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Principles of Real Estate 2 Practice Test
Aceable Questions with Detailed Verified
Answers (100% Correct Answers) /Already
Graded A+
What term describes a property that is owned by a lender because a third-
party buyer couldn't be found at a foreclosure auction?
Ans: REO
A type of SPV that holds commercial and residential mortgages in trust,
assembles said mortgages into pools based on risk, and issues bonds
(securities) on these pools to sell to investors in the secondary mortgage
market is a(n):
Ans: Real Estate Mortgage Investment Conduit (REMIC)
Julio considers leasing an apartment unit from Bruno, the landlord of an
apartment complex. Bruno really wants Julio to sign so the complex doesn't
have vacancies. To convince Julio, Bruno offers to lower Julio's rent $75 per
month for the first six months of Julio's lease. Bruno is offering Julio:
Ans: a concession
How would you find the interest for a $12,000 loan with an interest rate of
10% over thirteen months?
Ans: ($12,000 x 10%) / 12 X 13 = interest
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What is the name for the sworn statement in which the seller assures the
title company (and the buyer) that there are no liens, unpaid bills for repairs or
improvements, or undisclosed defects in the title?
Ans: affidavit as to debts and lients
What act requires that applicable contracts have a 7 day "cooling-off" period
for buyers during which buyers can cancel their contract for any reason and
get their money back?
Ans: Interstate Land Sales Full Disclosure Act
Which appraisal principle states that maximum value is realized when land use
is in harmony with surrounding standards?
Ans: Principle of Conformity
Which is NOT one of the three approaches to value?
Ans: anticipation
What is the difference between actual and constructive notice?
Ans: Actual notice is direct or first-hand knowledge; constructive notice is
the assumption of knowledge because that knowledge is in the public record.
How many feet are in a mile?
Ans: 5,280
In terms of syndicates, what is a general partnership?
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Ans: A partnership where all members equally share responsibilities, profits,
and losses.
After the bank failures in the 1920s and 1930s, Congress created what
institution to insure customer deposits, supervise financial institutions for
safety and soundness, make large financial institutions resolvable, and manage
receiverships?
Ans: FDIC
What does "REO" stand for?
Ans: Real Estate Owned
A buyer purchased property from a seller. Shortly after closing, the buyer
discovered that there were serious flaws in the title that made it unlikely that
the property could be resold in the future. What is the buyer's best course of
action?
Ans: Because the buyer has accepted the deed, the only recourse is to sue
the seller under any covenants contained in the deed.
Which of the following would be used to modify a will?
Ans: a codicil
On the Closing Disclosure, prorated interest paid before closing on an
existing assumed mortgage is a:
Ans: credit to the buyer and debit to the seller
Click here for more: Scholarsnexus - Stuvia US
Principles of Real Estate 2 Practice Test
Aceable Questions with Detailed Verified
Answers (100% Correct Answers) /Already
Graded A+
What term describes a property that is owned by a lender because a third-
party buyer couldn't be found at a foreclosure auction?
Ans: REO
A type of SPV that holds commercial and residential mortgages in trust,
assembles said mortgages into pools based on risk, and issues bonds
(securities) on these pools to sell to investors in the secondary mortgage
market is a(n):
Ans: Real Estate Mortgage Investment Conduit (REMIC)
Julio considers leasing an apartment unit from Bruno, the landlord of an
apartment complex. Bruno really wants Julio to sign so the complex doesn't
have vacancies. To convince Julio, Bruno offers to lower Julio's rent $75 per
month for the first six months of Julio's lease. Bruno is offering Julio:
Ans: a concession
How would you find the interest for a $12,000 loan with an interest rate of
10% over thirteen months?
Ans: ($12,000 x 10%) / 12 X 13 = interest
,Page | 2
Click here for more: Scholarsnexus - Stuvia US
What is the name for the sworn statement in which the seller assures the
title company (and the buyer) that there are no liens, unpaid bills for repairs or
improvements, or undisclosed defects in the title?
Ans: affidavit as to debts and lients
What act requires that applicable contracts have a 7 day "cooling-off" period
for buyers during which buyers can cancel their contract for any reason and
get their money back?
Ans: Interstate Land Sales Full Disclosure Act
Which appraisal principle states that maximum value is realized when land use
is in harmony with surrounding standards?
Ans: Principle of Conformity
Which is NOT one of the three approaches to value?
Ans: anticipation
What is the difference between actual and constructive notice?
Ans: Actual notice is direct or first-hand knowledge; constructive notice is
the assumption of knowledge because that knowledge is in the public record.
How many feet are in a mile?
Ans: 5,280
In terms of syndicates, what is a general partnership?
, Page | 3
Click here for more: Scholarsnexus - Stuvia US
Ans: A partnership where all members equally share responsibilities, profits,
and losses.
After the bank failures in the 1920s and 1930s, Congress created what
institution to insure customer deposits, supervise financial institutions for
safety and soundness, make large financial institutions resolvable, and manage
receiverships?
Ans: FDIC
What does "REO" stand for?
Ans: Real Estate Owned
A buyer purchased property from a seller. Shortly after closing, the buyer
discovered that there were serious flaws in the title that made it unlikely that
the property could be resold in the future. What is the buyer's best course of
action?
Ans: Because the buyer has accepted the deed, the only recourse is to sue
the seller under any covenants contained in the deed.
Which of the following would be used to modify a will?
Ans: a codicil
On the Closing Disclosure, prorated interest paid before closing on an
existing assumed mortgage is a:
Ans: credit to the buyer and debit to the seller
