Free Maine Property Practice Test — LicenseIQ

Question 1

Marketable title means title that is:

Accepted Answer

Marketable title is reasonably free from defects and insurable - not necessarily perfect.

Question 2

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 3

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 4

Where must a Maine deed be recorded?

Accepted Answer

33 M.R.S. §201 requires recording in the registry of deeds in the county where the land lies, and in each county if it spans more than one.

Question 5

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 6

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 7

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 8

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 9

When a tenant in common dies, that owner's share:

Accepted Answer

Tenancy in common has NO right of survivorship, so a deceased co-owner's interest passes by will or to heirs. Automatic passage to co-owners describes joint tenancy.

Question 10

After buying a property with a registered underground oil storage tank, when must the new owner file an amended registration?

Accepted Answer

Section 563 requires an amended registration immediately after any change, including a change of ownership; failing to file carries a $100 late fee.

Question 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?

Accepted Answer

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.

Question 12

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 13

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 14

Under Title 30-A, lots of 40 acres or more:

Accepted Answer

Section 4401(4) counts 40-acre lots unless a municipality opts out by ordinance for parcels entirely outside shoreland areas.

Question 15

The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

Accepted Answer

Value requires Demand, Utility, Scarcity and Transferability.

Question 16

Every real estate brokerage agency in Maine must have:

Accepted Answer

Section 13173 requires an owner or authorized official holding a Maine broker license to be named the designated broker. No minimum number of associate brokers is required.

Question 17

A title company offers a licensee $100 for each client referred. The licensee may:

Accepted Answer

Rule 410 §19 prohibits compensation from title companies, lenders or closing companies for referrals. Written disclosure permits referral fees only for other services.

Question 18

A property sells for $1,250,000 on a transfer subject to the current rate schedule. What is the total transfer tax?

Accepted Answer

Base: 2,500 units × $2.20 = $5,500. Excess over $1,000,000 is $250,000 = 500 units × $3.80 = $1,900. Total $7,400. $5,500 ignores the surcharge; $3,700 is each party's share.

Question 19

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 20

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 21

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 22

When shoreland property with a septic system is sold, what must the seller give the buyer?

Accepted Answer

30-A M.R.S. §4216(1) requires the transferor's written statement covering malfunctions in the 180 days before transfer.

Question 23

A licensed auctioneer is hired to call bids at a real estate auction. The auctioneer loses the licensing exemption by:

Accepted Answer

The auctioneer exception covers only calling bids. Preparing contracts, otherwise controlling the sale, or holding any part of the price takes the auctioneer outside it.

Question 24

Under Maine law, real estate brokerage includes:

Accepted Answer

Section 13001(2) defines brokerage as a single instance and includes the mere expectation of compensation. There is no three-transaction threshold.

Question 25

Which transfer is exempt from the seller property disclosure requirement?

Accepted Answer

Section 172 exempts transfers by fiduciaries administering an estate, guardianship, conservatorship or trust. Ordinary owner sales, including investors and second-home owners, are covered.

Maine real estate property practice test

1. Marketable title means title that is:

2. Which is the most common and desirable way a real estate sales contract terminates?

3. 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?

4. Where must a Maine deed be recorded?

5. 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?

6. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

7. In a deed, the party conveying title is the and the party receiving title is the .

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

9. When a tenant in common dies, that owner's share:

10. After buying a property with a registered underground oil storage tank, when must the new owner file an amended registration?

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?

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

13. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

14. Under Title 30-A, lots of 40 acres or more:

15. The four elements that must all be present for real property to have value are summarized by the acronym DUST, which stands for:

16. Every real estate brokerage agency in Maine must have:

17. A title company offers a licensee $100 for each client referred. The licensee may:

18. A property sells for $1,250,000 on a transfer subject to the current rate schedule. What is the total transfer tax?

19. In a mortgage, the borrower who pledges the property as security is the:

20. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

21. A real estate licensee who is not an attorney may:

22. When shoreland property with a septic system is sold, what must the seller give the buyer?

23. A licensed auctioneer is hired to call bids at a real estate auction. The auctioneer loses the licensing exemption by:

24. Under Maine law, real estate brokerage includes:

25. Which transfer is exempt from the seller property disclosure requirement?

Sources