CH 7

Question 1

Allocation of costs

Answer 1

Cost allocation is the process of identifying, aggregating, and assigning costs to cost objects. A cost object is any activity or item for which you want to separately measure costs. Examples of cost objects are a product, a research project, a customer, a sales region, and a department.

Question 2

CalHFA

Answer 2

CalHFA supports the needs of renters and homebuyers by providing financing and home loan programs that create safe, decent and affordable housing

Question 3

Buyers Choice Act

Answer 3

Legislation Protects Consumers Purchasing Foreclosed Properties. … AB 957, known as the Buyer’s Choice Act, prohibits sellers of so-called REO properties - typically foreclosed properties owned by banks - from requiring the buyer to use a particular title company, escrow settlement or other real estate service provider.

Question 4

Contingency Removal

Answer 4

The contingency removal date is the date defined in the offer when the buyer will remove contingencies and commit to a firm intent to close escrow. Standard contingencies in an offer to purchase real estate typically include the right to review title, inspect the property and review the sellers disclosure packet.

Question 5

Dispute Resolution

Answer 5

Dispute resolution generally refers to one of several different processes used to resolve disputes between parties, including negotiation, mediation, arbitration, collaborative law, and litigation.

Question 6

Liquidated damages

Answer 6

Liquidated damages (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).

Question 7

loan contingency

Answer 7

A loan contingency, also commonly known as a mortgage contingency is one of the standard contingencies in an offer to purchase real estate.

Question 8

Seller Financing

Answer 8

Seller financing is just what it sounds like: instead of the buyer getting a loan from the bank, the person selling the house lends the buyer the money for the purchase. The buyer and seller execute a promissory note providing an interest rate, repayment schedule and consequences of default.

Question 9

Real Estate agents role in sale transaction

Answer 9

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Question 10

Can a REB nominate a Escrow Holder as a conditional of a sale?

Answer 10

No.

Question 11

Before taking the CA RE Exam what must be done?

Answer 11

3 college level courses completed as specified by BRE. California Bureau of Real Estate (CalBRE)