Principles of Real Estate 2 Practice Test Aceable Questions & Answers 100% Correct!

REO - ANSWERSWhat term describes a property that is owned by a lender because a third-party buyer couldn't be found at a foreclosure auction? Real Estate Mortgage Investment Conduit (REMIC) - ANSWERSA type of SPV that holds commercial and residential mortgages in trust, assembles said mortgages into pools based on risk, and issues bonds (securities) on these pools to sell to investors in the secondary mortgage market is a(n): a concession - ANSWERSJulio considers leasing an apartment unit from Bruno, the landlord of an apartment complex. Bruno really wants Julio to sign so the complex doesn't have vacancies. To convince Julio, Bruno offers to lower Julio's rent $75 per month for the first six months of Julio's lease. Bruno is offering Julio: ($12,000 x 10%) / 12 X 13 = interest - ANSWERSHow would you find the interest for a $12,000 loan with an interest rate of 10% over thirteen months? affidavit as to debts and lients - ANSWERSWhat is the name for the sworn statement in which the seller assures the title company (and the buyer) that there are no liens, unpaid bills for repairs or improvements, or undisclosed defects in the title? Interstate Land Sales Full Disclosure Act - ANSWERSWhat act requires that applicable contracts have a 7 day "cooling-off" period for buyers during which buyers can cancel their contract for any reason and get their money back? Principle of Conformity - ANSWERSWhich appraisal principle states that maximum value is realized when land use is in harmony with surrounding standards? anticipation - ANSWERSWhich is NOT one of the three approaches to value? Actual notice is direct or first-hand knowledge; constructive notice is the assumption of knowledge because that knowledge is in the public record. - ANSWERSWhat is the difference between actual and constructive notice? 5,280 - ANSWERSHow many feet are in a mile? A partnership where all members equally share responsibilities, profits, and losses. - ANSWERSIn terms of syndicates, what is a general partnership? FDIC - ANSWERSAfter the bank failures in the 1920s and 1930s, Congress created what institution to insure customer deposits, supervise financial institutions for safety and soundness, make large financial institutions resolvable, and manage receiverships? Real Estate Owned - ANSWERSWhat does "REO" stand for? Because the buyer has accepted the deed, the only recourse is to sue the seller under any covenants contained in the deed. - ANSWERSA buyer purchased property from a seller. Shortly after closing, the buyer discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What is the buyer's best course of action? a codicil - ANSWERSWhich of the following would be used to modify a will? credit to the buyer and debit to the seller - ANSWERSOn the Closing Disclosure, prorated interest paid before closing on an existing assumed mortgage is a: