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RE PRactice Flashcards

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1
Q

1 point =

A

1%

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2
Q

RESPA - Real Estate Settlement Procedures Act

A

is to make borrowers aware of costs and charged. IT should be given at the time of application and no later than 3 days after

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3
Q

Amortized loan

A

Monthly payments include both principal and interest (Most common form of mortgage)

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4
Q

Usury

A

Illegal intrest

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5
Q

2 years after a RE licensee expires

A

all rights lapse. Must re-take exam

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6
Q

HUD-1 Settlement Statement form

A

used to itemize services and fees charged to the borrower by the lender

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7
Q

Truth in Lending, otherwise known as Regulation Z

A

is intended to do away with deceptive financing tactics, especially those involving hidden costs

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8
Q

Warehousing

A

refers to the process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market

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9
Q

“Trustor”

A

is another name for the borrower

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10
Q

“trustee” (in a deed of trust)

A

neutral third party who holds naked legal title, the right to foreclose at the instructions of the beneficiary for non-payment of a promissory note

The beneficiary is the lender in a Deed of Trust. Even though it’s the lender who requires the insurance to protect his/her position, it’s the borrower who pays for it

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11
Q

(ECOA) - Equal Credit Opportunity Act

A

prohibits a broad spectrum of discriminatory lending practices, including the granting or denial of credit or the costs associated with borrowing based on race, gender, marital status, source of income

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12
Q

novation

A

substitute a new contract for an old one

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13
Q

Federal National Mortgage Association (FNMA)

A

was established by the National Housing Act specifically to start the secondary mortgage market, thus attracting more investors and funds to help support home ownership.

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14
Q

Restrictive covenants

A

are most commonly associated with subdivisions and community management associations and are intended to maintain consistency within the neighborhood. While viewed as a benefit by most, they do limit the owner’s use of the property and are binding on future owners.

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15
Q

“Escheat”

A

means to revert

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16
Q

Recovery Fund

A

is an account established as a last resort for a consumer who has obtained a final civil judgment or criminal restitution order against a real estate licensee based on fraud or certain other grounds.

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17
Q

1/8 square mile = how many acres?

A

10 acres

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18
Q

Cost Approach to value

A

used most often when a building has unusual properties or doesn’t generate income (ex Library) Because direct income and expense info isn’t available “passive” aspects, such as depreciation, become important

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19
Q

when appraising commercial property

A

the most important thing is the income generated by the property

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20
Q

external obsolescence

A

caused by events outside of the owner’s control, such as a zoning change that makes the building’s current use non-conforming.

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21
Q

A metes and bounds legal description

A

Using natural features and known boundaries of adjacent properties, metes and bounds is used when a lot and block survey isn’t available as well as for defining irregular properties.

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22
Q

One square mile is how many acres?

A

640 acres

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23
Q

A section

A

is one square mile

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24
Q

Easement by prescription

A

5 years of continuous use

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25
What is the main duty of a county assessor?
To determine the amount of tax to be paid by property owners
26
CC&R refers to
covenants, codes, and restrictions.
27
Maximum amount allowed as security deposit
2 months' rent
28
A recorded subdivision plat is used in the
Lot and block is the "final" survey of property being readied for development and identifies each individual parcel in a subdivision.
29
An appraiser is usually paid
There are two fundamental reasons for the "time and effort" rather than valuation method.
30
the gross rent multiplier
Property value divided by the monthly rent
31
An apartment building has a value of $800,000 when capitalized at 6%. What would be the value if the building were capitalized at 8%?
When capitalized at 8%, the building would have a value of $600,000. $800,000 X6% =$480,000 divided by 8% =$600,000
32
A general warranty deed
type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer)
33
quitclaim deed
contains no title covenant and thus, offers the grantee no warranty as to the status of the property title
34
"Police power"
refers not just to criminal law enforcement, but all powers of federal, state and local governments to enact and enforce laws for everything from parking to where, what and for what purposes people may construct buildings.
35
Platform-frame construction
is the type of construction most generally used in home building
36
"grantee"
is the person buying the property
37
" mill"
A mill is one one-thousandth of a dollar ($.001)
38
Spot zoning
refers to the practice of reclassifying one piece of property in a manner inconsistent with the surrounding properties
39
"Specific agency"
means that a licensee may act on a principal's behalf only in limited ways for a limited time. For example, an agent can show a potential buyer a client's property, but he cannot make the decision to accept an offer.
40
Who administers license law in California?
The commission is the chief executive officer of the California Bureau of Real Estate and, as such, is responsible for administering the rules and regulations governing real estate practices. It should be noted that while the commission does not pass laws, per se (that's the responsibility of the legislature), his or her rulings have the effect of law.
41
How is the commissioner selected?
He or she is appointed by the governor
42
Who sits on the Real Estate Advisory Board?
combination of real estate professionals and public members.
43
Grantor =
Owner
44
The responsibilities of a subagent:
are specific, not implied. Moreover, they must always be disclosed and written permission obtained from both buyer and seller.
45
"Due care"
licensee's obligation to ensure that all steps in the transaction process are followed with professionalism and accuracy
46
HUD, the department of Housing and Urban Development
is the governing body when it comes to real estate.
47
"Nonconforming use," also known as
"grandfathering,"
48
promissory note
By signing a promissory note, the borrower is acknowledging the debt and agreeing to pay it back as agreed. Thus it serves as the lender's proof of the loan and its terms.
49
An appurtenant easement
The permanent right to use another's land for the benefit of a neighboring parcel
50
blockbusting
The illegal practice of inducing homeowners to sell their properties by making representations about the prospective entry of persons of a certain race/national origin into the neighborhood is also called
51
A quitclaim deed is one in which
NO guarantees are offered about past claims to the property, with the exception of those held by the grantor.
52
Subrogation is often used by
title insurers to acquire rights to sue from the injured party (to recover claims they've paid).
53
judgment
a court decree ordering money to be paid
54
subordinate agreement
changes the priority of the liens to be paid under certain conditions, and granting clauses, which have to do with transferring property ownership.
55
tenancy by the entirety
when one spouse dies, the surviving spouse then owns the property.
56
conveyance
Conveyance describes any act of transferring
57
reversion
Try to remember reversion is in regard to the remnant reverting to the grantor, or reverter.
58
covenant of quiet enjoyment
Covenant of quiet enjoyment basically means that the grantee has the right to enjoy his property without being challenged.
59
covenant of further assurance
To remember this, keep in mind that this covenant ASSURES the grantee that he has what he needs to make the title good.
60
covenant against encumbrances
This covenant is easy to remember, since the title is the same as what it protects against - encumbrances.
61
1 Discount point =
1% of the loan balance
62
Real Estate Transfer Disclosure Statement
is a two-page statement that includes the following sections: Part A - Identifies the items contained in the home and whether or not they are operational. Part B - Describes any significant defects or malfunctions in the home. Part C - Identifies miscellaneous items such as known environmental hazards, easements or encroachments, improvements or alterations to the property, zoning or neighborhood concerns.
63
A desist and refrain order
is similar to a restraining order in that it immediately halts the action or actions in question. However, the "desist" order may be issued directly by the commissioner whereas a restraining order typically goes through the courts.
64
Megan's Law
law that requires that the buyer be given notice that a database is available for the prospective buyer to screen a specific area for registered sex offenders.
65
limited partnership
One of the attractions of a limited partnership in a real estate investment is that it allows the person to participate in real estate development deals without risking more than his or her initial investment.
66
A planned unit development (PUD)
It permited the development of a large tract of land as a complete neighborhood unit, having a range of dwelling types, the necessary local shopping facilities and off-street parking areas, parks, playgrounds, school sites, and other community facilities.
67
a lis pendens
Lis pendens is Latin for "litigation pending," which will help you to remember that while a lis pendens isn't a lien, it is notice that litigation (a possible lien) is pending
68
Special assessments
Special assessments are usually additional property taxes levied for things such as road and sewer repairs. A special assessment lien is filed when those taxes go unpaid and does take priority (is paid first) over all other liens, including mortgages in the event of foreclosure.
69
Who regulates what animals can be kept can be kept on property
It's common for zoning ordinances to regulate the kinds of animals that may be kept
70
"Judgments"
refer specifically to court actions, such as suing to enforce a lien and divide property after a bankruptcy.
71
A blanket mortgage
is a single loan for a number of properties. The release clause allows the builder to make additional or accelerated payments and thus release or partially release some of those properties as security on the loan.
72
A construction loan
is generally a higher risk than a residential loan. construction loans are higher risk on two counts. First, they carry no guarantees, as is the case with VA and FHA loans. Second, a house under construction is riskier than a completed one since any number of events, including material shortages, delivery issues, unexpected financial difficulties for the builder or owner and many others, can impact its completion.
73
Simple intrest
Interest used in repaying a mortgage
74
Due on sale
By declaring the entire balance due on the transfer of property, lenders control who owns the note because homeowners can't sell or transfer the mortgage without first selling the property.
75
Metes and bounds descriptions
always begin and end at the same point
76
An owner of a 12-unit apartment building lived in one of the apartments. The owner refused to rent to a person because of his national origin. Based on Federal Fair Housing Laws, does the person have a valid complaint?
Yes, because it was a 12-unit apartment building Although some provisions are made regarding owner-occupied buildngs of 4 units or less, a 12-unit apartment building is subject to all the rules and regulations of the Federal Fair Housing laws.
77
blind ad
Any ad that does not identify the advertiser as a broker is known as a blind ad
78
The standard title insurance policy in California is the
California Land Title Association(CLTA) policy. The standard policy in California is the CLTA policy. It may be issued to a lender only, a buyer only or jointly to lender and buyer (called a joint-protection standard coverage policy). The buyer and seller negotiate who pays for the CLTA policy.
79
How long must they keep records of these sales to foreigners?
Brokers and buyers must keep the documentation regarding these foreign sales for five years.
80
Who administered and controls the "Subdivision Map Act?"
Local government officials
81
When can a Estate at Will be terminated?
This estate can be terminated by either party at any time, with proper notice - which in California is a 30-day notice.
82
How does subdividing differ from real estate development?
A developer constructs improvements to the land; a subdivider separates it into sections.
83
Covenant =
Promise

Real Estate (2 decks)

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