CA RE Principles Flashcards
1
Q
Governing body that both administers AND enforces the real estate license laws and related regulation of CA real estate licensees
A
DRE
2
Q
Main purpose of the DRE
A
Protect the public
3
Q
Statutory Authority for DRE
A
B&P Code
4
Q
Regulates licensing and subdivisions in CA
A
Real Estate Law (Sections 10000 to 10580)
5
Q
Governs situations where licensee was acting like a RE performing licensed acts
A
Section 10176
6
Q
False statement of fact
A
Misrepresentation
7
Q
False statement about what the promisor is going to do
A
False Promise
8
Q
Failure to inform all principals that the license is acting as an agent for more than one party in the transaction
A
Dual Agency or Divided Agency
9
Q
Broker mixes principal funds w/ broker’s own money
A
Commingling
10
Q
Specified date req’d in writing on all exclusive listings
A
Definite termination date
11
Q
Broker makes a low offer through a dummy purchaser and sells it to another buyer with a high offer
A
Secret profit
12
Q
If the form is both an option and a listing, principal must be informed of ____and _ must be obtained before exercising the option
A
the amount of profit the licensee will make
written consent approving this amount
13
Q
Catchall for performing a licensed act w/o a license
A
Dishonest dealing
14
Q
Brokers must obtain a written _______________ to sell from a business owner before securing signature of a prospective purchaser to any agreement providing for compensation to the broker if the purchaser buys the business
A
Business Opportunities Authorization
15
Q
Situations where licensee was not necessarily acting the capacity of an agent
A
Section 10177
16
Q
3 Violations governed by Section 10177
A
Franchise Investment Law, Corporations Code, Securities Law
17
Q
Regulates the sale and lease of subdivided land
A
Subdivided Lands Law (Section 11000 to 11200)
18
Q
Revenue for operation is derived from RE license fees, subdivision public reports, and various other permits goes into ________
A
RE General Fund
19
Q
RE General Fund Reimbursement Process
A
Within 15 days: DRE will notify of any deficiencies
Within 90 days: DRE will pay, compromise or deny claim
If denied, within 6 mths: applicant can refile w/ court that rendered judgment
If payment made, debtor license is suspended until amount is paid back plus interest
19
Q
Eligibility for RE General Fund Payment (4)
A
Must be intentional fraud or conversion of trust funds
Licensee must be properly licensed and performing licensed acts
Apply within 1 yr of final judgment or order
All reasonable efforts to satisfy judgment from all liable parties
20
Q
Max amount of disbursement of RE General Fund
A
$50k per transaction,
$250k total series of judgments for individual licensees
21
Q
RE Commissioner Eligibility
A
Min 5 yrs as CA broker/ 5 yrs of RE activity in CA during the last 10 years
22
Q
RE Commissioner appointed by ____ and salary is paid by _____
A
CA Governor; State Treasury
23
Q
RE Commissioner responsibility
A
Enforce RE and Subdivided Lands laws for max protection for RE consumers dealing with licensees and purchases of subdivided real property
24
Ad/info is NOT considered real estate if one of the condition applies (3)
i. Involves a service not directed to any customer in CA, general info about services offered to public, AND has: "The services referred to herein are not available to persons located within the State of California."
ii. Does not involve a service in connection for which a real estate license is required
iii. Not being published, circulated, or transmitted on behalf of another persons
25
RE ad does not require license if any of the following apply (4)
Person publishing info is exempt from licensing requirements
Services do not require license
Direct comm w/ specific customer with policies and procedures in place to ensure they understand they are not acting in RE capacity
RE broker must state so on all ads/info clearly
26
Parties that DO NOT need to be licensed as real estate salespersons or brokers (BBLP CCCAF RV)
(B)ank and (B)roker employees
(L)ending instution employees
(P)ersonal property brokers
(C)emetery authorities
(C)ollectors of loans secured with RE
(C)lerical help
(A)gricultural associations
(F)ederally insured lenders
(R)esident managers
(V)acation rental agents
27
Only unlicensed person that may solicit for the sale of real property
Owner and/or his legal representatives
28
RE License Renewal Requirement
No Exams
Fee
45hrs CER
29
Broker Process after expired license
Activate license again, Salesperson Change application for each SP, Branch Office application
30
Change in address, employer, criminal history, or license history after license application
Amended supplement stating info with commissioner
31
SP License Expiration
4 years
32
SP License eligibility (4)
18 yrs old, exam, SSN/ITIN, honesty
33
Docs required for SP license (FALFT)
application,
license fee,
fingerprint card,
fingerprint processing fee, transcript for courses
34
Exam details (time, questions, passing)
3h15min, 150 ?'s, 70%+
35
Prohibits discrimination in housing based on RACE (selling, renting, inheriting, and conveying)
Civil Rights Act of 1866
36
Prevent discrimination financed by FHA and VA loans (federal funding)
Executive Order 11063
37
Prohibits discrimination in housing based on race, color, religion, or national origin
Civil Rights Act of 1968 Title VIII (Fair Housing Act
38
LGBT protection (only in federally supported housing programs)
New Fair Housing Regulation
39
Anti-discrimination and consumer protection laws enacted in the mortgage financing field to promote equal opportunity in housing
Fair Financing Laws
40
Requires lenders to be fair and impartial in determining who qualifies for a loan
Equal Credit Opportunity Act (ECOA)
41
Requires lenders involved with federally guaranteed or insured loans to exercise impartiality and non-discrimination in the geographical distribution of their loan portfolio (redlining)
Home Mortgage Disclosure Act
42
Practice of directly or indirectly channeling customers toward or away from homes and neighborhoods
Steering
43
Practice of inducing owners in an area to sell or rent to avoid an impending change in the ethnic or social makeup of the neighborhood that will cause values to go down
Blockbusting
44
Residential financing practice of refusing to make loans on properties in a certain neighborhood regardless of a mortgagor's qualifications
Redlining
45
Fair Housing Act Exemptions (4)
Privately owned single-family home where no broker is used and no discriminatory advertising is used
Rental of an apt in a 1-to-4 unit building where the owner is also an occupant provided no discriminatory advertising
Facilities owned by private clubs and leased non-commercially to members
Facilities owned by religious organizations and leased non-commercially to members, provided membership requirements are not discriminatory
46
Age & Family Status Discrimination Exemptions (5)
In government-designated retirement housing
In a retirement community if all residents are 62 years of age or older
In a retirement community if 80% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents
In residential dwellings of two to four units if one of the units is occupied by the owner
In single family houses if sold or rented by owners who have no more than three houses
47
2 options for discriminated persons (and timeframes)
File a complaint with Office of Fair Housing and Equal Opportunity (OFHEO) within HUD within 1 yr
File a suit within 2 yr
48
Professional Relationship Standards (4)
Forgo pursuit of unfair advantage
Arbitrate rather than litigate disputes
Respect the agency relationships of others
Conform to accepted standards of co-brokerage practices.
49
5 main articles of REALTOR Code of Ethics
Article 1: Protecting the best interests of the **c**lient
Article 2: **D**isclosure of pertinent facts
Article 9: Get it in **w**riting
Article 12: Truth in **a**dvertising
Article 16: Respecting another agency **r**elationship
50
Economic Characteristics of Land (DUSTS)
Demand
Utility
Scarcity
Transferability
Situs
51
Physical Characteristics of Land (3)
Immobile
Indestructible
Nonhomogeneous
52
Building Codes Goal
Safeguard health and safety of the public
53
Right of gov't to take private property for public use with just compensation paid to owner
Eminent Domain
54
Parts Required for Eminent Domain
1. The property owner must be paid compensation for the property.
2. The property must be for the public good or use.
3. The owner must have due process in the courts system.
55
Process by which property is acquired through eminent domain if owner/gov't can't come to an agreement
Condemnation
56
Two types of Taxes
Special Assessment
General (Ad Volorem)
57
3 Types of Special Assessment Taxes
HOA Fees, CC&R's, Local City Fees for Special Assessment Districts (SAD's)
58
2 Types of Riparian Rights
Navigable rivers: own water edge
Non-navigable rivers: own land to center of stream
59
Littoral Rights (what are they and what do owners own?)
Seashore/Beaches
Owns to average high water mark
60
State gov't can give permission to nonadjacent land owner for crop irrigation
Doctrine of Prior Appropriation
61
Increase of land created by deposits of soil
Accretion
62
Decrease of land by gradual wearing away
Erosion
63
Sudden loss of land by an act of nature
Avulsion
64
Increase in land due to receding water
Reliction
65
Delta area where soil deposits from river
Alluvial Plain or Alluvion
66
Describes condo air space ownership
Horizontal Property Act
67
Type of Estate: "I own the property", no definite end date
Freehold Estate
68
Types of Freehold Estates (3)
Fee simple absolute
Fee simple defeasible
Life Estate
69
Owns the bundle of rights (Highest degree of ownership, Has unlimited duration, Is inheritable, Is subject to only the government powers)
Fee Simple Absolute
70
Estate based on an occurrence or non-occurrence of a specified event
Fee Simple Defeasible
71
3 Types of Voluntary Life Estates
Estate in Reversion
Estate in remainder
Pur Autre Vie
72
Grantor -> Life Tenant -> Death of Tenant -> Grantor
Estate in Reversion
73
Grantor -> Life tenant -> Death of tenant-> Remainderman
Estate in Remainder
74
Life estate based on the life of another other than tenant
Pur Autre Vie
75
Property only inheritable by a monarch (not legal in the US)
Fee Tail
76
Type of Estate: "I rent the property", usually a definite end date
Leasehold Estate
77
4 Types of Leasehold Estates
Estate for years
Estate for period
Estate at will
Estate at sufferance
78
One individual or corporation owning a property is called ________
Severalty/Separate ownership
79
Difference between tenancy in common, joint tenancy, tenancy in partnership
Tenancy in common: 2+ ppl hold equal or unequal interest in property. Inheritable.
Joint tenancy: 2+ ppl have identical interest in the whole property. Cannot be inherited.
Tenancy in partnership: 2+ combine interests, assets and efforts into a venture. Inheritable.
80
4 Things for Unity of Ownership for Joint Tenancy
Time, Title, Interest, Possession
81
Anything that burdens or limits your title to a property
Encumbrance
82
Document that uses a property to secure payment for a debt or discharge of an obligation owed
Lien
83
4 Descriptors of Liens
Voluntary
Involuntary
Specific
General
84
All mechanics must give _________ to the owner, contractor, and lender (if applicable) of their right to file a lien against the property
Preliminary 20 Day notice
85
Preliminary 20 Day notice must be served within 20 days of ______
Furnishing materials
86
4 Ways Projects are Completed
1. Owner occupies and work stops
2. Owner accepts work is finished and files a notice of completion
3. Work ceases for a continuous 60d period
4. Work on project ceases for 30+ days and owner files a notice of cessation
87
If owner files NOC within 10d of project completion, contractors have ____ and other have _____. If NOT, contractors have ____
60d, 30d
90d
88
States that the owner is not responsible for the work being done and releases any liability
Notice of Nonresponsibility
89
Notice of nonresponsibility should be filed by owner within _____ of discovering that an unauthorized person is completing construction on property
10d
90
Priority of mechanic lien over construction lien is determined by the ________
beginning project date
91
Property is seized and held (symbolically) until a pending suit has been decided
Attachment Lien
92
Lien due to Court decision as a result of a lawsuit and gives final determination of the rights of the parties in proceeding
Judgement Lien
93
Judgement lien is created once _____ and it runs for ___
Abstract of judgment is recorded
10 years
94
Priority of Liens in Foreclosure
1. Cost of sale
2. Property taxes
3. First mortgage or deed of trust
4. All other mortgages and other liens in order of priority
95
Protects homeowner's equity in residence from a forced sale by certain types of creditors
Homestead exception
96
2 types of homestead exception
Formal declared
Dwelling House Exemption
97
Limits of Homestead Exemption
Minimum of $300k and max equal to median home price in the county (with a cap of $600k)
98
Right to use a part of the property while you retain ownership rights
Easements
99
5 ways to create easements (INCER)
Implication
Necessity
Condemnation
Expressed
Reservation
100
Landlocked situation creating easement
Implication of Law
101
5+ years of uninterrupted use creating easement
Long Use/Prescription
102
Adjacent properties or neighbors, run w/ land and can't be sold separately
Appurtenant
103
5 requirements for prescription
Possession for 5 yrs
Open use
Actual
Continuous
Hostile
104
Unauthorized intrusion of a building or other improvements on another land
Encroachment
105
Owners have ____ to bring action against the other party for non-above-the-ground encroachments
3 years
106
Use encumbrance placed by grantor in a deed
Deed restrictions/restrictive covenants
107
3 types of deed restrictions
Covenant, condition, public restrictions
108
Promise who accepts an agreement to do or not do certain things
Covenant
109
Restriction that places a limitation on ownership
Condition
110
Gov't imposed restrictions
Public restrictions
111
2 Ways to Record Documents
Actual notice: expresses information of a fact
Constructive notice: notice given by the public records
112
If same property is sold to 1+ person, _____________ is considered rightful owner
Whoever recorded first
113
Evidence of title that it is free and clear of problems and can be sold
Marketable Title
114
3 Parts of a Marketable Title
Abstract
Chain of Title
Certificate of TItle/Lawyer's Opinion of Title
115
Brief history of all recorded instruments affecting title
Abstract
116
Record of property ownership
Chain of Title
117
Part of title that indicates a property is free and clear of significant liens, encumbrances, and reasonable doubt as to true ownership
Certificate of title/Lawyer's opinion of title
118
Insurance that covers things in public record, most widely used policy
Standard policy/ALTA policy/CLTA policy
119
Covers things not in public record, such as encroachments
Extended policy
120
Substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to debt
Subrogation
121
Legal system of land registration used to verify ownership and encumbrances w/o additional search of public records necessity
Torrens System
122
Entire bundle of rights
Livery of Seisin
123
In condos, each owner owns ______ to their unit and common elements are owned as _________
Fee simple title
Tenancy in common
124
Five tests to determine if property is a fixture or personal property (MARIA)
Method of attachment
Adaptability
Relationship of parties
Intent of the parties
Agreement b/w parties
125
Oral or written contract
Express agreement
126
"Handshake" agreement
Implied agreement
127
Bilateral vs unilateral contract
Bilateral: there is a promise for a promise
Unilateral: only one party makes a promise to perform
128
Executed vs Executory contract
Executed: all promises have been fulfilled
Executory: something remains to be completed
129
4 Elements of a Contract
Legally competent parties
Offer and acceptance
Consideration
Legality
130
Once offer is signed, it must be ________ for it to be a contract
Communicated back to the person who made the offer
131
Rule that to be enforceable, RE contracts must be in writing
Statue of Frauds
132
Leases ____ must be in writing
> 1 year
133
Work must be performed within a certain period or there is breach of contract
Time is of the essence
134
Transfer of rights or duties to a third party
Assignment
135
Substitute a new contract for an old one
Novation
136
Term or condition that requires a certain act or event before contract is binding
Contingency
137
Cash deposit that shows buyer's intention to carry out the terms of the contract
Earnest money
138
Seller agrees to an offer exactly as it was made
Mirror image
139
Amt of money or personal property agreed upon as damages if one party doesn’t live up to contract terms
Liquidated damages
140
Oral agreements prior to entering a written contract may not be used in court to dispute or contradict some written provision in the contract
Parol Evidence Rule
141
Interest the buyer has in property between time of contract acceptance and closing
Equitable title
142
Difference between valid, void, voidable, or unenforceable
Valid: binding and enforceable
Void: no legal effect
Voidable: valid, but may be rejected by one party
Unenforceable: valid b/w parties, but neither may force performance
143
3 Rights for Buyer if Seller Defaults
Buyer may cancel contract and receive earnest money
Buyer may file a suit for "specific performance" to force the seller to convey the property
Buyer may sue seller for compensatory damage
144
4 Rights for Seller if Buyer Defaults
Seller may declare the contract forfeited (retain earnest money)
Seller may rescind contract and return all payments made by the buyer
Seller may sue for specific performance
Seller may sue for compensatory damages
145
Statute of Limitations for mechanic's lien
90d after filing
146
Statute of Limitations for removing encroachments
3 years
147
Statute of Limitations for written contracts
4 years
148
Statute of Limitations for recovery of title to a property
5 years
149
Equitable doctrine used by courts to bar or prevent the assertion of a right or claim b/c of undue delay or failure to assert a claim or right
Doctrine of Laches
150
Decedent died without a will and without heirs. Property become government's
Escheat
151
6 types of involuntary alienation
Escheat
Eminent Domain
Adverse Possession
Suit to Quit TItle
Foreclosure
Bankruptcy
152
Similar to easement by prescription
Adverse possession
153
Court action used to clear a cloud on a title
Suit to Quit the Title
154
If grantor dies without a will but has heirs, then property will be transferred according to these laws
Statue of Descent and Distribution
155
Dying with a will
Testate
156
6 Legal Requirements of a Will
Legal age
Sound mind
Proper wording
No undue influence
Witnesses
Signed by testator (maker of will
157
Devise vs bequest
Devise is transfer of RE through a will, Bequest is PE
158
Amendement to a Will
Codicil
159
Will written in Testator's own handwriting (Legal in CA)
Holographic
160
Deathbed will given orally by testator, written down by nurse, and witnessed by doctor
Nuncupative
161
5 Ways to Acquire Property
Succession
Will
Accession
Transfer
Occupancy
162
5 Parts of General Warranties
Seisin
Quiet Enjoyment
Against Encumbrances
Further Assurance
Warranty Forever
163
"I guarantee that I own it and have right to sell it" Warranty
Covenant of Seisin
164
"No one will interfere with your possession or right to use the property" Warranty
Covenant of Quiet Enjoyment
165
"I promise there are no hidden liens or encroachments other than those stated in the deed." Warranty
Covenant Against Encumbrances
166
"If there is a defect, I promise to take care of any problems" warranty
Covenant of Further Assurance
167
"These promises go back as far as there were public records" Warranty
Covenant of a Warranty Forever
168
"I own it and convey it to you" Deed
General Warranty Deed
169
"I promise you that it's been clear since I've had it. I'm not making any promises before that." Deed
Special warranty deed
170
"I own it . . . but that's about it! I'm not going to make any promises." Deed
Bargain and sale deed
171
"If I own it . . . and I'm not saying I do . . . then I give you my interest." deed
Quit claim
172
Most commonly used instrument for tranferring title to RE
Grant deed
173
Granted to the purchaser at a court-ordered sale
Sheriff's deed
174
Granted as a gift of love and affection deed
Gift deed
175
Given if property is sold as payment of past-due unpaid property taxes
Tax deed
176
Deed used by gov't to grant public land to an individual
Land patent
177
Deed given to the purchaser of property at a trust deed foreclosure sale
Trustee's Deed
178
Grantor is held legally responsible to the grantee for the condition of the title (seldom used in CA)
Warranty Deed
179
2 things that sound like a deed but are NOT
Trust deed (security device)
Reconveyance deed (executed by trustee to the borrower)
180
3 Requirements for a deed to be valid
Premise
Habendum
Testimonium
181
Grantor, grantee, accurate legal description (part of deed)
Premise
182
Consideration, granting clause, to have an to hold clause, designation of any limitations, exceptions
Habendum
183
Signature of grantor, delivery by grantor and acceptance by grantee, dated by recorder of deeds
Testimonium
184
3 types of deed delivery
Manual delivery
Delivery through recording
Conditional delivery
185
Mandates that a specific event happen before the title can be passed, and title passes through a third party
Conditional Delivery
186
Deeds DO/DO NOT have to be recorded to be valid
DO NOT (but it protects ownership interests)
187
"Let the buyer beware"
Caveat emptor
188
Process in which a neutral third party, for a fee, acts as the closing agent for buyer and seller
Escrow
189
Escrow holder cannot be _____ and must be ______
NOT an individual
Licensed by the state
190
2 Requirements of a Valid Escrow
Binding contract b/w buyer and seller
Conditional delivery of transfer instruments and funds to a neutral third party
191
10 Step of Escrow Procedure
1. Prepare escrow instructions
2. Order preliminary title search and report
3. Request lender's demand
4. Request for new loan instructions and documents
5. Accept structural pest control report and other reports
6. Accept fire insurance policies and complete settlement
7. Request closing funds
8. Audit file
9. Order recording
10. Close escrow
192
_________ right for lessor and ______ right for lessee (for a valid lease)
Reversionary; Possessory
193
Estate for Years
Beginning & End Date: ___
Notice to Terminate: _____
Renewal: ______
Amount of time: ____
Definite
Not necessary for lessee
NOT automatic
Any
194
Estate for Period to Period
Beginning & End Date: ___
Notice to Terminate: _____
Renewal: ______
Amount of time: ____
Not definite
By either party to term or 30d
Automatic for a period of time
Month to month
195
Estate at Will
Beginning & End Date: ___
Notice to Terminate: _____
Amount of time: ____
Indefinite
Either party w/o notice or death
Any
196
Tenant stays past the term of the lease known as holdover tenant
Estate at sufferance
197
4 Step Process for Eviction
1. Serve a 3 day notice (if tenant has defaulted on rent or violated a term) or a 30 day notice (no tenant violations)
2. If tenant refuses to leave, unlawful detainer is filed.
3. If landlord wins, court will award landlord judgement and landlord will ask for a writ of possession to authorize the sheriff to evict that tenant.
4. Sheriff will send eviction notice to tenant. If tenant still refuses to leave, sheriff will physically remove the tenant
198
Legal action in which a complaint is filed in court
Unlawful detainer
199
Landlord's remedy to regain possession of property
Actual eviction
200
Tenant's remedy if property is not habitable
Constructive eviction
201
Apartment, lessee pays flat fee, lessor pays all expenses
Gross lease
202
Commercial, lessee pays flat fee & a % of expenses, lessor pays balance of expenses
Net lease
203
Shopping mall, lessee pays flat fee & a % of gross sales, lessor pays all expenses
Percentage lease
204
Long-term lease (99 yrs); tenant may build on a property with a this lease but property is landlord's
Ground lease
205
Lease is based on some type of index (cost of living) and adjusts (usually upward)
Index lease
206
Lease which states a future date for a new appraisal
Appraisal lease
207
Lease amount goes up at regular intervals
Graduated lease
208
Tenant agrees to pay part of ownership expenses (utilities, property taxes, and special assessments)
Net lease
209
Tenant pays for the insurance as well as ownership expenses
Net-Net lease
210
Tenant pays for some agreed-upon items of repair and maintenance
Net-net-net (triple net) lease
211
Clause in lease in which parties agree to an adjustment of rent based on set increases in costs
Escalator clause
212
Mortgage clause which requires tenants cannot be disturbed if property is foreclosed upon
Non-disturbance clause
213
Rental income that RE can command in an open, competitive market any given time
Economic rent/ Market rent
214
Lease is based on some type of index (cost of living) and adjusts (usually upward)
Index lease
215
If a lease is made, it must be signed by _______
Lessor
216
5 Requirements for Lease
State duration of the lease
Amount of rent & due date
Names of parties
Sufficient description of the property
Evidence of both landlord's and tenant's intent to create a landlord-tenant relationship
217
No gov't agency may adopt any _____ restrictions on non-residential property
Rent control
218
Leasehold estate in a property that lies b/w the ownership interest and operating interest
Sandwich lease
219
Max Allowed Security deposits for unfurnished rental: ______
Furnished rental: ______
2 mths + 1 month
3 mths + 1 month
220
Inspection report that states condition of property upon the tenant's moving in and out of property
Statement of property condition
221
Landlord has ___ days to refund the deposit if no damage occurred. If damage occurred, they need to give ____.
21 days max
Itemized, written statement
222
If security deposit is retained, landlord is liable for ____
$600 + 2% monthly interest from due date until paid
223
By renting, landlord is agreeing that the property meets the minimum health and housing codes
Implied right of habitability
224
Once given notice, if landlord does not make repair, tenant can do 2 things
1. Rental Offset: 1 mth in repairs (2x per 12 mths)
2. Abandon the premises
225
Mobile homes built before ___ must meet certain design and construction standards
June 15, 1976
226
4 Steps for Transforming a Mobile Home into RE
1. Obtaining a building permit;
2. Attaching the mobile home to an approved foundation;
3. Recording a document reflecting that the mobile home has been affixed to an approved foundation system; and
4. Obtaining a certificate of occupancy
227
2 requirements before removing mobile home from foundation
Anyone with title consents to removal
Owner notifies HCD and local assessor 30d prior
228
RE cannot sell ___ mobile homes
New
229
Used mobile homes may be sold if _______ and _______
They are registered
Are on a lot/mobile home park
230
Mobile home must be capable of __________
Being transported over a road
231
Notification of a mobile home sale and the ownership transfer must me made within _______ of the sale date
10 days
232
Mobile homeowners must pay an _____ tax
In Lieu
233
Mobile home loans are amortized over a ____ or ____ period
15- or 20- year
234
4 Ways to Create Agency
Written/Expressed
Implied
Ostensible
Ratification
235
Type of Agency where RES casually provides the type of guidance and advice that would be reserved for clients, but that consumer relies upon that advice
Implied Agency
236
Type of Agency where agent appears to be working for a company or person, even though they may not have been officially hired or given authority to act
Ostensible Agency
237
Type of Agency where client approves an act which has already been done in their name and on his behalf by RES who, in fact, had no actual authority to act on behalf of them
Ratification
238
Agent handles all delegated business of principal (e.g. power of attorney)
Universal
239
Agent handles multiple transaction of a client (e.g. property management)
General
240
Agent handles one transaction for one seller of one property
Special
241
Agent is a partner in the ownership of the property
Agency coupled w/ an interest
242
Real estate broker who acts as an agent to only the seller or only the buyer
Single Agent
243
Real estate broker who acts as an agent to both the seller and buyer in the same transaction
Dual Agent
244
5 Duties Owed by an Agent to Client
Care
Obedience
Accounting
Loyalty
Notice
245
Duties owed by an Agent to 3rd party customers
Honest
Accuracy
Disclosure of Defects
246
Exaggeration or superlative comment, subjective opinion (legal)
Puffing
247
Deception intended to cause a person to give up property or lawful right, intentional misrepresentation
Fraud
248
Something known to seller, but not to purchaser and not discoverable by inspection
Latent defects
249
3 Prohibitions by Sherman Antitrust Act
Price fixing
Group boycotts
Division of Markets by location/price
250
Sherman Antitrust Punishments
$100M (corporations)
Fine up to $1M or 10 years imprisonment (individuals)
251
SPs are _______ (type of employee)
Independent contractors
252
Type of Listing agreement where broker is always entitled to a fee, regardless of who procures the buyer
Exclusive right to sell
253
Type of listing agreement where one broker is allowed to act on behalf of the principal; however, if owner sells the property him/herself, no commission is paid to the broker
Exclusive agency
254
Type of Listing Agreement where seller retains the right to hire any number of brokers to sell his property. Whoever sells gets commission.
Open
255
Type of listing agreement where seller receives a certain amount of money for the sale and anything greater is paid to broker as a commission
Net (Illegal in most states)
256
3 Options for Broker upon receiving a buyer's money deposit
Give the money to the principal to the transaction
Put it into a neutral escrow depository
Put it into the broker's trust fund at a bank or other financial institution
257
Money must be deposited with the appropriate account or with the principal within ______ following receipt
3 business days
258
Unlawful misappropriation of a client's fund
Conversion
259
Broker must record receipt of the check on the _______ and ensure it is ________
broker's trust fund record
in a safe place
260
____________ is NOT allowed in earnest money, only cash or check
Promissory note
261
May be considered the equivalent of a promissory note
Post-dated check
262
Inspections and disclosures that affect the value or desirability of the property
Transfer Disclosure Statement
263
Transfer Disclosure Statement must be sent __________
Before or within 3 days after the deposit receipt is signed
264
"Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker" is required in the _____ clause
Compensation
265
Broker cannot use a form in which _________
The amount or rate is preprinted
266
Broker MUST notify the seller of ______________ BEFORE the seller agrees to sign the purchase contract with the buyer
The amt of commission the broker is earning
267
Seller MUST ___________ before seller cancels the agreement
Give Notice to Buyer to Perform
268
In certain cities or counties, a seller might be required to provide specific info about the neighborhood or community using __________
Local Option Real Estate Transfer Disclosure Statement
269
Disclosure for areas used for military training and which may contain live ammunition or areas 1 mile of such a hazard
Disclosure of Military Ordinance
270
Disclosure for Registered sex offender info
Megan's Law
271
6 Requirements for Trust Account
Designated as a trust account in the name of the broker as trustee;
Maintained with a bank or recognized depository located in California;
NON-interest-bearing account;
Out-of-state trust account is permitted only if the FDIC insures the account
Account is used only to service specific first loans
A withdrawal may ONLY be made from a trust account upon the signature of specific parties
272
2 Escrow or Trust Accounts for Property Manager
For security deposits
For current rents & management
273
Selection and preparation of a mortgage or deed by a broker, in which a fee was charged, constituted the unlawful practice of law
1943 People v. Sipper
274
Instructions for how SP with authorization makes a withdrawal from broker's trust account is outlined in 2 laws: __________
California Business and Professions Code Section 10145
Commissioner's Regulation 2832
275
Trust account violation punishment
$10k max or within 6 months' prison time (individuals)
$50k max (corporations)
276
Closed-end mortgage or open-end LOC that is extended to a consumer for personal reasons
Covered loan
277
3 Restrictions for Covered Loans
No Prepayment fee or penalty after first 36 mths
Specific disclosure
Loan principal balance limit
278
Consumer credit transaction secured by real property in CA, which is used as the principal dwelling of the consumer that is improved by a one-to-four residential unit
Consumer Loan
279
RE Fraud Prosecution Trust Fund Intent
Have an impact on RE fraud involving the largest # of victims
280
RE Fraud Prosecution Trust Fund Split
60% DAs, 40% Local Law Enforcement
281
Add marital status and sexual orientation to list of protected classes
Unruh Civil Rights Act
282
Adds source of income to list of protected classes
CA Government Code Section 12955(l)
283
Document recorded by an individual if their property has been placed under an unlawful restriction
Restrictive Covenant Modification
284
Law that adds property tax disclosure
Bill 259 to Civil and Business and Professions Code
285
Any person who intends to offer subdivided lands for sale or lease within California MUST _________ and submit a _______
File an application for a Subdivided Lands Public Report
Completed questionnaire
286
Public report consisting of a notice of intention
Subdivided Lands Public Report
287
2 New Exceptions to the Automatic Stay Rule by Federal Bankruptcy Abuse Prevention and Consumer Act (BAPCPA)
As long as the lessor took the action and obtained a judgment to obtain possession of the property BEFORE the date the lessee/debtor's bankruptcy petition was filed, the previously-filed eviction, illegal detainer action, or other proceeding taken by the lessor will remain in effect.
With respect to evictions based on endangerment or illegal use of controlled substances on the property, eviction proceeding is excluded from automatic stay if it was commenced before the filing of the bankruptcy case and the action occurred within 30 days before the bankruptcy filing
288
Creates and regulates common interest developments with amendments that became effective in 2006 and $____ per violation
Davis-Stirling Common Interest Development Act
500
289
Bill that states RE broker who arranges the purchase of a fractionalized interest in a trust deed must record this fractionalized interest in the trust deed within _____ of the purchase
Bill 1729
10d
290
Prohibits sending unsolicited advertising faxes ($500 per violation)
Bill 833
291
Requires air conditioning and heating ducts with 15%+ leakage must be repaired
Building Energy Efficiency Standards (under Title 24)
292
2 Parts to a Mortgage Loan
Pledge/Promissory Note
Collateral
293
Borrower pays interest monthly and pays the entire principal on the due date
Straight note/ interest only note
294
Borrower pays interest and principal monthly (most common pledge)
Installment Note
295
Equal installment payments that liquidate loan
Fully amortized Loan
296
Monthly interest and some of the principal for each payment and at the loan due date the remainder of the principal must be made
Partially amortized loan
297
Long-term note not secured by collateral
Debenture
298
If borrower defaults, lender can call the entire balance due and payable immediately
Acceleration clause
299
Mortgagee or beneficiary declares the entire balance of loan becomes due and payable when property is transferred (not allowed in FHA or VA loan)
Alienation clause
300
Subsequent mortgage or deed takes priority
Subordination clause
301
Substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to the debt
Subrogation
302
Gives borrower the right to clear up debt prior to foreclosure
Equitable right of redemption
303
Gives the borrower a certain amount of time after the sale to clear the debt
Statutory right of redemption
304
General lien against the borrower by lender
Deficiency judgement
305
Lender and borrower agrees that lender will become property owner instead of going through formal foreclosure process
Friendly foreclosure
306
Charging interest in excess of state law
Usury or illegal interest
307
Total dollar amount of interest and points paid by a borrower at closing
Prepaid interest
308
One-time fee paid at closing to increase yield to the investor (lender)
Points or discount points
309
____ discount points are required to increase % yield by 1%
8
310
One way that loan officers and RE licensees are able to determine monthly payments. Cost per thousand required to create the principal and payment necessary to pay off the loan.
Factors
311
Interest rate fluctuates and is usually tied to an index; increases are capped for each period and for the term of the loan
Adjustable Rate Mortgage (ARM)
312
Interest rate minus index
Margin
313
How often loan rate may be changed (usually yearly) is called
Adjustment period
314
Lower payments first year, then payments increase
Graduated Payment plan
315
Homeowner receives monthly payments based on accumulated equity rather than a lumpsum. Loan must be repaid upon death of owner or sale of property
Reverse Annuity Mortgage (RAM)
316
Mortgage given as part of the buyer consideration for the purchase of RE and delivered at the same time as RE is transferred
Part Purchase Money/Purchase Money Mortgage (PMM)
317
Loan on RE plus fixtures and appliances. Extensively used in condos.
Package mortgage
318
Loan covers several pieces of land.
As certain sums are repaid, certain parcels are released (______ clause)
Blanket mortgage
Partial release
319
Loan that is expandable by increments up to a max dollar amount
Open-end mortgage/deed of trust
320
Additional financing from a second lender. One payment- two loans. New lender pays the first loan, but charges higher interest for a second. Original loan must be assumable w/o alienation clause.
Wraparound
321
Payment is subsidized at the beginning by a builder or other party for 3-5 years, and thereafter, purchaser takes over
Buydown
322
Long-term permanent financing for large construction projects, usually commercial
Takeout loan
323
Owner sells his/her improved property and at the same time signs a long-term lease
Sale-leaseback
324
Short-term interim loan for buyer, usually six months to one year in duration. May be placed on former house to buy new house until first house sells.
Bridge Loan
325
Buyer does not receive legal title until final payment is made
Contract for deed/installment land contract
326
Insurance is provided by a private insurer that protects lenders against loss in the event of a foreclosure and deficiency
Private Mortgage Insurance (PMI)
327
Insurance is required for all loans with _____ down payment
Less than 20%
328
Largest private insurer
Mortgage Guarantee Insurance Corporation (MGIC)
329
Offer small investors the opportunities to invest in high-yield RE
Syndicate Equity Financing
330
Straight bank loan that the borrower obtains based either on good credit or some NON-real property collateral
Commercial Loan
331
Article that states limitations for brokers who negotiate trust deed loans
Article 7
332
Article 7 (Broker negotiating trust deed) commission limitations
First loans:
5% principal of a loan of <3 years
10% principal of a loan of 3+ years
Second or other junior loans
5% principal of a loan of <2 years;
10% principal of a loan of 2-3 years;
15% principal of a loan of 3+ year
333
Article 7 (Broker negotiating trust deed) Cost and Expenses limitations
Cannot exceed 5% of the loan or $390 (whichever is greater) to a max of $700
334
Hard money loans (cash) of ___ for first trust deed loans, and ____ for junior deeds of trust broker can charge _____ commission
$30k+
$20k+
as much as borrower agrees to pay for
335
Owner-occupied home loans negotiated by broker for a term of ___ years may not have a balloon payment. Seller must notify buyer between ___________ before payment is due.
6+, 60-150d
336
Req't to report annual and quarterly loan activities to the CA BRE
Threshold reporting
337
Threshold reporting is required IF
Within the past 12 months, broker has negotitated 10+ loans or $1M in loans
338
Article that states licensees must not pool funds i.e. broker cannot accept funds unless the funds are meant and noted for a specific loan transaction
Article 5
339
Requirements before a broker can accept the lender's money for loan
Broker must first OWN the loan OR have an unconditional written contract to buy a specific note;
AND the broker must also have the authorization from the prospective borrower, giving him permission to negotiate a secured loan for the borrower.
340
Article that outlines anyone acting as the principal or agent, engaging in the business of selling RE securities OR who accepts funds to be reinvested in RE securities or to be placed in an account
Article 6
340
Required to sell RE investment type security
Commissioner's Permit
341
____ is required for Commissioner's Permit and it is valid for ____ and costs _____
$10k surety bond
1 year
$100
342
Financing law that outlines disclosure requirements
Truth in Lending (Regulation Z)
343
Truth in Lending (Regulation Z) does not apply to ________ transactions
Commercial
344
Expression of the relationship of the total financing charge to total amount to be financed
APR
345
Requirements to Be Considered a Lender (2)
Must lend funds 25x annually and/or for at least 5 housing loans
Not the owner
346
Clause required by some state subdivided land sales laws, that informs a purchaser of his/her contract revocation rights as provided by state law
Rescission Clause
347
Ensures buyer and seller in residential RE transaction have knowledge of all settlement cost
Real Estate Settlement Procedures Act (RESPA)
348
Penalty for RESPA Violations
1 year in jail and/or $10k fine
349
CA state law preventing discrimination and redlining
Holden Act
350
2 Elements of a Business Opportunity Sale
Bill of Sale
Financial statements
351
Gives a person the chance to channel private savings into RE investment for which other financing cannot be obtained or is not available
RE Syndication
352
Process for Syndication
Origination
Operation
Completion/Liquidation
353
4 Forms of Syndication
Corporate Form
General Partnership/Joint Venture
Limited Partnership
LLC
354
Syndicate that allows for both centralized management and limited liability for the investors, but has negative tax features
Corporate Form
355
Syndicate that avoids double taxation, but has unlimited liability provision and lack of centralized management
General partnership/ Joint venture
356
Syndicate that offers the corporate advantages of limited liability and centralized management, and the tax advantages of a partnership
Limited partnership
357
Syndicate that includes liability limitation
LLC
358
Type of company that sells securities specializing in RE ventures
Real Estate Investment Trust (REIT)
359
Real Estate Investment Trust (REIT) Requirements (4)
100 investors
No 5 or fewer owns more than 50% of interest
Transferable shares or certificates to prove interest
Each share/interest must carry a vote
360
REIT that invests in RE itself or in several RE projects
Equity Trust
361
REIT that invests in mortgages and other types of RE loans/obligations
Mortgage Trust
362
REIT that invests in both equity and mortgage investments
Combination Trusts
363
Appraisal Process
1. Define problem
2. Gather, record, and verify the necessary data
3. Analyze and interpret using the following info: Neighborhood analysis, Neighborhood cycle, and Site analysis
4. Estimate land value
5. Estimate property value by each of the three approaches to value
6. Reconcile estimated values for the final value estimates
7. Report final value estimates
364
Cost to replace the same materials as original construction
Reproduction cost
365
Cost to replace the current materials and methods w/ utility and function similar to original
Replacement cost
366
3 Replacement Cost Methods
Sqft cost
Unit in Place
Quantity Survey method (only for historical properties/new construction)
367
3 Ways to Determine Value
Market Data/Sales Comparison
Cost/Summation
Income Capitalization Approach
368
Value Approach that is Used for appraising residential property or vacant land
Market Data/Sales Comparison
369
Value Approach that is used on buildings that do not have market data because they are unusual properties
Cost/Summation
370
Value Approach that is based on present value of the rights to future income
Income capitalization approach
371
6 Steps for Income Capitalization Approach
1. Estimate annual potential gross income (equal to number of units times the annual rent for each unit)
2. Deduct an allowance for vacancies to arrive at Effective Gross Income
3. Add non-rental income to effective gross income to derive Annual Gross Income
4. Deduct the annual operating expenses (don't include debt service or mortgage payments) from Annual Gross Income to derive Net Operating Income
5. Estimate the rate of return that an investor would demand for this investment. This rate of return is called Capitalization (Cap) Rate
6. Divide cap rate into net operating income to identify the property's value, or I/R=V; I: Net income, R: Cap Rate, V: Value
372
Possible use of a property that would produce the greatest net income and thereby develop the highest value
Highest and Best value
373
Max value of a property tends to be set by the cost of purchasing an equally desirable and valuable substitute property
Substitution
374
Value of a property increases when the supply is short and decreases when there is too much
Law of Supply and Demand
375
The more a property or its components are in harmony with surrounding properties, the greater the contributory value
Conformity
376
Occurs between dissimilar properties
Regression and Progression
377
Property can increase or decrease in value in expectation of something in the future
Anticipation
378
Value of any component of a property is what it gives to the value of the whole or the absence detracts of the whole
Contribution
379
Combining of 2+ adjoining lots into one larger tract to increase their total value
Assemblage
380
When one business attracts another business of similar type; together they may make more money than they would have singularly
Competition
381
RE property is constantly changing
Change
382
Reduction in utility or value resulting from an impairment of physical condition (curable or incurable)
Physical Deterioration
383
Loss of value of an improvement due to functional inadequacies (often caused by age or poor design, curable or incurable)
Functional obsolescence
384
Loss of utility resulting from extraneous factors that exist outside of the property (almost always incurable)
Economic (external) obsolescence
385
Estimated period where an improved property will yield a return over and above economic rent
Economic Life
386
Actual age or life of a structure that is considered habitable
Physical life
387
4 Levels of Appraisers
Trainee (AT): supervised by a certified residential or general licensee in good standing at all times
Residential (AL): can appraise any non-complex 1-4 family property with a transaction value up to $1M or non-residential properties up to $250k
Certified Residential (AR): can appraise any 1-4 family property w/o regard to transaction value or complexity. Can appraise non-residential properties with transactional value up to $250k - 200h
Certified General (AG): can appraise all RE
388
Appraisal Licenses are valid for ___ and CER is required every _____
2 years
4 years
389
Multiplied times the taxes to make the rate of one county more equal to the rest of the stated
Equalization factor
390
Mill
1/1000th of a dollar or 0.001
391
Limits the max annual tax on real property at 1% of market value
Prop 13
392
4 Exemption for Tax Transfer & Reappraisal
Between spouses
Principal residence of $1M or less between parents and children
Replacing a property due to government eminent domain
Replacing a property due to a disaster
393
Homeowners 55+ years of age are allowed to transfer their base-year property tax value to another home of equal or lesser value in the same county and keep their low assessment from their former home
Prop 60
394
Same as prop 60 but for another county, if that county's board of supervisors chooses to apply
Prop 90
395
Real property tax becomes a lien on _____
the January 1 that precedes the fiscal tax year
396
Period of Redemption for Property Tax
5 years
397
Owner-occupied residential dwelling is entitled to a $7k deduction from the full appraisal value
Section 218
398
Provides for a CA resident who has served in the military during war time an exemption of up to $4k of full value of the property
Section 205
399
Law used for street improvements and owner along the street is liable for paying a pro-rata share of that cost
Street Improvement Act of 1911
400
Used to finance public services in newly developed areas
Mello-Roos Community Facilities Act of 1982
401
Levied upon the transfer of real estate
Documentary Transfer Tax
402
Taxes the estates of deceased persons
Estate and Inheritance tax (ELIMINATED in CA)
403
Apply to the voluntary transfer of property from the owner (donor) to the receiver (donee) and it (IS/IS NOT) used in CA
Gift Tax
IS NOT (federal gov't does)
404
3 Systems for Legal Description
Lot and Block System
Metes and Bounds System
Rectangular Survey System
405
Lists the lot, block, subdivision, county, city, and state
Lot and Block System
406
Used where lot & block system is not in place OR irregular pieces of property and it starts at _______
Metes and Bounds system
Point of beginning (POB)
407
Legal description system based on intersecting lines
Rectangular survey system
408
______ N/S Lines
______ N/S parallel + 6 mi apart
______ E/W Lines
______ E/W parallel + 6 mi apart
Principal meridian
Range Lines
Base Lines
Township Lines
409
36 square mile area formed by intersection of township and range lines
Township
410
Law that was designed to protect the purchasers of property in new subdivisions from fraud of misrepresentation
Subdivided Lands Act
411
Regulates the division of 2 or more lots for purposes of selling, leasing, or financing said lots, either at that time or in the future
Subdivision Map Act
412
Primary concern of Subdivided Lands Act
Marketing
413
Public reports are valid for ____
5 years
414
Speculative subdivision development of 50+ vacant lots in a rural area with less than 1500 registered voters within 2 miles
Land project
415
____ after signing offer to rescind offer on land project and receive a full refund
14 d (in writing, w/o cause)
416
Regulates land sales b/w 2+ states and OOS buyers have ____ to rescind offer
Interstate Sales Full-Disclosure Act
7 days
417
Org made up of citizens appointed by city council or board supervisors that advises elected officials on land use issues
Planning Commission
418
Planning commission DO/DO NOT make actual decisions
DO NOT
419
General Plan Steps
Resource Analysis
Formulation of Community Goals
Plan Implementation
420
General Plan Step that recognize individual characteristics of the community (strong and weak points)
Resource analysis
421
General Plan Step that is based on community residents. Very flexible and adaptable
Formulation of Community Goals
422
General Plan Step where local gov't utilizes various land-use controls so plan can be achieved
Plan Implementation
423
Controls density and avoids overcrowding
Bulk zoning
424
Requires new buildings to conform to specific types of architecture
Aesthetic zoning
425
Encourages zoning as a planning tool to use land for its highest and best use
Directive zoning
426
Term used to describe positioning of a structure on a lot so that one size rests directly on the lot's boundary line (generally prohibited)
Zero Lot Line
427
Statute creating the power or authority to carry out an activity or to do something not previously authorized
Enabling Acts
428
Requires a builder of new residential housing to set aside a designated number of units for low- to moderate-income people
Inclusionary zoning
429
5 Tests of Validity of Zoning Ordinances
The power must be exercised in a Reasonable manner.
The provisions must be Clear and specific.
The ordinance must be free from Discrimination.
The ordinance must promote Public health, safety, and general welfare under the police power concept.
The ordinance must apply to All property in a similar manner.
430
Zoning exception that separate and screen residential areas from nonresidential areas
Buffer zones
431
Zoning exception that existing properties are left in violation due to new ordinance
Nonconforming Use
432
Conflicts with the zoning ordinances that were in place before the use commenced
Illegal nonconforming use
433
May be sought to provide deviation from an ordinance such as installation of a sign for a business, or a change of zoning, so long as it is before the construction or reconstruction takes place
Variance
434
Zoning exception that reclassifies one piece of property in an area for a specific purpose
Spot zoning
435
Property that is deemed to be in the public interest contrary to the zoning that exists
Conditional Use Permit
436
Provide procedures and information to ensure that governmental agencies will consider and respond to the environmental effects of their proposed decisions
California Environmental Quality Act of 1970 (CEQA)
437
Controls on the 1,000-mile California coast
California Conservation Act
438
National Environmental Policy Act requires an ___________ on all projects that use federal funding
Environmental impact report (EIR)
439
City planning decisions are the duty of ________ or ________
City council or board of supervisiors
440
FHA Loans _____________ for lenders
insures against loss by the HUD
441
No prepayment penalties allowed for _________, ___________, or _________
FHA Loans
VA Loans
CalVet
442
VA/FHA allows buyer to buy more than appraised value, if __________
They pay difference in CASH
443
VA Loans _____________ for lenders
Repayment of Loans
444
Qualification for VA Loans
181 days of active service, 90 days after active service
445
Basic entitlement for VA Loans, but lenders will lend up to ________ w/o requiring down payment
$104,250
4x
446
There IS/IS NOT a max for VA loan
IS NOT
447
For VA Loan, if borrower defaults on a loan > $144k, VA will pay lender ___________ and ___________ assume liability
Up to 25% of Loan Amount
Veterans
448
VA Loan has to be owner occupied for ____________
At least 1 year
449
Veterans must apply for ______ to obtain a VA loan
Certificate of Eligibility
450
Loan from State to Veteran
CalVet
451
CalVet Requirements
90d active duty
Honorable discharge/Statement of Service
CA Home/Farm
452
CalVet Loans ______ max and requires __________
$521,250
Structural Pest Control Report and Roof Inspection
453
CalVet loans allows borrowers to borrow ______________ or ______________ down
Entire down payment
Put up to 20% of Sale Price or Appraisal Value
454
Federal lender with USDA that makes loans for purchases/construction in rural areas and small communities outside metropolitan areas
Rural Economic and Community Development (RECD)
455
Loan in which borrower is not held personally liable on the note
Non-recourse loan
456
RE loans are sold in the financial market. Seller of the security is not liable if borrower defaults
Non-recourse clause
457
Legal doctrine in which a person is prevented from asserting rights that inconsistent with a previous position made by act, conduct, or silence
Estoppel Certificate
458
Clause sometimes inserted in a mortgage note in which lender waives right to a deficience judgement. In lease, it clears or relieves landlord from liability for tenants' personal injury and property damage
Exculpatory Clause
459
Fund of the buyer's money that the lender sets aside for future needs relating to the parcel of property
Impounds
460
Amount of money banks are required to keep on hand
Reserves
461
If reserves increase, interest rates _______ in around ______ (timeframe)
Decrease
30-60d
462
Rate at which Fed charges bank for money
Discount rate
463
If discount rates increase, _______ consumers will qualify for loans and that impact happens ______ (timeframe)
fewer
quickly
464
If the Fed is buying bonds, interest rates are _______ in _______ (timeframe)
lower
6 mths-1 year
465
Sells seasoned mortgages and deeds of trust to individual investors and financial institutions
Fannie Mae (FNMA)
466
Fannie Mae is controlled by ____ and it buys ______
A Private corp (Quasi Government)
FHA, VA, conventional loans
467
Ginnie Mae is controlled by ____ and it buys ______
HUD
FHA/VA Loans
468
Freddie Mae is controlled by ____ and it buys ______
A Private corp (Quasi Government)
Conventional loans
469
Natural hazards disclosure must include (3)
special flood areas
wildland high fire severity areas
seismic hazard zones
470
Cohen v. Shearer
cancellation or termination of escrow may not also cancel a purchase contract
471
If an unlicensed person acts as a real estate salesperson, he or she will be guilty of ____ and will be penalized under the law.
Misdemeanor
472
Once escrow instructions are signed by all parties, there MAY/MAY NOT be any changes made to the instructions unless _____.
MAY NOT
Both buyers agree
473
Easton v. Strassburger
Held that a real estate broker employed by the seller must disclose facts materially affecting the value of the property if the broker should have known the facts through reasonable diligence.
474
John vs Mayer
Prohibit private racial discrimination in the sale and rental of property
475
Difference b/w North + South Escrow
*Time: north signs instructions 1-2d before close, south is at the start
*Fees: In north, buyer pays escrow. In south, it's split 50:50.
*Institution: in north, escrow is performed by title insurance companies. In south, it's independent escrow companies or financial instutions
476
Forge or sign the name of someone else or a fictitious person, without authority
PC 470, 473
477
Diversion of construction funds from their intended purpose
Using a false voucher to obtain construction loan funds
PC484b-c
478
Copying docs owned by a title company w/o permission and with intent to use them
PC496c
479
Unauthorized conversion of real estate into personal property and appropriation of the same
PC 487b-c
480
Removal of a structure from mortgaged RE or after a foreclosure sale, with intent to defraud or injure the purchaser
PC 502.5
481
Fraudulent appropriation of trust funds by a broker or other fiduciary
PC 506
481
Failure by debtor, upon sale of property, to pay the secured party the amount due under the security agreement (or the proceeds, whichever is less)
PC 504b
482
Obtaining property from another by threatening to accuse that person of a crime or expose secrets
PC 518, 519
483
Making or benefitting from falsification regarding anyone's financial info
PC 532a
484
Offering/giving parcels of RE with tickets of admission or at drawings
PC 532c
485
Giving a kickback of construction funds
PC 532e
486
Fraudulently selling the same land twice to different persons
PC 533
487
Willful concealment by a married person of the necessity for concurrence of a spouse in the sale or mortgaging of a property
PC 534
488
Any false statement by a license regarding the price, other accounting, quality or quantity of a property or other lies, is a misdemeanor
PC 536
489
Placement of advertising signs on public or private property w/o permission
PC 556-556.2
490
Bribery of a lender to obtain credit OR acceptance of such bribery
PC 639-639.a
491
Commercial bribery by a title insurance company, insurer, or controlled escrow company, or any employee of such companies pays (directly/indirectly) compensation/licensee who accepts such bribery
Penalty?
PC 641.4
$10k
492
Seller (w/o buyer's consent) under an unrecorded contract of sale encumbers land in an amt exceeding the present contract balance
CC 2985.2
493
While there is a payment due on an obligation secured by the land, a seller under a contract of sale appropriates a payment received from the buyer to any purpose except payment on that obligation
CC 2985.3
494
Failure by the seller under a contract of sale to apply to those purposes pro rata tax and insurance payments received from buyer
CC 2985.4
495
Defendant must receive a min. __________ notice before either the injunction or restraining order is granted
5 days
