Quiz 3
Which of the following statements in a broker's advertisement for real property would be compliant with Regulation Z requirements
"seller will pay $1,000 toward a buyer's closing costs"
A building was sold for $115,000. Down payment in the amount of $15,000 was deposited in escrow, and the buyer obtained a new loan for the balance of the purchase price. The lender charged two discount points. What was the oral mount charged to the buyer for points in this purchase
$2,000
In the sales comparison approach, what is the indication of value for the subject property with the info given? The subject property is a 2,000 square foot home with 3 bedrooms, 2.5 baths, and a 1 car garage. The comparable property is a 2,150 square foot home in the same neighborhood with 3 bedrooms, 2 full baths and a 2 car garage. The comparable property sold for $215,000 last week. The market values additional square footage at $80 per square foot; full baths are valued at $4,000 and half baths at $2,500; 2 car garages are with $10,000
$200,000
What is the max loan for which a borrower can qualify if his annual income is $84,000, his monthly recurring debt is $746, his estimated monthly taxes and insurance escrow amount is $285, his loan factor is 6.32, and the qualifying ratios are 28 and 36
$235,601 PI + TI + D ----------- GMI = .36
In NC, a general contractor's license is required for constructing any building for others values at or above
$30,000
What is the max allowed gain from the sale of their longtime primary residence that may be claimed as tax-exempt by husband and wife filing jointly
$500,000
A buyer obtained a 30-year fixed-rate loan for $72,000 at a 5% annual interest rate. If the monthly debt service payment is $386.64, how much interest rounded to the nearest dollar would the buyer pay over the lifetime of the loan
$67,190 384.64 -------- mo. = PI 360 x 384.64 = 139,190.40 139,190.40 - 72,000 = 67,190 Int
A buyer us under contract to purchase a home for $370,000 and has qualified for an 80% loan-to-value mortgage loan at an annual interest rate of 4.5%. How much will the buyer owe for the 1% loan origination fee and 1 1/2 loan discount points associated with this loan package
$7,400
The basic components of an eve include all of the following EXCEPT
-ridge boards -fascia boards -soffits frieze boards
A buyer is under contract to purchase a home for $275,000 and has qualified for an 85% loan-to-value mortgage loan. How much will the monthly principal and interest payment be, using a loan factor of 6.32 per $1,000 borrowed
1,477.30
A married couple have been living in their retirement condominium at the shore for the past two years. Their former primary residence for 25 years is being leased to a tenant. When the couple sells their house, how much of the capital gain under $500,000 will be excluded from taxation
100%
A married couple has a nation home that they rent out to seasonal tourists for several months out of the year. Some of their vacation property expenses may be tax deductible if they do not personally use the property more than
14 days a year
A homeowner listed her real estate for sale at $100,000. If her cost was 80% of the listing price, what will her percentage of profit be if her real estate is sold for the listing price
25%
Which of the following properties would be the BEST comparable of ran appraiser to use for an appraisal of a two-story subject property with 3 bedrooms and 2 baths in a subdivision near the downtown area of a city
3 bedrooms, 2 baths two-story house in a nearby similar subdivision
A building is valued at $215,000 contains four apartments that rent for $470 each per month. The owner estimates that the net operating income is 65% of the gross rental receipts. What is the capitalization rate
6.8%
If the yield on a 30-year fixed-rate loan is 7 1/4% and a mortgage lender charges one point, what is the interest rate on the mortgage note
7 1/8%
The federal agency that is tasked with the oversight of the public welfare in connection with lending practices is the
Customer Financial protection bureau
The agency responsible for the enforcement of the Federal Fair Housing Act is the
Department of Housing and Urban Development
Discrimination based on familial status was prohibited with the passage of the
Fair Housing Amendments Act of 1988
The Americans with Disabilities Act requires that
Reasonable accommodations be provided to people with disabilities.
A broker employs a provisional broker that is Latino. The broker tells this provisional broker to work only with other Hispanics and to solicit listings only in predominantly minority neighborhoods. Which of the following is TRUE
The provisional broker's rights, and those of the clients and/or customers, have been violated by the broker
If the proceeds from the sale of a foreclosed property are less than the amount required to satisfy the outstanding mortgage loan debt and legal expenses, the grantor may be responsible for
a deficiency judgment
The administrative fee charged by the lender to make a loan is
a loan origination fee
All of the following statements about short sales are true EXCEPT -the lien holder cannot be forced to participate in the short sale -the borrower may be taxed on any debt that is forgiven by the lienholder -the lienholder can file for a deficient judgement for debt not paid by the sale of the collateral property -a sales contract has not been created until the lienholder agrees to the short sale contract terms
a sales contract has not been created until the lien holder agrees to the short sale contract terms
Which of the following statements about VA mortgage loans is TRUE
a veteran borrower must use a Certificate of Eligibility to determine what portion of the loan the VA will guarantee
The clause in a deed of trust or mortgage that permits the lender to declare the entire unpaid balance immediately due and payable upon default by the borrower is the
acceleration clause
A broker is preparing a comparative market analysis (CMA) for a subject property with 3,200 square feet. A comparable property has 2,750 square feet. The estimated value of 450 additional square feet is $22,500. The broker should
add 22,500 to the sales price of the comparable property
The income approach to value would be MOST important in the appraisal of
an office building
mortgage loan discount points
are changed to meet the required investor yield
The illegal and discriminatory practice of soliciting listings by making statements intended to cause alarm in current property owners about the entry or possible entry of minority residents into the neighbor is called
blockbusting
A mortgage broker generally offers which of the following services
bringing the borrower and the lender together
an appraiser employs the income approach to make use of
capitalization
A buyer who is Muslim instructs the broker to show the. buyer properties that are located in neighborhoods that have a high number of Muslim residents. If the broker complies with this client's instructions, the broker will be in
compliance with the Civil Rights Act of 1866, but in violation of the Federal Fair House Act
In the Market Data Approach to value, Te principal factors used to select comparable properties are
date of sale, location, physical features, and terms and conditions of sale
In the income approach, which of the following is NOT considered when calculating the net operating income
debt service
Regarding Z of the Truth-In-Lending Act requires that lenders
disclose mortgage loan finance charges and interest rate to borrower
which of the following is generally considered to be an incurable form of depreciation
economic obsolescence
An appraiser is MOST commonly asked to
estimate makes value
A four-bedroom house with one bathroom might be considered by current standards to be
functionally obsolete
The pledging of property as security for payment of a loan is
hypothecation
When appraising a commercial property, the appraiser is MOST concerned with the
income generated by the property
If a homeowner itemizes deductions when filing a federal income tax returns, which of the following expenses can probably be deducted
interest payments on the home loan
A promissory note
is the primary evidence of a debt
The basic components of a rood include all of the following EXCEPT -ridge boards -joints -eaves -rafters
joints
Which of the following is an example of economic obsolescence for a residence
located near a waste management facility
Which of the following has the greatest effect on real property values
location
Mortgage lenders want assurance that future real estate taxes will be paid. The MOST common way to do this is to require the borrower to
make installment payments into an escrow account
How is the loan-to-value ration calculated
mortgage amount / sales price = loan-to-value
When preparing an annual income tax return, a homeowner may be able to deduct all of the following EXCEPT -real estate taxes -mortgage interest on a first home -mortgage interest on a second home -mortgage interest on a third home
mortgage interest on a third home
The wall framing includes all of the following EXCEPT -studs -headers -top plate -piers
piers
Fannie Mae
purchases FHA loans in the secondary mortgage market
The Civil Rights Act of 1866, prohibits discriminations based one a person's
race
The MOST expensive style house to build is the
ranch
Which of the following is illegal
refusing to hire an otherwise qualified person because he is wheelchair-bound
Which of the following is a legal property management practice under the Federal Fair Housing Act as amended in 1988
requiring a credit report and a criminal background check for all applicants
The basic components of a foundation include all of the following EXCEPT -ridged boards -footings -piers -concrete slabs
ridged boards
The market price of real estate is generally the same as the
sales price
With regard to Fair Housing requirements, real estate brokers are required to do all of the following EXCEPT -take affirmative marketing action in advertising -take affirmative marketing action in canvassing -show every listed property to each prospective buyer -prominently display the equal housing opportunity poster
show every listed property to each prospective poster
A homebuyer recently finances his first home with a fixed-rate conventional loan. The type of interest he will pay over the life of the loan is probably
simple interest
The flooring system includes all of the following EXCEPT -joints -soleplates -sill -grinders
sole plate
NC building codes are promulgated by the
state
A balloon frame consists of
studs extending from the top of the foundation sill to the roof
To calculate the capital gain or loss in a real estate transaction
subtract the adjusted basis from the amount realized
According to the NC Real Estate Commission's Residential Square Footage Guidelines, which of the following statements regarding "living area" is TRUE
the ceiling height must be at least 7 feet, unless dealing with sloped ceilings
Using which of the following approaches would require the value of the land o be calculated separately from the value of the improvements
the cost approach
Which of the following statements regarding adjustable rate mortgage loans is TRUE
the interest rate may be adjusted based on a published index
Which of the following statements BEST defines a real estate appraisal
the opinion of the value of a specific property as of a specific date by a licensed appraiser
Which of the following statements BEST describes the relationship between the primary and secondary mortgage markets
the primary mortgage market is made up of lenders that originate mortgage loans, and the secondary mortgage market provides additional capital to the primary mortgage market lenders for originating loans
The restrictive covenant in a condominium complex prohibits pets. A prospective buyer with a physical disability relies on a service animals to assist him. Which of the following is TRUE
this restriction is unenforceable when any person with a disability uses a service animals for assistance
