CE Final Exam RE, The CE Shop Test, Real
Estate Final Exam Questions and Answers
100% Correct | 2024-2025
is a process in which an appraiser determines a probable range of values for a
property by comparing a group of comparable sales to the subject. The appraiser attempts to
include both superior and inferior units of comparison, such as age, transaction price, etc.
- Answer: - Bracketing
The number of properties available describes this factor that influences value.
- Answer: - Scarcity
Related to demand, and reflects the supply of property, or lack thereof. Which of the following
statements about agents and the duty of obedience is true?
- Answer: - An agent should carry out the client's instructions as long as they are within the law.
Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson
financing?
- Answer: - $480,000
Appraiser Niles uses to determine a range of values based on comparing a subject property to
comparable sales. He makes sure to use some comparables that lack features of his subject
property, and others that have even more desirable features, to balance out the comparison.
- Answer: - Bracketing
What does REO stand for?
- Answer: - Real estate owned
What does the rectangular government survey system use as the basis for legal descriptions?
- Answer: - Principal meridians, base lines, and sections
Which entity ensures that contractors perform their work according to code by inspecting their job
sites?
- Answer: - The building department
Randi is a licensee who would like to update her advertising. What must she be sure to include on
any advertising listed with her or any other brokerage?
- Answer: - Brokerage name
Seller Randy signed a listing agreement with Barbara, who worked very hard to find him a buyer.
Randy's cousin decided to purchase the house during the listing period. Is Barbara owed a
commission?
- Answer: - Yes, if she has an exclusive right-to-sell agreement.
Mario doesn't want to include a religious preference in his listing ad, so which of the following
phrases should he use?
- Answer: - Apartment available for members of attached temple
Homeowners can take several actions related to pest infestations, but which of the following
actions should be left to licensed pest management professionals?
- Answer: - Applying pesticides
,When banks have lots of funds available for lending, what tends to happen to interest rates?
- Answer: - Rates decrease
Which of these transactions would require the Missouri licensee to provide written disclosure of
his or her interest?
- Answer: - Step is her father's buyer's agent.
Missouri license law requires that licensees provide written disclosure of any ownership interest
they have or will have in a property. "Interest" also includes being the spouse, parent, or child of a
party to a real estate transaction.
- Answer: - Nine
Stanley is having second thoughts about taking his neighbor to court over a written agreement
they have concerning who pays the rent on a storage unit that they share, because it's used to
store stolen merchandise. Stanley doesn't think the contract will stand up in court. What type of
contract does Stanley have?
- Answer: - Void
The informational form that explains the different types of agency representation and transaction
services available to real estate consumers in Missouri is known as the
- Answer: - Missouri Broker Disclosure Form
Which of the following is true about an attorney's opinion of title?
- Answer: - It uses public records to validate property transfers.
An attorney's opinion of title provides a legally valid opinion of a property's ownership history. The
attorney's scope of information is still limited to what's available in the public records.Which term
involving trespassing is used when someone other than the owner claims title to real property?
- Answer: - Adverse possession
What's designed to protect buyers from financial loss if the title to the property they buy has
defects?
- Answer: - Title insurance
Which of these is an example of illegal market allocation?
- Answer: - Based on licensee expertise, Uptown Homes agrees with County Cottage Realty to
focus exclusively on suburban, rather than rural, homes.
Lacey is preparing an offer for her buyer clients, and it's time to enter the amount of earnest
money they're going to offer. Which of the following statements is true regarding what earnest
money the buyers should offer?
- Answer: - Lacey should allow her clients to determine the amount of the earnest money offered.
When considering buying property subject to an existing lease, it's critical to understand the lease
terms, including the lease duration, rent amount, renewal/purchase options,
Lease start date
Property management responsibilities Security deposit amount
Tenant's occupation - Answer: - Property management responsibilities
What's the purpose of zoning?
- Answer: - It dictates how land in a specific area can be used.
Which of these may be covered by a builder-backed home warranty?
- Answer: - Workmanship
, Cameron had a listing agreement with a client named Ben. Ben got mad at Cameron and said he
was terminating the agreement. Can Ben do this?
- Answer: - Yes, but certain terms of the agreement may still be binding upon Ben.
What duties does a buyer agent have to the seller?
- Answer: - To disclose the agent's relationship with the buyer
Jasper has a new listing, and he appoints Esther as his sub-agent. Esther brings Julie, a buyer
customer, to the transaction, and Julie buys Jasper's listing. What's true about the agency
relationships in this situation?
- Answer: - Esther owes her loyalty to the seller
Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in order to be
legally enforceable, the written contract must name the contracting parties, identify the subject
matter of the contract, and .
- Answer: - Present the essential terms and conditions of the contract
Which of the following statements is true regarding earnest money in Missouri?
- Answer: - Earnest money must be placed in an escrow account within 10 banking days of
receipt.
Heath leases space in a commercial building for his sporting goods store, and the building owner
insisted on having Heath sign a percentage lease. Under the terms of a percentage lease, Heath
must pay .
- Answer: - A percentage of his sales to the property owner
With which type of government power can a lien be placed on a property, giving the government a
claim to the property?
- Answer: - Taxation
The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest
rate offered for the first year of an adjustable rate mortgage. What's this type of rate called?
- Answer: - Teaser rate
Land, plus all things permanently attached to it naturally or artificially, is .
- Answer: - Real estate
A Missouri salesperson is selling her own property as a For Sale by Owner listing. What
information must be included in any advertising she does?
- Answer: - The phrase "by owner-salesperson"
Aside from price, which of the following is a legitimate reason to counter an offer?
- Answer: - The closing date is unacceptable to one party.
At a business meeting among heads of the top brokerages in town, the keynote speaker
discussed a minimum listing fee. What's this is an example of?
- Answer: - Price fixing
In which of the following situations would an agent be representing a customer in a real estate
purchase?
- Answer: - Never
The tax associated with property taxes is relatively stable and a high revenue generator because
- Answer: - Property values tend to remain stable over time
Property taxes have specific characteristics that make them a reliable target for taxation, and one
