Pearson View Practice Test Part B

Which of the following elements MUST be included in a real estate contract in order for it to be legally valid?

The term "ad valorem" refers to which of the following areas of real estate?

In the course of a real estate transaction, a bill of sale would be the BEST document for transferring the ownership of which of the following items?

A lender is MOST likely to require a borrower to pay for private mortgage insurance in which of the following situations?

The terms alluvial, littoral, and riparian refer to which of the following property rights?

Assume that an entire calendar year's property taxes on land to be sold are due on December 32 and will be $1,500. If the closing on the sale will occur on September 15 and the seller pays for the day of closing which of the following entries for prorated taxes is CORRECT? (Use a 360-day year and 30-day months.)

A PRIMARY purpose of the Uniform Settlement Statement (HUD-1) is to:

Which of the following expenses of residential property ownership is deductible on an owner's federal income tax?

The Sherman Antitrust Act specifically prohibits which of the following activities in the course of a real estate transaction?

The involuntary alienation of real property is MOST likely to be seen when property title transfers by:

According to federal Fair Housing law, protected class status is MOST likely to apply to a:

A property owner asks a licensee to list a property and says, "I need $40,000 from this sale; your compensation will be anything you can get over that amount." This is an example of which of the following types of listings?

The BEST statement about the relationship between a property mortgage and a promissory note is that the mortgage:

In order to be valid, a contract for sale of real estate MUST include which of the following elements?

Property managers often have been granted a wide range of job-related authority to act on behalf of their principal. This is known as which of the following types of agency?

According to the common law of agency, a licensee has which of the following obligations to an individual who prefers to remain a customer rather than become a client?

According to basic contract law, unless there is a specific clause to the contrary, one effect of the sale of leased property is that the lease is:

The provisions of the Americans with Disabilities Act (ADA) are MOST likely to apply to landlords of which of the following types of property?

During an open house, a listing licensee receives three offers, one of which is substantially less advantageous to the seller than the other two. According to the common law of agency, the licensee MUST present:

A property owner lists a residence and specifically avoids telling the listing licensee about a leaking roof. The licensee notices water stains in the closet ceiling, but considers them old and never discusses them with either the owner or the buyer. The property is sold without disclosing this condition and the buyer sues for damages based on material misrepresentation. Do the seller and/or the licensee have any liability? Why or why not?

A newly licensed real estate licensee has entered into an independent contractor agreement with a firm's primary broker to work as a salesperson. Under this type of relationship, the firm is MOST likely to be responsible for paying which of the following licensee expenses?

When acting in a fiduciary capacity for a seller in a real estate transaction, a licensee MUST:

A buyer arranges for a $90,000 mortgage loan with an annual interest rate of 8% and a fixed monthly payment of $745. If the first loan payment is due 30 days after the loan origination date, how much of that payment will represent principal? (Use a 360-day and 30-day months.)

The illegal practice of redlining is MOST likely to be committed by which of the following professionals during the course of a real estate transaction?

In the event one party to a real estate sales contract wants to back out the other party may force the reluctant party to honor the terms of the contract through a legal process known as:

A CORRECT statement about compensation arrangements in listing agreements is that they are:

An investor's original investment of $252,000 produces a $974 weekly gross income from a property with monthly expenses of $2,535. The annualized return on this property is:

A CORRECT statement about discount points charged by a lender is that the points:

Which of the following financial arrangements represents and example of a real estate package loan?

Which of the following types of deeds provides the GREATEST protection against title defects for the grantee?