Principles of Real Estate 2 – Practice Test
Loss of value due to lack of modernization is called:
The _______ is considered the most reliable approach to value because it is based on verifiable market events.
A loss in a property's value due to daily wear and tear is an example of _______.
The appraiser will use the cost approach to value:
A real property appraisal will contain an analysis of each of the following, EXCEPT:
The appraisal principle of conformity tells us that a house is worth the most when:
Official property value for tax purposes is called:
The appraisal principle of ____________ states that the purchase price of a property is affected by the expectation of future appeal and benefits.
The best definition of market value is:
The effective age of a house can be younger than its _______ if it has been well-maintained.
In which approach to value is the appraiser calculating depreciation as a factor along with land value and replacement cost for a structure?
The primary purpose of FHA is:
When a loan is funded, the FHA charges a(n) _______ which can be paid at closing or added to the loan at funding.
The borrower's monthly payment includes principal and interest plus on-twelfth of the annual property tax assessment and on-twelfth of the annual insurance premium. This is a:
Which of the following statements about the use of gift funds in government loans is true?
A person who brings a borrower and a lender together for a fee is called:
Most of the specific requirements imposed by TILA are found in
The _______ is the percentage of the lesser of the appraised value or sales price that the lender will lend.
The Loan Estimate:
The Equal Credit Opportunity Act prohibits credit discrimination on the basis of:
Which of the following is true of property taxes?
Which of the following is one of the four rights that the government retains in land?
The four rights retained are police power, taxation, eminent domain, and escheat.
Police Power is the:
Taking private land for use is EMINENT DOMAIN. Right of the government to tax real estate is TAXATION.
If a landowner sues the government in order to force it to buy his or her land, this is called:
Ad valorem is a tax whose amount is based on the value of a transaction or of property. The other two are not real estate terms.
A _______ is one in which a property, with the consent of the lender, is sold by an owner/borrower at a price that is not sufficient to pay off the existing mortgage.
A residential Mortgage Loan Originator must be licensed with:
Under the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act), residential mortgage lenders must be either licensed or registered with the Texas Department of Savings and Mortgage Lending.