The CE Shop Real Estate Salesperson Practice Exam #1 Questions with Correct Answers
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Course
The CE shop real estate
Institution
The CE Shop Real Estate
Question 1
The Swan sons left the family property to their son, Jason, with the stipulation that he does not build on it. The type of estate Jason holds is ______.
Fee simple absolute
Fee simple defeasible
Leasehold
Qualified lease - Answer-Fee simple defeasible
Under a fee simple defeasibl...
The CE Shop Real Estate Salesperson
Practice Exam #1 Questions with
Correct Answers
Question 1
The Swan sons left the family property to their son, Jason, with the stipulation that he
does not build on it. The type of estate Jason holds is ______.
Fee simple absolute
Fee simple defeasible
Leasehold
Qualified lease - Answer-Fee simple defeasible
Under a fee simple defeasible estate, the property holder owns the property with all
legal rights, but subject to a condition.
Question 2
Which of the following is a true statement about the MLS and sellers?
For most sellers, listing on the MLS is not cost effective.
It's rare for sellers to decline advertising their property on the MLS.
Most sellers dislike advertising their property on an MLS.
Sellers are required to list their properties on the MLS if they're working with a real
estate licensee.
In every listing agreement, sellers state whether they give permission for their property
to be listed on
an MLS. - Answer-It's rare for sellers to decline advertising their property on the MLS.
It's rare that sellers decline this opportunity, since the MLS is the most powerful tool that
real
estate professionals have at their disposal.
Question 3
Why are underground storage tanks a potential environmental issue?
As their materials break down, radon is released into the soil and could seep into
surrounding homes, causing health issues.
If they leak, they may contaminate the surrounding soil and groundwater.
They are only used to contain toxic materials and human proximity to such materials
can cause health issues.
They regularly exude potentially harmful gasses. - Answer-If they leak, they may
contaminate the surrounding soil and groundwater.
Underground storage tanks have been used to hold a variety of substances, including
heating oil. While a UST doesn't necessarily mean noxious gasses or toxic material,
many substances if leaked
,have the potential to contaminate the soil and groundwater.
Question 4
If downzoning occurs in one area, reducing property values in adjacent areas, what can
the homeowners in those adjacent areas do?
File a claim for inverse condemnation.
Require a zoning change to their own property.
Sell at a loss and file a claim.
Sue their neighbors. - Answer-File a claim for inverse condemnation.
Because downzoning is a reduction in use and can impact property values even in
adjacent properties,
homeowners in the adjacent areas can file a claim for inverse condemnation.
Question 5
Buyers Tony and Sylvia know the postal address of the property they're purchasing but
are wondering about the legal description of the property. Where is the most likely place
to find the
legal description?
Deed
HOA covenant
Home warranty
Listing agreement - Answer-Deed
Legal descriptions, which appear on deeds and other legal documents, provide a less
ambiguous and
more complete description of a property than a street address does.
Question 6
In Arizona, which of the following is an indicator that a tenant has abandoned a rental
dwelling unit?
The tenant extended her 10-day vacation to 14 days without notifying the landlord.
The tenant has been absent from property for at least seven days without notifying the
landlord.
The tenant's rent payment is past due by seven days.
The tenant's vehicle has been absent from the unit's driveway for more than a week.
Arizona law says that a unit could be considered abandoned if no one has seen or
heard from the
tenant for seven days, and the tenant hasn't contacted the landlord. - Answer-The
tenant has been absent from property for at least seven days without notifying the
landlord.
Arizona law says that a unit could be considered abandoned if no one has seen or
heard from the tenant for seven days, and the tenant hasn't contacted the landlord.
Question 7
,Several actions take place on the secondary mortgage market. Which of these is a
common activity?
Issuing loans to consumers
Packaging loans into mortgage-backed securities
Regulating primary lenders
Setting loan origination fees - Answer-Packaging loans into mortgage-backed securities
Loans are commonly packaged into MBSs and sold to investors.
Question 8
The Housing and Community Development Act of 1974 added which protected class to
federal
fair housing law?
Color
Disability
Religion
Sex - Answer-Sex
The Housing and Development Act of 1974 added sex as a protected class, which
helped prevent
discrimination and sexual harassment for individuals seeking housing.
Question 9
In most cases, what type of agent is a real estate licensee when working with a client on
a real
estate sale?
Double
Dual
General
Limited or special - Answer-Limited or special
Real estate licensees most often serve as special agents, also known as limited agents.
They have limited scope of authority when compared to a general agent.
Question 10
In a purchase offer, is earnest money required to have a binding contract?
No, because earnest money isn't part of a sales contract.
No, because the buyer's consideration is the promise to buy.
Yes, because it opens escrow.
Yes, because it's the buyer's consideration. - Answer-No, because the buyer's
consideration is the promise to buy.
Earnest money isn't required to have a binding sales contract (although it's usually
required by the
seller!). If no earnest money is provided, the prospective buyer's only consideration is
the promise to
, pay the purchase price.
Question 11
What's the name of the clause included in a finance instrument that requires the lender
to release a portion of the property from the lien when a part of the debt has been paid?
Exculpatory
Non-recourse
Partial release
Subordination - Answer-Partial release
This is a partial release clause that is typically used by developers who need to sell lots
in a new
subdivision.
Question 12
If the land is described as "N ¼ NW ½ Section 4, Township Bailey," what type of legal
description is being used?
Lot and block
Metes and bounds
Monument system
Rectangular survey system - Answer-Rectangular survey system
Rectangular survey system descriptions reference a section within a township.
Question 13
______ determines who the heir or heirs will be if a person dies without a will.
Court appointment
Escheat
Intestate bequest
Intestate succession - Answer-Intestate succession
If a person dies without a will, the order of inheritance is called intestate succession. It's
a
predetermined priority of heirs based on close family relationships (i.e., spouse inherits
first, followed
by children).
Question 14
What information does the Loan Estimate provide to buyers under required disclosures
law?
Broker commission rates
Final closing costs
Loan payment schedule
Referral fees - Answer-Loan payment schedule
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