TX Principles Of Real Estate PT 2

Question 1

Most common objective of an appraisal is to develop an opinion of ________ value?

Answer 1

Market value

Question 2

A single value is derived from the three appraisal methods of determining value during the _________ process?

Answer 2

Reconciliation

Question 3

Second step in appraisal process

Answer 3

List data needed

Question 4

Third step in appraisal process

Answer 4

Determine highest and best use

Question 5

First step in appraisal process

Answer 5

State the problem

Question 6

How many hours of appraisal education is required to become an appraisal trainee?

Answer 6

75 hours

Question 7

How many hours of appraisal education is required to become a general certified appraiser?

Answer 7

300 hours

Question 8

The desire for possession or ownership backed by the financial means to satisfy that need is referred to as..?

Answer 8

Effective demand

Question 9

The capacity to satisfy human needs and desires is referred to as…?

Answer 9

Utility

Question 10

Supply of a property in relation to effective demand is known as…?

Answer 10

Scarcity

Question 11

A typical residential appraisal report is issued on a…?

Answer 11

Uniform residential appraisal report

Question 12

The highest price in terms of money which a property will bring in competitive and open market and under all conditions required for a fair sale

Answer 12

Market value

Question 13

The cost of replacing a structure completely destroyed by an insured hazard

Answer 13

Insured value

Question 14

Current value for accounting purposes of an asset expressed as original cost plus capital additions minus accumulated depreciation

Answer 14

Book value

Question 15

A valuation placed upon a piece of property by a public authority as a basis for a levying taxes on the property

Answer 15

Assessed value

Question 16

The price paid for a piece of property regardless of pressure’s motives or intelligence

Answer 16

Market price

Question 17

What is the first step an appraiser takes and valuing the property using the cost approach?

Answer 17

Determine the value of the land as if it were vacant

Question 18

The cost of replacing the subject improvement with one that is the exact replica, having the same quality of workmanship, design and layout, or cost to duplicate an asset is known as?

Answer 18

Reproduction cost

Question 19

The cost to replace a structure with one having utility equivalent to that being appraised, but constructed with modern materials and according to current standards, design and layout.

Answer 19

Replacement cost

Question 20

The loss in value brought about by wear and tear, disintegration, and use and actions of the elements is known as ________ obsolescence.

Answer 20

Functional obsolescence

Question 21

A loss in value due to factors away from the subject property but adversely affecting the value of the subject property is known as____obsolescence.

Answer 21

Economic obsolescence

Question 22

The income approach determine value by applying a capitalization rate to the

Answer 22

Net operating income

Question 23

_______ Depreciation cannot be fixed and economically feasible cost

Answer 23

Incurable

Question 24

The period over which a property will yield a return on the investment over and above the economic or ground rent due to land

Answer 24

Economic life

Question 25

The most probable price a property will bring in the market

Answer 25

Market value

Question 26

The primary function of a ____Is to promote thrift And homeownership?

Answer 26

S&L

Question 27

The Fannie Mae form 1003 is also known as the?

Answer 27

Uniform residential loan application

Question 28

A mortgage in which they scheduled payment well not amortize the loan over the mortgage term; therefore, for the debt to be fully satisfied, a final payment larger than the uniform payment is required

Answer 28

Balloon mortgage

Question 29

A mortgage that requires the mortgagors To pay interest only during the mortgage term, With the principal due at the end of the term

Answer 29

Term mortgage

Question 30

Who would most likely benefit from a balloon mortgage

Answer 30

People who only intend to live in the property for a few years

Question 31

Most deed of trust loans are…?

Answer 31

Fully amortized

Question 32

The amount of money the borrower or seller must pay the lender to get a mortgage and stated interest rate

Answer 32

Discount points

Question 33

The financing charge that a lender requires

Answer 33

Loan origination fee

Question 34

Minimum interest rate sit by the federal reserve for lending to other banks

Answer 34

Discount rate

Question 35

Private owned corporation that purchases FHA, VA, and conventional mortgages

Answer 35

Fannie Mae

Question 36

Nickname for Federal home loan mortgage corporation, corporation wholly owned by the Federal home loan bank system that purchases FHA, VA, and conventional mortgages

Answer 36

Freddie Mac

Question 37

Nickname for the government national mortgage association. A US government agency that purchases FHA And VA mortgages

Answer 37

Ginnie mae

Question 38

Written notice of an obligation given by a corporation or government entity

Answer 38

Bond

Question 39

The federal reserve system is divided into how many geographical districts

Answer 39

12

Question 40

Illegal rezoning of a certain property in a zoned area to permit a different type of use than that authorized for the rest of the area

Answer 40

Spot zoning

Question 41

A variance may be granted for a change in the permitted_____or use?

Answer 41

Building area

Question 42

Delay or negligence is Asserting ones legal rights

Answer 42

Laches

Question 43

Can be filed to stop the violation of a deed restriction

Answer 43

Injunction

Question 44

Radon most often enters the house through

Answer 44

Foundation walls

Question 45

Real estate security can include

Answer 45

Mortgage notes

Question 46

A property with a higher intristic value can often demand a higher

Answer 46

Sales price

Question 47

Total amount of money remaining after all expenditures have been paid including taxes, operating costs, and mortgage payments.

Answer 47

Cash flow

Question 48

Use of debt financing of an investment to maximize return per dollar of equity invested

Answer 48

Leverage

Question 49

Cash received in a tax deferred exchange

Answer 49

Boot

Question 50

Cost to acquire a property plus the cost of the physical improvements minus the depreciation claimed as a tax deduction is equal to the

Answer 50

Adjusted basis

Question 51

A REIT Is not subject to a corporate income tax if at least how much of its income is distributed to shareholders

Answer 51

90%

Question 52

A mortgage REIT’s Primarily source of income are from mortgage interest and

Answer 52

Mortgage origination fees

Question 53

Business trust which deals principally with interest in land generally organized to conform to the internal revenue code

Answer 53

Real estate investment trust (REIT)

Question 54

Using the straight line depreciation method residential property can be depreciated over how many years

Answer 54

27.5

Question 55

Actual cash value is also known as

Answer 55

Depreciated value

Question 56

The CAN-SPAM act applies to solicitation involving

Answer 56

Emails

Question 57

A deed to relinquish any interest in the property which is the grantor may have without any warranty of title or interest

Answer 57

Quit claim deed

Question 58

To have and to hold clause

Answer 58

Habendum clause

Question 59

Items that are owned by the seller but ultimately paid by the buyer

Answer 59

Accrued items