Real Estate Test + Vocabulary 2

50 Questions | By Happygirl323 | Last updated: Mar 20, 2022 | Total Attempts: 56

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50 questions

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1.

To use the capitalization approach to appraising you need the:
- A.
  
  Gross income
- B.
  
  Occupations of the tenants
- C.
  
  Net income
- D.
  
  Case flow
2.

Americans with Disabilities Act:
- A.
  
  Act prohibiting discrimination against individuals with disabilities in employment, public services, telecommunications, public accommodations, and commercial facilities.
- B.
  
  Act prohibiting discrimination against minorities in employment, public services, telecommunications, public accommodations, and commercial facilities.
- C.
  
  Act prohibiting discrimination against individuals with disabilities in employment and residential services.
- D.
  
  Act permitting discrimination against individuals with disabilities in employment, public services, telecommunications, public accommodations, and commercial facilities.
3.

The repayment of financial obligation over a period of time in a series of periodic installments; i.e. the payback of the principal owed to the lender.
- A.
  
  Amoritization
- B.
  
  Credit
- C.
  
  Proration
- D.
  
  Debit
4.

In general, when the supply of a certain commodity increases,
- A.
  
  Price tends to rise.
- B.
  
  Price tends to drop.
- C.
  
  Demand for it tends to rise.
- D.
  
  Demand for it tends to drop.
5.

Amortization Rate is defined as:
- A.
  
  One payment that is applied to the reduction of the principal.
- B.
  
  Decreasing payments applied to the reduction of the principal
- C.
  
  The percentage of periodic payment that is applied to the reduction to the principal.
- D.
  
  The percentage of periodic payment that is applied to the reduction of one's debt.
6.

Amortization Term is defined as:
- A.
  
  The percentage of periodic payment that is applied to the reduction to the principal.
- B.
  
  The time period over which the principal amount would be retired on the basis of the periodic payments.
- C.
  
  Decreasing payments applied to the reduction of the principal
- D.
  
  The percentage of periodic payment that is applied to the reduction of one's debt.
7.

A broker has two offers on the same property. The two offers are from salespeople within his office and both have given deposits. The broker decides not to present the second offer until the first offer has been accepted or rejected by the seller. The seller is not made aware of the second offer. The broker’s action is:
- A.
  
  Not permissible
- B.
  
  Not permissible since the agency owed fiduciary obligations to both buyers
- C.
  
  Permissible only if the commission is divided equally between the two salespeople
- D.
  
  Permissible if the second offer is substantially the same as the first
8.

A financial obligation that is repaid over a period of time by a series of periodic payments
- A.
  
  Abstract of title
- B.
  
  Bilateral Contract
- C.
  
  Delayed Exchange
- D.
  
  Amortized Loan
9.

A contract for a lump sum or scheduled premiums that are paid out.
- A.
  
  Amortized Loan
- B.
  
  Credit
- C.
  
  Annuity
- D.
  
  Appropriation
10.

The “Statutory Dedication Process” is completed when:
- A.
  
  The appointed representative of the city or county signs accepting the dedication
- B.
  
  The final subdivision map is recorded
- C.
  
  The dedicated area is completed
- D.
  
  Local authorities deliver a signed acceptance to the subdivider
11.

The act or process of developing an opinion of value as of a specific date
- A.
  
  Annuity
- B.
  
  Appraisal Process
- C.
  
  Appraisal
- D.
  
  Ammortization
12.

Appraisal Process is known as
- A.
  
  A systematic analysis of the factors that bear on the value of real estate.
- B.
  
  A systematic analysis of the factors that bear on the value of land.
- C.
  
  A calculation of the numbers that bear on the value of real estate.
- D.
  
  Finding things right and wrong with something and placing substantial value on it.
13.

The best appraisal methods to be used to establish the current market value of a shopping center would be the:
- A.
  
  Cost-Income
- B.
  
  Market Data-Income
- C.
  
  Income-Gross rent multiplier
- D.
  
  Cost-Gross rent multiplier
14.

An estimate of the amount of a particular value, such as market value, assessed value, or insurable value, based on the given assignment.
- A.
  
  Appraisal Report
- B.
  
  Assessment Value
- C.
  
  Appraisal Value
- D.
  
  Annuity
15.

An Appraiser is
- A.
  
  Someone who engages in in the procedures of selling real property or personal property.
- B.
  
  A person who engages in the procedure of estimating the value of land.
- C.
  
  A person who engages in the procedure of estimation the value of real property or personal property.
- D.
  
  None of the above
16.

“No person acting under the Real Estate Law shall accept any purchase or loan funds or other consideration from a prospective purchaser or lender, or directly or indirectly cause such funds or other consideration to be deposited to an escrow account except as to the specific loan, or specific real property sales contract, or promissory note secured directly or collaterally by a lien on real property on which loan, contract, or note the person has a bonafide authorization to negotiate or to sell”. In the preceding quotation taken from the Real Estate Law, the term “collaterally” means:
- A.
  
  A hard money note
- B.
  
  A note secured by another note
- C.
  
  A purchase money loan
- D.
  
  A real property security
17.

Something of value that is given to show acceptance or acknowledgement of a contract, such as money or a promise.
- A.
  
  Appraised Value
- B.
  
  Assessed Value
- C.
  
  Accepted Notice
- D.
  
  Consideration
18.

The act of recording documents and making information accessible to prospective buyers and lenders
- A.
  
  Consideration
- B.
  
  Appraisal process
- C.
  
  Appraisal report
- D.
  
  Constructive Notice
19.

The net effect of a tight money policy by the Federal Reserve Board would be the increasing of:
- A.
  
  New home sales
- B.
  
  Use of new first mortgages in real estate financing
- C.
  
  Use of junior loans in real estate financing
- D.
  
  Supply of money available for real estate financing
20.

An installment contract or contract sale. A type of agreement where the seller holds the title until the buyer has paid in full.
- A.
  
  Amortization Loan
- B.
  
  Debit
- C.
  
  Contract for Deed
- D.
  
  Credit
21.

The money provided for materials, labor, land and profits necessary to bring a property into existence.
- A.
  
  Cost
- B.
  
  Credit
- C.
  
  Debit
- D.
  
  Compensation
22.

One insures title through:
- A.
  
  Guarantee of Title
- B.
  
  Title Insurance
- C.
  
  Certificate of Title
- D.
  
  All of the above
23.

Cost Approach is
- A.
  
  A systematic analysis of the factors that bear on the value of real estate
- B.
  
  A written or oral estimate of value submitted o a client based on a specified definition function of value for the subject property as of a specified date.
- C.
  
  An estimate by an appraiser of the amount of a particular value, such as market value, assessed value, or insurable value, based on the given assignment.
- D.
  
  A method of appraising property based on the depreciated reproduction cost of all improvements, plus the market value of the site.
24.

The amount one pays on borrowed money; an interest rate.
- A.
  
  Cost
- B.
  
  Credit
- C.
  
  Cost of credit
- D.
  
  Annuity
25.

Peter wants to buy his first home but doesn’t know how much he can afford to pay. He has a gross monthly income of $3,000. According to the traditional lender’s rule of thumb formula, what is the total housing expense (principal, interest, taxes, and insurance) Peter can bear?
- A.
  
  1080
- B.
  
  840
- C.
  
  648
- D.
  
  1152