GPS 2021 National Salesperson Practice Exam PDF

GPS  2021  National  Salesperson  and  Supplemental  Broker     Practice  Exam  with  Answers   Broker  Questions:  Answers  are  highlighted  in  blue     1. An  appraiser  factored  the  gross  operating  income,  adjusted  for  vacancy,  subtracted  out  the   expenses  and  applied  a  capitaliz...

GPS  2021  National  Salesperson  and  Supplemental  Broker     Practice  Exam  with  Answers   Broker  Questions:  Answers  are  highlighted  in  blue     1. An  appraiser  factored  the  gross  operating  income,  adjusted  for  vacancy,  subtracted  out  the   expenses  and  applied  a  capitalization  rate.  What  type  of  property  is  being  appraised?  A/An   a. Brand  New  Stadium     b. Leased  Historical  Site     c. Single  Family  Residential  Rental   d. Multi-­‐family  Apartment  Building     2. When  joint  tenancy  owners  are  unwilling  to  dissolve  their  co-­‐ownership  voluntarily,  the   joint  tenant(s)  wanting  to  dissolve  the  joint  tenancy  will  need  to  initiate  a(n)…   a. Judicial  review   b. Suit  for  partition   c. Exercise  of  dissolution   d. Lis  Pendens     3. A  buyer  guestimates  the  purchase  price  of  a  single  rental  unit  based  on  how  much  it  will   rent  for.  The  buyer  has  calculated  their  offering  price  by  using  what  appraisal  method?   a. Gross  Income  Multiplier   b. Gross  Rent  Multiplier   c. Income  to  Expense  Ration  Calculator   d. Cash  Flow  Projection  Formula       4. The  value  of  the  sellers’  property  went  up  and  they  were  able  to  sell  it  for  a  15%  profit  in   just  two  years  time.  The  property  sold  for  $277,000.  What  was  the  original  price  of  the   home?     a. $184,666.67   b. $235,450.00   c. $235,500.00     d. $240,869.56  $277,000  (selling  price)/115%  (1.15)  =  $240,869.56     5. An  escalation  clause  is  part  of  what  type  of  contract?  A…   a. Lease  agreement   b. Listing  agreement   c. Promissory  Note   d. Contract  for  Deed       6. Which  legal  description  is  characterized  by  directions  and  distances?   a. Meridians  and  Baselines   b. Ranges  and  Townships   c. Metes  and  Bounds   d. Lots  and  Blocks       7. A  prospective  buyer  has  an  option  to  purchase  a  particular  property.  Before  they   consummate  the  sale  they  defer  their  interest  to  someone  else.  This  is  known  as  an   a. Assignment   b. Agreement   c. Addendum   d. Acknowledgement       8. Recording  happens  in  the   a. Region  the  property  is  located   b. State  justice  department   c. Division  of  Property  Control   d. Treasury  Office  of  the  State     9. The  federal  law  that  prohibits  “kick-­‐backs”  in  the  settlement  of  real  property  is   a. Title  III   b. RESPA   c. TITLE  VIII   d. ECOA   10. An  example  of  a  building  restriction  that  may  appear  on  the  deed  is  a   a. Statute   b. Grandfather’s  Clause   c. Code   d. Restrictive  Covenant     11. A  court  order  authorizing  a  foreclosure  will  result  in   a. A  trustee  sale   b. Condemnation   c. A  sheriff’s  sale   d. Eminent  domain     12. An  agent  presents  their  broker  with  an  advertisement  for  a  large  property  they  just  listed   to  get  the  broker’s  approval  before  printing  and  mailing  it  out.  The  postcard  says  the  house   is  in  a  prestigious  neighborhood,  walking  distance  to  shopping,  schools,  parks  and  several   churches.  There  are  dual  masters  upstairs  and  down.  It  is  in  a  prime  location  for  short-­‐term   leasing.    The  agent’s  postcard  is  in  violation  of  HUD’s  guidelines  because  it  mentions.   a. Several  Churches   b. Dual  Masters   c. Prestigious  neighborhood   d. Walking  distance  to…     13. A  listing  agreement  is  terminated  by  a/an   a. Power  of  Sale  Clause   b. Foreclosure  notification   c. Offer  and  acceptance   d. Sale  of  the  Property     14. A  buyer  purchases  a  unit  for  a  specified  period  of  time  and  also  receives  a  deed  with   interest  in  (and  use  of)  the  common  areas.  The  buyer  has  purchased  a   a. Condominium   b. Townhome   c. Cooperative   d. Timeshare     15. An  appraiser  factored  the  gross  operating  income,  adjusted  for  vacancy,  subtracted  out  the   expenses  and  applied  a  capitalization  rate.  What  approach  is  the  appraiser  using?   a. Data   b. Cost   c. Income   d. Comparison     16. Two  friends  come  together  to  purchase  a  property  because  they  want  to  own  a  home  and   they  do  not  have  the  buying  power  to  purchase  something  they  really  like  on  their  own.     Each  wants  their  interest  in  the  property  to  go  to  their  heirs  in  case  anything  happens  to   them.    They  should  take  title  as…   a. Joint  tenants   b. Tenants  in  common   c. Tenants  by  the  entirety   d. Cooperative  shareholders     17. A  buyer  says  they  do  not  want  to  live  in  a  certain  area  of  town  because  of  the  ethnic  make-­‐ up  of  the  neighborhood.  The  broker  should  decline  to  work  with  the  buyer  to  avoid:   a. Blockbusting   b. Steering   c. Panic  Selling   d. Antitrust     18. A  license  is     a. A  binding  contract   b. An  agreement  to  pay   c. Permission   d. Unlimited       19. An  escalation  clause  is  often  tied  to  a/n   a. Purchase   b. Index   c. Cancellation   d. Auto-­‐renewal         20. A  buyer  has  heard  that  there’s  a  naturally  occurring  environmental  hazard  in  an  area  of   town  where  they  would  like  to  buy  a  property.  Most  likely  the  issue  is:     a. Arsenic   b. Mineral  oil   c. Radon   d. Acid  rain       21. The  Act  that  requires  all  borrowers  to  receive  a  copy  of  their  appraisal  is:     a. EQA   b. ADA   c. ECOA   d. HOPA   22. The  recording  of  a  deed  is  effective  for  giving…   a. Title  to  a  lien  holder   b. Insurance  of  ownership   c. Security  of  interest   d. Constructive  notice     23. Refusing  a  loan  to  an  otherwise  qualified  applicant  because  they  receive  alimony  is  illegal   according  to  what  act?  The…   a. Equal  Credit  Opportunity  Act   b. Equal  Housing  Opportunity  Act   c. Civil  Rights  in  Fair  Housing  Act   d. Consumer  Protection  Lending  Act     24. A  same  sex  couple  with  adequate  income,  good  credit  and  no  criminal  history  was  passed   over  for  the  rental  of  a  house  that  was  later  awarded  to  a  husband  and  wife  expecting  a   baby.  The  same  sex  couple…   a. Was  not  discriminated  against  because  sexual  orientation  is  not  a  protected  class.   b. Was  discriminated  against  on  the  basis  of  sex.     c. Was  discriminated  against  on  the  basis  of  familial  status.   d. Was  not  discriminated  against  because  the  landlord  can  discern  who  is  acceptable.       25. A  contract  which  has  been  performed  is   a. Executory   b. Expired   c. Extinguished     d. Executed     26. Under  the  Fair  Housing  Act,  which  of  the  following  is  perfectly  legal?     a. Charging  a  deposit  for  a  service  animal   b. Charging  an  additional  deposit  for  accessibility       c. Evicting  a  meth  addict  enrolled  in  a  recovery  program   d. Evicting  a  tenant  currently  on  an  illegal  substance     27. A  prospective  buyer  submits  an  offer  on  a  home  and  has  not  included  an  earnest  money   deposit  because  they  do  not  consider  it  necessary  under  the  circumstance.  The  buyer’s   agent  is  uncertain  about  whether  or  not  this  is  considered  a  bona  fide  offer  so  they  ask  the   broker  to  advise  them  accordingly.  The  broker’s  response  would  most  likely  be:   a. An  earnest  money  deposit  is  not  required  by  law   b. An  earnest  money  deposit  is  required  for  the  contract  to  be  binding   c. An  earnest  money  deposit  is  required  for  a  bona  fide  offer   d. An  earnest  money  deposit  is  not  necessary  until  the  offer  is  accepted     28. When  market  capitalization  rates  go  up,  it  is  a  possible  indicator  that  property  values  are…   a. Decreasing   b. Stabilizing   c. Recovering   d. Increasing     29. A  developer  purchased  100  acres.  The  plan  is  to  subdivide  the  property  into  equal  lots  to   sell  on  the  open  market.  17%  of  the  land  will  be  needed  for  streets  and  common  areas.  The   rest  will  be  80’  X  120’  lots.  How  many  lots  will  be  available  for  sale?   a. 177   b. 289   c. 376  100  X  43,560  =  4,356,000  sq.ft  Total  X  83%  (.83)  =  3,615,480  (total  less  the   17%  for  streets  and  common  areas  divided  by  80’X120’=9,600  sq.ft.  lots  =  376.6125   d. 453     30. In  order  to  calculate  the  most  accurate  price  of  a  property  using  the  income  approach  to   value,  what  information  is  necessary?   a. Original  purchase  price   b. Appraised  value   c. Net  Operating  Income   d. Outstanding  debt       31. What  Act  requires  that  a  copy  of  the  appraisal  be  given  to  the  borrowers?   a. The  Fair  Housing  Act   b. The  Consumer  Protection  Act   c. The  Equal  Credit  Opportunity  Act     d. The  Housing  and  Human  Rights  Act     32. The  bank  forecloses  on  a  property  that  has  multiple  liens.  There’s  a  $9,000  Home  Owner’s   Association  Lien,  there’s  a  Home  Equity  Line  of  Credit  for  $53,000,  a  long  overdue   mechanic  lien  of  $11,697  which  was  first  to  file  a  default,  and  the  bank  discovered  three   installments  of  property  taxes  totaling  $2,700  have  gone  unpaid.  Which  of  these  liens  has   priority  at  the  foreclosure  sale?  The…   a. HOA   b. Taxes   c. Mechanic   d. HELOC   33. A  borrower  prefers  a  loan  without  a  due-­‐on-­‐sale  clause.  Which  loan  should  they  consider?   a. Conventional   b. VA   c. OWC   d. Fannie  Mae     34. A  homeowner  is  voluntarily  selling  their  home  for  less  than  the  amount  they  owe.  This  is  a:   a. Stigmatized  property   b. Lis  Pendens   c. Distressed  sale  (Short  Sale)   d. Foreclosure     35. What  kind  of  deed  is  typically  used  to  cure  a  defect  on  title?       a. Warranty     b. Sheriff’s     c. Quitclaim     d. Trustee’s           36. A  signed  statement  certifying  for  a  third  party’s  benefit  that  a  lease  exists  and  that  there  are   no  claims  against  the  landlord  that  would  offset  obligations  to  a  certain  date  is  known  as   a. The  Truth-­‐in-­‐Lending   b. The  Statement  of  Account   c. An  Estoppel  Certificate   d. A  Management  Agreement     37. A  listing  agent  specializes  in  a  specific  area.  Out  of  town  sellers  are  preparing  to  put  their   home  on  the  market  and  reach  out  to  this  agent  for  advice  on  the  most  likely  selling  price  in   the  current  market.  The  listing  agent  gives  them  an  analysis  of  recent  sales  and  tells  them  a   recommended  list  price.  Then,  who  decides  the  price  of  the  listing?  The…   a. Listing  Broker   b. Listing  Agent   c. Sellers   d. Buyers     38. A  property  that  is  leased  has  gone  into  disrepair.  The  party  that  is  most  likely  liable  for  the   deferred  maintenance  is  the…   a. Property  management  company   b. Maintenance  department   c. Common  Interest  Community   d. Building  superintendent     39. The  parties  to  a  purchase  agreement  are  also  referred  to  as…   a. Primaries   b. Vendees   c. Principals   d. Contractors   40. A  property  management  agreement  establishes  what  type  of  agency?   a. Special       b. General   c. Universal   d. Limited     41. A  property  management  agreement  will   a. Supersede  a  lease  agreement   b. Explain  the  Property  Manager’s  Duties   c. Protect  the  Property  Manager’s  Rights   d. Include  a  title  report  to  reference         42. A  business  leases  a  building  while  they  are  waiting  for  their  own  building  to  be  built.  They   install  equipment  they  use  for  their  business  and  plan  to  remove  it  before  their  lease   expires.  The  equipment  would  best  be  described  as…   a. Emblements   b. Trade  Fixtures   c. Improvements   d. Trade  Equipment       43. The  buyer  receives  a  deed  that  says,  “remises,  releases,  alienates  and  conveys.”  What  type   of  deed  did  they  receive?   a. General  Warranty   b. Special  Warranty   c. Bargain  and  Sale   d. Quitclaim       44. The  following  advertisement  WILL  be  considered  a  violation  of  HUD  guidelines   a. 360  degree  mountain  and  ocean  views   b. In-­‐law  apartment  with  private  entrance     c. Beautiful  home  next  to  the  Catholic  Church   d. Shopping  within  walking  distance   45. A  buyer  tours  a  property  at  an  open  house.  The  hosting  agent  of  the  open  house  describes   the  upgrades  and  features  of  the  property  and  brags  about  the  neighborhood  and  how  it  is   so  wonderful  to  live  in  the  area.  The  agent  is     a. Puffing   b. Exaggerating   c. Misleading   d. Steering     46. The  property  of  an  owner  who  has  died  intestate  will  be  distributed  according  to  the  law  of   a. Priority  of  Liens   b. Descent  and  Distribution     c. Dower  and  Courtesy     d. Real  and  Personal  Property           47. An  appraisal  is  best  used  for   a. Establishing  the  most  probable  selling  price  of  a  home   b. Convincing  the  buyer  to  purchase  the  property   c. Estimating  the  absorption  rate  of  a  home   d. Calculating  the  taxable  value  of  the  property       48. What  document  will  reveal  a  cloud  on  title?  A/an   a. Preliminary  Title  Report   b. Public  Offering  Statement   c. HOA  Letter  of  Demand   d. Article  of  Incorporation     49. A  minor  inherits  a  family  estate  and  decides  to  sell  it.  Once  the  purchase  agreement  is   mutually  accepted,  it  is     a. Voided  upon  acceptance   b. Valid  and  legally  binding   c. Void  in  a  court  of  justice     d. Voidable  due  to  capacity     50. The  right  of  ownership  in  real  estate  that  is  absolute  is  known  as…   a. Fee  Simple   b. Life  Estate   c. Living  Trust   d. Absolute  Interest   51. An  impartial  opinion  of  value  is  best  created  by  a/an   a. Appraisal  Report  by  a  licensed  appraiser   b. Estimate  from  Zillow’s  Zestimate  app   c. Comparison  Market  Analysis  by  an  Agent   d. A  Broker  Price  Opinion  by  a  Broker     52. An  appraiser  is  conducting  a  valuation  of  a  36-­‐unit  apartment  complex.  What  technique  is   the  appraiser  most  likely  to  use?   a. Gross  Rent  Multiplier   b. Gross  Income  Multiplier   c. Cost  Summation  Approach   d. Comparative  Market  Analysis     53. The  buyer  and  the  seller  have  come  to  a  meeting  of  the  minds.  They  now  have  a/an   a. Bilateral  contract   b. Unilateral  contract   c. Contract  for  deed   d. Contract  of  Exchange       54. The  broker  notifies  all  their  clients  in  a  particular  area  that  more  refugees  are  moving  there   from  another  country  and  recommends  sellers  list  their  properties  as  soon  as  possible  to   avoid  any  more  dramatic  losses  in  value.  The  broker  is  guilty  of…   a. Nothing   b. Steering   c. Negligence   d. Blockbusting   55. Before  obtaining  a  building  permit,  plans  are  submitted  to  ensure  compliance  with     a. Local  building  codes     b. National  Flood  Zones   c. Equal  Housing  Act   d. Allodial  Land  System     56. A  Capitalization  Rate  would  effectively  be  changed  by  the     a. Transfer  of  ownership   b. Deed  of  Trust     c. Net  Operating  Income   d. Gross  Rent  Multiplier     57. The  seller  would  like  to  offer  a  bonus  if  the  buyer  is  procured  and  closes  within  90days.     This  bonus  must  be  from  the  seller  to:   a. The  listing  broker   b. The  buyer’s  broker     c. The  agent  who  sells  the  house     d. The  agent  who  is  the  procuring  cause     58. A  seller  has  a  bonafide  buyer  under  contract  to  purchase  their  house.  After  the  offer  is   accepted  but  before  the  transaction  has  closed  and  legally  transferred  to  the  buyer,  a  new   buyer  has  approached  them  directly  to  purchase  the  property  for  more.  Now,  the  seller…   a. Can  cancel  the  first  agreement  and  move  forward  with  the  new  buyer.     b. Is  in  violation  of  exclusivity  for  communicating  with  second  buyer.     c. Has  a  right  to  sell  the  property  to  the  second  buyer  after  the  transaction  closes.   d. May  have  the  contract  assigned  if  the  second  buyer  can  perform  as  the  first  buyer.     59.  An  offer  that  has  been  countered  has   a. Merit  and  will  be  enforceable   b. Expired  and  needs  extension   c. Been  rejected  as  written     d. All  elements  of  a  valid  offer       60. What  type  of  event  would  terminate  a  listing?   a. Death  of  an  agent   b. Death  of  a  principal     c. A  Notice  of  Default   d. A  Lis  Pendens       61. The  buyer  is  purchasing  a  property  for  $425,000.  They  are  putting  down  20%  and   financing  the  rest.  They  agreed  to  pay  their  lender  one  point  for  the  loan.  How  much  is  the   lender’s  origination  fee.     a. $850   b. $1,000   c. $3,400  $425,000  (price)  X  .80  (loan  to  value)  =  $340,000  (loan)  X  .01  =  $3,400  fee   d. $4,250   62. This  same  buyer  put  down  an  Earnest  Money  Deposit  of  $10,000.  How  much  more  will  they   need  to  wire  (or  bring)  into  escrow  for  their  down  payment  before  closing?   a. $65,000   b. $75,000    $425,000  (price)  X  .20  (down  payment)  =  $85,000  -­‐  $10,000  EMD  =  $75,000   c. $85,000   d. $95,000       63. The  buyer’s  original  offer  has  been  countered  by  the  seller.  The  buyer  responds  to  the   counter  with  a  counter.  Then,  they  have  a  change  of  heart  and  they  instruct  their  agent  to   rescind  the  offer.  What  is  a  true  statement?   a. As  long  as  the  offer  has  not  yet  been  accepted  by  the  sellers,  it  can  be  rescinded  in   writing.     b. The  buyer  is  legally  bound  to  the  terms  of  the  agreement.   c. The  due  diligence  is  the  only  time  the  buyer  can  cancel  a  contract  and  must  do  so  in   writing.   d. The  buyer  is  obligated  to  the  terms  of  the  original  offer.       64. A  property  owner  has  listed  their  house  for  sale  because  they  need  the  money.  During  the   listing  period,  the  seller  has  run  into  more  financial  challenges  and  decides  to  file  for   bankruptcy  protection.  The  status  of  their  listing  is  now   a. Terminated  per  the  bankruptcy   b. Unchanged,  they  can  still  sell   c. Determined  by  the  Beneficiary   d. Nullified  under  Statute  of  Frauds     65.  A  broker  lists  a  property  that  has  a  Deed  of  Trust  and  is  held  by  3  Joint  Tenants.  Before  the   listing  can  be  enforceable,  the  broker  must  obtain  the  signatures  of:   a. The  trustee  and  all  co-­‐owners   b. The  beneficiary  and  all  co-­‐owners   c. All  Co-­‐Owners   d. All  Trustees       66. A  house  has  4  bedrooms  whereby  one  bedroom  can  only  be  entered  into  through  a   bathroom  in  the  hallway.  This  is  an  example  of:   a. Physical  deterioration   b. Incurable  Devaluation   c. Functional  obsolescence   d. Curable  Obsolescence     67. A  luxury  home  is  being  sold  furnished.  The  buyer  is  getting  a  non-­‐conforming  conventional   loan.  The  furniture  and  some  paintings  are  being  conveyed  outside  of  escrow,  for   additional  money  as  agreed  upon  by  buyer  and  seller.  The  furniture  will  transfer  via  a/an…   a. Bill  of  sale   b. Deed  of  Trust   c. Amendment     d. Addendum     68. The  seller  told  an  agent  that  they  would  pay  5%  if  the  agent  would  find  a  ready,  willing  and   able  buyer.  The  agent  brings  a  prospective  buyer  to  the  property  and  the  buyer  decides  to   purchase  the  property  for  cash.  A  contract  for  the  sale  of  the  property  is  drawn  up  by  the   agent  for  the  buyer  and  the  seller  to  sign.  At  closing  the  seller  refuses  to  pay  the  agent  a   commission.  What  is  a  true  statement?     a. The  seller  is  not  obligated  to  pay  because  there  is  no  listing  agreement  signed.     b. The  agent  has  earned  a  commission  and  the  seller  is  obligated  to  pay  it.     c. The  agent  is  the  procuring  cause  of  the  sale  and  has  earned  a  commission.     d. The  seller  has  represented  them  self;  it’s  the  buyer  who  is  obligated  to  pay  it.       69. Two  corporations  come  together  to  purchase  a  property.  They  can  purchase  as:   a. Tenants  by  Entirety     b. Joint  Tenants   c. Tenants  in  Severalty   d. Tenants  in  Common       70. A  church  purchases  a  high-­‐rise  for  meetings  and  services,  which  also  has  residential  units.   They  give  the  property  manager  strict  instructions  that  only  members  of  their  church  can   rent  out  the  units  that  are  not  occupied  by  their  church  executives  and  administrators  who   have  a  housing  allowances  with  the  church.  What  is  a  true  statement?   a. This  is  a  violation  of  Fair  Housing  Law     b. This  is  acceptable  under  Fair  Housing  –  Religious  organizations  are  an  exemption   c. The  Church  is  guilty  of  Anti-­‐Trust  Laws   d. Churches  cannot  legally  buy  high-­‐rises       71.  In  order  for  the  tenant  to  maintain  ownership  of  trade  fixtures,  they  must  be…   a. Removed  before  the  end  of  the  lease.   b. Identified  in  the  lease  agreement  as  the  property  of  the  tenant.   c. Negotiated  as  part  of  the  lease  agreement.   d. Willing  to  pay  the  landlord  for  them  by  a  separate  agreement.     72. A  farmer  is  selling  their  family  farm.  They  planted  a  field  of  corn  and  it  will  be  ready  for   harvest  after  the  sale  is  final.  They  will  be  returning  to  the  property  to  collect  their  crop.   This  legal  right  is  referred  to  as?   a. Easements     b. Emblements   c. Appurtenants     d. Encroachments   73. A  buyer  is  subject  to  a  due-­‐on-­‐sale  clause,  which  loan  do  they  most  likely  have?  A/An   a. VA  loan   b. FHA  Loan   c. Land  Contract   d. Conventional  Loan     74. The  Comprehensive  Environmental  Response  Compensation  and  Liability  Act  provides   a. strict  guidelines  for  the  cleanup  of  hazardous  substances   b. compensation  for  buyers  harmed  by  naturally  occurring  hazards   c. relief  for  sellers  who  have  experienced  undue  hardships   d. response  measures  for  buyers  and  sellers  with  hazardous  materials     75. Leakage  of  fuel  or  chemicals  from  unknown  Underground  Storage  Tanks  causing  the   contamination  of  soil  and  water  will  most  likely  result  in  the   a. Property  being  condemned  as  uninhabitable   b. Environmental  Hazmat  team  to  be  called  to  duty   c. Infectious  Disease  Task  Force  evaluation  and  response   d. Responsible  parties  being  liable  for  the  cleanup       76. Assuming  a  Hindu  family  wants  to  live  in  walking  distance  to  the  Hindu  temple  in  town  and   an  agent  planning  to  show  them  property  only  in  that  area  is  in  violation  of  what  federal   law…   a. Steering   b. Legal   c. Redlining   d. Blockbusting     77. The  first  step  of  an  appraisal  process  is:   a. Gathering  the  data   b. Defining  the  problem   c. Determining  highest  and  best  use   d. Estimating  the  valuation  approach     78. A  buyer  not  be  willing  to  pay  any  more  for  a  property  that  someone  else  has  recently  paid   for  a  comparable  property  of  equal  utility  and  desirability,  especially  if  there  are  similar   properties  still  available  for  sale,  is  the  principle  of…   a. Substitution   b. Contribution   c. Anticipation   d. Competition     79. The  Seller  counters  a  buyer’s  offer.  The  seller  has   a. Amended  the  Purchase  Agreement     b. Increased  the  price  or  changed  the  terms     c. Rejected  the  original  offer   d. Accepted  the  original  offer   80. An  analysis  prepared  by  a  real  estate  licensee  containing  the  verbiage:  “This  is  not  an   appraisal  of  the  market  value  of  the  property  and  may  not  be  used  in  lieu  of  an  appraisal.  If   an  appraisal  is  desired,  the  services  of  a  licensed  or  certified  appraiser  shall  be  obtained.”  is   most  likely  a/an…   a. Comparative  Market  Analysis  (CMA)   b. Broker  Price  Opinion  (BPO)   c. Estimate  of  Market  Valuation  (EMA)   d.  Certification  of  Value  (COV)       81. How  is  a  Phase  II  different  from  a  Phase  I?   a. It  is  completed  by  the  seller  after  closing   b. It  requires  more  invasive  testing   c. There  is  no  difference;  it’s  just  the  order  of  completion   d. Phase  II  is  optional;  Phase  I  is  required       82.  A  buyer  submits  an  offer  that  is  accepted  by  the  seller.  The  listing  agent  does  not  provide  a   fully  executed  copy  to  the  buyer.  Does  the  buyer  have  a  valid  contract?   a. Yes,  the  listing  broker  has  no  duty  to  the  buyer   b. No,  the  buyer  must  receive  a  copy  upon  signing   c. Yes,  but  the  buyer  is  not  obligated  because  the  listing  agent  is  in  breach   d. No,  the  buyer  is  entitled  first  to  a  copy  of  the  fully  executed  agreement       83. In  order  to  maintain  property  values,  a  Home  Owner’s  Association  established  rules  and   restrictions  around  the  architecture,  color  schemes,  and  elevations  of  properties  in  the   neighborhood.  This  is  a  good  example  of   a. Competition     b. Contribution     c. Conformity   d. Consistency       84. The  CFPB  requires  lending  disclosures  be  provided  on  all  loans  that  are     a. Brokered   b. Residential     c. Commercial   d. Over  $100,000     85. An  avid  birder  decides  to  donate  20  acres  to  the  community  as  a  bird  sanctuary  and   specifies  that  the  estate  must  be  reserved  as  a  free  park  to  encourage  people  to  learn  about   and  observe  birds  while  protecting  their  natural  habitat.  What  is  the  property  interest  that   has  been  granted?     a. Pur  autre  vie   b. Life  Estate   c. Fee  Simple  Defeasible       86. A  person  subleases  a  property  that  has  a  “no  assignment”  clause.  The  tenant  has  breached   the  lease  agreement  and  the  occupant  is  considered  to  be  a/an…   a. Wrongful  third  party   b. Illegal  alien   c. Estate  at  will   d. Estate  at  sufferance     87. A  property  is  inherited  by  three  children.  One  of  them  passes  away  before  the  property  is   sold.  The  property  is  listed  with  an  agent.  The  two  living  siblings  sign  the  listing  agreement.   The  listing  is  not  valid  until  the…   a. Broker  signs  the  listing  agreement   b. Death  Certificate  is  Acknowledged   c. Certificate  of  Death  is  authenticated     d. Power  of  Attorney  for  the  deceased  signs     88. Zoning  changed.  The  current  owner  of  an  affected  piece  of  property  is  not  in  compliance   with  the  new  zoning  laws.  The  property  is…   a. Required  to  conform     b. Non-­‐conforming  Use   c. Temporary  out  of  use   d. Automatically  grandfathered       89. The  purpose  of  the  Superfund  Amendments  and  Reauthorization  Act  is  to     a. Clean  up  sites  when  responsible  parties  cannot  be  identified   b. Reimburse  sellers  who  have  cleaned  up  contaminated  sites   c. Educate  land  developers  as  to  the  severity  of  contamination   d. Enforce  the  mismanagement  of  Funds  reserved  for  cleanup     90. An  elder  donates  a  portion  of  their  estate  to  their  congregation  stating  in  the  deed  that  the   property  only  be  used  for  worship  or  the  property  will  revert  back.  The  elder  has  donated   the  property  as  a/an…   a. Inheritance  with  the  right  of  conversion   b. Life  estate  with  the  possibility  of  reverter     c. Fee  Simple  Absolute   d. Fee  Simple  Determinable       91. A  property  owner  sets  up  a  Life  Estate  for  an  elderly  relative.  After  the  relative’s  passing   the  property  is  to  go  to  the  property  owner’s  children.  The  children  will  receive  what  type   of  interest  to  the  property?   a. Fee  Simple  Determinable   b. Fee  Simple  Absolute   c. Life  Estate  Pur  Autre  Vie           92. Life  Estate  For  Years  The  most  likely  cause  of  unseen,  indoor  mold  is:   a. Moisture   b. Flashflood   c. High  Rainfall   d. Low  Humidity     93. Wetlands  can  be  best  described  as  lands  that  are…   a. Between  lakes,  rivers,  and  oceans   b. Naturally  occurring  in  rural  and  urban  areas   c. Seasonally  or  permanently  inundated  with  water   d. Responsible  for  mold  and  mildew       94. What  are  the  characteristics  of  value?   a. Demand,  utility,  supply,  and  transferability   b. Demand,  utility,  scarcity,  and  transferability   c. Density,  usefulness,  supply,  and  transferable   d. Density,  usefulness,  scarcity,  and  transferable             95. To  avoid  paying  capital  gains,  the  homeowners  must  live  in  their  property  for…   a. 5  years   b. 2  of  the  last  5  years   c. 7  years   d. 7  of  the  last  10  years     96. A  home  inspection  revealed  the  presence  of  a  friable,  fire-­‐resistant  material  in  a  partially   rehabbed  property  where  walls  were  demolished,  exposing  insulation.  The  buyers   cancelled  per  the  inspection  siting  the  existence  of…     a. Asbestos   b. Area-­‐foam   c. Perchlorate   d. Polychlorinate   97. The  county  requires  all  building  structures  to  be  a  minimum  of  10  feet  distance  from  the   sidewalk.  This  is  known  as  a/an…   a. Setback   b. Permit   c. Ordinance   d. Variance   98. The  town  library  is  being  appraised  so  that  the  town  clerk  can  make  sure  that  the  proper   insurance  policy  is  in  place.  The  appraiser  will  most  likely  use  what  approach?   a. Cost     b. Income   c. Data  Analysis   d. Sales  Comparison       99. The  most  important  economic  characteristic  of  real  property  is:   a. Situs   b. Datum   c. Scarcity     d. Demand     100. If  the  amount  of  the  down  payment  and  the  annual  percentage  rate  appears  on  a  postcard   advertisement,  what  else  must  also  be  disclosed?   a. Repayment  terms   b. Interest  rate   c. Lender  Name   d. Loan  type     101. A  seller  has  listed  their  river  front  property.  There  is  a  dock  for  a  boat  and  a  river  entrance   for  swimmers  to  enter  the  water.  Which  of  the  following  statement  is  most  likely  to  be  true:   They  have…   a. Littoral  Rights   b. A  Right  of  First  Refusal   c. Riparian  Rights   d. A  Right-­‐of-­‐Way  Easement   102. A  buyer  finds  a  for-­‐sale-­‐by-­‐owner.  The  seller  agrees  to  the  price  and  terms  of  the  buyer.   Together,  they  reach  out  to  an  agent  to  draw  up  the  paperwork  and  assist  in  the  sale  but   neither  wants  to  be  represented  in  a  fiduciary  capacity.  This  is  known  as:   a. Dual  agency     b. Multiple  representation     c. Transactional  brokerage   d. Non-­‐brokerage       103. Brownfields  is  best  described  as:   a. Areas  where  soil  has  been  contaminated  by  chemical  discharges   b. Protected  areas  around  rural  farmlands  preserved  for  wildlife     c. Areas  that  have  been  affected  by  accretion  and  avulsion     d. Protected  fields  where  there  are  wetlands  and  birds     104. An  Acceleration  clause  is  part  of  what  type  of  contract?  A…   a. Lease  Agreement   b. Promissory  Note   c. Notice  of  Default   d. Buyer’s  Brokerage  Agreement     105. Statute  of  frauds  requires  all  contracts  for  real  property  be   a. Notarized  by  notaries   b. Written  by  attorneys   c. In  writing   d. Recorded   106. A  property  was  built  in  1976.  It  has  had  three  owners  since  then  and  has  been  completely   remodeled.  Which  of  the  following  disclosures  will  be  required?   a. Construction  Defect   b. Remodel  Exemption   c. Lead-­‐based  Paint   d. Resale  of  Realty             107. The  buyer  and  the  seller  have  signed  all  necessary  documents.  The  seller  does  not  have  a   mortgage  to  pay  off  and  will  be  providing  an  owner’s  title  policy  to  the  buyer.  The  buyer  is   purchasing  with  a  loan.  Who  must  sign  the  deed  in  order  for  it  to  be  valid?     a. The  seller  only   b. The  buyer  only   c. The  seller  and  the  buyer   d. The  buyer  and  their  lender       108. An  ocean  front  property  sold  for  $1,650,000.  The  dimensions  of  the  lot  are  150  feet  by  200   feet.  What  was  the  price  per  ocean  front  foot?   a. $4714   b. $5,500   c. $8,250   d. $11,000    $1,650,000  (Sales  Price)/150  (ocean  frontage)  =  $11,000  price  per  front  foot     109. A  property  is  found  to  be  at  sea  level.  What  body  of  water  did  the  surveyor  most  likely  use   to  measure  the  elevation?     a. Mean  sea  level  in  New  York  Harbor   b. High  tide  nearest  the  property   c. Low  tide  nearest  the  property   d. 100  year  flood  datum     110. The  method  of  appraising  a  property  that  utilizes  current  market  data  and  is  often  used  for   residential  properties  is  known  as  the…   a. Cost  Approach   b. Income  Approach   c. Market  Cost  Approach   d. Sales  Comparison  Approach     111. The  residents  of  a  high-­‐rise  in  the  city  have  a  proprietary  lease  to  their  unit.  They  are   shareholders  in  the  corporation  who  holds  title  to  the  building  and  the  lot  the  high-­‐rise  is  on.   What  type  of  ownership  do  the  residents  have?  A…   a. Cooperative   b. Condominium   c. Living  Trust     d. Townhome                 112. A  listed  property  is  taken  by  eminent  domain,  the  listing  agreement  is     a. Executory   b. Unaffected     c. Enforceable     d. Terminated     113. The  Comprehensive  Environmental  Response  Compensation  and  Liability  Act  is  enforced   by  what  agency?   a. EPA   b. HUD   c. FHA   d. FDA     114. A  buyer  and  seller  agree  to  the  sale  price  of  the  property  and  the  seller  retains  legal  title   and  the  buyer  gets  possession  and  equitable  title  to  the  property.  In  this  case,  what  type  of   contract  is  in  place  between  the  principals?  A…   a. Land  Contract   b. Listing  Agreement   c. Land  Agreement   d. Listing  Contract     115. A  philanthropist  donates  an  estate  to  a  charity  with  the  understanding  that  once  the   property  passes  to  the  charity  upon  death,  the  charity  will  continue  with  its  current  use.   After  the  charity  inherits  the  property,  they  own  it…   a. Fee  Simple  Absolute   b. Fee  Simple  Determinable   c. Fee  Simple  Absolute  Unconditional     d. Fee  Simple  Subject  to  a  Condition  Subsequent