Best Study Guide Exams Questions and Answers

REE 4103 TEST 1 QUESTIONS WITH REVISED AND UPDATED ANSWERS Based on the following cost estimates, what is the reproduction cost of a 2,350-sq.-ft. house with a 1,100-sq.-ft. basement, a 650-sq.-ft. attached garage, and a 300-sq.-ft. wood deck?· Above-grade residence cost = $77 per square foot; · Basement area cost = $18 per square foot; · Garage cost = $18 per square foot; · Wood deck = $11 per square foot $215,750 $212,450 $200,750 $180,950 - Answer-$215,750 Which method of est...

REE 4103 EXAM 2 QUESTIONS WITH REVISED ANSWERS – UPDATED Bldg with a total cost of $700,000. It is 35 years old. Total useful life expectancy of 100 years. The cost of deferred maintenance is $10,000. Short-lived components include the boiler, roof cover, and floor covering. The cost to replace the boiler is $40,000, the cost to replace the roof covering is $60,000, and the cost to replace the floor finish is $20,000. There are no other short-lived items. What is the cost new of all the lon...

REE 4103 EXAM 2 BLISS QUESTIONS WITH VERIFIED ANSWERS Functional ObsolescenceSuppose the subject is a three-story officebuilding that has no elevator in a market that demands an elevator. The cost of the elevator if installed new when built was $75,000, but the cost to install it today is $210,000. Similar properties with the same problem in this market generally sell for $200,000 less than properties with elevators. The improvement is 14 years old, and the physical depreciation would be 2% per...

REE 4103 EXAM QUESTIONS WITH REVISED ANSWERS – UPDATED The amount of depreciation for the HVAC, Plumbing, Lighting Fixtures, - Answer-20%, 16.7%, 16.7%, 20%, and 33.3% respectively Cost Approach: Residence: 2,000 square feet $100/sf cost to build Basement: 1,000 square feet $50/sf cost to build Garage: 750 square feet $75/sf cost to build Screened porch: 400 square feet $25/sf cost to buid Short-lived items: HVAC $10,000 new effective age of 5 years life expectancy of 25 years Plum...

REE3043 PRACTICE TEST QUESTIONS WITH REVISED ANSWERS – UPDATED!! There will be a fixed payment ( can be a year or monthly ). Then the rate is adjusted - Margin never changes - Index changes as per the terms of the loan - Answer-ARM - adjustable rate mortgage Example : - principle : $400 - interest : $600 - total payment : $1,000 - optional arm allows you to decide how much of your payment you want to send in - whatever you send it goes to pay down the interest first. Anything left ...

REE3043 REVIEW TEST QUESTIONS WITH ALL CORRECT SOLUTIONS As part of their underwriting process, lenders may rely on debt ratios to ascertain whether borrowers have the ability to make regular payments on their mortgages. Utilizing the following information, calculate the total (back-end) debt ratio we learned in class. Monthly principal and interest on mortgage loan: $1500; Monthly tax and insurance payments into escrow: $200; Estimated monthly utility bills: $350; Monthly car loan payment (2 y...

REE 3043 FINAL EXAM WITH VERIFIED QUESTIONS AND ANSWERS ALL UPDATED Equitable title to real estate is: - Answer-The right to obtain legal title conveyed by the contract for sale Since the issues in many transactions are similar, brokers often use standard preprinted contract forms. Generally, the best standard form contracts are those prepared and approved by which of the following parties? - Answer-Local Board of Realtors When contracts for the sale of real property are placed with with ...

REE3043 EXAM 5 QUESTIONS WITH CERTIFIED ANSWERS A client has requested advice on a potential investment opportunity involving an income-producing property. She would like you to determine the internal rate of return of the investment opportunity based on the following information: expected holding period: years; end of first year NOI estimate: $113,900; NOI estimates in subsequent years will grow by 5% per year; price at which the property is expected to be sold at the end of year 5: $1,615,20...

REE3043 CHAPTER 2 QUESTIONS WITH REVIEWED ANSWERS Rules used by courts to determine whether something is a fixture include all except? Intention of the parties Manner of the attachment Law of capture Character of the article and manner of adaption Relation of the parties - Answer-Law of capture Which of these is a titled estate? Fee simple absolute Fee simple conditional Conventional life estate Legal life estate All of these - Answer-All of these While leasehold interests are conside...

REE3043 CHAPTER 4 QUESTIONS WITH CORRECT ANSWERS REVISED AND UPDATED In considering the acquisition of real property, it is important to remember that certain factors may limit ownership rights. Which of the following is an example of a situation in which ownership rights can be fully removed from the property? -land use controls -leasehold interests -homeowner association (HOA) bylaws -defaulted lien - Answer-leasehold interests Given the following information, compute the effective t...

REE 3043 TEST QUESTIONS WITH UPDATED ANSWERS Transactional - Conditions of Sale - Answer-Comparable property's sale price must be adjusted if any general condition represented in the sale was not typical of the market. Transactional - Financing Terms - Answer-Must be adjusted if it is sold below market or non market financing Transactional - Market conditions - Answer-must be adjusted if general market conditions have resulted in a change since its transaction date, resulting in overall ...

REE3043 EXAM QUESTIONS WITH COMPLETE SOLUTIONS Gross salary: 50,000 Mortgage debt : .36 Total : 18,000 Divide by 12 to get monthly Gives you 1,500 a month. The bank does not want you total debt ( including the cost of housing ) to be more than 1,500 a month. - Answer-Total debt ratio - school's - property tax rate - driving time to work - crime in the area - recreational amenities - Answer-Things to consider about choosing an area in which to buy a home. - don't make late payments...

Ree 3043 TEST QUESTIONS WITH CERTIFIED ANSWERS You pay only the interest on the loan for the entire loan and then pay the principle at the end of the loan. - Answer-Interest only loan The lender that takes out a insurance policy against the mortgage in case the borrower defaults. - Answer-PMI - Private Mortgage Insurance It was created to restore confidence in the mortgage market. It had a great impact in the housing finance system. The FHA helped establish rigorous borrowing and lending ...

REE 3043 REVIEW TEST QUESTIONS WITH REVISED ANSWERS affirmative easement - Answer-allows intrusive use of burdened land negative easement - Answer-restricts burdened landowner's use of land lien - Answer-interest in property given as security for repayment of a debt doctrine of constructive notice - Answer-a common law tradition stating that if a person is capable of knowing about a claim or rule, then he or she can be bound by it most common form of legal description for rural pro...

REE 3043 EXAM 1 QUESTIONS WITH REVIEWED ANSWERS Functional Obsolescence - Answer-An older design and the building doesn't function in such a way maintain value Cost approach - Answer-Can you determine the cost to replace reproduce any type of property Fully Amortized Mortgage - Answer-Periodic payments that are sufficient enough to cover the entirety of the loan and the entirety of the interest by the end of the term Interest only loan - Answer-Making payments toward only the interest...

REE 4204 SIRMANS TEST QUESTIONS WITH REVISED ANSWERS 1990's - Answer--dominance of government sponsered enterprises -baby boomers increase demand for housing -low mortgage intrest rates 2000's - Answer--housing market craze -housing prices were raised over 80% -sharp drop of market priced due to unsold homes -several wall street firms demolished and fannie mae and freddie mac were taken over by gov -rebound in housing prices now we have historically low interest rates Amortization ...

REE 4204 SIRMANS EXAM 1 QUESTIONS WITH VERIFIED ANSWERS 1980's - Answer--depository insititutions deregulations and monetary control act -garn st germain act-introduced competition and incentives for risk taking -widespread saving and loan failures do to deregulation 1990's - Answer--dominance of government sponsered enterprises -baby boomers increase demand for housing -low mortgage intrest rates 2000's - Answer--housing market craze -housing prices were raised over 80% -sharp dro...

FSU REE4204 EXAM 3 SIRMANS QUESTIONS WITH CERTIFIED ANSWERS – UPDATED!! The following will negatively affect real estate as a tax shelter: a. extension of the depreciation period b. introduction of a lower rate on capital gains c. elimination of passive loss limitation d. all of the above e. none of the above - Answer-A The following tax law has an effect on the value of real estate: a. capital gains treatment b. length of depreciation for real property c. passive loss limitati...

REE 4204 EXAM QUESTIONS WITH COMPLETE SOLUTIONS What is the market value? - Answer-the average price the market is willing to pay for that asset What is financial leverage and why do you care about it? - Answer-positive (favorable) leverage increases your rate of return What is a call option? - Answer-the ability to pay off the loan early What is a put option? - Answer-allows the borrower to put the property in place of the debt what is the function of an intermediary? - Answer-its ...

REE4204 TEST 1 REVIEW QUESTIONS WITH REVISED ANSWERS A lender gives you a $125,000 thirty-year fixed-rate mortgage at 6.75%, three discount points, monthly payments. Suppose that, before you make any payments, you receive a pay raise so you pay an extra $100 per month in addition to your normal payment. Also, at the end of year five of the mortgage you have an unexpected job transfer thus the house is sold and the mortgage is repaid. The mortgage balance at the end of year five with the extra ...