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National Real Estate Exam Practice Questions With Complete Solutions
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National Real Estate Exam Practice Questions With Complete Solutions
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National Real Estate Exam Practice Questions WithComplete Solutions
A broker has a trust account set up to hold client funds. He has
earnest money deposits from several clients in the account at the
same time. This is: Correct Answer acceptable as long as he
has written records
A broker has written permission to represent both the seller and
the buyer as a dual agent. Under these circumstances, which of
the duties of the agent would be the easiest for him to fulfill?
Correct Answer Accounting
A broker is most often Correct Answer special agent
A broker is running short of funds to meet this month's monthly
operating expenses. He places a client's earnest money deposit
in his business account and uses it to pay is rent. After his next
closing, he replaces the client's deposit in his trust account. The
broker... Correct Answer is guilty of conversion
A broker owes customers Correct Answer honesty and fairness
A builder is using inferior siding and paint in an effort to
construct affordable housing. This would be an example of...
Correct Answer functional obsolescence
A builder is very successful and active in a new subdivision.
Homes in the subdivision are selling well, and the builder is
making a good profit on the sales. Two new builders arrive and
begin to sell in the same subdivision. All experience a lower
,level of profit. This demonstrates which principle of appraisal.
Correct Answer The principle of competition
A buyer and his agent visit a listed property. The buyer loves the
property and wants to purchase it. He speaks with the seller,
who is at home at the time, and they come to an agreement
regarding price and terms. They shake hands on the agreement
and the buyer happily leaves the property. His agent should:
Correct Answer Warn the buyer that the verbal sales contract is
unenforceable
A buyer and seller have negotiated a contract on the seller's
property with a closing set for June 14th, time is of the essence.
On June 12th the listing agent calls the buyer's agent and tells
him the seller will be unable to close on the 14th. The seller can
close on the 16th. At this time, what is true? Correct Answer
the contract is voidable by the buyer
A buyer has discovered a defect in title and has suffered a loss
due to the defect. The title company has compensated the buyer
for the loss. Subsequently, the buyer is awarded a judgement
against the seller. The title company is entitled to a portion of
the judgment as reimbursement for the claim it paid. This
describes... Correct Answer Subrogation
A buyer has purchased a property and after closing the seller
will continue to occupy the property. This is an example of...
Correct Answer sale and leaseback
A buyer has signed an agreement to purchase a property from a
seller. He has met all the terms and conditions of the listing. The
,listing broker has taken the agreement to the seller. The seller
has changed his mind about selling and refuses to sign the
agreement. What is true? Correct Answer The seller does not
have sell, but he owes the listing broker a commission
A buyer is aware that the interest rates should go down over the
nest few months. What type of loan should he get to enable him
to buy now and take advantage of declining rates in the future?
Correct Answer ARM
A buyer's agent has accidentally forwarded confidential
information about his buyer's financial background to the listing
agent. What is true? Correct Answer the buyer's agent is guilty
of negligence and the listing agent must disclose the information
to the seller
A buyer's agent has helped a buyer to find a home. The buyer
has expressed concern about the possible presence of radon.
What should the buyer's agent do in this case? Correct Answer
Recommend an inspection for hazardous materials
A buyer's agent is working with a buyer to purchase a property.
The buyer is concerned about the location of the fence as it
appears to be encroaching. What should the buyer's agent do?
Correct Answer Recommend a survey
A chemical manufacturing company purchases a plant. After
closing they discover that the previous owners had spilled
hazardous materials on the land. According to CERCLA, who is
liable for the cost of the cleanup? Correct Answer both the new
owners and the previous owners
, A condo complex has liability complex has liability insurance.
This is least likely to cover Correct Answer a units owner's
carpet damaged by a broken water pipe
A condo owner's policy will most likely cover the owner if
Correct Answer a guest slips in the kitchen
A couple is moving to a new city and they would like time to
learn the city before they purchase a home. What type of lease
should their agent recommend? Correct Answer a periodic
tenancy
A couple is purchasing a home and ask their agent how they
should take title so that if one spouse dies, immediately the
surviving spouse will be the sole owner of the property. The
license holder should: Correct Answer Tell them to talk to an
attorney, because the license holder is not permitted to give
advice on how to take title
A couple purchased a condominium. The complex has an
exercise room for all residents. The couple does not use the
exercise room and does not want to pay the monthly fee for the
use of the facility. What can they do to avoid this fee? Correct
Answer they must pay the fee as they have a tenancy in
common interest in all common areas
A developer decides to build a commercial property in the
middle of a residential subdivision. What is required? Correct
Answer a variance
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