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National Real Estate 219 Exam Practice
Questions
A sales agent had a listing and the property did not sell. The listing expired. During the term of the listing the seller had disclosed confidential information to the agent. Several months later, the agent has a buyer client interested in purchasing the same property. How long must the seller's private information be kept confidential? - ✔ ✔ the duty of confidentiality never expires and the agent must keep that information confidential forever
A metes and bounds description will always - ✔ ✔ have a
point of beginning
Which of the following is an example of economic obsolescence? - ✔ ✔ air pollution
A salesperson designed an innovative tech in the office that would substantially improve service to clients. He must - ✔ ✔ obtain permission from his broker before using it
Every broker must display the Equal Housing Opportunity Poster in his office. The poster is usually distributed by - ✔ ✔ HUD
Which of the following best describes an FHA loan? - ✔ ✔ it is totally insured by the FHA
A broker is most often - ✔ ✔ special agent
What type of loan has a rate linked to an economic index?
When should an agent advise a client to get title work done? - ✔ ✔ before closing
What is considered evidence against a broker accused of discrimination? - ✔ ✔ failure to display the equal housing poster in their office
A property owner has decided to do some landscaping work on his yard. He has planted a tree surrounded by some flowering shrubs. The tree and shrubs are an example of... - ✔ ✔ improvements
A signed sales contract that has not yet gone to closing is...
When does an offer become a contract? - ✔ ✔ When the offeree gives the offeror notice of the acceptance
Which of the following statements is true about the duties of an agent according to the common law of agency? - ✔ ✔ an agent must treat both clients and customers with honesty and fairness
A property manager is hired and signs a management agreement with the owner. At this time, the property manager is... - ✔ ✔ a general agent
A buyer and seller have negotiated a contract on the seller's property with a closing set for June 14th, time is of the
An unlicensed assistant gets a call from a listing owner with questions about a contract- what should the assistant do? - ✔ ✔ take the information to the listing broker
An underage college student signs a lease, then discloses his age to the landlord. What is true? - ✔ ✔ the contract is
voidable at the minor's option
A seller comes into the office to sign a contract. The seller is stumbling and smells of alcohol. How do you proceed? - ✔ ✔ tell the seller to leave and return another time
A high rise condominium property is advertised as having the "Most beautiful view of the city". This ad is best described as - ✔ ✔ puffing
Which of the following facts about listed property must be disclosed - ✔ ✔ death due to structural defects
A lead paint disclosure is required for all properties built before - ✔ ✔ 1978
Which of the following statements about lead is NOT true? - ✔ ✔ the property owner must remediate the presence of lead
CERCLA is under the administration of: - ✔ ✔ EPA
Which of the following used in 1978 is both extremely hazardous and friable? - ✔ ✔ asbestos
Which of the following properties would be the least desirable neighborhood? - ✔ ✔ brownfields
A seller must keep a copy of the lead paint disclosure he provided to the buyer for - ✔ ✔ 3 years
It has been found that mold can develop due to - ✔ ✔ air tight windows and doors found in newer construction
General liability insurance will - ✔ ✔ protect a company's assets if someone is injured on company property
A condo owner's policy will most likely cover the owner if - ✔ ✔ a guest slips in the kitchen
A condo complex has liability complex has liability insurance. This is least likely to cover - ✔ ✔ a units owner's carpet damaged by a broken water pipe
Accurate record keeping is the responsibility of all the brokers. If a broker's computers are stolen what steps could have been taken to protect records? - ✔ ✔ offsite or cloud storage
A license holder has just attended a training seminar about technology in real estate and is excited about using social media with her clients. Which of the following statements about social media in real estate is NOT true? - ✔ ✔ an agent with permission to advertise a property on social media does not have to worry about protecting confidential information about the client
A sales agent is showing a property. He trips in the house causes major damage to property of the owner. What type
A broker is running short of funds to meet this month's monthly operating expenses. He places a client's earnest money deposit in his business account and uses it to pay is rent. After his next closing, he replaces the client's deposit in his trust account. The broker... - ✔ ✔ is guilty of conversion
Which of the following is NOT an example of due diligence in a sales contract? - ✔ ✔ a broker completes a CMA for a buyer client prior to the buyer making an offer
A sales agent just obtained a listing. The seller told the agent that she needs to sell the property because she is going through a divorce. What must the salesperson do - ✔ ✔ obtain the signatures of all owners on the listing agreement
Wetlands typically contain which of the following? - ✔ ✔ navigable waters
What is the max amount of time allowed for a victim to file a Fair Housing complaint? - ✔ ✔ 24 months
A property manager notices that the building stucco needs repair. He notifies the landlord and recommends a contractor. The landlord uses the contractor who does not do a good job. The new stucco leaks and mold grows. The tenant becomes ill from the mold. Who is responsible? - ✔ ✔ the landlord
An apartment building owner has renovated and modified several units to be handicapped accessible. Can he advertise this accommodation? - ✔ ✔ Yes
When did the second amendment of the Federal Fair Housing Act go into effect? - ✔ ✔ March 12, 1989
What is the purpose of a property management trust account? - ✔ ✔ to hold tenant security deposits
Regulation Z applies to: - ✔ ✔ ALL REAL ESTATE credit transactions except for commercial loans. For non-real estate transactions, it covers up to $25,000.
The main purpose of Regulation Z is - ✔ ✔ to notify borrowers of the true cost of credit
What is a requirement of the CFPB - ✔ ✔ Lenders must provide borrowers with the LE form at the time of or within 3 business days of application
Which of the following closings would be covered by RESPA (1-4 residential family housing) - ✔ ✔ a condominium
When does the buyer under contract for deed get title to the property? - ✔ ✔ when the final loan payment is made
What is another name for Contract for Deed - ✔ ✔ installment contract
What department of the government oversees the FHA insurance program? - ✔ ✔ HUD
What type of mortgage loan would allow the property owner to borrow additional funds at future dates - ✔ ✔ an HELOC
A seller has received $225,000 for the sale of his home. This represents a 20% profit. What did he pay for the house when he purchased it? - ✔ ✔ $187,
A seller wants to net $185,000 on the sale of his property. He must pay a loan balance of $180,530 and closing costs at $10,000. The commission to the listing broker will be 6%. What is the lowest price the property can sell for to accomplish this? - ✔ ✔ $399,
If an appraiser uses the cost approach to determine the value of a two story building 128 x 97 at $120/sq. ft, with $10,000 in depreciation and a $27,500 lot, what is the value of the property? - ✔ ✔ $2,997,
Mark purchased a home for $150,000 He had an 80% LTV. He has paid off $42,000 of his purchase mortgage. He is selling the house for $179,000. How much equity does he have? - ✔ ✔ $101,
Maria is planning to buy a house for $200,000. The lender has indicated that he will charge 3 points plus an origination point. Maria is considering the difference between an 80% LTV and a 75% LTV. How much will she save on points if she chooses the 75% LTV? - ✔ ✔ $
An office space is 24 feet long and 27 feet wide with 9-ft ceilings. The owner wants to carpet the office. How many square yards of carpet does he need? - ✔ ✔ 72
A property is listed for $399,500. It sells for $396,000. The negotiated commission is 6% and will be split evenly between the selling broker and the listing broker. The selling broker pays his sales associates 60% of the broker's commission. How much does the selling broker earn? - ✔ ✔ $4,
A developer has 2,178,000 sq.ft of property. He sells 80% of it for $5,000 an acre. What is the total sale price? - ✔ ✔ $200,
An office building has a potential gross rent of $20,000.per month. It has a vacancy rate of 15%. Yearly expenses for the property toatl $115,000. If the owner is earning a 10% rate of return, what is the value of the building? - ✔ ✔ $890,
What monthly income will your buyers need to qualify for a $200,000 loan at 6% for 30 years if lenders are qualifying at 28%? (The loan factors is $6.00). Monthly taxes and insurance will be $900. - ✔ ✔ $7,
A seller is closing on the sale of his home on April 23rd. The property taxes have not been paid for this year. The annual tax bill is $2,008. Using a 360-day year, how much will the seller owe for taxes at closing? - ✔ ✔ $
A property is surveyed to determine a legal description. The surveyor works from a point of beginning, and measures terminal points and angles. What method of land description is he using? - ✔ ✔ Metes and bounds
Mary and John are married with grown children. Both are intestate. If John dies and Mary becomes the owner of their home, what type of ownership did they have? - ✔ ✔ Tenancy by the entirety
The local government needs your land to build a new high school. They have the right to take your land for the public good. This is called - ✔ ✔ The right of eminent domain
You have recently purchased property in an area regulated by zoning. It has come to your attention that you have a zoning violation on the property. What should you do? - ✔ ✔ Request a variance from the zoning board
One of the property owners in a subdivision is violating the deed restrictions. What can the other property owners do to get him to comply? - ✔ ✔ Seek an injunction from the courts
Your property borders a non-navigable waterway and you have riparian rights. You have built a 10 foot pier at the water's edge. How do measure your property? - ✔ ✔ To the middle of the waterway
Mary, a single woman, has no children. She owns real property and dies intestate. What happens to her real
property? - ✔ ✔ The court will appoint an administrator and it will be distributed to her heirs by the Law of Descent
A property owner has a gas station on his land. The zoning committee changes the zoning to R-1. What must the property owner do? - ✔ ✔ Nothing- his property is
automatically considered a non-conforming use
A property owner receives a notice that his land is in an improvement district. What does this mean? - ✔ ✔ He will
receive an additional tax bill
A property owner has installed a chain link fence on his property. He has received on official notice requiring the removal of this type of fence. This fence is most likely a violation of... - ✔ ✔ Deed restrictions or deed covenants
A single property is regulated by building codes, zoning and deed restrictions. The rules are in conflict with one another. Which must the property owner obey? - ✔ ✔ The property owner must obey whichever rules are the strictest or most limiting
Which of the following conveys title to real property and insure good title? - ✔ ✔ A general warranty deed
A buyer has discovered a defect in title and has suffered a loss due to the defect. The title company has compensated the buyer for the loss. Subsequently, the buyer is awarded a judgement against the seller. The title company is entitled to
An appraiser has been hired to value a commercial office building that is fully leased. What approach to appraisal will he use to determine his opinion of value? - ✔ ✔ Income approach
What is the least important factor for a license holder preparing a CMA - ✔ ✔ The information from expired listings of unsold property in the area
An appraiser is using the Market Data Approach to determine the value of a residential property. What is FALSE? - ✔ ✔ His comparables should not be more than one year old
What expenses of home ownership can a buyer deduct on his income taxes? - ✔ ✔ taxes and interest on his mortgage
Mark has an option to purchase Bob's property. The option expires at the end of the month and Mark would like to extend the option. What would he need to do? - ✔ ✔ pay an additional option fee
A buyer has signed an agreement to purchase a property from a seller. He has met all the terms and conditions of the listing. The listing broker has taken the agreement to the seller. The seller has changed his mind about selling and refuses to sign the agreement. What is true? - ✔ ✔ The seller does not have sell, but he owes the listing broker a commission
Mark has an Open Listing on a seller's property. He had shown the property three times to the same potential buyers. Each time, he notified the sellers of the showing by phone. He heard from the sellers that he should no longer show the property as it was sold. Several weeks later, he learned that it was sold to the buyers he brought to the property. What are Mark's rights with respect to a commission from the sellers? - ✔ ✔ Mark is not entitled to any commission as he did not bring the offer to the sellers
The best description of a counteroffer is - ✔ ✔ a rejection of an offer
Which of the following contracts would be voidable? - ✔ ✔ A contract with a minor
A buyer and his agent visit a listed property. The buyer loves the property and wants to purchase it. He speaks with the seller, who is at home at the time, and they come to an agreement regarding price and terms. They shake hands on the agreement and the buyer happily leaves the property. His agent should: - ✔ ✔ Warn the buyer that the verbal sales contract is unenforceable
Which of the following terms is used to describe a situation where a buyer and seller agree to terminate a contract? - ✔ ✔ Mutual recession
A seller's property is listed for $399,900. A buyer makes an offer for $389,000. The seller counter offers for $392,500. The buyers have not responded to the counteroffer. The sellers
Which of the following is not a duty of an agent? - ✔ ✔ (OLD CAR) Trust
A signed employment agreement is necessary to... - ✔ ✔ sue for commission
A listing agent would probably not disclose - ✔ ✔ death on the property due to natural causes
Which of the following deaths on the property should never be disclosed? - ✔ ✔ Death due to HIV/AIDS
Which of the following properties would be the least desirable neighbor? - ✔ ✔ Brownfields
How long must a seller or landlord keep a copy of the lead paint disclosure? - ✔ ✔ 3 years
All of the following are hazardous substances that a license holder should be aware of except - ✔ ✔ Acrylic paint
Which of the following is the best example of puffing - ✔ ✔ I think this is the best floor plan available from this builder
A buyer's agent has helped a buyer to find a home. The buyer has expressed concern about the possible presence of radon. What should the buyer's agent do in this case? - ✔ ✔ Recommend an inspection for hazardous materials
A chemical manufacturing company purchases a plant. After closing they discover that the previous owners had spilled hazardous materials on the land. According to
CERCLA, who is liable for the cost of the cleanup? - ✔ ✔ both the new owners and the previous owners
Who is responsible for providing a lead paint disclosure? - ✔ ✔ The seller
A property has lead paint in the interior and on the exterior. Which of the following statements is true? - ✔ ✔ The seller has no duty to remediate lead, simply to disclose it
A license holder has just taken a class on networking and marketing through social media. She is very excited about the possibilties and hes established Facebook, Twitter, Linkedln and Pinterest acocunts. She is also writing a blog. She has decided to market a new listing on these sites. The property has been built to resemble an Antebellum mansion. How can she advertise the propert? - ✔ ✔ Antebellum style mansion
Which claim for damages would most likely be covered by a homeowner warranty policy? - ✔ ✔ A furnace that breaks down a few weeks after the buyer move in
Under a new construction Home Owner Warranty policy, which of the following would not be covered? - ✔ ✔ The air conditioning unit
Which of the following statements about flood insurance is FALSE - ✔ ✔ Flood insurance is not necessary if a property
owner has a comprehensive homeowner's property
