Back to AI Flashcard MakerBusiness Law /National Real Estate Exam Practice Test Part 2
National Real Estate Exam Practice Test Part 2
This deck covers key concepts and questions from the National Real Estate Exam Practice Test Part 2, focusing on real estate principles, laws, and calculations.
A buyer offers additional consideration to add a 10-day option period to the sales contract. During this period, the buyer can:
terminate the contract for any reason
Tap or swipe ↕ to flip
Swipe ←→Navigate
1/35
Key Terms
Term
Definition
A buyer offers additional consideration to add a 10-day option period to the sales contract. During this period, the buyer can:
terminate the contract for any reason
Brenda and her husband are interested in buying a house that was constructed in 1971 that has all the original paint, windows, and flooring. What is required from the listing agent in this situation?
The agent needs to furnish the buyers with a pamphlet approved by the EPA concerning lead based paint prior to closing.
In order to be valid, what MUST a deed have?
a legal description
Hans bought an investment property for $5,250,000. The NOI of this property is $367,500. At what cap rate did he purchase this property?
7%
What does the principle of anticipation state about the valuation of property?
The present value of a property is affected by the anticipated income or utility that property will give its property owner.
Which of these is a naturally occurring mineral that is commonly used in insulation, but if airborne or inhaled, can cause severe respiratory health issues?
abestos
Related Flashcard Decks
Study Tips
- Press F to enter focus mode for distraction-free studying
- Review cards regularly to improve retention
- Try to recall the answer before flipping the card
- Share this deck with friends to study together
| Term | Definition |
|---|---|
A buyer offers additional consideration to add a 10-day option period to the sales contract. During this period, the buyer can: | terminate the contract for any reason |
Brenda and her husband are interested in buying a house that was constructed in 1971 that has all the original paint, windows, and flooring. What is required from the listing agent in this situation? | The agent needs to furnish the buyers with a pamphlet approved by the EPA concerning lead based paint prior to closing. |
In order to be valid, what MUST a deed have? | a legal description |
Hans bought an investment property for $5,250,000. The NOI of this property is $367,500. At what cap rate did he purchase this property? | 7% |
What does the principle of anticipation state about the valuation of property? | The present value of a property is affected by the anticipated income or utility that property will give its property owner. |
Which of these is a naturally occurring mineral that is commonly used in insulation, but if airborne or inhaled, can cause severe respiratory health issues? | abestos |
How long after an incident does a victim of housing discrimination have to file a complaint with HUD? | one year |
What is the term for deliberate deception done with the intention of gaining something of value or causing damage to another person? | fraud |
Mary has a loan whose payments and interest rate will stay the same throughout the life of the loan (not including the cost changes caused by insurance and tax rates). What kind of loan does Mary have? | fixed-rate, fully amortized |
Seller Benjamin told his listing agent, Tyson, that his house does not have a termite problem. Tyson doesn't see any visible evidence of pests. Tyson then relays this information to a buyer, citing Benjamin as his source. The buyer later finds out the home has a termite infestation. What did Agent Tyson engage in? | innocent misrepresentation |
Melissa signed a listing agreement with Shane, a local real estate agent. Melissa was then contacted by a neighbor who agreed to purchase the house, but Shane still received compensation. What type of listing agreement did Melissa and Shane sign? | exclusive right-to-sell listing |
What is unique about an exclusive right-to-sell listing agreement? | The broker gets compensation regardless of who sells the property. |
Which one of the following actions would be considered the unauthorized practice of law by a broker? | drafting a legal document that transfers an interest in a real property |
Which of these is an example of a general agency relationship? | broker and sponsored agent |
What is the defining feature of an estate for years? | It has a definite ending period and there is no automatic renewal. |
Which federal law amended the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)? | Superfund Amendments and Reauthorization Act (SARA) |
Which of these is a protected class under the federal Fair Housing law? | disability |
An example of a voidable contract is a contract that: | is made with one party who is not competent |
An investor has purchased a one-family home that they plan to rent as an investment. Which of these statements accurately describes how it can be depreciated? | It can be depreciated over 27.5 years. |
In general, a broker is responsible for: | their own actions and the actions of agents they supervise |
A contract is not considered valid unless consideration is involved. This is due to the idea that a person: | CANNOT do something of value without receiving something in turn |
How can homeowners get insurance coverage in case of a flood? | Take our a specific flood insurance policy. |
Which survey system is most commonly used in urban areas? | lot and block |
Jordan took out a loan in the amount of $265,000. Her annual interest rate is 4%. What will she pay monthly in interest? | $883.33 |
Which of the following is a participant in the secondary mortgage market? | FNMA (Fannie Mae) |
Who must fill out the Seller's Disclosure Notice? | seller |
For a listing agreement to be enforceable in court, it MUST be: | in writing |
CERCLA was passed in 1980 to: | establish a Superfund to clean up uncontrolled hazardous waste sites and to respond to spills |
Sabrina accepted Rebecca's offer to purchase her house, and the closing date is in a few weeks. Until then, what does Rebecca have? | equitable title |
Steering is the practice of: | directing people to or away from a particular area due to the protected class of the buyer or residents of the neighborhood in a manner that perpetuates segregated housing |
Darla is suing Arlo for specific performance. If she is successful, what will happen? | Arlo will be required to perform according to the terms of the contract. |
Undivided ownership of an estate, with an interest that is exclusive from other owners is called: | ownership in severalty |
If a contract specifies a legal land description, it is most likely a(n): | listing agreement |
A debit to the buyer has what effect on charges made to the parties involved in the transaction? | increases the amount due from the buyer at closing |
Burt is buying a house for $100,000 and is making a 20% down payment. He is paying a 1-point origination fee to a mortgage lender, $500 for a new survey, and $800 for an environmental report. Based on this, before any prorations, how much cash will Burt have to bring to the closing? | $22,100 |