Free Real Estate Practice Test (20 Questions) | ExamsLib

Question 1

An easement appurtenant benefits:

Accepted Answer

A neighboring parcel of land and passes with the title to that land

Answer

A specific person regardless of land ownership

Answer

The government for eminent domain purposes

Answer

The public at large for utility line access

Question 2

Under RESPA, which of the following is specifically prohibited?

Accepted Answer

Requiring buyers to use a specific title company affiliated with the lender without disclosure

Answer

Charging a loan origination fee

Answer

Collecting funds for an escrow impound account

Answer

Issuing a Loan Estimate within three business days of application

Question 3

Loan-to-value ratio (LTV) is calculated as:

Accepted Answer

Loan amount divided by the appraised value of the property

Answer

Appraised value divided by the loan amount

Answer

Down payment divided by the sales price

Answer

Monthly payment divided by the borrower's gross income

Question 4

Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?

Accepted Answer

The Truth in Lending Act (TILA) / Regulation Z

Answer

RESPA

Answer

The Equal Credit Opportunity Act (ECOA)

Answer

The Home Mortgage Disclosure Act (HMDA)

Question 5

A buyer's agent is legally obligated to disclose to the buyer that a house they are considering is located in a flood zone. This is an example of the agent's duty of:

Accepted Answer

Disclosure

Answer

Loyalty

Answer

Obedience

Answer

Accounting

Question 6

An option contract gives the optionee the right but NOT the obligation to purchase a property. If the optionee decides not to exercise the option, what happens to the option consideration paid?

Accepted Answer

It is retained by the optionor regardless of whether the option is exercised

Answer

It is returned to the optionee in full

Answer

It is applied toward the purchase price if a new offer is submitted

Answer

It is held in escrow until the option period expires, then split equally

Question 7

A buyer's gross monthly income is $8,000. The lender uses a maximum back-end (total debt-to-income) ratio of 43%. The buyer has existing monthly debt payments of $500. What is the maximum allowable monthly PITI payment?

Accepted Answer

$2,940

Answer

$3,440

Answer

$3,940

Answer

$4,500

Question 8

A property owner has the right to use her land, sell it, lease it, or give it away. Together, these rights are commonly called the:

Accepted Answer

Bundle of rights

Answer

Right of survivorship

Answer

Doctrine of prior appropriation

Answer

Right of eminent domain

Question 9

A life estate grants ownership rights that last for:

Accepted Answer

The duration of a measuring life, usually the life tenant's own life

Answer

A fixed term set by the state legislature

Answer

The lifetime of the property's lender

Answer

Twenty years, renewable at the owner's option

Question 10

Two siblings inherit a property and each holds an undivided interest with no right of survivorship. This form of co-ownership is called:

Accepted Answer

Tenancy in common

Answer

Joint tenancy

Answer

Tenancy by the entirety

Answer

Community property

Free Real Estate Practice Test

Question 1

An easement appurtenant benefits:

Question 2

Under RESPA, which of the following is specifically prohibited?

Question 3

Loan-to-value ratio (LTV) is calculated as:

Question 4

Which federal law requires lenders to disclose the Annual Percentage Rate (APR) to borrowers?

Question 5

A buyer's agent is legally obligated to disclose to the buyer that a house they are considering is located in a flood zone. This is an example of the agent's duty of:

Question 6

An option contract gives the optionee the right but NOT the obligation to purchase a property. If the optionee decides not to exercise the option, what happens to the option consideration paid?

Question 7

A buyer's gross monthly income is $8,000. The lender uses a maximum back-end (total debt-to-income) ratio of 43%. The buyer has existing monthly debt payments of $500. What is the maximum allowable monthly PITI payment?

Question 8

A property owner has the right to use her land, sell it, lease it, or give it away. Together, these rights are commonly called the:

Question 9

A life estate grants ownership rights that last for:

Question 10

Two siblings inherit a property and each holds an undivided interest with no right of survivorship. This form of co-ownership is called:

Question 11

An agent discovers that a home has a leaking underground storage tank on the property. The seller has not disclosed this. What should the agent do?

Question 12

A buyer purchases a home for $250,000 and makes a $50,000 down payment. The lender charges 2 discount points. How much does the buyer pay in points?

Question 13

A seller agrees to finance the buyer's purchase by accepting monthly payments instead of a lump sum from a lender. This arrangement is called a:

Question 14

A dual agent represents both the buyer and the seller in the same transaction. Which of the following BEST describes the agent's situation?

Question 15

Which clause in a purchase contract allows a buyer to withdraw without penalty if they cannot obtain financing at specified terms?

Question 16

Question 17

A borrower has a $400,000 loan at 7.5% annual interest. What is the interest for the first month, and what portion of a $2,797 monthly payment reduces principal?

Question 18

A deed transfers title from the grantor to the grantee. Which of the following must a valid deed contain?

Question 19

The government's right to take private property for public use with just compensation is called:

Question 20

A developer's property is subject to a deed restriction prohibiting commercial use. The government later zones the area commercial. Which control takes precedence?