VA Real Estate Exam 1 assesses key concepts in real estate finance, law, and market operations. It evaluates understanding of mortgage yields, loan securities, escrow requirements, and implications of financial ratios and insurance policies in real estate transactions.
Part of closing costs
Loan qualifying tool
Requirement of the Federal Government
Formula used in appraising property
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Closing of the broker’s office
Broker moving to another state
Lapse of three years from the occurrence of the grounds of complaint
Expiration of the broker’s license
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Discounting the note
Amortizing the note
Committing an act requiring a real estate license
Committing fraud
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Loan-to-value ratio
Divorce, personal problems, etc
Loan portfolio
None of the above
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This person is testing you
They are interested in that particular property
They are interested in owning a home in an all minority neighborhood
They cannot qualify to own property in a higher priced area
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Ethical conduct
Continuing responsibility
Fiduciary obligation
Business practice standards
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A court action for damages by the buyer
A rescission of the sale by the buyer
Civil responsibility for compensating the buyer for misrepresentation of the broker
Any of the above
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Subordination clause
Escalator clause
Acceleration clause
Alienation clause
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The salesman’s employing broker may retain one-half of the deposit and must give one-half to the seller
The broker may sue the seller but must return the deposit
The broker may retain one-half of the deposit and must return only one-half to the buyer
The broker may retain the deposit to compensate him for his efforts
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Financially able
Having the ability to obtain the necessary funds to purchase real property
Having the ability to obtain necessary financing
Any of the above
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The equity in property is high
The equity is not affected
The equity in the property is low
D) None of the above
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Unsuccessful because the ‘as is’ provision in the deposit receipt shows that there is a mutual understanding of possible defects
Unsuccessful because the deposit receipt specifically state ‘Buyer to accept the property in an ‘as is’ condition’
Successful because the duty to disclose a material fact cannot be avoided by an ‘as is’ provision under the stated circumstances
Successful because ‘as is’ refers only to obvious defects
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Open end mortgage
Extendible mortgage
Junior mortgage
Equitable mortgage
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Escrow company
Lender
Broker
Trustee
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Evaluate by the broker against the first offer
Submitted immediately
Held pending a decision on the first offer
Turned back to the offeree if it doesn’t provide better terms
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Deny the buyer permission
Grant the buyer oral permission
Ask the buyer to sign a lease for the property
Obtain written consent from the owner
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A total effective interest rate greater than if the loan were an installment loan
Equal annual principal reduction payments
No principal payments during the term of the loan except on the last payment
None of the above
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Maintain conformity to buildings in the zoned area
Prevent an oversupply of certain types of businesses
Promote public health, safety, morals and general welfare
Control the quality of building construction
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Diversification
Liquidity
Reserves
All of the above
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Successful because of the $500 is not adequate considering the value of the property
Successful because the reason for canceling by the buyer was not strong
Unsuccessful because the seller agreed to accept the $500 as liquidated damages in the contract
Unsuccessful because an attorney drew the contract
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Offer
Acceptance
Consideration
Performance
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Assess it
Hypothecate it
Alienate it
All of the above
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Disclosure settlement statements
Credit reports
Appraisals necessary to make the loan
Preparation of loan documents
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Factors affecting demand.
Specializations within the real estate industry
Non-real estate professions.
Activities requiring broker management and supervision.
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The buyer has demanded that these expenses be incurred as a condition of continuing with the transaction
Such expenditures were authorized by the principal
It was necessary for him to incur the expenses in order to close the sale
The broker was representing the best interests of the principal in consummating the sale
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Personal property later affixed to the real property so as to become real property
Improvement built on the land after title is acquired
Additional land acquired afterward by the trustor
All of the above
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Buyer to take the property “subject to” the loan
Buyer to “assume” existing loan
Buyer to pay all cash
Buyer to make a large down payment to preclude possibility of a foreclosure
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The number of real estate brokers in the area.
The number of full-time real estate salespersons in the area.
The wage levels and employment opportunities.
The price of new homes being built in the area.
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Health, fire and building safety laws
The Department of Real Estate
Governmental lending agencies such as FHA and the VA
All of the above
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Determination of labor costs in 1912
Labor costs in 1912 being adjusted by an index
Average labor costs over the period
Replacement cost determined by today’s costs less depreciation
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The bulk sales law is contained in the Uniform Commercial Code
A bill of sale is used to convey title to business items
Sales tax is a tax on the sale of tangible personal property
All are true statements
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Beneficially
Jointly and severally
Universally
Unconditionally
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A straight note
Amortized
Partially amortized
A graduated payment note
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Endorser
Maker
Payee
Holder in due course
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Price tends to rise.
Price tends to drop.
Demand for it tends to rise.
Demand for it tends to drop.
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Make up an office memorandum
Confirm the showing to the buyer
Notify the seller as to the prospect’s identity
Notify the local real estate board
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The buyer may demand the return of his deposit
The buyer must continue with the purchase because he did not withdraw his offer prior to acceptance
If the buyer does not complete the purchase, the seller is entitled to the deposit
If the buyer does not complete the purchase, the seller and the broker will each be entitled to one-half of the deposit
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Improvements
Additions
Part of the land
Personal property
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Subordination clause
Alienation clause
Acceleration clause
Subrogation clause
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Government survey lines
Contour lines
Recorded tract map
S and bounds descriptions
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Plumbers
Electricians
Roofers
Carpenters
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A $20,000 loan secured by personal property
A $20,000 loan from a credit union
A $25,000 loan secured by real property
An agricultural loan
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Printed parts take preference over the written parts
The written parts and the printed parts are given equal consideration
The written parts take preference over the printed parts
Any parts copied from the form take preference over those that are purely original
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The surface area indicated on a map
A reasonable use of airspace and extended to the center or the earth
A reasonable distance down and unlimited airspace
A practical or reasonable use of the earth and unlimited airspace
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Sale and lease-back
Selling the mineral rights to a third party
Giving a leasehold interest for 5 years
Granting a life estate
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Houses will be likely to become less expensive as a result of the announcement.
Houses will likely become more expensive as a result of the announcement.
Because the announcement involves an issue of demographics, not of supply and demand, housing prices will stay the same.
The announcement involves an industrial property; residential housing will not be affected.
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Age
Utility
Location
Income
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Conformity
Substitution
Highest and best of use
Anticipation
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