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122 Principles of Real Estate II > Chapter 5 > Flashcards

Chapter 5 Flashcards

1
Q

What does one acre equal?

A. 0.0015625 square miles

B. 4,840 square yards

C. 43,560 square feet

A

D. All of the above

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2
Q

Which statement regarding points is NOT true?

A. In real estate mortgages, a point refers to the origination fee charged by the lender
B. Each point is equal to 1% of the amount of the loan.
C. The primary purpose of buying discount points from the lender is to reduce your closing costs.
D. If a bank charges an up-front fee for the loan, it often expressed in terms of points.

A

C. The primary purpose of buying discount points from the lender is to reduce your closing costs.

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3
Q

Which of the following payments are not paid in arrears?

A. Rent
B. Mortgage principal
C. Interest in a proration
D. Mortgage interest

A

A. Rent

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4
Q

A statutory year has 365 days.

A. True
B. False

A

B. False

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5
Q

Which statement is NOT true regarding prorations at closing for a real estate contract?

A. All property tax prorations will be a credit for the seller.
B. Prorations can be a credit or debit for either party.
C. Sellers must pay their fair share of property taxes.
D. Buyers must pay their fair share of pre-paid interest.

A

B. Prorations can be a credit or debit for either party.

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6
Q

How many square feet are in an acre?

A. 640
B. 43,560
C. 5,280
D. 11,798

A

B. 43,560

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7
Q 
Jim owns 1,920 acres of land. How many sections does he own?
A. 3
B. 2,200
C. 640
D. 10
A

A. 3.

The solution is 1,920 ÷ 640 = 3.

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8
Q

A discount point is 1% of the ________.

A. Sales price
B. Monthly payment
C. Loan amount
D. Interest rate

A

C. Loan amount.

A point is always 1% of the loan amount. Five points would be 5% of the loan amount.

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9
Q

How many square feet are in an acre?

A. 640
B. 43,560
C. 5,280
D. 11,798

A

B. 43,560.

There are 43,560 square feet in an acre.

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10
Q

Length × Width × Height =?

A. A section
B. Square foot
C. Cubic feet
D. Mile

A

C. Cubic feet.

Length times width times height equals cubic feet. A section is 640 acres and a mile is 5,280 feet.

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11
Q

A lot is 150’ × 200’. How many square feet are in the lot?

A. 30,000
B. 70,000
C. 15,000
D. 45,000

A

A. 30,000

The solution is 150’ × 200’ = 30,000’.

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12
Q 
Mark would like to stand out to prospective home buyers and seller as a REALTOR® who has gained in-depth knowledge on technical subjects as well as the fundamentals of real estate. What designation will help Mark do this?
A. GRI
B. CCIM
C. CPM
D. GAA
A

A. GRI.

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13
Q

Mark has several clients who are very interested in the environment and living in home with green features. What designation would help Mark with those clients?

A. CPM
B. GREEN
C. CCIM
D. PMN

A

B. GREEN.

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14
Q

Some of Mark’s clients are over the age of 50 and thinking about retiring, senior living, and downsizing. What designation would help with this?

A. SRES
B. SIOR
C. SFR
D. RAA

A

A. SRES.

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15
Q

Who awards the designation of Certified Property Manager?

A. TREC
B. NAR
C. IREM
D. BOMA

A

C. IREM

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16
Q

An apartment locator who represents just one owner and only sells that owner’s property does not have to have a real estate license.

A. True
B. False
Rationale:

A

The correct answer is A. True.

If the agent leases to the general public, they must be licensed.

17
Q

An Accredited Farm Manager (AFM) possesses the skills, experience, and education to provide land investment analysis and management of day-to-day operations for agricultural enterprises.

A. True
B. False

A

A. True

18
Q

Which statement is true about the National Association of Realtors®?

A. NAR was founded in 1908.
B. The Code of Ethics was adopted in 1913.
C. NAR is the largest trade association in the United States.
D. All of the above

A

D. All of the above

19
Q

A commercial agent is more specialized than a residential sales agent, typically representing either buyers or sellers, but rarely both.

A. True
B. False

A

A. True.

The real estate industry is so much more than simply residential real estate. It encompasses a broad variety of career opportunities that require different strengths.

20
Q

In Texas, once a licensee meets TREC educational requirements; meets guidelines for honesty, integrity, and competency; and passes the National and State portions of the exam; they still must work under the sponsorship of a broker.

A. True
B. False

A

A. True.

Licensees in Texas must find a broker to sponsor them before TREC activates their license.

21
Q

A short sale is an alternative to foreclosure when a homeowner needs to sell and can no longer afford to make their mortgage payments.

A. True
B. False

A

A. True.

A short sale is the sale of a property for less than what the owner still owes on the mortgage. Lenders agree to a short sale because they believe it will net them more money than going forward with a lengthy and costly foreclosure process.

22
Q

Who provides the Residential Leasing and Property Management Agreement?

A. NAR
B. TAR
C. TREC
D. IREM

A

B. TAR.

This 12-page form is also referred to as TAR-2201.

23
Q

The foreclosure process gets its legal basis from a mortgage or deed of trust contract. These contracts give the lender the right to use a property as collateral in case the buyer fails to uphold his or her repayment obligation.

A. True
B. False

A

A. True.

The foreclosure process begins when a borrower defaults or misses a loan or mortgage payment.

24
Q

The property manager’s first responsibility is to realize the maximum profit on the property, consistent with the owner’s instructions.

A. True
B. False

A

A. True

25
Q

Working in real estate always provides security and a defined salary.

A. True
B. False

A

B. False

26
Q

What is NOT one of the government’s powers of acquisition?

A. Eminent domain
B. Condemnation
C. Probate
D. Adverse possession

A

C. Probate.

Probate Law is the legal process of administering the distribution of a deceased person’s estate. The other choices deal directly with options for the government to acquire property.

27
Q

The RSPS is for an agent who specializes in:

A. Resorts and second-home properties
B. Ranch properties
C. Short Sale properties
D. All of the above

A

A. Resorts and second-home properties

28
Q 
Knowledge of wildlife or agricultural tax exemption, fencing, improvement, subsurface, and land rights and topography are all required for the:
A. REO
B. MPR
C. SRES
D. AFM
A

D. AFM

The AFM stands for
Accredited Farm Manager.

29
Q 
The largest trade association and one of the most powerful lobbying group in North America is:
A. A local board
B. TRELA
C. National Association of REALTORS®
D. TREC
A

C. National Association of REALTORS®

30
Q

An agent who may or may not be a member of a local board of realtors, but whose primary business is helping tenants to find property for lease is a(n):

A. Listing agent
B. Apartment locator
C. Buyer’s agent
D. Onsite leasing consultant

A

The correct answer is B. Apartment locator. A listing agent works with sellers, and a buyer’s agent works with buyers.

31
Q 
The certification that teaches agents to help current and former military service members to find housing solution that suit their needs is the:
A. RAA
B. MRP
C. SRS
D. PMN
A

The correct answer is B.

MRP. The Military Relocation Professional certification is presented by the Real Estate Buyer’s Agent Council.

32
Q 
This certification is for agents who facilitate the buying, selling, or management of properties for investment, retirement, or second homes in a resort or recreational area.
A. BROR
B. PMN
C. RSPS
D. RCE
A

C. RSPS.

RSPS is the Resort and Second-Home Property Specialist Certification.

33
Q

The National Association of REALTORS® (NAR) was founded in:

A. Texas
B. 1908
C. Oklahoma
D. 1968

A

B. 1908.

Founded in 1908, NAR is the largest trade association in the United States.

34
Q 
The certification that teaches agents to work with sellers and buyers of short sale and foreclosed
properties is the:
A. SFR
B. RSPS
C. SRES
D. SIOR
A

A. SFR

SFR is the Short Sales & Foreclosure Resource Certification.

122 Principles of Real Estate II (14 decks)

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