National Final Exam UPDATED Study
Guide ACTUAL QUESTIONS AND
CORRECT ANSWERS
All of the following are true except:
fixtures installed after the mortgage is recorded become subject to that mortgage lien
a person tears down a fence with the intention that it remain permanently down and stacks the
fencing; it becomes real property
trade fixtures installed in a building can be removed by the tenant
a gas furnace installed in a house becomes real property - CORRECT ANSWER a
person tears down a fence with the intention that it remain permanently down and stacks the
fencing; it becomes real property
The conveyance clause in a deed of trust: - CORRECT ANSWER conveys ownership
Which statements are true of a VA loan?
The original veteran is responsible for an assumption, when the new buyer is a veteran and
arranges for a "substitution of entitlement"
The funding fee may be financed
The Government guarantees the entire loan amount
All VA loans require at least a 3% down payment - CORRECT ANSWER The funding
fee may be financed.
A section is 1 mile by 1 mile. How wide is a four-acre (a hint: one acre contains 43,560 sq ft)
easement that runs along the western edge of a section? - CORRECT ANSWER 33 feet
(This is a hard one. A section is 1 mile by 1 mile. This means one edge of a section is 5280
feet (1 mile) long. Four acres (43,560 sq ft x 4 acres) contains a total of 174,240 sq. ft.
174,240 divided by 5280 equals 33. The dimension of this 4 acre easement is 5280 feet long
by 33 feet wide.)
, How many times can the exclusion on capital gains taxes be claimed? - CORRECT
ANSWER One transaction every 24 months
A sale and leaseback arrangement is one in which a seller sells a property to a buyer and then
leases the property back. Which is correct as it applies to a sale and leaseback arrangement?
The seller retains title to the property
The buyer gets possession of the property
The seller retains possession of the property
The buyer receives equitable title only - CORRECT ANSWER The seller retains
possession of the property.
Which statements are true about VA guaranteed loans?
The seller cannot pay all the closings costs, the funding fee or pay off any of the veteran's
debts
The borrower cannot pay discount points
There is a maximum loan amount VA will lend
None of the above - CORRECT ANSWER None of the above
The following statements refer to RESPA regulations except which one?
A good faith estimate of finance costs must be given to a buyer.
Residential transactions financed by federally related mortgage loans.
Discrimination because of race is not allowed
An informational book regarding closing costs must be given to a mortgagor. - CORRECT
ANSWER Discrimination because of race is not allowed.
Which of the following lenders uses its own funds to fund loans that will be sold in the
secondary mortgage market?
Guide ACTUAL QUESTIONS AND
CORRECT ANSWERS
All of the following are true except:
fixtures installed after the mortgage is recorded become subject to that mortgage lien
a person tears down a fence with the intention that it remain permanently down and stacks the
fencing; it becomes real property
trade fixtures installed in a building can be removed by the tenant
a gas furnace installed in a house becomes real property - CORRECT ANSWER a
person tears down a fence with the intention that it remain permanently down and stacks the
fencing; it becomes real property
The conveyance clause in a deed of trust: - CORRECT ANSWER conveys ownership
Which statements are true of a VA loan?
The original veteran is responsible for an assumption, when the new buyer is a veteran and
arranges for a "substitution of entitlement"
The funding fee may be financed
The Government guarantees the entire loan amount
All VA loans require at least a 3% down payment - CORRECT ANSWER The funding
fee may be financed.
A section is 1 mile by 1 mile. How wide is a four-acre (a hint: one acre contains 43,560 sq ft)
easement that runs along the western edge of a section? - CORRECT ANSWER 33 feet
(This is a hard one. A section is 1 mile by 1 mile. This means one edge of a section is 5280
feet (1 mile) long. Four acres (43,560 sq ft x 4 acres) contains a total of 174,240 sq. ft.
174,240 divided by 5280 equals 33. The dimension of this 4 acre easement is 5280 feet long
by 33 feet wide.)
, How many times can the exclusion on capital gains taxes be claimed? - CORRECT
ANSWER One transaction every 24 months
A sale and leaseback arrangement is one in which a seller sells a property to a buyer and then
leases the property back. Which is correct as it applies to a sale and leaseback arrangement?
The seller retains title to the property
The buyer gets possession of the property
The seller retains possession of the property
The buyer receives equitable title only - CORRECT ANSWER The seller retains
possession of the property.
Which statements are true about VA guaranteed loans?
The seller cannot pay all the closings costs, the funding fee or pay off any of the veteran's
debts
The borrower cannot pay discount points
There is a maximum loan amount VA will lend
None of the above - CORRECT ANSWER None of the above
The following statements refer to RESPA regulations except which one?
A good faith estimate of finance costs must be given to a buyer.
Residential transactions financed by federally related mortgage loans.
Discrimination because of race is not allowed
An informational book regarding closing costs must be given to a mortgagor. - CORRECT
ANSWER Discrimination because of race is not allowed.
Which of the following lenders uses its own funds to fund loans that will be sold in the
secondary mortgage market?
