Deck 2

Question 1

How long to file complaint with Unruh?

Answer 1

1 year of the alleged discrimination

Question 2

How long to file complaint for Fair Housing enforcment?

Answer 2

2 years

Question 3

how soon to deposit trust funds?

Answer 3

3 days

Question 4

When to disclose agency relationships?

Answer 4

• The listing agent must provide the disclosure to the seller prior to securing the listing agreement.
• The selling agent must provide the disclosure to the seller “as soon as practicable” prior to presenting a
  purchase offer.
• The selling agent must provide the disclosure to the buyer “as soon as practicable” prior to the execution
  of the buyer’s offer to purchase.

Question 5

The Truth in Lending Act

Answer 5

The Truth in Lending Act requires a creditor to furnish certain disclosures to the consumer before making a contract for a loan. Allows the consumer the right to rescind. - 1968

Question 6

Housing Financial Discrimination Act

Answer 6

Prohibits redlining
(Holden Act). At the time of the loan application, lenders must
notify all prospective borrowers of their rights under the Holden Act and its prohibitions against discriminatory practices by lenders.

Question 7

Notice of Adverse Action

Answer 7

(Equal Credit Opportunity Act): A lender or creditor who denies an application
for credit must provide the applicant with a statement of reasons within 30 days after receiving
the completed loan application.

Question 8

Exclusive-Authorization-and-Right-To-Sell (Seller)

Answer 8

Broker has the exclusive right to market the property for a specified period of time.
* If the property sells while the broker has the listing, the seller must pay the agreed upon
commission, regardless of who actually procured the buyer.
* All exclusive listing contracts must contain a definite termination date.

Question 9

Liquidated Damages

Answer 9

Buyer agrees to pay the seller if the buyer breaches the contract. Both buyers and sellers must initial this section for it to apply.

Question 10

Paragraph 28 - Joint Escrow Instructions to the Escrow Holder

Answer 10

Subparagraph B states the parties will deliver the agreement to the escrow within 3 business days unless specified otherwise.
* Subparagraph D provides that the buyer or seller will provide the escrow holder with a copy of any amendments to the agreement within 2 business days after the amendment is executed.

Question 11

VA Loans

Answer 11

Available to eligible veterans and their spouses. A VA loan is guaranteed. The VA does not loan the
money directly (usually) and the guarantee provides added security for the lender.
A VA loan can be used to purchase, build and improve a home.
In most cases, no down payment is required. The VA guarantees both fixed-rate and adjustable rate loans.
 Interest rates are negotiable between the lender and the borrower.
 There is no monthly mortgage insurance premium to pay.
 Any discount points charged can be paid by either the veteran or the seller.
 The loan can be prepaid without a penalty.
VA loans are assumable - the original veteran borrower is still liable for the repayment of the loan unless the VA approves a release of liability (does not release the veteran’s liability to the lender).
A veteran must apply to the VA for a certificate of eligibility to determine the eligible status and to determine the amount of the loan the VA will guarantee.
The VA requires an appraisal of the property and then issues a certificate of reasonable value (CRV).

Question 12

FHA-Insured Loans

Answer 12

The FHA, overseen by HUD, provides low down-payment loans (high loan-to-value ratio loans) to
qualified buyers.
FHA does not build homes or loan money directly. They insure loans made by approved lending institutions.
 FHA loans can be either fixed-rate loans or one-year-adjustable loans.
 The borrower must have cash for a down payment and closing costs.
 The borrower is charged a percentage of the loan as a premium for the insurance.
 The lender can charge points, and either the borrower or the seller (or both) can pay them.

Question 13

mortgagor

Answer 13

The borrower

Question 14

mortgagee

Answer 14

the lender

Question 15

Truth in Lending and Regulation Z

Answer 15

The Truth in Lending Act is implemented by Regulation Z - requires lenders to disclose to buyers the true cost of obtaining credit, so that borrowers can compare the costs of various lenders Applies to all loans that are secured by a residence. It does not apply to commercial loans/agricultural loans over $25,000.

Question 16

Real Estate Settlement Procedures Act (RESPA)

Answer 16

Attempts to standardize settlement practices and to ensure that both buyers and sellers understand the costs involved in closing the transaction.
Applies to residential real estate purchases that will be financed by first mortgage loans. RESPA prohibits lenders from paying kickbacks and unearned fees to parties who may have referred the borrower to the lender

Question 17

California Department of Real Estate

Answer 17

The regulatory agency responsible for real estate licensing and regulation is the California Department of Real Estate, also known as the DRE. The main purpose of the DRE is to protect the public. The DRE achieves this purpose through the enactment and enforcement of laws relating to real estate and by establishing requirements for the real estate salespersons’ and brokers’ licenses.

Question 18

The California Land Title Association

Answer 18

standard coverage

Question 19

The American Land Title Association

Answer 19

extended coverage

Question 20

Order of Deed and Trust Conveyance

Answer 20

1. Deed of reconveyance – The deed of reconveyance is provided by the seller’s lender (trustee) giving the seller ownership of the property.
2. Grant deed – The grant deed transfers title from the seller to the buyer.
3. Deed of Trust – The deed of trust transfer’s title from the buyer to the buyer’s lender.

Question 21

how many days to deliver closing disclosure?

Answer 21

3 business days prior to closing

Question 22

how many days to deliver loan estimate

Answer 22

within 3 business days of loan application

Question 23

straight note

Answer 23

interest only

Question 24

who is trustor, trustee and beneficiary in trust deed?

Answer 24

trustor - borrower
trustee - 3rd party
beneficiary - lender

Question 25

deficiency judgment

Answer 25

Any outstanding debt remaining after foreclosure and sale of a property is known as a deficiency judgment.

Question 26

primary method of foreclosure in California

Answer 26

non-judicial foreclosure

Question 27

Regulation Z

Answer 27

The Truth in Lending Act, Title I of the Consumer Credit Protection Act, is implemented by Regulation Z. This law requires lenders to disclose to buyers the true cost of obtaining credit, so that borrowers can compare the costs of various lenders.

Question 28

Exculpatory Clause

Answer 28

This clause is inserted in a financing document when the lender agrees to waive the right to a deficiency judgment.

Question 29

novation

Answer 29

Whether a buyer assumes a loan or purchases “subject to” the existing loan, the seller is still the person primarily responsible to the lender until the note is fully paid. For the seller to “get off the hook,” the buyer must go through a process of full substitution, called novation.

Question 30

2 most popular types of encumberance

Answer 30

easement
lien

Question 31

writ of execution

Answer 31

A writ of execution is an order to force the sale of property and collect the debt. This is a separate lien on the property for one year that takes priority over other judgment liens.

Question 32

alienation

Answer 32

Transfer of title to real estate

Question 33

the most used deed to transfer real property in California

Answer 33

A grant deed is the most used deed to transfer real property in California. The grant deed form plus a policy of title insurance is usually all that is needed to transfer property. The grant deed includes two implied warranties:
1. The grantor has not previously conveyed title to the property to another person
2. The property is free of any encumbrances except those the grantee already knows about.

Question 34

referee’s deed

Answer 34

used in bankruptcies and foreclosures.

Question 35

quitclaim deed

Answer 35

A quitclaim deed transfers real and potential interests in a property, whether an interest is known to exist or not. The grantor makes no claim to any interest in the property being conveyed and offers no warrants to protect the grantee.

Question 36

escheats

Answer 36

If an intestate decedent has no heirs, the estate escheats, or reverts, to the state or county after all claims and debts have been validated and settled. Intestate proceedings and escheats are types of involuntary transfers.

Question 37

quiet title suit

Answer 37

If a party responsible for encumbering a title refuses to quitclaim the interest, the owner may file a quiet title suit for the court to remove the cloud by decree.

Question 38

Estoppel

Answer 38

Estoppel prevents a person from claiming a right or interest that is inconsistent with the person’s previous statements or acts.

Question 39

Constructive notice

Answer 39

Constructive notice, or legal notice, is knowledge of a fact that a person could have or should have obtained. The foremost method of imparting constructive notice is by recordation of ownership documents in public records, specifically, title records.