Real Estate Principle II Mini Quiz ONE

Jan wants $10,000 in profit from the sale of her home. She has to pay off her $150,000 mortgage, as well as $7,000 in closing costs. How much does she need to sell her home for?

• • $157,000

• • $254,242

• • $167,000

• • $217,659

The loss of property value caused by negative forces beyond the control of the owner is called:

• • economic obsolescence

• • functional obsolescence

• • physical deterioration

• • depreciation

What is the goal of TRID?

• • to create a national registry for Mortgage Loan Originators

• • to formalize a grievance process for discriminatory lending

• • to help borrowers select the best mortgage for them through an integration of TILA and RESPA

• • to institute state-level agencies to investigate predatory lending

Tenant Trudy rents from Landlord Layla. Possession of the property reverts back to Layla after the lease term has expired. This is an example of a:

• • possession transfer

• • periodic tenancy

• • leased fee estate plus possessive right

• • reversionary right

• The government takes some of Leslie's farmland to expand a highway. The government does NOT provide just compensation for the land acquisition.

• Inverse Condemnation

• Condemnation

What does a REIT typically own?

• • assets not related to real estate

• • income-producing real estate

• • non-income-producing real estate

• • mutual funds

Who does private mortgage insurance protect?

• • the buyer against lender default

• • the lender against buyer default

• • the FHA against lender default

• • the lender from FHA lawsuits

Micah is an appraiser in Austin. What entity is he regulated by?

• • CFPB

• • TREC

• • FHA

• • TALCB

What serves to protect lenders from unknown existing defects on a title?

• • owner's title policy

• • Torrens System

• • lender's title policy

• • chain of title

As the term relates to the appraisal process, what is reconciliation?

• • when a property is appraised according to data gathered from more than one approach to value

• • when the final appraisal is used to assess property taxes

• • when one appraiser audits the work of another

• • when a license holder averages the prices of two comparable properties