Free IA-REB Practice Questions

Question 1

Three siblings acquire a parcel as joint tenants with right of survivorship. One sibling later conveys that sibling's one-third interest to an unrelated purchaser. No other conveyance occurs. How is title held afterward?

Accepted Answer

The purchaser is a tenant in common; the other two siblings remain joint tenants with each other

Answer

The purchaser and the two remaining siblings hold all interests as joint tenants

Answer

The purchaser and the two remaining siblings hold the entire parcel as tenants in common, with no survivorship among any of them

Answer

The conveyance is ineffective unless the two remaining siblings consent

Question 2

A city issues a permit for a 24-foot detached garage. A recorded subdivision covenant limits detached structures to 16 feet, and a neighboring owner has standing to enforce the covenant. What is the best conclusion?

Accepted Answer

The owner must satisfy both restrictions; the city permit does not extinguish the private covenant

Answer

The city permit overrides the covenant because governmental approvals control private restrictions

Answer

The covenant is unenforceable unless the city incorporates it into the zoning ordinance

Answer

The neighbor may object only by asking the city to revoke the building permit

Question 3

An apartment property has annual potential rent of $216,000, expected vacancy and collection loss of $12,000, laundry income of $6,000, operating expenses of $70,000, and annual debt service of $32,000. Comparable investments support a 7% capitalization rate. What value is indicated by direct capitalization?

Accepted Answer

$2,000,000

Answer

$1,542,857

Answer

$3,000,000

Answer

$2,171,429

Question 4

A brokerage and a title company regularly serve consumers in transactions involving federally related mortgage loans. Which arrangement is most consistent with RESPA Section 8?

Accepted Answer

Each pays its proportional share of actual joint-advertising costs, with no referral-based payment

Answer

The title company pays the brokerage $100 whenever a referred buyer closes with it

Answer

The title company rents desk space above market value because increased buyer referrals are expected in return

Answer

The brokerage receives a marketing gift card after every fifth title-order referral

Question 5

A buyer's written offer expires Friday at 5:00 p.m. On Thursday, the seller delivers a counteroffer at a higher price, which the buyer rejects. At 4:30 p.m. Friday, the seller signs the buyer's original offer and claims a contract formed. Which result is correct?

Accepted Answer

No contract formed; the seller's counteroffer terminated the original offer

Answer

A contract formed because the seller signed before the original deadline and communicated acceptance

Answer

A contract formed at the counteroffer price when the buyer received it

Answer

The original offer remained open until the buyer separately revoked it

Question 6

A seller has accepted a purchase agreement containing a financing contingency. Before closing, the listing broker receives a stronger second offer. The seller has given no instruction to withhold later offers. The broker's best next step is to:

Accepted Answer

Present it promptly and discuss whether the seller wants to accept it as a backup offer

Answer

Reject it because a property under contract may not receive another offer

Answer

Hold it without telling the seller until the financing contingency expires

Answer

Reveal its exact price and contingencies to the first buyer, then demand immediate removal of the financing contingency

Question 7

A seller tells the listing broker that the basement takes on water after heavy rain and that an urgent job transfer would make the seller accept $30,000 less than the asking price. A prospective buyer asks about both matters. Which response best fulfills the broker's duties?

Accepted Answer

Disclose the known water problem while protecting the seller's motivation and minimum price

Answer

Withhold both facts because each was learned from the broker's client

Answer

Disclose the seller's minimum price because it affects negotiations, but treat the recurring water intrusion as confidential

Answer

Disclose both facts because every fact affecting negotiations is material

Question 8

A seller is contracting to sell a house built in 1964. The seller knows of no lead-based paint hazards and has no related reports; the buyer has not waived a lead evaluation. Before the buyer becomes obligated under the contract, what must occur under the federal Lead-Based Paint Disclosure Rule?

Accepted Answer

Provide the required disclosures and a 10-day lead inspection or risk-assessment opportunity, unless altered or waived in writing

Answer

Before contracting, the seller must hire a certified inspector, complete any recommended abatement, and prove that the house is lead-free

Answer

No federal lead disclosure is required because the seller has no actual knowledge or reports

Answer

A standard home inspection must be completed and substituted for the federal lead-evaluation opportunity

Question 9

A commercial tenant transfers all of the remaining lease term to another business. The landlord consents to the transfer but does not release the original tenant from its lease obligations. How is the arrangement best characterized?

Accepted Answer

An assignment, with the original tenant potentially remaining liable on the lease

Answer

A sublease, because the original tenant retains a possessory reversion before the lease ends

Answer

A novation that automatically discharges the original tenant from further liability

Answer

A surrender that terminates the original lease before a replacement tenancy begins

Question 10

An owner signs and acknowledges a warranty deed naming a niece as grantee, then locks it in a home safe while deciding whether to make the gift. The niece learns of the deed only after the owner's death. What most directly prevented title from passing during the owner's lifetime?

Accepted Answer

There was no delivery with present intent to transfer title

Answer

The niece did not pay consideration before the deed was signed

Answer

A quitclaim deed, rather than a warranty deed, was required for a gift

Answer

The deed was not recorded before the grantor's death

Free IA-REB Practice Questions

Domain 1: Property Ownership 10% of exam

Question 1

Domain 2: Land Use Controls 5% of exam

Question 2

Domain 3: Valuation 8% of exam

Question 3

Domain 4: Financing 9% of exam

Question 4

Domain 5: Contracts 19% of exam

Question 5

Question 6

Domain 6: Agency 13% of exam

Question 7

Domain 7: Property Disclosures 7% of exam

Question 8

Domain 8: Property Management 5% of exam

Question 9

Domain 9: Transfer of Title 6% of exam

Question 10

The rest of the IA-REB blueprint

That's 10 of 1,030