Chapter 14 Flashcards
Which category of topics accounts for the most number of questions on the State exam…..?
A. Practice of real estate and disclosures
B Contracts
C. Financing
D. Law of Agency and fiduciary duties
A. Practice of Real Estate and Disclosure
This is an item of personal property that has been attached to real property…..?
A. Easement
B. Lien
C. Fixture
D. Appurtenance
C. Fixture
Residential property includes how many dwelling units….?
A. 1-4 dwellings
B. 5-9 dwellings
C. 10+. dwellings
D. All of the above
A. 1-4 Units
Stages of a Single Family Residence Sale
- Decides to Sell Home
- Obtain a Real Estate Professional
Note: Have all the owners together - Go to the home with he Broker and the Sellers to give a listing presentation to include: Broker info, your info, marketing plan, Comparative Market Analysis (CMA), knowledge of the area, collectively come together with a listing price.
- Seller decides to go with you and your Broker
- Sellers do the agent listing form
- DEC - Disclosure Form - Have the sellers complete the Disclose and Elect Form
- List the home on MLS within 24 hours the home is listed
- Buyers make an offer (Purchase Agreement)
- Seller/ Lister Agent - Counter Offer #1
- Buyer/Buyer Agent - Counter Offer #2
- Come to an agreement and except the offer
- Open an Escrow and it’s sellers choice - contact Escrow company and let them know there is a sale - you will then give them the Purchase agreement / Counters/ purchase contract which creates Escrow instructions (sent to the buyer and seller) - will include timing from each individual with a transfer document
- Buyer deposits a sum of money of good faith (not to exceed 3%) into escrow.
- Seller Duties - Disclosure of Material Fact - Transfer of Marketable and Insurable Title - Physical Possession - Recordation of a Grant Deed
- Buyer Duties - Obtain the Loan - Deposit - Home Inspection - Termite Report/Inspection - Appraisal -
- Removes Contingencies -
- Funds are sent to the Escrow company
18 Transfer Physical Possession - Official Close of Excrow
The rights of a land owner or land occupier to use flowing water (such as a river). that is adjacent to the land are known as….?
A. Air Rights
B. Riparian Rights
C. Mineral Rights
D. Littoral Rights
B. Riparian Rights
A common-law doctrine that makes an employer liable for the actions of an employee when the actions take place within the scope of employment is known as ……?
a. Agency Liability
B. Respondeat Superior
C. Privity
D. Independent Contractor
B. Respondeat Superior
A person who acts for another but who sells final results and whose methods are achieving those results are not subject to the control of another is referred to as a ….?
A. Client
B. Principal
C. Employee
D. Indépendant Contractor
D. Indépendant Contractor
The commission owed to the broker in a transaction is determined in the document …..?
A . Listing Agreement
B. Express Agency From
C. Agency Disclosure Form
D. Deed
A. Listing Agreement
The duty owned by an agent to act in the highest good faith toward the principal and not to obtained any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure, is known as….?
A. Fiduciary Duty
B. Broker Duty
C. Agency Duty
D. All the above
A. Fiduciary Duty
The authority to act for another person in specified or all legal or financial matters is known as…..?
A. Trustor
B. Agent
C. Power of Attorney
D. Partner
C. Power of Attorney
Which the following is an approach used by appraisers to value property….?
A. Cost Approach
B. Income Approach
C. Sales Comparison Approach
D. All of the Above
D. All of the Above
This is an appraisal phrase meaning that use which, at the time of an appraisal, inmost likely to produce the greatest net return to the land and/or buildings over a given period of time…..?
A. Conformity
B. Highest and Best Use
C. Contribution
D. Supply and Demand
B. Highest and Best Use
This refers to when a property is “over improved” relative to other surrounding properties int he area that are of lesser value…?
A. Law of Regression
B. Law of Conformity
C. Law of Progression
D. Law of Substitution
A. Law of Regression
This is an item of removable personal property that a Tennant attached to leased land for business purpose…?
A. Trade Fixture
B. Feature
C. Appurtenance
D. Fixture
A. Trade Fixture
What are the 7 Subjects of Concentration on the Test?
Property of Ownership, Lands Use Controls and Evaluations - 15%
Law of Agency and Fudiciary Duties - 17%
Property Evaluation and Financial Analysis 14%
Financing - 9%
Transfer of Property 8%
Practice of Real Estate and Disclosures, including Speciality areas - 25%
Contracts - 12%
Property of Ownership, Lands Use Controls and Evaluations - 15%
Characteristics of Property -
Real Property vs Personal Property
Real Estate and the Bundle of Rights. (Posses, Use, Encumber (Lean or Easement), Dispose and Exclude Others)
Fixtures - Personal Property vs Trade Property
Types of Ownership (Sole Ownership or Co-Ownership (Joint Tenancy)) - Right of Survivorship
This refers to “under-improved” properties surrounded by properties of greater value…?
A. Law of Conformity
B. Law of Regression
C. Law of Substitution
D. Law of Progression
D. Law of Progression
This principle affirms that value is created by anticipated benefits to be derived in the future……?
A. Principle of Change
B. Principle of Conformity
C. Principle of Anticipation
D. Principle of Substitution
C. Principle of Anticipation
This principle affirms that value is created when properties tend to be similar in a particular neighborhood…..?
A. Principle of Change
B. Principle of Conformity
C. Principle of Anticipation
D. Principle of Substitution
B. Principle of Conformity
The supply of willing and able buyers in the marketplace or lack thereof is referred to as….?
A. Demand
B. Scarcity
C. Utility
D. Supply
A. Demand
The ability to give satisfaction and/or excite desire for possession is known as…?
A. Supply and Demand
B. Conformity
c. Utility
D. Highest and Best Use
C. Utility
Law of Agency and fiduciary Duties - 17%
Police Power - Zoning - Building Codes
Eminent Domain
Zoning Reflect Population Density
Conforming and Non-Conforming Use
Litoral - non flowing body of water/ Lake or Ocean
2 Licenses in California - Sales and Broker Licenses
Agency Relationship - Respondant Superior, Independent Contractor (taxes only)
Client (Principal)
DEC - Disclose Elect Confirm
This is a contract whereby a mortgagor agrees to use real property as security for the repayment of debt…..?
A. Mortgage
B. Promissory Note
C. Deed
D. Security Agreement
A. Mortgage
The marketplace whereby loans are originated is referred to as the ….?
A. Primary Mortgage Market
B. Secondary Mortgage Market
C. Institutional Market
D. All of the Above
A. Primary Mortgage Market
The marketplace whereby the loans were originated in the primary mortgage market are bought and sold is known as the ….?
A. Institutional Market
B. Secondary Mortgage Market
C. Commercial Loan Market
D. All of the Above
B. Secondary Mortgage Market
A broker who arranges a mortgage loan between a lender and a borrower for a fee is referred to as a …..?
A. Real Estate Broker
B. Banker
C. Underwriter
D. Mortgage Broker
D. Mortgage Broker
A loan whereby there is no government participation or cooperation is known as a….?
A. Conventional Loan
B. Insured Loan
C. Unconventional Loan
D. Premium Loan
A. Conventional Loan
Property Evaluation and Financial Analysis 14%
Appraisal is an opinion of value
TheMarket - Determines what is worth - Objective value what a willing seller will sell it for and what a buyer would buy it for.
Estimate Value : Sales Comparisons, Cost Approach, Income Approach - (Rent income)
Principles of Appraisals (Substitution, anticipation, highest and best use, contribution, Income)
That which is immovable, including land, things affixed to land, and appurtenances is known as….?
A. Bundle of Rights
B. Real Property
C. Personal Property
D. Fixture
B. Real Property
The rights, or interests, that an individual has in a particular piece of property are referred to as…?
A Bundle of Rights
B. Appurtenance
C. Encumbrance
D. Reversion
A. Bundle of Rights
All property that is not considered to be real property is known as…..?
A. Real Estate
B. Land
C. Fixture
D. Personal Property
D. Personal Property
Which of the following is considered a formal description of property….?
A.. Government Survey
B. Metes and Bounds
C. Lot and Block
D. All of the Above
D. All of Above
1 mile is equal to how many linear feet….?
A. 2550
B. 2850
C. 5280
D. 5580
C. 5280
1 Acre is equal to how many square feet….?
A. 10,000
B. 23,560
C. 32.86
D. 43,560
D. 43,560
Zoning is an example of police power….?
A. T
B. F
A. True
