Practice test

Real Estate Practice Exam 2

Real Estate practice exam 2, Foundations tier: 25 questions on co-ownership, contract elements, fair housing, and FHA loans, with explanations.

These questions are for study practice only and are not official exam questions.

Question 1

When two or more people own property with the right of survivorship, so that a deceased owner's share passes to the surviving owners, they hold title as:

Question 2

Ownership of real property by one person or entity alone is called ownership in:

Question 3

Which of the following is NOT one of the essential elements of a valid contract?

Question 4

An offer that is accepted exactly as presented, with no changes, results in:

Question 5

The document that is the borrower's personal promise to repay the debt is the:

Question 6

Private mortgage insurance (PMI) on a conventional loan is generally required when the down payment is less than:

Question 7

Items permanently attached to real property, such as built-in cabinets or a furnace, are considered:

Question 8

Which test is most commonly used to determine whether an item is a fixture?

Question 9

A seller's disclosure statement typically requires the seller to reveal:

Question 10

RESPA (the Real Estate Settlement Procedures Act) primarily regulates:

Question 11

FHA loans are insured by the:

Question 12

In a loan amortization schedule, during the early years of the loan, the largest portion of each payment goes toward:

Question 13

Which of the following classes is NOT protected under the federal Fair Housing Act?

Question 14

Refusing to make a mortgage loan in a particular neighborhood based on its racial composition is the illegal practice known as:

Question 15

When a real estate agent represents both the buyer and the seller in the same transaction, this is called:

Question 16

The act of exaggerating a property's benefits as a matter of opinion, such as calling a view 'the best in town,' is known as:

Question 17

A conventional loan is BEST defined as a loan that is:

Question 18

Which valuation approach is most appropriate for appraising a single-family home in an active residential market?

Question 19

Local laws that divide a community into districts and regulate how land may be used are known as:

Question 20

A property that no longer conforms to current zoning but is allowed to continue because it existed before the new ordinance is a:

Question 21

A buyer agency agreement is a contract between the:

Question 22

If a buyer fails to perform under a purchase contract without legal excuse, the buyer is said to be in:

Question 23

An escrow (or impound) account in a mortgage is used to collect and pay the borrower's:

Question 24

At closing, the buyer typically reimburses the seller for property taxes the seller prepaid beyond the closing date through a process called:

Question 25

A general warranty deed provides the GREATEST protection to the buyer because the grantor warrants against title defects:

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