Barney Fletcher Exam

Barney Fletcher Exam A 40 unit apartment building rented units for $300 per month. The annual gross rent multiplier was 10.What was the value?

A. $120,000

B. $144,000

C. $1,200,000

• $1,440,000 correct answerD. $1,440,000

40 x $300 per month x 12 months = annual rent of $144,000 x an annual multiplier of 10 = $1,440,000 A seller listed property for sale. There were a limited number of houses available in the area. There were also a great number of buyers interested in purchasing homes in that area. What would MOST LIKELY happen to the value of the property?

• it would increase in value
• it would decrease in value
• the value would stay the same but the property would sell faster
• there is not enough information given to determine a value change correct answerA. it would

increase in value Two neighbors both used a driveway located on the boundary line between their two properties. Upon the death of one of the neighbors, would the heirs of the deceased have the right to use the driveway?

• no, this right is not transferable
• no, this is an easement in gross and would not be transferable
• yes, this is an appurtenant easement and is inheritable
• yes, but they would have to pay the other neighbor a reasonable sum for the loss correct answerC.

yes, this is an appurtenant easement and is inheritable 1 / 2

The paying of kickbacks by lenders is prohibited by:

• regulation Z
• real estate settlement procedures act (RESPA)
• equal credit opportunity act
• interstate land sales act correct answerB. real estate settlement procedures act (RESPA)

A loan with a balance of $21,000 prior to the June 1 payment was figured with interest at 11% annually and monthly principal and interest payments of $571.80. There was a 1% pre payment penalty. The owner paid the June 1 payment and then paid off the balance of the loan. What was the pre payment penalty?

A. $204

B. $206

C. $210

• $215 correct answerB. $206

$21,000 x 11% = $2,310 annual interest divided by 12 = $192.50 monthly interest. $571.80 principal and interest - interest of $192.50 = principal of $379.30. $21,000 loan - $379.30 = a loan balance of $20,620.70. $20,620.70 x 1% = a penalty of $206 A seller sold a house to a buyer allowing the buyer to take over the loan on a subject to basis. After 2 years, the buyer defaulted on the loan. Who would be liable to the lender for the note?

• seller only
• seller's mortgagee
• buyer only
• seller and buyer correct answerA. seller only
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