WorksheetsSection 2 Real Estate Questions
Total questions: 48
Worksheet time: 24mins
Which of these properties are exempt from the FIRREA federal appraisal guidelines?
Properties valued at $400,000 or less
Properties valued at $450,000 or less
Properties valued at $500,000 or less
Refinanced properties
Which board determines the national rules for creating an appraisal and reporting its results?
Appraisal Practices Board
Appraisal Qualifications Board
Appraisal Standards Board
Texas Appraiser Licensing and Certification Board
Which classification of appraiser can perform appraisals of simple residential one- to four-unit properties with a value less than $1 million, but not of properties with greater value?
Appraiser trainee
Certified general appraiser
Certified residential appraiser
Licensed appraiser
Which of the following properties is exempt from the FIRREA federal appraisal guidelines?
A refinance of a property valued at $375,000
A refinance of a property valued at $475,000
The purchase of a property valued at $455,000
The purchase of a property valued at $475,000
Return to Unit 1: Texas Requirements to Become an Appraiser
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Appraiser Jamie is looking past how a property is being used to determine a higher value. What is Jamie determining?
Cost to replace
Highest and best use
Loan value
Value in use
Appraiser Victor is determining the insured value of a property. What is he evaluating?
Items of great importance to a lender to replace or rebuild
The cost to replace or rebuild a property
The price at which the property can be loaned on or sold at a foreclosure sale
The return on investment the property may provide
Which of the following is a piece of specific data an appraiser may gather?
Cost of living
Employment figures
Population size
Property lot size
Your client is purchasing a single-family home with a VA-guaranteed loan. The listing price is $150,000. Is an appraisal by a certified appraiser required?
It’s at the buyer’s discretion.
No, since the buyer is using a VA loan.
No, since the sales price is less than $400,000.
Yes, and since the purchase is financed with a VA-guaranteed loan, the appraiser must be VA certified.
A fire destroyed Meredith’s house. Meredith contacted her insurance company, and she was shocked to learn her insurance policy didn’t fully cover what she paid for the property. How does the insurance company determine the replacement value of her home?
Its current market value
The amount for which it was appraised
The amount it would cost to completely replace her home
The original sales price when it was first constructed
There are a lot more sellers than buyers in the current market. How does this demand influence value?
Demand doesn’t influence value.
Value is pushed downward.
Value is pushed upward.
Value remains the same.
What acronym can be used to remember factors that influence real property value?
CRUD
DUST
GIVEN
OLD CAR
The smallest property on the block is priced lower than any others, but the higher-priced properties that surround it help to drive the property’s market value up. What economic principle is at work here?
Anticipation
Contribution
Progression
Regression
Which approach to value is typically used for investment property of two- to four-family units?
Cost approach
Income approach
Revenue approach
Sales comparison approach
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements listed has the highest priority?
Conditions of sale
Location
Market conditions
Physical characteristics
A small duplex sold for $550,000. Each unit can gross $2,500 in monthly rent for the owner, and there are no additional income sources from the property. What’s the GRM?
100
110
200
220
A strip mall valued at $850,000 has a $67,500 annual net operating income. What is the capitalization rate for the strip mall?
12.59%
7.9%
8.67%
9.2%
What does a CMA determine?
Availability of funding
Cost of replacement
Cost per square foot
Market price range
In pricing a property, what might expired listings tell the real estate professional?
The price at which a property is most likely to sell
The price at which a property won't sell
The property's competition
When the home will sell
Ellen has only been licensed for two weeks, but she’s already toured the home of potential clients, the Birds. What should she do to next to secure the listing?
Call her mom and get a pep talk.
Prepare a CMA.
Print out two copies of her professional resume.
Review her pre-licensing coursework for information about taking property photos.
Which of the following provides an opinion of list price range by looking at recently sold properties, comparing current competing properties and properties that didn't sell, and estimating buyer appeal regarding the style, location, and size?
Appraisal
Broker price opinion
Collective market analysis
Comparative market analysis
Which of the following statements is true of the secondary mortgage market?
Borrowers have a say in which entity may purchase their mortgages in this market.
Lenders don't purchase loans from other lenders in this market.
The borrower’s rights are unaffected.
The loan originator continues to service the loan after it's sold.
Amy purchased a new home and obtained financing through a bank, called Natula Bank. Natula originated the loan, but before Amy’s first mortgage payment was due, it sold her loan to CitiMortgage. As a loan originator, what market is Natula Bank operating in?
Federal Reserve System
Primary mortgage market
Secondary mortgage market
Stock market
Joann purchased her house with a mortgage loan from her friendly neighborhood bank. Which of these most likely happened to Joann’s loan soon after she received it from her bank?
Her bank foreclosed on the loan.
Her bank sold it on the secondary market as an investment product.
She received another loan on the secondary market when her bank demanded full payment.
She sold the loan on the primary market for a lower interest rate.
What could be a consequence if there were no secondary mortgage market?
Interest rates would fall.
Lenders might not have funds available to make new loans to the public.
There wouldn't be any institutions available to service loans.
Unemployment would rise.
Which type of loan has a lump sum payment due at the end of the loan because the installment payments aren't sufficient for paying off the principal and interest?
Balloon mortgage
Growing equity mortgage
Pledged account loan
Swing loan
Your buyer clients have plenty for a down payment and closing costs, and they'd like a lower interest rate than the going rate. How can they use some of their saved funds to get a better interest rate?
They can buy down the interest rate.
They can eliminate the interest rate.
They can postpone paying interest for a certain amount of time.
They can't use funds to get a better interest rate.
How many parties does a deed of trust involve?
Five: borrower, lender, trustee, trustor, and beneficiary
Four: borrower, lender, trustee, and trustor
Three: borrower, lender, and trustee
Two: borrower and lender
How many parties does a mortgage involve?
Five: borrower, lender, trustee, trustor, and beneficiary
Four: borrower, lender, trustee, and trustor
Three: borrower, lender, and trustee
Two: borrower and lender
Which veteran loan program offers qualified veterans help with the purchase of land in Texas?
Texas Veterans Land Board
Veterans Home Improvement Program
Veterans Housing Assistance Program
Veterans Land Program
Which of the following is a true statement about U.S. Department of Veterans Affairs loans?
All properties are eligible.
All veterans are eligible.
The VA will guarantee a loan based on the sales price or the certificate of reasonable value (CRV).
VA loans can be used for investment properties.
The My First Texas Home program is available to ______.
Residents looking to purchase their first income property
Residents purchasing their first home
Residents purchasing their second home after one year
Residents with high income levels
Which of the following statements is true regarding the “Bootstrap” program?
A household can obtain a $50,000 loan under the program.
It is available to non-Texas residents.
Loans from other sources can be obtained over $90,000.
Requires the mortgagor to supply at least 65% of the labor
James and Shondra would like to purchase airline tickets on their credit card now so they can take a much-needed vacation after closing. What would your advice to them be?
Caution your buyers to not to put anything on layaway or use lines of credit before closing, or it could cause them to no longer qualify for the loan.
Tell them it would be better to pull money from their down payment fund and increase the loan amount.
Tell them to call the underwriter and ask for their opinion.
Tell them to enjoy their vacation.
Information about which of the following is included in the Uniform Residential Loan Application?
Children's names
Mortgage type
Survey
Taxes
Which of these is the best explanation of the loan prequalification process?
Prequalification is a formal verification process to approve a borrower for a loan.
Prequalification is a lender's assessment of what a borrower might be able to afford to pay for a monthly mortgage loan.
Prequalification is a process that the seller's agent undergoes to estimate how much a seller will profit from the sale.
Prequalification is a valuation process that ensures that a property's market value is at or above list price.
Kobe's preapproval letter includes all of the following EXCEPT ________.
His name
The date the letter was issued
The maximum loan amount
The property's appraised value
Let’s say you take out a 30-year adjustable rate mortgage loan with a five-year interest-only payment period. How long will you make interest-only payments?
The final 25 years
The first five years
The first year
The full 30 years
Brendan's lender set him up with a loan in which the majority of Brendan's early payments go toward interest, his monthly payments remain the same, and he doesn't start paying much toward his principal until closer to the end of the loan. This is ______.
A sub-prime loan
Illegal
Predatory lending
Typical amortization
To compute a monthly principal and interest payment, which of the following pieces of information do you need to know?
Interest rate and loan amount
Interest rate and term of the loan
Monthly payment multiplier
Mortgage loan value, annual percentage rate, loan term, and payment frequency
Which payment plan consists of the borrower paying a constant amount made up of principal and interest on a periodic basis (usually monthly)?
Flexible payment plan
Fully amortized loan payment plan
Interest-only payment plan
Partially amortized payment plan
Tammy and Reginald bought a house with a gas line easement on the property. An easement like this one placed by the utility company is an example of a ______.
Covenant
Deed restriction
Private land control
Subdivision regulation
Subdivision regulations imposed by developers in an effort to maintain control of the development of the subdivision are an example of ______.
Eminent domain
Private land use control
Profit limitations
Taxation
Why would a buyer want to know if any easements or encroachments exist on a property?
Both easements and encroachments affect the property’s lot size, enjoyment, and use, which can affect a property’s value.
Both easements and encroachments are illegal. The buyer could end up in court.
The buyer may need this information to provide evidence for litigation.
The buyer will have to remove these before the property can be re-sold.
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as ______ properties.
140 (100%)
35 (up to 25%)
70 (up to 50%)
Zero
Return to Unit 1: Private Land Use Controls in Texas
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Deirdre lost her job, and the bank foreclosed on her condo. Which of the following of her outstanding debts will the bank pay first?
Credit card balance
Medical bills
Property taxes
Student loan
Taxes that are set aside for redevelopment and that stem from public financing when there is little help from the government are called what?
Government assistance
TCEQs
TIFs
TIRZs
What's the difference between a special use permit and a variance?
A special use permit allows a deviation from the requirements of the zoning ordinance; a special use permit is the temporary use of another’s property.
A variance allows a deviation from the requirements of the zoning ordinance; a special use permit allows a use not ordinarily allowed in the zone.
A variance is temporary; a special use permit is permanent.
A variance relates to building height only; a special use permit can relate to building height, use, or setback.
April was able to establish a day care in a residential neighborhood, where businesses would not normally be permitted. This required approval of the planning and zoning commission and _____________.
A special use or conditional use permit
A tax referendum
A variance
A zoning ordinance
