Colorado psi real estate practice test 100%
Correct
Legal descriptions using the government survey system are NOT generally used in -
ANSWER-the original 13 states.
Real property can be converted to personal property by - ANSWER-severance
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT
want to make the permission permanent in case he dislikes others who might move next
door in the future. What should he give his neighbor? - ANSWER-A license.
A broker hires a salesperson as an independent contractor. In order for the salesperson
to be considered an independent contractor for federal income tax purposes, the
broker's written contract with the salesperson MUST specify - ANSWER-that the
salesperson will not be treated as an employee for federal income tax purposes.
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - ANSWER-his undivided interest passes to his
heirs.
A property is encumbered by a first mortgage of $60,000 and a second mortgage of
$23,500. The property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale are included in these
balances. Which of the following statements is FALSE regarding the distribution of
funds? - ANSWER-: The second mortgagee receives nothing unless he forced the
foreclosure auction.
A broker is showing a buyer one of his residential listings. The buyer says he wants to
establish a day care center for seniors in the property. The property has been used as a
day care center for no more than five children. How should the broker advise this
buyer? - ANSWER-Provide the buyer with contact information for the local planning and
zoning office to confirm the zoning and determine whether it permits his use.
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - ANSWER-Conditional use permit or zoning variance
If conditions for property use are included in a deed and these conditions are violated,
what is the most severe potential penalty? - ANSWER-A court may order the return of
the property to the original owner.
, New sidewalks installed only on one particular street will probably be paid for by -
ANSWER-a special assessment.
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - ANSWER-$250,000.
According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which - ANSWER-
most homes are larger than the sale home.
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER-lender wants to
sell the mortgage to the secondary market.
When compiling a competitive market analysis, a broker would look for comparable
properties that - ANSWER-were located near the property being listed.
For a buyer, a DISADVANTAGE of a partially amortized or balloon payment loan is that
- ANSWER-at the end of the term, all remaining principal must be paid in a single large
payment
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender,
indicating the Annual Percentage Rate on their loan has increased by 0.3%. Based on
the TILA-RESPA Integrated Disclosure rule, what action should the broker take in this
situation? - ANSWER-Confirm with the seller's broker, the lender and the closing entity
that the closing must be delayed to allow for a new seven-day waiting period because of
the interest rate revision.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ANSWER-prepayment
penalties and rebates.
When a home is purchased using an ARM, the monthly loan payment on the mortgage
will - ANSWER-vary over the life of the loan depending on fluctuations in the interest
rate to which the loan is referenced.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ANSWER-demand immediate payment of the entire
note.
Even if a loan applicant's current income seems adequate to qualify for a certain loan,
the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the
applicant's main source of income is - ANSWER-commission sales.
Correct
Legal descriptions using the government survey system are NOT generally used in -
ANSWER-the original 13 states.
Real property can be converted to personal property by - ANSWER-severance
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT
want to make the permission permanent in case he dislikes others who might move next
door in the future. What should he give his neighbor? - ANSWER-A license.
A broker hires a salesperson as an independent contractor. In order for the salesperson
to be considered an independent contractor for federal income tax purposes, the
broker's written contract with the salesperson MUST specify - ANSWER-that the
salesperson will not be treated as an employee for federal income tax purposes.
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - ANSWER-his undivided interest passes to his
heirs.
A property is encumbered by a first mortgage of $60,000 and a second mortgage of
$23,500. The property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale are included in these
balances. Which of the following statements is FALSE regarding the distribution of
funds? - ANSWER-: The second mortgagee receives nothing unless he forced the
foreclosure auction.
A broker is showing a buyer one of his residential listings. The buyer says he wants to
establish a day care center for seniors in the property. The property has been used as a
day care center for no more than five children. How should the broker advise this
buyer? - ANSWER-Provide the buyer with contact information for the local planning and
zoning office to confirm the zoning and determine whether it permits his use.
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - ANSWER-Conditional use permit or zoning variance
If conditions for property use are included in a deed and these conditions are violated,
what is the most severe potential penalty? - ANSWER-A court may order the return of
the property to the original owner.
, New sidewalks installed only on one particular street will probably be paid for by -
ANSWER-a special assessment.
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - ANSWER-$250,000.
According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which - ANSWER-
most homes are larger than the sale home.
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER-lender wants to
sell the mortgage to the secondary market.
When compiling a competitive market analysis, a broker would look for comparable
properties that - ANSWER-were located near the property being listed.
For a buyer, a DISADVANTAGE of a partially amortized or balloon payment loan is that
- ANSWER-at the end of the term, all remaining principal must be paid in a single large
payment
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender,
indicating the Annual Percentage Rate on their loan has increased by 0.3%. Based on
the TILA-RESPA Integrated Disclosure rule, what action should the broker take in this
situation? - ANSWER-Confirm with the seller's broker, the lender and the closing entity
that the closing must be delayed to allow for a new seven-day waiting period because of
the interest rate revision.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ANSWER-prepayment
penalties and rebates.
When a home is purchased using an ARM, the monthly loan payment on the mortgage
will - ANSWER-vary over the life of the loan depending on fluctuations in the interest
rate to which the loan is referenced.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ANSWER-demand immediate payment of the entire
note.
Even if a loan applicant's current income seems adequate to qualify for a certain loan,
the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the
applicant's main source of income is - ANSWER-commission sales.
