Question: Which lease is most commonly used for retail space?

Answer Options: A. Gross B. Land C. Net D. Percentage.

Answer: D. Percentage lease. 182

Question: Caleb may work with multiple buyer brokers, and Mona is paid only if she is procuring cause. What agreement is this?

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

Answer: D. Nonexclusive buyer agency agreement. 183

Question: When must a licensee generally disclose agency representation to a buyer?

Answer Options: A. After receiving confidential information B. After the first showing C. At first substantive contact D. Before communicating acceptance.

Answer: C. At first substantive contact. 184

Question: Must a broker disclose that someone died of AIDS in the listed property?

Answer Options: A. No voluntary disclosure, but disclose if asked B. No, the law does not allow the disclosure C. Yes, if within three years D. Yes, as a material fact.

Answer: B. No, the law does not allow that disclosure. 185

Question: A seller wants to net $160,000, has $181,800 in payoff and fees, and pays 7% commission. Required sale price?

Answer Options: A. $341,800 B. $358,726 C. $367,527 D. $376,060.

Answer: C. $367,527. 186

Question: A $320,000 purchase includes 20% down, three points on the loan, 2% buyer-agent commission, $2,800 costs, $8,000 earnest money, and a $2,420 tax credit. Cash to close?

Answer Options: A. $69,180 B. $70,460 C. $72,380 D. $78,460.

Answer: B. $70,460. 187

Question: A latent defect is one that:

Answer Options: A. Does not affect value B. Has been repaired C. Is hidden D. Is visible to an observant buyer.

Answer: C. Is hidden. 188

Question: Jermaine signs a five-year straight note. What happens at the end?

Answer Options: A. Loan is fully paid B. Balloon payment of principal C. Monthly payments rise D. Rate adjusts.

Answer: B. Balloon payment of principal. 189

Question: Jermaine signs a five-year straight note. What happens at the end?

Answer Options: A. Loan is fully paid B. Balloon payment of principal C. Monthly payments rise D. Rate adjusts.

Answer: B. Balloon payment of principal. 190

Question: The most probable price under competitive, open-market, fair-sale conditions is:

Answer Options: A. Value in use B. Market value C. Liquidation value D. Assessed value.

Answer: B. Market value. 191

Question: A summary of a property’s title history is called a(n):

Answer Options: A. Abstract of title B. Chain of title C. Lis pendens D. Title-insurance policy.

Answer: A. Abstract of title. 192

Question: Which expense is not included in PITIA?

Answer Options: A. HOA fees B. Homeowners insurance C. Property taxes D. Utilities.

Answer: D. Utilities. 193

Question: A seller keeps the buyer’s $8,000 earnest money as agreed compensation for breach. What is this?

Answer Options: A. Compensatory damages B. Consideration C. Liquidated damages D. Novation.

Answer: C. Liquidated damages. 194

Question: A new mortgage loan is generally shown on the buyer’s settlement statement as a:

Answer Options: A. Credit to buyer B. Credit to seller C. Debit to buyer D. Debit to seller.

Answer: A. Credit to buyer. 195

Question: A metes-and-bounds description always ends at the:

Answer Options: A. Fixed monument B. Range/base-line intersection C. Point of beginning D. Primary deviation.

Answer: C. Point of beginning. 196