101. When comparing a property using Sales Comps:

A. Comparable is deducted if it has superior features

B. Comparable is added if it has superior features

C. Subject is deducted for inferior features

D. Subject is added for superior features

Answer: A. Comparable is deducted if it has superior features

102. If an appraiser is asked to evaluate the economic feasibility of adding a swimming pool to an apartment property the appraiser would apply the Principle of:

A. Regression

B. Contribution

C. Integration

D. Substitution

Answer: B. Contribution

103. An agent promises his principal to place ads twice a week for a listing, but placed only an ad once a month. The agent has committed:

A. Actual Fraud

B. Illusive fraud

C. No fraud

D. Pejorative

Answer: C. No fraud

104. A contract of sale has been described as a method of financing used as a substitute for the note and deed of trust method. Therefore, a contract of sale might be said to be:

A. Similar to an option

B. A security device

C. Identical to a mortgage

D. A three party instrument

Answer: B. A security device

105. What type of loan is NOT regulated under Regulation Z (Truth in Lending)?

A. Business loan backed by company assets

B. Personal loan

C. Refinance of a home loan

D. Investor purchasing a 2 unit residential rental property

Answer: A. Business loan backed by company assets

106. Every lease contains an implied covenant of “quiet enjoyment and possession.” This covenant means that:

A. The title is free of all encumbrances

B. Tenant’s possession is free of disturbances by the owner of the paramount title

C. There are no nuisances inflicted by adjoining neighbors

D. None of the above

Answer: B. Tenant’s possession is free of disturbances by the owner of the paramount title

107. A person receives patented land. How is title acquired?

A. Default

B. Condemnation

C. Eminent Domain

D. Public Grant (or Donate)

Answer: D. Public Grant (or Donate)

108. Broker Andrews and Broker Benson both have an open listing on a property. Broker Andrews showed the property to a buyer who decided not to buy. Two weeks later, broker Benson contacted the same buyer and arranged a sale. The seller would be obligated to pay:

A. The full amount of commission to both brokers

B. The full amount of commission to Benson only

C. 50% to each broker

D. Nothing until Andrews has settled with broker Benson

Answer: B. The full amount of commission to Benson only

109. A prospective purchaser may withdraw an offer at any time before the seller’s acceptance has been communicated to the purchaser:

A. Unless the offer states that it is irrevocable

B. Provided the offer is not supported by a deposit

C. Provided the offeree has breached the offer

D. For any reason

Answer: A. Unless the offer states that it is irrevocable

110. An owner must pay a commission even though he sells the property entirely through his own efforts under which of the following listings?

A. Exclusive Agency Listing

B. Exclusive Authorization and Right To Sell Listing

C. Non-Exclusive Listing

D. Restricted Listing

Answer: B. Exclusive Authorization and Right To Sell Listing