1
Q
Williamson Act was created in 1965 to benefit:
A
farmland owners by providing them with lower property taxes
2
Q
Williamson act created what year
A
1965 help farmers
3
Q
A broker has an advertisement that states: “If you reference this advertisement and you buy or sell a property with me, I will give you a $1,000 gift card.” This is:
A
allowable, as long as it’s open to everyone who buys and sells with the broker
4
Q
hud booklet need to be delivered within how many days settlement and cost
A
3 days
5
Q
The Transfer Disclosure Statement states that a broker can:
A
visually inspect and point out pertinent information about the property
6
Q
What is the statutory maximum amount that may be paid from the Consumer Recovery Account to help with claims against a licensee for judgements?
A
250 k
7
Q
Sam is selling a timeshare at Deer Run. He mailed an advertising pamphlet to 100,000 residents offering a chance to win an 80 inch flat screen television. Sam failed to disclose that it is required to attend a Deer Run sales presentation to have a chance at winning the prize. All new owners became prize winners. Which of the following statements is correct?
A
The attendance of a sales presentation must be disclosed when offering a prize or gift
8
Q
Fault zones that are located near earthquake fault lines in certain California areas must be disclosed to prospective property buyers. These zones are typically:
A
1/4 a mile
9
Q
What would be the correct way for a broker to properly run their business and charge the right amount for “desk fees” ?
A
Divide the operating expenses (salaries, rent, insurance etc.) by the number of salespeople
10
Q
When is a broker not required to keep trust records?
A
always has to maintain record
11
Q
Alquist-Priolo Special Studies Act
A
earthquake fault lines
12
Q
In regards to trust accounts, the Commissioner’s Regulation 2834 states that withdrawals from a trust account may only be made by signature of one or more of the following:
A
- a licensed salesperson who has written authorization from
the brokerthe broker who opened and maintains the trust account
an unlicensed employee of the broker covered by a fidelity bond at least equal to the maximum amount of trust funds to which the employee has access at any time.
13
Q
If a real estate licensee is due to renew their license and they have a past due amount on a court order to pay child support, which of the following could happen?
A
A temporary license is issued and the past due amount needs to be paid within 150 days
14
Q
you may act as an agent for the principal in the sale of some mobile homes
A
As a licensee, you sell a mobile home which is over 8 feet wide and over 40 feet in length
15
Q
Claudia is an owner of a management company that manages the affairs of sports stars and public figures. She advertises and sells real property for her clients. Who would prosecute Claudia if she violates any real estate laws?
A
DA
16
Q
A broker holds a client’s funds in an account that is set up in the name of:
A
the broker, as trustee
17
Q
An affirmation
A
formal declaration (not an oath), and expects the declarer to be honest and truthful
18
Q
affidavit
A
a written statement confirmed by oath or affirmation, for use as evidence in court.
19
Q
acknowledgment
A
.
acceptance of the truth or existence of something.
20
Q
Verification
A
the process of establishing the truth, accuracy, or validity of something.
21
Q
What would happen if a real estate licensee misrepresented a property to a principal?
A
criminal, civil, disciplinary action by the real estate commissioner
22
Q
can broker receive interest from trust fund account
A
no
23
Q
Under the subdivision law which is enforced by the DRE, all of the following could be defined as blanket encumbrances except:
A
answer = property tax on real property
other choices:
trust deeds
mechanics lien
mortgage on real property
Answer Feedback: Real property tax is a specific lien, not a general lien placed on a particular property, whereas a blanket encumbrance is a general lien on several properties. In a subdivision, the other answer options could be placed on several parcels of land.
24
Q
deed of trust
A
3rd independent person that holds deed as a trustee for the borrower and lender
25
non riparian owner
When it is said that a property does not have riparian rights (non-riparian) this typically means that they do not have exclusive access to the water's edge and/or in some localities use of the land beneath the water. This is very common in neighborhoods that do not have a lot of waterfront access
26
straw poll
A straw poll or straw vote is an ad hoc or unofficial vote. It is used to show the popular opinion on a certain matter, and can be used to help politicians know the majority opinion and help them decide what to say in order to gain votes.
27
Eminent domain
is the power of the United States government, states, and municipalities to take private property for public use, following the payment of just compensation.
28
easiest easement to terminate for non-use?
easement by prescription
29
easement by prescription
Easement by prescription refers to an easement created by the open, notorious, uninterrupted, hostile, and adverse use of another's land for a period set by statute.
expires after 5 years if not used
30
easement in gross
Easement in gross agreements are unique because they are valid only so long as the property owner or easement holder lives.
An easement in gross is an easement that has no benefited parcel of land. Instead, there is only a parcel that it burdened by the easement and it's usually a person or a party that holds the benefit of the easement
31
Easement by Condemnation
. Taking. private property for public use through the. government's power of eminent domain.
32
servient tenement
is a parcel of land that is subject to an easement. the ones giving the easement estate.
33
leasehold estate can be considered
real property
34
lis pendens
is a formal notice of a pending lawsuit and would be in effect from the time it’s filed, until the lawsuit is over or a judgment is given.
35
Alienated
transfer of personal property
36
indictment
formal charge or accusation of a serious crime.
| "an indictment for conspiracy"
37
injunction
an authoritative warning or order.
38
a writ of execution
a judicial order that a judgment be enforced.
39
Planning, zoning, and government land use are all examples of:
police power
40
Adverse possession
Adverse possession, sometimes colloquially described as "squatter's rights", is a legal principle under which a person who does not have legal title to a piece of property — usually land — acquires legal ownership based on continuous possession or occupation of the property without the permission of its legal owner
41
What would a title company be most concerned with when deciding on whether to write a title policy for real property?
chain of tittle
The most important documents for a title company to search that will assist them to decide on whether they will or will not write a policy for a property is the chain of title.
42
infill development
Build new affordable housing on vacant lots
43
How is a gross rent multiplier determined?
Sales price divided by gross monthly rental
44
When using the market data approach to compare properties, it is very likely that you will have to make adjustments by:
adjusting the comparables , up or down, to match the characteristics of the subject property
45
When you use the capitalization approach on an income producing property, if the property tax goes down and all else remains the same, the property value will
Increase more than the amount of the annual tax decrease
46
narrative
the one that is most comprehensive and complete is the
47
economic rent
The rent that is received for comparable space on the open market
48
What is the best description of the marginal tax rate per the IRS?
The tax rate is the amount of tax paid on an additional dollar of income
49
Escheat
transfers the real property of a person who has died without heirs to the Crown or state. It serves to ensure that property is not left in "limbo" without recognized ownership.
individual cannot acquire property by the escheat process.
50
succession
is the process of settling a deceased person's estate and distributing the property to those who inherit after the debts are paid.
51
Williamson Act
preserve agricultural land in California
52
Which type of bonds are typically used to finance street improvements, gutters, and sidewalks and must be disclosed by the seller of a 1-4 dwelling unit?
Mello-Roos
53
n which year did the U.S. Supreme Court prohibit racial discrimination in dealings with the sale or purchase of real property?
1968
54
In which of the following documents is there a clause that gives the broker the authority to receive a deposit from a prospective buyer ?
listing agreement
55
The laws of agency will be found in the:
civil code
56
If a real estate broker violates an antidiscrimination law which prohibits several types of discrimination, a court of law may do all of the following, except:
revoke or suspend the broker’s license
57
Trust funds received by a broker should be placed into a neutral escrow depository, given to the principal, or placed into the broker’s trust account within how many days of receiving it?
3 bus day
58
After the expiration of a real estate license, a licensee will be given a grace period in which the license can be renewed by the agent without taking the real estate examination again. What is that grace period?
2 years
59
A seller is signing a listing agreement and deletes (removes/strikes out) the following verbiage, “Agency is hereby authorized to accept on my behalf a deposit toward the purchase price in any amount.” If the real estate agent finds a buyer, what will occur next?
If the agent accepts a deposit, they hold it as an agent of the buyer until the offer is accepted by the seller (they do not hold it as an agent of the seller)
60
Although a real estate agent is employed by the broker as an independent contractor, the broker should still provide the agent with:
worker’s compensation coverage
61
Before applying for a real estate license, an applicant must pass Real Estate Principles, Real Estate Practice, and which other real estate course/s?
Any one additional qualified elective course
62
The lead based paint disclosure is concerned with small children ingesting paint chips and applies to sales and rentals of 1-4 dwelling units built prior to:
1978
63
Subrogation
It means that an insurer who has settled a claim may then “step into the shoes” of the insured and try to recover what it has paid from anyone who has contributed towards, or caused, the loss.
64
rescision
the revocation, cancellation, or repeal of a law, order, or agreement.
65
When an existing contract is replaced with a completely new contract, it is considered a/an: substitution, with release of obligation
novation
66
A contractor’s license is not needed when construction work is being done and is valued at less than:
less 500
67
At a brokerage office, the real estate licenses of the licensees:
must be kept at the main office of the employing broker
68
Which of the following is best described as “of indefinite duration”?
An estate of inheritance
”Of indefinite duration” is the primary characteristic of fee simple estate, also known as an estate of inheritance.
69
What is the name of a contract between the seller of real property and a licensed real estate agent, in which the seller agrees to pay a commission to the licensee if they produce a “ready, willing and able” buyer for the real property and the licensee complies and does all the due diligence procuring a buyer?
a bilateral executory contract
70
What is the best description of a balloon payment?
the entire balance is due
71
Miranda took a home improvement loan out for her property that was fully amortized. The loan provides for equal monthly payments. What will happen to the amount credited to principal?
The contribution towards the principal will increase and interest payment will decrease
72
A FHA loan is different from a conventional loan in all the following ways, except:
Conventional loans always permit a deficiency judgment, FHA loans do not.
Deficiency judgments are not allowed for purchase money encumbrances regardless if they are for conventional or FHA loans
73
How would a balloon loan be described?
A loan that is partially amortized
74
Of the following, which is true when talking about a hard money second deed of trust?
always secured by real estate and given to a 3rd party to obtain a cash loan
75
A seller wishes to sell a piece of real property using a conditional sales contract and carry back the mortgage as a first trust deed. What is the benefit of conducting the sale in this manner rather than using a grant deed?
The seller retains legal ownership up until the buyer makes the final payment to satisfy the loan
76
what is demise
death or to convey an estate by will or lease
77
respa real estate settlement procedure act should be deliver to borrower
at or before the closing date
78
basis is
cost of the property plus improvements
79
unilateral contract is
agreement in which an offeror promises to pay after the occurrence of a specified act.
the offeror is the only party with a contractual obligation
80
in am mechanics lean how much notice do you have to give
no later than 20 days notice after the construction began
81
unlawful detainer action is the landlord
to evict a delinquent tenant by court action only
82
in newspaper what abbreviation is allowed
agt and bro are okay
83
tax year is
July 1 to through June 30th
84
in a land contract the equitable title is held by the
vendee
85
subdivided land laws applies to
5 or more parcel up 160 acre
require public report
applies to a common interest, and undivided interest of subdivisions
86
covenant is a
promise
promise to engage in or refrain from a specified action
87
to create a tenancy in common you need
possession
88
what is car
a California trade association representing realtors
89
Secured creditor
creditor who has a lien against one or more pieces of the debtor's property
90
Examples of Non-financial encumberance
easements and private restrictions
91
mortgagor
A borrower in a mortgage loan transaction or owner.
92
mortgagee
lender
93
3 Parties to a Deed Trust
1. Grantor or Trustor - Borrower 2. Trustee - holds title 3. Beneficiary - Lender
94
What is the difference between a mortgage & deed of trust?
Concerns the procedures for foreclosing on the two types of liens.Definition
95
All other liens outside of mortgage and deeds of trust are considered involuntary liens?
true
96
6 Types of Involuntary Liens
```
Construction
Judgement
Attachment
Property Tax
Special Assessment
IRS
```
97
The _______________ is the individual who benefits from the existence of an easement.
dominant tenant
98
In a legal sales contract, the seller is often referred to as the:
vendor
99
A person holding title to real property in severalty would most likely have:
sole ownership
100
Copies of all listings, deposit receipts, cancelled checks, and trust records must be retained by a licensed real estate broker for:
3 years
101
rafters support the
roof
102
Parallel wooden members used to support floor and ceiling loads are called:
joist
103
We call the instrument used to remove the lien of a trust deed from record a:
Deed of reconveyance
104
anchor bolts
Bolts that fasten the sill plate of a wood-frame house to the house’s foundation, required in California since 1931 for all new construction as an earthquake safety measure.
105
A real estate agent informs her broker that she wants to terminate
her employment with that brokerage and requests that the broker
return her license. The broker should:
return the license to the real estate agent and notify the Commissioner in writing immediately
106
A broker who helps the government sell their property is referred to
as:
a land locator
107
If a salesperson leaves a brokerage to join another one, the new
broker must advise the BRE in Sacramento of this action within how
many days of the new employment?
5 days
108
Properties (1-4 unit dwellings) that were built before 1978 require a
lead based paint disclosure and are referred to as:
target housing
109
what year do houses need a discourse for lead base paint
before 1978
110
Upon passing the state exam, how much time does the applicant
have in which to mail the application for the license?
1 year
111
How are members of the National Association of Real Estate Brokers
referred to?
realtist
112
mandatory agency disclosures was passed in what year
1988
113
A broker signed an Exclusive Authorization Right to Sell listing with an
owner. The broker has earned a commission when:
both buyer and seller have signed the purchase contract and the
buyer has been noti!ed of acceptance
114
Under real estate law, the relationship between the broker and
salesperson is that of:
Employer to employee
115
When is a real estate agent obligated by law and the state regulations
to communicate any o"ers to a principal?
only if it is in writing
116
An easement and a license di"er in that a license:
can be revoked or canceled
117
bill of sale
transfer of goods
118
warehouse normally rented by
square foot
119
subordination clause
is language in a contract that establishes that one of your debts is a higher priority than your other debts.
120
A licensed real estate agent can legally represent a principal in the
transaction of:
any registered mobile home
121
How quickly must a real estate licensee deliver a mortgage loan
disclosure statement to the borrower?
when it is signed by the borrower
122
can brokers service a lion by a purchase money deed of trust
yes
| just Have authorization in writing from the holder of the note
123
What does “company dollar” refer to?
Income of an office after all commissions are subtracted
not expenses
124
The Alquist-Priolo Special Study Zone earthquake disclosure
| requirement applies to what type of structure?
A speci!c type of structure in known earthquake fault zones
125
A real estate agent had their license suspended because a judgment
was reached against them and money was paid out of the “recovery
account” to the plainti". What must be done in order to reinstate
their license?
Pay the recovery account, plus interest
126
Who is responsible for disclosing a Mello-Roos tax?
the seller
127
The total positive balances of all the bene!ciaries in a broker’s trust
fund account must always equal the account’s:
balance
128
The Residential Earthquake Safety Disclosure must be given to a
buyer involving wood framed structures if the home is constructed in
what year or earlier?
1960
129
Per real estate law, a real estate salesperson is considered:
an employee of the broker
130
When a homeowner decides to lease out their residential property,
how can the lessor determine the amount that can be legally charged
for the security deposit?
If the rental unit is furnished or not
131
township
36 square miles
132
1 section is how many square mile
1 square mile
133
how many acres in square mile
640
134
how many square feet in one acre
43560
135
Metes and bounds is a method used to
legally describe land,
| not measure it.
136
What would a lender consider the most important factor when
| deciding whether to fund a home loan purchase?
Degree of risk
137
How is the Federal Housing Administration di"erent from other
lending institutions?
FHA insures loans, it doesn’t make loans
138
A trust deed, under California law:
encumbers the real property that is designated in the deed of
trust
139
holder in due course
You purchase a negotiable note and you are unaware of any defects
with the note. You would be known as the following:
140
If a seller wants to sell their real property and carry the loan, or credit
themselves and keep legal title to the property which kind of !nancial
tool would be used?
real property installment or conditional sale contract
141
When does the time for repayment start for a construction loan?
from the date of the note
142
A developer needs a long term loan for $10,000,000 to develop a
shopping plaza. Which of the following is the best place to get the
funds?
A life insurance company
143
Who would you contact if you feel your property has been over
assessed by the county assessor?
Assessment appeals board
144
A valid deed must have:
a granting clause
145
fee simple:
fee simple defeasible:
fee simple absolute:
fee simple conditional:
fee simple: interest in property
fee simple defeasible: is a fee simple that could end with the violation of a condition. running out of heirs
fee simple absolute:The owner of a fee simple absolute has the following rights:
The right of possession
The right of alienation
The right of exclusion
fee simple conditional: refers to an estate that is restricted to certain specified heirs at the exclusion of others. For instance, “to John and his male heirs.” exclusion of heirs
146
Holden act
California Housing Financial Discrimination Act of 1977 (Holden Act) California act prohibiting lender discrimination for any reason unrelated to the credit of the loan applicant
147
1977
holden act
148
Rumford act
The Rumford Fair Housing Act was passed in 1963 by the California Legislature to help end racial discrimination by property owners and landlords who refused to rent or sell their property to "colored" people.
149
unruh civil rights act
The law was enacted in 1959
California law that prohibits discrimination against persons in one of the identified groups in accommodations and business establishments.
150
1959
unruh civil rights act was enacted
151
the class act
affordable care act in 2010. Community Living Assistance Services and is a publicly administered program that is designed to help people should they become disabled
152
the truth in lending act
1968 Federal act requiring loan term disclosures as well as advertising disclosures.
153
two-step mortgage
A hybrid loan between a fixed-rate and adjustable-rate loan; the lower rate remains in effect for seven years and is then automatically adjusted once for the balance of the loan period.
154
sherman antitrust act
Federal law that makes it illegal for competitors to agree that they will all charge the same fees for products and services.
155
Civil Rights Act of 1968
This comprehensive act is known as the Fair Housing Act. (Real Estate Practice). b. Federal law, Title VIII, often called Fair Housing law, prohibits discrimination in the sale, rental, or financing of housing based on race, color, religion, national origin, familial status, and handicap.
156
Civil Rights Housing Act of 2006
classifications of the Fair Employment and Housing Act (FEHA) to all California laws prohibiting discrimination in housing and housing-related areas,
157
conventional lender
One who makes loans that are neither insured by the FHA nor guaranteed by the VA.
158
convertible loan
Borrower can change to a fixed rate any time during the life of an adjustable-rate loan.
159
conversion
To change from a rental format to one of individual ownership.
160
conventional mortgage
Mortgage loan made without any additional guarantees for repayment, such as FHA insurance, DVA guarantees, or private insurance.
161
conventional loan
a. A loan secured by a mortgage or trust deed that is made without governmental underwriting (FHA-insured or VA-guaranteed). (Real Estate Principles, Real Estate Practice). b. A loan that requires no federally sponsored insurance or guarantee. (Real Estate Economics). c. A mortgage loan that is neither insured by the FHA nor guaranteed by the VA. (Fundamentals of Real Estate Appraisal).
162
codicil
Written amendment to a will
163
Clayton Antitrust Act
A federal statute that prohibits price discrimination, exclusive dealing arrangements, and interlocking directives.
164
change in ownership statement
Document indicating former and present owner of real estate that must be filed with the county recorder or assessor within 45 days of the date that the transfer is recorded.
165
certificate of occupancy (CO)
Issued by the applicable building department of the municipal, county, or other jurisdiction in which the property is located when a structure has met all requirements and can be placed into service. (Real Estate Principles). b. A certificate or permit issued by a government authority indicating that the building is fit for use or occupancy according to the laws that the authority enforces. (Real Estate Brokerage).
166
Cape Cod
One-and-a-half story house with sufficient head room in the second floor to provide livable space.
167
hypothecation
Hypothecation is the practice where a debtor pledges collateral to secure a debt or as a condition precedent to the debt, or a third party pledges collateral for the debtor. A letter of hypothecation is the usual instrument for carrying out the pledge.
To make property security for a loan without giving up possession of it (as with a mortgage).
168
patent
Original conveyances of land from the government.
169
Assignment
The transfer of rights under a contract without the release from obligation is known as:
Assignment is without release, while novation is with release.
170
express contract
An express contract is an agreement that has been expressed in words, either spoken or written
171
Fidelity bonded
Any employee who is authorized by a broker to make withdrawals from the trust account must be fidelity bonded in order to make withdrawals.
172
How long does a landlord have to return the unused portion of a tenant's security deposit?
21
173
Which of the following is not a protected class under the 1968 Federal Fair Housing Act?
age
Race, religion, color, sex, national origin, handicap, and family status are all protected classes under the Civil Rights Act of 1968; age is not a protected class under this act.
174
The Civil Rights Act of 1866 established which of the following as a protected class?
The Civil Rights Act of 1866 prohibits discrimination based upon race, color, and ancestry.
175
What should an agent use as guidelines to determine if an action is ethical?
business and professional code
176
Which of the following is not an exemption under the Federal Fair Housing Act
A church selling its church grounds with the help of a broker
177
During the sale of a property, who would an agent and client negotiate with?
customer
178
how much for punitive damages
no limit
179
A contract to sell rural properties requires which of the following?
legal description
180
The owner of a parcel of real property wishes to convey his interest to a certain buyer. The transfer of the grantor's ownership interest, if any, would be accomplished by which of the following?
deed
Do not confuse title and deed. Title means ownership and a deed is not proof of ownership of the property. A deed is just a written instrument transferring the grantor's interest, if any, to the potential buyer.
181
Once a person has gone to the courthouse and reviewed all documents pertaining to the property he intends to buy, he is said to have:
actual notice
182
Caveat Emptor
Caveat Emptor refers to "let the buyer beware" of physical defects in the property and has nothing to do with a title search.
183
If property taxes are unpaid, and the property is sold to the state, how long does the owner who still has possession have to redeem the property?
5 year
184
A standard policy of title insurance protects the buyer against what?
recorded documents
185
Who determines the tax rate?
The County Board of Supervisors
186
One form of seller financing is:
land contract
187
deed of trust
security for debt
188
Mortgages are recorded to:
create a valid lean
189
Straight note
The note that calls for payment of interest only
190
A process which allows a borrower to remain in possession of the property while using it to secure a loan is called
Hypothecation
191
Which of the following classes of individuals is protected under the Equal Credit Opportunity Act, but not under the Federal Fair Housing Act?
marital status
192
Who is the beneficiary, and what title (if any) does he/she hold?
The lender, who holds no title
The beneficiary, or lender, holds no title, just a note until reconveyance or foreclosure.
193
The term that describes the interest of a creditor in the property of a debtor:
security interest
194
the rate
The rate of return used by investors
195
Under a listing agreement, the seller is establishing what kind of relationship?
special
196
An agency relationship can be terminated in all of the following ways except
estoppel
197
The person authorized to act in place of someone else in legal matters is called:
attorney in fact
198
In order for a buyer to be certain that a property he is purchasing has no encroachments he should obtain
Survey
199
dedication
The transfer of real property by a private owner to a public agency
200
Disintermediation
movement of money out of a savings account into a higher-yield investment such as corporate and government instrument
201
appurtenant easement
is a right to use adjoining property that transfers with the land. The parcel of land that benefits from the easement is the dominant tenement. The servient tenement is the parcel of land that provides the easement.
202
restitution
undo a contract revert to old terms
203
blanket mortgage
A blanket mortgage is a single mortgage that covers two or more pieces of real estate. The real estate is held together as collateral, but the individual properties may be sold without retiring the entire mortgage. Blanket mortgages are commonly used by developers, real estate investors, and flippers
204
patent defect
Any patent defect does not need to be disclosed by the seller, something obvious
205
latent defect
latent defect needs to be disclosed by the seller either directly to the buyer or on the property disclosure form
s a fault in the property that could not have been discovered by a reasonably thorough inspection before the sale
206
caveat emptor
buy as is
207
revocation
cancel
208
how many years do you have to disclose a death
3 years
209
how much of broker own fund can be in trust account
200
210
Notice of default must be executed by the beneficiary or trustee and must be recorded in the office of the county recorder where the property is located before notice of sale is given. How long before notice of sale is given must these things occur?
3 month
211
respa only applies to
government conforming loans. loans intended to be sold by the lender on the secondary mortgage market. RESPA applies to one family to four family homes purchases only.
Real Estate Settlement Procedures Act
212
partially amortized note
Partially amortized notes call for periodic payments of principal only. The interest is be due at the end of the term.
213
Regulation Z of
Truth-in-Lending Act requires that a lender disclose to a borrower all costs of obtaining a loan, including interest rate, costs of payments over the life of the loan, etc.
214
The Fair Credit Reporting Act
The Fair Credit Reporting Act requires that a creditor truthfully record credit remarks on an individual's credit report.
215
Indemnification
refers to personal guarantee to hold a person harmless from any further liability (i.e. an insurance company indemnifies a insured against any loss resulting from a flaw in title).
216
The Habendum Clause
The Habendum Clause refers to the clause that is included after a granting clause in many deeds (begins "to have and to hold"), describing the type of estate granted.
217
straight term loan
note calls for interest payments during the term of the loan and principal due at the end of the loan
218
prime rate
The lowest interest rate that banks charge their best commercial customers.
219
OTS
Office of Thrift Supervision - The government entity that regulates savings and loans in the same manner that the Federal Reserve regulates commercial banks.
220
Usury
Charging an interest rate that exceeds legal limits.
221
package mortgage
A mortgage where personal property, like furniture, is included in the property sale and financed together with one loan.
222
Lien Theory States
States where a mortgagee only holds a lien against property (not actual title) until the loan is repaid, and the mortgagor holds the actual title.
223
Stigmatized Property
A property is undesirable to most people because of a past event (often a crime or environmental hazard).
224
appurtenant
In real estate, after something is installed onto a property, it can be called an appurtenance. Meaning it is passed on to a new owner if the property is sold. An appurtenance can be something tangible like a tree, barn, water tank, or something abstract such as an easement.
225
When is a structural pest control report required?
FHA VA Loan
226
Issue a desist and refrain order is to
when the real Esate commissioner decides to cancel dub division
227
How soon does written notice of transfer for the sale of a mobile home need to be provided to the Department of Housing and Community Development?
10 days
228
In which year did the U.S. Supreme Court prohibit racial discrimination in dealings with the sale or purchase of real property?
1968
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“Jones vs. Mayer” landmark decision in 1968
racial discrimination
230
The net operating income minus debt service equals an income property’s:
cash flow
231
Of the required 45 hours of continuing education, eighteen of those hours must be about:
consumer protection
232
What is the lender referring to when discussing “discounting”?
The loan proceeds disbursed by the lender are less than the face value of the note
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four important elements of value?
Demand, Utility, Scarcity and Transferability
234
What is the most challenging type of depreciation to remedy?
economic depreciation
235
Agency Relationship Disclosure
1988 real estate disclosure law, which came into effect January 1, 1988, refers to the:
236
When purchasing a property in a California land project, how much time is the buyer given in order to cancel their transaction and be entitled to a refund?
30 days
237
a judgement lien is also known as a
general lien
238
option contract
the seller is the optionor and the buyer is the optionee. It is a unilateral contract in that the seller is obligated to sell, but the buyer has the option to buy.
When created, an option contract is a unilateral contract. But when the buyer exercises the option, it becomes a bilateral contract.
The option is assignable to another party unless the contract forbids it.
In a lease option, the lessee agrees to lease the property with an option to buy the property.
239
what legal description would a sub developer use
lot and blocks
240
the distance between lots lines and improvement are known as
set back
buffer zone: between residential and commercial
241
what type of hazardous material is discharged by machine ship, ceramic, propellant plants
beryllium
242
market value
the price the property will likely bring in a arms length transaction
243
ad valorem
according to valuation - a tax to be paid based upon the value set by the government.
244
general agent
real estate agent
245
what funds the real estate recover fund
license fees
246
time tittle interest possession refers to
survivorship
247
statue of limitation on any given written contract
4 years
248
swing loan
temporary loan made on the borrowers equity
249
a delinquent renter who has not paid. how much time do you need to give them to terminate the tenancy?
3 days for delinquent, 30 days for abiding renters
250
what is the foreclosure timeframe under a trustee sale
3 month 21 day min.
because a trustee has to wait 3 month before recording recording a notice of a sale and advertise.
251
debt
the amount of money owing on a note or promise to pay is termed
252
how long does the landlord have to give back the security deposit
21 days
253
mortgage is create to
to create a valid lien
254
who is the borrowers in the written promise to pay a debt
maker
255
what is the most challenging type of decortication
phycial depriciation
256
ostensible relationship
The term “ostensible agency” refers to the relationship that exists between two parties and that leads a person to believe that the first is an agent of the second, or vice versa. For example, ostensible agency would apply to a hospital worker who is employed by an outside contractor.
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1. straight note:
2. fully amortized installment note:
3. partially amortized installment note
4. adjustable rate note
1. A promissory note for a loan where payments of interest only are made at specific periods, with the principal balance due in one lump sum at the end of the loan term.
2.
3. loans are designed to include a balloon payment at the time of the loan's maturity date
4.
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end of racial discrimination by us supreme court
1981
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emblements
the profit from growing crops that have been sown, regarded as personal property.
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purchase money mortgage
rchase-money mortgage is a mortgage issued to the borrower by the seller of a home as part of the purchase transaction. Also known as a seller or owner financing, this is usually done in situations where the buyer cannot qualify for a mortgage through traditional lending channels.
real estate
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