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BARNEY FLETCHER EXAM QUESTIONS 2
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BARNEY FLETCHER EXAM QUESTIONS 2
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BARNEY FLETCHER EXAM QUESTIONS 2An appraiser recommended tearing down a $28,000 house. There was a shopping center across the street. Which of the following appraisal principles BEST describes this
situation?
A. deterioration
B. highest and best use
C. capitalization
D. substitution - answer- B. highest and best use
What could guarantee no encroachments and good title?
A. assumption package
B. title insurance policy
C. survey
D. termite inspection - answer- B. title insurance policy
Which of the following statements is true of a private deed restriction?
A. it is imposed by an individual on other people through a contract or deed
B. it is put on a property by an owner to reduce tax liability
C. it applies only to crops on agricultural property
D. it is imposed by the city restricting the use on the property - answer- A. it is imposed by an individual on other people through a contract or deed
A city council zoned a two block area so that only Spanish style homes could be built because of the Spanish heritage in the area. This is usually referred to as which type of zoning?
A. directive zoning
B. aesthetic zoning because of architecture
C. cultural zoning
D. bulk zoning - answer- B. aesthetic zoning because of architecture
A person bought a house and wanted to bring along a pet cougar to keep in the backyard. Which of the following governmental rights would MOST likely prohibit this?
A. police power because the police have authority over types of animals for pets
B. urban development regulations as they list allowable animals for the properties
C. zoning ordinances because sometimes these contain what animals may be kept
D. building codes as they would contain the most restrictions for city dwellings - answer-
C. zoning ordinances because sometimes these contain what animals may be kept
Howe's property was assessed at $30,000. Rand's property was assessed at $35,000. Which is true? A. the ad valorem tax on Rand's property is higher than Howe's
B. the improvement tax on Rand's property is higher than Howe's C. the special assessments on Rand's property are higher than Howe's
D. the special assessments on Howe's property are higher than Rand's property - answer- A. the ad valorem tax on Rand's property is higher than Howe's
A 3 year straight note was obtained at 10% per year. Interest paid the first two years was $4,200. The loan on the house was 75% of the value. What was the total value of the property?
A. $21,000
B. $28,000
C. $31,040
D. $38,750 - answer- B. $28,000
$4,200 divided by 2 years = yearly interest of $2,100. $2,100 divided by 10% = $21,000 loan divided by 75% = $28,000 price
A property sold for $75,000 with a down payment of 20%. The lender charged 3 discount points. How much in dollars were the points?
A. $1,500
B. $1,800
C. $2,100
D. $2,250 - answer- B. $1,800
$75,000 x 20% = a down payment of $15,000. $75,000 - the down payment of $15,000 = a $60,000 loan. $60,000 x 3% = discount points of $1,800
What document proves that a home loan has been paid off?
A. paid stamp on mortgage
B. mortgage release
C. defeasance clause
D. mortgage waiver - answer- B. mortgage release
Which of the following organizations is the largest purchaser of mortgages in the secondary mortgage market?
A. federal national mortgage association (FNMA)
B. government national mortgage association (GNMA)
C. federal home loan mortgage corporation (FHLMC)
D. farmer's home administration (FMHA) - answer- A. federal national mortgage association (FNMA)
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