SUMMARY EXAM 1 2024 WITH 100%
ACCURATE ANSWERS
,SUMMARY EXAM 1 2024 WITH 100%
ACCURATE ANSWERS
According to the Truth in Lending Act, if a lender discloses ______in their advertising, these terms will
"trigger" additional lender disclosures, most notably the annual percentage rate (APR) will also be
required.
1. Down payment
2. Interest Rate
3. Term of loan
4. Any of the above - correct answers4. Any of the above
Which of the following would NOT be classified as real property?
1. Chattels real
2. Easements
3. Mineral rights
4. Water rights - correct answers1. Chattels real
Kevin is preparing a Comparative Market Analysis (CMA) on a commercial net leased office property that
has 100% occupancy and income of $67,000, with expenses of $22,000 and a management fee of 5% of
the gross income. The property is assessed by the municipality at $425,000. If Kevin considers a 9% rate
of return to be reasonable for this income property, what would Kevin recommend as a listing price?
1. $500,000
2. $597,000
3. $744,444
4. $462,778 - correct answers4. $462,778
- $67,000 - $22,000 - $3,350 (5% management fee) = $41, = $462,778
NOI (effective gross income - operating expenses) /cap rate = sales price $41,650/ .09 = $462,778
, Scenario A
John and Mary Apton list their home for $152,000. There is an appurtenant easement to access a large
lake which is deeded.
A coal fired power plant is slated to open 5 miles from the property next year. An Environmental Impact
Statement is due on March 7.
Agent Pacheco presents an offer to the Aptons. It is a land contract for $142,000 with an 8% interest
rate due and payable in 10 years. It is accepted. The offer is contingent on the environmental impact
results.
Closing is scheduled for June 1. Taxes are $3040, the commission is 6.5%, (buyer's agent commission is
2.8%), taxes and insurance are $675, recording fee is $25
The environmental impact statement showed the value of the property would not be impacted. Use a
banker's calendar. Seller is responsible for the day of closing.
With the information given in the scenario, what costs will the buyer need to bring to closing?
1. $700 ($675, $25)
2. $3 - correct answers1. $700 ($675, $25)
- $700 ($675, $25). The buyer does not pay any taxes until next year and does not pay the agent's
commission.
A conditional use permit would MOST LIKELY pertain to ______ .
1. Deed Restrictions
2. Zoning
3. Building codes
4. Covenants - correct answers2. Zoning
ACCURATE ANSWERS
,SUMMARY EXAM 1 2024 WITH 100%
ACCURATE ANSWERS
According to the Truth in Lending Act, if a lender discloses ______in their advertising, these terms will
"trigger" additional lender disclosures, most notably the annual percentage rate (APR) will also be
required.
1. Down payment
2. Interest Rate
3. Term of loan
4. Any of the above - correct answers4. Any of the above
Which of the following would NOT be classified as real property?
1. Chattels real
2. Easements
3. Mineral rights
4. Water rights - correct answers1. Chattels real
Kevin is preparing a Comparative Market Analysis (CMA) on a commercial net leased office property that
has 100% occupancy and income of $67,000, with expenses of $22,000 and a management fee of 5% of
the gross income. The property is assessed by the municipality at $425,000. If Kevin considers a 9% rate
of return to be reasonable for this income property, what would Kevin recommend as a listing price?
1. $500,000
2. $597,000
3. $744,444
4. $462,778 - correct answers4. $462,778
- $67,000 - $22,000 - $3,350 (5% management fee) = $41, = $462,778
NOI (effective gross income - operating expenses) /cap rate = sales price $41,650/ .09 = $462,778
, Scenario A
John and Mary Apton list their home for $152,000. There is an appurtenant easement to access a large
lake which is deeded.
A coal fired power plant is slated to open 5 miles from the property next year. An Environmental Impact
Statement is due on March 7.
Agent Pacheco presents an offer to the Aptons. It is a land contract for $142,000 with an 8% interest
rate due and payable in 10 years. It is accepted. The offer is contingent on the environmental impact
results.
Closing is scheduled for June 1. Taxes are $3040, the commission is 6.5%, (buyer's agent commission is
2.8%), taxes and insurance are $675, recording fee is $25
The environmental impact statement showed the value of the property would not be impacted. Use a
banker's calendar. Seller is responsible for the day of closing.
With the information given in the scenario, what costs will the buyer need to bring to closing?
1. $700 ($675, $25)
2. $3 - correct answers1. $700 ($675, $25)
- $700 ($675, $25). The buyer does not pay any taxes until next year and does not pay the agent's
commission.
A conditional use permit would MOST LIKELY pertain to ______ .
1. Deed Restrictions
2. Zoning
3. Building codes
4. Covenants - correct answers2. Zoning
