1. As a seller's agent, you sell a house for $135,000. The selling price includes a six percent commission rate that your brokerage charges. The buyer's agent will get half the commission. What is your portion of the commission? a. $2,025 b. $4,050 c. $8,100 d. None of the above $135,000 x .06 = $8,100 $8,100 ÷ 2 = $4,050 2. The zoning laws in your town require an apartment building to provide two and a half parking spaces for every 1,000 square feet of inhabited space. A local apartment building has 20,000 square feet of apartments. How many parking spaces should it have? a. 40 b. 50 c. 45 d. 55 20 (1,000 sq ft) x 2.5 parking spaces (1000 sq. ft) = 50 3. The presence of lead paint in a home must only be disclosed if the home is being purchased using an FHA loan. True False Federal lead-based paint disclosures have nothing to do with the type of loan used to purchase a home. This federal law requires lead-based paint disclosures when the residential property— offered either for sale or lease—was constructed prior to 1978. Residential housing constructed prior to 1978 is called “target housing.” For target housing, a prospective tenant must be given the EPA-approved pamphlet on the dangers of lead. The EPAapproved pamphlet must also be given to prospective purchasers of target housing. But, additionally, prospective purchasers must be given a 10-day window to have the home tested for leadbased paint. Prospective buyers can waive testing. In fact, no party is legally obligated to test or pay for removal of lead-based paint. Finally, even if construction began after January 1, 1978, actual knowledge of lead-based paint on the premises must be disclosed to both prospective tenants and prospective buyers. Note: Federal lead-based paint disclosures are strict because lead poisoning can cause significant neurological damage, particularly to small children. Test-Taking Tip: Lead-based paint disclosures are the responsibility of the seller or the landlord. However, if there is a real estate licensee involved in a transaction, the licensee has a duty to make sure the client is both aware of—and has complied with—the lead-based paint rules. In fact, licensees, buyers, and sellers all must sign the lead-based paint hazard addendum which is attached to the purchase contract or lease. 4. Of the many expenses involved with owning a house, which of the following are tax-deductible? a. Property taxes b. Insurance c. Interest d. Both a