Question 1

Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:

Accepted Answer

A)  when buyer receives proper communication of seller's acceptance 
B)  immediately upon seller's acceptance 
C)  when the buyer and seller sign escrow instructions 
D)  when the broker presents the offer to the seller 
A)  when buyer receives proper communication of seller's acceptance 
B)  immediately upon seller's acceptance 
C)  when the buyer and seller sign escrow instructions 
D)  when the broker presents the offer to the seller A

Question 2

When the owner of a piece of leased property gives the lessee an option to buy, the option:

Accepted Answer

A)  requires the optionee to complete the sale 
B)  is a lien on the seller's title 
C)  requires no consideration or fee 
D)  is not a purchase contract until exercised 
A)  requires the optionee to complete the sale 
B)  is a lien on the seller's title 
C)  requires no consideration or fee 
D)  is not a purchase contract until exercised D

Question 3

A home owner purchased a rural parcel and borrowed 60% of the price using an interest only loan. The loan has an interest rate of 10% and the total interest paid the first year is scheduled to be $5,400. What was the purchase price?

Accepted Answer

A)  $70,500 
B)  $62,000 
C)  $90,000 
D)  $54,000 
A)  $70,500 
B)  $62,000 
C)  $90,000 
D)  $54,000 C

Question 4

A $100,000 note is sold to an investor, through a mortgage broker, at a 25% discount. The broker earned a 7.5% commission. What was the dollar amount of the commission?

Accepted Answer

A)  $7,500 
B)  $5,625 
C)  $3,475 
D)  $1,875 
A)  $7,500 
B)  $5,625 
C)  $3,475 
D)  $1,875

Question 5

An owner gives Ace Realty an exclusive right to sell listing for 90 days. Thirty days later the owner finds a buyer and sells the property without the services of Ace Realty. The:

Accepted Answer

A)  owner owes Ace Realty a commission 
B)  owner does not owe a commission 
C)  sale is voidable 
D)  two of the answers are correct 
A)  owner owes Ace Realty a commission 
B)  owner does not owe a commission 
C)  sale is voidable 
D)  two of the answers are correct

Question 6

From the agent's perspective, the strongest listing agreement is the

Accepted Answer

A)  Exclusive Right to Sell Listing 
B)  Exclusive Agency Listing 
C)  Open Listing 
D)  Net Listing 
A)  Exclusive Right to Sell Listing 
B)  Exclusive Agency Listing 
C)  Open Listing 
D)  Net Listing

Question 7

An investor wants to acquire income property that will generate a 10% cap rate. A 6-unit apartment complex rents for $950 per unit per month. Vacancies are 5% of gross rents and operating expenses total $20,500 per year. What is the maximum the investor should offer for this property? (round to nearest $1,000)

Accepted Answer

A)  $684,000 
B)  $573,000 
C)  $445,000 
D)  $403,000 
A)  $684,000 
B)  $573,000 
C)  $445,000 
D)  $403,000

Question 8

If the seller refuses to sell after signing a valid purchase contract and the buyer wants the property instead of money damages, the buyer will sue for:

Accepted Answer

A)  specific performance 
B)  reversion of title 
C)  damages 
D)  rescission 
A)  specific performance 
B)  reversion of title 
C)  damages 
D)  rescission

Question 9

How much would a person need to deposit into a savings account to generate $1,000 per month for one year if annual simple interest rates are 5%?

Accepted Answer

A)  $200,000 
B)  $240,000 
C)  $300,000 
D)  $360,000 
A)  $200,000 
B)  $240,000 
C)  $300,000 
D)  $360,000

Question 10

A modular home is 47 x 31 feet; the garage is 20 x 24 feet. The land is valued at $80,000. Homes like this are selling for $75 per sq. ft., while garages are selling at $20 per sq. ft., excluding land. What is the estimated value of the property? (round to nearest $1,000)

Accepted Answer

A)  $126,000 
B)  $158,000 
C)  $199,000 
D)  $206,000 
A)  $126,000 
B)  $158,000 
C)  $199,000 
D)  $206,000

Question 11

A duplex rents for $700 per unit per month. Expenses and vacancies run 30% of gross rents. With a capitalization rate of 6%, what is the value?

Accepted Answer

A)  $196,000 
B)  $110,000 
C)  $168,000 
D)  $174,500 
A)  $196,000 
B)  $110,000 
C)  $168,000 
D)  $174,500

Question 12

A 5-unit apartment property rents for $820 per unit per month. Expenses and vacancies average $800 per month. The asking price is $660,000. What is the capitalization rate?

Accepted Answer

A)  5% 
B)  6% 
C)  10% 
D)  11% 
A)  5% 
B)  6% 
C)  10% 
D)  11%

Question 13

A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:

Accepted Answer

A)  agent feels the home was not suited for the people 
B)  owners were out of town and had left instructions the home was not to be shown to anyone during their absence 
C)  owners had given specific instructions against showing the home to minority buyers 
D)  agent felt the buyers would not like the location 
A)  agent feels the home was not suited for the people 
B)  owners were out of town and had left instructions the home was not to be shown to anyone during their absence 
C)  owners had given specific instructions against showing the home to minority buyers 
D)  agent felt the buyers would not like the location

Question 14

Sales price $298,500, buyer to put $86,500 down and to assume seller's loan of $230,000. The documentary transfer tax is:

Accepted Answer

A)  $330.15 
B)  $328.35 
C)  $253 
D)  $95.15 
A)  $330.15 
B)  $328.35 
C)  $253 
D)  $95.15

Question 15

A 1/4 acre lot sold for $6 per square foot. The commission was 10%. How much did the broker make?

Accepted Answer

A)  $6,534 
B)  $4,356 
C)  $3,794 
D)  $3,026 
A)  $6,534 
B)  $4,356 
C)  $3,794 
D)  $3,026

Question 16

A person purchased a small condo for $320,000, putting $100,000 down and obtaining a new loan for the balance at 8.4% payable $1,800 per month amortized for 30 years. What will be the loan balance after one payment?

Accepted Answer

A)  $218,200 
B)  $219,740 
C)  $221,000 
D)  $220,000 
A)  $218,200 
B)  $219,740 
C)  $221,000 
D)  $220,000

Question 17

Surveyors have determined that a tract of desert land contains 364,480 square feet. One portion of 80 feet by 200 feet is owned by the government. The private portion of the tract is offered for $1,380 per acre. What is the asking price for the private parcel?

Accepted Answer

A)  $12,040 
B)  $11,950 
C)  $11,040 
D)  $12,540 
A)  $12,040 
B)  $11,950 
C)  $11,040 
D)  $12,540

Question 18

What is the rate of interest on a note for $3,600, due in 180 days, if the total interest to be paid is $400?

Accepted Answer

A)  25% 
B)  33% 
C)  22% 
D)  11% 
A)  25% 
B)  33% 
C)  22% 
D)  11%

Question 19

Sellers should disclose defects in the property

Accepted Answer

A)  verbally to the buyer 
B)  on the Transfer Disclosure Statement 
C)  any time prior to close of escrow 
D)  only to their agent 
A)  verbally to the buyer 
B)  on the Transfer Disclosure Statement 
C)  any time prior to close of escrow 
D)  only to their agent

Question 20

An owner sold a property for a $100,000 profit. The $100,000 represents a 25% profit on the selling price. What was the selling price?

Accepted Answer

A)  $250,000 
B)  $300,000 
C)  $375,000 
D)  $400,000 
A)  $250,000 
B)  $300,000 
C)  $375,000 
D)  $400,000

Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:

When the owner of a piece of leased property gives the lessee an option to buy, the option:

A home owner purchased a rural parcel and borrowed 60% of the price using an interest only loan. The loan has an interest rate of 10% and the total interest paid the first year is scheduled to be $5,400. What was the purchase price?

A $100,000 note is sold to an investor, through a mortgage broker, at a 25% discount. The broker earned a 7.5% commission. What was the dollar amount of the commission?

An owner gives Ace Realty an exclusive right to sell listing for 90 days. Thirty days later the owner finds a buyer and sells the property without the services of Ace Realty. The:

From the agent's perspective, the strongest listing agreement is the

If the seller refuses to sell after signing a valid purchase contract and the buyer wants the property instead of money damages, the buyer will sue for:

How much would a person need to deposit into a savings account to generate $1,000 per month for one year if annual simple interest rates are 5%?

A modular home is 47 x 31 feet; the garage is 20 x 24 feet. The land is valued at $80,000. Homes like this are selling for $75 per sq. ft., while garages are selling at $20 per sq. ft., excluding land. What is the estimated value of the property? (round to nearest $1,000)

A duplex rents for $700 per unit per month. Expenses and vacancies run 30% of gross rents. With a capitalization rate of 6%, what is the value?

A 5-unit apartment property rents for $820 per unit per month. Expenses and vacancies average $800 per month. The asking price is $660,000. What is the capitalization rate?

A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:

Sales price $298,500, buyer to put $86,500 down and to assume seller's loan of $230,000. The documentary transfer tax is:

A 1/4 acre lot sold for $6 per square foot. The commission was 10%. How much did the broker make?

A person purchased a small condo for $320,000, putting $100,000 down and obtaining a new loan for the balance at 8.4% payable $1,800 per month amortized for 30 years. What will be the loan balance after one payment?

Surveyors have determined that a tract of desert land contains 364,480 square feet. One portion of 80 feet by 200 feet is owned by the government. The private portion of the tract is offered for $1,380 per acre. What is the asking price for the private parcel?

What is the rate of interest on a note for $3,600, due in 180 days, if the total interest to be paid is $400?

Sellers should disclose defects in the property

An owner sold a property for a $100,000 profit. The $100,000 represents a 25% profit on the selling price. What was the selling price?

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Real Estate Contracts and Mandated Disclosures

Introduction to Real Estate Finance

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters

Exam 6: Practical Real Estate Mathematics

Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:

When the owner of a piece of leased property gives the lessee an option to buy, the option:

A home owner purchased a rural parcel and borrowed 60% of the price using an interest only loan. The loan has an interest rate of 10% and the total interest paid the first year is scheduled to be $5,400. What was the purchase price?

A $100,000 note is sold to an investor, through a mortgage broker, at a 25% discount. The broker earned a 7.5% commission. What was the dollar amount of the commission?

An owner gives Ace Realty an exclusive right to sell listing for 90 days. Thirty days later the owner finds a buyer and sells the property without the services of Ace Realty. The:

From the agent's perspective, the strongest listing agreement is the

If the seller refuses to sell after signing a valid purchase contract and the buyer wants the property instead of money damages, the buyer will sue for:

How much would a person need to deposit into a savings account to generate $1,000 per month for one year if annual simple interest rates are 5%?

A modular home is 47 x 31 feet; the garage is 20 x 24 feet. The land is valued at $80,000. Homes like this are selling for $75 per sq. ft., while garages are selling at $20 per sq. ft., excluding land. What is the estimated value of the property? (round to nearest $1,000)

A duplex rents for $700 per unit per month. Expenses and vacancies run 30% of gross rents. With a capitalization rate of 6%, what is the value?

A 5-unit apartment property rents for $820 per unit per month. Expenses and vacancies average $800 per month. The asking price is $660,000. What is the capitalization rate?

A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:

Sales price $298,500, buyer to put $86,500 down and to assume seller's loan of $230,000. The documentary transfer tax is:

A 1/4 acre lot sold for $6 per square foot. The commission was 10%. How much did the broker make?

A person purchased a small condo for $320,000, putting $100,000 down and obtaining a new loan for the balance at 8.4% payable $1,800 per month amortized for 30 years. What will be the loan balance after one payment?

Surveyors have determined that a tract of desert land contains 364,480 square feet. One portion of 80 feet by 200 feet is owned by the government. The private portion of the tract is offered for $1,380 per acre. What is the asking price for the private parcel?

What is the rate of interest on a note for $3,600, due in 180 days, if the total interest to be paid is $400?

Sellers should disclose defects in the property

An owner sold a property for a $100,000 profit. The $100,000 represents a 25% profit on the selling price. What was the selling price?

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Agency

Real Estate Contracts and Mandated Disclosures

Introduction to Real Estate Finance

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters