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practice exams Flashcards

1
Q 
The deed promise that obligates the grantor to perform any acts necessary to protect the title conveyed is called: 
Warranty of title
Seizin
Quiet enjoyment
Further assistance
A

Further assistance

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2
Q 
Which of the following would not be a part of a property management agreement?
 The duties of the manager
 Vacancy rate
 Collecting the rent
 Paying bills
A

vacancy rate

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3
Q 
When a lender generates a conventional mortgage, which of the following sources can the mortgage be generated from?
 Ginnie Mae
 Federal Home Loan mortgage Corporation
 Federal National Mortgage Association
 From private sources
A

From private sources

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4
Q 
When GNMA is purchasing notes, which of the following will they not participate in?
 Experimental housing
 housing for the elderly
 new subdivisions
 urban renewal projects
A

new subdivisions

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5
Q

Which of the following could a lender do to reduce the mortgagee’s risk of default?
Requiring a prepayment penalty in the loan
Reducing the note from 30 years to 15 years
Charge the borrower a higher interest rate
Reduce the loan-to-value ratio

A

Reduce the loan-to-value ratio

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6
Q

When the mortgagee requires the mortgage or to purchase a mortgagee’s title insurance policy, what will this help the lender have?
A marketable title to foreclose on
A second lien against the property
Will help the lender have an enforceable lien on the property
Accelerate foreclosure on the property if the borrower defaults

A

Will help the lender have an enforceable lien on the property

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7
Q 
When the borrower pays interest from the day of closing to the end of the current month, the interest paid is called
 Points
 loan origination interest
 compound interest
 interim interest
A

interim interest

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8
Q

which of the following would best describe the term amortization
paying off a straight note
prepaid interest
liquidation of the debt
making monthly payments for a set period of time

A

liquidation of the debt

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9
Q

what is the purpose of FNMA?
To lend money to borrowers buying homes over $500,000
increase the amount of money available for credit financing of housing
provide the lenders with lower interest money
work in depressed areas of the country

A

increase the amount of money available for credit financing of housing

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10
Q

When an endorser of a note signs the note with no guarantee of payment, what situation has been created?
FNMA won’t buy the note
the lender will charge PMI
this would create a home equity loan
this would be a note signed with no recourse

A

this would be a note signed with no recourse

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11
Q

Which of the following clause must be part of a promissory note?
Alienation clause
subordination clause
acceleration clause and a prepayment clause
alteration clause

A

acceleration clause and a prepayment clause

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12
Q

the best definition of loan-to-value ratio is
the difference between the appraisal and the sale price
the amount the borrower can get for a loan
the percentage of the contract sale amount that the lender will loan
the calculation used to determine the amount of PMI

A

the percentage of the contract sale amount that the lender will loan

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13
Q 
Which of the following would not fall under the Consumer Financial Protection Bureau?
 Truth in Lending
 owner financing
RESPA
Kickbacks
A

owner financing

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14
Q 
A loan that specializes in funding first time home buyers in rural areas is called
 USDA loan
 conventional loan
 bridge loan
 FHA loan
A

USDA loan

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15
Q 
Many loans are set up that as payments are made, the portion toward the interest goes down and the portion towards the principal goes up. These loans are called
 straight notes
 negative amortization notes
 constant mortgage payment notes
 construction notes
A

constant mortgage payment notes

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16
Q 
A contract that allows a vendor to retain legal title of a property, but the vendee pays the taxes and insurance is called a
 subject to contract
 assumed contract
 purchase money mortgage
 contract for deed
A

contract for deed

17
Q 
When a listing agreement is signed, the term for the listing may be called
 Protection period 
 Contract time
 length of safety
 Guaranteed period
A

length of safety

18
Q 
Exclusive listing contract are all of the following except
 Expressed
 terminated upon death of the principal
 Bilateral
 Unilateral
A

unilateral

19
Q 
the form of agency where there is no expressed representation is called
 designated agency
 dual agency
 transactional agency
 limited agency
A

transactional agency

20
Q 
When a seller promises to sell and a buyer promises to buy, this has satisfied what element of a contract?
 Competent parties
 legal object
 Consideration
 Contingency
A

consideration

21
Q 
Which of the following agency relationships would give the broker the broadest powers 
 Universal agency
 special agency
 General agency
 Limited agency
A

universal agency (POA)

22
Q 
When a property is listed, the listing price of the property is known as the
 appraised value
 market price
 assessed value 
 market value
A

market value

23
Q

If there is a change in economic conditions and an income-producing property has an 8% cap, what would be the effect on the value of the property if the cap is now 6%?
The return would be reduced
there is no effect on the property value
the property would increase in value
the property would go down

A

the property would increase in value

24
Q

For the concept of demand to be effective, it must be implemented by
Good appraisals
seller must be able to provide marketable title
property must be scarce
purchasing power

A

purchasing power

25
Q

when an appraiser does an appraisal for a property that will involve a VA loan, the appraiser must issue
in appraisal report
use the cost approach
issue a certificate of reasonable value (CRV)
an inspection report

A

issue a certificate of reasonable value (CRV)

26
Q 
which of the following would be considered as an economic characteristic of value?
 Utility
 Price
 Economic life 
 Effective age
A

utility (DUST)

27
Q 
What an appraiser is compiling all of the information in order to come up with an estimate of value, this final process is called
 Market data approach
 cost approach
 neighborhood analysis
 Reconciliation
A

reconciliation

28
Q

if an owner of a new home and a new subdivision wants an estimate of value from an appraiser, what approach with the appraiser use
Market data approach
cost approach
income approach
both the market data approach and the cost approach

A

both the market data approach and the cost approach

real estate (3 decks)

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