NATIONAL PORTION 2024 UPDATE COMPREHENSIVE
PRACTICE QUESTIONS AND CORRECT ANSWERS [GRADE
A+] \VERIFIED TEST
A brokerage firm has an exclusive right-to-sell listing and represents the owner in
the sale of the owner's property. Which of the following events will terminate that
agency relationship?
A) The owner declares personal bankruptcy.
B) The broker discovers that she will not make an adequate commission due to
the low market value of the property.
C) The broker engages other brokers to help sell the property.
D) The owner abandons the property.
A) The owner declares personal bankruptcy.
A metes-and-bounds legal description
A) is not acceptable in court in most jurisdictions.
B) uses descriptions moving in a set direction.
C) is used to complete areas omitted from recorded subdivision plats.
D) can be made only in areas excluded from the rectangular survey system.
B) uses descriptions moving in a set direction.
A broker helps a buyer and a seller with paperwork but does not have fiduciary
obligations to either party. The broker's activity in this situation is that of a
A) transaction broker.
B) dual agent.
C) designated agent.
D) single agent.
A) transaction broker.
A minor entered into a contract to sell the house she had inherited to a buyer.
This contract is MOST likely
A) voidable by the minor.
B) voidable by the buyer.
C) valid.
D) void.
A) voidable by the minor.
A title search for a property under contract has revealed several outstanding liens
against the property. Which of the following liens has highest priority?
A) A judgment lien rendered and recorded last month
B) An outstanding first mortgage lien dated and recorded one year ago
C) A special assessment for the current year
D) A property tax lien for the current year
D) A property tax lien for the current year
A salesperson has been trying for weeks to list a spectacular house for sale. The
homeowners tell the salesperson that a competing company will charge a
commission rate that is 2% lower than the commission rate charged by the
salesperson's brokerage firm. In order to get the listing, the salesperson should
,tell the owner that
A) most brokers in the area charge a standard rate of commission.
B) his company provides excellent services to market its sellers' properties.
C) salespersons in the area will not show the competing firm's listings because of
its lower commission rates.
D) the competing firm cannot provide good services because it charges less
commission.
B) his company provides excellent services to market its sellers' properties.
An appraiser is assigned to appraise a house in an area with very few sales over
the past year. One of the comparable properties she chooses is a home similar to
the subject property. The house recently sold as a foreclosure property. When
writing her appraisal report, what action will the appraiser take as a result of the
foreclosed sale?
A) Make a positive adjustment to the sales price of the foreclosed home
B) Make a negative adjustment to the value of the subject property
C) Make a negative adjustment to the sales price of the foreclosed home
D) Make a positive adjustment to the value of the subject property
A) Make a positive adjustment to the sales price of the foreclosed home
MOST states require that listing and buyer representation contracts contain a(n)
A) definite contract termination date.
B) multiple listing service (MLS) clause.
C) broker protection clause.
D) automatic extension clause.
A) definite contract termination date.
An annual crop that is considered personal property is called a(n)
A) emblement.
B) intangible property.
C) fixture.
D) appurtenance.
A) emblement.
Upon acceptance and communication of acceptance, an offer is considered
A) valid.
B) unilateral.
C) a counteroffer.
D) a contract.
D) a contract.
A real estate salesman shows a house constructed in 1912 to a prospective
buyer. The buyer has two toddlers and is worried about potential health hazards.
Which of the following is TRUE?
A) Removal of lead-based paint and asbestos hazards is covered by standard title
insurance policies.
B) Because of the age of the house, there is a good likelihood of the presence of
lead-based paint.
C) Lead-based paint is more of a threat to adults then children.
D) Because the salesman is a licensed real estate salesperson, he can offer to
personally inspect for lead and remove any lead risks.
, B) Because of the age of the house, there is a good likelihood of the presence of lead-
based paint.
Under an exclusive agency listing, the listing broker would be entitled to a
commission EXCEPT
A) if the seller sells the property himself to a relative moving from out-of-town.
B) if a salesperson from a cooperating brokerage secures a qualified buyer for
the property.
C) if another co-op broker secures a qualified buyer for the property.
D) if the broker sells the property himself.
A) if the seller sells the property himself to a relative moving from out-of-town.
Real estate firms are often affiliated with title insurance companies or mortgage
brokers. RESPA permits these business arrangements as long as
A) companies disclose their relationships with one another to the consumer.
B) consumers are required to use the services of the affiliated companies.
C) consumers are unaware of these arrangements.
D) companies pay referral fees between them.
A) companies disclose their relationships with one another to the consumer.
The primary activity of Fannie Mae is to
A) buy and pool blocks of conventional mortgages and sell bonds that use them
as security.
B) guarantee mortgages with the full faith and credit of the federal government.
C) buy and sell only VA and FHA mortgages.
D) act in tandem with Ginnie Mae to provide special assistance in times of tight
money.
A) buy and pool blocks of conventional mortgages and sell bonds that use them as
security.
It is the duty of an agent to disclose to the principal every material step taken in
the transaction of the principal's business. This duty exists because the
A) commission can be adjusted up or down according to the agent's efforts.
B) terms of the purchase contract require the agent to do so.
C) agent has fiduciary obligations to the principal.
D) state license laws have this requirement.
C) agent has fiduciary obligations to the principal.
The buyers secured a loan with a 75% loan-to-value ratio. The interest rate was
7.125%, and the term was for 30 years. The first month's interest payment was
$477.82. What was the appraised value of the property?
A) $103,700
B) $107,300
C) $80,475
D) $79,239
B) $107,300
A salesperson finally concluded some extremely difficult negotiations resulting in
the sale of a listed parcel of land. For all of her extra efforts, she can legally
receive a performance bonus directly from
A) her principal broker.
B) no one.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MEGAMINDS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
