National RE Exam

For conventional loans in which the loan-to-value ratio is in excess of a certain percentage, lenders generally require private mortgage insurance. What's this percentage?

80%

Jenna was surprised that the charming Tudor she was touring was still on the market. "I don't see anything bad on the disclosure," she told her agent, "and the price seems fine. Why do you think it hasn't sold?" Her agent Louise responded, "Well, I heard that UPS was opening a new air hub two miles away early next year." Why might this affect Jenna's or other buyers' interest in the property?

A UPS hub would mean many more flights overhead each day.

Which of the following features is most likely to be the cause of an adjustment to a comparable when preparing a CMA?

A busy street is less desirable for a residential property and more desirable for a commercial property. Other factors that could impact value are foreclosures, short sales, and cash-only sales.

Sam was putting up a basketball hoop by his driveway when one of the officers of the homeowners association walked by. "I'm so sorry," she said, "but you'll have to take that down. Basketball hoops in direct view of the street are prohibited." What is in place in Sam's subdivision that would prohibit this?

CC&Rs. Developers manage the visual and aesthetic details of a given neighborhood through covenants, conditions, and restrictions (CC&Rs).

You're showing a house when you notice piles of what looks like sawdust outside near the basement windows. This may be evidence of which pest?

Carpenter ants

As part of its penalty for violating antitrust law, Homes4Cheap, Inc. has been ordered to undergo court-ordered supervision. How long can this supervision last?

Court-ordered supervision may last as long as 10 years if a brokerage is guilty of violating antitrust law.

How are principal meridians and baselines used in the rectangular government survey system?

Each legal description in this system originates at the intersection of a principal meridian and a baseline.

What's the most common indicator of illegal property flipping?

Falsely inflated appraisal

Prior to a certain act's existence, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. What's this act called?

Housing and Community Development Act of 1974

In the eyes of a lender, when financing a residence, what advantage does an investor have over owner-occupied borrowers?

Investors can use rental income to qualify.

Which of these is an encroachment?

Jeff installed a sidewalk next to his driveway, six inches outside his property. An encroachment occurs when someone illegally places a structure or object on another person's property. Jeff's installation of a sidewalk off of his property is an example.

Krening Realty has been found guilty of running deceptive ads. Which of these statements about the potential penalty is NOT true?

Krening's broker may face jail time. Violations of a cease-and-desist order may result in penalties of up to $43,792 for each day a deceptive ad runs; civil penalties may be in the millions, depending on the violation. Violators may be required to run corrective or informational ads.

Which practice involves talking the consumer into refinancing over and over so a lender can charge fees?

Loan flipping

On a closing statement, ______ goes in the seller's credit column and the buyer's debit column.

Prepaids

Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin?

The Equal Credit Opportunity Act prohibits lender discrimination on the basis of an applicant's protected class status, such as national origin.

Your buyer clients have access to property tax information for each listing that you've given them. Why are they asking you about county tax assessment schedules?

The property taxes may change drastically after reassessment. Some property tax assessments are tied to market value and will only change when a property is sold, while others are reassessed on two-, three-, or five-year schedules. Property taxes may increase or decrease dramatically after reassessment, so knowing when this might happen is important for buyers to know.

In which of the following scenarios can landlords enter a rental unit without notice?

The tenant in the unit below reports water coming through the ceiling from the apartment.

Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true?

The two firms have agreed not to compete in one another's markets. Only an agreement to segment the market between competitors would be illegal market allocation.

What type of insurance is a form of indemnity insurance that can protect both the buyer and the buyer's lender?

Title insurance is a form of indemnity insurance that can protect both the buyer and the buyer's lender (via separately purchased policies).

How long does the borrower have to pay private mortgage insurance?

Until the borrower reaches a 22% equity position

Metes (measures)

the direction and distance of a line forming the boundary of the property