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principal of real estate 2 > test2 > Flashcards

test2 Flashcards

1
Q

The loan to value ratio is ____

A

the percentage of value or sales price that a lender is willing to finance, whichever is lower

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2
Q

The principle of ____ is influenced by the cost of acquiring a substitute or comparable item.

A

Substitution

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3
Q

The presence of higher priced properties causing an increase in a subject property is called ____.

A

Principle of progression

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4
Q

What does demand, utility, scarcity, and transferability all have in common?

A

They are the characteristics of value of real estate

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5
Q

An appraiser must be aware of ____.

A

Market cycles, economic forces, and political actions

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6
Q

The appraisal method that is most commonly used as the best indicator of value for existing properties is ____.

A

The sales comparison approach

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7
Q

____ is the loss of desirability of the style, layout, or function of an element of a property over time.

A

Functional obsolescence

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8
Q

External obsolescence is what?

A

depreciation based on factors outside of the property

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9
Q

Which federal law prohibits discrimination in any aspect of a credit transaction?

A

equal credit opportunity act

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10
Q

The secondary market is funded by ____.

A

Investors

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11
Q

The organization that has been most influential in addressing regional imbalances of mortgage credit availability and in the standardization in mortgage loans is ____.

A

Fannie Mae

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12
Q

Which of the following are benefits of the pre approval process?

A

all of the above

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13
Q

What is true about the LE?

A

the LE form must be given to the borrower at loan application or within three business days of loan application)

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14
Q

The type of loan that covers more than one piece of property and is likely to contain a release cause is ____.

A

A blanket mortgage

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15
Q

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?

A

budget mortgage

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16
Q

Where would you expect to find PMI?

A

on a high LTV conventional loan

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17
Q

What is the most significant difference between MIP and PMI?

A

MIP insures the whole amount whereas PMI only insures the lenders risk)

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18
Q

Which of the following governmental rights is the right to regulate and control the way land is used?

A

Police power

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19
Q

Eminent domain is ____.

A

The right of the government to take private land for public use

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20
Q

____ occurs when a landowner sues the government in order to force the government to buy his or her land.

A

Inverse condemnation

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21
Q

Tax rates can be per hundred or per thousand, called ____.

A

Mills

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22
Q

Which of the following agencies is not granted authority for cleanup up of hazardous substances under CERCLA?

A

Property owner associations

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23
Q

The CCIM is widely considered the “gold standard” in designations relating to which real estate sector?

A

Commercial

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24
Q

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.

A

short sale)

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25
Q

A sponsoring broker must

A

all of the above

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26
Q

Appreciation is the ____ increase in the value of a parcel due to market forces.

A

Passive

27
Q

Some of the tax advantages for investing in real estate include ____.

A

Tax-sheltered income, favorable capital gains tax treatment, deferred taxation on exchanges (all of the above)

28
Q

A ____ may be organized as a limited partnership, a general partnership, or a corporation.

A

real estate investment syndicate

29
Q

The two types of real estate investment trusts are ____ and ____.

A

Equity and mortgage

30
Q

The two largest issuers of real estate mortgage conduits are ____ and ____.

A

Fannie Mae and Freddie Mac

31
Q

Which of the following is not a requirement of a valid lease?

A

recording

32
Q

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 ____.

A

The right to first refusal

33
Q

Which of the following is one of the four leasehold estates?

A

Estate for years

34
Q

The TREC buyer and seller temporary lease agreements are for periods of ____.

A

90 days or less

35
Q

Which of the following is true of the TREC buyers temporary residential lease?

A

all of these are true

36
Q

The role of a property manager is established in a written agreement called a ____.

A

Management agreement

37
Q

Which of the following would be considered an operating expense when a property manager is developing and operating budget for the owner?

A

Repainting the unit before a new tenant moves in

38
Q

A buyer with a signed sales contract, who has not yet gone to closing has an ____.

A

Equitable title

39
Q

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 ____.

A

sovereignty of the soil

40
Q

The best way to ensure that a buyer is receiving a good title is to request a ____.

A

General warranty deed

41
Q

Alienation is ____.

A

a change in ownership of real property

42
Q

When an individual dies intestate ____.

A

The property will be disposed under the provisions of Texas Statute of Descent and Distribution

43
Q

In a deed, ____ is something of value given in exchange for conveyance by the grantor.

A

consideration

44
Q

For a valid and properly prepared deed to convey to transfer to title, ____.

A

it must be delivered and accepted

45
Q

A promise in a deed stating that the grantee will have uninterrupted use of the property is called ____.

A

covenant of quiet enjoyment

46
Q

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 ____.

A

An easement created by reservation

47
Q

Recording a deed gives constructive notice of ownership. What other action below gives constructive notice of ownership?

A

moving in or taking possession of the property

48
Q

SCENARIO

A

(quitclaim deed) pg 184 50
No interest on a title/property

49
Q

Typically discovered during the title commitment process, ending lawsuits affecting a particular piece of property are commonly referred to as ____.

A

lis pendent

50
Q

RESPA is implemented by ____.

A

CFPB

51
Q

What law requires mortgage loan originators to provide detailed disclosures regarding the transfer, sale, or assignment of mortgage servicing rights?

A

RESPA
Real Estate Settlement Procedures Act

52
Q

How many square feet are in an acre?

A

43,560

53
Q

How many feet are in a mile?

A

5,280

54
Q

$3600 quarter interest payment on a loan at a 6% rate. What is the loan payment?

A

($240,000) 3,600x4=14,400. 14,400/.06=240,000

55
Q

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?

A

$11,868

56
Q

A property measures 1.2 miles by 500ft. How many acres is the property?

A

(73 acres) 1.2x 5,280=6,336. 6,336x500=3,168,000. 3,168,000/43,560=72.73.

57
Q

There is 100 acres of land to build a house. How much sq ft does the owner have?

A

4,356,000

58
Q

Lender is charging two discount points and one origination point. What amount will an investor pay in points on $160,000 loan?

A

$4,800

59
Q

Negotiates 5.5% on a $325,000 loan. The lender will get 60% commission on the loan. How much commission will be made?

A

($10,725) 325,000x5.5=17,825. 17,825x.6=10,725.

60
Q

A property valued at $95,000 has a tax rate of $3.45/mill. How much are the annual taxes?

A

$3,277.50

61
Q

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 ____.

A

Consummation

62
Q

The person who receives occupancy from the owner

A

Lessee(tenant)

63
Q

The person who gives occupancy to the tenant

A

Lessor(landlord or owner)

64
Q

Does RESPA oversee condominium complex?

A

Yes

principal of real estate 2 (1 decks)

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