Study Review of Principles 2 Flash Cards

 
Pile Management Card
Review of Principles 2

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Which creates a lien against the property as security for the debt?
Deed of Trust
In an amortized loan, the initial payments are applied mainly to the
Interest
A declaration before a notary or officer of the court that the signature on a deed is genuine is a
Acknowledgement
Donna gives Tom a general warranty deed that does NOT mention that there is a mortgage lien on the property. This is a violation of the covenant
Against Emcumbrances
What kind of notice refers to information that is available in the public record?
Constructive
The first step in estimating property value using the income approach is to
Estimate Potential Annual Gross Income
Which provides a secondary market for FHA and VA (not conventional) mortgage loans?
Ginnie Mae
Requirements for obtaining title by adverse possession usually include which of the following?
All of the Above
If the seller's debits are greater than the seller's credits on the closing statement, the seller will
Pay cash at closing
Who is usually responsible for fees to prove good title?
Seller
VA loans are made by
V-A Approved lenders
Which originate loans with either their own money or funds borrowed from other institutions?
Mortgage Bankers
A loan that is NOT insured or guaranteed by a government agency against default of the borrower is called a
Conventional Loan
If the seller is presumed to be responsible for the day of the closing, using the calendar-year method, compute the tax proration for yearly real estate taxes of $3,650 paid in arrears for a closing on July 22. The actual number of days in the proration period is
203
A bequest is the disposition under a will of
Personal Property
What kind of title policy is guaranteed for the amount paid for the property?
Owner's
he annual percentage rate (APR) includes the base interest rate and all finance costs that are incurred in a transaction solely because there is a loan involved T/F?
T
The final step in the cost approach for estimating value of property is to
Add estimated land value to the depreciated cost of the building and other site improvements
Which originate loans with either their own money or funds borrowed from other institutions?
Mortgage Bankers
What kind of notice refers to information that is available in the public record?
Constructive
Charging interest in excess of the maximum rate of interest set by state law is called
Usery
A single-family residence does NOT reach its full value because it is located in an industrial area. This illustrates the appraisal principle of
Conformity
A loan that is NOT insured or guaranteed by a government agency against default of the borrower is called a
Conventional Loan
A bequest is the disposition under a will of
Personal Property
The annual percentage rate (APR) includes the base interest rate and all finance costs that are incurred in a transaction solely because there is a loan involved T/F?
T
A bedroom without a closet is an example of what type of depreciation?
Functional Obsolescence
Someone making a will must be free of undue influence by other people T/F?
T
To be eligible for recording, Texas requires that any instrument affecting real estate be either acknowledged or signed and sworn to before a notary public T/F?
T
A point is one percent of the loan amount T/F?
T
The goal of adjustments is to make the characteristics or amenities of the comparable properties higher than the subject property T/F?
F
Legal capacity means that the grantor of a deed must be of legal age and mentally competent T/F?
T
Proration calculations using the statutory month method are computed using 30 days in a month T/F?
T
The borrower must occupy a property bought with a VA loan t/f?
T
To find the subject property's value, multiply net operating income (NOI) by the capitalization rate (cap rate T/F?
F
Knowledge that a buyer received a deed but NEVER recorded it is constructive notice T/F?
F
A Loan Discount represents the percentage by which the face amount of a mortgage loan is reduced when it is sold to an investor T/F?
T
Prior to closing, the buyer usually deposits the balance of the cash needed to complete the purchase T/F?
T
There is a relationship between the capitalization rate (rate of return) and risk T/F?
T
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