Deck 4

Question 1

Which of the following appraisal approaches would tend to set the upper limits of value?

Answer 1

Cost approach

Question 2

: Buyer gives seller a purchase money second trust deed and note. Shortly afterward, buyer defaults in payments on the second trust deed. Seller can, in due course, bring court action and secure against buyer

Answer 2

No deficiency judgment on a purchase money encumbrance.

Question 3

This limits the amount the interest rate can increase or decrease over the life of the mortgage:

Answer 3

A life cap limits the amount of change the interest rate can fluctuate over the life of a mortgage.

Question 4

If an object is attached to real property and later becomes detached from said real property to become personal property, what is this called?

Answer 4

Severance

Question 5

Mortgage warehousing makes reference to which of the following?

Answer 5

Mortgage portfolios

Question 6

If a church, school, or hospital wishes to relocate to an area zoned exclusively for residential use, they could do so by:

Answer 6

Conditional use is reserved for exceptions in the zoning laws that allow for special uses such as for churches, schools, and hospitals.

Question 7

The economic characteristics of land are:

Answer 7

The economic characteristics of land are scarcity, fixity, modification, and situs.

Question 8

: What are the two categories of “closing costs”?

Answer 8

“Non-recurring” and “pre-paid”

Question 9

A property is in the process of foreclosure. If selling under the power of sale clause of a trust deed, the trustee must wait 3 months before:

Answer 9

Foreclosure on a Trust Deed by (non-judicial) Trustee’s Sale proceeds as follows:
1) The lender (beneficiary) notifies the borrower (trustor) of default and requests the trustee to record a notice of default;

2) Anyone recording a Request for Notice must be notified of the default;

3) The trustee must wait at least three months after recording the notice of default before advertising the trustee sale.;

4) The trustee advertises a Notice of Sale once a week for three weeks (21 days) and posts a notice of sale on the property; and

5) The trustee holds the sale and issues a trustee’s deed to the highest bidder.

Question 10

What causes the real estate market to be considered “inflexible”?

Answer 10

The immobility of land as well as the time required to develop new properties

Question 11

Mr. Noro bought a property using a purchase money trust deed. A few years later he sold the property to Ms. Hassen for all cash. Which of the following would not be disclosed by the public records?

Answer 11

Since Ms. Hassen paid all cash for the property, there would be no need for a reconveyance deed to Ms. Hassen. Therefore, it would not appear on public records.

Question 12

: An estate can be best described as:

Answer 12

The best definition for an estate in this case is the sum total of all the real and personal property owned by an individual at the time of death. Remember, sometimes the correct answer is the “most correct” answer even if some answer choices could also be correct.

Question 13

Most trust deeds contain several clauses of:

Answer 13

Acceleration means that if a buyer cannot make payments on a note, the lender has the right to declare the entire sum due and payable immediately. Most trust deeds contain several clauses related to acceleration.

Question 14

: One joint tenant may dispose of her interest by all of the following, except by…

Answer 14

will

Question 15

A joint tenant can do which of the following regarding his interest in real property?

Answer 15

There is only one thing a joint tenant cannot do with his interest. That is will it.

Question 16

Buyer Smith agrees to pay $25,000 down for the purchase of seller Jones’s home. Smith also agrees to assume the existing note and first trust deed of $120,000. The assumed loan on Jones’ closing statement would appear as a:

Answer 16

The question asks about the SELLER’S closing statement. A loan assumption is a debit to a seller (deducted from sale proceeds).

Question 17

In what form of ownership would you look to an individual’s personal assets?

Answer 17

Partnership

Question 18

: If an “as-is” clause is inserted into the sales contract for a property that seems to be generally okay on the outside and inside, this would be:

Answer 18

Disallowed

Question 19

In California, one way to clear a cloud on a title is to:

Answer 19

In California, one way to clear a cloud on a title is to institute a quiet title action. Another way is to obtain a quitclaim deed from the debtor if possible.

Question 20

: If a church, school, or hospital wishes to relocate to an area zoned exclusively for residential use, they could do so by:

Answer 20

Conditional use is reserved for exceptions in the zoning laws that allow for special uses such as for churches, schools, and hospitals.

Question 21

: Ms. Simon purchased a new home. The risk of loss due to vandalism or for damage by fire passes to Ms. Simon:

Answer 21

upon agreement.

Question 22

: The seizing of property by the sheriff to be held as a security for a legal action is known as a(n):

Answer 22

Attachment

Question 23

An appurtenant easement is:

Answer 23

capable of being transferred.

Question 24

The receipt for a Subdivision Final Public Report must be kept on file by the subdivider or his agent for a minimum of:

Answer 24

3 years

Question 25

Bulk transfer is found in the ____ code

Answer 25

Uniform Commercial Code

Question 26

: The authority given by law for a creditor to obtain a charge or a debt from a debtor is in the broadest sense of the term a:

Answer 26

The authority given by law or by court action is a judgment. An attachment, when allowed, is received prior to the judgment. When a judgment is recorded, it becomes a lien.

Question 27

Which of the following is not necessary in a homestead declaration?

Answer 27

Length of residence is not required

REQUIRED:
Residing on premises
Name of spouse, if any
Location or description of property

Question 28

Sam paid $310,000 for an income property. His tax bill showed the assessments to be as follows: Land $20,120, improvements $37,200. In arriving at a figure to be used for depreciation for income tax purposes, he used his assessment figures as a basis. Which of the following most nearly reflects the depreciable amount:

Answer 28

$20,120 (land) + $37,200 (improvement) = $57,320. $37,200 divided by $57,320 = 65% improvement. $310,000 x 65% = $201,500. Land is not depreciable for tax purposes.

Question 29

A title plant refers to the records of property in a

Answer 29

county

Question 30

: In what form of ownership would you look to an individual’s personal assets?

Answer 30

partnership

Question 31

What Is The Alienation Clause In Real Estate?

Answer 31

An alienation clause, also known as a due-on-sale clause, is a real estate agreement that requires a borrower to pay the remainder of their mortgage loan balance off immediately during the sale or transfer of a property title and before a new buyer can take ownership.

Question 32

A broker has an option to purchase in an agreement which also employs the broker to sell the parcel of real property and to obtain a commission from the sale. Before the broker can legally exercise the option, he must:

Answer 32

obtain the written consent of the seller.

Question 33

A deposit that is given to a broker from an interested buyer that has had all deposit receipt conditions fulfilled should be given to whom if the buyer decides to back out?

Answer 33

The seller

Question 34

Origination fees on loans typically apply to these types of loans:

Answer 34

Government and conventional loans

Question 35

A real estate salesperson is responsible to his broker as:

Answer 35

As far as the Real Estate Law is concerned, a salesperson is an employee or independent contractor of the broker.

Question 36

A(n) ____________ is a person who is an innocent purchaser of a negotiable note without knowledge of any defect:

Answer 36

holder in due course

Question 37

The opposite of alienate is:

Answer 37

acquisition

Question 38

Four elements of value

Answer 38

“DUST” utility, scarcity, demand (together with financial ability to purchase), and transferability