Real Estate Exam #2 Copy

A property had improvements totaling $200,000; annual net income before recapture of depreciation of $40,000; and economic life of improvements equal to 40 years. Applying the land residual technique using straight line depreciation and an interest rate of 10% results in:

If a property has a condition that some people may find materially negative but does not relate in any way to the actual physical condition of the property, this property is said to be:

If an agent makes claims to homeowners in a certain geographical location that their property values would decrease if certain ethnic groups were to move into the area, this could be an example of:

Able has the right to cross through Peter’s property to get to his property. What is this right called?

When determining the “loan-to-value” of a property, it is:

When someone is having their credit history checked by a lender for use in the loan qualification process, their creditworthiness is being determined by use of:

If an owner reduces the principal on a loan before the due date, this is called:

If a real estate corporation hires employees for their sales staff, the employees must have:

This is issued to the holder of a certificate of sale after the one year redemption period has passed under the terms of the mortgage foreclosure proceeding.

If an underwriter has reviewed and approved a loan application that included debt, income, and savings account documentation, this is typically termed a:

Assessment bonds are used by the county to pay for what in a subdivision?

The total positive balances due to all beneficiaries of a broker’s trust account need to at all times equal the account’s:

The National Association of Realtors (NAR) is affiliated with which of the following:

This must equal the cash amount that the borrower would have to pay for principal, interest, taxes, and insurance for a predefined number of months:

The best description of an individual’s credit history is:

What is an adjustable rate mortgage that allows the borrower to change the ARM to a fixed rate mortgage within a specific time?

This limits the amount the interest rate can increase or decrease over the life of the mortgage:

According to the Sherman Anti-Trust Act, if a real estate agency instructed all of the salespersons and associate brokers that they were to set their commissions at 3%, and they all agree to do so, this would be:

If Jonathan lists his property with Julian, a broker in his hometown, and subsequently is killed in a tragic car accident before the listing is sold or expired, what happens with the listing?

If a buyer defaults on a loan and the lender declares the note to become due and payable immediately, this would best be described as:

When calculating a gross monthly rent multiplier, this is done by:

A law that requires certain types of contracts, including most real estate contracts, to be in writing and signed by the party to be bound in order for the contract to be enforceable is called:

A thorough inspection by a professional that evaluates the structural and mechanical condition of the property, and is typically a contingency, is called a:

In the most basic sense, debt is considered:

A provision in a mortgage that allows the lender to demand repayment in full from you if you sell your mortgaged property is called a:

How many acres are in a township?

If an individual is representing a firm that makes loans on real property, they would be known as:

Liabilities, including long-term and short-term debt, can be called:

Which of these are NOT included in a spot survey of a single lot?

Commissions in real estate are generally the largest for realtors (agents and brokers). Which of the following earn the second largest commissions?

An executory contract is:

Airways above a property are:

If a contractor intends to sell 10 properties in a calendar year, he/she will need:

If a contract has a clause that states “time is of the essence” and either party fails to act in a timely manner to execute the contract, they can be held in:

The difference between the interest rate and the index on an adjustable rate mortgage is best known as:

As a tenant in a business center, the operating owner installs separate and additional lighting and counters to accommodate the retail business that is going to be operating in the space. Upon vacating the property at the end of the lease, the lighting and tables:

If a property is in default and a meeting is announced in a public location to sell the property in order to recoup the mortgage in default, this would be an example of a:

A vendor-vendee is a term that best describes the relationship between:

A unique mortgage that allows for the lender to make payments to the homeowner, allowing owners to convert equity into cash, that does not need to be repaid until the borrower vacates the property is best known as:

What causes the real estate market to be considered “inflexible”?

If Fred, a property owner, conveys an interest in his property to Greg, his nephew, in this transaction Fred is considered to be the:

Someone who negotiates and transacts the sale of real estate can most commonly be called a(n):

A remainder is when:

When a lender uses another party to either completely or partially originate, process, underwrite, close, fund, or package the mortgage it plans to deliver to the secondary mortgage market, this process is called:

A table or chart that shows how much of each mortgage payment that is applied to interest and how much is applied to the principal is called:

If a buyer uses a postdated check as earnest money deposit in the purchase of a property, this would be:

In the case of a cash sale, why would a seller wish to transfer an existing fire insurance policy?

Time, title, interest, and possession between two or more parties is a defining definition of:

A broker seeking to collect a commission on a month-to-month rental that was earned for their negotiation in the matter, needs to prove what in order to legally collect?

In order for a deed to be valid, it must be: