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my name is Jonathan go forth with Keller Williams Platinum Partners thanks for watching this video this is to help you pass the real estate exam these are 25 excellent test questions to help you practice with they are good in all 50 states after you pass the exam come back to this video and make a comment say I passed because everyone would love to know that and it encourages everyone else who is going to be studying to pass the exam from around the country in the uh description of this video below I have link links to other test question videos to help you keep practicing check that out you might have to click the word more to see all of those uh links and of course I'd love it if you subscribe to see more videos like this and uh my other uh videos on my channel are to help you make a lot of money in real estate after you are licensed I've been a full-time realtor for 27 years this is my dream job give this video a like and let's uh get started number one which of the following leans with would take priority a an IRS tax lean B this year's real estate taxes c a judgment lean filed three weeks ago d a mechanics lean which of the following leans would take priority and your answer is B this year's real estate taxes so real estate taxes always take the highest priority to be paid now you might think it's a an IRS tax lean because that sounds a little intimidating an IRS tax lean but this year's real estate taxes uh takes priority so your answer is B number two an example of blockbusting would be a when real estate agents alert residents of a neighborhood that their area is changing due to unwanted people moving in and they should sell before values fall or B when lenders refuse lending to a certain targeted segment of a city C when insurance companies refuse to insure homes in a targeted segment of a city or D when a realtor steers buyers to a targeted segment so this is a good example of a VOC ulary word that you need to have memorized uh you can see blockbusting used throughout many different kinds of questions um but again an example of blockbusting would be a a is your answer when real estate agents alert residents of the neighborhood that their area is changing due to unwanted people moving in and they should sell before values fall that is the definition of blockbusting number three you sold a property near an airport the flight patterns have been permanently changed with the addition of a new Runway resulting in a 25% loss in property values this is an example of a material obsolescence B location obsolescence C economic obsolescence or D functional obsolescence and your answer is C economic obsolescence so economic obsolescence is uh a cause of depreciation that can occur due to factors not related to the subject property and this question it's due to a new Runway and that is the cause of the depreciation now functional obsolescence which is functional OB obsolesence that occurs when a service or an object is no longer wanted an example of functional obsolescence would be such as having a heater uh in a in a house that in a very hot climate that would just be functional obsolescence that's why your answer is C that one is economic obsolescence number four involuntary method of conveying property include all of the following except a s cheat B adverse possession C quit claim deeds or D condemnation so again involuntary methods involuntary methods of convey property include all of the following so all of those are involuntary except C quit claim deeds that is a voluntary way that you can enter into to convey property you can do a quick claim deed voluntarily number five the right of a defaulting borrower to keep title to a property by satisfying the debt prior to the Foreclosure sale is called a Equitable Redemption B A trustees sale C statutory redemption or D the remainder rights and so your answer here well first there are two kinds of redemption so let's read that question again the right of a defaulting borrower to keep title to a property by satisfying the debt prior to the Foreclosure sale is called so you've really got two kinds of redemption here you got a or you've got C your answer is a Equitable Redemption Equitable Redemption that is keeping title to the property by satisfying the debt before the Foreclosure sale prior to the Foreclosure sale that's what Equitable Redemption is statutory Redemption which is C that one is keeping the title by satisfying the debt at after the Foreclosure sale and that's the difference between Equitable or statutory Redemption so some of these questions might seem kind of easy and simple and a lot of these are good foundation questions to help you practice getting ready to pass the real estate exam uh once you know the good uh fundamentals of what these questions are these are good for all 50 states by the way all 50 states can see these questions these types of questions on your real estate exam number six uh in case you didn't know you also need to know commercial so most real ested agents are going to sell homes properties residential real estate but you also have to pass the questions for commercial real estate and so number six when leasing commercial space and the rent is based on the gross sales of a business the lease is a a net lease b a gross lease c a percentage lease or D an open-ended lease so let's talk about this question when leasing commercial space and the rent is based on the gross sales of a business the lease is now don't pick B A lot of people are going to pick B because it's a gross lease and you talk about gross sales of a business so for something that's really a simple question uh people will pick B and get it wrong your answer is C that is a percentage lease uh an example of this would be a uh a parking lot uh downtown in your city and um their leasing commercial space happens to be a parking lot and that parking lot is going to be based on the number of cars renting space and so the gross sales of that business will determine the percentage of lease that they're going to be paying so that's your answer for that one is C so as we do these memorize and learn uh the vocabulary because that's going to help you in a lot of these uh questions that you'll see on the real estate exam the nice thing about the exam you know I've got uh kids in high school right now and they're studying for the ACT and with a a test like that you want to get the highest score possible doesn't matter what your score score is you just want the highest score possible for the real estate exam it doesn't matter what your score is as long as you pass so if 70% is what you need to pass in your state then that's all you need you don't need 99% to pass you just need to pass so that should take some of the pressure off you you don't have to get all of them correct number seven one loan was obtained using 12 properties as security this type of mortgage would be called a a package mortgage b a purchase with hard money not backed by Fanny May C an open-end mortgage or d a blanket mortgage now this is one of those types of questions this is why you need to be studying your material um so that you should know the difference between a package mortgage and a blanket mortgage you you know your vocabulary already so that this would be hopefully a relatively easy type of question let's read it again one loan was obtained using 12 properties as security this type of mortgage would be called your answer is d a blanket mortgage so that's what a blanket mortgage is but a what is a package mortgage let's learn another vocabulary word here with with this one a package mortgage is when you are using both real property and personal property together as security to take out a mortgage an example of that would be it's a uh a farm and someone is using the uh the farm itself the house uh the structures on the farm but they are also using equipment and the equipment is also rolled into to um the security and that is called a package mortgage so your answer on that one is d a blanket mortgage number eight a bill of sale is a document used to transfer what a bill of sale could be a upgrades on a new construction home or B personal property C real property or D easements a bill of sale is a document used to transfer what your answer is b a bill of sale is what we used to transfer personal property such as a uh a lawnmower such as Furniture things that would normally not be staying with the property when you you sell it as the real estate agent uh you can transfer those things the buyer wants to buy these things from your seller and so uh they can do a bill of sale and sell it on a document like that number nine by the way if you've not subscribed I would love to have you subscribe uh most of my other videos throughout this Channel or to have you come back to later and learn how to make a lot of money as a real estate agent those are training videos for after you are licensed number nine which of the following types of legal descriptions describes property by starting with an identifiable point and then describes the succeeding sides by Direction and length a rectangular B rural C meets and Bounds or D County block and lot so which are the following types of legal descriptions describes property by starting with an identifiable point and then describes the succeeding sides by Direction and length and that is C meets and Bounds now you won't see this as much after you become a real estate agent uh most of the legal descriptions in in cities are are D they're issued by the county by the block by the lot within subdivisions um meets and Bounds as a longer description and that's that's a perfect example of what that is number 10 the primary purpose of a deed is to a prevent adverse possession B transfer title rights C prove ownership or D to give material notice well I will tell you A lot of people are going to narrow this one down to choices B and C hopefully those kind of stand out to you when you see the word deed um could be to transfer title rights a lot of people are going to think that's to prove ownership your answer is B the per the primary purpose of a deed is to transfer title rights now a lot of people get this confused with a title and the title proves ownership so this question right here we can make this into a couple different questions if you get the primary purpose of a title that would be to proove ownership but the title does not transfer the title rights that's what the deed does so you need to memorize these learn these so again the primary purpose of a deed is to be transfer title rights a title would prove ownership number 11 a house sold for $300,000 the buyer is taking out an 80% % loan with a 4% interest rate had to pay $4,000 in closing costs and three discount points what is the total amount due at closing by the buyer so this question is not as intimidating as it looks let's just break it down answer it quickly and move on to the next question uh those three discount points what is a discount Point well one discount point is 1% of the loan amount not the price but of the loan amount so let's figure what the loan is so $300,000 for the price times 80% which is8 equals $240,000 for the loan that $240,000 is 80% of the $300,000 we take the loan amount time uh 03 that's 3% for those points equals $7,200 and that's the total amount of the points the three discount points now let's figure the amount of the down payment so there's a couple different ways we can figure it let's do it like this we take the $300,000 for the house minus the loan amount that $240,000 and that gives us $60,000 for the down payment or we could just take the $300,000 times2 and we get $660,000 you could do it either way uh they give us the $4,000 in closing costs up there in the question uh that the buyer has to pay so we're going to add up those three numbers the $7,200 in Points Plus the $60,000 in the down payment plus that $44,000 in closing costs and so that adds up to $71,200 is the total amount due now and that's your answer $71,200 that is the total amount due at closing by the buyer um in the question up there let's look at the beginning of it a house sold for $300,000 the buyer is taking out an 80% loan with a 4% interest rate the 4% interest rate is irrelevant to this question we don't need to know what the interest rate is has nothing to do with us finding out the answer so I just kind of did a strike through that you know many times uh the Real Estate Commission will will do these test questions um that gives you too much information they'll make it more complicated just to try to confuse you um but it's it's a relatively Fair uh fairly straightforward question that's your answer number 12 after a stream flooded due to heavy rain and then receded the flow of water removed a strip of land along the riverbank this would be known as a accretion b reversion C alivian or D evulsion your answer is D evulsion so now let's talk about what all four of these are this is going to be a great uh practice question you're going to get four different questions out of this great for vocabulary a accretion what is accretion accretion is an increase in Land by natural growth both it's a buildup of land but what are we looking for in the question uh the flow of water removed a strip of land so it can't be a a is an increase of land B uh a reversion a reversion is when someone loses title and it reverts back to another that's a great vocabulary word uh and it has nothing to do with this type of question C aluan that is an increase in Land by natural growth very similar uh to accretion they do have different uh a little bit different meanings but for the purpose of this question all I want you to know is they are both an increase in land then we have D evulsion an evulsion is an Abrupt change in the course of a stream that forms uh a boundary between two Parcels resulting in a loss of some land evulsion by the way evulsion and uh erosion are similar erosion is a slow process of the removal of land and evulsion is a faster much faster due to an abrupt change um if this question said it had happened over the past 30 years that would be erosion of losing the land but this is uh D is your answer evulsion number 13 which of the following is an incumbrance so these are great test questions you know of all the different videos I have with test questions to help you practice with this is the video that is my favorite because these 25 questions are excellent these have come from a lot of different sources of all the videos I have I feel like this one has these 25 questions are the most likely that you are going to see questions very similar to these on your exam uh and this is a great one and encumbrance is a very popular kind of test question so I want you to learn this vocabulary term which of the following is an encumbrance a a mortgage B an easement c a property tax lean or D all of the above so the question here is what is an encumbrance an encumbrance is a claim against a property by a party that is not the owner it affects the transferability of the property and it restricts the property's use until the encumbrance is lifted the most common types of encumbrances are mortgages easements and leans and so your answer is D all of the above number 14 an example of an easy ments in Gross is the right of a a roofing company that is re-roofing a house has stored some of their supplies slightly onto the neighbor's yard or B kids playing football on their own yard as well as the neighbor's yard or c a painting company that you have hired to repaint your house is parking their trucks on your driveway or d a u ility company is accessing your property to maintain wires and pipes so an example of an easen and gross is the right of d a utility company accessing your property to maintain wires and pipes number 15 this is a question I want to make sure you know number 15 the Federal National Mortgage Association that's abbreviated to FN Ma and we say that is Fanny May um that this is what Fanny May is so you've probably heard the term Fanny May this is it this is what Fanny May is so if you look at those letters FN M A and you just kind of say those it would be Fanny May that's where Fanny May comes from and that is the Federal National Mortgage Association so what is it that's this question uh a it's a federal agency that buys FHA and VA loans or B it's a federal agency which acts as a watchdog on the primary mortgage Market or C it's a government sponsored private Corporation designed to assist the primary mortgage Market or D it's a federal agency that ensures all types of mortgage loans and that's what this question is what is Fanny May so this is a good one I love this question because chances are pretty high you're going to see a question about like this on your exam you know again these are good for all 50 states the answer is C I want to tell you why there are some things in this um that are trigger words first of all look at a B and D they all say it's a federal agency and most people think that the uh Fanny May is a federal agency because look at how it's titled the Federal National Mortgage Association it looks like it would be a federal agency but it is not and that's the big thing I want you to remember it is not a federal agency that it is so read C with me it's a government sponsored private Corporation designed to assist the primary mortgage market so it's private that's the other term I want you to remember about Fanny May it is a private Corporation it is not a federal agency but it is government sponsored so what does Fanny May do what is the purpose of Fanny May and this is why a lot of people will pick a do not pick a um a says it's a federal agency that buys FHA and VA loans well it does buy loans but it's not a federal agency so that's why your answer is C Fanny May is a purchaser of mortgage loans to free up the liquidity of lenders and Banks that's all that Fanny May really does it it creates more liquidity of Banks and mortgage companies out there issuing loans they bundle those up they sell them to Fanny May uh now the bank has all of its money back and they can keep doing more and more loans and that's what Fanny May does it purchases mortgage loans to free up the liquidity of the lenders and the banks um that is an awesome question if you have not liked this video yet right there's the reason to give me a like number 16 the type of real estate ownership that is most all-inclusive is a fee simple absolute estate B reversionary interest C life estate or D qualified fee estate the type of real estate ownership that is most all-inclusive is a fee simple absolute estate so reversionary interest is that interest property that exists when the ownership of that life estate reverts back to the original at the end of the life estate uh number c a life estate is a freehold estate that only lasts as long as the life tenant uh d a qualified fee estate is limited by specific conditions and so the most all inclusive is a number 17 regarding the federal truth and lending law which of the following must be disclosed to a borrower when taking a new First Mortgage a that Kickbacks to Realtors are prohibited B the total amount of interest that will be paid during the life of the loan C how much the limits are regarding the prepaid items of taxes and insurance or D the annual percentage rate which is all also called the APR so this is uh the federal truth and lending law and which of the following must be disclosed to a buyer to a borrower when taking a new First Mortgage your answer is D the annual percentage rate number 18 regarding the Equal Credit Opportunity Act which of the following can a lender not do a verify a borrower's income sources B refuse a borrower who is receiving income from public assistance C tell the applicant within 30 days of denial or granting of credit or D give specific reasons why the credit was denied so of those four which of the following can a lender not do so they can do all those except B they cannot refuse a borrower who is receiving income from public assistance number 19 which of the following would be classified as a general lean so which of these is a general lean a a judgment lean b a property tax lean eal estate property tax lean or D A mechanics lean and your answer is a a judgment lean is placed on all of the assets of the deor in general uh B and C are placed specifically only on the property that is delinquent in taxes and then d a mechanics lean that's also specific to the property where someone is trying to get paid on work or supplies that were performed at that specific property so the general type of lean on there is a judgment lean number 20 the amount of loan expressed as a percentage of the value of the property getting the loan placed against it is called the a loan to value ratio B debt to equity ratio C the secured debt ratio or D the appraised value so you will see this throughout your career it's funny a lot of the things that you're studying you're just not going to use a lot of this throughout your career you won't see these some of these terms much uh a lot of this you know we're studying right here to help you pass an exam but number 20 the answer to this you will see you're going to see this on every contract if a buyer's taken out a loan um your answer is a it's a loan to value ratio LTV what is that's abbreviated loan to value so that's the amount of loan expressed as a percentage of the value of the property getting the loan placed against it and and that's the loan to value ratio a we're going to go through these last five questions pretty quick um couple things at the end of this video you're going to see two links pop up on your screen you can click on either of those for more test question videos um also if you go into the description of this video below you might have to click the word more to open up all the the full description of it I'm going to put a lot of different links to a variety of other test test question videos to help you keep practicing what you need to do to pass this exam study your material just study it over and over and over and over get all the concepts in your head so you're learning them and then practice a lot of test questions that's the format you're going to take this exam is in the format of of multiple choice test questions and so that's how you need to be reviewing because it will help you be comfortable and very confident when you go to take the exam number 21 in determining total square footage of a home being appraised the appraiser should use a inside dimensions B outside dimensions C the net square feet after removing closets and stairs because they are not living space or D lot Dimensions so when're determining total square footage of a home being appraised the appraiser should use B the outside dimensions number 22 a lot measured 80 ft by 100 ft with the front being 80 ft across it was valued at $5 per square foot plus $40 per front foot what is the total value of the lot for this we got the you're going to figure the area and then that 80 ft across the front that is a line think of that as the curb uh it's it's not another area it's just a line across the front to and that determines uh kind of location you know different Lots uh there's one reason that corner lots are many times worth more uh because of the frontage so here's how you figure this uh let's read it again a lot measured 80 ft by 100 ft with the front being 80 ft across it was valued at $5 per square foot plus $40 per front foot What's the total value of the lot so here's how you do this uh first we're going to take 80 * 100 that gives us 8,000 square ft and take that times $5 so that's $40,000 for the area of the lot now we got 80 linear feet across the front this is not more area this is simply the line I think I think of this is the curb this is the frontage of the lot you got 80 linear feet and so we're going to take 80 * $40 per foot that gives us uh $3,200 all you do is add those together $40,000 + $3,200 is $43,200 for the total value of the lot number 23 a realtor has been selling homes for 18 years and is sold over 400 homes in her career after going on a listing appointment she can refuse the listing for the following reason a the seller wants to list the home for $30,000 higher than the highest sale in the neighborhood or B the majority of the other homeowners are minorities C the religious beliefs of the homeowner or D the seller is a minority now this should be a fairly easy one for you um it is not B C or D if you see answer choices like those you should eliminate those cannot discriminate and so your answer is a and you can refuse a listing for that and every once in a while you might come across a listing in the future your career gets going you come across a seller and they want to severely overprice that house and you know there is no way you're going ever sell it you have the right to refuse it now you probably still won't but you have the right to refuse it and that's all that this question is asking so your answer on that one was a number 24 the best information source that a broker can use in determining a list price for a home is a what the owner originally paid for it B the list prices of other homes not in the same area C the appraised value of a comparable property or D the assessed value of a comparable property so we're looking for the best choice the best choice now many times you might use all of this you know I when I go on a listing appointment and I'm trying to price a home I am curious everything I can find out about that house I'm curious you know on on all the different ways of of helping me get some Direction but in this your best answer is C the appraised value of a comparable property uh D is the assessed value that's a County assessment County assessments many times are not accurate at all um so if you can get C the appraised value of a comparable property that is your best choice of those four different options our last question number 25 the right of a County city or state to take private property is known as a the right of first refusal or B Severance or C eminent domain or D condemnation we're ending with this one this is a just a phenomenal question you need to know this uh very likely you're going to see this question given to you in uh a couple different formats so we're going to talk about this you can take number 25 it can count as two different test questions the way we're going to discuss this um before we wrap this up if you didn't subscribe yet I'd be honored if you subscribed and please give this video a like and then then before this ends um you know keep studying I want you to schedule your exam as fast as you can study the material practice questions and just go take the exam get it knocked out get it done and over with so you can begin this most awesome career you know I've had the privilege of of doing this in my dream job I've done this full-time for 27 years I got to be listed in Forbes Magazine in 201920 and 21 as one of the top Market leaders in the country it is the best career ever imaginable so let's do number 25 again the right of a County city or state to take private property is known as the right of first refusal Severance eminent do domain or condemnation your answer is C now we're going to talk about it is not a or b but let's talk about the difference between c and d c is eminent domain and that is the right of the government to take private property for public good and see the top of this question this is asking what is the right and that's C it is the right condemnation is the process and you need to know the difference you're going to see these two words uh used sometimes in the same question just like this you need to know the difference imminent domain is the right of the government condemnation is the process that the government use to take the property when the government uses the right of imminent domain just learn those memorize those condemnation is the process an eminent domain is the right thanks so much for watching uh just keep practicing check out the two videos that are popped up on your screen now and uh look forward to you joining me on the next video