Broker Study Questions Flashcards
(93 cards)
An exception in a deed is the
withholding of rights in the property from the grantee. An exception, such as retaining mineral rights, would transfer ownership of the property to the grantee, but retain the mineral rights for the grantor. The granting clause demonstrates the intent to transfer the property.
A standard policy of title insurance insure against:
Forgery ; A standard policy covers Recorded matters, Forgery and Capacity, but never any unrecorded matters.
An interest in real property may be acquired by either prescription or by adverse possession. The interest resulting from prescription is:
the right to use another’s land. Prescription (easement by prescription) only conveys the right to use another’s land.
Appraisers speak of “the highest and best use.”
A starting point for an appraisal and Greatest net return are related to this expression. The principle of highest and best use is based on the reasonable use of real property at the time of the appraisal, which is most likely to produce the greatest net return to the land and/or the building over a given period of time.
Unlike a joint tenancy, the tenancy in common requires only one unity, which is the unity of
possession
A wife recorded a declaration of homestead on the community property without the husband’s signature. Which of the following exemptions would the community receive?
$100,000 The law permits the wife to declare a homestead exemption on 1) her separate property 2) the husband’s separate property and 3) the community property - all without the signature or consent of her husband. The “head of the household” exemption is $100,000; for disabled or persons 65 or over, the exemption is $175,000; and for all others $75,000. [Code of Civil Procedure 704]
When title to real property, which is encumbered by a deed of trust, is transferred as the result of a sale, it is always necessary to:
have the grantor deliver a deed.
The difference between the way an appraiser looks at depreciation and the way an accountant looks at depreciation is
an accountant is interested in book depreciation and an appraiser is interested in actual depreciation.
A receipt for a Final Public Report must be kept by the subdivider for
3 years.
Which of the following would affect the owner’s ordinary income tax liability of an owner-occupied residence?
Uninsured loss resulting from collapse of a fence caused by high winds.This is not income-producing property; therefore, depreciation (a) and expenses (b) & (d) cannot be deducted on a tax return. Deductions for a principal residence include property taxes, mortgage interest, premiums for PMI, and points paid on the purchase of the home. Choice (c) is correct because the tax code does allow a person to claim tax deductions for household damage caused by thefts, vandalism, fires, floods, hurricanes and others kinds of casualties. There are some restrictions. Relief is available only for uninsured home losses. They must be reduced by any settlements received from the home owner’s or renter’s insurance. Nor is there any write-off for the first $100 of each theft or casualty loss. The major limitation is that total home losses generally are allowable only to the extent they exceed 10% of adjusted gross income.
Interim loan =
Construction Loan
A Real Estate Syndicate usuallly takes the form of
a limited partnership.
Privity would most likely exist in:
Contractional relationships
The written instrument used to create land restrictions for the benefit of lot owners in a new subdivision is:
declaration of restrictions.
As relating to real estate, a patent is:
a sovereign grant.
The Federal National Mortgage Association was created under Title III of the National Housing Act for the purpose of:
buying Title II loans to keep the market sound.
Edna is a farmer and needs to raise additional working capital and wishes to encumber her growing crops. If the lending institution is agreeable to this, Edna would be asked to sign a:
financing statement.
Another name for a chattel real is
lease.
A father needed money to send his son to college. He borrowed enough money from the bank to pay off his existing loan and have enough for his son’s college. Later, he sold his home subject to the first trust deed and took a second trust deed as part of the purchase price. In the event of default on both trust deeds, which of the following is true?
The bank could obtain a deficiency judgment against the father.
Recording a deed gives:
public notice.
In order to meet the SAFE Act license requirements in California through the Department of Real Estate (DRE), individuals must first:
be issued a California real estate license.
The dictate that a sign should not be placed on a property without the owners consent is found in
NAR Professional Code of Ethics.
How is a private restriction enforced?
Injunction
Speculative value would be approximately the same as:
market value.
