Mix Flashcards
1
Q
Which of the following is not a Ca starting point in the U.S. Government Survey System?
A
Baja Base line and Meridian
2
Q
A single person can avoid paying capital gains taxes on up to what amount of profit from the sale of a residence
A
$250,000
3
Q
What is required in California for a valid real estate contract?
A
A consideration and acceptance by both parties
4
Q
Under the department of real estate commissioners rule and regulations, which of the following would be required to have a written employment contract with a broker?
A
A real estate broker working for another real estate broker
5
Q
Which word best describes the effects of income taxes as your income increases
A
Progressive
6
Q
Which of the following is an example of a voluntary lien
A
Trust deed
7
Q
The seller must provide the buyer of a condominium with:
A
-the CCnR
-the by laws
-a Copy of the most recent financial statement
8
Q
What type of commission plan does a broker not charge a fee, but a commission based on a percentage of the selling price?
A
Straight commission plan
9
Q
What was the purpose of president Biden HUD-led task force, property appraisal and valuation equity? (PAVE)
A
Establish new appraisal standards
10
Q
A neighborhood in which a real estate agent “cultivates “ new clients by contacting its resident up to 12 times a year in order to update them on real estate activities and values
A
Geographical Form
11
Q
When an owner decides and try’s to sell his own property
A
FSBOs, For Sale by owner
12
Q
This type of newspaper advertisement is designed to advertise a specific property and enjoys high readership among those looking for low and medium priced housing
A
Classified ads
13
Q
A time-tested, step-by-step method used in writing ads; this formula gets the job done
A
AIDA-Attention, Interest, Desire, and Action
14
Q
Advertising of Real Estate credit terms is under this federal organization Jurisdiction
A
Consumer Finance Protection Bureau (CFPB)
15
Q
An informative analytical tool that logs in daily calls that specifically gives you a daily and historical review of how effectively your brokerage is advertising and includes important caller data
A
Traffic Sheet
16
Q
Type of advertising that is sent using the U.S. postal Service
A
Direct Mail
17
Q
Article 9
A
The regulations of the Real Estate commissioner also establishes advertising guidelines and restrictions
18
Q
A comparison of one property’s value to similar recently sold properties is called
A
Comparative market analysis
19
Q
FSBO is an abbreviation of
A
For sale by owner
20
Q
CMA stands for
A
Comparative Market Analysis
21
Q
The time-tested model used in writing ads to s the AIDA formula, which stands for
A
Attention, Interest, Desire, Action
22
Q
Brokers owe a duty of the highest care and confidentiality to their principal (clients) whose interest they promote even at the cost of some greater benefit to themselves
A
Fiduciary Relationship
23
Q
Listings that did not sell within the contract period
A
Expired listings
24
Q
Calls made to people you already know and which are usually more productive
A
Warm calls
25
If a landlord knows that there is a current bed bug infestation, he or she
Cannot show or rent vacant units
26
An agreement where the seller of a business agrees to not open a competing business for a period of time within a specific geographical area is referred to as:
A covenant not to compete
27
In california, before selling real property securities to the public, the broker must obtain an endorsement from the:
Governor
California department of real estate
State franchise board
28
Which of the following are operating expenses the DO vary
Utility cost
Property management
Cleaning and Maintenance
29
The illegal practice of misappropriation and using the client’s money is called:
Conversion
30
The economic principle that states, “ if two properties are equally desirable, the less expensive one is likeliest to sell first “ is the:
Principle of substitution
31
When there are more unsold properties available for purchase in a specific neighborhood than buyers, an appraiser and a real estate agent would describe this as a
Buyers Market
32
What is generally the main purpose for ordering an appraisal
To determine market value
33
What is generally the main purpose for ordering an appraisal
To determine market value
34
An___________ is usually ordered to determine the true average property value by analyzing both general data of purchase.
Appraisal
35
General Data
Economic and neighborhood trends
36
Specific Data
Lot size, shape of house zoning for the subject property
37
A self- employed appraiser who is hired to appraise properties for a fee may be referred to as ________ ________ because he or she is usually paid a flat fee for the services he or she performs.
Fee appraisers
38
Appraisers are certified and licensed by the state of California. Under federal law , a state-licensed appraiser, as set out in the ______ ______ ______ _______ ________ ______ ( USPAP) guidelines, may work on federally-Related, federally-backed, or federally-Insured mortgage loans or government owned properties.
39
The four elements of value are:
Utility, Scarcity, Demand, and Tranferability
40
Principle of substitution
Given the choice between two identical homes to purchase, a buyer is likely to buy the more affordable one.
41
The depth of value of a property site may be described by way of a value principle known as the 4-3-2-1 rule. The site’s value is broken down as follows: 40% _____ 30%____, 20%______ and 10%______.
40% front quarter of the land site that is adjacent to the street
30% second quarter
20% third quarter
10% back portion of the lot
42
The rebuilding of a property structure estimate is ________ ________ and ________ _______
Reproduction Cost
Replacement Cost
43
Damage to a property or physical deterioration is classified as ______(fixable) or_______( when the cost to repair or correct is not financially within reason) curable physical deterioration is also known as __________ _________
Curable
Incurable
Deferred maintenance
44
The _______ _________ ( or cap rate) is used to convert the net operating income (NOI) into a meaningful present market value
NOI
———=value
CAP Rate
Capitalization Rate
45
Who has unity of “time, title, interest, and posesión?”
Joint tenants
46
Who has unity of “time, title, interest, and posesión?”
Joint tenants
47
What is it called when two or more parties hold undivided interest?
Tenancy in common
48
What is it called when two or more parties hold undivided interest?
Tenancy in common
49
What may arise after a periodic or term tenancy ends upon mutual acceptance?
Tenancy at will
50
Ownership in severalty is equivalent to_______
Sole ownership
51
Title to a property that is sold with a condition that the land will not be used for selling alcohol create a (n) .
Fee simple difeasable
52
What term may also be defined as an estate of inheritance?
Freehold Estate
53
An agreement is signed between two parties for the use and possession of real property for 60 days which creates a (n).
Term tenancy
54
Which of the following gives the owner the most absolute rights and unlimited duration?
Fee simple absolute
55
A possessory interest with limited duration or time is a
•leasehold
•Less-than freehold estate
56
Property usually refers to ______
Rights or interest in something owned
57
Escrow
Is the place where money documents are held by a neutral third party, up until the transaction is about to close
58
An agreement made by two spouses for the sale of community property is ________.
Valid
59
What best defines community property as it relates to ownership
All property purchased by a spouse or domestic partner that is not separate property.
60
What is it called when two or more parties hold undivided interest?
Tenancy in common
61
Who has unity of “time, title, interests, and possession?
Joint tenants
62
What may arise after a periodic or term tenancy ends upon mutual acceptance?
Tenancy at will
63
Ownership in severalty is equivalent to
Sole Ownership
64
An agreement is signed between two parties for the use and possession of real property for 60 days which creates
Term tenancy
65
What term may also be defined as an estate of inheritance?
Freehold estate
66
Title to a property that is sold with a condition that the land will not be used for selling alcohol creates
Fee simple defeasable
67
Which debt-to-income ratio will a lender prefer the most for a mortgage borrower applicant?
25% front-end-debt ratio
68
What is the best FICO risk score for a borrower applicants?
775
69
What is the very first section on 1003 mortgage loan application form?
Type of terms of mortgage requested
70
Seller-financed mortgage disclosure laws go into effect when there are more than how many buyer payments to the seller after the down payment that is originally made at the time of closing?
4
71
A fee that a borrower may pay for a slightly lower fixed rate is called a:
Discount Point
72
Which loan is likeliest to have a balloon payment?
Partially- amortized loans
73
What is a type of demand deposit account?
Business Checking
Personal Checking
74
Which of the following gives the owner the most absolute rights and unlimited duration?
Fee simple absolute
75
Which funded mortgage loan is the least likely to be sold to Fannie Mae or Freddie Mac in the secondary Markets?
Private mortgage
76
Which statements about mortgages insured by FHA is most true?
The borrower usually must be an
owner-occupant
77
What is another name for a lenders loan commitment?
Pre-approval letter
78
The first set of ________ ________ is usually based on the signed countersigned purchase contract. These details usually include _______, closing dates, _______ _______, earnest money, ________ ________, any existing lenders to be paid off, and various contingency dates.
Escrow instructions
Purchase Price
Commission Fees
Deposit Receipts
79
All independent California escrow companies must be licensed by the _______ ________ _______ _______.
Department of business oversight
80
Are the property tax payments likely to be listed as a recurring cost in a closing statement for escrow?
Yes
81
What is the name of the document that an escrow officer will send out to a lender about to be paid off?
Beneficiary statement
82
For disputes over funds held by escrow between a buyer and seller, the legal action that is taken by an escrow company is called?
Interpleader
83
A buyers side of the settlement statement will probably contain?
Mortgage loan origination fee
84
The best rate fee for most types of documentary transfer tax fee is approximately?
$1.10 per every $1000 of sales price
85
What are the MARIA acronyms
Method of attachment
Adaptability
Relationship of the parties
Intention
Agreement between the parties
86
Accession
The process of manufactured or natural improvement or addition to property
87
Acceleration Clause
Provision in a real estate financing instrument allowing the lender to declare the fall debt due immediately and f the borrower breaches any of the provisions of the loan agreement, also referred to as a call provision.
88
Abstract of Title
Summation of all recorded transfers, conveyances, legal proceedings, and any other facts relied on an evidence of title to show ownership continuity and signify any possible loss to tittle.
89
Abstract of Judgement
Document that summarizes the result of a legal action, which can be filed in any county where the judgment debtor owns a property.
90
Acquisition Cost
Amount of money required to acquire title to a property; it includes the purchase price as well as the closing costs, legal fees, escrow, service charges, title insurance, recording fees.
91
Acre
- 160 square rods
- 4,840 square yards
- 43,560 square feet
- A tract of about 208.71 feet square
92
ADA
American with Disabilities Act
93
The value of smaller and older properties will likely increase when surrounded by larger and newer properties under the economic theory of__________.
Principal of theory
94
The real estate valuation theory states that a property of much higher value than a surrounding inferior ( or smaller or older) properties will likely be negatively impacted is the ______________.
Principal of regression
95
Where is usually the best source of recent sales for CMA reports?
MLS
96
Value of use
Is more of an “eye of the beholder “ situation when when the property owner thinks their beloved home is worth much more than the market value partly due to their fond memories
97
Value in exchange (market value )
Is the objective value for a property as seen in the eyes of an average person who has no favorable bias towards the home
98
A CMA (comparative Market Analysis)
Report will likely include sales or listing comparable within the past six months of the date of the completed CMA report
99
Appraisers are likely to use one, two or three approaches to determining the value of land, homes, or commercial properties. The three value approaches are:
1. Cost approach
2. Income approach
3. Sales comparable approach
100
Principal of regression
Inferior and smaller properties that surround a property that is overbuilt for the neighborhood may negatively affect the larger homes value ( e.g., a large, modern home built in a neighborhood of older, small two- bedroom,
101
Principal of progression
The value of smaller and /or older properties will probably increase surrounded by larger and newer properties.
102
Ad Valorem
Latin phrase meaning: According to Value. Referring to taxes assessed on the value of property.
103
Adverse Possession
A way of acquiring title to real property belonging to someone else by occupying it without permission, and fulfilling other statory requirements.
104
Affidavit
Acknowledged Sworn Statement in writing made before a notary public ( or any other official authorized to administer an oath)
105
After-Acquired Title
If a tittle is acquired by a grantor, only after a conveyance to a grantee, the deed to the grantee becomes legally competent ( usually 18 years old)
106
Agency Apparent
When the impression given to a third party is that someone who hasn’t been approved to represent another is that person’s agent, or the impression that an agent has been approved to perform acts which usually beyond the capacity of his authority
107
Agency, Dual
An agent relationship where the agent represents two principals in their dealings with each other.
108
Agency, exclusive
Listing Agreements that employs a broker as sole agent for a seller of real property for which the broker is entitled to compensation if the property is sold via any other broker, but not if a sale negotiated by the owner without the services of an agent
109
Which metropolitan region in California had the highest median list prices as of 2017?
San Francisco
110
How many active real estate brokers were in California as of 2020?
93,795
111
How many active real estate salespersons ( agents) were in California as of 2020?
206,308
112
According to the national association of realtors, home many homes sold across the nation in October 2020?
6.85 million
113
Over the past several decades, what was the average ratio of active sales person to brokers in California ?
1.5-1
114
Per federal poverty Guidelines established by the u.s. department of health and human services, which income level was considered the national poverty living in one household in 2020?
$26,200
115
Which household annual income amount would qualify as the top 5% for all families through out the country in recent years?
$130,000
116
Nationwide, what percentage does the equity in a primary residence represent for a household overall net worth?
68.62%
117
How many times did the federal reserve raise its FED funds rate during 2004-2006, just a year before the official start of 2007 credit crisis
17
118
Personal property (also referred as “personalty or chattel”) may be described as
Tangible or intangible
119
Land
Is legally defined as the real estate, minus the building improvements and equipment that do not occur in a natural way.
120
Bundle of rights
Include five different rights: possess, control, enjoy, exclude, and dispose.
121
There are two types of systems that apply to water rights:
Riparian and appropriative
122
Littoral rights
Are rights of owners of properties that are adjacent to large, navigable oceans and lakes and non-flowing smaller backyard ponds.
123
Method of attachment and whether the item is personal or real property under MARIA acronym:
Method of attachment
Adaptability
Relationship of the parties
Intention
Agreement between the parties
124
Public land survey system (PLSS)
Is the main legal definition used for most types of U.S. properties
125
What does PalSS stand for
Public land survey system
126
What is the Public Land survey system (PLSS) for?
Is the main legal definition system used for most types of properties.
127
The rectangular survey system is a
Type of land survey that is approximately 24 miles square. It is bound by base lines that run east and west, and meridians that run north and south.
128
Township
Is six miles north or south from the base line, which is the designated parallel.
129
Metes
Are property’s boundary lines that are determined by measuring its straight lines or a distance between two points.
130
Bounds
Are descriptions based on landmarks , or what types of things, buildings, or locations are adjacent to the property site such as a wall , a street, or a railroad.
131
Another name for personal property is
Personalty or chattel
132
Personal property that is tangible is
Touchable
133
An example of intangible property is
Corporate stock
134
The right to encumber is known as the right to
Borrow money against
135
Real property may be defined as
Land
136
Personal property may be
Movable
Touchable
Intangible
137
What is in the bundle of rights
1. Right to possess
2. Right to control
3. Right to exclude
4. Right to enjoy
5. Right to Dispose
138
What is the acronym MARIA used for?
Improvements made to land to help determine if it’s considered permanent or temporary attachment.
*permanent=real property
*Temporary =personal property
139
The riparian doctrine omits about which type property issue?
Water rights
140
The California Gold Rush began peaking in
1848 and 1849
141
California was admitted to the Union as the 31st state on
September 30 1850
142
Which non-native American explorer reached land in California first?
Juan Rodriguez Carrillo
143
Who was the first person to discover large amounts of gold that began the gold rush in the region that would later become California?
James Marshall
144
How many ounces of gold were supposedly excavated in the California region during the peak of Gold Rush Years?
12 million ounces
145
What percentage of Americans live in regions that are designated as urbanized areas?
80%
146
Littoral Rights
Are rights of owners of properties that are adjacent to large, navigable oceans and lakes and non-flowing smaller backyard ponds
147
An example of intangible property is
Corporate stock
148
The right to encumber is known as the right to
Borrow money against
149
Personal property may be
Movable
Touchable
Intangible
150
The most important test under the acronym
MARIA for determining whether an attachment is a fixture is
An agreement among the parties
151
The doctrine of emblements allows a farmer whose tenancy has been terminated due to no fault of his own to:
Re-enter the land to harvest his next crop
152
153
Freehold estates
This is an estate that later may be freely sold, gifted, or granted to designated heirs by way of wills, family trusts, family limited partnerships, or other types of family planning or inheritance structures
154
What is another name for freehold estate?
Estate of inheritance
155
Fee simple qualified( Defeasible)
These properties are owned with a few limitations or restrictions
156
Life estates
It is still a freehold estate interest in the property that ends at the death of what individual prior to the property reverting back to the original owner, or it may pass onward to another person who was originally identified in the life estate paperwork
157
Life estate holders may still pay the property taxes ? True or false?
True, and any other fees required to maintain or manage the property during the contract term
158
Estate In remainder
This other person might be a spouse, a child, or a grandchild, for example, who will receive the full interest in the property at the time of the grantor’s passing.
159
Estate in reversion
Should the same property be designated to be returned by the heir back to the original life estate owner
160
Reserving a life estate
Is a property transfer scenario where the owner sells her home, but specifically retains the full right to live in it until her death, at which time it is transferred to the buyer.
161
Life estate Deed
It is created between two or more parties when the owner of the home formally transfers his or her ownership interests and rights in a clearly defined property to be used by another person during the life of one designated person
162
Remainderman
Is the party with future beneficial or profitable interests who will later end up with full legal ownership after the life tenant dies.
163
Estate (ownership) in severalty
When just one person owns a life or fee estate alone
