Principles of Real Estate 2 (Texas): Questions and Answers, Exams of Nursing

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PRINCIPLES OF REAL ESTATE 2

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Appraiser must be aware of? - Ans>>> market cycles economic force political actions The principle of appraisal that states "value is influenced by the cost of acquiring a comparable replacement" is: - Ans>>> principle of substitution The presence of a higher-priced property in an area causing an increase in the value of the surrounding properties is an example of the ________ - Ans>>> principle of progression The appraisal method most commonly used as the best indicator of value for existing properties is the - Ans>>> Sales Comparison Approach The principle of appraisal that states that the value of the property in question is decreased by the value of surrounding properties is..... - Ans>>> Principle of Regression

Loss in desirability of style, layout or function of an element of a property over time. - Ans>>> functional obsolescence Depreciation based on factors outside the property is.... - Ans>>> External Obsolescence External Obsolescence (EXTRA) - Ans>>> Losses of property value caused by forces or conditions beyond the borders of the property. The losses are deducted from a building's reproduction cost in the cost approach to estimating market value. The organization that has been most influential in addressing regional imbalances of mortgage credit availability and in the standardization of mortgage loan is..... - Ans>>> FANNIE MAE Fannie Mae began in ________ as an agency of the federal government, created to bring stability to the U.S. housing market. - Ans>>> 1938 The federal law that prohibits discrimination in any aspect of a credit transaction is... - Ans>>> Equal Credit Opportunity (ECOA)

The percentage of the appraised value or sales price that the lender will lend, whichever is lower, is.... - Ans>>> Loan-to-value ratio (LTV) PMI (Private Mortgage Insurance) would be found - Ans>>> High LTV The evidence of debt and personal promise to repay that debt is called: - Ans>>> Promissory Note The benefits of pre-qualifications/pre-approval process are.... - Ans>>> 1. Buyers are able to be more realistic when setting pricing goal

2. Buyers agent has a better understanding of the buyer's ability to pay.
3. The buyers agent can avoid showing properties that buyer can't afford The secondary market is funded by.... - Ans>>> investors The type of loan most likely to contain a release clause, allowing the borrower to obtain partial releases of specific lots by making required lump sum payments is: - Ans>>> Blanket mortgage

The consummation of a real estate transaction in which all the appropriate documents are signed and the proceeds of the loan are disbursed is known as... - Ans>>> closing Authority for cleanup of hazardous substances under CERCLA is granted to all of the following, EXCEPT: - Ans>>> Property owners' associations is NOT Interstate Land Sales Full Disclosure Act provides for.... - Ans>>> The act was passed to protect consumers from fraud in the sale or lease of land the right of Government to take private property for public use is what? - Ans>>> eminent domain One of the rights that the US Government does NOT retain in land is.... - Ans>>> Allodial The Government right in land that includes the right to regulate and control the way land is used.... - Ans>>> Police Power When a landowner sues the Government in order to force it to buy his or her land, it is........ - Ans>>> Inverse Condemnation

A Residential Mortgage Loan (RMLO) must be licensed with...... - Ans>>> Texas Department of Savings &Mortgage Lending When a lending institution becomes the owner of a property through foreclosure, the property becomes an asset of the company and is classified as: - Ans>>> Real Estate Owned (REO) A sponsoring broker must: - Ans>>> 1.Must advise a sales agent in writing of the scope of the sales agent's authorized activities under License act 2.Maintain written policies to ensure the competency of a supervised sales agent, 3.Require that sales agents are adequately trained in the area in which they practice, and recieved educational instruciton. A Real Estate Investment Syndicate may be organized a....... - Ans>>> limited or general partnership, or a corporation Some of the tax advantages of investing in real estate are: - Ans>>> 1.Tax- sheltered income 2.Favorable capital gains tax treatment

3. Deferred taxation on exchanges

The increase in the value of a parcel due to market forces is...... - Ans>>> Passive Appreciation Personal advantages for investing real estate are....... - Ans>>> 1. A hedge against inflation

2. A higher than average rate of return
3. The ability to leverage (use borrowed money to make money) The two largest issuers of REMICs are: - Ans>>> Fannie Mae and Freddie Mac What is NOT required of a Valid Lease? - Ans>>> Recording! The TREC buyer and seller temporary lease agreements are for periods: - Ans>>> 90 days or less A lease for a period of more than one year must be in writing to comply with the _____ - Ans>>> Statute of Frauds

An agreement that allows a tenant the right to match or better any offer the landlord may receive on the property before the property will be sold to someone else.... - Ans>>> Right of First Refusal One of the four leasehold estates is - Ans>>> Estate for Years (most common lease) The two types of Real Estate Investment Trusts are: - Ans>>> Equity and mortgage The following are TRUE of the TREC Buyer's Temporary Residential Lease... - Ans>>> 1. Use only for residential purposes

2. Used only 90 days before closing
3. Promulgated by TREC Must property managers be full-time employees of the owner? - Ans>>> No, Manager is either a full employee or a general agent of the owner. The role of a property manager is established by a written agreement called a(n):

• Ans>>> Management agreement

A statement of the condition of title at a moment in time is called: - Ans>>> A Title Commitment Recording a deed gives constructive notice of ownership. What other action below gives constructive notice of ownership? - Ans>>> Moving in or taking possession of the property A deed that contains no warranties, but in which the grantor does give up his own rights or claims, is known as - Ans>>> Quitclaim Deed In a deed, something of value given in exchange for a conveyance by the grantor is... - Ans>>> Consideration When an individual dies testate... - Ans>>> The deceased's property will pass to his heirs at probate, died leaving a valid will. When a grantor transfers title but retains some rights this is called: - Ans>>> reservation A promise in a deed stating the grantee will be entitled to uninterrupted use of the property is: - Ans>>> covenant of quiet enjoyment

A buyer who wants to ensure that he is receiving good title should request: - Ans>>> General Warranty deed Any change in the ownership of real property is known as: - Ans>>> alienation Because land was originally owned by the government, title to land in the U.S. can be traced back to its original owner, which is referred to as the ____ - Ans>>> Sovereignty of the soil For a valid and properly prepared deed to transfer or convey title it - Ans>>> Title is conveyed when the deed is delivered and accepted To ensure that the loan terms quoted by the lender match what the borrower is receiving at closing, the Closing Disclosure should be compared to the.... - Ans>>> Loan Estimate RESPA is implemented by: - Ans>>> CFPB Consumer Financial Protection Bureau's

Typically discovered during the title commitment process, pending lawsuits affecting a particular piece of property are commonly referred as _____ - Ans>>> Lis pendens The quarterly interest payment on a loan is $3,600. The interest rate is 6%. What is the loan amount? - Ans>>> $240, A property is listed for $399,500. It sells for $395,600. The listing broker negotiated a 5% commission and agreed to keep 2% and give the selling broker 3%. How much did the selling broker receive? - Ans>>> $11, A point is.... - Ans>>> 1% of the loan amount. Broker Bob negotiates a commission of 5.5% on a $325,000 listing. The selling broker will receive 60% of the commission. If the property sells for list price, how much will Broker Bob pay the selling broker? - Ans>>> $10,725. The number of square feet in an acre of land is... - Ans>>> 43, John's property measures 1,720 feet by 594 feet. How many acres does John have? - Ans>>> 2345