75 Questions with Answers to Pass the Real Estate Exam in 2025. Test Question Review. #realestate

My name is Jonathan go forth with Keller Williams Platinum Partners thanks for joining me I want to explain what this is this is uh what I would call 75 of the best of the best real estate practice questions to help you study to go past the real estate exam these come from all my other videos so I've handpicked these 75 questions on purpose to put together what I think are the best questions out there to help you Study so I have renumbered these from 1 to 7 5 in green so that as you go through

the video you can take breaks and write down the number you're stopping on so you can come right back to that point in the video uh I'm setting this up in such a way that you can listen to it while you're driving uh you can listen to it late at night you don't just have to watch it just to help you study more efficiently while you're out driving around um You're going to see the old numbers from Whatever video I pulled it from ignore those just look at the green numbers um as soon as you

start to learn something hopefully in the first five questions uh please subscribe give this video a like these are good for all 50 states these are National questions so no matter where you live you will see questions like this on your real estate exam and last after you pass the exam come back to one of my test question videos and Just put a comment I passed yay I passed um everyone would love to celebrate with you and it's a huge encouragement to other people who will be coming along later also studying in the future months

let's get started here we go question number one regarding residential property deed restrictions can only be enforced by the court by the police by the HOA which is uh stands for the homeowners association or number four it can be Enforced by the board governing the HOA the homeowners association so regarding residential property deed restrictions can only be enforced by the your answer is number one the court the court would enforce deed restrictions number six after getting licensed a new realtor took on a buyer the realtor was responsible for a chain of events that led to

the sale of a Property for this buyer the realtor is legally called the benefactor the procuring cause the agent on record or the supporting cause so the realtor is legally called number two the procuring cause if there is ever an issue between you and another realtor over a commission dispute the agent with the procuring cause is most likely going to Prevail that's going to be the agent who Can show the strongest chain of events causing the buyer to purchase the home that is procuring cause something you're going to want to make sure you understand number

seven two weeks after going under contract to purchase a home the buyer decides to also purchase the small empty lot connected to the vacuum yard also owned by the same seller what document will be used to transfer the extra lot at the same time with the closing of the Home number one a contingency form number two an amendment number three an addendum number four a sell's land disclosure and your answer is number three and addendum and addendum adds to the contract since you're simply adding the extra lot into the contract with the house it will

be an addendum to add it an amendment which is number two an amendment is used to make changes to Something that's already in the contract like changing the price or changing the closing date or changing the financing terms something that that's already in the contract that needs to be changed that's what an amendment is for if you're adding something into the contract along the way it's an addendum and you kind of just remember at the beginning add you're adding something to the contract what would not be enforcable Regarding deed restrictions number one verbally issued rules

not recorded in public record number two anything listed is being forever number three restrictions based on race ethnicity or religious preference number four all of the above so let's talk about this one a little bit number one let's do a little teaching with this one question we got three questions and you're going to Learn a little bit more uh from this one especially number one so again what would not be enforcable regarding deed restrictions number one verbally issued rules not recorded in public record so when it comes to deed restrictions they have to be in

writing and they have to be available in public record they have to be recorded with the courthouse so they are available in the public record so that's A couple key things about deed restrictions uh nothing verbal is really enforcable and so there's a key right there number two anything listed as being forever so the key there is listed as being forever that's something that is just not going to be enforcable it's um you don't want anything that's ever listed that says something is going to last forever Because nobody knows what could last forever and something

could be revoked things can be changed so that right there is not something that's enforcable either being listed forever that's not enforcable number three you will see phrases like this throughout your real estate exam every Real Estate Commission in the country loves to test you on Race ethnicity religious discrimination items so when you see a phrase like that you're going to want to take that one Seriously many times when they include phrases like that uh that could be your answer and in this cas it is too uh you cannot enforce anything that would ever discriminate

against any protected class such as race ethnicity or religion and so your answer is number four all of the above none of those can be enforcable regarding deed restrictions next question deed restrictions on residential property can only be Enforced by the number one homeowners association number two a majority vote of the residents number three the title company or number four court so that question again deed restrictions on residential property can only be enforced by the court number four is your answer only the court can enforce restrictions this burdens or places limits on the Title to

a property and when you see that I want you to immediately know it's number three that is the definition of an encumbrance so here's your options for this an app pertinence joint tency an encumbrance or a granting Clause um many people will get confused an app pertinence with an encumbrance just because they kind of sound similar they're big words and they're words that you just don't don't use these and So an encumbrance is when you have something that has burdened or placed limits on the title to a property that is an encumbrance against the title

now what is an app pertinence what is number one well let's review what is number one an app pertinence the thing I want you to remember about an apperance is it runs with the land when you hear that phrase that's tied kind of with an apperence an Impertinence are things that transfer automatically with the sale of land and what's associated with it so an improvement is an apperance to the land a house is a big Improvement on the land and it runs with the land it transfers automatically with the sale of land when that title

transfers um a shed an inground pool um landcaping all these things that are attached become impertinences uh rights Are also impertinences mineral rights water light water rights those things are also impertinences they automatically transfer because they run with the land emans also would run with the land we're going to talk about that on a on another question here in just a moment on another video um so at this point uh so your answer there is encumbrance an encumbrance is something that burdens or places limits on the title to a property That's on here on purpose

I want you to memorize that I cannot even tell you how big of a deal this question is these are the fees that a buyer pays to close the transaction number one the sell loan payoff number two earnest money number three the seller expenses and fees and number four closing costs your answer is number four closing costs so closing is the final step in executing a real estate transaction I want you to remember that phrase right There closing is the final step in executing a real estate transaction what is the final step in a real

estate transaction closing you've got to remember that that that right there comes out of another practice test question closing is the final step in executing a real estate transaction and the buyer pays their closing costs on the day of closing a buyer just closed on a home and took out a mortgage loan with Monthly payments of $1,725 40 which includes principal interest taxes and insurance the loan is for 15 years with a final payment of $132,600 what type of loan is this number one a jumbo loan number two a balloon payment mortgage number three a

reverse mortgage number four a 15year mortgage with an adjustable arm and your answer is number Two that is a balloon payment mortgage so a balloon is a mortgage that doesn't fully amortise over the terminal note so it leaves a balance due at maturity at the end of the loan there's a balance due and that's what we're seeing in this question so when you see that you know oh yeah it's a balloon that's the balloon right there at the end the final payment is called a balloon payment because of its large size balloon mortgages are uh

they're More common in commercial real estate so you may not see them if you're going to be selling primarily residential uh but you have to know the commercial loans because uh if you're going into commercial or residential you are taking the same real estate exam a person is selling their dining room china cabinet table chairs piano and other personal property items what would they use to transfer title number one a title policy number two a deed number three a Settlement statement or number four a bill of sale your answer is number four a bill of

sale and that's what we talked about just now the bill of sale is the instrument used to transfer personal property next question an example of severance in real estate would be number one the process of cancelling a real estate contract number two paying off the mortgage on a Property number three receiving a final paycheck after being fired from a job number four cutting a tree in the backyard and selling as firewood and your answer is number four that is a perfect example of severance it's cutting a tree in the backyard and selling it as firewood

that is an example of going from Real Property to personal property next a seller hires a broker to list a commercial space currently leased As a floral business the tenant is moving out in 30 days the seller says that all the personal property is not included in the sale a buyer looking at the property ask the broker about the refrigerated display cases along the wall that appear to be attached the broker should say the display cases are number one excluded in the sale as trade fixtures number two automatically Stained because they're attached number three apperences

and they will stay number four they're excluded because they have been fully depreciated now I will tell you on this question most people get this wrong most people are going to pick number two they're going to think they're automatically stained because they're attached and that's what they're going to Pick that would also mean number three is correct because that would make them impertinences they're improvements and they would automatically stay if they're attached however this is commercial it's commercial property this is a commercial space remember when they um ask about commercial property just put a little

different mindset on when you're reading a question about commercial property like this is a perfect example because it involves a trade fixture and that's What we just learned about in this video so even though it's attached because it's a trade fixture in this case it would not stay because it's regarding commercial space so I hope this helps Please Subscribe give this video a like individual unit owners in a condominium building have what type of ownership in regards to the common areas so some condo buildings have common areas things such as a a pool um a

gym so let's read that again Individual unit owners in a condominium building have what type of ownership in regards to the common areas number one joint tency number two tency in common number three Collective tency number four HOA homeowners association tency and your answer is number two tency in common mortgage venders use a debt to income ratio as a number one way of calculating a buyer's net Worth or the method of determining the total amount needed for escrow or number three a guide for setting the minimum amount of earnest money or number four as a

loan qualifying tool so mortgage lenders use a debt to income ratio as a number four as a loan qualifying tool what is the general technique of creating distances and angles between three-dimensional positions of Points number one surveying Lots exclusively zoned for multif family construction number two surveying Lots in a trative land to be built only for commercial construction number three surveying number four this specific method of surveying is used by the USDA in rural areas for surveying areas in preparation for septic tanks to comply with County regulations your answer is number three Surveying so the

purpose of a survey is to accurately measure land in a legal Fair manner uh surveying is the general technique of determining three-dimensional positions of points and the distances of and angles between them so this question is asking for the general term and so the answer is just surveying so that's a good question now that's you know a piece of advice when you go through a real estate exam you Got to put your put put yourself in the position of the people who are writing these questions they want to test your knowledge so they're going to

create a question and they're going to give you one correct answer so they've got to create three wrong answers and so you know like I've got a kid right now in high school who was studying for the ACT and so they're teaching a lot of uh test taking um Concepts to help pass an exam Like the act so in this read that that question what is the general technique and that right there tells you you can knock out number four because number four says this is a specific method so you can tell it's that number

four is not a generic technique anyway that's not even a correct answer so you can knock some of these out just by reading the question what is the general technique and so the most General one is number three surveying which of the Following statements is false regarding mortgage loans for housing with federal government support number one the federal government ensures lending agencies against losses number two a loan through the Veterans Affairs which is the VA may be used for financing condo number three the FHA ensures loans for either single family homes or apartments or number

four the federal Government provides funds to the lender The Lending agency so this one's a little bit tricky it's a little bit tough you may not know the answer to this your answer is number four all of these are true except number four the federal government does not supply funds directly to lending agencies they don't do that but they do the other three so that's your answer right there number Four a single person has bought a condominium in a seven-story building he was told he took ownership to his condominium as fee simple title he is

now curious how are the common elements owned number one joint tency number two also owned as fee simple number three they are owned by the management company number four tenants in common I want to read this question again this is a big question let's look At this whole thing a single person to spot a condominium in a seven-story building he was told he took ownership to his condominium as fee simple title he is now curious how are the common elements owned now you're going to see things like this on your real estate exam a simple

question this is a very simple question but they've complicated it with a lot of other stuff that has nothing to do with the question all this question Is asking how are those common elements owned that's it it doesn't matter he's a single person doesn't matter it's a seven story building it doesn't matter how he took ownership as fee simple title none of that has anything to do with this question all they want to know how are the common elements owned and your answer is number four tenants in common remember we just studyed what tenants in

common is that's when you Have two or more owners and of course you should know what a common element is those common places in the condo building are things like the pool the gym uh maybe it's public hallways um Landscaping areas could be sand volleyball if you're at a beach all those are common areas and those are owned uh as tennis and common next question the owners of a condominium unit are respons responsible For one paying their own mortgage number two paying their own insurance number three paying their own HOA dues number four all of

the above so remember you do own each each condo unit as fee simple title and so you do pay your own mortgage if you have a mortgage you pay that yourself here's how Insurance works on a Condo building there's going to be a master policy that covers the exterior Typically the homeowner of the condo the condo owner has their own insurance policy and it's typically from these studs in now you need to find out what the master policy actually covers as to what responsibility is placed on the owner but you do have to insure your

own things and the interior of your property and typically condo insurance is cheaper because you're not covering the exterior you're not covering the roof you're not Covering the exterior uh and then number three on there is paying your own HOA dues in case you are new to what an HOA is that stands for Home Owners Association and that's what an HOA is it's a homeowners association in this case the homeowners Association has its own Master policy to cover the exterior of the condo building and so you have to pay the HOA dues and so yes

answer is number four all of the Above next question in a condominium the board of directors are selected by whom so let's talk about this in a condominium the board of directors are selected by whom number one the condominium unit owners number two the developer number three the management company number four the local city council well you can knock out number four you know it's not going to be a Local city council they would have no jurisdiction over your condo building to approve a select a board of directors your answer is number one the condo

unit owners all the different unit owners they get to select who the board of directors is going to be a waterline broke in an apartment what legal recourse does the tenant have so I want to make sure you know who the tenant is you got a landlord you got A tenant the tenant is the renter the tenant is paying rent to rent the apartment so again a waterline broke in an apartment what legal recourse does the tenant have number one environmental eviction number two special eviction number three constructive eviction number four actual eviction this is

an excellent question you're going to learn two vocabulary words on this one uh this is a good one Um there are two types of eviction actual eviction and constructive eviction so right there it's not number one it's not number two your answer is number three constructive eviction so actual eviction is when the tenant stops pain and breaches the terms of the lease and the landlord evicts them that's actual eviction the tenant stops pain but constructive eviction is when the Landlord doesn't maintain the property in a livable condition the tenant is released from any obligations but

they must vacate because it's uninhabitable and that's why the answer is number three constructive eviction a waterline broke and so the legal recourse that the tenant has is to get out of that lease and they have to move out but they're released from anyi obligation they don't have to pay any more rent they simply are least because It's uninhabitable all right if you have not liked this video yet please give it a like Please Subscribe you'll hear me ask this many times which of the following is not an essential element of a contract number one

the contract can be for an unlawful purpose number two consideration number three competent Parties number four offer and acceptance so again which of the Following is not an essential element of a contract your answer is number one the contract can be for an unlawful purpose that is not allowed you cannot do a contract for an unlawful purpose so that would not be an essential element of a contract uh consideration is something of value given you need that uh competent parties number three on there you need that uh they must be of legal age they must

be Of sound mind they must be alive at the time of acceptance and then number four uh offer and acceptance that's a meeting of the minds it's another phrase you might hear related to that uh the buyer and seller agree on all the terms the other three number two three and four those are essential elements of a contract so your answer is number one one because that is not an essential element number 17 the brother of a friend of the seller stops by the Seller's house during a college graduation party after viewing the home this

individual offers to buy it from the seller the seller verbally accepts this would be called one an option to purchase two valid three a contract or four unenforceable your answer is number four it's unenforceable a contract has to be in writing to be enforcable so before we go on to the next one a couple things after you pass The exam come back to one of my test question videos and just say yay I passed whatever state you live in all of these questions are good for all 50 states so yes please it encourages everyone else

who is going to be taking the exam soon that you passed what is the difference between a lease purchase contract and a lease option contract number one a lease option is only used for commercial tenants whereas a lease purchase is used only for Residential buyers number two a lease purchase contract and a lease option contract are the same thing number three the difference is that the lease option only obligates the seller to sell number four the difference is that the lease option only obligates the buyer to buy your answer is number three your answer is

the difference is That the lease option only obligates the seller to sell with a lease option the buyer is not forced to buy the property if they change their mind or they cannot get financing a lease purchase agreement commits both parties to the sale regarding financing the lower the loan to value ratio the higher the credit score or the amount that can be loaned to the buyer Or the appraised value or equity so again regarding financing the lower the loan to value ratio which is you're going to see that called the LTV the loan to

value ratio then the higher the the answerers equity so the lower the ratio the higher the equity a Liz pendant was recorded on a property during a lawsuit the lawsuit was dropped after 60 days but the LZ pendant was not releas least which of the following statements Best describes the current situation number one the property currently has a cloud on the title number two the property has a lean against it due to the Liz pendants number three the Liz pendants was automatically released when the lawsuit was dropped number four the property cannot be sold for

a minimum of 180 days your answer is number one the property currently has a cloud on the Title during the foreclosure on a property the following would become the priority for repayments the mortgage lean a judgment lean an income tax lean or a property tax lean your answer is number four a property tax lean a property tax lean always takes priority for repaying payment even over the mortgage lean so that's one I really want to make sure that you remember screenshot all of These if you have not been screenshotting these go back screenshot the ones

that you might have struggled with that way you don't have to watch the video over and over you could just uh review through images on your phone um screenshot that a property tax lean that takes priority for repayment if advertised by itself which of the following would violate truth and lending laws that's what Tilla stands for truth And lending so if advertised by itself which of the following would violate truth and lending laws one easy terms two no down payment required three FHA financing available four assumable loan your answer is number two no down payment

required so no down payment required triggers the truth and lending disclosures because it's a specific Statement only about one aspect of the financing easy terms does not trigger the regulation because it's non-specific an example of severance would be B cutting down a large tree in the front yard and shopping it up into firewood number two buying a ceiling fan and installing it in a bedroom number three removing clouds on a title by paying off leans on a property number four severing all Incumbrances tied to a property so an example of severance so this question you

know all of these are great to practice with all of these have come from people who have taken the exam and these are questions that they remember seeing in different forms so these are here to help you practice the word Severance is a fantastic vocabulary word you have got to know it you can see it brought into a variety of different forms of uh real Estate exam questions example of severance would be number one cutting down a large tree in the front yard and shopping up into firewood so the question what is Severance so Severance

is going from Real Property to personal property like cutting trees into a f into firewood a fixture which is another vocabulary word a fixture is going from personal property to real property so an Example of a fixture would be uh installing a ceiling fan you go you go to Lowe's you go to Home Depot you buy a ceiling fan off the shelf and then you have it installed and you attach it and now that becomes a fixture so that's what um f a fixture is going from personal property to real property but Severance is going

from Real Property to personal property so a tree let's say this is a beautiful tree in the front yard that is a fixture it is permanent It's attached to the property and when you cut it down and you chop it up you get rid of it now it becomes personal property that's what Severance is regarding Anti-Trust laws which action can be legally performed by a licensed real estate agent number one price fixing two dividing territories three selling a property you have listed to a buyer who lives in a different state number four conspiracy to Boycott

so the big question here that you need to know what are Anti-Trust laws so antitrust laws essentially prohibit business practices that unreasonably deprive consumers of the benefits of competition uh it resulting in higher prices for products and services anti-rust laws promote free and Fair competition that's what you need to know Anti-Trust laws that They are promoting business Practices that unreasonably deprive customers of competition and so number one price fixing is illegal cannot do that number two dividing territories that is totally illegal you cannot divide territories now let's talk about that your answer is three number

three selling a property you have listed to a buyer who lives in a different state number three is the Answer um a lot of people will pick number two and for some reason this one gets missed it's uh it's kind of the way it's worded it's a little tricky when you're sitting there a little stressed have a lot of anxiety you're skimming these questions you're reading them quickly and you pick number two because can't be number three um selling a property you've listed to a buyer who lives in a different state of course you can't

do That you'd have to be licensed in the different state that's what people think when they skim that that's not what that's saying can you sell a property you have listed to a buyer who lives in a different state of course you can yes and that's why it's your answer for example let's say say you are a real estate agent in Florida you have a listing in Florida many of the buyers in buying Property in Florida they don't live in Florida they're buying second properties they live in the other 49 states they're investing real estate

investing into uh Florida a beautiful uh vacation beach condo in Florida so yes you can sell the property you have listed to a buyer who lives in a different state you are not in the different state it's the buyer who's in the different state and so that's why number three is your answer number four conspiracy to Boycott absolutely not that is totally illegal now one and four are obvious those are illegal you cannot do those number two what is dividing territories this is what that is this is why uh a licensed real estate agent cannot

do that for number two so let's say this is a large metropolitan area where you live where you are a real estate agent there is no way that you're going To sell in the entire metropolitan area it's too big let's say for example you live in a suburb on the south side of the Metro you are not going to go far up north to show homes you're just not going to do it you're going to refer those to other agents who live 30 miles up there instead so what this is actually saying for dividing territories

what this is referring to let's say there's a broker in the area of the South and Another broker in an office up north and they decide to get together and they work out a deal the agents on the south are not going to sell up north period they're going to divide the city divide the territory the agents up north will only be selling up north they will not be allowed to come down they've divided that territory now regarding Anti-Trust laws you know these laws are there to promote uh competition that's what this Law does it

promotes competition and so when you start dividing up territories you are restricting competition and that violates antitrust laws your answer is number three and I want you to screenshot that I want you to understand that very likely very possible that you would see an Anti-Trust law type of question on your real estate exam when the deed in which a buyer takes title to a property contains the following Clause subject to the existing Loan number one the buyer agrees to assume the loan and make the loan payments directly to the lender or number two the loan

is paid at closing to give free and clear title number three the home might be foreclosed on if the seller does not make the loan payments on the existing loan or number four the seller is relieved from any further responsibility after closing your answer is number Three buying subject to means buying a home subject to the existing mortgage it means the seller is not paying it off and the buyer is taking over the payments the seller remains responsible for paying off the loan because it's still in the seller's name so the seller needs to confirm

that the buyer is paying their loan each month so let's look at these other choices so let's read the question again when the deed in which a buyer takes Title to a property contains the following clause subject to the existing loan number one the buyer agrees to assume the loan and make the loan payments directly to the lender partially true the buyer is probably going to be making the loan payments directly to the lender but the buyer is not assuming the loan the loan is still fully under the responsibility of the seller it's still in

the seller's name the the buyer is not assuming it Number two the loan is paid at closing to give free and clear title it is not paid at closing the loan continues because it's the deed says it's subject to the existing loan that loan will continue until it's fully paid off um number three is the answer the home might be foreclosed on if the seller does not make the loan payments on the existing loan that's very true the buyer is supposed to be making them but if the buyer doesn't make them and The seller doesn't

make them then the home might be foreclosed on so if falls under the seller's responsibility to make sure those loan payments are taking place so if the if the seller finds out the buyer is not making payments the seller had better start making those payments or this is going to fall back on the seller number four the seller is relieved from any further responsibility after closing no the seller is fully responsible until that loan is paid However many years are left these are State specific laws that set forth Li for interest rates in specific types

of lending instruments to prevent lenders from imposing unreasonable or predatory interest rates number one Regulation Z number two the Federal National Mortgage Association number three Usery laws number four respa and your answer is user laws number three user laws the User laws are State specific laws that prevent lenders from charging High interest rates unreasonable predatory interest rates that is what the user laws do this takes all of the cost of borrowing as a percentage number one the interest rate number two the annual percentage rate number three the amortization rate number four the respa rate well

this is a nice question because you Can eliminate number four easily there's no such thing as a respa rate there's no such thing as an amortization rate either so you got it down to uh number one and number two the interest rate or the annual percentage rate your answer is number two the annual percentage rate that takes in all of the costs of borrowing as a percentage uh this refers to to the concept of ownership rights number one a deed number two fully executed sales Contract number three title number four settlement statement your answer is

number three the title remember the title is called the bundle of Rights look up there number one the deed is the document that legal Al transfers ownership and rights number three is the bundle of Rights that's the concept of ownership rights number one is the document that Transfers those rights next question an app pertinence would be defined as number one tency in common number two the agenda attached to a sales contract number three the release of a mortgage after it has been fully paid or number four a right that passes with the land an app

pertinence and your answer is number four an apperence is a right that passes with the land examples are mineral Rights air rights and water rights those run with the land and that's what I want you to memorize keep that in your head in your mind when you see the word app pertinence those are things that run with the land and of course the most famous for us Realtors is the Improvement on the land being the house because that's what it is that we all want to sell our houses the improvements those apperences because they run

with the Land next question the fen are characteristic istics of land except number one the permanence of investment number two it's immovable number three it's improvable number four movable the following are characteristics of land except number four land is not movable can't move it that's why you've got a uh legal description is very clear land cannot be Moved so your top three choices there are characteristics all of those except number four movable movable is a wrong answer read this first one read it with me a house sold for $400,000 the buyer took out an 80%

loan with a 4% interest rate paid $3,000 in closing costs and paid three discount points what was the total amount due at closing by the buyer so read it again with me let's Read it again a house sold for $400,000 the buyer took out an 80% loan with a 4% interest rate paid $3,000 in closing costs and paid three discount points what was the total amount due at closing by the buyer so the first thing I'm going to do let's figure the down payments and so there's two ways to do it uh the first way

we're going to take the $400,000 price times 80% which is8 that equals $320,000 for the loan and then we take $400,000 minus the $320,000 loan equals $80,000 for the down payment or you can just take $400,000 time 20% and it gets you also $80,000 so that is the down payment that is 20% of the $400,000 so next let's figure those three discount Points I changed that to Blue see where it says and paid three discount points now lately in the last few years in real estate we haven't really used discount points because interest rates are

so great there's really very little reason to buy it down so if you're a brand new uh brand new to real estate you're just now studying for your exam you might have always wondered what is a discount Point well a discount point is 1% of the Loan so in this case uh we have three discount points that's what the buyer is going to have to pay is three discount points so the way we figure that we take the loan remember we just figure the loan of $320,000 times 3% which 3% is the same as 0.

3 and that equals $9,600 for those three points and that's that's how points work so one point would be 1% of the loan Amount and so that's why this is 3% of the loan amount so that's our next amount right there $9,600 that the buyer's going to owe at closing so next let's read the beginning of this again a house sold for $400,000 the buyer took out an 80% loan with a 4% interest rate now on some of these math questions they're going to give you too much Information we don't need to know the interest

rate so when it says with a 4% interest rate you don't do anything with that it has nothing to do with figuring the the answer we're looking for it has nothing to do with the amount due at closing by the buyer so I put a big X on that and this made the question a whole lot easier so let's add up what we have the only amount left and I made it blue is the $33,000 in closing costs they give that To us we don't have to figure anything so look there in red what we

have is $80,000 in down payment which we figured Plus $9,600 for those points plus the $3,000 in closing cost that they give us right there in the question and that adds up to a grand total of $92,700 that is the amount that the buyer is going to owe at closing and that's your answer $992,500 a property with a market value of $200,000 had a tax assessment rate of 177% the tax rate was $4 per $100 of assessed value how much are the real estate taxes oh this is a great question this is a good one

so if you're not familiar with these T diagrams it's a great little way way to help do math problems like this so in this case we're going to figure two percentages to get to the correct answer and so in Black you'll see a t in that Diagram so you first just draw a big T and then on the bottom left you're going to put the big number the whole number in this case it's $200,000 and then on the bottom right you're going to put the rate and in this case it's the assessment rate of 177%

so to get the top number which is a part of the $200,000 you can multiply the bottom two numbers across from each other that big Red X means multiply so to get the assessed value that's the first thing we need to get the assessed value we're going to take $200,000 times 177% and so now you can see across the top right there in red the assessed value equals $200,000 time .17 that's what you do with 177% you scoot the decimal point to the left two places makes that .17 you multiply those together and you Get

$334,000 so now let's read the question again a property with a market value of $200,000 had a tax assessment rate of 17% the tax rate was $4 per $100 of assessed value and that's what we just figured we figured the assessed value and that's where we got that $334,000 but now look at that $4 per $100 because we're going to do another T Diagram we're going to figure another another percentage so in case you're wondering and I'll tell you most Realtors I don't know why we don't really enjoy math we just don't uh it's it's

relatively easy when somebody is explaining it but just to figure it out sometimes it's a little bit uh intimidating and so what is $4 per $100 well that equates to 4% and the way you get a percent you Take four / 100 equals 4% and if you see a question similar to this that's just how you do it and so or just do that in your head 4% is how we're going to figure this next T diagram now remember what we're after remember the question how much are the real estate taxes now this is a

question and I'll be honest a lot of the things you learn in real estate school a lot of the things that you're practicing for to pass the Exam you're not going to use on a regular basis in your real estate career but this is a situation where people are wondering how much are my taxes going to be um you might wonder it yourself especially on new construction how much are taxes going to be on a brand new constructed house where nobody has a uh tax bill yet and this is how you figure it so what

we're going to do draw another T that's the lines in Black put a big multiplication X on the bottom there and let's figure now we have a different whole number which is the $344,000 that we just got on the other T diagram and our rate on the bottom right is 4% so what we're looking for is a part a part of the whole so it's going to be a smaller number than that $334,000 and so we're going to multiply $344,000 time 04 and that gives us $1,360 in taxes that's your answer that is the correct

answer and that's how much the real estate taxes are $1,360 a lot measured 80 ft by 100 ft with the front being 80 ft across it was valued at $3 per square foot plus $20 per front foot what is the total value of the lot so we're going to read it again and I'm going to show you how to how to answer this I will tell you this I saved The easiest one for last so let's read it again together a lot measured 80 ft by 100 ft with the front being 80 ft across it

was valued at $3 per square foot plus $20 per front foot what is the total value of the lot so the first thing we're going to do 80 * 100 ft equals 8,000 square fet and we take that times the $3 and that equals $24,000 now we're going to add to that 80 Because we have the frontage across the front it says being 80 ft across and it's an additional $20 per front foot so we're going to take 80 ft times the $20 that equals $1,600 and you simply add those together so $224,000 plus $1600

gives you a grand total of $25,600 for the total value of the lot that's All that is you're figuring the area first the 80 * 100 ft to get the total square footage of the lot and then you're adding the extra $20 per foot across the front and you know the frontage was 80 ft across that's all that one is and that's a really good one these are State specific laws that set forth limits for interest rates in specific types of lending instruments to prevent lenders from imposing unreasonable or predatory interest Rates number one Regulation

Z number two the Federal National Mortgage Association number three Usery laws number four respa and your answer is user laws number three user laws the user laws are State specific laws that prevent lenders from charging High interest rates unreasonable predatory interest rates that is what the user laws do this takes all of the cost of borrowing as a percentage Number one the interest rate number two the annual percentage rate number three the amortization rate number four the respa rate well this is a nice question because you can eliminate number four easily there's no such thing

as a respa rate there's no such thing as an amortization rate either so you got it down to uh number one and number two the interest rate or the annual percentage rate Your answer is number two the annual percentage rate that takes in all of the costs of borrowing as a percentage all written offers must be number one presented to the buyer number two presented to the local real estate board for compliance number three presented to the real estate to the state Real Estate Commission number four presented to the seller and your Answer is number

four presented to the seller all written offers must be presented to the seller your fiduciary duty is to present all offers to your seller an agent is showing homes to Mr Ramirez who has just moved here from Mexico the agent is intentionally only showing homes to Mr Ramirez and Hispanic neighborhoods so he'll be more more comfortable this practice is best described as blockbusting redlining steering or Streamlining your answer is number three steering regarding residential property deed restrictions can only be enforced by the court by the police by the a a which is uh stands for

the homeowners association or number four it can be enforced by the board governing the HOA the homeowners association so regarding residential property deed restrictions can only be Enforced by the your answer is number one the court the court would enforce deed restrictions after getting licensed a new realtor took on a buyer the realtor was responsible for a chain of events that led to the sale of a property for this buyer the realtor is legally called the benefactor the procuring cause the agent on record or the supporting Cause so the realtor is legally called number two

the procuring cause if there is ever an issue between you and another realtor over a commission dispute the agent with the procuring cause is most likely going to Prevail that's going to be the agent who can show the strongest chain of events causing the buyer to purchase the home that is procuring cause Jake is a licensed real estate agent at a brokerage less than 10 mil From his home he is required to attend meetings submit to address code and do marketing and social media tasks for The Brokerage he is paid twice a month with taxes

withheld from his pay in this type of situation his relationship with the brokerage is most likely as a a multi-million dollar producer b a new hire working for a temp agency C an independent contractor or D an employee I'm going to read it again Jake Is a licensed real estate agent at a brokerage less than 10 miles from his home he is required to attend meetings submit to a dress code and do marketing and social media tasks for The Brokerage he is paid twice a month with taxes withheld from his pay in this type of

situation his relationship with the brokerage is most likely it is most likely as an employee your answer is D Because in this he is being set up uh twice a month with a pay and they are withholding taxes from his pay he's also being given assigned tasks that he has to do to get that pay and that would be an employee relationship now most real estate agents most of you about to pass the real estate exam you're going to be C an independent contractor that's what I am I am self-employed I am not an employee

of my broker but in this example your Answer is D John A Smith makes an offer in writing to purchase a property from Tim Tom son for $510,000 with the seller paying $10,000 of the buyer's closing costs and with the closing date of October 31st Tim Tim signs an acceptance with the provision that the closing be on November 7th what can happen next a John can sue for specific Performance B John can enforce the October 31st closing date C John can back out of purchasing the home without a penalty or D the house cannot be

sold to anyone else until this is resolved going to read it again John A Smith makes an offer in writing to purchase a property from Tim Thompson for $510,000 with the seller paying $10,000 of the buyer's closing cost and with a closing date of October 31 First Tim signs an acceptance with the provision that the closing be on November 7th what can happen next your answer is C John can back out of purchasing the home without a penalty so what is the situation a lot of what's in here doesn't have anything to do with what

you need to know but what this is this is a counter offer situation Tim signs an acceptance with the Provision that the closing date is going to be something different basically you get an offer from John Smith and Tim is going to accept all the terms except the closing date Tim is going to counter back and the change he is making is a different closing date and so Can it can it be a no John cannot Sue there is no contract here yet uh and because of that the answer is not B John cannot enforce

anything there is No signed counter offer C is your answer John can back out of purchasing the home without a penalty John does not have to accept uh this date of a a different closing date and of and D is not the answer of course the house can be sold to anyone else during this there's nothing to resolve here yet you don't have a contract you're just trying to negotiate and figure out the counter offer that Tim is now countering back to John with so your answer was C and A pertinence would be defined as

a tency in common B an addendum attached to a sales contract C the release of a mortgage after it has been fully paid or d a right that passes with the land so this is an app pertinence the question again Ana pertinence would be defined as and so this is this is a very good vocabulary type Question your answer is D and the pertinence would be defined as a right that passes with the land EX examples of this are mineral rights air rights water rights these things run with the land that's the phrase I want

you to memorize with the word apperence an app pertinence it runs with the land uh apperences are rights and restrictions that remain with the Property even when the property is sold a a building a fence a driveway all of these things are AER es and they run with the land so if you're finding this to be a good review then uh please subscribe give this video a like you know I would love to uh help you pass this real estate exam so you can get it done quickly that is some advice uh study your material

practice all of these questions you can there's I'm going to Have links that pop up at the end of this with more test question videos I've got quite a few videos in my YouTube channel check all those out to keep practicing as many test questions as you can and then I want you to go take the exam quickly get all this in your head and then go take the exam don't take too long because you'll you'll start forgetting things if Supply increases while demand remains constant what will most likely happen in Prices so again if

Supply increases while demand remains constant what will most likely happen to prices a prices will decrease B prices will increase C prices will remain the same or d none of the above so if Supply increases while the demand remains constant what will most likely happen to prices your answer is a prices will decrease this is what we call a buyer Market when the demand Stays the same but you get a lot more inventory lots more listings coming on the market lots of listings and the more listings you get while the demand stays the same you

get too many listings and that's a buyer market and prices start decreasing because uh in order to get houses sold people start reducing their prices it's similar to the car market if you get a a uh just a flooding of too many cars on the market and the demand stays the same for the those cars and You get too many cars out there for sale prices are going to drop and so your answer was a FHA insured loans are distinguished from conventional loans by all of the following except so when you read a question like

this how are they different FHA insured loans are distinguished from conventional loans by all of the following except so that means three of these are Going to be different and then you we're looking for the uh the correct answer a interest rates on FHA Loans are generally lower than those on conventional loans B FHA Loans generally provide for a longer repayment period C conventional loans provide for a lower loan to value ratio D conventional loans always permit a deficiency judgment while FHA Loans never Do and your answer is D deficiency judgments are not allowed for

the purchase mortgages and so there is no difference between them they are not different they would be the same on that you cannot have a deficiency judgment to get either an FHA alone or a convention alone the surface of the Earth and the material beneath the surface is part of the a geological rights B water rights C Real property or D the legal description so again the surface of the Earth and the material beneath the surface is part of the geological rights water rights real property or legal description your answer is C that is part

of the real property which of the following is not a way in which mortgages and Trust Deeds differ now I'll be honest I hate questions like this they're confusing they're complicated they're designed to Trick you up we've got a double negative in this question um so let's talk about this type of question it's in here on purpose to help you pass so let's cover this again which of the following is not a way in which mortgages and Trust Deeds differ so when you see a question like this worded like this and you're going to see

a variety of different questions throughout your real estate exam it's looking For what what answer May is similar so three of these are going to be different one of them is going to be similar you are looking for the answer that they have in common and that's how I want you to remember when you read a double negative so again which of the following is not a way in which mortgages and Trust Deeds differ a statute of limitations B Securities C the title or D ownership your answer is B Securities so mortgages and Trust Deeds

they both have the legal right to have the property sold in the event that the borrower defaults because they both have security interest in that property that's what they have in common that's what you're looking for in a double negative what do they have in common your answer is B Securities the rights to minerals laying beneath the surface of land number one They stay with the seller unless otherwise uh specified number two they transfer with the sale of the real property number three they stay public with the county number four they reside with the EPA

to determine at their discretion so read that question again the rights to minerals laying beneath the surface of land your answer to this is number two The rights to minerals laying beneath the surface of land transfer with the sale of the real property these are called apperences so read down there at the bottom with me below apperences run with the land therefore they automatically transfer with the sail apperences include things such as minerals covenants and easements so this is something you need to memorize you're going to get thrown a variety of different questions and Different

formats using the term apperences in this case the uh mineral rights are what's the feature of this question mineral rights automatically transfer ayia pertinence automatically transfers with the sale of the real property so that's why your answer is number uh two a regulation with the purpose of giving all legal individuals an equal opportunity to apply for a loan is one the Fair Housing Act number two the CCA that stands for the credit Consumer act number three the ecoa which stands for the Equal Credit Opportunity Act number four the riparian rights act so when you look

at that so let's read the question again a regulation with the purpose of giving all legal individuals an equal opportunity to apply for a loan is now look at those four choices number four the reparan Rights Act reparan is Dealing with water so it's not that you can just knock that one out the answer is number three the ecoa the Equal Credit Opportunity Act you need to know this and so let's look at this slide I want you to look at what the Equal Credit Opportunity Act is you may see it abbreviated just ecoa so

you need to know ecoa is the Equal Credit Opportunity Act in case they don't spell the whole thing out for you memorize that what ecoa stands For it is a regulation with the purpose of giving all legal individuals an equal opportunity to apply for loans the ACT prohibits creditors and lenders from using someone's race color national origin sex religion or marital status and deciding whether to approve their credit application and that's something right there I would screenshot that which of the following is a common example of real estate police Power so what what is police

power so police power is the government's right to change regulations and make laws for the general welfare of the public that's what police power is you need to know that it's not on here written but you just memorize police power is the government's right to change regulations and make laws for the general welfare of the public now with that in mind here's the question again which of the following is A common example of real estate police power number one verifying real estate licenses through the real estate commissions through the state commissions number two issuing speeding

tickets number three issuing parking tickets or number four zoning and your answer is number four zoning zoning is a common example of real estate police power Time title interest and possession refers to which of these Number one squatter's rights number two severalty number three survivorship or number four fair housing laws Time title interest and possession so your answer is number three survivorship so these are characteristics of joint tenancy which has the right of survivorship for example since I'm just teaching a little bit here you have a husband a wife they buy a house together Along

the way one of them passes away so one of them has died and the remaining who is surviving they take full ownership of the home because of joint tency and so Time title ENT interest and possession refers to survivorship because those are characteristics of joint tency now here's why you should subscribe so click the word subscribe turn on your bell icon next to it so You're notify to future videos so you're not going to be studying for this real estate exam very long you're going to pass you need to cram as much as you can

read all your um material study everything you can and then practice lots and lots of questions you that's where you're really going to learn and where you're going to do well on the exam because the exam is in the format of these kinds of test questions what do easements and leans have in Common number one they are both encumbrances number two they both must have the permission by the homeowner to be filed number three both of these are money claims against the title of the property number four neither of them affect the sale of the

property so let's look at this a little bit you do need to know this basically what we have in here are two vocabulary words easements and leans you need to Know what they have in common so this is why you might think you have these really memorized in your material now we're going to just take it and expand it in a typical kind of test question that you know to be honest it's just time to kind of trick you up a little bit uh uh that's kind of how these exams work um let's look at

number two would that be an option they both must have the permission by the homeowner to be filed that would not be true because Leans can come as voluntary or involuntary some leans the homeowner does not give permission to be filed and they're filed against them anyway um they are not uh money claims easements are not money claims both these are money claims against the title on number three yeah easements are not leans uh are easements or not number four neither of them affect the sale of the property well leans do for sure Easements um

pass along because those are impertinences so let's look at the answer your answer is number one they are both encumbrances and so you this is what an encumbrance is uh read along with me at the bottom leans can be voluntary such as taking a mortgage or involuntary such as a lean for not paying a bill like tax leans or contractor leans for failing to pay many Homes have easements such as utility easements but they are not money claims or judgments both can affect the sale of property because leans have to be paid or released and

sometimes there are easement problems but both of these are incumbrances that's what they have in common they're both incumbrances the best way to determine fair value this will come up throughout your career now I'll be honest a lot of the Things that you're studying like encumbrances apperences you're never going to use those terms on on a day-to-day basis I've never used those terms in 25 years of selling homes but number six has come up during my career so again the best way to determine fair value is number one by determining the replacement cost number two

by using a grm a gross rent multiplier number three by using an Appraisal number four by determining what the seller paid for it and then adding 5% for each year the seller has owned it so your answer is number three it's by using an appraisal that is the best way to determine fair value an example of this we go on listing appointments and we give pricing opinions we are not doing an appraisal we're just giving an opinion of value so for example here's something that I've had throughout my 25 Years on and off a friend

of mine let's say they get a divorce and during the divorce they have to have a fair market value of their home to determine if one of them's going to buy the other one out what the house is worth if it has to come on the market and be sold they have to know this uh during their divorce process and so well Jonathan he's a realtor can come over he'll give us fair value well when that happens here's What's going to happen if I go over there and I do that I'm going to make one

of them mad I'm going to come in a little bit high and one of them is mad because they've got to pay the other one out on a value that was really too high or I come in too low and now the other one's mad and so it puts me in a really bad situation and what I tell them is I am not the best way to determine fair fair value an appraiser is they need to spend the money hire an appraisal to be Done on that house because number three on there using an appraisal

that is the best way to determine fair value the biggest cause of loss of value in real property is due to one the damage from years of wear and tear number two deferred maintenance number three three age number four obsolescence all four of those are good answers they are all four of those cause loss of value Right This Is Where It's tricky because you read that and you're Like uh I don't think I can even eliminate one they're all good answers but look at the question the question says the biggest cause what is the biggest

cause of loss of value your answer is number four obsolescence so obsolescence can refer to economic obsolescence or functional obsolesence it means to no longer be useful it's obsolete and it creates the biggest loss of value in real estate the agency that enforces all Federal Environmental rules and regulations is one the sdwa number two Sarah s a r a number three the EPA number four cira the c r c l a now in my opinion this is one of the easier ones um but it's on here because somebody recently mentioned they saw this type of

question on their exam so I put it on this video to be included your answer is three EPA I want you to just memorize it screenshot shot it the EPA Stands for the Environmental Protection Agency it's the federal agency that deals with environmental issues and that's your answer the Federal National Mortgage Association stands for fnm we pronounce FN ma Fanny May that's the nickname we give FNMA a so the Federal National Mortgage Association is number one a federal agency that buys FHA and VA loans number two a federal agency which acts as a watchdog on

the primary Mortgage market number three a government sponsored private Corporation designed to assist the primary mortgage market number four a federal agency that ensures all types of mortgage loans we're going to talk about this for a moment because uh if you see this I want to make sure you get this one right number one looks like it could be the Answer but your answer is number three I'm going to tell you why we're going to take just a moment because I've been doing this a long time I know what Fanny May is but if you

are just now studying for real estate and you're going through all this information and it's overwhelming I mean you're studying for a very large test the exam covers a lot of different information you know residential and Commercial you're having to learn a lot of stuff all at the same Time you may have always heard of Fanny May but you never really knew what it was so let's talk about what Fanny May is Fanny May is number three that's your answer it is a government sponsored private Corporation designed to assist the prim AR mortgage market so

what does Fanny May do well Fanny May in some ways is number one on there it buys loans it buys all loans it's the purpose of Fanny May so it's as You can see on number three it's a government sponsored private Corporation it is not a federal agency that's the big thing I want you to remember it is not a federal agency it looks like it would be when you read up there the title of it the Federal National Mortgage Association looks like a federal agency it's not and that's why so many people will miss

that question it is a government sponsored private Corporation it's private so Congress passed a charter to allow this a long time ago a long long time ago Fanny May's been around forever and its purpose is to to buy loans it frees up the liquidity of banks especially small Banks uh and Credit Unions those Banks run out of their money quickly and so they sell their loans to Fanny May Fanny May buys all those loans it frees up all the bank's liquidity and the bank can do it over and over and over and over and over

it encourages home ownership that's The purpose of Fanny May that's what the Federal National Mortgage Association is which of the following would be classified as a general lean so you can have specific leans you can to have General leans so again which of the following would be classified as a general lean yes you're probably going to need to know this um and so that's why this question's on here is for you let's look at number one a judgment lean number two a property tax lean or number Three a real estate prop property tax lean number

four a mechanics lean so here's all the answers I want I want to you to learn from this because you can see this question in different ways so let's help you no matter what way your state might give you this question let's give you some confidence and how you can answer it your answer is number one a judgment lean so here's the description of each one a judgment lean this is placed on All the assets of the deor in general it's a general lean it's placed on all the different assets number two and number three

are about the same a property tax lean is a specifically placed lean on the property that's delinquent in the taxes just like number three a real estate property tax lean is also placed on the property that's delinquent in the taxes it's specific it can only be placed against the property that's Delinquent in the taxes that lean cannot be a general lean over all the assets of the debtor only against that property and it's just like number four a mechanics lean is also specifically placed on a property where the work was done but not paid for

and so I want you to remember a judgment lean just remember a judgment lean is a general lean it's placed on all of the different assets of the deor in general I'm going to do five more Questions we're going to go through these pretty quick so screenshot these answers that way you can refer back to them and kind of just review before your exam these five questions are commonly on real estate exams they're also commonly missed so that's the these next five questions I'm putting here on purpose to help you pass so you study efficiently

a balloon payment is commonly associated with number one a loan issued by a Credit Union number two A blanket mortgage number three a large payment during or at the end of the term or number four an adjustable rate mortgage that must be paid when the arm expires and so the answer to this a balloon payment is commonly associated with number three it's a large payment during or at the end of the term for example a construction loan is a good example of of a type of loan that would have a balloon payment uh a balloon

type of Situation is typically a short-term loan U maybe a six-month loan and at the end of that all the principles do some commercial loans have balloons in them but that's what it is it is not number four and that's commonly picked some people think oh it's an adjustable rate mortgage you got to pay the thing off when the arm expires and that's a wrong answer your correct answer on that is number three what are three types of business Structures this question is a little bit harder uh let's do number one FN EPA and a

corporation of course you know FN ma is Fanny May and we've had another one you know the EPA is the Environmental Protection Agency number two a corporation a soul proprietorship and a limited liability company that is an LLC number three a corporation and a joint Corporation and a large corporation and number four a general Partnership a sole proprietorship and a revoke able trust so what are three types of business structures your answer is number two a corporation a sole proprietorship and a limited liability company and so now I want to show you the five most

common types of business structures these are the five most common types and I want you to screenshot this just memorize this in Case you get a question like this you're not going to miss it these are the five most common types of business structures a corporation a limited liability company which is an LLC a sole proprietorship a general partnership and a limited partnership and that's just one I just want you to memorize that be prepared for that in case you see a question like That this is another another good one that real estate commissions enjoy

uh testing on they enjoy talking about personal property and real property and so number 13 personal property can be one sold during an estate sale while the home is on the market two alienated or hypothecated number three turned into real property or number four all of the above and so on this your answer is number four all of the above so let's talk About what these words are in case you were just kind of thrown a little bit on what are some of these words well number one um so personal property yes it can be

sold during an estate sale W home is on the market that will happen to you many times on your listings um it's just personal property homeowner has the right to take it with them or sell it number two personal property can be alienated or Hypothecated alienated is to get rid of it uh a trash dumpster parked on the driveway is a good way to anate all of the personal property inside the home they're going to get rid of it or uh hypothecated is to use the personal property as collateral to obtain a loan number three

you can turn it into real property an example of taking personal property and doing this is say you buy a ceiling fan and then install it in a bedroom and that makes it a fixture and Now since it's attached as a fixture it would stay with the home you turn personal property into real property and so that makes your answer number four all of the above what is the sudden removal of land so this is coming from four different vocabulary words so I'm going to help you learn these four words in case you see any

of these four words used in a variety of other questions this one question could be used in a Multiple different ways on your exam so what is the sudden removal of land number one erosion number two accretion number three evulsion number four incumbrance so what do you think on this one many people get it wrong and they pick number one they pick erosion because it sounds great it's the sudden removal of land erosion but that's wrong it is not number one your answer is number three Evulsion so let's talk about what these words are erosion

is the gradual wearing away of land erosion is slow it's not sudden so look at the question up there what is the sudden removal of land uh number two accretion that is the gradual building up of land uh for example uh the end of a river let's say the bottom of the Mississippi River and it's bringing all the sediment down and so you see the land uh SL slowly gradually building up the huge Delta at The bottom of the river evulsion is your answer and evulsion is the sudden removal it's the sudden removal of land

an example would be hurricane destruction of a hillside uh washing it into the ocean sometimes in California when you see a very heavy rain day after day and you see these beautiful multi million homes up on these Cliffs and the dirt washes out from under them and in 10 Minutes the hillside collapses out from under the house and you watch it slip into the ocean that is evulsion uh earlier on this video we've talked about encumbrances and what is an encumbrance this is a good review in case for all of us with short-term memory an

encumbrance is a claim against a property by someone other than the owner an example is an easement or a lean you remember this now from earlier on this video what year was The Fair Housing Act signed into law I just want you to just memorize this just just learn it uh 1904 1932 1968 or 2001 what year was the Fair Housing Act signed into law your answer is number uh it's C 1968 uh it's easy for me to remember this the year I was born just remember the Fair Housing Act was signed into law 1968

the practice of encouraging and Persuading owners to sell property cheaply because of the fear of people of another ethnic or social group moving into the neighborhood is called what steering redlining blockbusting or S Che again this is the practice of encouraging and persuading owners to sell property cheaply because of the fear of people of another ethnic or social group moving into the neighborhood is called what steering redlining blockbusting or S Cheat so your answer is C blockbusting that's what blockbusting is so you need to know that there's your answer so what is a steering is

where you uh only show property to buyers and areas where you think they should live due to their race and their ethnic background that's illegal uh B is redlining we talked about red lining in uh two questions ago uh red lining is where you uh do not Allow loans in a certain area and then uh D is as cheat so what is as cheat you're you're getting a lot of good vocabulary learning on this one is cheat is a police power it's a police power where the government can take your property if you have no

heirs and no will regarding Estates in property the following are less than Freehold except for a estate for years B estate at Will C life estate D periodic Tency so we're going to go through a variety of questions regarding this one topic this is one of these um you know so these are practice questions to help you learn and this comes from a video that's going to pop up at the end of this to help you um really study from it's the top top 10 Concepts to help you pass the exam so when it comes

to the real estate exam there are certain Concepts you have got to know other Concepts maybe not as much but certain Concepts are going to appear in every States exam and this is this is one uh by the way these are good for all 50 states so let's read it again regarding Estates in property the following are less than freeold except for Estates for years Estates at will life estate or periodic tency so your answer is C life estate there are two types of Estates and property you got freeold Estates and less than freeold those

are the two Types Freehold means indefinite in duration there is no end to a freehold estate and we use the word Freehold for ownership that might help you less than Freehold are for limited amounts of time we use less than Freehold Estates for leases um a life estate is a freeh hole type of an estate and property so if you don't know what all these are and and we're talking very broadly I want you to grasp the concept A base a base understanding of this so if you don't Know what these are then watch the

video at that's going to pop up at the very end of this and I go over all of this material in detail to help you learn it then come back and practice these questions again the following are real property except house detached garage kitchen rugs which match the kitchen curtains or D carpet in the living room so this question is is talking about the difference between real Property and personal property you've got to know the difference so again the following are real property the house a detached garage kitchen rugs which match the kitchen curtains or

D the carpet in the living room so what is Real Property what is it so real property is immovable you can't move it real property is the house and the things attached to it that's what you're getting your real estate license for we sell real property we Don't sell personal property we sell the real property we sell the house and the things attached to it so personal property is movable like furniture and rugs and clothing so your answer is C uh all of the following on there they're all real property except C the kitchen rugs

which match the kitchen curtains it doesn't matter what they match rugs are personal property regarding Freehold Estates now We just talked about this a little bit couple questions back we're going to go through this differently just to make sure you're understanding even more regarding Freehold estates this type has the highest quality of ownership and is inheritable a fee simple B estate for years C periodic tency or D estate at will so again regarding Freehold estates this type has the highest quality of Ownership and is inheritable your answer is a fe simple let's talk about this

Fe simple has the max maximum rights in real estate the others on here are called less than freeold they're also called leas hold Estates so uh let's look at B an estate for years is a rental with a definite beginning and definite ending date uh it's what we think of as a Typical yearly lease or maybe a Summer Rental uh periodic tency which is C that is a rental it's recurring like a month to month month to month it's recurring it's a periodic tendency uh what's D an estate at will what is that an estate

at will is a rental with no written lease uh the tenant has permission to live there but there is nothing in writing and that's what an estate at will is so your answer on that one is a fee simple has the Highest quality of ownership the other three are rental the Fair Housing Act was enacted into law in 1968 I think we just did something like that but I want you to be reminded the Fair Housing Act was enacted into law in 1968 the following are all fair housing violations except a panic selling B Panic

pedaling C police power D redlining so the Fair Housing Act was Enacted into law in 1968 the following are all fair housing violations except C police power so let's look at a and b those are similar to blockbusting which we just did four questions ago um and we covered redlining in the in uh six or seven questions ago redlining uh where you um draw a box around an area and you can't do loans in That area so this is to test your recall to help you make sure you're learning the material so what is C

what is police power this is one of the four Government powers such as s cheet taxation eminent domain and police power police power is where the government can tell you how to you can use your property the government tells you how you can use your property and they do that such as uh building Codes zoning that's what police power is police power is not a fair housing violation but the other three on there are so as we move through these questions if you have not watched the video that's going to pop up at the end

of the this I want to make sure that you watch it these might be uh hard to understand if you have not watched the other video and you've actually covered all of the material but let's keep going through this here's a another one uh Regarding an estate for years lease which of the following would be true so regarding an estate for years lease which of the following would be true a if nothing is said at the end of the first year the lease would continue for one more year B it must have a definite ending

date C this is a type of freeold estate D it would continue indefinitely so again the question regarding an estate for years lease Which of the following would be true your answer is B it must have a definite ending date has to have a definite beginning date too so your answer is B this is what we think of as a typical rental with a definite beginning and ending date uh a is describing a periodic tency lease which would be reoccurring like month to month or year to year uh it's not C because this is a

Less than freeold estate also called a leas hold estate uh a freehold estate describes ownership it can't be D because an estate for years must have a definite ending date it can't be D because that says it would continue indefinitely so in a state for years sounds like it would be ongoing forever but it's not that's what I really want you to understand with this question that's why this one is here it kind of Gives the impression when you read an estate for years lease it sounds like it would go for years and years and

years just reading the title of it but it's not that's where people get confused on this and they miss questions an estate for years lease must have an a beginning and an ending date it does not run for years uh and that's pretty much what A and D are both trying to tell you they're confusing you Next one which of the following leasehold Estates has no written lease a estate for years b Periodic tency C estate at will or D estate at sufferance which of the following leasehold Estates has no written lease what's another word

for leasehold Estates less than free hold just to keep your understanding going your answer on this one is C there is no written lease the renter has permission but there's Nothing in writing uh you know an example of this you're trying to you're probably wondering this is stupid what would be even an example of this let's say you own a house a rental house and uh one of your kids maybe they're uh in their early 20s and you're letting them live there there you don't have a written lease with them they're paying you rent but

there's nothing written between you guys that would be this it's an estate Will uh so what is a an estate for years must have a definite beginning and ending date in writing we just covered this on the last question B what is B it's also written with the lease reoccurring week to week or month to month or year to year and what is D an estate at sufferance it's also in writing it's when the tenant stays over without permission they don't leave the rener is stain pass their Lease and the landlord is suffering that can

lead to eviction that's kind of how think of an estate at sufferance the landlord is suffering the owner is suffering because the renter won't leave and sometimes it can leave to eviction so your answer is C estate at will by the way if you're enjoying this video please uh give me a like and please subscribe uh which of the following is not an essential element of value again which of the following is Not an essential element of value a scarcity B intestate C utility or D demand which of the following is not an essential element

of value so basically to answer this you need to know what the Essential Elements of value are if you know those this is a pretty easy question your answer is B intestate what is intestate this is a great vocabulary word just learn it right here intestate is dying without a Will it has nothing to do with value has nothing to do with this question that's why your answer is B but there are four essential elements of value you know what they are scarcity utility demand and transferability those are the four essential elements of value scarcity

utility demand and transferability so for more explanations on those essential elements of value again check out the video at the end I'm Going to cover those in more detail which of the following is not a government power so for this you didn't know what those Government powers are so let's test your recall which of the following is not a government power a police power B condemnation C taxation or d s cheat now first glance if you have really studied you might think you can't find a wrong answer you're thinking They're all they all look good

but the answer is B now we're going to talk about this this can be a little bit of a trick question so let's make sure we got your understanding really really good on this your answer is B condemnation it is not a government power there are four Government powers and the missing one on here is called eminent domain eminent domain is your fourth power so don't get confused confused with uh eminent domain and Condemnation so what is eminent domain and what is condemnation these are two excellent vocabulary words emminent domain it is a government power

it's when the government can take the property away from you and they give you compensation for it but it's the process of when they use emminent domain that's called condemnation so the government power is called eminent domain the process they use when they do That is called condemnation so it's important to know the difference between eminent domain and condemnation police power is when the government tells you how to use property through building codes and Zoning that's what's a is police power that's a that's when the government tells you how to use your property through building

codes and zoning uh you can use the abbreviation of Pete P te to remember these PE Te there is no C in that for condemnation the your other e is imminent domain so use Pete to remember these four these four Government powers uh what's taxation it's when they make you pay taxes and what's a a cheat on D is cheat is when the government takes the property because there are no errors and so it is cheats to the government and that's the difference between condemnation and eminent domain