CT Real Estate Licensing Practice Exam, Exams of Nursing

Download CT Real Estate Licensing Practice Exam and more Exams Nursing in PDF only on Docsity! CT Real Estate Licensing Practice Exam CT Real Estate Licensing Practice Exam with Correct Answers. A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely: 1. an exclusive agency listing. CT Real Estate Licensing Practice Exam 2. an exclusive right to sell listing. 3. a net listing. 4. an advance fee listing. - Exact Answer 1. an exclusive agency listing. A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called: 1. a buy-sell agreement. 2. an option contract. 3. an installment contract. 4. a vendor's lien interest. - Exact Answer 2. an option contract. A mentally disabled person who has been declared incompetent by a judge wishes to enter into a contract. Under what conditions can such a person do so? CT Real Estate Licensing Practice Exam 1. a management agreement. 2. payment of a management fee. 3. an exclusive agency agreement. 4. an independent contractor agreement. - Exact Answer 1. a management agreement Earnest money should be deposited into a trust account 1. in a timely manner, according to state laws. 2. upon removal of all contingencies. 3. at the broker's discretion. 4. according to MLS rules. - Exact Answer 1. in a timely manner, according to state laws. A lender will make an 80% loan-to-value loan on a property that is appraised for $72,250 and sells for $73,500. If the buyer has saved $14,450 for a down payment, how much more (if any) will he need in CT Real Estate Licensing Practice Exam order to make the down payment required under the terms of this loan? 1. He has $1,000 more than he needs for the down payment. 2. He has exactly the amount needed for the down payment. 3. He needs an additional $250 in order to make the down payment. 4. He needs an additional $1,250 in order to make the down payment. - Exact Answer 4. He needs an additional $1,250 in order to make the down payment. A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given 1. actual notice. 2. prescriptive notice. 3. constructive notice. 4. exculpatory notice. - Exact Answer 3. constructive notice. CT Real Estate Licensing Practice Exam Even with title insurance, the policyholder may still suffer losses arising from 1. forged documents. 2. incompetent grantors. 3. defects found in recorded public records. 4. land use change due to zoning ordinances. - Exact Answer 4. land use change due to zoning ordinances. Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT 1. loyalty. 2. competence. 3. indemnification. 4. full disclosure. - Exact Answer 3. indemnification. CT Real Estate Licensing Practice Exam 2. $87 3. $267 4. $342 - Exact Answer 3. $267 Failure of a real estate agent to comply with Fair Housing practices is punishable by: 1. license revocation only. 2. criminal prosecution only. 3. license revocation and criminal prosecution. 4. probation. - Exact Answer 3. license revocation and criminal prosecution. The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, 1. will no longer lend or guarantee loans on these older properties. CT Real Estate Licensing Practice Exam 2. require evidence of testing for and disclosure of any type of lead contamination before they will lend or guarantee loans on such properties. 3. require funds to be escrowed for lead abatement as a condition of lending or guaranteeing loans on such properties. 4. require the buyer to acknowledge disclosure of the presence of any known lead paint. - Exact Answer 4. require the buyer to acknowledge disclosure of the presence of any known lead paint. State laws differ on whether a buyer is entitled to know about: 1. a suicide that occurred in the house last year. 2. possible lead paint in the property. 3. the flooding of the basement every spring. 4. the fact that the sellers are getting a divorce. - Exact Answer 1. a suicide that occurred in the house last year. CT Real Estate Licensing Practice Exam Three people buy a house as tenants in common. Subsequently, two of the owners want to sell, but the third discourages each potential purchaser. The two owners who wish to sell the house can: 1. sell without the third owner's consent. 2. file an action for partition against the third owner. 3. file for a lien against the third owner's interest as damages. 4. force the third owner to sell if they invoke the rule of specific performance. - Exact Answer 2. file an action for partition against the third owner. 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 at some future time. This is an example of the principle of: 1. substitution. 2. contribution. 3. conformity. CT Real Estate Licensing Practice Exam 1. the original 13 states. 2. subdivisions. 3. quitclaim deeds. 4. mortgages or deeds of trust. - Exact Answer 1. the original 13 states. Alex, 14, and Kent, 17, inherited a piece of property. The next year, Kent deeded the whole property to Alex, who immediately put it on the market. An adult buyer made a written offer which was accepted by Alex. Which of the following is TRUE?: 1. Kent must also sign the contract and any deed. 2. The signature of Alex's guardian is required. 3. The buyer cannot legally compel Alex to sell. 4. Both buyer and seller are bound by the contract. - Exact Answer 3. The buyer cannot legally compel Alex to sell. CT Real Estate Licensing Practice Exam Antitrust laws prohibit competing brokers from all of the following EXCEPT: 1. boycotting other brokers in the marketplace. 2. dividing the market to restrict competition. 3. agreeing to set sales commissions and management rates. 4. receiving compensation from both the buyer and the seller. - Exact Answer 4. receiving compensation from both the buyer and the seller. A couple are moving to a new city. They have decided to rent temporarily before buying a house to see which part of the city they would like to live in. What type of lease would BEST suit the couple's needs? 1. Lease option. 2. Rental lease. 3. Month-to-month lease. 4. Lease purchase. - Exact Answer 3. Month-to-month lease. CT Real Estate Licensing Practice Exam At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing? 1. Credit seller $300; credit buyer $300. 2. Debit seller $300; debit buyer $300. 3. Credit seller $300; debit buyer $300. 4. Debit seller $300; credit buyer $300. - Exact Answer 4. Debit seller $300; credit buyer $300. A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within the Department of Housing and Urban Development (HUD) or by a Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that: 1. the case will be more thoroughly reviewed. CT Real Estate Licensing Practice Exam 3. the party or parties employing the broker 4. the party or parties paying the commission - Exact Answer 3. the party or parties employing the broker A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as: 1. steering. 2. blockbusting. 3. redlining. 4. conciliation. - Exact Answer 1. steering. A broker and the buyers he represents are anxiously awaiting the closing on their new home. The closing is scheduled in 4 days. The buyers inform the broker that they just received revised Loan Estimate and Closing Disclosure forms from the lender, indicating the Annual CT Real Estate Licensing Practice Exam Percentage Rate on their loan has increased by 0.3%. Based on the TILA- RESPA Integrated Disclosure rule, what action should the broker take in this situation? 1. Assist the buyers in calculating the new loan payments and ask them if they want to proceed with the closing as scheduled. 2. Advise the buyers to file a legal action against the lender for violation of predatory lending practices under the Real Estate Settlement Procedures Act. 3. Call the lender and inform them that they are in violation of the seven-day waiting period and cannot change the terms of the loan this close to the closing. 4. Confirm with the seller's broker, the lender and the - Exact Answer 4. Confirm with the seller's broker, the lender and the closing entity that the closing must be delayed to allow for a new seven-day waiting period because of the interest rate revision. The FHA functions MOST like: CT Real Estate Licensing Practice Exam 1. a bank or savings and loan association. 2. a mortgage company. 3. an investment group. 4. an insurance company. - Exact Answer 4. an insurance company. If the terms of a contract indicate that Party A will be obliged to perform her part of the contract only if Party B chooses to take a certain action, then the contract is a: 1. unilateral contract in which only Party B has made a promise to perform. 2. unilateral contract in which only Party A has made a promise to perform. 3. bilateral contract which both parties are obliged to perform. 4. void contract. - Exact Answer 2. unilateral contract in which only Party A has made a promise to perform. A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the seller agreed to include all kitchen CT Real Estate Licensing Practice Exam A seller mentions to his agent that the previous owners of his property may have dumped hazardous waste on the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), who is liable for damages from the dumping prior to the sale of the property? 1. Seller. 2. Agent. 3. Company that manufactured the waste. 4. Federal government. - Exact Answer 1. Seller. The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, 1. his undivided interest passes to his heirs. 2. the last surviving owner holds title in severalty. 3. his undivided interest passes to the surviving co-owners. CT Real Estate Licensing Practice Exam 4. the principle of the right to survivorship determines the rights of the surviving co-owners. - Exact Answer 1. his undivided interest passes to his heirs. Federal Truth-in-Lending laws are also known as 1. the Freedom of Information Act. 2. the Equal Credit Opportunity Act. 3. Regulation Z. 4. Title VIII. - Exact Answer 3. Regulation Z. A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if 1. it satisfies or exceeds all terms included in the counteroffer. 2. the owner withdraws the counteroffer before it is accepted. CT Real Estate Licensing Practice Exam 3. the owner gives the first buyer notice that another offer was received and an opportunity to revise the bid. 4. the first buyer is informed, in writing, of the owner's intent to accept another offer. - Exact Answer 2. the owner withdraws the counteroffer before it is accepted. In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers? 1. One. 2. Two. 3. Three. 4. Any number. - Exact Answer 1. One. According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the: 1. cash price or amount of the loan. CT Real Estate Licensing Practice Exam A deed restriction is applicable to the activities of: 1. the current owner only. 2. present and future owners. 3. future owners only. 4. mortgagors. - Exact Answer 2. present and future owners. If you own a building free and clear that is worth $115,000 and want an annual return of 12%, what net income is needed each month? 1. $1,062 2. $1,150 3. $9,583 4. $13,800 - Exact Answer 2. $1,150 CT Real Estate Licensing Practice Exam A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have? 1. Gross lease. 2. Proprietary lease. 3. Tenancy at sufferance. 4. Tenancy at will. - Exact Answer 4. Tenancy at will. The sellers want to accept a purchase offer, but only if the price is raised by $5,000. What should they give the prospective buyer? 1. Counteroffer. 2. Novation. 3. New listing contract. 4. Contingency. - Exact Answer 1. Counteroffer. CT Real Estate Licensing Practice Exam A licensee is listing a property in a known flood plain. The seller flatly denies that the structure and the property have ever been flooded. What is the licensee required to do in this situation? 1. Rely on the face value of seller's statement. 2. Inform the seller of potential legal consequences if this claim is untrue. 3. Inform the seller of the legal obligation to disclose facts regarding flood plains. 4. Refuse to list the property and explain to the seller that all properties in this area flood. - Exact Answer 3. Inform the seller of the legal obligation to disclose facts regarding flood plains. Salesperson Susan was at the local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. Susan should: 1. excuse herself from the discussion as this could constitute illegal blockbusting. CT Real Estate Licensing Practice Exam During the listing presentation, the seller questions the amount of commission to be paid and is told: 1. the amount is set by law. 2. everyone charges the same amount. 3. the amount of commission is negotiable. 4. the agent that charges a lower commission will not do as good a job selling the property. - Exact Answer 3. the amount of commission is negotiable. A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with: 1. the builder. 2. the buyers. 3. the builder and the buyers. CT Real Estate Licensing Practice Exam 4. neither the builder nor the buyers. - Exact Answer 1. the builder. When a home is purchased using an ARM, the monthly loan payment on the mortgage will: 1. rise slightly in each adjustment period until the cap is reached. 2. be adjusted automatically to ensure that negative amortization does not occur. 3. be based on a very low interest rate to begin with, but will rise to the market rate at the first adjustment. 4. vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced. - Exact Answer 4. vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced. Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the following would be the most appropriate way for the listing agent to respond? CT Real Estate Licensing Practice Exam 1. If you feel it is in your best interest, please do so. 2. Since I represent the seller I am not able to Exact Answer your question. 3. I am not aware of any issues that such an inspection would identify. 4. Since the seller has provided a property disclosure, there should be no need for any further inspection. - Exact Answer 1. If you feel it is in your best interest, please do so. A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable? 1. The seller cannot write and sign with an "X". 2. The listing contract specifies that no other broker may show the house. 3. The seller is heavily under the influence of alcohol at the time of signing. CT Real Estate Licensing Practice Exam 2. $24,000 3. $24,408 4. $26,720 - Exact Answer 4. $26,720 A seller signs a listing agreement with a broker. The seller can cancel the listing at any time without legal liability if: 1. an offer has not yet been accepted. 2. an offer has not yet been presented. 3. the broker is given at least 48 hours notice. 4. the broker violates the terms of the contract. - Exact Answer 4. the broker violates the terms of the contract. Which of the following statements best describes the risk taken by NOT recording a deed? 1. Easements of record would become void. 2. There is no risk as long as the deed has been notarized. CT Real Estate Licensing Practice Exam 3. The delivery of a deed to a grantee could be invalidated. 4. A subsequent purchaser's recorded deed could take precedence over any unrecorded instrument. - Exact Answer 4. A subsequent purchaser's recorded deed could take precedence over any unrecorded instrument. When preparing a market data estimate of value, which of the following categories of adjustment is NOT essential? 1. The amount of square footage. 2. The location of the property. 3. The original cost of the building. 4. The date of sale of the comparables. - Exact Answer 3. The original cost of the building. A contract for the sale of a home has been signed by both parties. This contract will remain executory until: 1. acceptance of the buyer's offer is delivered to the buyer. CT Real Estate Licensing Practice Exam 2. the transaction has closed. 3. all contingencies have been met. 4. the buyer takes possession. - Exact Answer 2. the transaction has closed. On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month. 1. $285 2. $288 3. $380 4. $852 - Exact Answer 2. $288 Three identical homes in a neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which would have sold for the lowest price?