Questions Flashcards
(234 cards)
1
Q
Legally and technically, property is defined as
A
Rights or interests which a person has in the thing that is owned
2
Q
How is real property different from personal property
A
Real property is immovable
3
Q
Real property is
A
land, fixtures, appurtenances
4
Q
a bearing wall in a single family home is
A
real property
5
Q
Emblements is not considered
A
real property
6
Q
Personal property can be
A
alienated, hypothecated, and become real property
7
Q
Barring agreement
A
the buyer because he is paying for it
8
Q
Run w/ the land
A
easement appurtenant, covenants, stock in mutal water company
9
Q
Appurtenances are items that run w/ the land and are incidental to the land, what is not an appurtenance
A
fixtures
10
Q
What describes an encumbrance?
A
Anything which affects or limits to real property
11
Q
A non money encumbrance would be
A
easement
12
Q
Land that is subject to an easement is said to be
A
encumbered
13
Q
The deed received contained an adequate description of land, but no reference to the easement; the buyer:
A
Has the same right to the easement as the seller did
14
Q
An appurtenant easement always passes when
A
property is sold
15
Q
Parcel is sold to a new owner, who fences off he parcel and padlocks the gate . the family would be advised to:
A
file a quiet title suit against the new owner to confirm their rights
16
Q
An easement on real property would be terminated if the holder of the dominant tenement recorded a
A
quitclaim deed
17
Q
An interest in real property may be acquired by either prescription or by adverse possession. the interest resulting from prescription is
A
the right to use another’s land
18
Q
If garage was build a few feet over property line, what remedy can be done
A
sue for trespass
19
Q
A money encumbrance would be
A
judgment
20
Q
Which of the following is the best definition of an estate
A
the degree, quantity, nature, and extent of interest which a person has in real property
21
Q
Fee simple estate
A
a present possessory interest, carries the max bundle of rights, owner has the right of possession now and indefinitely into the futre
22
Q
Indication of a fee simple estate
A
the most interest an owner can hold in the land
23
Q
Not included in the definition of fee simple estate
A
the property is always free of encumbrances
24
Q
No alcohol property
A
fee simple defeasible estate
25
a life estate is best described as
an estate that is based of the duration of someone's life
26
A property that will revert back to someone
an estate in reversion
27
a property is transferred to someone when they die
estate in remainder
28
owner leases her home then dies, the lease was
valid for as long as janet lived
29
Best indicates a less than freehold estate
a leasing or renting interest
30
An estate for years is a less than freehold estate and
it is a leasehold interest created for a particular period of time w/ a definite termination date
31
Lease for 6 months
estate for years
32
Rental from sept 1 to jan 1st
estate for years
33
governmental land use planning and zoning are important of
police power
34
Primary justification for zoning ordinances is to
promote public health, safety, morals and general welfare
35
Davis has a property that is zoned R-3, and city changes zoning to R-1, what happens
it is legal, non-comforming and the current use is grandfathered in
36
assets reverts to the state
escheat
37
Planning commission does not
regulate zoning ordinances
38
Master plan is concerned w/
seismic safety issues, location of streets, futuristic planning
39
burning trash
local air district
40
general purpose of local building codes
to provide minimum requirements and standards for the protection of the public safety, health, welfare and general well being
41
Building code conflicts w/ the uniform building code, what would take priority
whichever code imposes the higher standards of safety
42
Law define a subdivision
5 lots or more
43
who usually sets deed restrictions on a subdivision development
the developer
44
Private restrictions on real property can be written as a condition or a covenant, most correct concerning restriction
violation of a condition can result in penalties that are more severe and can result in loss of title
45
The covenant of quiet enjoyment relates most directly to
possession of real property
46
a subdivider must give a copy of the commissioner's final public report to which
any person, at any time, upon request
47
commissioner's final public report does not include
assurances that the developer is not charging an excessive price for the property
48
Represents the property sequence for building a residential subdivision
acquisition, approval, development
49
When the real estate commissioner wishes to rescind approval of a new subdivision, he would
issue a desist and refrain order
50
a subdivider receives a negative declaration, this means
it means that building subdivision at this location will not harm the environment
51
an undivided interest, in common, in a parcel of real property, together with a separate interest in airspace in a particular unit
Condominium
52
Include in selling a condominium
CCRs, bylaws, copy of the most recent financial statement
53
True of an infill developer
he is looking for an underutilized lot in highly populated urban area and seeking to maximize the use of that lot
54
Smart growth refers to
development that is ecology friendly
55
Brownfield's economic development initiative
HUD program to distribute funds to public agencies and purpose is to assist in redeveloping a contaminated industrial and commercial properties
56
EPA
superfund
57
waters found beneath the surface of land
percolating waters
58
right to pump out and use underground water
overlying rights
59
water adjacent to land is moving watercourse, like a river, the owner is
a riparian owner
60
body of water adjacent to land is not flowing and has shoreline, owner is
littoral owner
61
taking of water from a public stream for private use is
appropriation
62
Fiduciary duties are
utmost care, integrity honesty and loyalty
63
A broker acting in a fiduciary capacity... exchanging real property is said to be of
an agency
64
Real estate licensee generally acts
as a fiduciary
65
Defines the principal
it is the personal who has appointed an agent to represent him or her in dealings w/ third parties
66
Describes a client in a transaction
the principal
67
Identifies a customer in a transaction
the party owed simply honestly and fairness
68
Identifies the agent in a transaction
broker who has entered into a contract w/ the principal
69
When dealing w/ the public, a broker may not
remain silent concerning material facts about a property known only to herself
70
Not legally for a licensee to do
keep the client's secret that the roof leaks
71
Describes pratice of a single agency
the single agency broker is client oriented
72
describes dual agency
dual agency is legal, but only w/ the knowledge and consent of both buyer and seller
73
when an agent represents both buyer and seller in a transaction, what is not permitted
disclosing to a buyer that the seller will sell for less than the asking price
74
"power of attorney"
it is a form of agency
75
true regarding attorney in fact
the attorney in fact must record the power of attorney
76
best way to create an agency relationship
by written agreement
77
owner signs a listing agreement w/ broker that they are specifically representing
a special agent
78
Agency relationship not be established by
a voluntary offer by the agent
79
Agency cant be created by a
subornation
80
Consideration and the issue of agency
consideration is not required to establish an agency relationship
81
Seller's agent
seller's agent acts as agent for the seller only
82
A seller's agent owes to both the buyer and seller in a transaction except for
fiduciary duties
83
a seller's agent is obligated to reveal all of the following information to a buyer except when
confidential information
84
a listing agent is
the seller's agent
85
When an agent took a listing and promised something but failed it is
actual fraud
86
seller's agent relived of the obligation to present an offer to the seller
when the offer is patently frivolous or he is acting on express instructions of the principal
87
a seller's agent must do all of the following but
present all legitimate offers, even agent close of escrow
88
A buyer's agent owes fiduciary obligations to which of the following parties in a transaction
the buyer only
89
Concerning buyer agency
a buyer's agency has no fiducciary duty to the seller or the seller's agent, and it not liable for their actions
90
when a seller's agent receives an offer from a buyer and accepts a deposit on the offer that has not been authorized by the seller, which is true
he has become a buyer's agent for the one act of receiving the deposit
91
when a broker acts exclusively as a buyer's agent she can
present offers to the seller and seller's agent
92
what shall a listing broker disclose to a seller how he or she is performing as agent in the transaction
as soon as practicable
93
must be disclosed by a licensee
buyer in the transaction spouse, acting as principal in this transaction w/ the intention of making financial gain, acting as principal as well as special agent
94
a relationship may be terminated by
completion of the task
95
legitimate method of terminating an agency relationship
mutual agreement of the parties to terminate
96
if a principal no longer desires the broker to act for him during the period of an exclusive right to sell listing
can revoke the agency created by the listing
97
Automatically terminate an agency
broker died, listing expired
98
Could also terminate agency relationship
house burned down
99
Terminate agency relationship
seller files for bankruptcy
100
agency relationship may be terminated by
estoppel
101
When appraising real property, the appraiser attempts to estimate value, the value arrived at is
based on an analysis of facts as given date
102
Value is
a relationship between the desirous persons, ability of one commodity to command, present worth of future benefits
103
Considered facts is not
value
104
not taken into consideration in value
cost of material and labor
105
represents market value
the most probable price a property will bring in an open market
106
closest to market value
market price
107
4 essential elements of value are
utility, scarcity, demand and transferability
108
improved value of land
current market value of the land and the improvements
109
4 phases of the business cylce
prosperity, recession, depression, and expansion
110
Neighborhood life cycle is comprised of
development, stability, decline and revitalization
111
Ethical for an appraiser to do
appraise a property in which the appraiser has an interest, provided she first disclose the interest
112
in arriving at an estimate of value, an appraiser would be interested in the date
the price was agreed upon
113
real estate appraisal is limited to what period of time
the given date
114
an appraiser who does not use generally accepted methods in order to influence a FDIC insured lender may be guilty of
a felony
115
when appraising a single family residence, an appraiser will not consider
the assessed value
116
what type of appraisal license is required to appraise a strip mall
certified general license
117
a narrative appraisal report is the most extensive type of appraisal report available, but what item of information is generally not included in this type of report
the type of financing readily available in the community
118
in a narrative appraisal report, where would the client find the type of value being estimated
the statement of purpose
119
defines a fee appraiser
an appraiser who is self employed and charges a fee
120
an appraiser is analyzing a parcel of vacant land to estimate its value. what is needed first
the highest and best use of the land
121
Property must be valued at it's highest and best use. if a parcel of land has a building on it that is not contributing to it's highest and best use, appraiser should
deduct the demolition cost from the estimate of value
122
Definition of highest and best use, you will find the phrase
greatest net return
123
the primary purpose of which an appraiser would perform a site analysis is to determine
highest and best use
124
When the highest and best use of a property is expected to change, the property current use is called
the interim use
125
objectives of an appraisal
support sales price, make a loan, start an improvement project
126
After an appraiser accumulates various value indications for a property, what is next
reconcile the data
127
why does real estate have value
maximum utilization of available resources
128
no prudent person would pay more for a parcel of real property than the price of a reasonably close alternative
substitution
129
When identical or highly similar properties are offered for sale, consumer demand will normally focus on the property offered at the lower price
substitution
130
When real property increases in value b/c of an increase in population, this is classified as
an unearned increment
131
An increase in value of real property over time is appropriately called
appreciation
132
Placing two or more contiguous units under common ownership for the purpose of increasing the value per unit is known as
plottage
133
Appraisals of a single family dwelling are usually based on
sales prices of comparable homes
134
in the market data approach to value, make sure
sales are recent, similar to the subject property, located near to the subject property
135
the basis of the market data approach to value is found in
the principle of substitution
136
sales prices adjustments are made b/c
no two properties are similar concerning everything
137
if a comparable property has a feature that is not present in the subject property, the value of that feature will be
subtracted from the sale price of the comparable
138
the hardest and yet the most important part of the market data method of appraising is
adjusting the correct amount for the differences between the comparable properties and the subject property
139
most readily adaptable for use by licensees
the market data (comparison) approach
140
appraisal assignments are answered w/ market data approach:
single family residency, vacant land, rental schedules
141
effectiveness of the market data approach is limited by which of the following circumstances
economic conditions that rapidly change, in an inactive market
142
if an appraiser is appraising a special property like city hall, she will use
the cost approach
143
best represents the correct sequence to perform the cost approach
estimate the cost of the house new, subtract deprecation, and add the value of the land
144
where should the value estimated from the cost approach be in relation to market value
it should be higher, representing the upper limits of value
145
Comparing "replacement cost" w/ reproduction cost, best identifies
the present cost to replace the building w/ another building having the same utility
146
when comparing the term "replacement cost." w/ "reproduction cost."
exact replica
147
An appraiser is appraising a single family home that was built in 1910
reproduction
148
survey method, unit in place method, square food method, cubic food method, connected w/
the cost approach
149
usefulness of the cost approach would be most limited in which of the following circumstances
appraising an old structure w/ many functional deficiencies
150
Usefulness of the cost approach would be most limited in which of the following circumstances
appraising an old structure w/ many deficiencies
151
not important in appraisal of a single family home
original cost of the construction
152
building on an empty lot, debating whether to build a 3000 square foot house, if he goes smaller then
more cost per square foot than the larger house
153
Capitalization is a process used to
convert income into value
154
Capitalization (income) approach
present worth of future benefits
155
in arriving at an effective gross income figure, an appraiser of rental property makes a deduction for
vacancy
156
item would an appraiser use to arrive at a net income for capitalization purpose
Management expenses
157
In the capitalization method of appraising the most difficult step is
select a capitalization rate
158
"loss in value from any cause."
depreciation
159
causes of depreciation include
physical deterioration, functional obsolescence, economic obsolescence
160
obsolescence is best defined as which
impairment of desirability and usefulness
161
not contribute to obsolescence
wear and tear from use
162
not functional obsolescence
house backs up to the freeway
163
two houses build the same w/ different appraisals
functional obsolescence was left uncorrected in one of the properties
164
economic obsolescence
a house located in close proximity to high tension wires, situated on a busy street, zoning changes have caused a loss in value
165
economic (external)obsolescence is not affected by
an outdated kitchen
166
type of depreciation that is most difficult to cure is
economic (external) obsolescence
167
the time period during which a building earns sufficient income to justify its continued operations is a definition of
economic life
168
due to quality of construction and maintenance, a 15 yr old house can appear to be only 6 years old, this demonstrates
effective age
169
The gross rent multiplier is used by dividing
sales price by gross monthly rental
170
the truth in lending law
disclose credit terms to consumers in a meaningful way
171
to implement the truth in lending act, ___ regulation requires furnish truth in lending disclosures to the consumer
creditor
172
an exemption from coverage under regulation Z is extended primarily for all of the following types of loans except
residential
173
Under the federal truth in lending law, the consumer has the right to rescind under
when the loan is secured by a lien against the consumer's existing principal dwelling
174
under the federal truth in lending law, two of the most critical facts that must be disclosed to buyers or borrowers are
finance charge and annual percentage rate
175
The effective interest rate is
the rate actually paid by the borrower for the use of the money, the nominal interest rate is the rate specified in the note
176
if a loan advertisement contains any triggering terms, like the down payment or the amount of any payment, or the finance charge then the ad must also contain
terms of repayment, whether the interest rate can be increased, the APR
177
The real estate settlement procedures act was established for what purpose
to ensure that borrowers, buyers, and sellers receive accurate closing cost information
178
RESPA loans
federally related loans for the purchase or refinance of 1-4 owners occupied residential units
179
RESPA, time frame under which a loan estimate must be provided to a borrower
within three business days of receipt of completed application
180
Under RESPA, the most lender can charge for preparation of teh closing disclosure
nothing
181
RESPA requires that a borrower receive information regarding closing costs, best describes how points are applied in the financial services industry
it is loan origination fees and discounts to adjust investor yields
182
a charge imposed on specific real property by which the property is made collateral for a loan is called
lien
183
a lien is created by recording
a trust deed or mortgage
184
which of the following is a lien
an attachment
185
when a seller carries back a second trust deed, this creates
a specific lien
186
when a judgment has been created by court action, and it covers all properties of the debtor in the county where it is recorded, it is known as
an involuntary general lien
187
what is the best description of a property tax lien
an involuntary specific lien
188
which of the following is an example of a voluntary lien
a purchase money trust deed
189
Carpenter installed hardwood floors in a new house, and when the invoice was not paid for his work, filed a mechanic's lien, the priority of his claim is
the date construction on the new house was begun
190
if a homeowner remodeled his home and did all the work himself, how is it possible he could find a mechanic's lien recorded against his house
he failed to pay the suppliers of the materials
191
time frame of a contractor filing a mechanic's lien as it pertains to a notice of completion
if a notice of completion is recorded, the contractor has 60 days to file, and if it not recorded, the contractor has 90 days to file
192
A negotiable instrument
a mortgage securing a promissory note
193
a promissory note is
evidence of the debt
194
regarding a trust deed, the trustor
is the borrower
195
documents a trustor signs
note and trust deed
196
party who loans the money on real property and secures that loan by means of a trust deed is
the beneficiary
197
the power to sell a property in the event of a default under the terms of a trust deed is given by
trustor to the trustee
198
describes a trustee
a third party w/ fiduciary duties to the beneficiary
199
What services does a trustee provide
it records a notice of default upon instruction from the lender, publishes a date of sale, and conducts the trustee's sale when necessary, it issues a reconveyance deed when the debt is paid and the trust deed is terminated
200
when must a trustee sign and record a reconveyance deed
within 21 calendar days of receiving a request for full reconveyance
201
from the time a notice of default is recorded, approx how much time does it take to get to the trustee's sale
four months
202
What are the rules of reinstatement of a trust deed loan after the notice of default has been recorded
the loan can be reinstated up until 5 days before the sale
203
when a trustee's sale has taken place, what kind of deed will the winning bidder receive
a trustee's deed
204
a clause in a trust deed stating that the rights of the beneficiary shall be secondary to a subsequent trust deed is
a subordination clause
205
lenders disburse the last payment when the
period to file a lien has expired
206
Who are the parties in a mortgage contract
mortgagor and mortgagee
207
Why would such a lender sue in court rather than go through a trustee's sale
the lender can obtain a deficiency judgment against the borrower in a judicial foreclousre, but not through a trustee's sale
208
is a trustee's sale final
yes, the trustor has no recourse
209
an installment note is nearest to
a note that calls for the payment of both principal and interest in specific amounts and at specified intervals
210
A fully amortized loan is nearest to
a loan where the debt is liquidated by the end of the term
211
the amount of each payment applied to a principal balance will
increase while the interest payment decrease
212
when the interest rate on a real estate loan can be increased or decreased depending on money market conditions, this is
an adjustable rate mortgage
213
when comparing a straight note w/ an installment note, the straight note
will have no principal payments during the term of the loan except on the last payment
214
a partially amortized loan is best described
it requires a balloon payment
215
balloon payment
the required payment of the entire balance due
216
a land contract is a real property conditional installment sales contract set up between a buyer and a seller, what happens when a vendor (seller) executes the contract
the vendor conveys equitable title to the buyer (vendee)
217
best defines equitable title in a land contract
the right to use and possess the property and to obtain legal title when all conditions of the contract are met
218
the relationship between vendor and vendee is similar to which of the following
beneficiary and trustor
219
if the vendee defaults on a land contact, what are the remedies available to the vendor
a quiet title action in court, ask for a quitclaim deed from the vendee
220
a mortgage loan is generally insured by
FHA or PMI
221
FHA (federal housing admin) was created in 1934 primarily to provide
insurance for home loans made by approved lenders
222
what types of payments are allowed on an FHA loan
monthly only
223
Not permitted when using an FHA loan to purchase a home
a junior loan
224
w/ an FHA loan, what is permissible
a gift down payment from a family member
225
loan with no down payment
VA loan
226
when a home is financed under the state of California vet farm and home purchase plan, the following is used
a real property purchase contract
227
Vendor in a Cal-Vet loan
the department of veterans affair
228
which of the following loans require a life/disability insurance policy for the buyer
cal-vet
229
Special California loan program is designed to help first time low income buyers
CalHFA
230
CalHFA loan made through private lenders, loans are funded
by the sale of tax exempt gov bonds
231
Inflation most nearly means which
the price of most goods and services is increasing over time
232
a difference between mortgage bankers and mortgage brokers
mortgage brokers do not usually loan their own money
233
30,000,000 loan
life insurance companies
234
