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State Exam Prep (Random Questions)
12/22 Questions with Detailed Verified
Answers (100% Correct Answers) /Already
Graded A+
If a salesperson resigns or is discharged by his broker, the broker must return the
license certificate of the salesperson within:
A. Three business days
B. 10 business days
C. One month
D. A calendar year
Ans: A. Three business days
When a salesperson becomes employed by a broker, the Commissioner must be notified within
five days.
If the value of the land is $350,000; the cost of building a home on the land is
$300,000; and, the accrued depreciation is $45,000, how much is the property
worth using the cost approach to appraising?
A. $500,000
B. $45,000
C. $605,000
D. $5000
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Ans: C. $605,000
Accrued depreciation is the difference in cost accumulating over time between the
replacement value of a new building and its current appraised value. The formula for the cost
approach is:
land value + new building cost - accrued depreciation = property value
$350,000 + $300,000 - $45,000 = $605,000
Which of the following is not a tool used by the Fed to regulate the economy?
A. Manipulating interest rates
B. Regulation of the secondary mortgage market
C. Open market operations
D. Reserve requirements
Ans: B. Regulation of the secondary mortgage market
The Fed has no power to regulate the secondary mortgage market. However, by raising or
lowering interest rates, the Fed can slow or stimulate economic activity and control inflation.
Open market operations relate to the Fed buying or selling Treasury bonds to increase or
decrease the total supply of money and also affect interest rates. Reserve requirements
determine the level of reserves a bank must hold in comparison to deposit liabilities; this
affects how banks make loans, a key element of the economy.
A real property lease creates a(n):
A. Estate for years
B. Attachment lien
C. Freehold estate
D. An estate at will
Ans: A. Estate for years
Leases require a definite termination date, which applies to none of the other options.
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If a purchaser under a land contract makes deposits into an impound account
designated to cover taxes and insurance, those funds cannot be used for any
other reason without consent by the:
A. Beneficiary
B. Seller
C. Purchaser
D. Impound accountant
Ans: C. Purchaser
The purchaser paying the impound amounts--the payor--is the only person authorized to spend
those funds on a different purpose.
An appraiser would use which of the following for a Comparative Market
Analysis (CMA):
A. Current listings
B. Homes recently sold
C. Listings recently expired
D. All of the above
Ans: D. All of the above
Also called a Comparative Market Analysis, the CMA is prepared by agents for home sellers
to help establish the fair market sales price of a property. It takes into account recent
property sales, currently listed properties, and properties that have gone off the market--all
within the same neighborhood, with similar characteristics to the client's property.
A property may lose its homestead status if the:
A. Homestead owner builds another property
B. Homestead owner moves out of state
C. Homestead owner records another homestead
D. Homestead property is destroyed in a flood
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Ans: C. Homestead owner records another homestead
Someone can homestead only one property at a time. Moving from the home or its destruction
does not invalidate the homestead.
The opposite of "commingling of trust funds" by a real estate licensee would be:
A. Losing trust funds
B. Investing trust funds
C. Segregating trust funds
D. Conveying trust funds to a trustor
Ans: C. Segregating trust funds
The definition of commingling is mixing. Funds belonging to a licensee may not be commingled
with trust funds, it is a violation of Real Estate Law and the Regulations of the Real Estate
Commissioner to do so. Segregate means to keep separate.
The land description method that refers to the terms townships, sections, and
ranges is:
A. Leaps and bounds method
B. Government survey method
C. Rectangular circumscribing method
D. Land analysis system
Ans: B. Government survey method
The government survey method specifies the location of property through its location in a
particular township, section, or range.
A title insurance company can insure the following:
A. Lack of capacity to transfer title
B. Defective delivery of title
C. Whether the tenant's lease is free from encumbrances
Click here for more: Preppass - Stuvia
State Exam Prep (Random Questions)
12/22 Questions with Detailed Verified
Answers (100% Correct Answers) /Already
Graded A+
If a salesperson resigns or is discharged by his broker, the broker must return the
license certificate of the salesperson within:
A. Three business days
B. 10 business days
C. One month
D. A calendar year
Ans: A. Three business days
When a salesperson becomes employed by a broker, the Commissioner must be notified within
five days.
If the value of the land is $350,000; the cost of building a home on the land is
$300,000; and, the accrued depreciation is $45,000, how much is the property
worth using the cost approach to appraising?
A. $500,000
B. $45,000
C. $605,000
D. $5000
,Page | 2
Click here for more: Preppass - Stuvia
Ans: C. $605,000
Accrued depreciation is the difference in cost accumulating over time between the
replacement value of a new building and its current appraised value. The formula for the cost
approach is:
land value + new building cost - accrued depreciation = property value
$350,000 + $300,000 - $45,000 = $605,000
Which of the following is not a tool used by the Fed to regulate the economy?
A. Manipulating interest rates
B. Regulation of the secondary mortgage market
C. Open market operations
D. Reserve requirements
Ans: B. Regulation of the secondary mortgage market
The Fed has no power to regulate the secondary mortgage market. However, by raising or
lowering interest rates, the Fed can slow or stimulate economic activity and control inflation.
Open market operations relate to the Fed buying or selling Treasury bonds to increase or
decrease the total supply of money and also affect interest rates. Reserve requirements
determine the level of reserves a bank must hold in comparison to deposit liabilities; this
affects how banks make loans, a key element of the economy.
A real property lease creates a(n):
A. Estate for years
B. Attachment lien
C. Freehold estate
D. An estate at will
Ans: A. Estate for years
Leases require a definite termination date, which applies to none of the other options.
,Page | 3
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If a purchaser under a land contract makes deposits into an impound account
designated to cover taxes and insurance, those funds cannot be used for any
other reason without consent by the:
A. Beneficiary
B. Seller
C. Purchaser
D. Impound accountant
Ans: C. Purchaser
The purchaser paying the impound amounts--the payor--is the only person authorized to spend
those funds on a different purpose.
An appraiser would use which of the following for a Comparative Market
Analysis (CMA):
A. Current listings
B. Homes recently sold
C. Listings recently expired
D. All of the above
Ans: D. All of the above
Also called a Comparative Market Analysis, the CMA is prepared by agents for home sellers
to help establish the fair market sales price of a property. It takes into account recent
property sales, currently listed properties, and properties that have gone off the market--all
within the same neighborhood, with similar characteristics to the client's property.
A property may lose its homestead status if the:
A. Homestead owner builds another property
B. Homestead owner moves out of state
C. Homestead owner records another homestead
D. Homestead property is destroyed in a flood
, Page | 4
Click here for more: Preppass - Stuvia
Ans: C. Homestead owner records another homestead
Someone can homestead only one property at a time. Moving from the home or its destruction
does not invalidate the homestead.
The opposite of "commingling of trust funds" by a real estate licensee would be:
A. Losing trust funds
B. Investing trust funds
C. Segregating trust funds
D. Conveying trust funds to a trustor
Ans: C. Segregating trust funds
The definition of commingling is mixing. Funds belonging to a licensee may not be commingled
with trust funds, it is a violation of Real Estate Law and the Regulations of the Real Estate
Commissioner to do so. Segregate means to keep separate.
The land description method that refers to the terms townships, sections, and
ranges is:
A. Leaps and bounds method
B. Government survey method
C. Rectangular circumscribing method
D. Land analysis system
Ans: B. Government survey method
The government survey method specifies the location of property through its location in a
particular township, section, or range.
A title insurance company can insure the following:
A. Lack of capacity to transfer title
B. Defective delivery of title
C. Whether the tenant's lease is free from encumbrances
