Principles of Real Estate 2 Practice Test Aceable Questions With 100%Verified AnswersA+GRADED

Principles of Real Estate 2 Practice Test Aceable Questions With 100%Verified AnswersA+GRADED REO - correct answer...What term describes a property that is owned by a lender because a third-party buyer couldn't be found at a foreclosure auction? Real Estate Mortgage Investment Conduit (REMIC) - correct answer...A type of SPV that holds commercial and residential mortgages in trust, assembles said mortgages into pools based on risk, and issues bonds (securities) on these pools to sell to investors in the secondary mortgage market is a(n): a concession - correct answer...Julio considers leasing an apartment unit from Bruno, the landlord of an apartment complex. Bruno really wants Julio to sign so the complex doesn't have vacancies. To convince Julio, Bruno offers to lower Julio's rent $75 per month for the first six months of Julio's lease. Bruno is offering Julio: ($12,000 x 10%) / 12 X 13 = interest - correct answer...How would you find the interest for a $12,000 loan with an interest rate of 10% over thirteen months? affidavit as to debts and lients - correct answer...What is the name for the sworn statement in which the seller assures the title company (and the buyer) that there are no liens, unpaid bills for repairs or improvements, or undisclosed defects in the title? Interstate Land Sales Full Disclosure Act - correct answer...What act requires that applicable contracts have a 7 day "cooling-off" period for buyers during which buyers can cancel their contract for any reason and get their money back? Principle of Conformity - correct answer...Which appraisal principle states that maximum value is realized when land use is in harmony with surrounding standards? anticipation - correct answer...Which is NOT one of the three approaches to value? Actual notice is direct or first-hand knowledge; constructive notice is the assumption of knowledge because that knowledge is in the public record. - correct answer...What is the difference between actual and constructive notice? 5,280 - correct answer...How many feet are in a mile? A partnership where all members equally share responsibilities, profits, and losses. - correct answer...In terms of syndicates, what is a general partnership? FDIC - correct answer...After the bank failures in the 1920s and 1930s, Congress created what institution to insure customer deposits, supervise financial institutions for safety and soundness, make large financial institutions resolvable, and manage receiverships? Real Estate Owned - correct answer...What does "REO" stand for? Because the buyer has accepted the deed, the only recourse is to sue the seller under any covenants contained in the deed. - correct answer...A buyer purchased property from a seller. Shortly after closing, the buyer discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What is the buyer's best course of action? a codicil - correct answer...Which of the following would be used to modify a will? credit to the buyer and debit to the seller - correct answer...On the Closing Disclosure, prorated interest paid before closing on an existing assumed mortgage is a: modifications made at the tenant's expense - correct answer...Landlords MUST allow tenants with disabilities to make reasonable modifications to a property so they can enjoy it. But there are also unreasonable modifications a landlord does NOT have to allow; all of the following are unreasonable modifications EXCEPT: Investors can claim tax-sheltered income through depreciation expenses. - correct answer...What is one way investors can get a break on taxes? ALL real estate license holders - correct answer...For whom is it most important to be aware of and comply with state and federal fair housing laws? A sales comparison approach does NOT utilize the principle of contribution - correct answer...Which of the following is FALSE about a sales comparison approach? A tenant remains in possession of a landlord's property without either a current lease agreement or the landlord's approval. Which statement is TRUE in this situation? - correct answer...the landlord can file suit for possession What protects consumers from abusive settlement practices and provides them with information pertinent to all settlement costs? - correct answer...RESPA Brenda and her husband are looking to buy a property in New Orleans. The house they are looking to buy was constructed in 1971, and has all the original paint, windows, and flooring. What is required from the leasing agent in this situation? - correct answer...The agent needs to furnish the buyers with a pamphlet approved by the EPA concerning lead based paint prior to closing What is the name for the form that itemizes services and fees charged to the borrower by the lender when applying for a real estate loan? This is the same form that is received by the consumer no later than three business days before consummation of the loan. - correct answer...Closing Disclosure What is a ground lease? - correct answer...Lease of a bare, undeveloped land Gabe is set to close on the condo she is selling on January 23. The condo's assessed value is $123,000 and the tax rate for her property's county, Austin County, is 1.97%. Using the 360-day year, what amount does Gabe owe for her prorated ad valorem tax? - correct answer...$154.81 Maura is a new property manager who is eager to succeed. A good piece of advice for Maura would be to prioritize: - correct answer...protecting the property owner's investment and maximizing the owner's return on that investment In the sale of his development, Jeff (the developer) registers important information about his development and compiles that information into a property report. Jeff files the report with his superiors; Jeff does not deliver the report to his prospective buyer. Evaluate Jeff's actions. - correct answer...Jeff did NOT adhere to the rules of the CFPG and the Interstate Land Sales Full Disclosure At; he should have delivered the report to the buyer. What is an easement in gross? - correct answer...a legal right to use another individual's land for as long as the owner owns that land or until the holder of the easement dies. Rex purchased an investment property with the intention of renting it out. To finance it, he set up a partially amortized loan with a balloon payment. What risk could this pose for him as the borrower? - correct answer...If his property fails to gain value through renter revenue, Rex could be caught with insufficient funds at the time of the larger balloon payment. Which of the following is NOT a principal responsibility of a property manager? - correct answer...Forcibly removing tenants for nonpayment of rent What government agency allows single-family properties to be depreciated over the course of 27.5 years? - correct answer...Internal Revenue Service The person responsible for assembling necessary closing documents, preparing the HUD-1 settlement, and arranging the closing is generally called ____ - correct answer...The closing agent If an owner/landlord decides to sell their property while engaged in a lease: - correct answer...the current tenant will continue to have full possession of the property until the lease expires Which of the following regarding owner's title insurance policies and lender's title insurance policies is TRUE: - correct answer...owner's policies are usually issued for the sales price of the property; lender's policies are usually issued on the dollar amount of the loan Jake takes out a mortgage loan on a furnished condominium. This mortgage cost covers the real property, but it also covers personal property like the kitchen appliances, the velvet purple paisley curtains, and the leather couches in the condominium. What kind of mortgage does Jake have? - correct answer...package mortgage What is a gross lease? - correct answer...Lease in which the tenant pays a simple, flat rent every month Which of the following is TRUE regarding a fixed-rate mortgage that is fully amortized? - correct answer...The amount of interest to be paid is predetermined What methods can be used when determining value through the cost approach? - correct answer...the square-foot method, the unit-in-place method, and the quantity-survey method Property managers will need to provide reports for their property owner, such as a maintenance report, a rent roll, and an operating statement. The frequency with which the property manager will need to file these reports should be outlined in the: - correct answer...management agreement Ricky, a borrower, has a mortgage loan that has just been bought by a new investor. Ricky panics, as his loan conditions are bound to change with the new owner. Evaluate if Ricky's fear is accurate, and why/why not. - correct answer...Ricky shouldn't worry; even though the loan is being sold by the lender, Ricky will most likely not be affected at all Jayden researches a property he's interested in buying. He uses the assessed value for all tax calculations, market comparisons, notes, etc., because assessed value is the same as market value - why complicate things by using two values? Evaluate if Jayden was correct in doing this and why/why not. - correct answer...Jayden was NOT correct; assessed value and market value are two distinct, independent values. What is something that allows an individual property to deviate from a specific provision of a zoning ordinance that is usually based on features such as building height, lot square footage, or setback requirements? - correct answer...a variance