Colorado properties in the 100-year floodplain as mapped by FEMA are subject to:
Why Mandatory federal flood insurance purchase requirements when federally backed financing is used Is Correct
Answer B: Mandatory federal flood insurance purchase requirements when federally backed financing is used
Exam Tip: Environmental
Environmental questions test knowledge of hazards like asbestos, lead-based paint, radon, and mold. Know the disclosure requirements and when a professional inspection is required. CERCLA liability is strict, joint, and several.
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Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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