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hello everybody it's Zach here from real estate license wizard.com are you looking to Ace your real estate exam and become a licensed real estate agent look
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no further our practice exam is designed to give you the best chance of success by simulating the actual exam experience
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this practice exam covers all the key Concepts you'll see on test day in 2023 so you can feel confident and prepared
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the way this works is I go through every question read it over give you guys an opportunity think about the question and
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come up with your answer it's that simple now after this video you should test what you've learned and head over to
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realestatelicensewizard.com not only do we offer a completely free version of the exam like the one I'm covering today
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but we also have completely free state specific practice exams to ensure you
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feel confident and prepared on exam day and if you really want to help out this channel you can check out one of our premium prep packages anyways without
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further Ado let's get started question number one Mrs Jane lives in a small residential neighborhood 100 year old
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trees surround her home and her neighbor Mr Joe claims the trees are on his property and is planning on cutting them
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down Mrs Jane tries to have reason with Mr Joe but he refuses to listen Mrs Jane
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files a lawsuit that includes a court order for Mr Joe to stop his actions until they can work something out what
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type of court order is this and it gives us four options a a temporary productive
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order B an authorized dispute order C and Junction or D in easement so like
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always I'm going to give you guys a brief opportunity to think it over and come through the answer so go ahead and do that right now
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alrighty so hopefully you came up with your answer if you need more time feel free to pause no biggie there so what is
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the correct answer for this one well it's going to be C that's right C it's
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an injunction so if a dispute is pending the court will likely issue an injunction
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preventing Mr Joe from cutting down the trees until they are entirely resolved injunctions can be used to protect
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interest in Real Property a court ordered injunction can be used to prevent a harmful action stop ongoing or
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repeated conduct or force a defendant to take action to prevent harm so this is one of those Real Estate Law related
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questions that you just really need to be aware of you know the terminology affecting
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basically court-ordered lawsuits and things like that real property law all
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right next one number two the amount barred is called the and it
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gives us four options a interest amount beat principal amount C escrow amount or
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D original amount so take a brief moment to think this one over and come up with your answer
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all right so what is the correct answer for this one well it's going to be B it's the principal amount the amount
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owed is called the principal and the price of borrowing the money is called the interest so it's pretty
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self-explanatory there you just need to be familiar with um you know the difference between principal and interest in regards to
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specific you know loan and interest terminology so pretty easy there next
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one question number three what is ginny May's primary responsibility and it
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gives us four options a to create FHA and VA loans B to
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guarantee the security of loans C to maintain an active secondary market for mortgages or D to manage and liquidate
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previously acquired mortgages so again what is Guinea May's primary
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responsibility take some time and think that one over and code the answer
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so what is our correct answer for this one so with Guinea May the correct
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answer is B it's to guarantee the security of loans so giddy May exists to
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solely guarantee the security of the loan Guinea May is a government agency that guarantees Securities backed by
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loans issued under government agency programs such as VA and FHA now Fannie
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Mae is a private corporation that buys loans from private lenders assembles them into mortgage-backed Securities to
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maintain an active secondary market so this is one of those ones that people get mixed up all the time you need to be
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familiar with the difference between Fannie Mae and guinea May and you know
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hopefully you know that that kind of explained it well but obviously if you're still struggling with that you
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know stay tuned because I'm sure another question will come up and we do a video specifically on that too all right next
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one question number four what is the difference between the market value of your home and the amount you owe the
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lender who holds the mortgage and there's a appreciation B variance C
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proration or D Equity so take some time think that one over income the answer
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alrighty this one's pretty easy or it should be the correct answer for this one is D equity
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so terms used pretty often in real estate Equity is the difference between the market value of your home and the
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amount you owe the lender who holds the mortgage your Equity is the money you'd receive after paying off the mortgage if
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you were to sell your home pretty self-explanatory there all right next one question number five
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local zoning ordinances often regulate all the following except a density of
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population B market value of the property C height of buildings in an
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area or D appropriate uses for the buildings so go ahead and take some time
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think that one over and come with your answer
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foreign so what is the correct answer for
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question number five local zoning ordinances often regulate all the following except correct answer for this
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one is B market value of the property zoning usually increases the
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marketability of the property that's where people get this a little bit confused but it doesn't directly regulate the market value the idea is
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that when a community is organized it's more attractive safer has fewer conflicts among people however it does
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not again does not directly affect market value for example they can't Implement zoning code to raise what
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people would pay for properties they can however Implement zoning codes to help promote the local economy market value
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is never directly determined by the government and that's super important to note especially when we're talking about
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zoning laws things like that so remember that all right next one
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question number six who or what determines the amount of earnest money
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deposit a the agreement between the parties B the state real estate
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licensing statutes C the Brokers or agents preference on the matter or D the
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minimum percentage via the sales tax comparison formula in parentheses price
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so excuse me purchase price divided by tax rate so take a moment to think that
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one over and come up with your answer
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alrighty what is the correct answer for number six well it is a the agreement
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between the parties now it is customary but not always required for a buyer to
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provide a deposit when making an offer to purchase this deposit is referred to as earnest money the amount is
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completely up to the agreement between the parties there is no law stating an earnest deposit has to be a certain
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amount and that's super important to understand there's no State there's no local law there's no federal law you
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know these other options are not you know reasonable and they're not true the
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agreement is always between the parties and C could you know I see some people
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say this the Brokers or agent's preference on the matter and regarding that I mean theoretically yes there is
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there is some preference there but ultimately it comes down to the agreement between the parties uh an
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agent could you know say hey you know we want it to be a certain amount because we think you know they'll
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more likely offer that or accept the offer if it's that much and uh you know
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the potential buyer could be like oh yeah that's great but ultimately again it's it's ultimately up to the agreement
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between the parties the buyer the seller they need to agree on that so preference
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is important but who actually determines it comes down to the parties themselves all right next one question number seven
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which situation is legal under the federal fair housing act of 1968. a the
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insistence of a widowed woman on renting her spare bedroom and leaned to another woman B the intentional neglect of
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withholding certain properties to your clients to buy for yourself C the
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refusal of a property manager to rent an apartment to a Catholic couple who are otherwise qualified or D the ability to
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buy a property with the intent to resell it to your mother-in-law for double the price so take a moment there and come up
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with your answer on this one
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alrighty so what is the correct answer for question number seven well it is a
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the insistence of a widowed woman on renting her spare bedroom only to
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another woman so this is a lengthy description and I
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always put this question uh we always put this question on every year because it's a confusing one and people tend to
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get confused and struggle with this so what is the federal fair housing act well that is the law that prohibits
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discrimination in the buying selling renting financing of housing these laws prohibit discrimination based on race
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religion color sex disability children nationality and more you cannot have a
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listing that states looking for whites only or Catholics only something like that the interesting thing is however
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you can put language referring to sex for example seeking female roommate
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um and however it's only in the case of finding someone where you're going to be sharing Living
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Spaces with so for example you can't uh have an apartment complex and be like
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I'm only looking for uh you know men in this entire complex or something like
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that no the Living Spaces have to be shared in order for that to work now another thing is this there's this thing
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called the Mrs Murphy exemption which provides that if a dwelling has four or fewer rental units the owner and the
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owner lives in one of those units that home is exempt from the FHA now Mrs
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Murphy is this hypothetical elderly woman who uh converted a portion of her home into a rental apartment to supply
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or supplement her limited income so there's a whole story about that and we have a fascinating article that covers
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that on our website as well if you're more interested in that but what you guys need to know come the exam is that
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there are exceptions and they're few and far between but they do show up so you
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just need to be aware of these uh exemptions Federal Fairgrounds exemptions and again the Mrs Murphy one
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is one and that would apply here as well as just you know the regular
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um you know language referring to uh sex for um you know seeking female roommate
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or you know male roommate things like that so keep that in mind next time uh
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around for these types of questions all right question number eight in the case of a standard tax lien who gets paid
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first is it a the homeowner B the buyer seller C the commission or D the
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government so take some time and think that one over and come with your answer
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alrighty so what is the correct answer for question number eight standard tax
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lien who gets paid first well it's going to be D it's the government tax leads
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are imposed by the federal state or local government based upon back property taxes that are due not only can
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these seriously impact your credit report but until they're paid off they can prevent you from selling the property tax liens are involuntary and
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usually specific the important thing to remember is the government always gets paid first in terms of money
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distribution so remember that alrighty next question number nine which of the following laws
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prohibits discrimination in the buying selling renting or financing housing these laws prohibit discrimination based
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on race religion color sex disability children nationality and more is it a
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the Fair Housing Act B the Equal Credit Opportunity Act C the Civil Rights Act
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of 1866 and 1964 or D the smart opportunity and housing act so take a
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moment think that one over and come with your answer
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alrighty so you should know this one because we kind of already went over it earlier just a little bit uh the correct
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answer for this one is a it's the Fair Housing Act so again that's that main law that prohibits discrimination in the buying
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selling renting or financing of housing these laws prohibit discrimination based
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race religion color sex disability children nationality and more now that Ian Moore comes into play with your
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state-specific fair housing law uh and that's that's something that you will need to look into and be familiar with
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for your state portion of the exam but as for the national you don't have to
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worry about that right now but just remember those protected classes when it comes to the federal fair housing law or
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federal fair housing act all right next one question number 10. the real estate contract clause that almost always
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begins with the words to have and to hold is it a the alienation clause B the
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habenum Clause C the acceleration clause or D the pre-payment penalty Clause so
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take a moment think that one over and go with your answer
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alrighty do you know your contract losses let's find out so what's the correct answer for question number 10
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the real estate contract clause that almost always begins with the words to have and to hold well that is
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the hubendum Clause option number B the habandam class is the statement and
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contract that describes the rights and interests being given it almost always begins with the words to have and to
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hold alrighty awesome next one question number 11 which act amended the
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comprehensive environmental response compensation and liability act also known as circular
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so there's a the s-a-r-a B the sdwa C the CWA or D
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the EPA so take some time think about these abbreviations and try and cope
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with your answer on this one
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alrighty so what is the act that amended the comprehensive environmental response
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compensation and liability act well it is a a it is the super fund amendments and
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reauthorization act of 1986 also known as sa ra so this was passed when the
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original act circular expired in 1985 it amended the ACT uh the big change had to
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do with liability when a property owner has been innocent of all involvement with the hazard way site under certain
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circumstances they may claim immunity from responsibility in plain terms it
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allows truly innocent landowners to have immunity from legal liability and
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basically the Sara also included the EPA
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to revise the hazard ranking system to ensure that it accurately assessed relatively uh degree of risk to human
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health and environment posed so the important thing that you need to know
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is that essentially it amended that First Act circular or one of the earlier
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acts circlops so when it expired the super fund amendments and reauthorization act was established and
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again the important thing to remember as it has to do with liability it added that layer of liability all right
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question number 12 what party usually pays the loan origination fee on a
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federal housing Administration or FHA loan so is it a the bank B the broker C
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the borrower or D the real estate agent so take some time think this one over and come up with your answer
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alrighty so the correct answer for this one is C the borrower so typically the party
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who usually pays the loan origination fee on an FHA loan is the borrower now
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this fee covers the borrower's right to obtain FHA backed financing so it is
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traditionally paid by the borrower now FHA Loans are a mortgage issued by an
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FHA approved lender and issued by the FHA which is the federal fair housing or
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I'm sorry the federal housing Administration FHA Loans are obviously pretty attractive to people because they
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require lower minimum down payments and credit scores that many conventional
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loans might not have all right next one question 13 real property can be
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converted to personal property by and there's a inference B Severance C
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session or D changement so take a moment think that one over and come with your answer
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alrighty what is the correct answer for this one well it's going to be B Severance Severance is the opposite of
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attachment Severance is taking an item that is attached to the land and removing it as personal property so
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again converting that real property to personal property would be considered
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Severance alrighty next one question number 14. in order for a month to month
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tendency to be legally valid which of the following must the contract include
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is it a oral written consent B offering acceptance C consideration or D all the
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following so take some time think this one over come with your answer
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alrighty month to month tenancy what do we know about that well honestly
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this one's pretty uh you need to be understanding of month-to-month
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Tendencies to understand this basically uh so what is our correct answer for this one well it's going to be D all of
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the following so consideration offer and acceptance
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written or oral consent those are all extremely important and they must be
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included in the contract in order for it to be valid now I'm sure you're wondering you know a little people get
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you know a lot of times sometimes people get confused with this oral written
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consent part and let me explain that so basically oral or written consent can be made on a
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month-to-month tenancy and it can be valid now obviously when we get a little bit longer you know like let's say a
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year-long tenancy because the statute of frauds is in place that needs to be in
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writing so sometimes people will see this first option and they say oh it says oral I know that I know you know
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with um you know certain tendencies that has to be written so maybe it's not that one and then they just choose like B or C
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but you need to fully understand the context and you need to be aware of month-to-month Tendencies and again it
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can be oral or written consent alrighty next one question 15 an elderly man in a
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nursing home has no family and is suffering from Alzheimer's because it was Alzheimer's he doesn't remember much eventually passes away in his sleep
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there is no will for the man and again he has no family so what happens to the money left in a savings account and this
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Old Farm that has been left untouched since entered the nursing home I said a
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g b eminent domain C adverse possession or D inverse condemnation so take a
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moment to think this one over and come up with your answer
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alrighty so when you hear no will think of a sheet which is our
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answer a sheet instead of being handed down to his family since he
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theoretically has none his assets are going to go to the government and the process code is cheat sheet is the
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government's right to take ownership of unclaimed real estate or assets so remember that because that's one of
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those important Government powers that you need to be aware of for the exam
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all right question number 16 compliance with zoning ordinances is monitored through the issuance of what and it
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gives us four options a buffer zones b ccrs c covenants or D
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zoning permits so take a moment think that one over and come with your answer on this one
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alrighty so what do you know about zoning well you should know about zoning permits because those things pretty much
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go hand in hand and that's our correct answer D zoning permits so with ccrs and
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Covenants those are private when we're talking about public Landes controls
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we're talking about zoning now obviously buffer zones is something to do with
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zoning but that's a little bit different zoning permits are essentially what
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directly creates the compliance and make making sure that you know it's it it
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works and and it's how it's monitored and essentially you know taken care of
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so that is our correct answer there all right next one question number 17 which
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of the following best or I'm sorry got ahead of myself which of the following statements about water rights is true
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choose the best answer a water rates are pertinent B water rates are transferred
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exclusively in quick claim deeds C water rates are double taxed similarly to how corporations are taxed or D the two
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basic forms of water rates are ocean rates and Lake rights so take a moment would think this one over and come up
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with your answer
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alrighty what is the correct answer when we're talking about water rights we need to remember a water rights are a
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pertinent so pertinent means they run with a land and not with the original owner in other words if an oceanfront
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property is sold the new owner gains the littoral rights and the seller relinquishes his or her rights so again
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water rights are pertinent all right next one question number 18 which of the
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following is required by the Americans with Disabilities Act or the Ada a all
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employers must have non-discriminary deployment practices B reasonable
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combinations must be provided to people with disabilities C all employees real
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estate agents included get paid for working on federal holidays or D an existing premise must be remodeled if
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requested by a person with a disability regardless of the cost
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so you need to be familiar with your American Disabilities Act for this one so take some time think about this one
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and come with your answer
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alrighty so what is the correct answer for this one well it is the reasonable accommodations
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must be provided to people with disabilities so the American Disabilities Act
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prohibits discrimination against people with disabilities in several areas including employment Transportation
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public accommodations Communications and access to State and local government programs and services the ACT
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specifically requires reasonable accommodations must be provided to
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people with disabilities so this fourth one D an existing premise must be
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remodeled you know regardless cost that's not the case C all employees again
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that has nothing to do with the American Disabilities Act so it doesn't worry about that and then uh a obviously all
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employers must have non-discriminary Employment Practices sure I mean that that that is important right I mean we
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know that from you know fair housing or you know just uh laws in general but
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when we're talking about the American Disabilities Act that's not we're not specif specifically talking about that
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so that's one of those questions where you know you could argue you that maybe there's multiple correct answers but you have to choose the best one and the best
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one here is that reasonable combinations must be provided to people with disabilities all right next one
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question number 19 antitrust laws prohibit competing Brokers from all of
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the following except a boycotting other brokers in the marketplace B dividing
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the market to restrict competition C agreeing to set sales commissions and management rates or D receiving
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compensation from both the buyer and the seller so take a moment think this one over and come with your answer
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foreign Ty so this is a little bit of a trick question I'm curious if you guys got
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this one so the correct answer for this one is D receiving compensation from
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both the buyer and the seller so that is not an Anti-Trust violation that's
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something called dual agency now dual agency is when one real estate agent
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represents both the buyer and the seller and a transaction which might seem ideal however it can lead to some significant
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risks which is why it's actually illegal in certain States but in a lot of States
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it's still perfectly legal but again even in those states that it's it is
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illegal it's not classified as an Anti-Trust violation while all the other examples are
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alrighty next one question number 20 which of the following can be achieved by dividing the price of a property by
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the rent that is produced is it a the interest rate B the capitalization rate
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C the economic value or D the gross rent multiplier so take some time think that one over and come with your answer
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alrighty so when you read this one hopefully a keyword came out so you can
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kind of figure it out this one is D gross rent multiplier so pretty self-explanatory here at gross from
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multiplier is found by dividing the price of the property by its rent so if you're just aware of that formula then
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you should have been able to put tune two together on this one and obviously it says here rent so that was a little
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bit of a hint as well all right next one question 21 a bilateral contract is one
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in which and gives us four options a our restriction is placed in the contract by
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two parties to limit the performance of the other party B the promise of one party is given in exchange for the
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promise of the other party C only one of the parties is obligated to act or D
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something is done by only one party so take a moment think that one over and
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come up with your answer
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alrighty so bilateral contract what is that what a bilateral contract is one in
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which B the promise of one party is given in exchange for the promise of the
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other party plain terms bilateral contract is agreement between two or more parties most business and personal
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contracts fall into this category all right next one question 22 under the terms in a
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mortgage the lender must be paid in full if the property is sold to another person this is known as the it gives us
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four options a the alienation clause B the dominant Clause C the Venom clause
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or D the acceleration Clause so take some time and think that one over and come with your answer
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alrighty so under the terms in a mortgage the lender must be paid in full if the property is
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sold to another person which contract clause is that well the correct answer is a the alienation clause
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the alienation clause is a contract provision that comes into effect when ownership of a specified asset is transferred or sold it ensures that if a
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transfer property happens the lender is paid in full from the original borrower it's a legal Clause lenders add for
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protection so I know a couple of you guys probably put the acceleration clause and it is a little bit different
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remember the acceleration Clause comes into play when the contract is broken or
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there's a violation with the contract that is when that happens alienation is
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when the property is transferred or sold so just keep that in mind all right next one question number 23 what is the
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illegal action or practice of lending money at unreasonably High rates of
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Interest a forgery b usuri c altercation
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or de-puffing so take a moment to think that one over and come up with your answer
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alrighty so what is our correct answer well it is B usury so usually is the
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practice of making unethical or moral monetary loans that unfairly enrich the
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lender currently Most states have usually loss in place and set a cap on maximum amounts of Interest A lender can
36:42
charge now these rates do vary significantly by state and may differ depending on the type of financial
36:48
product you're using but again this is a perform a form of predatory lending so
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it's one of those things that you just need to be aware of one of those important terms all right next one
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24. state laws differ on whether a buyer is entitled to know about because it's
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four options a the sellers are getting a divorce B known lead paint is on the
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property C the flooding of the basement every spring or d a suicide that occurred in
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the house last year so take a moment think that one over and come up with your answer
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all right this one's always uh an interesting one so the correct answer for this one is d
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a suicide that occurred in the house last year so the buyer doesn't need to know the
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sellers are getting a divorce lead paint and flooding they obviously do need to
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be disclosed and that's a nationwide thing but state laws differ on whether a
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buyer is entitled to know about deaths in Texas deaths from natural causes suicides or accidents unrelated to the
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property do not have to be disclosed however deaths related to the condition of the property or like a violent crime
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on the property must be disclosed other states impose a duty on a stigmatized
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property in which there has been a suicide or murder so again state laws differ when it comes to deaths on
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property all these other options not the case obviously a really doesn't matter
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because that's not the case either way B Federal C Federal so just remember that
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all right next one question 25 fees that the buyer pays to close the deal are called what a seller cost B closing cost
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C broker cost or D earning deposits so take a moment take the one over go with
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their answer
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alrighty so what is the correct answer for this one well it is the its closing
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costs don't overthink this one closing is the final step in executing a real estate transaction it is when the
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official ownership and payment is transferred to the rightful parties and the fees that the buyer pays to close the deal are called closing costs pretty
39:38
straightforward there all right question 26 as a general rule
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of thumb all written offers must be a sent to local government Authority B
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presented to the broker's office C presented to the seller or D presented
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to the buyer so take a moment to think this one over and come with your answer
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alrighty so general rule of thumb with written offers what is it well it's C
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presented to the seller General thumb it is a serious breach of a real estate
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agent's fiduciary duty to the seller not to present all purchase offers doesn't
40:38
matter if that offer is you know maybe super low and you're thinking oh they
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won't accept this you know that this house you know this property it should be sold for more it does not matter they
40:51
need to be presented to the seller you need to understand that
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all right next one 27 a buyer was negotiating the purchase of a lot to
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build a new family house the seller indicated that the land was firm enough to support the construction of a
41:09
building when in fact the seller knew it was not the contract is it gives us four options
41:15
a ffordable by the seller because of the mistake B avoidable by the buyer because
41:21
of fraud C valid or D void so take a
41:26
moment really think about this one and come up with your answer
41:54
alrighty hopefully you're familiar with void avoidable and valid
41:59
what is the correct answer for this one well it is B floatable by the buyer because of fraud in this case the
42:07
contract would be avoidable by the buyer because of fraud avoidable contracts have the necessary elements to be enforceable so they appear to be valid
42:14
but can be rejected by one party if the contract is discovered to have any number of defects fraud is the act of
42:20
intentionally deceiving another party or financial for financial or personal gain so in this case it's important to note
42:29
again the seller uh indicated something that wasn't true okay and again that
42:36
would make the contract voidable because of fraud all right next one question 28
42:42
a parcel of land that is subject to an easement is best described as and it gives us four options a serving the
42:49
state B Dominos State C in the state and sufferance or D in a state entenement so
42:54
take a moment think that one over and come up with your answer
43:10
alrighty so a parcel of land that is substitute easement is best described as
43:17
a servient estate serves by definition a serving state is
43:24
part of land they're subject to an easement so that's important way to remember that is if it's serving or
43:31
subject to it's the servient estate alrighty next one question 29 a buyer
43:38
and seller entered into a contract that negotiated the sale of the side Lot at the same time as to transfer the home
43:44
what is the second document called and it gives us four options a an option
43:50
b a contingency C an abendum or D an amendment so what would that second
43:55
document be called in this specific case think about that and come up with your answer
44:25
alrighty so what is the correct answer for this one well it is C in addendum
44:34
so an addendum is an attachment to a contract that modifies the terms and conditions of the original contract an
44:40
example of an addendum uh being used would be if the parties wanted to add something to the original document for
44:46
instance an individual who's purchasing a house may not want to purchase all the furniture this being left behind however
44:52
after thinking about it further they may change their mind and they need an addendum so keep that in mind again the
45:00
addendum Amendment contingency options all these things technically are different so you do need
45:06
to be aware of that and again the key takeaway here is it says the buyer entered into a contract so again they
45:14
already entered into it and then again they negotiated the sale on the side at
45:19
the same time so again that would be the addendum there all right next one
45:26
question 30 what is the difference between a lease option contract and a lease purchase contract gives us four
45:31
options a a lease option contract and lease purchase contract are the same thing B the difference between a lease
45:37
option and a lease purchase agreement is that the least option only obligates the seller to sell see the difference
45:43
between a lease option and a lease purchase agreement is that the lease option only obligates the buyer to buy
45:49
or lastly D the difference between a lease option and a lease purchase agreement is that one is for first-time
45:55
home buyers and the second is for any type of buyer so take a moment think of own over and come with your answer
46:27
alrighty so what do you guys know about lease option contracts and lease purchase contracts well you need to be
46:34
aware of their difference and the correct answer for this one is B the difference between a lease option and a
46:40
lease purchase agreement is it the lease option only obligates the seller to sell so the difference between the two is
46:47
again that seller to sell with the leads option the buyer is not forced to buy the property if they change their mind
46:53
or cannot obtain financing a lease purchase agreement commits both parties to the sale barring breach of contract
47:00
or the buyer's inability to secure a mortgage alrighty next one 31.
47:06
typically a warranty deed contains how many covenants a two to three B three to
47:12
four C four to I'm sorry C five to six or D eight to nine so take a moment
47:19
think about covenants and come with the answer
47:49
alrighty so warranty deeds how many covenants do they have well it's going
47:55
to be C five two six warranty deed can include six forms of covenants title a
48:02
warranty deed is a type of deed with a grantor guarantees that he or she holds clear title to a piece of real estate
48:09
and has a right to uh sell it to the grantee or the buyer the general
48:14
warranty deed offers grantee the most protection and with this type of deed they make a series of Legally binding
48:21
promises called covenants so essentially these covenants are promises protecting
48:27
the grantee against any prior claims demands on all persons in regards to the
48:33
conveyed land and typically a warranty deed has five to six covenants so you need to know that
48:39
all right 32 the term licensee is commonly used in real estate law a
48:45
license C is just a renter be a homeowner see a real estate agent or d a
48:51
third party principal so take a moment think about that one
49:10
alrighty so what's going on with this what is a licensee hopefully you guys
49:15
know it's C it's a real estate agent so remember real estate agent is just a professional who has passed the required
49:22
real estate classes and Licensing exams in the state and where they attend to work this is the starting point for most
49:29
professional agents probably including your guys yourself if you're watching this video
49:36
um but yeah so they are legally called a licensee or license holder so if you're looking at the state laws um your state
49:42
license law uh it's going to say licensee sometimes obviously it's going to say salesperson broker
49:49
um agent depending on you know what what specific role or law applies to but again licensee covers everything
49:57
um all included so keep that in mind because that's super important to understand the distinction
50:03
um and and then be aware of that all right question 33 which of the following fiduciary duties continues after a
50:09
listing agreement expires is it a loyalty B disclosure C confidentiality
50:16
or D reasonable care and diligence so take a moment to think that one over come with your answer
50:38
foreign
50:44
fiduciary duties continues after a listing agreement expires the correct answer here is C confidentiality so this
50:53
lasts forever confidentiality requires that you do not disclose any information learned about your clients their
51:00
business Financial or personal affairs or motivations again this Duty lasts
51:06
forever all right next one question 34 government power is the Constitutional
51:13
Authority and inherent power of a state to adopt and enforce laws and regulations to promote in public to
51:20
promote and support the public health safety safety morals and general welfare as she is and it gives us four options
51:29
a when a property owner sells their property and the government gets a portion of the sale B when a property
51:35
owner sells their property and the local government gets portion of the sale C when a property owner dies and leaves no
51:41
proper documented inheritance plan the property ownership reverts to their hairs or D when a property owner dies
51:49
and leaves no proper document inheritance and the property ownership reverts to the government so take a moment take the one over and cope with
51:56
their answer
52:15
alrighty so luckily for you guys we did talk about this a little bit earlier but a sheet is
52:23
D is when a property owner dies leaves no proper document inheritance plan and
52:29
property ownership reverts to the government so again it's one of those essential Government powers they need to
52:36
be aware of um you know come exam day all right next one 35 what best describes an agent
52:43
hired to perform a specific Duty a special agency B General agency c a
52:50
universal agency or D an exclusive agency so think about that one and go with their answer
53:17
alrighty so what is the correct answer for this one well it is a a special
53:24
agency so special agent is an agent hired to perform a specific Duty the
53:30
real estate agent's power and authority is limited to that specific task Let's do an example so if you list a house on
53:37
behalf of a seller you were hired for one specific job listing the house once that job is complete then the agency
53:44
relationship is over alrighty next one 36 the person who
53:52
hires Aura points an agent is called the it gives us four options a deputy B
53:57
principal C fiduciary or D customer so think that one over and come with your
54:03
answer
54:29
alrighty so this person hires or appoints the agent what are they called
54:35
the correct answer for this one is B the principal so a person who hires or
54:43
points and agents quotes the principle in plain terms principles in real estate uh sales transactions would be the buyer
54:49
and the seller so it's important to understand the difference and obviously that comes down to the principal and
54:57
fiduciary uh or I'm sorry principle and agent relationship um and obviously the fiduciary duties
55:04
that are included in that you just need to be aware of that relationship and kind of how that works and obviously
55:09
this is a good example of an instance in which you need to be aware of you know who appoints who
55:16
um super important to know all right 37 Tina and Tom are two unmarried individuals who own property with equal
55:23
interests and without a right to survivorship which of the following forms of ownership would Tina and Tom
55:29
most likely have a tenants by the entirety B tenants in common c community
55:35
property or D joint tenancy so take a moment to you know think that one over
55:41
and come with your answer
56:04
foreign Ty what is the correct answer well it is
56:10
B it's tenancy in common remember community property intense by the entirety is through marriage you can't
56:17
have the form of ownership with two unmarried individuals fancy in common would be the best answer tenzie common
56:24
is when a parcel real estate is owned by two or more tenants upon the death of tenant common that shares transferred to
56:30
the estate or heir of the deceased tenant now unlike a joint tenancy tenants common have no rights of
56:36
survivorship something uh or I'm sorry so knowing that Tina and Tom do not have
56:41
a right to survivorship and they are unmarried we can assume that they have a tendency in common the amount of
56:47
Interest really doesn't matter in this case so again if we're looking at this you know question
56:53
kind of lays it out for us the two big hints here are equal interests and uh
56:58
without a right to survivorship or I'm sorry not equal I'm just but unmarried individuals and without a registration
57:05
those are two big hints the equal Interest really doesn't matter in this case yeah it's those two that are like
57:10
the big hints for us all right next one question number 38 what is the general
57:16
technique of determining three-dimensional positions of points and distances and angles between them is
57:22
it a surveying B subdivision surveying C7 plots rang or D Sewer Lateral
57:28
expecting so take a moment I think they went over
58:10
all right the general technique is a surveying pretty straightforward here
58:17
surveying is the general technique um the point of a survey is to accurately
58:22
measure land in a legal Fair manner while subdivision surveying is definitely a form of surveying this
58:30
question again is asking for that General technique the general form so that's just surveying all right next one
58:36
question number 39 which type of lean is a claim imposed against a property without the consent of its owner is it a
58:44
equity lean B mortgage lien C voluntary lien or D involuntary lien so take a
58:51
moment to really think about that one and come up with your answer
59:22
alrighty so which type of lean is a clean and post against property without
59:28
the consent of its owner what is the correct answer for this one well it is
59:34
the involuntary so again it's against a property owner without their consent so
59:42
it would be involuntary so just remember that obviously there's a voluntary and
59:47
involuntary uh liens and again involuntary ones aren't created by the
59:53
homeowner it's against a property without the consent of its owner so the difference there is obviously one is
59:59
voluntary one is involuntary pretty straightforward but again you just need to be familiar with how those work
1:00:05
all right question 40 in a pertinent easement I have several ways of legal termination which of the following is
1:00:11
not a valid way to terminate an easement a expiration of the easement B
1:00:16
revocation by the Serbian owner C release by the dominant tenement owner or D emerger of both a servant and
1:00:23
dominant Parcels so think about that one uh for a moment and come with your answer
1:00:51
alrighty so a pertinent easements these get a lot of people a little bit
1:00:57
confused so hopefully you figure this one out so what is the correct answer what's going to be B it's revocation by
1:01:03
the Serbian owner so easements are pertinent meaning they generally pass along with ownership changes in real
1:01:10
estate but there are several ways of Legally terminating them there's expiration release merging and
1:01:17
abandonment those are all legal ways to terminate an optical easement the Serbian estate
1:01:25
serves the dominant State and cannot terminate easement even through revocation so again this is revocation
1:01:33
by the servient owner that's kind of the hint there um well I mean yeah that's that's the
1:01:38
meat of the answer um essentially again the servient estate serves the dominant State and they
1:01:45
cannot terminate the easement even through revocation so again this one's
1:01:50
more or less just understanding the relationship between the dominant and tenant dominant and Serbian estate and
1:01:58
pretty much understanding you know how they operate and the relationship between the two all right next one
1:02:04
question 41 Richard is renting property from Becky Richard is on a
1:02:09
month-to-month lease agreement this past month he did not pay his rent Richard's interest would be classified as a the
1:02:16
state it will B and state sufferings C in a state of periodic tendency or D in
1:02:21
a state for years so take some time think about that one and come with your answer
1:03:00
alrighty so what is the correct answer for this one well listen guys this past
1:03:05
month he did not pay his rent so what would the interest be classified as in a
1:03:10
state at sufferance B is our correct answer so a tenant who occupies uh or continues
1:03:16
to occupy property after his or her rights have expired is said to occupying the property under an estate at
1:03:21
sufferance so it's important to note here again this is a month-to-month lease agreement and they have not he has
1:03:27
not paid his rent so again the estate would be at sufferance it's one of those important things uh distinctions there
1:03:34
with the month-to-month leases and um obviously you know not paying the rent
1:03:40
comes in a state sufferance all right 42 which of the following statements does not correctly describe a fiduciary a a
1:03:47
fiduciary must conform to the principal's legal instructions be a fiduciary owes loyalty to the principal
1:03:53
C A fiduciary is a neutral third party or D A fiduciary is an agent so it takes
1:03:59
some time think about fiduciaries and go with your answer
1:04:28
alrighty so which of the following statements does not correctly describe a
1:04:33
fiduciary the correct answer for this one is C fiduciary is a neutral third party that
1:04:40
is not the case fiduciary is a term that refers to a legal relationship that is
1:04:45
confidential between two parties the fiduciary responsibility is to protect
1:04:51
the privacy of the client and to keep all the clients information confidential an example of a neutral third party is
1:04:57
an escrow agent that would be a personal entity that holds you know property and
1:05:02
Trust for third parties while transaction is finalized or a disagreement is resolved but again in
1:05:08
this case uh fiduciary owes that responsibility to you know that specific
1:05:15
party so again they're not they're not neutral they're
1:05:20
not they're not a third party um you know another example again would
1:05:26
be that escrow agent so you need to understand the difference between that and that relationship super important to
1:05:32
understand all right next one 43 a mortgage loan that requires monthly payments of 4 400 dollars for 15 years
1:05:40
and a final payment of twenty thousand dollars typically a loan structured like this is called a because it's four
1:05:46
options a a balloon loan b a payday loan see a standard loan or d a home equity
1:05:52
loan so take a moment to think about that one and come up with your answer
1:06:29
alrighty so what is the correct answer for question 43 so typically a loan structure like this
1:06:36
is called a balloon loan option A is our answer so balloon loan is a mortgage
1:06:42
which does not amortize over the term now again it's super important to
1:06:48
understand that when there's that massive payment at the very end that
1:06:53
that balloon payment that's what's called that's going to be a balloon loan so again when you see that it kind of
1:07:00
gives it away right here the final payment when we're when we're talking about mortgage loans and Loan types you
1:07:06
should know that that is a balloon loan alrighty next one
1:07:12
44. what is an oral I'm sorry why is an oral lease for two years not generally
1:07:18
enforceable in law and it gives us four options a sends you frauds B statute of
1:07:24
limitations C The Uniform Commercial Code or D uniform lease code of 1978. so
1:07:30
take a moment think that one over
1:08:07
alrighty so oral lease for two years would not be enforceable why well it's
1:08:12
because of a statute of frauds I did mention that a little bit earlier hopefully you're paying attention but
1:08:18
again that's that legal concept that requires certain contracts to be in writing now this one this the statute
1:08:26
specifically uh covers contracts for self-land agreements involving Goods over five hundred dollars and obviously
1:08:33
contracts lasting one year or more since it's two years is again it's going to be
1:08:38
you know not enforceable all right next one 45 holding earnest
1:08:44
money without depositing it is what a always illegal be legal with written
1:08:50
authority C legal with verbal Authority or D legal if held by a broker so take a
1:08:57
moment to think that one over come with your answer
1:09:32
alrighty so earnest money what's going on here well holding
1:09:38
earnest money without depositing it is actually legal but you need written Authority
1:09:44
so again needs that written authorization and uh you know even then
1:09:49
it's best to deposit as soon as possible however again uh you know it's it's it's
1:09:54
not always illegal so there's that asterisk there now obviously with verbal
1:10:01
Authority that's not good enough and in many states that's considered uh you know illegal so again you need that
1:10:06
written Authority all right question 46 an appraiser has been hired to prepare an appraisal report of a property for
1:10:13
loan purposes the property is a 25 year old strip mall to which approach a value
1:10:19
should the appraiser give the greatest weight when making this appraisal is it
1:10:25
a the income approach B the gross round approach C the sales comparison approach or D the property expense approach so
1:10:33
think about that one and come with the answer
1:10:59
all right so which approach to Value should the appraiser give the greatest weight in this particular instance well it's
1:11:06
going to be a it's the income approach so overall the appraisal process based
1:11:13
on tons of factors usually they use a combination of approaches but they give weight to the most uh the most important
1:11:20
one so the income approach determines what a property generates in terms of income
1:11:25
for its owner so again in this case because let's see here property is a 25
1:11:32
year old strip mall again it's generating income so they would want to
1:11:37
use the income approach it's not a residential property it is a commercial property in a mall so they would need
1:11:45
that all right next one 47 an example of economic obsolescence real estate is
1:11:50
gives us four options a old kitchen cabinets b a pole built on your mother's
1:11:57
house C and noisy Highway built right next to your home or D sellers not being able to afford property due to economic
1:12:04
factors so take a moment to think about that one
1:12:39
alrighty so hopefully you know your economic obsolescence what is the correct answer for this one well it's
1:12:46
going to be a a noisy Highway built right next to your home that would be considered economic obsolescence and
1:12:52
economic obsolescence refers to loss of property value due to external factors meaning things off the property are
1:13:00
affecting the property's value so obviously a noisy Highway would be considered that because it is that
1:13:06
external Factor usually in these circumstances homeowners cannot do anything to prevent it
1:13:12
um so again just need to be aware of your forms of obsolescence and obviously
1:13:17
you know examples of each all right 48 what best describes an agency
1:13:23
relationship or an agent has legal authority to act on behalf of the principal a special agency B General agency c a
1:13:32
universal agency or D an exclusive agency so take a moment and put your uh
1:13:38
put your heads together and come over the answer on this one
1:14:07
alrighty so what is our correct answer for this one well it's going to be c a
1:14:13
universal agency so if you remember earlier we talked a little bit about the general agency I believe
1:14:20
um it's hard to keep track but uh yeah in this case uh acting on behalf of the
1:14:26
principal it's going to be a universal agency this agency has unlimited power so again
1:14:33
um you know this this one isn't the specific uh you know where there's just one thing again this is the universal
1:14:42
unlimited that's normally how I remember it or I tell people how to remember is is you know just think about Universal
1:14:49
unlimited you know the Universe goes on it's it's unlimited it's it's Limitless it's unlimited uh it has unlimited power
1:14:56
so that's our answer for that one and that's how I remember it all right question 49 in preparing for variable
1:15:03
expenses in a property management budget property manager should set up a what gives us four options a cache control
1:15:10
count B asset interest account C floating allocation fund or D cash
1:15:16
Reserve fund so take some time to think that one over and come with your answer
1:15:43
all right so when we're talking about property management we need to be familiar with how that
1:15:50
works obviously and uh one of those things that you need to be familiar with
1:15:55
is exactly the property manager needs to do what things they need to set up
1:16:00
things like that so in this case when we're talking about variable expenses we're going to need a d a cash Reserve
1:16:07
fund so that is an account set aside by an individual or business to meet any unexpected future costs as well as cost
1:16:15
of upkeep and things like that property managers use these funds for variable expenses
1:16:21
all right next one question 50. according to the Do Not Call list an established business relationship or EBR
1:16:28
rules a real estate professional may contact a past client for relationship building purposes when and it gives us
1:16:35
four options 18 months uh b six months c three months or D indefinitely so EBR
1:16:43
rules think about that come up with your answer take a moment to think about it now
1:17:14
alrighty so you do need to be aware of these rules
1:17:20
EBR rules and basically you need to understand
1:17:25
there's there's three different levels and and these are I would say there's
1:17:30
yeah there's four different levels essentially and it's all determined with length
1:17:36
um so for in this instance because it says past client for relationship
1:17:42
building purposes again the answer would be D indefinitely so
1:17:49
um since they are a past client it you know again that means that relationship
1:17:56
that door is open now if their business was terminated or expired it would be 18
1:18:02
months so you just need to be aware of that difference there and you know again
1:18:07
in this question there's no mention of termination or expiration so they can
1:18:12
reach out indefinitely so yeah pretty uh pretty good question
1:18:18
there um you know one of the more trickier ones but you know you do need to be aware of that thank you so much for
1:18:25
watching for part two click the video here and don't forget to subscribe here thank you so much until next time bye
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