Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Real Estate Final Exam Questions and Answers, Exams of Real Estate Management

A comprehensive collection of multiple-choice questions covering various aspects of real estate principles and practices. it's designed to help students prepare for a final exam by testing their understanding of key concepts such as agency agreements, contract law, tax proration, loan calculations, and mortgage terminology. The questions are detailed and require a solid grasp of real estate principles for accurate answers. This resource is valuable for students seeking to solidify their knowledge and improve their exam performance.

Typology: Exams

2024/2025

Available from 04/21/2025

tizian-kylan
tizian-kylan 🇺🇸

2.7

(21)

3.8K documents

1 / 62

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
Real Estate Final Exam (150 Questions)
#1 Latest Version Already Passed
A real estate licensee has a buyer agency agreement. What is the seller in this situation? ✔✔A
customer.
A real estate licensee has a buyer agency agreement. What is the seller in this situation? ✔✔A
customer.
An optionor and an optionee make a contract for an option on a commercial piece of property. If
the optionee decides to exercise his option, when must he perform? ✔✔He must exercise his
option under the terms of the option contract.
An optionor and an optionee make a contract for an option on a commercial piece of property. If
the optionee decides to exercise his option, when must he perform? ✔✔He must exercise his
option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises? ✔✔If the
tenant has loud parties, makes too much noise, and is constantly disturbing other tenants
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13
pf14
pf15
pf16
pf17
pf18
pf19
pf1a
pf1b
pf1c
pf1d
pf1e
pf1f
pf20
pf21
pf22
pf23
pf24
pf25
pf26
pf27
pf28
pf29
pf2a
pf2b
pf2c
pf2d
pf2e
pf2f
pf30
pf31
pf32
pf33
pf34
pf35
pf36
pf37
pf38
pf39
pf3a
pf3b
pf3c
pf3d
pf3e

Partial preview of the text

Download Real Estate Final Exam Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!

Real Estate Final Exam (150 Questions)

#1 Latest Version Already Passed

A real estate licensee has a buyer agency agreement. What is the seller in this situation? ✔✔A customer.

A real estate licensee has a buyer agency agreement. What is the seller in this situation? ✔✔A customer.

An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? ✔✔He must exercise his option under the terms of the option contract.

An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? ✔✔He must exercise his option under the terms of the option contract.

When can a landlord evict a disabled blind or disabled tenant from the premises? ✔✔If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants

When can a landlord evict a disabled blind or disabled tenant from the premises? ✔✔If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants

  1. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker? ✔✔There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.
  2. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker? ✔✔There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.

A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage? ✔✔Enforceable

the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire? ✔✔6/

A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire? ✔✔6/

The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement? ✔✔$36,225. Debit the seller.

The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement? ✔✔$36,225. Debit the seller.

The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June

  1. The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank? ✔✔Loan balance $170,000; interest due $

The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June

  1. The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank? ✔✔Loan balance $170,000; interest due $

The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement? ✔✔$ 248,400. Credit the buyer only.

The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement? ✔✔$ 248,400. Credit the buyer only.

On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan? ✔✔42 months

Are recording fees and title insurance premiums part of the Truth in Lending statement? ✔✔No, These are considered legal, not financing fees and therefore are not part of the Truth in Lending statement.

Are recording fees and title insurance premiums part of the Truth in Lending statement? ✔✔No, These are considered legal, not financing fees and therefore are not part of the Truth in Lending statement.

A mortgage broker ✔✔arranges loans between borrowers and investors.

A mortgage broker ✔✔arranges loans between borrowers and investors.

The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The

Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a ✔✔part purchase mortgage

The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a ✔✔part purchase mortgage

On a $500,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender? ✔✔$510,000.

On a $500,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender? ✔✔$510,000.

The discount points charged by a lender on a federal VA or FHA loan are a percentage of the ✔✔loan amount.

The discount points charged by a lender on a federal VA or FHA loan are a percentage of the ✔✔loan amount.

Which of the following is true of a second mortgage? ✔✔It is usually issued at a higher rate of interest.

Usury MOST nearly means ✔✔illegal interest.

Usury MOST nearly means ✔✔illegal interest.

A borrower bought a $174,000 house with no down payment. The loan was probably ✔✔a VA loan.

A borrower bought a $174,000 house with no down payment. The loan was probably ✔✔a VA loan.

A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? ✔✔• 5%

A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? ✔✔• 5%

Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied? ✔✔Amortized loan

Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied? ✔✔Amortized loan

Which is the most common form of mortgage? ✔✔Amortized loan

Which is the most common form of mortgage? ✔✔Amortized loan

Under RESPA, a copy of Real Estate Settlement Costs And You must be given ✔✔at the time of loan application, or within 3 days of application.

Under RESPA, a copy of Real Estate Settlement Costs And You must be given ✔✔at the time of loan application, or within 3 days of application.

A VA loan may be granted for the purchase of a one-family to four-family property if ✔✔the veteran agrees to live there.

A VA loan may be granted for the purchase of a one-family to four-family property if ✔✔the veteran agrees to live there.

Which of the following would usually occur in a sale-and-leaseback transaction? ✔✔The property is sold on the condition that the new owner lease it back to the seller at the time title passes.

Which of the following would usually occur in a sale-and-leaseback transaction? ✔✔The property is sold on the condition that the new owner lease it back to the seller at the time title passes.

A standardized yardstick expressing the true annual cost of borrowing is expressed as the what? ✔✔APR

A standardized yardstick expressing the true annual cost of borrowing is expressed as the what? ✔✔APR

RESPA would prohibit which of the following acts? ✔✔A: paying of kickbacks

Illumination:

RESPA concerns itself only with educating consumers about the true costs of borrowing and standardizing lending practices. As such, referral "fees" are prohibited.

RESPA would prohibit which of the following acts? ✔✔A: paying of kickbacks

Illumination:

RESPA concerns itself only with educating consumers about the true costs of borrowing and standardizing lending practices. As such, referral "fees" are prohibited.

In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? ✔✔Statutory right of redemption

In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? ✔✔Statutory right of redemption

Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan? ✔✔Monthly payments

Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan? ✔✔Monthly payments

Who are graduated payment mortgages aimed to> ✔✔Particularly at young families who expect to see their earnings rise over the next five to ten years.

Who are graduated payment mortgages aimed to> ✔✔Particularly at young families who expect to see their earnings rise over the next five to ten years.

The maximum permissible "loan to value ratios" are ✔✔based on sale price or appraised value, whichever is lower.

The maximum permissible "loan to value ratios" are ✔✔based on sale price or appraised value, whichever is lower.

Are there any state-mandated qualifying requirements for conventional loans? ✔✔No, Not only are guidelines not uniform, qualification standards can vary enormously from lender to lender.

Are there any state-mandated qualifying requirements for conventional loans? ✔✔No, Not only are guidelines not uniform, qualification standards can vary enormously from lender to lender.

A buyer wants to take out an FHA loan. The broker should refer the buyer directly to ✔✔any approved lending institution such as a bank or savings and loan association.

A buyer wants to take out an FHA loan. The broker should refer the buyer directly to ✔✔any approved lending institution such as a bank or savings and loan association.

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act? ✔✔No. Owners are not covered by Regulation Z.

An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act? ✔✔No. Owners are not covered by Regulation Z.

Why is the RESPA closing statement allowed to be examined on or before closing? ✔✔To check for mathematical errors

Why is the RESPA closing statement allowed to be examined on or before closing? ✔✔To check for mathematical errors

If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support? ✔✔If the parent was relying on the income for repayment of the loan

If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support? ✔✔If the parent was relying on the income for repayment of the loan

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it? ✔✔The trustor

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it? ✔✔The trustor

Trustor is another name for? ✔✔Borrower

Trustor is another name for? ✔✔Borrower

The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee? ✔✔$14,

The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee? ✔✔$14,

Discrimination is prohibited in lending practices under ✔✔ECOA

Discrimination is prohibited in lending practices under ✔✔ECOA

A buyer assumes the mortgage. How is the owner relieved of the liability? ✔✔Novation

A buyer assumes the mortgage. How is the owner relieved of the liability? ✔✔Novation