Practice Quizzes Module 1

A special type of appraisal used for property tax purposes is called:

Assessment

When a home buyer leases a property with an option to buy, this would be an alternative financing option called a:

Lease Option

Conventional Loan

is made for homes that is neither an FHA or a VA loan.

Special Assesment

1.)Legal charge against real estate by a public authority to pay cost of public improvements such as street lights, sidewalks, street improvements. 2) In a common interest subdivision, a charge, in addition to the regular assessment, levied by the association against owners in the development, for unanticipated repairs or maintenance on the common area or capital improvement of the common area.

A real estate investment trust, which is also a real estate syndicate, requires at least this many investors according to federal law?

100

Under a reverse mortgage insured by the FHA, the term "permanently leaves home" refers to:

365 days of continuous absence

If a person who works for a non-profit organization wants to participate in an employer-sponsored investment plan that allows them to set aside tax-deferred income for retirement or emergency purposes, they would enroll in a:

403(b) plan

If a property is leveraged at 50%, this means that the debt on the property is which percentage of its value?

50% When a property is 50% leveraged, it means that there is a debt on the property 50% of its value. The owner's equity would be 50% in this case.

What is used to convey title to items sold in a business?

A bill of sale

An additional individual who is both obligated on the loan and is on the title to the property is called:

A co-borrower

An oral agreement is:

A contract that is binding in a court of law

What is an adjustable rate mortgage that allows the borrower to change the ARM to a fixed rate mortgage within a specific time?

A convertible ARM (adjustable rate mortgage)

A charge that usually is applied after fifteen days past due on a first mortgage is called:

A late charge

Heather has a written agreement with Erica that stipulates the conditions under which Heather may possess the property owned by Erica. The agreement outlines the specific period of time and when the payment is due. This agreement is:

A lease

If a homeowner obtains a home equity line of credit, they have obtained:

A mortgage loan

Loan origination is best described as:

A process by the lender in getting new loans

An agreement in which the owner of a property provides financing, often in combination with an assumable mortgage, is called:

A seller carry-back

A 1031 exchange is:

A tax-deferred exchange

An agent given power of attorney to act on behalf of a principal for an unlimited range of legal matters is called:

A universal agent

A contract that is binding between the buyer and the seller, as well as conditional delivery of transfer instruments to a third party is required for:

A valid escrow

If Jonathan, a realtor, slanders the business practices of another realtor, Janice, saying that she deals unfairly with clients and steers people to neighborhoods she thinks they can afford, this would be:

A violation of the National Association of Realtor's Code of Ethics by Jonathan

The Florida Real Estate Commission can impose disciplinary actions that include:

Administrative penalties

A real estate agent that has been selling properties under a broker for the last year but is NOT associated with the National Association of Realtors is considered to be a(n) __________________ but not a _____________________.

Agent, Realtor

Out of the following, which of these could be considered real property?

Airspace above the land

The Certificate of Reasonable Value is issued after:

An appraisal of a property being bought with a VA loan

In Florida, Section 475.278, F.S. of the agency disclosure requirements applies to agricultural property of ten acres or less, improved residential property of no more than four units, and an unimproved site intended for development as a residential duplex, but DOES NOT apply to:

An option to purchase all or a portion of a property improved with five or fewer residential units, rental of real property, and leasing of real property

A mortgage that can be assumed by the buyer when a home is sold is called an:

Assumable mortgage

If a contract includes promises by two parties to do something, the contract is:

Bilateral

What does a planned development consist of?

Both individual lots and lots owned in common

Someone that acts as an agent and brings two or more parties together for any type of transaction, while earning a fee in the end for their efforts, can be generally called a(n):

Broker

A series of ordinances enacted by a state or local governmental entity, establishing minimum requirements that must be met in the construction and maintenance of buildings is best known as:

Building Codes

In Florida, when prices of properties rise faster than rents, the gross rent multiplier:

Ceases to be reliable and needs to be adjusted

A title search would show:

Clouds

Detrich has just obtained a secured loan from his local bank. What would Detrich have had in order to back up the secured loan?

Collateral

When the appraised value of a property is given, it is based on:

Comparable sales

If Mr. Barry is applying for a loan that is not an FHA or VA loan, the type of loan that Mr. Barry is applying for is called a:

Conventional loan

A deed is a legal document that:

Conveys title to property

Population, Employment, and Demographics are all examples of influencers of what for a commodity?

Demand

David, a broker, has recently finalized a deal for the purchase of one of his listings. The buyer has given him earnest money. What must David do next with the earnest money?

Deposit the money in an escrow account

Another term for a title search is:

Due Diligence

PITI reserves must:

Equal the cash amount that the borrower would have to pay for principal, interest, taxes, and insurance for a predefined number of months

If a contract signed by two parties is bilateral but the contract is not executed, the contract is:

Executory

A lease constitutes in part an ______________ contract between the ________________ and the __________________.

Executory, landlord, tenant

The largest supplier of home mortgage funds is:

Fannie Mae

The term assemblage refers to the process of:

Gathering together two or more parcels to make the whole more valuable than the sum of its parts

Federal income tax liens, state income tax liens, and judgement liens are all examples of:

General liens

If a property sustains major physical damage from hurricane speed winds, the type of insurance that would cover this type of damage would be:

Hazard Insurance

The party that accepts the endorsed note from the original payee without knowledge of any defects is known as:

Holder in due course

A group that manages the common areas of a condominium project or planned unit development and owns title to the common areas in a planned unit development is called:

Homeowner's association

This will cover repairs to certain items like air conditioning or heating during the coverage period:

Homeowner's warranty

If the Federal Reserve Board lowered the reserves required of member banks, this would do what to the amount of money available in the national economy?

Increase the amount of money available in the economy

Adjustable rate loans are loans in which:

Interest rates vary over the term of the loan

Time, title, interest, and possession between two or more parties is a defining definition of:

Joint tenancy

A way of holding title to a property when the mortgagor does not actually own the property but instead has a recorded long-term lease on it is called a:

Leasehold estate

A firm that makes a loan or an individual that represents a firm that makes a loan is called a:

Lender

The term "mortgagee" refers to the:

Lender

Commissions in real estate are generally the largest for realtors (agents and brokers). Which of the following earn the second largest commissions?

Lenders

Government surveys use sections, townships, and ranges to describe what about land?

Location

In Florida, a Quitclaim Deed is best used for:

Making no warranties concerning the quality of the title being conveyed

If Walter, a real estate agent, fails to perform the due diligence to verify a seller's information, Walter can be held responsible for:

Misrepresentation

In Florida, the Time-Share Act applies to:

More than seven time-share periods over at least a three year period

If a buyer of a property wishes to move into the newly purchased home before the close of escrow, the agent/broker should:

Obtain written consent from the owner

What does the Real Estate Settlements Procedures Act cover?

One-to-four family mortgage loans

If Lucia, a buyer, is asking Daniel, a seller, to provide all or part of the financing she is asking for:

Owner Financing

What does mortgage life insurance cover?

Pays off the loan amount in the event of the borrowers death

A bequest is when:

Personal property is transferred by will

What does PITI stand for?

Principle, interest, taxes, and insurance

In Florida, if a real estate salesperson multiplies the taxable value by the tax rate, the salesperson has just determined the:

Property Tax

Airways above a property are:

Public domain

The down payment of a property is

Purchase price minus loan amount

This type of deed transfers without warranty, whatever interest or title a grantor may have at the time the conveyance is made:

Quitclaim deed

The Civil Rights Act of 1866 prohibits discrimination in real estate based on:

Race

Escrow disbursements can pay for:

Real estate taxes, hazard insurance, and mortgage Insurance

A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before it is offered for sale or lease to others is known as:

Right of first refusal

A property's bundle of rights can include which of the following:

Right to use, right to exclude, and right to possess

A technique in which a seller deeds property to a buyer for consideration, and the buyer simultaneously leases the property back to the seller is called:

Sale-leaseback

Uniqueness in real estate properties is sometimes called:

Situs

Anthony receives a tax bill that is related to cost per front foot and amount of benefit he receives. This type of tax bill would be called:

Special assessment

When Larry, a homeowner of his personal residence, is preparing his taxes at the end of the year and he decides to deduct the tax paid on his personal residence, this would be:

Tax-deductible Property taxes that are paid on a homeowner's personal residence are considered tax-deductible.

What special type of ownership is available in most non-community property states and is only available to married persons?

Tenancy by the Entirety

The National Association of Realtors (NAR) is affiliated with which of the following:

The American Institute of Real Estate Appraisers, Institute of Real Estate Management, and The Farm and Land Institute

The provision that states all prospective buyers are to be given the same opportunity to select available houses in their price range without restrictions because of race, color, religion, or national origin is found in which law?

The Federal Fair Housing Law

If a real estate agency relationship is to be enforceable, which of these needs to happen:

The agent must be a valid licensee, The principle must have the power to do what is being assigned,and Be authorized by a written agreement

When a loan is being paid off, over time:

The amount of interest decreases while the principle balance decreases

Under an adjustable rate mortgage, the index is:

The benchmark rate of interest that is adjusted periodically

Pedro has an adjustable rate mortgage. When the lender is referring to the "adjustment date", the lender is referring to:

The date in which the interest rate changes

Real property should have a higher rate of return than bonds or first trust deeds because of:

The higher denominations it comes in, added care required, and added time to market

When a borrower has a loan that is a "fixed-rate" loan, this means:

The interest rate does not change during the loan term

If you are looking at the "note rate", you are looking at:

The interest rate stated on a mortgage note

When a borrower has collateral in a home loan, what is the collateral referring to?

The property itself

The statement "present worth to typical users or investors of all rights to future benefits, arising out of property ownership" is best describing:

The value of a property

Disputes over the ownership of a property can be protected against by purchasing:

Title Insurance

What does the term "alienation" mean?

Transfer of title

In Florida, according to Florida statutes, if a person wishes to serve on the Commission they may do so for a period not longer than:

Two consecutive terms

A type of government loan that is NOT an FHA mortgage is called a(n):

VA loan

Government loans are guaranteed by:

Veterans Administration (VA)

If a mortgage note was executed and a new loan was established on the same property at a higher interest rate, the prepayment penalty could be:

Waived due to recouping losses through a higher interest rate, the understanding nature of the lender, and charged regardless of any interest rates

Collateral

a borrower's pledge of specific property to a lender, to secure repayment of a loan.

In Florida, a sales associate or broker-sales associate may only be employed by:

one broker or owner developer

Quit Claim Deed

to relinquish any interest in property which the grantor may have, without any warranty of title or interest.