Custom Quiz Definitions Flashcards
The maximum amount of commission and loan costs that may be charged for a second trust deed of $4,000 for a four-year term is A)$725. B) $850. C) $990. D) $550.
C) $990.
Under Article 7, the maximum commission and fee is:
$4,000 2nd T.D.
× 0.15 (15% of the principal of a loan of three years or more)
600 Maximum commission
+ 390 (5% or $390—whichever is greater)
$ 990 Maximum commission and fees
When is there a late charge permitted on a mortgage payment on a home? A) When 15 days late B) Right after the due date C) After 10 days beyond the due date D) On the 10th day
C) After 10 days beyond the due date
Alienation expresses a meaning most nearly opposite to A) acceleration. B) amortization. C) ad valorem. D) acquisition.
D) acquisition.
Acquisition is the act of acquiring; alienation is the act of transferring or conveying title.
Amenities of residential real estate are
A) not considered by appraisers because they are intangible qualities.
B) the property’s physical attributes.
C) measurable on the market.
D) related to its capacity to provide shelter effectively.
C) measurable on the market.
Which criterion would NOT be used to determine net income for an income property? A) Maintenance costs B) Mortgage interest C) Management fees D) Vacancies
B) Mortgage interest
Which word is most closely associated with the term rider? A) Accretion B) Amendment C) Person D) Lien
B) Amendment
A broker negotiated a loan for a client. The beneficiary did not specifically instruct the broker to record. The broker is obligated to record
A) before funds are disbursed.
B) immediately after funds are disbursed.
C) within 10 days of the date funds are disbursed.
D) at same time funds are disbursed.
A) before funds are disbursed.
An executed contract is a contract
A) to be rewritten.
B) under the jurisdiction of the probate court.
C) completed and fully performed by both parties.
D) signed, notarized, and recorded.
C) completed and fully performed by both parties.
An apartment house under construction has many prospective renters. The city now wants to widen the street. This change results in a 10% loss of renters. This loss would be an example of A) economic obsolescence. B) physical deterioration. C) functional obsolescence. D) physical obsolescence.
A) economic obsolescence.
The best definition of capitalization is
A) the result of dividing net income by a percentage rate of return to determine value.
B) the minimum rate of return on an investment.
C) the highest rate of return on an investment.
D) the relationship between value and net worth.
A) the result of dividing net income by a percentage rate of return to determine value.
The process of capitalization is “dividing net income by a percentage rate of return to determine value.” The capitalization rate is the relationship between value and net income, not net worth.
In comparing real estate investments to other types of investments, the turnover is
A) faster than other commodities.
B) faster than stocks.
C) slower than other investments.
D) slightly slower than an average of other investments.
C) slower than other investments.
Broker Wilson sells a house, and a loan for the buyer is secured through a savings and loan association. Wilson carefully explains all loan costs to the buyer. According to the Real Estate Settlement Procedures Act (RESPA), which statement is TRUE?
A) Broker Wilson would not have to provide an estimate of settlement costs to the buyer because he had explained all costs.
B) The lender must provide the buyer with an estimate of settlement costs within three days.
C) The lender must provide an estimate of settlement costs to the buyer immediately.
D) Broker Wilson must provide the buyer with an estimate of settlement costs within one week.
B) The lender must provide the buyer with an estimate of settlement costs within three days.
All of these people can sue for specific performance EXCEPT
A) a broker acting as the agent for the principal.
B) an attorney-in-fact acting for the principal.
C) the purchaser of a residential property.
D) the seller of a large tract of land.
A) a broker acting as the agent for the principal.
What would make a deed void?
A) Made to a fictitious grantee
B) Signature of grantor is spelled differently from the typed spelling on the deed
C) Grantee is not named but is sufficiently described
D) Grantor is set forth and has signed under a name not his own
A) Made to a fictitious grantee
Recording a deed A) raises presumption of delivery. B) gives actual notice. C) transfers title. D) insures possession.
A) raises presumption of delivery.
The state fiscal year falls between the dates A) July 1 to June 30, midnight. B) June 30 to July 1. C) January 1 to December 31. D) December 31 to January 1, midnight.
A) July 1 to June 30, midnight.
An executory contract is a
A) contract that is yet to be performed by one or both parties.
B) contract that has been fully performed.
C) written contract that cannot be altered by oral agreement.
D) contract with an executor of an estate.
A) contract that is yet to be performed by one or both parties.
An executory contract is one that is to be performed, as distinct from an executed contract, which has been fully performed.
A real estate agent’s license will be suspended when the real estate fund pays a judgment creditor of the agent and will not be reinstated until the agent
A) pays back the recovery account with interest.
B) pays the judgment creditor all funds that were not paid from the recovery account, plus interest.
C) reimburses the recovery account for one-half of all funds paid to the judgment creditor, plus interest.
D) pays the judgment creditor and the recovery account plus interest.
A) pays back the recovery account with interest.
The most important factor to a lender who is contemplating a loan to a developer of a shopping center would be the A) anchor tenant. B) number of tenants. C) long-term leases. D) credit of the purchaser.
A) anchor tenant.
In an advertisement, only the annual percentage rate is mentioned. What else must also be disclosed in the ad? A) Amount of loan B) Amount of down payment required C) Monthly payments required D) No further disclosures necessary
D) No further disclosures necessary
In the matter of a broker’s commission to be paid by a seller, which statement is TRUE?
A) A listing agreement signed only by the seller is unenforceable.
B) Action for the broker’s commission must be brought within four years of earning the commission.
C) The seller and buyer may rescind sale, thus relieving the seller of the obligation to pay the broker’s commission.
D) The broker’s commission earned but not paid creates a lien on the seller’s property.
B) Action for the broker’s commission must be brought within four years of earning the commission.
Under the Real Estate Settlement Procedures Act (RESPA) lenders are required to give borrowers
A) an invoice not exceeding $10 for the special information booklet.
B) a good-faith estimate.
C) a bill of sale.
D) the amount of mortgage interest.
B) a good-faith estimate.
RESPA requires the lender to furnish the borrower the following two items by delivering them in person or placing them in the mail not later than three business days after the application of the borrower is received: (1) a Special Information Booklet prepared or approved by HUD that explains settlement costs; and (2) a good-faith estimate of the settlement costs.
A broker who is not authorized to accept deposits in his listing agreement must inform the offeror that
A) no deposits will be accepted.
B) it is implied by law that if authorized by the seller, deposits can be accepted.
C) the risk of loss lies solely with the buyer. The seller will not be liable in event of loss of the deposit.
D) an agent must accept all deposits.
C) the risk of loss lies solely with the buyer. The seller will not be liable in event of loss of the deposit.
An agent who accepts a deposit from a buyer, even though not authorized by the seller to do so, acts as an agent of the buyer as to the handling of that deposit. Since the seller would not be liable in the event of loss of the deposit, the buyer should be so informed.
Williams owned 40 acres of land in 1955, which she subdivided into 65 lots and placed a restriction in each deed that said these lots may “not be sold to non-Caucasians.” This restriction is
A) none of these.
B) unenforceable through court action because it is a violation of the U.S. Constitution.
C) valid until Williams died.
D) prohibited by local, state, and federal statutes and regulations of all real estate commissions.
B) unenforceable through court action because it is a violation of the U.S. Constitution.
Restrictions prohibiting the use of property on the basis of race, color, sex, religion, ancestry, or national origin are unenforceable because enforcement undertaken by the state would violate the 14th Amendment of the U.S. Constitution. Even if there is some area where they are not specifically prohibited, they are still unenforceable.
A lease for a period of years that is held by the lessor is an example of A) none of these. B) freehold estate. C) real property. D) personal property.
D) personal property.
While in fact the lessor (landlord) has a freehold estate on the property, she has given a tenant the right to possess the property for a period of time using an instrument called a lease. This lease is a piece of paper and it is the personal property of the landlord (lessor).
An agreement with a lender that prohibits early payoff of a loan is known as a(n) A) exculpatory clause. B) lock-in clause. C) open-end mortgage. D) prepayment penalty.
B) lock-in clause.
