Download Louisiana Real Estate Practice Exams (National) Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
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Real property can be converted to personal property by: - - - correct answer ✅severance Legal descriptions using the government survey system are NOT generally used in: - - - correct answer ✅the original 13 states Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. In many states, the common law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with property. In others, all water rights are controlled by the state under the doctrine of: - - - correct answer ✅prior appropriation A tenant rented an apartment, signing a 15-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? - - - correct answer ✅Tenancy at will A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in
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case he dislikes others who might move next door in the future. What should he give his neighbor? - - - correct answer ✅A license A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given: - - - correct answer ✅constructive notice The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, - - - correct answer ✅his undivided interest passes to his heirs A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store? - - - correct answer ✅Conditional use permit or zoning variance An escheat occurs when: - - - correct answer ✅a property owner dies without heirs or a valid will
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A formal appraisal will ALWAYS be REQUIRED when the: - - - correct answer ✅lender wants to sell the mortgage to the secondary market A competitive market analysis takes into consideration: - - - correct answer ✅square footage of the subject property When compiling a competitive market analysis, a broker would look for comparable properties that: - - - correct answer ✅were located near the property being listed Three identical homes in a neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which would have sold for the lowest price?
correct answer ✅The first sold A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest: - - -
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correct answer ✅a competitive market analysis to determine the property's value A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to: - - - correct answer ✅demand immediate payment of the entire note In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT: - - - correct answer ✅more variety of loan programs available The FHA functions MOST like: - - - correct answer ✅an insurance company According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the: - - - correct answer ✅prepayment penalties and rebates
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A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with: - - - correct answer ✅the builder To what party or parties does the broker owe the fiduciary duty of care? - - - correct answer ✅the party or parties employing the broker The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that: - - - correct answer ✅he is no longer the listing agent An exclusive right to sell listing obtained by a broker associate belongs to: - - - correct answer ✅the employing broker only
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An agency relationship between a property owner and a property manager is usually created by: - - - correct answer ✅a management agreement A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is: - - - correct answer ✅an agent to the broker and a subagent to the principal When a principal authorizes an agent to perform a particular act or transaction, it is an example of a: - - - correct answer ✅special agency Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT: - - - correct answer ✅indemnification A licensee is listing a property in a known flood plain. The seller flatly denies that the structure and the property have ever been flooded. What is the licensee required to do in this situation? - - - correct answer ✅Inform the seller of the legal obligation to disclose facts regarding flood plains
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dangerous levels of lead. Because of this, some Federal agencies, such as FHA, - - - correct answer ✅require the buyer to acknowledge disclosure of the presence of any known lead paint State laws differ on whether a buyer is entitled to know about: - - - correct answer ✅a suicide that occurred in the house last year Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the following would be the most appropriate way for the listing agent to respond? - - - correct answer ✅If you feel it is in your best interest, please do so If leased premises become unusable for the purpose state in the lease, the tenant may have the right to abandon the premises. This action is called: - - - correct answer ✅constructive eviction A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was
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reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if: - - - correct answer ✅the owner withdraws the counteroffer before it is accepted A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable? - - - correct answer ✅The seller is heavily under the influence of alcohol at the time of signing A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in the sales contract. In this situation, if the seller takes the appliances with him, what recourse does the buyer have? - - - correct answer ✅The buyer may sue the seller for specific performance Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house
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have? - - - correct answer ✅Exclusive agency listing A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when: - - - correct answer ✅the seller accepts the offer A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the listing broker at the other company? - - - correct answer ✅Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer Antitrust laws prohibit competing brokers from all of the following EXCEPT: - - - correct answer ✅receiving compensation from both the buyer and the seller
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Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising? - - - correct answer ✅"Catholics preferred" A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as: - - - correct answer ✅steering During the listing presentation, the seller questions the amount of commission to be paid and is told: - - - correct answer ✅the amount of commission is negotiable An equal housing opportunity notice MUST be: - - - correct answer ✅displayed in the brokerage office Earnest money should be deposited into a trust account: - - - correct answer ✅in a timely manner, according to state laws
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A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood. The salesperson did not show them the properties because they were priced under $90, and had only two small bedrooms. Did the salesperson act appropriately and why or why not? - - - correct answer ✅No, because it is appropriate to show any property for which the buyer is qualified A managing broker can be held responsible for: - - - correct answer ✅all real estate activities of salespersons An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000? - - - correct answer ✅$90, A home buyer is obtaining a fully amortized loan in the amount of $140,000. The savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%. To the nearest dollar, what is the
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difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.) - - - correct answer ✅$ A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points. How much money does the buyer need up front to make the purchase? - - - correct answer ✅$26, On January 15, a seller paid $960 in annual property tax for the current calendar year. A buyer is purchasing the house with the closing set for March 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month. - - - correct answer ✅$ If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5- 1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford? (BE SURE TO USE THE AMORTIZATION TABLE.) - - - correct answer ✅$176,
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To be valid, every deed must: - - - correct answer ✅be executed by the grantor The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing? - - - correct answer ✅Credit buyer $110,000; debit seller $110, In MOST states, foreclosed property is sold through: - - - correct answer ✅public auction For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income? - - - correct answer ✅Mortgage loan interest, local property taxes, mortgage loan origination fees If a landlocked property owner fails to acquire a voluntary agreement to access his property from the nearest public road, he may get such access by an: - - - correct answer ✅easement by necessity
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A joint tenant may transfer his or her interest under which of the following circumstances? - - - correct answer ✅At any time, without permission or approval, but the purchaser will not be a joint tenant An easement by necessity is generally utilized to: - - - correct answer ✅grant access to a landlocked landowner What is a method of land description that identifies a parcel by its shape and boundaries? - - - correct answer ✅Metes and Bounds If Bill wished to sell his golf clubs to John for use at his new golf course property, he should use what document? - - - correct answer ✅Bill of Sale After unsuccessful negotiations, Joe went to court to gain regular access to his property. The judge likely granted Joe a (an): - - - correct answer ✅personal easement in gross
