PearsonVue Practice Exam

Potential buyers tell their sales agent that they are worried about the presence of radon gas in a home they are thinking about buying. What SHOULD the sales agent say?

Which of the following phrases is considered discriminatory advertising by HUD?

The act of recovering title to property lost through foreclosure on a mortgage is called:

Which of the following actions is an example of blockbusting?

The direct sales comparison (market data) approach would be MOST appropriate for establishing the value of a:

The presence of government-regulated wetlands on a building lot:

A buyer makes a down payment of $27,000 on a house selling for $75,000 and secures a new mortgage for the difference at $288 per month for 25 years. How much does the buyer pay in interest over the life of the mortgage?

Compensation of a buyer agrees to pay under the terms of a buyer representation agreement is to be paid at settlement to the:

When a broker lists a property that is owned by a married couple as joint tenants, the broker SHOULD make sure that the listing agreement is signed by:

A minority couple asks a licensee to show them a list at house. The licensee suggests that they look at houses in the area with larger minority populations than that of the listed house. What is the licensee guilty of?

A licensee describes a house as “fabulous and wonderful” and “having the best view in town.” This is most likely an example of:

A net lease affords the lessee the:

The gross income multiplier (GIM) is BEST used to value:

My property has an appraised value of $50,000. A loan is granted on the property for 75% of its appraised value. The loan is spread over 25 years at an interest of 3/4% per month. If the amount paid toward the principle is to remain consistent throughout the life of the loan, what is the FIRST monthly payment?

Items permanently attached to real property are considered:

A property owner MUST convey property that is subject to an option when the optionee:

When using the cost approach to determine the value of a residential dwelling, an appraiser SHOULD:

A licensee pays for maintenance on a rental unit using a tenant security deposit. This is an example of:

When a prospective buyer asks about a property location in regards to a flood zone, the licensee SHOULD direct the buyer to:

In a real estate closing, the buyer generally pays for the:

If a broker lists the property and agrees to net the seller $83,000 after the brokers 6% commission is paid, the property must be sold for a MINIMUM of:

A licensee deposited a clients earnest money into the licensee’s personal account to hold. This is considered illegal and known as:

Which of the following items would have to be disclosed to prospective buyers by the listing broker?

A 40 foot easement exist across the front of the property, and a zoning ordinance requires a building setback of 50 feet from the front property line. If the property is offered for sale, a licensee SHOULD Take which of the following actions were notifying prospective buyers about the situation?

Under a sales contract, the legal remedy that MAY be used to force the seller to consummate the sale is called:

An agreement that restricts the use of occupancy of real estate, is part of a convenience, and is binding on all subsequent buyers is called a(n):

Which of the following statements about the income approach to value is CORRECT?

An illegal lending practice whereby a bank refuses to make mortgage loans in a certain neighborhood based on the ethnic makeup of that area is known as:

In addition to real property, pledging a freestanding stove and refrigerator as security for a loan is an example of which of the following mortgages?

A child inherits their parents property prior to their 18th birthday. If the child decides to sell the property, and enters into a purchase agreement, the contract could be:

Federal law REQUIRES a written disclosure be provided to purchasers for which of the following environmental hazards?

A loan that provides for increases and decreases in the interest rate during its term is known as a(n):

The difference between the value of a property and the total amount of liens against it is known as:

A title insurance policy will protect the buyer from financial losses that are caused by a(n):

The owner of a farm has found a buyer for the property, which is leased to a tenant farmer. With regard to any growing crops that were planted by the tenant, which of the following statement is TRUE?

A landlord enters into a lease with a tenant. The lease contains a provision stating that, if the landlord decides to sell the property during the term of the lease, the tenant will have the first right of refusal to purchase the property. Prior to the tenants lease expiration, the landlord would like to sell the property. The landlord:

Visually impaired person with a service animal complete an application for rental of an apartment that has a vigorously and forced “no pets” policy in the building. According to the Federal Fair Housing Act, the owner MAY:

Under the law of agency, a broker’s responsibility to the principal is to:

In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income?

When a married couple takes title to a property as tenants in common, they have elected a form of ownership that allows for;

Which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of origin?

The donation of private land for public use is called:

If a prospective buyer is concerned about the electric service on a property, the buyer’s licensee SHOULD:

If a licensee is paid a salary of $600 per month plus half of the office's 6% fee on all sales, what must a licensee's monthly sales be in order for the licensee to receive a total monthly income of $2,220?

Public regulations that control the specific uses of land in a given area are called:

A property manager works in the best interests of the:

Which of the following clauses will put the priority of an existing mortgage or deed of trust below that of a mortgage recorded later?

In a condominium apartment project, the BEST term that describe swimming pools and laundry rooms for the use of unit owners is:

If two lots, each 75 feet wide by 105 feet long, cost $30,000 in total, what is their approximate cost per square foot?

When a contract states that "Time is of the essence." the contract MUST be delivered and presented:

On Tuesday, buyers make an offer to purchase a house for $250,000 and include a provision to buy the living room furniture. The offer expires at 5:00 PM on Sunday. On Thursday the sellers reply in writing that they will accept the offer for $250,000, but they will not include the dining room furniture. While the buyers are considering the counter offer on Friday, the sellers change their minds and decide to accept their original offer, including dining room furniture, in writing. What is the current obligation of the buyers?

To be certain that a property has no encroachments, an appraiser should check a:

The income approach is most likely to be used when determining the value of a(n):

Which of the following actions BEST describes proper supervision of a licensee by the broker?

A buyer purchased a house for $80,000 and obtained a $60,000 mortgage. If 3 discount points were charged to originate the loan, the total cost of the origination fee is:

The owners of a shopping center want a major department stores lease to provide rental payments that reflect at the stores sales. They are most likely to use which type of lease?

Which of the following documents is usually prepared when a real estate buyer also purchase as a seller’s riding lawnmower?

Broker P lists a property for a seller. A buyer, represented by broker Q, submits an offer to purchase the house and tells broker P that they are willing to pay up to $10,000 more than the offer price, if the seller counters. In this situation, broker P is:

The difference between reproduction cost in the present value of a property is:

The value of the property is affected by negative forces outside the property, which are beyond the control of the owner. This is referred to as:

A valid real estate sales contract MUST:

The final decision in establishing the listing price is made by the:

The price at which a willing and informed buyer would buy, and a willing and inform the seller would sell, is called the:

With the exception of court-ordered sales, the amount of earnest money to be deposited by a prospective buyer is determined by the:

The federal act that provides funds for waste management and solutions for cleanup is the:

The owners of the house sign a listing agreement and later tell the licensee that the garage roof leaks. If the owners tell the licensee not to review all the roofs condition to any prospective buyers, the licensee MUST:

As defined in a real estate contract, the due diligence period allows which party to thoroughly investigate a property?

When private property is abandoned, the state may acquire title to the property under the right of:

The CERCLA is administered by the:

The potential gross monthly rent of an apartment building is $5380. And July, operating expenses were $3500. A tenant who is monthly rent is $625 failed to pay rent in July. If the property managers commission is 6% of the rental income, the managers fee for July was.:

A licensee preparing a competitive market analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is 10 years old and has two baths, the comparable property is five years old and has one bath. In this case, the licensee should adjust the:

Buyers make an earnest money deposit on a property and sign a contract that is contingent on specific financing terms. The bank commits to the financing, the buyers end up, changing their minds. The buyers proceed to notify the seller, in writing, that they do not intend to buy the property. Which of the following statements is CORRECT?

A seller rejects an offer of $84,000 on a property that is listed for $85,000. One week later, another prospective buyer asks the salesperson to submit an offer of $82,000 for the property. In a situation, the sales person SHOULD:

According to the Federal Fair Housing Act, which of the following individuals is permitted to reside in housing with a familial status excemption?

If a purchase contract for a commercial property includes a due diligence contingency for the buyer, then the buyer may: