Real Estate Fundamentals Quiz
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Questions and Answers

What is the formula for calculating the Upfront Mortgage Insurance Premium (UFMIP) on an FHA loan?

  • UFMIP = SP - LTV
  • UFMIP = SP / LTV
  • UFMIP = SP + LTV
  • UFMIP = SP x LTV (correct)

What criteria must be met for a broker to earn a commission?

  • The contract must be signed by both parties.
  • The seller must agree to the terms.
  • The buyer must be approved for financing.
  • A ready, willing, and able buyer must be produced. (correct)

Which fees does RESPA mandate should be disclosed on a closing statement?

  • Only attorney fees related to the transaction.
  • Costs associated with property inspections only.
  • Only lender fees and points.
  • All costs associated with financing the transaction. (correct)

What defines when an offer transitions into a legally binding contract?

<p>When it is agreed upon and returned to the original offeror. (C)</p> Signup and view all the answers

What does Regulation Z require to be disclosed to borrowers?

<p>Annual percentage rate (APR) only. (A)</p> Signup and view all the answers

Which statement about the Fair Housing Act is correct?

<p>It protects individuals from discrimination based on their race. (C)</p> Signup and view all the answers

What is true regarding the qualifications of a Real Estate Commissioner?

<p>Can be an unlicensed individual with relevant experience. (D)</p> Signup and view all the answers

In an assignment, what happens to the rights of the assignor?

<p>They lose all of their rights upon transfer. (B)</p> Signup and view all the answers

What is a requirement for opening a real estate firm?

<p>A licensed Qualifying Broker must be appointed. (C)</p> Signup and view all the answers

Which type of property do fructus industriales belong to?

<p>Personal property. (D)</p> Signup and view all the answers

Flashcards

FHA loan upfront mortgage insurance

Calculated by multiplying the Sales Price (SP) by the Loan-to-Value (LTV) ratio.

Broker's commission earning

Earned when a broker produces a buyer who is ready, willing, and able to purchase the property.

RESPA closing statement requirements

All financing transaction costs must be listed on the closing statement.

Offer becoming a contract

An offer becomes a legally binding contract when it's accepted and sent back to the original offeror.

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Paying salesperson after leaving broker

An independent contractor agreement dictates compensation for pending transactions.

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Fair Housing Act violation

Refusing to sell property to someone based on race is illegal.

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Real Estate Commissioner qualifications

A Real Estate Commissioner does not need to be a licensed broker or have any real estate license.

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Fructus industriales

Fruits of industry, like crops planted and harvested on a property, are considered personal property.

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Assignment of rights

In an assignment, all rights and responsibilities of the original party (assignor) are transferred to the new party (assignee).

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Qualifying Broker for Real Estate firms

All real estate firms require a qualifying broker, who must be a licensed broker; this applies if the firm is a corporation, partnership, or LLC.

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