STATE Nebraska Real Estate Practice Exam 1 Flashcards

STATE (Nebraska) Real Estate Practice Exam 1 Flashcards largest purchaser in 2ndary marketFannie Mae How many acres are in 1 square mile?640 acres Where should a broker deposit money received from an owner for repairs on rental property?property management escrow account Kathy resides in California, but wishes to sell her Nebraska property for $150,000. The broker knows that the zoning has recently changed, resulting in an increase of her property to $225,000. The Broker purchases the property himself without informing Kathy of the value increase. Is this legal?No, the broker must inform the owner of the zoning change and increased value.How many NREC board members are there?seven (7) Who is the trustor in a deed of trust?another name for the borrower and "trustee" is a "supposedly" neutral third party who holds naked legal title, the right to foreclose at the instructions of the beneficiary for non-payment of a promissory note Looking at shopping centers in the appraisal process, the social fiber of the community and distances from schools is called neighborhood analysis Income of any type--whether alimony, child support, freelance work or a second job--only needs to be disclosed if the applicant is relying on it to qualify for the loan.if the applicant is relying on it to qualify for the loan.Who is the beneficiary?lender the appraisal cost approuch is used in valuing buildings where actual income or comparative commercial value dont exist, such as school and libraries When can a landlord evict a disabled blind or disabled tenant from the premises? If the tenant has...loud parties, makes too much noise, and is consistently disturbing other tenants Restrictive Covenantsprohibit all future owners from certain actions or modifications of their property and placed by private parties, consistency and desirability of a neighborhood Branch office names within a brokerageMust have approval and registration of the new trade name with NREC A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan?With a 20% down payment of $84,000, the buyer had a mortgage of $336,000. Since interest is expressed in annual terms, multiply the monthly payment of $1,400 times twelve. That yields an annual interest cost of $16,800, divided by the principal balance of $336,000, yields an annual rate of 5%.When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it?the trustor

buyer can use primissory note for consideration on the purchase of the property so long as...the seller also agrees When does a listing contract expire? At... At closing (upon expiration of the contract date) broker's price opinion (BPO)An opinion of real estate value commissioned by a bank or an attorney and provided by a broker.

Options are generally concerned with only two things:time and price

transaction requires securities licenseselling shares in Fannie Mae Which of the following is considered a conventional loan?Commercial bank's 15 year loan what happens in a second mortgage... interest rate, risk and exposure high interest, high risk and added exposure for lender, they are 2nd in line after the 1st mortgage holder. in case of foreclosure, that means the first mortgage holder is paid in full before any money comes out.An impound/ reserve benefits ____ the most the lender Urury is what type of interestrates above the interest rate ceiling (illegal interest, loan sharks) Under the TILA-RESPA Integrated Disclosure rule (TRID), a lender must extend the closing how many days if the annual percentage rate (APR) has changed more than 0.125% before closing?Three business days Broker Angela Preslopski took earnest money from a client and deposited it into her personal banking account. Which of the following terms most accurately describes Ms.Preslopski's actions?Commingling, the illegal mixing of deposits or monies, collected from a client, with one's personal or business account.why would a mortgagee have an appraisal on the property?to assure the property value is sufficient to cover the loan the first step in an appraisal isDefine the problem Gross Rent Multiplier equationproperty value / monthly rent One discount point from federal VA or FHA loan is 1% of the loan amount Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan?Monthly payments What document is used to change license status in Nebraska?The NREC Transfer Checklist Truth in lending primary purposedisclose the true costs of obtaining credit recorded subdivision plat is used in what system lot and block system Functional ObsolescenceA loss of value to an improvement to real estate arising from functional problems, often caused by age or poor design.a balloon paymenta final loan payment that is much larger than the regular monthly payments In which of the following markets may a lender sell a loan that a mortgage banker has previously originated? primary or secondary 2ndary market Under RESPA, a copy of Real Estate Settlement Costs must be given when?At the time of loan application, or within 3 days of application.Some expenses paid at closing must be _______ between the buyer and the seller. The most common items that fall

into this category include taxes, insurance, and utilities.prorated

Closing Disclosure, a statement of actual charges and adjustments, to the borrower by the lender The TRID form, TILA-RESPA standard yardstick expressing true annual cost of borrowing.. percentage rate Annual percentage rate, APR sale-leaseback transactionthe owner of an asset sells it and immediately leases it back from the new owner A broker's listing has a large foundation crack in a wall.What action, if any, must the licensee take?The crack needs to be disclosed in writing prior to the buyer making an offer.An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act? Regulation Z....No, owners are not covered by Reg Z The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee?A loan for 90% of the $780,000 purchase price results in a $702,000 mortgage. Since the origination fee is based on the amount of the mortgage, not the price of the home, the fee is 2% of $702,000 or $14,040.Who can be a manager of a branch office? The broker or an associate broker A buyer assumes the mortgage. How is the owner relieved of the liability?Novation, substitute a new contract for an old one; thus the holder of the original is relieved of his or her responsibilities.An increase in the availability of money would increase or decrease interest rates?decrease Who is the chairman of the NRECSecretary of State The lender is required, under RESPA, to provide a detailed "Good Faith Estimate (GFE)" statement at the time of loan application or within three business days to the buyer In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called?Statutory right of redemption conventional loans features 3 things...guidelines not uniform, qualification standards can vary enormously from lender to lender. There are no state-mandated qualifying requirements to create a real estate company as a corporation, which license would be required of the corporation itself?The Corporation would become "The Broker" and the officers of the corporation would be Broker- Officers.What document describes the different types of brokerage relationships in real estate transactions in Nebraska?The NREC Disclosure of Brokerage Relationships in Real Estate Transactions pamphlet What would happen if a broker were to die, and his company was placed in receivership?The NREC can appoint a temporary broker to finish the existing sales contracts.Who pays for the broker's commission, buyer or seller?the seller use comparable property where homeowner had gone through divorce, and one of spouses buys it?no, not an at arms length transaction what is Economic obsolescencefactors unrelated to the property itself and outside of the owner's control diminish its value. (New Circumstances or at the right location?) According to Nebraska license law, listing agreements must contain 4 things...the sale price, the commission rate, signature of all the parties (all sellers must sign) and an expiration date