Real Estate Principles II Mini Quiz TWO

What can cause a homeowner's taxes to increase?

• • The property tax rate decreases.

• • The amortization increases.

• • The property's assessed value decreases.

• • The property tax rate increases.

Jennifer and Mallory, a buyer and a seller, are going through the closing process of their real estate transaction. In their transaction, like in most sales transactions, two closings will take place:

• • the closing of the sale and the closing of the fiduciary agreement

• • the closing of the sale and the closing of the buyer's loan

• • the closing of the buyer's loan and the closing of the lender's agreement

• • the closing of the lender's agreement and the closing of the fiduciary agreement

Grant is making a deed. He drafts the deed, has a lawyer look over and approve the deed, signs the deed, and delivers the deed to Gretta, the grantee. When does the title officially pass to Gretta?

• • when the lawyer approves the deed

• • when Grant signs the deed

• • when Grant drafts the deed

• • when the deed is delivered to and accepted by Gretta

A type of SPV that holds commercial and residential mortgages in trust, assembles said mortgages into pools based on risk, and issues bonds (securities) on these pools to sell to investors in the secondary mortgage market is a:

• • Real Estate Mortgage Investment Conduit

• • Real Estate Investment and Monetary Capital

• • Real Estate Investment and Management Corporation

• • Real Estate Magnate Investment Committee

A tenant has recently signed a lease for a new commercial property. According to the lease terms, the tenant pays monthly rent, and the landlord covers maintenance and all other property expenses. This lease is a:

• • net lease

• • gross lease

• • triple-net lease

• • percentage lease

What act requires that applicable contracts have a 7-day "cooling-off" period for buyers, during which buyers can cancel their contract for any reason and get their money back?

• • Interstate Land Sales Full Disclosure Act

• • International Land Sales Full Disclosure Act

• • Continental State Land Sales Full Disclosure Act

• • Intrastate Land Sales Full Disclosure Act

Which of the following is an example of an illegal kickback?

• • A seller pays an agent in exchange for bringing potential buyers to their property.

• • A buyer pays an agent in exchange for that agent negotiating the sale price of a property.

• • A lender pays an agent in exchange for the agent referring clients to that specific lender.

• • An agent pays a seller to list their property for a lower sales price to make their brokerage look good.

A 65-year-old retiree has almost $80,000 in equity in their home. She does not have enough cash to travel as she would have liked to do in retirement. The retiree could consider which of these financing alternatives to access her equity without selling her home?

• • a growing equity mortgage

• • a reverse mortgage

• • novation

• • an adjustable-rate mortgage

A property is under contract for $100,000 with a 20% down payment. How much will be paid at closing for 1.5 discount points and 1 point origination fee?

Mathematical Equivalence

ON

Angie is selling her home. She has $100,000 left on her mortgage, $8,000 in closing costs, and a 6% sale commission to pay her agent. What's the LEAST Angie should sell for if she wants to earn at least $60,000 on the sale (so she can make a good down payment on a new home)?

Round to the nearest dollar

Mathematical Equivalence

OFF