Real Estate Principles II Level 3-4 Quiz

Which independent organization can affect the economy by raising or lowering the fund reserve requirements or the discount rate?

• Federal Reserve System

• Fannie Mae

• Ginnie Mae

• TREC

What is the name for the type of loan that is created with a higher interest rate to offset the risk of borrowers with poor credit?

• Subprime Mortgage

• Fixed Rate Mortgage

• Adjustable Rate Mortgage

• Open Ended Mortgage

Which act requires developers engaged in the sale or leasing of 100 or more lots to provide potential clients with a property report prior to purchasing or leasing?

• Interstate Land Sales Full Disclosure Act

• Home Mortgage Disclosure Act

• Community Reinvestment Act

Which form is required specifically for a property built before 1978?

• Lead Based Paint Disclosure

• Mold Disclosure

• Flood Disclosure

• Property Condition Addendum

Valeria has not been very lucky lately. In the past month, she's discovered that her home:

Has been located within a flood zone since she purchased it

Could be taken by the state against her consent to extend the highway

Will be taxed higher this year than it was last year

Could be turned over to the state since she doesn't have a will

Which of the above is the best example of eminent domain?

• Flood Zone

• Extend the Highway

• Higher Taxes

• Lost home with no Will

Which law requires a lender to give a buyer an estimate of closing costs?

• RESPA

• Fair Housing Act

How many 100,000 sq. ft. lots could a developer fit onto a 20-acre piece of land?

• 8.7

• 4.6

• 18.2

• 5.7

The Truth-in-Lending Act, the Equal Credit Opportunity Act, the Community Reinvestment Act, and the Real Estate Settlement Procedures Act all serve the purpose of regulating the:

• Lending practices of mortgage lenders

• Lending practices between major banks

Maria pays off her loan in equal installments of principal and interest over a period of ten years. What can we call this method of loan repayment?

• Principal Payments

• Amortization

Jake takes out a mortgage loan on a furnished condominium. This mortgage cost covers the real property, but it also covers personal property like the kitchen appliances, the velvet purple paisley curtains, and the leather couches in the condominium.

What kind of mortgage does Jake have?

• Blanket Mortgage

• Package Mortgage