Real Finance Flashcards

Terms Definitions
Chapter 2
Chapter 2
chapter 1
chapter 1
Truth-in-Lending
The Federal Reserve Boards "Regulation Z"" which requires disclosure of certain loan terms to the borrower" before the obligation is effective. "
when the supply and demand relationship in a market is unbalanced because of excess supply, it is to the advantage of
buyers
What does REO mean?
Bank owned property
Total housing expenses typically should not exceed what percent of the gross monthly income?
 
a. 25%
b. 28%
c. 31%
d. 36%
b. 28%
a licensed appraiser may handle federally realted appraisals of complex 1-4 unit residential property valued at less then
$250,000
___ find barrowers, process applications, and sumbits loan packages to lenders
mortgage broker
price fixing and monopolies are prohibited by federal
anti-trust laws
HUD is the "Mother" of what?
the FHA
Who maintains the Nations Economic Balance & acts as the Nations Fiscal Manager?
US treasury
With self-insurance, the entire risk falls with
 
a. lender
b. buyer
c. seller
d. seller and buyer
a. lender
Trade fixtures are considered
 
a. personal property
b. real property
c. Both A and B
d. Neither A nor B
a. personal property
Mortgage
1) To hypothecate as security, real property for the payment of a debt. The borrower (mortgagor) retains possession and use of the property. (2) The instrument by which real estate is hypothecated as security for the repayment of a loan.
deterioration of building foundation walls and ceiling is considered
long lived incurable
A borrower's income, credit history, and loan collateral are criteria considered in the
underwriting process
total annual income received before any expenses are deducted is
gross income
Savings and Loan Associations
Established to promote "thrift" and home ownership by loaning out the depositors' deposits, in the form of residential home mortgages.
a real estate agent suggesting that a particular neighborhood is "safer" than another may be an example of:
steering
monetary benefits of investing in real estate come from all of the following except
negative amortization
a corporation that owns or leases the land and buliding and, in turn, leases space to its shareholders is characteristic of a
cooperative
lien theory
the mortgagor retains both legal and equitable title. the mortgage has a lien on the property as security for the mortgage debt
What is the minimum number of investors required for a REIT?
 
a. 100
b. 75
c. 125
d. 50
a. 100
All of the following factors affecting return on investment except
 
a. liquidity
b. risk
c. cost
d. management
c. cost
George has a savings account and wishes to make $120 per month off the interest. If the account is currently paying him 5% interest, how much money should Steve leave in the account?
 
a. $25,800
b. $28,800
c. $30,800
d. $32,800
b. $28,800
1031 Exchanges involves
 
a. like-kind property
b. no gain's or losses recognized
c. boot
d. all of the above
d. all of the above
Who or what funds Cal-Vet loans?
 
a. Voter-approved bonds
b. Outside funding
c. California Department of Veterans Affairs
d. Traditional banks and mortgage companies
a. Voter-approved bonds
What documentation notifies any interested party of another's interest in the same party?
 
a. Recordation
b. Recorded deed
c. Recorded mechanic's lien
d. Recorded collateral
c. Recorded mechanic's lien
The use of a proportionately small amount of money to secure a large loan for the purchase of a property is called
 
a. leverage
b. interest
c. financing
d. collateral
a. leverage
Graduated Payment Mortage
A mortgage that has payments beginning at less than interest only, and gradually increase at specified times (usually once each year for seven years), then level off and stay the same for the balance of the loan term.
zeroscaping and xeriscaping are each used in specific climates for
water efficient landscaping
a general lien effects
all property of the owner
once a tract has been prepared for construction it then becomes a
site
which of the following catagories of expenses is not included as an operating expense
mortgage payments
the charge for the use of money is
interest
on the six function of one dollar charts, columns 4 and 5 are for
discounting
what type of depreciation is generally not curable
external obsolescence
which type of concurrent ownership includes the right of one tenant to will his interest?
tenancy in common
the least appropriate person to chose which title and escrow company to use in closing a real estate sale would be
the listing agent
the basic intent for real estate license laws and regulations was to
protect the public
to determine whether or not a location can be put to future use as a retail store one would examine the:
zoning code
What is a note?
A promise to repay a loan
Which of the following expenses are used to determine debt-to-income ratio?
 
a. Alimony
b. Car loan
c. Credit Cards
d. Property taxes
d. Property taxes
If a property shows a $17,000 net annual cash flow at a capitalization rate of 12%, its value would be calculated as (rounded to the nearest whole dollar)
 
a. $138,583
b. $141,667
c. $143,762
d. $144,215
b. $141,667
The borrower receives the annual escrow statement
 
a. twice a year
b. once a year
c. only at closing
d. every other year
b. once a year
Which of the following loans allow individual properties to be released from the responsibilities of the loan, provided there is a sufficient payment?
 
a. Blanket loan
b. Wrap-around loan
c. Open-ended loan
d. Unsecured loan
a. Blanket loan
A VA loan requires what percentage of down payment?
 
a. 0%
b. 2%
c. 5%
d. 15%
d. 15%
In an FHA guaranteed loan, who pays for the Mutual Mortgage Insurance?
 
a. Lender
b. Federal government
c. Borrower
d. Seller
c. Borrower
Which of the following parties in a trust holds the trust deed?
 
a. Trustee
b. Beneficiary
c. Trustor
d. None of the above
b. Beneficiary
What conditions caused the restructuring of real estate finance and mortgage options available to consumers?
 
a. Disintermediation
b. High interest rates
c. Short money supply
d. All of the above
d. All of the above
A non-judicial foreclosure is also known as
 
a. reconveyance
b. power of sale
c. deficiency judgment
d. trustee's sale
b. power of sale
When the seller makes a junior trust deed, it is sometimes called
 
a. carryback
b. foolish
c. novation
d. conveyance
a. carryback
In a trustee's sale, which of the following parties is not required to be notified when the notice of default is recorded?
 
a. Trustor
b. Junior lien holders
c. Beneficiary
d. State Controller
c. Beneficiary
Which of the following is not a necessary element of value?
 
a. Price
b. Cost
c. Both A and B
d. Neither A nor B
b. Cost
Which of the following is considered a money-restricted encumbrance?
 
a. Encroachment
b. Judgment
c. Easement
d. None of the above
b. Judgment
What concept carried over from Spanish law into modern-day property ownership?
 
a. Civil law
b. Common law
c. Community property
d. None of the above
c. Community property
Package Mortgage
A trust deed or mortgage, secured by both real property and personal property (appliances, carpeting, etc.).
Installment Land Contract
Purchase of real estate wherein the purchase price is paid in installments over a long period of time and title is retained by seller. Upon default, the payments are forfeited. See also LAND
under the current requirements how many hous of experience are needed to obtain a trainee license?
no experience is required
a ___ describes the rights and duties of the lender and the borrower and also establishes the creditor's priority claim to a specific property
security instrument
which of the following methods is used when an appraiser estimates the loss in value for curable and incurable item of depreciation
observed condition
an estate in reversion is a type of
life estate
Promissory Note
A written promise to repay a specified amount over a specified period of time.
Amortized Loan
A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payment Loan.
multiple listing orgs typically use
an exclusive right to sell listing
What causes bonds to rise or fall?
The fear of inflation
Which of the following is not a participant in the secondary mortgage market?
 
a. the VA
b. OFHEO
c. Freddie Mac
d. Ginnie Mae
a. the VA
Which of the following are considered the lowest form of estate?
 
a. Fee Simple Defeasible
b. Estate at Will
c. Estate at Sufferance
d. Estate in reversion
c. Estate at Sufferance
Balloon payments
 
a. are used on hard money loans
b. require a large final payment to completely repay the debt
c. require a 90 to 50 day notice from the lender to the borrower that the payment is forthcoming
d. all of the above
d. all of the above
Which of the following documents shoudl you prepare when planning to invest in property?
 
a. Complete tax returns for the last 3 years
b. Landlord contract information to verify rent history and copies of cancelled rent checks for the past 24 months
d. Both A and C
Depreciation is based on
 
a. deterioration of the structure
b. useful life of the property
c. age of structure
d. all of the above
b. useful life of the property
The tandem plan combines
 
a. Ginnie Mae and Freddie Mac
b. Freddie Mac and Fannie Mae
c. Ginnie Mae and Fannie Mae
d. Ginnie Mae and REMIC
c. Ginnie Mae and Fannie Mae
Which one of the following terms best fits the definition "The price a property would bring if freely offered in an open market with both a willing buyer and seller?"
 
a. Market value
b. Utility value
c. Market price
d. Objective value
c. Market price
Good Faith Estimate
Any act done with honest intent. Bona Fide.
Prepayment Privilage
The right a debtor has to pay off all, or a part of, the debt, without a penalty or fee being charged, before the debt becomes due.
the simplest method used to compute depreciation is the
cost to cure method
____ can limit the usefulness and reliability of the sales comparison approach
lack of market data
appraisals are valid
one the date that the appraiser signs and dates the report
Assumed to Agree and Pay
An agreement to become personally liable for the terms and conditions of a mortgage, including the payments.
the laws of agency govern:
the legal responsiblities of a broker to his or her principal
The Truth-In-Lending Act disclosure must be given to the borrower
 
a. within 3 days of the application
b. 3 days before closing
c. 1 day before closing
d. at closing
a. within 3 days of the application
Risks such as forgeries, incompetency of involved parties, and surveying errors are covered under
 
a. a standard title insurance policy
b. an expanded title insurance policy
c. every title insurance policy issued
d. construction insurance
b. an expanded title insurance policy
A deficiency judgment is allowed in which of the following situations?
 
a. With a defaulted trust deed
b. With a defaulted mortgage
c. Both A and B
d. Neither A nor B
b. With a defaulted mortgage
How many days does the trustor have to repay the debt in order to reinstate the note on a foreclosed property?
 
a. 10 days
b. 7 days
c. 5 days
d. 0 days, as he or she may redeem property until the date of the sale
c. 5 days
The majority of loans made by commercial banks are
 
a. long-term loans of 15 or more years
b. short-term loans of 1-3 years
c. construction loans
d. both B and C
d. both B and C
which of the following will probably lead to the steepest increases in property prices
decreasing supply and increasing demand
a group within a large population would most accruately be described as
a sample of the group
The appraisal standards Board (ASB)
Is a part of the appraisal foundation
Holder in Due Course
Person who, in good faith and for value, obtains a promissory note or check before it was overdue, and who does not have notice that it had been previously dishonored, and does not have knowledge of any defects.
a disabled muslim lawyer responsible to a classified advertisment, applied to rent an apartment in a large complex for which she and her two young children were financially qualified to rent. the property manager:
may reject the application on the basis of her employment as a lawyer
What is the right of rescission?
The buyers right to rescind a transaction secured by a principal residence> ( refinancing, remodeling or equity loans..not a residential purchase loan?
A plot of land containing 36 square miles most likely describes
 
a. 1 township
b. 6 townships
c. 36 sections
d. Both A and C
d. Both A and C
What is the primary function of a mortgage company?
 
a. Originates loans with its own money
b. Connect borrowers with lenders who can provide the necessary funds or programs for their loan needs
c. Service loans they have originated or sold
d. All
d. All of the above
Which of the following is NOT one of the three appraisal techniques used to determine the value of a property?
 
a. Sales comparison approach
b. Cost approach
c. Square foot method
d. Income capitalization approach
c. Square foot method
Which of the following is NOT a tactic used by the Fed to regulate the money supply?
 
a. Open market operations
b. Reserve requirements
c. Supply of gold
d. Discount rate
c. Supply of gold
An error or issue regarding the title to property is called a
 
a. fault
b. cloud
c. mistake
d. both A and B
d. both A and B
The wraparound trust deed
 
a. takes priority to the original loan
b. allows the seller to retain the title to the home
c. allows the seller to finance the buyer, providing a loan encompassing all payments including the first or any subsequent trust
c. allows the seller to finance the buyer, providing a loan encompassing all payments including the first or any subsequent trust deed
A large loan-to value ratio poses a
 
a. smaller risk for the lender
b. larger risk for the lender
c. smaller risk for the borrower
d. larger risk for the borrower
b. larger risk for the lender
high income taxes would most probably result in
less money available for individuals to make real estate purchase
which of the following is a technique for estimating accrued depreciation by market extraction
sale resale analysis
paired sales analysis
extraction method
all of the above
____ is one of the tests to determine if an item is a fixture
agreement of the parties
a listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is
an exclusive right to sell listing
Purchase -Money mortgage (PMM) is what?
A note created at time of purchaseThe purchaser gives to the seller , who takes back a note for part or all of the purchase price
Which of the following is the purpose of Freddie Mac?
 
a. Buy and Sell conventional loans
b. Guarantee securities issued by FHA approved lenders
c. Make legislative recommendations
d. Buy securities from the general public
a. Buy and Sell conventional loans
An example of real property is
 
a. grain that has been harvested
b. car
c. the airspace immediately above the property
d. money
c. the airspace immediately above the property
Your credit score is
 
a. not affected by a creditor running your score
b. hurt every time your credit is run
c. improved every time your credit is run
d. none of the above
b. hurt every time your credit is run
a retail tenant has to pay rent plus all property expenses such as maintenace, insurance and property taxes is
triple net
absolute net
net net net
if o'malley deeds property to 0'halloran on the condition that no englishmen live there, what is the status of the deed?
the deed is valid but the condition is unenforcable
it is the responsiblity of the real estate broker to
quote only the listing price, but present all offers
Disclosures required by Regulation Z are
 
a. included on a separate addendum to the loan
b. included in regular type in the loan document
c. offset by a box, type style, color and bold lettering in the loan document
d. made verbally by the loan ori
c. offset by a box, type style, color and bold lettering in the loan document
The sales comparison approach is based on what factors?
 
a. Sales of other homes in the neighborhood
b. Cost of replacing the home
c. Cost of building a new home
d. None of these
a. Sales of other homes in the neighborhood
Which of the following give a potentional buyer most couse for concern
a home price is moderately higher than its appraised value
which of the following would NOT be permitted under the federal fair housing act
the owner of a 20 unit apartment building rents to women only
When is the cost approach most appropriately used in appraising a property's value?
 
a. When determining the value of a new structure or very specialized structure, such as a church or hospital
b. When determining the value of a single-family dwellin
a. When determining the value of a new structure or very specialized structure, such as a church or hospital
which of the following is true of a summary report
it containes more detail than the restrited us reoprt but less than the self contained report
a woman owned a duplex and lived in half and rented out the other half.  she put a for rent sign in the front yard. the first applicant was a black man whom she turned down stating that she didnt' rent to men. under the fair housing laws, she
is within her rights since she didnt' use any discriminatory advertising
Who is eligible for a VA loan?
 
a. Any person
b. Any person who has served in the United States military
c. Only those persons honorably discharged from military service and or their spuses
d. Only active servicemen or women
b. Any person who has served in the United States military
chapter 12
chapter 12
what is VRM
Variable Rate Mortgage
land does not include
riparian rights
under exclusive authority to purchase agreement, the buyer becomes a
principal
The shared appreciation mortgage traditionally involves the borrower and what other party to share in the increase of value in the property?
 
a. Co-signer
b. Lender
c. Builder
d. None of the above
b. Lender
which of the following organizatins requires appraisers to disclose any defects uncovered in their inpsection
FHA
.....instructions upon death property goes to...
life estate
a landowner wishing to deviate slightly from existing zoning codes would ask for
a variance
What is PAR pricing?
How lenders price loans
FHLMC stand for?
Federal Housing loan Mortgage Corporation ( Freddie Mac)
What is a Thrift?
Savings & loan Banks
usury
Charging an interest rate at higher rate than the maximum rate established by state law.
What does "estate" refer to?
 
a. Land
b. Property
c. Ownership
d. Buildings
c. Ownership
Promissory notes are considered negotiable instruments. Which of the following is also considered to be a negotiable instrument?
 
a. Personal Check
b. Credit Card
c. Collateral
d. None of the above
a. Personal Check
Construction Loan
A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.
the depreciated value of the improvements is substracted from the total sales price to find site value in the
extraction method
the following legal description the s 1/4 of the s 1/2 of the NE 1/4 of section 27 in T78, R8E contains how many acres
40
which of the following prevents the intrusion of water and seals the edges of membranes or where membranes overlap
flashing
according to fannie mae the gross adjustment percentage should not exceed ___% of the sales price of the comparable
25
which of the following are three dimensional measurement
volume
Mortgagee
A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.
when listing is taken, the seller would be referred to as
the client
listing may be terminated by all of the following except
nonhomogeneity
Fed is the abreviation for what?
Federal Reserve System
Which primary participant in the secondary mortgage market guarantees investors that they will receive payment for the security they hold by making late payments for the borrower, if necessary?
 
a. Ginnie Mae
b. Fannie Mae
c. Freddie Mac
d. Office
a. Ginnie Mae
A development where all homes are constructed with similar architectural style, of similar age and built from similar materials (e.g., all brick, or all adobe style) to keep the value of the homes high, best illustrates the principle of
 
a. contributi
b. conformity
An apartment complex brings in $800 per unit, with 9 units. June is interested in purchasing the property as an investment property, and needs a 9% rate of return or capitalization rate. How should June pay for the complex?
 
a. $960,000
b. $80,000
c
a. $960,000
The process by which a mortgage company will use funding from a commercial bank to make a loan, with the intention of selling that loan to an investor, is called
 
a. warehousing
b. origination
c. secondary mortgage market
d. none of the above
a. warehousing
Congress sought to reform the banking system in the U.S. through what act?
 
a. OTSb. FDIC
c. FIRREA
d. RTC
c. FIRREA
Ballon Mortage
One in which the scheduled payment will not fully amortize the loan over the mortgage term. Therefore, it requires a final pay called a balloon payment, larger than the uniform payments, to fully satisfy the debt
which of the following organizatins insures lenders against loss, but does not make loans
Federal housing administration
enforced transfer of property because of foreclosure or bankruptcy is an example of property transferred through
operation of law
if a borrower has an(n) ____ credit score, there is a greater likelihood that the borrower is a good credit risk
high
four unities that must be in the existence to create a joint tenancy. Which of the following is not one of the required unities
entirely
substracting a property's vacancy and collection losses from the property's potential gross income results gives the property's
effective gross income
starting from the south west corner....
metes and bounds
An apprisal is
the work performed by an appraiser
the value of an older townhome is enhanced by being in the same neighborhood as several newer townhomes. This is an example of the princple of
progression
Loan Commitment
1) Title insurance term for the preliminary report issued before the actual policy. Said report shows the condition of title and the steps necessary to complete the transfer of title as contemplated by buyer and seller. (2) A written promise to make or insure a loan for a specified amount and on specified terms. (See COMMITMENT)
an existing structure that would be prohibited under current zoning laws is called
a nonconforming use
Name the secondary mortgage market
Fannie maeFreddie macGinnie maeFederal Home Loan bank
intermediate theory
Ohio and other states adopted based in the principals of title theory, but requiring the mortgagee to foreclose to obtain legal title
What is RAM?
Reversed Annuity Motgage (RAM) is one in which payments are made by the lender to the borrower , based on the equity in the home. this loan allows senoir citizens to live off the equity without selling
Amy signed a note for $10,000 payable in 12 months. The note had an interest rate of 9% when it was due. The note was later sold to a private investor at a 15% discount. What is the rate of return on the amount invested by the investor?
 
a. 25.89%
b.
b. 28.24%
Tom borrowed $4,000 for 1 year. He paid $480 interest. What rate did he pay?
 
a. 15%
b. 12%
c. 10%
d. 9%
b. 12%
Which of the following is not a characteristic of real estate?
 
a. Social
b. Physical
c. Tangible
d. Economic
c. Tangible
The Age Discrimination in Employment Act protects people who are
 
a. 40 or older
b. 45 or older
c. 50 or older
d. 53 or older
a. 40 or older
New real estate loans are created by
 
a. primary lenders
b. Ginnie Mae
c. Freddie Mac
d. Fannie Mae
a. primary lenders
Which one of the following is NOT considered a test of a fixture?
 
a. Method of attachement
b. Emblement
c. Relationship between parties
d. Adaptability
b. Emblement
Amortized Loan
A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a Level Payment Loan.
A certificate appraiser is required for federally realted appraisals of residential property valued at
more than $1 million
the first test for highest and best use is to verify if the use is
physically possible
The amount of money that it took to build a house represents the ___ of the house
value
which term refers to all of ta home's above grade improvements
superstructure
which method is generally regarded as the most thorough and accurate method of estimating building costs
quantity survey method
the ___- is the most frequently used instrument to transfer title
grand deed
Package Mortgage
A trust deed or mortgage, secured by both real property and personal property (appliances, carpeting, etc.).
from a broker's point of view, one of the least desirable listings is an
open listing
What is RESPA ?
It is designed to protect the participants in a Real estate transaction by providing closing cost info before the closing
Which of the following is not a method of foreclosure?
 
a. Nonjudicial
b. Strict
c. Sheriff
d. Judicial
c. Sheriff
Our current money system is based on
 
a. the value system
b. the gold standard
c. paper
d. raw materials such as silver and bronze
b. the gold standard
What is the term for selling a property at market value, below what is owed on the loan?
 
a. Short Pay
b. Walk away
c. Foreclosure
d. Trustee's sale
a. Short Pay
Which of the following is NOT considered one of the five most important disclosures under the Truth in Lending Act?
 
a. Annual percentage rate
b. Finance charge
c. Total amount of payments
d. Right to rescind
d. Right to rescind
Which of the following mortgage types best describe a loan similar to the wraparound loan or all-inclusive trust deed?
 
a. Graduated payment adjustable mortgage
b. Rollover mortgage
c. Shared appreciation mortgage
d. Contract of Sale
d. Contract of Sale
A credit history will help determine
 
a. a borrower's ability to repay the note
b. a borrower's willingness to repay the note based on making past payments on time
c. both A and B
d. neither A nor B
c. both A and B
A pre-qualification involves
 
a. the processing of a full loan application
b. is weighted with more importance than a pre-approval
c. is the minimum certification an agent will require
d. conditional on the borrower finding an acceptable property
c. is the minimum certification an agent will require
There are certain types of sales that would not determine, or represent, the fair market value of a property. Which one of the following is NOT one of these special circumstances.
 
a. Death
b. Divorce
c. Cash Sale
d. Bankruptcy
c. Cash Sale
Assumed to Agree and Pay
An agreement to become personally liable for the terms and conditions of a mortgage, including the payments.
Wrap-Around Mortage
A loan given to a buyer for the remaining balance on a seller's first mortgage and an additional amount requested by the seller. Payments on both amounts are made to the lender who holds the wraparound loan
a tree purchase at a nursery and then planted in the backyard is not considered
a chattle
THe ___ Rule voids any part of USPAP that contradicts local laws or public policy, while still preserving the remainder of USPAP
Juridicitional exception
baselines and merdians are used in the
the government, survey system
Straight Note
A note in which the principal is paid in one sum.
Deed of Trust
An instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary), and reconveyed upon payment in full.
What was the Housing Economic Recovery Act created for?
it authorized a Neighborhood stabilization Program..designed to reduce sources of abandonment
Which of the following is not a mandatory disclosure in a real estate transaction?
 
a. Condominium Documents Disclosure
b. Foreign Real Estate Tax
c. Lead paint disclosure
d. Local requirements resulting from city and county ordinances
c. Lead paint disclosure
An adjustable rate mortgage will also have what feature?
 
a. Interest rate cap
b. Payment cap
c. Margin
d. All of the above
d. All of the above
Which state law protects citizens against discrimination when seeking a private residence, whether a single-family home or an apartment?
 
a. Unruh Civil Rights Act
b. California Civil Code Section 54-55.1
c. California Fair Employment and Housing Ac
c. California Fair Employment and Housing Act
Adjustable Rate Mortage
A loan with an interest rate that is periodically adjusted to reflect changes in a specified financial index.
To avoid involvement in mortgage fraud, the appraiser should
properly verify all market and comparable information used in the appraisal process (both a and b)
Lock in Clause
A clause in a note, mortgage, or trust deed that prevents prepayment.
real estate commissions typically do all of the following Except
enact new real estate legislation or amend existing legislation
The primary activities of HUD are?
1. Supervise FHA2. Direct Ginnie Mae3. Enforce Fair Housing Act & RESPA5. Manage Choice Voucher program & Indian Housing
An appraiser must gather which of the following types of data when arriving at the value of a property?
 
a. Regional
b. City
c. Neighborhood
d. All of the above
d. All of the above
Fannie Mae buys
 
a. only single-family detached residences
b. single family residences made up of 1-4 units
c. any type of residential property regardless on the number of units
d. any type of property
b. single family residences made up of 1-4 units
what is the difference between riparian and littoral rights
littoral refers to land bordering a lake and riparian refers to land bordering a river
the purpose of recording a deed is to
protect the chain of title
the employing broker of a real estate firm automatically becomes a dual agency when
he personally represents both a landlord and a tentant in a single transaction
in an exclusive right to sell listing,
there must be a definite termination date
What must be disclosed at the time of a Loan application?
Information booklet on settlement services.Good Faith estimateMortgage servicing disclosure settlement
All of the following characteristics are correct regarding a leasehold estate EXCEPT
 
a. the owner of a leashold estate possesses a larger bundle of rights than the owner of a freehold estate
b. the owner of the leasehold has exclusive right of posse
a. the owner of a leashold estate possesses a larger bundle of rights than the owner of a freehold estate
What is the redemption period?
 
a. The time during which junior lien holders or the mortgagee's successors may repurchase a property after a foreclosure sale
b. The act of seeking a personal judgment against the person defaulting on the promissory no
a. The time during which junior lien holders or the mortgagee's successors may repurchase a property after a foreclosure sale
What are the two methods of computing depreciation?
 
a. Straight line and effective age
b. Observed condition and economic life
c. Economic life and straight line
d. Straight line and observed condition
d. Straight line and observed condition
a property owner's bundle of rights includes all of the following except
the right to build any structure desired on the property
in most states, a person is exempt from licensure as a real estate agent when performing which of the following activities, even if receiving a fee?  
selling real property as an executor of an estate
to be considered for a good investment, when a property which generates a negative cash flow is sold,
there must be a substatial increase in property value
An index is
 
a. another name for interest
b. another name for the prime rate
c. the starting point of a borrower's applicable interest rate for an adjustable
d. rate mortgage
c. the starting point of a borrower's applicable interest rate for an adjustable
The Fair Housing Act protects people from all of the following except
 
a. redlining
b. blockbusting
c. discrimination based on age
d. landlords refusing to rent to a person with bad credit
d. landlords refusing to rent to a person with bad credit
What federal law expanded the 1866 Civil Rights Act to include more than just discrimination on the basis of race?
 
a. Jones v. Mayer
b. Fair Housing Act
c. Unruh Act
d. Civil Rights Act of 1968 and 1988
d. Civil Rights Act of 1968 and 1988
A junior lienholder holds what type of a lien?
 
a. Property tax lien
b. Second or any subsequent trust deed
c. Lien on personal property such as furnishings or a car note
d. None of the above
b. Second or any subsequent trust deed
according to USPAP price ____ to the value that might be ascribed to that property by others
may or may not have any relation
why do lenders unsually use the services of an appraiser
to ensure that the property value is high enough to cover the loan amount
when there is a sudden increase in the demand for housing in a community, the price of existing housing will
rise rapidly, then fall slightly as supply catches up with demand
Which group is exempt from providing a transfer disclosure statement?
 
a. The transfer of property from one co-owner to another
b. the sale of property in a foreclosure sale
c. Selling or buying from the government
d. All of the above
b. the sale of property in a foreclosure sale
a real estate broker differs from a real estate salesperson under the law in that the
broker is liable for the acts of the salesperson
Louise wishes to obtain a home equity loan to remodel her living room and have money to go back to school. Her home is worth $320,000, and she currently has a first loan balance of $150,000. She wished to pull out $100,000 to cover both her remodeling pro
a. Yes. Louise has plenty of equity in her home for this loan
one of the limitations of the unit in place method is that
the market does not always value a property based on the cost of its component parts
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