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

A mortgage is a voluntary lien, created by agreement between borrower and lender. Tax liens (B), mechanic’s liens (C), and judgment liens (D) are involuntary. Voluntary liens are willingly placed by the owner, usually for financing.

Implied agency arises from the conduct of the parties, even without a written contract (e.g., if a buyer assumes an agent represents them). Express agency (A) is created by written or verbal agreement. General (C) and special agency (D) describe scope of authority.

Appraisal fraud occurs when an appraiser intentionally misstates value to benefit a party. Puffing (A) is exaggeration. Blockbusting (B) is inducing panic selling. Misrepresentation (C) is false factual claims but usually by agents, not appraisers.

A graduated-payment mortgage (GPM) allows borrowers to start with smaller payments that gradually increase, helping those with expected income growth. Reverse mortgages (A) pay owners, balloon loans (B) require lump-sum payoff, and ARMs (D) change rates with the index.

Concealing a material defect like a leaky roof is fraudulent misrepresentation. Puffing (A) involves exaggeration of opinion, not fact. Innocent misrepresentation (C) occurs when false information is given without intent to deceive. “Buyer beware” (D) is not a defense for hiding known defects. Agents have a duty to disclose all material facts.