Practice Exam #2 Flashcards by Kimberly Gray

If a mortgage has an adjustable rate but limitations on how much the mortgage rate may adjust over a 6 month period, an annual period and over the life of the loan, this would be called

a cap

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lucius is the borrower on an ARM. If he is on one that allows for the changing of the ARM to a fixed rate mortgage within a specified time frame.. lucius has a

convertible ARM

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a quiet title action is intended to

establish the true ownership of a property

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the power of the gov to impose restrictions on private rights incl. building codes, zoning codes, subdivision regs and property setbacks is called

police power

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Lenders typically follow the bond market because

the same factors that affect the BM also affect mortgage rates

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In some cases of eminent domain where the remaining land is reduced in value, the owner may be able to recieve

severance damages

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an interest in real property can be obtained by

prescription

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a net listing is

a listing agreement that provides a broker with all proceeds received from a sale over a specified amount

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if Leon has a mortgage and decides to transfer title to derrick but fails to inform the lender of the title transfer, the lender can demand payment by means of a class in the mortgage contract called a/an

acceleration clause

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if a lender is issuing an FHA or VA loan, where does the funding originate

Ginnie Mae

Government National Mortgage Association. Provides funds for FHA and VA loans.

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a real estate investment trust/syndicate, requires at least this many investors according to federal law

100

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if a property owner comes home to find home vandalized. what type of insurance would damage be covered under

hazard

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How does FHA insure loans?

Mutual Mortgage Insurance

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under which law is it not permissible for a broker to only sell a property under the condition that the broker obtains the listing for future sales?

Sherman Act

Sherman Antitrust act: prohibited for broker to sell property under arrangement that broker is to obtain listing for future sales

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reverse annuity mortgage is also called a

home equity conversion mortgage

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a violation of the sherman antitrust act could be

competing brokers discussing fees and business practices

any discussion between competitors could be seen as an attempt to conspire to set the cost of RE brokerage services, which is in violation of said act.

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which term is best related to lender-borrower

mortgagee-mortgagor

lender borrower

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if either neg covenant or affirmative covenant is breached, the remedies are either

monetary or injunctive releif

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conventional loans differ from FHA loans in that

conventional loans always allow a deficiency judgement

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the bulk sales law is included in

the uniform commercial code

bulk sales laws are intended to prevent business owners from defrauding or evading creditors by transferring all or most of the assets of the business to another individual or entity. the law also intended to avert the possibility of businesses selling their assets below fair market value in which business manages to maintain degree of control

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a public official who establishes value of a property for taxation purposes is called a/an

assessor

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a title search would show

clouds

such as liens or other items

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if a deed is signed by the grantor and not by grantee, the deed is

valid

only needs to be signed by grantor

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When someone is referred to as a “realtor” they are referring to a person who is

either a RE agent or broker that is a member of the local RE board affiliated w the national association of realtors

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according to the EPA, areas which may be complicated by the presence or potential presence of hazardous substance, pollutant or contaminant is called

brownfields

a legal doc pledging a property to the lender as security for payment of a debt is called

A mortgage

if broker obtains exclusive listing, the broker can be reimbursed for expenses when

it's authorized by the seller

according to the DNC rules, all sellers/telemarketers making prerecorded calls/texts must have the consumer's

Written consent

assessment bonds are used by the county to pay for what in a subdivision?

street lights, curbs, sewers and other needs

demand for property requires what 2 factors of the populace to be affective?

desire and means

the party that accepts the endorsed note from the o.g.payee w/o knowledge of any defects is known as the

holder in due course

the worth of a greater valued property is reduced by the proximity of many lesser valued properties of the same type is known as

regression

if an appraiser was using the consumer price index method to determine reproduction c costs, this would be

not reliable ``` reliable methods would be square foot method(most common) cubic foot method unit in place method quantity survey method ```

if a high profile person is an owner of several properties and wants to attempt avoiding a possible foreclosure from becoming a matter becoming public record by being recorded, the would want to give the lender

deed in lieu of foreclosure beneficial in some cases

in regards to the borrower in a mortgage agreement, they would NOT be called the: any of these lessor mortgagee borrower

any

if one party cannot perform their part of the agreed terms of a contract, the victim party can claim the other party

defaulted

fannie mae is owned by

shareholders

what does a planned development consist of?

individual lots and lots owned in common

when a lender has guaranteed a borrow a specific interest rate for a specific time, they've offered them a

lock in period

a fence, a separate detached garage and a septic tank ar all examples of

appurtenances :the things that are attached to the land so that they become part of it as it's passed rot new owners.

if 2 people who are friends take ownership of a property as joint tenants, and later one encumbers their interestt for 25k and subsequently dies, what happens on the encumbered interest

the surviving joint tenant takes title to the property without the obligation to pay on unforclosed liens

If a loan has a loan to value ratio of more than 80% what is required?`

mortgage insurance

What's the best way to determine if a neighboring property is encroaching on another?

obtain a survey

When a real estate agent is viewing the report on the title of a property from the public records, or an abstract of the title, the agent is viewing

an examination of the title

government loans are guaranteed by

One of the indexes used to determine interest rate changes for certain adjustable-rate-mortgages is called

COFI cost of funds index

most trust deeds contain several clauses of

acceleration

which of these would have the most percentage of their funds invested in real estate mortgages?

savings and loan associations

a good-faith estimate of closing costs must be provided by any mortgage lender for a loan under

RESPA

an estate can best be described as

The sum total of all the real and personal property owned by an individual at the time of death

a non conforming loan is a loan amount over

$417k

Permanently leaves home refers to

365 days continuous absence

recent sales of properties w similar attributes are..

comperables

the license issued to practice real estate is considered

a privelage

when a loan is fully paid off it's called

fully amortized

what protects a lender ensuring that the mortgage is an enforceable lien?

title insurance

A federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age sex, marital status, or receipt of income from public assistance programs is called the

ECOA equal credit opportunity act

When dividing the annual net income by the purchase price of the property, you would be determining the

capitalization rate

A unique mortgage that allows for the lender to make payments to the homeowner, allowing owners to convert equity into cash, that does not need to be repaid until the borrower vacates the property is best known as

reverse annuity mortgage also known as Home Equity Conversion Mortgage (HECM)

If a church, school or hospital wishes to relocate to an area zoned exclusively for res use, they could do so by

a conditional use conditional use is reserved for exceptions in the zoning laws that allow for special uses such as for churches.

in oregon, info that is equally available to all RE practitioners and/or parties in a transaction is referred to as

common source

what is sales tax considered

a tax on any tangible personal property

in government surveys of land, why is metes-and-bounds used?

to determine outlines of a certain area

when there is a conflict in limitations on the development of property, which rule applies?

the most restrictive

when a homeowner of personal res, is preparing taxes at the end of the year and they decide to deduct tax paid on personal res, this would be

tax deductible prop taxes paid on a personal res are tax deductible

if a contract includes promises by 2 parties to do something, the contract is

bilateral

when a RE agent is determining the market value of a property by looking at recnt sales of sim properties in nearby areas, the agent is using

comps

The collection of mortgage payments from b borrowers and related responsibilities of a loan servicer is known as

servicing

a deposit that is given to a broker from an interested buyer that has has ALL deposit receipt conditions fulfilled should be given to whom if the buyer decides to back out?

the seller if all dep receipt conditions have been fulfilled, the dep belongs to the seller

depreciated value is considered with which approach?

cost

in order to determine monthly gross rent multiplier on any given property, you would need to

divide the fair market value by monthly rental amount

if ad is offering secured loan, the ad must include

how and to what extent the loan is securd

a mortgage that cab be taken over by the buyer when a home is sold, assuming the buyer qualifies, is called an

assumable mortgage

a "no cash-out refinance" is also sometimes referred to as a

rate and term refinance

when a lender guarantees a specific interest rate for a specific time and a certain cost to the buyer , this is referred to as a:

lock-in rate

someone who acts as an agent and brings 2 or more parties together for any type of transaction, while earning a fee in the end for their efforts can generally be called a/an

broker

What kind of loans do OG fees apply to

Gov. loans oNly

the term "executrix" refers o

a female executor they are typically named in a will

what is given by a commercial bank or other financial institution for a certain time nd certain amount

line of credit

which term is best related to lender-borrower

mortgagee - mortgagor

airways above a property are

public domain

a unique mortgage that allows for the lender to make payments to the borrower utilizing the built up equity in the property that does not have to be paid back until the borrower no longer occupies the property is called a:

HECM home equity conversion mortgage

which deed transfers w/o warrantee whatever interest or title a grantor may have at the time the conveyance is made?

quitclaim deed

it is truster's advantage to incljude

subordination clause bc it allows truster to obtain a later trust deed which will move into prior position, as regards to payment, in case of default.

provision in an agreement requires the owner to give an other party first opp to purchase or lease the prop before he/she offers it for sale/lease to others is known as:

first right of refusal

a CMA will typically include data on

similar properties currently on market, that have recently sold and have been on market but listings have expired

a rule of equity that holds one who causes another to rely on their words or actions shall be prohibited from later taking a contrary position detrimental to the person who is so relied is called:

estoppel

When referring to the "back" or "bottom" ratio, it includes

housing costs as well as all other mostly debt

a mortgage that stars out w/ one rate for the first 5-7 months, then changes to diff rate for rest of term is called

a 2 step mortgage

the statement "present worth to typical users or investors of all rights to future benefits, arising out of property ownership" is best describing

the value of a property

an agency relationship created by express agreement is created by

verbal agreement not all agency relationships are required to be in writing

Method of attachment, adaptability of the attached item, relationship of the parties, intent of the person teaching the item and agreement between parties are:

the standard 5 tests used by courts for a fixture

if a person has limited or complete authority on behalf of another person, granted from a legal doc, this is called

power of attorney

A legal description describes a property and is recognized by law. in addition, it's sufficient to lace and Identify a property without:

oral testimony

The term that is used in reference to FHA and VA loans and that are paid in addition to the 1% loan OG fee is called:

discount points any money paid in addition to typical OG fee.

In certain cases where damage to the value of a property from strict adherence of zoning ordinances would far outweigh any benefit to be derived from enforcement, a person would likely apply for a

variance given out for minor departures from zoning requirements and typically relate to such things as set backs, building height etc..

when a home buyer leases a property w an option to buy, this would be an alternative financing option called a:

lease option

gov loans are guaranteed by

RHS... this and va for gov loans. FHA is conventional but insures gov loans, not guarantees.

if casualty damage happens and landlord receives uninterrupted income while premises is unusable... this is by means of

rent-loss insurance

an agent given power of attorney to act on behalf of a principal for unlimited range of legal matters is called

a universal agent

a fiduciary who holds or controls property for the benefit of another is called

a trustee

if an agent is acting as agent to all principle parties to a transaction, they are entitled to earn commission from each party. Prior to this, what must be procured?

an exchange agreement

OG fees apply to gov loans only. T or F?

F apply to both gov and conv.

when all papers are drawn up correctly and everything is ready for the final steps to close escrow, which typically includes recording the deed... the escrow is called

complete a complete escrow is ready to close the escrow

If a listing agent discloses the agency relationship to the seller before the seller signs the listing agreement, this would be:

legal It's actually required in most states to disclose agency relationship PRIOR to signing

an organization that collects principal and interest payments from borrowers and manages borrowers escrow acct. is called a

servicer

a 2nd mortgage can be best described as

a mortgage w a lean position subordinate to the first mortgage

If a borrower is given a loan where the personal res. is used as security, other than the first trust deed used to purchase the property , and rescinds w/in 3 days.. this loan would be covered under which law?

Federal Truth in Lending borrower has a right o rescind loan w/in 3 days

a lease consists in part an _____ contract between the _____ and the ______.

executory, landlord, tenant.

Practice Exam #2 Flashcards

(109 cards)