Practice Test Questions

 

A. Which of the following interests in property is held by a person who is granted a lifetime use of a property that will be transferred to a third party upon the death of the lifetime user?

1. A life estate.

2. A remainder estate.

3. An estate for years.

4. A reversionary estate.

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B. Which of the following statements BEST identifies the meaning of the term, “rescission of a contract”?

1. A ratification of a contract by all parties.

2. A return of all parties to their condition before the contract was executed.

3. A transfer or assignment of a particular responsibility from one of the parties to another.

4. A review of the contract by the legal counsel of either party that may result in a cancellation without penalty or further obligation.

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C. Which of the following clauses in a mortgage allows the lender to demand loan repayment if a borrower sells the property?

1. Defeasance

2. Prepayment

3. Acceleration

4. Alienation

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D. How much cash MUST a buyer furnish in addition to a $2,500 deposit if the lending institution grants a 90% loan on an $80,000 property?

1. $5,500.

2. $6,975.

3. $7,450.

4. None of the above.

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E. Which of the following single-family residences would get the MOST accurate appraisal by applying the reproduction cost approach to value?

1. A rental property.

2. A vacant property.

3. A new property.

4. An historic property.

 

Answers to Sample Salesperson Questions: A: 1; B: 2; C: 4; D: 1; E: 4