Real Estate Finance and Institutions
Appraisal Basics and Appraisal Methods
Subdivisions and Government Control
Taxation of Real Estate
Licensing, Education, and Associations
100
The definition of a straight note is: a). A promissory note with periodic payments of principal and interest and a large payment at the end b). A nonamortized note for which the principal is due in lump sum upon maturity c). A basic instrument used to evidence the obligation or debt. d). Any financial document that can be passed easily form one person to another, if it meets certain legal requirements.
b). A nonamortized note for which the principal is due in lump sum upon maturity
100
The least desirable lot, bordered on the side by the backs of lots that front on another street is a(n): a). interior lot b). key lot c). corner lot d). T-intersection lot
b). key lot
100
Eminent Domain allows the government to: a). tax private property b). take private property for compensation c). use private property d). none of the above
b). take private property for compensation
100
When do property taxes become a lien (before the fiscal year starts)? a). January 1 b). July 1 c). November 1 d). February 1
a). January 1
100
The group, through its leader, that regulates real estate transactions is called the: a). NAR b)CAR c). BRE (Burea of Real Estate) d). Federal Government
c). BRE (Burea of Real Estate)
200
What are the advantages of a VA loan: a). No down Payment b). Low interest rate c). No prepayment penalty d). All the above
d). All the above
200
Which appraisal method uses the principle of substitution? a). Market data approach b). Cost approach c). Income approach d). All of the above
a). Market data approach
200
Zoning, planning and governmental land use are important examples of: a). encumbrances b). eminent domain c). deed restrictions d). exercise of police power
d). exercise of police power
200
Under Federal Income Tax Laws, most real estate licenses are considered: a). employees of the broker b). employees of the seller c). independent contractors d). any of the above
c). independent contractors
200
The Real Estate Commissioner will start an action against a licensee with : a). an injunction b). a lawsuit c). an accusation d). a lis pendens
c). an accusation
300
Impound accounts include what? a). property taxes and fire insurances b). interest, principle, property taxes and fire insurances c). interest, property taxes and fire insurances d). principle, property taxes and fire insurances
a). property taxes and fire insurances
300
The expanded portion of the concrete foundation is ? a). mud sill b). cripple c). sole plate d). footing
d). footing
300
Airplane flight paths cross a person's property and cause a reduction in value. If the homeowner forces the government to purchase his/her property, this is called: a). inverse condemnation b). functional obsolescence c). police power d). none of the above
a). inverse condemnation
300
A single person can avoid paying capital gains taxes on up to what amount of profit from the sale of a residence? a). $100,000 b). $125,000 c). $250,00 d). $500,000
c). $250,00
300
Which of the following is "true" concerning the salesperson's exam? a). 100 multiple choice questions, 70% to pass, 3hr exam b). 100 multiple choice questions, 60% to pass, 3 hr 15 min exam. c). 150 multiple choice questions, 60% to pass, 3 hr exam d). 150 multiple choice questions, 70% to pass, 3 hr 15 mins exam.
d). 150 multiple choice questions, 70% to pass, 3 hr 15 mins exam.
400
FHA backed loans are protected by: a). MPR's b). FDIC's c). Mortgage Insurance Premiums (MIPs) d). none of the above
c). Mortgage Insurance Premiums (MIPs)
400
Which of the following is an example of economic obsolescence? a). Peeling Paint b). Eccentric design c). Rundown of neighborhood d). Wear and tear on the load bearing members
c). Rundown of neighborhood
400
The seller of a 10-year-old condominium must provide, to the buyer, all the following, except: a). by-laws of the condo association b). pink public report c). financial statements of the condo association d). CC&R of condo association
d). CC&R of condo association
400
If you sell your house, how do you determine you gain or loss? a). Subtract nothing b). subtract only adjusted price basis c). subtract adjusted cost basis from adjusted sale price d). subtract only adjusted cost basis
c). subtract adjusted cost basis from adjusted sale price
400
A real estate salesperson owes the Department of Child Support Services for back child support payments. He may: a). not obtain a license until the past due funds are paid b). not obtain a license c). obtain a license after a hearing by the Real Estate Commissioner. d). obtain a temporary license for 150 days.
d). obtain a temporary license for 150 days.
500
A lender charges an origination fee, which includes points. One point is equal to: a). 1% of the loan amount b). .01% of the loan amount c). 10% of the loan amount d). 100% of the loan amount
a). 1% of the loan amount
500
In the income approach, the Net Income divided by the Capitalization Rate equals: a). expenses b). interest rates c). market value d). all the above
c). market value
500
After several lots have been sold in a subdivision, the Real Estate Commissioner was informed of misrepresentation being made by developer. The Commissioner may stop the sale of more lots by: a). revoking the final public report b). issuing a writ of prohibition c). issuing a desist and refrain order d). filing an accusation in court
c). issuing a desist and refrain order
500
A subdivider wanted to subdivide his property into many lots and sell individual lots to potential builders of single-family homes. To finance the off-site improvements that include streets, sidewalks, and schools he would: a). approach the State of California b). ask the local governmental bodies to institute a special assessment to pay for the improvements c). institute a Mello-Roos municipal bond d). Obtain a blanket encumbrance
c). institute a Mello-Roos municipal bond
500
Who must have a license? a). sells or offers to sell, buys, or offers to buy, and solicits buyers or sellers b). sells their own property c). leases or rents, collects rents, or negotiates the sale, purchase or exchange of leases d). a and b e). none of the above
d). a and b
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