Deck 7 Flashcards
After the court renders an order of judgment, the next instrument to be recorded to create a lien is:
Abstract of Judgment.
A judgment by the court is the final determination of the rights of parties in a lawsuit. A judgment does not automatically create a lien. A summary of the court decision, known as an abstract of judgment, must be recorded with the county recorder to create a general lien.
In the event that parties do not comply with the bulk sales law as outlined in the Uniform Commercial Code, the buyer is likely to be:
The most injured
: In the event that a seller does not comply with the bulk sales law, the buyer would be the most injured. The laws allow a creditor to obtain rights to the property to sell and satisfy a debt, but the buyer has no such recourse if a seller does not comply.
In California, which of the following statements is true of a tenancy in common?
Unless another form of ownership is described in the deed, co-owners who are not spouses of each other are presumed to be tenants in common.
A “no cash-out refinance” is also sometimes referred to as a
Rate and term refinance
In California, if a court orders a specific lien against a particular debtor, this means that:
The lien is against one particular property of the debtor
A general lien is a lien against all the properties that are owned by the debtor. A specific lien is a lien against a particular property of the debtor.
How long must a real estate salesperson keep a copy of his employment contract with a broker, after quitting the office?
3 years
The Residential Lead-Based Paint Hazard Reduction Act rule states that a seller or lessor of a residential dwelling unit built before 1978 must:
Fully disclose any knowledge the seller has about whether lead-based paint was used in the dwelling
A credit arrangement which allows a customer to borrow against a pre-approved line of credit when purchasing goods and services is called:
Revolving debt
The task of the appraiser is to:
estimate market value.
A bequest is when:
…personal property is transferred by will.
Historically the term bequest is for personal property and devise is for real property. In modern times, the two terms are used interchangeably on most occasions.
What does mortgage life insurance cover?
Mortgage life insurance covers the amount of the loan in the event of the borrower’s death.
An oral agreement between a lessor and lessee is legally:
a valid tenancy at will.
An oral lease for one year or less is enforceable and creates a tenancy at will.
In real estate, the offer to perform on the terms agreed is called:
Tender
A real estate licensee under Federal law should not take restrictive listings or advertise dwellings which suggest discrimination because of the:
Title VIII of the Civil Rights Act of 1968.
A grant deed conveys….
all after-acquired interests in the title
Records at the county recorder’s office are open for public inspection. Which of the following does not have to be accompanied by an employee of the county recorder’s office when examining these public records?
Anyone can examine the public records of the County Recorder’s office without being accompanied by a County Recorder’s Office employee.
An appurtenance is:
stock in a mutual water company.
Transfers with the land. Stock in a mutual water company would be the water rights of the land and must transfer with the land.
Another term for a title search is:
Due diligence
In California, if a corporation owns several properties that were recently listed with a local broker and the officers suddenly were to perish in a plane crash, the listings:
Are valid
Since corporations are entities that do not die, the listings automatically continue to be valid as is
The provision that states all prospective buyers are to be given the same opportunity to select available houses in their price range without restrictions because of race, color, religion, or national origin is found in which law?
The Federal Fair Housing Law
: Government surveys use sections, townships, and ranges to describe what about land?
location
The payment change date on an adjustable-rate mortgage or graduated payment mortgage is when:
A new monthly payment amount takes effect
If you are asked to figure the net worth of a business, you would treat an “account payable” as:
a liability.
The key word in this question is “payable.” Hence, something that is to be paid; therefore, since it is to be paid, it is classified as a liability.
When a survey is completed on a property, the final product will be a:
Drawing or map showing the precise legal boundaries of the property, the location of improvements, easements, rights of way, encroachments, and other physical features
Encroachment versus Easement
encroachments are the unauthorized use of the neighbor’s property, easements are agreed upon by both parties
A lawsuit for inverse condemnation may be brought by…
A homeowner
A property owner or homeowner can sue to obtain the required just compensation through the process of inverse condemnation. Inverse condemnation is the event in which the government takes private property but fails to pay
What is the test done to locate where to place a septic system?
A percolation test
On which of the following dates do California real property taxes become a lien on the subject property?
January 1st
Annually, whoever owns taxable property on January 1 (the lien date) becomes liable for a tax calculated at 1 percent of the “taxable” value of the property.
The California Act that prohibits discrimination by all California businesses is the:
Unruh Civil Rights Act
According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a company have to call the consumer if they made an inquiry with the company?
3 months
A contract agreed to and signed under duress is what?
Voidable
The contract was established under duress, fraud, deception, or coercion making it voidable. A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. Voidable contracts have the necessary elements to be enforceable, so they appear to be valid, but can be rejected by one party if the contract is discovered to have any number of defects.
Upon passing the California State License Examination the applicant has how long to apply for their real estate license?
1 year
What is the maximum paid out (per judgment) from the California Consumer Recovery Account?
$50,000 for each transaction; and $250,000 for any one licensee.
When you borrow money to buy real estate, you give the lender a _____ against the property.
Mortgage lien
California state law requires that copies of purchase agreements, be kept by the broker for at least
5 years
A senior housing development may refuse to rent to families if what?
In order to qualify for the Fair Housing Act’s “Housing for Older Persons” Exemption, at least 80 percent of the units must have at least one occupant who is 55 years of age or older OR all units are occupied by residents over the age of 62.
This act, allowed greater control for the EPA to control contaminant levels, take legal action against public water auth. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated.
SDWA
Safe Drinking Water Act (SDWA) was established in 1974. It allowed greater control by EPA to control contaminant levels, take legal action against public water auth. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated.
What is Ginnie Mae’s primary responsibility?
To guarantee the security of loans.
Ginnie Mae exists to solely guarantee the security of the loan. Ginnie Mae is a government agency that guarantees securities backed by loans issued under other government agency programs, such as the VA and FHA. Fannie Mae, is a private corporation that buys loans from private lenders, assembles them into mortgage-backed securities to maintain an active secondary market.
Which act amended the comprehensive environmental response, compensation, and liability act (also known as CERCLA)?
SARA
The Superfund Amendments and Re-authorization Act of 1986 (SARA) was passed when the original act, CERCLA, expired in 1985. It amended the comprehensive environmental response, compensation, and liability act. The big change had to do with liability. When a property owner has been innocent of all involvement with a hazardous waste site, under certain circumstances, he may claim immunity from responsibility. In plain terms it allows truly innocent landowners to have immunity from legal liability. SARA also required EPA to revise the Hazard Ranking System to ensure that it accurately assessed the relative degree of risk to human health and the environment posed.
Typically a warranty deed contains how many covenants?
5-6
A warranty deed can include six forms of covenants for title.
If a legal description is too long to include in the body of a sales contract, a real estate professional should do what?
Attach it to the contract and make reference to it
A tenant rented an apartment, signing a 12-month lease. After the lease expired, the tenant paid 1 month’s rent and got a receipt. What kind of leasehold does the tenant have?
Tenancy at will
A legal way to dissolve the relationship when the parties don’t voluntarily agree to its termination is called
Partition
What type of appraisal report is commonly relied upon in California by a lender financing the purchase of a single-family residence?
Summary report
A woman refinanced her house and used the proceeds to purchase two rental properties. This method of increasing her holdings is called…
Pyramiding
The lender’s underwriting criteria would accept a housing expense to income ratio of 33% and a ratio of total debt service of up to a maximum of 38% of monthly gross income. The applicant has an outstanding college loan payable at the rate of $250.00 per month and a car payment of $450.00 monthly. Gross annual income is established at $100,000 per annum. What is the maximum PITI the lender will approve?
$100,000 ÷ 12) x 0.38 is $3,166.67- ($150 + $450) = $2,566.67
Mary owned fee simple title to a lot next door to a church. She gave the lot to the church as a gift. However, she wanted to make sure it would always be used for church purposes. Her attorney prepared her deed to convey ownership of the lot to the church “so long as it is used for church purposes.” The church owns a…
Fee simple determinable
Feasible title with a special limitation is called fee simple determinable.
Which of the following formulas is used to calculate the cubic footage of an attic with a gable roof?
Width x length divided by 2 x height = cubic feet
A gable roof is an “A-shaped” roof with two sloping sides rising to a point. Memorize this formula to find the cubic footage: Width x length divided by 2 x Height = cubic feet.
Which of the following is NOT necessary in order for a property to have value?
The owner of the property is unknown.
Property has value only if title can be passed.
The nominal interest rate is…
The rate of interest specified in the note
An ironclad merger clause is a contract provision stating that:
No prior agreement or contemporaneous oral agreement will have any force or effect
The NW 1/4 of the SE 1/4 of Section 16, T4N, R4W, SBBM, is an example of what kind of land description?
U.S. Rectangular Survey
