Chapter 9
Something that has value is known as a/an...?
Asset
Which of the following is an example of a credit bureau...?
Equifax Experian TransUnion
An appraisal determines an estimate of...?
Fair market value
One of the three major valuation methods, which determines the value of a property by applying a capitalization rate to a property's net operating income is known as the...?
Income capitalization approach
Which of the following is an example of a long-term liability...?
Liens Child support Taxes
Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...?
Marketable title
According to the sales comparison approach, if the comparable sale #1 includes a garage, and the subject property does not, what type of adjustment needs to be made...?
Negative adjustment
The division of certain settlement costs between a buyer and seller is known as...?
Proration
A property's NOI divided by the capitalization rate, equals the...?
Purchase price
A document which precisely shows the property lines, and size and location of improvements on a particular property, is known as a...?
Survey
When qualifying a borrower, the lender needs to verify which of the following...?
The borrower's employment status The borrower's income The borrower's assets and liabilities
Insurance to protect a real property owner or lender up to a specified amount against certain types of loss is known as...?
Title insurance
Which of the following is used at the start of the loan application process...?
Uniform Residential Loan Application
What is the most commonly used term on residential mortgages...?
30 years
A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title, is known as...?
Abstract of title
An opinion of value is known as a/an...?
Appraisal
This is a written statement, independently and impartially prepared by a qualified appraiser setting forth an opinion in a transaction, as to the market value of an adequately described property, as of a specific date...?
Appraisal
Which of the following are included as the buyer's charge on a closing settlement statement...?
Appraisal fees Credit reports Title insurance
Which of the following are included as the seller's charge on a closing settlement statement...?
Broker commissions Transfer taxes Recording fees
This is the rate of interest which is considered a reasonable return on the investment, and used in the process of determining value based upon net income...?
Capitalization rate
Under the Uniform Residential Loan Application, which of the following is considered an asset for the borrower...?
Cash deposits
A history of conveyances and encumbrances affecting the title of a property, which is used to determine how title came to be vested in current owner, is known as...?
Chain of title
Title that is encumbered or burdened with defects is known as...?
Clouded title
This is an analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land...?
Cost approach
Unique properties are typically valued using which appraisal method...?
Cost approach
The ability to deduct expenses on improvements made to income producing property is known as...?
Depreciation
When qualifying a borrower, the lender will do which of the following...?
Determine the ability of the borrower to repay Estimate the value of the property being used as collateral Research and analyze the marketability of title
The 'Site' section of the Uniform Residential Appraisal Report includes which of the following information...?
Dimensions of the subject property
Monies that are owed are considered...?
Liabilities
What information about the borrower must be included on the Uniform Residential Loan Application...?
Marital status
Assets minus liabilities equals an individual's...?
Net worth
Which of the following is an example of a liability...?
Outstanding loan balance
If an individual's assets exceed their liabilities, they are said to have a...?
Positive net worth
At closing, property taxes are ............between the buyer and seller?
Prorated
One of the three major valuation methods, which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions is known as the...?
Sales comparison approach
The objective of the Uniform Residential Loan Application is to identify which of the following...?
The property The borrower The loan amount requested by the borrower
The seller is primarily responsible for paying the broker's commission at closing...?
True
The value derived from the use of something is known as...?
Value-in-use
An exterior description of the subject property is listed under what section of the Uniform Residential Appraisal Report...?
Improvements
The 'Subject' section of the Uniform Residential Appraisal Report includes which of the following information...?
Legal description of the property
The Uniform Residential Loan Application includes which of the following information...?
Legal description of the property Names of the borrower and co-borrower The requested loan amount
An attorney may issue which of the following...?
Opinion of title