FUNDAMENTALS OF REAL ESTATE PRACTICE SECOND EXAM

Which of the following are the most typical characteristics of a junior mortgage? I. Higher interest rate II. Shorter repayment period III. Must be for less loan amount relative to the first mortgage

The situation that exists when the P& I payments are not large enough to pay what is due for interest never mind any principle is called.

Which party is typically protected by a private mortgage insurance policy? I. Lender II. Borrower

Which of the following is typically the largest source of construction loans in the market today?

Which of the following typically fund their mortgages and service the loans after they are made? I. Mortgage Bankers II. Mortgage Brokers

In regards to pledging real property as collateral for a loan, North Carolina is a ________ theory state.

Which of the following clauses dictate that in the event of default, the entire loan balance shall be due and payable?

Which of the following clauses effectively prohibit the assumption of a mortgage loan?

The maximum loan to value ratio that is typically allowed on an uninsured conventional mortgage is _______________?

The type of mortgage loan that typically represents the highest risk to the lender is a/an ____________ loan.

The primary source for monies to be used in making both VA and FHA mortgage is _____________?

Which of the following statements regarding VA mortgage loans is true? I. You must be an approved veteran to assume a VA loan. II. The borrower must use the mortgaged property as his/her primary residence.

A real estate agent is placing an ad about a new listing in the newspaper. Which of the following will NOT require a full disclosure of all relevant financing terms under Regulation Z of the Truth in Lending Act?

An agent is in the process of determining the applicant’s qualifications for obtaining a conventional mortgage loan. Which of the following would be considered by a lender as housing expenses? I. PITI payment II. Monthly PMI premiums III. Home Owner Association Fees

The clause that permits a borrower to pay off the mortgage loan, in addition to any interest and other related costs, after the foreclosure sale and retain title to his property is called the _________?

The type of mortgage loan that allows the borrower to obtain fresh advances of funds, even in excess of the original amount borrowed by utilizing the existing loan document ins called a _________?

Under the provisions of the Truth-In-Lending Act, which of the following would not be calculated as a part of the APR (Annual Percentage Rate?

The secondary mortgage market participant that is the oldest, largest, and is privately owned is ___________?

Which of the following is true of a prepayment clause in a mortgage loan?

A foreclosure sale has just been conducted in which the following monies were due from the proceeds? Attorney fees - $1,500, unpaid property taxes - $800, first mortgage balance - $109,5000, second mortgage balance - $8,500, the property sold at the foreclosure sale for $111,800. How many of the mortgage liens will be cleared from the title a result of this sale?

According to the Real Estate Settlement Procedures Act, the lender is required to furnish the borrower with the good faith estimate of closing costs ___________.

Which of the following are NOT true regarding the Real Estate Settlement Procedures Act?

How long is the typical residential appraisal considered accurate by the lender?

The economic principle of value that states when a buyer is confronted with two or more comparables, the buyer will generally choose the lesser priced comparable is called the theory of ___________.

When selecting from various comparables to utilize in preparing an appraisal using the sales comparison theory, an appraiser will generally select a comparable that has been sold in the past months.

In which of the following valuation situations would sales comparison method be the preferred method of appraisal? I. Residential II. Vacant Land III. Church

An appraiser recently reduced the value of a property he/she was appraising due to its proximity to the highway. This was an example of ________.

That period of time in which a property may be profitably utilized is know as its __________.

Which of the following statements is correct concerning a comparative market analysis that is being prepared by a real estate agent? I. An agent cannot be compensated for the preparation of a comparative market analysis. II. A comparative market analysis will usually show a range of value rather than a specific amount

When utilizing the income capitalization approach to valuation, the estimate of value is derived by dividing the capitalization rate into

The tenant has recently signed a lease for a fixed term of six months but with the rent being due and payable monthly. This is an example of a/an __________.

A tenant has signed a six-month lease that stipulates it shall convert to month to month if the tenant continues to occupy and pay rent beyond the initial term. The maximum deposit that can lawfully be charged by the landlord is _________ worth of rent.

The theory of retaliatory eviction

A land lord can utilize the tenant’s security deposit for all EXCEPT which of the following?

Which of the following is a legal remedy available to a residential landlord in North Carolina?

A non-licensed, salaried employee is working in a real estate management office. Which of the following functions can this person NOT legally perform?

A property manager’s typical responsibilities to the owner/landlord is/are to: I. Obtain the highest possible net operating income from the property II. Maintain and help maximize the value of the owner’s investment III. Re-invest the owner/landlords income

What are the continuing benefits of homeownership as far as tax deductibility? I. Mortgage interest II. Property Taxes III. Repairs and Maintenance

Discount points incurred in the purchase of a residential property can typically be

The adjusted basis will usually consist of all of the following EXCEPT

A homeowner purchased a house valued at $100,000 and obtained a $60,000 homeowner’s policy of insurance. He incurred a loss of $60,000.00 due to fire. How much will the insurance company pay him for the loss?

The type of homeowner’s policy that is referred to as “All Risk” is the

The type of homeowner’s policy that is referred to as the “Tenants Policy” is the

The type of homeowner’s policy that is referred to as the “Condominium Policy” is the

The item that adds coverage for specific items or perils that are not covered by other provisions of the insurance policy is an