Principles of Real Estate 2 Practice Test Aceable Questions and Answers Graded A 2024

REO - What term describes a property that is owned by a lender because a third-party buyer couldn't be found at a foreclosure auction? Real Estate Mortgage Investment Conduit (REMIC) - 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): a concession - 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: ($12,000 x 10%) / 12 X 13 = interest - How would you find the interest for a $12,000 loan with an interest rate of 10% over thirteen months? affidavit as to debts and lients - 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? Interstate Land Sales Full Disclosure Act - 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? Principle of Conformity - Which appraisal principle states that maximum value is realized when land use is in harmony with surrounding standards? anticipation - Which is NOT one of the three approaches to value? Actual notice is direct or first-hand knowledge; constructive notice is the assumption of knowledge because that knowledge is in the public record. - What is the difference between actual and constructive notice? 5,280 - How many feet are in a mile? A partnership where all members equally share responsibilities, profits, and losses. - In terms of syndicates, what is a general partnership? FDIC - 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? Real Estate Owned - What does "REO" stand for? Because the buyer has accepted the deed, the only recourse is to sue the seller under any covenants contained in the deed. - 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? a codicil - Which of the following would be used to modify a will? credit to the buyer and debit to the seller - On the Closing Disclosure, prorated interest paid before closing on an existing assumed mortgage is a: modifications made at the tenant's expense - Landlords MUST allow tenants with disabilities to make reasonable modifications to a property so they can enjoy it. But there are also unreasonable modifications a landlord does NOT have to allow; all of the following are unreasonable modifications EXCEPT: Investors can claim tax-sheltered income through depreciation expenses. - What is one way investors can get a break on taxes? ALL real estate license holders - For whom is it most important to be aware of and comply with state and federal fair housing laws? A sales comparison approach does NOT utilize the principle of contribution - Which of the following is FALSE about a sales comparison approach? A tenant remains in possession of a landlord's property without either a current lease agreement or the landlord's approval. Which statement is TRUE in this situation? - the landlord can file suit for possession What protects consumers from abusive settlement practices and provides them with information pertinent to all settlement costs? - RESPA Brenda and her husband are looking to buy a property in New Orleans. The house they are looking to buy was constructed in 1971, and has all the original paint, windows, and flooring. What is required from the leasing agent in this situation? - The agent needs to furnish the buyers with a pamphlet approved by the EPA concerning lead based paint prior to closing