Modern Real Estate Practice in Texas 18E Principles II Exam Flashcards
A single-family residence does NOT reach its full value because it is located in an industrial area. This illustrates the appraisal principle of:
Conformity
The market value of a property is a) the average price a property should bring b)the highest price a property should bring c)the lowest price a property should bring d) the most probable price a property should bring
the most probable price a property should bring
What should be done to the sales price of the comparable property if it is missing features that are present in the subject property?
it should be increased
Which creates a lien against the property as security for the debt? a) Promissory note b) Land trust c) deed of trust d) recorded will
deed of trust
Charging interest in excess of the maximum rate of interest set by state law is called
usury
Which originate loans with either their own money or funds borrowed from other institutions? a) none of these b) mortgage brokers c) mortgage bankers d) both of these
mortgage bankers
Donna gives Tom a general warranty deed that does NOT mention an existing mortgage lien on the property. This is a violation of the covenant:
against encumbrances
What kind of notice refers to information that is available in the public record?
constructive
A brief history of all the documents affecting title is
an abstract of title
What kind of title policy is guaranteed for the amount paid for the property?
owner’s
a bedroom without a closet is an example of what type of depreciation?
functional obsolescence
the final step in the cost approach for estimating value of property is to a) estimate the amount of accrued depreciation b) estimate the value of the land as if it were vacant c) add estimated land value to the depreciated cost of the building and other site improvements d) deduct accrued depreciation from construction costs
add estimated land value to the depreciated cost of the building and other site improvements
In an amortized loan, the initial payments are applied mainly to:
the interest
a loan that is not insured or guaranteed by a government agency against default of the borrower is called:
conventional loan
the purpose of the real estate settlement procedures act (RESPA) is to
ensure that buyers and sellers know all settlement costs