RELE 1238 Final Exam Answers Downloading is very simple, you can download this Course here: http://mindsblow.us/question-details/RELE-1238-Final-Exam-Answers/7062 Or Contact us at: help@mindblows.us RELE 1238 Final Exam Answers RELE1238 RELE 1238 Final Exam Answers Question 1. Real estate appraising a.
requires good negotiating and sales skills.
b.
requires advanced training and credential designations to ensure an adequate level of competence.
c.
is a fairly easy field to enter as a new associate.
d.
in the mortgage banking industry does not require a real estate license.
Question 2. Which of the following is NOT an example of government’s exercise of its police powers? a.
rent controls
b.
building codes
c.
zoning laws
d.
restrictive covenants
Question 3. Typically, physical possession of the property is given to the buyer: a.
upon signing of the sales contract.
b.
before close of escrow (settlement).
c.
the day of close of escrow (settlement).
d.
30 days following close of escrow (settlement).
Question 4. The phrase “time is of the essence” in a sales contract means that: a.
the time limits set by the contract must by faithfully observed or the contract is voidable.
b.
the parties are prohibited from giving each other an extension.
c.
the contract is void.
d.
the contract is a counteroffer.
Question 5. When property is sold by means of an installment contract: a.
the seller delivers deed at closing.
b.
the buyer is NOT given the right to occupy the property until the contract terms have been fulfilled.
c.
the seller retains title.
d.
time is of the essence.
Question 6. A purchaser’s right to acquire legal title to real property under the terms of a valid agreement is known as: a.
naked title.
b.
equitable title.
c.
specific performance.
d.
contract title.
Question 7. Tax – deferred real estate exchanges are possible only when: a.
all properties are of equal value.
b.
no more than two properties are involved.
c.
properties are “like – kind”.
d.
there are no mortgages.
Question 8. Which of the following prohibits discrimination by lenders? a.
Fair Housing Act
b.
Equal Credit Opportunity Act
c.
Real Estate Settlement Procedures Act
d.
Texas Real Estate License Act
Question 9. In order to convey title to real property, a deed must be signed by the: a.
grantee.
b.
grantor.
c.
agent.
d.
grantee and grantor.
Question 10. Deeds are usually acknowledged to: a.
make them valid.
b.
provide constructive notice.
c.
make them enforceable.
d.
make them admissible to the public records.
Question 11. Once a person is aware of another’s rights or interest in property, that person is said to have: a.
constructive notice.
b.
legal notice.
c.
inquiry notice.
d.
actual notice.
Question 12. Which of the following would not ordinarily be checked in searching a title to a parcel of land? a.
judgment records
b.
lien records
c.
chattel mortgage records
d.
lis pendens index
Question 13. Protection against incomplete or defective records of the title to land can best be obtained by securing: a.
an abstract of title.
b.
title insurance.
c.
an attorney’s opinion.
d.
a title searcher’s opinion.
Question 14. Marketable title to real estate is title which is: a.
absolutely free of any possible defect.
b.
free of reasonable doubt as to ownership.
c.
issued by a court after completion of a quiet title action.
d.
free of all liens.
Question 15. A mortgagee’s policy of title insurance protects:
a.
seller.
b.
buyer.
c.
agent.
d.
lender.
Question 16. Evidence of the amount and terms of a borrower’s debt to a lender is provided by means of a(n): a.
mortgage.
b.
promissory note.
c.
first mortgage.
d.
hypothecation.
Question 17. A borrower’s property serves as collateral while the borrower retains the rights of possession and use of it by the process of: a.
alienation.
b.
hypothecation.
c.
amortization.
d.
acceleration.
Question 18. Which of the following covenants ensures that the borrower will keep the property in good condition? a.
covenants of forbearance
b.
covenant of hypothecation
c.
covenant against encumbrances
d.
covenant of good repair
Question 19. The lien priority of mortgages is determined by the: a.
date of the mortgage instrument.
b.
date of the promissory note.
c.
language of the mortgage instrument.
d.
date of recordation.
Question 20. The lender is also called the: a.
mortgagor.
b.
trustor.
c.
mortgagee.
d.
trustor.
Question 21. A loan wherein the principal is all repaid in one lump sum payment at the end of the loan’s life is known as a(n): a.
straight or term loan.
b.
amortized loan.
c.
budget mortgage.
d.
balloon note.
Question 22. Clyde borrowed money to purchase a home under terms that required him to make monthly payments that included loan amortization plus prorated insurance premiums and annual real property tax payments. This loan is referred to as a: a.
budget loan.
b.
package loan.
c.
blanket loan.
d.
chattel loan.
Question 23. As used in real estate finance, the term “point” means: a.
one percent of the purchase price.
b.
the down payment expressed as a percentage of price.
c.
one percent of the loan amount.
d.
the borrower’s equity expressed as a percentage of value.
Question 24. If a contract is executed employing the Texas Veterans Land Board, the purchase price of the land cannot exceed the lower of: 95% of purchase price, 95% of the appraised value, or: a.
$40,000.
b.
$60,000.
c.
$80,000.
d.
$100,000.
Question 25. A first mortgage and equity loan together cannot exceed:
a.
any limit.
b.
75% of value.
c.
80% of value.
d.
90% of value.
Question 26. The reason that a Graduated Payment Mortgage is called a Negative Amortization is because: a.
the public perception of the Graduated Payment Mortgage is very Negative.
b.
the interest rate becomes negative during the life of the loan.
c.
when the interest paid is less than the amount due, the deficiency is added to the loan balance.
d.
the negative effect on the borrower’s credit when payment are late.
Question 27. When numerous properties are pledged against a single mortgage, the mortgage is called a: a.
package mortgage.
b.
reverse mortgage.
c.
blanket mortgage.
d.
blended–rate mortgage.
Question 28. The type of financing in which the seller retains title to the property is called a: a.
wraparound mortgage.
b.
land lease.
c.
subordination.
d.
contract for deed.
Question 29. A real estate practitioner can advertise which of the following terms and not trigger Regulation Z? a.
7% interest rate
b.
$498 monthly payments
c.
90% financing
d.
low down payment
Question 30. Which of the following statements is true regarding real estate leases? a.
All leases for real estate must be in writing to be enforceable.
b.
There are no TREC promulgated lease forms except the temporary lease forms.
c.
Only the landlord needs to sign a lease.
d.
A holdover tenant is exactly the same as a trespasser.
Question 31. With Regard to landlord–tenant Laws, which of the following statements is correct? a.
In the event of non–payment of rent the landlord can place a lien on all tenant’s furniture.
b.
Habitable premises is rigidly defined for all properties.
c.
The landlord has an obligation to install security devices.
d.
The maximum occupancy limits prohibit more than two adults per bedroom.
Question 32. With regard to the adjustment phase of the appraisal, which of the following is true? a.
The adjustment is made to the subject property.
b.
More weight is given to the comparable that has the most adjustments.
c.
Term and conditions of sale are not considered when making adjustments.
d.
The “Adjusted Market Price” is the dollar value of each comparable sale after it has gone through an adjustment process.
Question 33. If land under an apartment building is being appraised, the most likely method used would be the: a.
front–foot basis.
b.
square foot basis.
c.
lot method.
d.
county appraisal district records.
Question 34. The most appropriate method used to appraise a public school building would be the: a.
market comparison approach.
b.
income approach.
c.
cost approach.
d.
unit in place approach.
Question 35. In using the cost approach in an appraisal, a building is found to have faulty or outdated design. It would be subject to which type of depreciation? a.
Functional obsolescence
b.
Economic obsolescence
c.
Physical deterioration
d.
Fictional depreciation
Question 36. If unavoidable circumstances cause a delay in closing, but it is important to close anyway, the parties may: