Rosa is trying to get approved for a loan so she can purchase a new home. What type of value will the lender use to determine whether or not to approve Rosa's loan?
Answer(s): C
When approving a loan, the lender relies on the appraised value, which is the value determined by a licensed appraiser.This ensures that the property is sufficient collateral for the loan.Other options:(A) Market value what a buyer is willing to pay, but lenders require a professional appraisal.(B) Insurable value amount insurance would cover, not relevant for loan approval.(D) Assessed value used by tax authorities for property taxes, not lending.
Virginia Real Estate Finance Principles Loan underwriting & appraisal roleFannie Mae Selling Guide (Collateral requirements)
Clarence owns three rental homes he doesn't have time to oversee himself. He decides to hire George to take care of his rental units in the hopes of maximizing the return on his investment. What role is George filling?
Answer(s): D
A property manager is hired by an owner to manage rental property, maintain operations, and maximize return on investment.Other options:(A) Sponsoring broker oversees real estate salespersons, not rentals.(B) Appraisal manager not a real estate role.(C) Broker's agent represents broker in brokerage activities, not property management.
Code of Virginia §54.1-2100 (definition includes property management as brokerage services)Virginia Real Estate Principles & Practices Property Management
All of the following are examples of legal descriptions of property EXCEPT:
Answer(s): B
Legal descriptions must be precise and unique so land can be located without confusion.Accepted forms:Metes and boundsRectangular (government) survey (e.g., "SW 1/4 of NW 1/4...")Lot and block (e.g., subdivision plats)A street address (Option B) is not a legal description--too general and can change.
Virginia Real Estate Principles & Practices Legal DescriptionsVirginia Exam Outline Land and Property Descriptions
Which of these is likely to be the lien with the highest priority?
Real estate tax liens (property taxes and special assessments) take highest priority over all other liens, regardless of recording date.Priority order:Property tax liensSpecial assessmentsMortgages (by recording date)Mechanic's liens (priority may vary but generally after taxes/mortgages)Other options:(A) Mortgage common lien but lower than tax lien.(C) Attachment lien granted by court, lower priority.(D) Mechanic's lien priority can date back to start of work, but still after tax liens.
Code of Virginia §58.1-3340 et seq. (Real estate tax liens)Virginia Real Estate Principles & Practices Liens and Priority
A deed in lieu of foreclosure is often referred to as a "friendly foreclosure" because:
A deed in lieu of foreclosure is when a borrower voluntarily conveys the property title back to the lender to avoid foreclosure.It is called a "friendly foreclosure" because it requires mutual consent between borrower and lender, avoiding the formal court-ordered process.Other options:(A) Wrong not limited to friends/family.(C) Wrong not related to "friends of the court."(D) Wrong buyer's relationship irrelevant.
Virginia Real Estate Principles & Practices Foreclosure Alternatives
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