Course Exam- Principles of Real Estate Ver. 6.0

Please enter your name

First NameLast Name

Date

To the student: This exam is proctored by our school via webcam. This is not an open-book exam. You may use scratch paper and a basic calculator as needed. You may take a short break for the restroom if needed. The passing grade is 75 out of 100. Retake can be taken at no cost. Ready? Please click on the circle for the correct answer.

1. A man's house has been listed for sale for more than one year and he is very anxious to move into a retirement community. A real estate professional, who is a subagent of the seller, tells a prospective buyer to make a low offer because she is sure that the seller will accept it. Regarding the real estate professional's conduct, which of the following is FALSE?

A. She acted appropriately to sell the seller's property.B. Her conduct implies she is representing the buyer.C. She violated her fiduciary duty to the seller.D. She should not assume that an anxious seller will accept a lower offer.

2. A broker arrives to present a purchase offer to a disabled woman and finds her son and his wife also present. In the presence of the broker, both individuals persistently urge the woman to accept the offer, even though it is much lower than the price she has been asking for her home. If the woman accepts the offer, she may later claim that

A. the broker should not have brought her such a low offer for her property.B. she was under duress from her son and daughter-in-law, and therefore, the contract is voidable.C. the broker defrauded her by allowing her son and his wife to see the purchase offer he brought to her.D. her consumer protection rights were usurped by her son and daughter-in-law.

3. If the quarterly interest on a loan at 7.5% is $562.50, the principal amount of the loan is

A. $7,500.B. $15,000.C. $75,000.D. $30,000.

4. A home mortgage loan closed on July 1 for $765,000 at 5.5% interest amortized over 25 years at $4,697.77 per month. Using a 360-day year, what would the principal amount be after the monthly payment was made August 1?

A. $764,936.30B. $764,106.25C. $754,275.00D. $763,808.48

5. Tina buys a cat and keeps it in her apartment, even though her apartment lease includes a clause that prohibits tenants from owning a pet. She does not remove the cat even after the landlord gives her a written reminder of the lease agreement and insists that she remove the pet from the apartment. Tina refuses, saying that the cat is very small and will cause no damage to the apartment.The landlord decides to remove Tina due to the breach of the lease agreement. The legal process to remove the tenant is known as

A. actual eviction.B. eminent domain.C. constructive eviction.D. partial eviction.

6. A woman held fee simple title to a vacant lot adjacent to a business. She was persuaded to make the lot available to the business. She had her attorney prepare a deed that conveyed ownership of the lot to the business "so long as it is used for commercial purposes." After the completion of the gift, the business will own

A. a life estate.B. a tenancy for years.C. a periodic tenancy.D. a determinable fee estate.

7. The term improvements, when referring to real estate, includes

A. shrubbery.B. trees.C. lawns.D. sidewalks.

8. A woman owns 50 acres of land with 500 feet of frontage on a desirable recreational lake. She wishes to subdivide the parcel into salable lots, but she wants to retain control over the lake frontage while allowing lot owners to have access to the lake. Which of the following types of access rights would provide the greatest protection for a prospective lot purchaser?

A. Appurtenant easementB. Easement in grossC. Easement by necessityD. License

9. If a buyer offers to purchase a home for $300,000 subject to the buyer selling a home the buyer currently owns, the fact of the contract being subject to the buyer first selling his property is known as

A. a contingency.B. an option.C. a condition.D. a cloud on the title.

10. Because a couple no longer needs their large house, they decide to sell it and move into a cooperative apartment building. In a cooperative, they will

A. own their individual apartment.B. become shareholders in a corporation.C. own the common elements.D. receive a 20-year lease to their apartment.

11. Which of the following is NOT a test to identify a fixture?

A. Intent of the partiesB. Method of attachment of the itemC. Size of the itemD. Adaptation of the item to the real estate

12. Assuming the listing broker and the selling broker in a transaction split their commission equally, what was the sales price of the property if the commission rate was 6.5% and the listing broker received $12,593.50?

A. $139,900B. $387,472C. $256,200D. $193,746

13. A man owned two acres of land. He sold one acre to a neighbor and reserved for himself an appurtenant easement over his neighbor's land for ingress and egress. The man's land

A. is the servient tenement.B. is the dominant tenement.C. can be cleared of the easement when the man sells the withheld acre to a third party.D. is subject to an easement in gross.

14. The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that

A. the seller owned the property.B. there are no encumbrances against the property.C. the buyer now owns the property subject to certain claims of the seller.D. all the seller's interest in the property, if any, belongs to the buyer.

15. If an owner takes his property off the market for a definite period in exchange for some consideration but grants an individual the right to purchase the property within that period for a stated price, this is called

A. an option.B. a contract of sale.C. a right of first refusal.D. an installment agreement.

16. A real estate professional is a licensed real estate salesperson who has a written contract with his broker that specifies that he will not be treated as an employee. The real estate professional's entire income is from sales commissions rather than an hourly wage. Based on these facts, the real estate professional will be treated by the IRS as

A. a real estate assistant.B. an employee.C. a subagent.D. self-employed.

17. To net an owner $900,000 after paying a 6% commission, the list price would be

A. $954,050.B. $959,060.C. $957,447.D. $960,000.

18. The section in a purchase contract that would provide for the buyer to forfeit any earnest money if the buyer fails to complete the purchase is known as a provision for

A. hypothecationB. subordinationC. punitive damages.D. liquidated damages.

19. A bilateral contract is one in which

A. the promise of one party is given in exchange for the promise of the other party.B. only one of the parties is obligated to act.C. something is to be done by one party only.D. a restriction is placed in the contract by

20. What type of lien arises as a result of a judgment, estate or inheritance taxes, a decedent's debts, or federal taxes?

A. SpecificB. VoluntaryC. EquitableD. General

Course Exam - Principles of Real Estate