Which of these is responsible for administering the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?

A.	The EPA
B.	Fannie Mae
C.	HUD
D.	The Federal Reserve

Which of these is the byproduct of fuel combustion that may result in death if such combustion equipment is not properly vented.

A.	Carbon monoxide
B.	Radon
C.	Lead
D.	Oxygen

Which of these has been proven to pose a health hazard?

A.	Asbestos
B.	Lead-based paint
C.	Radon
D.	All of the above

A plat map is BEST described as

A.	a detailed map that illustrates landscape preferences
B.	a detailed map that illustrates the geographic boundaries of individual lots.
C.	a detailed map that illustrates where a variance might be allowed
D.	none of the above

All of these are roles of the Federal Reserve System EXCEPT

A.	help conteract inflationary trends
B.	make direct loans to buyers
C.	create a favorable economic climate
D.	maintain sound credit conditions

QUESTION 48

A package loan includes

A.	multiple parcels or lots
B.	real and personal property
C.	private mortgage insurance
D.	cash for the construction of improvements on real estate

A man goes all over the country buying large tracts of vacant land, splitting them into smaller parcels, and building identical communities of single-family homes surrounding a central shopping center. He sells the homes to residents and leases space in the shopping center to merchants. The man is

A.	an assembler
B.	both a developer and a subdivider
C.	a subdivider only
D.	a developer only

QUESTION 38

What is a BENEFIT of investing in real estate?

A.	Lack of short term liquidity
B.	Tax credits for certain projects
C.	Investment of large amounts of capital
D.	Need for active management

Asbestos is most harmful when it is disturbed or exposed

True

False

QUESTION 11

Real estate refers to

A.	land and structures attached to it.
B.	legal benefits, interests or rights inherent in the ownership of real estate.
C.	movable property.
D.	land, but not structures attached to it.

QUESTION 9

Amortization is the

A.	practice of charging interest on a loan
B.	process of gradually retiring a debt by periodic payments
C.	compounding of interest
D.	use of debt to enhance the rate of return

2 points

QUESTION 10

The Real Estate Settlement Procedures Act (RESPA) prohibits all of the following except

A.	kickbacks paid to brokers.
B.	referral fees paid to brokers.
C.	mandatory use of a title insurance company.
D.	disclosure of closing costs prior to the closing.

Use the following table to answer the next three questions:

	Annual Net Income	Annual Gross Income	Selling Price
Property 1	82,000	122,000	1,250,600
Property 2	75,000	111,500	1,145,300
Property 3	145,000	175,000	1,433,600
Subject	60,000	108,000	?

If properties are residential properties, what is the Gross Income Multiplier for Property 2?

A.	12.1
B.	10.27
C.	15.27
D.	9.7

QUESTION 8

Using the cap rate of Property 3, what selling price should be set for the Subject property?

A.	$1,092,012
B.	987,098
C.	875,003
D.	$606,673