. Invalid
When a prospective homebuyer isn't represented, what doesn't she have?
a. An agency agreement
b. A seller's agreement
c. Responsibility to pay the seller's commission
d. The legal right to purchase - ANSWER>>a. An agency agreement
What's a foreclosure?
a. A property sale that occurs in less than one week
,b. A sale that fails to receive a high enough bid at auction and then falls to the
bank's ownership
c. The forced sale of a property due to the borrower defaulting on the mortgage
loan
d. The sale of a property when the market value of the home is less than what is
owed, plus closing costs - ANSWER>>c. The forced sale of a property due to the
borrower defaulting on the mortgage loan
_______ can be defined as everything that's not real property.
a. Land property
b. Personal property
c. Private property
d. Real estate - ANSWER>>b. Personal property
What are the two categories of comparison when evaluating comparables to a
subject property in the market comparison approach?
a. Broad and specific
b. Components and measures
c. Elements and units
d. General and detailed - ANSWER>>c. Elements and units
Which of the following items must be included in the security instrument used
for a real estate transaction?
a. Borrower credit report
b. Legal description of the property
,c. Lender disclosures
d. Title insurance abstract - ANSWER>>b. Legal description of the property
Which of the following statements best describes a mortgage broker?
a. An institution that focuses on commercial lending
b. An institution that specializes in taking in savings deposits then lends money
out as loans and mortgages
c. A person who works for a specific lender and can offer products from that
particular institution
d. A person who works with multiple lenders to find the product that works best
for the client - ANSWER>>d. A person who works with multiple lenders to find
the product that works best for the client
Appraiser Niles uses ______ to determine a range of values based on comparing a
subject property to comparable sales. He makes sure to use some comparables
that lack features of his subject property, and others that have even more
desirable features, to balance out the comparison.
a. Bracketing
b. Competition
c. Correlation
d. Substituting - ANSWER>>a. Bracketing
At what point in a residential transaction must a seller's agent deliver a
completed Residential Real Property Disclosure Report to a buyer?
a. At least five days prior to closing
, b. Prior to showing the property to the prospective buyer
c. Prior to the parties signing a purchase agreement
d. Within three days after the parties sign a purchase agreement - ANSWER>>c.
Prior to the parties signing a purchase agreement
Which of the following is a residential dwelling with attached walls, where the
owner also typically owns the land on which the home sits?
a. Apartment
b. Condominium
c. Single-family detached home
d. Townhome - ANSWER>>d. Townhome
A ______ is the expected rate of return on an investment.
a. Capitalization rate
b. Cash flow
c. Income ratio
d. Profit margin - ANSWER>>a. Capitalization rate
A borrower makes the same monthly mortgage payment for the entire term of
the loan. At the end of the loan period, all of the interest and principal is paid off.
This is known as a ______ loan.
a. Fully amortized
b. Growing equity
c. Negative amortization
d. Reverse annuity - ANSWER>>a. Fully amortized
