Tennessee Real Estate Exam QUESTIONS AND VERIFIED
SOLUTIONS 2
Conditional use permit or zoning variance - ✔✔A land owner wishes to build a
neighborhood grocery store on a busy street in the area zoned for residential use which of
the following would most likely be used to obtain permission for the store The federally
subsidized flood insurance policy - ✔✔Referred to the scenario in the figure book booklet
see link below to answer this question should flooding occur and cause damage to the
property the Parker should seek payment from Provide the buyer with contract information
for the local planning and zoning office to confirm the zoning and determine whether it
permits his use - ✔✔A broker is showing a buyer one of his residential listings the buyer
says he wants to establish a day care center for seniors in the property the property has
been used for a daycare center for no more than five children how should the broker advise
his buyer Escheat - ✔✔A property owner died having willed his real property to his two
daughters there is still a chance that they could lose the land for a variance of reasons but
it cannot be taken through A court may order the return of the property to the original
owner - ✔✔If continues for property use are included in a deed and these conditions are
violated what is the most severe potential penalty Lender wants to sell the mortgage to the
secondary market - ✔✔A formal appraisal will always be required when the Business
district zoned for a six story office building - ✔✔If all other factors are equal in which
location is a parking lot likely to bring the highest sale price Setting a listing price - ✔✔A
competitive market analysis is most often used for Were located near the property being
listed - ✔✔When compiling a competitive market analysis a broker would look for
comparable properties that The original cost of the building - ✔✔When preparing a market
data estimate of value which of the following categories of adjustment is not essential The
first sold - ✔✔Three individual homes in the neighborhood were listed at the same time in a
market where demand was constant according to the law of supply and demand which
would have sold for the lowest price An insurance company - ✔✔The FHA functions most
like Vary over the life of the loan depending on fluctuations in the interest-rate to which the
loan is referenced - ✔✔When a home is purchased using an arm the monthly loan payment
on the mortgage will Confirm with the sellers broker the lender and the closing entity that
the closing must be delayed to allow for the seven day waiting period after the final GFE
and the TI L statements Are received - ✔✔A broker and the buyers he represents are
anxiously awaiting the closing on their new home the closing is scheduled in four days the
buyer inform the broker that they just received a reverse good faith estimate and Truth in
lending disclosure form from the lender indicating the annual percentage rate on their loan
, has increased by 0.3% based on the mortgage disclosure improvement act of 2009 what
action should the broker take in this situation Commission sales - ✔✔Even if a loan
applicants current income seems adequate to qualify for certain loan the equal credit
opportunity act allows a lender to refuse the loan as a high risk if the applicants main
source of income is More variety of loan programs available - ✔✔In helping a buyer to
select a lender if the buyer believes he has good credit and his income is documentable as
a salary and by tax returns the licensee might recommend a mortgage banker instead of a
mortgage broker for all of the following reasons except A couple in their late 60s who need
to tap their home equity to help cover their expenses but do you not want to sell their
house - ✔✔Which of the following consumers would be able to derive the most benefit
from a reverse mortgage Foreclosure is usually simpler and faster - ✔✔When the sellers
are lending part of the purchase price they may secure the debt either with a deed of trust
or a mortgage for the seller one benefit of the deed of trust is that $850,000 - ✔✔Jack is
preparing a comparative market analysis on a five year old vacant two-story 10,000 square-
foot office building on 1 acre property Jack knows that a vacant lot next-door of about the
same size just sold for 100,000 he also knows that market value for comparable office
space today would be $100 per square foot the owner agrees with Jack that his building
has experienced a yearly 3% depreciation of its value what should jack recommend as a
selling price $90,426 - ✔✔An owner lists his Home and agrees to pay 6% commission
provides he nets $10,000 after paying the commission and the balance of his mortgage
which is 75,000 to the nearest dollar what should the selling price be to net the owner his
$10,000 $267 - ✔✔A home buyer is obtaining a fully Amortized loan in the amount of
140,000 the savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%
to the nearest dollar what is the difference between the monthly payments for these two
loans 682 - ✔✔Refer to the scenario in the booklet to answer this question the contract
provided that the heating oil would be prorated as of the close of the sale what dollar
amount will be owed to the seller $696 - ✔✔A buyer wants to purchase a home for 60,000
the lender appraises the home for 58,000 the offer to finance it with an 80% loan to value
loan charging a loan origination fee of 1.5 points how much will the buyer's loan origination
fee be Merger of titles - ✔✔An easement can be terminated by Should be specifically
excluded in the contract since it is a fixture - ✔✔Refer to the scenario in the figure booklet
to answer this question since the Garcias wish to retain the automatic garage door opener
it Specify questionable items of property in the written sales contract - ✔✔In the sale of
property there is often confusion over whether an item as a fixture or personal property
what is the best way to avoid this confusion Prior Appropriation - ✔✔Although states make
specific laws governing water rights and the rights in land that borders water most states
SOLUTIONS 2
Conditional use permit or zoning variance - ✔✔A land owner wishes to build a
neighborhood grocery store on a busy street in the area zoned for residential use which of
the following would most likely be used to obtain permission for the store The federally
subsidized flood insurance policy - ✔✔Referred to the scenario in the figure book booklet
see link below to answer this question should flooding occur and cause damage to the
property the Parker should seek payment from Provide the buyer with contract information
for the local planning and zoning office to confirm the zoning and determine whether it
permits his use - ✔✔A broker is showing a buyer one of his residential listings the buyer
says he wants to establish a day care center for seniors in the property the property has
been used for a daycare center for no more than five children how should the broker advise
his buyer Escheat - ✔✔A property owner died having willed his real property to his two
daughters there is still a chance that they could lose the land for a variance of reasons but
it cannot be taken through A court may order the return of the property to the original
owner - ✔✔If continues for property use are included in a deed and these conditions are
violated what is the most severe potential penalty Lender wants to sell the mortgage to the
secondary market - ✔✔A formal appraisal will always be required when the Business
district zoned for a six story office building - ✔✔If all other factors are equal in which
location is a parking lot likely to bring the highest sale price Setting a listing price - ✔✔A
competitive market analysis is most often used for Were located near the property being
listed - ✔✔When compiling a competitive market analysis a broker would look for
comparable properties that The original cost of the building - ✔✔When preparing a market
data estimate of value which of the following categories of adjustment is not essential The
first sold - ✔✔Three individual homes in the neighborhood were listed at the same time in a
market where demand was constant according to the law of supply and demand which
would have sold for the lowest price An insurance company - ✔✔The FHA functions most
like Vary over the life of the loan depending on fluctuations in the interest-rate to which the
loan is referenced - ✔✔When a home is purchased using an arm the monthly loan payment
on the mortgage will Confirm with the sellers broker the lender and the closing entity that
the closing must be delayed to allow for the seven day waiting period after the final GFE
and the TI L statements Are received - ✔✔A broker and the buyers he represents are
anxiously awaiting the closing on their new home the closing is scheduled in four days the
buyer inform the broker that they just received a reverse good faith estimate and Truth in
lending disclosure form from the lender indicating the annual percentage rate on their loan
, has increased by 0.3% based on the mortgage disclosure improvement act of 2009 what
action should the broker take in this situation Commission sales - ✔✔Even if a loan
applicants current income seems adequate to qualify for certain loan the equal credit
opportunity act allows a lender to refuse the loan as a high risk if the applicants main
source of income is More variety of loan programs available - ✔✔In helping a buyer to
select a lender if the buyer believes he has good credit and his income is documentable as
a salary and by tax returns the licensee might recommend a mortgage banker instead of a
mortgage broker for all of the following reasons except A couple in their late 60s who need
to tap their home equity to help cover their expenses but do you not want to sell their
house - ✔✔Which of the following consumers would be able to derive the most benefit
from a reverse mortgage Foreclosure is usually simpler and faster - ✔✔When the sellers
are lending part of the purchase price they may secure the debt either with a deed of trust
or a mortgage for the seller one benefit of the deed of trust is that $850,000 - ✔✔Jack is
preparing a comparative market analysis on a five year old vacant two-story 10,000 square-
foot office building on 1 acre property Jack knows that a vacant lot next-door of about the
same size just sold for 100,000 he also knows that market value for comparable office
space today would be $100 per square foot the owner agrees with Jack that his building
has experienced a yearly 3% depreciation of its value what should jack recommend as a
selling price $90,426 - ✔✔An owner lists his Home and agrees to pay 6% commission
provides he nets $10,000 after paying the commission and the balance of his mortgage
which is 75,000 to the nearest dollar what should the selling price be to net the owner his
$10,000 $267 - ✔✔A home buyer is obtaining a fully Amortized loan in the amount of
140,000 the savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%
to the nearest dollar what is the difference between the monthly payments for these two
loans 682 - ✔✔Refer to the scenario in the booklet to answer this question the contract
provided that the heating oil would be prorated as of the close of the sale what dollar
amount will be owed to the seller $696 - ✔✔A buyer wants to purchase a home for 60,000
the lender appraises the home for 58,000 the offer to finance it with an 80% loan to value
loan charging a loan origination fee of 1.5 points how much will the buyer's loan origination
fee be Merger of titles - ✔✔An easement can be terminated by Should be specifically
excluded in the contract since it is a fixture - ✔✔Refer to the scenario in the figure booklet
to answer this question since the Garcias wish to retain the automatic garage door opener
it Specify questionable items of property in the written sales contract - ✔✔In the sale of
property there is often confusion over whether an item as a fixture or personal property
what is the best way to avoid this confusion Prior Appropriation - ✔✔Although states make
specific laws governing water rights and the rights in land that borders water most states
