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National Real Estate Exam 2.0, CE Shop National 2.0, FINAL REAL ESTATE EXAM 2.0
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National Real Estate Exam 2.0, CE Shop National 2.0, FINAL REAL ESTATE EXAM 2.0
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NATIONAL REAL ESTATE EXAM 2.0, CESHOP NATIONAL 2.0, FINAL REAL
ESTATE EXAM 2.0
k Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the
loan back and finally made her last payment this month. What happens now? - Because the property
deed was held by a third-party trustee instead of the lender, the trustee grants a reconveyance deed to
Olivia.
Warren signed a contract with the Samsons for the sale of property he didn't own. What type of contract
is this? - A party can't promise to do something impossible in a contract. Doing so makes the contract
void.
Which amendment to CERCLA says that "innocent landowners" aren't responsible for clean-up of
hazardous contamination? - The Superfund Amendments and Reauthorization Act, or SARA, says that
innocent landowners aren't responsible for clean-up of hazardous contamination.
With the cost approach to value, what is the replacement cost? - The replacement cost reflects the cost
to build a functionally equivalent improvement, as opposed to the reproduction cost, which is the cost to
build an exact replica of the subject, with the same materials and deficiencies.
Antje's clients closed on their property yesterday, but Antje still has some paperwork that she needs to
deliver to them as soon as possible. Under which fiduciary duty is Antje acting? - The duty of accounting
may continue even after the transaction closes. The agent must account for any documents or money
belonging to the client until it is delivered to the appropriate party.
When real estate licensee Brian discovered that Arnold was using a 'Choose Your Neighbor' letter to
market a property without also listing the property in the MLS, in the local paper, or even putting a for
sale sign in the yard, what charge could he bring against Arnold to the National Association of
REALTORS®? - REALTOR® Brian could charge Arnold with violating Article 10 of the Code of Ethics, which
prohibits REALTORS® from agreeing to discriminate against people belonging to a protected class.
What is estate at sufferance? - Estate at sufferance is when a tenant remains on the property after the
lawful authority has expired (a holdover tenant), after which the landlord may evict.
Which entity typically enforces the code restrictions and licensing and insurance requirements for
contractors, thereby enforcing the building code? - While builders and developers self-regulate to some
degree, they're not responsible for enforcing the building code. This is the local building department's
responsibility.
Under which types of agency agreement may a buyer and agent operate? - Open, exclusive right to
represent, and exclusive agency
What is a survey? - A survey is used to create, verify, or correct a legal description. It's a professional on-
site measurement of the lot lines and dimensions of a property.
,Melisa's mother gave her house to Melisa, along with a signed copy of the deed granting ownership to
Melisa. Years later, Melisa decides to downsize by selling the property. The title company shows that the
property is still in Melisa's mother's name. What does Melisa have to do to clear this up? - To preserve
the chain of title, Melisa needs to record the signed deed. Then future records will show an unbroken
chain of title.
Prior to the ______, there was no legal protection for women who endured sexual harassment from
landlords and sellers when they attempted to obtain housing. - The Housing and Community
Development Act of 1974 included gender or a person's sex in the list of protected classes.
Which document is used to give a buyer an overview of the title history and information about what is or
isn't covered in an insurance policy? - Title insurance companies issue a preliminary report with the
current title history and any liens or encumbrances. It outlines what the insurance company will or won't
cover on its forthcoming insurance policy if the title is found to be acceptable.
When is a lead disclosure required? - A lead disclosure is required for residential properties built before
1978 because paint manufacturers used lead in paint before it was banned that year.
Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to
buy contract? - Depending upon the contract's terms, a potential disadvantage for a buyer who enters
into a lease with an option to buy is that he could lose any funds credited to the purchase price if he
breaches the terms of the lease.
Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that
gave the school title as long as the land is used for educational purposes. What type of interest does the
school have? - A fee simple determinable has limitations as to what can or can't be done with a property.
It uses phrases such as "so long as," "while," or "during" to describe the required condition.
You represent the buyer in one transaction and the seller in a different transaction. What type of agency
relationship do you have with the buyer? - You have a buyer agency relationship with the buyer in one
transaction and a seller agency relationship with the seller in the other transaction.
What does the Federal Trade Commission consider to be an unfair ad? - Any ad or business practice that
causes or is likely to cause injury is considered an unfair ad, according to the FTC's Unfairness Policy
Statement.
As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure
to the buyer, Melanie, but he failed to do so. What type of contract is this? - A voidable contract can be
cancelled by one or more parties because it's missing an essential element. In this situation, Melanie, the
buyer, has the right to cancel the contract and have her earnest money refunded.
How are principal meridians and baselines used in the rectangular government survey system? - Each
legal description in this system originates at the intersection of a principal meridian and a baseline.
When the lender gathers all kinds of information about the borrower's assets, debts, income,
employment history, and pulls their credit report, the buyer is ___________________. - This is all part of
the application process.
,In which of the following situations would the state be able to use its power of escheat? - Escheat occurs
when a property owner dies without a will in place, and no heirs or creditors can be found.
Which of these situations might be addressed by limitations or a subject to clause in the deed Jane is
using to convey property to Moira? - A great example of deed limitations is the restrictions that may be
placed on a property by an owners association. A subject to clause may refer to an easement held by a
neighboring property to get to a road or water source.
Hannah kwasn't kable kto kget kthe kfinancing kto kopen kher kboutique, kso kher kmother kcame kon kas ka ksilent
kpartner kand kprovided kadditional kcash. kHannah kand kher kmother khave kan kagreement kthat kstates
kHannah's kmother kcan't kbe kheld kfinancially kor klegally kliable kif kthere kare kany kproblems kwith kthe
kstore. kWhat ktype kof kcontract kclause kis kthis? k- kIndemnifying kone kof kthe kcontract kparties kreleases
kthat kparty kfrom kall kliability kor kloss.
Drew kand kHank kwere kcamping kat kHank's kriverfront kcabin. kHank ktold kDrew kthat khe kso krarely kused
kthe kcabin kthat khe kwas kthinking kof kselling kit. kDrew ksaid kthat khe'd kbuy kit kfrom kHank kfor k$80,000,
kand kHank kagreed kthat kwas ka kfair kprice. kIt's ktwo kmonths klater, kand kHank kis kupset kthat kDrew know
ksays khe kwon't kbuy kit. kWhy kisn't kthis kcontract kenforceable? k- kThe kstatute kof kfrauds krequires kthat
kreal kestate kcontracts kbe kin kwriting. kDrew's koffer kwas koral, kand kthus kdidn't kcreate kan kenforceable
kcontract.
Local kauthorities klack kpolice kpower kover kwhich kof kthe kfollowing? k- kLocal kauthorities khave kpolice
kpower kover kbudgeting, kzoning, kand ksubdivision kdevelopment, kbut kthey klack kpolice kpower kover
kfederal kgovernment kconstruction kprojects.
Darren kand kNatalie kare kfirst-time kbuyers kwho khave kdecided kto kpurchase ka knewly kbuilt ktownhouse.
kTheir kagent kJenner ktells kthem kthat kthey're krequired kto kpurchase ka kthird-party khome kwarranty.
kWhich kof kthe kfollowing kconditions kmust kbe ktrue? k- kAll kloans kthat kare keither kFHA-insured kor kVA-
guaranteed krequire ka khome kwarranty kto kprotect kboth kthe kbuyer kand kthe khome's kvalue.
What kare kthe ktwo ktypes kof kphysical kdepreciation? k- kTwo ktypes kof kphysical kdepreciation kare kcurable
kand kincurable kdepreciation.
Travis khas kmade kthe kfinal kpayment kon khis kloan kaccording kto kthe kloan kterms. kWhat kmust kthe knote
kholder kdo kto kacknowledge kthat kthe kdebt khas kbeen krepaid? k- kWhen kthe knote khas kbeen kpaid koff,
kthe kholder kmust ksign kthe knote, kmark kit kas kpaid kin kfull, kand kreturn kit kto kthe kmaker. kThe ksatisfaction
kof kmortgage kis krecorded kwith kthe kcounty kland koffice, kremoving kthe kassociated klien kfrom kthe
kproperty.
What kfactors kaffect kan kadjustable krate kmortgage? k- kRate, kindex, kand kmargin
Casey ksigned ka kcontract kform koffering ka kpurchase kprice kof k$309,000 kon kKaren's khome, kand kgave khis
kagent ka k$5,000 kearnest kmoney kdeposit. kKaren's kout kof ktown, kthough, kand kher kagent kcan't kreach
kher. kAt kthis kpoint kwhat kdoes kCasey khave? k- kUntil kthe kterms kare knegotiated kand kthe kcontract ksigned
kby kboth kparties, kacceptance khasn't koccurred kand kthe ksales kcontract kis kconsidered kan koffer.
, Candace kand kPhil kTolson klisted ktheir khome kfor ksale kwith kTrent kRichards, kthe kbroker kfor kRichards
kHomes. kSadly, kTrent kbecame kincapacitated kdue kto ka kcar kaccident. kWhat's kthe kstatus kof kthe klisting
kagreement? k- kBecause kthe kbroker khas kbecome kincapacitated, kthe klisting kagreement kterminates kby
kforce kof klaw.
Which ktask kis kNOT kthe kresponsibility kof kan kescrow kofficer? k- kThe kescrow kofficer kis kresponsible kfor
kdistributing kthe kearnest kmoney kas koutlined kby kthe kparties kor kthe kcourts kin kcase kof kdispute kbut
kdoesn't khave kthe kauthority kto kdetermine khow kit kshould kbe kdistributed.
Physical kcharacteristics kof kland kinclude kits kimmobility, kindestructibility, kand k______. k-
kNonhomogeneity kis ka kunique kcharacteristic kof kland. kEven kwithin ka ksingle ksubdivision, ktwo
kidentically ksized kparcels kwill khave ktheir kown kunique kcharacteristics: kviews, kaccess, kproximity kto
kother kamenities, ketc.
Which kof kthe kfollowing kis kthe kprice ka klender kbelieves kthe kproperty kwill kbring kat ka kforeclosure ksale?
k- kLenders kwon't klend kon kwhat kthey kcan't krecoup. kTherefore, ka kloan kwill kbe kbased kon kwhat ka
klender kwould khope kto krecoup, kshould ka kforeclosure ksale kbe knecessary.
Jamison, kthe kseller, kis kclosing kon khis kproperty kwith kConrad, kthe kbuyer. kJamison kpaid kthe kcurrent
kyear's kproperty ktaxes kalready. kIs kthis ka kprepaid kor kaccrued kexpense, kand khow kwill kit kbe
krepresented kon kthe ksettlement kstatement? k- kThese ktaxes khave kalready kbeen kpaid, kso kare ka kprepaid
kitem. kThey'll kappear kas ka kbuyer kdebit kand kseller kcredit kat kclosing.
Jeanetta kleases kan kapartment kfrom kQuad kCity kLeasing. kJeanetta khas kfiled ka kcomplaint kwith kthe
kstate kreal kestate klicensing kdivision kstating kthat kMarissa, kQuad kCity's kproperty kmanager, kbreached
kher kfiduciary kduty kof kloyalty kto kJeanetta. kWhich kof kthese kstatements kabout kthis ksituation kis ktrue? k-
kProperty kmanagers kowe kfiduciary kduties kto ktheir kclients k(the klandlord) kand kthe kcommunity kas ka
kwhole, knot kto kindividual kresidents.
The kMARIA kacronym khelps kto kidentify kthe kfive ktests kof ka kfixture. kWhich kof kthe kfollowing ktests
krefers kto khow kand kwhether kthe kitem kis kattached kto kthe kproperty? k- kMethod kof kannexation krefers
kto khow kand kwhether kthe kitem kis kattached kto kthe kproperty. kThis kis kthe kM kin kMARIA.
Lowell kused kto kown k17 kacres kof kproperty kon kthe kbay. kAfter klast kyear's khurricanes, kLowell know
kowns k15.5 kacres kof kbayfront kproperty. kWhich knatural kprocess kwas kresponsible kfor kLowell's kloss kof
kacreage? k- kAvulsion kis kthe kloss kof kland kby ka ksudden, klarge-scale kchange kin kwater kflow. kA khurricane
kwould kcreate ka ksudden klarge kchange kin kwater kflow.
Easements kare ka ktype kof kencumbrance kthat kcan kaffect ka kproperty. kWhich kof kthe kfollowing kis ktrue
kabout keasements? k- kEasements kare ka ktype kof kencumbrance kthat kcan kaffect ka kproperty. kWhich kof
kthe kfollowing kis ktrue kabout keasements?
Dean kand kMichael khave kan koral kcontract. kDean ksaid khe kwould ksell kMichael khis kbike kin kreturn kfor
kMichael's kvinyl kalbum kcollection. kWhat kdoes kthe krecord kcollection krepresent? k- kConsideration,
kwhich kis kan kessential kelement kof ka kcontract, kis ksomething kof kvalue kwhich kis kgiven kfrom kone kparty
kto kthe kother kparty kin kexchange kfor kgoods kor kservices.
Virginia kis kfinally kliving kher kdream—she kbought ka kcoffeehouse kin ka kcharming kcollege ktown. kAfter
kshe kclosed kon kit, kher kattorney ksat kdown kwith kher kto kdiscuss kvarious kbusiness klicensing kand klegal
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