Exam & Quiz Questions

Question 1

A licensee preparing a competitive market analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is ten years old and has two baths, the comparable property is five years old and has one bath. In this case, the licensee should adjust the:

Answer 1

sale price of the comparable property, down for the age and up for the number of baths

Question 2

A portion of an advertisement reads: “New four-bedroom, two-bath home for sale in a family neighborhood. Yours for only $1,100 per month.” This advertisement violates the provisions of the:

Answer 2

Truth in Lending and Fair Housing Acts

Question 3

If the purchase price on a condominium unit is $60,000, the amount being mortgaged is $55,200, and there are 2.5 points on the mortgage, which of the following percentages is the loan-to-value ratio on the following transaction?

Answer 3

92%

Question 4

mortgagor

Answer 4

borrower

Question 5

example of installment sale

Answer 5

seller financing

Question 6

acceleration clause

Answer 6

allow lender to demand paid in full upon default of loan

Question 7

mortgage lien

Answer 7

pledge of the real estate as collateral for a loan

Question 8

primary purpose of secondary mortgage market

Answer 8

buy loans on real estate

Question 9

something a lender can consider when deciding to lend money

Answer 9

debt load (DTI)

Question 10

chattel mortgage

Answer 10

mortgage on personal property

Question 11

mortgage insurance premium (MIP) charged on which loans?

Answer 11

FHA loans

Question 12

financial points are

Answer 12

calculated on the loan amount

Question 13

amortizing mortgage, borrower pays

Answer 13

both principal and interest in each payment

Question 14

down payment requirement of conventional loan

Answer 14

20%

Question 15

who is required to abide by the terms of an offer?

Answer 15

neither buyer nor seller

Question 16

contract can be voided by: revocation, rejection, accord/satisfaction, all of the above

Answer 16

accord and satisfaction

Question 17

is a listing agreement a bilateral or unilateral agreement?

Answer 17

unilateral

Question 18

Seller is required to pay commission on ANY sale during the agreement of a:

Answer 18

exclusive right to sell

Question 19

are carryover clauses required in a valid brokerage agreement

Answer 19

no

Question 20

seller brokerage agreement is between

Answer 20

seller and brokerage agency (listing company)

Question 21

brokerage agreement establishes

Answer 21

agency or non-agency relationship

Question 22

purchase and sale agreement is between

Answer 22

buyer and seller

Question 23

RESPA act covers which type of property?

Answer 23

1 to 4 residential units

Question 24

Foreign Investment in Real Estate Tax Act requires _____ of sales price be withheld from the closing proceeds for property that is sold by foreign nationals

Answer 24

10%

Question 25

Familial status provides protection against: marital status, being divorced, having children under 18, all of the above

Answer 25

Children under 18

Question 26

Civil Rights Act of 1866 prohibits discrimination based on

Answer 26

race

Question 27

inducing a person to sell based on entrance of a protected class into a neighborhood

Answer 27

blockbusting

Question 28

Property that would be covered by Americans with Disabilities Act

Answer 28

office building (public building)

Question 29

example of boycott

Answer 29

15 RE companies getting together and deciding not to do business with a specific RE company

Question 30

NOT a triggering term in Truth in Lending Reg Z in terms of payments/price

Answer 30

CASH PRICE

Question 31

Married couple, joint return are excluded from fed income taxes on a max of ________ profit on the sale of their home

Answer 31

$500,000

Question 32

To qualify for exclusion of federal income taxes up to the max amount, one must live in the property ____ out of the past 5 years.

Answer 32

2

Question 33

Cap rate for property sold $940,000 with an NOI of $41,000

Answer 33

4.4

Question 34

Property value with a gross income of 74,000 and GIM of 6

Answer 34

444,000

Question 35

Value of 20 year old building that would cost $800,000 to build today. Depreciation = %40. Land value = $100,000

Answer 35

$580,000

Question 36

Value placed on a property when taken by eminent domain

Answer 36

condemnation value - must be fair market value

Question 37

Difference between modular and mobile

Answer 37

mobile has a metal undercarriage

Question 38

Sill

Answer 38

attached to the top of foundation walls

Question 39

functional obsolescence is loss of value due to

Answer 39

4 bedroom only having 1 bathrooms

Question 40

cost approach best suited for

Answer 40

school building (the "other category")

Question 41

True or false: cap rate is a rate of return

Answer 41

true

Question 42

True or false: sq footage of a building is considered when determining value by income approach

Answer 42

false

Question 43

Effective gross income equation

Answer 43

gross income - vacancy and collection losses

Question 44

flashing is found

Answer 44

where a chimney and roof meet

Question 45

GLAAG of non-dormered cape

Answer 45

multiple area of first floor by 1.5

Question 46

True or false: Colonial is a style of roof

Answer 46

false

Question 47

Fruits of the soil are

Answer 47

perennial plants owned by the tenant or owner of the property

Question 48

an easement is

Answer 48

the legal right to use another person's property

Question 49

True or false: life estate is an example of a leasehold estate

Answer 49

false

Question 50

Reversionary

Answer 50

grantor of a life estate when the property is returned to the grantor when the life estate holder dies and a remainderman was not named

Question 51

actual eviction

Answer 51

landlord gives proper notice to evict a tenant

Question 52

In Maine, the maximum security deposit that can be charged a person who rents a SFH is ____ month(s) rent

Answer 52

2

Question 53

Unique aspect of joint tenancy

Answer 53

rights of survivorship

Question 54

A quit claim deed gives

Answer 54

only the interest that the grantor has

Question 55

Mortgagee's title insurance

Answer 55

protects the lender in the event of title issues

Question 56

Key required doc of a condo RESALE

Answer 56

Resale Cert

Question 57

Voluntary alienation after dead

Answer 57

transfer of real estate by will

Question 58

Quit claim deed with covenant guarantees

Answer 58

there will not be any title defects that originate during the grantor's ownership

Question 59

covenant of quiet enjoyment in a deed promises

Answer 59

Grantee will not disturbed because of a defect in the title

Question 60

``` Which of the following is an economic characteristic of real estate? uniqueness indestructibility size liquidity ```

Answer 60

liquidity

Question 61

A subdivision is defined as dividing a parcel of land into ____ or more lots in a 5 year period

Answer 61

3

Question 62

Great Pond is a naturally occurring body of water of _____ acres or more

Answer 62

10

Question 63

True or false: owner of a property with Tree Growth Tax must have a registered forester provide a forest plan at least once every 5 years

Answer 63

false; once every 10 years

Question 64

Adverse possession must occupy the land for at least ___ years

Answer 64

20

Question 65

True or false: you would not need a real estate license to promote your parents house for 3 months with a commission of 2% of the sales price if it sells

Answer 65

false

Question 66

You may be penalized by which of the following for breaking license law: - imprisonment of up to 1 year per violation - $4,000 fine (up to) - Loss of any commission earned in the transaction - all of the above

Answer 66

loss of commission

Question 67

You must have a ________ license in order to be a Designated Broker

Answer 67

broker

Question 68

A person must be at least ___ years old to receive a Maine real estate license

Answer 68

18

Question 69

A broker's license is issued for ___ years

Answer 69

2

Question 70

CE hours to complete to renew broker license

Answer 70

21

Question 71

Maine RE Commission consists of __ public members and __ industry members

Answer 71

2 public; 4 industry

Question 72

Sales agent probationary period for paperwork review is

Answer 72

90 days

Question 73

A licensee may disclose terms of an offer with the written permission of

Answer 73

both buyer and seller

Question 74

Who is responsible for providing required PD to the buyer of a listed property?

Answer 74

selling licensee (buyer agent)

Question 75

If information about the buyer client's motivation is _______, the licensee may disclose this information

Answer 75

made public by a source other than the licensee

Question 76

A licensee must disclose they are licensed when

Answer 76

Buying property not listed with a real estate company

Question 77

Seller agent has what duty to the buyer customer?

Answer 77

Honest treatment

Question 78

A disclosed dual agency consent agreement must

Answer 78

be provided to all clients of companies that practice

Question 79

Real Estate Brokerage Agreements is required to be given to

Answer 79

buyers and sellers of 1-4 residential units