PRINCIPLES OF REAL ESTATE EXAMPREP FULLY
SOLVED EDITION WITH COMPREHENSIVE
PROPERTY QUESTIONS
◉The __________ is considered the most reliable approach to value
because it is based on verifiable market events. Answer: Sales
comparison approach
◉A loss in a property's value due to daily wear and tear is an example of
_______ Answer: Physical deterioration
◉The appraiser will use the cost approach to value: Answer: A unique
building
◉A real property appraisal will contain an analysis of the each of the
following, EXCEPT: Answer: Personal property
◉The appraisal principle of conformity tells us that a house is worth the
most when: Answer: It is in a neighborhood of similarly priced homes
◉Official property value for tax purposes is called: Answer: Assessed
value
,◉The appraisal principle of __________ states that the purchase price of
a property is affected by the expectation of future appeal and benefits.
Answer: Anticipation
◉The best definition of market value is: Answer: The most probable
price a property should bring in a competitive and open market
◉The effective age of a house can be younger than its __________ if it
has been well-maintained. Answer: Chronological age
◉In which approach to value is the appraiser calculating depreciation as
a factor along with land value and replacement cost for a structure?
Answer: The Cost Approach
◉The primary purpose of the FHA is: Answer: To insure loans
◉When a loan is funded, the FHA charges a(n) __________ which can
be paid at closing or added to the loan at funding. Answer: Up-Front
Mortgage Insurance Premium
◉The borrower's monthly payment includes principal and interest plus
one-twelfth of the annual property tax assessment and one-twelfth of the
annual insurance premium. This is a: Answer: Budget loan
, ◉Which of the following statements about the use of gift funds in
government loans is true? Answer: Property must be owner-occupied,
Donor must be a relative, domestic partner, or fiancé, Gift funds may be
used for the entire down payment
◉A person who brings a borrower and a lender together for a fee is
called: Answer: A lender's agent
◉Most of the specific requirements imposed by TILA are found in
_______ Answer: Regulation Z
◉The __________ is the percentage of the lesser of the appraised value
or sales price that the lender will lend Answer: Loan-to-value ratio
◉The Loan Estimate: Answer: Is a detailed breakdown of the cost of
the loan
◉The Equal Credit Opportunity Act prohibits credit discrimination on
the basis of: Answer: Race, Religion, Sex
◉Which of the following is true of property taxes? Answer: Property
taxes create the highest priority lien against property, Unpaid taxes are
an automatic lien and at foreclosure will always be paid first, If property
taxes are not paid, the property will be seized and sold
SOLVED EDITION WITH COMPREHENSIVE
PROPERTY QUESTIONS
◉The __________ is considered the most reliable approach to value
because it is based on verifiable market events. Answer: Sales
comparison approach
◉A loss in a property's value due to daily wear and tear is an example of
_______ Answer: Physical deterioration
◉The appraiser will use the cost approach to value: Answer: A unique
building
◉A real property appraisal will contain an analysis of the each of the
following, EXCEPT: Answer: Personal property
◉The appraisal principle of conformity tells us that a house is worth the
most when: Answer: It is in a neighborhood of similarly priced homes
◉Official property value for tax purposes is called: Answer: Assessed
value
,◉The appraisal principle of __________ states that the purchase price of
a property is affected by the expectation of future appeal and benefits.
Answer: Anticipation
◉The best definition of market value is: Answer: The most probable
price a property should bring in a competitive and open market
◉The effective age of a house can be younger than its __________ if it
has been well-maintained. Answer: Chronological age
◉In which approach to value is the appraiser calculating depreciation as
a factor along with land value and replacement cost for a structure?
Answer: The Cost Approach
◉The primary purpose of the FHA is: Answer: To insure loans
◉When a loan is funded, the FHA charges a(n) __________ which can
be paid at closing or added to the loan at funding. Answer: Up-Front
Mortgage Insurance Premium
◉The borrower's monthly payment includes principal and interest plus
one-twelfth of the annual property tax assessment and one-twelfth of the
annual insurance premium. This is a: Answer: Budget loan
, ◉Which of the following statements about the use of gift funds in
government loans is true? Answer: Property must be owner-occupied,
Donor must be a relative, domestic partner, or fiancé, Gift funds may be
used for the entire down payment
◉A person who brings a borrower and a lender together for a fee is
called: Answer: A lender's agent
◉Most of the specific requirements imposed by TILA are found in
_______ Answer: Regulation Z
◉The __________ is the percentage of the lesser of the appraised value
or sales price that the lender will lend Answer: Loan-to-value ratio
◉The Loan Estimate: Answer: Is a detailed breakdown of the cost of
the loan
◉The Equal Credit Opportunity Act prohibits credit discrimination on
the basis of: Answer: Race, Religion, Sex
◉Which of the following is true of property taxes? Answer: Property
taxes create the highest priority lien against property, Unpaid taxes are
an automatic lien and at foreclosure will always be paid first, If property
taxes are not paid, the property will be seized and sold
