In addition to evaluating borrower creditworthiness, to complete the loan approval process, the underwriter needs to evaluate the:
Answer(s): B
Loan underwriting evaluates two things:Borrower's creditworthiness (income, debt, credit score).The property's value and suitability (via appraisal, condition, and title review).The lender needs to ensure that the property provides sufficient collateral in case of default.Other options:(A) Tender unrelated.(C) Broker not evaluated.(D) Seller irrelevant to loan approval.
Fannie Mae Selling Guide Loan UnderwritingVirginia Real Estate Finance Principles Loan Process
Who regulates fair housing advertising?
The U.S. Department of Housing and Urban Development (HUD) regulates fair housing advertising under the Fair Housing Act (1968).HUD issues rules on wording, images, and equal housing opportunity statements in ads.Other agencies:(A) HMDA (Home Mortgage Disclosure Act) focuses on lending data, not advertising.(C) CRA (Community Reinvestment Act) ensures banks serve all communities fairly.(D) ECOA (Equal Credit Opportunity Act) prohibits discrimination in lending, not ads.
Fair Housing Act, 42 U.S.C. §3601 et seq.HUD Fair Housing Advertising GuidelinesVirginia Fair Housing Law (Title 36, Chapter 5.1)
What rights govern the use of flowing water, such as rivers or streams?
Answer(s): A
Riparian rights apply to landowners whose property borders flowing water such as rivers or streams. Owners have reasonable rights to use the water, provided it doesn't harm upstream/downstream users.Other options:(B) Percolating rights apply to underground water.(C) Appropriative rights water rights granted by permit (common in western states, not Virginia).(D) Littoral rights apply to non-flowing waters (lakes, oceans, seas).
Virginia Real Estate Principles & Practices Water Rights SectionCode of Virginia, Title 62.1 (Waters of the State, Ports and Harbors)
An opinion of title, a certificate of title, a Torrens certificate, and title insurance are all examples of:
Answer(s): C
Evidence of title refers to documents or assurances showing that the seller has good title to convey.Examples include:Opinion of title (by attorney)Certificate of titleTorrens certificateTitle insurance policyThese are all methods of proving ownership rights.Other options:(A) Cloud on title = defects/encumbrances.(B) Equitable title = buyer's right after signing a contract but before closing.(D) Chain of title = historical record of ownership.
Virginia Real Estate Principles & Practices Title EvidenceCode of Virginia §55.1 (Property and Conveyances)
The relationship between a property manager and the property owner is most comparable to that of a:
A property manager acts as an agent for the property owner.The manager owes fiduciary duties to the owner, similar to how a salesperson works under and owes duties to their broker.Other comparisons:(A) Tenant/landlord = contractual lease, not fiduciary.(B) Stockholder/board = ownership vs governance, not agency.(D) Cashier/store owner = employee/employer, not fiduciary agent.
Code of Virginia §54.1-2100 (definitions of brokerage relationships, property management included)Virginia Real Estate Board Regulations (agency and fiduciary duties)
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