75-Hour Broker Pre-License Midpoint Practice Exam

These questions are part of the practice quiz. Start practicing

• When a married couple sells their home after living there for five years, what is the maximum amount of capital gains they can exclude from their taxable income?
• Which of the following best defines a "short sale"?
• What does "due diligence" encompass in real estate transactions?
• What effect does a broker protection clause typically have in an exclusive right to sell agreement?
• When can a buyer claim they were under undue duress?
• How does an independent contractor broker typically earn income?
• What does "real estate syndication" involve?
• What is a real estate investment trust (REIT)?
• What is the primary goal of a real estate appraisal?
• If a house was listed for $84,900 and the seller received $71,424 after paying a 7% commission, what was the selling price of the property?
• What is meant by foreclosure in real estate?
• How is "home equity" defined?
• A borrower taking out a package mortgage would utilize which types of collateral?
• How do a listing agreement and a buyer's agency agreement differ?
• What does the term "escrow" refer to in real estate?
• What is a "deed" in real estate?
• Which type of lien allows both the real property and personal property of the debtor to be sold to pay the debt?
• What is the common purpose of Fannie Mae, Ginnie Mae, and Freddie Mac?
• What is the term for the government's right to protect the health, safety, and welfare of the public?
• What is typically required for a seller to be held liable for misrepresentation?
• Why is zoning important in real estate?
• What is the homestead exemption amount for an individual homeowner in Illinois?
• What type of real estate description outlines the property's boundaries using directions and distances?
• Which of the following statements is true regarding real estate contracts?
• What does "disclosures" refer to in real estate transactions?
• The person who is the purchaser of a property using a "land contract" is known as the?
• Which of the following pairs of terms is considered synonymous?
• What is typically a feature of a bridge loan?
• Which governmental agency is responsible for regulating the nation's money supply?
• Why is location often cited as a factor in property value?
• What is the term for a contract that has no legal effect due to lacking essential elements?
• Define "adverse possession" in real estate.
• What is the primary function of zoning laws?
• In Illinois, a broker practicing designated agency is primarily considered the agent of whom?
• When acting as the agent of the seller, a real estate broker is obligated to provide what type of service?
• In an option to purchase real estate, what is true for the optionee?
• What is the function of the Multiple Listing Service (MLS)?
• What is the purpose of a property disclosure statement?
• What is the main function of homeowner's insurance?
• In which ownership arrangement do co-owners share equal ownership and have the right of survivorship?
• The finance fee charged by the lender to originate a loan is known as a(n)?
• Which characteristic is commonly associated with a REALTOR?
• What process allows the government to take possession of property when a person dies without heirs?
• Public land use control is an exercise of which government power?
• What legal action is taken when a buyer sues a seller for contract fulfillment?
• What is the typical payment structure for transactions handled by independent contractor brokers?
• What is a key characteristic of a leasehold estate?
• Which mortgage type involves less frequent payments that cover both principal and interest gradually?
• In the context of mortgages, what does 'redemption' enable the mortgagor to do?
• Which statement correctly describes a subdivision?
• If Della accepts the lower purchase offer under family pressure, what might she later claim?
• What is an advantage of conducting a Comparative Market Analysis?
• After making the final payment on her mortgage, Linda needs to record a(n)?
• What type of insurance protects the lending institution in conventional loans?
• What is a key feature of an amortized loan?
• What can a buyer do if the seller lies about property conditions?
• Describe investment analysis in real estate.
• Which situation does NOT typically lead to the creation of an easement?
• What must a broker do if a property is listed without proper disclosure of known defects?
• Which type of financing is typically used for the purchase of a new home while waiting for a sale of the applicant's current home?
• What is the meaning of the term "rescind" in a real estate context?
• An oral lease for five years is considered to be?
• In real estate, what is a subdivision?
• How are "fair market rents" determined?
• Which of the following describes "fair market rents"?
• Under the condominium form of ownership, an owner's interest in their unit is typically what type of estate?
• Which of the following best describes "title insurance"?
• What is a title search used for?
• Why is it important for an agent to disclose every step taken in the principal's business transaction?
• Which of the following is NOT a responsibility of a real estate broker?
• The primary advantage of a cooperative ownership is that?
• An easement appurtenant is capable of doing what?
• What is the definition of a loan-to-value ratio in real estate?
• What is the broker's duty to keep the principal informed of all relevant facts in a transaction called?
• If a licensee discovers a latent defect in a property, what should they do next?
• Which type of tenancy gives each owner the right of survivorship?
• The type of mortgage that requires the borrower to pay interest only during the terms of the mortgage is...
• What feature distinguishes a straight loan from other mortgage types?
• What is the primary purpose of a listing agreement?
• What does license law forbid prior to obtaining a license?
• What is the definition of "agency" in the context of real estate?
• What right does a party have regarding an offer?
• What is the primary purpose of a property appraisal?
• What is included in a closing statement?
• What is the significance of the Homestead Act?
• Which of the following deeds should the grantor use to transfer the property without providing any warranties to the grantee?
• Which document is typically recorded to acknowledge the fulfillment of a mortgage obligation?
• When does a real estate sales contract become valid or in effect?
• What can be a consequence of nondisclosure in real estate transactions?
• What is the main purpose of an occupancy permit?
• What do "property taxes" fund?
• What defines the statute of limitations in legal matters?
• What government power allows the state to take ownership of abandoned property?
• In a real estate transaction, what does the term 'earnest money' refer to?
• In the absence of any specific agreement, which mortgage typically has priority?
• What does the Truth in Lending Act (TILA) require from lenders?
• Which factor commonly influences the selling price of a property?
• What does the acronym "REALTOR" represent?
• What is the primary role of a real estate counselor?
• What regulation requires lenders to furnish a good faith estimate of settlement costs within three days?
• How is "market value" defined in real estate?
• Which document typically outlines the financial aspects of a property sale?
• What are "fixed-rate mortgages" characterized by?
• What does the term "closing costs" mean in real estate?
• What does "staging a home" refer to?
• What type of zoning is William's antique store likely facing after the area is rezoned to residential only?
• What best describes the role of a real estate investor?
• What does a significant aspect of property management focus on?
• If a seller agrees to sell a property for less than the listing price after the listing has expired, what may happen if the broker can prove collusion?
• Which type of loan allows for interest-only payments during the term?
• How is a net listing defined in real estate?
• What is the result when a buyer counters an offer and then accepts the original offer later?
• What type of insurance does the FHA provide?
• What is meant by a "buyer's market" in real estate?
• What are mechanic's liens?
• What occurs following a successful lawsuit for specific performance?
• Which factor is commonly recognized as increasing property value?
• What is the importance of having a real estate license?
• In a condominium, swimming pools and laundry rooms are best categorized as what?
• What is a key outcome required under the Truth in Lending Act?
• Which statement best describes a voidable contract?
• What does it mean to disclose material facts?
• What type of listing agreement allows a property owner to sell their property without owing the brokerage firm a commission?
• According to the Statute of Frauds, how must contracts for the sale of real estate be executed?
• What does "equitably balancing" refer to in agency relationships?
• What is a fundamental characteristic of fixed-rate mortgages?
• Under an installment land contract, title to the property is held by the?
• What does an option in a real estate transaction provide?
• What type of interest is typically paid over the life of a fixed-rate loan?
• What describes "bait and switch" practices in real estate?
• In a tenancy in common arrangement, what happens to a deceased owner's interest?
• What is the primary purpose of an earnest money deposit in a real estate transaction?
• In real estate, what does financing primarily involve?
• What does property management involve?
• What is meant by passive income in real estate?
• What is an exclusive right to sell listing?
• What does the Federal Housing Administration (FHA) primarily do?
• Which of the following is true about mechanic's liens?
• Which situation is an example of encroachment?
• What do zoning laws regulate?
• What type of deed includes warranties of title against defects that may exist?
• What form of ownership should an unmarried couple use if they want the deceased member's share to go to their heirs?
• What qualifies as "investment property"?
• What are contingencies in a purchase agreement?
• What kind of loan is structured to facilitate construction projects?
• What type of ownership involves residents owning stock in a corporation that owns the property?
• What provides the best evidence of a buyer's intention to fulfill the terms of a real estate purchase contract?
• What is typically included in the term "closing costs"?
• Why is continuing education important for real estate brokers?
• What does a real estate agent typically do?
• Which of the following defines "closing costs" in real estate transactions?
• Which statement best describes property taxes?
• What is the primary purpose of property staging?
• Which of the following best describes market conditions in real estate?
• Which term describes evaluating a property for potential investment?
• What is the main purpose of a Comparative Market Analysis (CMA)?
• A "friendly foreclosure" can be accomplished by what means to prevent the mortgagee from taking the property?
• What does it mean to assign a contract for the sale of real estate?
• The type of mortgage loan that uses both real and personal property as security is an...
• A real estate loan payable in periodic installments that are sufficient to pay the principal in full during the term of the loan is called a(n)...
• What should a broker acting as the agent of the buyer inform the buyer about?
• What happens if a buyer withdraws a counteroffer?
• What is the concept of dual agency?
• If a property owner instructs their broker not to disclose termite issues, what should the broker do?
• What does homeowner's insurance primarily protect against?
• The right of a mortgagor to regain the property by paying the debt after a foreclosure sale is called...
• What term is used to describe the process of regaining property after defaulting on a mortgage?
• Which type of listing is prohibited in some states?
• An exclusive listing agreement serves as what type of contract for the sponsoring broker?
• In real estate transactions, what does the term 'collusion' refer to?
• What is the federal income tax exclusion for gains realized from the sale of a primary residence?
• Who is the only party from whom a licensed broker may receive compensation or commission?
• What does "real property" include?
• How many acres are contained in an area of land that is 2 miles wide and 3 miles deep?
• What are the primary responsibilities of a real estate broker?
• How is the amount of earnest money determined in a contract for the sale of real property?
• Which of the following is a role of an appraiser?
• What is the most inclusive type of real property ownership?
• What does fair housing legislation aim to prevent?
• What is defined as a leasehold estate?
• Which of the following liens is specifically created when there is a court judgment against an individual?
• What does the term "equity" refer to in real estate?
• What type of property is typically considered as "investment property"?
• What is the primary purpose of a title insurance policy?
• What effect do higher interest rates have on the real estate market?
• What does it mean if a contract is voidable?
• What is the primary goal of a property appraisal?
• What is the difference between a land lease and a traditional lease?
• Which of the following is an example of private land use control?
• What law requires that finance charges be presented as an annual percentage rate?
• What is the main function of a real estate appraiser?
• What is meant by "gross rent multiplier" (GRM)?
• What is a "short sale" in real estate?