Best Study Guide Exams Questions and Answers

REE 4103 EXAM QUESTIONS WITH REVISED ANSWERS – UPDATED The amount of depreciation for the HVAC, Plumbing, Lighting Fixtures, - Answer-20%, 16.7%, 16.7%, 20%, and 33.3% respectively Cost Approach: Residence: 2,000 square feet $100/sf cost to build Basement: 1,000 square feet $50/sf cost to build Garage: 750 square feet $75/sf cost to build Screened porch: 400 square feet $25/sf cost to buid Short-lived items: HVAC $10,000 new effective age of 5 years life expectancy of 25 years Plum...

REE3043 PRACTICE TEST QUESTIONS WITH REVISED ANSWERS – UPDATED!! There will be a fixed payment ( can be a year or monthly ). Then the rate is adjusted - Margin never changes - Index changes as per the terms of the loan - Answer-ARM - adjustable rate mortgage Example : - principle : $400 - interest : $600 - total payment : $1,000 - optional arm allows you to decide how much of your payment you want to send in - whatever you send it goes to pay down the interest first. Anything left ...

REE3043 REVIEW TEST QUESTIONS WITH ALL CORRECT SOLUTIONS As part of their underwriting process, lenders may rely on debt ratios to ascertain whether borrowers have the ability to make regular payments on their mortgages. Utilizing the following information, calculate the total (back-end) debt ratio we learned in class. Monthly principal and interest on mortgage loan: $1500; Monthly tax and insurance payments into escrow: $200; Estimated monthly utility bills: $350; Monthly car loan payment (2 y...

REE 3043 FINAL EXAM WITH VERIFIED QUESTIONS AND ANSWERS ALL UPDATED Equitable title to real estate is: - Answer-The right to obtain legal title conveyed by the contract for sale Since the issues in many transactions are similar, brokers often use standard preprinted contract forms. Generally, the best standard form contracts are those prepared and approved by which of the following parties? - Answer-Local Board of Realtors When contracts for the sale of real property are placed with with ...

REE3043 EXAM 5 QUESTIONS WITH CERTIFIED ANSWERS A client has requested advice on a potential investment opportunity involving an income-producing property. She would like you to determine the internal rate of return of the investment opportunity based on the following information: expected holding period: years; end of first year NOI estimate: $113,900; NOI estimates in subsequent years will grow by 5% per year; price at which the property is expected to be sold at the end of year 5: $1,615,20...

REE3043 CHAPTER 2 QUESTIONS WITH REVIEWED ANSWERS Rules used by courts to determine whether something is a fixture include all except? Intention of the parties Manner of the attachment Law of capture Character of the article and manner of adaption Relation of the parties - Answer-Law of capture Which of these is a titled estate? Fee simple absolute Fee simple conditional Conventional life estate Legal life estate All of these - Answer-All of these While leasehold interests are conside...

REE3043 CHAPTER 4 QUESTIONS WITH CORRECT ANSWERS REVISED AND UPDATED In considering the acquisition of real property, it is important to remember that certain factors may limit ownership rights. Which of the following is an example of a situation in which ownership rights can be fully removed from the property? -land use controls -leasehold interests -homeowner association (HOA) bylaws -defaulted lien - Answer-leasehold interests Given the following information, compute the effective t...

REE 3043 TEST QUESTIONS WITH UPDATED ANSWERS Transactional - Conditions of Sale - Answer-Comparable property's sale price must be adjusted if any general condition represented in the sale was not typical of the market. Transactional - Financing Terms - Answer-Must be adjusted if it is sold below market or non market financing Transactional - Market conditions - Answer-must be adjusted if general market conditions have resulted in a change since its transaction date, resulting in overall ...

REE3043 EXAM QUESTIONS WITH COMPLETE SOLUTIONS Gross salary: 50,000 Mortgage debt : .36 Total : 18,000 Divide by 12 to get monthly Gives you 1,500 a month. The bank does not want you total debt ( including the cost of housing ) to be more than 1,500 a month. - Answer-Total debt ratio - school's - property tax rate - driving time to work - crime in the area - recreational amenities - Answer-Things to consider about choosing an area in which to buy a home. - don't make late payments...

Ree 3043 TEST QUESTIONS WITH CERTIFIED ANSWERS You pay only the interest on the loan for the entire loan and then pay the principle at the end of the loan. - Answer-Interest only loan The lender that takes out a insurance policy against the mortgage in case the borrower defaults. - Answer-PMI - Private Mortgage Insurance It was created to restore confidence in the mortgage market. It had a great impact in the housing finance system. The FHA helped establish rigorous borrowing and lending ...