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Maine Real Estate Exam Updated 2023 Questions and Answers
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Maine Real Estate Exam Updated 2023Questions and Answers
The most common manner in which to transfer risk in real estate property management
is through the use of:
A. indemnification agreements.
B. insurance policies.
C. hold harmless agreements.
D. release of liability forms. Ans- B.
In risk management, the most common and effective manner in to transfer risk is by the
use of insurance policies. The property owner pays a premium, and the insurance
company takes on the liability for the occurrence of the insured event.
Which of the following is NOT an element of the bundle of rights of an owner of property
in fee simple absolute?
A. The right to lease the mineral rights
B. The right to encumber the property with an easement in gross
C. The right to sell the air rights
D. The right to start a foreclosure process Ans- D.
Answers A, B and C are all elements of the bundle of rights of an owner of property in
fee simple absolute. The right to start a foreclosure belongs to a lender or someone who
has a judgment against the owner of the property
Which of the following would NOT be characterized as a physical characteristic of real
estate?
A. Heterogeneity
B. Immobility
C. Durability
D. Permanence of Investment Ans- D.
Permanence of investment is an economic characteristic of real estate.
Fee simple ownership describes:
A. Future ownership.
B. Current ownership.
C. A leasehold estate.
D. Current possession. Ans- B. Current ownership
Fee simple ownership describes current ownership. It is also known as fee simple
absolute or ownership in fee.
Which of the following is a publicly traded investment entity that pool money of investors
who want to invest in real estate in markets around the country/world?
A. REIT
,B. Deed in trust
C. Deed of trust
D. Trust account Ans- A. REIT
Ben and Jerry want to buy a principal place of residence, so they contacted Agent
Sandy to show them houses. When looking for a home, Sandy would never represent
Ben and Jerry as a:
A. customer.
B. dual agent
.C. single agent.
D. general agent. Ans- D. General Agent
A general agent represents a party in an on-going business relationship. Ben and Jerry
and looking for a principal place of residence and this relationship is not expected to be
on-going.
Express agency is created by:
A. an oral or written agreement between the parties.
B. a contract between the parties.
C. state laws that allow agency relationships.
D. federal laws that allow agency relationships Ans- A. An oral or written agreement
between parties.
All of the following statements regarding transaction brokers is false EXCEPT that a
transaction broker:
A. will have the same fiduciary duties as listing or buyer agents.
B. will have the same duties as disclosed dual agents.
C. must have a written agreement with their customers.
D. has no fiduciary duties to buyers or sellers. Ans- D.
A transaction broker has no fiduciary duties to buyers or sellers.
On Sunday, Sara had a buyer who looked at her listing located at 123 Red Rock Rise.
On Tuesday, Sara showed another buyer 123 Red Rock Rise. On Saturday, both
buyers notified Sara they are ready to write an offer on 123 Red Rock Rise. This is an
example of:
A. subagency.
B. designated agency.
C. dual agency.
D. single agency. Ans- C.
Sara may be a disclosed dual agent with the written and informed consent of both
buyers and the seller.
The federal law that assigns accountability for the cleanup of hazardous sites in the
environment is called:
, A. CERCLA.
B. ECOA.
C. CAN-SPAM.
D. FIRPTA Ans- A. CERCLA (Comprehensive Enviornmental Responsive,
Compensation, and Liability Act
Under CERCLA, all of the following would be classified as Potentially Responsible
Parties (PRPs) EXCEPT:
A. transporters of hazardous substances who selected the disposal site.
B. persons who arrange for treatment or disposal of hazardous substances.
C. former owners and operators of a facility at the time of disposal.
D. the brokerage companies who sold the property. Ans- D.
Brokerage companies who sold the property are not identified as PRPS. However, as
real estate agents it is important to identify properties on the National Priorities List and
to be aware of possible environmental hazards so we can direct clients to experts when
needed.
To limit his liability, a buyer of a brownfield site will want to:
A. conduct a satellite view of the property on Google maps to identify environmental
hazards.
B. have his real estate agent thoroughly inspect the property for environmental hazards.
C. performing an All Appropriate Inquiry by conducting a Phase I Environmental Site
Assessment.
D. personally walk the entire property to inspect for environmental hazards. Ans- C.
Which federal agency publishes flood zone maps?
A. FEMA
B. EPA
C. HUD
D. FTC Ans- A. FEMA (Federal Emergency Management Agency)
A person is using her property as a residential use. Last year zoning changed the use
on her street to a commercial zone. Is her residential use of the property legal?
A. Yes, because she is still living there.
B. Yes, because zoning will allow for a non-conforming use
.C. No, because it is illegal to change a use from residential to commercial.
D. No, because the zoning board does not know she is residing in the property. Ans-
B.
A nonconforming use allows the owner to continue a land use that once conformed or
pre-dates modern zoning laws, even when the current zoning clearly prohibits the
usage.
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