VTRES - Vermont Real Estate Salesperson

Question 21: An instructor reminds students that no physical or economic condition affecting real estate stays constant, so appraisers must weigh both the past and the predictable future effects of natural forces and shifting markets. Which principle of value is being described?

Change

Anticipation

Competition

Regression

Question 22: When a wave of new construction floods a market with far more homes than buyers currently seek, prices tend to soften. When available homes grow scarce as buyers multiply, prices climb. Which principle of value best describes this market relationship?

Anticipation

Conformity

Contribution

Supply and demand

Question 23: An appraiser is engaged to value a large downtown office building held by an investor chiefly for the rental revenue it produces from many commercial tenants. Which of the three approaches to value would generally be given the greatest weight?

The cost approach

The income approach

The sales comparison approach

The land residual approach

Question 24: One of the three approaches to value rests on the idea that a property's worth reflects the present value of the future income it is expected to produce, a direct application of the principle of anticipation. Which approach is this?

The income approach

The cost approach

The sales comparison approach

The market data approach

Question 25: In a well-established neighborhood of similar mid-sized ranch homes, a developer erects one enormous, ornate mansion that towers over all of its neighbors. Appraisers note that it cannot reach its full value because it violates which principle of neighborhood harmony?

Progression

Regression

Contribution

Conformity

Question 26: In an old metes-and-bounds description, the recorded footage between two iron pins conflicts with the actual measured distance between those same pins on the ground today. When such a conflict arises, which element of the description is given controlling weight?

The stated linear footage

The point of beginning

The distance between the monuments

The compass bearing

Question 27: On a residential appraisal form, the appraiser reports the finished, heated square footage measured above ground level, deliberately excluding basement space, as the standard basis for comparing the subject home with the comparables. Which term names this measured finished space above grade?

Gross rent multiplier

Net operating income

Front footage

Gross living area

Question 28: On certain loans, a payment cap can hold the monthly payment below the interest actually due, and the shortfall is added back to what the borrower owes, so the balance rises rather than falls. Which term names this outcome?

Negative amortization

Accelerated amortization

Defeasance

Subordination

Question 29: A buyer evaluating a warehouse cares about its total interior capacity, so the space is measured across its length, its width, and its height and reported in cubic feet. Which property characteristic is being expressed by this three-dimensional cubic measurement?

Area

Volume

Frontage

Perimeter

Question 30: The interest rate on an adjustable loan moves up or down over the term because it is tied to a published economic indicator, one most often keyed to the yield on United States Treasury securities. Which ARM component is that indicator?

The margin

The payment cap

The index

The adjustment period

Question 31: In an adjustable-rate mortgage, the lender adds a fixed percentage that represents its cost of doing business to a fluctuating economic indicator in order to set the rate the borrower actually pays. Which component is that fixed add-on called?

The index

The margin

The rate cap

The point

Question 32: A lender charges a fee to cover the paperwork, the loan officer's salary, and the other business costs of generating a new mortgage, and instructors stress that this particular fee is not prepaid interest. Which charge is being described?

Loan origination fee

Discount points

Prepayment penalty

Impound reserve

Question 33: Before approving a home loan, an underwriter measures whether a borrower's monthly obligations leave enough income to carry the new housing payment, comparing all recurring monthly debt payments against the applicant's gross monthly earnings. Which ratio expresses that comparison?

Loan-to-value ratio

Capitalization rate

Gross income multiplier

Debt-to-income ratio

Question 34: To describe and convey the space occupied by a specific condominium unit several stories above the ground, a surveyor references measured elevations above and below an established horizontal plane of reference. Which term names the volume of space being conveyed in this manner?

A benchmark

A section

An air lot

A range

Question 35: A rural listing states that a parcel contains a certain number of a standard land-area unit long used to express the size of farmland and open tracts in the United States. Which unit of land area is customarily used for this purpose?

The front foot

The cubic yard

The linear mile

The acre

Question 36: A commercial lot along a busy highway is valued according to how far it extends along the road, since street exposure drives its worth. The measurement of that single road-facing boundary line is expressed using which unit of linear measurement?

The front foot

The square foot

The cubic foot

The acre

Question 37: When an appraiser records the size of a home's finished living space by measuring its length and width and reporting the result in square feet, that figure expresses one particular dimension of the property. Which property dimension does square footage express?

Volume

Area

Perimeter

Frontage

Question 38: In a subdivided residential neighborhood, deeds identify each home by referring to a recorded drawing that shows the location, dimensions, and boundaries of every numbered lot along with the streets serving them. Which document is being referenced in these deeds?

The principal meridian

The point of beginning

The plat map

The benchmark record

Question 39: Some states cap the interest a private lender may legally charge, and a lender who exceeds that ceiling has engaged in a prohibited practice that can cost it interest or even the loan. Which term names charging interest above the legal maximum?

Usury

Hypothecation

Amortization

Novation

Question 40: At a closing, the settlement agent divides shared ongoing costs such as taxes, fuel, and utility bills fairly between the departing owner and the incoming owner according to the portion of the period each holds title. Which process accomplishes this?