BARNEY FLETCHER EXAM
QUESTIONS 2025 UPDATED
VERIFIED
In doing a market analysis, you find a recently sold property where the owners had just gone
through a divorce. It was listed for $60,000 for 3 months but sold for $40,000. Would you use
this as a comparable?
A. no, because it had only been listed for 3 months
B. no, because of the divorce, it was not an arms length agreement
C. yes, you would use the actual sales price of $40,000
D. yes, because it was a comparable type property - CORRECT ANSWER>>>>B. no, because
of the divorce, it was not an arms length agreement
A property was worth $289,000 if capitalized at 4%. What is it worth if it capitalized at 5%?
A. $185,000
B. $231,200
C. $300,000
D. $325,000 - CORRECT ANSWER>>>>B. $231,200
$289,000 x 4% = $11,560 divided by 5% = $231,200
An heirloom chandelier in a house would be considered:
A. chattel
B. personal property
C. a fixture
D. a trade fixture - CORRECT ANSWER>>>>C. a fixture
An owner of a life estate died and the land passed to the remainderman. What interest would the
remainderman receive?
A. estate in reversion
B. life estate
C. estate at will
D. estate in fee simple - CORRECT ANSWER>>>>D. estate in fee simple
Which of the following BEST describes the extent of an owner's rights in land?
A. the surface of the land only
B. the land and five miles below certain mineral rights
C. the surface of the land up to infinity
, D. the land from the center of the earth up to infinity - CORRECT ANSWER>>>>D. the land
from the center of the earth up to infinity
Which of the following does NOT make loans?
A. the secondary mortgage market
B. the federal reserve
C. savings and loans
D. commercial banks - CORRECT ANSWER>>>>A. the secondary mortgage market
What can the VA require a veteran do when applying for a loan?
A. make the down payment directly to the VA
B. make a down payment in cash
C. make the veteran immediately assume liability for the VA guaranty amount
D. NOT allow the veteran to make prepayments on the principal amount - CORRECT
ANSWER>>>>C. make the veteran immediately assume liability for the VA guaranty amount
Which of the following ways of advertising would be allowed under the Federal Truth In
Lending Laws (Regulation Z)?
A. $10,000 assumable loan in a working man's neighborhood
B. shady acres - $10,000 down
C. shady acres - guaranteed to double in value in 5 years
D. shady acres - payments less than rent - CORRECT ANSWER>>>>D. shady acres - payments
less than rent
A son and daughter in law wanted to buy their parents house and assume the mortgage. The son
and daughter in law had just gone through bankruptcy. Which of the following clauses in a
mortgage would prevent this sale and assumption from taking place?
A. acceleration clause
B. alienation clause
C. subordination clause
D. defeasance clause - CORRECT ANSWER>>>>B. alienation clause
Which non governmental organization has its greatest investment in first mortgages on single
family residences?
A. insurance companies
B. commercial banks
C. savings and loans
D. federal housing administration - CORRECT ANSWER>>>>C. savings and loans
Which of the following loans gives a borrower the lowest monthly payment?
QUESTIONS 2025 UPDATED
VERIFIED
In doing a market analysis, you find a recently sold property where the owners had just gone
through a divorce. It was listed for $60,000 for 3 months but sold for $40,000. Would you use
this as a comparable?
A. no, because it had only been listed for 3 months
B. no, because of the divorce, it was not an arms length agreement
C. yes, you would use the actual sales price of $40,000
D. yes, because it was a comparable type property - CORRECT ANSWER>>>>B. no, because
of the divorce, it was not an arms length agreement
A property was worth $289,000 if capitalized at 4%. What is it worth if it capitalized at 5%?
A. $185,000
B. $231,200
C. $300,000
D. $325,000 - CORRECT ANSWER>>>>B. $231,200
$289,000 x 4% = $11,560 divided by 5% = $231,200
An heirloom chandelier in a house would be considered:
A. chattel
B. personal property
C. a fixture
D. a trade fixture - CORRECT ANSWER>>>>C. a fixture
An owner of a life estate died and the land passed to the remainderman. What interest would the
remainderman receive?
A. estate in reversion
B. life estate
C. estate at will
D. estate in fee simple - CORRECT ANSWER>>>>D. estate in fee simple
Which of the following BEST describes the extent of an owner's rights in land?
A. the surface of the land only
B. the land and five miles below certain mineral rights
C. the surface of the land up to infinity
, D. the land from the center of the earth up to infinity - CORRECT ANSWER>>>>D. the land
from the center of the earth up to infinity
Which of the following does NOT make loans?
A. the secondary mortgage market
B. the federal reserve
C. savings and loans
D. commercial banks - CORRECT ANSWER>>>>A. the secondary mortgage market
What can the VA require a veteran do when applying for a loan?
A. make the down payment directly to the VA
B. make a down payment in cash
C. make the veteran immediately assume liability for the VA guaranty amount
D. NOT allow the veteran to make prepayments on the principal amount - CORRECT
ANSWER>>>>C. make the veteran immediately assume liability for the VA guaranty amount
Which of the following ways of advertising would be allowed under the Federal Truth In
Lending Laws (Regulation Z)?
A. $10,000 assumable loan in a working man's neighborhood
B. shady acres - $10,000 down
C. shady acres - guaranteed to double in value in 5 years
D. shady acres - payments less than rent - CORRECT ANSWER>>>>D. shady acres - payments
less than rent
A son and daughter in law wanted to buy their parents house and assume the mortgage. The son
and daughter in law had just gone through bankruptcy. Which of the following clauses in a
mortgage would prevent this sale and assumption from taking place?
A. acceleration clause
B. alienation clause
C. subordination clause
D. defeasance clause - CORRECT ANSWER>>>>B. alienation clause
Which non governmental organization has its greatest investment in first mortgages on single
family residences?
A. insurance companies
B. commercial banks
C. savings and loans
D. federal housing administration - CORRECT ANSWER>>>>C. savings and loans
Which of the following loans gives a borrower the lowest monthly payment?
