Deck 6

Question 1

A telephone company places poles and strings wire across privately owned land. This would be an example of a(n):

Answer 1

This would be an example of an easement in gross, which is an encumbrance.

Question 2

: If Walter, a real estate agent, fails to perform the due diligence to verify a seller’s information, Walter can be held responsible for:

Answer 2

Misrepresentation

Question 3

Which of the following CANNOT be defined as escrow monies?

Answer 3

Personal bonds

Question 4

In some cases of eminent domain where the remaining land is reduced in value, the owner may be able to receive:

Answer 4

Severance damages

Question 5

There are many differences between trust deeds and mortgages. The main difference is:

Answer 5

redemption… The period of redemption for a mortgage is one year after a court foreclosure. None allowed on trust deed.

Question 6

Which of the following statements of fact best matches the term “patent?”

Answer 6

Contract of conveyance…A patent is the document used by the government to transfer (or convey) title to land instead of using a deed.

Question 7

Which of these would have the most percentage of their funds invested in real estate mortgages?

Answer 7

: Savings and loan associations place the most percentage of their funds into real estate loans.

Question 8

What special type of ownership is available in most non-community property states and is only available to married persons?

Answer 8

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.

Question 9

What happens if the principal is incapacitated or suffers death according to the laws of agency?

Answer 9

The agency is terminated

Question 10

Physical obsolescence is defined by:

Answer 10

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.

Question 11

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:

Answer 11

brownfields

Question 12

: 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:

Answer 12

spot zoning or a variance.

Question 13

Common law refers to

Answer 13

An unwritten body of law based on general custom in England and used in some states to a certain degree

Question 14

In regards to closing costs, they can be:

Answer 14

Both Non-recurring and pre-paids

Question 15

The FHA uses what to pay lenders, within the limits, resulting from foreclosure?

Answer 15

Mutual Mortgage Insurance

Question 16

Negligent care of a building is called:

Answer 16

deferred maintenance.

Question 17

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:

Answer 17

In Default

Question 18

“Laches” deals with which of the following?

Answer 18

Unnecessary delay

Question 19

The existence of an easement appurtenant requires all of the following except:

Answer 19

The dominant and servient tenements do not have to be joined at their borders.

Question 20

If someone is referring to zoning regulations, they are referring to instances of:

Answer 20

police power

Question 21

: For an option to be valid, the consideration:

Answer 21

can be less than $10.00 but must actually pass.

Question 22

Which instrument is most valuable to a buyer who may fall on temporary hard times or default on payments?

Answer 22

mortgage - Mortgage would give the buyer more time to redeem himself.

Question 23

What is the difference between MIP and PMI?

Answer 23

PMI insures conventional mortgages, and MIP insures FHA loans

Question 24

Specializations in the field of real estate include:

Answer 24

Property Management, Appraisal, Financing

Question 25

A reverse annuity mortgage is also called a:

Answer 25

Home equity conversion mortgage

Question 26

With respect to deeds:

Answer 26

a recorded deed is presumed delivered and accepted.

Question 27

A corporation holds title in the name of its:

Answer 27

charter

Question 28

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:

Answer 28

rate lock

Question 29

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

Answer 29

The Interstate Land Sales Full Disclosure Act

Question 30

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:

Answer 30

The principal

Question 31

A negligent or intentional wrongful act arising from breach of duty created by law and not contract is a:

Answer 31

tort

Question 32

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?

Answer 32

The Commissioner regulates subdivisions of five or more units.

Question 33

Demand is one of the four elements of value. In order for demand to be effective, it must be implemented by:

Answer 33

purchasing power

Question 34

A non-conforming loan is a loan amount over:

Answer 34

$726,200

Question 35

A clause that states a lender may demand the loan amount plus accrued interest in the event of a sale is called:

Answer 35

alienation

Question 36

When a home buyer leases a property with an option to buy, this would be an alternative financing option called a:

Answer 36

lease option

Question 37

The square footage of a single family residence for appraisal purposes is computed by obtaining the:

Answer 37

outside measurement of the house only.

Question 38

A hard money loan is:

Answer 38

Hard money loans are given to existing owners of real property for any purpose other than buying real property. Usually considered a personal loan.

Question 39

A public official that keeps public records of real property transactions in their county is called:

Answer 39

A recorder

Question 40

The largest loans would most likely be made by a(n):

Answer 40

insurance company

Question 41

Under the Bulk Sales Law, the minimum time to close the sale after the publication of notice of sale is:

Answer 41

12 business days

Question 42

Instead of refinancing a mortgage, sometimes a lender will agree to do this instead:

Answer 42

modification

Question 43

Who benefits when there is a subordination clause in a trust deed?

Answer 43

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.

Question 44

Gerald, who is a 17-year-old minor, wishes to purchase a home. This can be done legally when:

Answer 44

buying a home under the Cal-Vet program.

Question 45

A charge imposed on real property is called:

Answer 45

a lien