AMP REAL ESTATE SALESPERSON PRACTICE EXAM
1. As a buyer's agent, should you advise your client to get a home inspection on the
property
she is buying?
A. It depends. If you've looked at the home and are confident that it is in great shape,
then there is no need for an inspection.
B. No. House inspections are not worthwhile.
C. Yes. A qualified home inspector may spot defects not previously noted.
D. No. The client is buying FHA, and FHA does an inspection before approving the loan.
- Answer -C
2. The holder of a life estate may do all of the following EXCEPT
A. pay the property taxes and special assessments.
B. maintain the property.
C. mortgage the life interest.
D. direct the disposition of the property at the end of the measuring life. - Answer -D
3. Tenancy by the entirety is a special form of ownership available only to
A. sole owners.
B. corporations.
C. married couples.
D. limited partners. - Answer -C
4. Agent Grajewski will use which of the following procedures to assist the sellers of
1234 Gold Avenue in setting their listing price?
A. a professional appraisal
B. a comparative market analysis (CMA)
C. a broker price opinion
D. a wide-area guess (WAG) - Answer -B
5. Which of the following is the simplest form of ownership?
A. severalty
B. joint tenancy
C. community property
D. tenants in common - Answer -A
6. Which of the following forms of ownership involves more than one owner?
A. tenancy by the entirety
B. severalty
C. previously owned property in community property states
D. tenancy at sufferance - Answer -A
7. Property manager Debbie has completed the final move-out inspection for Jennifer.
The property management company is holding $5,000 in a deposit account. In closing
out the
,account for Jennifer, Debbie noted that there is $800 in agreed-upon damages and
$500 in late fees. How much of the escrow will Jennifer receive after the appropriate
adjustments?
A. $5,000
B. $4,200
C. $3,700
D. $4,500 - Answer -C
8. A borrower must pay $5,600 for points on a $140,000 loan. How many points is the
lender
charging for this loan?
A. 2.5
B. 4
C. 4.5
D. 5 - Answer -B
9. Which of the following is most likely to be used as a legal description to identify a
parcel of real estate in a deed?
A. the tax assessment number
B. the street address
C. a description of existing structures
D. the recorded plat numbers - Answer -D
10. Which type of listing agreement provides for the payment of a commission to the
listing broker, even in the case where the owner made the sale without the use of the
listing broker?
A. an open listing
B. an exclusive right to sell listing
C. an MLS listing
D. an exclusive agency listing - Answer -B
11. A tenant in a strip mall pays a monthly rent that includes all property maintenance
charges, taxes, insurance, utilities, and cleaning services. This is known as a
A. net lease.
B. percentage lease.
C. ground lease.
D. gross lease. - Answer –A
12. When tenant Heather Grayson opened her ice cream shop in the mall, she installed
counters and special freezers. When Heather closes the shop, can she remove them?
A. It depends on whether her lease specifically states that she can.
B. No, because as a tenant she gives up the right of possession.
C. Yes, if she repairs any damage caused by their removal.
D. No, because as fixtures they have become part of the real estate. - Answer -C
, 13. Which of the following statements best describes a real estate agent's liabilities
concerning
environmental hazards?
A. Residential real estate agents do not need to know about environmental conditions.
B. A real estate licensee could be liable if he or she should have known about a
condition, even if the seller neglected to disclose it.
C. Disclosure of environmental hazards is the responsibility of the seller.
D. Unless the buyer asks, the real estate agent doesn't have to worry about it. - Answer
-B
14. After John Rawlings bought his apartment, he started receiving his own property tax
bills. This indicates that he has bought into a
A. condominium.
B. cooperative.
C. leasehold.
D. syndicate. - Answer -A
15. A charge of 2.5 discount points on a $178,000 loan equals
A. $4,450.
B. $17,355.
C. $4,275.
D. $44,500. - Answer -A
16. Buyer Neu asks agent Joe the best way to take title to the property he just bought.
Agent Joe should
A. advise Neu that the closing agent will choose the best way.
B. advise Neu to seek competent legal counsel.
C. advise Neu to research the issue at the library.
D. take Neu to his broker so he or she can advise Neu on the proper way to take title. -
Answer -B
17. There is a principle in valuation stating that property is purchased with the
expectation that it will gain value. This is the principle of
A. anticipation.
B. competition.
C. highest and best use.
D. regression. - Answer -A
18.As the buyer's agent, your client asks if the stated amount of property taxes are
appropriate for the asking price of the new-construction home you're about to make an
offer on. What should you do?
A. Nothing; ignore the question.
B. Advise the buyer that the builder is respectable and wouldn't misrepresent the tax
amount.
C. Provide the buyer with the number of the township tax assessor's office, and have
the client contract them prior to writing the contract.
1. As a buyer's agent, should you advise your client to get a home inspection on the
property
she is buying?
A. It depends. If you've looked at the home and are confident that it is in great shape,
then there is no need for an inspection.
B. No. House inspections are not worthwhile.
C. Yes. A qualified home inspector may spot defects not previously noted.
D. No. The client is buying FHA, and FHA does an inspection before approving the loan.
- Answer -C
2. The holder of a life estate may do all of the following EXCEPT
A. pay the property taxes and special assessments.
B. maintain the property.
C. mortgage the life interest.
D. direct the disposition of the property at the end of the measuring life. - Answer -D
3. Tenancy by the entirety is a special form of ownership available only to
A. sole owners.
B. corporations.
C. married couples.
D. limited partners. - Answer -C
4. Agent Grajewski will use which of the following procedures to assist the sellers of
1234 Gold Avenue in setting their listing price?
A. a professional appraisal
B. a comparative market analysis (CMA)
C. a broker price opinion
D. a wide-area guess (WAG) - Answer -B
5. Which of the following is the simplest form of ownership?
A. severalty
B. joint tenancy
C. community property
D. tenants in common - Answer -A
6. Which of the following forms of ownership involves more than one owner?
A. tenancy by the entirety
B. severalty
C. previously owned property in community property states
D. tenancy at sufferance - Answer -A
7. Property manager Debbie has completed the final move-out inspection for Jennifer.
The property management company is holding $5,000 in a deposit account. In closing
out the
,account for Jennifer, Debbie noted that there is $800 in agreed-upon damages and
$500 in late fees. How much of the escrow will Jennifer receive after the appropriate
adjustments?
A. $5,000
B. $4,200
C. $3,700
D. $4,500 - Answer -C
8. A borrower must pay $5,600 for points on a $140,000 loan. How many points is the
lender
charging for this loan?
A. 2.5
B. 4
C. 4.5
D. 5 - Answer -B
9. Which of the following is most likely to be used as a legal description to identify a
parcel of real estate in a deed?
A. the tax assessment number
B. the street address
C. a description of existing structures
D. the recorded plat numbers - Answer -D
10. Which type of listing agreement provides for the payment of a commission to the
listing broker, even in the case where the owner made the sale without the use of the
listing broker?
A. an open listing
B. an exclusive right to sell listing
C. an MLS listing
D. an exclusive agency listing - Answer -B
11. A tenant in a strip mall pays a monthly rent that includes all property maintenance
charges, taxes, insurance, utilities, and cleaning services. This is known as a
A. net lease.
B. percentage lease.
C. ground lease.
D. gross lease. - Answer –A
12. When tenant Heather Grayson opened her ice cream shop in the mall, she installed
counters and special freezers. When Heather closes the shop, can she remove them?
A. It depends on whether her lease specifically states that she can.
B. No, because as a tenant she gives up the right of possession.
C. Yes, if she repairs any damage caused by their removal.
D. No, because as fixtures they have become part of the real estate. - Answer -C
, 13. Which of the following statements best describes a real estate agent's liabilities
concerning
environmental hazards?
A. Residential real estate agents do not need to know about environmental conditions.
B. A real estate licensee could be liable if he or she should have known about a
condition, even if the seller neglected to disclose it.
C. Disclosure of environmental hazards is the responsibility of the seller.
D. Unless the buyer asks, the real estate agent doesn't have to worry about it. - Answer
-B
14. After John Rawlings bought his apartment, he started receiving his own property tax
bills. This indicates that he has bought into a
A. condominium.
B. cooperative.
C. leasehold.
D. syndicate. - Answer -A
15. A charge of 2.5 discount points on a $178,000 loan equals
A. $4,450.
B. $17,355.
C. $4,275.
D. $44,500. - Answer -A
16. Buyer Neu asks agent Joe the best way to take title to the property he just bought.
Agent Joe should
A. advise Neu that the closing agent will choose the best way.
B. advise Neu to seek competent legal counsel.
C. advise Neu to research the issue at the library.
D. take Neu to his broker so he or she can advise Neu on the proper way to take title. -
Answer -B
17. There is a principle in valuation stating that property is purchased with the
expectation that it will gain value. This is the principle of
A. anticipation.
B. competition.
C. highest and best use.
D. regression. - Answer -A
18.As the buyer's agent, your client asks if the stated amount of property taxes are
appropriate for the asking price of the new-construction home you're about to make an
offer on. What should you do?
A. Nothing; ignore the question.
B. Advise the buyer that the builder is respectable and wouldn't misrepresent the tax
amount.
C. Provide the buyer with the number of the township tax assessor's office, and have
the client contract them prior to writing the contract.
