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Perry Real Estate College Final Exam
Questions with correct answers
A |house |with |outmoded |plumbing |is |suffering |from
-curable |physical |deterioration
-external |depreciation
-incurable |physical |deterioration
-functional |obsolescence |- |VERIFIED |ANSWER✔✔-functional |obsolescence
In |order |to |be |a |License |member |of |the |commission, |a |person |must |be
-a |KY |citizen
-a |non-felon
-all |of |the |above
-a |licensed |broker |- |VERIFIED |ANSWER✔✔-all |of |the |above
A |licensed |real |estate |professional |acting |as |a |point |of |contact |between |two |or |more |people |in |negotiating |the |sale, |rental, |or |purchase |of |a |property |is |known |as |a(n)
-sales |affiliate
-property |manager
-appraiser
-broker |- |VERIFIED |ANSWER✔✔-broker
A |landowner |constructed |a |building | 7 |stories |high. |Several |years |later |the |municipality |changed |the |zoning |ordinance, |prohibiting |buildings |that |exceed | 6 |stories |in |height. |Which |of |the |following |is |true |regarding |the |existing |7-story |building?
-the |owner |must |obtain |a |variance
-it |is |nonconforming |use
-it |is |a |conditional |use
-the |building |must |be |demolished |- |VERIFIED |ANSWER✔✔-it |is |a |nonconforming |use
All |of |the |following |should |be |a |consideration |in |selecting |a |tenant |for |the |property |EXCEPT
-size |of |the |available |space |relative |to |the |tenant's |requirements
-compatibility |of |the |tenant's |business |with |those |of |other |tenants
-tenant's |ability |to |make |the |rental |payments
-Ethnic |background |of |the |tenant |and |his |or |her |employees |- |VERIFIED |ANSWER✔✔-Ethnic |background |of |the |tenant |and |his |or |her |employees
A |mechanic's |lien |would |be |properly |classified |as |a(n)
-equitable |lien. |
-voluntary |lien. |
-general |lien. |
-specific |lien. |- |VERIFIED |ANSWER✔✔-specific |lien
All |of |the |following |are |prohibited |under |the |antitrust |laws |EXCEPT
-Competing |property |management |companies |agreeing |to |standardized |management |fees
-competing |brokers |allocating |markets |based |on |the |value |of |homes
-a |broker's |setting |a |company |commission |schedule
-real |estate |companies |agreeing |NOT |to |cooperate |with |a |broker |because |of |the |fees |that |broker |charges |- |VERIFIED |ANSWER✔✔-a |broker's |setting |a |company |commission |schedule
A |rancher |owns |a |parcel |of |land |on |which |oil |was |discovered. |If |the |rancher |has |not |previously |conveyed |the |oil |rights, |who |owns |the |oil?
-the |federal |government
-the |tenant |to |whom |the |property |has |been |leased
-the |state |government
-the |rancher |- |VERIFIED |ANSWER✔✔-the |rancher
Abel |and |Baker |are |joint |tenants. |Baker |sells |his |interest |to |Charlie. |What |is |the |relationship |of |Abel |and |Charlie?
-right |of |first |refusal
-option |- |VERIFIED |ANSWER✔✔-option
A |licensee |has |a |duty |to |report |a |conviction |to |the |Commission
-True, |if |it |is |a |felony
-False, |as |there |is |no |duty |to |report
-False, |if |it |is |a |felony
-True, |if |it |is |a |felony |or |a |misdemeanor |- |VERIFIED |ANSWER✔✔-True, |if |it |is |a |felony
If |a |license |is |revoked, |which |of |the |following |is |TRUE?
-The |license |revocation |is |permanent
-The |license |revocation |is |for | 10 |years
-the |license |revocation |is |for | 5 |years
-none |of |the |above |- |VERIFIED |ANSWER✔✔-the |license |revocation |is |for | 5 |years
The |type |of |real |estate |loan |that |allows |the |lender |to |increase |the |outstanding |balance |of |a |loan |up |to |the |original |sum |in |the |note |while |advancing |additional |funds |is |the
-graduated |payment |mortgage
-growing |equity |mortgage
-open |end |mortgage
-wraparound |loan |- |VERIFIED |ANSWER✔✔-open-end |mortgage
The |Commission |will |not |pursue |a |complaint |unless |it
-has |already |been |investigated
-alleges |a |prima |facie |case |of |a |license |law |violation
-is |typewritten
-has |already |been |litigated |in |court |- |VERIFIED |ANSWER✔✔-alleges |a |prima |facie |of |a |license |law |violation
Assume |that |the |listing |and |selling |brokers |split |the |commission |evenly. |What |is |the |sales |price |of |a |house |if |the |listing |broker |received |$2,593.50 |and |the |total |rate |is |6%? |- |VERIFIED |ANSWER✔✔- $86,
The |Commission |can |conduct |an |emergency |hearing |for
-Any |allegation
-Allegations |of |gross |negligence
-alleged |escrow |account |violations
-alleged |advertising |violations |- |VERIFIED |ANSWER✔✔-alleged |escrow |account |violations
A |trust |is |a |legal |arrangement |in |which |property |is |held |for |the |benefit |of |a |third |party |by |a(n)
-attorney |in |fact
-trustee
-trustor
-beneficiary |- |VERIFIED |ANSWER✔✔-trustee
a |bilateral |contract |is |one |in |which
-the |promise |of |one |party |is |given |in |exchange |for |the |promise |of |the |other |party
-something |is |to |be |done |by |one |party |only
-only |one |of |the |parties |is |obligated |to |act
-a |restriction |is |placed |in |the |contract |by |one |party |to |limit |the |performance |by |the |other |- |VERIFIED |ANSWER✔✔-the |promise |of |one |party |is |given |in |exchange |for |the |promise |of |the |other |party
When |the |supply |of |a |commodity |decreases |while |demand |remains |the |same,
-demand |tends |to |rise
-demand |tends |to |drop
-price |tends |to |drop
-price |tends |to |rise |- |VERIFIED |ANSWER✔✔-price |tends |to |rise
-use |of |the |premises
-term |of |the |lease
-sale |and |leaseback |clause |- |VERIFIED |ANSWER✔✔-sale |and |leaseback |clause
All |of |the |following |would |affect |demand |EXCEPT
-population
-fiscal |policy
-wage |levels
-demographics |- |VERIFIED |ANSWER✔✔-fiscal |policy
All |of |the |following |are |true |regarding |public |records |EXCEPT
-they |provide |constructive |notice |about |interests |in |the |property
-they |guarantee |marketable |title
-they |establish |priority |of |liens
-they |give |notice |of |encumbrances |- |VERIFIED |ANSWER✔✔-they |guarantee |marketable |title
A |parcel |of |vacant |land | 80 |feet |wide |and | 200 |feet |deep |was |sold |for |$200 |per |front |foot. |How |much |money |would |a |salesperson |receive |for |her |60% |share |in |the |10% |commission? |- |VERIFIED |ANSWER✔✔-$
The |commission |is |made |up |of |the |following:
-4 |brokers |and | 1 |consumer
-6 |brokers |and | 1 |consumer
-1 |consumer |and | 6 |brokers
-4 |consumers |and | 1 |licensee |- |VERIFIED |ANSWER✔✔-6 |brokers |and | 1 |consumer
All |of |the |following |would |acquire |title |to |real |property |EXCEPT
-the |grantee
-the |lessee
-the |devisee
-the |vendee |- |VERIFIED |ANSWER✔✔-The |lessee
All |of |the |following |are |required |for |a |deed |to |be |valid |EXCEPT
-date
-name |of |the |grantee
-legal |description
-signature |of |the |grantee |- |VERIFIED |ANSWER✔✔-signature |of |the |grantee
a |lease |that |will |terminate |within |one |year |of |its |inception
-may |be |oral
-must |be |in |writing
-violates |the |provisions |of |the |statue |of |frauds
-is |invalid |- |VERIFIED |ANSWER✔✔-may |be |oral
all |of |the |following |are |true |regarding |public |records |EXCEPT
-the |provide |constructive |notice |about |interests |in |the |property
-they |give |notice |of |encumbrances
-they |guarantee |marketable |title
-they |establish |priority |of |liens |- |VERIFIED |ANSWER✔✔-they |guarantee |marketable |title
The |Commission |is |charged |with |determining |if |a |license |applicant |meets |all |of |the |following |criteria |EXCEPT:
-trustworthy |
-honest
-competent |to |protect |the |public
-never |been |adjudicated |bankrupt |- |VERIFIED |ANSWER✔✔-never |been |adjudicated |bankrupt
The |principal |difference |between |an |estate |for |years |and |an |estate |from |year |to |year |is |that
all |of |the |following |are |essential |to |the |formation |of |a |contract |EXCEPT
-performance
-consideration
-offer
-acceptance |- |VERIFIED |ANSWER✔✔-performance
Broker |Janna |was |accused |of |violating |antitrust |laws. |Of |the |following, |she |was |MOST |likely |accused |of
-not |having |an |equal |housing |opportunity |sign |in |her |office |window
-dealing |in |unlicensed |exchange |services
-price |fixing
-undisclosed |dual |agencies |- |VERIFIED |ANSWER✔✔-price |fixing
Under |license |laws, |real |estate |advertising |must |contain |which |of |the |following?
-company's |address
-listing |agent's |name
-company's |telephone |number
-company |name |or |principal |broker's |name |- |VERIFIED |ANSWER✔✔-Company |name |or |principal |broker's |name
A |property |owner |contracted |to |have |a |swimming |pool |installed |on |her |property. |When |the |pool |was |completed, |she |refused |to |pay |for |the |improvement, |and |the |contractor |filed |a |lien |for |nonpayment. |This |lien |was |most |likely |a |
-specific |lien
-general |lien
-special |lien
-voluntary |lien |- |VERIFIED |ANSWER✔✔-specific |lien
Charging |more |interest |than |is |legally |allowed |is |known |as
-usury
-a |deficiency
-escheat
-an |estoppel |- |VERIFIED |ANSWER✔✔-usury
A |third |party |holds |title |to |property |on |behalf |of |someone |else |through |the |use |of |a
-devise
-deed |in |trust
-bequest
-quitclaim |deed |- |VERIFIED |ANSWER✔✔-deed |in |trust
Broker |Kenneth |arrives |to |present |a |purchase |offer |to |Dorita, |an |invalid, |and |finds |her |son |and |his |wife |also |present. |In |the |presence |of |Broker |Kenneth, |both |individuals |persistently |urge |Dorita |to |accept |the |offer, |even |though |it |is |much |lower |than |the |price |she |has |been |asking |for |her |home. |If |Dorita |accepts |the |offer, |she |may |later |claim |that |- |VERIFIED |ANSWER✔✔-she |was |under |duress |from |her |son |and |daughter-in-law, |and |therefore, |the |contract |is |voidable
All |of |the |following |are |true |about |radon |EXCEPT
-modern |construction |reduces |the |potential |for |radon |gas |accumulation
-it |is |colorless, |odorless, |and |tasteless
-radon |levels |will |vary |in |certain |weather |conditions
-levels |can |be |reduced |by |installing |ventilation |systems |- |VERIFIED |ANSWER✔✔-modern |construction |reduces |the |potential |for |radon |gas |accumulation
If |a |licensee |fails |to |renew |his |or |her |license |on |time, |the |license |is
-expired
-revoked
-canceled
-none |of |the |above |- |VERIFIED |ANSWER✔✔-canceled
A |mortgage |broker |generally |offers |which |of |the |following |services?
-less |than |freehold |estate |- |VERIFIED |ANSWER✔✔-freehold |estate
A |tire |company |has |a |manufacturing |plant |located |in |an |area |that |has |just |been |re-zoned |for |residential |usage. |The |company |is |allowed |to |continue |operating |the |plant |under |the |new |zoning |classification. |However, |if |the |plant |is |destroyed |by |fire, |the |tire |company |most |likely |- |VERIFIED |ANSWER✔✔-would |be |forbidden |to |rebuild |the |plant |in |that |neighborhood |under |any |circumstances
CERCLA |regulations |for |administration |of |the |Superfund, |which |helps |pay |for |cleanup |of |uncontrolled |hazardous |waste |sites, |- |VERIFIED |ANSWER✔✔-impose |strict, |joint |and |several, |and |retroactive |liability |on |potentially |responsible |parties
A |principal |broker |must |ensure |that |a |personal |assistant |has |which |of |the |following?
-reasonable |access |to |his |supervising |licensee
-training
-reasonable |supervision
-all |of |the |above |- |VERIFIED |ANSWER✔✔-all |of |the |above
Advantages |of |an |investment |in |real |estate |include |all |of |the |following |EXCEPT
-the |use |of |leverage |to |increase |rates |of |return
-tax |deductions
-the |possibility |of |a |tax-deferred |exchange
-high |liquidity |- |VERIFIED |ANSWER✔✔-high |liquidity
The |defeasance |clause |in |a |mortgage |requires |the |mortgagee |to |execute |a(n)
-assignment |of |mortgage
-satisfaction |of |mortgage
-subordination |agreement
-partial |release |agreement |- |VERIFIED |ANSWER✔✔-satisfaction |of |mortgage
Which |of |the |following |investments |can |not |be |depreciated?
-commercial |building
-single |family |home
-100 |acres |of |vacant |land
-shopping |mall |- |VERIFIED |ANSWER✔✔-100 |acres |of |vacant |land
a |broker |who |is |the |agent |of |the |buyer |should |do |which |of |the |following?
-present |to |the |seller |only |offers |that |are |acceptable
-disclose |to |the |seller |that |the |buyer |is |a |minority |person
-disclose |to |the |seller |the |maximum |price |the |buyer |is |willing |to |pay
-advise |the |buyer |if |the |listing |price |of |the |seller's |house |is |unrealistic |- |VERIFIED |ANSWER✔✔-advise |the |buyer |if |the |listing |price |of |the |seller's |house |is |unrealistic
a |sales |associate |with |one |year |of |experience |is |managing |a |broker's |branch |office, |which |is | 45 |miles |from |the |main |office. |Which |of |the |following |is |TRUE?
-the |sales |associate |is |acting |legally |because |she |has |enough |experience
-the |sales |associate |is |acting |illegally |because |she |does |not |have |enough |experience
-the |sales |associate's |experience |does |natter |under |license |law
-none |of |the |above |- |VERIFIED |ANSWER✔✔-The |sales |associate |is |acting |illegally |because |she |does |not |have |enough |experience
a |recorded |subdivision |plat |is |used |in |the |
-metes |and |bounds |system
-rectangular |survey |system
-geodetic |survey |system
-lot |and |block |system |- |VERIFIED |ANSWER✔✔-lot |and |block |system
The |Commission |cannot |have |more |than |__________ |members |from |one |political |party |- |VERIFIED |ANSWER✔✔-
-air |space |above |the |land
-navigable |rivers |running |through |the |land
-easements |running |with |the |land |- |VERIFIED |ANSWER✔✔-navigable |rivers |running |through |the |land
All |of |the |following |are |alternative |risk |management |techniques |EXCEPT
-ignoring |it
-retaining |it
-transferring |it
-avoiding |it |- |VERIFIED |ANSWER✔✔-ignoring |it
An |important |characteristic |of |land |is |that |is |may |be |modified |or |improved |at |some |point |in |time. |Depending |on |its |type, |an |improvement |may |increase |the |value |of |real |estate |greatly. |All |of |the |following |are |considered |to |be |improvements |EXCEPT
-buildings
-crops
-sewers
-roads |- |VERIFIED |ANSWER✔✔-crops
Federal |income |tax |regulations |allow |homeowners |to |reduce |their |taxable |income |by |amounts |paid |for
-repairs |and |maintenance
-hazard |insurance |premiums
-principal |and |interest
-real |estate |taxes |- |VERIFIED |ANSWER✔✔-real |estate |taxes
Referral |fees |can |be |legally |paid
-from |a |licensed |broker |to |a |consumer |who |referred |a |client
-from |one |licensed |agent |to |another |licensed |agent
-from |one |licensed |broker |to |another |licensed |broker
-from |one |consumer |to |another |consumer |- |VERIFIED |ANSWER✔✔-from |one |licensed |broker |to |another |licensed |broker
A |tenant |has |an |estate |for |years. |According |to |the |written |one-year |lease, |the |tenancy |will |expire |on |May |1st. |To |obtain |possession |as |of |the |date, |the |landlord
-must |give |the |tenant | 30 |days' |notice
-must |give |the |tenant | 60 |days |notice
-is |not |required |to |give |the |tenant |any |notice
-must |give |the |tenant |noticed |before |April |15th |- |VERIFIED |ANSWER✔✔-is |not |required |to |give |the |tenant |any |notice
In |Kentucky, |errors |and |omissions |insurance |is
-voluntary
-recommended
-not |necessary
-mandatory |- |VERIFIED |ANSWER✔✔-mandatory
The |type |of |listing |agreement |that |provides |for |payment |of |a |commission |to |the |broker |even |though |the |owner |makes |the |sale |without |the |broker's |aid |is |called |an
-exclusive |right |to |sell |listing
-exclusive |agency |listing
-open |listing
-option |listing |- |VERIFIED |ANSWER✔✔-exclusive |right |to |sell |listing
A |person |who |has |complete |control |of |a |parcel |of |real |estate |is |said |to |own |a |
-leasehold |estate
-fee |simple |estate
-defeasible |fee |estate
-life |estate |- |VERIFIED |ANSWER✔✔-fee |simple |estate
-uniqueness
-immobility |- |VERIFIED |ANSWER✔✔-scarcity
If |a |homeowner's |insurance |policy |provides |coverage |for |less |than | 80 |percent |of |the |full |replacement |cost |of |the |dwelling, |then |the |loss |of |the |residence |will |be |settled |for
-the |market |value |of |the |property |less |the |land |value.
-the |lowest |repair |bid.
-either |the |actual |cash |value |or |the |prorated |repair |cost.
-the |total |replacement |cost. |- |VERIFIED |ANSWER✔✔-either |the |actual |cash |value |or |the |prorated |repair |cost
a |father |conveyed |the |family |home |to |his |daughter |by |will |as |a |pur |autre |vie |estate |for |the |life |of |her |mother. |If |the |daughter |should |die |before |the |mother, |who |gains |possession |of |the |property?
-the |remainderman
-the |father's |other |children
-the |mother
-the |daughter's |heirs |- |VERIFIED |ANSWER✔✔-the |daughters |heirs
Which |of |the |following |is |true |about |land |taken |for |public |use?
-the |local |use |will |benefit |the |residents |in |the |immediate |area
-the |health, |safety, |and |welfare |of |the |government |must |be |the |reason
-the |owner |must |be |fairly |compensated
-the |property |is |then |established |as |a |fee |simple |determinable |estate |for |a |particular |use |- |VERIFIED |ANSWER✔✔-the |owner |must |be |fairly |compensated
if |a |licensee |if |found |in |violation |of |license |law |and |discipline |is |ordered, |the |licensee |__________
-can |appeal |to |the |Commission
-can |appeal |to |the |attorney |general
-can |appeal |to |the |circuit |court
-has |no |recourse |- |VERIFIED |ANSWER✔✔-can |appeal |to |the |circuit |court
All |of |the |following |are |exempt |from |licensure |EXCEPT:
-trustee
-attorney
-attorney |in |fact
-personal |assistant |- |VERIFIED |ANSWER✔✔-personal |assistant
Tenant |security |deposits |must |be |placed |where?
-in |the |broker's |operating |account
-in |a |separate |account
-in |the |owners |account
-none |of |the |above |- |VERIFIED |ANSWER✔✔-in |a |separate |account
An |earnest |money |deposit |must |be |placed |into |escrow |within |_____ |business |days |of |receipt |- |VERIFIED |ANSWER✔✔-
a |bill |of |sale |is |used |to |transfer |the |ownership |of
-fixtures
-appurtenances
-real |estate
-personal |property |- |VERIFIED |ANSWER✔✔-personal |property
All |of |the |following |affect |how |quickly |the |forces |of |supply |and |demand |work |EXCEPT
-degree |of |standardization |of |the |product's |price
-mobility |of |the |parties |to |the |transaction
-degree |of |standardization |of |the |product
-mobility |of |the |product |- |VERIFIED |ANSWER✔✔-degree |of |standardization |of |the |products |price
A |property |manager |must |be |licensed, |unless:
