National Real Estate Exam - Guide to Pearson Vue Book Flashcards

National Real Estate Exam - Guide to Pearson Vue Book Flashcards forgery in the chain of titleA standard policy of title insurance protects the purchaser

from title problems relating to:

loans being used as collateral for other loans The process of warehousing refers to $441,600When a new mall opened, rental income for the old mall was reduced by $4,600 per month. Assuming a 12.5% capitalization rate, what was the loss in value for the old mall? 4600x12 = 55,20055,200/.125 = 441,600 it is deliveredA deed transfers title when(Title is transferred on delivery) contingent remainder interestA conveyance from J to K for life and then to L if L is still alive gives L a purchasing mortgages originated by financial institutionsFannie Mae activities include a single family residenceThe loan that would command the highest loan-to-value ratio is for the name and addresses where notices should be sentThe Uniform Residential Landlord and Tenant Act requires that the landlord inform the tenant about good-faith estimate of settlement costsRESPA disclosures include takeout loan (The take-out loan replaces (takes out) the construction loan A permanent loan that replaces a construction loan is a voidA property manager determined that the lessee on a commercial lease had been declared incompetent before entering into the lease. The lease is lower riskA lender might prefer to make an FHA or VA loan rather than a conventional loan because of the Entitlement to commissionWhat does the term procuring cause relate to?Executory bilateral contractWhat type of contract is an exclusive listing in a broker's inventory before sale?liability protectionHomeowners insurance includes Because acceptance takes place upon mailing and revocation is not effective until received, a valid contract was formed On October 1, a buyer mailed a purchase offer to a seller.On October 2, the man mailed a revocation of the offer to the seller. On October 3, the seller received the offer, and on October 4 mailed the acceptance to the buyer. On October 5, the seller received the buyer's revocation of the offer. What are the rights of the parties?defects discovered by property inspection. A lender's extended policy of title insurance goes beyond standard coverage by including?They would lower the property's valueWhat effect do rising interest rates have on the value of a commercial property that is on a long-term lease at a fixed rent?

propertyCollateral for a real estate loan is the:

The Truth In Lending ActTo locate buyers for other properties, a broker advertised a property that was not available but which would generate

great interest. The broker's action violated:

an administratorA person died intestate. The court will appoint an action to quiet titleA legal process used to clear a title is 12%A $7,000 investment in a straight mortgage earns $210 in three months. What is the annual percentage return on the investment?an open-end loanA loan that provides for future advances is $55,000The maximum civil penalty for the first discriminatory act in violation of the Americans with Disabilities Act is Absence of prepayment penaltiesWhat is a characteristic of both FHA and VA loans?rejection by the offereeAn offer is terminated by(The offeror can revoke, but the offeree rejects) balloon paymentA partially amortized loan has a A periodic tenancyA lease that automatically renews itself, in the absence of

notice, is:

life estateWhich of the following tenancies is a free hold interest?Reverse annuityWhat type of mortgage has compound interest?less than an assignmentSubleasing can be described as being

Signed by the grantorA requirement of a valid deed is that the deed be:

parol evidence ruleThe use of verbal evidence to show that a contract means something other than it states is prohibited by the Transfer itTo alienate property means to has ownership of no specific part of the property When parties own property as tenants in common, each owner $305, 851A builder wanted the listing to reflect $85 per square foot for a 2,500 square foot home plus $75,000 for the lot after the 6% commission was paid. What should the home be listed at to meet the builder's wishes? 2500x85 = 212,500 +

75,000 = 287,500/.94 = 305,851

$66,666A man just sold a condo for $80,000. This gave him a 20% profit on what he paid. What did the man pay?

$80,000/1.20

The rate stated in the noteWhat is the nominal rate of interest?the bundle of rightsAll of the rights of ownership, including the rights to use, encumber, transfer, and exclude are accelerates loan paymentsBy calling in a loan, the lender option is exercisedAn option does NOT become a binding contract on both parties until the mortgageeA clause in a mortgage that provides for the assignment of

rents benefits the:

greater than the nominal rateThe annual percentage rate is the statute of limitationsAn executory contract met the four requirements of a valid contract, but the contract could not be legally enforced. The reason was be for relatively short termsBecause a property manager expects residential rental demand to exceed the rental supply within a short period of

time, the manager wants new leases to