Question: Specific performance refers to:

Answer Options: A. A fully executed contract B. A legal action to enforce contract terms C. Meeting of the minds D. A cancellation right.

Answer: B. A legal action to enforce the contract. 197

Question: A lender holds monthly money for taxes and homeowners insurance in a(n):

Answer Options: A. Beneficiary account B. Escrow account C. Promissory account D. Trustee account.

Answer: B. Escrow account. 198

Question: Which is NOT an example of police power?

Answer Options: A. Building codes B. Environmental regulations C. Property taxes D. Zoning.

Answer: C. Property taxes. 199

Question: A licensee leaves Ace Realty for Tip Top Realty while three listings remain active. What happens to them?

Answer Options: A. Become open listings B. Remain with Ace C. Automatically terminate D. Move with the licensee.

Answer: B. They remain with Ace Realty. 200

Question: A void contract is one that:

Answer Options: A. Is made by a sick person B. Is not legally sufficient C. Is paid monthly D. May be withdrawn.

Answer: B. Is not legally sufficient. 201

Question: To calculate the seller’s proceeds, start with price, then ____ seller credits and ____ seller debits.

Answer Options: A. Add/add B. Add/subtract C. Subtract/add D. Subtract/subtract.

Answer: B. Add credits and subtract debits. 202

Question: For a pre-1978 home, a seller is not required to:

Answer Options: A. Disclose known lead hazards B. Allow inspection opportunity C. Provide lead pamphlet D. Mitigate all lead paint.

Answer: D. Mitigate all lead paint. 203

Question: Which is NOT required for a valid, enforceable real-estate purchase agreement?

Answer Options: A. Earnest money B. Consideration C. Writing D. Lawful purpose.

Answer: A. Earnest money. 204

Question: Sara’s broker is entitled to compensation if she buys during the contract, except for one specifically excluded property. What type of agreement is this?

Answer Options: A. Exclusive agency agreement B. Exclusive agency buyer agency agreement C. Exclusive buyer agency agreement D. Open buyer agency agreement.

Answer: B. Exclusive agency buyer agency agreement. 205

Question: Ursula’s co-worker buys her listed property. Which listing guarantees the broker a commission regardless of who finds the buyer?

Answer Options: A. Exclusive agency B. Exclusive right to sell C. Net listing D. Open listing.

Answer: B. Exclusive right to sell. 206

Question: A nearby chicken farm’s odor reduces a house’s desirability. What is this?

Answer Options: A. Economic depreciation B. External obsolescence C. Functional obsolescence D. Physical deterioration.

Answer: B. External obsolescence. 207

Question: Anna wants to operate a pottery shop on residentially zoned property. What should she request?

Answer Options: A. Special exception B. Use variance C. Spot zoning D. Grandfathered status.

Answer: B. Use variance. 208

Question: Which appraisal method is most useful for a large apartment building purchased by an investor?

Answer Options: A. CMA B. Cost C. Income D. Sales comparison.

Answer: C. Income approach. 209

Question: The government takes and demolishes homes for a landfill while paying fair compensation. The act of taking is:

Answer Options: A. Adverse possession B. Condemnation C. Eminent domain D. Encroachment.

Answer: B. Condemnation. 210

Question: Salon sinks installed by a commercial tenant are what type of fixture and property?

Answer Options: A. Leasehold/personal B. Leasehold/real C. Trade/personal D. Trade/real.

Answer: C. Trade fixture/personal property. 211

Question: If a contingency benefits both parties, it:

Answer Options: A. May be waived only by buyer B. May be waived by either party C. May be waived only with both parties’ consent D. Cannot be waived.

Answer: C. May be waived only with both parties’ consent. 212

Question: Jack receives a life estate measured by Larry’s life, with Mary receiving the property afterward. What is it?

Answer Options: A. Pur autre vie in remainder B. Pur autre vie in reversion C. Ordinary life estate in remainder D. Ordinary life estate in reversion.

Answer: A. Life estate pur autre vie, in remainder. 213

Question: Land is deeded subject to the condition that at least 10 acres remain undeveloped. What estate is created?

Answer Options: A. Fee simple absolute B. Fee simple defeasible C. Leasehold D. Life estate pur autre vie.

Answer: B. Fee simple defeasible. 214

Question: Evicting a tenant because they complained to a housing authority is:

Answer Options: A. Actual eviction B. Constructive eviction C. Retaliatory eviction D. Self-help eviction.

Answer: C. Retaliatory eviction. 215

Question: Who normally completes a required property-condition disclosure statement?

Answer Options: A. Listing agent B. Home inspector C. Seller D. Seller’s attorney.

Answer: C. Seller. 216

Question: A listing agent shows the property to a buyer client without disclosing that she represents the seller. She may be a(n):

Answer Options: A. Facilitational agent B. Designated agent C. Transaction broker D. Undisclosed dual agent.

Answer: D. Undisclosed dual agent. 217

Question: Which is a blind advertisement?

Answer Options: A. Broker omits the property address B. Broker advertises without identifying the brokerage C. Owner advertises FSBO D. Owner omits rent from a rental advertisement.

Answer: B. A broker advertisement that does not identify the brokerage.