Real Estate Principles II Flashcards

Real Estate Principles II Flashcards Among the following types of deeds, which one contains five covenants?General warranty deed Which indoor hazard is a gas that enters a property via well water, from the ground below a structure and from building materials?Radon Which of the following fractions is improper? 8/3 In Texas, it is customary for any of the following individuals to preside over a closing EXCEPT the ______ Seller's broker How are real estate properties often categorized? Economic Use What is the best method used by investors or real estate professionals in determining value and return on the investment CAP rate What is the most common type of residential lease?Gross A total debt service ratio is used in which of the following tasks?Qualifying loan applicants

A habendum clause usually starts with the phrase: To have and to hold

Why do conforming guidelines for conventional loans become stricter as loan to value (LTV) increases?The borrower has less equity in the property and is more likely to default Which covenant provides the grantor's guarantee that he or she owns a property and has the legal right to transfer its title?Covenant of seisin What does the first dimension in lot dimensions usually represent?Frontage Why was environmental legislation passed to protect wetlands?Wetlands have many beneficial effects on the ecosystem Who publishes the USPAP?The Appraisal Standards Board Title insurance policies do NOT protect policyholders from which of the following things?Bankruptcy How does the principle of supply and demand impact the values in the local market?Values increase when demand is high and supply is low What is the expense-to-income ratio limit required for a FHA loan?31% Which type of property manager handles the use, refinancing or sale of an owner's multiple properties?Asset managers Which of the following statement rightly discusses the difference between prorating through the day of closing or to the day of closing?The seller is through, the buyer is to Which of the following expenses is NOT typically paid into an escrow account?Taxes Which of the following approaches should be used to appraise non-profit or special use properties such as

schools and hospitals?Cost approach

Which one of the following statements about electromagnetic fields (EMFs) is TRUE?Research does not show that exposure to strong electromagnetic fields causes any health problems Which of the following things have NOT been proven to pose health issues?Electromagnetic fields Why do the conforming guidelinesThe borrower has less equity in the property and is more likely to default The agreement in which a tenant hires a property from a

landlord is a:

Lease Which describes income (or loss) from paper types of investments?Portfolio Which of the following statements is TRUE? A licensed appraiser may complete appraisals of one-unit residences with more than $250,000 What is the result if the buyer's total credits are more than his or her debits?The buyer will receive a refund or money back at settlement When an individual dies without leaving a valid will, he or she is described as having died _____ ."Intestate" / without a will Which of the following statements BEST describes the secondary market?The secondary market is where loans are bought and sold What is eminent domain?Government's right to take privately held and for the benefit of the public When does asbestos become hazardous to occupants? When it's damaged or disturbed What is the required down payment with a FHA loan on a property with a value of $100,000?

3.5% Fiduciary obligations require that property managersAlways put their employers' interest first What are the two main types of commercial real estate?Retail and Office A seller has prepaid taxes on his or her property for the entire year. He or she will close a sale involving this property on July 15. Calculating the amount using a banking year, for what time period has this seller prepaid taxes that the buyer would be responsible for reimbursing the seller at closing?Five months and 15 days? or they're responsible for each of their own expenses (except for the borrower's loan interest) Which of the following deeds is most often used to clear a cloud on a property's title?Quitclaim deed What does "P.O.C" mean on the Closing Disclosure form line?Paid outside of closing Which of the following is a highly specialized area in the real estate industry?Farm and Ranch How would one half of a whole be represented mathematically as a decimal?.50 What is the primary responsibility of a Property Manager?Maintain a Property and maximize return on investment Which of the following is not correct for a marketable title?Does not allow the recipient of the title to exercise ownership rights without having to defend those rights through litigation What type of freehold estate is a form of adverse possession?Tenancy in sufferance

Let's assume that a seller lives in a state in which real estate taxes are prepaid. He or she has prepaid all real estate taxes for the year of 2014, up to and including December 31. The total amount of prepaid taxes is $2,400/year. The transaction will close on September 30, 2014, how would this be shown on the settlement or closing statement?$600 Debit to the Buyer and $600 Credit to the Seller Which of the follow must the buyer do before closing?All of the above: Ensure that the proper professionals... / Make sure that the property survey is accurate... / Conduct a final inspection...Which is the most common type of residential lease?Gross lease When given the part (at the top of the T) and the rate (at the bottom) with the T-method, how is the mathematical function to find the whole solved?Division Which of the following statements about the Interstate Land Sales Full Disclosure Act is TRUE?The Act requires those who sell 25 or more properties to file a statement of record with HUD How many types of leasehold estates are there? 4 : Estate for years / Periodic estate / Estate at will / Tenancy at sufferance Which phrase best describes the documentation of the transaction expenses, the debit and credit expenses for both the buyer and seller?Settlement Statement or HUD-1 What zoning action grandfathers a current use? Variance What is the value criterion of a commodity that refers to its lack of presence in the market?Scarcity Which one of the following statements correctly defines the term "loan origination fee?" A one-time fee charged by the lender for making the loan Which of the following deeds offers a grantee the greatest level of assurance and protection regarding the condition of a property's title?General warranty deed For transactions that fall under RESPA guidelines, what must be used to account for expenses at closing?Closing Disclosure form An appraiser's compensation can have all of the following characteristics EXCEPT be _____ .... appraised value What does the phrase "reversionary right" mean? Possession of the property goes back to the landlord at the end of the lease What is an abstract of title?A brief history of the title to a particular parcel of real estate, describing its ownership history and all past and present encumbrances What is the down payment for a VA loan?Any part of the sale price that exceeds the home's appraised worth