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50 Cards in this Set
- Front
- Back
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A woman has just made the final payment on her home mortgage to her lender. There will still be a lien on her property until the lender records a(n)
A) satisfaction of mortgage B) Reconveyance of mortgage C) alienation of mortgage D) reversion of mortgage |
A) satisfaction of mortgage
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An existing mortgage loan can have its lien priority lowered through the use of a
A) hypothecation agreement B) satisfaction of mortgage C) subordination agreement D) reconveyance of mortgage |
C) subordination agreement
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The right a mortgagor has to regain the property by paying the debt after a foreclosure sale is called
A) acceleration B) redemption C) reversion D) recapture |
B) redemption
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A man has been making periodic payments of principal and interest on a loan, but the final payment will be larger than the others. This is a(n)
A) balloon payment loan B) fully amortized loan C) FHA loan D) straight loan |
A) balloon payment loan
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The amount of the loan expressed as a percentage of the value of the real estate offered as collateral is the
A) amortization ratio B) loan to value ratio C) debt to equity ratio D) capital-use ratio |
B) loan to value ratio
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If the quarterly interest at 10 1/2% is $3150 the principal amount of the loan is
A) $30,000 B) $60,000 C) $90,000 D) $120,000 |
D) $120,000
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What is the primary function of Fannie Mae?
A) To make FHA loans B) To purchase FHA loans C) To service FHA loans D) To insure FHA loans |
B) To purchase FHA loans
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The grantor becomes the lessee and the grantee becomes the lessor under which of the following financing arrangements?
A) Partial sale B) Wraparound mortgage C) Sale and leaseback D) Assumption of mortgage |
C) Sale and leaseback
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Which pair of terms is synonymous?
A) Interim financing and construction loan B) Construction loan and pass through loan C) Pass-through loan and take out loan D) Take out loan and construction loan |
A) Interim financing and construction loan
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The type of real estate loan that allows the lender to increase the outstanding balance of the loan up to the original sum in the note while advancing additional funds is the
A) wraparound mortgage B) open end mortgage C) growing equity mortgage D) graduated payment mortgage |
B) open end mortgage
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A woman's son will start college soon. She has lived in her home for 10 years. What financing option would be preferable for the woman to obtain funds to pay for her sons schooling?
A) Participation financing B) Open end loan C) Wraparound loan D) Home equity loan |
D) Home equity loan
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All of the following loans to individuals are affected by the truth in lending law under Regulation Z EXCEPT
A) household use B) business use C) room additions D) swimming pools |
B) business use
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An FHA insured mortgage loan would be obtained from which of the following?
A) The Federal Housing Administration B) The Department of Housing and Urban Development C) Any FHA approved lending institution D) Any FHA approved insuring institution |
C) Any FHA approved lending institution
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Fannie Mae, Ginnie Mae, and Freddie Mac all
A) originate residential mortgage loans B) purchase existing mortgage loans C) insure residential mortgage loans D) guarantee existing mortgage loans |
B) purchase existing mortgage loans
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A mortgage broker generally offers which of the following services?
A) Handling the escrow procedures B) Bringing the borrower and lender together C) Providing credit qualification and evaluation reports D) Granting real estate loans using investor funds |
B) Bringing the borrower and lender together
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A familys apartment lease has expired, but their landlord has indicated to them that they may remain on the premises until a sale of the building is closed. They will be charged their normal monthly rental during this period. The right held by the family is called a(n)
A) year to year hold over B) estate for term C) estate at sufferance D) tenancy at will |
D) tenancy at will
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Generally, an oral lease for five years is
A) illegal B) unenforceable C) A short-term lease D) renewable only in writing |
B) unenforceable
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The lessor and lessee have agreed to a lease term of five years. In order to ensure that the rental income during the term is reflective of market conditions, the lessor could
A) negotiate a new lease each year B) collect an additional security deposit each year C) negotiate an index lease D) negotiate a gross lease |
C) negotiate an index lease
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The tenant leases a heated apartment, but the landlord fails to provide heat because of a defective central heating plant. The tenant vacates the premises and refuses to pay any rent. This is an example of
A) abandonment B) actual infection C) constructive eviction D) lessor negligence |
C) constructive eviction
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A lease would be terminated by which of the following?
A) Sale of the leased premises B) Death of the tenant C) Abandonment of the leased premises by the tenant D) Expiration of the term in a lease for years |
D) Expiration of the term in a lease for years
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A lease should contain all of the following provisions EXCEPT
A) A sale and lease back clause B) use of the premises C) possession of the premises D) The term of the lease |
A) A sale and lease back clause
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A tenants lease has expired, but the tenant has not vacated the premises or negotiated a renewal lease. The landlord has declared that the tenant is not to remain in the building. This situation is an example of
A) an estate for years B) an estate from year-to-year C) tenancy at will D) tenancy at sufferance |
D) tenancy at sufferance
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A lessee who pays some or all of the lessors property expenses has a
A) gross lease B) net lease C) percentage lease D) sublease |
B) net lease
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The principal difference between an estate for years and an estate from year to year is that an
A) estate for years is a life estate B) estate for years cannot be terminated C) estate from year-to-year must be in writing D) estate from year-to-year has no expiration date |
D) estate from year-to-year has no expiration date
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A management agreement is to a property manager as a(n)
A) listing agreement is to a broker B) lease is to a tenant C) deed is to a buyer D) assignment is to an assignee |
A) listing agreement is to a broker
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A real estate broker acting as an owners property manager
A) must not profit from private contracts at the expense of the owner B) may manage the clients property to his or her own advantage C) need not maintain complete and accurate trust account records D) can personally collect the interest earned on trust account funds |
A) must not profit from private contracts at the expense of the owner
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Adaptations of property specifications to suit tenant requirements are
A) tax exempt improvements B) tenant improvements C) prohibited by most non-residential leases D) generally not a good idea |
B) tenant improvements
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All of the following would cause a high vacancy rate EXCEPT
A) inept management B) poor location C) excessive rent D) very desirable amenities |
D) very desirable amenities
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In determining rental amounts, a property manager considers the economic principle of
A) marginal contribution B) supply and demand C) conformity D) balance |
B) supply and demand
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All of the following are important functions of a property manager EXCEPT
A) supervising the maintenance of the property B) protecting the physical integrity of the property C) meeting the functional requirements of the tenants D) preparing the owners income tax returns |
D) preparing the owners income tax returns
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All of the following are alternative risk management techniques EXCEPT
A) avoiding it B) retaining it C) ignoring it D) transferring it |
C) ignoring it
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The property managers chief concern should be that the
A) property is seldom vacant because it is consistently rented at the lowest possible rents B) property is managed to achieve the highest overall rate of return possible on the owners investment C) property managers time is maximized in his or her management of the property D) property exhibits the proper amount of the owners pride of ownership |
B) property is managed to achieve the highest overall rate of return possible on the owners investment
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In the evaluation of a large apartment complex, the most weight would be given to which of the following approaches to value?
A) Cost approach B) Income approach C) Sales comparison approach D) All approaches equally weighted |
B) Income approach
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In the cost approach to value, the appraiser makes use of the
A) owners original cost of the building B) estimated replacement cost of the building C) sales prices of similar buildings in the area D) assessed value of the building |
B) estimated replacement cost of the building
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The sales comparison approach to value would be MOST important when estimating the value of a(n)
A) existing residence B) apartment building C) retail location D) new residence |
A) existing residence
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Under an installment contract, the title to the property is held by the
A) vendor B) vendee C) trustor D) trustee |
A) vendor
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Charging more interest then is legally allowed is known as
A) escheat B) usury C) a deficiency D) an estoppel |
B) usury
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A mortgagor is the one who
A) gives a mortgage B) holds a mortgage C) provides mortgage funds D) forecloses on a mortgage |
A) gives a mortgage
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A promissory note
A) may not be executed in connection with a real estate loan B) is an agreement to perform or not to perform certain acts C) makes the borrower personally liable for the debt D) is a guarantee by a government agency |
C) makes the borrower personally liable for the debt
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A land contract provides for the
A) sale of unimproved land only B) sale of real property under an option agreement C) conveyance of legal title at a future date D) immediate transfer of reversionary rights |
C) conveyance of legal title at a future date
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The fee charged by a mortgage broker to arrange a loan is a(n)
A) prepayment penalty B) advance interest payment C) loan origination fee D) pre-payment of mortgage insurance |
C) loan origination fee
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The income approach to value would be MOST important in the appraisal of a
A) residential condominium B) downtown office building C) single-family residence D) vacant residential lot |
B) downtown office building
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In an old retail building, which of the following would MOST likely be a source of incurable functional obsolescence?
A) Deficient and inadequate lighting B) Closely spaced internal support columns C) Unattractive storefront D) Decrease in the areas population |
B) Closely spaced internal support columns
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All of the following are characteristics of value EXCEPT
A) scarcity B) transferability C) obsolescence D) utility |
C) obsolescence
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If the potential gross rental income from a property is $20,000, the vacancy rate is 5%, and the additional income from the laundry facilities and extra storage is $700, what is the effective gross income?
A) $19,000 B) $19,700 C) $20,000 D) $20,700 |
B) $19,700
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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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The term "depreciation" refers to the
A) value of real estate after the expiration of its useful life B) loss of value in real estate from any cause C) costs incurred to renovate or modernize a building D) capitalized value of loss rental income |
B) loss of value in real estate from any cause
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Which of the following would be classified as external depreciation?
A) Leaking roof that needs to be completely replaced B) Poorly maintained properties in the neighborhood C) Poorly designed floor plan that could be modified D) Convenient access to schools and recreational facilities |
B) Poorly maintained properties in the neighborhood
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It is necessary to calculate dollar value for depreciation when using which of the following?
A) Sales comparison approach to value B) Cost approach to value C) Income approach to value D) Gross rent multiplier |
B) Cost approach to value
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The income approach as used by an appraiser makes use of which of the following?
A) Equalization B) Depreciation C) Appreciation D) Capitalization |
D) Capitalization
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