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Broker Test

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A Subordination Agreement is signed by a senior lienholder, willing to subordinate lien priority to a new lender.

The refinance lender would not normally be concerned with losing lien priority to this lender. Per the test question, there is already language in the recorded HELOC mortgage stating that the lender consents to remaining in junior position if the senior mortgage were ever refinanced.

There is no "Seniority Preservation Agreement. It will help you identify those instances where the examiners are trying to trick you with made-up terms and expressions.

Multiply the investment , by. Lenders usually require borrowers to pay the interest that accrues from the date of settlement to the end of the month.

In the majority of loan agreements, the first monthly payment is due on the first day of the second month after the close of escrow. For instance, if close of escrow takes place on June 10, it is likely that the first loan payment will be due on August 1.

This means that the borrower's closing costs will include interest on the loan from June 10 through June Since interest is paid monthly and in arrears, the interest for July 1 through July 31 is paid with the August 1 payment.

The buyer usually pays the fees for recordation of the note and deed of trust or mortgage, although this is a negotiation point of the transaction.

In a strong buyer's market, sellers might be willing to pay this fee. However, in the absence of an agreement otherwise, the buyer is required to pay this fee as a condition of the loan.

Prev Next Finish. Quality starts with Our practice exam writers:. Written by: Karen Bohler Real Estate Broker and Instructor Karen is a licensed real estate broker and certified real estate instructor.

She has worked in real estate sales for over 20 years. She teaches real estate sales and contract law for a real estate sales education company that specializes in the licensing of real estate sales agents and brokers across the country.

Karen designs curriculum and other educational materials for real estate sales training courses, licensing exam preparation and continuing education providers.

She earned her juris doctorate degree from Taft Law School. Bookmark Page. General Operation of a Real Estate Brokerage. With regard to the general operation of a real estate brokerage, which of the following activities of ABC Brokerage, Inc.

Statement 1. Statement 2. Statement 3. Statements 1 and 2. A real estate broker should educate clients to protect the client's best interests and ensure a knowledgeable negotiating position.

However, client education involves a certain amount of risk, because whatever information the broker or salesperson in the firm conveys must be accurate and reliable.

Agents should refrain from educating clients about matters beyond their scope of authority. If a client makes a harmful decision because the agent did not provide the client with the appropriate information, the client might have grounds for a negligence charge.

Depending on the market, the client's negotiating position may be more powerful if the client "treads lightly" with regard to contractual demands.

Agents should avoid discovery of facts, because the more facts an agent knows, the more facts the agent must disclose to the client; and the agent runs the risk of conveying inaccurate information.

Consider why a brokerage experiences financial difficulty even in prosperous times. One of the main reasons financial difficulty for a brokerage occurs is that the broker fails to stay abreast of the economic climate and direction of the real estate market.

With regard to financial planning for a real estate brokerage, which of the following statements is are TRUE? Statement 1: Even in prosperous times, the economic climate changes daily.

Brokerages need to plan expenditures based on factual assessment of the economic climate. Statement 2: The competitors may reduce commission levels, and thus to compete, a brokerage may need to reduce commission levels within the firm.

Statement 3: Advertising is vital to the success of a brokerage. A broker should take advantage of all products designed to promote real estate sales.

Statement 1 only. Statement 2 only. Statements 1 and 2 only. Statements 1, 2 and 3. Agency Concepts and Managerial Duties.

Legally, what is the nature of agency relationships between listing brokers and sellers? General agency. Specific agency. Universal agency.

Limited power of attorney. A legally-competent, wealthy investor is selling a large commercial property. The year-old investor is represented by a one of the busiest, most successful brokerage firms in the state.

The closing date for the transaction coincides with an important overseas business trip the investor cannot postpone or cancel.

Prior to leaving on the business trip, the investor executes a document authorizing a trusted friend to sign all documents related to the sale of the commercial property.

After accepting the appointment, the investor's friend owes fiduciary duties to the investor. Of the following choices, what is the name of the document executed by the investor?

Listing Agreement. Purchase and Sale Agreement. Power of Attorney. Conservatorship or guardianship.

Contracts and Contract Law. Which of the following lists the essential elements of an enforceable real estate contract?

A listing agreement did not include an authorization to accept a deposit. Which of the following is correct? The authorization is implied.

The broker cannot accept the deposit. None of the above. Real Property Characteristics. Which of the following is considered personal property?

Physical improvements. Growing trees. A deed. Homeowner Howard's home was foreclosed. Understandably, Howard was quite upset, and just before he was ordered to vacate the home, he removed all of the plumbing fixtures, lighting fixtures and built-in appliances from the home.

When Howard's lender listed the property for sale, the listing agent realized that the fixtures had been removed.

What is the act of removing the fixtures from the home called? Water Law. Which of the following correctly defines the doctrine of prior appropriation?

The person or entity who pays the highest price for the use of the water source is granted the use rights to the water in the source. The right to use river water adjacent to one's property.

The rights to free use of all lake water. Freehold Estates. The lessee of an apartment and the owner of a condominium have many things in common.

Which of the following is true for both? They each hold a fee simple interest. They each hold an estate in real property.

They each hold a less than freehold estate. They each hold an estate of inheritance. Fee simple absolute. Fee simple defeasible.

Determinable fee. Life estate measured by the duration of their ownership. Holding and Transferring Title. The deed specified as grantees simply as "Amanda Smith, Beatrice Smith, and Constance Smith" but did not specify the tenancy created.

Environmental Law. A real estate licensee has out-of-town relatives come to visit. He shows them several listings, but they simply are not interested in purchasing any of the listings he shows them.

Finally, after several long days of viewing listings, the licensee writes up a lease proposal with an option to purchase.

All of the above. When an environmental hazard such as mold exists on a subject property, a typical remedy to cure the defect is abatement of the defect.

Abatement is the elimination of the nuisance by the party that is offended or injured by the nuisance. Abatement is the elimination of the nuisance through a court proceeding whereby the party who caused the nuisance must arrange and pay for the cleanup.

Abatement is the removal of a nuisance through an environmentally friendly process, and special court orders must be issued before abatement can ensue.

Abatement is the removal of a nuisance with a proviso that the removal must not cause damage to the property or disturb the peace.

Land Descriptions. Which of the following is the method of legal description that uses carefully measured distances, angles and directions to define the boundaries of a parcel of real estate?

Which of the following correctly defines the term "baseline"? A line of latitude running horizontally that is the starting point of latitude for all sectioned land within a given survey area.

The north-south line that runs through the initial point of a survey area and is situated on a true longitudinal meridian.

A row of townships extending east and west. A strip of land six miles wide running North and South. Development and Construction.

Which model of city planning and development is defined by a central business district is in the middle of the model, with the city expanding in rings with different land uses?

Which model of land development is based on the theory that even though a city may have begun with a central business district CBD , other smaller CBDs develop on the outskirts of the city near the more valuable housing areas to allow shorter commutes from the outskirts of the city?

Housing Plus, Inc. The company primarily assists those owners of dwellings in existing subdivisions that are sufficiently spacious to qualify for the addition of an ADU.

Home owners typically add an ADU for the enhanced rental potential the units add to residential real estate. But Housing Plus, Inc.

Which of the following describes the work of Housing Plus, Inc.? Acceda a todas nuestras plataformas y herramientas para obtener la experiencia completa de una cuenta IBKR.

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Once equipped with a high-level understanding of your performance, you can study for your real estate license exams more effectively, saving you time and building your confidence.

After you've completed your free practice test, you'll already have a head-start on your path to real estate success! Once your practice test is complete, we'll recommend comprehensive real estate study guides , video courses and multiple in-depth practice exams designed specifically for your salesperson or broker real estate license test that you can access with a Study.

Our full practice tests align with the content you'll encounter on your exam, and they'll help you get comfortable with the real estate license exam style and question format.

That way, you won't encounter any surprises on test day! Our real estate courses offer bite-sized and entertaining lessons that cover all the required concepts for your real estate license exam.

Each lesson is taught by an expert instructor and includes short quizzes to help you focus on improving your mastery. You can even structure your study time and stay on track with a customized study schedule that reminds you when and what to study.

We also provide in-depth real estate license exam resources to help you understand the ins-and-outs of getting your real estate license, such as the real estate license exam registration method, real estate license exam passing scores, available real estate license test dates and more.

With these resources, study guides and practice tests, you'll have all the preparation you need for test day. To get started, simply pick a real estate license exam and take one of our no-risk question practice tests completely free of charge.

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