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Real Estate

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Question
Answer
An agent has a fiduciary relationship with the a. client or principle b. customer c. agent d. subagent   show
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show a. special agency  
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show a. implied agency  
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An agency relationship based on a formal agreement between the parties, either written or verbal, is a. implied agency b. express agency   show
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show d. knowledge  
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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   show
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show agency coupled with an interest  
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show b. undisclosed dual agency  
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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   show
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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   show
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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   show
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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   show
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The intentional misrepresentation of a material fact is: Choose one answer. a. fraud b. negligent misrepresentation c. negligent omission d. puffing   show
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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   show
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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   show
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show . written or spoken  
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show d. an occupant of the house died of AIDS  
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show d. all of the above  
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In the other 49 states a contract must be accompanied by a. good faith. b. intent. c. cause d. consideration.   show
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show b. unilateral contract.  
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show an a. executory contract. b. executed contract. c. voidable contract. d. unenforceable contract.  
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show b. void.  
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show a. null and relatively null.  
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show d. the date.  
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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.   show
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show c. mistake of fact.  
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show a. novation.  
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show c. rescision.  
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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   show
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Another term for earnest money is a. specific performance. b. liquidated damages. c. deposit. d. reserves.   show
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show a. net listing.  
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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.   show
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a. specific performance.   show
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show c. when the buyer is notified that the seller has accepted the offer.  
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show a. a new offer. b. a rejection. c. conditional acceptance. d. all of the above.  
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show c. both a and b.  
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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   show
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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   show
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show a. The Civil Rights Act of 1866  
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show b. sex  
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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   show
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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.   show
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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.   show
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show d. redlining.  
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show d. all of the above.  
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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   show
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show b. Equal Credit Opportunity Act  
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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   show
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What is the penalty for a first offense fair housing violation? a. $2000 b. $5000 c. $11,000 d. $25,000   show
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show c. $27,500  
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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   show
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show d. all of the above  
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The term "situs" refers to a. commercial property. b. location. c. how much property is available. d. Economic value.   show
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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   show
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show a. scarcity, modification, fixity of investment, and situs.  
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show c. Yes, unless specifically retained in the contract.  
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Water rights that apply to land adjacent to running water are called: a. Riparian. b. Littoral. c. Percolating. d. None of the above.   show
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show b. Littoral.  
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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.   show
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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.   show
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show b. improvements.  
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show a. Fixture.  
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show d. All of the above.  
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show c. Severance  
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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.   show
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show  
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b. Trade fixtures   show
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show b. Emblements  
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The rights associated with ownership of real property are called a. the "Bundle of Rights" b. Separable Rights. c. Owners' Rights   show
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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   show
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show b. non-freehold estate  
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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   show
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show c. Both A and B  
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show a. condition subsequent  
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show c. life estate  
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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   show
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Ownership by one person is known as ownership in a. severance b. severalty c. indivision d. common   show
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show a. co-ownership  
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show a. tenancy in common.  
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show b. joint tenancy  
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show b. a husband and wife  
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show c. community property  
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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   show
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show b. condominium  
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show d. Mixed Unit Developments (MUD's)  
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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   show
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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   show
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show d. Corporation  
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Which of the following is NOT a type of voluntary transfer? a. public grant b. private grant c. public dedication d. eminent domain   show
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show a. grantor  
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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   show
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show b. deed  
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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   show
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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   show
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In which type of deed does the grantor guarantee the title only during the time that he actually owned the property?   show
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show c. quitclaim deed  
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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   show
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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   show
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show b. vesting clause  
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show a. granting clause  
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Which of the following are types of Involuntary Transfer? a. Eminent Domain b. Escheat c. Adverse Possession d. All of the above   show
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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   show
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show c. partition suit  
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show d. adverse possession  
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show a. escheat  
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show a. statutory will  
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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.   show
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show b. holographic will  
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show c. probate  
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show d. executor  
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show b. accession  
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show a. alluvion  
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show c. reliction  
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show an a. constructive notice b. acknowledgment c. verification d. affirmation  
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First hand information regarding a property is known as a. Actual notice b. Constructive notice c. Verification d. Acknowledgment   show
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A brief summary of all recorded instruments which have affected the title to a property is called a   show
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A continuous linking of owners stretching back to the first owner or the original land grant is called a   show
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A legal action in which the court seeks to resolve any possible clouds on the title is called a   show
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show a. mortgagee's policy  
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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   show
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show d. constructive notice  
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show c. police powers  
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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   show
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show a. non-conforming use  
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Areas which separate areas of diverse zoning classifications are called a. variances b. protective zoning c. downzoning d. buffer zones   show
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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   show
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show a. lien  
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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   show
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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   show
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show d. $250  
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A claim or burden on a property which limits, restricts or otherwise affects one's interest or use of that property is called a   show
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Which of the following is   show
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show a. lis pendens  
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show b. Involuntary specific lien  
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The prority of liens in regards to who is paid 1st in a foreclosure is??   show
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An agreement that changes the priority of liens is a   show
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There are two types of deed restrictions. They are restrictive covenants and a. restrictive conditions b. restrictive encumbrances c. restrictive measures d. restrictive codes   show
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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   show
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The right to use a portion of the land of another for a specific purpose is a   show
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show an a. easement by necessity b. easement in gross c. easement appurtenant d. easement in general  
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show an a. easement appurtenant b. easement in gross c. easement by necessity d. right of use  
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The person benefiting from an easement appurtenant is called the a. dominant estate b. servient estate   show
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show d. all of the above  
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show a. It is terminated.  
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show an a. easement b. encroachment c. license d. servitude  
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show an: a. license b. encroachment c. encumbrance d. easement  
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show d. All of the above  
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show d. street address  
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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   show
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show a. north-south  
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The distance between township lines is a. 1 mile b. 6 miles c. 16 miles d. 36 miles   show
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show c. 36 square miles  
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Townships are created by a. baselines and meridians b. range lines and township lines c. section lines d. arpents   show
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How many sections are in a township? a. 10 b. 25 c. 36 d. 48   show
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show c. correction line  
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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   show
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show c. 43,560  
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show d. both A and B  
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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   show
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Every fourth township line serves as a a. datum point b. bench mark c. correction line d. setback   show
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show b. lot, block and tract  
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How many square feet are there in an acre? a. 5,280 b. 26,000 c. 43,560 d. 45,360   show
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show d. both A and B  
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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   show
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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   show
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show c. general agency  
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show a. to produce income and maintain the value of the property.  
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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   show
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show a. lessor, lessee  
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show c. reversionary  
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show b. right to sequester  
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A leasehold is what type of estate? a. freehold b. fee simple c. non-freehold d. none   show
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show a. tenancy for years  
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show b. periodic tenancy  
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show c. tenancy at will  
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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   show
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show d. all of the above  
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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   show
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show c. percentage lease  
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show an a. gross lease b. percentage lease c. graduated lease d. index lease  
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show b. ground lease  
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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   show
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show tenant in a cooperative is a a. proprietary lease b. net lease c. ground lease d. percentage lease  
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show 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.  
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show a. actual eviction  
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show b. constructive eviction  
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show a. equitable right of redemption  
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show c. promissory note  
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show b. collateral  
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show a. the lender  
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show c. lien against the property.  
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Under the Lien Theory, title is said to ___________________ to the lender. a. default b. hypothecate c. manifest d. lien   show
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When the debt is paid, the mortgage is said to be a. dead b. redeemed c. hypothecated d. defeated   show
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A security instrument that secures for the repayment of a debt is a a. mortgage b. trust deed c. A or B   show
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The borrower, or person making the loan is the a. mortgagor b. mortgagee   show
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show b. mortgagee  
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If a promissory note is not secured by a mortgage, it is called a   show
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show an a. defeasance clause b. acceleration clause c. prepayment clause d. lock-in clause  
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A clause in a promissory note which provides for a penalty if the debt is paid off early is called a   show
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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   show
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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   show
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show b. warranty of title clause  
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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   show
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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   show
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A covenant is the same as a a. promise b. clause c. lien d. mortgage   show
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show a. principal, interest, taxes, and insurance  
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show an: a. acceleration clause b. alienation clause c. subordination clause d. prepayment clause  
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show c. subordination clause  
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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   show
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The Trust Deed differs from a mortgage in that it involves ____________________ parties. a. two b. three c. four d. unlimited   show
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In a Trust Deed, the borrower is known as the a. trustor b. trustee c. beneficiary d. buyer   show
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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   show
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The instrument which transfers the title back to the original owner once the trust deed is paid off is called a   show
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show d. power of sale clause  
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show d. All of the above.  
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show d. Both A and B  
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show c. He may have a smaller cash output to obtain the loan.  
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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   show
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show d. All of the above.  
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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   show
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show a. deficiency judgment  
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show d. All of the above.  
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show d. all of the above  
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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   show
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show b. statutory redemption  
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The quickest process for foreclosure is a. ordinary process b. executory process   show
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The two general categories of loans are a. conventional and government backed b. conventional and general c. general and specific d. lender and seller   show
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show b. underwriting  
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show a. loan to value ratio  
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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%   show
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show a. private mortgage insurance  
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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   show
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show d. All of the above.  
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show a. True  
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show b. FHA loans can NOT be sold on the secondary market.  
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show a. guaranteed.  
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show c. entitlement  
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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   show
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show a. $400  
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show b. $72.24  
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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   show
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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.   show
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show c. 1600  
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show b. blanket mortgage  
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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   show
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show d. wrap-around mortgage  
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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   show
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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   show
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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   show
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show c. $382.50 . Multiply the number of thousands of the loan amount by the amortization factor. 50 X 7.65 = $382.50.  
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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   show
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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   show
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show a. reverse mortgage  
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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   show
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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.   show
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show a. Mortgage brokers  
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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.   show
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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.   show
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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   show
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Business and commercial loans are not covered by the Truth in Lending Law. a. True b. False   show
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RESPA requires the lender to disclose a. interest rates b. number of payments c. closing costs d. amount of monthly payment   show
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show d. All of the above  
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show c. homeowners insurance  
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show d. all of the above  
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The profit realized from the sale or exchange of an asset is a. capital gain b. deferred gain c. real gain d. preferred gain   show
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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   show
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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   show
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show b. 108.9 feet  
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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   show
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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   show
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show a. Foreign Investment and Real Property Tax Act  
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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   show
🗑
show b. 1031 tax-deferred exchange  
🗑
show 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   show
🗑
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   show
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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   show
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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   show
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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   show
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show b. 108.9 feet  
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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   show
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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   show
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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   show
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show d. $37,500  
🗑
show a. $44,680  
🗑
show a. $99,200  
🗑
show b. $75,000  
🗑
show 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   show
🗑
show c. $500  
🗑
show b. $40,000  
🗑
show b. $864  
🗑
show 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   show
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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%   show
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show 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   show
🗑
show b. $100,000  
🗑
show 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   show
🗑
show b. positive situs  
🗑
show c. competitive market analysis or CMA  
🗑
show 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   show
🗑
show 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   show
🗑
show a. $99,200  
🗑
show b. $75,000  
🗑
show 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   show
🗑
show 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   show
🗑
show 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   show
🗑
show b. 7.0%  
🗑
show b. $100,000  
🗑
show c. 12.26  
🗑
show a. Equal credit opportunity  
🗑
show b. The state  
🗑
show b. contribution  
🗑
show 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   show
🗑
show 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   show
🗑
show 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   show
🗑
show 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   show
🗑
When two or more lots are combined to form one larger parcel, this is called: a. assemblage b. confusion c. plottage increment d. reconciliation   show
🗑
show 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   show
🗑
show c. checksheet  
🗑
show 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   show
🗑
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   show
🗑
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   show
🗑
show 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   show
🗑
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   show
🗑
show 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   show
🗑
show a. True  
🗑
show 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   show
🗑
show 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   show
🗑
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   show
🗑
show 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  
🗑
show a. substitution  
🗑
show 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. +$2,000 d. -$   show
🗑
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   show
🗑
The Income Approach is based on the principle of a. substitution b. anticipation c. change d. surplus productivity   show
🗑
show 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   show
🗑
show c. $500,000  
🗑
show d. $1,440,000  
🗑
show b. associate broker  
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show 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   show
🗑
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   show
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show b. sponsoring broker  
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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   show
🗑
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   show
🗑
show b. buyer's agent  
🗑
The Louisiana Real Estate Commission consists of how many members? a. 3 b. 6 c. 9 d. 12   show
🗑
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   show
🗑
The Louisiana Real Estate Commission is domiciled in a. New Orleans b. Shreveport c. Baton Rouge d. Lake Charles   show
🗑
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   show
🗑
show d. All of the above.  
🗑
show d. All of the above.  
🗑
show d. 12  
🗑
show b. The Fair Housing Act  
🗑
show c. Four years  
🗑
show 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   show
🗑
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   show
🗑
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   show
🗑
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   show
🗑
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   show
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show d. Both A and B  
🗑
show d. Both A and B  
🗑
show c. 5 days  
🗑
show c. 5 days  
🗑
show a. one calendar year  
🗑
show 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   show
🗑
show a. a licensed agent.  
🗑
show 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   show
🗑
show  
🗑
show c. The sponsoring broker has 72 hours to return all licenses to the Commission.  
🗑
show a. It should be done immediately.  
🗑
show c. 5  
🗑
show How long are brokers required to retain records of real estate transactions? a. one year b. two years c. three years d. five years  
🗑
show  
🗑
show d. 10 days  
🗑
show 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   show
🗑
show 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   show
🗑
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.   show
🗑
show 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   show
🗑
show c. reimburse any person who has suffered monetary damages because of acts committed by a licensee in a real estate transaction.  
🗑
show 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   show
🗑
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   show
🗑
show 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.   show
🗑
A right which grants one landowner access across another's land is called:   show
🗑
show a license  
🗑
show sale with warranty  
🗑
show 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   show
🗑
show a. the decedant's children  
🗑
show 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   show
🗑
show 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   show
🗑
show 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   show
🗑
Bond for Deed is used in the sale of a. movables b. immovables c. movables and immovables d. chattel   show
🗑
A vendor's privilege usually covers the: a. sale price b. liens c. judgments d. mortgage balance   show
🗑
show c. synallagmatic  
🗑
An owner financed loan can not have an interest rate in excess of a. 12% b. 14% c. 17% d. 21%   show
🗑
In Louisiana, joint tenancy is a. illegal b. the same as co-ownership c. the same as community property d. legal, but rarely used   show
🗑
An arpent is b. about 5   show
🗑
show c. to the banks of the waterway  
🗑
show a. farm lease  
🗑
show b. predial servitude  
🗑
show a. intestate succession  
🗑
show c. forfeiture of the entire interest  
🗑
show 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   show
🗑
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   show
🗑
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   show
🗑
What type of lien would take priority over a first mortgage? a. tax lien b. mechanic c. both d. neither   show
🗑
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   show
🗑
show a. To promote the advancement and more efficient administration of the real estate industry and thereby serve to protect the public.  
🗑
show  
🗑
show b. errors and omissions insurance  
🗑
show a. at the first face to face meeting  
🗑
show a. a leaky roof  
🗑
show 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   show
🗑
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   show
🗑
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   show
🗑
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   show
🗑
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   show
🗑
show 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.   show
🗑
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.   show
🗑
What duties are owed to the customer by the licensee? a. confidentiality b. honesty and fairness c. obedience d. all of the above   show
🗑
The payment or promise of payment of compensation to a broker determines whether an agency relationship has been created. True or False   show
🗑
show 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   show
🗑
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   show
🗑
show a. by written agreement  
🗑
Is a client considered to be liable for acts or omissions of his real estate agent? a. yes b. no   show
🗑
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.   show
🗑
show c. 90 days  
🗑
show 5 YEARS  
🗑
show a. The applicant must reapply to the Commission.  
🗑
show a. apply to the Commission to retake the exam and pay a processing fee.  
🗑
show b. 6 months  
🗑
show b. The licensee  
🗑
show tRUE  
🗑
show d. 12  
🗑
show a. 3 months  
🗑
A licensed real estate broker who is exclusively affiliated with a sponsoring broker is a   show
🗑
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   show
🗑
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?   show
🗑
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   show
🗑
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   show
🗑
  show
🗑
  show
🗑
show b. registered with the Secretary of State  
🗑
  show
🗑
show a. name and telephone number of broker  
🗑
show 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   show
🗑
show d. All of the above.  
🗑
show 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   show
🗑
show 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   show
🗑
show d. Either  
🗑
show 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   show
🗑
show b. 10 days after closing the account  
🗑
show b. They must be maintained until all monies are disbursed  
🗑
show  
🗑


   

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