Real Estate Final Exam

CAREFULLY READ AND ANSWER THE FOLLOWING QUESTIONS:

QUESTION 1

Residential sales contracts should contain a number of important points in order to avoid disagreement before the closing. All of the following are important points that should not be omitted in a contract except:

1. The date of the contract.
2. The date and place of closing.
3. The number of children that are going to live in the house.
4. The marital status of the parties purchasing the house.

QUESTION 2

If you are thebuyerof a piece of property, what would be the best kind of deed to request of the seller in your Offer?

1. General Warranty Deed
2. Quitclaim Deed
3. Trustee's Deed
4. Deed of Bargain and Sale

QUESTION 3

Thereare three "land descriptions" that are recognized as reliably clear for use in legal documents. Which of the following descriptions is not recognized as reliable?

1. Metes and Bounds
2. Subdivision Plat Lot and Block Number
3. Government Rectangular Survey
4. Topographical Map

QUESTION 4

A neighborhood in a city with streets, gutters, lots, coves, houses, and parks would be described with the following land description:

1. Subdivision Plat and Block Number
2. Metes and Bounds
3. Geological Survey
4. Government rectangular survey

QUESTION 5

Research necessary for determining the correct market for a real estate development centers on data revolving around population, the income of households, etc.... One place to find this data is on what website?

1. All The Numbers
2. Census.gov
3. Arkansas Fair Housing Commission
4. Arkansas Real Estate Commission

QUESTION 6

Which of the following items might be found on the Agenda of the Little Rock Planning and Zoning Commission?

1. A homeowner requests a waiver for a taller fence than the City Ordinance allows for residential.
2. A mixed-use development proposal in a "residential only" subdivision.
3. A developer is requesting a change in zoning to allow storage units to be built on a piece of land that is currently zoned for multi-family.
4. All of the above.

QUESTION 7

Which of the following would be considered a "fixture" in a residential home?

1. The kitchen cabinets attached to the wall.
2. A stand alone refrigerator.
3. The washer and dryer set.
4. The living room lamps.

QUESTION 8

The Jones Family has their home listed for sale with Agent Smart. Agent Smart is the

1. Buyer's Agent
2. Seller's Agent
3. Property Manager
4. Closing Agent

QUESTION 9

All licensed real estate agents in Arkansas

1. must adhere to the regulations set by the National Real Estate Commission.
2. are Realtors.
3. must adhere to the regulations set by the Arkansas Real Estate Commission.
4. must re-apply each year to maintain a license.

QUESTION 10

The Truth in Lending Act is implemented by Regulation Z which is enforced by the

1. Fair Housing Commission.
2. Arkansas Realtors Association.
3. Consumer Financial Protection Bureau (CFPB).
4. Housing and Urban Department.

QUESTION 11

The Dodd-Frank Act of 2010 is under the umbrella of an oversite agency called the

1. Consumer Financial Protection Bureau (CFPB).
2. Consumer and Federal Commission (CFC).
3. Department of Finance and Oversite (DFO).
4. Real Estate Commission (REC).

QUESTION 12

In Arkansas,the landlord or manager retains the right to enter the property at"reasonable times" toinspect it or make repairs except

1. he may enter any time relatives say they need inside to find groceries.
2. he may enter any time the dog needs to be walked.
3. he may enter any time there looks like an Amazon package might need to be delivered.
4. he may enter any time in case of an emergency which wouldendanger property or people.

QUESTION 13

A title search on your home and land identifies a utility easement that was not in the survey when you purchased the property.What instrument would cover the oversite?

1. lien coverage
2. utility easement
3. title insurance
4. life estate

QUESTION 14

Mineral rights can be separated from land ownership when a property is sold.Examples of mineral rights are all of the following except:

1. air
2. gas
3. oil
4. coal

QUESTION 15

Certain items must appear in a lease that do not require negotiation between the owner and tenant. All of the following are examples of these items except:

1. 1he names of the landlord and tenant.
2. A description of the plants and trees to be maintained on the property.
3. The start and end dates of the agreement.
4. An adequate description of the leased premises.

QUESTION 16

The primary advantage of a longer lease is that it provides:

1. more stability for both the tenant and the landlord/owner.
2. a delay in the re-leasing costs faced by tenants and landlord/owners when the property is vacated.
3. Both 1 and 2.
4. Neither 1 or 2.

QUESTION 17

Your rent is increased by $2.50 per square foot each year.This is an example of a/an

1. triple net lease.
2. a single net lease.
3. double net lease.
4. escalation clause.

QUESTION 18

The Smalls called a real estate agent to list and sell their property. The agent helped them decide on a sales price. One way in which an agent may do this is by

1. calculating how much the agent wants to receive as a commission.
2. researching similar house sales in the neighborhood.
3. looking at all the defects of the house and guessing at what the cost would be to fix them.
4. none of the above.

QUESTION 19

The sales price of a house is $300,000.There is a 6% commission due to the listing broker.How much will the listing broker make on the sale?

1. $9,000
2. $18,000
3. $6,000
4. $30,000

QUESTION 20

The settlement statement lists all costs associated with a real estate closing.The Lender's Origination Fee is calculated based on the amount of the

1. appraisal.
2. the loan.
3. the sales price.
4. the property taxes.

QUESTION 21

The acronym NIMBY stands for

1. never in many big yards.
2. not in my backyard.
3. no intervals maintaining big yard maintenance.
4. yes in my backyard.

QUESTION 22

A Market-Defining Story should ask several questions. All of the following are examples of these questions except:

1. What is the product?
2. Who are the customers?
3. What is the competition?
4. How many children will be present?

QUESTION 23

Which appraisal method would typically be used to appraise a single family home in a subdivision?

1. Sales Comparison Approach
2. Income Approach
3. Cost Approach
4. None of the above

QUESTION 24

Which appraisal approach would most like be used to value a retail strip center?

1. Sales Comparison Approach
2. Income Approach
3. Cost Approach
4. None of the above.

QUESTION 25

Which appraisal approach would most like be used to value a church or university building?

1. Cost Approach.
2. Income Approach
3. Sales Comparison Approach.
4. None of the above.