1. Law of Agency, National Real Estate Exam, TX: Real Estate Test Practice – MC GRADED A+ 2022- 2023 -2024 UPDATED QUESTIONS AND ACCURATE ANSWERS BEST DOCUMENT FOR STUDY

1. Law of Agency, National Real
Estate Exam, TX: Real Estate Test
Practice – MC GRADED A+ 2022-
2023 -2024 UPDATED QUESTIONS
AND ACCURATE ANSWERS BEST
DOCUMENT FOR STUDY
Which of the following is NOT necessary in a
listing contract?
a. The signature of all parties on the deed
b. The signature of the sellers
c. The signature of the broker
d. The signature of the buyer - ANSWER-The
signature of the buyer
Andrew leases the 12 apartments in the
Overton Arms for a total monthly rental of
$3,000. If this figure represents an 8 percent
annual return on Andrew's investment, what
was the original cost of the property?
a. $450,000
b. $360,000
c. $45,000
d. $36,000 - ANSWER-$450,000
By paying the debt after a foreclosure sale, the
mortgagor has the right to regain the property.
What is this right called?
a. Acceleration
b. Redemption
c. Reversion
d. Recovery - ANSWER-Redemption
Helen grants a life estate to her grandson and
stipulates that, upon death, the title will pass to
her son-in-law. What is the second estate?
a. Estate in reversion
b. Estate in remainder
c. Estate for years
d. Estate in recapture - ANSWER-Estate in
remainder
The borrower's offer of $190,000 was accepted.
She has a 10 percent down payment and would
like to avoid paying for private mortgage
insurance. Is there a loan that would allow her
to accomplish her goal?
a. Yes, she can borrow $19,000 from a private
source, tell the lender she has a 20 percent
down payment instead of a 10 percent down
payment, and avoid private mortgage
insurance.
b. Yes, if the seller will negotiate a purchase
money mortgage for $19,000 and agree to be in
a second lien position on the property, she can
avoid private mortgage insurance.
c. No, because all borrowers must pay private
mortgage insurance when negotiating any type
of loan.
d. No, because private mortgage insurance is
always paid when a borrower has less than a 20
percent down payment. - ANSWER-No, because
private mortgage insurance is always paid when
a borrower has less than a 20 percent down
payment.
Which of the following is NOT an example of a
subdivision rule and regulation?
a. The agreement that the property cannot be
sold and used as a waste disposal site
b. The agreement that a tree house cannot be
built
on the property
c. The agreement that walls and fences shall
not
exceed four feet in height
d. The agreement that no structure of a
temporary
character shall be constructed on any lot -
ANSWER-The agreement that the property
cannot be sold and used as a waste disposal
site
A couple wants to list a home they have lived in
for 38 years because they have decided to
move to Florida before the winter storms
arrive. The listing agent is aware that zoning
may change in the area, which would greatly
increase the value of their property. The agent
should say?
a. say nothing incase the zoning does not
change
b. inform the sellers of all the facts she has
regarding the zoning change, and let them
make the decision about listing the property
c. List the property because she has a buyer
that
has already shown interest, and if it sells, then
the sellers will be in Florida before the winter
storms
d. list the property and say nothing because if
the zoning does change, the listing contract will
be void anyway - ANSWER-inform the sellers of
all the facts she has regarding the zoning
change, and let them make the decision about
listing the property
The current market interest rate is 17 percent.
Mr. and Mrs. Homeowner want to transfer
their property to their daughter. The loan
balance is $75,000. The property can be
transferred if the loan does NOT contain a(n)
A. alienation clause.
b. accelerating clause.
c. defeasance clause.
d. nondisturbance clause. - ANSWER-alienation
clause
An offer has been accepted on a property. After
the title search, who gives an opinion of title?
A. An attorney
b. The seller
c. The buyer
d. The broker - ANSWER-an attorney
Mr. and Mrs.. Buyer just purchased their first
house, which sits on five acres. They intend to
keep goats on the property. Which of the
following would allow or disallow them to keep
goats?
a. Federal ordinances
b. State ordinances
C. Zoning
d. Neighbors - ANSWER-zoning