Principles of Real Estate Exam With 100% Correct Answers

Principles of Real Estate Exam With 100% Correct Answers Loss of value due to lack of modernization is called: - answerFunctional obsolescence The __________ is considered the most reliable approach to value because it is based on verifiable market events. - answerSales comparison approach A loss in a property's value due to daily wear and tear is an example of _______ - answerPhysical deterioration The appraiser will use the cost approach to value: - answerA unique building A real property appraisal will contain an analysis of the each of the following, EXCEPT: - answerPersonal property The appraisal principle of conformity tells us that a house is worth the most when: - answerIt is in a neighborhood of similarly priced homes Official property value for tax purposes is called: - answerAssessed value The appraisal principle of __________ states that the purchase price of a property is affected by the expectation of future appeal and benefits. - answerAnticipation The best definition of market value is: - answerThe most probable price a property should bring in a competitive and open market The effective age of a house can be younger than its __________ if it has been well-maintained. - answerChronological age In which approach to value is the appraiser calculating depreciation as a factor along with land value and replacement cost for a structure? - answerThe Cost Approach The primary purpose of the FHA is: - answerTo insure loans When a loan is funded, the FHA charges a(n) __________ which can be paid at closing or added to the loan at funding. - answerUp-Front Mortgage Insurance Premium The borrower's monthly payment includes principal and interest plus one-twelfth of the annual property tax assessment and one-twelfth of the annual insurance premium. This is a: - answerBudget loan Which of the following statements about the use of gift funds in government loans is true? - answerProperty must be owner-occupied, Donor must be a relative, domestic partner, or fiancé, Gift funds may be used for the entire down payment A person who brings a borrower and a lender together for a fee is called: - answerA lender's agent Most of the specific requirements imposed by TILA are found in _______ - answerRegulation Z The __________ is the percentage of the lesser of the appraised value or sales price that the lender will lend - answerLoan-to-value ratio The Loan Estimate: - answerIs a detailed breakdown of the cost of the loan The Equal Credit Opportunity Act prohibits credit discrimination on the basis of: - answerRace, Religion, Sex Which of the following is true of property taxes? - answerProperty taxes create the highest priority lien against property, Unpaid taxes are an automatic lien and at foreclosure will always be paid first, If property taxes are not paid, the property will be seized and sold Which of the following is one of the four rights that the government retains in land? - answerEscheat Police Power is the: - answerRight of the government to regulate and control the way land is used If a landowner sues the government in order to force it to buy his or her land, this is called: - answerInverse condemnation A __________ is one in which a property, with the consent of the lender, is sold by an owner/borrower at a price that is not sufficient to pay off the existing mortgage. - answerShort sale A Residential Mortgage Loan Originator must be licensed with: - answerTexas Department of Savings and Mortgage Lending A sponsoring broker must: - answerMaintain written policies to ensure the competency of a supervised sales agent, Require that sales agents are adequately trained in the area in which they practice, Must advise a sales agent i