The correct answer is (C). $765,832 × 0.65 = $497,790.80 $497,790.80 × 0.032 = $15,929.30 $15,929.30 ÷ 12 = $1,327.44 $1,327.44 × 6 = $7,964.65
The correct answer is (C). Choice (A) is incorrect because it is a mortgage that can be paid off early without a prepayment penalty. Choice (B) is incorrect because it is a mortgage that covers more than one property. Choice (D) is incorrect because it includes the remaining amount on the seller’s mortgage and makes payments to his or her lender that includes payments on the original mortgage.
The correct answer is (A). This is an example of the laws of supply and demand. The more supply, the less demand, and the lower the value. Choice (B) is incorrect because this is not an example of equilibrium. Choice (C) would be true if there were less supply and more demand. Choice (D) is incorrect because the economic principle is not dependent on use.
The correct answer is (C).An MLDS must contain a statement that a life insurance policy as a guarantee of repayment of the mortgage is not required, so choice (C) is the correct answer to the question. Choices (A), (B), and (D) must be itemized on an MLDS, so they are incorrect answers to the question. These are requirements of Regulation Z.
The correct answer is (D). Neither owes because the rent is due from the tenant on the day of the closing. If the question stated that the rent was due on the sixth, the answer would be the same. If the question stated that the rent was due on any day from the first of the month to the fourth, the answer would be choice (C), the seller.
The correct answer is (A). Choice (B), also called external obsolescence, refers to a loss in value because of factors outside a property. Choice (C) doesn’t apply because the scenario states that the properties are well maintained. Choice (D) refers to the period of time during which a building is estimated to provide value.
The correct answer is (C). This is the slow wearing down of the surface of the earth by natural forces such as wind and water. Choice (A) is the transfer of the title to a piece of property. Choice (B) is a distracter. Choice (D) is the slow addition of water-borne sediment, which would add to the oceanfront and, thus, the opposite of the scenario.
The correct answer is (D). Choice (D) occurs when a person who owns property dies without a will, but is survived by heirs. Choice (A) occurs when a person who owns property dies without a will and with no heirs. Choice (B) refers to the right of the government to take property from an owner for a public use. Choice (C) is a trust that a person sets up through his or her will to manage property after the person’s death for the benefit of heirs.
The correct answer is (D). While the sales comparison approach, choice (B), is typically used to appraise a residential property, the income approach could be used because the townhouse will be used as a rental property. Choice (A) is used typically for special-use properties such as a hospital or school. Choice (C) is actually called reproduction and replacement cost method and is a technique used to estimate cost for the cost approach, choice (A).
The correct answer is (C).In January 2010, the Federal Housing Administration raised the initial premium from 1.75 percent to 2.25 percent as a way to screen out risky borrowers as a result of the housing crisis that began in 2007. Choice (A) is the previous rate. Choice (B) is incorrect, and choice (C) refers to the maximum percentage of the buyer’s loan that a seller could pay in points under the new regulations.
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