Principles of Real Estate 2 Test

Principles of Real Estate 2 Test The appraised value of a property is: (a) The sale price (b) An opinion of value (c) A market analysis (d) The market value of a property - B For tax purposes the _______ is determined by the taxing authority. (a) assessed value (b) appraised value (c) market price (d) investment value - A In the appraisal report, the property being appraised is referred to as the _________ property. (a) Target property (b) Comparable property (c) Sold property (d) Subject property - D To satisfy an unpaid promissory note, ________ is the legal procedure whereby the secured property may be sold. (a) underwriting (b) processing (c) foreclosure (d) regulation of lenders - C Since they are responsible for enforcing federal consumer financial law, the Consumer Financial Protection Bureau id responsible for the enforcement of which of the following? (a) The Real Estate Settlement Procedures Act (b) The Fair Credit Reporting Act (c) The Truth In Lending Act (d) All of the above - d The investors assign large blocks of loans into _______ as collateral to back mortgage-backed securities. (a) originations (b) warehouse lines of credit (c) bonds (d) loan pools - D Located in between incompatible uses, a _______ is an area of land separating one land use from another, such as residential from commercial. (a) buffer zone (b) forward condemnation (c) reverse condemnation (d) police power zone - A Changing the zoning of a property to a lower value use is called _______. (a) buffer zoning (b) downzoning (c) police zoning (d) condemnation - B Property taxes are referred to as _______taxes, which means according to value. (a) highest priority lien (b) lowest priority lien (c) assessed value (d) ad valorem - D Which of the following designations is a challenging program regarded as the "gold standard" for commercial real estate professionals? (a) RLI (b) CCIM (c) ABR (d) ALC - B The ABR designation is especially useful for: (a) Residential buyer's agents (b) Commercial property managers (c) Foreclosure specialists (d) Industrial property specialists - A When a license holder is asked to locate an investment property for a potential buyer: (a) The license holder should go ahead with the transaction because having a real estate license means that he or she is qualified. (b) The license holder should decline, because the License Act prohibits this type of activity. (c) The license holder should go ahead with the transaction only if he or she is competent to do so. (d) None of these is correct - C Additional capital or property included in a transaction to even out the exchange is called ______. (a) capital gain (b) a syndicate (c) gross potential income (d) boot - D The potential income of a property that is derived from rents collected in a year is called: (a) Gross Rent Multiplier (b) Gross Scheduled Income