Principles of Real Estate Questions and Answers Chapter 2
The area of a triangle is calculated by? - Answers 1/2 base x height
Real Estate agents work with two major subjects that deal with mathematical equations to effectively
deal with? - Answers land and money
A tax imposed on profits gained from the sale of capital assets is called? - Answers Capital Gains Tax
5/8 converted to a decimal = - Answers 0.625
Annual net capital gains is calculated as: - Answers annual net long term capital gains - annual net short
term capital losses
The fee a borrower pays to use borrowed money is: - Answers interest
interest rate x principal gives us: - Answers the amount of simple interest
Property taxes are based on: - Answers fair market value or assessed value of property, depending on
the state
In 4X=48. X=? - Answers 12
Subjective value is: - Answers based on or influenced personal feelings, tastes, and/or opinion
USPAP stands for which of the following? - Answers Uniform Standards of Professional Appraiser
Practice
The _____ has rules and regulations that lay down the basic situations where appraisal by a licensed
appraiser is required. - Answers Texas Real Estate Commission (TREC)
A "best and highest use" must meet the following four criteria, except? - Answers Financially Challenging
FDIC Regulation 12 C.F.R &323.2 defines "market value" as: - Answers the most probable price which a
property should bring in a competitive and open market under all conditions requisite to a fair sale, the
buyer and seller each acting prudently and knowledgeably , and assuming the price is not affected by
unde stimulus.
innate features include items such as: - Answers all of these:
the location, and size of property
the type of roofing
the number of bathrooms
A broker opinion of value, or a broker price opinion, is a examination made by a real estate broker on
the basis of several factors, including all of these, except? - Answers Sellers degree of urgency
, A comparative market analysis (CMA) is a report on? - Answers the estimated value of a property
A Licensed Residential Appraiser is one who is authorized to appraise? - Answers Both of these are
correct
non-complex one to four residential units having a transaction value less than $1 million
complex one to four residential units having a transaction value less than $250k
A $200,000 mortgage loan on a $250,000 home is what "loan to value"? - Answers 0.8
The ______ is a secondary loan for real property, that incorporates the first loan, without paying it off. -
Answers wraparound loan
In a "Texas Bootstrap" loan, All Owner-Builders are required to provide at least ___% of the labor
necessary to build or rehabilitate their housing by working with a state-certified Nonprofit Owner
Builder Housing Provider (NOHP) - Answers 65
Many Lenders require PMI if more than _____ of the property value is financed. - Answers 80%
The _____ market is the market where borrowers and mortgage lenders meet to negotiate terms and
conduct mortgage transactions - Answers Primary mortgage
Adjustable rate Mortgages, condominium mortgages, disaster victims mortgages and energy-efficient
mortgages are all types of loans available through: - Answers FHA
"Fair Isaac Corporation" is better known in the finance market as: - Answers FICO
A discount point is a fee charged by the lender: - Answers equal to 1% of the loan amount
The advantage of seller/owner financing is that: - Answers All of these are potential advantages
the seller may be more flexible on payment schedules
the owner may be able to provide financing for a property that a lending institution would not be willing
finance due to age or condition
the seller may be more willing to finance a buyer with low credit rating
The area of a triangle is calculated by? - Answers 1/2 base x height
Real Estate agents work with two major subjects that deal with mathematical equations to effectively
deal with? - Answers land and money
A tax imposed on profits gained from the sale of capital assets is called? - Answers Capital Gains Tax
5/8 converted to a decimal = - Answers 0.625
Annual net capital gains is calculated as: - Answers annual net long term capital gains - annual net short
term capital losses
The fee a borrower pays to use borrowed money is: - Answers interest
interest rate x principal gives us: - Answers the amount of simple interest
Property taxes are based on: - Answers fair market value or assessed value of property, depending on
the state
In 4X=48. X=? - Answers 12
Subjective value is: - Answers based on or influenced personal feelings, tastes, and/or opinion
USPAP stands for which of the following? - Answers Uniform Standards of Professional Appraiser
Practice
The _____ has rules and regulations that lay down the basic situations where appraisal by a licensed
appraiser is required. - Answers Texas Real Estate Commission (TREC)
A "best and highest use" must meet the following four criteria, except? - Answers Financially Challenging
FDIC Regulation 12 C.F.R &323.2 defines "market value" as: - Answers the most probable price which a
property should bring in a competitive and open market under all conditions requisite to a fair sale, the
buyer and seller each acting prudently and knowledgeably , and assuming the price is not affected by
unde stimulus.
innate features include items such as: - Answers all of these:
the location, and size of property
the type of roofing
the number of bathrooms
A broker opinion of value, or a broker price opinion, is a examination made by a real estate broker on
the basis of several factors, including all of these, except? - Answers Sellers degree of urgency
, A comparative market analysis (CMA) is a report on? - Answers the estimated value of a property
A Licensed Residential Appraiser is one who is authorized to appraise? - Answers Both of these are
correct
non-complex one to four residential units having a transaction value less than $1 million
complex one to four residential units having a transaction value less than $250k
A $200,000 mortgage loan on a $250,000 home is what "loan to value"? - Answers 0.8
The ______ is a secondary loan for real property, that incorporates the first loan, without paying it off. -
Answers wraparound loan
In a "Texas Bootstrap" loan, All Owner-Builders are required to provide at least ___% of the labor
necessary to build or rehabilitate their housing by working with a state-certified Nonprofit Owner
Builder Housing Provider (NOHP) - Answers 65
Many Lenders require PMI if more than _____ of the property value is financed. - Answers 80%
The _____ market is the market where borrowers and mortgage lenders meet to negotiate terms and
conduct mortgage transactions - Answers Primary mortgage
Adjustable rate Mortgages, condominium mortgages, disaster victims mortgages and energy-efficient
mortgages are all types of loans available through: - Answers FHA
"Fair Isaac Corporation" is better known in the finance market as: - Answers FICO
A discount point is a fee charged by the lender: - Answers equal to 1% of the loan amount
The advantage of seller/owner financing is that: - Answers All of these are potential advantages
the seller may be more flexible on payment schedules
the owner may be able to provide financing for a property that a lending institution would not be willing
finance due to age or condition
the seller may be more willing to finance a buyer with low credit rating
