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REAL ESTATE > Practice Exam #2 > Flashcards

Practice Exam #2 Flashcards

1
Q

If a mortgage has an adjustable rate but limitations on how much the mortgage rate may adjust over a 6 month period, an annual period and over the life of the loan, this would be called

A

a cap

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2
Q

lucius is the borrower on an ARM. If he is on one that allows for the changing of the ARM to a fixed rate mortgage within a specified time frame.. lucius has a

A

convertible ARM

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3
Q

a quiet title action is intended to

A

establish the true ownership of a property

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4
Q

the power of the gov to impose restrictions on private rights incl. building codes, zoning codes, subdivision regs and property setbacks is called

A

police power

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5
Q

Lenders typically follow the bond market because

A

the same factors that affect the BM also affect mortgage rates

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6
Q

In some cases of eminent domain where the remaining land is reduced in value, the owner may be able to recieve

A

severance damages

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7
Q

an interest in real property can be obtained by

A

prescription

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8
Q

a net listing is

A

a listing agreement that provides a broker with all proceeds received from a sale over a specified amount

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9
Q

if Leon has a mortgage and decides to transfer title to derrick but fails to inform the lender of the title transfer, the lender can demand payment by means of a class in the mortgage contract called a/an

A

acceleration clause

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10
Q

if a lender is issuing an FHA or VA loan, where does the funding originate

A

Ginnie Mae

Government National Mortgage Association. Provides funds for FHA and VA loans.

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11
Q

a real estate investment trust/syndicate, requires at least this many investors according to federal law

A

100

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12
Q

if a property owner comes home to find home vandalized. what type of insurance would damage be covered under

A

hazard

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13
Q

How does FHA insure loans?

A

Mutual Mortgage Insurance

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14
Q

under which law is it not permissible for a broker to only sell a property under the condition that the broker obtains the listing for future sales?

A

Sherman Act

Sherman Antitrust act: prohibited for broker to sell property under arrangement that broker is to obtain listing for future sales

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15
Q

reverse annuity mortgage is also called a

A

home equity conversion mortgage

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16
Q

a violation of the sherman antitrust act could be

A

competing brokers discussing fees and business practices

any discussion between competitors could be seen as an attempt to conspire to set the cost of RE brokerage services, which is in violation of said act.

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17
Q

which term is best related to lender-borrower

A

mortgagee-mortgagor

lender borrower

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18
Q

if either neg covenant or affirmative covenant is breached, the remedies are either

A

monetary or injunctive releif

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19
Q

conventional loans differ from FHA loans in that

A

conventional loans always allow a deficiency judgement

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20
Q

the bulk sales law is included in

A

the uniform commercial code

bulk sales laws are intended to prevent business owners from defrauding or evading creditors by transferring all or most of the assets of the business to another individual or entity. the law also intended to avert the possibility of businesses selling their assets below fair market value in which business manages to maintain degree of control

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21
Q

a public official who establishes value of a property for taxation purposes is called a/an

A

assessor

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22
Q

a title search would show

A

clouds

such as liens or other items

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23
Q

if a deed is signed by the grantor and not by grantee, the deed is

A

valid

only needs to be signed by grantor

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24
Q

When someone is referred to as a “realtor” they are referring to a person who is

A

either a RE agent or broker that is a member of the local RE board affiliated w the national association of realtors

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25
Q

according to the EPA, areas which may be complicated by the presence or potential presence of hazardous substance, pollutant or contaminant is called

A

brownfields

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26
Q

a legal doc pledging a property to the lender as security for payment of a debt is called

A

A mortgage

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27
Q

if broker obtains exclusive listing, the broker can be reimbursed for expenses when

A

it’s authorized by the seller

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28
Q

according to the DNC rules, all sellers/telemarketers making prerecorded calls/texts must have the consumer’s

A

Written consent

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29
Q

assessment bonds are used by the county to pay for what in a subdivision?

A

street lights, curbs, sewers and other needs

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30
Q

demand for property requires what 2 factors of the populace to be affective?

A

desire and means

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31
Q

the party that accepts the endorsed note from the o.g.payee w/o knowledge of any defects is known as the

A

holder in due course

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32
Q

the worth of a greater valued property is reduced by the proximity of many lesser valued properties of the same type is known as

A

regression

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33
Q

if an appraiser was using the consumer price index method to determine reproduction c costs, this would be

A

not reliable

reliable methods would be 
square foot method(most common)
cubic foot method
unit in place method
quantity survey method
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34
Q

if a high profile person is an owner of several properties and wants to attempt avoiding a possible foreclosure from becoming a matter becoming public record by being recorded, the would want to give the lender

A

deed in lieu of foreclosure

beneficial in some cases

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35
Q

in regards to the borrower in a mortgage agreement, they would NOT be called the:

any of these
lessor
mortgagee
borrower

A

any

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36
Q

if one party cannot perform their part of the agreed terms of a contract, the victim party can claim the other party

A

defaulted

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37
Q

fannie mae is owned by

A

shareholders

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38
Q

what does a planned development consist of?

A

individual lots and lots owned in common

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39
Q

when a lender has guaranteed a borrow a specific interest rate for a specific time, they’ve offered them a

A

lock in period

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40
Q

a fence, a separate detached garage and a septic tank ar all examples of

A

appurtenances

:the things that are attached to the land so that they become part of it as it’s passed rot new owners.

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41
Q

if 2 people who are friends take ownership of a property as joint tenants, and later one encumbers their interestt for 25k and subsequently dies, what happens on the encumbered interest

A

the surviving joint tenant takes title to the property without the obligation to pay on unforclosed liens

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42
Q

If a loan has a loan to value ratio of more than 80% what is required?`

A

mortgage insurance

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43
Q

What’s the best way to determine if a neighboring property is encroaching on another?

A

obtain a survey

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44
Q

When a real estate agent is viewing the report on the title of a property from the public records, or an abstract of the title, the agent is viewing

A

an examination of the title

45
Q

government loans are guaranteed by

A

VA

46
Q

One of the indexes used to determine interest rate changes for certain adjustable-rate-mortgages is called

A

COFI

cost of funds index

47
Q

most trust deeds contain several clauses of

A

acceleration

48
Q

which of these would have the most percentage of their funds invested in real estate mortgages?

A

savings and loan associations

49
Q

a good-faith estimate of closing costs must be provided by any mortgage lender for a loan under

A

RESPA

50
Q

an estate can best be described as

A

The sum total of all the real and personal property owned by an individual at the time of death

51
Q

a non conforming loan is a loan amount over

A

$417k

52
Q

Permanently leaves home refers to

A

365 days continuous absence

53
Q

recent sales of properties w similar attributes are..

A

comperables

54
Q

the license issued to practice real estate is considered

A

a privelage

55
Q

when a loan is fully paid off it’s called

A

fully amortized

56
Q

what protects a lender ensuring that the mortgage is an enforceable lien?

A

title insurance

57
Q

A federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age sex, marital status, or receipt of income from public assistance programs is called the

A

ECOA

equal credit opportunity act

58
Q

When dividing the annual net income by the purchase price of the property, you would be determining the

A

capitalization rate

59
Q

A unique mortgage that allows for the lender to make payments to the homeowner, allowing owners to convert equity into cash, that does not need to be repaid until the borrower vacates the property is best known as

A

reverse annuity mortgage

also known as
Home Equity Conversion Mortgage (HECM)

60
Q

If a church, school or hospital wishes to relocate to an area zoned exclusively for res use, they could do so by

A

a conditional use

conditional use is reserved for exceptions in the zoning laws that allow for special uses such as for churches.

61
Q

in oregon, info that is equally available to all RE practitioners and/or parties in a transaction is referred to as

A

common source

62
Q

what is sales tax considered

A

a tax on any tangible personal property

63
Q

in government surveys of land, why is metes-and-bounds used?

A

to determine outlines of a certain area

64
Q

when there is a conflict in limitations on the development of property, which rule applies?

A

the most restrictive

65
Q

when a homeowner of personal res, is preparing taxes at the end of the year and they decide to deduct tax paid on personal res, this would be

A

tax deductible

prop taxes paid on a personal res are tax deductible

66
Q

if a contract includes promises by 2 parties to do something, the contract is

A

bilateral

67
Q

when a RE agent is determining the market value of a property by looking at recnt sales of sim properties in nearby areas, the agent is using

A

comps

68
Q

The collection of mortgage payments from b borrowers and related responsibilities of a loan servicer is known as

A

servicing

69
Q

a deposit that is given to a broker from an interested buyer that has has ALL deposit receipt conditions fulfilled should be given to whom if the buyer decides to back out?

A

the seller

if all dep receipt conditions have been fulfilled, the dep belongs to the seller

70
Q

depreciated value is considered with which approach?

A

cost

71
Q

in order to determine monthly gross rent multiplier on any given property, you would need to

A

divide the fair market value by monthly rental amount

72
Q

if ad is offering secured loan, the ad must include

A

how and to what extent the loan is securd

73
Q

a mortgage that cab be taken over by the buyer when a home is sold, assuming the buyer qualifies, is called an

A

assumable mortgage

74
Q

a “no cash-out refinance” is also sometimes referred to as a

A

rate and term refinance

75
Q

when a lender guarantees a specific interest rate for a specific time and a certain cost to the buyer , this is referred to as a:

A

lock-in rate

76
Q

someone who acts as an agent and brings 2 or more parties together for any type of transaction, while earning a fee in the end for their efforts can generally be called a/an

A

broker

77
Q

What kind of loans do OG fees apply to

A

Gov. loans oNly

78
Q

the term “executrix” refers o

A

a female executor

they are typically named in a will

79
Q

what is given by a commercial bank or other financial institution for a certain time nd certain amount

A

line of credit

80
Q

which term is best related to lender-borrower

A

mortgagee - mortgagor

81
Q

airways above a property are

A

public domain

82
Q

a unique mortgage that allows for the lender to make payments to the borrower utilizing the built up equity in the property that does not have to be paid back until the borrower no longer occupies the property is called a:

A

HECM

home equity conversion mortgage

83
Q

which deed transfers w/o warrantee whatever interest or title a grantor may have at the time the conveyance is made?

A

quitclaim deed

84
Q

it is truster’s advantage to incljude

A

subordination clause

bc it allows truster to obtain a later trust deed which will move into prior position, as regards to payment, in case of default.

85
Q

provision in an agreement requires the owner to give an other party first opp to purchase or lease the prop before he/she offers it for sale/lease to others is known as:

A

first right of refusal

86
Q

a CMA will typically include data on

A

similar properties currently on market, that have recently sold and have been on market but listings have expired

87
Q

a rule of equity that holds one who causes another to rely on their words or actions shall be prohibited from later taking a contrary position detrimental to the person who is so relied is called:

A

estoppel

88
Q

When referring to the “back” or “bottom” ratio, it includes

A

housing costs as well as all other mostly debt

89
Q

a mortgage that stars out w/ one rate for the first 5-7 months, then changes to diff rate for rest of term is called

A

a 2 step mortgage

90
Q

the statement “present worth to typical users or investors of all rights to future benefits, arising out of property ownership” is best describing

A

the value of a property

91
Q

an agency relationship created by express agreement is created by

A

verbal agreement

not all agency relationships are required to be in writing

92
Q

Method of attachment, adaptability of the attached item, relationship of the parties, intent of the person teaching the item and agreement between parties are:

A

the standard 5 tests used by courts for a fixture

93
Q

if a person has limited or complete authority on behalf of another person, granted from a legal doc, this is called

A

power of attorney

94
Q

A legal description describes a property and is recognized by law. in addition, it’s sufficient to lace and Identify a property without:

A

oral testimony

95
Q

The term that is used in reference to FHA and VA loans and that are paid in addition to the 1% loan OG fee is called:

A

discount points

any money paid in addition to typical OG fee.

96
Q

In certain cases where damage to the value of a property from strict adherence of zoning ordinances would far outweigh any benefit to be derived from enforcement, a person would likely apply for a

A

variance

given out for minor departures from zoning requirements and typically relate to such things as set backs, building height etc..

97
Q

when a home buyer leases a property w an option to buy, this would be an alternative financing option called a:

A

lease option

98
Q

gov loans are guaranteed by

A

RHS…

this and va for gov loans. FHA is conventional but insures gov loans, not guarantees.

99
Q

if casualty damage happens and landlord receives uninterrupted income while premises is unusable… this is by means of

A

rent-loss insurance

100
Q

an agent given power of attorney to act on behalf of a principal for unlimited range of legal matters is called

A

a universal agent

101
Q

a fiduciary who holds or controls property for the benefit of another is called

A

a trustee

102
Q

if an agent is acting as agent to all principle parties to a transaction, they are entitled to earn commission from each party. Prior to this, what must be procured?

A

an exchange agreement

103
Q

OG fees apply to gov loans only. T or F?

A

F

apply to both gov and conv.

104
Q

when all papers are drawn up correctly and everything is ready for the final steps to close escrow, which typically includes recording the deed… the escrow is called

A

complete

a complete escrow is ready to close the escrow

105
Q

If a listing agent discloses the agency relationship to the seller before the seller signs the listing agreement, this would be:

A

legal

It’s actually required in most states to disclose agency relationship PRIOR to signing

106
Q

an organization that collects principal and interest payments from borrowers and manages borrowers escrow acct. is called a

A

servicer

107
Q

a 2nd mortgage can be best described as

A

a mortgage w a lean position subordinate to the first mortgage

108
Q

If a borrower is given a loan where the personal res. is used as security, other than the first trust deed used to purchase the property , and rescinds w/in 3 days.. this loan would be covered under which law?

A

Federal Truth in Lending

borrower has a right o rescind loan w/in 3 days

109
Q

a lease consists in part an _____ contract between the _____ and the ______.

A

executory, landlord, tenant.

REAL ESTATE (5 decks)

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