Exam (elaborations)
Texas Principles Of Real Estate Part II: Q’s And A’s
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Texas Principles Of Real Estate Part II: Q’s And A’s
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Texas Principles Of Real Estate Part II: Q’s And A’sA single-family residence does NOT reach its full value because it is located in
an industrial area. This illustrates the appraisal principle of Right Ans -
conformity.
The market value of a property is Right Ans - The most probable price a
property should bring.
What should be done to the sales price of the comparable property if it is
missing features that are present in the subject property? Right Ans - It
should be increased.
Which creates a lien against the property as security for the debt? Right
Ans - Deed of trust
Charging interest in excess of the maximum rate of interest set by state law is
called Right Ans - usury.
Which originate loans with either their own money or funds borrowed from
other institutions? Right Ans - Mortgage bankers
In an amortized loan, the initial payments are applied mainly to Right Ans -
the interest.
Donna gives Tom a general warranty deed that does NOT mention an existing
mortgage lien on the property. This is a violation of the covenant Right Ans
- against encumbrances.
What kind of notice refers to information that is available in the public
record? Right Ans - constructive
A brief history of all the documents affecting title is Right Ans - an abstract
of title
Property owners on one street have petitioned the city to install paved alleys
behind their homes. If Marcus has a rectangular lot that measures 90 feet by
140 feet, on what amount would he pay the special assessment? Right Ans -
90 feet
,A house sells for $180,000 and the broker is to receive a 5% commission. The
broker's commission is Right Ans - $9,000
To find the area, which of the following would you divide into identifiable
parts, calculate the areas of those parts, and add them? Right Ans -
Irregular figure
The seller wants to net $65,000 from the sale of his house after paying the
broker's fee of 6%. His gross sales price will be Right Ans - $69,149.
Using the calendar-year method for calculating a closing-cost proration,
February would have how many days if the year is not a leap year? Right
Ans - 28
A home is listed at $525,000 but is only appraised at $490,000. How much are
annual property taxes, based on $3.00 per $100 valuation? Right Ans -
$14,700 (based on the appraised value of the property)
Items for which the buyer is credited at the time of closing are known as
Right Ans - accrued items.
Quick percentages: A "fourth" or a "quarter" of something equals Right Ans
- 25%.
To determine rate when the amounts of the part and the total are known,
Right Ans - divide the part by the total (part ÷ total = rate).
What are accrued expense and prepaid expense items? Right Ans - An
accrued expense is something owed by the seller that eventually will be paid
by the buyer, such as interest on an assumed loan; and a prepaid expense is
something paid in advance by the seller but not yet used up, such as prepaid
insurance.
With an outstanding loan balance of $12,000 at an interest rate of 9% and a
monthly payment of $100, the amount of the first payment that goes toward
interest is Right Ans - $90
, What did the owners originally pay for their home if they sold it for $98,672,
which gave them a 12% profit over their original cost? Right Ans - $88,100
The seller offers to take back a second mortgage of $25,000 at a simple
interest rate of 4.5%. The loan is amortized over 10 years. What is the amount
of interest paid in the first month? Right Ans - $93.75
A large, lavish house located in a neighborhood of much smaller, modest
homes has less value than one in a development with other large, lavish
homes. This is an example of the principle of Right Ans - Conformity
Under Texas law, how soon must an appraiser be paid for his work? Right
Ans - Within 60 days
Susan estimated the value of the Jones's new house by comparing it to the cost
of buying a similar lot and constructing similar improvements. She used
Right Ans - the cost approach
Can a Seller's Net Return form be used by a seller as proof of how much the
seller will be able to put down on his next home purchase? Right Ans - No,
the Seller's Net Return form is an early estimate of a seller's proceeds but
cannot be guaranteed.
The stated purpose of the Texas Appraiser Licensing and Certification Board
(TALCB) is to Right Ans - protect consumers.
How many hours of Appraiser Qualifications Board (AQB) courses are
required to become a state-licensed real estate appraiser? Right Ans - 150
hours, including 15 hours of USPAP
The sales comparison approach is based on which basic principle of appraisal
value? Right Ans - Substitution
An ideal CMA would include the value of similar homes sold Right Ans - in
the last six months.
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