Determine your answer, then click the arrow to see the correct response.
A Lease Agreement That Adjusts Rent Based on Changes in a Specified Index Is Known As:
A) Gross lease
B) Net lease
C) Percentage lease
D) Index lease
Answer: D) Index lease
Explanation: An index lease adjusts rent periodically based on changes in a specified economic index.
Which of the Following Is Considered Personal Property?
A) A built-in microwave
B) A chandelier
C) A garden hose
D) A garage door opener
Answer: C) A garden hose
Explanation: Personal property is movable and not permanently attached to the land, unlike built-in fixtures.
Which Type of Deed Provides a Limited Warranty of Title and Only Covers Defects That Occurred During the Grantor's Ownership?
A) Quitclaim deed
B) Bargain and sale deed
C) Special warranty deed
D) General warranty deed
Answer: C) Special warranty deed
Explanation: A special warranty deed provides a limited warranty and only covers defects that occurred during the grantor’s ownership.
The Principle That States the Value of a Property Is Determined by the Cost To Acquire an Equally Desirable Substitute Property Is Known As:
A) Contribution
B) Regression
C) Progression
D) Substitution
Answer: D) Substitution
Explanation: The principle of substitution states that a property’s value is determined by the cost to acquire a substitute property with the same utility.
Which Entity Is Responsible For Licensing and Regulating Real Estate Professionals in Nebraska?
A) Nebraska Department of Revenue
B) Nebraska Real Estate Commission
C) Nebraska Board of Realtors
D) Nebraska Department of Labor
Answer: B) Nebraska Real Estate Commission
Explanation: The Nebraska Real Estate Commission licenses and regulates real estate professionals in the state.
What Is the Continuing Education Requirement for Nebraska Real Estate License Renewal?
A) 8 hours every year
B) 12 hours every two years
C) 18 hours every two years
D) 24 hours every three years
Answer: C) 18 hours every two years
Explanation: Nebraska requires 18 hours of continuing education for license renewal every two years.
An Easement That Is Created by Continuous, Open, and Hostile Use of a Property for a Statutory Period Is Known As:
A) Easement by necessity
B) Easement by prescription
C) Easement in gross
D) Easement appurtenant
Answer: B) Easement by prescription
Explanation: An easement by prescription is created through continuous, open, and hostile use of property for a statutory period.
The Fiduciary Duty of "Accounting" Requires an Agent To:
A) Disclose all known facts about the property
B) Follow all lawful instructions of the client
C) Keep an accurate record of all funds received and disbursed
D) Act in the best interest of the client
Answer: C) Keep an accurate record of all funds received and disbursed
Explanation: Accounting requires the agent to keep accurate records of all funds received and disbursed on behalf of the client.
A Nebraska Real Estate Agent Is Working With a Seller To List Their Home. The Seller Informs the Agent of a Previous Termite Infestation That Has Been Treated. What Should the Agent Do?
A) Keep the information confidential as the issue has been treated
B) Disclose the previous termite infestation to potential buyers
C) Wait until asked by a potential buyer to disclose the information
D) Advise the seller not to disclose the information
Answer: B) Disclose the previous termite infestation to potential buyers
Explanation: The agent has a duty to disclose any known material defects or issues with the property to potential buyers.
A Buyer in Nebraska Requests Their Agent To Write an Offer That Includes a Clause Allowing Them To Back Out if They Cannot Sell Their Current Home. What Is This Clause Called, and Is It Permissible?
A) An escalation clause, and it is not permissible
B) A contingency clause, and it is permissible
C) A waiver clause, and it is permissible
D) A release clause, and it is not permissible
Answer: B) A contingency clause, and it is permissible
Explanation: A contingency clause allows the buyer to back out of the contract if certain conditions, such as selling their current home, are not met.