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2025 - 2026 REAL ESTATE FINAL EXAM| CE/RE FINAL
EXAM |ACTUAL 340 Qs&As|ALREADY GRADED A+
Shelly buys Mark's house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen? - ANS:->> - Shelly will have to sell the house to Monique. (If the optionor/seller sells land that's under an option contract within the option period, the new owner is bound by that contract, and the optionee may enforce the option against the new property owner.) Your client exchanged one property for a similar property and did not have to pay capital gains taxes that year. How did he do this? - ANS:->> - He did a tax-deferred exchange. Soundproofing and decorative material, shingles, and siding may contain what hazardous material? - ANS:->> - Asbestos Wayne conveys a property to Robbie until Robbie's death, when the property is conveyed to Tiffany. What is this scenario an example of? - ANS:->> - Life estate Life Estate - ANS:->> - A freehold estate granted for someone's lifetime
Ex. Emma wrote her will out to include possession of her home to her nephew for the term of his life, after which it would pass to her favorite charity, Cats and Canaries. Which agency enforces federal fair housing laws? - ANS:->> - FHEO FHA - ANS:->> - The Federal Housing Administration RAT: (FHA) is an agency of the U.S. Department of Housing and Urban Development. It sets underwriting standards for loans it insures, but it doesn't make loans. Ex. Rita obtained an FHA loan, allowing her to put just 3.5% down, and she alsoappreciated that her loan's credit score requirements weren't as strict as for conventional loans. SFHAs - ANS:->> - special flood hazard areas (SFHAs) Areas designated as prone to flooding; used to determine cost of flood insurance Ex. Brady lived in a special flood hazard area and was required to carry flood insurance by his lender. Jay's new loan to purchase a property includes the seller's existing mortgage. This type of loan is called a loan. - ANS:->> - Wrap-around
Which of these describes a deed? - ANS:->> - Ownership document Which of the following is true about title to a property? - ANS:->> - Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken. Sampson is acting as a buyer agent. What duties does he owe the seller in the transaction? - ANS:->> - Sampson is acting as a buyer agent. What duties does he owe the seller in the transaction? How often must a Maryland licensee check the license status of a general contractor ifrecommending the service provider to a potential buyer? - ANS:->> - Yearly What happens when a married couple who owns a property as tenants by the entirety divorce? - ANS:->> - Their ownership automatically becomes a tenancy in common. The question, "What's the purpose of this appraisal?" can be ANS:->>ed by which step ofthe appraisal process? - ANS:->> - State the problem.
can be defined as everything that's not real property. - ANS:->> - Personal property Real Estate - ANS:->> - Land, plus all things permanently attached to it, naturally or artificially personal property - ANS:->> - Anything that's not real property real property - ANS:->> - Real estate, plus the interest, benefits and rights included with ownership Ex. Real property can be segmented into a bundle of rights, with each right sold separately, to different owners. When assigning a contract, the assignor should ensure that is not prohibited in the purchase contract. - ANS:->> - Assignability In a life estate, all of the following apply during the term except. - ANS:->>
- Transferability If a rectangular building were 40 feet by 20 feet, the area would be. - ANS:->>
- 800 square feet
Kevin, your buyer client, signed a contract to buy Lydia's home. The contract states that "time is of the essence." You correctly advise Kevin that this means. - ANSWER
- The parties are agreeing to proceed in good faith and not unduly delay the process this number by $800 per acre.) Lenders will require which type of fund for taxes and insurance? - ANS:->> - Reserve fund To effect a transfer of title by deed, must occur. - ANS:->>
- Delivery and acceptance Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship? - ANS:->> - Use variance You have a client who has an investment property valued at $400,000. Annual cap rates are 8%. What can your client expect in net operating income? - ANS:->> - $32, When operating under a power of attorney concerning the transfer of real property, whomay sign in place of the principal? - ANS:->> - Agent
Jamal is a real estate licensee. What's his responsibility regarding household lead hazards? - ANS:->> - He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978. In what type of lease does the landlord pay taxes, maintenance, and insurance? - ANS:->> - Gross lease How do you decide whom you represent in a transaction? - ANS:->> - It's based on the express agreement between you and the party whom you represent. Local real estate developments, such as a new subdivision, will likely impact th e most. - ANS:->> - Aesthetics of a community Carla Ricardo asks the landlord if she could be let her out of her lease early. The landlord agrees to let her out of her lease, no strings attached. Carla and her landlord have decided to terminate the contract through. - ANS:->> - Mutual agreement Single agency is. - ANS:->> - When you only represent one side in atransaction
license. (Except in limited circumstances, in order to receive compensation of any kind for real estate activities, a license is required.) You have found the perfect home for Lucy and she is ready to make an offer. The home was built in 1938. Who is responsible for scheduling paying for the home's lead inspection? - ANS:->> - The buyer
In relation to appraisals, what's a "federally related transaction"? - ANS:->> - A real estate transaction in which a federal financial agency or regulatory authority is involved What's the amount a lender charges a borrower for using the lender's money? - ANS:->> - Interest interest (financing) - ANS:->> - The percentage fee charged on the amount loaned. Ex. Annual interest on a loan can be determined by multiplying the rate of interest by the principal balance. interest (property) - ANS:->> - The right or claim a person has to property Ex. As a beneficiary to her grandmother's will, Susie has an interest in both the farm house and and the mountain chalet. How many approaches to value do appraisers generally use? - ANS:->> - Three Easements are a type of encumbrance that can affect a property. Which of the following is true about easements? - ANS:->> - Easements are often established by a written agreement between the parties. Google and "if this, then that" alerts can assist you with which of the
Emblements - ANS:->> - Growing crops, such as Christmas trees or corn, which are produced annually. These are usually not considered fixtures, but are the personal property of the person who planted them. (Considered personal property) Fiona signed an agreement to either buy or not buy Nick's vacant lot for $310, by aspecific date. What's this agreement called? - ANS:->> - An option Which of the following is a material fact that must be disclosed to prospective buyers? - ANS:->> - A lead-based paint disclosure must be included since the home was built in 1957. Co-ownership with inheritance rights is what kind of real property ownership? - ANS:->> - Tenancy in common Which option best describes a delivery and acceptance of a deed as required? - ANS:->> - Grantor has acknowledged and voluntarily signed the deed in front of apublic notary and delivered it in person to the grantee or an agent of the grantee When does the sales contract become a legally binding document? - ANS:-
- Once the buyer and the seller have signed it The National Fair Housing Alliance believes in promoting the message that
neighborhoods are stronger neighborhoods. - ANS:->> - Diverse When a buyer hands over an earnest money check to you as the buyer's agent, what's your responsibility? - ANS:->> - Account for all monies placed in your trust and follow proper procedures. Which of the following can indicate drainage problems? - ANS:->> - Water that pools after a heavy rain and is present more than 24 hours later Which of the following are landlords required by law to ensure? - ANS:->> - That tenants may peaceably and quietly enter the leased premises at the beginning of the lease (Landlords are required by law to ensure that tenants may peaceably and quietly enter the leased premises at the beginning of the lease.) A deed must be before it can be recorded. - ANS:->>
- Acknowledged Which of the following is an example of a metes and bounds description? - ANS:-
- "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Uh-oh. You failed to present an offer on behalf of your client in a timely manner.
their ownership, provided they have not tried to cover up the contamination and can prove due diligence in investigating the property when it was purchased? - ANS:->> - Superfund Amendments and Reauthorization Act (SARA) Which of the following terms best describes real property? - ANS:->> - Built-in A buyer can submit the earnest money deposit in the form of. - ANS:->>
- A personal check Jose, who is 16, entered into a contract to sell a condo he owned. Because Jose is a minor,. - ANS:->> - Only Jose may void the contract (Minors may not be bound by legal contracts; however, an adult entering into a contract with a minor may be bound.) To prepare for financing, buyers should. - ANS:->> - Save the down payment amount It's not a good idea to post photos of your clients' expensive belongings. Why is that? - ANS:->> - It can attract the attention of thieves. The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called. - ANS:-
- Land The courts use three primary tests to determine whether something is personal property or real property. What are the names of the three tests? - ANS:->> - Method of attachment, agreement, and adaptation In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as , where certain factors may be given more weight. - ANS:->> - Correlation What is typically used to prove there are no encroachments on the property? - ANS:->> - Survey What is the definition of a testator? - ANS:->> - A person who drafts a valid will What's a certified opinion or estimate of value of a particular property as of a particular date? - ANS:->> - Appraisal When an appraiser relies on comparable properties to estimate the adjusted market price of a property, the appraiser is using the approach. - ANS:-
- When an appraiser relies on comparable properties to estimate the adjusted market price of aproperty, the appraiser is using the approach.
Which entity ensures that contractors perform their work according to code by inspecting their job sites? - ANS:->> - The building department With local land use, the stress placed on the community's infrastructure is an example of. - ANS:->> - Development impacts What type of tenancy can be automatically created if a tenant under a lease stays beyond the lease's terms, and the landlord continues to accept rent from that tenant? - ANS:->> - Month-to-month tenancy What's an MLS? - ANS:->> - An online database of active, under contract, sold, expired, and withdrawn listings What might the financial implications be if a buyer needed to use individual retirement account funds toward a down payment? - ANS:->> - First-time homebuyers can use up to $10,000 of their IRA funds penalty free for down payment and closing costs. Kip is a sub-agent working with a buyer customer, Charlie, for Sheila's listing of May's property. To whom does Kip owe his loyalty? - ANS:->> - Sheila and May
When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle is this? - ANS:->> - Regression blockbusting - ANS:->> - An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area stigmatized property - ANS:->> - A property that buyers may shy away from for reasons other than physical defects, such as a property being the site of a murder eminent domain - ANS:->> - The power of the government to take private property for public use Real estate - ANS:->> - Land, plus all things permanently attached to it naturally or artificially Real property - ANS:->> - Real estate, plus the interests, benefits, and rights automatically included with real estate ownership
