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Post License Latest Exam 2025-2026 Verified
Questions and Correct Answers
Your client, Octavia, needs to sell quickly. She paid $250,000 for her condo, and her neighbor's condo sold two years ago for $300,000. A similar condo across town, however, recently sold for $400,000. Which factor should impact your list price strategy? - correct answer>>How soon Octavia needs to sell Why is it recommended that buyers hire an inspector before purchasing a property? - correct answer>>It reduces the risk to the buyer. If a buyer asked you to perform the home inspection to save money, what should you do? - correct answer>>Refuse What's happened to disclosure requirements over the years? - correct answer>>Become stricter Your client, Andrew, is in the process of buying a home. You should be sure to do which of the following? - correct answer>>Attend the inspection Who completes the property condition disclosure statement, and who is liable for the information provided? - correct answer>>The seller completes it, and the seller is liable for the contents. What does the inspection contingency allow? - correct answer>>It authorizes inspections only. Buyer Angus is suing a seller, Danielle, because she failed to disclose the damaged masonry on the side of the house. The damage was clearly visible. Angus's case has no legal merit because ______. - correct answer>>Buyers may not recover for nondisclosure of a material defect that could be easily detected Mark, a prospective buyer, fell down a flight of stairs while touring a property. The seller failed to disclose a faulty railing. Who could be sued? - correct answer>>The seller What's the primary purpose of the buyer presentation? - correct answer>>Build trust What should you always start with during a buyer presentation? - correct answer>>Agency disclosures
A buyer has just called you for the first time. Why should you ask how the buyer got your name? - correct answer>>Buyer pre-qualification purposes One thing you should ask any buyer prior to showing a property is ____________ - correct answer>>"Are you working with another agent?" Who should fill out the buyer representation agreement? - correct answer>>The buyer A buyer found you through a sign call on your listing and asks for a showing. If your state allows it, you should prepare for ________. - correct answer>>dual agency Ned learned that a new buyer has been looking for a property for more than a year. One potential problem with this is that ________. - correct answer>>The buyer may be looking for an impossible to find property One truism about Internet buyers is that ________. - correct answer>>They expect immediate response Jan has been approached by a buyer. The first question she should ask is, ________. - correct answer>>How the buyer got her name Which of the following statements is TRUE regarding a buyer presentation? - correct answer>>It should build trust and rapport and soft pedal any sales pitch. In Georgia, buyer representation agreements ______. - correct answer>>Aren't limited to any a state-specified form Lily is considering signing a buyer representation agreement with you, but she's unconvinced. "What's in it for me?" she asks. What's one major benefit to her when she signs the buyer representation agreement? - correct answer>>It means you're representing her and not the seller. What should you do if a buyer refuses to sign the buyer representation agreement and you can't answer the buyer's objections? - correct answer>>Ask the buyer to agree verbally to be loyal to you. Which of the following duties does the agent owe the buyer under the terms of a buyer representation agreement? - correct answer>>Locating and showing properties
When formulating a desired outcome, you should ______. - correct answer>>State the outcome in the positive The tone of voice you use matters ________ the words you say. - correct answer>>More than Your client's offer asks that the seller replace the roof, in addition to other requests. The seller agrees to some of the other requests, but not the roof, which is a big deal to your client. You should do which of the following? - correct answer>>Skip the roof issue for now and gain your client's approval on the rest of the offer Most hurdles that delay or prevent closings fall into one area: final walk-throughs. - correct answer>>False Because it needs to be removed in writing, the removal of the contingency is known as ________ removal. - correct answer>>Active The closing meeting has occurred—the buyer and seller are off to buy a celebratory margarita—but there are still several things that need to happen before we can truly say, "Olé." Based on this timeline, can you identify what's been completed and what hasn't? - correct answer>> Perform a title search - correct answer>>completed Record deed and loan documents - correct answer>>not completed Prepare closing statements - correct answer>>Completed Pay off existing loans - correct answer>>not completed Distribute funds to seller and brokers - correct answer>>Not Completed Calculate prorated expenses - correct answer>>Completed To force Deidra to sell him the home at the agreed upon price, Winston can go to court and seek an order of ________. - correct answer>>specific performance The Home Valuation Code of Conduct (HVCC) requires that appraisers ______. - correct answer>>Be assigned by a third party, such as an appraisal management company
What is the purpose of the preliminary title report? - correct answer>>Offers to issue a title insurance policy All lenders have different underwriting standards, but traditionally, the housing debt-to- income ratio has been ______%, with a total debt-to-income ratio of ______ %. - correct answer>>25 to 28; 33 to 36 Whose responsibility is it to review the preliminary title report? - correct answer>>The buyer and the buyer's agent The Closing Disclosure must be provided to the borrower at least ______ days before the day of closing. - correct answer>>3 days In order to be a valid contract, the financing agreement must: - correct answer>>Be documented in writing Include an accurate legal description of the property that is being pledged as collateral, including how title is held Include a detailed statement of the amount of the loan and how it will be repaid Be formed by parties who are legally competent Be signed The agreement includes a security instrument, which is what allows the lender to foreclose on the property if the borrower defaults on the loan. The agreement takes one of these forms: - correct answer>>Note with mortgage Note with deed of trust Note with security deed When Don reviews the document that says he pledges the property he just purchased as collateral for his loan, he notices the terms "grantor" and "grantee." Who is the grantee? - correct answer>>the lender A prequalification establishes an approved line of credit. - correct answer>>false Getting prequalified requires a formal verification process. - correct answer>>false Which of the following are other disclosures that lenders must provide to borrowers? - correct answer>>Escrow closing notice Mortgage servicing transfer Partial payment notice
calculating what interest is a month - correct answer>>The calculation is $335,000(loan amount) x 0.05(rate). This gives us $16,750. We divide this number by 12 (because we want the amount of interest per month, and there are 12 months in a year). finding how much interest is paid at the end of 30 years - correct answer>>Here are the numbers we need: 360 (total payments), $1,798.35 (monthly payment), and $335,000: $1,798.35 x 360 = $647,406 ‒ $335,000 = $312,406. Net operating income ÷ capitalization rate = - correct answer>>approximate value Value (purchase price) × cap rate = - correct answer>>net operating income Debt coverage ratio = - correct answer>>Net operating income/Annual debt service From a financing standpoint, which DCR provides the least risk? - correct answer>>the highest is best (1.3) Mortgage Company A reviewed and accepted the appraisal they ordered, but your buyer/borrower found a better interest rate and terms at Mortgage Company B. What can be done so Company B can close the transaction quickly? - correct answer>>Ask Company B to send a new appraisal request Gabe is preparing an appraisal for 123 Baker Street. He notes that one of the comparables he's using has a $5,000 fireplace feature that's not included in his subject property. Gabe should: - correct answer>>Adjust the comparable downward Exterior peeling paint and worn carpet are examples of ______. - correct answer>>Curable physical depreciation In order to calculate the value of a house by the income approach, if you know that the GRM derived from the comparables is 67X, you would: - correct answer>>Multiply the gross monthly rental income by 67X With the cost approach to value, what is the replacement cost? - correct answer>>Cost to build a functionally equivalent improvement Which one of these would NOT be an element of comparison an appraiser would use when applying the sales comparison approach to a property valuation? - correct answer>>Income generated
The three types of appraisals most commonly used are the _______, the cost approach and the income approach. - correct answer>>Sales comparison Caleb, an appraiser, has not yet completed his appraisal, but MLS figures and public records indicate that the property will "make value." If the lender asks Caleb for an opinion on that matter, Caleb may ________. - correct answer>>Not answer the question When do most lenders require that a property must have been appraised? - correct answer>>Within the 12 months that precede the effective date of the appraisal What is the URAR? - correct answer>>The most widely used appraisal reporting document Ethical standards for appraisers are spelled out in the ______. - correct answer>>USPAP The ______ is the most widely used appraisal reporting instrument. - correct answer>>URAR When it comes to the income approach to value for residential rental properties, what's the definition of a gross rent multiplier? - correct answer>>The ratio of a comparable's sale price to its monthly gross income To whom may an appraiser reveal a property's value estimate? - correct answer>>the client With whom may the appraiser discuss value? - correct answer>>The appraiser's client only Suppose an appraiser tells a seller a ballpark range of value for the listed property. What is this considered, per USPAP? - correct answer>>A formal opinion of value Which of these situations represents reproduction cost in the cost approach to value? - correct answer>>Kristina's antebellum mansion in New Orleans was severely damaged by a hurricane. She spends several years repurposing materials from other similar homes to rebuild it exactly as it was before the hurricane. Using the income approach, the value of a business is based ________. - correct answer>>On its future ability to generate income
Sarah, a real estate representative, just learned that a former client is filing a lawsuit against her for misconduct. Because of ______, Sarah's broker may be held liable as well. - correct answer>>Vicarious liability Mary, a real estate broker, said to her client, "The customary rate for real estate services is 6% of the sales price." - correct answer>>not allowable Nick represented April in selling her home. April told Nick that the basement leaked every time there was a big rainstorm. Nick was selling the home in a dry time of the year, so he had a painter come in and paint over the water stains in the basement. Nick did not tell any potential buyer about the leaks. Betty bought the house and the next time it rained, was required to spend $10,000 to replace the new carpeting and drywall she had installed in the basement. Nick is guilty of: - correct answer>>Fraud and misrepresentation What's the definition of suppression? - correct answer>>When a licensee is asked a direct question evades or doesn't answer truthfully When you're asked a direct question that you either evade or don't answer truthfully, what's it called? - correct answer>>Suppression Which of the following is a non-trust fund held in a non-trust account? - correct answer>>Commissions Which of these actions related to pricing is permissible? - correct answer>>Jake's firm agrees to charge all clients a listing commission of between 2% and 2.5%. What should Maggie do to avoid antitrust law violations? - correct answer>>Stress that she sets her own rates based on the services she provides. As a managing broker, you're responsible for your associate brokers' actions. Which of the following risk management techniques helps prevent the risk associated with vicarious liability? - correct answer>>Providing training and policies/procedures documentation to staff When a buyer asks Brooke, a real estate professional, a question about a property, Brooke unknowingly makes a false statement. This is considered ______. - correct answer>>Innocent misrepresentation
For which of the following reasons occurring at the time of purchase do buyers file the most lawsuits? - correct answer>>Property conditions Stacie often mixes her clients' funds with her own. What's this illegal practice called? - correct answer>>Commingling OLD CAR: - correct answer>>ObedienceTo follow your client's instructions as allowable within the lawTo follow all federal, state, and local laws and regulations LoyaltyTo place the interests of your clients above all other interests, including your own DisclosureTo disclose information about transactions and properties vital for your clients/customers to know, in order to make informed decisions ConfidentialityTo keep information received from your clients that might harm your clients' positions in transactions, private and confidential AccountingTo accurately account for money and personal property entrusted in your care as it relates to transactions Reasonable skill and careTo use your professionalism, education, and skill to perform your duties for your clients to the best of your ability Your duties to customers break down into three key areas: - correct answer>>- Honesty: Treat all customers with integrity and truthfulness. You must never deceive, mislead, or misrepresent information or facts to any party in the transaction, whether you are contracted with that person or not.
- Disclosure: Disclose information about transactions and properties vital for your clients/customers to know in order to make informed decisions. This disclosure includes material facts that may affect the value of the property, the desirability of the property, or the decisions of the buyer.
- Accounting: Keep an accurate account for money and personal property entrusted in your care as it relates to transactions. Which one of the following is NOT a basic element of a contract? - correct answer>>earnest money Specifically, what does the fiduciary duty of disclosure relate to? - correct answer>>Conflicts of interest, material facts, and adverse material facts Which fiduciary duties do customers receive? - correct answer>>Customers don't receive fiduciary duties because they're not clients.
