National Exam Review Flashcards

A comprehensive set of flashcards representing key concepts and terms covered in the national exam review material to help with studying.

80.0

What was the passing score for the National Exam (Pearson Vue)?

What is the total number of questions on the National Exam?

80

How many questions were answered correctly by the student?

57

What topic had the lowest score in the National Exam results?

Forms of Ownership, Transfer, and Recording of Title (50.0%)

In breach of contract, what does accepting incomplete work represent?

Accepting partial performance.

What type of interest does a school have when given land with usage conditions?

Fee simple determinable.

Which statement indicates the unauthorized practice of law by a licensee?

Licensees should not interpret property ownership decisions.

What approach does the income approach to value rely on for properties with five or more units?

Gross income multiplier.

How can agency be legally terminated?

Principal broker becomes incapacitated.

How much is paid in points on a $160,000 home with a 25% down payment when the bank charges two points?

$2,400.

What should licensees be concerned about regarding the Federal Trade Commission?

Misleading ads.

How does an increase in retirees affect the demand for large single-family homes?

Negatively impacts demand.

What type of loan has a minimum down payment of 3.5% and requires MIP?

FHA loan.

Which covenant protects a homeowner from claims by previous owners?

Covenant of warranty.

When does a contract for the sale of real estate change from executory to executed?

When the deed is delivered and accepted.

What is the relationship of Sam to the licensee who has an agency agreement with him?

Client.

What term describes the government's ability to take private land for public use?

Eminent domain.

What happens to an earnest money check after an offer is accepted?

Held in a trust account by an escrow agent until the agreement's terms are satisfied.

What process involves using sales comparisons that are 5 and 15 years old in appraisal?

Bracketing.

What is the principal balance after applying the first mortgage payment to a $250,000 loan?

$249,103.12.

How should a market analysis suggested list price range be derived from comparables?

Give more weight to the comparable closest to the subject property.

What act prohibits certain electronic communications?

CAN-SPAM.

What best describes the Annual Percentage Rate (APR)?

A standardized measure for interest rates and loan costs.

Which act provides remedies for victims of housing discrimination?

Fair Housing Amendments Act of 1988.

What is the financing amount for a $400,000 property with an 80% LTV ratio?

$320,000.

When does a listing agreement with a client typically expire?

After the agreed-upon time frame, such as six months.

What is true regarding installment sales contracts?

The seller retains legal title until the loan is paid off.

In a transaction without agency relationships, who are the principals?

John.

What are the annual taxes for an assessed value of $172,000 at a tax rate of .55%?

$946.

What type of rental agreement allows a tenant to terminate anytime?

Estate at will.

Which statement is true about zoning classifications?

A home business would be considered an accessory use.

Which type of debt is prioritized during foreclosure?

Property taxes.

What type of environmental assessment is often needed for commercial property purchases?

Environmental site assessment.

What would NOT cause a property tax increase for Ken and Becky?

Neighbors complaining to the county about higher taxes.

What are annual property taxes for an assessed value of $160,000 at a 2.5% tax rate?

$4,000.

What is the supervisory broker's liability for an independent contractor's actions?

Responsible and can be disciplined based on the licensee's actions.

What are the Clean Water Act and Clean Air Act types of regulations?

Federal.

What is true concerning a broker's liability regarding discriminatory clients?

The brokerage isn't liable for a client's actions.

What federal law requires reasonable accommodations for disabilities in housing?

Fair Housing Act.

What does the metes and bounds system rely on for property descriptions?

Compass headings and directions.

What is the role of bulk zoning in urban planning?

To limit building density.

What should a buyer representation agreement guarantee for the buyer?

Compensation for the broker.

What is the mortgage value in a potential foreclosure sale?

Value a lender believes the property will bring.

What is a counter-offer used for in real estate transactions?

To reject and suggest different terms for an offer.

Which act was violated by the Arbor Heights community regarding zoning?

Fair Housing Act.

When does a listing agreement expire?

At the end of the specified term.

What represents a seller financing part of the purchase price?

A land contract.

Which authority would be blamed if a community isn't growing orderly?

Planning board.

What term refers to the creator of a trust?

Trustor.

What process involves a bank seizing a property after payment failures?

Foreclosure.

What defines a legally competent party in a contract?

Someone with legal and mental capacity.

In which agreement is there likely to be no penalty for terminating?

The client and agent mutually agree.

What economic principle increases property value when parcels are joined?

Plottage.

What type of loan is not federally insured?

Conventional.

Who exemplifies sub-agency in a real estate transaction?

Maurice bringing a buyer to the seller's agent.

What principle states current property value is impacted by future benefits?

Anticipation.

What does a listing agent not need to disclose?

A kitchen cabinet installed at a slight angle.

What type of mortgage combines property taxes and insurance into one payment?

Budget mortgage.

What must a licensee disclose if offered additional payment by third parties?

Must disclose to the client.

What type of easement is created through continuous use without permission?

Easement by prescription.

What are buyers testing water and paint for?

Lead.

What type of easement grants rights to a particular company?

Easement in gross.

What is the definition of a void contract?

One that is impossible to legally enforce.

What entity enforces neighborhood covenant restrictions?

Homeowners' association.

What happens when there are more sellers than buyers in a real estate market?

Tends to decrease property values.

What should be included in an additional provision in a real estate offer?

Non-standard terms of the offer.

Who must water damage disclosure be communicated to?

All parties to the transaction.

How is bracketing defined in property appraisal?

Determining a range of values through comparables.

What happens if Renee's listing agreement expired?

She can list with another broker.

What is the measurement term for property boundaries?

Bearing.

Why inquire about county tax assessment schedules?

To anticipate potential changes in property taxes.

Which property requires a lead disclosure?

Single-family home built before 1978.

What is the calculated loss due to depreciation for a property based on GRM?

$26,460.

What was the purchase price of the condo with provided financial details?

$265,000.

How much equity does Gabi have in her home after renovations?

$105,000.

What should be done concerning harassment complaints?

Kept confidential.

How much is applied to principal from a loan payment after interest?

$896.88.