Missed quiz ?'s Flashcards
If an investor acquired a property by putting down a small amount of cash an financed the balance he would be:
Leveraging his interest
A release clause is part of:
A blanket mortgage
Which of the following is a function of FNMA?
providing a source of money for approved lenders
If. a bank gives the owner of a property a flow of payments and takes a lien position in the property, the loan is called:
A reverse annuity
A good faith estimate as required by RESPA must include the:
Loan origination fee
A mortgage that covers more than one piece of property so that single parcels may be released from the lien is called a:
blanket mortgage
Who is the mortgagee under a purchase money mortgage?
Seller
What is the purpose of charging loan discount points on a loan?
To raise the yield on a below market rate loan to the market rate
Which of the following statements best describes FNMA?
It is a government sponsored, privately owned corporation that provides money to private mortgage money institutions
When a borrower purchases FHA mortgage insurance the policy insures:
Mortgagee (lender)
When a buyer gives the seller a note and a mortgage for part or all of the price of a property, it is:
A purchase money mortgage
Which of the following conditions would encourage the sale of property?
Low interest rates and LOW loan discount points
The clause in a mortgage that permits the lender to raise the interest rate upon certain stipulated conditions such as a raise in the prime interest rate is called a:
Escalator clause
To qualify a prospective buyer, the licensee should do all of the following EXCEPT:
show buyers a wide range of properties
A loan that pays off a construction loan with permanent financing on a large construction project is known as:
A takeout loan
What is the effect of the release clause in a blanket mortgage?
It eliminates the lenders security on sold lots
The interest on the old loan is deductible but not the interest on the new loan.
the interest on a loan to purchase or refinance a primary residence is fully deductible
Which is not a specific lien?
Income tax judgments
When taxes on a property are based on the market value of the property, the tax is called:
Ad valorem
Special assessment is NOT
tax deductible like property taxes
Which is deducible on an investors federal tax return?
the annual hazard insurance premium on an office building owned by the investor
On a principal residence the homeowner can deduct which of the following for tax purposes?
Interest
Under truth in lending, if a broker advertises a property with an assumable loan he/she must:
state the finance charge as an annual percentage rate
Which of the following are regulated by Reg Z? (TIL)
consumer installment loans
All of the following are covered by the truth in lending act EXCEPT:
A loan to buy a pet store
When appraising a RENTAL property, the appraiser should emphasize which of the following:
The income approach
If the market capitalization rate in a community is going up property values would generally be:
Decreasing
If an appraiser was appraising a school, church or library which method would he use most heavily?
Cost
All of the following are assumptions of an appraiser when appraising a property EXCEPT:
The appraisal value is the least it would sell for
A property maintains its maximum value in a neighborhood of similar houses and residents according to the principal of:
Conformity
Economic Rent is:
the rent that real estate can command in an open and competitive market
Which of the following best describes a plat?
It is a document used to record the subdivision of land
Which of the following issues federal licenses to securities dealers?
FINRA
A special warranty deed:
warrants that no new title defects were created during the grantors ownership period
A mortgage:
is used to defer part or full payment
Which document obligates the borrower to repay the loan?
mortgage note
When a mortgage note is paid in full, the title will be cleared by:
a certificate of discharge
Prior to a foreclosure sale the mortgagor has:
an equitable right of redemption
After a foreclosure sale, the prior owner has:
statutory right of redemption
A mortgage creates a lien
in favor of the mortgagee but does not transfer title to the mortgagee
What interest does the seller have under a contract for deed?
title
the priority between liens may be changed by:
a subordination agreement
the best protection from a mechanics lien is provided by a contractors :
bond
two mortgages, three construction liens, and a tax lien encumber the title of a parcel. The priority among the liens is determined by:
type of lien
Can a trust deed be used to clear up a cloud on the title?
No, because a trust deed is a type of mortgage and the trust deed further clouds the title
If two unmarried persons own a parcel of property, that are presumed to be:
tenants in common
If the last survivor will always take title, the parties are:
joint tenants
Which of the following indicates that he owner of the interest has the right to convey ownership of the property?
Fee simple
A condo involves:
a combo of a fee simple ownership of each unit and a tenancy in common ownership of the common elements
A buyer buys mortgaged property and becomes personally liable. This is an example of:
an assumption
In which situation is a mortgagor released when mortgaged property is sold?
assumption with a novation
an assumption with a novation is also called:
full assumption
which mortgage clause prevents A LATER PURCHASER from assuming the loan?
due on sale clause
which mortgage clause requires the balance to be paid in full when the property is conveyed?
alienation (due on sale)
a short form written lease will likely specify that it is subject to:
rules and regulations
an assignment is the transfer of:
all of the rest of the lease
who pays operating expenses under a triple net lease?
the lessee
A tenant pays only part of the operating expenses under a:
net lease
A lease where the landlord pays all taxes and tenant only pays rent is:
gross lease
to make a property appealing to start up business tenants, the property manager should offer what kind of lease?
graduated
A percentage lease is one where the tenant pays a percentage of:
tenants gross income
A holdover tenant has:
estate as sufferance
Which one of these refers to a nonfreehold estate?
lessee
Annulling a contract to restore the parties to their original positions is known as:
Rescission
Asking the court to compel the other party to sell or buys under the terms of a contract of sale is:
specific performance
An agreement predetermining the amount of money to be paid if one party breaches a contract is:
liquidated damages
Options are:
Unilateral
right of first refusal in a tenants lease:
is no longer binding if the landlord decides not to place the property on the market during the lease terms
in an option situation, the buyer is the:
optionee
A contract gives the buyer the right to buy the property if he can obtain financing within 29 days. This contract is:
an option
Person that pays for the option;
optionee
In an option situation, who make be sued for default?
the optionor
If the option is not exersized, who takes the option money:
optionor
An offer which states that it will be held open fore 3 days:
may be withdrawn any time prior to acceptance
Theft of money is covered by:
surety bonds
Which will NOT terminate a listing?
the buyer defaults
A guardian is an example of:
universal agent
Under an exclusive agency listing, the listing broker is entitled to b paid if the:
property is sold by another firm
A broker wants to charge a flat fee commission. this is:
legal
Under buyer agency, the seller is the:
brokers customer
The fair housing act does not apply to:
commercial office buildings
