ROCKWELL EXAM
REAL ESTATE ACCURATE CURRENTLY
TESTING EXAM VERSIONS WITH REAL EXAM
GUARANTEED PASS 2025/2026 LATEST
A plaintiff files a lawsuit involving a property and also files a separate document
intended to provide notice of the lawsuit. This recorded notice of a pending legal action is
called a/ an:
A. Abstract of judgement
B. Petition for alienation
C. Writ of execution
D. Lis Pendens
ANSWER D. Lis Pendens
The movie theater is an example of a nonconforming use, which predated a zoning
change. Nonconforming uses are generally allowed to continue, although they may not e
enlarged, or resumed if they are stopped.
A. a duty wil be performed by only one party
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
D. all parties have fully performed their duties
Page 1 of 92
,ANSWER C. two parties have exchanged promises, and both parties are obligated to perform
Under the principle of anticipation, a property's value is based on expectations of what will
happen to the property in the future. Generally commercial land is worth more than
residential land. A small house on a large lot would be viewed as a tear down. 00:0201:15
The Real Estate Settlement Procedure Act ( RESPA) applies to:
A. contracts for deed
B. seller-financed transactions
C. commercial and residential mortgages
D. residential first mortgages ANSWER D. residential first mortgages
RESPA applies to mortgages secured by a dwelling with up to four units. It does not apply to
commercial transactions or seller financing. (A contract for deed, which is the same thing as a
land contract, can only be used in a seller-financed transaction.) A homeowner bought his
home for $150,000. Ten years later, he refinanced his mortgage and borrowed $100,000.
Which of the following is true for this type of property?
A. Interest on the difference between the original loan amount and the refinanced amount
is not deductible
B. Interest on only half of the difference between the original amount and refinanced
amount is deductible
C. Interest on loans such as this one for the purchase or refinance of a principal residence
is
deductible
D. Interest deductibility will depend on the borrower's tax bracket
,ANSWER C. Interest on loans such as this one for the purchase or refinance of a principal
residence is
deductible
Deeds transfer title to real estate, a bill of sale is generally needed to transfer title to Ben
receives a life estate in a property, with his nephew Will designated as the
remainderman. When Ben dies, what kind of interest does Will receive? personal
property.
A. Fee Simple Estate
B. Life Estate
C. Remainder Interest
D. Reversionary Interest
ANSWER A. Fee Simple Estate
A buyer purchases a rental home that is fully furnished. The document used to transfer
title to the furniture is:
a. quitclaim deed
b. bill of sale
c. special warranty deed
d. general warranty deed
ANSWER b. bill of sale
Page 3 of 92
, Gerald e licensee is acting as a: A. General agent
B. power of attorney
C. property manager
D. special agent
ANSWER D. Special Agent
The most important rule of determining whether a seller is obligated to pay a commission is
whether a ready, willing, and able buyer was found during the listing period. This would take
precedence over the seller's failure to provide marketable title. A buyer who does not have
financial ability to complete the purchase does not qualify as "able."
Legally, how much earnest money must be submitted with a valid purchase and sale
agreement?
A. 1% of the purchase price
B. 3% of the purchase price
C. 5% of the purchase price, but the amount over 3% cannot be retained as liquidated
damages D. No earnest money is required ANSWER D. No earnest money is
required
While almost all buyers will include an earnest money deposit along with the purchase and
sale agreement, that is because of tradition. There is no contractual or legal requirement of a
particular amount, or any earnest money at all.
A mortgage often includes a clause requiring the lender's consent before another borrower
may assume the mortgage. This clause is called a/ an:
A. power of sale clause
REAL ESTATE ACCURATE CURRENTLY
TESTING EXAM VERSIONS WITH REAL EXAM
GUARANTEED PASS 2025/2026 LATEST
A plaintiff files a lawsuit involving a property and also files a separate document
intended to provide notice of the lawsuit. This recorded notice of a pending legal action is
called a/ an:
A. Abstract of judgement
B. Petition for alienation
C. Writ of execution
D. Lis Pendens
ANSWER D. Lis Pendens
The movie theater is an example of a nonconforming use, which predated a zoning
change. Nonconforming uses are generally allowed to continue, although they may not e
enlarged, or resumed if they are stopped.
A. a duty wil be performed by only one party
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
D. all parties have fully performed their duties
Page 1 of 92
,ANSWER C. two parties have exchanged promises, and both parties are obligated to perform
Under the principle of anticipation, a property's value is based on expectations of what will
happen to the property in the future. Generally commercial land is worth more than
residential land. A small house on a large lot would be viewed as a tear down. 00:0201:15
The Real Estate Settlement Procedure Act ( RESPA) applies to:
A. contracts for deed
B. seller-financed transactions
C. commercial and residential mortgages
D. residential first mortgages ANSWER D. residential first mortgages
RESPA applies to mortgages secured by a dwelling with up to four units. It does not apply to
commercial transactions or seller financing. (A contract for deed, which is the same thing as a
land contract, can only be used in a seller-financed transaction.) A homeowner bought his
home for $150,000. Ten years later, he refinanced his mortgage and borrowed $100,000.
Which of the following is true for this type of property?
A. Interest on the difference between the original loan amount and the refinanced amount
is not deductible
B. Interest on only half of the difference between the original amount and refinanced
amount is deductible
C. Interest on loans such as this one for the purchase or refinance of a principal residence
is
deductible
D. Interest deductibility will depend on the borrower's tax bracket
,ANSWER C. Interest on loans such as this one for the purchase or refinance of a principal
residence is
deductible
Deeds transfer title to real estate, a bill of sale is generally needed to transfer title to Ben
receives a life estate in a property, with his nephew Will designated as the
remainderman. When Ben dies, what kind of interest does Will receive? personal
property.
A. Fee Simple Estate
B. Life Estate
C. Remainder Interest
D. Reversionary Interest
ANSWER A. Fee Simple Estate
A buyer purchases a rental home that is fully furnished. The document used to transfer
title to the furniture is:
a. quitclaim deed
b. bill of sale
c. special warranty deed
d. general warranty deed
ANSWER b. bill of sale
Page 3 of 92
, Gerald e licensee is acting as a: A. General agent
B. power of attorney
C. property manager
D. special agent
ANSWER D. Special Agent
The most important rule of determining whether a seller is obligated to pay a commission is
whether a ready, willing, and able buyer was found during the listing period. This would take
precedence over the seller's failure to provide marketable title. A buyer who does not have
financial ability to complete the purchase does not qualify as "able."
Legally, how much earnest money must be submitted with a valid purchase and sale
agreement?
A. 1% of the purchase price
B. 3% of the purchase price
C. 5% of the purchase price, but the amount over 3% cannot be retained as liquidated
damages D. No earnest money is required ANSWER D. No earnest money is
required
While almost all buyers will include an earnest money deposit along with the purchase and
sale agreement, that is because of tradition. There is no contractual or legal requirement of a
particular amount, or any earnest money at all.
A mortgage often includes a clause requiring the lender's consent before another borrower
may assume the mortgage. This clause is called a/ an:
A. power of sale clause
