Barney Fletcher Exam questions 2 Questions with
CORRECT Answers (Grade A+)
Question 1:
An appraiser recommended tearing down a $28,000 house. There was a shopping center across the
street. Which of the following appraisal principles BEST describes this situation? A. deterioration B.
highest and best use C. capitalization D. substitution
Answer:
B. highest and best use
Question 2:
What could guarantee no encroachments and good title? A. assumption package B. title insurance
policy C. survey D. termite inspection
Answer:
B. title insurance policy
Question 3:
Which of the following statements is true of a private deed restriction? A. it is imposed by an individual
on other people through a contract or deed B. it is put on a property by an owner to reduce tax liability
C. it applies only to crops on agricultural property D. it is imposed by the city restricting the use on the
property
Answer:
A. it is imposed by an individual on other people through a contract or deed
Question 4:
A city council zoned a two block area so that only Spanish style homes could be built because of the
Spanish heritage in the area. This is usually referred to as which type of zoning?
Answer:
B. aesthetic zoning because of architecture A. directive zoning B. aesthetic zoning because of
architecture C. cultural zoning D. bulk zoning
, Question 5:
A person bought a house and wanted to bring along a pet cougar to keep in the backyard. Which of the
following governmental rights would MOST likely prohibit this? A. police power because the police
have authority over types of animals for pets B. urban development regulations as they list allowable
animals for the properties C. zoning ordinances because sometimes these contain what animals may be
kept D. building codes as they would contain the most restrictions for city dwellings
Answer:
C. zoning ordinances because sometimes these contain what animals may be kept
Question 6:
Howe's property was assessed at $30,000. Rand's property was assessed at $35,000. Which is true? A.
the ad valorem tax on Rand's property is higher than Howe's B. the improvement tax on Rand's
property is higher than Howe's C. the special assessments on Rand's property are higher than Howe's D.
the special assessments on Howe's property are higher than Rand's property
Answer:
A. the ad valorem tax on Rand's property is higher than Howe's
Question 7:
Question not clearly extracted from source.
Answer:
A 3 year straight note was obtained at 10% per year. B. $28,000 Interest paid the first two years was
$4,200. The loan $4,200 divided by 2 years on the house was 75% of the value. What was the total =
yearly interest of $2,100. value of the property? $2,100 divided by 10% = A. $21,000 $21,000 loan
divided by B. $28,000 75% = $28,000 price C. $31,040 D. $38,750
Question 8:
A property sold for $75,000 with a down payment of 20%. The lender charged 3 discount points. How
much in dollars were the points? A. $1,500 B. $1,800 C. $2,100 D. $2,250
Answer:
B. $1,800 $75,000 x 20% = a down payment of $15,000. $75,000 - the down payment of $15,000 = a
$60,000 loan. $60,000 x 3% = discount points of $1,800
Question 9:
What document proves that a home loan has been paid off? A. paid stamp on mortgage B. mortgage
release C. defeasance clause D. mortgage waiver
Answer:
B. mortgage release
CORRECT Answers (Grade A+)
Question 1:
An appraiser recommended tearing down a $28,000 house. There was a shopping center across the
street. Which of the following appraisal principles BEST describes this situation? A. deterioration B.
highest and best use C. capitalization D. substitution
Answer:
B. highest and best use
Question 2:
What could guarantee no encroachments and good title? A. assumption package B. title insurance
policy C. survey D. termite inspection
Answer:
B. title insurance policy
Question 3:
Which of the following statements is true of a private deed restriction? A. it is imposed by an individual
on other people through a contract or deed B. it is put on a property by an owner to reduce tax liability
C. it applies only to crops on agricultural property D. it is imposed by the city restricting the use on the
property
Answer:
A. it is imposed by an individual on other people through a contract or deed
Question 4:
A city council zoned a two block area so that only Spanish style homes could be built because of the
Spanish heritage in the area. This is usually referred to as which type of zoning?
Answer:
B. aesthetic zoning because of architecture A. directive zoning B. aesthetic zoning because of
architecture C. cultural zoning D. bulk zoning
, Question 5:
A person bought a house and wanted to bring along a pet cougar to keep in the backyard. Which of the
following governmental rights would MOST likely prohibit this? A. police power because the police
have authority over types of animals for pets B. urban development regulations as they list allowable
animals for the properties C. zoning ordinances because sometimes these contain what animals may be
kept D. building codes as they would contain the most restrictions for city dwellings
Answer:
C. zoning ordinances because sometimes these contain what animals may be kept
Question 6:
Howe's property was assessed at $30,000. Rand's property was assessed at $35,000. Which is true? A.
the ad valorem tax on Rand's property is higher than Howe's B. the improvement tax on Rand's
property is higher than Howe's C. the special assessments on Rand's property are higher than Howe's D.
the special assessments on Howe's property are higher than Rand's property
Answer:
A. the ad valorem tax on Rand's property is higher than Howe's
Question 7:
Question not clearly extracted from source.
Answer:
A 3 year straight note was obtained at 10% per year. B. $28,000 Interest paid the first two years was
$4,200. The loan $4,200 divided by 2 years on the house was 75% of the value. What was the total =
yearly interest of $2,100. value of the property? $2,100 divided by 10% = A. $21,000 $21,000 loan
divided by B. $28,000 75% = $28,000 price C. $31,040 D. $38,750
Question 8:
A property sold for $75,000 with a down payment of 20%. The lender charged 3 discount points. How
much in dollars were the points? A. $1,500 B. $1,800 C. $2,100 D. $2,250
Answer:
B. $1,800 $75,000 x 20% = a down payment of $15,000. $75,000 - the down payment of $15,000 = a
$60,000 loan. $60,000 x 3% = discount points of $1,800
Question 9:
What document proves that a home loan has been paid off? A. paid stamp on mortgage B. mortgage
release C. defeasance clause D. mortgage waiver
Answer:
B. mortgage release
