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AREC Final exam Study Set Questions With Complete Solutions
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AREC Final exam Study Set Questions With Complete Solutions
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AREC Final exam Study Set Questions With CompleteSolutions
______ is applied whenever real property is sold, and the tax
rate varies by state. Correct Answer Transfer tax
A ______ is a tax on the privilege of recording a mortgage on
real property located within the state. Correct Answer
Mortgage recording tax
A buyer is purchasing a house for $500,000. She's making a
down payment of $50,000, and is financing the remainder. How
much is her loan origination fee if the lender charges one-and-a-
half points? Correct Answer $6,750
A home sells for $225,000. Per the listing agreement, the total
commission is 7% of the sales price. The listing brokerage will
split the full commission with the buyer's broker 50/50. Kiko the
seller's listing agent has a 70/30 split arrangement with her
brokerage, with Kiko receiving the "70". After sharing the
commission with the buyer's broker and her commission split
with her brokerage, how much will Kiko receive? Correct
Answer $5,512.50
A lease with option to buy is a good home buying solution for
some buyers. Which of these statements about a lease with
option to buy is FALSE? Correct Answer Option agreements
usually don't include a termination date.
,A property appraised for $257,000 and the buyer paid $249,000.
Which value will a lender use when determining the loan-to-
value ratio? Correct Answer $249,000
A set of guidelines for the ethical conduct of real estate licensees
is called a Correct Answer Code of ethics
A(n) ______ is an example of a limited agent. Correct Answer
Escrow officer
Adam owes $125,000 on his home. It's currently worth
$340,000. How much equity does Adam have in his home?
Correct Answer $215,000
After thinking about it for a few days, Cooper decided that he
shouldn't have bought that time-share after all. He contacts the
time-share developer by mail and states his wish to cancel his
purchase contract. Which of the following is true about what
will happen to Cooper once the developer receives the
cancellation notice? Correct Answer The developer will have
30 days to acknowledge the cancellation.
Any time property manager Liz takes on a client, she
immediately works to _______. Correct Answer Build trust
Appraiser Niles uses ______ to determine a range of values
based on comparing a subject property to comparable sales. He
makes sure to use some comparables that lack features of his
subject property, and others that have even more desirable
features, to balance out the comparison. Correct Answer
Bracketing
, Archie signed a contract to buy Pam's home. The deal eventually
closed, but Pam failed to hand over the home's keys to Archie. A
week passed, and Archie filed a lawsuit in an attempt to force
Pam to give him the keys. This is an example of ______ Correct
Answer Suing for specific performance
As an agent, you owe fiduciary duties to your client. Among
these are loyalty, reasonable skill and care, confidentiality,
accounting, and disclosure. What fiduciary duty is missing from
this list? Correct Answer Obedience
Bambi is buying a property using an installment sales contract.
Due to her financial interest in the property, she receives
equitable title while the seller retains ______ Correct Answer
Legal title
Before closing, who is generally responsible for completing the
loan application, ordering a home inspection, and securing
homeowner's insurance? Correct Answer The buyer
Carson is purchasing a $600,000 property by obtaining an 80/20
loan. How much is Carson financing? Correct Answer
$480,000
Customarily, the transfer tax is paid by the ______. Correct
Answer Seller
Franz didn't complete all of this continuing education
requirements by his renewal date. What will happen to Franz's
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