Real estate exam practice questions answers

1) How can city tax one-time improvements in a newly annexed neighborhood? a) Property tax b) Income tax c) Special assessment tax d) State tax Answer : c 2) Which is used to increase the yield to lender and lower buyer payment during mortgage process? a) Discount points b) Lower points c) Smaller points d) Higher points Answer : a 3) How is an all-risk policy covering structures, improvements, personal property meeting most lender's requirement for minimum coverage referred to as? a) HO-4 policy b) HO-3 policy c) Special hazard insurance d) both b and c Answer : d 4) How is dual agency also referred to as? a) limited agency b) double agency c) buyer agency d) seller agency Answer : a 5) In which agency relationship does a real estate agent represent only buyer or a seller of a piece of property keeping their best interests in mind while making this transaction? a) limited agency relationship b) dual agency relationship c) single agency relationship d) double agency relationship Answer : c 6) when will real estate agents earn their money on a property transaction? a) property is sold or exchanged b) property is under contract c) property is appraised d) property home inspection is complete Answer : a 7) In a transaction brokerage what does a broker do? a) keeps sellers best interest in mind and represents them b) represents none of them but provides general information and service to both buyer and seller c) keeps buyer's best interest in mind and represents a buyer d) represents both buyer and seller Answer : b 8) Can a property manager make capital improvements to landlord's property? a) Yes, they have the right to do so b) Yes, under special conditions c) Yes, with consent from landlord d) No, they only make advise on this and dont perform these Answer : d