VanEd National Real Estate Practice Exam

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• In what situation is a buyer's contract contingent regarding construction?
• Which of the following best defines market value?
• What is the primary function of a real estate appraisal?
• What type of tenancy does a tenant have after paying rent following the expiration of a 15-month lease?
• Who is ultimately responsible for all real estate activities conducted by salespersons?
• Functional obsolescence can be caused by which of the following?
• Before ratifying a housing sale or lease, which of the following is NOT required of sellers?
• If a buyer does not have to debit any amount during closing, what might that imply?
• What type of loan would require the borrower to make smaller monthly payments but a larger payoff at end of term?
• Should a real estate agent disclose the death of a previous tenant from AIDS to potential buyers?
• When a property is rented and the tenant has special circumstances surrounding their health, what should the property manager consider?
• When is earnest money deposited in a trust account?
• What can happen if a contractor fails to pay their sub-contractors?
• In the context of the real estate listing scenario, what should be done regarding the seller's financial responsibilities near closing?
• The trustee has a ______ duty to consider the best interests of the beneficiaries first in any decisions.
• Which of the following statements about asbestos in a school renovation project is NOT correct?
• Can the seller offer the listing agent a bonus after closing?
• A property description that uses lot and block numbers is also known as?
• Which element is NOT typically included in the description of an adjustable-rate loan?
• An owner lists his home and agrees to pay a 6% commission provided that 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?
• When a principal authorizes an agent to perform a particular act, this is an example of what type of agency?
• A lawsuit for inverse condemnation seeks compensation for what issue?
• What aspect of a property is typically assessed during a Phase 1 environmental assessment?
• In most listing contracts, when does a broker typically earn their commission?
• What relationship implies a position of trust and confidence in real estate transactions?
• What role does a mortgage broker play in real estate transactions?
• What is the term for the highest price a buyer is willing to pay for a property?
• What type of contract should Broker Ben use to prevent Aaron from paying a commission if his neighbor purchases the property?
• Which statement is true regarding the responsibilities under the Lead-Based Paint Disclosure Rule?
• If Marie dies intestate, how will her property be transferred?
• How does paying Private Mortgage Insurance (PMI) benefit a borrower?
• How should a seller respond if their buyer does not vacate before the agreed closing date?
• What is the standard of care that a real estate professional is expected to meet?
• In a scenario where a buyer intends to operate a business, what consideration must be made?
• Which factor is essential to the determination of value in real estate?
• What is a defining feature of the property listed by Randy and Jeff Minter concerning its accessibility?
• Which of the following is considered a breach of the fiduciary duty of a broker?
• What is the term for the person or organization that acts as an intermediary to obtain financing?
• If a property has a first mortgage for $100,000 and property taxes of $4,500 have not been paid, which of the following statements is true?
• Which of the following is NOT a service typically provided by property management?
• What does the term "full disclosure" typically refer to in real estate advertising?
• What did the ad specifying "$10,000 down" trigger regarding loan terms?
• The lender who granted a construction loan to a builder would provide the builder with the final payment upon what condition?
• An appraiser must be licensed or certified to handle federally-related work on residential property valued at more than what amount?
• What does the term "lis pendens" refer to?
• When a buyer wants to make a contingent offer on a property due to a complex mortgage arrangement, the buyer's agent should advise whom?
• For what valid reason may an owner refuse to rent to a prospective tenant?
• According to the provided scenario, how does the Closing Statement reflect the Seller's tax liability?
• What investment structure is considered equivalent to an annuity by an owner?
• The variance in the VA funding fee is based on the
• What best describes a "real estate broker"?
• Which of the following is true about radon gas?
• What would you call a legal restriction on how the property can be used?
• What can the seller of a gas station do if it has been rezoned from R2 to R1?
• A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. What does this clause permit the lender to do?
• When buyers receive a counteroffer but purchase another home, what is the status of the counteroffer?
• What is typically increased when two adjacent properties are combined into one?
• What is the primary function of a real estate broker?
• Which term refers to property that is subject to regulatory and environmental issues?
• What is the implication of brokers collaborating on a division of the Creekside Neighborhood?
• Under the Federal Fair Housing Act, which reason is valid for an owner to refuse rental to a prospective tenant?
• Which type of contractor is described as being responsible only for results?
• When might a buyer be able to negotiate a lower purchase price for a property?
• If a deed is not recorded:
• A unilateral contract that becomes bilateral upon being exercised is a(n)
• Who does a realty firm represent when they enter into an agreement with a home builder?
• If a parcel of land is 3 acres and the front width is 450 feet, what is the depth of the lot?
• Interest on a loan assumed was collected in arrears. The seller paid the July payment. The closing is scheduled for July 15. The seller is debited
• What does Errors and Omissions Insurance cover for a broker?
• When a tenant is informed of a lead paint hazard, what is the tenant's responsibility?
• What does a broker need to consider when listing a property with specific rights such as irrigation?
• A valid contract may be unenforceable due to which of the following?
• Which type of loan would likely have the highest loan-to-value ratio?
• Which of the following is NOT a protected class under the Fair Housing Act?
• Which of the following is a benefit of owning investment property?
• What should a homeowner do if they experience problems with lead paint after the sale?
• What terminates a life estate?
• What is the primary purpose of a listing agreement in real estate?
• A property management agreement normally includes
• What is generally required for an easement to be legally binding?
• What is required by HUD and EPA regarding lead-based paint for housing built before 1978?
• A real estate agent is legally responsible to disclose:
• What is a major reason buyers choose to purchase a condominium instead of a single-family home?
• What is the primary responsibility of a real estate agent in a transaction?
• An owner refuses an offer, even though it is exactly in accordance with a valid Exclusive Right-to-Sell listing; the:
• Broker Jane is working with Buyer Bob to purchase a home but has no signed agency agreement. Under the general law of agency, this is?
• Which of the following would NOT legally terminate a listing with a broker?
• When participating in a Homeowners Association (HOA), what role does a person assume?
• What happens to a counteroffer if the buyer accepts an offer on a different property?
• How is Broker A described when working with buyers and sellers without any agency obligations?
• If a buyer fails to fulfill their end of a contract, what is the seller entitled to?
• How does investing in real estate generally affect an investor's portfolio?
• Buyer Dan wants to purchase 1695 Argon St. for $230,000 with 15% down and the interest rate is 8%. The lender could reduce the interest rate to 7 ¾% if he paid 3 discount points. How much will Dan have to bring to closing?
• What does the term "fiduciary duty" imply for an agent?
• What does the term "fixtures" refer to in real estate?
• What is the method of deducting the cost of a property in equal annual installments called?
• What type of tenancy does 'L' have if they rented a cabin for the first two weeks of July?
• What is the primary purpose of an acceleration clause in a mortgage?
• In the context of real estate, what does "marketable title" signify?
• Who can be held responsible for all real estate activities of salespersons?
• In a real estate transaction where property taxes are $1,214.00, and the closing is on April 1, how will the taxes be divided?
• What typically results in the termination of a real estate contract involving an unlicensed operation?
• What type of transaction did the Aptons accept for their property?
• What type of listing contract allows owners to sell their property themselves without owing a commission?
• After listing a property for sale, a broker associate decides to move to another brokerage company. What will happen to the listing?
• A cloud on a title can be rectified by any of the following methods EXCEPT:
• What authority allows a city to enact ordinances for health and safety?
• Commingling is
• Which deed would a seller use if he warrants that he owns the property and has had no title problems during his period of ownership but makes no warranty against defects existing before the time of his ownership?
• What is the purpose of a monument in real estate?
• What action does a seller need to take if they cannot get marketable title due to a break in the chain of title?
• In real estate, what does "closing" refer to?
• Which process involves the government acquiring private property for a public project?
• What should Agent Dan do if he feels the buyer cannot afford the property?
• What is included in a nonrefundable escrow agreement?
• What is the buyer's tax liability as shown on the HUD-1 for the Apton property?
• What signifies a dual agency situation in a real estate transaction?
• Regarding the Lead-Based Paint Disclosure rule, sellers and lessors must retain a copy of the disclosures for _______ from the date of sale or the date the leasing period begins.
• What is a potential consequence of failing to properly disclose information about a property?
• What is the significance of a Certificate of Reasonable Value?
• What documentation is often used to provide evidence of an agency relationship?
• If an owner refuses an offer under a valid Exclusive Right-to-Sell Listing, what right does the owner have?
• Who is responsible for providing lead-based paint disclosure to the buyer?
• When does the fiduciary authority of an agent to their client typically terminate?
• Which material fact about a property does not need to be disclosed if the seller is unaware of it?
• What is the term for the client in a real estate agency relationship?
• What is the term for the $100,000 payment ordered by a court for excess damages in a breach of contract case?
• What type of facts must be disclosed due to their potential impact on property value?
• What is the term used to describe the government's ability to take private property for public use?
• What term refers to the decrease in property value due to external factors, such as a new runway affecting a subdivision?
• Which statement is true concerning property tax liens?
• When dealing with asbestos in a home or office, what is often a safer solution?
• To successfully perfect a lien against personal property, what document must a creditor record?
• In real estate, which term refers to an owner's interest in a property that can be sold, leased, or transferred?
• According to Truth in Lending laws and RESPA, what type of loan provides a 3-day right of rescission?
• What type of easement can be claimed after a gate has been unlocked for 10 years, restricting access to a water source?
• What is a loan that has a balloon payment due at the end of a specific period?
• For how long must a buyer typically reside in a home to avoid capital gains tax on the sale?
• What was the decline in value of a small office building after on-street parking was made illegal, assuming a capitalization rate of 8%?
• What is a feature of the property that would make it attractive for buyers with children?
• What type of structure did the buyer plan to build on the property?
• What happens to the interest of a deceased family member in a condominium owned as tenants-in-common?
• Which type of loan generally offers a guarantee from the government?
• Where do subdivision laws typically originate?
• Which federal act requires disclosure of known lead-based paint hazards in homes built before 1978?
• A business organizational form in which limited partner(s)/member(s) are not liable for debts of the organization is called?
• What term describes the right to use another's property for a specific purpose?
• In joint tenancy, what happens to Dave's share when he dies if his will states his nephew is to inherit it?
• A broker associate is asked to list a property valuing $95 per square foot and 5% commission. What should the listing price be?
• What is the minimum notice period usually required for terminating a month-to-month lease?
• A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase in some future time. This is an example of the principle of?
• What do the terms littoral, riparian, and appropriative refer to?
• A house has a market value of $110,000. The assessed value is 30% of the market value. If the mill levy is 52 mills, what is the yearly tax on the house?
• What signifies that a property has been well-maintained over the years, such as a septic system?
• The managing broker can be held liable for which of the following?
• What must a broker do if a buyer confidentially offers to increase their offer by $10,000 on a listed property?
• If a 17-year-old signs a contract, how can that contract be characterized?
• What amount was the offer on John and Mary Apton's home?
• What will be recorded on the worksheet as interest due for a new private loan of $250,000.00 at 9%?
• How is the commission to be paid determined?
• What amount should be debited from the seller at closing?
• Private deed restrictions are classified as what?
• What role does a facilitator-intermediary play in a real estate transaction?
• How is the buyer’s tax liability reflected in the Closing Statement given the scenario?
• A community is adding in a new plumbing line, how would this be paid for?
• What is the employment status of salespersons working under a managing broker?
• Which characteristic is NOT typically associated with value?
• What role does a trustor or trustee have in a deed of trust?
• What does an exclusive agency listing agreement allow the property owner to do?
• What characteristic likely explains the price difference between two lots sold on the same street?
• Which of the following actions could result in legal issues for a broker?
• Which event would result in the automatic cancellation of a listing agreement?
• Which of the following is a common reason for termination of a lease agreement?
• Using a gross rent multiplier, if an income property has a monthly rent of $1,450, what would be its estimated value based on comparables?
• Regarding surface vs. subsurface rights, which statement is EXCEPT?
• What was the listing price of John and Mary Apton's home?
• Which of the following is an example of a latent material fact?
• Which of the following statements about both the Mortgage and Deed of Trust is false?
• If a seller informs an agent that they are moving due to noisy neighbors, what should the agent do?
• What maintenance has been performed on the septic system?
• How much notice must a couple give to their landlord when their lease does not contain an automatic renewal clause and they plan to move out at the end of their lease?
• What is a "contingency" in a real estate contract?
• Which of the following can render a valid contract unenforceable?
• What is the primary role of a property management company?
• According to HUD regulations regarding lead-based paint, what is required?
• When performing a Comparative Market Analysis (CMA), which factor is typically NOT considered?
• What type of property ownership involves ownership of a share in a corporation that owns property?
• When a principal authorizes an agent to perform a particular act or transaction, what type of agency is this known as?
• What type of zoning does the property have that allows for livestock?
• A title report will NOT show which of the following?
• What was the significance of the Jones vs. Mayer decision in 1968?
• If the property is listed with a high price but remains unsold, what strategy might be employed to stimulate interest?
• The Lead-Based Paint Disclosure Rule impacts which responsibility regarding lead inspections?
• What can a sub-contractor do if they are not paid after a construction loan is disbursed?
• What is an agreement called where one party acts on behalf of another party?
• What document would show all prior owners of a property?
• What legal basis could a buyer use to rescind a contract if they relied on false information regarding property taxes?
• If a property has a net operating income of $24,000 per year and an 8% capitalization rate, what is the property value excluding land value of $115,000?
• Which type of listing agreement offers the most protection to the agent?
• A prescriptive easement arises under all of the following conditions EXCEPT:
• Under what circumstances can an agent legally disobey a principal?
• What duty would a transaction broker find easiest to fulfill when working with both a seller and a buyer?
• What kind of zoning would require that a developer build 10% of the homes in a subdivision for low-income families?
• If you list a property "as is," you would disclose ______.
• How much would it cost to carpet and tile a building of 90' by 60', where 60% is carpeted at $16 per square yard and the rest is tiled at $8 per square yard?
• The Avillas are purchasing a home and are planning on installing solar panels. The listing in the MLS stated that there will be a special assessment for new power lines in the neighborhood. The Avillas don't want to pay for the special assessment, do they have to?
• What role can broker Steve assume when a buyer expresses interest in writing a contract but he has a seller agency?
• What is the main purpose of an appraisal in real estate?
• What was the seller's tax liability at closing for the Apton property?
• A contract formed between a seller and a salesperson is known as which type of agreement?
• What law requires that a "good-faith estimate" be given to a borrower for a federally related loan?
• What must sellers disclose regarding lead-based paint?
• Which statement about a valid option contract is INCORRECT?
• What is a common legal reason for a seller to terminate a listing agreement?
• What legal remedy should 'A' seek after being misled about a commercial lot's size and zoning?
• What might be a consequence for the buyers if the environmental impact statement indicated a property value decrease?
• A property manager has a chance for a management contract for a large commercial building that has been vacant for 2 years. The manager should insist upon a
• What type of easement did John and Mary Apton have on their property?
• If a property has an annual rental income of $12,000 and an assessed value of $180,000, what is the Gross Rent Multiplier for that property?
• What situation could lead to a contract being deemed breached?
• In a scenario where a salesperson lists a property allowing for subagency and dual agency, what is the salesperson's role?
• What is likely a situation in which a land contract could be contingent?
• Under the CERCLA, how can prospective buyers best protect themselves from liability regarding potentially contaminated property?
• What type of partnership invests in but does not actively manage the operation?
• What is true about the deed when 'M' deeded property to 'N' but 'N' recorded the deed in the wrong county?
• What term describes the act of tearing down a building and leaving behind personal property?
• Which rule of thumb version is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000?
• Landlords of multi-unit buildings built prior to 1978 must give prospective tenants ______.
• If a custom table is attached to the floorboards, how will it be classified when the home is sold?
• When a seller's property is encumbered by an easement, what must potential buyers be informed of?
• A seller financing a property under a contract means the buyer must do what after a specified period?
• To which areas does the Americans with Disabilities Act (ADA) apply?
• What legal action would a property owner undertake to remove a nuisance?
• What feature does the home described in the scenario include to improve energy efficiency?
• What is the primary duty of an attorney-in-fact?
• A real estate broker operates under which legal relationship when they have fiduciary responsibilities to a client?
• Which of the following is NOT considered an element of value?
• If Dave is buying an old gas station to convert it into a flower shop, what assessment is likely required by his lender?
• Depreciation for a property is typically calculated based on what?
• Building ordinances may specify and regulate:
• Death of a party to an agreement voids the agreement when the agreement is a(n)
• If the interest for 4 months on a loan of $80,000 is $3,200, what is the annual interest rate?
• If a property manager has two rental units, is it compliant to show only the ground floor unit to a tenant with a wheelchair?
• What could lead to the termination of a listing agreement besides reaching the contract termination date?
• What should a real estate agent consider first when preparing a property for listing?
• When comparing a mortgage and a deed of trust, which one must be foreclosed through the courts?
• An option contract must contain ________.
• In real estate transactions, what does "severance" indicate?
• To handle federally related work on residential properties valued at more than what amount, an appraiser must be licensed or certified?
• What term is used to describe property that is not attached to the land?
• Under which circumstance can a buyer claim to have acquired property at a reduced price due to seller concessions?
• What is one key benefit of a VA loan?
• What is the main purpose of disclosure regarding known paint hazards in real estate transactions?
• If a buyer decides to request additional time for contingencies, what action should they take?
• What financial arrangement did the Farsons make with the buyers regarding vacating the property?
• If Landlord Joe and Bill have an oral agreement to extend the lease after it expired, what is the appropriate notice period for termination?
• What law requires a contract for real estate to be in writing?
• An agency that cannot be terminated by an owner is referred to as what?
• What is the buyer's expected tax liability at closing based on the provided information?
• In what situation would a net listing be particularly concerning?
• If a person suspects the smell of radon gas in a home, what action should they take?
• What does the term "nuisance" refer to in property law?
• A broker supplies financing for a project with conditions to sell the completed project. What best describes this relationship?
• How can an offeror create a valid contract if an offer is accepted after the offer period has expired?
• What term describes the increased value resulting from the consolidation of two adjacent lots into one larger lot?
• A commercial property valued at $500,000 is being depreciated over 39 years. If the property is 11 years old, what is the total depreciation that has been taken?
• An ejectment action can be used against a(n):
• What is the primary purpose of a title search in real estate?
• Which term describes a broker acting on behalf of a seller while also representing a buyer?
• What should a broker look for when compiling a competitive market analysis?
• What legal requirement must a seller fulfill in regards to federal loans?
• The buyer received a Certificate of Reasonable Value for their loan. What type of loan did the buyer get?
• What type of lease allows for rent to be adjusted based on changes in the cost of living?
• In which situation does an attorney-in-fact violate their fiduciary duty?
• A buyer's broker discovers a material fact about a property under contract. To whom should this fact be disclosed first?
• The right to use property belonging to another for a specific reason is called?
• How much money did the seller owe in taxes for the Apton property?
• What amount will the buyer need to bring to closing based on the given real estate scenario?
• Rights, benefits, and improvements that go with the land are known as
• How is a deed restriction best defined?
• Is it legal for a title company to pay a broker for services rendered?
• Who is liable when a buyer discovers a structural defect after closing on a property sold by an FSBO seller?
• What is necessary for a real estate contract to be legally binding?
• What is the term used to represent the interest a wife receives in property owned by her husband at the time of death in some states?
• If a closing date needs to be rescheduled, what might be a consequence for the seller?
• If a buyer wants a government-insured mortgage, which type should they consider?
• Which business form combines the advantages of single taxation and unlimited membership?
• What type of real property description involves references to physical landmarks such as an iron stake?
• What effect do increasing points paid for a loan typically have on the interest rate?
• What is the purpose of an express agreement in real estate?
• According to the Truth-in-Lending Act, which of the following disclosures is NOT required if trigger terms are used in advertising?
• What should you do if the sellers of a home inform you of a leaking roof but request not to disclose it to potential buyers?
• If a seller dies after a listing agreement is signed, what happens to the agency?
• In a closing scenario, what amount would be debited to the seller if their property has adjustments due to delayed occupancy?
• An appraisal is required for ____________.
• Which law provides borrowers with the right to rescind a consumer loan within three business days?
• Your client asks you, his agent, for advice on tax matters. What should you tell him?
• What does a zoning ordinance primarily regulate?
• Which appraisal method would be most appropriate for determining the likely selling price of a home?
• What is a sublessee?
• If a buyer wants to purchase a home for $60,000 and the lender appraises it for $58,000, how much will the loan origination fee cost on an 80% loan-to-value loan at 1.5 points?
• In a real estate sale scenario involving an environmental impact statement, what might indicate that the buyers can proceed with the transaction?
• Which of the following most closely describes a home warranty?
• In a scenario where faulty wiring led to a financial loss after a home sale, what is true regarding the broker's responsibility?
• Can Ann and Martha assign their contract for the sale of a home to another buyer and collect $10,000?
• If you give your neighbor an easement on your property for the neighbor to access a lake, what would end this easement?
• As a part of the contract, the seller agrees to provide a home warranty to the buyer. Randi Realtor informs the client that they will need to purchase the warranty coverage from Willies Warranties because that is who the firm uses. What is Randi violating?
• What is the tax liability for the buyer if closing occurs on July 30?
• In the scenario involving Randy and Jeff Minter, what is the best action to take if the environmental impact assessment delays the closing process?
• Which of the following is NOT covered by extended coverage title insurance?
• What does an Environmental Impact Statement (EIS) assess?
• What type of lease allows the landlord to recover additional expenses from the tenant?
• What is a requirement for a counterproposal in a real estate transaction?
• Which type of listing allows multiple agents to show the property?
• What is a major disadvantage of owning investment property?
• If the assessed value of a property is $33,000 and the mill rate is 50, what is the property tax?
• If a broker lists a home sold "as is", what must they disclose?
• If a property has a net income of $40,000 and one appraiser uses a 12% capitalization rate, while another uses a 10% rate, what is the impact of using the higher rate?
• Leverage is considered to be which of the following processes?
• Which legal document outlines the lender's rights in a mortgage agreement?
• In a closing scenario, what total amount would a buyer need to bring if taxes and insurance total $675 and recording fees are $25?
• If an agent buys a property they listed by using their spouse's name, what duty have they likely violated?
• What is it called when brokers agree not to cooperate with a broker offering lower fees or commissions?
• What does the Clean Air Act require states to include in their plans?
• What is the role of a listing agent in a real estate transaction?
• What is an encumbrance that restricts the use of a property through a private deed called?
• What was the due date for the Environmental Impact Statement related to the Apton property?
• What is the most favorable aspect of a VA loan?
• What might affect a buyer’s decision when a property is zoned for livestock?
• When someone with heirs dies without a will, how is their estate distributed?
• Which of the following is NOT a consequence of defaulting on a mortgage?
• Which real property right involves the use of another's land for a specific purpose, such as a pathway?
• Which loan allows eligible veterans to purchase homes without a down payment?
• What term describes the maximum amount of property a borrower can obtain from a lender?
• What is generally considered a primary responsibility of a real estate agent in a transaction?
• One's legal interest in property—either freehold or non-freehold—is known as?
• What type of interest does a buyer hold upon executing a contract to purchase real estate?
• Title is transferred with what legal instrument?
• What is the maximum commission rate a broker may charge on the sale of a property?
• Which of the following actions is NOT prohibited by antitrust laws among competing brokers?
• Federal Truth in Lending laws are also known as:
• Which term describes a legally recognized process for the disposition of a deceased's estate?
• To whom must the escrow officer or closing agent provide the sales price and seller's social security number?
• Upon the execution of a purchase contract, the buyer's interest in the property is termed:
• What type of will is a handwritten, signed, but unwitnessed document?
• Broker Steve can act for his client as a general agent?
• What effect does a counterproposal have on the original offer?
• What was the non-refundable escrow amount agreed upon by the Farsons?
• Which act prohibits brokers from discussing commission charges with one another?
• What is the required document that borrowers must sign for all federal loans regarding home inspections?
• When does the seller typically bear the burden of disclosure in a real estate transaction?
• In real estate terms, what does "depreciation" refer to?
• What do you generally need to provide when making an offer on a property?
• What should a broker do if instructed not to show a property while the owner is away, and an African American couple requests to see the property?
• What is the right called when a tenant has the opportunity to meet terms offered by a new tenant upon lease expiration?
• Which type of lease allows the landlord to increase rent?
• When a prospective seller asks for a listing price recommendation, what should a salesperson suggest?