1. Fannie Mae
   FHA
2. Freddie Mac
   Ginnie Mae

Ginnie Mae, or GNMA, was solely created to promote low-income housing.

1. A principal
   A licensed salesperson
2. An agent
   A neutral party

An agent is someone who transacts business or manages the tasks of another person. That person would be the principal (Tony), which is the party the agent represents and acts on behalf of.

1. Inactive
   Active
2. Qualified
   Exempt

For mortgage interest deductions purposes, a qualified home is considered the primary or main home of the taxpayer.

1. Preventative maintenance
   Scheduled maintenance
2. Corrective maintenance
   Property maintenance

Fixing something that is already malfunctioning is called corrective maintenance. Inspecting equipment and making repairs when necessary is called preventative maintenance.

1. Certificate of Occupancy
   Code of Originality
2. Certificate of Order
   Common Organs

The certificate of occupancy is the document showing that the premises is approved and safe for occupancy. A CO is required if any building additions are done.

1. Eminent domain
   Illegal enterprise
2. Variance of the zoning laws
   Nonconforming use

The grocery store was in compliance before the new code was established, so it can continue to operate under its present owners. If the store is ever sold, then the new owners must comply with the new zoning ordinance.

1. Pledged Account
   Open-End
2. Closed-End
   Blanket

Real estate developers often use a commercial mortgage called a blanket mortgage to finance a project. For these types of mortgages, at least two parcels of property would be needed as collateral.

1. Executed
   Executory
2. Implied
   Unilateral

An executory contract is a contract that has terms that will be completed at a later date, like a mortgage. An executed contract is a contract that has been fully performed.

1. Profit gains
   Gross income
2. Short-term capital gains
   Long-term capital gains

Profits from real estate are called capital gains. Profits on those assets that were owned for more than 12 months are called long-term capital gains.

1. Broker A
   The brokers split the commission evenly.
2. The owner decides who gets the commission.
   None of them get the commission.

Since this is an open listing, whoever sells the warehouse gets the commission. That means Broker A gets the commission.

1. External obsolescence
   Depreciation
2. Environmental decrease
   Functional obsolescence

Depreciation is when a building loses value due to any cause, like deterioration, damage and normal wear and tear.

1. Yes, because of functional obsolescence.
   No, as noise from aircraft passing overhead doesn't lower property values.
2. No, as it would increase the value since the property is so close to an airport.
   Yes, because of economic obsolescence.

There is economic obsolescence when factors come into play that are unrelated to the property itself and the owner has no control over it happening, and these factors diminish the property value.

1. People with lower credit scores can get these.
   Better interest rates
2. Easier for budgeting
   Mortgage is paid off quicker.

If you are paying biweekly, that means you are making 26 payments in a 52-week year. Every two payments equals one monthly payment, so if you divide 26 by 2, it equals 13 monthly payments you would make in a 52-week period compared to 12 monthly payments in a year.

1. Families
   Persons with physical disabilities
2. Persons with mental disabilities
   Elderly people

The 1988 Amendment added protected classes to the Fair Housing Act, like families and people with mental and physical disabilities. Elderly people were not added to the law, but senior citizen housing is exempt from the Fair Housing Act if it complies.

1. No, an agreement was not signed.
   Yes, an agency by estoppel
2. No, Tina never officially hired Tyler.
   Yes, as an express agency

An agency by estoppel is an implied agency, which is formed based on the words or actions of the agent and principal that show an intent to form the agency. Since Tina, the principal, didn't stop Tyler, the agent, from representing her interests, the agency was formed.

1. 46, 530
   30, 456
2. 43,560
   34, 560

There are 43, 560 square feet in 1 acre. This is one of those fun "standard" measurements that makes real estate and surveying so challenging.

1. 15%
   25%
2. 35%
   45%

The loan-to-value ratio is the ratio of the loan balance to the property value. To find this, you would divide the loan balance by the market value, so $266,000 / $760,000, which equals 0.35. That gives you a loan-to-value ratio of 35%.

1. Disclose the true costs of obtaining credit.
   Find out the costs to close a transaction.
2. Disclose the true costs of an FHA loan.
   To get a better interest rate for the lender

Truth in lending helps do away with any deceptive financing tactics. It's also known as Regulation Z.

1. A shopping mall with clothing and furniture stores
   A restaurant on first floor and office space on second floor
2. A shipping warehouse adjoining an office suite center
   A bookstore on first floor and apartments above it

Mixed-use property is any type of property that combines different uses together, whether it be commercial, residential, cultural, entertainment and so on. The shopping mall with furniture and clothing stores have similar commercial uses, so no mixed use exists.

1. Discounting
   Package financing
2. Blanket Financing
   Warehousing

Warehousing happens when banks and other lenders give out mortgage loans to consumers knowing they will quickly turn around and sell those loans on the secondary market.

1. Land
   Lumber
2. Bricks mortared together to form a wall
   A growing tree

For it to be considered realty, it has to be the land or anything attached to it. The growing tree is something that can be removed from the property, so it isn't considered realty.

1. Condemnation
   Public seizure
2. Appraisal
   Eminent domain

Eminent domain is the government power allowing it to obtain private property for public use. When the property is actually taken, that is condemnation.

1. Real estate broker
   Real estate agent
2. Real estate appraiser
   All of them

A real estate appraiser is the only one who can prepare an official property appraisal. An agent and broker can prepare a Comparative Market Analysis (CMA) or Broker's Opinion of Value (BOV).

1. Bill of Rights
   The fee simple system
2. Freehold estate
   The bundle of rights

The bundle of rights contains all the rights one obtains with the ownership of real property. These rights would include the right to enter, lease, use, sell and give away the real estate or the right to do none of these things.

1. Credit
   Closing
2. Capacity
   Collateral

Closing is not one of the three c's, as capacity is the cash reserve and debt ratio of borrower, collateral is the down payment and property type and credit is the credit check of the borrower.

1. A mortgage
   A leasehold estate
2. A freehold estate
   A nonfreehold estate

An estate is an interest in property that gives you the right to possess the land. A freehold estate is ownership of that property for an undetermined length of time and nonfreehold or leasehold estates have a determinable end.

1. To find out the appraisal value of the property.
   To find the best interest rate for the mortgage.
2. To determine the risk of making the loan.
   To determine how much the property is worth.

Mortgage lenders call this process underwriting. During this time, they look at the potential borrower's salary, credit history and other things to assess the risk of making the loan.

1. Not renovating second-floor apartments for handicapped residents.
   Refusing to rent to someone because they don't meet financial qualifications
2. Not allowing a service dog in an apartment that doesn't allow pets
   A private club that allows lodging and gives special treatment to members

Even in apartment complexes that do not allow dogs, the Fair Housing laws allow handicapped individuals who need a service dog to have one. If the dog causes any damage to the apartment, the dog owner is responsible for those costs.

1. An assurance
   Her approval letter
2. A promissory note
   A commitment

A commitment is a document from the mortgage lender stating they will be loaning the money to the borrower. The promissory note is her promise to pay back the mortgage, and the letter of approval is a pre-approval.

1. Voluntary alienation
   Adverse possession
2. Involuntary alienation
   They have no claim to the land.

Every state has adverse possession laws, which have been on the books for a very long time. Basically, if a land owner shows no interest in the land and someone else has been using it as their own for a long period of time (7 to 40 years, depending on the state), then the person using the land has rights to the land.

1. The seller
   The buyer
2. The agent
   The bank

The seller only pays commission to the agent that sells the property. Since it is an open listing, the seller can use as many agents as they would like, so the agent could put in work and lose the sale (and commission) to another agent.

1. Estate for years
   Estate from year to year
2. Life estates
   Tenancy at will

Freehold estates have an undeterminable end, which a life estate would have. The others all have a determinable ending.

1. Sewers systems
   Streams
2. Wetlands
   Wastewater systems

Marshes, swamps and bogs are examples of wetlands, which are protected areas. They may serve as protection for storm and flood water, help control erosion and pollution and serve as sanctuaries for wildlife.

1. Right of way
   Egress right
2. Common lien
   Nonpossessory interest

Easement is a right to cross or otherwise use someone else's land for a specified purpose. This is considered nonpossessory interest in someone else's land.

1. Leasing Agent
   Maintenance Supervisor
2. Property Manager
   Managing Agent

A property manager oversees the property on behalf of the owner. They typically would oversee employees and the maintenance of the property.