MSRE Fundamentals Final
The construction lender generally expects their loan to be paid off shortly after the issuance of a _____________blank from the local government that certifies the structure is safe for use. subordination agreement marketing agreement lease contract certificate of occupancy
certificate of occupancy
The two most important determinants of the classification of an office property are age and obsolescence. Which of the following classes includes office buildings that are older and reasonably maintained, but are below current standards for one or more reasons? class C office class A office class B office investment grade property
class C office
Placed under the umbrella of the Consumer Financial Protection Bureau as part of the Dodd-Frank Act of 2010, the Real Estate Settlement Procedures Act (RESPA) requires loan settlement information to be prepared on a special form known as the: "Your Home Loan Toolkit" booklet. closing disclosure. certificate of occupancy. servicing agreement.
closing disclosure
When the supply of space exceeds the demand, it is common for owners to provide the tenant with a period of free or perhaps reduced rent. This is commonly referred to as a(n): concession. tenant improvement allowance. expense stop. sublease.
concession
Contracts for sale may contain sections that cause implementation of the contract to depend on the successful completion of some prior action such as the buyer's ability to obtain financing on specified terms. This type of contract is commonly referred to as a(n): uniform settlement statement. equitable title. contract with contingencies. contract assignment.
contract with contingencies
Certain mortgage loans contain a due-on-sale clause, which gives the lender the right to terminate the loan at sale of the property. Which of the following types of loans is the most likely to contain a due-on-sale clause? Federal Housing Administration (FHA) loan Veterans Affairs (VA) loan conventional home loan an assumable home loan
conventional home loan
For most mortgage loans on commercial real estate, the right of prepayment is constrained through a prepayment penalty. Which of the following types of prepayment penalties requires a borrower to provide the lender with some combination of U.S. Treasury securities that will serve to replace the cash flows of the loan being paid off? defeasance prepayment penalty curtailment penalty prepayment lockout yield-maintenance prepayment penalties
defeasance prepayment penalty Defeasance involves the borrower providing the lender with a portfolio of U.S. Treasury securities. The purpose is to replace the cash flows of the loan being paid off, ensuring that the lender continues to receive equivalent payments.
For all but the largest of developers, the marketing and leasing of the project will be through an external broker. Given their special knowledge of the target market, it would be most beneficial for the developer to bring the broker into the development process during which of the following stages? operation construction financing design
design
According to the law of agency, real estate brokers are required to observe several duties as they act as an agent for an individual trying to buy or sell a property. Which of the following duties refers to a broker's obligation to be completely open and honest with the principal? loyalty confidentiality obedience disclosure
disclosure
Which of the following types of engineers is responsible for designing the power sources and distribution system? structural engineer civil engineer mechanical engineer electrical engineer
electrical engineer
One of the traditional requirements for individuals who wish to obtain a brokerage license has been to demonstrate financial capacity to cover damage judgments brought against them by clients. In order to address this concern, some states have required licensees to first obtain: errors and omission insurance. deposit insurance. private mortgage insurance (PMI). hazard insurance.
errors and omission insurance
When a buyer signs an offer to purchase a property, the broker receives earnest money from the purchaser amounting to 5 or 10 percent of the purchase price. Most states have laws requiring brokers to maintain a separate account for earnest money deposits more commonly referred to as a(n): commission account. insurance account. closing account. escrow account.
escrow account
Once a specific use has been chosen for a site, the first stage in the development process, often considered the "entry ticket to development," is: financing. construction. establishing site control. feasibility analysis.
establishing site control
There are a number of different types of listing contracts that can be used when marketing a property. Which of the following types of listings requires the broker to be paid a commission if any other broker, or even the owner, sells the property during the contract period? exclusive right of sale listing single listing open listing exclusive agency listing
exclusive right of sale listing
Which of the following loan clauses releases the borrower from liability for fulfillment of the mortgage loan contract? insurance clause exculpatory clause demand clause escrow clause
exculpatory clause An exculpatory clause is part of a contract that prevents one party from holding the other party liable for damages related to the contract. Exculpatory clauses are used quite often in purchases such as the ones included with an amusement park or plane ticket.
While uncertainties involving the multitude of players and stages in the development process provide a great deal of risk, market cycles tend to compound these risks. Out of the four phases of a market cycle, which would be the most desirable point for a developer to enter the market? peak expansion trough decline
expansion
When a developer decides to break down the project design into sequential phases and begins construction before the last phases of the design are complete, this procedure is more commonly referred to as: build-to-suit construction. fast-track construction. design-build construction. coordination construction.
fast track construction
In acting as an agent for another person, the broker carries several special responsibilities, which by law must be adhered to throughout the transaction process. These responsibilities constitute what is commonly referred to as a: fiduciary relationship. open listing relationship. subagency relationship. dual agency relationship.
fiduciary relationship A fiduciary relationship is a legal relationship of trust and confidence where the broker has a duty to act in the best interest of their client. This is the correct answer because the question mentions that the broker carries special responsibilities that must be adhered to throughout the transaction process, which aligns with the duties of a fiduciary.
The second stage of the development process requires an analysis of the project's feasibility. The developer will typically begin this stage of the development process with which of the following types of analysis? environmental feasibility legal feasibility financial feasibility political feasibility
financial feasability
Newer industrial parks have begun to specialize in providing space that can be configured to suit the diverse needs of various tenants. This type of industrial space is more commonly referred to as: warehouse. research and development. plant and factory. flex space.
flex space
Which of the following multifamily structures will typically consist of numerous two- to three-story buildings including a separate building containing a management office and clubhouse and is more common in suburban areas? garden apartments high-rise apartment buildings midrise apartment buildings condominiums
garden apartments
With a multitude of players involved in the development process, it is important to understand where they participate within the various stages of development. Which of the following individuals is the least likely to be involved in the design stage of development? general contractor civil engineer landscape architect land planner
general contractor
The construction budget has six main components: land costs, hard costs, construction soft costs, marketing soft costs, developer's fee, and total construction financing costs. Which of the following types of costs typically constitute the greatest proportion of the project's construction budget? land costs construction financing costs construction soft costs hard costs
hard costs
At the closing, the buyer will be credited for a number of costs that have been paid up-front (or will be paid after closing) as well as a number of prorated expenses that account for the period of time during which the seller occupied the house. All of the following items detailed in the closing costs involve credits that are commonly passed on to the buyer EXCEPT: earnest money. property taxes. hazard insurance premiums. mortgage interest.
hazard insurance premiums
In addition to the traditional four "core" property types, a growing number of "specialty" property types have attracted significant investment capital in recent years. Which of the following would be an example of a "specialty" property type? retail office infrastructure industrial
infrastructure
Under the _________blank a real estate broker is given the right to act on behalf of another individual or entity who is trying to buy or sell a property. fair housing law law of principals universal disclosure law law of agency
law of agency
Based on your understanding of the relation between risk and the phases of an income producing property's life, floor loans are most likely to be obtained in which of the following phases? This does not occur during any phase of an income producing property's life. lease-up stage stable operation phase development and construction phase
lease up stage
The developer will face a variety of costs throughout the project's life. Which of the following would be classified as a soft cost? cost of land labor cost of subcontractors for construction costs of materials legal fees of the permitting process
legal fees of the permitting process
Since the issues in many transactions are similar, brokers often use standard preprinted contract forms. Generally, the best standard form contracts are those prepared and approved by which of the following parties? web source of generic legal forms seller local Association of Realtors office supply firm
local Association of Realtors
The flexibility to prepay the principal on a mortgage loan differs significantly between commercial and residential mortgages. Which of the following clauses prohibits prepayment of the mortgage loan for a specified period of time after its origination? defeasance yield maintenance agreements curtailment lockout provisions
lockout provisions
After construction has been completed, a developer may decide to seek additional financing. If current interest rates are relatively high, but the developer expects them to decline in the near future, the developer would most likely seek financing in the form of a: subordination agreement. floor loan. take-out commitment loan. miniperm loan.
miniperm loan
State licensing laws generally prescribe two levels of real estate brokerage licensing: the broker license and the salesperson license. Which of the following responsibilities is an individual with a salesperson license permitted to do? handle money in trust for clients complete legal documents used in sales and leases in their own name own and operate a real estate brokerage business negotiate listing contracts or contracts for sale
negotiate listing contracts or contracts for sale
There are a number of different types of listing contracts that can be used when marketing a property. Which of the following types of listings allows property owners to list the property with more than one broker? discount listing exclusive right of sale listing multiple listing open listing
open listing
In some leases, the method used to share responsibility for operating expenses is a hybrid of the four basic lease types. For example, the inclusion of which of the following clauses calls for only increases in one or more operating expenses, relative to a base year, to become the responsibility of the tenant? subordination clause operating expense stop clause tenant improvement allowance clause operating expense escalation clause
operating expense escalation clause
Suppose that a development group would like to determine if the local zoning and land-use ordinances will permit the type of development they desire. However, they do not want to be obligated to purchase the property if they find that their proposed development will not be permitted. To gain control of the site without being obligated to perform, the development group should purchase which of the following? option floor loan fast-track ground lease
option
Since banks seldom loan 100 percent of construction costs, developers often turn to mezzanine financing to obtain necessary funds. With mezzanine debt, which of the following entities is typically pledged as collateral to the lender? construction materials ownership shares in the development entity personal assets of the developer land
ownership shares in the development entity
The majority of financing for the acquisition of land for development is most likely to come from which of the following parties? developer banks pooled equity of a limited liability corporation (LLC) insurance companies
pooled equity of a limited liability corporation
Once possession and control are conveyed in a lease agreement, the owner must provide the tenant with uninterrupted use of the property without any interference from any entity that may threaten to impose upon the tenant's leasehold interest in the property. In other words, the tenant is entitled to which of the following? quiet enjoyment concession expansion option tenant improvement
quiet enjoyment
Based on your understanding of the concept of a lockout provision, lenders are able to reduce their exposure to which of the following risks through its use? default risk reinvestment risk interest rate risk liquidity risk
reinvestment risk
Which of the following lease options can serve to mitigate exposure to interlease risk for the tenant? expense stop option percentage rent option relocation option renewal option
renewal option
When the seller or buyer in a contract for sale fails to perform (e.g., breach of contract, nonperformance, or default), the buyer or seller has a variety of remedies. One such remedy is to agree to return both parties to their precontract status. This remedy is most commonly referred to as: specific performance. earnest. rescission. damage.
rescission.
In an open-listing contract, an individual broker is entitled to a commission if: she markets the property, but it does not sell she procures the buyer of the property. anyone, excluding the seller sells the property. anyone, including the seller sells the property.
she procures the buyer of the property.
The expertise of several types of engineers must be coordinated by the architect in bringing together the final structure design. Which of the following types of engineers is responsible for specifications to achieve safety and stability for a structure's foundation? civil engineer soils engineer structural engineer mechanical engineer
soils engineer
In a buyer brokerage relationship, the relation between the buyer broker and the buyer-principal is typically classified as which of the following: special agency relationship. dual agency relationship. subagency relationship. "arm's length" relationship.
special agency relationship
When the seller in a contract for sale fails to perform (e.g., breach of contract, nonperformance, or default), the buyer has a variety of remedies. One such remedy is to appeal to the court to force the defaulting seller to carry out the contract. This remedy is most commonly referred to as suing for: damages. rescission. specific performance. earnest.
specific performance
Even after a property goes into foreclosure, it is still possible for the borrower to reclaim the property as long as they produce the outstanding mortgage balance and all foreclosure costs incurred to that point. In a state such as Georgia, this right only extends to the date of the foreclosure sale. When this occurs, this right is more commonly referred to as: equity of redemption. strategic default. statutory redemption. substantive default
statutory redemption. a homeowner can redeem the foreclosed property within three months to one year if the foreclosure was judicial.
Which of the following types of engineers is responsible for determining the requisite skeleton to maintain the building's integrity? mechanical engineer civil engineer structural engineer soils engineer
structural engineer
When securing a new tenant for a commercial rental property, the owner of the property might incur an additional expense that amounts to the cost of refurbishing the rental space to meet the needs of the tenant's business. The allocation of money for this added expense is more commonly referred to as a(n): tenant improvement allowance. sublease. expense stop. concession.
tenant improvement allowance
Although the function of commercial brokerage is the same as that of residential brokerage, the activities of commercial brokers usually differ considerably from those of residential brokers due to fundamental differences in these two markets. All of the following statements regarding commercial brokerage are true EXCEPT: Commercial brokers are often required to lower their commission in order to negotiate compromises between buyers and sellers when they reach an impasse over price. An important part of the commercial broker's service is to provide the prospective buyer with reports that enable him to complete due diligence for the property. The parties in commercial mortgage transactions are typically less knowledgeable than those in residential transactions. Relative to residential transactions, commercial transactions tend to be larger.
the parties in commercial mortgage transactions are typically less knowledgeable than those in residential transactions.
The effective rent calculation is a common measure used to compare the true cost of one lease to another. While there are a number of limitations to this methodology, the effective rent calculation captures: the time value of money. re-leasing costs. interlease risk. the advantages associated with lease flexibility.
the time value of money
It is possible to have a secured real estate loan without a mortgage through the use of a contract for deed. In contrast to the standard real estate sale, which of the following events occurs after the closing when dealing with a contract for deed? offer acceptance possession of the property passes to the buyer title to the property passes to the buyer
title to the property passes to the buyer
The rental income generated by a lease can depend significantly on the proportion of property-level operating expenses paid by the tenant. In which of the following types of leases is the tenant responsible for all operating expenses? gross lease triple net lease net lease net-net lease
triple net lease
Which of the following core property types includes buildings designed for the temporary storage of goods such as inventory, company records, and excess raw materials? office apartment warehouse retail
warehouse
In general, most contracts - including a real estate contract - can be assigned. All of the following statements regarding assignment are true EXCEPT: if buyers of real estate assign the contract, the new buyers may pay the agreed upon price and obtain title to the property. any type of personal performance contracted by one party cannot be assigned without that party's permission. land contracts are not assignable without the owner's permission. when buyers assign their rights to someone else, they escape liability under the original contract.
when buyers assign their rights to someone else, they escape liability under the original contract.
Jonathan recently sold his home and was able to take home $423,000 after paying the real estate broker's commission of 6%. If the buyer was ultimately found through a buyer broker, the dollar commission will need to be split between the listing broker and buyer broker. If the buyer broker is entitled to 40% of the commission, what is her share of the commission rounded to the nearest dollar? $27,000 $13,500 $10,800 $16,200
$10,800
If property owners fail to pay their taxes in a timely fashion, this can create a first lien on the mortgaged property. In order to protect against this, lenders often require that borrowers add what fraction of their estimated tax bill to their required monthly mortgage payments? 1/4 1/6 1/12 1/2
1/12
While the risks of construction lending may be less in a number of respects than those associated with land acquisition, banks still require a premium in their lending rate as compensation for the risks involved. For construction loans, banks typically require a premium above the underlying interest rate (e.g., SOFR) that ranges from: 150-250 basis points. 0-50 basis points. 250-350 basis points. 50-150 basis points
150-250 points
Since hazard insurance premiums are paid up-front, the buyer will have to reimburse (credit) the seller a portion of the premium at the closing. Suppose that the insurance policy's coverage began on December 15th of the prior year and the property transaction is set to close on March 16th of a 365-day year. The premium paid originally by the seller was $250. If the coverage will expire as of the end of day December 14th in the current year, what is the dollar amount that the buyer must credit the seller? $250.00 $62.33 $187.67 $0.00
187.67
The construction lender generally expects his or her loan to be paid off in: 5-10 years. more than 10 years. less than 1 year. 2-3 years.
2-3 years
In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan is insured by the FHA or guaranteed by the VA, or when the loan will be sold to one of the federally related secondary mortgage market agencies, an estimate of loan costs must be provided by the lender within: 5 business days. 90 calendar days. 30 calendar days. 3 business days.
3 business days
If a property transaction is scheduled to close on May 14th, calculate the individual tax responsibility for the buyer if the total tax owed at the end of the year is $5,000. For this problem, assume that we are dealing with a 365 day calendar year. $5,000.00 $1,821.92 $3,178.08 $0.00
3,178.08
A developer's selection of an architect is a vital step in the development process as the architect fulfills a number of important roles throughout the life of the project. As compensation for contributions in the design phase, the architect is often given a percentage of the construction cost. For moderately complex designs, the average compensation will be: greater than 10%. 3 to 7%. 7 to 10%. 1 to 2%.
3-7%
Certain closing costs will be prorated to account for the period of time during which the seller occupied the house. If a transaction is scheduled to close on May 17 (136 days into a 365-day year), calculate the amount that the buyer will be credited if the particular closing cost in question is estimated to be $1,000 for the entire year. $1000 $182.19 $372.60 $624.66
372.60
The recent emergence of discount brokerage services has had a modest effect on the price of brokerage services. The average commission that a broker could expect to receive today would most likely range between: 1-2%. 5-6%. 7-10%. 3-4%.
5-6%
Since property taxes are paid in arrears, the buyer will be responsible for paying them after closing. Suppose that the closing date on the home for sale is February 28th of a leap year (e.g., 2012, 2016, etc.). How many calendar days would the seller be responsible for when calculating his/her share of the property tax owed for the year in which the home was sold? 307 days 58 days 308 days 59 days
58 days
When a borrower defaults on a mortgage loan, his or her credit record will be adversely affected. While borrowers can recover from this reduction in their credit score, if a default goes into the borrower's records it will remain for: 6 months. 7 years. 5 years. 1 year.
7 years
Given the following information, calculate the effective monthly rent payment: Lease Term: 10 years Concession: 1 year free rent to be spread over the term of the lease Rental Space: 5000 square feet Rental Rate: $20 per square foot per year Landlord's discount rate: 10% $5,901 $10,122 $4,676 $7,081
7,081
Violations of the requirements of a note that do not disrupt the payments on the loan tend to be viewed as "technical" defaults. In practice, how many days must a payment be overdue for lenders to treat a default as serious (i.e., a substantive default)? 30 days 90 days 60 days one day
90 days
Rent for residential units is typically quoted as: an annual cost per square foot. a dollar amount per year. a dollar amount per month. a monthly cost per square foot.
A dollar amount per month
In the event a borrower defaults on the loan obligation, which of the following clauses enables the lender to declare the entire loan balance due and payable? exculpatory clause acceleration clause insurance clause escrow clause
Acceleration Clause
Which of the following duties refers to a broker's obligation to keep the principal informed about financial aspects of their assignment? loyalty accounting skill and care disclosure
Accounting
In contrast to rent for residential units, rent for U.S. commercial properties is typically quoted as: a dollar amount per year. an annual cost per square foot. a monthly cost per square foot. a dollar amount per month.
Annual cost per square foot
The risk of bankruptcy tends to travel with the risk of foreclosure since both can result from financial distress. Known popularly by its section in the Federal Bankruptcy Code, which of the following types of bankruptcy is a court-supervised workout for a troubled business? Chapter 1 bankruptcy Chapter 13 bankruptcy Chapter 7 bankruptcy Chapter 11 bankruptcy
Chapter 11 Bankruptcy Chapter 11 Bankruptcy is the type of bankruptcy which is a court-super viewed work out for the troubled organization or business. This version of bankruptcy provide the debtor a fresh start However, the terms are subject to the debtor's fulfillment of its obligations based on the plan of business
Known popularly by its section in the Federal Bankruptcy Code, which of the following types of bankruptcy is the traditional form of bankruptcy wherein the court simply liquidates the assets of the debtor and distributes the proceeds to creditors in proportion to their share of total claims? Chapter 1 bankruptcy Chapter 13 bankruptcy Chapter 7 bankruptcy Chapter 11 bankruptcy
Chapter 7 bankruptcy Chapter 7 provides relief to debtors regardless of the amount of debts owed or whether a debtor is solvent or insolvent. A Chapter 7 Trustee is appointed to convert the debtor's assets into cash for distribution among creditors.
Based on your understanding of the factors that impact effective rent, which of the following choices best depicts the impact that concessions or tenant improvements paid by the owner and operating expense reimbursements or other lease expenses paid by the tenant would have on effective rent, respectively? Concessions or tenant improvements paid by the owner lower effective rents; operating expense reimbursements or other lease expenses paid by the tenant increase effective rents Concessions or tenant improvements paid by the owner lower effective rents; operating expense reimbursements or other lease expenses paid by the tenant lower effective rents Concessions or tenant improvements paid by the owner increase effective rents; operating expense reimbursements or other lease expenses paid by the tenant lower effective rents
Concessions or tenant improvements paid by the owner lower effective rents; operating expense reimbursements or other lease expenses paid by the tenant increase effective rents
When the principal in an agency relationship delegates the power to act within the confines of a business or employment relationship, the agent is more commonly referred to as a: general agent. dual agent. universal agent. special agent.
General Agent
In commercial leases, rents do not necessarily have to be kept constant over the life of the lease term. One option is for there to be pre-specified increases in the contract rental rate over time, sometimes referred to as "step-ups" or "escalations." This type of rent treatment is commonly referred to as: indexed rent. flat rent. graduated rent. percentage rent.
Graduated Rent
Which of the following acts was passed out of concern for abusive predatory practices in subprime lending? Home Ownership and Equity Protection Act (HOEPA) Truth-in-Lending Act (TILA) Equal Credit Opportunity Act (ECOA) Real Estate Settlement Procedures Act (RESPA)
Home Ownership and Equity Protection Act (HOEPA) HOEPA protects consumers from deceptive and unfair practices in home equity lending by establishing specific disclosure requirements for certain mortgages that have high rates of interest or assess high fees and points.
Critical to any listing contract is the question of when the broker becomes entitled to a commission. Traditionally, the broker is still entitled to a commission in all of the following scenarios EXCEPT: If both the buyer and seller sign a contract but then agree to cancel it. If a contract is contingent upon the buyer obtaining financing and the buyer is unable to do so. If the seller refuses to sell upon being presented with an offer meeting the original terms and conditions. If the seller cannot deliver the property for any reason due to his or her fault.
If a contract is contingent upon the buyer obtaining financing and the buyer is unable to do so.
The market determined interest rate that is the "moving part" in an adjustable rate mortgage is more commonly referred to as the: index rate. cap rate. margin. teaser rate.
Index Rate Index rate is the rate which will be tied to a specific index and it will be benchmarked against the specific index so when the interest rate in the specific benchmark will be moving the interest rate portion, the adjustable rate mortgage will also move.
Ownership of a freehold estate is referred to as: legal title. consideration. equitable title. conveyance of title.
Legal Title
In certain states, such as the state of Florida, the transfer of title to the lender does not occur until the borrower defaults. These states are referred to as: conforming states. lien theory states. title theory states. nonconforming states.
Lien Theory States In lien theory states, the borrower holds the title to the property.
In many commercial real estate loans, the lender cannot hold the borrower personally liable in the event of a default except for environmental contamination, fraud, or misappropriation of funds.. Such loans are commonly referred to as: nonrecourse loans. conforming loans. nonconforming loans. recourse loans.
Nonrecourse loans A non-recourse loan refers to a type of loan wherein if borrowers renege on their obligation to settle the outstanding loan and allied expenses, the lender cannot follow or go after the borrower personally to get the debt settled.
In certain circumstances, mutual assent between the contracting parties may be broken, thus invalidating the contract. Which of the following defects to mutual assent involves compelling a person to act by the use of force? One of the parties is under menace. One of the parties is under undue influence. One of the parties is under duress. One of the parties is committing fraud.
One of the parties is under duress
Which of the following defects to mutual assent involves the abuse of the control that one person has over another? One of the parties is under duress. One of the parties is under undue influence. One of the parties is under menace. One of the parties is committing fraud.
One of the parties is under undue influence.
Which of the following contract elements is an additional requirement that must be satisfied in a contract for sale of real estate that is not necessarily a part of other contracts? competent parties consideration legal objective proper description of the property
Proper description of the property
Federal and state laws prohibit discrimination in housing. However, exemptions do exist depending on the particular type of property that is being considered. All of the following activities could be considered exempt in specific scenarios EXCEPT: refusing to sell or rent a single-family home based on religion provided the owners do not employ the services of a broker or agent. refusing to sell or rent to persons based on age. refusing to sell or rent to a person because of race. refusing to sell or rent based on familial status (i.e. having
Refusing to sell or rent to a person because of race.
A considerable number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. Since 2021, the index rate increasingly used in the United States is the: one-year U.S. Treasury constant maturity rate. London Interbank Offered Rate (LIBOR). prime rate. Secured Overnight Financing Rate (SOFR).
SOFR The Secured Overnight Financing Rate (SOFR) is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities.
In the basic principal-agent relationship of real estate brokerage, real estate brokers act in the capacity of a: undercover agent. universal agent. general agent. special agent.
Special Agent
Most adjustable rate mortgage (ARM) loans have been marketed with a temporarily reduced interest rate commonly referred to as a: rate cap. teaser rate. prepayment rate. payment cap.
Teaser Rate Teaser interest rate charged to a customer during the initial stages of a loan. The rate, which can be as low as 0%, is not permanent and after it expires a normal or higher than normal rate will apply.
The importance of brokers in the real estate market is often overlooked. In the absence of a real estate broker, one would expect all of the following to be true EXCEPT: The asking price would most likely be higher, on average, than in the case where a broker was involved because the seller is in total control of the sale. It would be more difficult for an individual to buy a property. Buyers would be more inclined to negotiate prices downward by at least the value of a typical commission. A seller would most likely rely on a "thinner" market (i.e., the seller has access to fewer prospective buyers).
The asking price would most likely be higher, on average, than in the case where a broker was involved because the seller is in total control of the sale.
In a mortgage loan agreement, the financial rights and obligations of borrower and lender are detailed in the: mortgage (Deed of Trust). listing contract. note. assignment of mortgage.
The note The note or promissory note, is essentially a written promise to repay a specified sum of money at a specified date or on demand, along with the interest rate and the maturity date.
Which of the following statements best describes the owner's and tenant's responsibility for operating expenses when there is an expense stop clause in the lease contract? The tenant is responsible for operating expenses up to the expense stop; expenses above the expense stop become the responsibility of the landlord. The tenant is responsible for operating expenses up to and above the expense stop. The owner is responsible for operating expenses up to the expense stop; expenses above the expense stop become the responsibility of the tenant. The owner is responsible for operating expenses up to and above the expense stop.The owner is responsible for operating expenses up to the expense stop; expenses above the expense stop become the responsibility of the tenant.
The owner is responsible for operating expenses up to the expense stop; expenses above the expense stop become the responsibility of the tenant.
Both parties to a valid and enforceable contract must provide consideration. In a contract for the sale and purchase of real estate, which of the following depicts the seller's consideration? The money or goods that constitute the purchase price. The option to present a counteroffer. The property to be given up. A meeting of the minds with the buyer.
The property to be given up
In certain states, such as the state of Georgia, there is a temporary transfer of title to the lender at the time the mortgage loan is made. The borrower then would obtain the rights to the title once the loan has been repaid. These states are referred to as: title theory states. nonconforming states. conforming states. lien theory states.
Title Theory States In title theory states, the borrower places the property's title into trust as a security for the loan.
Of the following choices, which best describes the operating expenses that you would expect to be paid by the property owner in a net-net lease agreement? all operating expenses except property taxes and insurance all operating expenses except property taxes all operating expenses no operating expenses
all operating expenses except property taxes and insurance
The large and generally well-known retailers who draw the majority of customers to a shopping center are more commonly referred to as: chains. anchors. strips. outlets.
anchors
Federal Housing Administration (FHA) loans are typically considered _____________blank, which means that the buyer can preserve the existing loan by signing the note as long as the buyer continues to qualify for the loan. recourse loans subprime loans assumable loans nonrecourse loans
assumable loans: The definition given in the question is consistent with the characteristics of assumable loans. Therefore, this is the CORRECT Option. Explanation: Assumable loans allow a new buyer to take over the mortgage terms from the previous owner, assuming they qualify. This means that if the original borrower sells the home, the new buyer can simply "assume" the existing mortgage, preserving its terms and rates.
Suppose that a recent purchase of a residential home has been facilitated equally by a listing agent and a buyer broker. Based on your understanding of how commissions are determined, which of the following scenarios best describes who would be entitled a commission upon sale of the property (Note: For simplicity, you can assume the seller did not procure the buyer on their own)? both the listing broker and the buyer broker only the buyer broker neither the listing broker nor the buyer broker only the listing broker
both the listing broker and the buyer broker
Since the seller often has utilized the property for a portion of the year in which the transaction is being made, certain costs associated with the property will be prorated at the closing. All of the following items are subject to being prorated EXCEPT: broker commission. prepaid rent. property tax. mortgage interest.
broker commission