Free Real Estate Salesperson License Exam Questions and Answers

If the value of a property is $225,000 and the mortgage is paid down to $79,000, what is the owner's equity in the property?

• AA. $146,000
• BB. $156,000
• CC. $254,000
• DD. None of the above

After an agent listed a property, the agent's sister expressed an interest in the property and asked the agent to present an offer on her behalf WITHOUT mentioning their relationship. The agent must

• AA. honor the sister's right to privacy.
• BB. refer the sister to another agent.
• CC. disclose to the seller his relationship to the potential buyer.
• DD. write an offer on behalf of a third party and then transfer title to the sister.

Which of the following contracts is valid?

• AA. An owner agrees to rent his house for $500 for 1 weekend, so that the renter can have a marijuana party.
• BB. An owner agrees to sell his home for a down payment, plus monthly installment payments over a 15-year period.
• CC. An owner of a large home agrees to rent a room to a 17-year old college freshman for $100 per month.
• DD. An owner agrees to take his house off the market based upon an oral offer from a potential buyer, whose spouse must return to inspect the house.

The Fair Housing Amendment Act of 1988 extended protection by prohibiting discrimination based on

• AA. marital status.
• BB. age.
• CC. race or national origin.
• DD. disability or familial status.

A property you are listing has a garage that extends onto the property of a neighbor. What should you do?

• AA. Recommend that the seller obtain a permit for the garage.
• BB. Encourage the seller to apply for an appurtenant easement.
• CC. Inform the title examiner of the encroaching garage.
• DD. Note the encroaching garage on the listing agreement.

Which type of value is most relevant in determining property taxes?

• AA. Depreciated value.
• BB. Assessed value.
• CC. Market value.
• DD. Mortgage value.

A common method of financing a balloon payment mortgage loan is to

• AA. extend the loan for a limited term.
• BB. obtain a wraparound loan.
• CC. obtain an equity line of credit.
• DD. convert to a shared-appreciation mortgage.

A builder is planning a subdivision zoned residential. Through a covenant in the deed, he states that, "no one can babysit or provide child care for other than their own children, on a daily or continual basis, for more than one child." Can he legally do this?

• AA. Yes, because he is seeking to achieve a desired quality in the subdivision.
• BB. No, because he can't discriminate against children.
• CC. No, because only city or state zoning laws can set these guidelines.
• DD. No, because he can only restrict building size, setbacks, and lot sizes.

Which of the following clauses in a mortgage allows the lender to demand loan repayment if a borrower sells the property?

• AA. Defeasance
• BB. Prepayment
• CC. Acceleration
• DD. Alienation

How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?

• AA. $5,500.
• BB. $6,975.
• CC. $7,450.
• DD. None of the above.