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MN Real Estate Salesperson Exam 1 > 2.8 > Flashcards

Flashcards in 2.8 Deck (45)
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0
Q

The _______ is the Settlement Statement that a buyer receives with the actual settlement costs.

A

HUD-1

1
Q

The _______ is a disclosure form that gives an estimate of settlement costs.

A

Good Faith Estimate (GFE)

2
Q

The _____ is the name of the consumer protection act that eliminates kickback and referral fees for settlement services.

A

Real Estate Settlement Procedures Act (RESPA)

3
Q

Under Regulation Z, disclosure must be made of _______.

A

Credit terms

4
Q

Under Regulation Z, disclosure must be made of finance charges, APR, total number of payments, total sales price, and _______.

A

Amount Financed

5
Q

________ is when a borrower recieves the HUD-1 Settlement Statement.

A

One day before settlement

6
Q

RESPA is a consumer protection statute that covers loans secured with a mortgage placed on residential properties consisting of ______ number of units.

A

One to four

7
Q

_______ enforces RESPA.

A

HUD

8
Q

The two main purposes of RESPA are to help consumers shop for settlement services and to _______.

A

Eliminate kickbacks

9
Q

The ______ enforces the Fair Credit Reporting Act (FCRA).

A

Federal Trade Commission

10
Q

_______ is the term for a refusal to offer loans to certain areas of a city.

A

Redlining

11
Q

The Good Faith Estimate (GFE) is to be given to the borrower within ______ business days from loan application.

A

3

12
Q

According to _______ the loan length may be advertised to a consumer in number of years or months.

A

Regulation Z

13
Q

According to _______ the simple interest rate may not be advertised to consumers more conspicuously than the annual percentage rate (APR).

A

Regulation Z

14
Q

According to _____ the abbreviation APR should appear in capital letters.

A

Regulation Z

15
Q

The _______ is an act designed to promote accuracy and ensure the privacy of the information used in consumer credit reports.

A

Fair Credit Reporting Act (FCRA)

16
Q

When you sell your primary residence as a single owner, you can make a $______ profit before you owe any capital gains taxes.

A

$250,000

17
Q

_______ are payments that a homeowner CANNOT deduct from income taxes.

A

Principle mortgage payments

18
Q

True or False:

RESPA rules cover most loans, assumptions, refinances, property improvement loans, ad equity lines of credit.

A

True

19
Q

True or False:
RESPA requires disclosures to be given to borrowers at the time of the loan application, and before and at the time of closing.

A

True

20
Q

True or False:

The terms “settlement” and “closing” can be used interchangeably.

A

True

21
Q

The purpose of _______ is to eliminate service provider kickbacks.

A

RESPA

22
Q

The purpose of ____ is to help consumers become better shoppers.

A

RESPA

23
Q

The purpose of _______ is to reduce unnecessary lending costs.

A

RESPA

24
Q

The term “settlement” can be used interchangeably with ______.

A

Closing

25
Q

When a borrower applies for a loan, the lender must furnish a ______.

A

Good Faith Estimate (GFE)

26
Q

________ gives you the most protection against losses resulting from title defects.

A

Owner’s title insurance

27
Q

True or False:
Since a life estate ends at death, and because the owner of the life estate cannot leave it to his/her heirs, a life estate is not an estate of inheritance.

A

True

28
Q

______ is a pending law suit associated with property.

A

Lis pendens

29
Q

A mortgagee’s title insurance policy covers the _______.

A

Lender

30
Q

The mortgagee is the ____________.

A

Lender

31
Q

The morgagor is the _________.

A

Property owner

32
Q

When a single person owns real estate, it is called ________.

A

Tenancy in Severalty

33
Q

If two unrelated people purchase a property and want to make sure that if one of them dies, the deceased interests will go to his/her heirs they should hold the property as _________.

A

Tenants in common

34
Q

_________ is a type of ownership structure that automatically vests to the surviving owners.

A

Joint Tenancy

35
Q

_______ is a type of ownership structure that has inheritance rights.

A

Tenants in common

36
Q

When rights go to a surviving spouse, the ownership type is _______.

A

Joint tenancy

37
Q

_______ is the act of handing the deed over.

A

Alienation

38
Q

The ________ signs the deed.

A

Seller

39
Q

________ is the type of deed that is most desirable for a buyer.

A

Warranty deed

40
Q

_______ is the type of deed that will hold the property by force os law rather than by title.

A

Bargain and sale deed

41
Q

The covenant that warrants the grantee will not be bothered by other claims of interest in the property is ________.

A

Quiet enjoyment

42
Q

True or False:

A built-in stove is considered real property.

A

True

43
Q

“Chattel” is another term for __________.

A

Personal property

44
Q

True or False:

In order to make a deed valid, only the grantors need to sign it.

A

True