Real Estate U Final Exam 2023 – 2024 HESI EXIT QUESTIONS ACTUAL EXAM STUDY GUIDE WITH REAL EXAM AND CORRECT ANSWERS GRADED A+

Real Estate U Final Exam 2023 – 2024 HESI EXIT
QUESTIONS ACTUAL EXAM STUDY GUIDE
WITH REAL EXAM AND CORRECT ANSWERS
GRADED A+
A real estate purchaser is said to have equitable title when
a) escrow is opened
b) the transaction is closed
c) a contract for deed is paid off
d) the sales contract is signed by both buyer and seller - CORRECT ANSWER-d) the
sales contract is signed by both buyer and seller
An option to purchase binds
a) both buyer and seller
b) buyer only
c) seller only
d) neither buyer nor seller - CORRECT ANSWER-c) seller only
Which of the following best describes a land contract or installment contract?
a) a means of conveying title immediately whereby the purchaser pays for the property
in installments
b) a mortgage on the land
c) a contract to buy land only
d) a method of selling real estate whereby the purchaser pays in regular installments
while the seller retains title - CORRECT ANSWER-d
The purchaser of real estate under an installment contract
a) generally pays no interest charge
b) is not required to pay property taxes for the duration
c) receives legal title immediately
d) acquires equitable title - CORRECT ANSWER-d
- CORRECT ANSWERA buyer offers in writing to purchase a house for $220,000 including its draperies, with
the offer to expire on Saturday at noon. The sellers reply in writing on Thursday,
accepting the $220,000 offer but excluding the draperies. On Friday, while the buyer
considers the counteroffer, the sellers decide to accept the original offer, draperies
included, and state that in writing. At this point, the buyer
a) must buy the house but is not entitled to the draperies
b) must by the house and can deduct the value of the draperies from the $220,000
c) must buy the house and have the right to insist on the draperies
d) is not bound to buy - CORRECT ANSWER-d
A buyer wants to make an offer to purchase a house that she suspects has a wet
basement. The buyer is afraid that the house may be sold to someone else before she
has a chance to get information about the structure. How should she proceed?
a) hire a contractor to give an estimate for repair before making an offer
b) make an offer to purchase that is contingent on a structural inspection
c) ask the real estate salesperson to guarantee that the basement is dry
d) ask the seller to repair the basement before she makes an offer - CORRECT
ANSWER-b
In PA, at what time should an estimated statement of closing costs be provided to the
buyer and the seller?
a) prior to the settlement
b) after acceptance of an offer
c) prior to signature of the agreement of sale
d) within 24 hours of communication of acceptance of an offer - CORRECT ANSWER-c
Before buyers and sellers entire into a written contract to purchase, real estate
licensees are required to provide
a) an estimated statement of closing costs
b) a confirmation that the buyers and sellers approve of paying a commission to the
brokers involvd
c) a statement from the buyers as to why they will use the property
d) verification that the property is properly insured - CORRECT ANSWER-a
A licensee tells a prospective buyer, "this property has the most beautiful river view." In
fact, the view includes the river and the back of a shopping center. The licensee
a) is guilty of negligent misrepresentation
b) is merely puffing
c) is guilty of intentional mispresentation
d) has committed fraud - CORRECT ANSWER-b
Water leaks into the basement only in the spring when the snow melts; the basement is
dry during the summer. This is an example of
a) an example of caveat emptor
b) a problem that must be dealt with only if it surfaces while the property is on the
market
c) a latent defect that must be disclosed to prospective buyers
d) a latent defect that does not need to be discussed with prospective buyers -
CORRECT ANSWER-c
Which of the following is an example of material defect?
a) the listing agent notes that the subject property is within three blocks of an
elementary school
b) the listing agent declares that the floor plan is the best in the neighborhood
c) the seller instructs the listing agent not to disclose that her grandmother died in her
sleep in her house
d) the house was built over a ditch filled with decaying timber - CORRECT ANSWER-d
A house is rumored to be haunted. Additionally, the air conditioner is not working
properly. Under PA law, what must be disclosed?
a) neither the rumored haunting or the broken air conditioner
b) the broken air conditioner
c) both the rumored haunting and the broken air conditioner
d) the rumored haunting - CORRECT ANSWER-b
Under an installment contract, who is obligated to pay the real estate taxes?
a) the buyer
b) the seller
c) trustee who holds naked title
d) split equally between the buyer and the seller - CORRECT ANSWER-a
Who is best suited to assist a buyer and a seller to enter into an installment contract?
a) an attorney
b) a real estate salesperson
c) the broker of record
d) an accountant - CORRECT ANSWER-a
The buyer and the seller entered into a contract contingent on a satisfactory home
inspection. The inspection turned up a serious roof problem, which will cost about