Deck 6 Flashcards
A telephone company places poles and strings wire across privately owned land. This would be an example of a(n):
This would be an example of an easement in gross, which is an encumbrance.
: If Walter, a real estate agent, fails to perform the due diligence to verify a seller’s information, Walter can be held responsible for:
Misrepresentation
Which of the following CANNOT be defined as escrow monies?
Personal bonds
In some cases of eminent domain where the remaining land is reduced in value, the owner may be able to receive:
Severance damages
There are many differences between trust deeds and mortgages. The main difference is:
redemption… The period of redemption for a mortgage is one year after a court foreclosure. None allowed on trust deed.
Which of the following statements of fact best matches the term “patent?”
Contract of conveyance…A patent is the document used by the government to transfer (or convey) title to land instead of using a deed.
Which of these would have the most percentage of their funds invested in real estate mortgages?
: Savings and loan associations place the most percentage of their funds into real estate loans.
What special type of ownership is available in most non-community property states and is only available to married persons?
Tenancy by the entirety is available in most non-community property states and is automatically the assumed form of ownership when a couple purchases real estate together unless they opt for another form.
What happens if the principal is incapacitated or suffers death according to the laws of agency?
The agency is terminated
Physical obsolescence is defined by:
Physical obsolescence is defined by the loss in value due to physical depreciation or gross mismanagement. Physical obsolescence happens when maintenance requirements are ignored and the property physically degrades to a point where it has no desirability. It is NOT caused by normal wear and tear.
According to the EPA, real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant is called:
brownfields
: Hoover obtains permission from governmental authorities to build a structure and create a use that is currently prohibited by zoning laws. This is known as:
spot zoning or a variance.
Common law refers to
An unwritten body of law based on general custom in England and used in some states to a certain degree
In regards to closing costs, they can be:
Both Non-recurring and pre-paids
The FHA uses what to pay lenders, within the limits, resulting from foreclosure?
Mutual Mortgage Insurance
Negligent care of a building is called:
deferred maintenance.
When Renata pays her mortgage payment, she is always on time. This month, she is having trouble with her finances and is more than 30 days late on her first mortgage. This mortgage is now considered to be:
In Default
“Laches” deals with which of the following?
Unnecessary delay
The existence of an easement appurtenant requires all of the following except:
The dominant and servient tenements do not have to be joined at their borders.
If someone is referring to zoning regulations, they are referring to instances of:
police power
: For an option to be valid, the consideration:
can be less than $10.00 but must actually pass.
Which instrument is most valuable to a buyer who may fall on temporary hard times or default on payments?
mortgage - Mortgage would give the buyer more time to redeem himself.
What is the difference between MIP and PMI?
PMI insures conventional mortgages, and MIP insures FHA loans
Specializations in the field of real estate include:
Property Management, Appraisal, Financing
A reverse annuity mortgage is also called a:
Home equity conversion mortgage
With respect to deeds:
a recorded deed is presumed delivered and accepted.
A corporation holds title in the name of its:
charter
A commitment from a lender to the borrower or other mortgage originator guaranteeing a specific rate for a specific time at a specific cost is called:
rate lock
A property report that contains pertinent information about the subdivision and discloses to the prospective buyer that he or she has a minimum of 7 days in which to rescind the purchase agreement is required under
The Interstate Land Sales Full Disclosure Act
When a borrowed amount is remaining or unpaid as well as the portion of the monthly payment that reduces the remaining balance, this is called:
The principal
A negligent or intentional wrongful act arising from breach of duty created by law and not contract is a:
tort
You are a subdivider and want to build a community apartment project or a condominium. You would comply with the Real Estate Commissioner’s regulations when you plan to build how many units?
The Commissioner regulates subdivisions of five or more units.
Demand is one of the four elements of value. In order for demand to be effective, it must be implemented by:
purchasing power
A non-conforming loan is a loan amount over:
$726,200
A clause that states a lender may demand the loan amount plus accrued interest in the event of a sale is called:
alienation
When a home buyer leases a property with an option to buy, this would be an alternative financing option called a:
lease option
The square footage of a single family residence for appraisal purposes is computed by obtaining the:
outside measurement of the house only.
A hard money loan is:
Hard money loans are given to existing owners of real property for any purpose other than buying real property. Usually considered a personal loan.
A public official that keeps public records of real property transactions in their county is called:
A recorder
The largest loans would most likely be made by a(n):
insurance company
Under the Bulk Sales Law, the minimum time to close the sale after the publication of notice of sale is:
12 business days
Instead of refinancing a mortgage, sometimes a lender will agree to do this instead:
modification
Who benefits when there is a subordination clause in a trust deed?
Trustor - This enables the trustor to subsequently borrow money on the property giving a first trust deed as security for the loan, the previous trust deed then being subordinated to second position.
Gerald, who is a 17-year-old minor, wishes to purchase a home. This can be done legally when:
buying a home under the Cal-Vet program.
A charge imposed on real property is called:
a lien
