Principles of Real Estate 2 Practice Test
Aceable Questions & Answers(RATED
A+)
REO - ANSWER 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) - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER Which appraisal principle states that maximum value is realized
when land use is in harmony with surrounding standards?
anticipation - ANSWER 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. - ANSWER What is the difference between actual
and constructive notice?
5,280 - ANSWER How many feet are in a mile?
A partnership where all members equally share responsibilities, profits, and losses. - ANSWER In
terms of syndicates, what is a general partnership?
FDIC - ANSWER 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 - ANSWER 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. - ANSWER 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 - ANSWER Which of the following would be used to modify a will?
credit to the buyer and debit to the seller - ANSWER On the Closing Disclosure, prorated interest
paid before closing on an existing assumed mortgage is a:
modifications made at the tenant's expense - ANSWER 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. - ANSWER What is one way
investors can get a break on taxes?
ALL real estate license holders - ANSWER For whom is it most important to be aware of and comply
with state and federal fair housing laws?
Aceable Questions & Answers(RATED
A+)
REO - ANSWER 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) - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER 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 - ANSWER Which appraisal principle states that maximum value is realized
when land use is in harmony with surrounding standards?
anticipation - ANSWER 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. - ANSWER What is the difference between actual
and constructive notice?
5,280 - ANSWER How many feet are in a mile?
A partnership where all members equally share responsibilities, profits, and losses. - ANSWER In
terms of syndicates, what is a general partnership?
FDIC - ANSWER 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 - ANSWER 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. - ANSWER 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 - ANSWER Which of the following would be used to modify a will?
credit to the buyer and debit to the seller - ANSWER On the Closing Disclosure, prorated interest
paid before closing on an existing assumed mortgage is a:
modifications made at the tenant's expense - ANSWER 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. - ANSWER What is one way
investors can get a break on taxes?
ALL real estate license holders - ANSWER For whom is it most important to be aware of and comply
with state and federal fair housing laws?
