1. The subject of an appraisal has three bedrooms. One of the comparable properties has two bedrooms only. If the adjustment for the third bedroom is 21,000, the adjustment would be to

1. increase in the subject selling price by 21,000
2. decrease in the subject selling price by 21,000
3. increase in the comparable selling price by 21,000
4. decrease in the comparable selling price by 21,000

2. In a real estate transaction, the person who is conveying title to a property to another person is best described as

1. grantor
2. title holder
3. grantee
4. conveyor

3. The process of using expected future rental income to perform a valuation of a property is known as

1. compounding
2. amortization
3. discounting
4. forecasting

4. A purchase money mortgage loan would most likely be used to

1. refinance a mortgage
2. purchase an existing property
3. purchase the materials to renovate a property
4. pay for the services of a conveyancing solicitor

5. A price level adjustable mortgage

1. allows for the sharing of interest rate risk between the borrower and the lender
2. protects the borrower from changes in the value of the property
3. allows for changes in the monthly repayments of the borrower
4. protects the lender from mortgage default