1) a convivence store is currently for sale. The convenience store was formally a video store and before that an auto repair store. What should an agent recommend to a potential purchaser of this property?

A) make sure the purchaser checks to see if the property is listed on the 407 list

B) review the property disclosure statement before purchasing

C) include an environmental inspection as part of the offer

D) include a contract clause whereby the earnest money is refundable if the purchaser does not qualify for the loan

2) In a market analysis where a selling price is being sought, which of the following factors would be the most important?

A) architectural design

B) age of the improvements

C) location

D) size of lot

3) external obsolescence would most likely be caused by:

A) wear and tear

B) zoning changes

C) poor architectural design

D) termite damage

4) An 8 unit apartment complex rented units for $900 a month. Last year the complex experienced a 5% vacancy rate. This year the apartment manager has not had any problems collecting rent. The complex also made $12,000 in laundry revenue and $400 in newspaper revenue. What would be the effective gross income for this property?

A) 98,800

B) 82,080

C) 94, 480

D) 86,700

5) an agent is showing a buyer a property in which that garage appears to be extending over the property line. A buyer asks the agent if this will be a problem. The agents immediate thought is no. Which would be the best way for the agent to answer the question?

A) a defeasance clause in the contract would take care of this problem

B) a survey should answer your problem

C) the garage is close, but it appears it does not extend over the property line

D) dont worry about the garage as you wont have to pay taxes on it anyway.

6) which of the following would be most prominent in determining rents for an apartment complex?

A) the inverse relationship between the number of units and the rent amount

B) the local tax code in that particular district

C) the local supply and demand of real estate in that area

D) the total number of units

7) Two properties were taxed at a mill rate of 75. The tax paid on property A was $2,400 and the tax paid on property B was $1,800. What were the two values for these two properties?

A) Property A - $32,000 Property B- $24,000

B) Property A- $41,000 Property B- $33,000

C) Property A- $38,000 Property B- $30,000

D) Property A- $35,000 Property B- $27,000