Practice Final Examination

This is a two-part exam. Allow yourself 1 hour and 45 minutes to complete the General Portion and 1 hour and 15 minutes to complete the State Portion.

4/09

General Examination

1. The four unities of title, time, and possession normally would be found in which of the following: A. tenancy in common C. mortgage or trust B. partnership D. joint tenancy

2. In 1994, Fred built a building that had six stories. Several years later, a ordinance was passed banning any building six stories or higher in the area. This is an example of: A. a nonconforming use B. a situation in which the building would have to be demolished C. a situation in which the top floor would have to be closed D. a variance

3. A rectangular piece of land was sold for $6,400 at 40 cents per square foot. The land had a depth of 200 feet. What price did the buyer pay per front foot? A. $16 B. $80 C. $40 D. none of these

4. A life tenant may do which of the following? A. commit economic waste of a C. the property to another B. encumber the reversionary interest D. convey the life estate interest by a will

5. For a property that borders a navigable waterway, which of the following statements is true as it relates to riparian water rights? A. the boundary line for the subject property extends to the high watermark B. the boundary line for the subject property is characterized by reaching to the edge of the water C. the property owner is seen to own to the center of the waterway, but only the land, not the water itself D. the property owner has rights to the inland downslope of the bank as documented in public records set forth by

6. If a buyer takes over the seller's tax escrow account held by the lender, the entry at on the settlement statement would be a: A. debit to the seller; credit to the buyer C. debit to the seller; debit to the buyer B. credit to the seller; credit to the buyer D. credit to the seller; debit to the buyer

7. Tom died owning a farm as a joint tenant with his son, Jerry. Tom had personal of over $50,000 and no assets other than his share of the farm. Which of the following is true? A. Tom's creditors can take the farm B. Jerry is liable for the debts, since he is the heir C. Jerry is liable for the because he is the son of Tom D. Jerry owns the farm and has no obligation for Tom's debts

8. Jane purchased a from John and after the closing, she learns that John lied to her by stating that the electrical system in the home was in proper working order, when it was actually faulty. Based on the fraudulent manner in which John acted, which of the following is true regarding their contract? A. it remains valid C. it’s unenforceable B. it’s voidable D. it’s void

9. A tenant in common may transfer his or her interest under which of the following circumstances? A. only with the permission and approval of the other tenants in common B. at any time, without permission or approval, even under protest C. only at the expiration of the lease D. only for valuable consideration

10. If you chartered a corporation and bought an apartment building from which point you sold stock to selective individuals, and because of their new status as stockholders, they were given a proprietary lease which allowed them to occupy different units, what type of ownership would you have established? A. a cooperative C. a investment trust B. a condominium D. a timeshare

11. Which of the following is true of a mortgage? A. a mortgage creates a lien on the property B. a mortgage is secured by a promissory note signed by the borrower C. a mortgage is not used if the is under $50,000 D. only mortgage companies use a mortgage

12. A, B, and C own property as joint tenants. C dies, then B sells his interest in the property to D. The property is now owned: A. by A, D, and C's widow and E (his sole heir) as joint tenants B. by A and D as joint tenants C. by A and D as tenants in common, each with one-half interest D. by A, D and B's wife

13. A buyer pays $25,000 as a down payment, and agrees to pay the balance of $150,000 at 12 percent interest over 10 years to a seller who has a $100,000 first mortgage at 10 percent interest. If the seller gives the buyer a deed, what type of financing device is MOST likely involved? A. agreement of sale C. B. assumption of mortgage D. conventional mortgage

14. What is the first month's interest payment on a $25,000, 30 year, 9% loan if the monthly payments are $201.00? A. $100.50 B. $187.50 C. $175 D. $34.50

15. If a deed is signed by the grantor on Saturday, but not delivered to the grantee until Sunday, which of the following is true? A. the deed is invalid C. the deed is voidable B. the deed is not acceptable for recordation D. the deed is effective to transfer title

16. What two documents must be executed to create an enforceable ? A. promissory note and deed of trust C. defeasance clause and promissory note B. mortgage and promissory note D. promissory note and financing document

17. A buyer who has put up $10,000 earnest money on a sales contract for a $200,000 property decides to default. The seller may keep the $10,000 as: A. punitive damages C. consequential damages B. liquidated damages D. special damages

18. When an easement appurtenant exists between two parcels of land that are separately owned: A. the dominant tenement has use of this easement only for ingress and egress B. the servient tenement must have created the easement in writing C. the dominant tenement is benefited by the easement D. the servient tenement may revoke the use of easement by giving proper notice

19. ¹/90 of a township is what percentage of a section: A. 10% B. 40% C. 45% D. 38%

20. "Quieting a title'' most nearly means: A. to obtain title by B. to color title and enhance the buyer's claim of ownership C. to mortgage the property without recording the deed D. to settle a cloud on the title by court action

21. All of the following are ways by which an offer to purchase real estate would be terminated, EXCEPT: A. failure to accept the offer within a prescribed period B. revocation by offeror communicated to offeree after acceptance C. a conditional acceptance of the offer by the offeree D. death or insanity of the offeror or offeree regardless of the notice thereof

22. If your broker sold a triangular parcel of land for $750 an acre, what is your commission at 8%, if the land had a base length of 1,200 feet and a height of 700 feet? A. $1,156.80 B. $578.51 C. $550.00 D. $976.00

23. Tom is building a new house valued at $100,000, if the average property value of his surrounding neighbors is $225,000, then Tom will realize a positive effect on his value through the principle of: A. progression B. regression C. substitution D. contribution

24. Bob Jones, who does not have a real estate license, hires Sally Salesperson to sell his property. While Sally is out of town, Bob shows the property, quotes prices and takes deposits. His actions: A. place Sally in jeopardy, since Bob is acting as an unlicensed salesperson B. will invalidate the sale C. have made Bob subject to disciplinary action by the Real Estate Commission D. were entirely proper

25. In which of the following situations is the buyer seen to have equitable title? A. pending sale and when the title search reveals no defects B. when legal title is obtained and a C. contract for deed and a pending sale D. net sale and bond for deed

26. Which of the following is true concerning recording a deed? A. a forged deed is made valid by recording B. a delivered deed is not valid until it is recorded C. a deed must be signed by grantor and grantee in order to be recorded D. recording is not needed to make a deed valid

27. If you bought a house for the list price, less 20%, and sold it for the list price, what percent of profit would you make? A. 25% B. 20% C. 80% D. 125%

28. Charlie rents space to use for a restaurant and installs counters, booths, stoves and other fixtures necessary for business use. These fixtures will become the property of the lessor: A. once they are connected to the real estate B. if they are not removed by Charlie before the expiration of the lease C. if the lessee is late with the rent check D. never

29. In which of the following is the interest rate set by the lender? A. a conventional loan C. a VA loan B. a FHA loan D. all of the above

30. The term "merchantable title'' (or “marketable title”) means: A. the title has no defects B. the seller can transfer interest by deed C. an abstract certified to date can be prepared D. the title appears to be reasonably free of unacceptable defects

31. If a buyer obtains a mortgage for $50,000 and points are at four, how much will be charged by the lender at closing? A. $6,000 B. $200 C. $2,000 D. $600

32. A receives rent at the beginning of the month. The property is sold ten days later. To prorate rent at settlement: A. credit the buyer B. credit the seller C. both A and B D. neither A nor B 33. Which of the following states that once a contract is written, anything spoken before the writing cannot be used because it is invalidated? A. statute of frauds C. statute of limitations B. principle of contractual performance D. parol evidence rule

34. Which of the following formulas show how value is determined using the income approach? A. gross income ÷ = value B. net income ÷ capitalization rate = value C. ÷ capitalization rate = value D. none of the above

35. In the income approach to value, effective gross income can best be defined as: A. gross income less taxes, maintenance, and insurance B. gross income less taxes, maintenance, insurance, and vacancy loss C. gross income less taxes, maintenance, insurance, vacancy loss, and collection loss D. gross income less vacancy and collection losses

36. If the number 12 on a clock were placed facing north, then the description N60° W would be: A. 2 o'clock B. 10 o'clock C. 6 o'clock D. 9 o'clock

37. When does legal title to pass from the seller to the buyer? A. on the date of recording of the deed C. when the deed is placed in escrow B. when the closing statement has been signed D. when the deed is delivered

38. A corner lot measured 60' x 90'. You wish to install a sidewalk 7' wide beyond the lot lines on both frontage streets. How many square feet of sidewalk are you going to install? A. 1,220 C. 1,099 B. 1,580 D. none of the above

39. Tom agreed to build a house and sell it to Jerry in 120 days. Jerry agreed to pay Tom's price within 60 days of completion. The contract, before the house was completed, could be referred to as what kind of contract: A. an executory contract C. a voidable contract B. an implied contract D. an executed contract

40. Mr. Brown gives to his neighbor, Mr. White, a written servitude to cross his property which is duly recorded. Mr. Brown then sells his property to Mr. Green and does not tell Mr. Green about the servitude rights. What happens to this servitude? A. it is no longer valid C. the servitude goes with the land B. Mr. Green owns the servitude D. a new servitude has to be written and recorded

41. Mike and Ike orally enter into a two-year lease. If Ike defaults, Mike may (may not) bring a court action on the lease because: A. the parol evidence rule prohibits bringing action to enforce oral of two years in length B. the statute of frauds prohibits bringing action to enforce oral leases of two years in length C. two year leases need not be in writing to be enforced in a court action D. the statute of limitations does not apply to oral leases

42. A “due on sale clause” is also known as a(n): A. alienation clause C. assignment clause B. acceleration clause D. lender’s privilege clause

43. Given a 90' x 90' lot on which the building setbacks are 30' feet front, 10' from the sides and 20' from rear line, the net building area is how many square feet? A. 2,650 C. 2,800 B. 1,750 D. none of the above

44. Which is true concerning a real estate mortgage? A. it must be signed by all owners for it to be an effective lien against the entire property B. upon the death of one out of two joint tenant mortgagors, one-half of the property would pass to the mortgagee C. it must be signed by each mortgagee D. a promissory note is seldom required

45. A range is numbered to the: A. east or west of a principal meridian C. north or south of a principal meridian B. north or south of a baseline D. east or north of a baseline

46. To calculate the property taxes on a property, you would: A. divide the assessed valuation by the tax rate in mills B. multiply the assessed valuation by the tax rate in mills C. multiply the sale price by the tax rate in mills D. divide the sale price by the tax rate in mills

47. An L-shaped lot 85' x 190', plus 55'9" x 120' has been sold at $2 per square foot. The broker's 8% commission is: A. $3,490.60 B. $3,654.40 C. $1,827.20 D. $1,820.00

48. Negative amortization can be found in what type of financing? A. reverse annuity mortgage C. balloon payment mortgage B. graduated payment mortgage D. shared appreciation mortgage

49. The major feature of a variable rate mortgage is that the interest rate: A. changes as the borrower's income increases B. varies according to the capitalization rate C. varies one time each year, but is limited by a capitalization rate D. varies according to an agreed-upon market indicator

50. The right of a water company to lay and maintain water mains along the rear of a lot is called: A. an appurtenance C. an easement in gross B. a riparian right D. a right of encroachment

51. In the covenant of seizin: A. the mortgagee states that he is foreclosing B. the lessor states that the lessee has not abided by the lease contract C. the grantor states that he owns the property being transferred D. the lessee states that he is being evicted

52. Failing to assert a right within a reasonable period of time might lead a court to determine that the right to assert it is lost because of: A. laches B. novation C. rescission D. reformation

53. A landlord is selling his property and has collected the June rent from all five tenants: two at $345 and three at $425. W A $1,244.50 B. $720.50 C. $1,425.40 D. $872.45

54. Which of the following is NOT done by FNMA? A. purchase conventional loans C. buy FHA-VA loans B. sell mortgages to institutions D. originate federal loans

55. The NW¼ of the NE¼ of the SW¼ of Section 32 contains how many acres? A. 10 B. 40 C. 30 D. 20

56. A broker may execute a contract on behalf of his principal when he is a(an): A. agent for the principal C. attorney-at-law B. attorney-in-fact D. trustee for the principal

57. If a borrower makes monthly loan payments of $612 on an amortized loan, it means that: A. the same amount is applied to the principal each month B. there will be a balloon payment at some point in the loan C. the amount applied to the principal will increase with each payment D. there is a lump sum payment due at the end of the loan

58. All of the following are characteristics of an independent contractor relationship with a broker EXCEPT: A. you assume responsibility for paying your own income tax B. you must have a written contract with the broker defining the relationship C. you do not need a license D. 90% or more of your compensation must come from sales productivity

59. If the interest rate on a mortgage loan is 11½% and the monthly payment is $1,412, the principal sum would be: A. $194,560 B. $147,339.13 C. $12,278.26 D. $148,000

60. The covenants that can be found in general warranty include: A. seizin, further enjoyment, infinite assurance, against , and warranty forever B. seizin, quiet enjoyment, against encumbrances, future assurance, and warranty for infinity C. seizin, further enjoyment, against encumbrances, further assurance, and limited warranty D. seizin, against encumbrances, quiet enjoyment, further assurance, and warranty forever

61. A, B, and C are joint tenants. C sells his share to B and after the title transfer takes place, B dies. What percentage of B’s interest in the property transfers to A? A. 1/3 B. 1/2 C. 2/3 D. all of it

62. Which of the following statements applies to ALL appurtenances? A. they go with the land C. they once were personal property B. they are joined by accession D. they are easements

63. The practical essentials of a valid contract are: A. legality of the object, competent parties, offer, acceptance, legal age B. competent parties, offer, acceptance, consideration, meeting of the minds C. offer, acceptance, consideration, competent parties, legality of the object D. legal age, meeting of the minds, consideration, acceptance

64. Which is true concerning real estate sales contracts? A. a seller can be sued for "specific performance'' if a contract is not performed B. a seller must sign an agreement to sell if the offeror's terms are exactly in accordance with the listing agreement C. the sole remedy for default of the buyer is a suit for specific performance D. they must be on a printed form to make them binding

65. In Sunnyvale subdivision, which totaled 75 acres, 400 were built on 7,500 sq. ft. lots. If each house averaged 50 x 40 ft., what percentage of the subdivision was covered by the houses? A. 12.25% B. 20% C. 24.5% D. 49%

66. All of the following are forms of evidence of title EXCEPT: A. certificate of title C. title insurance policy B. abstract and attorney’s opinion D. deed

67. The three day right of rescission found under Regulation Z applies to: A. residential purchase money C. deeds of trust B. first mortgages D. none of the above

68. The broker of ABC Realty obtained a 6 month exclusive-right-to-sell listing from Minnie, but did absolutely nothing to market the property for 60 days. Which of the following statements is FALSE? A. Minnie can cancel the listing prior to the 180th day B. Minnie can withdraw the property from the market C. the broker has earned a commission D. the broker has breached the contract

69. Section 11 in a township is: A. north of Section 14 and south of Section 2 B. north of Section 17 and south of Section 5 C. north of Section 19 and south of Section 17 D. north of Section 22 and south of Section 10

70. If an appraiser estimates the total land value and adds back the value of the improvements, this: A. tends to set the upper limit of value for the property B. tends to set the lower limit of value for the property C. is not appropriate for newer construction D. is the best method for appraisal of residential property

71. A fiduciary relationship exists between the listing broker and the seller. The fiduciary ends, however, if the seller: A. withdraws the property from the market and formally cancels the listing agreement B. requests that the listing be placed in the Multiple Listing Service book C. accepts an offer directly from a buyer D. rejects an offer to purchase submitted through the broker

72. A Real Estate Company listed a piece of property at $4.50 per square foot. The lot was 50 feet x 137 feet. Commission was 7¼%. What amount would the seller pay the Real Estate Company? A. $1,005.50 B. $2,234.81 C. $22,348.12 D. $10,055.00

73. All of the following are defined and protected under familial status according to the 1988 amendment of the federal Fair Housing Law of 1968 EXCEPT: A. a sixteen year old living with her mother B. an eighteen year old domiciled with her mother C. a nineteen year old that is pregnant D. a seventeen year old living with a friend who is seeking legal custody

74. “Escheat” is: A. the right to cross someone else's land to get to the road B. a variety of fraud exclusive to real estate C. the right to inherit if there is no will D. none of the above

75. If the market value of real estate is $72,000 and the property is assessed at 67% of value, what are the monthly taxes if the tax rate for the area is $6.50 per $100 of assessed value? A. $3,157.38 B. $4,857.50 C. $261.30 D. $48,575.00

76. Betty Smith took title to property in the name Elizabeth Smith. When she sold the property, she signed Betty Smith as grantor. The buyer has: A. a cloud on the title C. an exception on the deed B. only color of title D. clean title

77. All of the following are involved in the secondary mortgage market EXCEPT: A. FMMA B. FNMA C. GNMA D. FHLMC

78. What is the method of creating an agency relationship in which the principal accepts the conduct of someone who acted without prior authorization as the principal’s agent? A. estoppel B. exchange C. novation D. ratification

79. A buyer wishes to give a post-dated check with an offer. The broker should: A. wait until it can be determined if the check is good before presentation of the offer B. treat the check as any other check C. inform the seller as to the form of the deposit D. refuse to accept the offer

80. What is the cost of constructing a fence 6'6" high around a lot measuring 90' x 175', if the cost of building the fence is $1.25 per linear foot and the material is $0.825 per square foot? A. $2,083.56 B. $2.053.75 C. $1,752.31 D. $3,504.63

State Examination

1. When a Louisiana broker is cooperating with an out-of-state broker, the percentage of fees or commission allowed to be received by the out-of-state broker is: A. 50% B. 30% C. 0, a Louisiana broker cannot share a commission with an out-of-state broker D. negotiable between the two parties

2. For the past 3 months, you have been operating your real estate office under a trade name. This practice is: A. legal B. illegal, since real estate agencies may not use trademarks C. legal, but only if you also have a trademark D. illegal, since real estate agencies must operate only under the broker's name

3. “Ownership in indivision” means: A. the property is owned by one person B. the property may not be owned by more than one person C. the property is owned by more than one person D. the property may not be subdivided

4. Under Louisiana civil law regarding the description of immovables, all of the following are classified as types of components EXCEPT: A. component by incorporation C. component by declaration and registry B. component by stabilization D. component by attachment

5. Which of the following is the best example of common things? A. seashore C. running water and territorial sea B. air and high seas D. public squares

6. Who holds the title in a bond for deed transaction? A. the seller, until the property has been paid for C. the seller for the first year B. the buyer gets title immediately D. there is no title in bond for deed

7. A salesperson lists a property and then decides he would like to purchase the property himself. Under Louisiana law, the salesperson: A. is required to wait a minimum of 60 days before buying B. cannot purchase the property because of a conflict of interest C. can purchase the property after proper disclosure of his true position as agent and purchaser D. must pay the listed price

8. A vendor who wishes to keep a life interest and convey the remainder to a relative may best do this by which of the following methods? A. this cannot be done in Louisiana B. prepare a conveyance, but do not deliver same until death C. prepare a conveyance and reserve the right of usufruct D. prepare a conveyance restricting the right of usufruct

9. A licensee is found guilty at a Real Estate Commission hearing and has his license suspended. The licensee appeals the decision in court. Which of the following is true? A. a court can fine up to $3,000 or imprison for 3 years B. the licensee cannot list property during the appeal C. the licensee must appeal within 60 days of the Commission decision D. the licensee can list and sell during the appeal

10. “Movables by anticipation” as cited by Louisiana law can be best described as: A. harvested crops that belong to the landowner B. unharvested crops that belong to the landowner C. harvested crops that do not belong to the landowner D. unharvested crops that do not belong to the landowner

11. When a contract is an earnest money contract: A. the earnest money is held by the selling broker B. neither party can sue for specific performance C. the earnest money must be placed in a non-interest bearing account D. the earnest money can be released only with the consent of the cooperating broker

12. In the event of a dispute between the potential buyer and seller regarding the return of the earnest money, the real estate broker should: A. return the money to the buyer in the form of a certified check or money order B. turn the money over to the company attorney or to the selling broker C. wait 90 days, then turn the money over to a court and request a hearing D. turn the money over to the Louisiana Real Estate Commission and request a disbursement order

13. Death of a usufructuary, or if the object of the usufruct is destroyed, will have what effect on a usufruct? A. no effect, it must continue C. it passes to the heirs of the usufructuary B. it will terminate D. it reverts automatically to the state

14. Sally Salesperson received 3 offers on one of her listings, one at 9 am, one at 11 am, one at 1 pm, all on the same day. In what order should Sally present these offers when she sees the seller that evening at 7 pm? A. present the offers in the same order she received them B. present the offers in ascending order of the offering price C. present all offers at the same time D. present the full price offer first, or if none, then the highest offer first and the rest in descending order

15. All of the following are characteristics of meeting eligibility requirements for the filing of a mechanic’s lien EXCEPT: A. someone who supplies materials to a property B. must be filed within 60 days after last work was completed C. must be filed within 45 days after last work was completed D. someone who provides services to a property

16. One mill is equal to: A. .01 B. .001 C. .1 D. 1.0

17. Who is responsible for keeping sales agents informed about changes in the license law? A. Real Estate Commission C. no one B. sponsoring broker D. the Legislature

18. To secure a deficiency judgment in the state of Louisiana, all of the following are true EXCEPT: A. the property must go to sheriff's sale with a current appraisal B. bidding must start at ⅔ of the mortgage amount C. bidding must start at ⅔ of the appraised value D. the property must sell for less than all monies due

19. Lesion beyond moiety has as its basis that: A. property has been sold without knowledge of the seller B. property has been sold for less than ⅔ of its value C. property has been sold for less than ½ of its value D. a buyer was defrauded

20. Fees to non-licensees for finding clients are: A. legal, as long as the fee is paid by the brokerage firm B. always a violation of the regulations C. legal, if for less than $100 D. a violation of federal trade laws

21. A Louisiana lease must be in writing to be valid: A. if the lease is for more than six months B. if the lease is for more than one year C. if the lease is for immovable property D. at no time, since written leases are not required in Louisiana

22. All advertising by a real estate broker must contain: A. the statement "agent - owner'' B. the name and phone number of the broker C. a statement that the firm conforms with the Federal Fair Housing Laws D. the name of the broker

23. Of the following statements, which one is true as it relates to a security deposit in a lease? A. if the tenant abandons the property without notice, the lessor may retain the deposit without itemizing expenses to the tenant B. the lessor cannot deduct for wear and tear to the property C. lessor does not have to give the tenant an itemized statement of any money not returned D. if the property is sold, the security deposit may be retained by the seller

24. If an associate broker violates licensing law: A. the sponsoring broker's license is suspended B. the associate broker's license is suspended for one year C. there is automatic revocation of the associate broker's license D. none of the above

25. Mr. Buyer made an offer of $80,000 on a house and included a check for $5,000 in earnest money. The seller accepted the offer. The next day, Mr. Buyer found another house he liked better and tried to back out of the accepted offer. In this case: A. Mr. Buyer may do so and recover his $5,000 B. Mr. Buyer may do so, but must forfeit the $5,000 earnest money to the seller C. Mr. Buyer may not back out without the risk of being sued, and must forfeit his $5,000 to the agent D. Mr. Buyer may do so, but must pay the agent's commission

26. The discovery of a defect which renders a property useless, or almost useless to you, will allow you to rescind the sale under: A. redhibition C. the license law B. Defect and Discovery Act D. rules and regulations

27. Which of the following would not be a cause for disciplinary action: A. making promises of a nature likely to persuade or induce a prospective buyer by promising profits B. failure to include a specific termination date in an exclusive listing C. acquiring a listing in which the broker gets to keep all monies in the purchase price above a specified amount D. failure to submit to an owner, before his acceptance of an offer, all written offers received for property listed for sale

28. Bill Jones is a partner in a partnership in commendam. This means: A. he is personally responsible for the partnership's debts B. the partnership agreement is in writing C. no other partners may join the group D. he is part of a limited partnership

29. When land is expropriated by the state, the landowner may expect compensation as follows: A. the full appraised value of the land C. the appraised value plus 15% B. the sales price plus 5% per year of ownership D. all loss suffered by the landowner

30. Licensees are required to furnish to their clients, a copy of any document which the client has signed pertinent to a : A. immediately C. within 5 calendar days B. within 72 hours D. within 10 calendar days

31. All of the following are types of donations inter vivos EXCEPT: A. gratuitous B. remunerative C. onerous D. aleatory

32. One who inherits as a testate successor is known as a(n): A. heir B. legitime C. legatee D. testatrix

33. When selling her own home, a salesperson must inform the buyer of her ownership at which of the following times? A. after she has accepted the purchase agreement B. at the time she offers it for sale C. when she negotiates the commission D. only if she sells her home to another salesperson

34. If a salesperson changes his residence address from a house in Metairie to a house in New Orleans, he must: A. notify the Commission only if moving across parish lines B. notify the Commission within 10 days C. notify his broker within 10 days D. no notification is required if he remains in Louisiana

35. Which of the following statements about investigations of licensees is true? A. the Louisiana Real Estate Commission may, upon its own motion, investigate the actions of any licensee B. the Louisiana Real Estate Commission shall, upon the verified complaint in writing of any person, investigate the actions of any licensee C. the Louisiana Real Estate Commission may investigate unlicensed persons D. all of the above

36. If performance of either party depends on an uncertain event, what type of contract would you have? A. aleatory B. onerous C. gratuitous D. remunerative

37. Which of the following is always illegal? A. failure to disclose known material defects to buyers B. accepting other than cash as earnest money C. acting for more than one party in a transaction D. all of the above

38. Reciprocity: A. is used to equalize taxes among various tax assessors B. requires brokers to distribute sales commissions quickly C. requires a nonresident license applicant to have a real estate license in his resident state D. requires commissions be split 50 - 50 between brokers

39. Which of the following best describes the contrasting characteristics between specific performance and earnest money? A. specific performance is when a stipulated sum is set as the claim for breach of contract, and earnest money is when you can be sued in earnest due to breach of contract B. specific performance states as its premise that you will receive double the money if the other party breaches, and earnest money states as its premise that the aggrieved party is allotted triple damages C. specific performance is more legally simplistic than the more complicated sue-oriented earnest money D. specific performance can be characterized by the ability for one to sue another if breach of contract is realized, and earnest money can be characterized as having a stipulated sum represent the damages if breach occurs, because no lawsuits can be filed in an earnest money agreement

40. When a broker terminates a salesperson, he must: A. give a written explanation for the termination to the salesperson within 5 days B. notify the Real Estate Commission within 10 days C. immediately notify the terminated licensee by certified mail D. send the license to the licensee along with a letter of explanation

41. When a sponsoring broker's license is revoked: A. all sponsored licensees are suspended B. all salesperson's licenses are automatically revoked C. all licensees must transfer to another company D. all licensees working for that broker must pay the transfer fee

42. Subdivision regulations (private deed restrictions) may be modified by those affected within what time period? A. at any time if ½ the owners agree B. after 10 years if ⅔ of the owners who own ⅔ of the land agree C. after 15 years if ½ of the owners who own ½ of the land agree D. at any time if ⅔ of the owners agree

43. A licensee's license is revoked and the licensee appeals the decision. During the appeal, which of the following is true? A. the trial must be held within 90 days B. the licensee may earn commissions on deals already negotiated, but may not otherwise engage in the real estate business C. the suspension or revocation shall not be effective until final judgment of the court having original jurisdiction of the appeal D. the licensee may represent sellers, but not buyers

44. Fred buys a property “subject to a mortgage.” Based on the characterizations of this procedure, which of the following best shows where liability is placed? A. the seller is primarily liable C. the seller is not liable B. Fred is primarily liable D. none of the above

45. Which of the following is not allowed to obtain recovery from the Recovery Fund? A. the spouse of the judgment debtor B. a licensed broker or salesperson who acted as agent in the transaction which is the subject of the claim C. a licensed broker or salesperson who acted as principal in the transaction which is the subject of the claim D. all of the above

46. All of the following are true of tax sales EXCEPT: A. there is no bidding B. the property is sold for taxes, penalties, interest, and costs due C. there is a 3 year redemption period after the tax sale D. a deficiency judgment may be obtained for insufficient funds at the tax sale

47. If you make a donation to another person while you are still living, what type of donation have you made? A. donation inter magnus C. donation inter vivos B. donation mortis causa D. donation la casa

48. Upon the death of a spouse, the surviving spouse must be given: A. naked ownership of all property B. abusus over all community property, and usus of separate property C. full or perfect ownership of half of the property D. usufruct over the community property

49. For a broker to collect a commission from both the buyer and seller, the broker must notify: A. the Real Estate Commission in writing 10 days prior to any such arrangement B. the seller only C. both the buyer and seller prior to any agreement D. the buyer only

50. Real estate brokers are required to retain records of all real estate transactions for at least: A. 1 year B. 5 years C. 7 years D. 12 years

51. An olographic will is: A. illegal B. one that must be notarized and witnessed C. one that is handwritten D. legal if prepared by an attorney or notary

52. If the owner of the dominant estate purchases the property belonging to the servient estate, under Louisiana law, the predial servitude is extinguished through: A. assemblage C. predial deficiency B. confusion D. organizational alienation

53. Broker Bob plans to open an additional real estate office in his home. He will use the office to meet prospects and do occasional computer work. The Louisiana license law will require him to: A. be sure the office has a separate entrance B. put a sign in the yard that says “owner-agent” C. apply for a branch office license D. have separate escrow accounts from the main office

54. The amount of commission charged a client is established: A. by agreement with local Real Estate Boards B. by the Louisiana State Legislature C. in negotiations between broker and seller D. in accordance with the Federal Consumer Protection Act

55. If a real estate sales license is not renewed within 3 months of expiration, the licensee must: A. reapply as an initial applicant B. pay the renewal fee and complete the 12 hours of continuing education C. submit a letter of explanation, pay the renewal fee, and complete 36 hours of continuing education D. retake the 90 hours of prelicensing education and retake the licensing examination

ANSWER KEY FOR GENERAL EXAMINATION

1. D 46. B 2. A 47. B 85 x 190 = 16,150 sq. ft. 3. B 6,400 ÷ .40 = 16,000 sq. ft. 55.75 x 120 = 6,690 sq. ft. 16,000 ÷ 200 = 80 ft. frontage 16,150 + 6,690 = 22,840 sq. ft. 6,400 ÷ 80 = $80 per front ft. 22,840 x $2 = $45,680 sale price 4. C $45,680 x 8% = $3,654.40 5. B 48. B 6. D 49. D 7. D 50. C 8. B 51. C 9. B 52. A 10. A 53. B $345 x 2 = $690 11. A $425 x 3 = $1,275 12. C $690 + $1,275 = $1,965 total rent 13. C $1,965 ÷ 30 = $65.50 daily rent 14. B 9% of $25,000 divided by 12 $65.50 x 11 = $720.50 rent credit to buyer 15. D 54. D 16. B 55. A 17. B 56. B 18. C 57. C 19. B township contains 640 acres x 36, or 23,040 58. C acres. 59. B 1,412 x 12 = 16,944 ÷ 11.5% = 147,339.13 23,040 ÷ 90 = 256 acres 60. D 256 ÷ 640 = 40% 61. B 20. D 62. A 21. B 63. C 22. B 1,200 x 700 x ½ = 420,000 sq. ft. 64. A 420,000 ÷ 43,560 = 9.64 acres 65. C 50 x 40 = 2,000 sq. ft./house 9.64 x 750 = $7,231.40 x 8% = $578.5124 400 x 2,000 = 800,000 23. A 75 x 43,560 = 3,267,000 24. D 3,267,000 x ? = 800,000 25. C 800,000 ÷ 3,267,000 = .245 = 24.5% 26. D 66. D 27. A 20% ÷ 80% = 25% profit 67. D 28. B 68. C 29. D 69. A 30. D 70. A 31. C 1 point = 1% of mortgage; 4 points = 4% of 71. A mortgage; 72. B 137 x 50 = 6,850 sq. ft. $50,000 x .04 = $2,000 6,850 x $4.50 = $30,825 32. A 30,825 x .0725 (7¼%) = $2,234.81 33. D 73. B 34. B 74. D 35. D 75. C $72,000 x 67% = $48,240 36. B $48,240 ÷ 100 x $6.50 = $3,135.60 annual taxes 37. D $3,135.60 ÷ 12 = $261.30 monthly taxes 38. C 60' x 7 + 97 x 7 76. A 39. A 77. A 40. C 78. D 41. B 79. C 42. A 80. D 90 + 175 + 90 + 175 = 530 ft. 43. C 70' wide and 40' deep 530 x $1.25 = $662.50 44. A 530 x 6.5 = 3,445 45. A 3,445 x $0.825 = $2,842.13 $662.50 + 2,842.13 = $3,504.63

ANSWER KEY FOR STATE EXAMINATION

1. D 12. D 23. A 34. B 45. D 2. A 13. B 24. D 35. D 46. D 3. C 14. C 25. B 36. A 47. C 4. B 15. C 26. A 37. A 48. D 5. B 16. B 27. C 38. C 49. C 6. A 17. C 28. D 39. D 50. B 7. C 18. B 29. D 40. C 51. C 8. C 19. C 30. A 41. A 52. B 9. D 20. B 31. D 42. B 53. C 10. D 21. D 32. C 43. C 54. C 11. B 22. B 33. B 44. A 55. A

CAUTION: If you have not scored at least 85% on each section of this practice test, you should not attempt the final exam. The final exam should only be taken when you are sure you will pass.

SCORES # Wrong = Percentage

General Examination 1 = 99% 13 = 84% 25 = 69% 2 = 98% 14 = 83% 26 = 68% 3 = 96% 15 = 81% 27 = 66% 4 = 95% 16 = 80% 28 = 65% 5 = 94% 17 = 79% 29 = 64% 6 = 93% 18 = 78% 30 = 63% 7 = 91% 19 = 76% 31 = 61% 8 = 90% 20 = 75% 32 = 60% 9 = 89% 21 = 74% 33 = 59% 10 = 88% 22 = 73% 34 = 58% 11 = 86% 23 = 71% 35 = 56% 12 = 85% 24 = 70% 36 = 55%

State Examination 1 = 98% 11 = 80% 21 = 62% 2 = 96% 12 = 78% 22 = 60% 3 = 95% 13 = 76% 23 = 58% 4 = 93% 14 = 75% 24 = 56% 5 = 91% 15 = 73% 25 = 55% 6 = 89% 16 = 71% 26 = 53% 7 = 87% 17 = 69% 27 = 51% 8 = 85% 18 = 67% 28 = 49% 9 = 84% 19 = 65% 29 = 47% 10 = 82% 20 = 64% 30 = 45%