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UPDATED RE EXAM QUESTIONS AND ANSWERS 2024
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UPDATED RE EXAM QUESTIONS AND ANSWERS 2024
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UPDATED RE EXAM QUESTIONS AND ANSWERS 2024A buyer and seller entered into a contract, they negotiated the sale of the side lot at the
same time as the transfer of the home. What is the second document called? - answer-
An addendum
An addendum is an attachment to a contract that modifies the terms and conditions of
the original contract. An example of an addendum being used would be if the parties
wanted to add something to the original document.
A buyer was negotiating the purchase of a lot to build a new family house, the seller
indicated that the land was firm enough to support the construction of a building when
the seller knew it was not. The contract is: - answer- Voidable by the buyer because the
fraud.
In this case, the contract would be voidable by the buyer because of fraud. Voidable
contracts have the necessary elements to be enforceable, so they appear to be valid,
but can be rejected by one party if the contract is discovered to have any number of
defects.
A mortgage loan that requires monthly payments of $400 for 15 years and a final
payment of $20,000. Typically a loan structured like this is called - answer- A balloon
loan
A balloon loan is a mortgage which does not fully amortize over the term. Amortization
is when payments divide into equal amounts for the duration of the loan. A balloon loan
is different as not all payments are equally divided and the most substantial payments
are called Balloon payments.
A parcel of land that is subject to an easement is best described as: - answer- A
Servient Estate
By definition, a servient estate is a parcel of land that is subject to an easement.
According to the DO NOT CALL list and Established Business Relationship (EBR)
Rules, a real estate professional may contact a past client for relationship building
purposes when? - answer- Indefinitely
In this example the answer is indefinitely, since they are a past client. If their business
was terminated or expired it would be 18 months. Since they are a past client, and
there's no mention of expiration, or termination they can reach out indefinitely.
, An agent took a listing and later discovered that her client has previously been declared
incompetent by the court. The listing is now - answer- of no value to the agent because
the contract is void.
For a contract to be valid,
- the party must be at least 18 years old and of sound mind.
- the contract must be legal
- must hold a clear and definite consideration
- must be mutual consent of the contract.
Since the client has been declared incompetent by the court, the listing is now void.
An appraiser has been hired to prepare an appraisal report of a property for loan
purposes. The property is a 25-year old strip mall. To which approach to value should
the appraiser give the greatest weight when making this appraisal? - answer- Income
approach
The overall appraisal process is based on a number of factors and appraisers usually
use a combination of approaches but give weight to the most the most important. The
income approach determines what a property generates in terms of income for its
owner, that income or potential for income, it is them used to calculate or identify the
market value of the property.
An appurtenant easement has several ways of legal termination. Which of the following
is NOT a valid way to terminate an easement? - answer- Revocation by the servient
owner
Easements are appurtenant meaning generally pass along with ownership changes in
real estate, but there are several ways of legally terminating them. Expiration, release,
merging, and abandonment of the easement are all ways to legally terminate the
applicable easement. The servient estate serves the dominant estate and cannot
terminate the easement even through revocation.
An elderly man in a nursing home, has no family and is suffering from Alzheimer's.
Because of his Alzheimers, he doesn't remember much. Eventually he passes away in
his sleep. There is no will for the man, and again he has no family. So what happens to
the money left in his savings account and his old farm that has ben left untouched since
he entered the nursing home? - answer- Escheat
Instead of being handed down to his family (since he has none), his assets are going to
go to the government in the process called escheat. Escheat is the government's right
to take ownership of unclaimed real estate or assets.
An example of an antitrust violation is - answer- Price Fixing
Fixing is the practice of setting the price of a good or service to make a particular price a
standard. So in our terms, real estate fixing is when competing agents meet up and
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