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Real Estate Exam 2022 > Missed quiz ?'s > Flashcards

Missed quiz ?'s Flashcards

1
Q

If an investor acquired a property by putting down a small amount of cash an financed the balance he would be:

A

Leveraging his interest

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2
Q

A release clause is part of:

A

A blanket mortgage

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3
Q

Which of the following is a function of FNMA?

A

providing a source of money for approved lenders

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4
Q

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

A reverse annuity

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5
Q

A good faith estimate as required by RESPA must include the:

A

Loan origination fee

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6
Q

A mortgage that covers more than one piece of property so that single parcels may be released from the lien is called a:

A

blanket mortgage

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7
Q

Who is the mortgagee under a purchase money mortgage?

A

Seller

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8
Q

What is the purpose of charging loan discount points on a loan?

A

To raise the yield on a below market rate loan to the market rate

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9
Q

Which of the following statements best describes FNMA?

A

It is a government sponsored, privately owned corporation that provides money to private mortgage money institutions

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10
Q

When a borrower purchases FHA mortgage insurance the policy insures:

A

Mortgagee (lender)

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11
Q

When a buyer gives the seller a note and a mortgage for part or all of the price of a property, it is:

A

A purchase money mortgage

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12
Q

Which of the following conditions would encourage the sale of property?

A

Low interest rates and LOW loan discount points

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13
Q

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:

A

Escalator clause

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14
Q

To qualify a prospective buyer, the licensee should do all of the following EXCEPT:

A

show buyers a wide range of properties

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15
Q

A loan that pays off a construction loan with permanent financing on a large construction project is known as:

A

A takeout loan

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16
Q

What is the effect of the release clause in a blanket mortgage?

A

It eliminates the lenders security on sold lots

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17
Q

The interest on the old loan is deductible but not the interest on the new loan.

A

the interest on a loan to purchase or refinance a primary residence is fully deductible

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18
Q

Which is not a specific lien?

A

Income tax judgments

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19
Q

When taxes on a property are based on the market value of the property, the tax is called:

A

Ad valorem

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20
Q

Special assessment is NOT

A

tax deductible like property taxes

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21
Q

Which is deducible on an investors federal tax return?

A

the annual hazard insurance premium on an office building owned by the investor

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22
Q

On a principal residence the homeowner can deduct which of the following for tax purposes?

A

Interest

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23
Q

Under truth in lending, if a broker advertises a property with an assumable loan he/she must:

A

state the finance charge as an annual percentage rate

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24
Q

Which of the following are regulated by Reg Z? (TIL)

A

consumer installment loans

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25
Q

All of the following are covered by the truth in lending act EXCEPT:

A

A loan to buy a pet store

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26
Q

When appraising a RENTAL property, the appraiser should emphasize which of the following:

A

The income approach

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27
Q

If the market capitalization rate in a community is going up property values would generally be:

A

Decreasing

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28
Q

If an appraiser was appraising a school, church or library which method would he use most heavily?

A

Cost

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29
Q

All of the following are assumptions of an appraiser when appraising a property EXCEPT:

A

The appraisal value is the least it would sell for

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30
Q

A property maintains its maximum value in a neighborhood of similar houses and residents according to the principal of:

A

Conformity

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31
Q

Economic Rent is:

A

the rent that real estate can command in an open and competitive market

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32
Q

Which of the following best describes a plat?

A

It is a document used to record the subdivision of land

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33
Q

Which of the following issues federal licenses to securities dealers?

A

FINRA

34
Q

A special warranty deed:

A

warrants that no new title defects were created during the grantors ownership period

35
Q

A mortgage:

A

is used to defer part or full payment

36
Q

Which document obligates the borrower to repay the loan?

A

mortgage note

37
Q

When a mortgage note is paid in full, the title will be cleared by:

A

a certificate of discharge

38
Q

Prior to a foreclosure sale the mortgagor has:

A

an equitable right of redemption

39
Q

After a foreclosure sale, the prior owner has:

A

statutory right of redemption

40
Q

A mortgage creates a lien

A

in favor of the mortgagee but does not transfer title to the mortgagee

41
Q

What interest does the seller have under a contract for deed?

A

title

42
Q

the priority between liens may be changed by:

A

a subordination agreement

43
Q

the best protection from a mechanics lien is provided by a contractors :

A

bond

44
Q

two mortgages, three construction liens, and a tax lien encumber the title of a parcel. The priority among the liens is determined by:

A

type of lien

45
Q

Can a trust deed be used to clear up a cloud on the title?

A

No, because a trust deed is a type of mortgage and the trust deed further clouds the title

46
Q

If two unmarried persons own a parcel of property, that are presumed to be:

A

tenants in common

47
Q

If the last survivor will always take title, the parties are:

A

joint tenants

48
Q

Which of the following indicates that he owner of the interest has the right to convey ownership of the property?

A

Fee simple

49
Q

A condo involves:

A

a combo of a fee simple ownership of each unit and a tenancy in common ownership of the common elements

50
Q

A buyer buys mortgaged property and becomes personally liable. This is an example of:

A

an assumption

51
Q

In which situation is a mortgagor released when mortgaged property is sold?

A

assumption with a novation

52
Q

an assumption with a novation is also called:

A

full assumption

53
Q

which mortgage clause prevents A LATER PURCHASER from assuming the loan?

A

due on sale clause

54
Q

which mortgage clause requires the balance to be paid in full when the property is conveyed?

A

alienation (due on sale)

55
Q

a short form written lease will likely specify that it is subject to:

A

rules and regulations

56
Q

an assignment is the transfer of:

A

all of the rest of the lease

57
Q

who pays operating expenses under a triple net lease?

A

the lessee

58
Q

A tenant pays only part of the operating expenses under a:

A

net lease

59
Q

A lease where the landlord pays all taxes and tenant only pays rent is:

A

gross lease

60
Q

to make a property appealing to start up business tenants, the property manager should offer what kind of lease?

A

graduated

61
Q

A percentage lease is one where the tenant pays a percentage of:

A

tenants gross income

62
Q

A holdover tenant has:

A

estate as sufferance

63
Q

Which one of these refers to a nonfreehold estate?

A

lessee

64
Q

Annulling a contract to restore the parties to their original positions is known as:

A

Rescission

65
Q

Asking the court to compel the other party to sell or buys under the terms of a contract of sale is:

A

specific performance

66
Q

An agreement predetermining the amount of money to be paid if one party breaches a contract is:

A

liquidated damages

67
Q

Options are:

A

Unilateral

68
Q

right of first refusal in a tenants lease:

A

is no longer binding if the landlord decides not to place the property on the market during the lease terms

69
Q

in an option situation, the buyer is the:

A

optionee

70
Q

A contract gives the buyer the right to buy the property if he can obtain financing within 29 days. This contract is:

A

an option

71
Q

Person that pays for the option;

A

optionee

72
Q

In an option situation, who make be sued for default?

A

the optionor

73
Q

If the option is not exersized, who takes the option money:

A

optionor

74
Q

An offer which states that it will be held open fore 3 days:

A

may be withdrawn any time prior to acceptance

75
Q

Theft of money is covered by:

A

surety bonds

76
Q

Which will NOT terminate a listing?

A

the buyer defaults

77
Q

A guardian is an example of:

A

universal agent

78
Q

Under an exclusive agency listing, the listing broker is entitled to b paid if the:

A

property is sold by another firm

79
Q

A broker wants to charge a flat fee commission. this is:

A

legal

80
Q

Under buyer agency, the seller is the:

A

brokers customer

81
Q

The fair housing act does not apply to:

A

commercial office buildings

Real Estate Exam 2022 (7 decks)

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