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Rockwell Real Estate Exam MAIN
Questions and Answers 100% Pass
Which of the following loans would be subject to the Truth In Lending Act? - ✔✔A
loan to a first-time home buyer
Art sold his house, which was not encumbered with a mortgage. Closing expenses were
$5,264, and he paid a commission of 7% of the selling price. He received a check at
closing for $372,316. What did the house sell for? - ✔✔$406,000 (100%-7%=93%).
$337,580/ 0.93= $406,000.
Frank gives Stella an option to buy his house. Stella, as the optionee, is obligated to: -
✔✔Pay consideration for the option right
A corn field with a depth of 900 ft and a frontage of 484 feet is bisected by an access
road, leaving two triangular lots. If the land sells for $2,000 per acre, how much is each
lot worth? - ✔✔$10,000.
*Find area of triangular lots and use the triangular formula A=½ B x Height (900ft x 484
ft x 0.5= 217,800 sqft.) Convert the acreage (217,800 sqft / 43,560 sqft per acre= 5 acres)
and then multiply by the cost per acre (5 acres x $2,000= $10,000)
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Which is a list of duties owed to a principal by an
agent?Loyalty,confidentiality,reasonable care, accounting. -
✔✔Loyalty,confidentiality,reasonable care, accounting.
Ajax reality lists a property for a seller at a commission rate of 8%.The multiple listing
service provides that a listing brokerage will split commissions at a 50-50 rate. Baron
Realty, a cooperating Brokerage, finds a buyer for the property, at a price of $300,000.
How much will the seller owe Ajax Realty at closing? - ✔✔$24,000 ($300,000 x 0.8 =
$24,000)
A buyer enters into a buyer agency agreement with a real estate licensee to negotiate the
purchase of a particular FSBO property. The buyer then enters into a purchase and sale
agreement, but the property he agreed to buy is subsequently condemned. Which of the
following is true? - ✔✔The agency is terminated
A new subdivision required payment of homeowners association dues. If unpaid, what
type of lien do they create? - ✔✔Specific lien that encumbers the property
A homeowner in a recently developed subdivision plans to build an extra bedroom
extending from the back of his house. Nobody in the subdivision has added on to their
houses in a similar manner yet. What would the homeowner need to obtain before he
could begin work on the project? - ✔✔Conforming use permit
A buyer and seller enter into a purchase and sale agreement. The agreement provides
that closing must take place by September 30th. A clause states that a party's failure to
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be ready by a date specified in the contract will constitute a breach of the contract. What
is the name of the clause? - ✔✔A closing clause
Interest on a loan for a home purchase is which type of interest? - ✔✔Simple
Which of the following is a primary market lender? - ✔✔Mortgage banking company
Adjusted Basis is: - ✔✔Initial basis, plus capital expenditures, less depreciation
A living room needs to be re-carpeted. It measures 18ft long by 15 ft wide. How many
yards of carpet will need to be purchased? - ✔✔30
*First multiply LxW to find square footage (18ft. X 15ft.= 270 sq.ft.) Then, because there
are 9 square feet in a square yard, divide by 9 to convert to square yards (270/9=30
square yards).
A deed that is not signed by the seller is still considered valid as long as it: - ✔✔Is
signed by an authorized attorney in fact
A potential buyer gives a seller an offer that doesn't meet the seller's demands in the
listing. What has the buyer given? - ✔✔Offer to purchase
An exclusive listing agreement is an example of a/an: - ✔✔Express contract
Which of the following clauses relates to mortgage loan default and requires immediate
payment of debt? - ✔✔Acceleration Clause
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