Texas Promulgated Contracts-CHAMPIONS Exam
Loss of value due to lack of modernization is called:
(a) Physical depreciation
(b) Economic obsolescence
(c) External obsolescence
(d) Functional obsolescence
D
The __________ is considered the most reliable approach to
value because it is based on verifiable market events.
(a) Cost approach
(b) Sales comparison approach
(c) Income approach
(d) None of the above
B
A loss in a property's value due to daily wear and tear is
an example of _______________________ .
(a) External obsolescence
(b) Functional obsolescence
(c) Physical deterioration
(d) Effective age
C
The appraiser will use the cost approach to value:
(a) A farm
(b) A unique building
(c) An old house
(d) An office building
B
,A real property appraisal will contain an analysis of the each
of the following, EXCEPT:
(a) Improvements to the site
(b) Site description
(c) Neighborhood description
(d) Personal property
D
The appraisal principle of conformity tells us that a house is
worth the most when:
(a) It is in a neighborhood of similarly priced homes
(b) It is surrounded by higher priced homes
(c) It is surrounded by lower priced homes
(d) It is in a neighborhood of mixed value
A
Official property value for tax purposes is called:
(a) Assessed value
(b) Appraised value
(c) Market price
(d) Investment value
A
The appraisal principle of __________ states that purchase price
of a property is affected by the expectation of future appeal
and benefits.
(a) Anticipation
(b) Competition
(c) Economic Obsolescence
(d) Substitution
A
,The best definition of market value is:
(a) The highest price a willing buyer will pay and highest price
a seller will sell
(b) The most probable price a property should bring in
a competitive and open market
(c) The lowest price in the neighborhood
(d) The average of prices in the neighborhood
B
The effective age of a house can be younger than its __________
if it has been well-maintained.
(a) Economic obsolescence
(b) Chronological age
(c) Physical deterioration
(d) Gross adjustment
B
In which approach to value is the appraiser calculating
depreciation as a factor along with land value and replacement
cost for a structure?
(a) The Income Approach
(b) The Cost Approach
(c) The Sales Comparison Approach
(d) The Market Value Approach
B
The primary purpose of the FHA is:
(a) To insure loans
(b) To lend money to borrowers who cannot qualify for
traditional financing
(c) To guarantee loans
, (d) To help lenders find borrowers
A
When a loan is funded, the FHA charges a(n) __________ which
can be paid at closing or added to the loan at funding.
(a) Annual premium
(b) Up-Front Mortgage Insurance Premium
(c) Funding fee
(d) POA fee
B
The borrower's monthly payment includes principal and interest
plus one-twelfth of the annual property tax assessment and
one-twelfth of the annual insurance premium. This is a:
(a) Blanket loan
(b) Package loan
(c) Budget loan
(d) Sub-prime loan
C
Which of the following statements about the use of gift funds
in government loans is true?
(a) Property must be owner-occupied
(b) Donor must be a relative, domestic partner, or fiancé
(c) Gift funds may be used for the entire down payment
(d) All of the statements above are true
D
A person who brings a borrower and a lender together for a fee
is called:
(a) A mortgage broker
(b) A lender's agent
Loss of value due to lack of modernization is called:
(a) Physical depreciation
(b) Economic obsolescence
(c) External obsolescence
(d) Functional obsolescence
D
The __________ is considered the most reliable approach to
value because it is based on verifiable market events.
(a) Cost approach
(b) Sales comparison approach
(c) Income approach
(d) None of the above
B
A loss in a property's value due to daily wear and tear is
an example of _______________________ .
(a) External obsolescence
(b) Functional obsolescence
(c) Physical deterioration
(d) Effective age
C
The appraiser will use the cost approach to value:
(a) A farm
(b) A unique building
(c) An old house
(d) An office building
B
,A real property appraisal will contain an analysis of the each
of the following, EXCEPT:
(a) Improvements to the site
(b) Site description
(c) Neighborhood description
(d) Personal property
D
The appraisal principle of conformity tells us that a house is
worth the most when:
(a) It is in a neighborhood of similarly priced homes
(b) It is surrounded by higher priced homes
(c) It is surrounded by lower priced homes
(d) It is in a neighborhood of mixed value
A
Official property value for tax purposes is called:
(a) Assessed value
(b) Appraised value
(c) Market price
(d) Investment value
A
The appraisal principle of __________ states that purchase price
of a property is affected by the expectation of future appeal
and benefits.
(a) Anticipation
(b) Competition
(c) Economic Obsolescence
(d) Substitution
A
,The best definition of market value is:
(a) The highest price a willing buyer will pay and highest price
a seller will sell
(b) The most probable price a property should bring in
a competitive and open market
(c) The lowest price in the neighborhood
(d) The average of prices in the neighborhood
B
The effective age of a house can be younger than its __________
if it has been well-maintained.
(a) Economic obsolescence
(b) Chronological age
(c) Physical deterioration
(d) Gross adjustment
B
In which approach to value is the appraiser calculating
depreciation as a factor along with land value and replacement
cost for a structure?
(a) The Income Approach
(b) The Cost Approach
(c) The Sales Comparison Approach
(d) The Market Value Approach
B
The primary purpose of the FHA is:
(a) To insure loans
(b) To lend money to borrowers who cannot qualify for
traditional financing
(c) To guarantee loans
, (d) To help lenders find borrowers
A
When a loan is funded, the FHA charges a(n) __________ which
can be paid at closing or added to the loan at funding.
(a) Annual premium
(b) Up-Front Mortgage Insurance Premium
(c) Funding fee
(d) POA fee
B
The borrower's monthly payment includes principal and interest
plus one-twelfth of the annual property tax assessment and
one-twelfth of the annual insurance premium. This is a:
(a) Blanket loan
(b) Package loan
(c) Budget loan
(d) Sub-prime loan
C
Which of the following statements about the use of gift funds
in government loans is true?
(a) Property must be owner-occupied
(b) Donor must be a relative, domestic partner, or fiancé
(c) Gift funds may be used for the entire down payment
(d) All of the statements above are true
D
A person who brings a borrower and a lender together for a fee
is called:
(a) A mortgage broker
(b) A lender's agent
