Determine your answer, then click the arrow to see the correct response.
The Term "Plat Map" in Real Estate Refers To:
A) A legal document that conveys ownership of real property
B) A map that shows the divisions of a piece of land into lots, streets, and other elements
C) A survey of a property's boundary lines
D) A list of property owners in a neighborhood
Correct Answer: B) A map that shows the divisions of a piece of land into lots, streets, and other elements
Explanation: A plat map is a detailed map that illustrates the divisions of a piece of land, including lots, streets, and other elements, as part of a subdivision plan.
What Is "Capital Gains Tax" in Real Estate?
A) A tax on rental income
B) A tax on the profit from the sale of real estate
C) A tax on property improvements
D) A tax on property inheritance
Correct Answer: B) A tax on the profit from the sale of real estate
Explanation: Capital gains tax is a tax on the profit made from selling real estate or other investments.
The Term "Depreciation" in Real Estate Refers To:
A) The increase in property value over time
B) The decrease in property value over time due to wear and tear
C) The appraisal process of a property
D) The mortgage interest deduction
Correct Answer: B) The decrease in property value over time due to wear and tear
Explanation: Depreciation is the reduction in the value of a property over time due to factors like wear and tear.
In Real Estate, "Appreciation" Refers To:
A) The gradual repayment of a loan
B) The increase in property value over time
C) The annual property tax payment
D) The periodic maintenance of a property
Correct Answer: B) The increase in property value over time
Explanation: Appreciation is the increase in the value of a property over time due to market conditions or improvements.
What Is a "Wraparound Mortgage"?
A) A mortgage that covers multiple properties
B) A secondary financing option where a new mortgage includes the existing one
C) A loan with adjustable interest rates
D) A mortgage that requires no down payment
Correct Answer: B) A secondary financing option where a new mortgage includes the existing one
Explanation: A wraparound mortgage is a form of secondary financing that wraps the new mortgage around the existing one, combining both into a single loan with a single payment.
In New Hampshire, Which Entity Is Responsible For Licensing and Regulating Real Estate Professionals?
A) New Hampshire Department of Revenue
B) New Hampshire Real Estate Commission
C) New Hampshire Association of Realtors
D) New Hampshire Department of Labor
Correct Answer: B) New Hampshire Real Estate Commission
Explanation: The New Hampshire Real Estate Commission licenses and regulates real estate professionals in the state.
What Must a Licensed Real Estate Broker in New Hampshire Do With All Funds Received From Clients in Connection With a Real Estate Transaction?
A) Deposit them into a personal account
B) Deposit them into an escrow account
C) Hold them in cash until closing
D) Immediately transfer them to the seller
Correct Answer: B) Deposit them into an escrow account
Explanation: Brokers must deposit all funds received from clients into an escrow account to ensure the funds are held securely and are properly managed.
Under N.H. RSA 331-A:25-b, What Is One of the Primary Duties of a Seller's Agent in New Hampshire?
A) To provide the buyer with a list of potential inspectors
B) To negotiate the highest possible price for the seller
C) To conduct property appraisals
D) To inspect the property for defects
Correct Answer: B) To negotiate the highest possible price for the seller
Explanation: The seller’s agent is responsible for representing the seller’s interests, including negotiating the highest possible price for the property.
A Property in New Hampshire Is Assessed at $400,000, and the Local Tax Rate Is $2.50 per $100 of Assessed Value. What Is the Annual Property Tax?
A) $8,000
B) $10,000
C) $12,000
D) $14,000
Correct Answer: A) $10,000
Explanation: The annual property tax is calculated by dividing the assessed value by 100 and then multiplying by the tax rate: ($400,000 / 100) x $2.50 = $10,000.
A Buyer Takes Out a Mortgage Loan for $200,000 at an Annual Interest Rate of 4% for a Term of 30 Years. What Is the Monthly Interest Payment During the First Month?
A) $666.67
B) $700.00
C) $733.33
D) $800.00
Correct Answer: A) $666.67
Explanation: The monthly interest payment is calculated as ($200,000 × 0.04) / 12 = $666.67.