RESIDENTIAL SALES SETS QUESTIONS AND SOLUTIONS
GUARANTEE A+
✔✔Cost Analysis - ✔✔"In the Sales Comparison Approach, a quantitative adjustment
technique in which adjustments are based on cost indicators, such as depreciated
building cost, cost to cure, or permit fees" is the definition of
✔✔Real Property Rights Appraised - ✔✔In traditional appraisal theory, the first step in
the adjustment sequence is an adjustment for
✔✔Fee simple estate - ✔✔"Absolute ownership unencumbered by any other interest or
estate, subject only to the limitations imposed by the governmental powers of taxation,
eminent domain, police power, and escheat" is the definition of
✔✔partial interest - ✔✔"Divided or undivided rights in real estate that represent less
than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life
interest" is the definition of
✔✔leased fee estate - ✔✔When appraising a 4-unit property and at least one unit is
leased, the property rights would be
✔✔affirmative easement - ✔✔"The right to perform a specific act on a property owned
by another" is the definition of
✔✔easement in gross - ✔✔"An easement that benefits a legal person or entity
(individual, corporation, partnership, LLC, government entity, etc.) and not a particular
tract of land; an easement having a servient estate but no dominant estate" is the
definition of a(an)
✔✔encroachment - ✔✔"Trespassing on the domain of another" is the definition of
✔✔condominium - ✔✔"A multiunit structure, or a unit within such a structure, with a
condominium form of ownership" is the definition of a
✔✔fee - ✔✔The most desirable form of timesharing is called ___________ timesharing.
✔✔joint tenancy and tenancy by survivorship - ✔✔Which ownerships include a right of
survivorship?
✔✔both general and limited partners - ✔✔A limited partnership has
✔✔they can be either a private or public partnership - ✔✔Which statement is TRUE
about syndications?
,✔✔leased fee - ✔✔___________ interest is defined as the ownership interest held by
the lessor, which includes the right to receive the contract rent specified in the lease
plus the reversionary right when the lease expires.
✔✔only one - ✔✔An estate in severalty involves ____________ owner(s).
✔✔joint tenancy and tenancy by entirety - ✔✔Which type of ownership includes a right
of survivorship?
✔✔life - ✔✔A remainderman is found in a __________ interest.
✔✔tenancy by entirety - ✔✔An estate that is restricted to husband and wife only is
called
✔✔partnership - ✔✔"A business arrangement in which two or more persons jointly own
a business and share in its profits and losses" is the definition of
✔✔easement in gross - ✔✔"An easement that benefits a legal person or entity
(individual, corporation, partnership, LLC, government entity, etc.) and not a particular
tract of land; an easement having a servient estate but no dominant estate" is the
definition of an
✔✔mortgage - ✔✔A mortgage in which a party other than the borrower assures
payment on default by the mortgagor in return for the payment of a premium, e.g., FHA-
insured mortgages, private mortgage insurance (PMI).
✔✔0, $25,000 - ✔✔A property has a first mortgage of $120,000, a second mortgage of
$30,000, and a third mortgage of $15,000. It is foreclosed and sold for $145,000. The
holder of the third mortgage gets $________ and the holder of the second mortgage
receives $ _________.
✔✔first - ✔✔"A mortgage that has priority over all other mortgage liens on a property" is
a ___________ mortgage.
✔✔$4,568.75 - ✔✔A purchaser bought a property for $215,000, put 15% down and
borrowed the rest at 6.75% interest for 25 years. The lender charged 2.5 points at the
closing. How much was paid for the points?
✔✔Fannie Mae, Freddie Mac, and Ginnie Mae - ✔✔The primary participants in the
secondary mortgage market are
✔✔an adjustable rate mortgage - ✔✔An ARM is
✔✔installment sale contract - ✔✔Another name for a land contract is a(n)
, ✔✔attractive when rates are rising - ✔✔Mortgage assumptions are:
✔✔tend to offer favorable terms - ✔✔Mortgages that are either insured by the FHA or
guaranteed by the VA:
✔✔a transaction involved non-market financing - ✔✔Cash equivalency adjustments are
typically made when:
✔✔0, $15,000 - ✔✔A property has a first mortgage of $125,000, a second mortgage of
$30,000, and a third mortgage of $10,000. It is foreclosed and sold for $140,000. In this
situation, the holder of the third mortgage gets $________ and the holder of the second
mortgage receives $ _________.
✔✔installment sale contract - ✔✔Another name for a land contract is a(n)
✔✔fixed rate - ✔✔A mortgage with equal payments for each period over the length of
the loan is called a __________ loan.
✔✔graduated payment - ✔✔Mortgages with payments that start out low and gradually
increase are called _____________ loans.
✔✔seller financed - ✔✔A cash equivalency adjustment is required when the loan is:
✔✔Fannie Mae - ✔✔Which of these does NOT originate mortgage loans?
✔✔buy down - ✔✔"A lump-sum payment or series of payments to the lender that
reduces the interest payments of the borrower" is the definition of a(n)
✔✔conventional - ✔✔"Mortgages that are neither insured nor guaranteed by an agency
of the government, although they may be privately insured" is the definition of
______________ mortgages.
✔✔mortgage - ✔✔"A pledge of a described property interest as collateral or security for
the repayment of a loan under certain terms and conditions" is the definition of a
✔✔savings and loans - ✔✔Most _______________were chartered primarily to provide
residential mortgages for the local areas.
✔✔times adjustments - ✔✔Market condition adjustments are also commonly known as:
✔✔unrelated, best - ✔✔The definition of arms-length is a transaction between
___________ parties acting in their own _______ interests.
GUARANTEE A+
✔✔Cost Analysis - ✔✔"In the Sales Comparison Approach, a quantitative adjustment
technique in which adjustments are based on cost indicators, such as depreciated
building cost, cost to cure, or permit fees" is the definition of
✔✔Real Property Rights Appraised - ✔✔In traditional appraisal theory, the first step in
the adjustment sequence is an adjustment for
✔✔Fee simple estate - ✔✔"Absolute ownership unencumbered by any other interest or
estate, subject only to the limitations imposed by the governmental powers of taxation,
eminent domain, police power, and escheat" is the definition of
✔✔partial interest - ✔✔"Divided or undivided rights in real estate that represent less
than the whole, i.e., a fractional interest such as a tenancy in common, easement, or life
interest" is the definition of
✔✔leased fee estate - ✔✔When appraising a 4-unit property and at least one unit is
leased, the property rights would be
✔✔affirmative easement - ✔✔"The right to perform a specific act on a property owned
by another" is the definition of
✔✔easement in gross - ✔✔"An easement that benefits a legal person or entity
(individual, corporation, partnership, LLC, government entity, etc.) and not a particular
tract of land; an easement having a servient estate but no dominant estate" is the
definition of a(an)
✔✔encroachment - ✔✔"Trespassing on the domain of another" is the definition of
✔✔condominium - ✔✔"A multiunit structure, or a unit within such a structure, with a
condominium form of ownership" is the definition of a
✔✔fee - ✔✔The most desirable form of timesharing is called ___________ timesharing.
✔✔joint tenancy and tenancy by survivorship - ✔✔Which ownerships include a right of
survivorship?
✔✔both general and limited partners - ✔✔A limited partnership has
✔✔they can be either a private or public partnership - ✔✔Which statement is TRUE
about syndications?
,✔✔leased fee - ✔✔___________ interest is defined as the ownership interest held by
the lessor, which includes the right to receive the contract rent specified in the lease
plus the reversionary right when the lease expires.
✔✔only one - ✔✔An estate in severalty involves ____________ owner(s).
✔✔joint tenancy and tenancy by entirety - ✔✔Which type of ownership includes a right
of survivorship?
✔✔life - ✔✔A remainderman is found in a __________ interest.
✔✔tenancy by entirety - ✔✔An estate that is restricted to husband and wife only is
called
✔✔partnership - ✔✔"A business arrangement in which two or more persons jointly own
a business and share in its profits and losses" is the definition of
✔✔easement in gross - ✔✔"An easement that benefits a legal person or entity
(individual, corporation, partnership, LLC, government entity, etc.) and not a particular
tract of land; an easement having a servient estate but no dominant estate" is the
definition of an
✔✔mortgage - ✔✔A mortgage in which a party other than the borrower assures
payment on default by the mortgagor in return for the payment of a premium, e.g., FHA-
insured mortgages, private mortgage insurance (PMI).
✔✔0, $25,000 - ✔✔A property has a first mortgage of $120,000, a second mortgage of
$30,000, and a third mortgage of $15,000. It is foreclosed and sold for $145,000. The
holder of the third mortgage gets $________ and the holder of the second mortgage
receives $ _________.
✔✔first - ✔✔"A mortgage that has priority over all other mortgage liens on a property" is
a ___________ mortgage.
✔✔$4,568.75 - ✔✔A purchaser bought a property for $215,000, put 15% down and
borrowed the rest at 6.75% interest for 25 years. The lender charged 2.5 points at the
closing. How much was paid for the points?
✔✔Fannie Mae, Freddie Mac, and Ginnie Mae - ✔✔The primary participants in the
secondary mortgage market are
✔✔an adjustable rate mortgage - ✔✔An ARM is
✔✔installment sale contract - ✔✔Another name for a land contract is a(n)
, ✔✔attractive when rates are rising - ✔✔Mortgage assumptions are:
✔✔tend to offer favorable terms - ✔✔Mortgages that are either insured by the FHA or
guaranteed by the VA:
✔✔a transaction involved non-market financing - ✔✔Cash equivalency adjustments are
typically made when:
✔✔0, $15,000 - ✔✔A property has a first mortgage of $125,000, a second mortgage of
$30,000, and a third mortgage of $10,000. It is foreclosed and sold for $140,000. In this
situation, the holder of the third mortgage gets $________ and the holder of the second
mortgage receives $ _________.
✔✔installment sale contract - ✔✔Another name for a land contract is a(n)
✔✔fixed rate - ✔✔A mortgage with equal payments for each period over the length of
the loan is called a __________ loan.
✔✔graduated payment - ✔✔Mortgages with payments that start out low and gradually
increase are called _____________ loans.
✔✔seller financed - ✔✔A cash equivalency adjustment is required when the loan is:
✔✔Fannie Mae - ✔✔Which of these does NOT originate mortgage loans?
✔✔buy down - ✔✔"A lump-sum payment or series of payments to the lender that
reduces the interest payments of the borrower" is the definition of a(n)
✔✔conventional - ✔✔"Mortgages that are neither insured nor guaranteed by an agency
of the government, although they may be privately insured" is the definition of
______________ mortgages.
✔✔mortgage - ✔✔"A pledge of a described property interest as collateral or security for
the repayment of a loan under certain terms and conditions" is the definition of a
✔✔savings and loans - ✔✔Most _______________were chartered primarily to provide
residential mortgages for the local areas.
✔✔times adjustments - ✔✔Market condition adjustments are also commonly known as:
✔✔unrelated, best - ✔✔The definition of arms-length is a transaction between
___________ parties acting in their own _______ interests.
