CAS 45-Hour Real Estate Principles Course Practice Test

These questions are part of the practice quiz. Start practicing

• What is a potential outcome if heirs cannot agree on the use of inherited property?
• Which of the following is true about zoning?
• What does "equity" refer to in real estate?
• What trait do licensees exhibit when they follow through on clients’ requests and arrive prepared?
• Which of the following best indicates that Harold is Kelsey's seller client?
• What is the term for non-lawful possession after a lease has expired?
• What is a "real estate investment trust" (REIT)?
• What is an "escape clause" in a real estate contract?
• What is a valid reason for a tenant to deny a landlord access to the property?
• Which source may provide tenants with rights regarding rental disputes?
• What might Shana receive from her mother as part of a devise?
• What is the maximum amount that will be paid out of the Recovery Account for a transaction?
• In a "seller's market," what is the primary condition?
• What is a significant factor in determining if a property can obtain insurance?
• Zack's actions of putting down a $12,000 deposit instead of $10,000 illustrate what concept?
• What might happen if a client terminates a listing agreement before its expiration?
• What duty has Newt allegedly breached regarding the earnest money?
• What must you do to convert a decimal to a percentage?
• Which of these statements about mobile home tenancies is true?
• What is one of the most fundamental fiduciary duties that underpins all other duties?
• What is typically one of the first considerations in a property appraisal?
• What are the three main types of property ownership?
• What is the primary duty of an agent during a real estate transaction?
• What is one common measure a builder might take to improve a site's drainage?
• Carmen must adhere to what when applying for her next construction project?
• What are "closing costs"?
• A comparable residential property sold one month ago for $300,000. If this comparable is on a busy street and the subject property is on a quiet corner lot, what should you do to determine the subject property's market value?
• Commercial lease escalation clauses typically do not take effect until after which period?
• If a landlord refuses to rent an apartment to two single women living together, this is discrimination based on which federally protected class?
• Under which of the following circumstances would the client and agent most likely mutually agree to terminate a listing?
• Which document is a legal written agreement outlining the purchase price and terms for the transfer of real property?
• What is a "right of first refusal"?
• Homes built in which one of the following years are more likely to have asbestos present?
• What is "title insurance" designed to protect against?
• What is a "force majeure" clause in real estate contracts?
• When a buyer inspects a property sooner than required, what is this an example of?
• What is a possible consequence of not complying with a client's requests as a real estate professional?
• Which of the following is considered an example of personal property?
• What does a lender consider a HELOC balance of less than $50,000?
• What does "property management" entail?
• What does an appraisal value represent in a home sale?
• What does "market analysis" aim to achieve?
• Which act prohibits housing financial discrimination based on protected class make-up?
• The Arbor Heights community's zoning ordinance that requires group homes designated for disabled citizens to be situated outside of city limits violates which act?
• Using the calendar year proration method, what will the seller owe at closing if the daily property tax rate is $1.23 and the seller hasn't made any payments by August 31?
• What does the "lease option" allow a tenant to do?
• Which scenario allows a consumer to use Roth IRA funds for a down payment on a home purchase?
• What is the significance of property taxes?
• What type of zoning prohibits certain materials in the construction of buildings within a historic district?
• Elizabeth's property is encumbered by an easement in gross with which of these entities?
• In which pricing determination method does the real estate professional typically just drive by the property and take photos?
• What are "contingencies" in a real estate contract?
• If you have a listing agreement with Sam, what is Sam's relationship to you?
• What legal concept allows a property owner to seek compensation if their property is damaged by a neighbor's actions?
• What is the primary purpose of a mortgage?
• What does the term "para professional" refer to in real estate?
• When property is divided due to disagreement among heirs, the property is referred to as what?
• What is Susanna's primary role as an appraiser?
• How is "real property" defined?
• What is meant by "fiduciary duty" in agency relationships?
• Which term refers to the common areas in a condominium project?
• What is the first step in the subdivision development process?
• What is the main difference between a buyer's agent and a seller's agent?
• What does it mean if a property has constructive notice?
• Which of the following questions can be answered by an agent in a dual agency transaction without breaching duties to either client?
• Which legal document is used to transfer ownership of real estate?
• What type of common interest subdivision gives owners exclusive rights to a unit and shared interest in common areas?
• What is one key characteristic of a net lease?
• In real estate terms, what does the abbreviation “LTV” stand for?
• What type of mortgage protects the lender from claims of not complying with ability-to-repay requirements?
• What might Micah risk if he fails to fulfill his duty of obedience to his client?
• What is a freehold property ownership?
• What is the length of each side of a square room that has an area of 144 square feet?
• If you fail to notify your client of a conflict of interest, in addition to the duty of loyalty, what other duty have you breached?
• What type of lease requires the tenant to pay fixed rent along with insurance and other expenses?
• In a transaction where the Simpsons are buying the Martins' house for $415,000, how much will they owe in prorated closing costs based on the prepayment of property taxes and insurance?
• What is the primary benefit of a VA-guaranteed loan for eligible veterans?
• In what scenario would an agent experience a conflict of interest?
• What is the "Fair Housing Act"?
• What do title insurance policies typically protect against?
• Jacob is a developer who purchased 78 acres and subdivided it into half-acre lots. His decision to install sewer and underground electric reflects which economic characteristic of real property?
• Which gas is commonly referred to as the "silent killer" due to its odorless and tasteless properties?
• In a triple net lease, what expenses does the tenant typically pay for?
• What is a "home inspection"?
• What does it mean when Marsten cannot distribute his grandmother's estate property until after the will goes through probate?
• Which well-known economic principle states that a property's value is determined by what it would cost to purchase a similar property?
• In the context of real estate transactions, what is a common consequence of non-lawful possession?
• If a seller fails to install a smoke detector and does not provide a smoke detector disclosure to the buyer, what is the maximum damage amount that may apply?
• Which of the following terms describes a temporary suspension of a real estate license?
• What is a lease?
• What is "zoning" in real estate?
• Which type of lender is typically characterized by offering lower fees compared to others?
• What is Kirk's best option if he can't obtain a qualified mortgage due to his debt-to-income ratio?
• What test is applied to determine if an item attached to a property is considered a fixture?
• What are the risks associated with real estate investing?
• What is the primary function of a real estate appraisal?
• What action can a property owner take to prevent unauthorized work from leading to mechanic's liens?
• What is it called when a tenant repays overdue rent to retain their dwelling?
• Which mortgage type is considered safer for lenders, ensuring compliance with ability-to-repay standards?
• What describes the key difference between reversionary interest and remainder interest?
• Which act allows individuals experiencing housing discrimination to file a complaint?
• What happens to real property when a tree is cut down from it?
• Which of these statements about responding to a breach of contract is blatantly false?
• What do "appraisal contingencies" allow a buyer to do?
• How does an "adjustable-rate mortgage (ARM)" function?
• Which of these circumstances does NOT require agent disclosure?
• In the context of real estate, what does "improvement" refer to?
• What key principle does property management revolve around?
• Why are limited liability companies and limited liability partnerships considered favorable forms of business?
• What term is used to describe the rights of mobile home tenants outlined by state law?
• What are the common types of residential real estate?
• What does "escrow" mean in real estate transactions?
• What organization provides title insurance that shows the legal description of the property and standard items it covers?
• What is a significant health concern associated with lead exposure in young children?
• What does "closing" refer to in a real estate transaction?
• Rental properties that are less than ______ are exempt from the Tenant Protection Act of 2019.
• What happens when a fixture is removed from a property?
• Which phrase describes the act of correcting a contract that contains a mistake?
• Your buyer client, Max, just signed a purchase agreement for a $520,000 home with a 60% LTV ratio. What loan origination fee can Max expect to pay at closing if his lender charges a 1.5% fee?
• Freddie Mac (FHLMC) is the institution to which financial institutions with federal guarantees can sell mortgages. What does FHLMC stand for?
• Select the correct definition for "reformation of a contract."
• What requirement does "real estate disclosure" impose on sellers?
• Which factor can play a crucial role in a buyer's ability to secure financing?
• Where can a commercial landlord in California find information about their rights and responsibilities?
• Which of the following describes tenants in common?
• What does being named executor of a will mean for Trinity?
• Is Jillian required to provide Anthony with an agency disclosure form as part of her duties?
• What does "dual agency" in real estate refer to?
• What type of right has Rancher Ross inadvertently created by selling his property's mineral rights?
• What does "eminent domain" allow the government to do?
• What is the primary purpose of a reversionary interest in real property?
• To convey real property, which document is required?
• What is the primary purpose of a real estate investment analysis?
• Which of the following best describes 'relief from forfeiture' in rental agreements?
• What is the primary goal of real estate law?
• Which of these situations represents a unilateral contract?
• What is "rehab" in real estate terms?
• What does constructive notice to the public of real property pertain to?
• What is the primary role of a real estate appraiser?
• How can improving a credit score benefit a buyer?
• What does "due diligence" involve in real estate transactions?
• What is the purpose of property disclosure statements?
• Which of the following best describes earnest money?
• What type of will did Roberta create with an attorney?
• What is the primary purpose of real estate law?
• What is the difference between "listing" and "selling" a property?
• For an active duty member of the U.S. Air Force, which type of mortgage is most advantageous if the individual meets the requirements?
• Which agency applies the "target" designation to a dwelling and has set specific requirements for lead abatement and remodeling of these homes?
• What is the main purpose of a real estate contract?
• Which of the following would NOT be considered a prime lender?
• What is a "purchase agreement"?
• What does "foreclosure" mean?
• What role does a title company play in a real estate transaction?
• Which of the following is a typical covenant included in a mortgage document?
• If your license is revoked, what must you do to obtain a new one?
• Which of the following best describes a "dual agency" situation?
• What is the primary purpose of a deed of trust in real estate transactions?
• What is required for a partnership to legally conduct real estate activities?
• Which covenant term indicates that the grantor has both the legal capacity and title to convey?
• What term describes the fair market value of a property?
• What term describes a landlord's failure to give notice before entering a rental property?
• What is a "short sale"?
• What characterizes a "buyer’s market"?
• What amount will the buyer's lender use to calculate the loan-to-value ratio in the case of Jeffrey's house sale?
• Whose responsibility is it to determine liability for a person's injury on the premises?
• In which scenario would a broker likely conduct a broker's price opinion?
• Which reason justifies the act of reformation in contract law?
• What type of lien is placed involuntarily on property received by a deceased person’s heirs?
• What requirements must a contractor applicant fulfill to obtain a license?
• Which of the following indicates a legal transfer of ownership?
• What is the primary purpose of a listing agreement?
• To determine the market value of a property with fewer amenities compared to a comparable property, what should you do?
• What does a tenant in a triple net lease NOT pay for?
• Select the statement that accurately reflects the type of deed used for the transfer.
• What does "MLS" stand for in real estate?
• What aspect is evaluated when an appraiser determines the insured value of a property?
• What is an "open house"?
• What type of mortgage covenant often includes the obligation to maintain insurance on the property?
• Which institution provides loans insured by federal agencies, allowing them to sell the mortgages they issue?
• What is the role of a closing statement in a real estate transaction?
• What is included in a feasibility study during the market study step of development?
• Who is typically responsible for property assessments?
• What does "capital gains tax" involve?
• How much of the first monthly payment on a $750,000 loan at a 5.75% interest rate is allocated to interest?
• A licensee must ensure which of the following for a buyer client?
• What does "fair market rent" refer to?