QCM : Real Estate Licensing Fundamentals — 20 questions

Questions et réponses du QCM

1. What is the main purpose of the pre-test and post-test in the exam prep course?

To assign a final grade based only on the first score obtained
To determine whether a student can skip the course after one attempt
To measure readiness, with the post-test serving as the closest predictor of passing the licensing exam
To replace the lectures by covering all content in written form

To measure readiness, with the post-test serving as the closest predictor of passing the licensing exam

Explication

The pre-test and post-test are practice tests used to measure readiness, and the post-test is described as the closest predictor of passing the licensing exam. The first test is not a final grade or a way to skip the course.

2. If a student scores below 80% on the pre-test, what should happen next?

Stop studying because the score shows adequate mastery
Ignore the chart and begin the next topic at random
Move directly to the post-test without any review
Focus on weak areas, review missed items, and retest

Focus on weak areas, review missed items, and retest

Explication

A pre-test below 80% means more review and retesting are needed, especially using the strength-and-weakness chart and the missed questions. The course guidance specifically says to start with the weakest topic and keep retesting missed items.

3. Which duty is part of the common-law agency responsibilities remembered by OLD CAR?

Payment of the buyer’s closing costs
Obedience to the principal’s lawful instructions
Unlimited sharing of the principal’s motivation
Disclosure of the agent’s personal opinions only

Obedience to the principal’s lawful instructions

Explication

OLD CAR includes obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care and skill. Sharing the principal’s motivation is wrong because price, terms, and motivation must be kept confidential.

4. What is required when one agent represents both the buyer and the seller in the same transaction?

Approval after closing by the lender
Written consent from both parties
No disclosure if both parties know the agent
Oral approval from the broker only

Written consent from both parties

Explication

Dual agency requires written consent from both parties. The disclosure must also state the source of any expected broker compensation.

5. What happens to earnest money when a buyer properly terminates a purchase contract under a financing contingency?

It is forfeited to the seller as liquidated damages
It becomes the lender’s fee
It is returned to the buyer
It is automatically paid to the broker

It is returned to the buyer

Explication

If the buyer terminates under a stated contingency, the earnest money is returned. The material also notes that brokers are not paid when the contract ends by contingency.

6. How does an option contract change when the buyer exercises the option?

It remains unilateral for the entire agreement
It turns into a lease agreement
It becomes void because the option expires immediately
It becomes bilateral after the option is exercised

It becomes bilateral after the option is exercised

Explication

An option contract begins as a unilateral contract and becomes bilateral when the buyer exercises the option. That exercise creates mutual obligations.

7. What is the key method used in a competitive market analysis?

Adding annual rent to operating expenses
Using only the property’s original purchase price
Estimating value by comparing similar sales and adjusting for differences
Multiplying net operating income by vacancy rate

Estimating value by comparing similar sales and adjusting for differences

Explication

A CMA estimates market value by comparing similar sales and adjusting for differences. It is a comparative pricing method, not an income method.

8. How is net operating income calculated for capitalization analysis?

Operating expenses plus capitalization rate
Market value minus rent and taxes
Potential annual gross income minus bad debt and vacancy
Effective gross income minus operating expenses

Effective gross income minus operating expenses

Explication

Net operating income is effective gross income minus operating expenses. The material also explains that effective gross income starts with potential annual gross income and subtracts vacancy and bad debt.

9. Which statement best describes a quiet title action?

A legal proceeding used to resolve title problems identified in a title report or abstract
A method for setting property value from comparable sales
A deed that transfers ownership without warranties
A lender notice that explains settlement costs

A legal proceeding used to resolve title problems identified in a title report or abstract

Explication

A quiet title action is used to resolve title problems found in the title report or abstract. It is a legal remedy for clearing title issues.

10. What is the purpose of a mortgagee’s title insurance policy?

To guarantee that no title defects will ever exist
To protect the lender by providing title coverage to the lender
To remove the need for a deed at closing
To protect the buyer and heirs while they own the property

To protect the lender by providing title coverage to the lender

Explication

A mortgagee’s title policy protects the lender. By contrast, an owner’s policy protects the buyer and heirs while they retain an ownership interest.

11. Which item is most likely to be treated as a fixture rather than personal property?

A freestanding dining table that can be moved easily
A framed mirror resting on a shelf
A built-in wall oven attached to the kitchen cabinetry
A portable lamp plugged into an outlet

A built-in wall oven attached to the kitchen cabinetry

Explication

A fixture is an item attached to the real property in a way that indicates it is meant to remain with the property. A movable table or lamp is personal property, not a fixture.

12. Which property interest is held by a tenant who has the right to possess and use real property for a lease term?

A leasehold estate
A fee simple estate
A life estate
A remainder interest

A leasehold estate

Explication

A leasehold estate is the tenant’s interest during the lease term. The other choices are forms of ownership or future interests rather than a tenant’s leasehold interest.

13. What type of land-use control is zoning?

A temporary rule that applies only during construction
A private restriction created by a homeowner association only
A public control exercised through police power
A lender-imposed limit on property use

A public control exercised through police power

Explication

Zoning is a public land-use control enforced through police power. Private land-use limits are restrictive covenants, not zoning.

14. Which condition must be disclosed when it affects a property?

The broker’s personal opinion of value
The buyer’s financing terms
A nearby flight path that impacts the property
The age of the seller’s furnishings

A nearby flight path that impacts the property

Explication

Environmental and special-use impacts such as flight paths, floodplains, and coastal preservation areas must be disclosed when they affect the property. The other choices are not required environmental disclosures.

15. Which lease structure requires the tenant to pay base rent plus a percentage of gross sales?

A gross lease
A percentage lease
A ground lease
A net lease

A percentage lease

Explication

A percentage lease combines base rent with a share of the tenant’s gross sales. A gross lease typically charges fixed rent and shifts most property expenses to the landlord.

16. In constructive eviction, what must the tenant generally do to preserve the remedy?

Remain in the property and stop paying rent
Move out because the conditions force departure
Assign the lease to a new tenant immediately
Ask for an automatic rent reduction only

Move out because the conditions force departure

Explication

Constructive eviction requires the tenant to leave the property because the landlord’s actions or conditions make continued occupancy unreasonable. Staying and withholding rent is not the proper response.

17. What is the primary purpose of a general warranty deed?

To provide the strongest title protection to the buyer
To create constructive notice through recording only
To disclose environmental hazards on the property
To transfer the grantor’s interest without any warranties

To provide the strongest title protection to the buyer

Explication

A general warranty deed gives the buyer the strongest protection because the grantor warrants title against claims. A quitclaim deed is the one that transfers whatever interest the grantor has without warranties.

18. What does recording a deed accomplish?

It replaces the need for a written deed
It guarantees that the title has no defects
It creates constructive notice to the public
It eliminates the need for delivery and acceptance

It creates constructive notice to the public

Explication

Recording creates constructive notice and helps establish priority. It does not replace the deed requirements or guarantee title quality.

19. How many square feet are in one acre?

640 square feet
4,356 square feet
64,000 square feet
43,560 square feet

43,560 square feet

Explication

One acre equals 43,560 square feet. The number 640 refers to acres in a section, not square feet in an acre.

20. In the government survey system, what is the area of one section?

160 acres
43,560 square feet
640 acres
1,280 acres

640 acres

Explication

A section contains 640 acres in the government survey system. A baseline is the east-west reference line, but it is not a unit of area.

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Exam prep course guidance — purpose?

Identify weak areas and measure readiness.

Agency relationship — principal?

Employs agent to act on their behalf.

Fair housing — protected classes?

FReSH CoRN and race (federally protected).

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