Exam (elaborations)
ACEABLE REAL ESTATE PRACTICE QUESTION3
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ACEABLE REAL ESTATE PRACTICE QUESTION3
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ACEABLE REAL ESTATE PRACTICEQUESTIONS (NC) PART 5 Questions with Correct
Answers
Peter is a new and very eager real estate agent who excitedly sets up an
appointment with a prospective seller-client. Peter promises the client
that he will come to their meeting "ready to impress" and will share with
them an appraisal report on the seller's property.
Which is probably the most accurate statement about Peter's promise?
Correct Answer-Peter used the wrong term if the report on the property's
value is something he prepared himself.
Investor Kamal wants a report on the potential usefulness or utility of a
property he is considering buying. The individual charged with
providing Kamal with this information came back with a report that
addressed the way the property had been used in the past, its present use,
and the possible ways it could be used in the future given its natural
resources and applicable zoning laws and regulations. It made no
mention, however, of the property's current or future value.
What is the appropriate name for this type of report? Correct Answer-
evaluation
Krista's lender told her that they would be having an appraisal done on
the house she is trying to purchase with financing. Why would a lender
require this? Correct Answer-In the event of foreclosure on Krista, the
value of the collateral property may be the lender's only means of
recovering the loan amount.
,Which party is usually responsible for choosing the appraiser? Correct
Answer-the lender
Arya is selling her home to Buyer Jake, who will be financing the
purchase. Deep Pocket Lenders intends to extend Jake the loan and will
be choosing the appraiser. Broker Gabriela will serve as a dual agent for
both Arya and Jake.
Who of these people will likely pay for the appraisal? Correct Answer-
Jake
Evander wants to buy Kala's home. Both of them are represented by
brokers. Because Evander will be financing the purchase, an appraisal
will be done on the property.
Who will choose the appraiser to do the appraisal, and who will pay for
it? Correct Answer-Evander will pay for the appraisal, but the lender
will choose the appraiser.
Appraisals can be used in which of the following processes? Correct
Answer-A. mortgage lending
B. government acquisitions
C. All choices are correct.
D. setting rental rates
, How are the terms appraisal, collateral, and LTV related? Correct
Answer-An appraisal establishes the value of the property that will serve
as collateral for the loan. The LTV measures the gap between the loan
amount and the collateral value.
What connection does the Financial Institutions Reform, Recovery, and
Enforcement Act (FIRREA) have with appraisers? Correct Answer-It
mandates that states regulate and license appraisers.
The Uniform Standards of Professional Appraisal Practice (USPAP) is:
Correct Answer-the ethical code that appraisers in the United States
must follow
After estimating the value of the property using the applicable
approaches to appraisal, an appraiser will: Correct Answer-reconcile the
final value estimate
Which of these would be an example of specific data gathered by an
appraiser? Correct Answer-age of adobe tile roof on the subject property
The gross rent multiplier (GRM) is the ratio of the price of a real estate
investment to its annual rental income, accounting for expenses such as
property taxes, insurance, and utilities. Correct Answer-A. FALSE
B. TRUE
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