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30 Cards in this Set
- Front
- Back
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All of the following effect how quickly the forces of supply work except the:
a. degree of standardization of the product b. mobility of the product c. degree of standardiztion of the product's price d. mobility of the parties to the transaction |
C. Degree of standardization of the product's price
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The right to control one's property includes all the following except:
a. the right to invite people on the property for a political rund raiser b. the right to exclude the utilities meter reader c. the right to erect "No Trespassing" signs d. the right to enjoy "pride of ownership" |
B. The right to exclude the utilities meter reader
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Mr. and Mrs. H have been living in their condominium at the shore for the past 4 years and renting out the house they bought 25 years ago. When they sell their house this year, how much of the capital gain will be taxable
a. 3% b. 40% c. 50% d. 100% |
D. 100%
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A deed conveys ownership to the grantee "as long as the existing building is not torn down". What type of estate did this deed create?
a. a life estate b. a non-destructible estate c. a fee simple estate d. a determinable estate |
D. A determinable estate
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H conveys a life estate to her grandson and stipulates that upon his death the estate will pass to her son-in-law. The son-in-law has a (n)
a. estate in reversion b. estate in remainder c. estate for years d. legal life estate |
B. Estate in remainder
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A person wants to ensure that the ownership of real property can be wiled to her children. Which of the following forms of ownership would the person want?
a. a conventional life estate b. a fee estate c. a joint tenancy d. a license |
B. a fee estate
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F has the legal right to occupy and use a certain residential structure. All the following could describe F's interest int eh property except
a. fee simple b. remainder c. leasehold d. life estate |
B. remainder
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A trust is a legal arrangement whereby the title to property is held for the benefit of a third party by a (n):
a. beneficiary b. trustor c. trustee d. attorney in fact |
C. Trustee
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K and U owned a combination apartment building with a small bar and grill on the premises. They shared their profit and losses on their venture equally, but they did not own the business under any written partnership agreement. One day U died of a heart attack. If, after U's death, K continued to own the same undivided interest in the real estate as he did before U's death and no more, then:
a. they were joint tenants b. the were tenants in common c. they were stockholders in their corporation d. U died intestate |
B. They were tenants in common
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When properly recorded in the county where the real estate of the defendant is located, a judgment becomes a (n):
a. voluntary lien b. involuntary lien c. specific lien d. equitable lien |
B. Involuntary Lien
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The current market value of a property is $350,000. for real estate tax purposes, it is assessed at 40% of market value. The tax rate is $40.00 per $1,000. of assessed value. What is the amount of real estate tax due?
a. $5600 B. $6250 c. $7500 d. $7400 |
A. $5600
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When a real estate investment is operated by three general partners who are fully liable for the business operation decisions and the business is jointly owned with several other partners who share no responsibility for the business operation decisions, this form of ownership is called a:
a. general partnership b. limited partnership c. real estate equity trust d. real estate mortgage trust |
B. Limited partnership
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An appraiser is responsible for:
a. finding value b. computing value c. determining value d. estimating value |
D, estimating value
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When appraising real estate, the first consideration of the appraiser should be the:
a. asking price of the property b. highest and best use of the property c. original cost of the property d. selling prices of similar properties |
B. Highest and best use of the property
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An appraiser who is using the sales comparison approach to value would use all the following comparable properties except a similar home that was:
a. sold over 6 months ago b. sold recently but is located in another similar neighborhood c. sold by the owners who were undergoing a foreclosure d. sold recently but is located on a much larger lot |
C. sold by the owners who were undergoing a foreclosure
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16. A building is valued at $215,000 and contains 4 apartments that rent for $470.00 each per month. The owner estimates that the net operating income is 65% of the gross rental receipts. What is the capitalization rate?
a. 3.7% b. 6.8% c. 10.5% d. 14.2% |
B. 6.8%
Answer is rent/mo X 12 mo. X # of apartments X% of operating income divided by value of building = cap rate |
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17. The gross rent multiplier is used as a guideline for estimating value based on:
a. the ratio of the gross rents to the net rents after expenses b. the proportion of rents due to the actual rents collected c. the capitalization of the annual gross rental income d. the relationship of the sales price to the rental income |
D. the relationship of the sales price to the rental income
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18. The period of time over which an improvement to the property will contribute to its value is known as its:
a amortized life b. chronological life c. actual life d. economic life |
d. economic life
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19. The market price of real estate is generally the same as:
a. the sales price b. the market vlue c. the highest and best use d. the assessed value |
a. The sales Price
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20. A promissory note:
a. may not be executedd in connection with a real estate loan b. is an agreement to perform or not to perform certain acts c. is the primary evidence of a debt d. is a guarantee by a government agency |
C. is the primary evidence of a debt
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21. The purpose of the real estate settlement procedures act (RESPA) is to:
a. see that buyers do not borrow more money than they can repay b. make real estate brokers more responsive to the needs of the buyers c. help sellers know how much money is required to purchase the property d. see that buyers and sellers know all of their settlement costs |
d. see that buyers and sellers know all of their settlement costs
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22. All of the following would appear on the RESPA settlement required by HUD except:
a. tax prorations b. the escrow fee c. income tax deductions d. closing costs |
C. income tax deductions
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23. The clause in trust or mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon efault is the:
a. judgment b. escalator clause c. forfeiture clause d. acceleration clause |
D acceleration clause
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24. A bilding was sold for $115,000. Earnest money in the amount of $15,000 was deposited in escrow, and the buyer obtained a new mortgage loan for the balance of the purchase price. The lender charged the buyer two discount points on the loan. What is the total amount of cash used by the buyer for this purchase?
a. $2,300 b. $15,000 c. $17,000 d. $17,300 |
C. $17,000
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25. If the yeil on a 30 year loan is 10 1/4 % and a mortgage lender charges 3 points, what is the interest rate on the mortgage note?
a. 9 1/2% b. 10 5/8% c. 10% d. 9 7/8% |
D. 9 7/8%
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26. An FHA-insured mortgage loan would be obtaine from which of the following?
a. the federal housing administration b. the department of housing and urban development c. any qualified lending institution d. any qualified insuring institution |
C. Any qualified lending institution
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27. Fannie Mae, Ginnie Mae and Freddie Mac have in common the purpose of:
a originating residential mortgage loans b. purchasing existing mortgage loans c. insuring residential mortgage loans d. guaranteeing existing residential mortgage loans |
B. Purchasing existing mortgage loans
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28. A veteran would have to make a ddown payment to buy a residence using a VA loan in which of the following cases:
a the veteran owns investment property b. the sales price exceeds the Certificate of Reasonable Value c. The vetern is in the National Guard d. the veteran is unmarried |
B. The sales price exceeds the Certificate of Reasonable Value
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29. A borrower makes a $1,000 monthly amortized loan payment. This means that:
a. each payment has the same amount applying to the principle b. there will be a balloon payment c. The amount applying to the principle increases with each payment d. there is a lump sum payment |
C. The amount applying to the principle increases with each payment
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30. A lender will take certain factors into consideration when deciding whether to grant a borrower a mortgage loan. All of the following are legitimate factors except:
a. the marital status of the borrower b. the credit worthiness of the borrower c. the amount of the borrower's income d. the ability of the borrower to make the payments. |
A. The marital status of the borrower
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