Multiple Answer Questions

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Example of Multiple Choice Test

  1. When performing brokerage duties seller's agent must:  a) limit their activities to activities that have been authorized by the seller.
  2. A listing contract must have: b) a statement that the duration of listing contract is negotiable.
  3. When the lender issues mortgage commitment in the sale of the property which of the following would not have happened? c) the lender has received funds on the borrower's behalf.
  4. An agreement of sale does not need which of the following to be valid? a) the zoning classification of a single-family dwelling.
  5. Discount points for the mortgage loan will most likely create a: c) lower overall costs to the borrower.
  6. If a cooperating broker negotiates the sale of 123 Main Street, the seller agent's offering 3% of the sales price to the cooperating body. Both a buyer's agent and a subagent claim to be selling broker. Which broker will ultimately receive the 3% fee from the seller's agent? b) the broker who goes to settlement.
  7. Mortgage is: a) a negotiable contract;
  8. Under which of the following agreements is a property often listed with several real-estate brokerage companies? a) an open listing.
  9. If the income-to-payment ratio indicates a maximum of $775 and debt-to-income ratio indicates a maximum of $ 1075, what is the maximum PITI for the buyer who brings $ 350 of existing monthly debt into the transaction? b) $725.
  10. What is the monthly payment on a $153, 000 mortgage payable over 30 years at 6.5 % interest rate? c) 966, 96.
  11. When commercial real estate is purchased today, the minimum period of time over which the owner can depreciate the improvement is: b) 27 ½ years.
  12. If a listing salesperson's commission is $2, 610, and the amount represents 30% of the employing broker's 6% commission what is the sales price of property? b) $145 000.
  13. When dealing with the consumers which of the following would not be anti-trust violation? c) differentiating your service from one of your competitor.
  14. Which of the following policies is not a violation of the Federal Fair Housing Law? a) refusing to rent to a person because they current user of illegal drugs.
  15. To purchase a property for $180, 000, the purchaser has insufficient income to qualify for a 30 years fixed rate mortgage loan. Which of the following would not help this buyer qualify? c) reduce the mortgage loan term.
  16. Which of the following is protected under the Pennsylvania Human Relations Act, but is not protected under the two (2) Federal civil rights laws? b) age 40 and over.
  17. A landlord wants your company to be a leasing agent for an apartment building, but indicates that they do not want any children in the building. What would you do? d) tell the owner that his or her request is illegal under federal and state civil rights laws. Offer to market the home to all financially qualified prospects. If the owner does not agree to these terms, reject the listing.
  18. A sales person takes a buyer-customer to another brokerage company's listing. This salesperson is: c) the agent of the listing broker.
  19. G P Realty's listing contract with a seller has expired. The seller did not accept G P Realty's offer to re-list the property. G P Realty now wants to show property to a buyer-client. Before showing the property what should be done? b) proceed with the showing. There is no conflict of interest that requires any action.
  20. You have first time homebuyer who is going to settle on the purchase of a $225, 000 home with a 95% loan at 7% interest. Two discount points are being charged to close the loan. What is the total dollar amount for the points charged? b) $4.275
  21. ABC Realty’s share of the commission would be? d) $5,794.62.
  22. The salesperson’s share of the commission would be: c) $6,277.51.
  23. The seller’s disclosure form must be delivered to the buyer of an existing single-family home: b) before the agreement of sale is signed
  24. The certificate of reasonable value is issued prior to the closing of what type of mortgage? a) VA.
  25. Which of the following is not a consumer benefit derived from Regulation Z (TILA): c) the borrower will better understand the adjustable mortgages rates.
  26. Mortgage servicing does not include: d) collecting monthly payment.
  27. Which of the following is not a benefit of the secondary mortgage market? d) it promotes convenient, consistent services to consumers on a national level.  
  28. For an investor, it is generally true that the least risk is in: b) vacant land.
  29. The Federal Reserve System: c) is charged with maintaining sound credit conditions.
  30. Discount points serve as discount to: a) the borrower.
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