Barney Fletcher - GA RE School Exam Questions and solutions

Barney Fletcher - GA RE School Exam
Questions and solutions
What is the tax assessment rate for all real property in Georgia? - Correct Answer ✔✔ -
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40%
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What could happen if a property is sold at foreclosure and does not bring enough money to
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satisfy all of the debts secured by the property? - Correct Answer ✔✔ - Outstanding debts
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could be pursued as a result of a deficiency judgement
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When foreclosure occurs, the payment priority of most of the outstanding debts is
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established by: - Correct Answer ✔✔ - Date of recordation
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With a traditional, fully amortized loan, the interest portion of a payment due and made on
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the first day of a month covers the interest for: - Correct Answer ✔✔ - the month prior to the
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month the payment is made
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What type of loan has payments of interest only with the principal paid in full at the end of the
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loan period? - Correct Answer ✔✔ - Straight loan
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If a loan balance is $125,000 and the interest rate is 8%, how much of the next payment is
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paid in interest? - Correct Answer ✔✔ - $833.33
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In a graduated payment mortgage, the ________ changes in an adjustable rate mortgage
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the _______ is subject to change. - Correct Answer ✔✔ - Payment, interest rate
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What clause allows the lender to call the loan balance due and payable because of non-
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payment? - Correct Answer ✔✔ - Acceleration clause lr lr lr lr lr lr lr lr




The amendment that allows a lender to waive his lien priority in favor of another's is known as
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the: - Correct Answer ✔✔ - Subordination amendment
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A purchase money mortgage is a loan made by: - Correct Answer ✔✔ - The seller in a
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transaction
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A mortgage secured by both real and personal property is a(n): - Correct Answer ✔✔ -
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Package Mortgage
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What type of mortgage exists when the lender pays the borrower a fixed amount of money
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every money? - Correct Answer ✔✔ - Reverse Annuity (mortgage)
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, The primary purpose of FHA is to _____ and the primary purpose of VA is to ________. -
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Correct Answer ✔✔ - Insure loans; guarantee loans
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In a Land Sales Contract, who retains legal title to the property? - Correct Answer ✔✔ -
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Seller
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What Act has as its primary purpose to educate borrowers regarding the costs involved in a
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closing so that the borrowers can shop for the best situation for them? - Correct Answer ✔✔
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- Real Estate Settlement Procedures Act (RESPA)
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Which of the following is true regarding a borrower's mortgage payment assuming the
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payment is made on time? - Correct Answer ✔✔ - The payment includes payment of
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interest for the previous 30 days
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Professional appraisals for lenders are usually made in order to: - Correct Answer ✔✔ - lr lr lr lr lr lr lr lr lr lr lr lr lr lr lr




help the lender decided whether to make a loan
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If you have several comparable properties as a part of your market analysis, how do you
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combine the values reached on each in order to estimate the value of the subject property? -
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Correct Answer ✔✔ - By weighing the adjusted sales prices of the comparables and
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adding the weighted dollar amount of the group
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Real estate agents look to many different sources when working on a market analysis.
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Which of the following sources would have the greatest effect on establishing the property's
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value estimate? - Correct Answer ✔✔ - Recently sold comparable properties
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The four economic characteristics of value are: - Correct Answer ✔✔ - Demand, Utility,
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Scarcity, Transferability
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When buyer and seller operate with knowledge and no undue pressure in consummating a
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transaction, it is known as a(n): - Correct Answer ✔✔ - Arms-length transaction
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The type of deprecation used by appraisers in which the amount of depreciated value is
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equal each year is known as the: - Correct Answer ✔✔ - Straight line method
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The value principle which indicates that a buyer will not pay more for a property than a price
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for which he can obtain a property of equal utility is the principle of: - Correct Answer ✔✔ -
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Substitution
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When the total value of combine properties exceeds the total value of the individual
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properties, the result is know as: - Correct Answer ✔✔ - Plottage increment
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Which of the following best describes Transfer Tax? - Correct Answer ✔✔ - A state tax
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which is based on the sales price of the property less any assumed loans at the rate of
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$.10/$100 of the taxable amount.
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