Exam notes day 2 Flashcards
(257 cards)
1
Q
Installment note
A
Principal and interest, specific amounts and intervals
2
Q
Interest rate can increase or decrease
A
adjustable rate
3
Q
Balloon payment
A
partially amortized loan, entire balance due
4
Q
Vendor executes contract
A
equitable title to vendee
5
Q
Equitable title
A
use and possess, obtain legal title
6
Q
Vendor and vendee
A
beneficiary and trustor
7
Q
Insured loans
A
FHA, PMI
8
Q
A junior loan is not
A
permitted for a home
9
Q
VA Loans need
A
no down payment
10
Q
Cal-Vet Loans: Set up as
A
Land contract
11
Q
Department of Veterans Affairs
A
Vendor, protected by life/disability insurance
12
Q
CalHFA Loans
A
first time low income buyers, tax empt
13
Q
Cost of goods and services increasing over time
A
Inflation
14
Q
Secondary mortgage market
A
Not FHA
15
Q
Mortgage bankers (Mortgage companies)
A
Service loans, sell on secondary market
16
Q
Mortgage brokers
A
Not own money
17
Q
Insurance Companies
A
Work through mortgage companies, large loans
18
Q
Most common way of transfer
A
Grant deed
19
Q
Primary purpose of grant deed
A
convey title
20
Q
Recorded in county where
A
property is situated
21
Q
True about grant deed
A
Does not have to be recorded
22
Q
Constructive notice given by
A
Possession or recording
23
Q
Grant deed must be
A
delivered and accepted
24
Q
Deed executed when
A
signed by grantor
25
How to alienate
convey
26
Alienation opposite of
Acquisition
27
Single woman married
cloud on title
28
quiet title action
remove a cloud, perfect title
29
Et ux
and wife
30
Quitclaim deed
Conveys rights of grantor, no warranties
31
Sublease transfers possession not
ownership
32
Escrow authorized to
call for funding of loan
33
Escrow law found in
financial code
34
Parties use escrow to
make sure terms are are met
35
Seller delivers deed to
escrow
36
Recurring costs impound
account items
37
Two termite reports get
written instruction
38
credit seller
prepaid taxes
39
Debit buyer for
purchase price
40
Title insurance most concern
documents that appear within chain of title
41
Abstract of title
written summary of documents in chain of title
42
Preliminary title report shows
seller as trustor
43
Standard policy (CLTA)
protects against forgery and improper delivery (no survey)
44
Extended policy (ALTA)
Covers improvements on adjoining land
45
Type of policy that cover everything
None
46
Most buyers obtain
standard
47
For extra fee, extended policy covers
survey issues, water rights
48
Abstract of title addresses
marketability
49
Special processes purchase from government
receive patent
50
Owner acquires land by. natural causes
accretion
51
Government take property for public use
eminent domain
52
Two requirements of eminent domain
Necessary public use/just compensation
53
Owner sues city
Inverse condemnation
54
Owner dies with no will
Intestate succession
55
Acquire title by adverse possession
5 years pay taxes and possess
56
Transfer through court supervision in probate proceeding
commission set by court
57
In tax sale, buyer receives
tax deed
58
Tax aspects buyer withholds 10% of sale prices and send to IRS
FIRPTA
59
Document transfer tax is based on
consideration given
60
Real property taxes become a lien
Jan 1st before fiscal year
61
Fiscal tax year in California
July 1 to June 30
62
Ad valorem means
according to value
63
Property reassessed
when sold
64
IF property over assessed
Assessment appeals board
65
Second installment of property taxes
Feb 1 to april 10
66
Property sold to state with delinquent taxes
5 years to stay and redeem
67
Tax delinquent property not redeemed is deeded to the
county
68
Mello Roos assessment
not commercial strip mall, seller discloses
69
With federal income tax, the basis is
the cost
70
To arrive at adjusted cost basis
do not add mortgage payments
71
Deductions on personal residence
Mortgage interest, property taxes
72
On income property, capital expenditures
Added to cost basis and depreciated
73
Sale leaseback
deduct 100% of future rent paid
74
Title Vestings: Severalty:
individual
75
Four unities of joint tenancy
(T-Tip) Time, title, interest, possession
76
Single joint tenant cannot will because of
right of survivorship
77
Surviving joint tenant owns property
free of unsecured debt
78
Tenancy in common
can hold unequal interest, right of possession must be equal
79
Deed in name of husband and wife
Community property
80
Trust accounts used to
separate trust funds
81
Most important reason for trust fund:
legal action against broker
82
Must reconcile (trust fund account)
monthly
83
Unexplained overage (trust fund account)
Keep separate record
84
Broker deposits his own renter's check
commingling
85
Proper place for trust funds
escrows, trust account, owner of funds
86
Offeree can hold trust funds but you must have
written agreement between offeree
87
Deposit trust funds in
3 business days, hold check uncashed
88
If sales associate receives trust funds
deliver to broker immediately, follow instructions
89
CIvil Rights Act of 1968
No discrimination or bias
90
Right to bring suit
Discrimination and unlawful eviction
91
Complaints for violations of federal fair housing laws
files w/ HUD
92
Acceptable rental ad
no bicycles allowed
93
Direct buyer to nonintegrated neighborhood of his own ethnicity
Steering
94
Agent tells homeowner an ethnic group is moving in and values will decrease
blockingbusting
95
bank will not loan in a zip code because of ethnic composition
redlining
96
Americans w/ Disabilities Act
Mall, store, business office
97
The Unruh Act prohibits discrimination
by businesses
98
The rumford act
not selling business, dept of fair employment and housing within 60 days
99
Discrimination can result in violation of
federal, state, commissioner's regulations
100
Misleading advertising
Misleading map
101
Ad does not identify broker
blind ad
102
Exaggerate features or benefits
puffing
103
License number must be in first contract materials
evereything
104
Misuse of term realtor
revoke or suspend
105
Record keeping requirment
3 years
106
Keep contracts and paperwork dating from
close of escrow
107
WORM
Write once, ready many
108
Unlicensed assistant can
Set appts to meet broker, set termite inspections, show house but can't discuss relevance of documents
109
DRE
commisoner has authority to promulgate rules and regulations
110
Prosecution for illegal activites:
district attorney
111
Misrepresent a property to buyer
discipline, civil, criminal
112
When salesperson is terminated
broker gives license back to salesperson
113
Obtain license by fraud
Revoke within 90 days w/o hearing
114
Real estate license term
4 years
115
for broker license, two years experience or
4 year college degree
116
Continuing education for real estate
45 hrs, 18 in consumer protection
117
Licensee does not renew before expiration
Out of business, but 2 year grace period to avoid testing
118
Child support obligor
150 day temp license
119
Single transaction (Recovery account)
50,000
120
Lifetime limit (Recovery account)
250,000
121
Suspended license from recovery account payout
Pay only recovery account plus interest
122
General ethics
honesty and fairness
123
Authorized to manage property for public
Broker
124
Responsible for safety measures
Property management
125
Security deposits at end of lease
clean, repair, unpaid rent
126
Return or account for security deposits within
21 days
127
document used to evict
unlawful detainer
128
Maximum deposit for furnished apartment
3 months
129
maximum deposit for unfurnished aparment
2 months
130
Easton vs Strassburger
diligent visual inspections, disclose all defects
131
Civil Code 2079
Diligent visual inspection
132
TDS required (Transfer disclosure statement)
FSBO
133
Disclosures required
defects known and should be known
134
Not required to disclose
repairs
135
When can licensee fill out seller's portion?
Never
136
Amended TDS (Transfer disclosure statement)
Rescind contract, but not sue
137
Defective TDS (Transfer disclosure statement)
Sue within 2 years
138
Flood Hazard frequent when
2 times in 10 years
139
Lead based paint
give EPA pamphlet, disclose reports, 10 days to inspect
140
Alquist priolo act
Disclose earthquake fault lines
141
Alquist priolo act applies to
specific types of structures in known earthquake fault zones
142
fault zones
1/4 mile wide
143
Salesperson took illegal referral fees
Broker also liable if guilty knowledge
144
Licensee must notify DRE of any illegal activity
within 30 days
145
Buyer related to listing agent
must disclose to seller
146
Broker appoints manager for branch office
broker relived of direct supervision
147
HUD section 8 housing choice voucher program
Assists w/ affordable housing in private market
148
Independent contractor salesperson
broker does not pay social security and medicare
149
Employee and independent contractor salespersons
broker pays workers comp
150
Prepaid rental listing service (PRLS) license is issued for
2 years
151
Seller to paint over water spots on ceiling
Listing agents discloses roof leaks
152
Salesperson asked to lease house and doesnt know how
Asks broker's assistance
153
Busy market and house does not sell
Overpriced
154
Nine-month listing, broker license revoked
listing terminates
155
Broker dies, leaves business to daughter
seller sign new listing
156
DRE does not issue licenses to
partnerships
157
Licensee does not have to disclose
lives in same neighborhood
158
Agent liable for own actions
whether principal liable or not
159
Agent not liable for wrongful acts of principal
unless agent acquiesces (gives in)
160
Legal essentials
capable parties, mutual consent, lawful object, consideration
161
Legal essentials
capable parties
162
Valid contract
has legal essentials
163
Void contract
if missing even one essential, underage, illegal consideration
164
Consideration
Valuable good, sufficient
165
One party or obligation substituted for another
novation
166
Contingency
Nature, duration, method removed
167
Contracts that do not need to be in writing are
personal property listing or lease for one year or less
168
Party able to enter into contract
emancipated minor
169
Mutual consent in real estate contracts
Offer and acceptance
170
Cloud mutual consent
threats, duress
171
Voidable contract
Binding until rescinded, fraud, not illegal purpose, misrepresentation
172
Actual fraud
intent to deceive
173
Constructive fraud
negligence
174
If buyer loses ability to complete purchase
unenforceable
175
Must be in writing if not to be performed within one year
Statue of fraud
176
Effective date (Purchase contract)
final acceptance delivered to offeror
177
Buyer can sue seller (Purchase contract)
within 4 years
178
Signed by only one spouse (Purchase contract)
Unenforceable
179
"As is"
Seller not willing to make repairs / Includes observable conditions only
180
Seller backs out
Buyer sues for specific performance
181
On owner occupied, liquidated damages cannot generally exceed
3% of purchase price
182
Receive copy of signed purchase contract
at time of signing
183
Purchase contract contains
time is of the essence
184
Contingency removal clause
purchase contract
185
Counteroffer
rejection of the original offer
186
Multiple counteroffers
must be disclosed
187
Bilateral employment contract
listings
188
Commission clause must be in
10 point font in bold
189
Salesperson leaves broker
listing stays w/ broker
190
Listing signed by only one spouse
Enforceable
191
Exclusive listings
must have definite termination date
192
Examples of definite termination date
90 days from signing
193
Owner sells (Seller Preserve)
no commission owed
194
Exclusive right to sell (property sells)
pay commission
195
Multiple brokers (open listing)
Only procuring cause gets paid
196
Owner nets his proceeds (Net listing)
predetermined amount
197
Broker gets paid based on what happens after listing expires
Protection period clause
198
Authority for broker to get paid
In listing, must be in writing
199
False information from seller
Hold harmless clause
200
Leases
right for possession for paying rent
201
Sublease or assign
if lease doesn't prohibit it
202
Unwritten lease for more than a year
unenforceable
203
Lessee who didn't sign lease
implied contract
204
percentage lease
percentage of gross sales
205
maximum term for agricultural lease
51 years
206
Tenant pays fixed and variable expenses
net lease
207
If landlord does not maintain property
tenant released by constructive eviction
208
Agreement to terminate lease early
surrender
209
Tenant vacates early
abandonment
210
Tenant stays after lease expires
Estate at sufferance
211
Principal cancels before expires (commission)
could owe two commissions
212
If no written agreement (commission)
payment of commission permissible
213
no written extension of listing (commission)
quite possibly no commission
214
Purchase of time share in interest
rescind in 7 days
215
Advance fee contract, broker cannot
guarantee transaction
216
Submit materials to commissioner
no less than 10 days before publication
217
Broker can legally sell
Registered mobile homes
218
Listing expires, advertising and signs removed
within 48 years
219
Ad says no down payment if not true
illegal and deceptive
220
Broker cannot sell
brand new mobile homes
221
convert mobile home from personal property to real property
building permit, approved foundation, certificate of occupancy
222
Document used to convey mobile home when real property
grant deed
223
mobile home park is
two or more lots, human habitation
224
Average depth of standards closet
two feet
225
Bearing wall in home
any angle, intact during remodeling, stronger
226
Most destructive termite
subterranean termite
227
Structural pest control report given
within 10 working days to anyone
228
Structural pest control report
filed w/ structural pest control board
229
Cost to correct if no evidence of infestation
paid by buyer
230
Crawl space
low space under subfloor, access to plumbing and wiring
231
Topography a concern for developer
if it raises development costs
232
Horizontal parallel timbers that support load of ceiling or floors
joists
233
Highest construction member of frame house
Ridge board
234
Spreading at base of foundation
footing
235
Soil conditions
not deciduous
236
Roof slopes on all four sides
hip roof
237
A/c unit has energy efficiency ratio (EER)
More efficient
238
Sheet metal that protects building from water seeping into roof
Flashing
239
Inside of exterior wall same temperature as other partitions
insulation adequate
240
R-value in insulation
resistance to heat flow must be disclosed in new home sales
241
Turnkey project
ready for occupancy move right in
242
Construction drawings showing exterior view of building
elevation sheet
243
information booth at the ball
kiosk
244
Soil to fill in trenches and brace foundations
Backfill
245
Cracks in foundation
soils engineering report
246
Purpose of architect's plot plan
guide placement of construction
247
Footing, piers, subflooring
foundation plan
248
not a substandard building
old wiring
249
Ordinary repairs to broken equipment
corrective maintenance
250
commercial acre
Deduct for streets, curbs, sidewalks
251
Orientation
position of building on site
252
HVAC
heating, ventilation, air conditioning
253
Hazardous gases in occupied residence
not carbon dioxide
254
Percentage of consumers who search internet before calling realtor is
90%
255
Open house w/ big windows
contemporary
256
Radon gas
open the door
257
percentage of agricultural land in california
27%
