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1. The purpose of discount points is:
A) to lower the amount due at closing
B) to lower the interest rate over the life of the loan
C) to lower the property value for purposes of tax savings
D) to lock in an interest rate for a specified time prior to closing
2. Alex is supposed to decide by 6 p.m. Tuesday if she wants to exercise her option to terminate the purchase agreement of the home she is buying. Alex can't make up her mind, but on Wednesday, 10 a.m., she finally makes a decision: She wants to terminate. Can she?
A) No, because the phrase "time is of the essence" is included in the contract.
B) Yes, because the phrase "caveat emptor" is included in the contract.
C) Yes, because the phrase "subject to" is included in the contract.
D) No, because the phrase "as is" is included in the contract.
3. Which of the following is a unique quality of limited service agents in Virginia?
A) Limited service agents can assist in neither residential nor commercial transactions.
B) Limited service agents can assist in commercial transactions ONLY.
C) Limited service agents can assist in both residential and commercial transactions.
D) Limited service agents can assist in residential transactions ONLY.
4. Vicarious liability is the common law concept that:
A) agents cannot be held liable for violating fiduciary duties, while brokers can
B) license holders may ONLY be held liable if violations are brought to court
C) a person is liable for the actions of those acting with authority on that individual's behalf
D) brokers are free from taking responsibility for their agents' actions
5. You're doing a CMA on a three-bedroom, two-bath, seven- year-old property. Choose the BEST comp from the following list:
A) a six-bedroom, four-bath, newly built property located a quarter mile away that sold six weeks ago
B) a three-bedroom, one-bath, 12-year-old property located a quarter mile away that sold three months ago
C) a three-bedroom, two-bath, seven-year-old property located a quarter mile away that sold two years ago
D) a three-bedroom, two-and-a-half bath, 15-year-old property located 20 miles away that sold 12 weeks ago
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: C |
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