Re Test Prep

Front 1

Two ways an investor can use leverage to make money

Back 1

Amortization and Appreciation

Front 2

A home that is significantly older than the others in the same area would be appraised using the

Back 2

Cost Approach

Front 3

Any person who applies for a loan, but does not meet the requirements

Back 3

does not get the loan

Front 4

In appraising for value the appraiser does not concern him/herself with

Back 4

The racial makeup of a neighborhood

Front 5

In real estate the establishment of priority b/t diff. existing interests, claims, liens and encumbrances on the same parcel of land is a

Back 5

Subordination clause (agreement)

Front 6

The tenant who holds over after a lease has expired where the rent is accepted by the lessor is called

Back 6

Holdover Tenant

Front 7

A seller & buyer sign a contract. The seller later finds out there will be a marina built and wants out of the contract. The recourse the buyer would have is called a

Back 7

Suit for Specific Performance

Front 8

The purpose of the alternative minimum tax is to

Back 8

insure all who earn income pay some tax even if they have deductions

Front 9

What type of interest rate does the APR compare to

Back 9

Effective interest rate

Front 10

Regulation Z required that the

Back 10

APR be disclosed at closing

Front 11

What determines discount points

Back 11

The market

Front 12

The interest rates are regulated by the

Back 12

Federal Reserve

Front 13

Deed restrictions are created by

Back 13

The Grantor

Front 14

If the commission finds you guilty, who would have jurisdiction

Back 14

Either party can appeal to the appellate court having jurisdiction

Front 15

The recording of document gives

Back 15

Constructive notice

Front 16

The party who signs the Deed of Trust is called the

Back 16

Trustor

Front 17

A salesman takes a listing and enters it into MLS stating it has 2000 sq. ft. and tells the buyer it has 2550 sq.ft. The fault belongs to the

Back 17

Salesman and the sponsoring broker

Front 18

The provisions of this clause in a Deed of Trust/Mortgage, that states when the note has been fully paid, the lender is required to execute a release of lien is called

Back 18

Defeasance clause

Front 19

Who might apply for a flexible mortgage is

Back 19

Someone who needs help in qualifying or making the montly payments

Front 20

An economic characteristic of RE - people's choice and preference for a given area is called

Back 20

Situs

Front 21

A ownership recognized by a court of equity or founded upon equitable principles as opposed to formal legal title is called

Back 21

Equitable Title

Front 22

The interest a buyer has prior to closing is called

Back 22

Equitable Title

Front 23

How is a option different from a contract

Back 23

Lack of mutuality

Front 24

A lessee who leased a fee simple estate for 10 years would have a

Back 24

Estate for years

Front 25

The use of an actionof forcible detainer would be used by the

Back 25

Lessor/Landlord

Front 26

The instrument given by the borrower which pledges real property as security for the loan is the

Back 26

Deed of Trust / Mortgage

Front 27

An investment in real estate, but not the property itself is called a

Back 27

Security

Front 28

The overhang of a slopping roof that extends beyond the house is called

Back 28

Eaves

Front 29

Concrete support under a fondation that usually rests on solid ground is called

Back 29

Footing

Front 30

The item that serves as main support for a roof or second floor is called a

Back 30

Stud

Front 31

The deed that is given at a tax foreclosure sale is a

Back 31

Sheriff's Deed

Front 32

the law which limits the amount that lenders can require in escrow accounts to insure payment of taxes and insurance is

Back 32

RESPA

Front 33

When interest rates are very low, a clause the lender would put in the note to discourage borrowers is called

Back 33

Partial amortization

Front 34

Estate or interest in real property for life or of a uncertain duration, lasting at least as long as the life of the present holder is called

Back 34

Freehold estate

Front 35

Estate for a term of years is called

Back 35

Non-Freehold estate

Front 36

Both real and personal property which is capable of being inherited is called

Back 36

Hereditaments

Front 37

Hereditaments that include only actual physical property capable of being touched or seen is called

Back 37

Corporeal

Front 38

Hereditaments that cannot be seen or handled, such as the right to remove oil, gas, gravel etc. are called

Back 38

Incorporeal

Front 39

On a personal home the interest paid on the mortgage is

Back 39

Tax deducible

Front 40

On a personal home the property taxes paid are

Back 40

Tax deducible

Front 41

A person who would like to avoid paying their capital gains tax to a later date on investment property would do a

Back 41

1031 tax deferred exchange

Front 42

The easement that has been obtained and held by the claimant for 10 yrs. against the wishes of the landowner is called

Back 42

A Easement by Prescription

Front 43

The agreement to change the order of lien filing by contract between the parities

Back 43

Subordination agreement

Front 44

To lease or to grant the use of realty for a compensation is sometimes called

Back 44

To let

Front 45

Written acknowledgment of a debt with a promise to pay is called

Back 45

Debenture (used some times by FHA & VA)

Front 46

The act of committing is called

Back 46

Commission

Front 47

The failure to do something or neglect to perform what the law requires, which maybe intentional or unintentional is called

Back 47

Omission

Front 48

The three (3) parties to a Deed of Trust are called

Back 48

Trustor/Mortgagor - Trustee-Beneficiary/ Mortgagee

Front 49

A system of land title registration used in Australia, England, Canada and the state of Massachusetts is called the

Back 49

Torrenn System

Front 50

What are the CC & R's in a Deed

Back 50

Covenants, Conditions and Restrictions

Front 51

The studs in the framwork of a house are connected to each other at the top and bottom by

Back 51

Plates

Front 52

When a lessee abandons a property b/c something does not work, the eviction is called

Back 52

Constructive Eviction

Front 53

The clause which requires the lender to execute a release of the lien, when the note has been paid in full is called

Back 53

Defeasance Clause

Front 54

The covenant that is given by a owner(s) that warrants that the owner(s) are owner(s) and have the right to convey title to the property is called

Back 54

Covenant of Seisin

Front 55

The personal property or cash given in a real property exchange is called

Back 55

Boot

Front 56

The principal which dictates the after a real estate contract has been signed, escrow has been entered and deposits made, the death or insanity of the Grantor does not terminate the process but the escrow takes on a life of it's own and will continue through closing as if the death or insanity had not occurred is called

Back 56

Relation Back Doctrine

Front 57

Under adverse possession, the joining together or the uniting of the periods of successive adverse possessors to complete the period necessary to establish title by adverse possession is called

Back 57

Tacking

Front 58

A mortgage that has no end b/c there is no due date and the collateral for the original loan is still used for the new amount loaned is called

Back 58

Open-end mortgage

Front 59

Usually the ownership of property held by a single individual or other legal entity (corporation) is called

Back 59

Ownership in Severalty

Front 60

Permission from zoning officials to make an exception to the zoning ordinances is called a

Back 60

Variance