test2 Flashcards
The loan to value ratio is ____
the percentage of value or sales price that a lender is willing to finance, whichever is lower
The principle of ____ is influenced by the cost of acquiring a substitute or comparable item.
Substitution
The presence of higher priced properties causing an increase in a subject property is called ____.
Principle of progression
What does demand, utility, scarcity, and transferability all have in common?
They are the characteristics of value of real estate
An appraiser must be aware of ____.
Market cycles, economic forces, and political actions
The appraisal method that is most commonly used as the best indicator of value for existing properties is ____.
The sales comparison approach
____ is the loss of desirability of the style, layout, or function of an element of a property over time.
Functional obsolescence
External obsolescence is what?
depreciation based on factors outside of the property
Which federal law prohibits discrimination in any aspect of a credit transaction?
equal credit opportunity act
The secondary market is funded by ____.
Investors
The organization that has been most influential in addressing regional imbalances of mortgage credit availability and in the standardization in mortgage loans is ____.
Fannie Mae
Which of the following are benefits of the pre approval process?
all of the above
What is true about the LE?
the LE form must be given to the borrower at loan application or within three business days of loan application)
The type of loan that covers more than one piece of property and is likely to contain a release cause is ____.
A blanket mortgage
Which type of mortgage plan includes a monthly payment of principle and interest, plus 1/12 of the annual taxes and 1/12 of the annual insurance?
budget mortgage
Where would you expect to find PMI?
on a high LTV conventional loan
What is the most significant difference between MIP and PMI?
MIP insures the whole amount whereas PMI only insures the lenders risk)
Which of the following governmental rights is the right to regulate and control the way land is used?
Police power
Eminent domain is ____.
The right of the government to take private land for public use
____ occurs when a landowner sues the government in order to force the government to buy his or her land.
Inverse condemnation
Tax rates can be per hundred or per thousand, called ____.
Mills
Which of the following agencies is not granted authority for cleanup up of hazardous substances under CERCLA?
Property owner associations
The CCIM is widely considered the “gold standard” in designations relating to which real estate sector?
Commercial
A ____ is one in which a property with the consent of a lender is sold by an owner or borrower at a price that is not sufficient to pay off the existing mortgage.
short sale)
A sponsoring broker must
all of the above
Appreciation is the ____ increase in the value of a parcel due to market forces.
Passive
Some of the tax advantages for investing in real estate include ____.
Tax-sheltered income, favorable capital gains tax treatment, deferred taxation on exchanges (all of the above)
A ____ may be organized as a limited partnership, a general partnership, or a corporation.
real estate investment syndicate
The two types of real estate investment trusts are ____ and ____.
Equity and mortgage
The two largest issuers of real estate mortgage conduits are ____ and ____.
Fannie Mae and Freddie Mac
Which of the following is not a requirement of a valid lease?
recording
An agreement that allows a tenant the right to match or better any offer that the landlord may receive on a property before it is sold to someone else is ____.
The right to first refusal
Which of the following is one of the four leasehold estates?
Estate for years
The TREC buyer and seller temporary lease agreements are for periods of ____.
90 days or less
Which of the following is true of the TREC buyers temporary residential lease?
all of these are true
The role of a property manager is established in a written agreement called a ____.
Management agreement
Which of the following would be considered an operating expense when a property manager is developing and operating budget for the owner?
Repainting the unit before a new tenant moves in
A buyer with a signed sales contract, who has not yet gone to closing has an ____.
Equitable title
Because land was originally owned by the government, the title of the land in the US can be traced back to the original owner which is referred to as ____.
sovereignty of the soil
The best way to ensure that a buyer is receiving a good title is to request a ____.
General warranty deed
Alienation is ____.
a change in ownership of real property
When an individual dies intestate ____.
The property will be disposed under the provisions of Texas Statute of Descent and Distribution
In a deed, ____ is something of value given in exchange for conveyance by the grantor.
consideration
For a valid and properly prepared deed to convey to transfer to title, ____.
it must be delivered and accepted
A promise in a deed stating that the grantee will have uninterrupted use of the property is called ____.
covenant of quiet enjoyment
A property owner sells a portion of his land but keeps the right to enter and exit his property by driving across the land he sold. This is an example of ____.
An easement created by reservation
Recording a deed gives constructive notice of ownership. What other action below gives constructive notice of ownership?
moving in or taking possession of the property
SCENARIO
(quitclaim deed) pg 184 50
No interest on a title/property
Typically discovered during the title commitment process, ending lawsuits affecting a particular piece of property are commonly referred to as ____.
lis pendent
RESPA is implemented by ____.
CFPB
What law requires mortgage loan originators to provide detailed disclosures regarding the transfer, sale, or assignment of mortgage servicing rights?
RESPA
Real Estate Settlement Procedures Act
How many square feet are in an acre?
43,560
How many feet are in a mile?
5,280
$3600 quarter interest payment on a loan at a 6% rate. What is the loan payment?
($240,000) 3,600x4=14,400. 14,400/.06=240,000
Property is listed for $399,500 but sells for $395,600. The selling broker is getting 3% commission whereas the listing broker will get 2%. How much money is the selling broker getting in commission?
$11,868
A property measures 1.2 miles by 500ft. How many acres is the property?
(73 acres) 1.2x 5,280=6,336. 6,336x500=3,168,000. 3,168,000/43,560=72.73.
There is 100 acres of land to build a house. How much sq ft does the owner have?
4,356,000
Lender is charging two discount points and one origination point. What amount will an investor pay in points on $160,000 loan?
$4,800
Negotiates 5.5% on a $325,000 loan. The lender will get 60% commission on the loan. How much commission will be made?
($10,725) 325,000x5.5=17,825. 17,825x.6=10,725.
A property valued at $95,000 has a tax rate of $3.45/mill. How much are the annual taxes?
$3,277.50
The closing of a real estate transaction in which all appropriate documents are signed, and the proceeds of the loan are disbursed by the lender is called ____.
Consummation
The person who receives occupancy from the owner
Lessee(tenant)
The person who gives occupancy to the tenant
Lessor(landlord or owner)
Does RESPA oversee condominium complex?
Yes
