Free Louisiana Property Practice Test — LicenseIQ

Question 1

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 2

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 3

Which transfer is exempt from the residential property disclosure requirement?

Accepted Answer

The LREC property disclosure document lists exemptions including never-occupied new construction, court-ordered and fiduciary transfers, and transfers between co-owners or to relatives.

Question 4

The Louisiana property disclosure must address whether the property lies within what distance of a solution-mining injection well?

Accepted Answer

R.S. 9:3198(A)(2)(c) requires disclosure of a known salt-stock cavity beneath the property and whether it is within 2,640 feet (one-half mile) of a solution-mining injection well.

Question 5

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 6

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 7

A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

Accepted Answer

Fair housing law requires reasonable accommodations for persons with disabilities, including service animals despite no-pet rules.

Question 8

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 9

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 10

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 11

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 12

A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

Accepted Answer

Gaps in the chain or unreleased liens are clouds that must be cleared (e.g., by quitclaim deed or quiet title action) before title is marketable.

Question 13

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?

Accepted Answer

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.

Question 14

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 15

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 16

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 17

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 18

A buyer's offer was accepted Wednesday. The seller delivered the disclosure Thursday at 2:00 p.m.; there are no holidays that week or the next. Until when may the buyer terminate under the Act?

Accepted Answer

Count 72 hours excluding weekends: Thursday 2 p.m. to Friday 2 p.m. = 24 hours; skip Saturday and Sunday; Friday 2 p.m. to midnight is 10 more hours (34 total), then the 24 hours of Monday (58 total) and 14 hours of Tuesday reach 72 at Tuesday 2 p.m. Sunday ignores the weekend exclusion.

Question 19

A surviving spouse has a usufruct over the decedent's half of the home, and the children have naked ownership of that half. To convey full ownership of that half, a buyer generally needs

Accepted Answer

Because usufruct and naked ownership are separate real rights in the same thing, full title requires both holders to join, or the buyer takes subject to the usufruct.

Question 20

Louisiana's special three-year acquisitive prescription for blighted property applies in municipalities with a population of at least

Accepted Answer

R.S. 9:5633 applies to certified blighted property in municipalities of 300,000 or more, with required affidavits, notices, and tax payments.

Question 21

Which act involving community property does NOT require the concurrence of both spouses under art. 2347?

Accepted Answer

Art. 2347 requires concurrence for community immovables, timber, family-home furniture, substantially all of a community business, and registered movables titled in both names. A vehicle titled only in one spouse's name isn't on that list.

Question 22

What minimum balance must the LREC maintain in the Real Estate Recovery Fund?

Accepted Answer

R.S. 37:1461(C) requires a minimum of four hundred thousand dollars. Surplus may be transferred to the research and education fund.

Question 23

A widow holds a usufruct over a house, and her children hold the underlying ownership. The children are called the

Accepted Answer

The holder of ownership burdened by a usufruct is the naked owner; the widow is the usufructuary. When the usufruct ends, full ownership reunites in the naked owners.

Question 24

Which property is generally community property under art. 2338?

Accepted Answer

Art. 2338 includes property acquired during the regime through the effort, skill, or industry of either spouse. Inheritances and donations to one spouse, and premarital property, are generally separate.

Question 25

If the disclosure is delivered after the buyer's offer, the buyer may terminate or withdraw

Accepted Answer

R.S. 9:3198(B)(3) gives 72 hours after receipt, excluding weekends and state and federal holidays, with prompt return of any deposit.

Louisiana real estate property practice test

1. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

2. An owner's title insurance policy protects against:

3. Which transfer is exempt from the residential property disclosure requirement?

4. The Louisiana property disclosure must address whether the property lies within what distance of a solution-mining injection well?

5. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

6. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

7. A building has a no-pets policy. An applicant who is blind has a guide dog. The property manager must:

8. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

9. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

10. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

11. Private restrictions placed in a deed by a developer are called:

12. A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

13. 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?

14. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

15. Under a land contract (contract for deed), during the payment period the buyer holds:

16. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

17. Who may perform an appraisal of real property for a lender?

18. A buyer's offer was accepted Wednesday. The seller delivered the disclosure Thursday at 2:00 p.m.; there are no holidays that week or the next. Until when may the buyer terminate under the Act?

19. A surviving spouse has a usufruct over the decedent's half of the home, and the children have naked ownership of that half. To convey full ownership of that half, a buyer generally needs

20. Louisiana's special three-year acquisitive prescription for blighted property applies in municipalities with a population of at least

21. Which act involving community property does NOT require the concurrence of both spouses under art. 2347?

22. What minimum balance must the LREC maintain in the Real Estate Recovery Fund?

23. A widow holds a usufruct over a house, and her children hold the underlying ownership. The children are called the

24. Which property is generally community property under art. 2338?

25. If the disclosure is delivered after the buyer's offer, the buyer may terminate or withdraw

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