real estate ii

Mary is getting a $95,000 loan at 7.5 percent and will pay 2 discount points. What will the effective interest rate be?

7.75%

Making home improvements, paying college tuition, paying medical expenses, and/or taking a vacation would all be good reasons to utilize a

?

What is the major problem with balloon payments?

?

What is the risk in a licensee using pending sale prices as comparables?

?

When closing on rental property, to do the monthly proration, rents are always

?

Which of the following have an influence on a commercial real estate specialization?

?

If a licensee has prepared a CMA using the differences within the four factors of location, physical characteristic, sale date, and financing terms, which items, due to these differences, are adjusted in the comparables?

?Active price or expired price

Lenders require a seller to deliver a

?marketable title.

What is a housing concept that produces a high density of residential housing units, a maximum use of open spaces, and greater development flexibility?

A planned unit development

What is the lease called due which the tenant agrees to pay all taxes, insurance, maintenance and repairs?

A triple net lease

Which of the following terms refer to those uses that are automatically allowed by the zoning code?

As of right zoning

Which of these items would not need to be prorated on the day of closing?

Attorney fees

Which of the following information the escrow holder does not need to collect along with the purchase agreement?

Buyer's annual earnings

How can a property owner avert the danger of losing title by adverse possession?

By inspecting the property and evicting any trespassers found

The Texas Appraiser Licensing and Certification Board identifies five levels of real property appraisal classifications: Appraiser Trainee, Provisional Licensed Real Estate Appraiser, Licensed Real Estate Appraiser, Certified Residential Real Estate Appraiser, and

Certified General Real Estate Appraiser.

Arby's builds a new restaurant on the same street as Burger King and McDonalds. What principle of value does this illustrate?

Competition

What type of deed is used to convey property to a third party trustee as collateral for a loan?

Deed in trust

Which of the following covenants are not included in a lease agreement?

Demise clause

Which type of leasehold estate requires proper notice to terminate and has no definite end date?

Estate from period to period

Freddie Mac assembles loans into a pool of mortgages then issues a security backed by these mortgages. This security is called a

Freddie Mac Guarantee of Loans.

Complete the following formula: Monthly Rent x GRM =

Gross Rent Multiplier

What must NOT the adverse possessor to do to claim legal title

In some states to pay taxes

Which of these items would be a credit to the buyer on the settlement statement?

Loan amount

Jim dictated his will to his brother. This would be known as what type of will?

Nuncupative

Which of the following items are paid in ADVANCE?

Rents and insurance

What is one major difference between residential and commercial leases?

Residential leases are typically shorter than commercial leases.

Which type of residential property is typically the least profitable to manage?

Single Family Homes

What type of inspection checks the foundation elements, bearing walls, beams, floor slabs, framing, and crawlspace areas?

Structural Inspection

When examining Real Estate Mortgage Investment Conduits (REMIC's), paying a defined principal payment schedule at a single, constant prepayment speed refers to

Target Amortization Classes.

Which of the following will tell the licensee what competencies they need to have and what authority will be given to them?

The state licensing authority

In an estate in trust, who holds and manages the estate for the benefit of another party?

The trustee

What aspects about a property site should a licensee consider when collecting information about a seller's property for analysis?

Title consideration, Home interior design, Area

What makes it possible for there to be a free exchange of development rights without having to buy or sell land?

Transfer of development rights

A licensee in the process of completing the CMA has a comparable that used a conventional loan to finance the purchase of a property. Should he be concerned about making price adjustments on the comparable?

Yes, this is unusual financing and could effect pricing.

A prorated expense on the settlement statement is

a debit to one party and a credit to the other.

Which type of mortgage usually includes all the personal property and appliances that are installed on the property?

a package mortgage

A statement of the status of all recorded liens and encumbrances affecting the property can be found in the property's

abstract.

A utility right of way, a neighbor's fence encroaching, and a driveway easement through the property are all examples of

an encumbrance.

Depreciation can be curable or incurable and refers to a loss in value of a property due to

any cause

What do retail properties deal with?

buying and selling commodities/goods

Several fast food chain restaurants are located on the same major street attracting more buyers than one fast food restaurant would if it stood alone. In valuing the property, this is an excellent example of the principle of

contribution.

What should you do to convert fractions to decimals?

divide the numerator by the denominator

What does a buyer receive until the debt is fully paid in case of the land contract?

equitable title

The Federal Housing Administration, Department of Veterans Affairs, and the Texas Veterans Land Board all offer

government-backed loans.

A trust that gains profits from rental income, capital gains, mortgage interest and placement fees is a/an

hybrid trust.

Construction loans, home improvement loans, and manufactured housing loans are all loans typically made by

mortgage banks.

Detached units of residential properties found in subdivisions, neighborhoods or in cluster home developments, where the owners share outdoor and common areas. What does this description stand for?

multifamily housing

Real estate property taxes are

not tax deductible.

RESPA covers loans on

one- to four-family residential property.

Private Mortgage Insurance (PMI) is designed to

protect the lender if the borrower defaults on the loan.

A lender was requiring an applicant to pay a higher down payment because of the neighborhood they lived in. The lender is practicing

redlining

What approach collects property information and then uses the principle of substitution to determine the property's value?

sales comparison approach

John and Mary sold a piece of property adjoining their current property. The deed stated that a home over one story could not be built on the property sold. This restrictive covenant would be a

severable property restriction.

A buyer will not pay more for a home than what the buyer would pay for another home that is equally attractive and available. This defines the principle of

substitution.

Which of the following is not a valid reason for lease termination?

tenant dies

A joint venture is set up for a limited purpose. Because of this it makes it different than a general partnership due to

the implied authority of the members is more limited.

What does 80-10-10 financing serve for?

to avoid paying of PMI

What does the abbreviation TIP stand for?

total interest percentage

Ownership in severalty is

when a single party owns the fee or life estate.