Salesperson Examination

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Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.

A buyer working with an agent makes an offer on a property offered for sale by the owner. The offer is contingent upon the buyer’s securing an FHA loan. Does this loan have to follow RESPA guidelines?

a.	No, because FHA and VA loans do have to meet HUD guidelines, but not RESPA guidelines.	c.	Yes, because the FHA loan is guaranteed by the government
b.	No, because the offer was made by a buyer working with a broker.	d.	Yes, because it is a single-family residential property.

Which of the following is a typical characteristic of an FHA or VA loan?

a.	They are backed by the government and are not assumable.	c.	Prepayment penalties cannot be charged on these loans.
b.	The down payment on these loans can normally be financed.	d.	Typically, these loans must be repaid within 15 years.

A parent wants to transfer her property to her daughter who will take over the payments on the loan. The loan balance is $75,000. The property can be transferred if the loan does NOT contain a(n).

a.	Alienation Clause.	c.	Defeasance Clause.
b.	Acceleration Clause.	d.	Non-disturbance Clause.

Mr. Buyer purchased two parcels of land. One was one-mile square and the other contained ten acres. If the land cost $2,500.00 an acre, what was the cost of the land?

a.	$1,265,000.00	c.	$1,526,000.00
b.	$1,625,000.00	d.	$1,600,000.00

An offer has been accepted on a property. After the title search, who gives an opinion of the title?

a.	An attorney	c.	The buyer
b.	The seller	d.	The broker

The Buyers just purchased their first house, which sits on five acres. They intend to keep goats on the property. Which of the following would allow or disallow them to keep goats?

a.	Federal ordinances	c.	Zoning
b.	State Ordinances	d.	Neighbors

A buyer made an offer of $250,000 on a property with no contingencies and the offer was accepted. The buyer planned to build a shopping center, but never mentioned it to the agent. Just before the closing, the buyer discovered that he could not build the shopping center. What is the status of the sales contract?

a.	Valid	c.	Voidable
b.	Void	d.	Unenforceable

A disabled person moved into an apartment and at his own expense lowered the light switches, lowered the kitchen cabinets, installed handrails and widened the doorways. At the expiration of the lease, which of the following would the tenant LEAST LIKELY have to return to its original condition?

a.	Light switches	c.	Handrails
b.	Kitchen Cabinets	d.	Doorways

Which of the following BEST describes physical depreciation?

a.	Functional obsolescence caused by poor design.	c.	Deterioration caused by the age of the building.
b.	External obsolescence caused by an outside factor	d.	Deterioration caused by normal wear and tear of the property.

10.

Which of the following must be disclosed when the agent is showing a house?

a.	Mortgage balance.	c.	That the property is in a flood-plain zone.
b.	The asking price of other homes in the neighborhood.	d.	The Original cost of the property.

11.

What type of interest is normally computed on a residential loan?

a.	Simple	c.	Annual
b.	Compound	d.	Monthly

12.

Which of the following is an example of an emblement?

a.	A stand of walnut trees.	c.	An apple orchard
b.	A field of corn.	d.	A vineyard

13.

A buyer’s agent is usually considered to be in what kind of relationship to the seller?

a.	Client	c.	Agency
b.	Customer	d.	Subagency

14.

A mortgage document and mortgage note are

a.	non-negotiable instruments	c.	used by mortgagors to secure liens on a property.
b.	debt-releasing documents	d.	standard security instruments

15.

Who is the Optionee in an option contract?

a.	vendor	c.	lessor
b.	vendee	d.	lessee

16.

J sells a property to H, then h leases it back to J. At the conclusion of this transaction, what is the status of J’s interest in the property?

a.	Fee simple absolute	c.	A freehold interest
b.	Fee simple defeasible	d.	nonfreehold interest

17.

Which of the following is a physical characteristic of Real Estate?

a.	Mobility	c.	Uniqueness
b.	Scarcity	d.	Transferability

18.

Which of the following entities normally purchases mortgages in the secondary mortgage market?

a.	Mortgage banking companies	c.	Federal Housing Administration
b.	Freddie Mac (FHLMC)	d.	Department of Veterans Affairs

19.

A broker listed a property, but the owner secured a buyer. The broker collected the commission. The type of listing agreement the seller signed is a(n)

a.	exclusive-right-to-sell listing	c.	open listing
b.	exclusive agency listing.	d.	net listing

20.

The federal Truth-in-Lending Act

a.	requires a lender to estimate a borrower’s loan closing charges on all mortgages.	c.	prevents brokers from using phrases like “FHA-VA financing available” in classified ads.
b.	regulates advertising that contains information regarding mortgage terms.	d.	dictates that all mortgage loan applications be made on specially-prepared government forms.

21.

Recording a deed provides the greatest benefit for the

a.	grantor	c.	attorney
b.	public	d.	grantee

22.

Which of the following documents is only signed by one party to the transaction.

a.	Purchase agreement	c.	Option
b.	Listing agreement	d.	Warranty Deed

23.

The ability to pay for a home is the foremost consideration in choosing a home. What is the second consideration?

a.	Specification	c.	Improvements
b.	Age	d.	Location

24.

The most important test in determining whether something is a fixture is

a.	the weight and/or size	c.	its method of attachment
b.	it’s amount of utilization	d.	the intention or the party who attached it

25.

A section of real estate

a.	contains 460 acres	c.	contains 43,560
b.	is 1-mile square	d.	is numbered to indicate either north or south

26.

A married couple decided to sell their home. the husband owned the property in severalty. Thirty minutes before the sales agent was scheduled to arrive, the wife had to leave for an emergency. the husband stayed for the appointment. Who must sign the listing agreement?

a.	Only the husband needs to sign the listing.	c.	The husband should sign the listing on behalf of both himself and his wife.
b.	Only the wife needs to sign the listing.	d.	as a married couple, both the husband and wife should sign the listing agreement.

27.

Which of the following is not necessary for a listing contract

a.	The signatures of all the parties on the deed	c.	The signature of the broker
b.	The signature of the sellers	d.	The signature of the buyer

28.

A couple owns their property as tenants by the entirety. The agent secured the signature of one spouse on the listing contract. Which of the following is TRUE?

a.	Both signatures are required.	c.	Only one spouse is required to sign because they are married
b.	one spouse can sign because they each have an equal interest in the property.	d.	If it’s an open listing, the agent has the proper signature

29.

A real estate tax lien takes priority over which of the following?

a.	Encroachment	c.	Mortgage Lien
b.	Encumbrance	d.	Deed restrictions

30.

The principles of appraising include which of the following?

a.	Reserves for replacement	c.	Highest and best use
b.	Operating expense ratio	d.	Holding period

31.

Agents of Happy Valley Realty recently sold a home for $143,500. The brokerage charged the sellers a 6.5 percent commission. The broker paid the agent who secured the buyer 25 per-cent of the commission and the listing agent 30 percent of the commission collected. How much was the listing salesperson paid?

a.	$3,731	c.	$2,798
b.	$2,332	d.	$6,529

32.

The interest portion of a borrower’s last monthly payment was $291.42. If the borrower is paying interest at the rate of 8.25 percent, what was the outstanding balance of their loan before the last payment was made?

a.	$43,713.00	c.	$36,427.50
b.	$42,388.36	d.	$34,284.70

33.

A home is valued at $65,000. Property in their area is assessed at 60 percent of its value, and the local tax rate is $2.85 per hundred. How much are the owners monthly taxes?

a.	$1,111.50	c.	$111.15
b.	$926.30	d.	$92.63

34.

An investor leases 12 apartments for a total monthly rental of $3,000.00. If this figure represents an 8 percent annual return on the investment, what was the original cost of the property?

a.	$450,000.00	c.	$45,000.00
b.	$360,000.00	d.	$36,000.00

35.

A broker receives a check for earnest money from a buyer and deposits the money in an escrow or trust account. He does this to protect him from the charge of which of the following?

a.	Commingling	c.	Lost or stolen funds
b.	Novation	d.	Embezzlement

36.

By paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is the right called?

a.	Acceleration	c.	Reversion
b.	Redemption	d.	Recovery

37.

A grandmother grants a life estate to her grandson and stipulates that, upon his death, the title will pass to her son-in-law. What is the second estate called?

a.	Estate in reversion	c.	Estate for years
b.	Estate n remainder	d.	Estate in recapture

38.

Under joint tenancy

a.	There is a right of survivorship	c.	The fractional undivided interest may be different
b.	only two people can own real estate	d.	the estate is inheritable

39.

In some states, a lender holds title to the mortgaged land. These states are known as

a.	Title-theory states	c.	statutory share states
b.	lien-theory states	d.	dower rights states

40.

The borrower’s offer of $190,000 was accepted. She has a 10 percent down payment and would like to avoid paying for private mortgage insurance. Is there a loan that would allow her to accomplish her goal?

a.	Yes, she can borrow $19,000 from a private source, tell the lender she has a 20 percent down payment instead of a 10 percent down payment, and avoid private mortgage insurance.	c.	No, because all borrowers must pay private mortgage insurance when negotiating any type of loan.
b.	Yes, if the seller will negotiate a purchase-money mortgage for $19,000 and agree to be in a second lien position she can avoid private mortgage insurance.	d.	No, because private mortgage insurance is always paid when a borrower has less than a 20 percent down payment.

41.

Which of the following is NOT an example of a subdivision rule and regulation?

a.	The agreement that the property cannot be sold and used as a waste disposal site	c.	The agreement that walls and fences shall not exceed four feet in height
b.	The agreement that a tree house cannot be built on the property	d.	The agreement that no structure of a temporary character shall be considered an any lot

42.

Which of the following is NOT an example of an appurtenance that would transfer when the property is sold?

a.	Easement	c.	Deed restriction
b.	Lease	d.	License

43.

A couple wants to list a home they have lived in for 38 years because they have decided to move to Florida before the winter storms arrive. The listing agent is aware that zoning may change in the area, which would greatly increase the value of their property. The agent should

a.	say nothing in case the zoning doesn’t change	c.	list the property because she has a buyer that has already shown interest, and if it sells, the sellers will be in Florida before the winter storms
b.	inform the sellers of all the facts she has regarding the zoning change, and let them make the decision about listing the property.	d.	list the property and say nothing because if the zoning does change, the listing contract will be void anyway.

44.

Which of the following is NOT a depreciation factor when assessing the value of a property?

a.	A house with four bedrooms located on the second floor and the bath located on the first floor	c.	A house located next to a city park
b.	A hog farm located one-half mile down the road from a $250,000 home.	d.	A house, which cost $50,000 to build 40 years ago with major cracks in the foundation.

45.

What is a tenancy at will?

a.	a tenancy with the consent of the landlord	c.	a tenancy created by the death of the owner
b.	a tenancy that expires on a specific date	d.	a tenancy created by the testator

46.

The value of a piece of land

a.	is the present worth or future benefits	c.	is what a buyer pays for the property
b.	includes a measure of past expenditures	d.	is the same as the market price.

47.

A seller wants to net $65,000.00 on his house after paying the broker’s fee of 6 percent. What will the gross selling price be?

a.	$69,149.00	c.	$67,035.00
b.	$68,900.00	d.	$66,091.00

48.

A buyer is purchasing a condominium in a new subdivision and obtaining financing from a local savings and loan association. Which of the following best describes the borrower?

a.	Vendor	c.	grantor
b.	Mortgagee	d.	Mortgagor

49.

All of the following terminate an offer EXCEPT

a.	revocation of the offer before acceptance	c.	A counteroffer by the offeree
b.	death of the offeror before acceptance	d.	an offer from a third party

50.

A buyer is purchasing a house under a contract for deed. Until the contract is paid, the buyer has

a.	legal title to the premises	c.	a legal life estate in the premises
b.	no interest in the property	d.	equitable title in the premises

51.

A broker receives an earnest money deposit with a written offer that gives the seller ten days to accept clause. On the fifth day, and prior acceptance of the seller, the buyer, notifies the broker he is withdrawing his offer and demands that his deposit is returned. In this situation the

a.	Buyer cannot withdraw the offer; it must be held open for the full ten days.	c.	the Broker can notify the seller that the buyer is withdrawing his offer and that each of them can retain one-half of the deposit.
b.	Buyer has the right to revoke his offer and secure the return of the deposit at any time before he is notified of Carla’s acceptance	d.	the Broker can declare the deposit forfeited and retains it for his services and commission

52.

Two people are joint tenants. one person sells his interest to another friend. What is the relationship of the friend of the other joint tenant?

a.	They are automatically joint tenants	c.	There is no relationship because the sale from George to Percy of joint tenancy is ineffective
b.	They are tenants in common	d.	Each owns a divided one-half interest

53.

A homeowner who always maintains his house has just discovered that he has a termite infestation. This is an example of

a.	incurable physical obsolescence	c.	possible curable economic obsolescence
b.	possible curable physical obsolescence	d.	incurable internal obsolescence

54.

When appraising property, the appraiser considers which of the following?

a.	The original price paid for the property, if purchased within three years	c.	The average cost of comparable properties, after adjustments are made
b.	The reconciliation of the values determined by the different methods of appraising	d.	The cost of updating the subject property, rather than the cost of replacing the carpet

55.

When appraising a property, the appraiser determines the most probable price that a buyer would be willing to pay for a property. This is known as a(n)

a.	objective value/fair market value	c.	plottage value
b.	subjective value/fair market value	d.	use value

56.

On Monday, an agent receives an offer from a buyer for $12,000.00 on a vacant lot he has for sale. On Tuesday, the seller rejects the offer, counteroffers at $13,000.00 and gives the buyer 3 days to accept. On Friday, the buyer rejects the counteroffer, and upon being informed of the rejection, the seller says he will accept the buyer’s original offer. Under these conditions there is

a.	a valid agreement, because buyer accepted the agent’s offer exactly as it was made	c.	a valid agreement, because buyer accepted before advised her that the offer was withdrawn
b.	not a valid agreement because buyer’s offer was rejected, and once rejected, it cannot be later accepted	d.	not a valid agreement, because the agent’s offer was not accepted within 72 hours.

57.

Due to economic growth in an area, a house designed by a famous architect is now in a flight pattern from a nearby airport. This is an example of

a.	Incurable external obsolescence.	c.	Incurable functional obsolescence.
b.	Curable external obsolescence.	d.	Curable functional obsolescence.

58.

In an appurtenant easement the property burdened by the easement, is known as

a.	prescriptive estate	c.	condemned estate
b.	dominant estate	d.	servient estate

59.

Which of the following is NOT found in the appraisal report?

a.	the date of the inspection	c.	the adjustments of the subject property
b.	the condition of the subject property	d.	the signature of the appraiser

60.

Unless stated otherwise in the listing contract, the buyer should receive upon the purchase of the property

a.	air rights, surface rights, and subsurface rights	c.	air rights and subsurface rights
b.	air rights and surface rights	d.	air rights and mineral rights

61.

A house sold for $84,500 and the commission rate was 7 percent. If the commission is split 60/40 between the selling broker and the listing broker. Each broker splits his share of the commission evenly with his salesperson. How much will the listing salesperson earn from the sale of the house.

a.	$1,774.00	c.	$1,020.00
b.	$1,183.00	d.	$2,366.00

62.

The purchase price of a property is $84,500.00. The buyers wrote an earnest check for $2,000.00 and obtained a new mortgage of $67,600. The closing is scheduled for March 15. The buyers and sellers prorate the taxes of $1,880.96, which have been prepaid. The sellers’ closing costs of $1,250.00 and the buyers closing costs are $850.00. How much cash must the buyers bring to the closing? (use a 360 day year.)

a.	$17,239.09	c.	$16,541.87
b.	$17,639.09	d.	$19,639.09

63.

A loan is originated for 80 percent of the appraised value. The mortgage interest rate is 8 percent, and the first-month interest is $460. What is the appraised value of the house?

a.	$86,250.00	c.	$69,000.00
b.	$71,875.00	d.	$92,875.00

64.

A building is 100’ by 150’ and sits on a lot valued at $25,000. The replacement cost of the property is $25 per square foot, and it has depreciated 5 percent. What is the value of the property?

a.	$375,000.00	c.	$481,250.00
b.	$381,250.00	d.	$318,250.00

65.

After a broker listed a property, he discovered that the client had previously been declared incompetent by a court of law. The listing is

a.	binding, as the broker was acting in good faith as the seller’s agent	c.	valid because the owner signed the agreement
b.	void because the owner had been declared incompetent.	d.	voidable by the seller if he changes his mind within the first week.

66.

An owner defaulted on his home loan payments, and the lender obtained a court order to foreclose on the property. At the foreclosure sale, the owner’s house sold for $29,000; and the unpaid balance on the loan at the time of foreclosure was $40,000. What must the lender do to recover the $11,000.00 the defaulted borrower still owes?

a.	Sue for damages	c.	Seek a judgment by default
b.	Sue for specific performance	d.	Seek a deficiency judgment

67.

All of the following are exemptions to the federal Fair Housing Act of 1968 EXCEPT the

a.	the sale of a single-family home where the listing broker does not advertise the property	c.	the restriction of non-commercial lodgings by a private club to members of that club
b.	the rental of a unit in an owner-occupied, three-family dwelling where no advertisement in placed in the paper	d.	the property is a state or local housing program designed specifically for the elderly

68.

A broker holds a listing on a vacant lot measuring 100’ by 125’ at a listing price of $250 per front foot. The commission that the broker will collect is 8 percent. If the property sells for its full asking price, what will be the broker’s fee?

a.	$2,500	c.	$1,500
b.	$2,000	d.	$1,250

69.

A house is listed for $47,900. A Hispanic couple saw the house and were interested in purchasing it. When they asked the price of the house, the listing agent said it was $53,000. under the Federal Fair Housing Act of 1968, such a statement is

a.	legal, because all that is important is that everyone is given the right to buy the house.	c.	illegal, because the difference in the offering price and the quoted price was greater than $5,000
b.	legal, because the statement was made by the agent, and not by the owner	d.	illegal, because the terms of the sale were changed for the Hispanic couple

70.

The market rent for a duplex is $650 per month per unit. If the GRM is 125, what is the value of the property?

a.	$81,250	c.	$126,500
b.	$162,500	d.	$216,500

71.

House keys are considered to be

a.	personal property because they are movable	c.	real property because sales contracts stipulate that they will be transferred
b.	personal property because they are not attached	d.	real property because of the adaptation to the real estate

72.

In the lease agreement, a tenant has agreed to build out space to meet her needs at her expense. The chattel fixtures that she adds to the property are the

a.	property of the landlord upon the expiration of the lease because they are now attached to the property.	c.	tenants’ as long as they are removed from the property on or before the expiration of the lease because she paid for them.
b.	tenants’ as long as they are removed from the property on or before the expiration of the lease and she leaves the property in good repair	d.	property of the landlord automatically upon their addition and the property must be left in good repair.

73.

A,B, and C are co-owners or property. When C dies testate, A and B are the devisees to her one-third interest in the property. How do they own the property?

a.	Joint tenancy	c.	Severalty
b.	Tenancy in common	d.	Partnership Tenancy

74.

Which of the following is an example of a freehold inheritable estate?

a.	Life estate	c.	Estate at Will
b.	Dower estate	d.	Fee simple defeasible estate

75.

A buyer moved into a condominium that boasted of many common facilities, including a swimming pool, tennis courts, and a putting green. Under a typical condominium arrangement, these common elements are owned by

a.	an association of homeowners organized as a Limited Liability Company	c.	the owners of all the other units in the form of an undivided percentage interest
b.	a corporation in which the owners of all the units own stock	d.	the owners of all the units in the form of divided interests

76.

In a graduated-payment loan

a.	mortgage payments decrease	c.	mortgage payments increase for a period of time and then level out.
b.	mortgage payments balloon in five years	d.	the interest rate on the loan adjusts annually

77.

A buyer feels that he has been the victim of an unfair discriminatory practice by a local broker. His complaint must be filed with HUD within

a.	3 months of the alleged discrimination	c.	9 months of the alleged discrimination
b.	6 months of the alleged discrimination	d.	12 months of the alleged discrimination

78.

A mortgage using both real and personal property as security is a

a.	blanket mortgage	c.	dual mortgage
b.	package mortgage	d.	wraparound mortgage

79.

If a buyer obtains a mortgage for $50,000.00 with four points, how much will she be charged by the lender at closing for the points

a.	$6,000	c.	$2,000
b.	$200	d.	$600

80.

A borrower obtained a second mortgage loan for $7,000. The loan called for payments of $50 per month, including 6 percent interest over a period of five years, with the final payment installment made as a balloon payment including the remaining outstanding principal. What type of loan is this?

a.	Fully amortized loan	c.	Partially amortized loan
b.	Straight loan	d.	Accelerated loan

81.

A buyer bought property in a secluded area adjacent to the Atlantic Ocean. Shortly thereafter, he noticed that people from his town often walked along the shore in front of his property. He later learned that the locals have been walking along this beach for years. The owner went to court to try to stop people from walking along the water’s edge in front of his property. He is likely to be

a.	unsuccessful, because the local citizens were walking there before he bought the property, and thus had an easement	c.	successful, because of the doctrine of riparian rights
b.	unsuccessful, because under the doctrine of littoral rights, he owns the property only to the high-water mark, and the public can use the land beyond that mark	d.	successful, because he has the right to control access to his own property

82.

All of the following are true about the concept of adverse possession EXCEPT

a.	the person taking possession of the property must do so without the consent of the owner	c.	the person taking possession of the property must compensate the owner at the end of the adverse possession period
b.	occupancy of the property by the person taking possession must be continuous over a specified period.	d.	the person taking possession of the property may end up owning the property.

83.

Reconciliation is an appraisal term used to describe:

a.	the appraiser’s determination of a property’s highest value.	c.	the appraiser’s analysis and comparison of the results of each appraisal approach
b.	the average values for properties similar to the one being appraised	d.	the method used to determine a property’s most appropriate capitalization rate

84.

In consideration for $15,000, an owner gives a potential buyer the option to purchase a property for $200,000 within 60 days. In this contract, the buyer is a(n)

a.	Optionor	c.	Optionee
b.	escrowee	d.	grantor

85.

When a mortgage loan has been paid in full, which of the following is the most important thing for a borrower to do?

a.	Put the paid note and all canceled papers in a safe-deposit box	c.	Be sure the mortgagor signs a satisfaction of mortgage
b.	Arrange to receive and pay future real estate tax bills	d.	Record the satisfaction of mortgage

86.

Normally, the priority of general liens is determined by the

a.	order in which they are filed or recorded	c.	size of the claim
b.	order in which the cause of action arose	d.	clerk of the court

87.

When property is held in tenancy by the entirety

a.	the owners must be husband and wife	c.	there is no right of survivorship
b.	either owner may half the property by signing a quitclaim deed	d.	the property may be commercial

88.

The practice of directing potential buyers into or out of neighborhoods based on a protected class is known as

a.	canvassing	c.	redlining
b.	blockbusting	d.	steering

89.

A broker was paid a commission when the sellers found the buyer. The brokerage firm MOST LIKELY had a(n)

a.	exclusive agency listing contract with the sellers	c.	exclusive-right-to-sell listing contract with the sellers
b.	net listing contract with the sellers	d.	open listing contract with the other sellers

90.

A broker listed property under a valid written listing agreement. After the sale was completed, the owner was not obligated to pay the broker’s fee. The broker had MOST LIKELY entered into a(n)

a.	Pocket Listing	c.	in-house listing
b.	exclusive-right-to-sell listing	d.	open listing

91.

All of the following are tests for determining a fixture EXCEPT?

a.	the intent of the parties.	c.	the method of attachment of the item.
b.	the size of the item.	d.	the adaptation of the item to the particular real estate.

92.

When real estate is sold under an installment land contract, the vendee’s interest in the property is

a.	a legal title of interest	c.	kept by the mortgagor until the full purchase price is paid
b.	an equitable title interest	d.	held by the mortgagee until the full purchase is paid

93.

To start a condominium, a developer usually files which of the following?

a.	Judgment	c.	Certificate
b.	Lien	d.	Declaration

94.

A buyer agrees to purchase a property for $153,000, and the broker deposits $5,300 earnest money check into the trust account. The seller is unable to provide a good and marketable title, so the buyer demands the return of his earnest money as provided in the contract. What should the broker do?

a.	Deduct his commission and return the balance to the buyer	c.	Return the entire amount of earnest money to the buyer
b.	Deduct his commission and pay the balance to the seller	d.	Pay the entire amount to the seller to spend to get the title updated

95.

If the annual rate of interest on a mortgage loan is 8.5 percent, and the monthly interest payment is $201.46, What is the principal amount of the loan?

a.	$2,417.52	c.	$2,844.14
b.	$28,441.41	d.	$14,270.00

96.

All of the following are contracts between the brokerage and a principal EXCEPT

a.	open listing	c.	multiple listing
b.	net listing	d.	exclusive listing

97.

An owner and a builder enter into a contract to build a structure on the owners vacant land. there were no contingency clauses in the contract. The builder discovers that because of the nature of the soil, the supports must be dug much deeper than he had anticipated. The additional work will cause the builder to lose money on the project. Under these circumstances, the builder

a.	does not have to continue with the contract, under the doctrine of impossibility	c.	can force the owner to renegotiate the contract
b.	does not have to continue with the contract, because the owner does not have the right to force the builder to lose money.	d.	is liable for breach of contract if he fails to perform

98.

A seller presents to the listing agent that a new freeway will be built near his undeveloped land. The listing agent shares that information with a potential buyer, and neither the agent for the buyer check with zoning to confirm the plans for the freeway. The buyer purchases the land without representation from any real estate agent. Several months after the closing, the buyer discovers the freeway is not going to be built. Did the listing agent breach of fiduciary duty to the buyer?

a.	Yes, the agent breached the duty of reasonable care and skill by not checking with zoning as to the status of the freeway before sharing information with a potential buyer.	c.	No, the listing agent did not breach the fiduciary duty to the seller.
b.	Yes, the agent breached the fiduciary duty of disclosure by sharing information without verification.	d.	No, the listing agent did not breach the fiduciary duty to the buyer.

99.

If the market value of a house is $84,500, the assessment ratio is 35 percent and the tax rate is 30 mills, what are the monthly taxes?

a.	$877.25	c.	$73.94
b.	$942.50	d.	$87.72

100.

An owner seeks relief from zoning regulations on the ground of non-conforming use. Effective arguments to the zoning authorities would include all of the following EXCEPT that

a.	That the non conforming use existed prior to the passing of the zoning ordinance.	c.	That the nonconforming use didn’t harm the public health, safety, and welfare.
b.	That he would earn more by using the property for purposes that do not conform to the zoning ordinance.	d.	That conforming to the zoning ordinance would create an undue hardship.

101.

To create a bird sanctuary, an owner would like to purchase part of his neighbor’s property. If the owner has the properties surveyed. all of the following terms would most likely be found in the survey EXCEPT

a.	datum.	c.	point of beginning.
b.	monument.	d.	linear distance.

102.

An option contract:

a.	sets a time limit to keep an offer open.	c.	does not set the sale price for the property.
b.	is an open-ended agreement.	d.	transfers title when it is signed by the seller.

103.

What is the legal procedure or action that may be brought by either the buyer or the seller to enforce the terms of a contract?

a.	Injunction	c.	Lis pendens
b.	Suit for specific performance	d.	Attachment

104.

In the option to purchase real estate, the Optionee

a.	must purchase the property, but may do so at any time within the option period.	c.	as a matter of law can receive a refund of the option consideration if the option is exercised.
b.	has no obligation to purchase the property.	d.	is the prospective seller of the property.

105.

Which of the following contracts would become void on the death of one of the principals?

a.	Listing contracts	c.	Mortgage
b.	Sales contracts	d.	Note

106.

Lot A measured 200’ X 300’ sold for $30,000 per acre. Lot B located down the Street measures 150’ X 200’. If it sells for the same price. Lot A, what is the price of Lot B?

a.	$21,780	c.	$41,322
b.	$20,661	d.	$51,229

107.

A borrower negotiated a $25,000 term mortgage for one year. His semiannual interest was $875. What is the interest rate?

a.	3.5 Percent	c.	5.0 Percent
b.	4.0 Percent	d.	7.0 Percent

108.

The seller left the closing table with a check for $145,250. She paid a 6 percent commission to the brokerage. What was the sale price of the property?

a.	$153,965	c.	$155,418
b.	$154,521	d.	$155,525

109.

A seller netted $275,500 after paying a 6.5 percent commission and $5,000 in other closing costs. What was the sale price?

a.	$280,500	c.	$290,000
b.	$285,500	d.	$300,000

110.

An investment property has annual expenses of $15,000 and the annual net operation income is $50,000. If the value is $500,000, what is the cap rate?

a.	1 percent	c.	15 percent
b.	10 percent	d.	20 percent