Experience the Quality With Free Real Estate Sales Exam Questions That Helps Candidates Pass

The principle of contribution holds that improvements add value only if buyers find them desirable. For example, an expensive pool may not increase value by its full cost. Substitution (A), conformity (C), and progression (D) are related but distinct principles.

The Lead-Based Paint Hazard Reduction Act of 1992 requires disclosure of known lead hazards in pre-1978 housing. Buyers must receive an EPA pamphlet and be given a 10-day period to conduct inspections. RESPA (A) relates to settlement procedures, the Fair Housing Act (B) addresses discrimination, and TILA (D) governs lending disclosures.

While fiduciary duties like loyalty, obedience, and confidentiality are owed to the client (seller), agents must treat buyers with honesty and fairness. This prevents fraud or misrepresentation and is required under license law.

An easement in gross benefits an individual or company, not another parcel, such as utility lines. A shared driveway (B) is an easement appurtenant, benefiting another property. Restrictions (C) are deed limitations, and liens (D) are financial encumbrances.

TRID (TILA-RESPA Integrated Disclosure) requires lenders to give borrowers a Loan Estimate within three days of application and a Closing Disclosure three days before settlement. RESPA (A) and TILA (B) were merged under TRID in 2015. ECOA (D) focuses on lending discrimination.