Maine Real Estate Sales Agent Practice Test

These questions are part of the practice quiz. Start practicing

• What is the national trade association for real estate licensees called?
• What does the term "appurtenance" refer to in real estate?
• Which of the following best describes a contingency in a real estate contract?
• What are the required elements for a legally enforceable contract?
• What does it mean to say a loan is fully amortized?
• Which property type is most commonly associated with short sales?
• What is the term for a summary of title prepared from the records in the registry of deeds?
• What does the term "datum" refer to in real estate?
• What is the purpose of the capitalization rate in real estate?
• What can homeowners use as a justification for initiating a short sale?
• What is a contract that cannot be enforced by law due to its lack of an essential element or illegal purpose?
• In some states, how must an agency be created?
• What is the purpose of the secondary mortgage market?
• What does the term "bundle of rights" refer to in real estate?
• What regulation requires the disclosure of credit costs to consumers?
• What law promotes informed use of consumer credit by requiring disclosures of terms and costs?
• What happens when a mortgage is fully paid off regarding the lender's interest?
• What term refers to a contract in which one party has promised to perform?
• What type of deed implies ownership and possession but may be issued by a bank at a foreclosure sale?
• What does a lot and block survey describe?
• What is the term for the failure to perform one or more terms of a legally enforceable contract?
• What term refers to the practice where lenders refuse to lend in certain neighborhoods?
• What term describes an agent of an agent?
• What term refers to property taxes that are assessed "according to valuation"?
• What does disclosed dual agency require from both parties?
• Which of the following is NOT a method of terminating an agency?
• What does the loan to value ratio represent?
• Which term indicates a contract that has met all legal requirements for enforceability?
• In a short sale, what role does a real estate agent commonly play?
• What is the term for the process where a lender agrees to accept less than the loan balance upon the sale of a property?
• What authority does a general agent have compared to a special agent?
• What does amortization refer to in lending?
• What does a plat map commonly show in subdivision development?
• What type of contract involves a promise from only one party?
• How is market value defined in real estate?
• How is property value calculated using cap rate and net operating income?
• What sets aside funds for future major expenses in property management?
• What is the primary responsibility of a transaction broker?
• What is the correct term for an agreement that ends the obligation of both parties in a contract?
• What is an example of an encumbrance that could affect a property?
• What is the key feature of a covenant in real estate?
• Which type of easement is created by a court when a property is landlocked?
• Which of these is NOT typically considered when determining market value?
• Which deed makes covenants about the property only for the time it was owned by the grantors?
• What is the term for evidence of the legal right to own and possess property?
• What does joint tenancy signify in terms of ownership?
• Which type of right is associated with the ownership of property bordering a river or other non-navigable body of water?
• What is the term for the notice filed indicating that litigation is pending involving a property?
• How does a short sale generally affect the homeowner's credit score compared to a foreclosure?
• Which approach estimates real estate value based on the cost of materials, land, and labor needed to replace it?
• What term refers to the water rights of an owner whose property borders an ocean, sea, or navigable waters?
• When two or more people own real estate at the same time without a right of survivorship, what is this ownership called?
• Which type of contract is considered completed or fully performed?
• Which fiduciary duty ensures agents act in the client’s best interest?
• What does the assessed value divided by the market value yield?
• What is the relationship between a borrower, a lender, and a trustee in a deed of trust?
• What is the illegal act of using client money as if it belonged to the licensee called?
• What method of depreciation is allowed by the IRS, allowing an owner to recover the cost over an asset's useful life?
• Which type of estate has a predetermined termination date agreed upon by both parties?
• What is another term used to describe the physical location of a property?
• What defines a non-conforming use in zoning?
• Which type of agent is primarily associated with transactional support rather than a fiduciary relationship?
• In the context of tenancy, what does the term "estate at will" imply?
• What valuation method determines property value based on the income it generates for an investor?
• What type of lease agreement can be terminated by either the landlord or tenant upon giving notice?
• Which deed grants whatever interest the grantor has but provides no warranties about the title?
• What formula is used to calculate the loan to value (LTV) ratio?
• Which of the following terms describes a situation where a property is sold for less than the amount owed on the mortgage?
• To calculate the annual rent using the gross income multiplier, you would use which formula?
• What term is used for an interest in real estate that follows a life estate?
• What is the main responsibility of a property manager regarding property maintenance?
• Which ownership allows property to be held with the right of survivorship?
• Which of the following best describes severalty ownership?
• Which form of ownership is specifically designed for spouses?
• What method is used to describe real estate starting from a point of beginning?
• Which principle of valuation refers to the appeal of properties being in conformity with each other?
• Which term describes an agency agreement formed through oral or written communication?
• What is the formula to calculate square footage?
• Which clause allows a lender to demand full repayment of the loan if there is a default?
• What is the term for the unethical practice where a lender employs deceptive tactics to encourage borrowing?
• Which right is specifically related to properties adjacent to oceans or seas?
• Which of the following is NOT classified as a method of financing?
• What must be considered when determining the setback for a property in zoning regulations?
• What is required for a buyer in an option contract?
• What occurs when a defeasance clause is executed?
• In zoning terminology, what distinguishes a property that is non-conforming?
• Which of the following types of loans is typically backed by a government agency?
• Which type of contract involves an agreement between two parties?
• Which of the following refers to the property manager's responsibility to show properties?
• What does the alienation clause refer to in a loan agreement?
• What equals one acre of land in square feet?
• What is the purpose of a due-on-sale clause in a mortgage?
• What type of contract means neither party can sue to enforce it?
• What type of tenancy automatically renews indefinitely?
• What zoning requirement prohibits construction outside required setbacks?
• What does the capitalization rate help investors determine?
• What type of contract is not explicitly stated but is formed by the actions of the parties?
• How are discount points calculated from the loan amount?
• What type of organization typically has local branches or councils and is comprised of real estate professionals?
• Which rights allow a property owner next to a flowing body of water to use that water?
• Which of the following is not a type of loan?
• What is the highest estate that a property owner can hold?
• Which lease type requires the tenant to cover part or all of the property's ownership expenses?
• What type of insurance is required on FHA insured loans?
• What do we call a list of prior owners of real estate that is compiled during the title examination process?
• What term describes a physical defect that significantly impacts the value of the property?
• What is the term for the gift of real property by will?
• What legal document formalizes the transfer of ownership in real estate?
• What type of contract allows a buyer to pay a premium to a seller for exclusive rights to purchase a property?
• What type of contract arises from the actions and behavior of the involved parties?
• What is the term for a formal agreement between parties regarding activities on a parcel of land?
• What is the purpose of a Real Estate Investment Trust (REIT)?
• In a short sale, who typically has to approve the sale before it proceeds?
• In which type of state does a lender hold a lien on the property as security for a loan?
• What does a seasoned mortgage indicate about payment history?
• What must a homeowner provide to the lender to initiate a short sale process?
• What is the formula for determining the net to seller dollars after a sale?
• What term describes a clause that can lead to foreclosure due to the sale of the property?
• Which kind of damages is awarded to compensate the plaintiff for incurred losses?
• How is the agent's commission calculated from the broker's commission?
• Which type of obsolescence refers to a decrease in property value caused by external factors?
• How many feet are there in a mile?
• How can the commission rate be calculated from commission dollars and sale price?
• What fiduciary duty includes providing competent advice and actions?
• Which of the following best describes the "point of beginning" in a boundary description?
• In the context of mortgages, what does the term 'convey' refer to?
• Which type of estate allows a property owner to grant their estate for the duration of another person's life?
• What clause allows a lender to call a loan due upon default by the borrower?
• What practice is illegal in real estate, where an agent keeps any amount above the seller's desired sale price?
• What aspect of a material defect typically affects a property's marketability?
• What do we call an agreement across parties to resolve disputes without lawsuits?
• What term refers to the legal end of a contract through mutual agreement?
• What is referred to as the written evidence of a debt and its repayment terms?
• What type of listing allows an agent to get paid regardless of who sells the property?
• When must a loan estimate be provided to a loan applicant after application?
• What is the formula to calculate the value of a property using the gross income multiplier?
• What legal doctrine allows a party to claim ownership of property by occupying it for an uninterrupted period as established by state law?
• How do you find the annual property taxes using the property tax formula?
• What federal law imposes a tax on the chemical and petroleum industries and establishes liability for environmental issues?
• Which fiduciary duty involves keeping client information private?
• Which type of contract can be voided by one of the parties?
• What are discount points in real estate transactions?
• What legal document secures a loan by placing a lien on the property?
• What does a loan estimate provide to the borrower?
• What does the term "reversion" refer to in real estate?
• What survey system uses perpendicular meridians and baselines to describe real estate?
• What ownership form allows automatic transfer of ownership upon death?
• Which type of loan is characterized by a balloon payment at the end of a shorter time frame than its amortization schedule?
• Which of the following is typically a consequence of completing a short sale?
• What legal remedy is created under fraudulent circumstances allowing a party to rescind or terminate the contract?
• Which act prohibits lenders from discrimination during the lending process?
• What typically happens when a mortgage is recorded?
• What term describes local markets where borrowers can apply for loans?
• How are freehold estates primarily categorized?
• What is the significance of the truth-in-lending statement?
• What type of loan requires disclosure under the Equal Credit Opportunity Act?
• What term describes the illegal practice of prompting homeowners to sell due to potential neighborhood changes?
• During the short sale process, what happens to the homeowner's mortgage payments?
• Which actions are classified as ministerial acts in a real estate transaction?
• Which process involves the addition of land to an existing parcel due to actions of water?
• What is the primary outcome of a real estate appraisal?
• What law requires certain contracts to be in writing and signed by the party to be charged?
• Which of the following is described as a visible marker used to denote a deed description?
• What type of contract is established when all parties clearly express the terms of the agreement?
• What does the phrase "time is of the essence" in a contract imply?
• What does the term "fulfillment of purpose" refer to in the context of agency termination?
• Which contract involves two or more parties making mutual promises?
• What type of easement benefits a person or corporation, such as an electrical company installing lines?
• Who is referred to as the trustee in a deed of trust?
• Which real estate valuation approach focuses on potential income generation as the basis for determining value?
• What do easements primarily grant property owners?
• What is defined as a condition in a contract that must be satisfied for the contract to be enforced?
• In a contract, what does consideration refer to?
• What are FHA loans primarily designed for?
• What term describes a property feature that becomes undesirable due to age or lack of modern utility?
• What term refers to a claim on a property that diminishes the owner's equity?
• What is the main purpose of private mortgage insurance (PMI)?
• How is an easement by reservation created?
• What kind of deed is often used when a married couple is divorcing and one spouse conveys their interest to the other?
• What motivates lenders to consider short sales instead of foreclosures?
• What document summarizes the credits and debits to the buyer and seller before loan consummation?
• What is the relationship between sale price and loan amount in terms of LTVR?
• Which term best describes a contract that has expired?
• In what situation would functional obsolescence occur?
• What does VA loan eligibility require?
• What is the calculation for equity in real estate?
• What is the primary factor influencing neighborhood conformity in real estate value?
• What type of deed contains five covenants and creates the most liability for the grantor?
• What type of mortgage allows the borrower to pay off the loan early without incurring a penalty?
• What is the conversion ratio of inches to feet?
• What describes a situation where parties agree on a sum of money which will be enforced in court?
• In the context of contracts, what does the term "abandonment" refer to?
• What type of expenses include insurance and property taxes?
• Which law regulates the creation of the closing disclosure and loan estimate?
• What formula represents the computation of commission based on sale price and commission rate?
• Which of the following describes a fact that if known would influence a party in a transaction?
• Which federal law prohibits practices such as price fixing and group boycotting?
• What fundamental concept underlies the "cost approach" in real estate valuation?
• What type of insurance is required on conventional loans when a borrower has less than a 20% down payment?
• Which agency is established based on the actions of the parties involved?
• What does the term 'liability' refer to in the context of environmental law?
• Which of the following is NOT a method of terminating a contract?
• What is the purpose of zoning ordinances in land development?
• Which of the following entities is involved in the primary mortgage market?
• What does equitable title grant to the purchaser?
• What is a characteristic of an open mortgage?
• Which practice involves a real estate licensee steering clients towards or away from specific neighborhoods?
• What does commingling refer to in real estate transactions?
• What type of ownership describes real estate owned by a single person or entity?
• What does the gross rent multiplier (GRM) represent?
• What is the written document called that transfers property rights from the grantor to the grantee?
• What legal right is established when a landowner occupies a property without the owner's permission?
• What does the term "novation" refer to in contracts?
• When several individuals hold title to a property but do not have a right of survivorship, they are typically referred to as what?
• In what type of agency agreement do agents earn a fee only upon selling the property?
• What describes a contract that has obligations yet to be fulfilled?
• Which type of agent has the authority to conduct all acts on behalf of a client?
• When determining the selling price, which formula is used?
• What method of appraising is used to estimate the value of a single family home or vacant land?
• Which deed type provides the least assurance regarding the ownership rights of a property?
• What is the primary characteristic of an open mortgage?
• What must the closing disclosure document include?
• How do you determine the assessed value using the property tax formula?
• What distinguishes a universal agent from other types of agents?
• What is the significance of a lock-in clause in a mortgage?
• What is an easement by prescription?
• What is the term for a listing where the seller can use multiple brokers without obligation to pay any if they sell alone?
• What is one potential advantage of a short sale for the homeowner?
• What is an essential step a homeowner must complete before listing a property for a short sale?
• What role does a transaction broker play?
• What does an escalation clause in an adjustable rate mortgage do?
• What type of mortgage is designed for seniors aged 62 and older to access home equity?
• In the context of a real estate transaction, what function do ministerial acts serve?
• What is the role of a special agent?
• What is the correct way to calculate volume in cubic feet?
• What type of damages are awarded to punish the defendant exceeding simple compensation?
• What is essential for a property manager to have when leasing a property?
• What is a purchaser’s legal right to purchase property while under contract called?
• What does RESPA stand for?
• What term is used for a tenant who remains on the property after a lease has officially ended?
• Which of the following is NOT a required element for a valid contract?
• Which type of sale occurs when a homeowner sells their property for less than the amount owed on their mortgage?
• Which document must a homeowner sign to allow the lender to proceed with a short sale?
• Which mortgage includes both real and personal property?
• Which formula would you use to calculate monthly interest from annual interest?