Principlle II chapter 2 Flashcards
What does one acre equal?
A. 0.0015625 square miles
B. 4,840 square yards
C. 43,560 square feet
D. All of the above
D. All of the above
Which statement regarding points is NOT true?
A. In real estate mortgages, a point refers to the origination fee charged by the lender
B. Each point is equal to 1% of the amount of the loan.
C. The primary purpose of buying discount points from the lender is to reduce your closing costs.
D. If a bank charges an up-front fee for the loan, it often expressed in terms of points.
C. The primary purpose of buying discount points from the lender is to reduce your closing costs.
Which of the following payments are not paid in arrears?
A. Rent
B. Mortgage principal
C. Interest in a proration
D. Mortgage interest
A. Rent
A statutory year has 365 days.
A. True
B. False
B. False
Which statement is NOT true regarding prorations at closing for a real estate contract?
A. All property tax prorations will be a credit for the seller.
B. Prorations can be a credit or debit for either party.
C. Sellers must pay their fair share of property taxes.
D. Buyers must pay their fair share of pre-paid interest.
A. All property tax prorations will be a credit for the seller.
A banker’s or statutory year has ________ number of days.
A. 365
B. 30
C. 360
D. 370
C. 360
A farmer sold one section of land for $1,000 per acre. How much did the farmer receive from the sale of the land?
A. $1,000
B. $60.000
C. $649,000
D. $640,000
D. $640,000
Jim owns 1,920 acres of land. How many sections does he own?
A. 3
B. 2,200
C. 640
D. 10
A. 3
A lot is 150’ × 200’. How many square feet are in the lot?
A. 30,000
B. 70,000
C. 15,000
D. 45,000
A. 30,000
Length × Width × Height =?
A. A section
B. Square foot
C. Cubic feet
D. Mile
C. Cubic feet
What can be prorated? A. Taxes B. Interest C. Rents D. All of the above
D. All of the above
To be an appraiser trainee, the applicant must be at least 18 years old.
A. True
B. False
A. True
An Appraiser Trainee is a person who is authorized (approved, but not licensed) by TALCB to gain legal real estate appraisal experience under the supervision of a Certified General or Certified Residential Real Estate Appraiser.
A. True
B. False
A. True
A Licensed Residential Appraiser is a person who is licensed by TREC and has met the educational, experience, and examination requirements for licensing.
A. True
B. False
A. True
An appraisal is an assessment or estimation of the worth, or value of real estate.
A. True
B. False
A. True
The Principle of Substitution states that the maximum value of a property is set by the cost of purchasing a substitute property of the same value.
A. True
B. False
A. True
Real Property: Includes the entire “bundle of rights.”
A. True
B. False
A. True
Metes and Bounds is part of the Rectangular Survey System.
A. True
B. False
B. False