Deck 2 Flashcards
(39 cards)
How long to file complaint with Unruh?
1 year of the alleged discrimination
How long to file complaint for Fair Housing enforcment?
2 years
how soon to deposit trust funds?
3 days
When to disclose agency relationships?
- The listing agent must provide the disclosure to the seller prior to securing the listing agreement.
- The selling agent must provide the disclosure to the seller “as soon as practicable” prior to presenting a
purchase offer. - The selling agent must provide the disclosure to the buyer “as soon as practicable” prior to the execution
of the buyer’s offer to purchase.
The Truth in Lending Act
The Truth in Lending Act requires a creditor to furnish certain disclosures to the consumer before making a contract for a loan. Allows the consumer the right to rescind. - 1968
Housing Financial Discrimination Act
Prohibits redlining
(Holden Act). At the time of the loan application, lenders must
notify all prospective borrowers of their rights under the Holden Act and its prohibitions against discriminatory practices by lenders.
Notice of Adverse Action
(Equal Credit Opportunity Act): A lender or creditor who denies an application
for credit must provide the applicant with a statement of reasons within 30 days after receiving
the completed loan application.
Exclusive-Authorization-and-Right-To-Sell (Seller)
Broker has the exclusive right to market the property for a specified period of time.
* If the property sells while the broker has the listing, the seller must pay the agreed upon
commission, regardless of who actually procured the buyer.
* All exclusive listing contracts must contain a definite termination date.
Liquidated Damages
Buyer agrees to pay the seller if the buyer breaches the contract. Both buyers and sellers must initial this section for it to apply.
Paragraph 28 - Joint Escrow Instructions to the Escrow Holder
Subparagraph B states the parties will deliver the agreement to the escrow within 3 business days unless specified otherwise.
* Subparagraph D provides that the buyer or seller will provide the escrow holder with a copy of any amendments to the agreement within 2 business days after the amendment is executed.
VA Loans
Available to eligible veterans and their spouses. A VA loan is guaranteed. The VA does not loan the
money directly (usually) and the guarantee provides added security for the lender.
A VA loan can be used to purchase, build and improve a home.
In most cases, no down payment is required. The VA guarantees both fixed-rate and adjustable rate loans.
Interest rates are negotiable between the lender and the borrower.
There is no monthly mortgage insurance premium to pay.
Any discount points charged can be paid by either the veteran or the seller.
The loan can be prepaid without a penalty.
VA loans are assumable - the original veteran borrower is still liable for the repayment of the loan unless the VA approves a release of liability (does not release the veteran’s liability to the lender).
A veteran must apply to the VA for a certificate of eligibility to determine the eligible status and to determine the amount of the loan the VA will guarantee.
The VA requires an appraisal of the property and then issues a certificate of reasonable value (CRV).
FHA-Insured Loans
The FHA, overseen by HUD, provides low down-payment loans (high loan-to-value ratio loans) to
qualified buyers.
FHA does not build homes or loan money directly. They insure loans made by approved lending institutions.
FHA loans can be either fixed-rate loans or one-year-adjustable loans.
The borrower must have cash for a down payment and closing costs.
The borrower is charged a percentage of the loan as a premium for the insurance.
The lender can charge points, and either the borrower or the seller (or both) can pay them.
mortgagor
The borrower
mortgagee
the lender
Truth in Lending and Regulation Z
The Truth in Lending Act is implemented by Regulation Z - requires lenders to disclose to buyers the true cost of obtaining credit, so that borrowers can compare the costs of various lenders Applies to all loans that are secured by a residence. It does not apply to commercial loans/agricultural loans over $25,000.
Real Estate Settlement Procedures Act (RESPA)
Attempts to standardize settlement practices and to ensure that both buyers and sellers understand the costs involved in closing the transaction.
Applies to residential real estate purchases that will be financed by first mortgage loans. RESPA prohibits lenders from paying kickbacks and unearned fees to parties who may have referred the borrower to the lender
California Department of Real Estate
The regulatory agency responsible for real estate licensing and regulation is the California Department of Real Estate, also known as the DRE. The main purpose of the DRE is to protect the public. The DRE achieves this purpose through the enactment and enforcement of laws relating to real estate and by establishing requirements for the real estate salespersons’ and brokers’ licenses.
The California Land Title Association
standard coverage
The American Land Title Association
extended coverage
Order of Deed and Trust Conveyance
- Deed of reconveyance – The deed of reconveyance is provided by the seller’s lender (trustee) giving the seller ownership of the property.
- Grant deed – The grant deed transfers title from the seller to the buyer.
- Deed of Trust – The deed of trust transfer’s title from the buyer to the buyer’s lender.
how many days to deliver closing disclosure?
3 business days prior to closing
how many days to deliver loan estimate
within 3 business days of loan application
straight note
interest only
who is trustor, trustee and beneficiary in trust deed?
trustor - borrower
trustee - 3rd party
beneficiary - lender
