Real Estate Practice Exam 5
What requires lenders to give a Good-Faith Estimate?
. A 3-year insurance policy costing $1,164 is taken out November 1, 1995. The property was sold on May 15, 1996, and the day of closing belongs to the buyer. If the buyer assumes the policy, what the should the buyer pay the seller at closing, using the 30-day month method?
A small apartment property is estimated to have potential gross income of $ 25,000. Vacancy and collection losses are expected to average 5 percent over the life of the property. Operating expenses are expected to average about 30 percent of effective gross income. An overall capitalization rate of 12 percent is derived from market transactions of similar properties. What is the market value?
Usually, local planning commissions are composed of
A home is 10 years old. It has a 50-year life, and a $100,000 reproduction cost. The appraiser assigns physical deterioration of $26,000. Which is probably correct?
A reasonably good balance between supply and demand of apartments is
Which is correct about Regulation Z?
Fred has a long-term capital loss on the sale of his personal residence. He may deduct
Marilyn is applying for a loan to finance her new home in an area where there are minorities. The loan officer tells her that she should try to find another location, since the loan committee would prefer not to lend in that area. The lender may be involved in the illegal practice called
A buyer purchases a 4-unit commercial building for $150,000 cash. Operating expenses of the building total $30,000 annually. What must the buyer get in monthly rent from each unit in order to achieve a 20% return?
A comparable property showed adjusted value of $40,000. The property sold two years ago, and the adjustments indicated a 7% annual appreciation rate. Assuming the appreciation was the only adjustment, how much was the total adjustment?
An appraiser values a 4-bedroom home with a pool. A pool normally adds $14,000 value to a property, and a bedroom is worth $9,000. She locates the following comparable sales: 5 bedroom home, no pool, sold for $125,000 4 bedroom home, no pool, sold for $116,000 3 bedroom home with pool, sold for $121,000 What is the value of the subject property?
A seller receives $18,000 proceeds from the sale of her home. The mortgage balance was $32,000, she paid a commission of 7%, and her closing costs were 3%. What was the sales price?
A comparable property sold a year ago for $70,000, but would have sold for about eight percent more today. The appraiser should:
A building rents for $5 per square foot, and there is an index of 1.5. The following year the index climbs to 1.8. The rent is tied to the index. What will the rent be per square foot?
Which may be deducted for income tax purposes by a homeowner?
John takes out a 14% 30-year mortgage in the amount of $65,000. The loan constant is .011849. What is the balance of the loan after the second payment?
Which is deducted from gross income to arrive at net operating income?
A prospect enters Broker A's office and requests to be shown houses in neighborhoods with certain racial characteristics. The broker advises the prospect that he will show him houses without regard to the racial characteristics of the neighborhood. The prospect is shown houses in certain minority neighborhoods and certain non-minority neighborhoods. The prospect becomes interested in two of the houses, both of which are in minority neighborhoods. If the broker had followed the prospect's initial instructions, which of the following would be correct?
The Fair Housing Act of 1968 (with amendments) prohibits discrimination
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