Pearson VUE real estate practice test, by outline area

A seller divides a ten-acre tract and sells the back five acres. The sold parcel lacks public road access, and the deed mentions no access rights. Under these circumstances, what right does the buyer possess?

1. The right to establish a prescriptive easement across the land.
2. The right to force a road extension.
3. The right to claim an implied easement by strict necessity.
4. The right to claim an easement in gross.
5. The right to claim title via adverse possession after ten years.

A commercial bakery tenant removes the landlord's built-in residential ovens to install heavy-duty, custom commercial baking ovens bolted to the floor. Upon lease expiration, the tenant wishes to take the commercial ovens. Which statement correctly identifies the tenant's rights and liabilities?

1. The tenant must leave the ovens as fixtures
2. The tenant can remove the ovens only if the landlord provides consent
3. The tenant may remove the ovens but must restore the premises
4. The tenant forfeits ownership of any equipment bolted to the floor
5. The tenant owes nothing for removal damage

A grantor delivers a signed deed to a grantee, who accepts it but stores it in a safe without recording it. A month later, a dispute arises between them regarding ownership. Is the unrecorded deed valid between the grantor and grantee?

1. Yes, delivery makes it valid
2. No, constructive notice is missing
3. No, unrecorded documents lack validity
4. Yes, transferring only equitable title
5. No, recording is required

A comparable property sold for $300,000, but the seller paid $10,000 toward the buyer's closing costs. To properly adjust for differences in time, location, and physical characteristics, how must the appraiser initially handle this financing concession?

1. Add amount to comparable sale prices
2. Add amount to subject property values
3. Deduct amount from subject property value
4. Deduct amount from comparable sale price
5. Exclude concession amount from all calculations

An out-of-state investor is willing to purchase a commercial property based on a 4% capitalization rate. However, local comparable sales dictate a 7% capitalization rate. Why must the appraiser use the 7% rate to estimate Market Value?

1. Guarantees faster property selling
2. Maximizes potential gross earnings
3. Satisfies minimum federal statutes
4. Ensures favorable mortgage options
5. Reflects market-supported evidence

A purchase contract lacks a liquidated damages clause. The buyer breaches the agreement, and the seller immediately demands the earnest money deposit as a penalty. How should the earnest money be handled?

1. The earnest money is automatically forfeited to the seller.
2. Actual damages must be proven to claim the funds.
3. The title company will distribute the funds to the state.
4. The broker keeps it as a fee.
5. The entire amount serves as a mandatory punitive penalty.

A purchase agreement includes a seller-drafted clause requiring a 50% non-refundable earnest money deposit as liquidated damages if the buyer breaches. Which statement describes the legal status of this clause?

1. Binding if the seller proves matching actual damages.
2. Converted to specific performance under state law.
3. Unenforceable as an unreasonable penalty.
4. Valid if held in trust.
5. Enforceable because the buyer voluntarily agreed.

A transaction broker assists both buyer and seller. The buyer asks for advice on offer amount. The broker recommends a low-offer strategy. Which statement is correct?

1. The broker must now advocate solely for buyer.
2. The buyer automatically became the broker's client.
3. No violation; advising on price is ministerial.
4. The broker exceeded neutral role advising buyer.
5. No violation; transaction brokers owe no fiduciary duties.

A listing agent receives an earnest money check from an unrepresented buyer. At the buyer's request, the agent delivers the check directly to the seller. Which statement is correct?

1. The agent lawfully fulfilled their duty by following the buyer's direct disbursement instructions.
2. The agent violated trust fund rules by failing to deposit it in escrow.
3. The agent legitimately expedited the transaction by transferring the funds directly to the seller.
4. The agent correctly prioritized the seller's interests since the seller is the ultimate beneficiary.
5. The agent successfully avoided trust account commingling by delivering the check to the seller.

A buyer client instructs the licensee to show only homes in a particular school district because the buyer does not want to live in a "certain area." The licensee complies by eliminating listings in neighborhoods with higher minority populations. Does this action violate the Fair Housing Act, and what should the licensee do?

1. No; following a client's lawful instructions is not steering
2. Yes; licensee should report the client
3. Yes; licensee should have refused to comply
4. Yes; licensee should show only in the requested district
5. No; preference is not protected

Which hazard is subject to a uniform federal disclosure rule for most pre-1978 residential transactions?

1. Radon gas
2. Lead-based paint
3. Asbestos fibers
4. Underground storage tanks
5. Mold contamination

A seller tells the listing agent to conceal a material foundation defect, though state law requires written disclosure. What must the agent do?

1. Delay disclosure until after closing
2. Disclose the defect as required by law
3. Obey the seller's instruction to conceal it
4. Withdraw from the listing without disclosure
5. Disclose only if the buyer asks about defects

A buyer wants a USDA guaranteed loan for a home in a suburban subdivision next to a rural area. The USDA property eligibility map shows the subdivision outside the eligible area. Household income is 112% of the area median income. Which statement is true regarding USDA financing?

1. USDA financing is not available because the property is not in an eligible rural area
2. USDA financing is not available because the household income exceeds the maximum allowable 115% of area median income
3. USDA financing is available because the income is below the 115% limit
4. USDA financing is available because the property is adjacent to a rural area

Property sells for $420,000. Commission is 5.5%. Broker deducts $750 admin fee before splits. Listing side gets 60%, cooperating 40%. Listing agent gets 55% of listing side. Listing agent receives:

1. $12,705.00
2. $7,623.00
3. $6,988.50
4. $14,553.00
5. $7,375.50

A borrower has gross monthly income of $5,000. The proposed housing payment PITI is $1,250, and recurring monthly debts total $500. The lender's maximum ratios are 28% front-end and 36% back-end. Which statement correctly describes the borrower's DTI ratios?

1. Front-end 25%, back-end 35%; meets both thresholds
2. Front-end 25%, back-end 45%; fails back-end threshold
3. Front-end 25%, back-end 35%; fails back-end threshold
4. Front-end 30%, back-end 40%; fails both front-end and back-end thresholds
5. Front-end 20%, back-end 30%; meets both thresholds

A buyer's agent shows a property listed by another brokerage. The seller pays the buyer's agent's commission through an MLS cooperative offer. Does this compensation structure create dual agency?

1. No, the source of compensation does not determine the legal agency relationship.
2. No, but the buyer's agent must now legally prioritize the seller's interests due to the MLS payment.
3. Yes, accepting the seller's cooperative compensation automatically establishes an undisclosed dual agency relationship.
4. Yes, the buyer's agent becomes the seller's subagent.
5. Yes, because the listing broker assumes full liability for the buyer's agent's actions during the property showing.

The government uses eminent domain to acquire a narrow strip of a farmer's land for a highway. The new highway completely isolates the remaining agricultural parcel, making it economically useless. What compensation is the property owner legally entitled to receive?

1. The strip's assessed value
2. Relocation expenses without property compensation
3. Value of the strip plus severance damages
4. Only the strip's market value
5. Compensation solely for the lost agricultural yield

A title search reveals a significant, unexplained fifty-year gap in the chain of title. The previous owners and their heirs cannot be located. Which action is the most appropriate legal remedy to ensure the current seller can deliver marketable title?

1. A quitclaim deed from the seller
2. Recording an affidavit of continuous possession
3. Issuing a lis pendens against the missing heirs
4. Initiating a quiet title action in court
5. Purchasing a special warranty deed endorsement

Why does an appraiser use the bracketing technique when selecting comparable closed sales for the sales comparison approach?

1. Separating site values from property estimates
2. Calculating precise reproduction costs of subjects
3. Eliminating needs for standard time adjustments
4. Prioritizing properties with identical physical profiles
5. Establishing upper and lower value boundaries

An express easement grants the holder 'ingress and egress for residential purposes' across a 10-foot-wide strip of the servient parcel. The holder runs a home-based business and begins using the strip for daily commercial deliveries and overnight truck parking. The holder's family, guests and repair contractors also use the strip. Which use most likely exceeds the scope of the easement?

1. Daily trips to and from the home by the holder's family
2. Social visits by the holder's personal guests
3. Temporary access for contractors doing home repairs
4. Daily commercial deliveries and overnight truck parking