Download Bob Brooks Real Estate Final Exam – Complete 100 Q&A Edition. and more Exams Real Estate Management in PDF only on Docsity!
Bob Brooks Real Estate Final Exam –
Complete 100 Q&A Edition.
A broker is responsible for violations of the License Law by their agents:
a. At all times b. Only if they work in the main office with them c. If they were aware of their actions d. If they were unaware of their actions - Correct Answer: ✔️ ✔️ c. If they were aware of their actions
The 1988 Fair Housing Amendments Act added which of the following two classes?
a. Marital status and handicap b. Marital status and familial status. c. Age and handicap. d. Handicap and familial status. - Correct Answer: ✔️ ✔️ d. Handicap and familial status.
Sally owned Lot A and Lot B behind her. She sold Lot B to Fred and gave him a servitude so that he would have ingress and egress for Lot B. Sally's property is now:
a. the dominant estate b. the servient estate c. an encroached estate d. encumbered - Correct Answer: ✔️ ✔️ b. the servient estate
The amount of commission paid to a broker is determined by:
a. The Board of Realtors b. The Real Estate Commission c. Negotiation d. The State law - Correct Answer: ✔️ ✔️ c. Negotiation
How many sections in a township?
a. 12 b. 24 c. 36 d. 48 - Correct Answer: ✔️ ✔️ c. 36
A contract which has no legal force or effect is:
a. Unenforceable b. Voidable c. Valid d. Void - Correct Answer: ✔️ ✔️ d. Void
A construction loan is considered to be:
a. A Take Out Loan. b. A Low Risk Loan. c. An Interim Loan d. A Secondary Loan - Correct Answer: ✔️ ✔️ c. An Interim Loan
Which of the following is NOT included in Truth-In-Lending?
a. Attorneys fees b. Installment payments c. Finance charges d. Amount of down payment - Correct Answer: ✔️ ✔️ a. Attorneys fees
The total amount of money remaining after all expenditures have been paid is:
a. Appreciation b. Leverage c. Cash flow d. None of the above - Correct Answer: ✔️ ✔️ c. Cash flow
An oral contract for the sale of real estate would NOT be enforceable because:
a. It would be too hard to decide who is telling the truth
False - Correct Answer: ✔️ ✔️ False
The personal choice of people for one area over another is:
a. Amenities b. Situs c. Plottage d. Reconcile - Correct Answer: ✔️ ✔️ b. Situs
A buyer makes an offer to purchase on a standard purchase agreement. This is binding when:
a. Seller signs b. Seller signs and notifies buyer of that fact. c. Agent initials for seller. d. When it is delivered and accepted. - Correct Answer: ✔️ ✔️ b. Seller signs and notifies buyer of that fact.
If a lender holding a note for $58,000 sold it to a second lender for $50,000, his action would be known as:
a. Refinancing b. Discounting c. Depreciating d. Hypothecating - Correct Answer: ✔️ ✔️ b. Discounting
Which of the following would NOT terminate a lease?
a. Death of the lessor. b. Agreement between parties. c. Breach of contract. d. Expiration of lease term. - Correct Answer: ✔️ ✔️ a. Death of the lessor.
The Civil Rights Act of 1866 prohibits discrimination on:
a. Religion b. Nationality c. Race d. Sex - Correct Answer: ✔️ ✔️ c. Race
What are the usual taxes on common elements in a condominium?
a. paid by the tenants' association b. prorated along with taxes on individual units c. paid by the developer d. no taxes are charged on common elements - Correct Answer: ✔️ ✔️ b. prorated along with taxes on individual units
Discount Points are figured on the:
a. Selling Price b. Loan Balance c. Salary of buyer d. None of the above. - Correct Answer: ✔️ ✔️ b. Loan Balance
Procedures for title transfer:
a. Differ widely throughout the country b. Are the same all over the country. c. Differ only in common law states. d. Are always the same in common law states. - Correct Answer: ✔️ ✔️ a. Differ widely throughout the country
Which is NOT a characteristic of land?
a. Permanent and indestructible b. Immobile c. Unique d. Natural - Correct Answer: ✔️ ✔️ d. Natural
Monthly payments for a particular loan are figured on a 25 year amortization schedule. However, the loan is due in full after five years. What type of loan is this?
a. Open-end mortgage. b. Variable rate mortgage. c. Partially amortized loan.
All of the following are common ways to measure land EXCEPT:
a. Square foot b. Metes and Bounds c. Front foot d. Acre - Correct Answer: ✔️ ✔️ b. Metes and Bounds
Concerning fiduciary responsibilities, the following statement, "The agent agrees to obey any lawful instruction from the principal in the execution of the transaction that is the subject of the agency", refers to
a. Disclosure b. Loyalty c. Obedience d. Confidentiality - Correct Answer: ✔️ ✔️ c. Obedience
All of the following are TRUE about advertising EXCEPT which?
a. Advertising by salespeople can be by phone number alone. b. The salesperson's phone number can be used in the ad. c. Salespeople can advertise their own personal real estate for sale. d. The company name and phone number may be larger in ad than the salesperson's name and phone number. - Correct Answer: ✔️ ✔️ a. Advertising by salespeople can be by phone number alone.
Laws which regulate construction and building standards within an area are called:
a. Building liens b. Building codes c. Zoning ordinances d. Construction codes - Correct Answer: ✔️ ✔️ b. Building codes
The two things about the Truth-In-Lending Act that real estate licensees should be most aware of are:
a. Discount and carrying charges b. Finance Charge and Annual Percentage Rate
c. Disclosure and discount d. Monthly installment and rescission - Correct Answer: ✔️ ✔️ b. Finance Charge and Annual Percentage Rate
An agent owes his principal the duty of:
a. Loyalty to the principal's interest b. Obedience to the principal's legal instructions c. Accountability d. All of the above - Correct Answer: ✔️ ✔️ d. All of the above
Real estate brokers are allowed, under the provisions of the License Law, to do which of the following?
a. Act as a public conveyancer b. Give legal advice or opinions c. Prepare documents fixing and defining the legal rights of parties to a transaction d. Real estate brokers are not allowed to practice law unless they are a duly-licensed attorney. - Correct Answer: ✔️ ✔️ d. Real estate brokers are not allowed to practice law unless they are a duly-licensed attorney.
Escalator clauses in leases provide for:
a. Pass through of some expenses to tenant. b. Landlords right to raise rent at any time. c. Extending lease term. d. Landlords right to remove elevators. - Correct Answer: ✔️ ✔️ a. Pass through of some expenses to tenant.
An abstract of title:
a. Would show all encroachments on property. b. Insures clear title. c. Is a history of the property in the public record. d. Provides actual notice of all hidden defects. - Correct Answer: ✔️ ✔️ c. Is a history of the property in the public record.
c. Graduated lease d. Participation lease - Correct Answer: ✔️ ✔️ a. Gross lease
The idea that a property's value is safer when surrounded by similar properties is the principle of:
a. Substitution b. Progression c. Regression d. Conformity - Correct Answer: ✔️ ✔️ d. Conformity
An abstract of title shows:
a. Devises b. Foreclosures c. Liens d. All of the above. - Correct Answer: ✔️ ✔️ d. All of the above.
The chain of title is broken between a previous owner and the present owner. To convey the title, the following will probably be required:
a. title inspection b. quiet title suit c. contrct for deed d. bill of sale - Correct Answer: ✔️ ✔️ b. quiet title suit
A real estate agent may give an opinion as to the sales price of real estate for the purpose of a prospective listing or sale, as long as:
a. It is not referred to as an appraisal. b. The seller promises to list their property for no less than the price opinion. c. The seller promises to accept no less than the price opinion, regardless of the appraisal price. d. The price opinion is equal to the appraisal price. - Correct Answer: ✔️ ✔️ a. It is not referred to as an appraisal.
A closing which is handled by one agent being responsible for collecting all signatures, money and documents WOULD be called:
a. Act of sale closing. b. Escrow closing. c. Settlement meeting. d. Consideration. - Correct Answer: ✔️ ✔️ b. Escrow closing.
RESPA was enacted in 1974 for the following purpose:
a. To assure proper disclosure is always given to the buyer concerning interest rate on a new note. b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers. c. To assure full disclosure is always made in regard to financing on FHA and VA loans. d. To allow lending institutions to charge discount points and have all this fully disclosed at the time of closing of the sale. - Correct Answer: ✔️ ✔️ b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers.
A principal would be which of the following?
a. Either the seller or the buyer b. Either the broker or the agent c. The MREC d. Either agents or clients - Correct Answer: ✔️ ✔️ a. Either the seller or the buyer
Concerning fiduciary responsibilities, the following statement, "The agent MUST put the interest of the principal above the interest of the agent or any third party", refers to:
a. Confidentiality b. Obedience c. Loyalty d. Full accounting - Correct Answer: ✔️ ✔️ c. Loyalty
The borrower has the right to redeem the property after it has been sold to another at the sheriff's sale. This is called the:
a. Townships b. Meridians c. Sections d. Lot and Block Numbers - Correct Answer: ✔️ ✔️ d. Lot and Block Numbers
The relationship between the principal and the broker is covered by the:
a. Law of Agency b. Fiduciary agreement c. Statute of Accountability d. Statute of Frauds - Correct Answer: ✔️ ✔️ a. Law of Agency
The Governor has the authority to appoint Commissioners to serve on the Mississippi Real Estate Commission.
True False - Correct Answer: ✔️ ✔️ True
When an agent makes non-factual statements about the property that could reasonably be recognized as exaggeration, it is known as:
a. Imputed disclosure b. Puffing c. Misrepresentation d. None of the above - Correct Answer: ✔️ ✔️ b. Puffing
Which of the following is shown on an estoppel certificate?
a. Unpaid balance and interest rate on mortgage. b. Time of foreclosure c. Novation of the seller. d. Any defects in the title. - Correct Answer: ✔️ ✔️ a. Unpaid balance and interest rate on mortgage.
The highway department has just finished improving the culverts in a residential subdivision. This WILL most likely be paid for through a:
a. Bond issue
b. Federal funds c. Special assessment d. General Tax - Correct Answer: ✔️ ✔️ c. Special assessment
The lender of mortgage money is the:
a. Mortgagor b. Vendee c. Trustee d. Mortgagee - Correct Answer: ✔️ ✔️ d. Mortgagee
Discount points on FHA loans are a form of:
a. Discount to the seller. b. Insurance coverage c. Prepaid interest d. Reserve for insurance and property tax payments. - Correct Answer: ✔️ ✔️ c. Prepaid interest
The relationship of the value of property to its monthly rental income determines the:
a. Capitalization rate b. Recovery rate c. Recapture rate d. Monthly gross rental multiplier. - Correct Answer: ✔️ ✔️ d. Monthly gross rental multiplier.
Real estate commissioners in Mississippi are:
a. Elected from each congressional district b. Appointed by the Secretary of State c. Elected from each Parish on a rotating basis d. Appointed by the Governor - Correct Answer: ✔️ ✔️ d. Appointed by the Governor
Metes and Bounds refer to:
a. Measurement by angles and distances from a specific point.
a. Within 24 hours b. Within 48 hours c. As soon as they next see their responsible broker in person d. Immediately upon receipt thereof - Correct Answer: ✔️ ✔️ d. Immediately upon receipt thereof
Zoning laws represent a government's:
a. Police powers b. Variance power c. Eminent Domain d. Development power - Correct Answer: ✔️ ✔️ a. Police powers
A parcel of land six miles wide and six miles long is:
a. One acre b. A section c. A range d. A township - Correct Answer: ✔️ ✔️ d. A township
In regard to notice of charges, hearings, suspension, or revocation of a license, the licensee is notified at least 15 days prior to a hearing by registered mail.
True False - Correct Answer: ✔️ ✔️ True
Jane and Mary purchase land as equal partners. Mary has two children. If Mary dies before Jane, her share goes to Jane. What type arrangement do Mary and Jane have?
a. Tenancy in common. b. Fee simple absolute. c. Joint tenancy. d. Fee simple conditional. - Correct Answer: ✔️ ✔️ c. Joint tenancy.
A broker that fails the exam two times MUST wait ______ months to retake the licensing exam.
a. One b. Two c. Three d. Six - Correct Answer: ✔️ ✔️ d. Six
In an option contract who makes a promise?
a. Buyer b. Seller c. The licensee d. The listing broker. - Correct Answer: ✔️ ✔️ b. Seller
Title acquired by adverse possession MAY be perfected by:
a. recording within 180 days b. marketing or selling the property c. quiet title action d. prescription - Correct Answer: ✔️ ✔️ c. quiet title action
Foreclosure where there is no court action is an example of:
a. Confession of judgment b. Executory process. c. Judgment. d. Ordinary. - Correct Answer: ✔️ ✔️ b. Executory process.
Who is the real estate agent is employed by?:
a. The sub-agent b. The client c. The agency d. None of the above - Correct Answer: ✔️ ✔️ b. The client
All of the following pertain to a fixture EXCEPT:
a. Agreement of Parties b. Method of Attachment c. Intention of the Parties d. Furniture - Correct Answer: ✔️ ✔️ d. Furniture
A "team" or "group" shall mean a collective name used by two or more active real estate licensees who represent themselves to the public as bing part of a single entity which is organized with the ______________________________.
a. Verbal approval of a principal broker b. Written approval of a principal broker c. Written approval from the MREC d. Verbal approval from their clients - Correct Answer: ✔️ ✔️ b. Written approval of a principal broker
What are laws regulating the selling of shares in real estate investments across state lines is called?
a. Realtors' laws b. MLS laws c. Blue Sky laws d. None of the above - Correct Answer: ✔️ ✔️ c. Blue Sky laws
Brokers shall retain readily available and properly indexed records, including bank accounts records, for a period of five years.
True False - Correct Answer: ✔️ ✔️ False
A listing agreement creates a:
a. Special agency b. General agency c. Universal agency d. Agency with an interest - Correct Answer: ✔️ ✔️ a. Special agency
Elevators, hallways, tennis courts, etc. in a condominium which are used by all homeowners are:
a. common elements b. jointly owned by all homeowners c. owned as tenants in common
d. All of the above. - Correct Answer: ✔️ ✔️ d. All of the above.
Owner financing where the title remains with the purchaser is called a:
a. Budget Mortgage. b. Purchase Money Mortgage. c. Bond for Deed. d. Graduated Mortgage. - Correct Answer: ✔️ ✔️ b. Purchase Money Mortgage.
On a river such as the Mississippi, the property line is the:
a. Middle of the river b. Waters edge c. Lands edge d. None of the above. - Correct Answer: ✔️ ✔️ b. Waters edge
Brokers who accept any monies on behalf of a client or customer in connection with the sale or rental of real estate shall open and maintain a(n) ____________ in a financial institution in the state of Mississippi.
a. General operating account b. Escrow account c. Both of the above d. Neither of the above - Correct Answer: ✔️ ✔️ b. Escrow account
Licensees acting in the capacity of an agent shall insure that their respective principal party signing any document in a real estate transaction is provided a copy of the document immediately after the signing of the document.
True False - Correct Answer: ✔️ ✔️ True
VA loans can be originated for: Select one: a. Commercial properties b. All owner occupied dwellings c. All financially qualified individuals
