PRINCIPLES OF REAL ESTATE II
MODULE 1 TEST QUESTIONS AND
ANSWERS
y A credit report - reflects the creditworthiness of an individual.
The lender is also called the - Mortgagee
If a contract is executed employing the Texas Veterans Land Board, the purchase price of the land cannot
exceed the lower of: 95% of purchase price, 95% of the appraised value or - $80,000
In some states, a mortgage is considered to be a lien on real property, in other states, a mortgage is
interpreted as: - a transfer of title
What clause in a mortgage addresses the transfer of the property by the borrower? - the alienation
clause
Property taxes, insurance, loan interest, etc., divided at closing between the buyer and seller is called: -
Proration
The Office of Federal Housing Enterprise Oversight (OFHEO) was established: - as an independent entity
within the Department of Housing and Urban Development
A real estate practitioner can advertise which of the following terms and not trigger Regulation Z? - low
down payment
Evidence of the amount and terms of a borrower's debt to a lender is provided by means of a -
promissory note
A house sells for $102,000 and is appraised at $100,00 by a lender who is willing to make a 75% loan-to-
value loan. How much down payment will this house require? - %27,000
The clause that gives the lender the right to call in the note if the mortgaged property is sold or
otherwise conveyed by the borrower is known as the: - alienation clause
Assuming Richard's house appraised for the same as his purchase price, and he made a down payment
of $50,000 with an LTV of 80%, what was his purchase price? - $250,000
Which of the following would be the reason that the issuance of municipal bonds is an advantage to
prospective borrowers? - Investors are willing to pay less for the bonds since the interest is tax-free.
The APR is: - made up of the interest rate combined with the other costs of the loan
Under the Federal Secure and Fair Enforcement of Mortgage Licensing Act of 2008 (SAFE), which of the
following statements is/are TRUE? - All of the above are true.
MODULE 1 TEST QUESTIONS AND
ANSWERS
y A credit report - reflects the creditworthiness of an individual.
The lender is also called the - Mortgagee
If a contract is executed employing the Texas Veterans Land Board, the purchase price of the land cannot
exceed the lower of: 95% of purchase price, 95% of the appraised value or - $80,000
In some states, a mortgage is considered to be a lien on real property, in other states, a mortgage is
interpreted as: - a transfer of title
What clause in a mortgage addresses the transfer of the property by the borrower? - the alienation
clause
Property taxes, insurance, loan interest, etc., divided at closing between the buyer and seller is called: -
Proration
The Office of Federal Housing Enterprise Oversight (OFHEO) was established: - as an independent entity
within the Department of Housing and Urban Development
A real estate practitioner can advertise which of the following terms and not trigger Regulation Z? - low
down payment
Evidence of the amount and terms of a borrower's debt to a lender is provided by means of a -
promissory note
A house sells for $102,000 and is appraised at $100,00 by a lender who is willing to make a 75% loan-to-
value loan. How much down payment will this house require? - %27,000
The clause that gives the lender the right to call in the note if the mortgaged property is sold or
otherwise conveyed by the borrower is known as the: - alienation clause
Assuming Richard's house appraised for the same as his purchase price, and he made a down payment
of $50,000 with an LTV of 80%, what was his purchase price? - $250,000
Which of the following would be the reason that the issuance of municipal bonds is an advantage to
prospective borrowers? - Investors are willing to pay less for the bonds since the interest is tax-free.
The APR is: - made up of the interest rate combined with the other costs of the loan
Under the Federal Secure and Fair Enforcement of Mortgage Licensing Act of 2008 (SAFE), which of the
following statements is/are TRUE? - All of the above are true.
