CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
i. John owns the dominant estate with an easement appurtenant. John sells
the property. What happens to the easement?
a. A commercial tenant's lease will expire at the end of the month. It is
terminated by the sale.
b. It belongs to the buyer.
c. (Its ownership must be negotiated outside the sale.
d. John retains ownership of the easement.
Appurtenant In real property law, this describes any right or restriction that
goes with that property, such as an easement to gain access across the
neighbor's parcel, or a covenant (agreement) against blocking the neighbor's
view.
ii. A broker has a oneonone relationship with a client. This is an example of:
a. brokerage.
b. agency.
c. independent contractor status.
d. a partnership.
iii. When a broker sponsors a license holder, the license holder usually remains
an independent contractor. If a broker moves an independent contractor to
employee status, the broker MUST:
a. pay payroll taxes for the license holder.
b. require the license holder to make a fulltime commitment.
c. provide automobile liability insurance for the license holder.
d. pay for the license holder's board and MLS fees.
iv. Which of the following statements about general partners is FALSE?
a. General partners are involved in running the partnership on a daily basis.
b. General partners have unlimited liability for the debts of the partnership.
c. General partners have liability that will not exceed their initial investment.
, CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
d. General partners are part owners of the partnership.
General partners have general duties (run the day to day operations) and
general liability which may exceed their initial investment.
v. A type of business ownership where the member or manager is not
generally held liable for the debts, obligations or liabilities of the company is
a(n):
a. sole proprietorship.
b. Limited Liability Company.
c. SubChapter S Corporation.
d. partnership.
LLCs are a good way to set up a partnership/corporation to limit a manager's
personal liability for the debts of the company.
vi. A young couple wants to purchase a home and take title so that if one
spouse dies, the other immediately becomes the sole owner of the property.
They ask their agent how to do this. The agent should:
a. tell them to talk to an attorney about title concerns.
, CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
b. tell them to take title as Tenants in Common.
c. tell them to take title as Joint Tenants.
d. tell them to take title as Tenants by the Entirety.
Speaking to an attorney about legal matters (like how to take title) is a
good idea. An attorney will advise the client on the legal consequences of
taking title as tenancy in common or joint tenancy/tenancy by the
entirety.
vii. A buyer has a contract with a due diligence clause in it. If the buyer is not
satisfied with the results of inspections on the property, the due diligence
clause:
a. allows the buyer to address his concerns with the seller.
b. allows the buyer to terminate the contract during the due diligence period.
c. allows the buyer to sue the seller to make repairs.
d. allows the buyer to sue the seller for misrepresentation of property
condition.
viii. When should an agent advise a client to see an attorney?
a. after all the paperwork has been filled out and signed.
b. before viewing any properties.
c. at the time that the agency agreement is negotiated.
d. before the client signs anything he/she does not understand.
ix. An investment property owner wants to do a 1031 tax deferred exchange. He
contacts a license holder about it and asks for advice. The agent does not
have any experience with this type of transaction. The agent should:
a. advise the owner to talk to a commercial broker.
b. tell the owner that he can handle this, and then get some advice from his
broker.
c. tell the owner the he is not experienced in this and advise the owner
to talk to a Certified Public Accountant.
d. agree to represent the owner, and then read up on 1031 exchanges.
, CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
A court order directing the county sheriff to seize and sell property of a
debtor to satisfy a lien is:
a. An injunction
b. A writ of execution
c. A lis pendens
d. A judgment
A writ of execution is used to enforce payment of a lien. An injunction is a court order to
stop a behavior or practice, a Lis Pendins is a legal notice that a lawsuit has been filed but
not yet heard in court and a judgment is a general lien on a property.
Which of the following would not terminate an easement?
a. Merger
b. Acquiring the adjacent property
c. Prescription
PREP EXAM 1 WITH ANSWERS
i. John owns the dominant estate with an easement appurtenant. John sells
the property. What happens to the easement?
a. A commercial tenant's lease will expire at the end of the month. It is
terminated by the sale.
b. It belongs to the buyer.
c. (Its ownership must be negotiated outside the sale.
d. John retains ownership of the easement.
Appurtenant In real property law, this describes any right or restriction that
goes with that property, such as an easement to gain access across the
neighbor's parcel, or a covenant (agreement) against blocking the neighbor's
view.
ii. A broker has a oneonone relationship with a client. This is an example of:
a. brokerage.
b. agency.
c. independent contractor status.
d. a partnership.
iii. When a broker sponsors a license holder, the license holder usually remains
an independent contractor. If a broker moves an independent contractor to
employee status, the broker MUST:
a. pay payroll taxes for the license holder.
b. require the license holder to make a fulltime commitment.
c. provide automobile liability insurance for the license holder.
d. pay for the license holder's board and MLS fees.
iv. Which of the following statements about general partners is FALSE?
a. General partners are involved in running the partnership on a daily basis.
b. General partners have unlimited liability for the debts of the partnership.
c. General partners have liability that will not exceed their initial investment.
, CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
d. General partners are part owners of the partnership.
General partners have general duties (run the day to day operations) and
general liability which may exceed their initial investment.
v. A type of business ownership where the member or manager is not
generally held liable for the debts, obligations or liabilities of the company is
a(n):
a. sole proprietorship.
b. Limited Liability Company.
c. SubChapter S Corporation.
d. partnership.
LLCs are a good way to set up a partnership/corporation to limit a manager's
personal liability for the debts of the company.
vi. A young couple wants to purchase a home and take title so that if one
spouse dies, the other immediately becomes the sole owner of the property.
They ask their agent how to do this. The agent should:
a. tell them to talk to an attorney about title concerns.
, CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
b. tell them to take title as Tenants in Common.
c. tell them to take title as Joint Tenants.
d. tell them to take title as Tenants by the Entirety.
Speaking to an attorney about legal matters (like how to take title) is a
good idea. An attorney will advise the client on the legal consequences of
taking title as tenancy in common or joint tenancy/tenancy by the
entirety.
vii. A buyer has a contract with a due diligence clause in it. If the buyer is not
satisfied with the results of inspections on the property, the due diligence
clause:
a. allows the buyer to address his concerns with the seller.
b. allows the buyer to terminate the contract during the due diligence period.
c. allows the buyer to sue the seller to make repairs.
d. allows the buyer to sue the seller for misrepresentation of property
condition.
viii. When should an agent advise a client to see an attorney?
a. after all the paperwork has been filled out and signed.
b. before viewing any properties.
c. at the time that the agency agreement is negotiated.
d. before the client signs anything he/she does not understand.
ix. An investment property owner wants to do a 1031 tax deferred exchange. He
contacts a license holder about it and asks for advice. The agent does not
have any experience with this type of transaction. The agent should:
a. advise the owner to talk to a commercial broker.
b. tell the owner that he can handle this, and then get some advice from his
broker.
c. tell the owner the he is not experienced in this and advise the owner
to talk to a Certified Public Accountant.
d. agree to represent the owner, and then read up on 1031 exchanges.
, CHAMPIONS SCHOOL OF REAL ESTATE SALESPERSON NATIONAL
PREP EXAM 1 WITH ANSWERS
A court order directing the county sheriff to seize and sell property of a
debtor to satisfy a lien is:
a. An injunction
b. A writ of execution
c. A lis pendens
d. A judgment
A writ of execution is used to enforce payment of a lien. An injunction is a court order to
stop a behavior or practice, a Lis Pendins is a legal notice that a lawsuit has been filed but
not yet heard in court and a judgment is a general lien on a property.
Which of the following would not terminate an easement?
a. Merger
b. Acquiring the adjacent property
c. Prescription
