Sell My House House Buying 4

Question 1

What does 'as-is' mean when a seller lists a property that way?

Accepted Answer

The seller will not make repairs or credits for defects found

Answer

An as-is listing signals the seller will not repair defects or provide credits, though buyers can still inspect and back out if issues are unacceptable.

Question 2

What is private mortgage insurance (PMI), and when is it typically required?

Accepted Answer

Lender protection insurance required when down payment is less than 20%

Answer

PMI protects the lender if the borrower defaults and is typically required on conventional loans with less than a 20% down payment.

Question 3

Which type of deed provides the buyer with the highest level of protection against title defects?

Accepted Answer

General warranty deed

Answer

A general warranty deed guarantees clear title for the entire history of the property, not just the seller's period of ownership.

Question 4

A buyer is purchasing a condo. Which additional monthly fee will they most likely pay beyond the mortgage?

Accepted Answer

Homeowners association (HOA) fee

Answer

Condo owners typically pay monthly HOA fees that cover shared building expenses like maintenance, amenities, and sometimes utilities.

Question 5

What does it mean when a home appraises below the agreed purchase price?

Accepted Answer

The lender will base the loan on the appraised value, creating a gap the buyer must cover

Answer

When the appraisal comes in low, the lender caps the loan at appraised value, leaving the buyer to cover the shortfall in cash, renegotiate, or walk away.

Sell My House Practice Test

Sell My House Practice Test

Sell My House House Buying 4