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Real Estate
| Question | Answer |
|---|---|
| An agent has a fiduciary relationship with the a. client or principle b. customer c. agent d. subagent | client or principle |
| The type of agency that exists between the real estate agent and his client is usually a. special agency b. general agency c. universal agency d. panoramic agency | a. special agency |
| An agency relationship based on the actions of the parties is a. implied agency b. express agency | a. implied agency |
| An agency relationship based on a formal agreement between the parties, either written or verbal, is a. implied agency b. express agency | b. express agency |
| Which of the following is NOT a fiduciary duty? Choose one answer. a. obedience b. disclosure c. confidentiality d. knowledge | d. knowledge |
| Which is NOT grounds for termination of an agency relationship? a. death or incapacity of either party b. destruction or condemnation of the property c. failure on the part of the agent to show the property enough times d. mutual agreement | c. failure on the part of the agent to show the property enough times |
| An agency relationship in which the agent is given an interest in the subject of the agency, such as the property being sold is called a. designated agency b. dual agency c. agency coupled with an interest d. subagency | agency coupled with an interest |
| Representing two principals to a transaction without the knowledge and consent of both is Choose one answer. a. dual agency b. undisclosed dual agency c. subagency d. designated agency | b. undisclosed dual agency |
| In Louisiana, the law states that, unless there is a written agreement to the contrary, the agent represents Choose one answer. a. the buyer b. the seller c. the person he is with d. himself | the person he is with |
| A hidden structural defect that would not be discovered by ordinary inspection is called a: Choose one answer. a. caveat emptor b. latent defect c. hazard d. stigma | . latent defect |
| There are three basic types of buyer agency agreements. In which type is the agent guaranteed a commission regardless of who sells the property? a. open buyer agency b. exclusive agency buyer agency c. exclusive buyer agency d. none of the abo | . exclusive buyer agency |
| The agent whose actions are the primary reason for a sale taking place is said to be the: Choose one answer. a. designated agent b. procuring cause c. duty agent d. agent of record | b. procuring cause |
| The intentional misrepresentation of a material fact is: Choose one answer. a. fraud b. negligent misrepresentation c. negligent omission d. puffing | a. fraud |
| When an agent should have known that a statement about a material fact was false, this is called: Choose one answer. a. fraud b. negligent misrepresentation c. negligent omission d. puffing | b. negligent misrepresentation |
| If an agent is working as an independent contractor for the broker: a. the bro.must withhold SS and income taxes b. he is a broker's employee c. agent is responsible for paying his SS and inc.taxes d. the broker can require the agent to work set ho | c. the agent is responsible for paying his own Social Security and income taxes. |
| An express contract must be Choose one answer. a. written b. spoken c. written or spoken d. neither | . written or spoken |
| Which of the following is not considered a material fact or defect requiring disclosure? Choose one answer. a. environmental hazards b. problems with the foundation c. a leak in the roof d. an occupant of the house died of AIDS | d. an occupant of the house died of AIDS |
| Which is NOT required to have a RE license? a. anyone selling his own property b. attorneys selling property as part of their professional duties for a client. c. appraisers, trustees, and escrow clerks d. all of the above | d. all of the above |
| In the other 49 states a contract must be accompanied by a. good faith. b. intent. c. cause d. consideration. | d. consideration. No, instead of money, Louisiana requires cause with a contract. |
| A contract in which only one party is obligated is called a a. bilateral contract. b. unilateral contract. c. multilateral contract. d. executory contract. | b. unilateral contract. |
| A contract which has been signed but all the terms of the contract have not yet been met is said to be a | an a. executory contract. b. executed contract. c. voidable contract. d. unenforceable contract. |
| If a contract is not legal and is not binding on either party it is said to be a. valid. b. void. c. voidable. d. unenforceable. | b. void. |
| The Louisiana terms for void and voidable, respectively are a. null and relatively null. b. valid and unenforceable. c. executory and executed. d. legal and illegal. | a. null and relatively null. |
| The essential elements of a valid contract include all of the following EXCEPT a. offer and acceptance. b. consideration (or cause in Louisiana). c. legal capacity and legal objective. d. the date. | d. the date. |
| When there is an intent to deceive such as lying or intentionally withholding pertinent information, this is known as a. constructive fraud. b. actual fraud. c. mistake of fact. d. mistake of law. | b. actual fraud. |
| Errors regarding the facts of a contract are called a. constructive fraud. b. actual fraud. c. mistake of fact. d. mistake of law. | c. mistake of fact. |
| The substitution of one party to the contract for another party, or the replacement of a new obligation for an old one is called a. novation. b. accord. c. rescision. d. satisfaction. | a. novation. |
| Under certain conditions, one party may cancel or terminate a contract. This is known as a. novation. b. substantial performance. c. rescision. d. breach. | c. rescision. |
| Which type of listing is the best one to ensure the broker a commission? a. net listing b. open listing c. exclusive agency listing d. exclusive right to sell listing | d. exclusive right to sell listing d. both B and C. |
| Another term for earnest money is a. specific performance. b. liquidated damages. c. deposit. d. reserves. | b. liquidated damages. |
| A listing which is illegal in some states, and allows the broker to keep all proceeds of the sale in excess of a net amount is called a. net listing. b. open listing. c. exclusive agency listing. d. exclusive right to sell list | a. net listing. |
| In Louisiana if no money accompanies the contract, or if it is not stated what type of deposit it is, then it is considered to be a. specific performance. b. earnest money. | a. specific performance. |
| a. specific performance. | a. an option. |
| When a buyer submits an offer to purchase, at what point is he obligated to the contract? a. when he signs the offer. b. when the seller accepts the offer. c. when the buyer is notified that the seller has accepted the offer. d | c. when the buyer is notified that the seller has accepted the offer. |
| A counteroffer is essentially the same as | a. a new offer. b. a rejection. c. conditional acceptance. d. all of the above. |
| Can an offer made but not yet accepted by the S be revoked by the buyer? a. Yes, in most states an offer is revocable up until the time it is accepted by the seller. b. No, in Louisiana an offer is binding and irrevocable. c. both a an | c. both a and b. |
| What type of interest, if any, does a purchaser have in a property he has contracted to buy, but the sale has not yet been executed? a. none b. equitable title c. contingent title d. conditional title | b. equitable title |
| The selling price of a property would be listed how on the closing statement? a. debit to the B, credit to the S b. credit to the B, debit to the S c. debit to the buyer, nothing to the seller. d. credit to the buyer, nothing to the selle | a. debit to the buyer, credit to the seller. |
| Which law prohibits any type of discrimination based on race? a. The Civil Rights Act of 1866 b. The Civil Rights Act of 1964 c. The Fair Housing Act of 1968 d. The Fair Housing Act of 1988 | a. The Civil Rights Act of 1866 |
| Which group was added as a protected class in 1974? a. nationality b. sex c. familial status d. handicap | b. sex |
| Which amendment to the Fair Housing Act provided for more authority to enforce the laws and established maximum fines? a. 1964 amendment b. 1968 amendment c. 1972 amendment d. 1988 amendment | d. 1988 amendment |
| Which groups would be protected under the familial status category? a. children under 18 living with their parents b. a pregnant woman c. a child under 18 who is living with a person who is seeking legal custody. d. all of the above. | d. all of the above. |
| Panic selling for financial gain by insinuating that a minority group is moving into the area is known as a. steering. b. blockbusting. c. redlining. d. permissible practice. | b. blockbusting. |
| Refusing to make loans or issue insurance policies in certain areas is known as a. blockbusting. b. steering. c. puffing. d. redlining. | d. redlining. |
| Which of the following agencies are responsible for enforcement of the Federal Fair Housing Laws? a. Office of Equal Opportunity b. Department of Housing and Urban Development c. Federal Courts d. all of the above. | d. all of the above. |
| What are the 7 protected classes?? a. race, color, religion, national origin, sex, familial status, handicapped b. race, reli, nat. origin, marital status, handicap, sex, familial status c. race, reli, nat.origin, sex, fami status, handic, marital | a. race, color, religion, national origin, sex, familial status, handicapped |
| What act prohibits discrimination on the basis of race, color, nationality, sex, marital status or age in the granting of credit? a. Americans With Disabilities Act b. Equal Credit Opportunity Act c. Fair Housing Act of 1988 d. none of the above | b. Equal Credit Opportunity Act |
| Who is NOT protected by the fair housing laws? a. individ. who would provide a direct threat to health and safety of others b. individ. who've been convicted of illegal manufacture or distribution of controlled substances c.ill. drug addicts d.all | d. all of the above. |
| What is the penalty for a first offense fair housing violation? a. $2000 b. $5000 c. $11,000 d. $25,000 | c. $11,000 |
| What is the penalty for a second fair housing offense within the past 5 years? a. $5000 b. $11,000 c. $27,500 d. $55,000 | c. $27,500 |
| What is the penalty if there have been 2 or more fair housing violations within the past 7 years? a. $11,000 b. $25,000 c. $35,000 d. $55,000 | d. $55,000 |
| Real property consists of a. land b. improvements c. plants, trees and crops d. all of the above | d. all of the above |
| The term "situs" refers to a. commercial property. b. location. c. how much property is available. d. Economic value. | b. location. |
| Land ownership extends a. from surface of earth to top of highest trees b. 20 feet below the surface of the earth. c. 20 feet below the surface and 20 feet above the surface. d. From the center of the earth and above the earth to infin | d. From the center of the earth and above the earth to infinity. |
| The 4 economic characteristics of land are a. scarcity, modification, fixity of investment, situs b. Scarcity, immobility, modification, situs c. Permanence, modification, scarcity, uniqueness d. Scarcity, immobility, fixity of investment, situs | a. scarcity, modification, fixity of investment, and situs. |
| Do mineral rights transfer when the property is sold? a. Yes, always. b. No, never. c. Yes, unless specifically retained in the contract. d. Only if there has been drilling on the property. | c. Yes, unless specifically retained in the contract. |
| Water rights that apply to land adjacent to running water are called: a. Riparian. b. Littoral. c. Percolating. d. None of the above. | a. Riparian. |
| Water rights that apply to ocean front and lake front property (lapping water) are called: a. Riparian. b. Littoral. c. Percolating. d. None of the above. | b. Littoral. |
| In states where water is scarce, the ownership and use of water is often determined by: a. First come first served. b. Ownership of the land adjacent to the water source. c. Doctrine of prior appropriation. d. A judge. | c. Doctrine of prior appropriation. |
| Underground water sources such as springs, geysers, and underground streams are known as: a. Riparian waters. b. Littoral waters. c. Appropriated waters. d. Percolating waters. | d. Percolating waters. |
| Anything man-made that is added to the land such as homes, buildings, fences or sidewalks is known as a. movables. b. improvements. c. fixtures. | b. improvements. |
| An item of personal property which has been permanently attached to real property such as a light fixture or a bathtub is known as a a. Fixture. b. Improvement. c. Component. | a. Fixture. |
| Which of the following are methods for determining what is and is not a fixture? a. Agreement between the parties. b. Method of attachment. c. Intention and adaptability. d. All of the above. | d. All of the above. |
| The method by which real property may become personal property is called a. Adaptability b. Annexation c. Severance d. Attachment | c. Severance |
| What type of fixture is considered personal property even though it is attached to the building? a. Annexed property b. Trade fixtures c. Movables d. There is no such thing. | b. Trade fixtures |
| b. Trade fixtures | a. Fructus naturales |
| Another name for fructus industriales is a. Fructus naturals b. Emblements c. Trade fixtures d. Allodials | b. Emblements |
| The rights associated with ownership of real property are called a. the "Bundle of Rights" b. Separable Rights. c. Owners' Rights | a. the "Bundle of Rights" |
| A type of ownership which extends for an indefinite length of time and includes some or all of the rights contained in the Bundle of Rights is called a a. freehold estate. b. non-freehold estate | a. freehold estate. |
| A type of ownership which extends for a set period of time is called a a. freehold estate b. non-freehold estate | b. non-freehold estate |
| The most complete form of ownership which lasts forever and may be passed on to one's heirs is called: a. fee simple or fee simple absolute b. freehold c. non-freehold d. qualified fee | a. fee simple or fee simple absolute |
| A type of ownership which has conditions placed on it is known as a: a. qualified fee estate b. determinable fee estate c. Both A and B d. Neither A nor B | c. Both A and B |
| A qualification in a fee simple estate which prevents the new owner from performing some action or activity is known as a a. condition subsequent b. reverter clause c. life estate d. fee simple | a. condition subsequent |
| A type of freehold estate which exists until the death of a certain specified person is called a a. qualified fee estate b. condition subsequent c. life estate d. remainderman | c. life estate |
| There are two general types of life estates. They are a. conventional and legal b. reverter clause and remainderman c. curtesy and dation d. life estate in reversion and life estate | a. conventional and legal |
| Ownership by one person is known as ownership in a. severance b. severalty c. indivision d. common | b. severalty |
| Ownership by two or more people is known as a. co-ownership b. ownership in severalty c. sole ownership d. common ownership | a. co-ownership |
| The simplest form of co-ownership in which each owner holds title to a specific share of the property but it is said to be "undivided" is called: a. tenancy in common. b. Joint tenancy c. Tenancy by the entirety d. Community pr | a. tenancy in common. |
| A type of co-ownership in which all owners must acquire their interest at the same time, hold an equal share, and has the right of survivorship is: a. tenancy in common b. joint tenancy c. tenancy by the entirety d. community pr | b. joint tenancy |
| Tenancy by the entirety is ownership by a. joint tenants b. a husband and wife c. a single person d. two or more persons | b. a husband and wife |
| Ownership by a husband and wife in which the husband and wife each have separate, equal ownership in anything acquired by the marriage is called a. joint tenancy b. tenancy by the entirety c. community property d. tenancy in co | c. community property |
| A type of ownership in which the owner owns shares of stock rather than real property is called a a. co-operative b. condominium c. MUD d. PUD | a. co-operative |
| A form of ownership involving several owners holding fee simple title to individual units in a property and common ownership in the property's common grounds is called a: a. co-operative b. condominium c. MUD d. PUD | b. condominium |
| Highrise developments which combine offices, stores, theaters, apartments, and other facilities in a single building are called a. co-operatives b. condominiums c. Planned Unit Developments (PUD's) d. Mixed Unit Developments (M | d. Mixed Unit Developments (MUD's) |
| A business which is held by one person and is not incorporated is a a. sole proprietorship b. general partnership c. limited partnership d. syndicate | a. sole proprietorship |
| In which type of partnership is each partner responsible for the debts up to the limits of his own private resources? a. general partnership b. limited partnership | a. general partnership |
| Which type of business ownership has the disadvantage of being subject to double taxation? a. Sole proprietorship b. General Partnership c. Limited Partnership d. Corporation | d. Corporation |
| Which of the following is NOT a type of voluntary transfer? a. public grant b. private grant c. public dedication d. eminent domain | d. eminent domain |
| The party conveying title is known as the a. grantor b. grantee c. giver d. mortgagor | a. grantor |
| When the government gives land to a private party it is called a public grant. When a private party gives land to the government it is known as a a. public grant b. private grant c. public dedication d. private dedication | c. public dedication |
| A written instrument by which title to real property is formally transferred from one party to another is a a. grant b. deed c. dedication d. vendee | b. deed |
| To be valid, a deed must have all the following EXCEPT a. names of grantor and grantee b. consideration c. description of property being conveyed d. signature of grantee | d. signature of grantee |
| Which of the following types of deeds is the best one for the grantee? a. general warranty deed b. special warranty deed c. quitclaim deed d. bargain and sale deed | a. general warranty deed |
| In which type of deed does the grantor guarantee the title only during the time that he actually owned the property? | b. special warranty deed |
| Which type of deed provides the LEAST protection for the grantee? a. general warranty deed b. special warranty deed c. quitclaim deed d. bargain and sale deed | c. quitclaim deed |
| A type of deed that guarantees more than the quitclaim but less than the special warranty deed is the a. warranty deed b. bargain and sale deed with covenant c. bargain and sale deed d. specialty deed | c. bargain and sale deed |
| Which of the following are types of specialty deeds? a. administrator's deed b. executor's deed c. sheriff's deed d. all of the above | d. all of the above |
| Which clause in the deed identifies the grantor and the grantee, often including their addresses? a. granting clause b. vesting clause c. habendum clause d. acknowledgment | b. vesting clause |
| Which clause in a deed contains the actual words of conveyance? a. granting clause b. vesting clause c. execution clause d. acknowledgment | a. granting clause |
| Which of the following are types of Involuntary Transfer? a. Eminent Domain b. Escheat c. Adverse Possession d. All of the above | d. All of the above |
| The right of the government to take private property for public use is known as: a. eminent domain b. condemnation c. escheat d. adverse possession | a. eminent domain |
| If one of the owners in a joint tenancy or tenancy in common wishes to force the sale of the property, he does so through: a. escheat b. condemnation c. partition suit d. eminent domain | c. partition suit |
| The acquisition of title to property by possession of the property for a statutory number of years is called a. eminent domain b. escheat c. voluntary transfer d. adverse possession | d. adverse possession |
| When an owner dies without leaving a will and without heirs, his property reverts to the state. The term for this is: a. escheat b. eminent domain c. adverse possession d. acquisitive prescription | a. escheat |
| A will which is prepared by an attorney, witnessed and signed is known as a a. statutory will b. holographic will c. mystic will d. nuncupative will | a. statutory will |
| A person who dies leaving a will is said to have died testate. A person dying without a will is said to have died a. will-less b. intestate c. untestated d. none of the above. | b. intestate |
| A will that is written by the testator and in his own handwriting, dated and signed by him is known as a a. statutory will b. holographic will c. nuncupative will d. mystic will | b. holographic will |
| When a testator dies his will must go through a court proceeding called a. devise b. codicil c. probate d. succession | c. probate |
| A will usually names a person to carry out the instructions of the will. This person is called the a. administrator b. dower c. curtesy d. executor | d. executor |
| Acquiring property through natural or artificial causes, or acts of God is a type of involuntary transfer which is called a. devise b. accession c. succession d. none of the above | b. accession |
| The gradual increase in the size of a property as the result of some natural process is called accretion. The land deposited by this process is called a. alluvion b. erosion c. acquisition d. littoral | a. alluvion |
| The gradual exposure of land behind a receding waterline is called a. erosion b. alluvion c. reliction d. dereliction | c. reliction |
| A statement saying that a person signing the document has done so of his own free will and that he is the person whose signature appears on the document is a | an a. constructive notice b. acknowledgment c. verification d. affirmation |
| First hand information regarding a property is known as a. Actual notice b. Constructive notice c. Verification d. Acknowledgment | a. Actual notice |
| A brief summary of all recorded instruments which have affected the title to a property is called a | an a. attorney b. abstract of title c. chain of title d. certificate of title |
| A continuous linking of owners stretching back to the first owner or the original land grant is called a | an a. attorney’s opinion b. abstract of title c. chain of title d. certificate of title |
| A legal action in which the court seeks to resolve any possible clouds on the title is called a | an a. attorney's opinion b. abstract of title c. suit to quiet title d. certificate of title |
| An insurance policy which protects the lender for the amount of the loan as to problems with the title to the property is called a a. mortgagee's policy b. mortgagor's policy | a. mortgagee's policy |
| When a title company has made a payment to settle a claim covered by a policy, the title company then has a right to any remedy or damages available to the insured. This is: a. standard policy b. remediation c. fair coverage d. subroga | d. subrogation |
| Recording a transfer of property in the public records at the court house is known as a. public notice b. acknowledgment c. actual notice d. constructive notice | d. constructive notice |
| The power of the government to enact and enforce laws to protect the health, safety, morals and welfare of the general public is called a. eminent domain b. zoning c. police powers d. encumbrances | c. police powers |
| A change in zoning from a high density use to a lower density use, for example, from residential to agricultural is known as a. spot zoning b. downzoning c. protective zoning d. variance | b. downzoning |
| A building built before a zoning ordinance was enacted, but is allowed to continue until the building is torn down or its use is changed, is called a a. non-conforming use b. variance c. conditional use permit d. directive zoni | a. non-conforming use |
| Areas which separate areas of diverse zoning classifications are called a. variances b. protective zoning c. downzoning d. buffer zones | d. buffer zones |
| Building codes are enacted to specify the standards for construction of new buildings and alteration or repairing of existing buildings. Building codes are enforced by a. the police b. fines c. requiring building permits d. zonin | c. requiring building permits |
| A monetary claim upon the property of another, which uses the property itself as security for payment of a debt is a a. lien b. escheat c. assessment d. taxation | a. lien |
| A property tax that is imposed only on a specific segment of the community to pay for improvements for that segment is called a a. lien b. specific lien c. special assessment d. spot zoning | c. special assessment |
| A lien which attaches only to the property explicitly stated in the lien is a a. general lien b. specific lien c. attachment lien d. personal lien | b. specific lien |
| A property sold for $100,000. Assessment is 10%. The tax rate or millage rate is 25 mills. How much is the property tax? a. $10,000 b. $25,000 c. $2500 d. $250 | d. $250 |
| A claim or burden on a property which limits, restricts or otherwise affects one's interest or use of that property is called a | an a. Encumbrance b. Lien c. Mortgage d. Police power |
| Which of the following is | are types of private liens? a. mortgages b. mechanic c. judgments d. all of the above |
| A recorded notice of impending litigation against a property is called a. lis pendens b. lien c. judgment d. mortgage | a. lis pendens |
| A mechanic's lien for an unpaid swimming pool would be an example of a: a. Voluntary specific lien b. Involuntary specific lien c. Voluntary general lien d. Involuntary general lien | b. Involuntary specific lien |
| The prority of liens in regards to who is paid 1st in a foreclosure is?? | c. Property taxes, mechanic's liens, all other liens by date recorded |
| An agreement that changes the priority of liens is a | an a. lis pendens b. subordination agreement c. involuntary lien d. attachment |
| There are two types of deed restrictions. They are restrictive covenants and a. restrictive conditions b. restrictive encumbrances c. restrictive measures d. restrictive codes | a. restrictive conditions |
| If there is a conflict between zoning ordinances and restrictive covenants, which one takes precedence? a. the zoning ordinance b. the restrictive covenant c. the most restrictive one d. neither | c. the most restrictive one |
| The right to use a portion of the land of another for a specific purpose is a | an a. restrictive covenant b. easement c. lien d. zoning right |
| A type of easement always involving at least two tracts of land and involving ingress and egress is called a | an a. easement by necessity b. easement in gross c. easement appurtenant d. easement in general |
| An easement granted for a utility, pipeline, railroad, or water line would most likely be a | an a. easement appurtenant b. easement in gross c. easement by necessity d. right of use |
| The person benefiting from an easement appurtenant is called the a. dominant estate b. servient estate | a. dominant estate |
| Easements may be created by a. mutual agreement b. necessity c. prescription d. all of the above | d. all of the above |
| If the owner of the servient estate buys the land which is the dominant estate, what happens to the easement? a. It is terminated. b. It continues. c. It must be decided by the parties. d. Any of the above. | a. It is terminated. |
| An agreement granting the short term use of a property and which is revocable at any time is called a | an a. easement b. encroachment c. license d. servitude |
| The unauthorized use or occupation of another's property is called a | an: a. license b. encroachment c. encumbrance d. easement |
| Which are characteristics of the Metes and Bounds method of describing land? a. It must start at the point of beginning (POB) b. It uses fixed reference points. c. It uses linear measurements and compass directions. d. All of the | d. All of the above |
| Which is the LEAST acceptable form of property description? a. metes and bounds b. rectangular survey c. lot, block and tract d. street address | d. street address |
| What is the BEST feature of the metes and bounds method of describing land? a. It is particularly good for very large tracts of land b. It is particularly good for lots in a subdivision c.can be used to describe land of any shape d.is the cheapest | c. It can be used to describe land of any shape. |
| Meridians and range lines both run parallel to each other and a. north-south b. east-west | a. north-south |
| The distance between township lines is a. 1 mile b. 6 miles c. 16 miles d. 36 miles | b. 6 miles |
| A township has a theoretical area of a. 1 square mile b. 640 acres c. 36 square miles d. 48 square miles | c. 36 square miles |
| Townships are created by a. baselines and meridians b. range lines and township lines c. section lines d. arpents | b. range lines and township lines |
| How many sections are in a township? a. 10 b. 25 c. 36 d. 48 | c. 36 |
| Every fourth township line serves as a a. datum point b. bench mark c. correction line d. setback | c. correction line |
| A description that reads "Lot 5, Block B, Wildwood Heights" would be which type of description? a. metes and bounds b. lot, block and tract c. rectangular survey d. municipal address | b. lot, block and tract |
| How many square feet are there in an acre? a. 5,280 b. 26,000 c. 43,560 d. 45,360 | c. 43,560 |
| A section is a. one square mile b. 640 acres c. 36 square miles d. both A and B | d. both A and B |
| Given a description: “the SW ¼ of the NE ¼ of the SE ¼ of Section 16”. Which quarter of Section 16 is this land in? a. the southeast b. the northeast c. the southwest d. the northwest | a. the southeast |
| Every fourth township line serves as a a. datum point b. bench mark c. correction line d. setback | c. correction line |
| A description that reads "Lot 5, Block B, Wildwood Heights" would be which type of description? a. metes and bounds b. lot, block and tract c. rectangular survey d. municipal address | b. lot, block and tract |
| How many square feet are there in an acre? a. 5,280 b. 26,000 c. 43,560 d. 45,360 | c. 43,560 |
| A section is a. one square mile b. 640 acres c. 36 square miles d. both A and B | d. both A and B |
| Given a description: “the SW ¼ of the NE ¼ of the SE ¼ of Section 16”. Which quarter of Section 16 is this land in? a. the southeast b. the northeast c. the southwest d. the northwest | a. the southeast |
| What are the two MAIN functions of a property manager? a. to produce income and maintain the value of the property. b. To collect rent and take care of repairs c. To show property and lease space d. To handle complaints and mai | a. to produce income and maintain the value of the property. |
| A property management agreement is an example of what type of agency relationship? a. universal agency b. special agency c. general agency d. There is no agency relationship. | c. general agency |
| What are the two MAIN functions of a property manager? a. to produce income and maintain the value of the property b. To collect rent and take care of repairs c. To show property and lease space d. To handle complaints and maintain secur | a. to produce income and maintain the value of the property. |
| A property management agreement is an example of what type of agency relationship? a. universal agency b. special agency c. general agency d. There is no agency relationship | c. general agency |
| The landlord is the _____________ , and the tenant is the _____________ . a. lessor, lessee b. lessee, lessor c. rentor, rentee d. rentee, rentor | a. lessor, lessee |
| What type of interest does the lessor have in the rights that he gives to the tenant? a. conditional ownership b. partial ownership c. reversionary d. none | c. reversionary |
| The right of the lessor to remove tenant’s personal property and hold it until rent is paid is called: a. right to eviction b. right to sequester c. right to assign d. right to retain improvements. | b. right to sequester |
| A leasehold is what type of estate? a. freehold b. fee simple c. non-freehold d. none | c. non-freehold |
| A type of leasehold interest which runs for a determinate length of time with a specified expiration date, and which is the most common type of leasehold interest is a. tenancy for years b. periodic tenancy c. tenancy at will d. tenancy at suffera | a. tenancy for years |
| A type of leasehold estate which automatically renews for another term of equal length is a. tenancy for years b. periodic tenancy c. tenancy at will d. tenancy at sufferance | b. periodic tenancy |
| A leasehold estate that runs indefinitely with no term or expiration date is a. tenancy for years b. periodic tenancy c. tenancy at will d. tenancy at sufferance | c. tenancy at will |
| When a tenant occupies a premises without the landlord’s consent, it is called a. tenancy for years b. periodic tenancy c. tenancy at will d. tenancy at sufferance | d. tenancy at sufferance |
| A type of lease which requires fixed payments at regular intervals and does not include the costs of taxes, insurance, or maintenance, is a a. gross lease b. fixed lease c. straight lease d. all of the above | d. all of the above |
| A lease which includes a fixed amount of rent plus a share, or all of the property’s operating expenses is a: a. gross lease b. net lease c. graduated lease d. index lease | b. net lease |
| A type of lease often used for retail businesses which is based on a percentage of the business a. gross lease b. net lease c. percentage lease d. index lease | c. percentage lease |
| A type of lease in which the rent is tied to an external index, such as the cost-of-living index or the consumer price index, is a | an a. gross lease b. percentage lease c. graduated lease d. index lease |
| A lease in which the lessee rents only the land is called a a. gross lease b. ground lease c. index lease d. proprietary lease | b. ground lease |
| A type of lease that is used by a business to raise capital and involves selling the property and then leasing it from the new owner is called a a. escalated lease b. index lease c. ground lease d. sale-leaseback | d. sale-leaseback |
| The type of lease that is held by a shareholder | tenant in a cooperative is a a. proprietary lease b. net lease c. ground lease d. percentage lease |
| Which of the following is | are ways in which a lease may be terminated? a. expiration of the term of the lease. b. Agreement of the parties c. Eviction d. All of the above. |
| When a tenant is forced to vacate the premises by the landlord for non-payment of rent, or some other breach of the contract it is called a. actual eviction b. constructive eviction | a. actual eviction |
| When a tenant is forced to vacate the premises because of a breach of contract on the part of the landlord, such as failure to repair the heating unit, this is called a. actual eviction b. constructive eviction | b. constructive eviction |
| An additional time period in which the borrower can pay a debt and redeem his property is called a. equitable right of redemption b. loan extension c. collateral d. late payment | a. equitable right of redemption |
| The document which contains the promise to repay along with specific conditions and stipulations is a a. collateral b. mortgage c. promissory note d. pledge | c. promissory note |
| The property which is pledged in the loan instrument is called the a. mortgage b. collateral c. note d. title | b. collateral |
| Under the Title Theory, who is the legal owner of the mortgaged property? a. the lender b. the borrower | a. the lender |
| Under the Lien Theory, the borrower holds legal title to the pledged property and the lender holds a a. conditional title b. equitable title c. lien against the property. d. Deed | c. lien against the property. |
| Under the Lien Theory, title is said to ___________________ to the lender. a. default b. hypothecate c. manifest d. lien | b. hypothecate |
| When the debt is paid, the mortgage is said to be a. dead b. redeemed c. hypothecated d. defeated | d. defeated |
| A security instrument that secures for the repayment of a debt is a a. mortgage b. trust deed c. A or B | c. A or B |
| The borrower, or person making the loan is the a. mortgagor b. mortgagee | a. mortgagor |
| The person who lends the money is the a. mortgagor b. mortgagee | b. mortgagee |
| If a promissory note is not secured by a mortgage, it is called a | an a. collateral note b. conditional note c. unsecured note d. void note |
| A clause in a promissory note that gives the lender the right to demand payment in full of the entire unpaid debt if the borrower defaults is called a | an a. defeasance clause b. acceleration clause c. prepayment clause d. lock-in clause |
| A clause in a promissory note which provides for a penalty if the debt is paid off early is called a | an a. defeasance clause b. acceleration clause c. prepayment clause d. mortgagee |
| The action which cancels the note when the full debt is paid and defeats any interest the mortgagee has had in the collateral property is called a. satisfaction of judgment b. de-pledging c. collateral removal d. cancellation act | a. satisfaction of judgment |
| The clause in a mortgage which pledges the collateral property to the mortgage is called the a. satisfaction clause b. warranty clause c. granting clause d. defeasance clause | c. granting clause |
| The clause in a mortgage that states that the mortgagor has good and clear title to the property and has the right to convey it is the a. granting clause b. warranty of title clause c. defeasance clause d. title clause | b. warranty of title clause |
| The clause which provides for removal of the mortgage when the debt is paid is the a. defeasance clause b. escalation clause c. warranty of title clause d. granting clause | a. defeasance clause |
| A clause which may be included giving the lender the right to increase the rate of interest during the length of the mortgage is a | a. granting clause b. defeasance clause c. interest clause d. escalation clause |
| A covenant is the same as a a. promise b. clause c. lien d. mortgage | a. promise |
| The letters PITI stand for a. principal, interest, taxes, and insurance b. principal, interest, time, and income c. possession, interest, taxes, and income d. possession, income, title, and insurance | a. principal, interest, taxes, and insurance |
| A clause which makes the mortgage non-assumable (assumable means that a buyer can assume or take over the seller's mortgage) is a | an: a. acceleration clause b. alienation clause c. subordination clause d. prepayment clause |
| A clause which is found in certain types of mortgages that gives permission for another, subsequent lender to assume the rights of a 1st mortgage lien is called a a. alienation clause b. acceleration clause c. subordination clause d. defeasance cl | c. subordination clause |
| The right of a title company to receive any damages available to the insured when the title company has made a payment to settle a claim covered by a policy is called a. subordination b. subrogation c. defeasance d. alienation | b. subrogation |
| The Trust Deed differs from a mortgage in that it involves ____________________ parties. a. two b. three c. four d. unlimited | b. three |
| In a Trust Deed, the borrower is known as the a. trustor b. trustee c. beneficiary d. buyer | a. trustor No, the correct answer is A, trustor. The borrower, or trustor, gives title to the trustee in and receives a loan, or other consideration, from the lender, or beneficiary. |
| The trust deed conveys what type of title to the third party? a. Equitable title b. Bare or naked title c. Conditional title d. Defeasable title | b. Bare or naked title |
| The instrument which transfers the title back to the original owner once the trust deed is paid off is called a | an a. deed of reconveyance b. transfer deed c. trustee's deed d. defeasance deed |
| The clause in a trust deed that allows the trustee to sell the property and repay the beneficiary in case of default is called the a. defeasance clause b. reconveyance deed c. acceleration clause d. power of sale clause | d. power of sale clause |
| Which of the following is a form of owner financing? a. Contract for Deed b. Bond for Deed c. Purchase Money Mortgage d. All of the above. | d. All of the above. |
| In which of the following types of owner financing does the seller retain title to the property until the full debt is paid? a. Contract for Deed b. Bond for Deed c. Purchase Money Mortgage d. Both A and B | d. Both A and B |
| What is the advantage to the borrower in owner financing? a. He can get a larger loan. b. He can get a lower interest rate. c. He may have a smaller cash output to obtain the loan. d. There is no advantage. | c. He may have a smaller cash output to obtain the loan. |
| In which type of owner financing does the buyer receive title at the time of sale? a. Contract for Deed b. Bond for Deed c. Installment Land Contract d. Purchase Money Mortgage | d. Purchase Money Mortgage |
| Another name for Contract for Deed is a. Installment Land Contract b. Conditional Sales Contract c. Agreement to Convey d. All of the above. | d. All of the above. |
| Under which type of foreclosure is the lender required to refund to the borrower any profit realized on the sale of the foreclosed property? a.strict foreclosure b. foreclosure by sale c. friendly foreclosure d. mortgage foreclosure | b. foreclosure by sale |
| In some stat, if the lender is unable to recover his full interest in the foreclosed property, he may seek a ??, which allows the lender to attach and seize the borrower a.deficiency judgment b.strict foreclosure c.ordinary process d.executory pro | a. deficiency judgment |
| Which of the following is true of Deed of Trust Foreclosure? a. It is the most common type of foreclosure b. The property can be sold without going through the court action of foreclosure c. It eliminates the statutory period of redemption d. All a | d. All of the above. |
| In some cases, the borrower simply gives the property to the lender and the lender cancels the note and forfeits the right to a deficiency judgment. This is a. deed in lieu of foreclosure b. friendly foreclosure c. Dation en Paiement d. all above | d. all of the above |
| During the period of time after the borrower defaults and before the foreclosure sale,the borrower, or another lien holder,can redeem the property by paying the debt. It is a.equitable redemption b.statutory redempt. c.dation en paiement | a. equitable redemption |
| In some states there is an additional period of redemption after the foreclosure sale. This is called a. equitable redemption b. statutory redemption c. ordinary process d. executory process | b. statutory redemption |
| The quickest process for foreclosure is a. ordinary process b. executory process | b. executory process |
| The two general categories of loans are a. conventional and government backed b. conventional and general c. general and specific d. lender and seller | a. conventional and government backed |
| The process of determining the risk a lender is incurring by lending a sum of money to a certain borrower is called a. evaluating b. underwriting c. loan approximation d. estimating | b. underwriting |
| The term used to describe the relationship between the amount of the downpayment and the amount of the loan is called the a. loan to value ratio b. equity c. appraisal d. deposit | a. loan to value ratio |
| A buyer purchases a property for $120,000. The property appraised for $125,000. The down payment is $24,000. How much is the loan to value ratio? a. 75% b. 80% c. 85% d. 90% | b. 80% (No, the correct answer is B. Remember that the bank calculates the loan based on the lower value, between the selling price and the appraised value. $120,000 - $24,000 = $96,000. $96,000 |
| Any conventional loan that is greater than 80% is required to have a. private mortgage insurance b. conventional mortgage insurance c. preferred mortgage insurance d. public mortgage insurance | a. private mortgage insurance |
| The function of the FHA loan program is to a. provide funds for financing property b. insure loans against the borrower c. guarantee loans d. secure housing for the poor | b. insure loans against the borrower |
| Which statements is TRUE of the FHA insurance program? a.based on Mutual Mortgage Insurance (MMI) b.Bor pays insurance premium known as Mortgage Insurance Premium (MIP) c.Revenues generated from MIP’s are used to cover losses from Br default d.All | d. All of the above. |
| FHA permits no pre-payment penalties or lock-in clauses on its insured loans. a. True b. False | a. True |
| Which of the following is NOT true about FHA loans? a. FHA loans can be assumed b. FHA loans can NOT be sold on the 2dry market c.FHA loans are exempt from the federal usury law | b. FHA loans can NOT be sold on the secondary market. |
| While FHA loans are insured, VA loans are a. guaranteed. b. secured c. 100% d. never guaranteed or insured | a. guaranteed. |
| The loan guarantee amount which the veteran is eligible to receive on a VA loan is referred to as the a. reasonable value b. guarantee amount c. entitlement d. CRV | c. entitlement |
| Which of the following is NOT true concerning VA loans? a.The veteran may not buy another house using a VA loan until the 1st loan is paid off d.A maximum limit is set on the amount of the loan a veteran can obtain | d. There is a maximum limit set on the amount of the loan a veteran can obtain |
| A loan is made for $60,000 at 8% interest. How much is the first month's interest payment? a. $400 b. $480 c. $500 d. $4800 | a. $400 |
| Andrew secures a loan for $40,000 at 7.5% interest for 20 years. The monthly payment is $322.24. What is the principle payment for the first month? a. $22.24 b. $72.24 c. $250.00 d. $300.00 | b. $72.24 |
| What is the total amount of interest paid on the loan at the end of the term? a. $17,337 b. $30,000 c. $37,337 d. $60,000 | c. $37,337 . Multiply the monthly payment times the total number of payments in 20 years, then subtract the original loan amount. $322.24 X 240 = $77,337 - $40,000 = $37,337 |
| Discount points are also known as a. rate equalization factors. b. pre-paid interest. c. increased yield to the lender. d. All of the above. | d. All of the above. |
| A loan is made for $80,000 with 2 discount points. How much is the cost of the points? a. 16 b. 160 c. 1600 d. 400 | c. 1600 |
| A type of mortgage which covers several properties, but allows for separate release of the properties from the mortgage is a a. package mortgage b. blanket mortgage c. partial release mortgage d. wrap-around mortgage | b. blanket mortgage |
| A mortgage which is secured by both real and personal property is a a. package mortgage b. blanket mortgage c. purchase money mortgage d. wrap-around mortgage | a. package mortgage |
| A mortgage which is used for owner financing and combines an assumption and owner financing is a a. package mortgage b. blanket mortgage c. purchase money mortgage d. wrap-around mortgage | d. wrap-around mortgage |
| A type of interim financing used for construction and is paid out in draws at regular intervals is a a. interval loan b. construction loan c. package loan d. blanket loan | b. construction loan |
| A loan which calls for payments of interest only for the term of the loan with the entire principle due at the end of the term is a a. straight term loan b. amortized loan c. partially amortized loan d. balloon loan | a. straight term loan |
| A loan with a fixed monthly payment consisting of interest and principle in which the principle portion increases and the interest portion decreases each month is a. straight term loan b. amortized loan c. adjustable loan d. graduated l | b. amortized loan |
| A loan is made for $50,000 at 8% interest for 30 years. The factor from the amortization table for $1000 is 7.65. Find the monthly payment, principle and interest. a. $300.00 b. $333.33 c. $382.50 d. $395.00 | c. $382.50 . Multiply the number of thousands of the loan amount by the amortization factor. 50 X 7.65 = $382.50. |
| A type of loan which is typically amortized over 20 or 30 years, but with a term of 5 years and a balloon payment at the end of the 5 years is a a. partially amortized loan b. adjustable loan c. straight loan d. graduated loan | a. partially amortized loan |
| A loan in which payments start small and become larger over the term of the loan is a a. partially amortized loan b. adjustable rate loan c. straight loan d. graduated loan | d. graduated loan |
| Type of mortgage designed for retirees in which regular monthly payments are made to the borrower based on the equity, and in which the loan is paid from the sale of the property at the owner's death is a. reverse mortgage b. open end loan c. buydow | a. reverse mortgage |
| An arrangement in which the property is sold and leased to the seller, usually to raise capital for a business, is a a. reverse mortgage b. sale and leaseback c. buydown d. open end loan | b. sale and leaseback |
| The group of lenders who facilitate the buying and selling of mortgages that have been made by the primary mortgage market, by taking over loans that primary lenders have originated is a. Institutional lenders c. 2dry lenders d. Farmers Home Admin. | c. Secondary lenders |
| Individuals who act as intermediaries between the borrower and the lender, qualifying the buyer and finding lenders are a. Mortgage brokers b. Mortgage bankers c. Banks d. Savings and Loans | a. Mortgage brokers |
| A group which buys mortgages from savings and loans thereby providing them liquidity for their mortgage assets is a.Federal National Mortgage Assoc. b.Gov. National Mortgage Association c.Federal Home Loan Mortgage Corp. | c. Federal Home Loan Mortgage Corporation |
| A group similar to Fannie Mae and Freddie Mac, except that it purchases agricultural loans and issues guaranteed mortgage-backed securities is c. Federal Home Loan Mortgage Corporation d. Federal Agricultural Mortgage Corp. | d. Federal Agricultural Mortgage Corporation |
| Regulation Z of the Truth in Lending Law establishes guidelines for a. disclosure of loan costs, including annual percentage rate b. the right of rescission c. fair advertising practices d. All of the above | d. All of the above |
| Business and commercial loans are not covered by the Truth in Lending Law. a. True b. False | True |
| RESPA requires the lender to disclose a. interest rates b. number of payments c. closing costs d. amount of monthly payment | c. closing costs |
| RESPA applies to a. first mortgage transactions backed by FHA or VA b. HUD loans c. Loans that are to be bought by FNMA, GNMA, or FHLMC d. All of the above | d. All of the above |
| Which of the following is NOT deductible on your federal income tax? a. mortgage interest payments b. real estate taxes c. homeowners insurance d. loan discount points | c. homeowners insurance |
| The role of the Federal Reserve System is to a. maintain sound credit conditions b. help counteract inflationary and deflationary trends c. create a favorable economic climate d. all of the above | d. all of the above |
| The profit realized from the sale or exchange of an asset is a. capital gain b. deferred gain c. real gain d. preferred gain | a. capital gain |
| All or part of the gain on the sale of a personal residence is exempt from capital gains tax if another residence is bought and occupied within 24 months of the sale of the old residence. a. True b. False | True |
| A lot measures 50 feet by 150 feet. What is the area in square feet? a. 750 square feet b. 5000 square feet c. 7500 square feet d. not enough information | c. 7500 square feet |
| A lot is ½ acre. The length is 200 feet. What is the width? a. 100 feet b. 108.9 feet c. 120 feet d. 200 feet | b. 108.9 feet |
| A room measures 20 feet by 30 feet. Carpet costs $25 per square yard. How much will it cost to carpet the room? a. $166.67 b. $1600.00 c. $1666.67 d. $15,000 | c. $1666.67 |
| The penalty for non-compliance of Regulation Z is a. $1,000 b. $10,000 c. $10,000 per day d. There is no monetary penalty | c. $10,000 per day |
| The act that ensures that nonresident aliens and foreign corporations pay income tax based on gains from the disposition of U.S. real property is the a. Foreign Investment and Real Property Tax Act b. RESPA c. Regulation Z d. 1 | a. Foreign Investment and Real Property Tax Act |
| Commissions paid to salespersons must be reported on a. IRS 1099 MISC form b. IRS 1099 S form c. Tax-deferred form d. Does not have to be reported | a. IRS 1099 MISC form |
| A property owner may exchange one property for another and have the capital gain tax deferred. This is called a a. tax evasion b. 1031 tax-deferred exchange c. tax loophole d. this is not legal | b. 1031 tax-deferred exchange |
| Anti-trust laws prohibit a. price fixing b. agreement between brokers to divide their markets c. Board of Realtors setting commission rates d. All of the above | d. All of the above |
| The selling price of the property would be listed on the closing statement as a. credit to buyer, debit to seller b. debit to buyer, credit to seller c. debit to buyer, nothing to seller d. credit to seller, nothing to buyer | b. debit to buyer, credit to seller |
| The buyer’s loan amount and deposit would both be listed on the settlement statement as: a. credit to buyer, nothing to seller b. credit to buyer, debit to seller c. debit to buyer, credit to seller d. debit to buyer, nothing to | a. credit to buyer, nothing to seller |
| The pay-off of seller's mortgage would be listed on the settlement statement as: a. credit to buyer, debit to seller b. debit to buyer, credit to seller c. debit to seller, nothing to buyer d. credit to seller, nothing to buyer | c. debit to seller, nothing to buyer |
| An assumption of the seller’s loan would be listed on the settlement statement as a. debit to buyer, credit to seller b. credit to buyer, debit to seller c. debit to buyer, nothing to seller d. credit to seller, nothing to buye | b. credit to buyer, debit to seller |
| A lot measures 50 feet by 150 feet. What is the area in square feet? a. 750 square feet b. 5000 square feet c. 7500 square feet d. not enough information | c. 7500 square feet |
| A lot is ½ acre. The length is 200 feet. What is the width? a. 100 feet b. 108.9 feet c. 120 feet d. 200 feet | b. 108.9 feet |
| A room measures 20 feet by 30 feet. Carpet costs $25 per square yard. How much will it cost to carpet the room? a. $166.67 b. $1600.00 c. $1666.67 d. $15,000 | c. $1666.67 |
| A property sold for $175,000. The commission was 6%. What was the dollar amount of the commission? a. $2,916 b. $10,000 c. $10,500 d. $15,000 | c. $10,500 |
| A property sold for $150K. The commission was 6% & was split bet/ the listing broker and the selling bro. The selling bro gave the sales agent 60% of his share. How much did the sales agent receive? a. $2,700 b. $4,500 c. $9,000 d. none of the abo | a. $2,700 |
| A 50 acre tract of land sold for $15,000 per acre. The commission was 10%. The selling agent received 50% of the commission paid to the broker. How much did the selling agent receive? a. $750 b. $3,750 c. $37,50 d. $37,500 | d. $37,500 |
| A seller wants to sell his house. With the proceeds he must pay off an existing mortgage of $30K, pay closing costs of $2,000, and he wants to receive $10K cash. He must pay a 6% com. What must the selling price be? a. $44,680 b. $44, 520 c. $44,250 | a. $44,680 |
| A home is purchased for $125,000. The appraised value is $124,000. A loan is approved for 80%. What is the dollar amount of the loan? a. $99,200 b. $100,000 c. $100,200 d. $101,000 | a. $99,200 |
| A loan was approved for 90% of the appraised value. If the first monthly interest payment is $393.75 and the interest rate is 7%, what was the appraised value? a. $67,500 b. $75,000 c. $56,250 d. $51,030 | b. $75,000 |
| If the factor from the amortization table is 7.50 and the loan amount is $95,000, what will the monthly payment be, including principle and interest? a. $725.00 b. $750.00 c. $700.00 d. $712.50 | d. $712.50 |
| If the loan amount is $60,000 and the interest rate is 8%, what is the interest payment for the first month? a. $400 b. $480 c. $500 d. $600 | a. $400 |
| A property has an assessed value of $25,000. The tax rate is 20 mills. What is the tax? a. $450 b. $525 c. $500 d. $475 | c. $500 |
| The tax on a property is $600. The tax rate is 30 mills. Property is assessed at 50% of market value. What is the market value of the property? a. $20,000 b. $40,000 c. $50,000 d. $60,000 | b. $40,000 |
| A property sells for $72,000. An 80% loan is arranged with 1½ discount points to be paid. What will be the cost of the points? a. $750 b. $864 c. $1,080 d. $1,350 | b. $864 |
| Discount points for a 30 year loan at 8½ % are 2 ½. The loan amount is $85,000. How much will the points cost? a. $1,500 b. $1800 c. $2,125 d. $2,500 | c. $2,125 |
| A building has a gross annual income of $50,000 and expenses of $10,000 per year. If the capitalization rate is 10%, what is the value of the building? a. $50,000 b. $350,000 c. $400,000 d. $500,000 | c. $400,000 |
| If net annual income is $35,000 and the value is $500,000, what is the capitalization rate? a. 6.5% b. 7.0% c. 7.5% d. 8.0% | b. 7.0% |
| If a house sold for $175,000 with a loan of 80% at 7% interest for 20 years, how much is the transfer tax if the tax rate is $3/1000? a. $300 b. $500 c. $525 d. $700 | c. $525 |
| An office building has a monthly rental income of $8,500. The value of the building is $1,250,000. What is the GRM? a. 11.75 b. 12.08 c. 12.26 d. 13.25 | c. 12.26 |
| A house rents for $800 per month. The GRM for the area is 125. What is the value? Choose one answer. a. $90,000 b. $100,000 c. $120,000 d. $150,000 | b. $100,000 |
| A house sells for $100,000 which was a profit of 25%. What was the original cost of the house? a. 75,000 b. 80,000 c. 85,000 d. 90,000 | b. 80,000 |
| The single most important thing in determining the value of a property is a. situs b. market analysis c. transferability d. demand | a. situs |
| If a property is in a good location we say it has a. negative situs b. positive situs c. externatlities d. amenities | b. positive situs |
| An estimate of value which is NOT a formal appraisal but uses the same principles and many of the same methods as the sales comparison approach is a a. market value b. situs evaluation c. competitive market analysis or CMA d. estimate of demand | c. competitive market analysis or CMA |
| The desire to purchase along with the ability is called a. value b. competition c. supply and demand d. demand | d. demand |
| There are 4 determinants of value. Each of these must be present in order to have value. They are a. demand, utility, scarcity, and transferability b. demand, utility, situs, & transferability c. demand, utility, supply, title | a. demand, utility, scarcity, and transferability |
| The principle of value that is the basis for the Income Approach to value is a. anticipation b. contribution c. externalities d. substitution | a. anticipation |
| The principle of value that is the basis for subdivision restrictions is a. competition b. contribution c. conformity d. highest and best use | c. conformity |
| A home is purchased for $125,000. The appraised value is $124,000. A loan is approved for 80%. What is the dollar amount of the loan? a. $99,200 b. $100,000 c. $100,200 d. $101,000 | a. $99,200 |
| A loan was approved for 90% of the appraised value. If the first monthly interest payment is $393.75 and the interest rate is 7%, what was the appraised value? a. $67,500 b. $75,000 c. $56,250 d. $51,030 | b. $75,000 |
| If the loan amount is $60,000 and the interest rate is 8%, what is the interest payment for the first month? a. $400 b. $480 c. $500 d. $600 | a. $400 |
| A property has an assessed value of $25,000. The tax rate is 20 mills. What is the tax? a. $450 b. $525 c. $500 d. $475 | c. $500 |
| The tax on a property is $600. The tax rate is 30 mills. Property is assessed at 50% of market value. What is the market value of the property? a. $20,000 b. $40,000 c. $50,000 d. $60,000 | b. $40,000 |
| A property sells for $72,000. An 80% loan is arranged with 1½ discount points to be paid. What will be the cost of the points? a. $750 b. $864 c. $1,080 d. $1,350 | b. $864 |
| Discount points for a 30 year loan at 8½ % are 2 ½. The loan amount is $85,000. How much will the points cost? a. $1,500 b. $1800 c. $2,125 d. $2,500 | c. $2,125 |
| A building has a gross annual income of $50,000 and expenses of $10,000 per year. If the capitalization rate is 10%, what is the value of the building? a. $50,000 b. $350,000 c. $400,000 d. $500,000 | c. $400,000 |
| If net annual income is $35,000 and the value is $500,000, what is the capitalization rate? a. 6.5% b. 7.0% c. 7.5% d. 8.0% | b. 7.0% |
| A house rents for $800 per month. The GRM for the area is 125. What is the value? a. $90,000 b. $100,000 c. $120,000 d. $150,000 | b. $100,000 |
| An office building has a monthly rental income of $8,500. The value of the building is $1,250,000. What is the GRM? a. 11.75 b. 12.08 c. 12.26 d. 13.25 | c. 12.26 |
| If you are turned down for a loan, what law gives you the right to be furnished with the reason you were turned down? a. Equal credit opportunity b. Regulation Z c. Truth in Lending d. Credit Disclosure Act | a. Equal credit opportunity |
| The doctrine of prior appropriation states that water rights belong to a. the current land owner b. The state c. The prior land owner d. The first person who makes a claim | b. The state |
| The value that one particular component of a structure contributes to the total value is a. substitution b. contribution c. conformity d. balance | b. contribution |
| A couple obtains an ARM loan with a 7% i. rate.The rate is tied to a national index with a 2 pt margin and 1%/year cap. If the index for the new year is 6.5%, what will the new i.rate on the loan be? a. 8.5% b. 8% c. 9% d. not enough informati | b. 8% |
| Things that are near a property and affect the value of the property are called a. externalities b. extremities c. situs d. contributers | a. externalities |
| A type of listing agreement in which the seller retains the right to sell the property himself without paying a commission even if listed with a broker is a. exclusive agency b. exclusive right to sell c. net listing d. open listi | a. exclusive agency |
| The maximum interest rate for FHA loans is set by the a. lender b. national government c. regional government d. city government | b. national government |
| The theory that there is one particular use for each property that will bring the highest value, is called a. competition b. progression and regression c. balance d. highest and best use | d. highest and best use |
| The principle which states that the value of an inferior property is increased by being near a better property, and the value of the better property is decreased by being near an inferior property, is b.Progression and regression c.Conformity | b. Progression and regression |
| The additional value between two similar income properties that is due to the land or the location is called a. surplus productivity b. excess productivity c. positive situs d. supply and demand | a. surplus productivity |
| Property values may be affected by a. demographic trends b. current financial climate c. levels of wages and salaries d. all of the above | d. all of the above |
| When two or more lots are combined to form one larger parcel, this is called: a. assemblage b. confusion c. plottage increment d. reconciliation | a. assemblage |
| If two lots are combined resulting in an increase in the value of the lots, this is called: a. assemblage b. plottage increment c. reconciliation d. change | b. plottage increment |
| When an appraiser uses more than one of the approaches to value on a single property, the process by which he combines the results from each is called: a. assemblage b. reconciliation c. plottage d. analysis | b. reconciliation |
| The form in which a residential appraisal is usually done is called the: a. letter b. narrative c. checksheet d. reconciliation | c. checksheet |
| The method of arriving at a value by estimating the cost to build a similar structure at today's prices is: a. reproduction cost b. replacement cost c. building cost d. new cost | b. replacement cost |
| The method of arriving at a value by calculating the cost to build an exact replica of the building is called a. reproduction cost b. replacement cost c. exact building cost d. replication cost | a. reproduction cost |
| Which of the following methods of estimating cost is the most accurate and the most time consuming? a. square foot method b. cubic foot method c. unit-in-place method d. quantity survey method | d. quantity survey method |
| When would an appraiser use the Cost Approach? a. when he can't find comparables b. for the first house in a subdivision c. For a church or other structure for which there are no comparables. d. all of the above | d. all of the above |
| True of False? You can not use the Cost Approach to appraise land. a. True b. False | a. True |
| The method of arriving at a value by estimating the cost to build a similar structure at today's prices is: a. reproduction cost b. replacement cost c. building cost d. new cost | b. replacement cost |
| The method of arriving at a value by calculating the cost to build an exact replica of the building is called a. reproduction cost b. replacement cost c. exact building cost d. replication cost | a. reproduction cost |
| Which of the following methods of estimating cost is the most accurate and the most time consuming? a. square foot method b. cubic foot method c. unit-in-place method d. quantity survey method | d. quantity survey method |
| When would an appraiser use the Cost Approach? a. when he can't find comparables b. for the first house in a subdivision c. For a church or other structure for which there are no comparables. d. all of the above | d. all of the above |
| True of False? You can not use the Cost Approach to appraise land. a. True b. False | a. True |
| If the cost of repairs is greater than the resulting increase in value, then we say the depreciation is a. curable b. incurable c. not cost effective d. not functional | b. incurable |
| A type of depreciation that results from normal wear and tear and is always curable is: a. physical depreciation b. functional depreciation c. external depreciation d. economic depreciation | a. physical depreciation |
| A type of depreciation that results from outdated design or technology is called a. physical depreciation b. functional depreciation c. external depreciation d. incurable depreciation | b. functional depreciation |
| If your property is located next to a toxic waste dump, you might expect to have which of the following types of depreciation? a. physical depreciation b. functional depreciation c. external depreciation d. none of the above | c. external depreciation |
| How old a property property “looks”, that is, the age based on what condition the property is in is called: a. total economic life b. economic life c. effective age d. actual age | c. effective age |
| If a property has a value of $80,000 with a land value of $30,000 and is being depreciated over a period of 50 years, how much would the property depreciate each year? a. $8,000 b. $5,000 c. $3,000 d. $1,000 | d. $1,000 Since you never depreciate land, you would subtract the value of the land from the total. $80,000 - $30,000 = $50,000. Then divide the remaining value by the number of years to get the amount of depreciation per year. $50,000 |
| The Sales Comparison Approach is based on the principle of: a. substitution b. change c. competition d. anticipation | a. substitution |
| How many comparables should be used when using the Sales Comparison Approach? a. 3 b. 3 to 5 c. 6 d. as many as necessary | d. as many as necessary |
| The subject property is a 2,500 sq.ft home. A comparable is found that has 2,300 sq.ft. Using a value of $100 per sq.ft, what adjustment should be made for the difference in square feet? a. +$20,000 b. -$20,000 c. +$2,000 d. -$ | a. +$20,000 |
| Which method of determining value is generally the best one and the most used? a. Sales Comparison b. Replacement Cost c. Reproduction Cost d. Gross Rent Multiplier | a. Sales Comparison |
| The Income Approach is based on the principle of a. substitution b. anticipation c. change d. surplus productivity | b. anticipation |
| The annual gross income minus all operating expenses for the year is the a. net annual income b. gross rent multiplier c. capitalization rate d. net gross income | a. net annual income |
| An investor’s rate of return on his investment is called the: a. net annual income b. gross rent multiplier c. capitalization rate d. investment rate | c. capitalization rate |
| An investor wishes to receive a 10% rate of return on his investment. If gross income for the year is $60,000 and annual expenses are $10,000, how much should he pay for the property? a. $50,000 b. $150,000 c. $500,000 d. $600, | c. $500,000 |
| An office building has a monthly income of $10,000. The GRM for the area is 12. What is the value of the building using the gross rent multiplier formula? a. $120,000 b. $144,000 c. $1,200,000 d. $1,440,000 | d. $1,440,000 |
| A person who holds a broker's license but is sponsored by another broker is a: a. salesperson b. associate broker c. individual broker d. This is not legal | b. associate broker |
| The sponsoring broker for a licensed corporation, limited liability company, or partnership is the a. qualifying broker b. associate broker c. limited broker d. designated broker | a. qualifying broker |
| The term “real estate activity” includes which of the following? a. Selling or purchasing b. All of the above c. Managing d. Listing for sale | b. All of the above |
| People who engage in the selling of timeshare interests or developing timeshare property who are registered with the RE Commission are known as a. timeshare agents b. timeshare salespersons c. timeshare registrants d. timeshare license | c. timeshare registrants |
| A real estate broker who holds a salesperson's license is a: a. qualifying broker b. sponsoring broker c. manager d. associate broker | b. sponsoring broker |
| A licensed person whose license has been transferred to inactive status is a. an active licensee. b. not authorized to sell real estate. c. not licensed. d. this is illegal | b. not authorized to sell real estate. |
| A person who engages the professional advice and services of a licensee as his agent is known as the a. client b. customer c. seller d. buyer | a. client |
| A licensee who is employed by & represents only the buyer in a RE transaction, regardless of whether the agent’s commission is paid by the buyer or by the seller is known as a: a. selling agent b. buyer's agent c. buyer broker d. This is not legal | b. buyer's agent |
| The Louisiana Real Estate Commission consists of how many members? a. 3 b. 6 c. 9 d. 12 | c. 9 |
| The members of the Commission are a. Appointed by the governor. b. Elected c. Appointed by the director of the Commission. d. Hired through the Civil Service | a. Appointed by the governor. |
| The Louisiana Real Estate Commission is domiciled in a. New Orleans b. Shreveport c. Baton Rouge d. Lake Charles | c. Baton Rouge |
| The Commission has the power to: a. issue licenses, registrations, and certificates. b. censure licensees, registrants, and certificate holders. c. suspend or revoke licenses, registrations, and certificates. d. All three of th | d. All three of these. |
| Which of the following may be considered grounds for refusing to issue a real estate license? a. a felony conviction b. making a false statement on the license application c. being under the age of 18. d. All of the above. | d. All of the above. |
| What are the requirements for obtaining a RE license in Louisiana? a. Must complete 90 hours of approved real estate coursework. b. Must be a high school graduate, or equivalent. c. Must pass the state exam. d. All of the above | d. All of the above. |
| All licensees are required to complete ____ hours continuing education each year. a. 6 b. 8 c. 10 d. 12 | d. 12 |
| Every applicant for a license shall submit a sworn statement attesting that he has knowledge of and understands the provisions of a. The Civil Rights Act b. The Fair Housing Act c. The Equal Employment Opportunity Act d. The Truth In Lending L | b. The Fair Housing Act |
| To obtain a broker's license you must have held an active salesperson's license for at least: a. Six months b. One year c. Four years d. Five years | c. Four years |
| Can a corpor. be granted a RE broker's license? a.Yes,if it has been granted a certificate of authority to do bus. in LA b.As long as it is not a foreign company d.No, they would be issued a bus. license | a. Yes, if it has been granted a certificate of authority to do business in Louisiana. |
| When a corporation, limited liability company or partnership is dissolved, the licenses of the qualifying broker and other sponsored licensees must be returned to the Commission within ____ days. a. 3 b. 5 c. 10 d. 30 | c. 10 |
| Upon termination of a qualifying broker’s affiliation with a corporation, limited liability company or partnership, the Commission must be notified and a new qualifying broker designated within a. 3 days b. 5 days c. 10 days d. 3 | b. 5 days |
| Which is true regarding licensees who have placed their license on inactive status? a.They must renew their inactive license each year b.They are not required to renew each year d.In order to transfer to active status they must take an exam | a. They must renew their inactive license each year. |
| If a licensee has been in the inactive status for one to three years, how many hours of continuing education will be required to activate his license? a. 8 b. 12 c. 20 d. 40 | c. 20 |
| Who may engage in the sale of real estate without being a licensed real estate agent? a. An attorney on behalf of his or her client b. A receiver or trustee in bankruptcy c. An individual selling his or her own property. d. All of the abov | d. All of the above. |
| The broker’s license is required to show a. name of business b. address of business c. name of agents d. Both A and B | d. Both A and B |
| Each sales or associate broker’s license is required to show a. the name of the licensee b. the name of the broker or company name c. address of licensee d. Both A and B | d. Both A and B |
| Upon termination of the association of an associate broker or salesperson with his sponsoring broker, the broker shall return the license to the Commission within a. 24 hours b. 3 days c. 5 days d. 10 days | c. 5 days |
| When the association of the qualifying broker for a corporation, limited liability company, or partnership is terminated, his license must be returned to the Commission within a. 72 hours b. 3 days c. 5 days d. 10 days | c. 5 days |
| A real estate license is issued for a period of b. two years a. one calendar year c. three years d. five years | a. one calendar year |
| The last date to renew your license delinquently is: a. December 31 b. February 15 c. June 30 d. March 31 | d. March 31 |
| If a RE broker conducts business from more than 1 place of business, which is true? a. He is required to have one license for his main office only b. He is required to have a branch office license for each place of business c. No license is required | b. He is required to have a branch office license for each place of business. |
| Who can receive a commission payment from a broker? a. a licensed agent. b. The seller c. The buyer d. An unlicensed friend of the seller or buyer who refers them to the broker. | a. a licensed agent. |
| Who can a salesperson receive a commission payment from? a. the seller b. the buyer c. his or her sponsoring broker d. the listing broker | c. his or her sponsoring broker |
| An associate broker or salesperson can assign payment of his or her commission to an unlicensed corporation or limited liability company of which he or she is the sole officer, director or shareholder. a. True b. False | a. True |
| What happens to the licenses of salespersons or associate brokers when their sponsoring broker’s license is suspended or revoked? b.Their licenses are also suspended or revoked c.The broker has 72 hours to return all licenses to the Commission | c. The sponsoring broker has 72 hours to return all licenses to the Commission. |
| How long does the agent have to provide his principle with a copy of a document which the principle has signed? a. It should be done immediately. b. Within 3 days. c. Within 5 days. d. Within one week. | a. It should be done immediately. |
| Persons signing any document in a REtransaction which pertains to more than one party should be provided with a copy of the completed document within _____ days after the final signature is affixed to the document. a. 2 b. 3 c. 5 | c. 5 |
| Written agreements for the sale or management of real estate are required to specify a definite expiration date. a. True b. False | How long are brokers required to retain records of real estate transactions? a. one year b. two years c. three years d. five years |
| Any licensee who is the custodian of any client funds must report the institution of bankruptcy proceedings to the Commission within a. 3 days b. 5 days c. 7 days d. 10 days | d. 10 days |
| In the event of the death of the sponsoring broker, who may complete any pending RE activities of the firm? b. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission | b. Any associate broker or salesperson who was sponsored by the deceased broker, upon written approval by the Commission. |
| The Commission will not become involved in disputes concerning a. disbursement of escrow funds b. inspection of records of a brokerage firm. c. Disputes between licensees regarding payment of commissions. d. Misuse of escrow fu | c. Disputes between licensees regarding payment of commissions. |
| When any charges are made against a licensee by the Commission, the licensee must be notified at least _____ days prior to the date of hearing. a. 10 b. 20 c. 30 d. 60 | b. 20 |
| Which is NOT cause for censure, suspension, or revocation of a license? a.representing to a lender an amount greater than actual sale price d. having been convicted of a misdemeanor | d. having been convicted of a misdemeanor. |
| A licensee must be notified of charges made against him by the Commission by what means? a. in person b. by registered mail c. by certified mail d. Any of the above. | d. Any of the above. |
| If a licensee disagrees with the final decision of the Commission concerning charges made against him, he may request a review of the findings by the a. Board of Realtors b. 19th Judicial District Court d. There is no option for review. | b. Nineteenth Judicial District Court |
| The maximum penalty for violations of the License Law is a. $2000 and 5 years imprisonment. b. $4000 and 4 years imprisonment c. $5000 and 5 years imprisonment d. $10,000 and 10 years imprisonment | a. $2000 and 5 years imprisonment. |
| The purpose of the RE Recovery Fund is a. provide funds for RE education for licensees c. reimburse any person who has suffered monetary damages because of acts committed by a licensee in a RE transaction | c. reimburse any person who has suffered monetary damages because of acts committed by a licensee in a real estate transaction. |
| What is the source of funds for the Recovery Fund? a. license fees b. fees from penalties c. the state d. sale of real estate publications | a. license fees |
| Who is eligible to receive payment from the Recovery Fund? c. Any claimant who has received final judgment in court against a licensee in a RE transaction b. only brokers a. only licensees d. Any person who is not an employee of the st | c. Any claimant who has received final judgment in court against a licensee in a real estate transaction. |
| What is the maximum amount that any claimant may receive from the Recovery Fund? a. $10,000 b. $20,000 c. $30,000 d. $50,000 | b. $20,000 |
| What is the maximum amount of payments that can be made for claims arising out of the same transaction regardless of the number of claimants? a. $20,000 b. $30,000 c. $50,000 d. There is no limit. | a. $20,000 |
| What is the maximum amount of payments that can be made for claims based upon judgments against any one licensee? a. $20,000 b. $30,000 c. $50,000 d. There is not limit. | c. $50,000 |
| A right which grants one landowner access across another's land is called: | predial servitude |
| Mr. Smith sold a right of way to Illinois Central to build a railroad across his property. This is known as a | a license |
| The type of conveyance that holds the greatest guarantee for the buyer is a | sale with warranty |
| The type of conveyance that holds the greatest guarantee for the buyer is a a. sale without warranty b. quitclaim c. sale with warranty d. bond for deed | c. sale with warranty |
| When a husband dies leaving a wife and children, what right does the wife have in the husband's portion of the community property? a. abusus b. usufruct c. naked ownership d. joint tenancy | b. usufruct |
| Who are considered “forced heirs” in Louisiana? a. the decedant's children b. the decedant's wife c. the decedant's parents d. the decedant's siblings | a. the decedant's children |
| The person who holds the right of abusus is called the a. naked owner b. usufructuary c. wife d. testatrix | a. naked owner |
| In Louisiana, a valid contract must contain all of the following EXCEPT a. cause b. signature of grantor c. consideration d. legal description | c. consideration |
| A person who inherits something from a person who died intestate is called a | an a. legatee b. heir c. successor d. beneficiary |
| If a man dies testate leaving a wife and one child, what is the disposable portion of his estate? a. One fourth b. One half c. Three fourths d. All | c. Three fourths |
| A person named in a will to carry out the terms of the will is called a | an a. executor b. testator c. administrator d. legatee |
| Unharvested crops belonging to someone other than the owner of the land would be a. movables by anticipation b. separate immovables c. real property d. incorporeal possessions | a. movables by anticipation |
| Bond for Deed is used in the sale of a. movables b. immovables c. movables and immovables d. chattel | b. immovables |
| A vendor's privilege usually covers the: a. sale price b. liens c. judgments d. mortgage balance | d. mortgage balance |
| In Louisiana, a bilateral contract is known as a. co-lateral b. co-ownership c. synallagmatic d. non-transferable | c. synallagmatic |
| An owner financed loan can not have an interest rate in excess of a. 12% b. 14% c. 17% d. 21% | c. 17% |
| In Louisiana, joint tenancy is a. illegal b. the same as co-ownership c. the same as community property d. legal, but rarely used | illegal |
| An arpent is b. about 5 | 6 of an acre a. about one mile c. about equal to a section d. about equal to a township |
| Ownership along navigable waterways is a. 15 feet from the bank b. to the middle of the waterway c. to the banks of the waterway d. negotiable | c. to the banks of the waterway |
| The renting of predial and country estates is known as a a. farm lease b. non-farm lease c. country lease d. rural lease | a. farm lease |
| A shared driveway with one property in front and one behind it would most likely be a a. personal servitude b. predial servitude c. party servitude d. community property | b. predial servitude |
| If a person dies without a will, the disbursement of his property would be determined by a. intestate succession b. testate succession c. probate d. devise | a. intestate succession |
| The penalty for usury is a. forfeiture of the excess interest b. forfeiture of the entire loan amount c. forfeiture of the entire interest d. 2 years in prison | c. forfeiture of the entire interest |
| The amount of exemption from “general creditors” in the forced sale of real estate is a. $1500 b. $5,000 c. $7,500 d. $25,000 | d. $25,000 |
| A donation made during the lifetime of the donor is known as a a. donation mortis cause b. donation inter vivos c. onerous donation d. benefit | b. donation inter vivos |
| An example of statutory dedication is a. dedicating a statue to the community b. dedicating a statute in the name of a person c. dedicating a piece of land for government use d. dedicating the streets in a subdivision to the city | d. dedicating the streets in a subdivision to the city |
| Ownership of land along the seashore is a. 20 feet from the water b. to the point of high tide c. to the water d. 20 feet into the water | b. to the point of high tide |
| What type of lien would take priority over a first mortgage? a. tax lien b. mechanic c. both d. neither | both |
| 1. The type of conveyance that holds the greatest guarantee for the buyer is a: a. sale without warranty b. quitclaim c. sale with warranty d. bond for deed | c. sale with warranty |
| What is the purpose of the Real Estate Research and Education Fund? | a. To promote the advancement and more efficient administration of the real estate industry and thereby serve to protect the public. |
| Licensees are required by the Commission to have: a. homeowner b. errors and omissions insurance c. flood insurance d. broker | b. errors and omissions insurance |
| When should an agent present the agency disclosure pamphlet to a party to a real estate transaction? a. at the first face to face meeting b. at the closing c. any time before the closing d. at the time that the contract is sign | a. at the first face to face meeting |
| Which of the following is considered a material fact or defect requiring disclosure to potential buyers? a. a leaky roof b. an occupant of the property has AIDS c. a person was murdered on the property d. the property is haunte | a. a leaky roof |
| Which of the following is required in every written lease, rental agreement, or contract for sale? a. marital status of lessee b. street address of seller or lessor c. notice of statewide database of location of registered sex offender | c. notice of statewide database of location of registered sex offenders |
| A person who is not represented by the licensee but for whom the licensee is performing ministerial acts is the a. client b. principle c. buyer d. customer | d. customer |
| When a broker appoints one agent from his company to represent a client, that agent is known as the a. selling agent b. designated agent c. co-op agent d. appointed agent | b. designated agent |
| An agency relationship in which the licensee is representing both the seller and the buyer in the same transaction is a. Sub-agency b. Single agency c. Dual agency d. Illegal | c. Dual agency |
| Acts that a licensee may perform for a person that are informative only in nature are called a. ministerial acts b. informational acts c. legislative acts d. representative acts | a. ministerial acts |
| Ministerial acts could include all EXCEPT b. setting an appointment to view a property c. responding to phone inquiries concerning brokerage fees d. suggesting an offering price for a property | d. suggesting an offering price for a property |
| When there is no written agency agreement, who does the licensee represent in a transaction? a. the seller b. the buyer c. both d. the one he is with | d. the one he is with |
| Which is true: a licensee who unknowingly gives false information to a client that was given to the licensee by the customer? a. This is a violation of License Law. b. This is not a violation of License Law. d. This is fraudulent misrepresentation. | b. This is not a violation of License Law. |
| When is agency disclosure NOT required? b. with regard to dual agency transactions c. with regard to single agency transactions d. with regard to leases of three years or less when no sale of the subject property is anticipated. | d. with regard to leases of three years or less when no sale of the subject property is anticipated. |
| What duties are owed to the customer by the licensee? a. confidentiality b. honesty and fairness c. obedience d. all of the above | b. honesty and fairness |
| The payment or promise of payment of compensation to a broker determines whether an agency relationship has been created. True or False | False |
| A licensee may act as a dual agent a. when it is in the best interest of the parties involved b. only with the informed written consent of all clients. c. whenever the agent is the listing agent. d. when the agent is the designate | b. only with the informed written consent of all clients. |
| When acting as a dual agent, what form must be signed by the clients? a. agency disclosure pamphlet b. buyer representation agreement c. dual agency disclosure form d. caveat emptor form | c. dual agency disclosure form |
| Which CAN NOT be disclosed by the licensee when acting as a dual agent? a. material defects b. Confidential information about the seller c. Confidential information about the buyer d. Confidential information about buyer or sel | d. Confidential information about buyer or seller |
| How is sub-agency created in Louisiana? a. by written agreement b. by membership in MLS c. by acting as a co-op agent d. Both B and C | a. by written agreement |
| Is a client considered to be liable for acts or omissions of his real estate agent? a. yes b. no | NO |
| An initial license application must a. be notarized b. be accompanied by proof of completion of the required education hours. c. Be accompanied by the required fees. d. All of the above. | d. All of the above. |
| Upon passing the licensing examination, the applicant must submit to the Commission a statement of sponsorship signed by a licensed real estate broker acknowledging that the broker will serve as the applicant's sponsoring broker within | c. 90 days |
| Pre-licensing education courses must be completed within ________ of the date of initial application for a real estate salesperson or broker license. a. 6 months b. one year c. three years d. five years | 5 YEARS |
| If an applicant for licensing does not take the state exam within 90 days after turning in his license application to the Commission what will happen? | a. The applicant must reapply to the Commission. |
| Any applicant who takes and fails to pass the initial licensing exam must a. apply to the Commission to retake the exam and pay a processing fee. c. Can retake the exam the next day. d. go back to real estate school. | a. apply to the Commission to retake the exam and pay a processing fee. |
| If an applicant fails to pass both portions of the state exam within a period of one year from the initial examination date the applicant must wait how long before applying to retake the exam. | b. 6 months |
| Who is responsible for the timely submission of renewal applications? a. The broker b. The licensee | b. The licensee |
| A salesperson or associate broker may not be issued a license until the license of his or her sponsoring broker has been renewed. a. True b. False | tRUE |
| A licensee may not renew his license on active status unless he or she has completed ____ hours of continuing education during the immediately preceding license period. a. 4 b. 8 c. 10 d. 12 | d. 12 |
| Licenses may be renewed delinquently for a period of ________ after December 31st. a. 3 months b. 6 months c. 9 months d. 12 months | a. 3 months |
| A licensed real estate broker who is exclusively affiliated with a sponsoring broker is a | an a. affiliate broker b. salesperson c. associate broker d. can not be a broker |
| Who may have a sales escrow account, rental trust account or security deposit trust account? a. salespersons b. associate brokers c. sponsoring brokers d. associate and sponsoring brokers | c. sponsoring brokers |
| When a salesperson or associate broker transfers his license or terminates his relationship with the sponsoring broker, the sponsoring broker has how many days to return the license of the salesperson or associate broker to the Commission? | 5 DAYS |
| A transfer fee will not be charged when the salesperson or associate broker applies for transfer within 60 days of a. the death of the spons. brok. b. suspension or revocation of the spons. brok. c. transfer of the spons. brok. d. all of the above | d. all of the above |
| When a licensed agency is purchased by another licensed agency, the sponsoring broker of the acquiring agency must notify the Commission within a. 2 business days b. 3 business days c. 5 business days d. 7 business days | a. 2 business days |
| Symbols or trademarks used in connection with any license, registration or certificate must be a. certified by the RE Com.b. registered with the Secretary of State c. registered with the National Registry d. certified by the copyright off | b. registered with the Secretary of State |
| Which is required in any advertisement involving the sale, lease or management of real estate by any licensee? a. name and telephone number of broker b. name of salesperson c. name and address of broker d. address of listed pro | a. name and telephone number of broker |
| All printed advertisements for the sale or lease of residential RE MUST indicate a. the license # of broker b. the name of the salesperson c. the address of the brokerage firm d. the month and year the advertisement was printed or publi | d. the month and year the advertisement was printed or published |
| Any licensee who buys property or sells his own property must disclose a. the name of his broker b. his license number c. that he is a licensed agent d. all of the above | c. that he is a licensed agent |
| A broker advertising on an internet site or e-mail must include on each page a. broker's name b. city, state and country in which the broker's main office is c. The regulatory jurisdictions in which the broker holds a RE brokerage license d. All | d. All of the above. |
| An associate broker or salesperson advertising on an internet site or e-mail must include on each page a.name and name of sponsoring broker b.city, state and country in which the sponsoring broker c.regulatory jurisdi.where he holds a RE licensed.all | d. all of the above |
| All monies received by a broker in connection with the sale of real estate must be deposited in a. a sales escrow checking account b. the company c. a security deposit trust checking account d. any checking account | a. a sales escrow checking account |
| All monies collected as rental payments from or on behalf of clients shall be deposited in a. a rental trust checking account b. a security deposit trust checking account c. a management account d. an operating account | a. a rental trust checking account |
| When requested by the Commission, a broker must submit an account affidavit attesting to the existence, location and account number of any escrow accounts within how many days of the request? a. 3 b. 5 c. 10 d. 20 | b. 5 |
| Non-resident brokers must maintain escrow accounts in a. Louisiana b. The state in which they reside c. both d. Either | d. Either |
| d. Either Can a broker open additional escrow account to accommodate business transacted out of branch offices? a. Yes b. No | a. Yes |
| For which of the following reasons can money in an escrow account be withdrawn? a. to return the funds to the buyer at the time of closing b. upon mutual written consent of all parties c. upon court order d. all of the above | d. all of the above |
| When does a broker have to notify the Commission of the closing of an escrow account? a. 10 days before closing the account b. 10 days after closing the account c. 5 days before closing the account d. 5 days after closing the a | b. 10 days after closing the account |
| If a broker’s license is terminated, what happens to his escrow accounts a. They are taken over by the Comm. b. They must be maintained until all monies are disbursed c. They must be closed. d. They must be turned over to another bro | b. They must be maintained until all monies are disbursed |
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