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AGEC 432 TEST 1 WITH COMPLETE
SOLUTIONS!!
What is the difference between realty and personalty? - Answers realty is something permanent and personalty is something that can be moved What term is associated with real estate ownership rights? - Answers real property Secured interest gives the ___________ the right to bring about sale of the loan if there is default. - Answers lender Who places deed restrictions on a property? - Answers owner To be considered an estate for years, the duration of tenancy must be at least: - Answers no minimum duration Future Estates are not: - Answers estate from year to year Which is not a characteristic of estate from year to year? - Answers frequently a written agreement
The term used to link owner to the property is: - Answers title The document that conveys title from one person to another is: - Answers deed Significant covenants in a general warranty deed are all but which of the following? - Answers the grantor does not have title of the property An annuity is: - Answers a series of deposits or payments The number by which you multiply a desired future value to obtain the payment needed is referred to as: - Answers sinking-fund factor Which of the following is NOT true considering Internal Rate of Return? - Answers it is the inverse of an external rate of return If Fund A and Fund B begin with the same deposit and the same interest rate, but Fund A was compounded monthly and Fund B was compounded weekly, which of the following is true? - Answers After one year Fund B will be worth more than Fund A. Each of the following is a basic component of compounding interest, EXCEPT: - Answers sum of all payments
Which of the following is NOT an approach used in an appraisal? - Answers price escalation approach When an appraiser uses a discount rate to help value the subject property, the appraiser is using what type of approach? - Answers the income approach Which of the following social trends has not contributed to the total increase in housing units? - Answers lower rates Which of the following is true of market value? - Answers it is the most probably price in a competitive market. When considering renting verses owning a property, which of the following is an important consideration? - Answers home ownership rates The final estimate of value given by the appraiser usually - Answers applies a weight to all estimated values Which of the following is not considered an influence on price appreciation?
- Answers current home price Which term properly refers to the relationship between the quality of services in a neighborhood or municipality and the price paid to live in that area? - Answers capitalization effect
Which of the following would most likely NOT be used if a mortgage is granted for less than 80% of the value of the home? - Answers conventional mortgage loan Which of the following is not an aspect of data gathered from a borrower in determining the amount of credit to extend? - Answers education Classification of mortgage loans includes all of the following EXCEPT: - Answers HUD guaranteed mortgages When using this approach, the appraiser establishes a value for the site on which the improvement is located, then determines the cost of reproducing the improvement and adds the two. - Answers cost approach Requirements under the Real Estate Settlement and Procedures Act (RESPA) do NOT include: - Answers disclosure of kickbacks Underwriting is the process of evaluating which of the following? - Answers the borrowers loan request Given the following: Loan to value ratio = 80% Beginning Interest Rate = 7% Loan term 20 years
Five tenants rent equal proportions of a 100,000 sf. building, where 20, sf. is common area. Annually, if tenant A pays $20 per sf., tenant B pays $25 per sf. and all other tenants pay $18 per sf. What is the total monthly rent? - Answers $132, When the rent from a retail lease exceeds the minimum rent due to a percentage rent clause, the additional rent above the minimum rent is referred to as: - Answers overage rent A market analysis of supply and demand for a proposed real estate investment will include: - Answers vacancy rates new construction under way rent levels Which of the following was not noted as a factor of market rent? - Answers existing liens on the property Which of the following was NOT listed as an influence for demand on retail space? - Answers distribution Triple Net Lease usually refers to the tenant paying all but which of the following expenses? - Answers management fees Which of the following is NOT true of load factors? - Answers used to compare leasing alternatives
conveys the grantee whatever rights, interest, and title that the grantor may have in property. - Answers quitclaim deed a freehold estate that lasts only as long as the life of the owner of the estate or the life of some other person - Answers life estate exists when the holder of an estate in land conveys to another person a present estate in the property that has fewer ownership rights than the grantors own estate and retains for the grantor or grantors heirs the right to take back, at some time in the future, the full estate that the grantor enjoyed before the conveyance. - Answers Reversion does not convey the right to enjoy the property until sometime in the future; estates not yet in possession - Answers future estates limit the use of property by all subsequent owners of that property - Answers deed restrictions used to link an individual or entity who owns property to the property itself and establishes the quantity of rights in real estate being conveyed from seller to buyer. - Answers title used to refer to land and all things not moveable or permanently attached. - Answers real estate an estate that expires on a definite date - Answers leasehold estate
insures the interests of the mortgagee (lender) - Answers lender's policy the freehold estate that represents the most complete form of ownership of real estate - Answers fee simple estate conveys property without seller warranties. Referred to as an "as is" deed. - Answers bargain and sale deed the means by which buyers of real estate (1) learn in advance whether their sellers have and can convey the quality of the title they claim to possess and (2) receive compensation if the title, after transfer, turns out not to be as represented. Can affect the collateral value of the property. - Answers title assurance makes the same warranties as a general warranty deed except that is limits their application to defects and encumbrances that occurred only while the grantor held title to the property. - Answers special warranty deed rights that can be exercised by the property owner; the right of a person to the possession, use, enjoyment, and disposal of his or her property. - Answers property rights created by a lease that specifies an exact duration for the tenancy. - Answers estate for years
insures the interests of the new property owner - Answers owner's policy the person who holds the title - Answers lessor the right to use land that is owned or leased by someone else for some special purpose. - Answers easement right to own real property. - Answers ownership rights the right to use land that is owned or leased by someone else for some special purpose with limited user privilege - Answers Nonposessory interest gives unpaid contractors, workers, and material suppliers the right to attach a lien on the real estate to which they added their labor or materials in order to obtain payment. - Answers mechanics lien
