Real Estate Salesperson Practice Exam 2

Real Estate Salesperson Practice Exam 2

Congratulations - you have completed Real Estate Salesperson Practice Exam 2. You scored %%SCORE%% out of %%TOTAL%%. Your performance has been rated as %%RATING%%
Your answers are highlighted below.
Question 1
Real Estate License Laws were instituted to
A
raise revenue through license fees
B
protect the public and maintain high standards
C
limit the number of Brokers and Salespersons
D
match the federal government's requirement
Question 1 Explanation: 
The licensing laws are created to protect the public from unethical practices in real estate.
Question 2
In New York, real estate licenses are under the supervision of the
A
Department of Education
B
Real Estate Commission
C
Board of REALTORS
D
Department of State
Question 2 Explanation: 
Each state has their own licensing laws.
Question 3
A fully qualified broker who chooses to act as a salesperson under another broker's sponsorship is licensed as a(n):
A
adjunct salesperson
B
associate broker
C
principal broker
D
sales associate
Question 3 Explanation: 
The associate broker is not the broker of record for the company.
Question 4
A broker must have completed how many hours of prescribed study for licensing?
A
22.5
B
30
C
45
D
120
Question 5
Salesperson James told the telephone company to print the following ad under Real Estate in the Yellow Pages: Beth Smith, Licensed Salesperson, Specialty Residential Property, 718-555-4973. She should have included her
A
age
B
cell number
C
license number
D
brokerage name
Question 5 Explanation: 
The brokerage name must be included in all advertising.
Question 6
A violation of license law is legally classified as a(n):
A
infraction
B
offense
C
misdemeanor
D
felony
Question 7
If a Real Estate Broker’s license is suspended:
A
all salesperson's licenses are revoked
B
all salesperson's are fined $1000
C
all salesperson's must take a continuing education class
D
all salesperson's licenses are suspended
Question 7 Explanation: 
Business is done under the brokerage name. If a principal broker looses their license, all real estate activity must stop.
Question 8
How many years must a real estate broker keep all documents pertaining to a real estate transaction?
A
three years
B
five years
C
two years
D
indefinitely
Question 8 Explanation: 
All real estate transaction records must be kept for three years.
Question 9
The term commingling pertains to
A
soliciting the services of another broker's salesperson
B
failing to deliver copies of contracts to a client
C
mixing the broker's funds with escrow deposits
D
promoting business at social gatherings
Question 9 Explanation: 
Commingling is mixing client funds with office operation funds or personal funds. Client monies must remain separate.
Question 10
A buyer's broker is told by the buyer that he had filed for bankruptcy the year before. The buyer's broker
A
can politely refuse to provide any information to the seller that would violate her duty of confidentiality to the buyer
B
should discuss with the buyer her duty to reveal the bankruptcy to the MLS
C
has a duty of fair dealing toward the seller and must discuss the buyer's finances
D
has no responsibility to the seller, because she is the buyer's agent
Question 10 Explanation: 
The buyer's agent must remain loyal to the buyer and can not share confidential information about their client.
Question 11
Broker John Brown owes customer Susan Jones
A
loyalty
B
fairness and honesty
C
confidentiality
D
accounting
Question 11 Explanation: 
An agent still owes a customer fair and honest dealing.
Question 12
The Agency Disclosure form must be presented, explained and signed when
A
the customer makes an offer
B
the seller accepts an offer
C
the seller and buyer first meet
D
there is a first substantial contact
Question 12 Explanation: 
Commonly many state laws require disclosure of agency before any confidential information is disclosed about a person's motivation or finances.
Question 13
Brokers have the most incentive to market a property when they have a(n):
A
open listing
B
exclusive-agency listing
C
exclusive right-to-sell listing
D
net listing
Question 13 Explanation: 
The exclusive right to sell listing provides the brokerage with maximum protection. The listing brokerage will earn commission no matter who sells the property.
Question 14
A specific tract of land is known as a
A
devise
B
chattel
C
parcel
D
littoral
Question 14 Explanation: 
A parcel is an identifiable tract of land.
Question 15
Howdy Smith, owner of a farm in Ponyhorse County, has found that an oil company wants to lease his
A
littoral rights
B
prior appropriation rights
C
riparian rights
D
subsurface rights
Question 15 Explanation: 
Subsurface rights include mineral, water, gas and oil beneath the surface of the land.
Question 16
When a bridge is to be constructed over and above the land, the contractor purchases the landowner's
A
riparian rights
B
subsurface rights
C
air rights
D
littoral rights
Question 16 Explanation: 
Air rights can be purchased or leased by another.
Question 17
Ellen Waters owns land along the East River, as the owner she has certain water rights called
A
subsurface rights
B
riparian rights
C
air rights
D
littoral rights
Question 17 Explanation: 
Riparian rights are water rights along a flowing body of water.
Question 18
Jim's mechanic's lien will remain against the property for at least:
A
one year
B
eight months
C
ten year
D
four months
Question 18 Explanation: 
A mechanic's lien is for material suppliers or laborers and contractors that have not been paid for their materials or labor.
Question 19
A telephone company has a right to install it's poles and wires granted by what type of easement?
A
by necessity
B
in gross
C
by prescription
D
appurtenant
Question 19 Explanation: 
An easement in gross is an individual or company interest or right to use the land of another. Commonly a utility easement.
Question 20
When someone dies leaving no will and no natural heirs, the New York State property goes to
A
the federal government
B
local charities
C
the state of New York
D
an escrow fund
Question 20 Explanation: 
This is called escheat. A person dies intestate and has no living heirs, the property reverts to the state.
Question 21
To place a lien against personal property, one must file a
A
UCC filing
B
security bond
C
mortgage lien
D
insurance policy
Question 21 Explanation: 
The Uniform Commercial code filing is a legal form that creditors file that it has an interest in a debtors personal property. A lien on the personal property.
Question 22
Which of the following is not a legal description?
A
the street address
B
the survey
C
block and lot
D
metes and bounds
Question 22 Explanation: 
A street address does not define the perimeter and boundaries of a parcel of real estate.
Question 23
It is essential that every deed be signed by the
A
devisee
B
grantee
C
grantor and grantee
D
grantor
Question 23 Explanation: 
The grantor must sign a deed. The grantee does not have to sign a deed.
Question 24
Consideration in a deed refers to
A
gentle handling of the document
B
the habendum clause
C
something of value given
D
estoppel
Question 24 Explanation: 
Consideration is something of value. Money, love and affection and nominal are examples.
Question 25
A notary's acknowledgment of the signature on a deed is necessary
A
for the deed to be recorded
B
before a transfer tax can be paid
C
to prove that the seller wishes to sell
D
for the deed to be valid
Question 25 Explanation: 
The notary will make sure the grantor's signature is genuine and of their own free will.
Question 26
If a licensee has wrongfully obtained funds in the course of a violation of license law, DOS may impose a fine of
A
up to three times the amount received
B
up to four times the amount received
C
the full amount received
D
$1000 or the full amount received
Question 26 Explanation: 
The amount will be at the discretion of the state.
Question 27
Which of the following is NOT exempt from completing continuing education requirements?
A
broker for 15 years before July 2008
B
attorney licensed to practice in New York
C
broker for 20 years before 7/2008
D
salesperson licensed for 15 years
Question 27 Explanation: 
The others are exempt.
Question 28
A broker who conducts business as a sole proprietorship under an assumed name is classified as a(n):
A
associate broker
B
trade name broker
C
individual broker
D
corporate broker
Question 28 Explanation: 
The broker would have to disclose to the state doing business as, then provide the name.
Question 29
A partner in a real estate firm must hold which level of license?
A
associate broker
B
salesperson
C
broker
D
broker plus two years experience
Question 29 Explanation: 
To be a partner, the person must hold a brokers license.
Question 30
A business activity involving a monopoly or conspiracy that negatively impacts another individual or company is called a(n):
A
estoppel
B
illegal use of the rule of reason
C
restraint of trade
D
kickback
Question 30 Explanation: 
These activities would violate the antitrust laws. These laws are designed to preserve the free enterprise of the open market.
Question 31
In New York, dual agency is
A
a violation of Article 12-A of the license law
B
allowable under New York law with disclosure and informed consent
C
allowable with respect to commercial transactions only
D
a violation of the agency laws of New York
Question 31 Explanation: 
Dual agency must have the consent of both parties to the transaction.
Question 32
An attorney-in-fact
A
must be an attorney at law
B
is appointed by court order
C
is appointed by a power of attorney
D
is appointed to supervise a foreclosure sale
Question 32 Explanation: 
The power of attorney is a document authorizing an individual to act as an agent for another.
Question 33
The relationship between a broker and a salesperson is commonly
A
vendor and vendee
B
principal and agent
C
grantor and grantee
D
management and labor agent
Question 33 Explanation: 
The salesperson is an agent of the broker. The broker is the agent of the buyer or seller.
Question 34
The principal amount of an assumed mortgage appears on the buyer's statement as a
A
debit
B
reconciliation
C
credit
D
format
Question 34 Explanation: 
The buyer will assume the debt and obligations that come with it.
Question 35
A blanket mortgage usually encumbers
A
an underlying wraparound mortgage
B
several mortgages
C
several parcels of real property
D
household goods
Question 35 Explanation: 
A blanket mortgage covers more than one parcel of land.
Question 36
A freehold estate limited by the holder's own lifetime is a
A
life estate pur autre vie
B
life estate
C
life estate in remainder
D
life estate in reversion
Question 36 Explanation: 
A life estate is an interest in real estate that is limited to the lifetime of its owner. A reversion or remainder interest is a future interest in the real property.
Question 37
A cooperative apartment is characterized by
A
fee simple ownership
B
ownership of stock in a corporation
C
joint tenancy ownership of the land
D
individual freehold estate
Question 37 Explanation: 
In a cooperative apartment, the occupants will own stock in the corporation and in return receive a proprietary lease to the unit.
Question 38
The legal right to enter upon another's property is a(n)
A
trespass
B
encroachments
C
easement
D
variance
Question 38 Explanation: 
An easement right is a legal right to use the land of another for a specific purpose.
Question 39
Which of the following is NOT a characteristic of a license?
A
personal privilege
B
interest in the land
C
revocable privilege
D
non-assignable
Question 39 Explanation: 
A license is a privilege to use another's property and may be revoked.
Question 40
The giving of real property from the state or government to a private individual is known as
A
dedication
B
eminent domain
C
public grant
D
escheat
Question 40 Explanation: 
A transfer from the government to a private individual is accomplished by a public grant.
Question 41
A deed which contains no warranties:
A
special warranty
B
quickclaim deed
C
grant, bargain and sale deed
D
quitclaim deed
Question 41 Explanation: 
A quitclaim deed carries no warranties.
Question 42
The person appointed by a court to distribute the deceased person's property who died intestate is a(n):
A
probate
B
executor
C
administrator
D
devisee
Question 42 Explanation: 
An executor is named in a will. The administrator is appointed by the court.
Question 43
Property managers owe property owners:
A
a fiduciary relationship
B
a customer relationship
C
raising rents immediately
D
increasing operating expenses immediately
Question 43 Explanation: 
A property management agreement should be signed prior to the property manager managing the property for the owner. The agreement will define the obligations of both parties.
Question 44
A lease that provides for the lessee to pay a part or all of the expenses of a property, in addition to rent, is called a(n):
A
estate at sufferance
B
sale and leaseback
C
net lease
D
gross lease
Question 44 Explanation: 
A few of the expenses the tenant would be expected to pay are taxes, insurance, utilities and repairs.
Question 45
Another name for actual eviction is
A
legal process
B
constructive eviction
C
reversion
D
litigation of damages
Question 45 Explanation: 
Eviction is a legal process to remove a tenant from the premises.
Question 46
When a purchaser and seller have a valid contract for the sale of real property, the purchaser has
A
legal title
B
no title
C
constructive title
D
equitable title
Question 46 Explanation: 
Equitable title is acquired by the buyer after the sales contract is executed. Legal title has not transferred.
Question 47
New York State law requires agency to be disclosed by
A
the first substantive contact
B
a, c & d
C
the acceptance of a purchase contract
D
a time prior to the signing of a listing
Question 47 Explanation: 
Agency disclosure laws are dictated by state law. The agent must disclose the parties they represent.
Question 48
The persons often involved in an agency are
A
principal
B
agent
C
a & b
D
third party
Question 48 Explanation: 
The third party is the customer.
Question 49
Jim Surface was not paid for roofing the Smith's home. How long does he have to file a mechanic's lien?
A
eight months
B
one year
C
four months
D
two years
Question 49 Explanation: 
A mechanic's lien is for contractors, laborers and material suppliers who have performed work or supplied materials and was not paid for the labor or materials.
Question 50
Rosita buys a summer cottage that has a mechanic's lien against it. The lien was placed by the workman who was not paid by the former owner Jim, for constructing a dock. The lien
A
is void
B
is Jim's responsibility only
C
remains as a claim against the property
D
is considered satisfied
Question 50 Explanation: 
The lien attaches to the property and will remain attached through a transfer.
Question 51
A home was purchased in 2005 for $425,000. It was sold recently for $478,000. What is the rate of return on the profit for this house?
A
12.47%
B
1.12 %
C
88.91%
D
53%
Question 51 Explanation: 
$478,000 - $425,000 = $53,000/$425,000 = 12.47%
Question 52
To establish an easement by prescription in New York, a person must use another's property for an uninterrupted period of
A
five years
B
fifteen years
C
ten years
D
twenty years
Question 52 Explanation: 
The prescribed period of time is ten years.
Question 53
Thomas's neighbor, George, regularly uses Thomas's driveway to reach his garage. George has an easement over Thomas's driveway. Thomas's property is called
A
the dominant estate
B
an estate
C
a leasehold
D
the servient estate
Question 53 Explanation: 
The servient estate is the estate that is burdened by the easement.
Question 54
A shared driveway agreement will probably take the form of a(n)
A
voluntary lien
B
affidavit of entitlement
C
easement appurtenant
D
certificate of usage
Question 54 Explanation: 
An easement appurtenant will run with the land and go to future owners of the property.
Question 55
A party wall
A
is located only on a servient estate
B
faces a main road
C
straddles a boundary line
D
is owned by one party
Question 55 Explanation: 
A party wall is a shared wall between two adjacent parcels of land.
Question 56
The lien with first claim against real estate is
A
a mechanic's lien
B
whatever lien was first recorded
C
a first mortgage
D
the property tax
Question 56 Explanation: 
Property taxes and special assessments take priority over other liens and will be paid first.
Question 57
A house is sold for $190,000. It is then appraised for $185,000. If the bank is willing to lend an 80% LTV, how much of a down payment will the buyer be required to make?
A
$ 42,000
B
$ 37,000
C
$ 38,000
D
$ 40,000
Question 57 Explanation: 
The lender will base the value on the lower value between appraised value and sales price. 185,000 x 20% = $37,000
Question 58
If Sam Flanner buys a new home in the Lawrence County subdivision known as Sound Ridge, his land probably bears a legal description based on
A
the recorded plat
B
metes and bounds
C
the rectangular survey
D
the street address
Question 58 Explanation: 
A street address is not a legal description.
Question 59
What is the interest rate on a $10,000 loan with a $125 monthly interest?
A
2.5%
B
15%
C
7.5%
D
10%
Question 59 Explanation: 
$125 x 12 = $1500 interest per year $1500/$10,000 = 15%
Question 60
A house sells for $195,000. The total commission rate is 6%, of which the listing office receives 2.5% and the selling office 3.5%. Susan, the selling agent, receives a 60% split of the selling office commission. How much will she earn as commission?
A
$ 2,437.50
B
$ 11,700.00
C
$ 9,750.00
D
$ 4,095.00
Question 60 Explanation: 
$195,000 x 3.5% = $6825 x 60% = $4095
Question 61
A house in Queens sells for $600,000. How much are the State & City transfer taxes combined?
A
$ 2,400
B
$10,950
C
$ 9,600
D
$ 8,400
Question 61 Explanation: 
$600,000 x 1.425% = $8550 $600,000/500 = 1200 x $2 = $2400 $8550 + $2400 = $10,950
Question 62
A declaration before a notary public, providing evidence that a signature is genuine, is which of the following?
A
affidavit
B
acknowledgment
C
affirmation
D
estoppel
Question 62 Explanation: 
The purpose of an acknowledgment is to make sure the signature is genuine and of their own free will.
Question 63
A lease is considered to be
A
a freehold estate
B
fee simple
C
real property
D
personal property
Question 63 Explanation: 
The tenant does not have ownership in a lease. They only have the right to occupy the premises.
Question 64
A tenant's lease has expired. The tenant has not left or negotiated a renewal lease. The landlord does not want the tenant to remain. These circumstances have created which type of tenancy?
A
periodic estate
B
tenancy at will
C
estate for years
D
tenancy at sufferance
Question 64 Explanation: 
An estate at sufferance is when a tenant continues to occupy the premises after the lease rights have expired.
Question 65
Connie Smith fears that if the building is sold, a new landlord may not honor the year remaining on her apartment lease. The new owner
A
must abide by the terms of her original lease
B
would have to give her 90 days notice to move
C
must honor the lease but may charge double rent
D
can terminate her rental only if he intends to occupy the apartment himself
Question 65 Explanation: 
The sale will not terminate the lease.
Question 66
Jane Miller's apartment lease agreement states that it will expire on April 30, 2009. When must the landlord give notice that her tenancy is about to terminate?
A
January 31, 2006
B
No notice is required
C
February 31, 2006
D
April 1, 2009
Question 66 Explanation: 
The lease has a definite termination date. The type of lease is an estate for years and no notice is required.
Question 67
What will the tenant pay with a triple net lease?
A
real estate taxes, property insurance, CAM (common area maintenance)
B
rent only
C
rent plus a share of the business profits
D
rent plus any increase in property taxes
Question 67 Explanation: 
The tenant will pay maintenance fees, taxes, insurance, utilities and repairs.
Question 68
A ground lease is usually
A
terminated with 30 days notice
B
long term
C
based on percentages
D
a net lease
Question 68 Explanation: 
A ground lease is a long term lease of land on which the tenant usually owns the building.
Question 69
The landlord or the real estate agent must furnish a lead paint information booklet to all prospective buyers and tenants
A
within 100 days after the lease is signed
B
for residential buildings constructed before 1978
C
if the building is intended exclusively for those over 55
D
only if the building contains six or more units
Question 69 Explanation: 
Any residential construction prior to 1978 must provide the buyer or tenant with a lead paint disclosure pamphlet.
Question 70
Ms. Doran manufactures knitwear in a small rented building. In addition to monthly rent, she pays heat, electric, and property taxes on the building. She probably has a
A
periodic lease
B
net lease
C
percentage lease
D
security lease
Question 70 Explanation: 
The tenant will pay some or all of the expenses with a net lease.
Question 71
Mark Burns drives into a gas station and fills up his gas tank. He is obligated to pay for the fuel through which type of contract?
A
express
B
implied
C
oral
D
voidable
Question 71 Explanation: 
An implied contract is created by a persons actions.
Question 72
A contract is said to be bilateral when
A
there are two sellers and two buyers
B
one of the parties is a minor
C
all parties to the contract are bound to act
D
only one party to the agreement is bound to act
Question 72 Explanation: 
A bilateral contract contains two binding promises.
Question 73
Which of the following would have to be licensed as a real estate broker or salesperson to act in a real estate transaction on behalf of another for a fee?
A
attorney licensed in New York
B
executor of an estate
C
an auctioneer
D
referee acting under court order
Once you are finished, click the button below. Any items you have not completed will be marked incorrect. Get Results
There are 73 questions to complete.

Leaving the page and or closing the browser now or at any moment during the exam will reset your answers. You can always go back and retake any practice test. You can also go over your answers at any moment during the practice test by clicking “List” and picking one of the questions that interests you.