1. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:
Answer & explanation
Answer: B. Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.
2. A rectangular lot is 100 ft by 150 ft. How many square feet is it?
Answer & explanation
Answer: C. Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)
3. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:
Answer & explanation
Answer: B. Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.
4. On a $250,000 loan, how much is 2 discount points?
Answer & explanation
Answer: A. 1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.
5. A proposed public member sold her real estate brokerage six years ago. Is she eligible for a public seat?
Answer & explanation
Answer: B. §2903 requires public members to be free of licensing or related-industry ties for the prior 8 years; six years is not enough. The bar is not permanent.
6. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
7. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?
Answer & explanation
Answer: B. LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.
8. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?
Answer & explanation
Answer: C. Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.
9. Participation in the Commission's Voluntary Treatment Option for chemically dependent licensees:
Answer & explanation
Answer: B. Rule 15.0 states participation records do not reflect discipline and are not public. The licensee bears costs.
10. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?
Answer & explanation
Answer: A. Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).
11. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?
Answer & explanation
Answer: B. Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.
12. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?
Answer & explanation
Answer: D. Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.
13. The maximum fine the Commission may impose on a licensee per violation is:
Answer & explanation
Answer: D. §2914 allows fines up to $5,000 per violation. $10,000 is the top of the repeat unlicensed-practice criminal range, and $50,000 is the Guaranty Fund cap.
14. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?
Answer & explanation
Answer: C. Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.
15. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?
Answer & explanation
Answer: B. LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)
16. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)
17. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?
Answer & explanation
Answer: D. $20,000 x 0.50 = $10,000 to the buyer's broker.
18. Under an open listing, the seller owes a commission to:
Answer & explanation
Answer: C. Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.
19. The three broker seats on the Commission must be filled by:
Answer & explanation
Answer: A. §2903 requires one broker from each county, each active at least 5 years. The industry association has no appointment role; the Governor appoints.
20. A licensee first licensed 4 months before renewal owes how many renewal CE hours?
Answer & explanation
Answer: C. Rule 14.2: under 6 months owes no renewal CE, but Rule 14.13 still applies.
21. A salesperson is first licensed 10 months before the April 30 renewal date. How many CE hours are required for that renewal?
Answer & explanation
Answer: C. Rule 14.2: 6 to under 12 months requires 6 hours in 2 modules.
22. What is required for the Commission to discipline a licensee?
Answer & explanation
Answer: A. §2904 says a majority is a quorum, but disciplinary action needs at least five affirmative votes. A bare majority of a quorum could be fewer than five.
23. After a hearing, the Commission finds a salesperson committed three separate violations. What is the maximum total fine?
Answer & explanation
Answer: A. Fines are up to $5,000 per violation under §2914: 3 × $5,000 = $15,000. $5,000 wrongly treats the cap as per case.
24. Which action is within the Commission's power under §2906?
Answer & explanation
Answer: B. §2906(a)(13) lets the Commission issue cease-and-desist orders and fines for unlicensed practice. Criminal sentencing belongs to the courts, and commissions are negotiable.
25. A licensee disagrees with a final Commission disciplinary decision. Where and when may it be appealed?
Answer & explanation
Answer: B. §2913 sends appeals to Superior Court within 30 days, decided on the record. The JP Court handles unlicensed-practice prosecutions.
Sources
Source verification pending. Confirm current requirements with your state regulator.