Real Estate Final Exam (150
Questions)
,"The Pickets are purchasing a home for $780,000 and the lender is giving them a 90%
loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination
fee? - CORRECT ANSWER $14,040"
"Discrimination is prohibited in lending practices under - CORRECT ANSWER ECOA"
"A buyer assumes the mortgage. How is the owner relieved of the liability? - CORRECT
ANSWER Novation"
"Which type of loan will result in the largest reduction of the principal balance most
quickly? - CORRECT ANSWER 6% over 15 years"
"Who is the largest purchaser in the secondary market? - CORRECT ANSWER Fannie
Mae"
"What does Fannie Mae stand for? - CORRECT ANSWER Federal National Mortgage
Association"
"Which transaction requires a securities license? - CORRECT ANSWER Selling shares
in Fannie Mae"
"Who is NOT an originator of primary loans? - CORRECT ANSWER FHA"
"A buyer wanted to use a promissory note for consideration on the purchase of a
property. Can he do this? - CORRECT ANSWER Yes. This is acceptable as long as
the seller agrees."
"If advertised alone, which would be in violation of Truth in Lending? - CORRECT
ANSWER "No down payment required.""
"Why would a mortgagee have an appraisal on the property? - CORRECT ANSWER
To assure the property value is sufficient to cover the loan"
"Seller Jolita lists her house with Broker Fred. Fred then buys Jolita's house and collects
the agreed-upon commission. This is an example of - CORRECT ANSWER self-
dealing."
"An owner was selling his own home. Can he advertise the down payment? -
CORRECT ANSWER Yes, because it was his own home."
"Which is true about restrictive covenants? - CORRECT ANSWER They are placed by
private parties in a deed."
"Looking at shopping centers in the appraisal process, the social fiber of the community
and distances from schools is called - CORRECT ANSWER neighborhood analysis."
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, "Which best describes why a buyer purchases a home using the market data approach?
- CORRECT ANSWER Buyers buy after they compare the house with others."
"How many feet in one yard? - CORRECT ANSWER 3 feet in one yard"
"A scale drawing shows a room to be 3 inches by 4-1/2 inches. Carpet, which is $15 per
square yard, is to be installed in the room. If the scale is 1 inch to 4 feet, how much
would it cost to install the carpet? - CORRECT ANSWER $360"
"A tenant leased 3,000 square feet at $10 per square foot and 8% of gross income. The
total annual rent she paid was $60,000. What was the gross income on which she paid
percentage rent? - CORRECT ANSWER $375,000"
"The Rose family owns a home in a semi-rural area, which is about five years old.
Recently announced plans for a new regional airport will place their home directly in line
with a main runway ending 1 mile before their home. If the airport is constructed, will
this diminish the value of the Rose Home? - CORRECT ANSWER Yes, because of
economic obsolescence."
"Mrs. Jones, an appraiser, is appraising a single family residence for which she has
located six closely comparable properties, all sold within the past six months. The
subject property is rented for $1,500 per month. It is a custom-built home, approximately
three years old. Mrs. Jones would probably give the most weight in her final estimate of
value to which of the following appraisal methods? - CORRECT ANSWER Market data
approach"
"Which is the best example of functional obsolescence? - CORRECT ANSWER A
house with no electricity or running water"
"A real estate agent should tell the buyer, his customer, which of the following? -
CORRECT ANSWER A pending or recent zoning change"
"A square is 1/8 of a mile by 1/8 of a mile. How many acres is this? - CORRECT
ANSWER 10 acres
One-eighth of a mile square is the same as 10 acres. Multiply 1/8 X 1/8 = 1/64 divided
into 640 acres = 10 acres"
"The first step in an appraisal is - CORRECT ANSWER to Define the problem"
"A recorded subdivision plat is used in the - CORRECT ANSWER lot and block
system."
"An appraiser is usually paid - CORRECT ANSWER a fee based on the amount of time
and effort."
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Questions)
,"The Pickets are purchasing a home for $780,000 and the lender is giving them a 90%
loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination
fee? - CORRECT ANSWER $14,040"
"Discrimination is prohibited in lending practices under - CORRECT ANSWER ECOA"
"A buyer assumes the mortgage. How is the owner relieved of the liability? - CORRECT
ANSWER Novation"
"Which type of loan will result in the largest reduction of the principal balance most
quickly? - CORRECT ANSWER 6% over 15 years"
"Who is the largest purchaser in the secondary market? - CORRECT ANSWER Fannie
Mae"
"What does Fannie Mae stand for? - CORRECT ANSWER Federal National Mortgage
Association"
"Which transaction requires a securities license? - CORRECT ANSWER Selling shares
in Fannie Mae"
"Who is NOT an originator of primary loans? - CORRECT ANSWER FHA"
"A buyer wanted to use a promissory note for consideration on the purchase of a
property. Can he do this? - CORRECT ANSWER Yes. This is acceptable as long as
the seller agrees."
"If advertised alone, which would be in violation of Truth in Lending? - CORRECT
ANSWER "No down payment required.""
"Why would a mortgagee have an appraisal on the property? - CORRECT ANSWER
To assure the property value is sufficient to cover the loan"
"Seller Jolita lists her house with Broker Fred. Fred then buys Jolita's house and collects
the agreed-upon commission. This is an example of - CORRECT ANSWER self-
dealing."
"An owner was selling his own home. Can he advertise the down payment? -
CORRECT ANSWER Yes, because it was his own home."
"Which is true about restrictive covenants? - CORRECT ANSWER They are placed by
private parties in a deed."
"Looking at shopping centers in the appraisal process, the social fiber of the community
and distances from schools is called - CORRECT ANSWER neighborhood analysis."
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, "Which best describes why a buyer purchases a home using the market data approach?
- CORRECT ANSWER Buyers buy after they compare the house with others."
"How many feet in one yard? - CORRECT ANSWER 3 feet in one yard"
"A scale drawing shows a room to be 3 inches by 4-1/2 inches. Carpet, which is $15 per
square yard, is to be installed in the room. If the scale is 1 inch to 4 feet, how much
would it cost to install the carpet? - CORRECT ANSWER $360"
"A tenant leased 3,000 square feet at $10 per square foot and 8% of gross income. The
total annual rent she paid was $60,000. What was the gross income on which she paid
percentage rent? - CORRECT ANSWER $375,000"
"The Rose family owns a home in a semi-rural area, which is about five years old.
Recently announced plans for a new regional airport will place their home directly in line
with a main runway ending 1 mile before their home. If the airport is constructed, will
this diminish the value of the Rose Home? - CORRECT ANSWER Yes, because of
economic obsolescence."
"Mrs. Jones, an appraiser, is appraising a single family residence for which she has
located six closely comparable properties, all sold within the past six months. The
subject property is rented for $1,500 per month. It is a custom-built home, approximately
three years old. Mrs. Jones would probably give the most weight in her final estimate of
value to which of the following appraisal methods? - CORRECT ANSWER Market data
approach"
"Which is the best example of functional obsolescence? - CORRECT ANSWER A
house with no electricity or running water"
"A real estate agent should tell the buyer, his customer, which of the following? -
CORRECT ANSWER A pending or recent zoning change"
"A square is 1/8 of a mile by 1/8 of a mile. How many acres is this? - CORRECT
ANSWER 10 acres
One-eighth of a mile square is the same as 10 acres. Multiply 1/8 X 1/8 = 1/64 divided
into 640 acres = 10 acres"
"The first step in an appraisal is - CORRECT ANSWER to Define the problem"
"A recorded subdivision plat is used in the - CORRECT ANSWER lot and block
system."
"An appraiser is usually paid - CORRECT ANSWER a fee based on the amount of time
and effort."
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