Real Estate Knowledge Quiz

1) A listing agreement generally:

a) Compels the owner to convey the property at the listed price
b) Compels the broker to effect a sale of the property
c) Authorizes the broker to find a buyer for the property
d) Becomes a legally binding contract if signed by a buyer

2) Leasehold estates do NOT include a(n):

a) tenancy at will
b) holdover tenancy
c) estate for years
d) remainder estate

3) The homestead tax exemption is deducted from the:

a) market value of the property
b) assessed value of a property
c) sale price of a property
d) total cost, including all improvements

4) A mortgage:

a) creates a lien
b) is a contract
c) must be in writing
d) has all the above characteristics

5) An FHA loan is a:

a) Government-insured loan
b) Government-guaranteed loan
c) private loan that is insured with mortgage insurance
d) loan in which the mortgagor is protected against financial loss in the event of default

6) Loss of value for any reason is called:

a) transferability
b) substitution
c) depreciation
d) economic obsolescence

7) The most comprehensive interest in real property that an individual may possess is a(n):

a) estate for years
b) life estate
c) remainder estate
d) fee simple estate

8) Which estate includes the right of survivorship?

a) Joint tenancy
b) Fee simple estate
c) Tenancy in common
d) Tenancy for years

9) A warehouse measures 720 feet by 500 feet and rents for $118,000
a month. What is the rent per square foot per month?

a) $0.25
b) $0.33
c) $3.05
d) $3.96

10) The maximum amount of profit that may be excluded from taxation on the sale
of a home for a qualifying couple, filing separately, is:

a) 0 because profit may be only deferred
b) $125,000
c) $150,000
d) $250,000

11) Which is NOT a requirement under RESPA?

a) Use of the HUD Form 1 by the closing agent
b) A copy of the HUD information booklet to the mortgage applicant at time of application or within three business days
c) Give mortgage applicant a list of competing lenders so that the consumer can comparison shop for the best rate
d) Give mortgage applicant an estimate of settlement costs within three business days of loan application

12) In a deed, the warranty of quiet enjoyment pertains to :

a) peace an tranquility on and around the property
b) peaceful possession undisturbed by others' claims of title
c) guaranteed satisfaction with the property
d) property that is completely vacated

13)The document that controls the title closing on the day of closing is the :

a) sale contract
b) listing contract
c) closing statement
d) broker's closing statement

14) Your seller owns a home appraised at $52,500. She still owes $32,760 on the first mortgage and $4,200 on a second mortgage. Your sales commission will be $3,640. What is the seller's equity in the home?

a) $11,900
b) $13,589
c) $15,540
d) $19,740

15) In the cost-depreciation approach, estimating accrued depreciation involves estimating:

a) the amount of allowable cost recovery
b) the value of allowable expenses.
c) the loss in value of the improvements
d) effective gross income