CE Shop Final Exam Questions and
Answers (Graded A)
which of the following is the price a lender believes the property will bring at a
foreclosure sale? - ANSWER-mortgage value
Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing
broker. Burt may legally do this as long as he's ________ - ANSWER-willing to
pay Scott's commission anyway
what must a homeowner in DC disclose about a property built before 1978 if they
have never tested it for lead paint? - ANSWER-that the home is presumed to
have lead-based paint
Fred is buying Gary's property, which is listed with Sara. Who are the parties to
the listing agreement? - ANSWER-Gary and Sara
an appraiser used the cost approach to estimate a property's value at $220,000.
The site value was $50,000 and the total depreciation estimate was $4,000.
What was the estimated cost of improvements? - ANSWER-$174,000
which term is defined as the addition of one possessor's years of use to another's
continuous use of the same property in an adverse possession claim? -
ANSWER-tacking
which one of the following statements describes informed consent as it relates to
dual agency? - ANSWER-both the buyer and the seller understand what dual
agency is and agree in writing to allow the agent to represent both parties
which of the following factors would play a role in an IRS determination as to
whether a licensee should be classified as an employee or an independent
contractor? - ANSWER-whether the licensee receives benefits from the
brokerage firm
,under the statute of _____, if legal remedy is sought against a person, the
pursuer must bring a court action within a specified period of time -
ANSWER-limitations
Chester is interested in becoming a real estate licensee in DC. After completing
the requirements for obtaining the license for a real estate salesperson, which
agency will administer Chester's license? - ANSWER-DC Real Estate
Commission
A client terminates a listing agreement before its expiration date. What happens
now? - ANSWER-the client may owe a commission anyway
what's involuntary lien? - ANSWER-a lien created without a property owner's
consent
Jim is a listing agent. What offers must he present to his client and when? -
ANSWER-he must present all offers as soon as practicable
Wallace is beside himself He spent the last five months raising enough money to
purchase the property that he has an opinion on, and now, a month before the
end of his option period, the seller refuses to sell him the property. The seller's
actions are ____________. - ANSWER-a breach of contract
The mishandling of escrow funds can result in_______________. -
ANSWER-Disciplinary action and fines for the real estate licensee
How many feet are in a mile? - ANSWER-5,280
Under which types of agency agreement may a buyer and agent operate? -
ANSWER-open, exclusive right to represent, and exclusive agency
With an option contract, which of the following constitutes a breach of contract? -
ANSWER-the optionor sells the property without the option contract to someone
other than the optionee
,What would be an altruistic reason for a municipality to accept a land dedication?
- ANSWER-to use the land for public benefit
Rhonda and Jade both consider themselves African-American, although Rhonda
has much darker skin and hair than Jade. When Rhonda went to the Valley Falls
apartment manager's office to request a rental application, she was told there
were no vacancies. Jade went in a day later and received an application. This
may be discrimination based on__________ - ANSWER-color
Among other things, a listing in the MLS should always include ____________. -
ANSWER-at least one photo
Joint tenancy requires unities of time, interest, and___________. -
ANSWER-possession
Obviously, you can't lawfully convey something unless the parties agree on
what's being conveyed. How is that determined? - ANSWER-legal description
Whose role is it to develop the comprehensive master plan? -
ANSWER-Planning board members
A trust involves a special relationship called a fiduciary relationship. Which of the
following statements is true regarding trusts? - ANSWER-Any asset may be held
in a trust
When is property partitioned? - ANSWER-When two or more people hold
ownership of a property and one wants to sell his/her portion
If a community isn't growing in an orderly fashion, which local land use group
would most likely be at fault? - ANSWER-planning board
Larry, an associate broker, received an earnest money check from his buyer
client. Which of the following actions is appropriate and would be in compliance
with real estate law? - ANSWER-Larry turns the check over to his broker for
deposit into the firm's escrow account
, When does performance of a contract occur? - ANSWER-Both parties have fully
met the terms of the contract
Following all of the client's lawful instructions describes which fiduciary duty? -
ANSWER-obedience
What's the purpose of the title search? - ANSWER-to collect evidence that the
title is a marketable title, meaning its clear and free of encumbrances
What approach to value measures the cost to produce a property, including land
acquisition and construction costs? - ANSWER-Cost approach
Interest rates determine buying power. Which of the following is a true
statement? - ANSWER-When interest rates are high, buyers are often priced out
of the market
Which of the following is true about asbestos? - ANSWER-It is not safe at any
level
An assignment of a contract means to__________. - ANSWER-Transfer rights,
but not necessarily obligations to a new party
A deed that releases any of the grantor's rights to the property to the grantee and
clears any clouds on a title, but does not offer any warranties to the grantee, is
known as a(n)______________. - ANSWER-Quitclaim deed
Which of the following is a role of an agent who's assisting the buyer, but
representing the seller? - ANSWER-Advise the buyer on an appropriate price
What economic principle is related to a property's most profitable use that is both
legal and economically feasible? - ANSWER-Highest and best use
What insurance coverage applies when a disaster occurs, and a governmental
authority denies homeowners access to the dwelling, even if no damage has
been incurred to the dwelling itself? - ANSWER-Prohibited use coverage
Aside from paint, where else might lead be found? - ANSWER-Water pipes
Answers (Graded A)
which of the following is the price a lender believes the property will bring at a
foreclosure sale? - ANSWER-mortgage value
Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing
broker. Burt may legally do this as long as he's ________ - ANSWER-willing to
pay Scott's commission anyway
what must a homeowner in DC disclose about a property built before 1978 if they
have never tested it for lead paint? - ANSWER-that the home is presumed to
have lead-based paint
Fred is buying Gary's property, which is listed with Sara. Who are the parties to
the listing agreement? - ANSWER-Gary and Sara
an appraiser used the cost approach to estimate a property's value at $220,000.
The site value was $50,000 and the total depreciation estimate was $4,000.
What was the estimated cost of improvements? - ANSWER-$174,000
which term is defined as the addition of one possessor's years of use to another's
continuous use of the same property in an adverse possession claim? -
ANSWER-tacking
which one of the following statements describes informed consent as it relates to
dual agency? - ANSWER-both the buyer and the seller understand what dual
agency is and agree in writing to allow the agent to represent both parties
which of the following factors would play a role in an IRS determination as to
whether a licensee should be classified as an employee or an independent
contractor? - ANSWER-whether the licensee receives benefits from the
brokerage firm
,under the statute of _____, if legal remedy is sought against a person, the
pursuer must bring a court action within a specified period of time -
ANSWER-limitations
Chester is interested in becoming a real estate licensee in DC. After completing
the requirements for obtaining the license for a real estate salesperson, which
agency will administer Chester's license? - ANSWER-DC Real Estate
Commission
A client terminates a listing agreement before its expiration date. What happens
now? - ANSWER-the client may owe a commission anyway
what's involuntary lien? - ANSWER-a lien created without a property owner's
consent
Jim is a listing agent. What offers must he present to his client and when? -
ANSWER-he must present all offers as soon as practicable
Wallace is beside himself He spent the last five months raising enough money to
purchase the property that he has an opinion on, and now, a month before the
end of his option period, the seller refuses to sell him the property. The seller's
actions are ____________. - ANSWER-a breach of contract
The mishandling of escrow funds can result in_______________. -
ANSWER-Disciplinary action and fines for the real estate licensee
How many feet are in a mile? - ANSWER-5,280
Under which types of agency agreement may a buyer and agent operate? -
ANSWER-open, exclusive right to represent, and exclusive agency
With an option contract, which of the following constitutes a breach of contract? -
ANSWER-the optionor sells the property without the option contract to someone
other than the optionee
,What would be an altruistic reason for a municipality to accept a land dedication?
- ANSWER-to use the land for public benefit
Rhonda and Jade both consider themselves African-American, although Rhonda
has much darker skin and hair than Jade. When Rhonda went to the Valley Falls
apartment manager's office to request a rental application, she was told there
were no vacancies. Jade went in a day later and received an application. This
may be discrimination based on__________ - ANSWER-color
Among other things, a listing in the MLS should always include ____________. -
ANSWER-at least one photo
Joint tenancy requires unities of time, interest, and___________. -
ANSWER-possession
Obviously, you can't lawfully convey something unless the parties agree on
what's being conveyed. How is that determined? - ANSWER-legal description
Whose role is it to develop the comprehensive master plan? -
ANSWER-Planning board members
A trust involves a special relationship called a fiduciary relationship. Which of the
following statements is true regarding trusts? - ANSWER-Any asset may be held
in a trust
When is property partitioned? - ANSWER-When two or more people hold
ownership of a property and one wants to sell his/her portion
If a community isn't growing in an orderly fashion, which local land use group
would most likely be at fault? - ANSWER-planning board
Larry, an associate broker, received an earnest money check from his buyer
client. Which of the following actions is appropriate and would be in compliance
with real estate law? - ANSWER-Larry turns the check over to his broker for
deposit into the firm's escrow account
, When does performance of a contract occur? - ANSWER-Both parties have fully
met the terms of the contract
Following all of the client's lawful instructions describes which fiduciary duty? -
ANSWER-obedience
What's the purpose of the title search? - ANSWER-to collect evidence that the
title is a marketable title, meaning its clear and free of encumbrances
What approach to value measures the cost to produce a property, including land
acquisition and construction costs? - ANSWER-Cost approach
Interest rates determine buying power. Which of the following is a true
statement? - ANSWER-When interest rates are high, buyers are often priced out
of the market
Which of the following is true about asbestos? - ANSWER-It is not safe at any
level
An assignment of a contract means to__________. - ANSWER-Transfer rights,
but not necessarily obligations to a new party
A deed that releases any of the grantor's rights to the property to the grantee and
clears any clouds on a title, but does not offer any warranties to the grantee, is
known as a(n)______________. - ANSWER-Quitclaim deed
Which of the following is a role of an agent who's assisting the buyer, but
representing the seller? - ANSWER-Advise the buyer on an appropriate price
What economic principle is related to a property's most profitable use that is both
legal and economically feasible? - ANSWER-Highest and best use
What insurance coverage applies when a disaster occurs, and a governmental
authority denies homeowners access to the dwelling, even if no damage has
been incurred to the dwelling itself? - ANSWER-Prohibited use coverage
Aside from paint, where else might lead be found? - ANSWER-Water pipes
