Deck 11 Flashcards
On appraisals of older apartment buildings, a major problem in the cost method is:
the determination of accrued depreciation.
The land residual method of appraisal is used to determine the value of the:
land alone.
The word “residual” refers to that which is left after subtracting other values. In a land residual appraisal, the cost of the building is subtracted from the property value to determine the value of the raw land.
What must an appraiser do when they are hired to appraise a property owned by a corporation in which the appraiser owns a share?
Disclose their ownership interest in the property and accept the assignment.
Here, the choice of whether to retain the appraiser is left to the client.
Who pays the points on a CalVet Home Loan?
No one pays the points.
No points are charged on a CalVet loan. It is a land sales contract.
Under the Real Estate Law, a real estate salesperson is:
an employee of the broker.
This question requires us to accept a dichotomy unique to real estate. A salesperson is an employee and agent of the broker for the purposes of the Real Estate Law. However, they are generally classified as an independent contractor for tax purposes.
A fictitious business name statement expires:
five years from recordation.
A real property land sales contract does not need to show:
how a dispute is to be resolved if there is a disagreement.
A dispute resolution provision is good practice, though not required.
A walk-up refers to:
an apartment building with no elevator.
The federal Loan Estimate is to be delivered to a borrower:
within three business days of receipt of a consumer mortgage application.
As opposed to condominium ownership, cooperative ownership has the disadvantage that:
owners could lose their equity if the other cooperative owners fail to make their tax and loan payments.
A loan that allows the borrower to make monthly payments less than the interest accruing is referred to as a(n):
option adjustable rate mortgage (ARM).
The lowest closing costs other than the down payment are realized using a:
CalVET Home Loan.
There are no loan charges in this arrangement and thus the escrow charges are lower.
A bank loans Lauren $850,000. Part of the loan agreement calls for Lauren to keep $20,000 of the loan funds on deposit with the bank for the life of the loan. This is an example of:
compensating balance.
compensating balance – leaving enough money with the bank to offset potential foreclosure costs.
Unless fraud is involved, an action against a licensee by the Real Estate Commissioner needs
to be initiated within ________ of the occurrence of the alleged violation.
3 years
