Final Exam - Part 2 Flashcards
A mortgage broker negotiated a loan for $10,000 secured by a second trust deed to be paid in 30 monthly payments. The maximum commission the broker is permitted to charge is:
$1,000
An owner sells and the buyer takes over the existing loan. To relieve the seller of primary liability, the buyer must:
assume the note and trust deed
In an ARM loan, the distance between the borrower’s rate and the index is called the:
margin
Under the Real Property Loan Law the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:
$700
All of the following are non-institutional lenders, except:
life insurance company
A Seller's Financial Disclosure Statement must be signed by the: seller buyer broker all of the above
all of the above
The ultimate source of all loan funds is:
savings
A secondary mortgage market is where:
existing lenders sell to other lenders and investors
Private mortgage insurance (PMI):
insures the lender for the top portion of the loan
Which of the following types of loans are made only to individuals who are intending to occupy the property as a personal residence?
VA
Which government program carries a prepayment penalty if the loan is paid off in less than 5 years?
none of them have pre-payment penalties
The most important consideration in an appraisal is the:
experience and knowledge of the appraiser
Which of the following is a physical force that influences value?
size and shape of the parcel
The appraisal principle that states that the value of a property is dynamic, not static:
principle of change
The market approach would be given the most weight if appraising a:
new home
Find the value by use of the income approach. (Round to the nearest $100) 1. three-unit apartment rents for $600 per month per unit 2. vacancy factor of 5% 3. annual operating expenses and taxes, $1,800; insurance $600; all other expenses, $1,000 4. capitalization rate of 10%
$171,200
Find the value by use of the income approach. ( round to the nearest $100)
- three-unit apartment rents for $1,000 per month per unit
- vacancy factor of 5%
- annual operating expenses $10,000
- capitalization rate of 8%
$302,500
With a gross monthly multiplier of 150, a duplex that rents one unit for $575 per month and the other for $625, should have an estimated value of:
$180,000
Licensed by the Office of Real Estate Appraisers to do the most complex property appraisals.
certified-general appraisers
Regarding the sales comparison approach, which is false?
the subject property is adjusted to the comps
A history of title transfers for a particular parcel of land is a/an:
chain of title
Which insurance policy requires the title company to make a physical inspection of the property?
ALTA
There are certain requirements that must be met before a transaction can be placed in escrow. They are:
a neutral third party is employed
conditional delivery of all documents related to sale
a binding contract between buyer and seller
When an escrow officer receives conflicting instruction that cannot be resolved by the parties, the escrow officer can file a legal action in court called:
interpleader
Which law prohibits a real estate agent from receiving a referral fee from an escrow or title company?
RESPA
Lessor A leases to Lessee B who legally subleases to Sublessee C. Which of the following is correct?
Lessor A looks to Lessee B for payment
A lease on agricultural land cannot exceed:
51 years
The maximum security deposit for an unfurnished apartment is:
two month’s rent
How many units would there have to be in an apartment building to make it necessary for the owner to hire an on-site resident manager?
16 or more units
Under the rental offset rules, which of the following is true? The tenant can do housing code repairs up to:
one month’s rent, twice per 12 month period
The subdivision law administered by the California Real Estate Commissioner, who requires the issuance of a public report:
Subdivided Lands Act
If a person purchases the right to occupy a unit for a certain designated period each year, this is called:
time share ownership
A purchaser of a lot in a rural land project can cancel the purchase contract and receive a full refund in how many days?
14 days
The California law that makes it unlawful for businesses to illegally discriminate:
Correct Answer
Fair Housing Act
A purchaser of a time share and an undivided interest in a recreational development in California can cancel the sale and receive a full refund within:
7 days
The homeowner’s exemption, excluding local assessments, saves approximately how much in property taxes?
$70
The second installment of real property taxes is delinquent if not paid by:
April 10
A property was valued at $200,000 for property tax purposes. According to Proposition 13, what would be the maximum value for property tax purposes in two years, assuming the owner did not make capital improvements?
$208,080
When foreigners sell U.S. property the Foreign Investment in Real Property Tax Act (FIRPTA) may require what percentage be withheld from the sale proceeds?
10%
When a special assessment is made on a piece of property under the Street Improvement Act of 1911:
it is based on the front footage of the property
A real estate licensee can sell used mobile homes provided the mobile homes have been registered with the:
Department of Housing and Community Development
Which of the following roof styles is best described as a “pitched roof sloping from two sides with the sides meeting at the top”?
gable roof
A statement that shows the financial position of a business as of a certain date:
balance sheet
A candidate for the real estate broker’s examination must:
have completed 8 college-level real estate courses
Commission rates for real estate agents are established by:
negotiation
The fine for an unlicensed person who receives an illegal commission is:
$20,000
The Real Estate law exempts some people from needing a real estate license. Which of the following are not exempt?
any person who receives compensation for performance of an act defined within the realm of a salesperson’s licensing
Which of the following is correct?
a real estate salesperson and a broker may form a partnership to run a real estate brokerage business
In addition to the commissioner, the Real Estate Advisory Commission has how many members?
10
A real estate brokers license is issued for:
4 years
