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BERMUDA REAL ESTATE EXAM PREP 1
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BERMUDA REAL ESTATE EXAM PREP 1
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BERMUDA REAL ESTATE EXAM PREP 1A theme common in many selling techniques is:
motivation
perseverance
confidence
persuasion - Answers- persuasion-persuasion An agent's job is to address the client's
needs and show the client that satisfying their needs is important to them.
How much would you have to invest to earn $400 dollars per month with a interest at
10%?
$480
not enough information
$4,800
$48,000 - Answers- $48,000- With a $400 income per month x 12 months per year =
$4,800 of annual income. Divide the $4,800 annual income by .10 rate of return =
$48,000 initial investment.
A beneficiary (lender) of a second trust deed sold their interest in the real property for an
amount less than the unpaid balance on the note. This is termed:
forgiven deed
discounting
deflated note
undercharging - Answers- discounting- A discount note is a short-term debt obligation
corporations and governments sell to investors at a discount in order to raise money for
projects.
Maria owns a 10-unit apartment building. In 2014 she rented all of the units at $1,300
per month and has a 100% occupancy rate. In 2015 Maria raised the rent by 3% but
then had a 10% vacancy rate. Her annual gross revenue changed to: - Answers-
$144,612. With a decrease in revenue of less than 10%.- 2014 (1) $1,300 rent x 10
units = $13,000 total units rent/mth (2) $13,000 x 12 = $156,000 total units rent/yr 2014
2015 (3) $1,300 x .03 (3%)= $1,339 new increased rent (4) 100%-10% vacant
rate=90% occupancy rate for 2015 (5) 10 total units x .9 occupancy rate= 9 rented units
(6) $1,339 (new rent amount) x 9 (rented units)= $12,051 for 9 units/mth (7) $12,051 x
12 months = $144,612 total rent for all units/ yr 2015 (8) $156,000 (yr 2014) - $144,612
(yr 2015) = $11,388 loss (7.87% loss) (9)$11,388 divided by $156,000= 7.3% loss
An appraiser observes several cracks in the foundation while appraising a property.
They also notice that the doors and windows do not close properly. What type of report
would the appraiser most likely order?
A natural hazard report
A soil engineer's report
A mold inspection
,A soil contamination report - Answers- A soil engineer's report- The cracking foundation
and the improper door and window operation could be caused by shifting of the soil
under the property, therefore the appraiser would satisfy his concerns by ordering a soil
engineer's report.
An easement appurtenant requires the following except:
transferability with the land
the dominant and servient tenements adjoining at their respective borders
benefit to one tract of land and a burden to another
two properties with separate ownership - Answers- the dominant and servient
tenements adjoining at their respective borders- The dominant and servient tenement
do not have to be adjoined to have an easement appurtenant.
Which of the following was created to help ensure that real estate agents provide
consistent service to all clients?
Equal Professional Service Model
Unruh Civil Rights Act
Holden Act
Americans with Disabilities Act - Answers- Equal Professional Service Model- The
National Association of Realtors developed the Equal Professional Services Model to
help real estate agents ensure that clients are treated consistently and equitably.
Abiding by the tenets of the model dramatically decrease the possiblity of fair housing
violations.
In the State Building Code, what is the standard for fire detectors regarding new
construction?
Each home must have one smoke detector, regardless of size.
Smoke detectors must be hard-wired with battery backup.
There are no requirements for smoke detectors.
Every room must be equipped with a battery operated smoke detector. - Answers-
Smoke detectors must be hard-wired with battery backup.- According to the State
Building Code, in new home construction, the smoke detector must be hard-wired with a
battery backup
Which of the following is NOT an element of value:
abundance
scarcity
demand
utility - Answers- abundance- The four essential elements of value are: Scarcity, how
much of there is it? Transferability, can you sell it? Utility, can you use it? Demand, do
you want it?
When an advertisement does not identify the advertiser as a broker, this is referred to
as: - Answers- blind advertising- Blind advertising is an ad in which the name of the
person placing the ad is not mentioned.
, Under California law, in order for a broker to function as a property manager for client
properties, which of the following requirements must be met?
A minimum of five years' experience as a broker
One year of training in property management
A DRE license
A separate property management license - Answers- A DRE license- California allows
brokers to function as property managers by virtue of their DRE license. No additional
training or licensure is required.
Municipalities can enforce zoning laws because of which of the following?
The police power of government
Private controls give local governments this authority
The Subdivided Lands Law gives local government this authority
None of the above - Answers- The police power of government- Because of the police
power of local and state governments, municipalities have the authority to enforce
zoning laws.
A seller, or the seller's agent, is required to disclose to a potential buyer that the
property is in an earthquake fault zone. These zones are over earthquake faults and are
typically how large?
Five miles in width
500 yards in width
One quarter mile in width
Two miles in width - Answers- Earthquake fault zones are generally one quarter mile in
width.
Lots of things can be prorated in real estate during the escrow process. Which of the
following would be something buyers and sellers would agree to prorate during the sale
process using escrow?
fees for title and escrow
termite and dry rot work that needs to be completed
the cost to prepare the country transfer tax
rent - Answers- rent- The seller would be entitled to any rent from the property up to the
close of escrow; the buyer would be entitled to the rent thereafter.
This refers to the transfer of the entire leasehold rights to a third party.
sublease
assignment
master lease
sandwich lease - Answers- An assignment is the transfer of the right, title, and interest
in property belonging to one person (the assignor) to another person (the assignee).
Jean was tricked into signing over the rights to her apartment by Dave while she was
drunk. This contract is considered:
void
unenforceable
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