VanEd National Real Estate Exam Questions
1. Question: A sublessee is a(n): . Tenant
2. Question: A major disadvantage of owning investment property might be: Lack of Liquidity
3. Question: The most favorable thing about a VA loan is that: VA loans guarranty gives the veteran favorable financing terms
because the lender is protected from loss
4. Question: Once the funds of a construction loan are disbursed to the contractor, and if the sub-contractor is not paid,: . The sub-
contractor can file a lien against the home, even if the home is sold, after it closes
5. Question: Marie dies intestate, and her property will transfer according to intestate succession. This means: . The courts will give
the property based on state law
6. Question: A seller cannot get marketable title due to a break in the chain of title. He will need: 7. : . Quiet title Action
8. Question: Which is the term used for the person or organization who acts as an intermediary for the purpose of obtaining financing?:
Mortgage Broker 9. Question: Seller Andy had a custom table made to fit in a corner of his study, attached to the floorboards on one
end. When he sells his home the table will be considered: A fixture
10. Question: The term lis pendent refers to: . Advance notice of a lawsuit to be filed
11. Question: What kind of zoning would require that a developer build 10% of the homes in a subdivision for low-income families?:
Inclusionary
12. Question: Functional obsolescence can be caused by: . An over-improvement of the property
13. Question: An owner may properly refuse to rent to a prospective tenant because the prospective tenant is: A drug addict with
abusive behavior
14. Question: 'A' purchased a commercial lot from 'B' based on 'B's fraudulent representation as to lot size, zoning, and water
connections. 'A' cannot use the parcel purchased. What remedy should 'A' seek?: Recission
15. Question: An offer is accepted one day after the offer period expires. How could the offeror create a valid contract?: Have the
offeror sign a waiver of the offer period
16. Question: A broker has an exclusive-right-to sell listing. A buyer offers to purchase the listed property. The buyer knows that the
broker is an agent of the seller, yet tells the agent in confidence that she may be willing to increase his offer by $10,000 if it is not
accepted by the seller. The broker:
17. : . Must convey this information to the seller
18 Question: To perfect a lien against personal property, a creditor would record a(n): . Financing Statment
19. Question: A property manager needs to have a bid on floor coverings based on this statement of fact. "The building he manages is
90' by 60'. Sixty percent of the building will be carpeted at a cost of $16.00 per square yard, and the remainder will be tiled at a cost of
$8.00 per square yard. Estimate the cost of the floor covering.: $7,680 20. Question::
21. A FSBO seller and buyer agree to terms on a contract to purchase. The buyer then finds a structural defect during his inspection,
and cancels the contract.: The FSBO seller makes cosmetic repairs to cover the damage, and lists the property with Agent M
and informs him of the defect. Buyer C buys the home, and does not perform an inspection. Only after closing and moving
into the home does buyer C discover the material defect. Who is liable? Both FSBO and Agent M are liabe
22. Question: Which if the following is NOT considered an element of value?: Cost
, VanEd National Real Estate Exam Questions
23. Question: A property has a net income of $40,000.00. One appraiser decides to use a 12 % capitalization rate, while a second
appraiser uses a 10% rate. Use of the higher rate results in: . $66,667 decrease in appraised value 24. Question: A broker is
instructed not to show a property while the owner, who is caucasian, is away. While the owner is out of town, an African American
couple requests to be shown the property. The broker should: . Refuse to show the property
25. Question: An agency that cannot be terminated by an owner is a(n): Agency coupled with an interest
26. Question: A valid contract would be unenforceable because of: The statue of limitations
27. Question: The loan that would command the highest loan-to-value ratio would be for: . A single-family residence
28. Question: Of the following, which would be considered equivalent to an annuity by an owner?: A long term-ground lease
29. Question: Real estate property taxes are based on a banker's year and are payable in arrears. The taxes were $1,214.00 for the
year. The closing is on
April 1. The seller is: Debited, and the buyer is credited $306.67
30. Question: The parcel of land you are viewing is 3 acres. The front of the square lot is 450 feet wide. What is the depth?: 290.4
feet
31 Question: A buyer is obtaining a new private loan with a principal amount of $250,000.00 at 9%. Closing takes place on April 15. The
interest due will appear on the worksheet as: Debit $937.50 to buyer, and credit broker $937.50 32. Question: Two brokers from
different companies have gotten together to discuss what commission they will charge. This is prohibited by: . The
Sherman Anti-Trust Act
33. Question: The previous tenant of your investment listing died of AIDS.
Should you disclose this to potential buyers, and why?: In most states, Fiduciary Duty of Confidentiality precludes you from
disclosing non-material facts (however some states do require disclosure).
34. Question: If you think you smell radon gas in a home,: Investigate the source, as any gas leak is serious and radon gas is
odorless
35. Question: The increased value resulting from the consolidation of 2 adjacent lots into 1 larger lot is:
36. : . Plottage
37. Question: An ad used a term that triggered full disclosure of loan terms.
The ad stated: . $10,000 down
38. Question: Deducting the cost of the property in equal annual installments is: Straight line depreciation
39. Question: Private deed restrictions are: . Restrictive covenants, restrict the use of the property, encumbrances
40. Question: Truth in Lending laws in conjunction with RESPA provide a 3-day right of rescission for what type of loan?: Home Equity
41. Question: A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to: .
Demand immediate payment of the entire note
42. Question: Title is transferred with a ________.: Deed
43. Question: A commercial property whose building has been valued at $500,000 is being depreciated over a 39-year life. If the
property is 11 years old, the depreciation that has been taken would be:
, VanEd National Real Estate Exam Questions
44. : . $141,025
45. Question: What relationship implies a position of trust and confidence?: Fiduciary
46. Question: Which of the following statements about both the Mortgage and Deed of Trust is FALSE?: Both are held b the lender,
with the lender giving most of the property rights to the borrower
47. Question: A prescriptive easement arises in all of the following EXCEPT: Through the owner transferring title to the tenant
48 Question: A property has a first mortgage for $100,000, and the property taxes of $4,500 have NOT been paid. Therefore, which of
the following statements is true?: The property tax lien will be in the first position
49. Question: When can an agent disobey a principle?: If a law would otherwise be broken
50. Question: A broker supplies the financing for a project to build condominiums with the stipulation that she has the exclusive
right to sell the completed condos. Which of the following BEST describes this relationship?: Agency coupled with an interest
51. Question: A couple signed a lease on an apartment for a period of 1 year. The lease DOES NOT contain an automatic renewal
clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply with the
lease term?: No notice is required
52. Question: The real estate contract for a specific property for use as an unlicensed whiskey sales operation was forced to
terminate. The termination was the result of: Impossibility of performance
53. Question: A man had his unlicensed son do the electrical work in preparing his home for sale. He did not disclose this
information to his broker, and after the sale, the new owner suffered a financial loss because of some faulty wiring. Which of the
following statements is true?: The broker is innocent of any wrongful act and the broker is not responsible for latent material
facts
54. Question: Which of the following statements about mold is true?: When mold is found it's best to hire a certified mold
specialist to test
55. Question: In regulations regarding lead-based paint, HUD requires: . Known paint hazards to be disclosed
56. Question: The buyer wants to make an offer on a property contingent on a complex mortgage arrangement. The buyer's agent
who is writing the contract should: Suggest the buyer speak with an attorney for the wordiing
57. Question: Subdivision laws come from: . State law and municipal ordiances 58. Question: When a partially amortized loan
with a 30-year amortization has a provision that at the end of the tenth year all the remaining principal must be paid in one single
payment, this is a: loan. Balloon
59. Question: A contract between a seller and a salesperson is a(n): . Express agreenment
60. Question: Fiduciary authority of an agent to his or her client is terminated: .
When the transaction is completed
61. Question: You and your clients don't get along well, but you are listing their house. You think it's not selling because the price is
too high, and they think it is because you don't have enough open houses. How can your agreement
1. Question: A sublessee is a(n): . Tenant
2. Question: A major disadvantage of owning investment property might be: Lack of Liquidity
3. Question: The most favorable thing about a VA loan is that: VA loans guarranty gives the veteran favorable financing terms
because the lender is protected from loss
4. Question: Once the funds of a construction loan are disbursed to the contractor, and if the sub-contractor is not paid,: . The sub-
contractor can file a lien against the home, even if the home is sold, after it closes
5. Question: Marie dies intestate, and her property will transfer according to intestate succession. This means: . The courts will give
the property based on state law
6. Question: A seller cannot get marketable title due to a break in the chain of title. He will need: 7. : . Quiet title Action
8. Question: Which is the term used for the person or organization who acts as an intermediary for the purpose of obtaining financing?:
Mortgage Broker 9. Question: Seller Andy had a custom table made to fit in a corner of his study, attached to the floorboards on one
end. When he sells his home the table will be considered: A fixture
10. Question: The term lis pendent refers to: . Advance notice of a lawsuit to be filed
11. Question: What kind of zoning would require that a developer build 10% of the homes in a subdivision for low-income families?:
Inclusionary
12. Question: Functional obsolescence can be caused by: . An over-improvement of the property
13. Question: An owner may properly refuse to rent to a prospective tenant because the prospective tenant is: A drug addict with
abusive behavior
14. Question: 'A' purchased a commercial lot from 'B' based on 'B's fraudulent representation as to lot size, zoning, and water
connections. 'A' cannot use the parcel purchased. What remedy should 'A' seek?: Recission
15. Question: An offer is accepted one day after the offer period expires. How could the offeror create a valid contract?: Have the
offeror sign a waiver of the offer period
16. Question: A broker has an exclusive-right-to sell listing. A buyer offers to purchase the listed property. The buyer knows that the
broker is an agent of the seller, yet tells the agent in confidence that she may be willing to increase his offer by $10,000 if it is not
accepted by the seller. The broker:
17. : . Must convey this information to the seller
18 Question: To perfect a lien against personal property, a creditor would record a(n): . Financing Statment
19. Question: A property manager needs to have a bid on floor coverings based on this statement of fact. "The building he manages is
90' by 60'. Sixty percent of the building will be carpeted at a cost of $16.00 per square yard, and the remainder will be tiled at a cost of
$8.00 per square yard. Estimate the cost of the floor covering.: $7,680 20. Question::
21. A FSBO seller and buyer agree to terms on a contract to purchase. The buyer then finds a structural defect during his inspection,
and cancels the contract.: The FSBO seller makes cosmetic repairs to cover the damage, and lists the property with Agent M
and informs him of the defect. Buyer C buys the home, and does not perform an inspection. Only after closing and moving
into the home does buyer C discover the material defect. Who is liable? Both FSBO and Agent M are liabe
22. Question: Which if the following is NOT considered an element of value?: Cost
, VanEd National Real Estate Exam Questions
23. Question: A property has a net income of $40,000.00. One appraiser decides to use a 12 % capitalization rate, while a second
appraiser uses a 10% rate. Use of the higher rate results in: . $66,667 decrease in appraised value 24. Question: A broker is
instructed not to show a property while the owner, who is caucasian, is away. While the owner is out of town, an African American
couple requests to be shown the property. The broker should: . Refuse to show the property
25. Question: An agency that cannot be terminated by an owner is a(n): Agency coupled with an interest
26. Question: A valid contract would be unenforceable because of: The statue of limitations
27. Question: The loan that would command the highest loan-to-value ratio would be for: . A single-family residence
28. Question: Of the following, which would be considered equivalent to an annuity by an owner?: A long term-ground lease
29. Question: Real estate property taxes are based on a banker's year and are payable in arrears. The taxes were $1,214.00 for the
year. The closing is on
April 1. The seller is: Debited, and the buyer is credited $306.67
30. Question: The parcel of land you are viewing is 3 acres. The front of the square lot is 450 feet wide. What is the depth?: 290.4
feet
31 Question: A buyer is obtaining a new private loan with a principal amount of $250,000.00 at 9%. Closing takes place on April 15. The
interest due will appear on the worksheet as: Debit $937.50 to buyer, and credit broker $937.50 32. Question: Two brokers from
different companies have gotten together to discuss what commission they will charge. This is prohibited by: . The
Sherman Anti-Trust Act
33. Question: The previous tenant of your investment listing died of AIDS.
Should you disclose this to potential buyers, and why?: In most states, Fiduciary Duty of Confidentiality precludes you from
disclosing non-material facts (however some states do require disclosure).
34. Question: If you think you smell radon gas in a home,: Investigate the source, as any gas leak is serious and radon gas is
odorless
35. Question: The increased value resulting from the consolidation of 2 adjacent lots into 1 larger lot is:
36. : . Plottage
37. Question: An ad used a term that triggered full disclosure of loan terms.
The ad stated: . $10,000 down
38. Question: Deducting the cost of the property in equal annual installments is: Straight line depreciation
39. Question: Private deed restrictions are: . Restrictive covenants, restrict the use of the property, encumbrances
40. Question: Truth in Lending laws in conjunction with RESPA provide a 3-day right of rescission for what type of loan?: Home Equity
41. Question: A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to: .
Demand immediate payment of the entire note
42. Question: Title is transferred with a ________.: Deed
43. Question: A commercial property whose building has been valued at $500,000 is being depreciated over a 39-year life. If the
property is 11 years old, the depreciation that has been taken would be:
, VanEd National Real Estate Exam Questions
44. : . $141,025
45. Question: What relationship implies a position of trust and confidence?: Fiduciary
46. Question: Which of the following statements about both the Mortgage and Deed of Trust is FALSE?: Both are held b the lender,
with the lender giving most of the property rights to the borrower
47. Question: A prescriptive easement arises in all of the following EXCEPT: Through the owner transferring title to the tenant
48 Question: A property has a first mortgage for $100,000, and the property taxes of $4,500 have NOT been paid. Therefore, which of
the following statements is true?: The property tax lien will be in the first position
49. Question: When can an agent disobey a principle?: If a law would otherwise be broken
50. Question: A broker supplies the financing for a project to build condominiums with the stipulation that she has the exclusive
right to sell the completed condos. Which of the following BEST describes this relationship?: Agency coupled with an interest
51. Question: A couple signed a lease on an apartment for a period of 1 year. The lease DOES NOT contain an automatic renewal
clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply with the
lease term?: No notice is required
52. Question: The real estate contract for a specific property for use as an unlicensed whiskey sales operation was forced to
terminate. The termination was the result of: Impossibility of performance
53. Question: A man had his unlicensed son do the electrical work in preparing his home for sale. He did not disclose this
information to his broker, and after the sale, the new owner suffered a financial loss because of some faulty wiring. Which of the
following statements is true?: The broker is innocent of any wrongful act and the broker is not responsible for latent material
facts
54. Question: Which of the following statements about mold is true?: When mold is found it's best to hire a certified mold
specialist to test
55. Question: In regulations regarding lead-based paint, HUD requires: . Known paint hazards to be disclosed
56. Question: The buyer wants to make an offer on a property contingent on a complex mortgage arrangement. The buyer's agent
who is writing the contract should: Suggest the buyer speak with an attorney for the wordiing
57. Question: Subdivision laws come from: . State law and municipal ordiances 58. Question: When a partially amortized loan
with a 30-year amortization has a provision that at the end of the tenth year all the remaining principal must be paid in one single
payment, this is a: loan. Balloon
59. Question: A contract between a seller and a salesperson is a(n): . Express agreenment
60. Question: Fiduciary authority of an agent to his or her client is terminated: .
When the transaction is completed
61. Question: You and your clients don't get along well, but you are listing their house. You think it's not selling because the price is
too high, and they think it is because you don't have enough open houses. How can your agreement
