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National Real Estate Exam Practice Test Part 5
This deck covers key concepts and questions from the National Real Estate Exam, focusing on property management, environmental hazards, mortgage contracts, and more.
All federally related loan programs require a property to have which of these?
an appraisal
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Key Terms
Term
Definition
All federally related loan programs require a property to have which of these?
an appraisal
Asbestos, an environmental hazard, is a mineral that has been used for many years as:
insulation
When a property management agreement is signed, it creates:
a general agency relationship between the owner and property manager
An appraisal report is a report from a:
licensed appraiser that sums up a property's market value based on collected data
What is the main reason for considering underground storage tanks (USTs) an environmental hazard?
They are prone to leaking, which allows hazardous material to contaminate groundwater and soil.
Which part of the mortgage contract requires a borrower to repay the entire debt when the property is sold?
alienation clause
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| Term | Definition |
|---|---|
All federally related loan programs require a property to have which of these? | an appraisal |
Asbestos, an environmental hazard, is a mineral that has been used for many years as: | insulation |
When a property management agreement is signed, it creates: | a general agency relationship between the owner and property manager |
An appraisal report is a report from a: | licensed appraiser that sums up a property's market value based on collected data |
What is the main reason for considering underground storage tanks (USTs) an environmental hazard? | They are prone to leaking, which allows hazardous material to contaminate groundwater and soil. |
Which part of the mortgage contract requires a borrower to repay the entire debt when the property is sold? | alienation clause |
Which ownership rights can be sold separately from a property's surface rights? | subsurface, air and water rights |
What happens in the secondary mortgage market? | Mortgage notes made in the primary market are bought and sold. |
Emmy just bought a house. To purchase the house, she got a loan for $300,000 with 4 discount points. How much did she pay for the discount points? | $12,000 |
Ben manages an apartment complex that has an effective gross income of $100,000. Operating expenses were $60,000. What is the net operating income of the property? | $40,000 |
Who provides flood insurance to homeowners? | the National Flood Insurance Program (NFIP) |
Stigmatized properties are properties: | with suppressed market value unrelated to their physical condition or features |
The Fair Housing Act covers: | residential transactions only |
Joel was told by a lender the highest leverage he could achieve was a loan-to-value ratio of 75%. His loan principal is $315,000. What is the total purchase price? | $420,000 |
How many parties are required to perform in a bilateral contract? | two |
When the terms of a contract have not yet been fully performed by both parties, the contract is best described as: | executory |
The Civil Rights Act of 1866 protected the right to fair housing regardless of: | race, with no exceptions |
Which of these is the best example of stigmatized property? | home where a notorious convicted murderer once lived |
An unmarried Texas couple purchased real estate together. How would the deed identify how they hold their interests if they specify they want them passed to the survivor in case of death? | joint tenancy with rights of survivorship |
Mutual rescission occurs when: | both parties mutually agree to end an agency relationship |
In the sales comparison approach to property valuation, what does the principle of substitution state? | The value of a property is only what a consumer would pay to acquire a comparable property. |
A property manager's PRIMARY responsibility to the owner is to: | realize the highest return possible and maximize the owner's return on that investment |
When a tenancy at sufferance occurs, the tenant is referred to as a: | holdover tenant |
Which of the following terms refers to a surveyor's or developer's map that identifies lots and blocks? | plat |