13PractEx.CeSh.PreLic.Qonly.txt
Roger has a sufficient income, has never missed a loan or credit payment, and has an adequate credit history. His credit score makes him a very creditworthy consumer. When obtaining a loan, which rate will he most likely get?
Adjustable rate
Discount rate
Federal funds rate
Prime rate
After operating the firm for 17 years, Trethlon Manufacturing just sold its entire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon’s capital gain?
$1.328 million
$1.8 million
$472,000
$5.7 million
John sells his single-family home and purchases a new home for his family to reside in. Marcus owns a single-family home, but rents it out to a co-worker while he is on an extended two-year military tour overseas. Donald sells an apartment complex and purchases a new complex in a different part of the city. Which of these consumers is most likely to take advantage of a 1031 tax-deferred exchange?
Donald
John
John and Donald
Marcus
Gerard has been offered a 4% interest rate on a $300,000 mortgage. His monthly mortgage payment would run about $950 per month. He plans to pay $2,000 up front to drop his interest rate to 3.75% and his payment to $920 per month. What is this upfront charge called?
Discount point
Interest
Usury
Tom has just bid on and won a tax certificate for a piece of Florida property. Which of the following is true?
A public auction will be held.
The property owner may not redeem the property.
Tom now owns the property.
Tom will receive the face amount of the certificate, plus interest and other costs.
Ed is a licensee who’s always eager to help his clients in any way he can. One of his current clients has received an offer that will give her a tidy profit on her home. She tells Ed she’s worried about her tax liability when the home sells. What can Ed tell her that will be most helpful?
“I believe you’ll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it.”
“I wish I could help you with that, but as a real estate licensee, I’m not allowed to offer tax advice.”
“The Taxpayer Relief Act of 1997 will help you avoid paying any taxes on the profit you make from selling your home as long as you’ve been living there for the last couple of years.”
“You’ll be allowed to exclude as much as $250,000 of capital gains from the sale of your home if you’re filing as a single taxpayer. It would be as much as $500,000 if you were married and filing jointly.”
Jasmine is in the market for a new property for her, her partner, and their young child. Tanner is Jasmine’s agent and has shown her several properties. Even though several properties meet the criteria his client is seeking, Tanner has intentionally weeded out properties close to the local college campus, because he doesn’t think the location would be suitable for a family with young children. What, if anything, has Tanner done wrong?
Tanner has discriminated against Jasmine using familial status as a reason for not showing her properties.
Tanner hasn’t involved Jasmine’s partner in the search process.
Tanner hasn’t received upfront payment for his services.
Tanner is acting within his expertise as Jasmine’s agent.
Cheri is the lessee of a house with a detached garage. Harriett has leased only the garage from Cheri. However, Cheri remains bound by the terms of the lease agreement with the lessor. This is an example of _______.
An actual eviction
A novation
A sublease
Constructive eviction
14PractEx.CeSh.PreLic.Qonly.txt
Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank indicates that it’s going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the deed to the land. What kind of state does Sondra live in?
A deed of trust theory state
A lien theory state
An intermediary theory state
A title theory state
In addition to serving as the listing agent for several clients, you’re also the listing agent for your own house which is for sale. You receive a call from another licensee who wants to show her buyer client your house. What must you immediately disclose to the buyer’s agent and buyer?
The house may have been an orphanage 80 years ago.
You’d sell for far lower than the current asking price.
You own the property.
Your housemate had Covid last month.
Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this?
Aesthetic zoning
Downzoning
Incentive zoning
Spot zoning
Two buyers entered into a contract to buy an income property, but prior to the sale, one of the parties was replaced by a third party. The original buyer will be held responsible if the new party fails to live up to his obligations. What is this an example of?
Assignment
Fraud
Mutual mistake
Novation
A broker submits their client’s purchase offer and then goes on vacation. When they returned two weeks later, they learned that a counter-offer had been submitted, and the response date had expired. Their client’s offer was terminated because they failed to respond on time. What type of violation is this?
Demonstrating untrustworthiness or incompetency to act as a real estate broker
Failing to disclose an agency relationship
Making a substantial and willful misrepresentation
Performing services that would qualify as practice of law
Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying compensation if her neighbor buys the property, which type of listing agreement would best suit Janice’s needs?
Exclusive agency
Exclusive right to sell
Net
Open
15PractEx.CeSh.PreLic.Qonly.txt
Simi is a buyer’s agent, and she’ll receive compensation paid for by the buyer. The property sold for $425,000. The total compensation will equal 6% of the sales price. This amount will be split evenly between Simi and her brokerage firm. How much will Simi be paid from this sale?
$12,750
$25,500
$3,541
$7,083
Mary contracted to buy her mother’s house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother’s agreement, Mary’s sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. What’s happened here?
Assignment
Breach of contract
Novation
Performance
Why are appraiser activities highly regulated for federally related transactions
Because a federal financial agency is involved.
Because the loan amount is less than $400,000.
Because the loan is federally guaranteed.
Because the loan is federally insured.
A land surveyor was called out to survey a property. After doing some research, they located the legal description for the property in question. Now, if they could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is the surveyor working with?
Benchmark
Datum
Metes and bounds
Rectangular government survey
The legal concept of having ownership of real property is called ______.
Conveyance
Possession
Right to exclusion
Title
Clint is interested in making an offer on a house with hardwood floors that will need to be replaced. The hallway is 18 feet by 6 feet. The kitchen is 20 feet by 30 feet. The living room is 25 feet by 45 feet. There are two bedrooms, which measure 12 feet by 16 feet each, plus a master bedroom that is 14 feet by 20 feet. If the cost of the flooring is $5.48 per square foot, and the cost of installation is $1.49 per square foot, how much can Clint plan to spend to replace the floors?
$13,683.56
$16,065.85
$16,309.80
$17,404.09
When a leased property is sold, the previous owner must transfer the security deposit and __________ to the new owner.
Advance rent payments
Fee to change locks
Interest earned on rent
Previous rent payments