1. All of the following are economic characteristics of land except:
2. If you purchase a property and discover that the property use violates the local zoning ordinance you should:
a. let the title company take care of it
b. file for a conforming use permit
c. request a variance from the city
d. apply for a pre-existing condition permit
3. From an appraiser’s point of view, what form of depreciation is demonstrated when a builder uses inferior
products (i.e. roofing or siding) to produce less expensive housing?
a. external obsolescence
b. economic obsolescence
c. physical deterioration
d. functional obsolescence
4. When a company’s profits in a particular industry are high it is likely that new companies will move into the same
market to obtain a share of those profits; this is a result of what appraisal principal?
a. supply and demand
b. increasing and diminishing returns
d. highest and best use
5. How would you, as a licensee, advise your client to take title to their new home
a. In severalty
b. As joint tenants
c. As tenants in common
d. none of the above
6. If the Federal Reserve wants to loosen the nation’s money supply they would do which of the following?
a. sell government bonds
b. reduce the reserve requirement
c. increase the discount rate
d. close the discount window
7. When transacting a qualifying interstate land sale a broker must provide the buyer with a:
b. environmental assessment
c. seller’s disclosure of property condition
d. property report
8. If a title company pays you for a claim against your title policy and later wins a civil suit to recover their money, the
title company is entitled to keep the money because of which clause in the title policy?
9. What law limits the amount of money that a lender may keep in an escrow or impound account on behalf of the
a. Fair Credit Reporting Act
b. Regulation “Z” – TIL
d. Equal Credit Opportunity Act
10. Which of the following is (are) an advantage(s) of investing in real estate:
a. Tax shelter for income
b. Leverage is often used
c. A hedge against inflation
d. all of the above
|ARE YOU READY FOR THE STATE EXAM?
There are 10 sample questions below they will give you
an idea of your level of knowledge.
These are general questions that should have been
covered in your Principles I or II class.
Answer these now and write down your answers - then
check your answers against the answer key that can be
found at the bottom of the "Contact Us page".