Real Estate Test Flashcards Preview

Finance 307 - Exam 1 > Real Estate Test > Flashcards

Flashcards in Real Estate Test Deck (209):
1

A contract for an unlawful purpose, such as the distribution of illegal substances, would be:

valid
void
voidable
unenforceable

Void .

2

The Smithers receive an offer from the Browns who wish to purchase the Smithers home. The Smithers accept. The broker for the Browns is out of town but receives a telephone call from the Smithers’ broker informing her of the Smithers’ acceptance.

This is still an offer and not yet a binding contract.

The Smithers still have a chance to change their mind and withdraw their acceptance.

Because of the phone call to Brown’s broker, there is a binding contract.

The Browns can still withdraw their offer as they have not received a signed contract.

Because of the phone call to Brown’s broker, there is a binding contract.

3

Which of the following is FALSE regarding an open listing?
The Seller can have several open listings in effect at any one time.
If the Broker produces a ready, willing, and able Buyer acceptable to the Seller, the Broker is entitled to a commission.
The Seller does not offer exclusivity to the Broker.
If the Seller finds his own Buyer, he is still obligated for a commission.

If the Seller finds his own Buyer, he is still obligated for a commission. -

4

A 15 year old girl enters into a written agreement with a dance studio to take dance lessons. Her contract is:
valid.
void.
voidable.
unenforceable.

Voidable

5

Contracts for the sale of real estate or for personal property over $500 must be in writing to be enforceable according to:

statute of limitations.
statute of liberty.
statute of frauds.
parole evidence rule.

statute of frauds.

6

The type of contract that was created purely by the actions of the parties is a(n):

implied contract.
expressed contract.
executor contract.
unilateral contract.

implied contract.

7

Which of the following is NOT considered an essential element of ALL contracts?

consideration.
offer and acceptance.
legality of object.
in writing and signed.

in writing and signed.

8

The Smiths have an agreement with the Kellys that in the event the Kellys find a purchaser for their home, the Smiths will be given a chance to match the purchaser’s offer and buy the house themselves. This is a(n):

voidable contract.
option contract.
unenforceable contract.
right of first refusal

right of first refusal

9

The purchasers have submitted an offer to the seller which stipulates the buyers must sell their current house before they can close on the new one. This is called a(n):

addendum.
contingency
backup offer.
None of the Above.

contingency

10

The sellers, Bob and Mary Decker, accepted the offer to purchase from the Nelsons but the Deckers wish to stay in the property for six months after closing in exchange for the payment of rent. This condition of the agreement is called a(n):

sale-leaseback.
estate for years.
contingency.
All of the Above

All of the Above

11

Tenant Tom has not paid his rent in two months and avoids all contact with Landlord Lynn. Frustrated, Lynn enters the apartment when Tom is at work and puts all of Tom’s personal property to the curb. Additionally, Lynn changes the locks. This is:

legal since Tom is in breach of his lease.
justified as Tom is more than 30 days late.
illegal as it is a constructive eviction.
unethical as Tom will have no shelter.

illegal as it is a constructive eviction.

12

Van Horn leases space from Perfect Properties, LLC to operate a computer repair store in a small shopping center. Van Horn pays $2,400 per month in rent and must also pay 5% of his gross sales. His lease is most likely a(n): percentage lease. .

percentage lease
gross lease.
indexed lease.
escalation lease.

percentage lease

13

Which of the following would be reasonable issues to address in any lease agreement?

rent due date, date rent is considered late, and any penalty.
the names of all occupants and the intended use.
who will be responsible for repairs and repair caps.
All of the Above.

All of the Above.

14

Buyer J makes an offer of $225,000 on Seller W’s home which is listed for $227,500. While W is considering the offer, Buyer J contacts his agent requesting the offer be withdrawn. Meanwhile, Seller W has signed the contract and notified his agent. Which of these statements is TRUE if it were to occur?

Buyer J cannot withdraw the offer as Seller W has already accepted and signed.
Buyer J cannot withdraw the offer as the agent for Seller W was notified of the acceptance.
Buyer J can withdraw the offer since there was no communication of acceptance to him or his agent.
Buyer J can withdraw the offer since there is no acceptance of the offer.

Buyer J can withdraw the offer since there was no communication of acceptance to him or his agent.

15

The most accurate term to describe the person making an offer is the:

buyer.
seller.
offeree. -
offeror.

offeror.

16

The seller is to the listing agreement as the buyer is to the:

listing agreement.
buyer brokerage agreement.
purchase agreement.
lease.

buyer brokerage agreement.

17

The following legal description was found on the subject property: The NW 1/4 of the NE 1/4 of the SE 1/4 of Section 7, Township 11 North, Range 6 West. This is what type of legal description?

Metes and Bounds.
Lot, Block and Subdivision.
Government Rectangular Survey.
Assessor’s Parcel Number.

Government Rectangular Survey.

18

How much land is in the parcel: The NW 1/4 of the NE 1/4 of the SE 1/4 of Section 7, Township 11 North, Range 6 West?

2.5 acres
10 acres
160 acres
640 acres

10 acres

19

An essential requirement for any contract to be valid is the offering of money or anything of value. This is known as:

currency.
consideration.
financing.
colic.

consideration.

20

Broker Adams is meeting with the seller of a duplex. Adams estimates the value of the duplex to be $195,000. Adams and the seller enter into a listing agreement with no specific commission but instead, the seller tells Adams he can have any funds above the seller’s required proceeds of $75,000. What type of listing does Adams have?

exclusive agency.
open listing.
flat fee listing.
None of the Above.

None of the Above.

21

A salesperson advertises a property without including the name of the broker. This practice is allowed in which of the following instances?

The salesperson is the listing agent.
The salesperson owns the property and is selling it as a “for sale by owner”.
The seller has given her permission to exclude the broker’s name.
The salesperson is paying 100% of the cost of the ad.

The salesperson owns the property and is selling it as a “for sale by owner”.

22

A salesperson sold a short sale property which was listed by her broker a year ago on an exclusive right to sell basis. The salesperson may accept her commission payment from:

The buyer.
The seller.
The listing broker.
The listing broker’s attorney.

The listing broker.

23

correct A real estate broker is usually which type of agent?

General Agent.
Special Agent.
Universal Agent.
Free Agent.

Special Agent.

24

A listing broker has earned a commission because her listing was sold by a cooperating broker and his salesperson. The listing broker must pay some portion of her earned commission to which other party?

The salesperson who made the sale.
The broker of the salesperson who made the sale.
Whoever is listed in the purchase contract as “listing broker”.
Only the listing salesperson.

The broker of the salesperson who made the sale.

25

In a real estate transaction, the listing broker has an agency relationship with:

The seller.
The buyer.
All parties in the transaction.
None of the parties in the transaction.

The seller.

26

Broker Tiffany is a “special agent” of principal Bob. Her responsibilities to Bob are as follows?

Represent Bob in a specific transaction.
Represent Bob’s interests in all real estate transactions.
Exercise a power of attorney for Bob.
Exercise authority for all of Bob’s affairs.

Represent Bob in a specific transaction.

27

A broker manages a large, busy office with over 100 salespeople, so she has had to establish policies and procedures to avoid chaos and confusion. A salesperson from another brokerage submitted a written offer on one of her listings, which she quickly e-mailed to her client. Later that day, two more offers came in: one lower and one higher than the first. According to her policy, she waited to present these two new offers until her client, the seller, has considered the first offer. Before the end of the day, the seller accepted the first offer. In this case the broker’s actions were:

Permissible, provided that the agent formally rejected the second and third offers.
Not permissible, because the broker must submit all offers to the seller in a timely manner.
Not permissible, because the broker must notify the second and third buyers that an offer is already being considered by the seller.
Permissible, because the broker followed her own procedures

Not permissible, because the broker must submit all offers to the seller in a timely manner.

28

When a broker lists a property for sale, the broker has the power to do which of the following?

Bind the seller to a higher-than-list contract.
Reject a much-lower-than-list offer on the seller’s property.
Advertise the seller’s property.
Offer legal advice to the seller.

Advertise the seller’s property.

29

Jean Philips, the broker for Empty Nest Realty, just took an exclusive-right-to-sell listing on Bob Williams’ hilltop house in the valley. Jean will receive her commission when which of the following events occur?

When the transaction closes.
When Bob signs an offer to purchase.
When all counteroffers are accepted by all parties.
When she finds a qualified buyer who is ready willing, and able to purchase the home under the terms advertised on the listing.

When the transaction closes.

30

As used in the real estate profession, the word “agency” describes:

A mandatory part of the name of any company dealing in real estate transactions.
The fiduciary relationship between an agent and a principal.
The relationship between a real estate broker and the associated salespeople.
The relationship between an agent and a customer.

The fiduciary relationship between an agent and a principal.

31

As a real estate broker, Ann has entered into a fiduciary relationship with a buyer, John, who wants to purchase a home. Which of the following statements does NOT describe Ann’s relationship with John?

Ann is John’s agent.
Ann owes loyalty to John.
Ann is a neutral third-party.
Ann must conform to John’s legal instructions.

Ann is a neutral third-party.

32

correct Broker Bradley appoints Alice Agent, and only Alice, to represent a seller. Alice would be?

An appointed or designated agent.
A dual agent.
An affiliated agent.
A representative agent.

An appointed or designated agent.

33

Our modern system of agency is one of well-defined fiduciary responsibilities. These are:

Obedience, loyalty, disclosure, accountability, confidentiality.
Care, obedience, loyalty, disclosure, accountability, confidentiality.
Trust, care, obedience, loyalty, disclosure, confidentiality.
Trust, care, obedience, loyalty, disclosure.

Care, obedience, loyalty, disclosure, accountability, confidentiality.

34

A salesperson who has just listed a home for a neighbor has the following relationship with the neighbor?

The neighbor is the customer.
The neighbor is the client of the broker.
The neighbor is the listing broker’s customer and not the salesperson’s.
The neighbor is the salesperson’s customer.

The neighbor is the client of the broker.

35

During the course of a showing, the seller’s broker makes a number of statements. Which of these is a violation of the broker’s fiduciary relationship with the seller?

“The pool equipment was stolen yesterday.”
“This the best buy on the market at $220,000.”
“The lowest price that the seller will accept is $200,000.”
“The homeowners’ association is active in school and education issues.”

“The lowest price that the seller will accept is $200,000.”

36

A real estate agent has the responsibility to disclose the following to third parties in a transaction:

Material facts.
Buyers’ preferences.
Sellers’ preferences.
Home value stated in the latest appraisal.

Material facts.

37

Representing both buyer and seller in a transaction may be legal in your state, but only if the following is accomplished first:

Full disclosure to the seller.
Full disclosure to the buyer.
Full disclosure to both seller and buyer.
Never legal in any state.

Full disclosure to both seller and buyer.

38

Salesperson Sam is licensed through Broker Brandy. Which of the following statements is TRUE concerning their relationship?

Sam is responsible to Broker Brandy.
Sam can work for another broker holding open houses on weekends.
Sam must work for Broker Brandy as an independent contractor.
Broker Brandy must pay Sam the generally accepted commission rate for his work.

Sam is responsible to Broker Brandy.

39

The Federal Fair Housing Act (as amended) specifically address and prohibits discrimination on the basis of all of the following, except:

Race.
Religion.
Gender.
Sexual orientation.

Sexual orientation.

40

The practice of trying to talk home buyers of a protected group into buying in a specific area of a city, and other groups into other areas is known as:
Blockbusting.
Redlining.
Steering.
Testing.

Steering.

41

Which of the following statements is FALSE concerning fraud?

Fraud can involve the taking of a “legal right” from someone using a dishonest means.
If multiple people are involved in a fraud, they may all be held liable for the whole amount.
Perpetrators of fraud face criminal, not civil, punishment.
For real estate agents, fraud can be not communicating an important fact that should have been communicated.

Perpetrators of fraud face criminal, not civil, punishment.

42

correct Which of the following acts would be prohibited under the federal fair housing laws?

A Brazilian advertising his house for rent “to Brazilians only”.
A Greek Orthodox Church giving preferential treatment to parishioners in the rental of its housing.
The American Legion operating a home for veterans as well as the general public.
A Catholic organization renting out rooms in a guest house near one of its hospitals.

A Brazilian advertising his house for rent “to Brazilians only”.

43

Which of the following rental practices would be permitted under federal fair housing laws?

Refusing to rent to a hearing-impaired woman with a service dog because the property does not allow dogs.
Charging a family with a three-year old boy a higher security deposit than a family with no children.
Refusing to rent a home to a person who was convicted with marijuana distribution.
A property manager disclosing to an owner that a prospective tenant is a minority.

Refusing to rent a home to a person who was convicted with marijuana distribution.

44

The first major civil rights legislation dealing with housing was passed in:
1826.
1866.
1875.
1975.

1866

45

Which of the following types of disabled persons are not protected under the Americans with Disabilities Act (ADA)?

People confined to wheelchairs.
HIV positive individuals.
Alcoholics or drug users if enrolled in a recognized treatment program.
Cancer patients.

Cancer patients.

46

Dual agency is a situation where a seller and a buyer on the same transaction are represented by a single, individual agent. Which of the following statements about dual agency is INCORRECT?

Dual agency is legal in all states.
Dual agency is not allowed unless all represented parties agree to it.
Beyond being informed, the parties must also give their written consent.
Dual agency often has inherent conflicts of interest.

Dual agency is legal in all states.

47

Which of the following would be classified as a latent defect?
A cracked heat exchanger in the furnace.
A wobbly stair rail.
A large crack in the kitchen ceiling.
A chimney that is broken away from the house and leaning.

A cracked heat exchanger in the furnace.

48

The owner committed suicide inside the listed property, 1401 S. Elm, last year and the buyer’s agent knows it. The buyer does not have any idea, however. Does the buyer’s agent have an obligation to disclose this information?

Yes. This is a material fact and the buyer’s agent must disclose it.
Yes. The suicide affects the desirability of the home.
No, this is not important or material.
Could be yes or no. State laws vary about disclosing facts of this nature

Could be yes or no. State laws vary about disclosing facts of this nature

49

Which of the following would probably NOT have to be disclosed as a material fact dealing with the condition of the electrical system in a home?

Some copper wires have been stripped from the circuit breaker panel.
Half of the bulbs in the chandelier in the foyer are burned out.
The inside workings of the A/C units have been stolen.
The spa tub in the master bathroom does not have a safety shut off.

Half of the bulbs in the chandelier in the foyer are burned out.

50

Outdated, square tile countertops would likely be considered:

incurable physical depreciation.
curable environmental depreciation.
incurable functional obsolescence.
curable functional obsolescence.

curable functional obsolescence.

51

Which of the following would be a consideration in appraising property using the Market Data Approach?

terms of the sale.
original purchase price.
annual income of the property.
depreciation.

terms of the sale.

52

correct The first step in the income approach to valuation is:

calculate the potential gross income of the property.
factor in the vacancies and bad debts.
evaluate comparable sales.
obtain the property's operating expenses.

calculate the potential gross income of the property.

53

An appraiser is assessing the value of a commercial office building that earns $35,000 per quarter after vacancies and expenses. The appraiser uses a capitalization rate of 6.75% for this type of property. What is the likely valuation of the building?

$518,518
$2,074,074
$6,222,222
There is not enough information.

$2,074,074

54

If the appraiser in question #4 were using a gross income multiplier of 15, what would the value be?
$525,000
$2,100,000
$6,300,000
There is not enough information.

There is not enough information.

55

Depreciation is applied to:

the land.
the building.
the land and the building.
neither the land or the building.

the building.

56

Which of the following is considered economic depreciation?

The interior and exterior needs painting and the carpet and padding need replacement.
The home backs up to a main thoroughfare
The floor plan is strange and not desirable by buyers who see the property.
All of the Above.

The home backs up to a main thoroughfare

57

The Harrigans write an offer of $175,000 on a home listed for $210,000 because there are two others available in the same subdivision for $179,900 and $175,900. The Harrigans are probably basing their offer on the theory of:

highest and best use.
conformity.
substitution.
contribution.

substitution.

58

Your land is valued at $240,000 an acre. It is determined by the appraiser that your building's replacement cost is $210,000. If your building sits on ¼ of an acre and the depreciation was calculated at 24%, what is the value of your property?

$50,400
$159,600
$219,600
$399,600

$219,600

59

Which approach is best suited for a special purpose structure such as the local YMCA building?

Cost Approach.
Income Approach.
Market Data Approach.
Any of the Above.

Cost Approach.

60

Which of the following is NOT one of the generally accepted characteristics of value?

Demand.
Use.
Scarcity.
Time.

Time.

61

An out-of-state investor sees a 4-plex with you, as his agent. After you have provided him the net operating income of $677,000, he tells you he will not accept a return on his investment less than 9% annually. What is the investor's offer likely to be? (Rounded)

$60,000
$615,000
$675,000
$7.5 Million

$7.5 Million

62

With which type of income producing property would a GRM likely NOT be appropriate?

shopping center.
free-standing office suite.
single family home.
a duplex.

shopping center

63

The subject property being appraised has a family room, but the comparable does not. Virtually all other aspects of the comparable are similar. What adjustment will the appraiser make?

adjust the subject upward for the contribution of the room.
adjust the subject downward for the contribution of the room.
adjust the comparable upward for the contribution of the room.
adjust the comparable downward for the contribution of the room.

adjust the comparable upward for the contribution of the room.

64

What term would best indicate that the buyer and seller had no special relationship, such as being related, friends, or business partners, and therefore the sale reflected true market value?

Arm's Length
Fiduciary.
Unrelated.
Competitive.

Arm's Length.

65

A comparable property just sold for $395,000 and had 400 square feet more than the subject, but the subject had an additional half bath that the comparable did not. If the contribution is $100 per square foot and $5,500 for a half bath, how will the appraiser reflect the differences?

Adjust the subject property upward $40,000 and then downward $5,500.
Adjust the comparable property upward $40,000 andthen downward $5,500.
Adjust the comparable property downward $40,000 and then upward $5,500. -
Adjust the subject property downward $40,000 and then upward $5,500.

Adjust the comparable property downward $40,000 and then upward $5,500.

66

What is the name of the standard form of appraisal required by most lenders and governmental agencies?

Uniform Residential Appraisal Report.
Uniform Reconciliation Appraisal Report.
Standard Real Estate Appraisal.
Market Valuation and Appraisal.

Uniform Residential Appraisal Report.

67

Which method of valuation would factor in reproduction costs if applicable?

Cost Approach.
Income Capitalization Approach.
Sales Comparison Approach.
None of the Above.

Cost Approach.

68

The developer of her property intends to build a movie theatre but has assessed there is not enough property for ample parking. There are two lots immediately north of the property she can acquire for approximately $80,000 each. The process of her purchasing the properties and combining them legally with the land she currently owns is known as:

plottage.
progression.
contribution.
assemblage.

assemblage.

69

What might be the cause of an appraisal to be ordered?

to verify value of real estate collateral for lenders.
to establish value for insurance companies.
to determine if the value of property owned by a tax payer is consistent with the income reported by the tax payer.
All of the Above.

All of the Above.

70

correct Mr. and Mrs. Smith are purchasing their third property. The purchase price is $250,000 and their intention is to rent this property out. What is the minimum down payment required for Mr. and Mrs. Smith if they were to obtain financing?

$8,750
$25,000
$50,000
$12,500

$50,000

71

Who is able to use a loan that is guaranteed by the Veteran’s Administration Home Loan Program?

a veteran and his spouse.
a veteran’s child.
the general public.
both A & B.

a veteran and his spouse.

72

Joe is purchasing a home for $150,000. He will be putting down $15,000 as his down payment. What is Joe’s Loan to Value ratio?

95%
90%
80%
96.5%

90%

73

What types of loans cannot contain prepayment penalties?
Conventional
FHA
VA
Both B & C

Both B & C

74

What information will you find in a mortgage “note”?

the interest rate
the borrower’s previous address
the contract date
the company to which the loan has been sold

the interest rate

75

The theory that states the mortgagor retains legal and equitable title while the mortgagee has only a lien on the property as security for the debt, is known as a:

title theory state.
lien theory state.
Both A & B
None of the Above

lien theory state

76

What does RESPA stand for?

Real Estate Settlement Process Act.
Real Estate Supplemental Protection Act.
Real Estate Settlement Procedures Act.
Real Estate Settlement Protection Action.

Real Estate Settlement Procedures Act.

77

The Truth In Lending Act requires that a Truth In Lending Form and a Good Faith Estimate must be issued to the borrower within how many days of loan application?

15
5
1
3

3

78

When will a conventional loan have Private Mortgage Insurance included?

when the borrower is putting more than 20% down.
when the borrower is putting less than 20% down.
every conventional loan has private mortgage insurance.
Both A & B

when the borrower is putting less than 20% down.

79

Which properties do not fall under residential mortgage guidelines?
duplexes
condos
a 6-plex apartment unit.
single Family.

a 6-plex apartment unit.

80

What is the maximum loan amount FHA will lend in a rural area?
$125,000
$217,500
$286,300
None of the Above

None of the Above

81

What determines if a loan is considered first or second with respect to priority?

The larger amount is the first mortgage.
The order in which the loans were funded will determine priority.
The order in which the notes and mortgages were recorded will determine priority.
The one with the higher interest rate will be the second.

The order in which the notes and mortgages were recorded will determine priority.

82

What does FHA stand for?
Fair Housing Administration
Federal Housing Association
Frequent Housing Acquisition
Federal Housing Administration

Federal Housing Administration

83

Impounds for a home loan serve what purpose for the lender?

assure the taxes and insurance are paid.
to avoid the borrower having to make lump sum payments for insurance or property taxes.
establish a reserve in the event of foreclosure.
penalize the borrower for delinquent payments.

assure the taxes and insurance are paid.

84

Which loans are defined as “conventional” loans?

federally insured loans
government guaranteed loans
non-FHA or VA loans
loans with mortgage insurance premium (MIP)

non-FHA or VA loans

85

Which of the terms below is considered a “trigger” term per Regulation Z?

% down payment
interest rate
loan amount
All of the Above

All of the Above

86

What law provided financing to all qualified Americans and prohibited discrimination in lending practices?
ECOA
RECD
RESPA
MGIC

ECOA

87

What is the maximum loan amount as established by the VA?

$60,000
$120,000
$240,000
VA does not set a maximum loan amount.

VA does not set a maximum loan amount.

88

When the loan closing costs are factored in with the interest rate as if the costs were being paid over the life of the loan, lenders refer to a(n):

ARM
APR
AARP
ACT

APR

89

Budget Loans” are loans that:

are at a discounted interest rate
are specially designed for low income families on a tight budget
require impounded payments for taxes and insurance -
All of the Above

require impounded payments for taxes and insurance -

90

Which of the following is NOT a physical characteristic of land?

Indestructibility.
Immobility.
Beauty.
Uniqueness.

Beauty.

91

Notice that a lien or other encumbrance may soon be filed on a parcel of property is known as a:

Writ of attachment.
Writ of association.
Lis pendens.
Abstract of judgment.

Lis pendens.

92

Three unrelated owners took title to a warehouse building as joint tenants. One of the owners died testate. The remaining two owners now own the building:

As joint tenants.
Under the state's laws of descent.
In severalty.
Subject to the terms of the deceased person's will.

As joint tenants.

93

An acre of land contains:

42,560 square feet.
43,560 square feet.
44,560 square feet.
46,560 square feet.

43,560 square feet.

94

Your client bought ¼ of a section of land. Approximately how many acres did the client buy?

120 acres.
140 acres.
160 acres.
180 acres.

160 acres.

95

An electrician sells his home in which he had installed programmable thermostats. After the contract was signed, but before the home inspection or appraisal has been completed, he replaces these with standard thermostats. Which of the following is TRUE?

The seller can be held liable for replacing the programmable thermostats which were present before the contract was signed. -
There is really no problem as both standard and programmable thermostats work well.
The seller has the right to make this change as long as it is done before the home inspection and appraisals have taken place.
The question should be decided by the broker who listed the house.

The seller can be held liable for replacing the programmable thermostats which were present before the contract was signed. -

96

Which of the following types of property ownership (title) is limited to husbands and wives?

Joint tenancy.
Tenancy in common.
Tenancy by the entireties.
Tenancy at will.

Tenancy by the entireties.

97

A single man, Robert, owned a building that he leased to a restaurant owner, Pete. Robert married Kathy, and then a few years later, decided to sell the building to Pete, the owner of the restaurant. The buyer's attorney demanded that before the sale could take place, Kathy would have to sign a quit claim deed. What was the attorney concerned about?

Robert dying intestate.
Kathy dying intestate.
Common law issues.
A community property claim.

A community property claim.

98

Arlene sold her house. It included a water softener that she had purchased the year previously for $1,000 (installed). What is the legal status of the water softener and can Arlene take it with her?

Chattel; she could remove it.
Chattel; she could NOT remove it.
Fixture; she could remove it.
Fixture; she could NOT remove it.

Fixture; she could NOT remove it.

99

A tenant failed to remove her restaurant equipment before her lease expired, so her landlord acquired title to the fixtures by a method known as:

Partition.
Expulsion.
Accession.
Novation.

Accession.

100

Vague property descriptions, such as addresses and assessor's parcel numbers are:

Used on recordable documents like deeds.
Considered legal descriptions.
Acceptable only when used in documents that will not be recorded.
Not approved for sales contracts.

Acceptable only when used in documents that will not be recorded.

101

An investor made an offer on a piece of land described as the N ½ of the SE ¼ and the S ½ of theNE ¼ of section 12. How much land is he buying?

160 acres.
320 acres.
80 acres.
100 acres.

160 acres.

102

Two cousins would like to purchase and take title to an investment property. Gary will own ¾ share and Larry will have a ¼ share. To do so, they must take title under which one of the following methods?

Severalty.
Tenants by the entirety.
Joint tenants.
Tenants in common.

Tenants in common.

103

Twelve individuals own an apartment complex as tenants in common. One of them, Lola, decides to liquidate her holdings. She may legally:

Sell. Lola has an undivided, transferable interest.
Sell. Lola can sell her interest if another owner agrees to sell too.
Not sell. Lola's interests always remain encumbered.
Not sell. Lola's interests include survivorship.

Sell. Lola has an undivided, transferable interest.

104

Which of the following is NOT an encumbrance upon the title of a property?

IRS lien.
Mortgage.
Mechanic's lien.
Setback.

Setback.

105

All of the following are examples of public land use controls EXCEPT:

Environmental protection laws.
Subdivision regulations.
Zoning.
Deed restrictions.

Deed restrictions.

106

An odorless gas produced by the decay of radioactive materials in the ground is which of the following?
Lead.
Asbestos.
Radon.
UFFI.

Radon.

107

Your city has a zoning ordinance covering what type of buildings can be built in specific areas. The basis for this is:
Eminent domain.
Police power.
Escheat.
riparian rights.

Police power.

108

Licensees often handle the possibility of hazardous substances on a property being sold. Which of the following does NOT describe what a licensee should do?

A licensee should not disclose the problem as it might harm the seller.
A licensee should ask the client about the possibility of hazardous substances on the property.
A licensee should be scrupulous in considering environmental issues.
A licensee should consider the possibility of potential liability.

A licensee should not disclose the problem as it might harm the seller.

109

All of the following are examples of a governmental restriction on land EXCEPT:

Taxation.
Deed restriction.
Eminent domain.
Police power.

Deed restriction.

110

Mike, a builder-developer, built an office building on a piece of land that later is re-zoned by his city to residential. Mike will likely:

Get the land and building re-zoned.
Close his building.
Get a conditional-use permit.
Be able to continue with a non-conforming use permit.

Be able to continue with a non-conforming use permit.

111

An electromagnetic field (EMF) is created by which of the following?

Contaminated groundwater.
Peeling paint.
Decay of radioactive substances underground.
None of the above.

None of the above.

112

Which of the following statements pertaining to a homeowners' association is FALSE?

All homeowners must abide by the association restrictions.
The HOA does not have the power to impose fines.
All homeowners must agree with the CC&Rs.
The HOA has the power to levy assessments.

All homeowners must agree with the CC&Rs.

113

When a county adversely acquires land for a freeway, it is exercising the power of:

Eminent domain.
Escheat.
Zoning.
Environmental protection laws.

Eminent domain

114

The potential buyers of a property should have an inspector check around sinks, showers, basement walls, and toilets to detect which of the following problems?

Radon.
Mold.
Methane gas.
EMFs.

Mold.

115

Sarah purchased a home with a partial block wall between her property and her neighbor James' property. After she had the block wall completed, James realized it extended almost a foot onto his property. This is called:

Easement by prescription.
License.
Encroachment.
Easement by necessity.

Encroachment.

116

Radon generally enters a house through:
Doors and windows left open.
The floors or foundation.
The roof or patio covers.
The chimney.

The floors or foundation.

117

Kayla and Michael want to buy a home in Pleasant Valley, so they are looking into the property taxes on one property. The tax rate in Pleasant Valley is $3.900 per $100 of assessed value. The Market value of the home is $310,000, and the state assessment ratio is40%. Approximately how much will they pay annually?

$1,240.
$4,836.
$7,254.
$12,090.

$4,836.

118

Which of the following requirements would not be covered by building codes?

Electrical wiring.
Sanitary equipment.
Fire prevention standards.
Minimum number of square feet of land area per house.

Minimum number of square feet of land area per house.

119

Which of the following best describes a buffer zone?

A recreational area between a residential area and an office area.
A sound barrier along a portion of a major highway that is near a residential area.
A high-rise residential complex between a commercial area and a townhome complex.
An industrial park between a strip mall and a residential neighborhood.

A recreational area between a residential area and an office area.

120

Lauren wants to build a front porch onto her house, but it is not allowed under the zoning for her area. In order to build the porch, Lauren will first have to submit an appeal for a:
Building permit.
Non-conforming use permit.
Variance.
Certificate of occupancy.

Variance.

121

incorrect In which of the following situations would building codes need to be taken into account?

The subdivision of a large tract of land.
The construction of a new structure.
The development of a master plan.
The demolition of a partially destroyed building.

The construction of a new structure.

122

Police powers can regulate all of the following EXCEPT:

Building ownership.
The number of buildings.
Building occupancy.
The size of buildings.

Building ownership.

123

The Johnson family wants to buy property on a new road to build a restaurant. To determine whether or not the property can be used as a site for a restaurant, they would need to examine:

Building codes for that location.
A list of obtainable variances.
Lists of permitted non-conforming uses.
Zoning ordinances for that location.

Zoning ordinances for that location.

124

A new zoning ordinance is enacted that prohibits horse barns from being built within the city limits. Thomas has a horse barn on his property that has been there for many years. He has been told by the city that he can be “grandfathered” in and that he does not have to tear down his barn. This is an example of?

Eminent domain.
A variance.
A non-conforming use.
Inverse condemnation.

A non-conforming use.

125

The seller has decided to replace the sod in the yard to make the home more appealing to potential buyers. The 20,000 square foot home is situated on a 150’ x 250’ lot with a 20’ x 30’ driveway. How many square feet of sod will be needed (assuming no waste and ignoring the landscaping)?

37,500 square feet.
16,900 square feet.
2,600 square feet.
There is not enough information.

16,900 square feet.

126

What is the total acreage of a lot containing 54,450 square feet?

.25 acres.
1 acre.
1.25 acres.
1.5 acres.

1.25 acres.

127

One half of one percent is expressed as:

.1/2
.012
.005
.0005

.005

128

The foundation of a one-story home must contain 1,400 square feet total. Which of the following could be the dimensions of the slab?

35’ x 55’
30’ x 40’
25’ x 56’
26’ x 55’

25’ x 56’

129

Properties in Heavenly Fields subdivision, on average, are assessed at 32% of the market values. If the Walton’s estate is worth $525,000, and the area’s millage rate is 19 mills, what are the Walton’s property taxes per quarter?

$7,980.
$3,192.
$798.
$266.

$798.

130

What is your share of the brokerage fee if the sale price is $279,500, the total commission is 7%, the co-broke is 3.5%, and you are on a 40% split?

$274.
$3,913.
$7,826.
$19,565.

$3,913.

131

What was the transfer tax on a property that sold for $410,500 and the state charges $9.75 per thousand for the tax?

$4,002.38.
$4,007.25.
$4,105.00.
None of the Above.

$4,007.25.

132

Seller Stone has not yet received the sewer bill which estimates to be $127.00 for the quarter July 1 through September 30. If Buyer Benson closes the sale on September 10th, what is the amount of the sewer bill proration and to whom will it be a credit?

$24.69 Credit to the Seller.
$24.69 Credit to the Buyer.
$98.78 Credit to the Seller.
$98.78 Credit to the Buyer.

$98.78 Credit to the Buyer.

133

What loan-to-value ratio is the lender using if the sale price is $177,000 and the loan amount is $150,450?
17%
45%
85%
95%

85%

134

What is the new balance on Greg’s loan if the balance before the payment is $210,900 and Greg makes a principal and interest payment of $1,400, on a 30 year, fully amortizing loan at 7% annual interest?

$196,137.00.
$209,669.75.
$210,730.25.
A financial calculator is needed to solve this amortization problem.

$210,730.25.

135

The lender reflects $4,200 on the HUD 1 for discount points on a home closing that sold for $185,000 with a $17,000 down payment. How many points is the lender charging?

2 ½ points.
2 points.
1 ½ points.
1 point.

2 ½ points.

136

What is the cost of the discount points if the buyers are qualifying for a 90% LTV loan on a sale price of $235,000?

$2,115.
$2,350.
2 points.
There is not enough information.

There is not enough information.

137

An appraiser has determined the average, annual rate of appreciation in the community is 4%. The Brown’s bought their home two years ago for $162,000 and are now considering selling. What is a reasonable estimate of value for the Brown’s home?

$155,520.
$162,000.
$168,480.
$175,219

$175,219

138

Lorraine measures the distance from the side of her house to the common wall with her neighbor to be 54 inches to determine if the landscaper can get a Bobcat backhoe through the side yard. The landscaper tells Lorraine he needs 4 feet of clearance. Will it fit?
No, there needs to be six more inches width for the Bobcat to fit.

Yes, but only with six inches to spare.
Yes, but only with five inches to spare.
Yes, there is plenty of room and Lorraine does not need to measure

Yes, but only with six inches to spare.

139

What is the value to Investor Iverson of a four-plex if each unit nets the owner $650 in monthly rent after operating expenses and Iverson’s desired rate of return is 11% (rounded)?
$285,000.
$70,000.
$25,000.
None of the above.

$285,000.

140

A seller wants to net $150,000 after closing. His total closing costs are estimated to be 9% which includes a 6.5% brokerage commission. What must he sell his house for (rounded)?

$150,000.
$160,500.
$163,500.
$165,000.

$165,000.

141

90 acres of vacant land is purchased by a spec builder. 1/10 of the land is required to be dedicated to the roads and the builder plans to get 420 lots out of the parcel after subdividing. What will be the average square footage of the lots (rounded)?

8,400.
9,330.
12,700.
37,800.

8,400.

142

The sellers have agreed to replace the carpet in the den at their expense per the request of the buyers. If the carpet bid came in at $22.00 a square yard plus $4.00 per square yard for labor, what will the carpet job cost the sellers if the room measures 200 square feet?
$685.00
$750.00
$580.00
$485.00

$580.00

143

Dual agency is a situation where a seller and a buyer on the same transaction are represented by a single, individual agent. One of the following statements about dual agency is FALSE?

Dual agency is legal in all states.
Dual agency is not allowed unless all represented parties agree to it.
Disclosure of dual agency must be made as practicable but no later than when presenting an offer.
Disclosure of dual agency should be made prior to closing a real estate transaction.

Dual agency is legal in all states.

144

Which of the following would be classified as a latent defect?

A cracked heat exchanger in the furnace.
A wobbly stair rail.
A large crack in the kitchen ceiling.
A chimney that is broken away from the house and leaning.

A cracked heat exchanger in the furnace.

145

Which of the following statements is FALSE concerning the practice of agency disclosure?

Disclosure is required at the time of the first meaningful contact with the seller.
Disclosure is required at the first meaningful contact with the buyer.
Disclosure is required in some states.
Disclosure is always required, in every state.

Disclosure is required in some states.

146

Agent Sally is writing an offer on behalf of her mother, Alice. What disclosure(s) must Sally make?

Sally is an agent representing Alice.
Sally is the daughter of Alice.
A Only.
Both A & B.

Both A & B.

147

An owner had a fire that spread to a portion of the attic. The area was floored without replacing or strengthening the charred floor joists. When the property is listed for sale next month, the ceiling joists
:
Should be disclosed as latent defects.
Are discoverable defects.
Fall under “caveat emptor”.
Need not be disclosed as the damage was repaired.

Should be disclosed as latent defects.

148

The owner died inside 1401 S. Elm last year and the buyer’s agent knows it. The buyer doesn’t have any idea. Should the buyer’s agent spill the beans?

Yes, this is a material fact and the buyer’s agent must disclose it.
Yes, the buyer will want to know.
No, this is not important or material.
No, check with your broker first. State laws vary about disclosing facts of this nature.

No, check with your broker first. State laws vary about disclosing facts of this nature.

149

Sellers often have to prepare a disclosure of facts about the condition of the property of the home they wish to sell. Typically, this is referred to as something like the “sellers’ real property disclosure.” This document should be filled out:

By the seller’s agent, so he can make sure it gets done correctly.
By the seller’s agent, with the harder parts being filled out by the seller
By the seller, with explanations coming from the seller’s agent.
By the seller, with little to no input from the licensee.

By the seller, with little to no input from the licensee.

150

Which of the following forms of agency representation is NOT recognized in Nevada?
Single Agency.
Multiple Party Representation.
General Agency.
Transactional Agency.

Transactional Agency.

151

correct The mandated form used in Nevada to ensure a client understands the licensee’s basic fiduciary duties is:

Consent to Act.
Duties Owed.
Brokerage Agreement.
SRPD.

Duties Owed.

152

Harrigan, an active, broker-salesman, is purchasing a home on his own behalf and acting as the selling agent. Harrigan must:

Disclose his licensee status.
Disclose he is the principal.
Use the Duties Owed Form.
All of the Above.

All of the Above.

153

This form of agency representation is the most common and is also the least likely to cause a conflict of interest for the broker.

Single Agency.
Dual Agency.
Transactional Brokerage.
Non-agency.

Single Agency.

154

Which of these statements is TRUE regarding an assigned agency?

It eliminates the need for a dual agency.
A broker assigns one agent to the buyer and a different agent to the seller.
A Consent to Act disclosure is not relevant.
All of the Above.

All of the Above.

155

correct The Nevada Real Estate Commission has found the incorrect execution of agency disclosure forms to be:

A misdemeanor.
A tort.
Gross negligence.
Fraud.

Gross negligence.

156

It is feasible than an agency relationship can be created simply by the actions of the licensee and the client tacitly accepting those services, even though there is no verbal or written brokerage agreement.

Yes, and this is considered an implied agency.
Yes, and this is considered an expressed agency.
No, because there must be a written brokerage agreement to create an agency.
No, because this is an unintentional agency.

Yes, and this is considered an implied agency.

157

A licensee is NOT obligated to, or liable for, which of the following?
Misrepresentations made by the client.

Seller’s failure to disclose information that is of public record and which is readily available to the client.
To independently verify the accuracy of a statement made by a certified/licensed inspector.
All of the Above.

All of the Above.

158

Which of the following will terminate an agency relationship?

Object of the agency is fulfilled.
Agreement terminates by contract date.
Mutually agreement to terminate.
All of the Above.

All of the Above.

159

The BEST explanation of the common law principle of Absolute Fidelity suggests:

A licensee must put the client’s interests ahead of the licensee’s interest.
The licensee must do his or her best.
The agent must obtain the highest possible price.
The agent should get the best terms for his or her client.

A licensee must put the client’s interests ahead of the licensee’s interest.

160

A Nevada licensee MUST disclose:

Whenever the licensee has a personal interest in either the transaction or the property.
Licensee receives, or expects to receive, compensation from more than one party.
A profit at the expense of another party.
All of the Above.

All of the Above.

161

In Nevada, the duty of maintaining confidentiality lasts:

Until performance of all duties.
Until the agency terminates.
Until one year after termination of the agency.
Forever.

Until one year after termination of the agency.

162

In Nevada, it is not material, and therefore not required to be disclosed, if the property is:

The site of a homicide, suicide or death.
Occupied by a person with AIDS.
The home of a sex offender.
All of the Above.

All of the Above.

163

Which of the following is NOT considered fraud?

Any material misrepresentation or false promise.
Guaranteeing future profits on the resale of property.
Submitting a valid appraisal to a financial institution or other interested person.
All of the Above.

Submitting a valid appraisal to a financial institution or other interested person.

164

Which of the following is NOT essential to have a legal cause of action against a licensee?

Duty.
Breach.
Procuring Cause.
Harm.

Procuring Cause.

165

The buyers of agent Anderson ask her whether they should take title as Tenants in Common or as Tenancy by the Entireties as they are not sure of the difference. Anderson should:

Tell them since they are married, they should elect Tenancy by the Entireties.
Tell them that if they elect Tenants in Common they are in effect creating a plan for the death of either spouse.
Tell them to research this option on their own.
Suggest they get the opinion of a qualified professional such as an attorney.

Suggest they get the opinion of a qualified professional such as an attorney.

166

Nevada licensing regulations require a broker to maintain brokerage transaction files for:

One year.
Three years.
Five years.
Seven years.

Five years.

167

correct A licensee must maintain confidentiality EXCEPT that he must disclose confidential information:

When a court so orders.
His client authorizes the disclosure.
When required by law.
All of the Above.

All of the Above.

168

Broker Bob represents a seller. Bob holds an open house on his seller’s property and finds a buyer ready, willing, and able to purchase the home. If Bob secures the offer:

Bob becomes a dual agent.
Bob must change his agency relationship status and disclose to both parties.
Bob must obtain a signed Consent to Act.
All of the Above.

All of the Above.

169

If the client pays the broker’s commission, the broker must represent the client.

This is true provided there is a written agency agreement.
This is false as the payment of commission can come from the customer.
This is true as the seller always pays the commission.
This is false as the buyer is never the party to pay the commission.

This is false as the payment of commission can come from the customer.

170

The broker’s compensation may be paid by:

The client only.
The customer only.
Either the client or the customer.
Only by the party the broker represents.

Either the client or the customer.

171

Which of these is a valid and enforceable brokerage agreement?

A seller and a salesperson are the named parties to a listing contract.
A broker-salesperson and a buyer enter into a buyer brokerage together.
A broker and an investor of rental properties enter into a property management contract.
All of the Above.

A broker and an investor of rental properties enter into a property management contract.

172

Seller Addison pays salesperson Jones a $2,000 bonus for selling the subject property in one week at full price and terms. Jones is subject to:

A fine up to $10,000.
Suspension or revocation of her license.
Termination
All of the Above.

All of the Above.

173

Nevada law requires that brokerage agreements:
Be in writing if exclusive.

Are delivered to the client immediately upon signing or within a reasonable time if not practical.
Contain prescribed terms and form.
All of the Above.

All of the Above.

174

Nevada law further requires that brokerage agreements:

Not contain electronic signatures.
No brokerage agreement be oral.
Obligate the broker to a fiduciary relationship one year after termination.
None of the Above.

None of the Above.

175

Which clause in a brokerage agreement provides the broker the right to collect a commission for a set time after the brokerage agreement ends to collect a commission the broker as long as the broker introduced the property or buyer to the client during the brokerage agreement period?

Protection clause.
Procuring cause clause.
Habendum clause.
None of the Above.

Protection clause.

176

Which of the following forms of listing agreements utilizes the services of only one broker while maintaining the seller’s right to sell the property herself without owing the broker a commission?

Open listing.
Exclusive agency listing.
Exclusive right to sell listing.
None of the Above.

Exclusive agency listing.

177

Nevada law requires four elements to be contained in an exclusive brokerage agreement. Which of the following is NOT one of the four?
In writing and signed.
Fixed termination date.
State prescribed broker protection period.
No automatic renewal language.

State prescribed broker protection period.

178

Tompkins is a new licensee with Bengal Realty and notices a neighbor who has listed with Beneficial Properties. While getting his mail, Tompkins bumps into the neighbor and inquires about the terms under which the neighbor listed. Tompkins suggests his neighbor cancel his listing with Beneficial and Tompkins will list it at a lower commission rate. Tompkins:

Is interfering with a cooperating broker’s contract.
Is subject to disciplinary action imposed by the Nevada Real Estate Division.
Will have his license revoked.
All of the Above.

Is interfering with a cooperating broker’s contract.

179

A broker, who collects monies from the seller in order to advertise and solicit potential purchasers for the listed property, is collecting a(n):

Bonus.
Commission installment.
Flat fee.
Advanced fee.

Advanced fee.

180

The commission amount to be charged to the buyer under a buyer brokerage agreement is ultimately set by:

The salesperson.
The buyer.
The broker.
The seller.

The broker.

181

A net listing:
Is illegal in some states.
Is legal in Nevada.
Can easily create a conflict of interest between the seller and the broker.
All of the Above.

All of the Above.

182

RESPA prohibits:

An undisclosed commission to a mortgage lender.
A real estate broker from charging an 8% commission.
The payment of a referral fee to a licensed, out of state broker.
A rebate of a portion of the broker’s commission to his client.

An undisclosed commission to a mortgage lender.

183

Mr. and Mrs. Adams have written an offer with their agent, Billingsworth, on the Collins’ home listed with their broker, Davis. The Collins make a counter offer which Billingsworth communicates to the Adams. The Adams accept the offer, in writing, and Billingsworth takes the documents with him. When trying to reach Davis, Billingsworth learns Davis is out of state and not in a cell service area. After contemplating their acceptance, the Adams decide to withdraw their acceptance. May they do so?

No, because they have signed the counter-offers.
No, because they have a legally binding contract.
Yes, because they have not yet opened escrow.
Yes, because communication of acceptance has not been delivered.

Yes, because communication of acceptance has not been delivered. - Answer given

184

Fitzgerald submits an offer to Henning with an offer expiation of September 18th at midnight. On the 19th, Henning accepts the offer and acceptance is delivered to Fitzgerald. Is Fitzgerald bound to perform?
Yes, because there was an offer, an acceptance, and delivery of acceptance to Fitzgerald.

Yes, because acceptance was less than 24 hours from the offer expiration date.
No, because the offer expired and Fitzgerald is no longer obligated to the terms of the offer.
No, because Fitzgerald withdrew the offer.

No, because the offer expired and Fitzgerald is no longer obligated to the terms of the offer.

185

correct When an offer is rejected, the broker representing either party must:

Have a written rejection on file.
Deliver the written rejection to the last offeror.
Maintain records of rejected offers for five years.
All of the Above.

All of the Above.

186

In Nevada, which of the following may results in an unenforceable contract?

A buyer who is 20 years of age.
A seller who is not aware of the market value.
A seller who was drunk when the offer was accepted.
A buyer who is from a foreign country.

A seller who was drunk when the offer was accepted.

187

Lund wrote an offer on his own behalf on Soeller’s listing. Lund did not specify a closing date nor did he deposit the earnest money referenced in the contract. Listing agent Soeller:

Has not exercised the duty of reasonable care and skill.
Could be found guilty of negligence and lack of fair dealing.
Could have his license suspended.
All of the Above.

All of the Above.

188

A transaction, whereby the purchaser has equitable title as opposed to legal title, yet has possession of the property is called:

A short sale.
A deed in lieu.
An installment contract.
Adverse possession.

An installment contract.

189

An option contract:

Must be tied to a lease.
Is considered a bilateral contract.
Is binding upon the buyer.
May have non-refundable option money.

May have non-refundable option money.

190

A duty to disclose to each party to the transaction any material and relevant facts, data, or information which he or she knows, or which, by the exercise of reasonable care and diligence, should have known, relating to the property, is best described as the:

Fiduciary duty.
Duty of inquiry.
Agency.
Material fact.

Duty of inquiry

191

A licensee in Nevada, who has knowledge of the following, has no obligation to disclose that a property:

Was the site of a murder.
Has a roof leak.
Had a mold remediation.
Has had settling and unstable grounds.

Was the site of a murder.

192

Upon termination of a Nevada agency relationship, the Nevada licensee has an obligation to NOT disclose confidential information obtained in working with the client:

Until escrow has closed.
Up to one year after termination of the agency.
Up to five years after termination of the agency.
Forever.

Up to one year after termination of the agency.

193

Nevada’s SRPD must be provided by the seller to a buyer:

Within 24 hours of acceptance of the offer.
Within the due diligence period.
At closing.
At least 10 days before conveyance to the purchaser.

At least 10 days before conveyance to the purchaser.

194

incorrect Which of the following is not pertinent to an agency relationship in Nevada?

SRPD
Consent to Act.
Duties Owed.
None of the above pertain to an agency relationship. -

SRPD

195

A defect that cannot be readily observed or discovered without some extraordinary activity is known as a:

Patent defect.
Latent defect.
Material fact.
Encroachment.

Latent defect.

196

Restrictions pertaining to advertising real estate in Nevada by licensees include the advertising:
Must not be false or misleading.

Must provide a true and accurate picture of what is being sold.
Must be done under the supervision of the broker.
All of these.

All of these.

197

Which of the following topics is NOT relevant to anti-trust legislation?

Monopolies.
Earnest money deposits.
Boycotting.
Price fixing.

Earnest money deposits.

198

Email solicitations and marketing are subject to the regulations of the:

Department of Commerce.
Internal Revenue Service.
Real Estate Settlement and Procedures Act.
Federal Trade Commission.

Federal Trade Commission.

199

Which of the following is NOT a requirement of a Nevada real estate broker?
Each broker is required to have sign in a conspicuous place identifying the brokerage at the broker’s place of business.

The broker must display a sign which must be readable from the nearest public sidewalk, street or highway.
Every Nevada real estate broker must employ at least one Nevada-licensed salesperson. -
If a broker is advertising under the name of a franchise, the broker must incorporate in a conspicuous way the real name under which the

Every Nevada real estate broker must employ at least one Nevada-licensed salesperson. -

200

Regarding real estate “teams” in Nevada, which of the following is TRUE?

The team must have two or more members.
Team members must be employed by the same broker.
The team name must incorporate the last name of one of the team members.
All of these.

All of these.

201

Which term is not relevant to Do Not Call legislation?

Scrub.
FTC.
Cold call.
Email.

Email.

202

The federally protected classes under the Fair Housing Act include all of the following EXCEPT:

Sexual orientation.
Familial status.
Race.
National origin.

Sexual orientation.

203

Which of the following is NOT a trigger term under Regulation Z?

Down payment.
Purchase price.
Monthly payment.
Interest rate.

Purchase price.

204

Disciplinary actions the Nevada Real Estate Commission may impose for violations of the licensing law include an administrative fine of what amount per offense?

$500
$1,000
$5,000
$10,000

$10,000

205

Accepting an earnest money deposit other than cash is:

Illegal.
Permissible.
Legal if that fact is communicated to the owner before acceptance of the offer.
None of these.

Legal if that fact is communicated to the owner before acceptance of the offer.

206

Sam is the buyer’s agent and is receiving a 3% commission from the seller for procuring the buyer in the transaction. Additionally, Sam’s buyer agreed to pay Sam a 1% commission for finding a suitable property. Sam:

May not receive a commission from both the buyer and the seller in the same transaction.
May receive a commission from both the buyer and the seller in the same transaction as long as the commissions are disclosed to both parties.
May only receive commissions from both parties if he acts as a dual agent.
Cannot accept the 1% commission from the buyer since he is receiving the 3% commission from the seller.

May receive a commission from both the buyer and the seller in the same transaction as long as the commissions are disclosed to both parties.

207

Harriet is looking for clients in the Apple Gardens subdivision and stops by an attractive house in the neighborhood to take pictures of the house for an ad she chooses to place. Upon placing the ad has Harriet done anything wrong?

No.
No, because she is simply trying to generate new business in the area and as long as her ad is legitimate, she has not violated any laws.
Yes, because she is advertising a property for sale without the owner’s consent.
Yes, because she must first place the listing in the MLS™ before she can advertise the property.

Yes, because she is advertising a property for sale without the owner’s consent.

208

NRS 645.635 states that it is a violation to “Represent to any lender, guaranteeing agency or any other interested party, verbally or through the preparation of false documents, an amount in excess of the actual sale price of the real estate or terms differing from those actually agreed upon.” What does this mean in practice?

The licensee cannot modify the purchase price on the contract that he forwards to the lender.
The licensee cannot tell the appraiser that the agreed upon price was $235,000 when in fact, it was $210,000.
The licensee cannot represent to the lender that the loan amount required is more than the actual amount.
All of these.

All of these.

209

NRS 645.645 states that the Commission may take action pursuant to NRS 645.630 against any person selling insurance for home protection under the authority of a license issued pursuant to the chapter who:

Makes a misrepresentation in the sale of insurance for home protection.
Misrepresents the provisions of the contract of insurance for home protection.
Misappropriates any fees or premiums collected for the insurance for home protection.
All of these.

All of these.