MRP Real Estate Law & Regulations 2

Question 1

Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate that can be charged on pre-service mortgage obligations for active-duty military members?

Accepted Answer

6%

Answer

The SCRA caps interest rates at 6% per year on financial obligations incurred before active-duty service.

Question 2

Which federal law requires lenders to disclose the Annual Percentage Rate (APR) and other loan terms to borrowers before closing?

Accepted Answer

TILA (Truth in Lending Act)

Answer

The Truth in Lending Act (TILA) mandates clear disclosure of APR and loan terms so borrowers can compare credit offers.

Question 3

A military buyer uses a VA loan to purchase a home. The seller's agent insists the buyer must pay for a termite inspection. Is this permitted?

Accepted Answer

No, VA guidelines prohibit the buyer from paying for termite inspections in most states

Answer

VA guidelines in most states classify termite inspections as a non-allowable fee that the buyer cannot pay; the seller or lender typically covers it.

Question 4

What does the term 'equitable title' mean in a real estate transaction?

Accepted Answer

The buyer's interest in property after signing a purchase contract but before closing

Answer

Equitable title is the beneficial interest a buyer holds once under contract, giving them the right to obtain legal title upon fulfilling contract terms.

Question 5

A PCS-relocated service member sells a home after only 18 months of residence. Under the IRS military exception, what is the maximum capital gains exclusion available?

Accepted Answer

$250,000 for single filers / $500,000 for married filers

Answer

Military members can claim the full $250,000/$500,000 capital gains exclusion even if they have not met the standard 2-year residency requirement due to PCS orders.

(MRP) Military Relocation Professional Practice Test

(MRP) Military Relocation Professional Practice Test

MRP Real Estate Law & Regulations 2