Applied Measurement Professionals (AMP) Real Estate Salesperson Practice Exam

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• What does a title search in real estate determine?
• What should a broker who represents the buyer do if the seller's listing price seems unrealistic?
• The city council prohibits skateboarding in public areas after accidents occur. This action is an exercise of the city's:
• What advantage does a reverse mortgage provide to elderly homeowners?
• A property owner is selling a house built before 1978 without knowledge of lead-based paint use. What must the seller provide?
• What does "deposit" mean in the context of real estate transactions?
• What is the primary function of a real estate broker?
• What is the primary role of a real estate attorney in a transaction?
• The seller delivers the deed and the buyer pays the purchase price in the step referred to as?
• If a buyer arranges for a seller's pet to be kidnapped until the seller accepts the offer, what happens to the contract after ratification?
• What power allows the government to enact legislation aimed at public protection?
• What is typically required from buyers in a standard real estate transaction?
• Which of the following actions is unlawful under the Sherman Antitrust Act?
• What is the main purpose of a zoning ordinance?
• Which of the following is an example of a physical encumbrance on property?
• What is the "earnest money deposit" in a real estate transaction?
• What is the key characteristic of "tenancy in common" ownership?
• What type of loan allows a developer to reduce the encumbrance on a subdivided tract of land by paying a proportional part of the principal?
• What does the abbreviation "MLS" stand for in real estate?
• What is defined as a "short sale" in real estate?
• When representing a buyer, which information does the agent NOT need to disclose to the seller?
• What is the primary purpose of a home inspection in real estate?
• Who does mortgage insurance protect in case of loan default?
• As the buyer's agent, if you only show properties to a client from China in areas heavily populated by Chinese residents, have you violated any fair housing laws?
• If a buyer seeks a mortgage for a single-family home, which institution is he or she least likely to obtain a mortgage from?
• What does a seller's disclosure statement provide to potential buyers?
• How much of Shari Larson's next monthly payment will be applied to her mortgage principal, if the balance is $185,500 with an interest rate of 8.5%?
• Which financial document details the terms of a real estate loan, including the interest rate and repayment schedule?
• For a real estate contract to be enforceable, which of the following is required?
• What principle affects the value of a single-family home in an industrial area?
• What is the formula for determining the value of investment property?
• When calculating the capital gain from selling a principal residence, what must be deducted from the sales price?
• What does a property management agreement typically include?
• What is the primary purpose of real estate licensing laws?
• Which federal law prohibits discrimination in housing based on several factors, including race and color?
• What is the gross income multiplier (GIM) for a commercial building that produces an annual gross income of $136,000 and is sold for $888,000?
• When may a broker appoint different licensees to communicate with the seller and buyer?
• What is the significance of "closing" in a real estate transaction?
• How is an "acceleration clause" used in mortgage agreements?
• What type of agency relationship occurs when a broker represents both the buyer and seller?
• After Dave Gates died without a will, his children acquired his real estate holdings through what legal process?
• What is the maximum fine for calling a phone number listed on the Do-Not-Call List once?
• In a real estate context, what does the acronym LTV represent?
• What is the monthly PITI payment for a buyer offering $295,000 with a 30% down payment?
• What does "situs" refer to in the context of real estate?
• If a person dies without a will and no heirs, to whom does the property pass?
• What is a defining feature of a short sale?
• What is the most efficient lot size when subdividing 3 acres into 5 equally sized lots?
• Charlie is allowed to continue his business in a zoned office area because he has what type of use?
• A contract holder suspects the seller may sell to another buyer. What action should they take to preserve their rights?
• Which appraisal approach utilizes a capitalization rate?
• How much commission will Salesperson Pelke receive from a $150,000 property sale with 6% commission?
• What does the term "foreclosure" signify in real estate?
• What type of payment must a buyer make after 5 years if the seller requires it on a 30-year amortization schedule?
• What are property taxes generally based on?
• What type of mortgage allows the borrower to make interest-only payments temporarily?
• What type of listing agreement gives the broker the right to market the property exclusively but allows the owner to sell it themselves?
• Which of the following criteria should a property manager avoid using during the tenant selection process?
• Which document is essential for transferring ownership of real property?
• What is the legal term for the right to use someone else's land for a specific purpose?
• Which of the following describes a nonconforming use in real estate?
• Which type of deed provides the least protection to the grantee?
• What does "time is of the essence" imply in real estate contracts?
• What is the effect of cap rates on real estate valuations?
• Which of the following is NOT a participant in the secondary mortgage market?
• Which factor is NOT considered when analyzing the performance of a rental property?
• Property management fees are typically based on which financial aspect of a property?
• If a lender agrees to an 80% loan-to-value (LTV) ratio for a property appraised at $135,000, how much is the loan amount?
• What type of agreement is typically binding even if the principal dies?
• In a scenario where you are the buyer's agent and also representing clients selling their home, how should you view your agency relationship?
• If a tenant remains in a property after lease expiration without permission, how should the property manager respond?
• What remains the broker's responsibility even if a salesperson is hired as an independent contractor?
• What is the difference between "actual authority" and "apparent authority" in agency relationships?
• What type of ownership allows for shared use but restricts rights of transfer?
• What distinguishes MIP from PMI in the context of mortgage insurance?
• Which of the following is most likely to be considered incurable depreciation?
• When is a balloon payment typically required in a mortgage?
• How is "market value" best defined?
• What is the purpose of a title search in a real estate transaction?
• What recourse do buyers have if they discover after closing that their new home is in a different school district than stated?
• To increase the effective yield on a $250,000 loan by 1/4% with one discount point equating to an increase in APR of 1/8%, how much would the lender collect in origination fees?
• Local building codes require any fence to be built at least ten feet in from the property lines. If Tim wants to build a fence right on the property line, he should ask the zoning board for a?
• A lender is willing to provide a loan based on certain terms. If a property is appraised at $140,000, what will the loan amount be under those terms?
• How do local zoning laws impact real estate transactions?
• Which property valuation method considers the income generated by the property?
• What does "escrow" refer to in a real estate transaction?
• What piece of information about a property is prohibited from disclosure to a prospective buyer?
• In an option contract, what advantage does the buyer have?
• In real estate, what does the term "due diligence" refer to?
• If a buyer prepares two offers and instructs an agent to present the lower offer first, what is the agent's obligation?
• What must a real estate salesperson do if they discover the presence of lead-based paint in a property?
• What is the value of a property that generates a net operating income of $36,000 with a cap rate of 4.5%?
• What role does an appraiser play in a real estate transaction?
• Which of the following is NOT included in potential gross income when estimating the value of an investment property?
• In what capacity does a salesperson operate when listing a condominium for sale?
• What financial tool can elderly homeowners use to access equity without monthly payments?
• Which federal agency oversees compliance with the Truth in Lending Act?
• As an agent for the seller, what can a real estate broker do?
• What is the key requirement under the federal lead-based paint disclosure law?
• What are real estate licensees required to disclose early in a transaction?
• What establishes the tenant's right to occupy a property in a leasehold estate?
• What is the primary function of a closing statement?
• What is a comparative market analysis (CMA)?
• What is referred to as "leasehold estate"?
• What type of lease guarantees the tenant a fixed payment with a specified term and no increase?
• What is the typical role of earnest money in a real estate transaction?
• What must a listing agent disclose to potential buyers regarding a property?
• What does the term "principal" refer to in a real estate context?
• What does the VA set limits on regarding loans?
• Which of the following is NOT a characteristic of real property?
• Which of the following clauses allows a mortgage lender to call a loan due upon selling the property?
• What can a grantor do if a property use restriction is violated?
• What is the primary purpose of an appraiser's assessment of property value?
• What is the “listing agreement” in real estate?
• Who is primarily responsible for ensuring that closing costs are paid in a real estate transaction?
• What term describes an agreement among property owners to restrict property use to maintain neighborhood standards?
• What happens to a listing agreement if the owner dies before it expires?
• What action is considered a violation of fair housing laws when advising a friend about property values?
• What financing method allows a buyer to pay for a home over time while using the property as collateral?
• What is a real estate investment trust (REIT)?
• What does "tenancy in common" mean?
• What is typically required for a valid real estate contract?
• What is the primary responsibility of a real estate broker?
• In real estate, what does the term "listing" refer to?
• What is meant by "due diligence" in real estate transactions?
• What does "hypothecation" refer to in the context of loans?
• The type of listing agreement that provides the least protection for the listing broker is?
• What term describes an agreement between two parties regarding the use of a property?
• What advantage does hypothecation provide to a borrower?
• RESPA requires all of the following EXCEPT that?
• In real estate transactions, what role does market value play?
• A property sold for $10,560,250 has dimensions of 1510' x 2425'. What is the price per square foot?
• What is the term for the legal process of creating a binding agreement between a buyer and seller?
• If a buyer wishes to end a contract and locates a qualified person to enter into a new agreement with the seller, what is the process called?
• What is a common consequence of a default in a real estate transaction?
• What is the best assurance for a seller's agent to avoid charges of misrepresentation regarding property defects?
• Which document is essential for establishing the rights and responsibilities of parties in a real estate transaction?
• What is the correct formula for estimating value using the cost approach?
• What approach is typically used to appraise land in the cost approach?
• How much does the seller owe the buyer in prorated rent if the rental property is sold on the 6th of September and rents for $2,800 per month?
• Which of the following practices would NOT be permitted under the Federal Fair Housing Act?
• Under an exclusive agency listing agreement, when is the listing agency entitled to a commission?
• What should a property manager analyze to ensure optimal rental property performance?
• Which of the following describes joint tenancy in real estate?
• Which of the following is included in escrow money?
• What is the form of co-ownership where there may be many owners but only one or two make decisions?
• Which of the following best describes effective gross income?
• What is the key difference between open-end and closed-end mortgages?
• Which agency provides a buyer with a fiduciary duty in a real estate transaction?
• A building permit may be issued without question even if the proposed structure violates existing?
• A passenger gives instructions to a taxi driver regarding their destination. What type of agreement have they entered into?
• Who does a property manager have a fiduciary obligation to?
• What must Broker Murphy do with the $5,000 earnest money received for his listing?
• In real estate contracts, what does a "contingency" refer to?
• Before tenants can move into a new office building, which of the following is NOT a necessary consideration?
• What is the primary obligation of a real estate broker acting as the agent of the seller?
• What do property disclosures typically include?
• What happens to the title of a property when the owner builds an addition without a permit?
• An investor criterion for a home mortgage specifies a loan-to-value ratio of 90% of an appraisal valued at $180,000. If a buyer qualifies for a loan of $145,000, how much of the purchase will be financed by the investor?
• How can misunderstandings with tenants typically be avoided?
• Why might a buyer choose to waive inspection contingencies?
• What is the purpose of earnest money in a real estate transaction?
• What is an investment property?
• Net operating income is calculated by which of the following methods?
• Property taxes are paid annually in November for the preceding calendar year. If the closing is held on August 15, with property taxes of $3,250 prorated, which entry is made on the settlement statement?
• In the event of a foreclosure, which lien has the lowest priority?
• What type of listing agreement gives one broker the exclusive right to market a property?
• What type of hazardous substance is radon classified as?
• The lender's underwriting criteria allows a housing expense to income ratio of 33% and a total debt service ratio of up to 38%. With a gross annual income of $100,000, what is the maximum PITI the lender will approve?
• What is a property management agreement?
• What role does the escrow account serve in a real estate transaction?
• When a seller offers a riding lawnmower to a cooperating salesperson, which statement is NOT true?
• When can a buyer generally waive inspection contingencies?
• For the purpose of valuing properties, how is net operating income used?
• Which of the following factors does NOT determine whether property is considered real or personal?
• The Smiths propose to buy the Browns' house for $125,000. If the Browns accept with a provision for a closing date of June 16 instead of June 15, what can the Smiths do?
• A tax bill computed based on cost per front foot is classified as which type of tax?
• Which of the following is an example of a unilateral contract?
• How is residential property commonly classified in real estate?
• What is meant by "liquidation value" in real estate?
• What method is NOT accepted for determining reproduction cost by an appraiser?
• Which party is most likely to sue for specific performance in a real estate transaction?
• What is the highest form of ownership recognized by law?
• What legal principle requires a seller to address known defects in a property?
• Which of the following is NOT typically associated with a mortgage?
• Which of the following is the most important factor for a lender in determining creditworthiness?
• A veteran who receives a guaranteed VA loan is borrowing the money from?
• What does "full-service brokerage" provide?
• What must a listing agent do if a seller indicates they might accept a lower price than the listed amount?
• What happens to George's interest in a jointly owned property if he dies and there are no other co-owners?
• The land between a large factory and a residential neighborhood has been zoned for use as a park or playground. This is an example of a?