Rockwell Exam Real Estate Classes WA Final Exam 1 Flashcards

Rockwell Exam Real Estate Classes WA Final Exam 1 Flashcards A mortgage that uses both real and personal property to

secure the borrower's debt is a:A. reverse equity

mortgageB. budget mortgageC. package mortgageD. deed of trust

• Package mortgageuses both real and personal property

as collateral Which of the following persons could be eligible to receive a VA loan?A. A veteran or a deceased veteran's childB. A veteran or a deceased veteran's child or a un-remarried spouseC. A veteran or deceased veteran's un-remarried surviving spouseD. Only a veteran him or herself

• A veteran or deceased veteran's un-remarried surviving

spouseA veteran's surviving spouse may be eligible for a VA loan if he or she has not remarried, and the veteran was killed in action or died of service-related injuries.A corn field with a depth of 900 feet and a frontage of 484 feet is bisected by an access road, leaving two triangular lots. If the land sells for $2,000 per acre, how much is each lot worth?A. $2,000B. $10,000C. $20,000D. $100,000

• $10,000Each lot is worth $10,000. One way to solve this

problem is to find the area of one of the triangular lots. Use the triangle area formula, Area = 1/2 base x height (900 feet x 484 feet = 217,800 square feet). Convert this to acreage (217,800 square feet / 43,560 square feet per acre = 5 acres), and then multiply by the cost per acre (5 acres x $2,000 = $10,000). Alternatively, you can use the rectangular area formula (Area = Length x Width) to find the area of the entire corn field (900 feet x 484 feet = 435,600 square feet), divide to convert the square footage to acreage ( 435,600 square feet / 43,560 square feet per acre = 10 acres), multiply by the cost (10 acres x $2,000 = $20,000), and divide by 2 to find the cost of one of the lots

($20,000 / 2 = $10,000).

Martha gave Hannah the right to purchase her vacant lot for $65,000. Hannah paid Martha $1,200 for this right.

Hannah is the :A. mortgagorB. MortgageeC. OptionorD.

Optionee

• OptioneeMartha gave the option to Hannah, so Martha

is the optionor and Hannah is the Optionee When a borrower maks payments on a fully amoritized

loan, her debt service payments will cover:A. only principal

on the loanB.only interest on the loanC.both principal and interest on the loanD. principal, interest, taxes, and insurance

• principal and interest on a loanA fully amortized loan is

repaid through regular paymets that include both apportion of the principal and interest. Final payment will pay off the principal balance, leaving no need for a balloon payment.A property manager of a ten-unit building shows an apartment to a woman who uses a wheelchair. The woman says that she would need to make some modifications, such as adding a grab bar in the shower and removing

some carpeting in the bedroom. The landlord:A. can refuse

to rent to the tenant because of the tenant's proposalsB.must allow the tenant to make the modifications at her own expense, but can require her to restore the property at the end of the leaseC. must allow the tenant to make the

modifications at her own expense, and cannot require the tenant to restore the property at the end of the leaseD.must make the modifiations and pay for the expenses himself

• must allow the tenant to make the modifications at her

own expense, but can require her to restore the property at the end of the leaseThe Fair Housing Act says that a disabled tenant may make reasonable modifications to a leased property at her own expense. The tenant can be required to restore the premises at the end of the tenancy.Which of the following is true about survey's?A. they determine placement of improvements on a propertyB.They identify setback lines from property boundariesC. The

protect against easements by prescriptionD. They reveal encroachments not of public record

• They reveal encroachments not of public recordA survey

may reveal matters that are not part of the public record that would only be discovered through a personal

inspection, such as encroachments. Why they are performed as part of obtaining extended coverage title insurance policy.Which of the following is a primary market lender?A.Federal Housing AdministrationB. Mortgage banking companyC. Mortgage brokerD. Veterans Administration

• Mortgage banking companyA mortgage banker is a

primary market lender, meaning that it originates loans directly to property buyers. Under the traditional distinction between a mortgage banker and a mortgage broker, a mortgage broker negotiates loans, bringing borrowers and lenders together for a fee, but (unlike a mortgage banker) is not a lender.

As a property manager, you may:A. advertise that units are

available, even when their notB. use diferent application forms for minority applicantsC. require credit checks for some applicants, but not othersD. offer inducements to prospective tenants

• offer inducements to prospective tenantsProperty

managers may offer inducements to attract tenants; waiving the first month's rent. A property manager should perform credit checks on all prospective tenants.A contract signed by a person who was intoxicated at the

time of the signature would be:A. validB. voidC. voidable by

the intoxicated partyD. voidable by the other non-intoxicated party

• voidable by the intoxicated partyA contract signed by a

person who is temporarily incompetent (through intoxication, for instance) may be voidable, if the person takes action to rescind the contract within a reasonable time after regaining competency.Which is a list of duties owed to a principal by an agent?A.Loyalty, compensation, reasonable care, accountingB.Loyalty, confidentiality, reasonable care, accountingC.Performance, compensation, reasonable care, indemnificationD. Performance, confidentiality, loyalty, indemnification

• Loyalty, confidentiality, reasonable care,

accountingDuties that an agent owes to all parties (including the principal) are reasonable skill and care, honesty and good faith, presenting written communications, disclosure of material facts, accounting, providing agency law pamphlet, and making an agency disclosure. In addition, an agent owes the principal the duties of loyalty, disclosure of conflicts of interest, confidentiality, advising the principal to obtain expert advice, and good faith and continuous effort. Compensation, indemnification, and performance are not duties an agent owes the principal.A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide. How many square yards of carpet will need to be purchased?A. 10B. 30C. 90D. 270

• 30First, multiply the length and width to find the square

footage (18 ft. x 15 ft. = 270 sq. ft). Then, because there are 9 square feet in a square feet in a square yard, divide by 9 to convert to square yards (270 / 9 = 30 square yards).A deed that is not signed by the seller is still considered

valid as long as it:A. is executed by a competent relative of

the sellerB. is delivered to the buyerC. contains is covenant of seisinD. is signed by an authorized attorney in fact

• is signed by an authorized attorney in factThe document

used to assign legal rights to another person - for example, authorizing someone to sign a contract and/or deed on one's behalf - is a power of attorney. The person who is appointed to act is known as an attorney in fact.An apartment building has eight units; each units rents for $800 per month. The property can also be expected to earn $4,000 per year from laundry and vending machines. An appraiser estimates that the property typically operates with a 5% vacancy factor. What is the property's estimated