MRP Real Estate Law & Regulations 4

Question 1

Which of the following best describes 'eminent domain'?

Accepted Answer

The government's power to take private property for public use with just compensation

Answer

Eminent domain is the constitutional authority allowing government to acquire private property for public purposes, requiring payment of fair market value.

Question 2

Under VA loan rules, which party is required to pay the VA funding fee in a purchase transaction?

Accepted Answer

The veteran borrower (or it can be financed into the loan)

Answer

The VA funding fee is a one-time fee paid by the veteran borrower that can be financed into the loan amount; it helps sustain the VA loan program.

Question 3

A military couple buys a home using the VA loan benefit. Three years later they receive PCS orders and decide to rent out the home rather than sell. Which statement is correct?

Accepted Answer

They may rent the property; VA loans do not prohibit conversion to rental after initial occupancy

Answer

VA loans require the borrower to initially occupy the home, but once that occupancy requirement is met, the property may be converted to a rental without refinancing.

Question 4

What is 'redlining' in the context of fair housing law?

Accepted Answer

The illegal denial of financial services to residents of certain geographic areas based on race or ethnicity

Answer

Redlining refers to the discriminatory practice of refusing loans or insurance in minority neighborhoods, which is prohibited under the Fair Housing Act and ECOA.

Question 5

Which document legally transfers ownership of real property from seller to buyer at closing?

Accepted Answer

Deed

Answer

The deed is the legal instrument that conveys ownership of real property from the grantor (seller) to the grantee (buyer) when properly executed and delivered.

(MRP) Military Relocation Professional Practice Test

(MRP) Military Relocation Professional Practice Test

MRP Real Estate Law & Regulations 4