Real Estate Principles Final Exam Test Questions and
Answers Graded A
1. One of the elements of a valid contract is 5. A listing agreement allows a broker to:
mutual consent—an offer and an acceptance. A
contract becomes binding between the seller and a. be an independent contractor.
the buyer when the: b. complete a specific task.
c. complete general tasks.
a. buyer signs the counteroffer. d. transfer title. - -c. complete general
b. broker is notified of the seller's acceptance. tasks.
c. offer is accepted by the broker.
d. buyer is notified of the seller's acceptance. -
-a. buyer signs the counteroffer. 6. The development of vacant parcels in existing
urban and suburban areas is known as:
2. What type of development combines the a. brownfields.
individual ownership of private dwellings with the b. urban sprawl.
shared ownership of common facilities of the c. mansionization.
entire project? d. infill development. - -d. infill
development.
a. Common interest development
b. Standard subdivision
c. In-zoning subdivision 7. Under which government financing program
d. Shared development - -a. Common are approved applicants required to apply for life
interest development insurance—not mortgage insurance?
a. F.H.A.
3. Which of the following causes real estate b. CalVet
prices to increase? c. Fannie Mae
d. V.A. - -b. CalVet
a. Demand is not an issue
b. Demand is greater than supply
c. Supply and demand are the same 8. Which document is used by a seller to
d. Supply is greater than demand - -b. describe the condition of his property to the
Demand is greater than supply buyer?
a. Uniform Settlement Statement
4. A(n) _____ may be unilaterally terminated by a b. Loan Broker Disclosure Statement
lessor or lessee. c. Transfer Disclosure Statement
d. Alquist-Priolo Disclosure Statement - -c.
a. tenancy at sufferance Transfer Disclosure Statement
b. tenancy for years
c. tenancy at will
d. estate of periodic tenancy - -c. tenancy 9. The escrow holder is the:
at will
a. real estate salesperson.
b. buyer.
, Real Estate Principles Final Exam Test Questions and
Answers Graded A
c. escrow officer. b. high affordability index.
d. seller. - -c. escrow officer. c. adequate housing inventory.
d. low interest rates. - -a. low affordability
index.
10. Documentary transfer tax is usually based on
_____ per $1,000 of the purchase price.
14. What does the Truth-In-Lending Act
a. $1.55 (Regulation Z) require?
b. $1.65
c. $0.55 a. Anyone negotiating a loan to have a real
d. $1.10 - -d. $1.10 estate license
b. A cap on interest rates
c. Fed to regulate the flow of money
11. The Commissioner can issue citations and d. Creditors to disclose credit terms so
fines to both licensees and unlicensed persons consumers can make comparisons - -d.
for minor violations of the Real Estate Law. A Creditors to disclose credit terms so consumers
citation: can make comparisons
a. enumerates the laws violated and states the
amount of the administrative fine. 15. An example of _____ is causing panic selling
b. describes the basis of the complaint and by telling people that value in a neighborhood will
contains an order to correct the violation and a decline due to the purchase of homes by
reasonable time period in which to correct it. minorities.
c. orders the violator to appear in court.
d. describes the basis of the complaint and a. wheeling
requests compliance in a timely manner. - b. redlining
-b. describes the basis of the complaint c. steering
and contains an order to correct the violation and d. blockbusting - -d. blockbusting
a reasonable time period in which to correct it.
16. In a real estate transaction the customer is
12. How many times may a tenant offset his considered the:
monthly rent against repairs he has made?
a. broker.
a. Twice a year b. agent.
b. Twice every four years c. third party.
c. Three times d. client. - -c. third party.
d. There is no limit - -a. Twice a year
17. An easement and a license to use property
13. Everything listed below helps to create a are different because:
strong housing market except a(n):
a. consideration is paid for an easement.
a. low affordability index. b. an easement coveys ownership.
Answers Graded A
1. One of the elements of a valid contract is 5. A listing agreement allows a broker to:
mutual consent—an offer and an acceptance. A
contract becomes binding between the seller and a. be an independent contractor.
the buyer when the: b. complete a specific task.
c. complete general tasks.
a. buyer signs the counteroffer. d. transfer title. - -c. complete general
b. broker is notified of the seller's acceptance. tasks.
c. offer is accepted by the broker.
d. buyer is notified of the seller's acceptance. -
-a. buyer signs the counteroffer. 6. The development of vacant parcels in existing
urban and suburban areas is known as:
2. What type of development combines the a. brownfields.
individual ownership of private dwellings with the b. urban sprawl.
shared ownership of common facilities of the c. mansionization.
entire project? d. infill development. - -d. infill
development.
a. Common interest development
b. Standard subdivision
c. In-zoning subdivision 7. Under which government financing program
d. Shared development - -a. Common are approved applicants required to apply for life
interest development insurance—not mortgage insurance?
a. F.H.A.
3. Which of the following causes real estate b. CalVet
prices to increase? c. Fannie Mae
d. V.A. - -b. CalVet
a. Demand is not an issue
b. Demand is greater than supply
c. Supply and demand are the same 8. Which document is used by a seller to
d. Supply is greater than demand - -b. describe the condition of his property to the
Demand is greater than supply buyer?
a. Uniform Settlement Statement
4. A(n) _____ may be unilaterally terminated by a b. Loan Broker Disclosure Statement
lessor or lessee. c. Transfer Disclosure Statement
d. Alquist-Priolo Disclosure Statement - -c.
a. tenancy at sufferance Transfer Disclosure Statement
b. tenancy for years
c. tenancy at will
d. estate of periodic tenancy - -c. tenancy 9. The escrow holder is the:
at will
a. real estate salesperson.
b. buyer.
, Real Estate Principles Final Exam Test Questions and
Answers Graded A
c. escrow officer. b. high affordability index.
d. seller. - -c. escrow officer. c. adequate housing inventory.
d. low interest rates. - -a. low affordability
index.
10. Documentary transfer tax is usually based on
_____ per $1,000 of the purchase price.
14. What does the Truth-In-Lending Act
a. $1.55 (Regulation Z) require?
b. $1.65
c. $0.55 a. Anyone negotiating a loan to have a real
d. $1.10 - -d. $1.10 estate license
b. A cap on interest rates
c. Fed to regulate the flow of money
11. The Commissioner can issue citations and d. Creditors to disclose credit terms so
fines to both licensees and unlicensed persons consumers can make comparisons - -d.
for minor violations of the Real Estate Law. A Creditors to disclose credit terms so consumers
citation: can make comparisons
a. enumerates the laws violated and states the
amount of the administrative fine. 15. An example of _____ is causing panic selling
b. describes the basis of the complaint and by telling people that value in a neighborhood will
contains an order to correct the violation and a decline due to the purchase of homes by
reasonable time period in which to correct it. minorities.
c. orders the violator to appear in court.
d. describes the basis of the complaint and a. wheeling
requests compliance in a timely manner. - b. redlining
-b. describes the basis of the complaint c. steering
and contains an order to correct the violation and d. blockbusting - -d. blockbusting
a reasonable time period in which to correct it.
16. In a real estate transaction the customer is
12. How many times may a tenant offset his considered the:
monthly rent against repairs he has made?
a. broker.
a. Twice a year b. agent.
b. Twice every four years c. third party.
c. Three times d. client. - -c. third party.
d. There is no limit - -a. Twice a year
17. An easement and a license to use property
13. Everything listed below helps to create a are different because:
strong housing market except a(n):
a. consideration is paid for an easement.
a. low affordability index. b. an easement coveys ownership.
