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CONNECTICUT REAL ESTATE PRACTICE EXAM ACTUAL
QUESTIONS & VERIFIED ANSWERS FOR GUARANTEED PASS
"1. A broker's office policy is that a sales associate's share of a commission is 65%. What is the sales associate's compensation if the sales price of a property is $195,000, the broker is entitled to a 5.5% commission, and there is no cooperating broker? a. $697. b. $6,971. c. $8,872.
d. $69,712.50 - CORRECT ANSWER b. $6,971.25"
"2. An investment property now worth $180,000 was purchased seven years ago for $142,000. At the time of the purchase, the land was valued at $18,000. Using a 39-year life for straight-line depreciation purposes, the present book value of the property is a. $95,071.35. b. $113,071.00. c. $119,743.58.
d. $126,000.50. - CORRECT ANSWER c. $119,743.58"
"3. An owner of a ranch enters into a sale-and-leaseback agreement with a buyer. Which statement is TRUE of this arrangement? a. The buyer is the lessor. b. The owner retains title to the ranch. c. The buyer receives possession of the property.
d. The owner is the lessor. - CORRECT ANSWER a. The buyer is the lessor."
"4. A real estate broker acting as a property manager leased a building for 10 years at an annual rent of $48,000. The will receive a commission of 7.5% for the first five years, 5% for the next three years, and 3.5% for the final two years. What will the broker's gross income be from this commission over the life of the lease? a. $18, b. $25, c. $28,
d. $30,000 - CORRECT ANSWER c. $28,560"
"5. If the quarterly interest on a loan at 5.5% is $450, the principal amount of the loan is a. $8,181. b. $9.900. c. $16,636.
d. $32,727. - CORRECT ANSWER d. $32,727."
"6. If a mortgage loan is 70% of the appraised value of a house and the interest rate of 5% amounts to $500 for the first month, the appraised value of the house is a. $14,285. b. $120,000. c. $165,428.
d. $171,428. - CORRECT ANSWER d. $171,428."
"7. If the borrower paid $189.06 interest last month on a $27,500 loan, what is the interest rate? a. 7% b. 7 3/4% c. 8 1⁄4%
d. 8 1⁄2% - CORRECT ANSWER c. 8 1/4%"
"8. Which of the following is an example of involuntary alienation? a. Selling a property to pay off debts b. Having a piece of land sold for delinquent taxes c. Giving a piece of land to the park district.
d. Letting another person plant crops on an unused portion of a piece of land - CORRECT
ANSWER b. Having a piece of land sold for delinquent taxes"
"9. Grantee is to a deed as devisee is to a a. will. b. trust. c. estate.
d. leasehold. - CORRECT ANSWER a. will."
"10. What will happen to real estate when its deceased owner did NOT write a will and no heirs can be located? a. The ownership will escheat. b. The ownership will pass by devise. c. The ownership will revert to the previous owner.
d. The courts will seize the ownership. - CORRECT ANSWER a. The owndership will escheat."
"11. A house was listed for sale at $184,900. The seller received $171,000 after paying the broker a 5% commission. What was the selling price of the property (rounded to the nearest dollar)? a. $176, b. $178, c. $180,
d. $189,346 - CORRECT ANSWER c. $180,000"
"12. The seller wants to net $650,000 on the sale of his house after paying a sales commission of 5%. How much must the gross selling price be (rounded to the nearest dollar)?
"18. A property owner conveys a house to a parent and stipulates that upon the parent's death he will recapture ownership. The interest the owner has in the property is a a. remainder interest. b. curtesy estate. c. reversionary interest.
d. legal life estate. - CORRECT ANSWER c. reversionary interest."
"19. A person who acquired ownership that can be willed to a devisee, with the provision that the land must always be used for recreational purposes, has which of the following? a. Fee simple estate b. Restricted estate c. Estate that cannot be sold
d. Fee simple estate subject to condition subsequent - CORRECT ANSWER d. Fee simple estate
subject to condition subsequent" "20. An owner divides a parcel into several lots, one of which is completely surrounded by other lots and has no street access. Which of the following is TRUE? a. An easement by necessity should be created for the landlocked parcel. b. The municipality must construct a street to create access. c. The owner must create an easement by condemnation to provide access.
d. An easement by prescription should be granted. - CORRECT ANSWER a. An easement by
necessity should be created for the landlocked parcel." "21. The road to a home is winding and long, but the shorter, more direct route is across a neighbor's land. The homeowner has used the more direct route for years and has never seen the neighbor. The homeowner hopes to eventually gain an easement by a. necessity. b. prescription. c. condemnation.
d. license. - CORRECT ANSWER b. prescription"
"22. One of two joint tenants sells the interest to a third party. What is the relationship of the other joint tenant and the new owner? a. They are joint tenants. b. There is no relationship because a joint tenant is not allowed to sell the interest to a third party. c. They are tenants in common. d. The remaining joint tenant owns a two-thirds interest and the new owner has a one-third
interest. - CORRECT ANSWER c. They are tenants in common."
"23. Tenancy with survivorship means a. the tenancy interest will be inherited.
b. the tenant's heirs are survivors. c. the tenancy interest will pass to the surviving tenant(s) upon the death of a tenant.
d. this is not a legal tenancy. - CORRECT ANSWER c. the tenancy interest will pass to the
surviving tenant(s) upon the death of a tenant." "24. Because a couple no longer needs their large house, they decide to sell it and move into a cooperative apartment building. In a cooperative, they will a. own their individual apartment. b. own the common elements. c. receive a 20-year lease to their apartment.
d. become shareholders in a corporation. - CORRECT ANSWER d. become shareholders in a
corporation." "25. Which of the following is TRUE of condominium ownership? a. An owner's interest in the limited common elements cannot be sold separately. b. The individual units cannot be mortgaged. c. The corporation pays the real estate taxes.
d. The ownership cannot be willed. - CORRECT ANSWER a. An ownser's interest in the
limited common elements cannot be sold separately." "26. A cooperative obtains the funds necessary to cover ongoing operating expenses and mortgage payments by a. charging rent to each of the shareholders. b. selling the common elements. c. charging special assessments.
d. collecting regular assessments from shareholders. - CORRECT ANSWER d. Collecting
regular assessments from shareholders." "27. The primary survey line running north and south in any area described by the rectangular survey system is its a. township line. b. base line. c. principal meridian.
d. range line. - CORRECT ANSWER c. principal meridian."
"28. A recorded subdivision plat is used in the a. geodetic survey system. b. lot and block system. c. rectangular survey system.
d. metes and bounds system. - CORRECT ANSWER b. lot and block system."
d. The real estate broker owes the fiduciary duties of an agent to both. - CORRECT ANSWER
d. The real estate broker owes the fiduciary duties of an agent to both." "35. A real estate sales associate shows properties listed for sale with the brokerage to a prospective buyer. The buyer has refused buyer representation. The buyer is the real estate brokerage's a. client. b. customer. c. principal.
d. fiduciary. - CORRECT ANSWER b. customer."
"36. A broker who represents a seller under an exclusive agency listing receives two offers for the property at the same time, one from a sales associate of the broker and one from the sales associate of a cooperating broker. The broker should a. submit both offers at the same time. b. submit the offer from the broker's sales associate first. c. submit the offer from the cooperating broker's sales associate first.
d. submit the higher offer first. - CORRECT ANSWER a. submit both offers at the same time."
"37. A real estate broker is helping a buyer and a seller fill out a sales contract but is not representing either party. The real estate broker is a. a traditional broker. b. a designated broker. c. a transactional broker.
d. an unlicensed broker - CORRECT ANSWER c. transactional broker."
"38. To net an owner $900,000 after the listing broker is paid a 6% commission, the list price would be a. $954,050. b. $957,447. c. $959,060.
d. $960,000. - CORRECT ANSWER b. $957,447."
"39. A small office building sold for $949,000, and the broker received a commission of $55,042. What was the broker's commission rate? a. 5.8% b. 6.2% c. 7%
d. 11.3% - CORRECT ANSWER a. 5.8%"
"40. A property owner wishes to net $56,500 from the sale of a vacant lot. After paying closing costs of $2,285 and a 7% commission, what must the selling price be (rounded to the nearest dollar)? a. $60, b. $60, c. $62,
d. $63,210 - CORRECT ANSWER d. $63.210."
"41. A person owned a parcel of land. Subsequent to the owner's death, the court determined the distribution of the land in accordance with state law. This process is called a. escheat. b. condemnation. c. probate.
d. adverse possession. - CORRECT ANSWER c. probate."
"42. The type of deed in which the grantor defends the title back to its beginning is a a. trustee's deed. b. quitclaim deed. c. special warranty deed.
d. general warranty deed. - CORRECT ANSWER d. general warranty deed."
"43. Which statement is TRUE regarding a special warranty deed? a. The grantor is making additional warranties beyond those given in a warranty deed. b. The grantor retains an interest in the ownership. c. The grantor is warranting that no encumbrances exist against the property.
d. The grantor's warranties are limited to the time the grantor owned the property. - CORRECT
ANSWER d. The grantor's warranties are limited to the time the grantor owned the property."
"44. The type of deed in which the granting clause states "grant, bargain, and sell" is a a. bargain and sale deed. b. sale and warranty deed. c. general warranty deed.
d. reconveyance deed. - CORRECT ANSWER a. bargain and sale deed."
"45. A contract made by a person who has been legally declared insane is a. valid. b. void. c. legal.
d. voidable. - CORRECT ANSWER b. void."
"46. An amount that is stipulated in a sales contract that serves to compensate a seller in the event of buyer default is called
"52. Growing trees, fences, and buildings are all considered a. chattels. b. land. c. fixtures.
d. real estate. - CORRECT ANSWER d. real estate."
"53. A newspaper advertisement states, "One-bedroom apartment available immediately. Good neighborhood. Only able-bodied individuals should apply." Which of these is TRUE? a. The ad is not permitted under HUD's advertising guidelines because it discriminates on the basis of disability. b. The ad is acceptable under HUD's advertising guidelines. c. The ad is not permitted under HUD's advertising guidelines due to the remark, "Good neighborhood." d. Newspapers are inherently discriminatory because not everyone can afford to buy them.
Modern Real Estate Practice Twentieth Edition - CORRECT ANSWER a. The ad is not
permitted under HUD's advertising guidelines because it discriminates on the basis of disability." "54. A man files a notice in the public record of pending litigation affecting the title to a property. This notice is termed a. fee simple determinable. b. police power. c. an encroachment.
d. a lis pendens. - CORRECT ANSWER d. a lis pendens."
"55. Shareholders in a cooperative receive shares of stock that entitle them to a a. common element lease. b. trust deed. c. proprietary lease.
d. corporate deed. - CORRECT ANSWER c. proprietary lease."
"56. A property owner sells 6 acres of prime undeveloped property for $2.25 per square foot. How much did the buyer pay? a. $466, b. $588, c. $612,
d. $733,860 - CORRECT ANSWER b. $588,060"
"57. All of these are necessary to a valid deed EXCEPT a. recital of consideration. b. words of conveyance. c. the grantee's signature.
d. delivery. - CORRECT ANSWER c. words of conveyance."
"58. To serve as public notice, a deed is recorded in the a. city where the owner lives. b. county or, in some states, the town where the property is located. c. state capital.
d. largest city in the state. - CORRECT ANSWER b. county, or in some states, the town where
the property is locatedz" "59. A real estate broker had a listing agreement with a seller that specified a 6% commission. The broker showed the home to a prospective buyer. The next day, the buyer called the seller directly and offered to buy the house for 5% less than the asking price. The seller agreed to the price and informed the broker in writing that no further brokerage services would be required. The sale went to closing six weeks later. Based on these facts, which of these statements is TRUE? a. While the broker was the procuring cause of the sale, the seller properly canceled the contract; without a valid employment agreement in force at the time of closing, the broker is not entitled to a commission. b. The broker is entitled to a partial commission, and the buyer is obligated to pay it. c. Under these facts, the broker is not the procuring cause of this sale but is still entitled to a commission.
d. The broker was the procuring cau - CORRECT ANSWER d. The broker was the procuring
cause of the sale and is entitled to the full 6% commission." "60. A qualified buyer makes a written offer on a property on March 6 by filling out and signing a sales agreement. Later that day, the seller accepts and signs the agreement, keeping one copy. The broker gives a copy of the signed agreement to the buyer on March 8. The seller's deed is delivered on May 1. The deed is recorded on May 7, and the buyer takes possession on May 15. When is the broker's commission payable if this is a typical transaction? a. March 8 b. May 1 c. May 7
d. May 15 - CORRECT ANSWER b. May 1"
"61. A $100,000 loan at 6% could be amortized with monthly payments of $843.86 on a 15-year basis or payments of $599.55 on a 30-year basis. The 30-year loan results in total payments of what percentage of the 15-year total payments? a. 158% b. 142% c. 106%
d. 71% - CORRECT ANSWER b. 142%"
c. $1,244.
d. $1,965.00 - CORRECT ANSWER a. $720.50"
"68. A buyer agrees to purchase a house for $234,500. The buyer pays $2,000 as earnest money and obtains a new mortgage loan for $167,500. The purchase contract provides for a March 15 closing. The buyer and the sellers prorate the previous year's real estate taxes of $4,880.96, which have been prepaid. The buyer has additional closing costs of $2,250, and the sellers have other closing costs of $1,850. How much cash must the buyer bring to the closing? a. $71,114. b. $76,389. c. $77,839.
d. $79,639.17 - CORRECT ANSWER a. $71,114.09"
"69. A 40-acre tract was sold for $2,200 per acre. The seller realized a 14.5% profit from the sale. What was the original cost of the tract? a. $75, b. $76, c. $100,
d. $102,924 - CORRECT ANSWER b. $76,856"
"70. The effective gross income from an office building is $73,500, and the annual operating expenses of the property total $52,300. If a prospective investor expects to receive an 11% return on the investment, what is the value of the property to the investor, to the nearest dollar? a. $125, b. $192, c. $475,
d. $668,181 - CORRECT ANSWER b. $192,727"
"71. The owner of a vacant lot adjacent to school was persuaded to make the lot available to the school, which need to extend its parking lot. The owner's attorney prepared a deed that conveyed ownership of the lot to the school "so long as it is not used for commercial purposes." After the completion of the transaction, the school will own a a. life estate. b. determinable fee estate. c. tenancy for years.
d. periodic tenancy. - CORRECT ANSWER b. determinable fee estate."
"72. Which of the following is an example of a legal life estate? a. Homestead estate b. Estate conveyed by one party to a second party for the life of the second party
c. Use of a will to convey property
d. Estate conveyed to a second party subject to a condition - CORRECT ANSWER a.
Homestead estate" "73. A homeowner's neighbor wants to park a boat in the homeowner's driveway for the summer months. The homeowner agrees to let the neighbor do so. This arrangement is a. an easement appurtenant. b. an easement by necessity. c. a license.
d. an estate in land. - CORRECT ANSWER c. a license."
"74. A developer grants a local power company the right to install necessary transmission lines. This right is an example of a. an easement in gross. b. a license. c. an easement by prescription.
d. a conditional use permit. - CORRECT ANSWER a. an easement in gross."
"75. All of the following are subject to real property ownership rights EXCEPT a. buildings located on the land. b. air space above the land. c. easements running with the land.
d. navigable rivers running through the land. - CORRECT ANSWER d. navigable rivers
running through the land." "76. In a land trust, which of the following is FALSE? a. Beneficial interest can be transferred by assignment. b. The beneficiary is usually the trustor. c. Public records list all the beneficiaries.
d. The property can be pledged as security for a loan without recording a mortgage. - CORRECT
ANSWER c. Public records list all the beneficiaries."
"77. In a condominium, community features such as swimming pools, tennis courts, and biking trails are MOST likely owned by the a. condominium board. b. corporation in which the unit owners hold stock. c. unit owners in the form of percentage undivided interests.
d. unit owners in the form of proportional divided interests. - CORRECT ANSWER c. unit
owners in the form of percentage undivided interests." "78. How many acres are in the property described as follows: the NW1⁄4 of the SW1⁄4 of the NE1⁄4 of Section 16?
d. an option. - CORRECT ANSWER d. an option."
"85. A contract made by a person who has been adjudicated insane is void on the theory that the person a. was purposefully deceptive. b. is not a legal citizen.
c. is not competent as a matter of public record. d. can perform under the terms of the contract. -
CORRECT ANSWER c. is not competent as a matter of public record."
"86. When grantors do NOT wish to convey certain property rights, they a. must note the exceptions in a separate document. b. may not do so because the deed conveys the entire premises. c. may note the exceptions in the deed of conveyance. d. must convey the entire premises and have the grantee reconvey the rights to be retained by the
grantor. - CORRECT ANSWER c. may note the exceptions in the deed of conveyance."
"87. In a general warranty deed, a. very little protection is provided to the buyer. b. the grantor defends the title for only the grantor. c. the grantee defends the title against the grantee and all those who previously had title. d. the
grantor defends the title back to its beginning. - CORRECT ANSWER d. the grantor defends
the title back to its beginning." "88. The clause in the deed that conveys the rights and privileges of ownership is called the a. habendum clause. b. appurtenance clause. c. acknowledgment.
d. granting clause. - CORRECT ANSWER b. appurtenance clause."
"89. Having a piece of land sold for delinquent taxes is an example of a. voluntary alienation. b. involuntary alienation. c. revocation.
d. remainder. - CORRECT ANSWER b. involuntary alienation."
"90. Under the Torrens system, a. title passes when the grantee's application for registration has been approved and the real estate has been registered. b. the Torrens official performs exactly the same functions as the recorder of deeds. c. the original deed is mailed to the buyer after it has been registered.
d. the registration of a title can be canceled by the owner at any time. - CORRECT ANSWER a.
title passes when the grantee's application for registration has been approved and the real estate has been registered." "91. The agent's obligation to use skill and expertise on behalf of the principal arises under which of these common-law duties? a. Care b. Obedience c. Loyalty
d. Disclosure - CORRECT ANSWER a. Care"
"92. Buyer agents may be compensated in any of these ways EXCEPT a. flat fee for service. b. percentage of selling price. c. hourly rate.
d. suit against the seller. - CORRECT ANSWER d. suit against the seller."
"93. A buyer makes an offer on a house, and the seller accepts in writing. What is the current status of this relationship? a. The buyer and seller do not have a valid contract until the seller delivers title at closing. b. The buyer and seller have an express, bilateral executed contract. c. The buyer and seller have an express, bilateral executory contract.
d. The buyer and seller have an implied, unilateral executory contract. - CORRECT ANSWER
c. The buyer and seller have an express, bilateral executory contract." "94. The term improvements, when referring to real estate, includes a. sidewalks. b. shrubbery. c. trees.
d. lawns. - CORRECT ANSWER a. sidewalks."
"95. The owner of a house wants to fence the yard for her dog. When the fence is erected, the fencing materials are converted to real estate by a. annexation. b. severance. c. immobility.
d. indestructibility. - CORRECT ANSWER a. annexation."
"96. A real estate professional who is the agent of the buyer should do which of the following? a. Disclose to the seller that the buyer is a member of a protected class b. Disclose to the seller the maximum price the buyer is willing to pay c. Present to the seller only offers that are acceptable
b. Supplier of materials c. Subcontractor working for the prime contractor
d. Attorney who handled the property purchase and construction contracts - CORRECT
ANSWER d. Attorney who handled the property purchase and construction contracts"
"102. A real estate broker's responsibility to keep the principal informed of all the facts that could affect the transaction is the duty of: a. Care b. Disclosure c. Obedience
d. Accounting - CORRECT ANSWER b. Disclosure"
"103. In a typical agency relationship between broker and client, the broker's commission is determined by: a. State Law b. Local Real Estate Board c. Mutual agreement
d. Minimums based on property type - CORRECT ANSWER c. Mutual agreement"
"The amount of commission paid to the salesperson by the broker is determined by: a. State law b. Local real estate board c. Mutual agreement between agent and broker
d. Mutual agreement with client - CORRECT ANSWER c. Mutual agreement between agent
and broker" "Earnest money should be deposited into a trust account
- in a timely manner, according to state laws.
- upon removal of all contingencies.
- at the broker's discretion.
4. according to MLS rules. - CORRECT ANSWER 1. in a timely manner, according to state
laws." "A lender will make an 80% loan-to-value loan on a property that is appraised for $72,250 and sells for $73,500. If the buyer has saved $14,450 for a down payment, how much more (if any) will he need in order to make the down payment required under the terms of this loan?
- He has $1,000 more than he needs for the down payment.
- He has exactly the amount needed for the down payment.
- He needs an additional $250 in order to make the down payment.
4. He needs an additional $1,250 in order to make the down payment. - CORRECT ANSWER 4.
He needs an additional $1,250 in order to make the down payment." "A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given
- actual notice.
- prescriptive notice.
- constructive notice.
4. exculpatory notice. - CORRECT ANSWER 3. constructive notice."
"Even with title insurance, the policyholder may still suffer losses arising from
- forged documents.
- incompetent grantors.
- defects found in recorded public records.
4. land use change due to zoning ordinances. - CORRECT ANSWER 4. land use change due to
zoning ordinances." "Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT
- loyalty.
- competence.
- indemnification.
4. full disclosure. - CORRECT ANSWER 3. indemnification."
"To be valid, every deed must
- contain a warranty.
- include granting language.
- be executed by the grantor.
4. be signed by the grantee if there are covenants. - CORRECT ANSWER 3. be executed by the
grantor." "State laws differ on whether a buyer is entitled to know about:
- a suicide that occurred in the house last year.
- possible lead paint in the property.
- the flooding of the basement every spring.
