Barney Fletcher - GA RE School Exam
Questions
What clause allows the lender to call the loan balance due and payable because of non-
payment? - CORRECT ANSWER-Acceleration clause
The amendment that allows a lender to waive his lien priority in favor of another's is
known as the: - CORRECT ANSWER-Subordination amendment
A purchase money mortgage is a loan made by: - CORRECT ANSWER-The seller in a
transaction
A mortgage secured by both real and personal property is a(n): - CORRECT ANSWER-
Package Mortgage
What type of mortgage exists when the lender pays the borrower a fixed amount of
money every money? - CORRECT ANSWER-Reverse Annuity (mortgage)
The primary purpose of FHA is to _____ and the primary purpose of VA is to ________.
- CORRECT ANSWER-Insure loans; guarantee loans
In a Land Sales Contract, who retains legal title to the property? - CORRECT
ANSWER-Seller
What Act has as its primary purpose to educate borrowers regarding the costs involved
in a closing so that the borrowers can shop for the best situation for them? - CORRECT
ANSWER-Real Estate Settlement Procedures Act (RESPA)
Which of the following is true regarding a borrower's mortgage payment assuming the
payment is made on time? - CORRECT ANSWER-The payment includes payment of
interest for the previous 30 days
Professional appraisals for lenders are usually made in order to: - CORRECT
ANSWER-help the lender decided whether to make a loan
If you have several comparable properties as a part of your market analysis, how do
you combine the values reached on each in order to estimate the value of the subject
property? - CORRECT ANSWER-By weighing the adjusted sales prices of the
comparables and adding the weighted dollar amount of the group
What is the tax assessment rate for all real property in Georgia? - CORRECT
ANSWER-40%
, What could happen if a property is sold at foreclosure and does not bring enough
money to satisfy all of the debts secured by the property? - CORRECT ANSWER-
Outstanding debts could be pursued as a result of a deficiency judgement
When foreclosure occurs, the payment priority of most of the outstanding debts is
established by: - CORRECT ANSWER-Date of recordation
With a traditional, fully amortized loan, the interest portion of a payment due and made
on the first day of a month covers the interest for: - CORRECT ANSWER-the month
prior to the month the payment is made
What type of loan has payments of interest only with the principal paid in full at the end
of the loan period? - CORRECT ANSWER-Straight loan
If a loan balance is $125,000 and the interest rate is 8%, how much of the next payment
is paid in interest? - CORRECT ANSWER-$833.33
In a graduated payment mortgage, the ________ changes in an adjustable rate
mortgage the _______ is subject to change. - CORRECT ANSWER-Payment, interest
rate
Real estate agents look to many different sources when working on a market analysis.
Which of the following sources would have the greatest effect on establishing the
property's value estimate? - CORRECT ANSWER-Recently sold comparable properties
The four economic characteristics of value are: - CORRECT ANSWER-Demand, Utility,
Scarcity, Transferability
When buyer and seller operate with knowledge and no undue pressure in
consummating a transaction, it is known as a(n): - CORRECT ANSWER-Arms-length
transaction
The type of deprecation used by appraisers in which the amount of depreciated value is
equal each year is known as the: - CORRECT ANSWER-Straight line method
The value principle which indicates that a buyer will not pay more for a property than a
price for which he can obtain a property of equal utility is the principle of: - CORRECT
ANSWER-Substitution
When the total value of combine properties exceeds the total value of the individual
properties, the result is know as: - CORRECT ANSWER-Plottage increment
Which of the following best describes Transfer Tax? - CORRECT ANSWER-A state tax
which is based on the sales price of the property less any assumed loans at the rate of
$.10/$100 of the taxable amount.
Questions
What clause allows the lender to call the loan balance due and payable because of non-
payment? - CORRECT ANSWER-Acceleration clause
The amendment that allows a lender to waive his lien priority in favor of another's is
known as the: - CORRECT ANSWER-Subordination amendment
A purchase money mortgage is a loan made by: - CORRECT ANSWER-The seller in a
transaction
A mortgage secured by both real and personal property is a(n): - CORRECT ANSWER-
Package Mortgage
What type of mortgage exists when the lender pays the borrower a fixed amount of
money every money? - CORRECT ANSWER-Reverse Annuity (mortgage)
The primary purpose of FHA is to _____ and the primary purpose of VA is to ________.
- CORRECT ANSWER-Insure loans; guarantee loans
In a Land Sales Contract, who retains legal title to the property? - CORRECT
ANSWER-Seller
What Act has as its primary purpose to educate borrowers regarding the costs involved
in a closing so that the borrowers can shop for the best situation for them? - CORRECT
ANSWER-Real Estate Settlement Procedures Act (RESPA)
Which of the following is true regarding a borrower's mortgage payment assuming the
payment is made on time? - CORRECT ANSWER-The payment includes payment of
interest for the previous 30 days
Professional appraisals for lenders are usually made in order to: - CORRECT
ANSWER-help the lender decided whether to make a loan
If you have several comparable properties as a part of your market analysis, how do
you combine the values reached on each in order to estimate the value of the subject
property? - CORRECT ANSWER-By weighing the adjusted sales prices of the
comparables and adding the weighted dollar amount of the group
What is the tax assessment rate for all real property in Georgia? - CORRECT
ANSWER-40%
, What could happen if a property is sold at foreclosure and does not bring enough
money to satisfy all of the debts secured by the property? - CORRECT ANSWER-
Outstanding debts could be pursued as a result of a deficiency judgement
When foreclosure occurs, the payment priority of most of the outstanding debts is
established by: - CORRECT ANSWER-Date of recordation
With a traditional, fully amortized loan, the interest portion of a payment due and made
on the first day of a month covers the interest for: - CORRECT ANSWER-the month
prior to the month the payment is made
What type of loan has payments of interest only with the principal paid in full at the end
of the loan period? - CORRECT ANSWER-Straight loan
If a loan balance is $125,000 and the interest rate is 8%, how much of the next payment
is paid in interest? - CORRECT ANSWER-$833.33
In a graduated payment mortgage, the ________ changes in an adjustable rate
mortgage the _______ is subject to change. - CORRECT ANSWER-Payment, interest
rate
Real estate agents look to many different sources when working on a market analysis.
Which of the following sources would have the greatest effect on establishing the
property's value estimate? - CORRECT ANSWER-Recently sold comparable properties
The four economic characteristics of value are: - CORRECT ANSWER-Demand, Utility,
Scarcity, Transferability
When buyer and seller operate with knowledge and no undue pressure in
consummating a transaction, it is known as a(n): - CORRECT ANSWER-Arms-length
transaction
The type of deprecation used by appraisers in which the amount of depreciated value is
equal each year is known as the: - CORRECT ANSWER-Straight line method
The value principle which indicates that a buyer will not pay more for a property than a
price for which he can obtain a property of equal utility is the principle of: - CORRECT
ANSWER-Substitution
When the total value of combine properties exceeds the total value of the individual
properties, the result is know as: - CORRECT ANSWER-Plottage increment
Which of the following best describes Transfer Tax? - CORRECT ANSWER-A state tax
which is based on the sales price of the property less any assumed loans at the rate of
$.10/$100 of the taxable amount.
