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Real Estate Principles > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

Pre-approval

A

A step above pre-qualification, it involves verifying a purchaser’s credit, down payment, and employment history.

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2
Q

Listing Agent

A

The individual who enters into a listing contract with a principal.

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3
Q

Selling Agent

A

The individual who finds the buyer (or seller) for the property.

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4
Q

Resident Manager

A

An individual who supervises the care of an apartment complex while living in one of the units in the complex.

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5
Q

Mobile Home

A

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.

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6
Q

Special Assessment

A

A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks, and street improvements.

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7
Q

Documentary Transfer Tax

A

A State enabling Act that allows a country to adopt a documentary transfer tax to apply on all transfers of real property located in the county. Notice of payment is entered on the face of the deed or on a separate paper filed with the deed.

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8
Q

Ordinary Income

A

Income earned from providing services or the sale of goods (inventory).

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9
Q

Capital Gain

A

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value). Used for income tax computations. Gains are called short or long term based upon length of holding period after acquisition. Usually taxed at lower rates than ordinary income.

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10
Q

In the mortgage industry, this is a step above pre-qualification, it involves verifying a purchaser’s credit, down payment, and employment history….?

A

Pre-approval

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11
Q

The individual who enters into a listing contract with a principal is known as the…?

A

Listing Agent

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12
Q

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system is known as a…?

A

Mobile Home

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13
Q

Who is authorized to advertise a mobile home as new…?

A

Mobile Home Dealer

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14
Q

A real estate broker can only sell a mobile home if they have been registered with…?

A

Housing and Community Development

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15
Q

A real estate broker cannot have 2 or more mobile homes offered for sale without first having a…?

A

Mobile Home Dealer’s License

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16
Q

A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks, and street improvements is known as a…?

A

Special Assessment

17
Q

Taxation is a manifestation of…?

A

Police Power

18
Q

According to this, State property taxes are limited to 1% of the fair market value…?

A

Proposition 13

19
Q

Properties in California are assessed at which of the following events…?

A

Purchase or sale of property

20
Q

A property will be sold at a tax sale if property taxes are not paid for how many years…?

A

5

21
Q

The 1st installment of property taxes are due on…?

A

November 1st

22
Q

The individual who finds the buyer (or seller) for the property is referred to as the…?

A

Selling Agent

23
Q

The 2nd installment of property taxes are due on…?

A

February 1st

24
Q

Income earned from providing services or the sale of goods (inventory) is known as…?

A

Ordinary Income

25
Q

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value) is referred to as…?

A

Capital Gain

26
Q

Capital gains are typically taxed at a lower rate than ordinary income…?

A

T (True)

27
Q

Capital gains is 15% for high earners…?

A

F (False)

28
Q

An owner is exempt from paying capital gains on up to how much profit on an owner-occupied residence, if he or she has lived there for at least 2 of the previous 5 years…?

A

250000

29
Q

A married couple are exempt from paying capital gains up to how much profit on an owner-occupied residence, if they lived there for at least 2 of the previous 5 years…?

A

500000

30
Q

How long does an individual have to identify another property in order to take advantage of a 1031 exchange…?

A

45 days

31
Q

How long does an individual have to close on another property in order to take advantage of a 1031 exchange…?

A

180 days

32
Q

In order to execute a 1031 exchange, a qualified intermediary must be used…?

A

T (True)

33
Q

The listing agent can also be the selling agent…?

A

T (True)

34
Q

A commission is owed to the agent only after the transaction closes…?

A

F (False)

35
Q

Disclosure to the client must be executed prior to signing the listing agreement…?

A

T (True)

36
Q

An individual who supervises the care of an apartment complex while living in one of the units in the complex is known as a…?

A

Resident Manager

37
Q

Resident managers are required to hold a real estate license in the State of California…?

A

F (False)

38
Q

In California, resident managers are required in buildings with at least how many dwelling units…?

A

16

39
Q

In the Property Management Agreement, who is the agent…?

A

Property Manager

Real Estate Principles (14 decks)

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