General Practice Test
1 / 50
If a broker is representing a buyer, which of these fiduciary duties would they owe the buyer?
2 / 50
When evaluating which of these properties would an appraiser be most likely to use the cost approach:
3 / 50
What does "ad valorem" mean?
4 / 50
The square footage of a three-story building that is 70'x63' is:
5 / 50
Samantha is meeting with a client this evening to interview as a potential listing agent for their property. She shows them a report she has prepared that contains recent sales, listings and expired properties from her local MLS that are in their neighborhood. What is Samantha showing her potential clients?
6 / 50
Sally is getting a mortgage loan which includes a ___________ clause, meaning that she pledges her house as collateral for the loan but is still able to live in the home while paying on the loan.
7 / 50
A broker's commission is 7% of the first $50,000 of the sales price and 6 % of the amount over $50,000. What is the total selling price is the broker receives a total commission of $12,000?
8 / 50
Appraiser Sandra has been asked to determine the highest and best use of a piece of property. What does this mean?
9 / 50
Thomas sold his home to a buyer who was not related to him and that he had never met previous to the transaction. The buyer was ready, willing and able to act and both Thomas and this buyer were fully informed and under no duress. What is this called?
10 / 50
A lease that provides the tenant with the right, but not the obligation, to purchase the leased property at a specified price within a specified period of time is a
11 / 50
A lease in which the amount of the rent is tied to some common index indicator such as the Consumer Price Index or the Wholesale Price Index. As the agreed upon index increases, the rent goes up by the same percent of change. This is known as a/an:
12 / 50
A deed used to transfer title states that the conveyance will remain in effect "so long as the property is not used for the sale of firearms." What kind of estate would the owner receive?
13 / 50
Kim has the power of attorney to handle all of her grandparents' financial deals, as well as sell their real estate. She is a(n)
14 / 50
A parcel of land described as NW 1/4 of the SW 1/4 of the SE 1/4 of Section 10 sells for $10,000 an acre. What is the sales price of this property?
15 / 50
Ben has borrowed $80,000 to purchase a loan from his lender. Ben is the:
16 / 50
A mill is one one-thousandth of a dollar, and in property taxes, 1 mill equals _____ per each $1,000.
17 / 50
When one party takes over responsibility for the loan of another party and the terms of the loan or note remain unchanged. (Usually lender approval is needed and a release is needed or the original party remains secondarily responsible for the loan.)
18 / 50
The process of reducing the loan principal over the life of the loan:
19 / 50
When would Sam the appraiser most likely use the market data approach
20 / 50
Properties in the Happy Acres subdivision have to be built at least 25 feet from the road. This is known as a/an:
21 / 50
An appraisal is
22 / 50
The net monthly income of a 10-unit apartment building is $9,600. The capitalization rate the buyer uses is 6%. What is the value of the building?
23 / 50
Which of the following would a buyer most prefer to receive:
Why would a buyer prefer the general warranty deed rather than a special warranty deed? In the general warranty deed the grantor (person giving the deed) is warranting the title against defects both during the time he owned it AND before. In a special warranty deed (aka limited warranty deed) he only warrants the title during the time of his ownership, not before.
24 / 50
A violation of an obligation, duty or law is known as a:
25 / 50
_____________ is calculated by dividing the amount borrowed by the appraised value of the property, expressed as a percentage.
26 / 50
In 1968, the U.S. Supreme Court ruled that racial discrimination in the sale of any property is prohibited, without exceptions. What was this case called?
27 / 50
You would like to own your real estate in a way in which you could use it the most freely. You are looking for a ____________________ estate
28 / 50
Which of these would be the best example of puffing?
29 / 50
The shoreline of Katy's property has been gradually increasing as a result of the deposit of alluvium. What is this known as?
30 / 50
It is generally understood that land has what three fundamental characteristics
31 / 50
Casey's shoreline is getting larger. This is due to the addition of soil that has eroded from other shorelines upstream. This is called:
32 / 50
A seller prefers to give a deed that leaves him exposed to the least amount of liability. Which would he prefer to give?
33 / 50
The appraiser locates three recently sold properties for his report. The subject is a two bedroom/1 bath home however the first comp is a three bedroom/1 bath home:
34 / 50
Adam completes an appraisal on a subject property by capitalizing the estimated future income of the property. What approach did Adam use?
35 / 50
Logan signed an exclusive right-to-sell listing for his residence with Yellow River Realty for a list price of $230,000. During the listing period, a forest fire broke out, burning the home to the ground. Under these circumstances:
36 / 50
The city of Southville has implemented a master plan as part of their city planning. It will be implemented through all of the following except:
37 / 50
Janet wants to reach as many potential clients as possible in a short period of time, so she starts a robocalling operation to reach potential sellers in her market area. Telemarketing robocalls:
38 / 50
Jane owns a property that has been vacant for many years. The roof has been leaking and is now starting to cave in. The property also has extensive termite damage. It is likely suffering from
39 / 50
John's contract with Gregory states that if any term of the contract is held to be ineffective or invalid, the remaining contract terms should nevertheless be given full force and effect. This contract term is called a:
40 / 50
______ loans are federally-backed mortgages designed for homeowners who may have lower than average credit scores.
41 / 50
Phoebe is told by her listing broker that there is a law that requires owners of residential property to execute a lead-based paint disclosure. What is the law called?
42 / 50
In their purchase agreement, Jack and Sue have agreed that if Sue does not close the transaction as agreed in the contract, Jack will get to keep her earnest money. What is this sort of agreement called?
43 / 50
Kelly's property runs to the river. Her right to use the water is known as
44 / 50
Every year, Tim pays taxes based upon a value that equals 35 percent of the actual value of his home. This is called the _________ value.
45 / 50
Ashley is buying a fully furnished condo in Orlando. She takes out a mortgage that includes both the real and personal property. This type of mortgage is known as a/an:
46 / 50
Eva received $226,000 from the sale of her house. If she paid $10,500 in closing costs in addition to a 5.5% commission, the gross sales price of her house was:
47 / 50
Which of the following is true regarding FHA insured mortgages?
48 / 50
Mechanics lien are ___________ and ___________ liens.
49 / 50
In the context of a real estate appraisal, what is depreciation?
50 / 50
A property has a net income of $3,000 per month. Using a cap rate of 6 %, what would the value be?
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