Real Estate Exam 2024 - Real Estate Exam Practice You Need To Pass

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Introduction

Introduction

Passing the real estate exam can be a daunting task. In fact, only about 50% of examinees pass the real estate exam on their first try. Comprehensive preparation is key to success. Exam Scholar Real Estate Edition, renowned as the best real estate exam prep service for seven consecutive years, offers unmatched tools and resources to boost your chances of passing the exam. Use this guide to familiarize yourself with possible questions and answers that may appear on your real estate exam.

Question 1

Scenario: A person has no cash on hand but offers a personal note payable in 60 days as a deposit on real property.

Options:

  • A: An unacceptable form of payment.
  • B: Acceptable if the seller is informed beforehand by the agent.
  • C: Void.
  • D: Both A and C.

Answer: B. The personal note is an acceptable form as a deposit, but the seller must be advised of this before the agent can accept it.

Question 2

Scenario: A mortgage company originates loans that are then placed with lending institutions of whom the company has a pre-existing relationship.

Options:

  • A: Corrupt.
  • B: A mortgage broker.
  • C: An intermediary.
  • D: A distributor.

Answer: B. A mortgage broker is a mortgage company that originates loans and places them with lending institutions with whom they have pre-existing relationships.

Question 3

Scenario: The difference between the interest rate and the index on an adjustable-rate mortgage.

Options:

  • A: Margin.
  • B: Differential.
  • C: Substitution rate.
  • D: None of these.

Answer: A. The margin remains stable over the loan's life and represents the difference between the index and the interest rate on an adjustable-rate mortgage.

Question 4

Scenario: An individual represents a firm that makes loans on real property.

Options:

  • A: Lender.
  • B: Broker.
  • C: Intermediary.
  • D: Attorney in practice.

Answer: A. Both the individual and the institution can be called a lender when making loans on real property.

Question 5

Scenario: A firm makes loans on real property based on an individual's creditworthiness.

Options:

  • A: Creditor.
  • B: Lender.
  • C: Loner.
  • D: Lendy.

Answer: B. The firm making loans based on the individual's creditworthiness is called a lender.

Question 6

Scenario: A written agreement between the property owner and tenant outlining the conditions under which the tenant may possess the property.

Options:

  • A: A lease.
  • B: A written document describing the length of time the tenant may occupy the property.
  • C: An oral agreement to occupy the property for more than one year.
  • D: None of these.

Answer: A. A lease is a written agreement outlining conditions under which the tenant may possess the property.

Question 7

Scenario: A unique mortgage that allows the lender to make payments to the homeowner, converting equity into cash.

Options:

  • A: Reverse acral mortgage.
  • B: Reverse annuity mortgage.
  • C: Reverse home equity conversion.
  • D: Annuity payment conversion.

Answer: B. A reverse annuity mortgage or home equity conversion mortgage allows the homeowner to collect payments from the lender, converting home equity into cash without needing repayment until the borrower vacates the property.

Keywords

Keywords:

  • Personal Note
  • Mortgage Broker
  • Adjustable Rate Mortgage
  • Lender
  • Lease
  • Reverse Annuity Mortgage
  • Real Estate Exam
  • FHA Appraisal
  • Conditional Commitment
  • Acceleration Clause
  • Real Property Boundaries
  • Seller Financing
  • Flood Insurance
  • Purchase Offer
  • Lease Agreement
  • Compensation
  • Quiet Enjoyment

FAQ

FAQ:

  1. Q: What is the main activity of the FHA?
    A: The main activity of the FHA is to insure Residential Mortgage Loans made by private lenders.

  2. Q: What is a reverse annuity mortgage?
    A: A reverse annuity mortgage, also known as a home equity conversion mortgage, allows a homeowner to receive payments from the lender, converting home equity into cash, to be repaid when the homeowner vacates the property.

  3. Q: What is an acceleration clause in real estate?
    A: An acceleration clause allows the lender to declare the entire loan amount due immediately if the borrower defaults on payments.

  4. Q: What actions can a person take if they face discrimination in real estate?
    A: A person can take private action in a state or federal court if they face discrimination.

  5. Q: What must a buyer do if the seller accepts their offer after the specified acceptance period?
    A: The buyer may demand the return of their deposit if the seller accepts the offer after the specified acceptance period.

  6. Q: When is the right to exclude enforceable in real estate?
    A: The right to exclude is enforceable when the property has no trespassing signs posted and is completely enclosed, such as with a fence.

By utilizing these comprehensive study materials and understanding key concepts, you can significantly improve your chances of passing the real estate exam on the first try.