Broker Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
Which of the following estimates of value is most likely to provide only a rough estimate of the
value of the rental property?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Market approach - CORRECT ANSWER - Gross rent multiplier
The use of a property that will give it its greatest current value is its:
A. Highest use
B. Best use
C. Highest and best use
D. Maximum use - CORRECT ANSWER - Highest and best use
The period during which site improvements contribute to the value of the property is called the:
A. Economic utility
B. Asset investment life
C. Accrued depreciation period
D. Economic life - CORRECT ANSWER - Economic Life
The income approach would be used to determine the value of:
A. A single-family home
B. Vacant lots
C. A condominium
D. A strip shopping center - CORRECT ANSWER - A strip shopping center
,A method of valuing a property based on the monetary returns it can be expected to produce is
the:
A. Income approach
B. Cost approach
C. Curable approach
D. Market approach - CORRECT ANSWER - income approach
Which federal law required lenders to only use licensed or certified appraisers to conduct
federally related appraisals over $250,000?
A. RESPA
B. CFPB
C. FIRREA
D. USPAP - CORRECT ANSWER - FIRREA
FIRREA 1989 - CORRECT ANSWER - Financial institutions reform recovery and
enforcement act
Who must approve a short sale?
A. The seller's lender
B. The seller only
C. The lender only
D. No one has to approve a short sale. It is automatic when the seller owes more on the property
than it is worth. - CORRECT ANSWER - The sellers lender
When the listing broker shows the listing to someone and implies that the broker is representing
that person, it is:
A. Intentional dual representation
B. Unintended dual representation
C. Universal agency
,D. Special representation - CORRECT ANSWER - Unintended dual representation
There are five essential elements that make a contract valid. All of the following are one of the
five essential elements EXCEPT:
A. Competent parties,
B. Legal objective,
C. Consideration
D. A list of the personal items that will convey - CORRECT ANSWER - A list of the
personal items that will convey
Jane agreed to purchase real estate from Grant and gave her earnest money deposit at the time
the agreement was made. Which of the following constituted the consideration in this contract?
A. The earnest money deposit
B. The promise for a promise
C. Earnest money if over $1000
D. Contract sales price - CORRECT ANSWER - The promise for a promise
A listing broker is not required to:
A. Maintain a fixed office address
B. Use Information About Brokerage Services
C. Allow subagency
D. Have a license issued by TREC - CORRECT ANSWER - Allow subagency
When the broker is aware of the agency relationship and has disclosed the relationship to all
parties to the transaction, it is:
A. Intentional dual representation
B. Unintended dual representation
C. Universal agency
D. Special representation. - CORRECT ANSWER - Intentional dual representation
, The One to Four Family Residential Contract (Resale) is the form used to make an offer on a
property. It becomes the contract when:
A. A lawsuit affects the property.
B. The buyer has signed the form.
C. The offer is made to the seller.
D. All parties have signed. - CORRECT ANSWER - all parties have signed
Legal action to force the buyer or seller who has breached the contract to carry out the remainder
of contract is called a suit:
A. For liquidated damages
B. For specific performance
C. Equal to the agent's commission
D. For the minimum required to make the contract valid - CORRECT ANSWER - For
specific performance
At a minimum, an agent must:
A. Tell his client any material information related to the transaction
B. Answer the client's questions
C. Present any offer to or from the client
D. All of the above - CORRECT ANSWER - all of the above
John and Susan Jones made an offer on a property at 500 Seasons Lane. Right after they made
the offer to the seller, a new property came on the market that was perfect for them, so they
decided to withdraw their offer on 500 Seasons Lane. The seller had not yet signed or countered
the offer. Withdrawing the offer is called:
A. Breach
B. Rescission
C. Voidable
D. Unenforceable - CORRECT ANSWER - Rescission
Questions and CORRECT Answers
Which of the following estimates of value is most likely to provide only a rough estimate of the
value of the rental property?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Market approach - CORRECT ANSWER - Gross rent multiplier
The use of a property that will give it its greatest current value is its:
A. Highest use
B. Best use
C. Highest and best use
D. Maximum use - CORRECT ANSWER - Highest and best use
The period during which site improvements contribute to the value of the property is called the:
A. Economic utility
B. Asset investment life
C. Accrued depreciation period
D. Economic life - CORRECT ANSWER - Economic Life
The income approach would be used to determine the value of:
A. A single-family home
B. Vacant lots
C. A condominium
D. A strip shopping center - CORRECT ANSWER - A strip shopping center
,A method of valuing a property based on the monetary returns it can be expected to produce is
the:
A. Income approach
B. Cost approach
C. Curable approach
D. Market approach - CORRECT ANSWER - income approach
Which federal law required lenders to only use licensed or certified appraisers to conduct
federally related appraisals over $250,000?
A. RESPA
B. CFPB
C. FIRREA
D. USPAP - CORRECT ANSWER - FIRREA
FIRREA 1989 - CORRECT ANSWER - Financial institutions reform recovery and
enforcement act
Who must approve a short sale?
A. The seller's lender
B. The seller only
C. The lender only
D. No one has to approve a short sale. It is automatic when the seller owes more on the property
than it is worth. - CORRECT ANSWER - The sellers lender
When the listing broker shows the listing to someone and implies that the broker is representing
that person, it is:
A. Intentional dual representation
B. Unintended dual representation
C. Universal agency
,D. Special representation - CORRECT ANSWER - Unintended dual representation
There are five essential elements that make a contract valid. All of the following are one of the
five essential elements EXCEPT:
A. Competent parties,
B. Legal objective,
C. Consideration
D. A list of the personal items that will convey - CORRECT ANSWER - A list of the
personal items that will convey
Jane agreed to purchase real estate from Grant and gave her earnest money deposit at the time
the agreement was made. Which of the following constituted the consideration in this contract?
A. The earnest money deposit
B. The promise for a promise
C. Earnest money if over $1000
D. Contract sales price - CORRECT ANSWER - The promise for a promise
A listing broker is not required to:
A. Maintain a fixed office address
B. Use Information About Brokerage Services
C. Allow subagency
D. Have a license issued by TREC - CORRECT ANSWER - Allow subagency
When the broker is aware of the agency relationship and has disclosed the relationship to all
parties to the transaction, it is:
A. Intentional dual representation
B. Unintended dual representation
C. Universal agency
D. Special representation. - CORRECT ANSWER - Intentional dual representation
, The One to Four Family Residential Contract (Resale) is the form used to make an offer on a
property. It becomes the contract when:
A. A lawsuit affects the property.
B. The buyer has signed the form.
C. The offer is made to the seller.
D. All parties have signed. - CORRECT ANSWER - all parties have signed
Legal action to force the buyer or seller who has breached the contract to carry out the remainder
of contract is called a suit:
A. For liquidated damages
B. For specific performance
C. Equal to the agent's commission
D. For the minimum required to make the contract valid - CORRECT ANSWER - For
specific performance
At a minimum, an agent must:
A. Tell his client any material information related to the transaction
B. Answer the client's questions
C. Present any offer to or from the client
D. All of the above - CORRECT ANSWER - all of the above
John and Susan Jones made an offer on a property at 500 Seasons Lane. Right after they made
the offer to the seller, a new property came on the market that was perfect for them, so they
decided to withdraw their offer on 500 Seasons Lane. The seller had not yet signed or countered
the offer. Withdrawing the offer is called:
A. Breach
B. Rescission
C. Voidable
D. Unenforceable - CORRECT ANSWER - Rescission
