Free Real Estate Practice Exam Questions (May 2024) 100+

National Real Estate Exam

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Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?

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A seller tells the listing agent that her home was treated for termites five years ago, and that there are no termites now. Before listing the property, the agent should

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Which of the following consumers would most likely qualify and be able to derive the most benefit from a reverse mortgage?

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The best way to determine fair value.

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A property's market value is $350,000. The assessment rate for the house is 15% with 27.50 mills. Find the annual property taxes.

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A parcel of real property that has an easement over another piece of property is best described as:

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Which of the following are the main participants in real estate markets?

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Which answer includes 3 actual types of business structures? Choose the best answer.

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Tony and Taylor are two unmarried individuals who own property with equal interests and a right to survivorship. Which of the following forms of ownership would Tony and Taylor most likely have?

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Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?

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What is the best definition listed for the term: “conventional loan?”

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What form of legal land description consists of principal meridian lines that cover most states in the US, running north to south and baselines running east to west?

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What type of ownership model is used for vacation real estate in which multiple purchasers own allotments of usage, typically in one-week increments, for the same property?

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Even after an offer has been accepted and signed (by all parties), the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?

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Antitrust laws prohibit competing brokers from all of the following except:

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Is replacement cost and reproduction cost the same thing and if it is different, what is the difference?

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What best describes the type of agency typical in property management - in which an agent has limited power?

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What is the agency responsible for the enforcement of the Fair Housing Act?

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A buyer gave a broker a written offer to purchase property, which contained a 14-day acceptance clause along with a $3,000 deposit. On the seventh day, before acceptance by the seller, the buyer notified the broker that they were withdrawing their offer and asked for the return of the $3,000 deposit. Which of the following statements are true?

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After smoking, this is the second leading cause of lung cancer in the United States. A naturally occurring gas that forms in rocks, soil, and water.

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State laws differ on whether a buyer is entitled to know about:

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Generally speaking, what happens when the supply of available houses in an area decreases significantly?

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If a seller rejects a written offer made by a buyer, changes the terms of the offer, and has the new offer delivered to the buyer, it is considered what?

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The statute of frauds, applies to

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Which of the following statements does NOT correctly describe a fiduciary?

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Which of the following would NOT apply to the income approach in the valuation process?

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Josh agrees to represent Susan in the sale of her home. The listing contract states that Josh will receive a fee of $15,000 from Susan at closing, regardless of the sales price. Is this a legal and a valid form of compensation?

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What type of court handles the analysis and transfer of real estate or general estate assets of a deceased person (without a will)?

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Which of the following would be an example of a deed restriction?

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Three identical properties in a suburban neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which property would have sold for the lowest price?

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There are three main forms of depreciation, what are they?

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If someone is unlawfully forced to execute a contract it is called what?

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Often required for mortgages, property insurance for a home is commonly called:

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A lender's refusal to lend money to potential homeowners attempting to purchase property located in predominantly minority neighborhoods is

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Unlike apartments, which are leased by their tenants, condominium units are owned outright. A condominium is often shortened to

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Steve (a real estate agent of five years) was at his local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. What should Steve do?

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The “time is of the essence” contract clause in real estate contracts generally has to do with what?

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Appraiser Leo was hired to prepare a feasibility study for a 12-unit apartment complex in which the owner is considering putting in a swimming pool. Which basic principle of appraising should Leo use?

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In most cases, a tenant in an apartment holds:

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Which of the following fits the description? "A mortgage loan available for military service members, veterans, and eligible surviving spouses; which often comes with better terms than a traditional mortgage."

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During the listing agreement a commission of 6% is established. The house is sold for $250,000. What is the commission?

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What is the difference between void and voidable contracts? Choose the best answer.

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What is the final step of the real estate appraisal process in which the appraiser weighs each appraisal approach and determines which one is most relevant and should be used?

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The fact that land has a number of important uses is the basis for what essential element of value?

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Which of the following enforces all federal environmental rules and regulations?

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Restrictive covenants, are also known as

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What is the test done to locate where to place a septic system?

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A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers.

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Typically a warranty deed contains how many covenants?

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A tenant rented an apartment, signing a 16-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of type of lease does the tenant have?

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What best describes an agency relationship where an agent has legal authority to act on behalf of the principal?

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Which of the following best describes the term "encroachment?"

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Which of the following best describes the acceleration clause?

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A property owner wishes to build a neighborhood grocery store in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission to build the store?

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Which type of property would an appraisal use a depth table to estimate the property value?

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In a typical real estate market, if the demand for commercial office space declines and the supply of office space also declines at the same ratio, market rent per square foot should:

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A real estate commission is usually based on the:

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Choose the best answer. A lawsuit for inverse condemnation may be brought by:

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Most real estate sales contracts include contingency clauses, making them what?

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A property owner enters into an exclusive agency listing with an agent. The seller ends up obtaining a buyer for the house themselves. Is the agent entitled to compensation?

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A bilateral contract is one in which

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A property's market value is $400,000. The assessment rate for the house is 25% with 22.75 mills and a $25,000 property tax deduction. Find the annual property taxes.

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What specific formula would be used to estimate the value of a property using the income approach?

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Real property can be converted to personal property by

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Which business structure traditionally features a board of directors?

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Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off?

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The majority of homes before _______ used lead paint.

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In real estate, a deed is best defined as:

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Which situation is legal under the Federal Fair Housing Act of 1968?

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What is a legally enforceable obligation that arises from one or more parties due to the parties actions, conduct, or circumstances?

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Which of the following real estate contract clauses establishes order of priorities of financial claims (liens)?

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Which of the following statements is TRUE about trusts and trustees?

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An interest in real property which is held for the duration of the life of a designated person is called a

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Tenants by the Entirety and Community Property both generally pertain to

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In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in

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A claim that has the appearance of having valid title, but in reality, the person either does not hold actual title, or there is a significant defect in the written documents supporting title, that makes it invalid. This an example of which legal concept:

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What hazardous substance is an odorless, colorless gas that can cause death within hours of inhalation?

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Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. This type of lease is called a:

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What is the act of mixing the client’s funds with the broker’s own funds? This can be both legal and illegal depending on the state and circumstance.

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If a leased premises becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called?

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Richard is renting property from Becky. Richard is on a month to month lease agreement. This past month he did not pay his rent. Richard's interest would be classified as:

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The deed that offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land.

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The amount borrowed is called the:

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If a legal description is too long to include in the body of a sales contract, a real estate professional should do what?

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Utilizing the 28/36 rule, if Rebbecas gross income is $4,500 a month, she would need to spend less than ______ in housing costs a month to qualify for most loans.

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A contract for the sale of real estate that does not state the consideration to be paid for the property and is not signed by the parties is considered what?

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Which of the following BEST describes a contract that is voidable?

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Assuming there are no extra fees, and the broker is representing the buyer and the seller, what was the final sales price of a property if the commission rate was 5.5% and the broker received $11,000.

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There are three different main approaches that appraisers use while they make an appraisal. What are they?

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Earnest money should be deposited into a trust account:

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An elderly man in a nursing home, has no family and is suffering from Alzheimer’s. Because of his Alzheimers, he doesn’t remember much. Eventually, he passes away in his sleep. There is no will for the man, and again he has no family. So what happens to the money left in his savings account and his old farm that has been left untouched since he entered the nursing home?

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A tenant rented an apartment, signing a 12-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?

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If a contract has prepayment penalties, they can be found in which real estate contract clause?

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An offer to purchase real estate becomes a contract when it is signed by the

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Which of the following situations would a percentage lease be most commonly used in?

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When contracting parties have signed a contract and both parties have done all they promised to do, it is called this:

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At the very minimum advertising property or services by real estate professionals, should include what?

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An individual seeking to be excused from the requirements of a zoning ordinance needs a

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Which of the following can be achieved by dividing the price of the property by the rent that is produced?

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A seller is asked whether any known plumbing defects exist on her property. She replies that to the best of her knowledge there are no plumbing defects. However, unknown to her the pipes are corroded and due for replacement. Is the seller in violation of her disclosure responsibilities?

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Which of the following best describes the term "emblements?"

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Under these rights, all landowners whose properties adjoin a river or stream, have the right to make reasonable use of it as it flows through or over their properties.

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What determines who pays for what and how much at closing?

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All of the following will void an offer except

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The execution date or date executed is the day a contract is signed. The effective date is what? Choose the best answer.

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Philip has a contract with his neighbor Jessica for lawn service. Philip can no longer mow the lawn due to an ankle injury. Paul, Jessica's other neighbor, agrees to carry out the terms of Philips contract. In order to do this, Jessica must substitute Philip's name with Pauls on the contract. What is this an example of?

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In real estate, alienation is best described as:

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In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring title to property. Within deeds, covenants are:

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The owner of a condominium has the use of many facilities there, including a pool. Under the typical condominium arrangement, the facilities are owned by

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The type of easement that is a right-of-way for a utility company's power lines is what?

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A buyer was negotiating the purchase of a lot to build a new family house, the seller indicated that the land was firm enough to support the construction of a building when, in fact, the seller knew it was not. The contract is

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Requires public accommodations to remove barriers in existing buildings such as adding braille markings to elevator buttons, is a requirement of which law?

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Closing is always the ____ step in executing a real estate transaction.

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Who is most likely to win a suit for specific performance?

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An appurtenant easement has several ways of legal termination. Which of the following is NOT a valid way to terminate an easement?

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A property owner acquired the ownership of land that was deposited by a river running through his property by what?

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A property owner enters into a listing agreement with an agent. Another agent obtains a buyer for the house, and the first agent does not receive a commission. The listing agreement between the first agent and the property owner was probably

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Complete the following statement. The rescission of a contract occurs when:

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Enacted in 1974, which of the following is a regulation that aims to give all legal individuals an equal opportunity to apply for loans?

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Which of the following is a private land-use control?

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Which of the following best describes a blind offer?

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The legal principle under which a person who does not have legal title to a property acquires legal ownership based on the continuous occupation of the property.

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Which of the following real estate contracts is a service contract?

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Which of the following would be classified as “consideration” in a real estate contract?

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What is the LAST requirement in the process of offer and acceptance that creates an executory contract?

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What is best defined as, a document in which a property owner contracts with a real estate agent to find a buyer for the owner's property?

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Which of the following legal concepts requires real estate listings to be in writing?

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What is the procedure used by a public or private entity with the powers granted to take privately owned real estate?

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Who dictates trust accounts and when to deposit earnest money or other trust funds?

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Which of the following contracts would best be described as a contract in which only one party makes a promise to perform an action?

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A man named Troy lives in California, but owns property across the U.S. He owns property in cities like Pittsburgh, Philadelphia, and D.C. Troy decides he wants to sell his property in D.C. Instead of traveling all the way to D.C. to complete all the paperwork, he calls up his buddy Tony. Troy authorizes Tony, who lives in D.C., to sell his property for him. Troy gives Tony a/an:

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Which term refers to the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans?

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Typically a trust is a _____ -party relationship.

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When talking about business and professional ethics, as a licensed real estate agent, it is important to make sure:

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A homeowner hired a construction company to build a swimming pool at his home. The homeowner failed to pay the bill once the work was completed and the construction company filed a lien to obtain payment of the debt. The encumbrance created is called a:

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What is the proper procedure for changing a contract that already has become binding?

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The period over which a property may be profitably utilized is called its:

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Researching recently sold homes in the area and homes that haven't been sold in the area and comparing their prices. Is an example of

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A real estate contract can be rescinded because of what?

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It is the _____ duty to explain the purchase agreement and to not mislead any parties.

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What form of legal land description uses a plat map?

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The Bundle of Rights include:

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An individual owned three acres of land. When she sold one acre to her friend, she reserved for herself and family an appurtenant easement over the friend's land for ingress and egress. The friend's land is what?

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Market value is

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What is a one-of-a-kind contract that is solely between the seller and the buyer. In this arrangement, the seller gives the buyer the option to purchase property at a given price for a set period?

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The term "Licensee," is commonly used in real estate law. A licensee is just:

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Local zoning ordinances often regulate all of the following except

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What is the difference between a testate estate and an intestate estate?

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What is the key difference between a Less than Freehold Estate and a Freehold estate is

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Which of the following statements about water rights is true? Choose the best answer.

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Traditionally real estate agents are paid through a fee paid for performing a transaction, called a

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Complete the statement and make it factually accurate. “In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. In lien theory states:

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In order for a month-to-month tenancy to be legally valid which of the following MUST the contract include?

154 / 200

As a general rule of thumb ALL written offers must be:

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A buyer wants to be represented by several different agents while looking at various properties. This is an example of what?

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What is the measurement or boundary between a plot of land or a building and the road onto which the plot or building fronts?

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Fees that the buyer pays to close the deal are called:

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By which of the following can you not lose title to your property involuntarily?

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A housing development advertising its units being only available to people over 55 is what?

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Which of the following is a common example of real estate police power?

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Which of the following consumers would most likely qualify and be able to derive the most benefit from refinancing their mortgage?

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Joint tenants with a right of survivorship means

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The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain. Eminent Domain is commonly used for:

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A mortgagor is also known as the:

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Is crossing out part of a printed contract allowed and legally enforceable?

166 / 200

Brokerages and real estate agents across America connect using a

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Used in connection with CERCLA and the creation of The Superfund; Retroactive liability means:

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What is the illegal action or practice of lending money at unreasonably high rates of interest?

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Which of the following would MOST likely be considered a fixture?

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What is an item on a property that is installed by the tenant, and is related to the tenant's business classified as?

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Fee packing, equity stripping, and balloon payment abuses are all examples of what?

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What is the difference between commingling and conversion in real estate?

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Which of the following would NOT be covered under a builder's new home warranty?

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Buyer Dan is considering buying a lot to build a single family residence. Dan hires an appraiser to appraise the lot. Which approach to value would the appraiser choose to complete the task?

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Altering a written document by improperly signing someone else's name to an instrument is what?

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What is the difference between the market value of your home, and the amount you owe the lender who holds the mortgage?

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If a buyer refuses to go ahead with a purchase of property which he has signed a contract, what usually happens to the earnest money?

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When you buy real property, you gain several different kinds of rights. One of which are rights called "subsurface rights." What are subsurface rights?

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Commingling is the opposite of what?

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What is Ginnie Mae’s primary responsibility?

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What is the document that defines the relationship between the broker and the seller?

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Choose the best answer. Which of the following is an example of a Special Use property?

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Your client signs a contract to buy a house and the seller refuses to sell the house at the very last minute. Your client still wants the house. What should your client do?

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What is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death?

185 / 200

Why is an oral lease for two years not generally enforceable in law?

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According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a company have to call the consumer if they made an inquiry with the company?

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A senior housing development may refuse to rent to families if what?

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What is the government issued plan to guide the long-term physical development of a particular area?

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In an offer to purchase property, the buyer states, "If we cannot obtain a mortgage loan for 4.5 percent or less, we will not purchase the property and expect the earnest money to be refunded in full." This is an example of what?

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During your time as agent you will run into many different types of people from areas across the world. Closing is called many names depending on which region of the U.S you are from. Which of the following is NOT a legal name for closing?

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A lease agreement where the tenant has the right to buy the property within a specified period of time is called what?

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Which of the following is an economic characteristic of real estate?

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When you buy real property, you gain several different kinds of rights. One of which are rights called "surface rights." What are surface rights?

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The Latin phrase ad valorem comes up often when talking about property taxes. What does ad valorem mean?

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What of the following is required by the Americans with Disabilities Act(ADA)?

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Title III of the Americans with Disabilities Act (ADA) impacts which type of property?

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A real estate agent advertised a home for $250,000. When a Chinese couple asked the agent for the price of the house. The agent told them the seller wanted $260,000 instead. Under the federal Fair Housing Act of 1968, such a statement is

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Purchase agreements come big and small, and are a crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement?

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Which of the following would not be considered appurtenant?