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Real Estate 86 Practice Exam Questions: A Comprehensive Guide for Licensing Exams, Exams of Real Estate Management

Bethel University MinnesotaReal Estate Management

A comprehensive set of 86 practice exam questions covering various aspects of real estate principles and practices. It is designed to help individuals preparing for real estate licensing exams by providing a thorough understanding of key concepts, regulations, and procedures. The questions cover topics such as mortgage types, fair housing laws, appraisal methods, property management, and real estate contracts. This resource is valuable for aspiring real estate professionals seeking to enhance their knowledge and test their understanding of the industry.

Typology: Exams

2024/2025

Available from 12/07/2024

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Real Estate 86 Practice Exam Questions
1. What is a characteristic of a VA Mortgage? - โœ” โœ” Must
sign an affidavit saying that they intend to occupy the
property.
2. What is a mortgage that includes both real and personal
property? - โœ” โœ” Package Mortgage
3. What is a mortgage that will not fully amortize the loan? -
โœ” โœ” Balloon Mortgage
4. Regulation Z requires lenders to... - โœ” โœ” inform
borrowers of HOME MORTGAGE LOANS of closing cost
5. What is a mortgage that encumbers several parcels of
land? - โœ” โœ” Blanket Mortgage
6. The mortgage amount relative to the property price is
called... - โœ” โœ” Loan to Value
7. What is a characteristic of negative amortization? - โœ” โœ”
They are commonly found on Adjustable Rate Mortgages
(ARM)
8. What is the max profit a married couple can take on
capital gain? - โœ” โœ” 500k
9. What is a fair housing exemption? (OLD PERSON
COMMUNITY SCENERIO) - โœ” โœ” Familial Status
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Download Real Estate 86 Practice Exam Questions: A Comprehensive Guide for Licensing Exams and more Exams Real Estate Management in PDF only on Docsity!

Real Estate 86 Practice Exam Questions

  1. What is a characteristic of a VA Mortgage? - โœ” โœ” Must sign an affidavit saying that they intend to occupy the property.
  2. What is a mortgage that includes both real and personal property? - โœ” โœ” Package Mortgage
  3. What is a mortgage that will not fully amortize the loan? - โœ” โœ” Balloon Mortgage
  4. Regulation Z requires lenders to... - โœ” โœ” inform borrowers of HOME MORTGAGE LOANS of closing cost
  5. What is a mortgage that encumbers several parcels of land? - โœ” โœ” Blanket Mortgage
  6. The mortgage amount relative to the property price is called... - โœ” โœ” Loan to Value
  7. What is a characteristic of negative amortization? - โœ” โœ” They are commonly found on Adjustable Rate Mortgages (ARM)
  8. What is the max profit a married couple can take on capital gain? - โœ” โœ” 500k
  9. What is a fair housing exemption? (OLD PERSON COMMUNITY SCENERIO) - โœ” โœ” Familial Status

10.What is steering? - โœ” โœ” the unlawful act of keeping a buyer away from certain communities or guiding them to purchase in certain communities.

  1. Selling agent represents who in a single agency listing agreement? (Scenario Question) - โœ” โœ” Dangerfield

represents Crawford

  1. What represents dual agency? - โœ” โœ” 1 broker with listing agreement and buying agreement
  2. In a comparison between a land contract and a purchase money mortgage which is true? - โœ” โœ” Both represent forms of finacing
  3. Entitlement to commission when transaction is not consummated. - โœ” โœ” Except when listing broker does not disclose information
  4. Can a salesperson give legal advice? - โœ” โœ” No, not

unless they are an attorney.

  1. Who determines the commission in a listing contract? - โœ” โœ” An agreement between the owner and broker
  2. All are typical duties of a property manager with the exception of... - โœ” โœ” Investing profits
  3. Transfer tax is typically paid by for by whom? - โœ” โœ” Buyer and seller
  4. Blockbusting definition... - โœ” โœ” An illegal real estate practice caused by inciting fear and panic selling by
  1. What rules require fair housing laws to be in a listing contract? - โœ” โœ” PA Human Relations Act
  2. Typically who pays for title insurance? - โœ” โœ” Buyer
  3. What is the transfer tax charged by the state of PA? - โœ” โœ” 1% of the sales price
  4. What should you do about material defect disclosures? - โœ” โœ” inform the buyer and seller
  5. What is private mortgage insurance? - โœ” โœ” It protects the lender if their is default
  6. What is the first step in the appraisal process? - โœ” โœ” Indicate objective of appraisal
  7. What is an example of external depreciation? - โœ” โœ” Nearby property that suffers from lack of maintenance and is negatively affecting the sellers property.
  8. Who does a selling salesperson represent under buyer agency? - โœ” โœ” Buyer
  9. What is not an example of a real estate business violation of the antitrust laws? - โœ” โœ” opening offices in new locations
  10. Equity definition... - โœ” โœ” the value of real estate above any debt on that property.
  11. Who are the parties in a listing agreement? - โœ” โœ” owner and listing broker.
  1. All are examples of fiduciary responsibilities under a single agency listing agreement except... - โœ” โœ” negotiate lowest price.
  2. Reconciliation definition... - โœ” โœ” the process of comparing the property values derived from different approaches to value, selecting the most suitable approach for the particular property being appraised and coming to a final conclusion of value.
  3. The following are typical property management operation expenses except... - โœ” โœ” ceiling replacement
  4. The following are examples of agricultural property except... - โœ” โœ” government owned rural land
  5. Physical deterioration... - โœ” โœ” associated with normal wear and tear.
  6. Proper listing price of the property... - โœ” โœ” based on

seller

  1. Exclusive Right to Sell Listing definition... - โœ” โœ” A type of listing to list and sell real estate property in which the seller employs one broker but that broker earns a commission "no matter who sells the property including the owner"
  2. What type of property would be most appropriate to use the cost approach method? - โœ” โœ” 25 year old church
  3. Definition of appraisal... - โœ” โœ” supportable estimate of value
  1. Disclosure requirements to a seller under a listing agreement force brokers to disclose info except... - โœ” โœ” the buyer had AIDS
  2. Sale and leaseback definition... - โœ” โœ” a combination real estate transaction where there is both a sale of real property by an owner and then an immediate lease on the same property giving the seller the right to remain in the same property that was just sold.
  3. All are characterisitics of a contract for a deed except...
  • โœ” โœ” the buyer receives title when the contract is signed.
  1. Who is considered the lender in a purchase money mortgage? - โœ” โœ” Seller
  2. What is the purpose of RESPA? - โœ” โœ” to to provide disclosure of closing cost info.
  3. Purchase money order is a debit to the... - โœ” โœ” Debit to the SELLER (It's a loan in which the seller provides financing to help buyer)
  4. Balloon Mortgage definition... - โœ” โœ” A mortgage with a balloon payment
  5. Obligations of an owner in a listing agreement if he refused to sell when presented with a full offer... - โœ” โœ” He is liable for broker compensation
  6. Is undisclosed dual agency allowable by law? - โœ” โœ” No, you can lose your license.
  1. Earnest money deposit is a credit to whom - โœ” โœ” to the buyer
  2. Convert 3 mills to a decimal - โœ” โœ”.
  3. Loan origination fee is a debit to whom? - โœ” โœ” buyer
  4. What is prorated by day on a HUD 1? - โœ” โœ” Interest on an assumed mortgage
  5. What is the source of money for an FHA loan? - โœ” โœ” A qualified lending institution
  6. What is the role of a mortgage broker? - โœ” โœ” To find mortgage lenders for borrowers.
  7. What is true about the contract rules regarding printed form sales agreement? - โœ” โœ” Handwritten words take precedent over printed words
  8. What is a shares appreciation mortgage? - โœ” โœ” The

lender receives a share of capital gain at time of sale.

  1. Determine the value by the Income Approach formula - โœ” โœ” NET INCOME divided by RATE OF CAPITALIZATION
  2. Fiduciary responsibility in a property management contract is to the - โœ” โœ” lessor
  3. What is the formula for the Gross Rent Multiplier? - โœ” โœ” SALE PRICE divided by MONTHLY RENT
  4. All are federal income tax deductions for a homeowner except... - โœ” โœ” property management
  1. Special agent definition... - โœ” โœ” the type of agency in which the principal authorizes the agent to represent the agent in "one specific transaction or business activity"
  2. Which is not used to determine cost approach to estimate value?

-Quantity Survey Method

-Unit-in-Place Method

-Square Foot Method

-Gross Rent Multiplier Method - โœ” โœ” Gross Rent Multiplier Method