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CA REAL ESTATE > LEGAL ASPECTS > Flashcards

LEGAL ASPECTS Flashcards

1
Q

What are 5 purposes of LAW?

A 
Set standards
Preserve order
Settle disputes
Safeguard liberties and rights
Enforces promises
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2
Q

Define MORALS, and ETHICS?

A

MORALS: A person’s standards of behavior or principals regarding what is right or wrong

ETHICS: Rules of conduct or accepted behavior based on moral principles. Subjective and depend on certain circumstances.

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3
Q

The law serves as a guide for what in our society?

A

Minimally acceptable behavior

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4
Q

The law protects our numerous liberties and rights from what?

A

Violations or unreasonable interferences by individuals, societies, and governments

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5
Q

The basis of law in the US is what from where?

A

Common Law from England - means that disputes done on a case-by-case basis that bound the arbiter of a dispute to a rule elicited from the determination of an earlier dispute

Civil Law (from Romans) also worked its way in - especially in State Laws

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6
Q

CASE LAW is what?

A

The accumulation of Common Law decisions over time

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7
Q

What is the difference between CRIMINAL LAW and CIVIL LAW?

A

CRIMINAL: Against the PUBLIC, society or the state like Murder, Assault, Theft

CIVIL: Against an individual or PRIVATE party like defamation, breach of contract, negligence

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8
Q

The legal concept of COMMUNITY PROPERTY came from?

A

Spain

Most of the community-property states are located in the western United States where Spanish influence was more prevalent

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9
Q

What is a SUBSTANTIVE LAW?

A

Establishes and controls the rights and duties of parties

Ex: Contracts

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10
Q

What is a PROCEDURAL LAW?

A

Sets out the methods for enforcing the rights and duties under substantive law

Ex: Statute of Limitations

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11
Q

The main LEGAL REMEDY is?

A

Compensatory damages, which is money

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12
Q

What are four areas of difference between civil law and criminal law?

A

Concerns

Party filing the case

Burdens of proof

Goals

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13
Q

The US Constitution is made up of?

A

7 Articles followed by 27 Amendments

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14
Q

US Constitution Articles 1-3 established what?

A

Legislative, Executive and Judicial Branches

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15
Q

US Constitution Article 4, 5, 6, 7

A

4: Relationship between the Federal Govt and States
5. Process for amending the Constitution
6. Federal laws are higher than State laws
7. Procedures used to ratify the Constiturion

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16
Q

The first 10 out of 27 Amendments of the US Constitution are?

A

The Bill of Rights

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17
Q

What are examples of Law areas that only the Federal Govt can make?

A

Commerce, the military, immigration, and bankruptcy

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18
Q

Name the 3 most important sources of US Law?

A

US Constitution
State Constitutions
Court Precedents

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19
Q

What are the implied powers that the Constitution gives to Congress?

A

To make laws (unless they violate the Constitution)

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20
Q

What are examples of some important State Law areas?

A 
Worker’s compensation
Real property
Marital relations
Insurance
Professional Licensing
Agency laws
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21
Q

What is a NEGOTIABLE INSTRUMENT?

A

An alternate form of cash that is a promise to pay an amount of money:

Drafts
Checks
Promissory Notes
Certificates of Deposit

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22
Q

What power do federal administrative agencies have?

Ex: SEC, FTC, FCC etc…

A

To make rules and regulations that carry out the statutes passed by Congress and to enforce the law

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23
Q

Does the Supreme Court hear evidence or testimony?

A

No. It reviews and decides cases that come from the lower courts.

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24
Q

What are CA Superior Courts?

A

These are the Trial Courts in CA, located in each County

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25
Q

What is the PEOPLE’S COURT?

A

Small claims courts where the amount is less than $10,000 max for individuals, and people represent themselves.

$5000 max if a corp is suing

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26
Q

What is the difference between a
LIMITED JURISDICTION SUPERIOR COURT
and a
GENERAL JURISDICTION SUPERIOR COURT?

A

GENERAL is for $25,000 and above

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27
Q

What are the 2 APPELLATE COURTS in CA?

A

CA Court of Appeals, and then CA Supreme Court

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28
Q

What are PLEADINGS in a court case?

A

Initial papers filed that explain each party’s side of the dispute

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29
Q

What is usually the longest part of a court case?

A

DISCOVERY

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30
Q

What is a GARNISHMENT?

A

If the defendant is employed, wages can be garnished to collect the judgment in installments

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31
Q

What are the main steps in a CIVIL CASE?

A 
Pleadings
Discovery
Pretrial
Trial
Post trial
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32
Q

If a defendant does not have insurance to cover a judgment, what avenues are available for collection?

A

Judgement Lein

Garnishment

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33
Q

Name 4 MONETARY/LEGAL REMEDIES (aka DAMAGES)?

A
  1. Compensatory
  2. Punitive/Exemplary
  3. Liquidated
  4. Nominal
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34
Q

What are COMPENSATORY DAMAGES?

A

Awarded to pay the person who was injured (plus often but not always legal and court costs)

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35
Q

What are EXEMPLARY DAMAGES (aka PUNITIVE)?

A

Awarded when the defendant’s deliberate acts were malicious, violent, oppressive, fraudulent, cruel, or grossly reckless

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36
Q

What are LIQUIDATED DAMAGES?

A

A contractural stipulation, which establishes a predetermined sum that must be paid if a party fails to perform as promised.

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37
Q

What are NOMINAL DAMAGES?

A

Awarded when a legal wrong has occurred, but where there was no actual financial loss (award is typically $1 or $2)

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38
Q

What is an EQUITABLE REMEDY and name 7?

A

A non-monetary Award that is a right

  1. Specific Performance
  2. Rescission
  3. Reformation
  4. Injunction
  5. Foreclosure
  6. Quiet Title
  7. Declaratory Relief Action
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39
Q

What is SPECIAL PERFORMANCE?

A

A remedy forces a party to execute a contract according to the precise agreed-upon terms

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40
Q

What is RESCISSION?

A

When both the Broker and Client agree to end the agreement (Listing or Buyers). Releases both parties from the contract.

When this happens, any money given is returned

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41
Q

What is REFORMATION?

A

The judicial correction or change of an existing document by court order when one of the parties enters a petition for a change due to a mistake or fraud.

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42
Q

What is INJUNCTION?

A

A remedy that is a court order that requires a party to do or refrain from doing specific acts. Can be fined or go to jail if failure to comply.

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43
Q

What is FORECLOSURE?

A

A remedy that terminates a person’s interest in a property

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44
Q

What is QUIET TITLE?

A

A legal action to determine who holds ownership in real property. This clears and removes a cloud on title.

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45
Q

What is DECLARATORY RELIEF ACTION?

A

A Court Judgement which determines the rights of parties without ordering anything be done or awarding damages

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46
Q

What is ADR?

A

Alternative Dispute Resolution

an out-of-Court settlement

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47
Q

What is the difference between MEDIATION and ARBITRATION?

A

A Mediator gets the parties to compromise and mutually agree to a settlement.

An Arbitrator imposes a settlement that they think is right.

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48
Q

Why is ARBITRATION ideal for business contracts?

A

Saves time and money

Promotes less hostile relations than litigation

Allows submission of complex issues to experts

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49
Q

What kind of appeal cases go straight to the California Supreme Court?

A

Death Penalty

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50
Q

In the Uniform Commercial Code, negotiable instruments do not include?

A

Cash

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51
Q

How important is INTERNATIONAL LAW to making US LAW?

A

Not very

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52
Q

Which federal court reviews IRS rulings?

A

US Tax Court

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53
Q

What is a PRETRIAL ORDER?

A

After the PRETRIAL CONFERENCE is over, the Court recounts the actions taken and controls the course of a trial with the ORDER

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54
Q

The Bill of Rights protects the rights of individuals by?

A

Limiting Government Power

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55
Q

What are EMBLEMENTS?

A

Plants or crops considered personal property since human intervention is necessary for planting and harvesting.

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56
Q

What is the PLLS (aka RECTANGULAR SYSTEM)?

A

The Public Land Survey System (PLSS) is the method traditionally used over the largest part of the United States to survey and classify land parcels before naming an owner, particularly in rural or undeveloped land

Developed by Jefferson after the Revolutionary War, first used in OHIO

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57
Q

What is a LEGAL DESCRIPTION of Land?

A

A description which accurately locates and identifies the boundaries of the subject parcel to a degree acceptable by courts of law in the state where the property is located

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58
Q

What is a POB?

A

The POINT OF BEGINNING in the Metes and Bounds system description

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59
Q

What is the difference between METES and BOUNDS?

A

METES: distance and direction

BOUNDS: fixed reference points like monuments or landmarks

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60
Q

Name 3 accepted types of legal descriptions of Land?

A
  1. RECTANGULAR (Large continuous land areas)
  2. METES & BOUNDS (uses reference points)
  3. LOT & BLOCK (used in subdivisions and metro areas)
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61
Q

What is an IMPROVEMENT to land?

A

Real Property built on the land

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62
Q

What is a CADASTRAL LAND SURVEY?

A

A property Survey that is more detailed than a House Location Survey when land is being sold

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63
Q

Why is it important to have a PROPERTY SURVEY done when selling or buying?

A

So that you know all of the boundaries, easements etc…and because Mortgage Companies and Title Insurance Companies will want this done

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64
Q

What is a DATUM?

A

Standard elevation reference points throughout the country.

The first is at NY Harbor.

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65
Q

What are standard units of measurement?

A

Rod: 16.5 feet; 5.5 yards

Chain: 66 feet; 4 rods; 100 links

Mile: 5,280 feet; 1760 yards; 320 rods

Sq. Mile: 640 acres

Acre: 43,560 sq. feet; 160 sq. rods

Section: 640 acres

Sq. Foot: 144 sq. inches

Sq. Yard: 9 sq. feet

Cu. Yard: 27 cu. feet

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66
Q

How does a location survey differ from a boundary survey?

A

A location survey is boundary survey with the additional location of all the interior improvements.

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67
Q

How is real property “permanantly” affixed to land?

A

By the intention of the owner.

Nothing man-made can be permanently affixed, in reality.

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68
Q

What is the difference between TANGIBLE and INTANGIBLE property?

A

TANGIBLE: physical, visible, and material

INTANGIBLE: abstract, having no physical existence in itself, other than as evidence of one’s ownership interest

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69
Q

Is Real Property tangible or intangible?

A

TANGIBLE

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70
Q

Is Personal Property tangible or intangible?

A

EITHER WAY

TANGIBLE ex: Boats, jewelry, coins, appliances, computers, and art

INTANGIBLE ex: Stocks, copyrights, bonds, trademarks, patents, franchises

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71
Q

What does the legal concept of LAND encompass?

A

Surface
Below surface to center of earth
Air above surface
Natural things attached (trees etc…)

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72
Q

What does the legal concept of REAL ESTATE encompass?

A

Land

All man-made “improvements” that are “permanently” attached.

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73
Q

What is an APPURTENANCE?

A

rights that “run with the land” like air rights and subsurface rights - these can be sold separately or as a bundle of rights

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74
Q

What is the Doctrine of Prior Appropriation?

A

CA water rights that are granted according to the date of first use

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75
Q

Are minerals under your land real or personal property?

A

Real property until removed when they become personal property

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76
Q

What is the RULE OF CAPTURE?

A

The law allows oil or gas to be removed from wells on the surface of the owner’s land even if the oil or gas came from under a neighbor’s property

To protect your rights to your oil you must drill a offset well.

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77
Q

How does an OIL AND GAS LEASE work?

A

You lease your drilling rights to a professional company who pays you an upfront sum and royalties.

99 years is the maximum for these leases.

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78
Q

What are LATERAL SUPPORT RIGHTS?

A

Your right to physical support of your land by adjacent land

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79
Q

What is SUBJACENT SUPPORT RIGHTS?

A

Your right to physical support of your land from underneath (an issue when drilling for minerals or oil on other properties)

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80
Q

What are the four important rights associated with owning a parcel of real estate?

A

Right to encumber (mortgage)
Right to use
Right to transfer
Right to exclude

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81
Q

What is the difference between Federal and State regulations in Real Estate?

A

FEDERAL: concerned with broad standards of real property usage, natural disaster, land description, and discrimination

STATE: concerned with specific regulations that govern the real estate business like license laws and qualifications, environmental controls and how property may be owned, transferred, encumbered, and inherited

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82
Q

Who has the power to levy real estate taxes?

A

States, but they generally pass the power to local authorities.

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83
Q

What is a FIXTURE?

A

Personal property that is permanently affixed to real estate making it real property

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84
Q

What is a TRADE FIXTURE?

A

Personal property that is temporarily affixed to real property to conduct business. Can be removed prior to closing. After that it is real property.

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85
Q

Are plants and crops that grow real property or personal property?

A

Real property if they grow without anyone’s labor or machinery.

Personal if the need labor or machinery to grow

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86
Q

What is the RIGHT TO ENCUMBER?

A

The right to mortgage a property as collateral for debt

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87
Q

What is a SUBDIVISION SURVEY?

A

A topographic survey of a parcel of land which will be divided into two or more smaller tracts, lots or estate division

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88
Q

What describes a portion of land delineated by boundaries?

A

PARCEL

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89
Q

What type of survey is a boundary survey with the additional location of all the interior improvements?

A

LOCATION SURVEY

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90
Q

What is a REVERSIONARY or a REMAINDER estate interest?

A

After a LIFE TENANT dies…

REVERSIONARY: Reverts to original owner

REMAINDER: A named third party receives the estate

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91
Q

What is a CONVENTIONAL LIFE ESTATE?

A

A grant from a fee simple property owner to the grantee, the life tenant.

Following the termination of the estate, rights pass to a remainderman, or revert to the previous owner.

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92
Q

What is a PUR AUTRE VIE life estate

A

Endures over the lifetime of a third person, after which the property passes from the tenant holder to the original grantor (reversion) or a third party (remainderman).

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93
Q

What is a LEGAL LIFE ESTATE?

A

Created by State Law instead of by agreement

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94
Q

What is ELECTIVE SHARE?

A

When a spouse is left out of a will, they can make an ELECTIVE SHARE claim to receive a percentage of real and personal property.

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95
Q

How are EASEMENTS created

A
  1. Voluntary
  2. Necessity
  3. Prescription
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96
Q

What is a PRESCRIPTION EASEMENT?

A

If you are using someone else’s property you can get a court order making it permanent, if…

  • You do not have permission
  • The Owner knows but does nothing to stop you
  • It lasts for 5 years of continuous use
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97
Q

What are 3 types of ENCUMBRANCES?

A
  1. Mortgages
  2. Easements
  3. Leins
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98
Q

What is a HOMESTEAD?

A

A person’s principal residence that you occupy

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99
Q

What do HOMESTEAD LAWS protect?

A

Family members against losing their homes to general creditors attempting to collect on debts

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100
Q

What are 4 legal features of a LEIN?

A
  1. Does not convey ownership (except Mortgage lien)
  2. Attaches to property
  3. Property can have multiple liens
  4. Terminates when paid off
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101
Q

What is the difference between a GENERAL and a SPECIFIC LIEN?

A

GENERAL: placed against ALL real and personal property

SPECIFIC: placed against just one thing

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102
Q

Which LIENS are SUPERIOR to others?

A
  • Ad Valorem property taxes
  • Special assessment taxes
  • Inheritance taxes
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103
Q

What two factors that determine LEIN PRIORITY?

A

Is Lien superior or junior

What is the date of lien

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104
Q

What are the 4 types of CO-OWNERSHIP in CA?

A

Joint tenancy - Equal, inherited by other owner(s)
Tenancy in common - Unequal, can will/sell
Tenancy in partnership
Community property

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105
Q

What is a PARTITION SUIT?

A

A legal remedy for terminating your interest in JOINT TENANCY

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106
Q

What are the 3 main forms of OWNERSHIP?

A
  1. Severalty
  2. Co-Ownership
  3. Trust (held by a third party for the benefit of someone else)
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107
Q

What are the four unities needed to create a JOINT TENANCY?

A

Unity of…

  • Time
  • Title
  • Interest
  • Possesion
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108
Q

What is always considered SEPARATE PROPERTY even in a Community Property state?

A

Property owned by either spouse at the time of the marriage

Property acquired by either spouse through inheritance or gift during the marriage

Property acquired with separate-property funds

Income from separate property

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109
Q

COMMUNITY PROPERTY cannot be transferred or encumbered without…?

A

The signatures of both spouses

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110
Q

Name a key difference between a Condo and a Planned Unit Development

A

Planned Unit Development owners also own the LAND under their Unit

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111
Q

What happens to community property upon the death of a spouse (if they don’t have survivorship rights)?

A

1/2 to Spouse

1/2 to Heirs

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112
Q

Name 6 ways that Businesses can purchase, hold, and sell property?

A
  1. Sole proprietorship
  2. Partnership
  3. Joint venture
  4. Limited Liability company
  5. Corporation
  6. Syndicate
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113
Q

What is a JOINT VENTURE?

A

A partnership for a single undertaking rather than a continuing business

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114
Q

PARTNERSHIPS and JOINT VENTURES who own property are always…?

A

Tenancy in Common

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115
Q

CORPORATIONS who own property are always…?

A

Ownership in Severalty (sole ownership)

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116
Q

What is an LLC?

A

A hybrid of a Corporation and Partnership

LLC’s provide the limited liability protection of corporations without the regulations associated with corporations.

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117
Q

What is undivided interest?

A

Interest in a property where two or more parties share ownership

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118
Q

Interests are individually owned in tenancy in common. What does that mean?

A

Tenants have distinct and separable ownership of their interests.

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119
Q

What does a writ of attachment do?

A

In a lawsuit, It stops a debtor from selling or concealing property.

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120
Q

What type of debts are subject to the Homestead Law?

A

Signature Loan Debts

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121
Q

What does “As right of Zoning” mean?

A

The zoning allows property owners to do certain things as part of their “bundle of rights?

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122
Q

What are the two levels of approval a California County or City general plan must pass?

A

Planning commission

City Council or County Board of Supervisors

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123
Q

What is the Doctrine of Laches?

A

If a property owner is lax in protecting his or her rights, the property owner may lose those rights.

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124
Q

What entities have the power of EMINENT DOMAINE?

A 
Government
School districts
Public utilities
Public housing and redevelopment agencies
Railroads
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125
Q

What are some examples of the exercise of police power?

A 
Zoning ordinances
Building codes
Subdivision regulations
Eminent domain
Environmental restrictions
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126
Q

What is a “taking?”

A

Refers to the “taking clause” of the 5th Amendment which says that private property cannot be taken for public use without just compensation.

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127
Q

What is the difference between CUMULATIVE and NONCUMULATIVE ZONING and which one is more common?

A

Cumulative zoning allows more restrictive zoning uses to be allowed in less restrictive zones. Conversely, noncumulative zoning only grants permits for the designated use specified in a zone.

Noncumulative zoning is more common.

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128
Q

What is the TRANSFER OF DEVELOPMENT RIGHTS?

A

TDR makes it possible for there to be a free exchange (buying and selling) of development rights without having to buy or sell land.

Commonly used by developers to increase the density on another piece of property at another location

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129
Q

What is a “Sunshine Law”?

A

Mandate that meetings of governmental agencies and departments be open to the public.

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130
Q

What does the Interstate Land Sales Full Disclosure Act say that developers must give to potential purchasers and lessees?

A

A printed property report, which gives specific information about the property, before the buyer or lessee signs a purchase contract or lease.

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131
Q

In Zoning, what is the difference between a USE VARIANCE and an AREA VARIANCE?

A

USE: Permission to use the land for a purpose not allowed by the current zoning

AREA: One or more of the dimensional or physical requirements of the applicable zoning law, in connection with some proposed construction.

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132
Q

What is the Alquist-Priolo Earthquake Faulting Zone Act (1972)?

A

Prohibits new building on active fault lines, and requires Sellars to disclose if property is on a fault line

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133
Q

What is the National Environmental Policy Act of 1969?

A

Created the Environmental Protection Agency (EPA) and the Council for Environmental Quality

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134
Q

Property taxes that are not paid result in a?

A

Property Lien

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135
Q

What are RESTRICTIVE COVENANTS?

A

Limitations placed on the use of land by the developer of a residential subdivision

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136
Q

What type of Agency Relationship exists between a Broker and their Salespeople?

A

GENERAL AGENCY

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137
Q

What type of Agency Relationship exists between a Broker and Clients?

A

SPECIAL AGENCY (but can be General if the Broker does a multitude of tasks)

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138
Q

What type of Agency usually does NOT exist in Real Estate offices?

A

UNIVERSAL AGENCY

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139
Q

What is a BUYER REPRESENTATION AGREEMENT?

A

Between a Selling Agent and a Buyer

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140
Q

Can a Salesperson create Agency between their Broker and a Client?

A

YES, if allowed in their independent contractor agreement.

Agency is always with the Broker, not the Salesperson.

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141
Q

If a licensee leaves his or her broker, how many listing agreements and buyer agency agreements is the salesperson allowed to take to the next broker?

A

None

The agreements are between the Broker and Client always even if the Salesperson does all the work

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142
Q

What are the 2 types of CUSTOMER’s?

A
  1. Licensee is working directly with when showing properties, but they are not your Client if there’s not a written Agency Agreement (Listing or Buyer’s)
  2. Another Agent’s Client is your Customer
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143
Q

What can a licensee not provide to a customer?

A

Advice and Counsel (you give that to Clients)

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144
Q

How is Agency Terminated?

A
  1. The deal closes
  2. The Listing/Buyers Agreement expires
  3. Mutual Oral Agreement if no written agreement
  4. Death of Client or Broker
145
Q

When a lawsuit or complaint is filed against a real estate agent, who must determine whether or not an agency relationship has been created?

A

A Hearing Officer

146
Q

How does an Agent demonstrate FAIRNESS?

A

Be honest with the customer
BUT
Get the best transaction for your Client

147
Q

When there is no buyer representation agreement in place, who actually represents a seller in a real estate transaction?

A

Selling Agent (who would otherwise rep the Buyer if a Buyer’s Agreement was in place)

148
Q

Who can allow a listing to be cancelled during the term of the listing agreement?

A

The Broker

149
Q

What is CONSIDERATION (in a Contract)

A

An exchange of promises that contains something of value.

Separates contracts from gifts

150
Q

What is LEGAL DESCRIPTION (in a Contract)

A

Description of property location (i.e. metes and bounds, rectangular etc…)

151
Q

What is FORBEARANCE (in a Contract)

A

To agree not to do something (i.e. don’t park in the driveway, don’t paint the walls in a rental apt etc…)

152
Q

What is the difference between and EXPRESS and IMPLIED CONTRACT?

A

Express: Every term is set and agreed to by both parties

Implied: An unstated or unintentional agreement may exist without a written contract

153
Q

What is the one type of Real Estate Contract that CA allows to be Oral?

A

Commission sharing between Agents

154
Q

What is a common example of an IMPLIED CONTRACT?

A

Implied Agency Contract such as when an Agent negotiates on behalf of a Buyer without a Buyer’s Agreement in place

155
Q

What is needed for and IMPLIED CONTRACT to be in place?

A

Offer and acceptance
Mutual intent
Consideration

156
Q

What’s the difference between a BILATERAL and a UNILATERAL contract?

A

BILATERAL: both parties promise to perform their respective parts in exchange for performance by the other party

UNILATERAL: only one party promises to perform

157
Q

5 examples of BILATERAL CONTRACTS in real estate include:

A
  • Independant Contractor Agreement
  • Listing Agreement (exception: Open Listings)
  • Buyer Representation Agreement
  • Lease
  • Purchase Agreement
158
Q

What is the difference between and EXECUTED and an EXECUTORY contract?

A

EXECUTED: everything is fully performed and closed

EXECUTORY: not finished yet, something could be “dangling” and yet to be performed

159
Q

What’s an INDEFINITE CONTRACT vs. an AMBIGUOUS CONTRACT?

A

INDEFINITE: missing terms or language

AMBIGUOUS: has terms that are confusing

160
Q

4 ways a Court could view a contract are?

A

VALID: meets all legal requirements

VALID BUT UNENFORCABLE: Oral when written is required

VOID: doesn’t meet legal requirements for contract

VOIDABLE: if one party says that they singed under duress and disaffirm it

161
Q

What 3 scenarios could happen if a CONTINGENCY is not met?

A
  1. Transaction is void
  2. Contingency is waived
  3. Contingency is revised
162
Q

Name 6 common real estate CONTINGENCIES?

A
  1. Financing
  2. Inspection
  3. Sale
  4. Title Report
  5. Lead Based Paint Disclosure and Inspection
  6. CC&R’s
163
Q

What is DISCHARGE of a Contract?

A

Termination or Cancellation

164
Q

5 reasons that a Contract is DISCHARGED are?

A
  1. Mutual Agreement
  2. Non-Performance in Full
  3. Infeasibility (not possible to perform)
  4. Operation of Law (Statute of Limitations, Bankruptcy)
  5. Assignment (to another party)
165
Q

What type of contract is not ASSIGNABLE?

A

Anything involving a personal service

Property contracts are Assignable

166
Q

CA Statute of Limitations on suing for BREACH OF CONTRACT is?

A

4 years

167
Q

Name 3 legal remedies for BREACH OF CONTRACT?

A
  1. Rescission
  2. Forfeiture
  3. Suit for damages
168
Q

What is a TORT and what is TORT LAW?

A

A civil wrong or wrongful act as grounds for a lawsuit

Tort law attempts to remedy a wrong by providing monetary damages to the injured party

169
Q

List 5 common tort claims made against real estate licenses?

A
  1. Fraud
  2. Breach of Duty
  3. Breach of Contract
  4. Negligence
  5. Bodily Injury / Property Damage
170
Q

What type of suit is an attempt to force the defaulting party to comply with the terms of the contract?

A

A suit for specific performance

171
Q

What is PARTIAL PERFORMANCE?

A

When a defendant has failed to complete performance of an agreement according to its terms

172
Q

What is FORESEEABILITY?

A

When damages were within the contemplation of the contract when made?

173
Q

What is DEFAULT (in contracts)?

A

To fail to do something required by law or duty.

174
Q

What is the IRS’s SAFE HARBOR TEST for a Salesperson?

A

Makes you an Independent Contractor for tax purposes if…

  1. Licensed
  2. Receive Compensation based on Commission, not hours worked
  3. A written agreement between Broker and Salesperson
175
Q

What is the main difference between the two CAR Independent Contractor Agreements?

A

Arbitration or Non-Arbitration (mediation)

176
Q

What is the major difference between an exclusive right to sell listing and an exclusive agency listing?

A

EXCLUSIVE RIGHT TO SELL: Broker always gets commission

EXCLUSIVE AGENCY: No commission if Seller brings in the Buyer

177
Q

How must the listing price be written on the Exclusive Right to Sell Agreement?

A

In both Numeric and Written form like a cheque

178
Q

What 3 things is the Broker authorized to perform in a LISTING Contract?

A
  1. Order reports and disclosures
  2. Market property
  3. Share info with other Brokers/Licensees
179
Q

How many days after an associate enters into an agreement with a seller does the broker have the option to cancel the listing agreement?

A

5

180
Q

What is a PROCURING CAUSE AGENT?

A

The agent who ultimately caused the buyer to purchase the home and earned the commission

181
Q

What does it indicate if section C(2) of the Agency Relationship provision is checked?

A

The buyer does not consent to the possibility of a dual agency relationship between broker and buyer

182
Q

What 3 things is the Broker authorized to perform in a BUYERS Contract?

A
  1. Locate properties, present offers, negotiate
  2. Provide guidance
  3. Get a credit report on the Buyer
183
Q

What are the 4 options for a Seller when considering an offer?

A
  1. Complete Acceptance (turns offer into contract)
  2. Rejection
  3. Counteroffer
  4. Failure to Act (time to think about it)

Buyers can pull their offer anytime before a Seller notifies them of acceptance

184
Q

What common DEED RESTRICTIONS are common in a sale?

A 
Easements
Association memberships
Encumbrances
Mortgages
Liens
Special assessments
185
Q

What is the most common ADDENDA to a sale contract?

A

Seller’s property condition disclosure

186
Q

What information is included in the price and terms provision of the SALE CONTRACT?

A

Final price
Down payment
Financing information

187
Q

What does the ESCROW CLAUSE in a SALE CONTRACT do?

A

Provides for the custody and disbursement of the earnest money deposit

Releases the escrow agent from certain liabilities

188
Q

What does a RIGHT OF RESCISSION clause set forth in a SALE CONTRACT?

A

if sellers fail to deliver the property condition disclosure statement in a timely fashion…

Then Buyers (under certain conditions) can rescind the sale contract and re-claim their deposits .

189
Q

What does the DUE-ON-SALE clause in the SALE CONTRACT say?

A

Both parties agree to hold the other party harmless for loans that survive the closing.

190
Q

List the 3 topics discussed in the AGENCY paragraph of the SALE CONTRACT?

A
  1. Disclosure of Agency relationships
  2. Confirmation of Agency relationships
  3. Note that brokers may represent potentially competing buyers and sellers
191
Q

What does a buyer agree to do in Paragraph 3J(1) of the LOAN TERMS section of the SALE CONTRACT?

A

Within 3 days the buyer will provide the seller a letter from the buyer’s lender stating the buyer is prequalified or preapproved for the loan detailed in section 3D

192
Q

How does a buyer indicate the PURCHASE AGREEMENT is contingent on the sale of their current property?

A

Check Paragraph 4B and add the details to the Addendum

193
Q

What specific costs are addressed in Paragraph 7D of the SALE CONTRACT?

A

“Other” Costs…

  • County transfer fee
  • City transfer fee
  • HOA related fees
  • Private transfer fee
  • Home warranty
194
Q

What 3 options do the parties have on the PURCHASE AGREEMENT for when the buyer will receive possession of the property?

A

Paragraph 9B

  • At 6pm (or another specified time) on the date escrow closes
  • No later than a written in number of days after close of escrow
  • At a specific time on a specific date
195
Q

What does Paragraph 10A of the PURCHASE AGREEMENT provide the buyer in regards to disclosure cancellation rights?

A

Buyer has the right to cancel the contract by written notice within 3 days of delivery in person of any disclosure or amended disclosure discussed in paragraph 10A(1) if the disclosure or notice is provided after the purchase agreement is signed

196
Q

List 3 topics addressed in the Time Periods; Removal of Contingencies; and Cancellation Rights paragraph

A
  1. How contingencies and other obligations are performed
  2. Time periods for delivery of disclosures, conducting inspections, and removal of contingencies
  3. Cancellation rights from both parties
197
Q

Describe the FINAL VERIFICATION OF CONDITION provision of the PURCHASE AGREEMENT?

A

5 days (or another specified number) prior to the close of escrow, the buyer the right to make a final verification of the property condition.

This is NOT a contingency of the sale but is to confirm the seller has fulfilled other obligations under the purchase agreement.

198
Q

If a seller agrees to repair items on the property, when must they be completed?

A

Before the final verification of condition (usually 5 days before closing)

199
Q

What are the parties are agreeing to by initialing under Paragraph 21B of the PURCHASE AGREEMENT?

A

If buyer defaults and cannot complete the purchase agreement, seller will retain the deposit paid by the buyer as long as it is not more than 3% of the purchase price (can be more if specified on the contract)

200
Q

What does the SELECTION OF SERVICE PROVIDERS paragraph state on the PURCHASE AGREEMENT?

A

Brokers do not guarantee performance of any vendors, service, or product providers.

Buyer and seller may select any providers of their choosing.

201
Q

List the 4 paragraph titles on the CAR Counter Offer?

A

Terms
Expiration
Offer
Acceptance

202
Q

What are the 5 most common CONTINGENCY CLAUSES?

A 
Appraisal
Financing
Inspection 
House Sale
Kick-Out Clause
203
Q

Can the Buyer back out of a Sale Contract if they can’t get financing?

A

YES, known as a Financing Contingency and the length of time the Buyer has to get financing is written in the contract.

204
Q

Who pays for INSPECTION FEES after an offer has been accepted but before close of Escrow?

A

Buyer

Can have multiple inspections (a main and then specific experts like a chimney expert etc…)

205
Q

What is a SETTLEMENT CONTINGENCY?

A

Related to a HOME SALE CONTINGENCY, this is when a Buyer is in the process of selling their home but it has not closed yet. Gives a certain number of days for closing and if not, Buyer can back out of purchase.

206
Q

What is a KICK OUT CLAUSE?

A

While the seller agrees to a HOUSE SALE CONTINGENCY, the seller can continue to market the property. If they receive another offer…

First Buyer has a set time like 24-48 hours to remove their Contingency, or they lose it to the Second Buyer.

207
Q

When making an offer, what is best regarding CONTINGENCIES?

A

Make as few as possible!

208
Q

What does a LEASE convey?

A

Your LEASEHOLD ESTATE in a property, but not legal title

209
Q

What governs the making, interpretation, and enforcement of LEASES?

A

The Law of Contracts

210
Q

What is the DEMISING CLAUSE of a Lease?

A

How the landlord is leasing the property and the tenant is taking possession of the property.

211
Q

What section in a CAR Residential Purchase Agreement includes information regarding the first, second, VA or FHA loans?

A

Loans

212
Q

How many days does a seller have after acceptance, if not specified, to disclose if the property is a condominium or planned development?

A

7

213
Q

What paragraph in a CAR Residential Purchase Agreement states the contract represents the final terms of the agreement unless the parties make changes in writing?

A

Time of Essence; Entire Contract; Changes

214
Q

Within how many days after delivery of a disclosure can buyer cancel a CAR Residential Purchase Agreement Contract?

A

3

215
Q

In a CAR Residential Purchase Agreement, the four sections that follow the confirmation of acceptance are?

A
  1. Real estate brokers (not party to agreement)
  2. Escrow holder acknowledgement
  3. Presentation of offer
  4. Rejection of offer (if not accepted)
216
Q

What is a DEED OF CONVEYANCE?

A

To transfer property through voluntary alienation (a real estate term for convey)

217
Q

What is the HABENDUM CLAUSE of the DEED?

A

Describes the type of estate being conveyed (ex: a fee simple estate, a life estate, or an easement)

218
Q

What is VOLUNTARY ALIENATION?

A

Voluntary transfer of title by sale or gift from an owner to another party

219
Q

What action is necessary for a title to a property to pass to the grantee?

A

Deed to be delivered to and accepted by the Grantee

220
Q

What is a GRANT DEED?

A

The most common Deed in CA

Includes 2 implied warrantees from the Grantor:

  1. No one else was granted title
  2. Property is free of encumbrances except those that the Grantee knows about

There are always some risks when transferring title and that is why there is Title Insurance

221
Q

What is a QUITCLAIM DEED?

A

Commonly used for transfers within a family and in divorce settlement.

No claim to any interest in the property being conveyed and offers no warrants to protect the grantee

222
Q

What is a FULL COVENANT & WARRANTY DEED?

A

Gives the most protection of all Deeds, but rarely used now because of Title Insurance on Grant Deeds

223
Q

What is a DEVISE? DEVISOR? DEVISEE?

A

DEVISE: transfer property under a will
DEVISOR: person who died
DEVISEE: person receiving the property

224
Q

What is ADVERSE POSSESSION?

A

When you can claim someone else’s property, under certain conditions by entering and occupying it without the Owner’s consent, or if the Owner knows but does nothing.

225
Q

How can Property Owners avoid ADVERSE POSSESSION claims?

A

Periodically inspecting property and evicting tresspassers

226
Q

How is ESTOPPEL used as a form of Involuntary Alientaion?

A

Estoppel prevents a person from claiming a right or interest that is inconsistent with the person’s previous statements or acts.

Estoppel can prevent an owner from re-claiming a property that was transferred under false pretenses.

227
Q

What is ANNEXATION?

A

When a City annexes your property and makes it part of the City.

Benefits you (sewage, trash services etc…) and the City (tax revenue)

228
Q

What is DEDICATION?

A

When a developer uses a quitclaim deed to dedicate the use of certain streets and other areas in the community to the public.

229
Q

What is a PLAT MAP?

A

A map, drawn to scale, of the division of land. These are created by surveyors or assessors in a given county and are kept on file at a county’s recording office

230
Q

What is CONSTRUCTIVE NOTICE?

A

Notice given by the public record at the Courthouse, which you are presumed to know because it is available for everyone to see.

231
Q

What three areas of a property are licensees required to visually inspect when completing their section of the TRANSFER DISCLOSURE STATEMENT (TDS)?

A

Interior of the Property
Exterior of the Property
Environmental Hazards

232
Q

List 3 situations where the Lead-Based Paint Disclosure is NOT required by Federal law

A
  1. Foreclosed property sales
  2. Rental property that has been certified as “lead-based paint free”
  3. Renewal of leases
233
Q

How does the IRS define a foreign person as it relates to the Foreign Investment in Real Property Tax Act?

A

Nonresident alien, foreign corporation or trust

A lawful permanent resident is NOT considered a foreign person.

234
Q

What is COLOR OF TITLE?

A

When a grantee has obtained defective title, or received title by defective means, but occupies the property as if he or she were the legal owner

235
Q

What year did CA require Sellers to provide Homeowner’s Guide to Earthquake Safety (in addition to Natural Hazards Disclosure Statement)?

A

1960

236
Q

How many days does a buyer have to conduct a lead-based paint inspection in a sales transaction?

A

10

237
Q

What is the most common type of will used in California and is a formally written document usually prepared by an attorney?

A

A Witnessed Will

238
Q

What is CONVEYANCE?

A

When the transfer of title to real estate uses a written instrument

239
Q

What is a PROFIT ENCUMBRANCE?

A

Permission to take something from someone else’s land of value (minerals, crops)

240
Q

What is an ENCROACHMENT?

A

A piece of property or an object on a property that is crossing the boundary line of an adjacent property (Tree branches hanging over etc…)

241
Q

List 3 types of NON-FINANCIAL ENCUMBRANCES?

A
  1. Easements
  2. Encroachments
  3. Deed Restrictions
242
Q

What is the difference between a GENERAL LIEN and a SPECIFIC LIEN?

A

GENERAL: Placed against all property by a debtor

SPECIFIC: Placed against one specific piece of property

243
Q

Name 3 SUPERIOR LIENS?

A
  1. Property Tax
  2. Special Assessment Tax
  3. Inheritance Tax
244
Q

Name 3 JUNIOR LIENS?

A
  1. Judgement Lien
  2. Mechanics Lien
  3. Income Tax
245
Q

What 2 factors primarily determine LIEN PRIORITY?

A
  1. Superior or Junior Lien

2. Date filed (Mechanics is backdated to when work was done)

246
Q

How long does a JUDGEMENT LIEN last?

A

10 years

Option to extend for another 10

247
Q

What is a WRIT OF EXECUTION?

A

Authorizes an official, such as the county sheriff, to seize and sell the foreclosed property

248
Q

What is a WRIT OF ATTACHMENT?

A

During the course of a lawsuit, a plaintiff may secure a writ of attachment to prevent the defendant from selling or concealing property

Limited to business, trade and professional claims

249
Q

List the 4 ways a judgment lien can be terminated?

A
  1. Payment
  2. Expiration
  3. Bankruptcy
  4. Discharge by Creditor
250
Q

How much PRELIMINARY NOTICE is required to give the homeowner when a Mechanic files a Lien?

A

20 Days (if there is no contract between the Contractor and the Homeowner)

251
Q

If a notice of completion or cessation is filed by a homeowner, how long do general and subcontractors have to file a MECHANICS LIEN?

A

General Contractor: 90 Days

Sub-Contractor: 30 Days

252
Q

How long does a LIENOR have to enforce a mechanic’s lien once it is recorded?

A

90 Days

253
Q

What amount are the CA Homestead Exemptions that protect your home from Judgement Liens?

A

$75,000 for individuals
$100,000 for families
$175,000 for the elderly or disabled

254
Q

What’s the difference between the AUTOMATIC HOMESTEAD EXEMPTION and the DECLARED HOMESTEAD EXEMPTION?

A

Automatic applies when a sale is forced

Declared applies when you voluntarily sell
protects a portion of the money - but you need to declare it in advance

255
Q

What is the purpose of HOMESTEAD LAWS?

A

To protect individuals and families against losing their homes to general creditors attempting to collect on debts.

256
Q

For which lien holders does the HOMESTEAD EXEMPTION not apply?

A

Mortgages/Trust deeds
Spousal/Child support
Taxes

257
Q

A Mechanic’s Lien filer must be a licensed contractor unless the homeowner knows the worker was unlicensed and the work performed was less than how much?

A

$500

258
Q

What puts a Mechanic’s Lien on the balance of funds from a sale?

A

A Stop Notice

259
Q

For how long can a California income tax lien be in force?

A

10 years with 2 more extensions up to 30 years

260
Q

What is a FEDERAL LIEN?

A

When the Internal Revenue Service (IRS) has sent a taxpayer a bill entitled Notice for Demand and Payment and the bill is either ignored or not paid in full

261
Q

How many years are ATTACHMENT LIENS valid from the date of the writ of attachment?

A

3 years

262
Q

What is ABANDONMENT in real estate?

A

The discontinued use of the property. If the owner does not intend to use it again as a home, then the rights are extinguished.

263
Q

What type of lien secures a purchase money mortgage, a seller’s loan to a buyer to finance the sale of property?

A

Vendor’s Lien

264
Q

A MORTGAGOR is?

A

The borrower of the loan

265
Q

What is the difference between a SECURED and UNSECURED loan?

A

All real estate loans are secured with property as collateral.

Other short term loans may be unsecured without any collateral.

266
Q

What are the basic provisions on a PROMISSORY NOTE for a Mortgage?

A
  • Identity of Borrower and Lender
  • Amount Borrowed
  • PROMISE to pay
  • Interest Rate
  • Due Date of Payments
  • Amount of Payments
  • Maturity Date of Loan
  • Reference to the Security for the loan (property that is collateral)
  • Signatures
267
Q

What problems can arise when a non-institutional trustee is named under a DEED OF TRUST?

A

There may be difficulty locating that person to reconvey the title after the debt has been paid.

Lenders prefer to use an Institutional/Corp Trustee.

268
Q

What is the major difference between a Mortgage and a Deed of Trust?

A

The Deed of Trust involves a 3rd party Trustee between the Borrower and Lender. The Trustee holds title until the loan is paid off.

Much simpler for the Lender to foreclose - without going to Court.

269
Q

What is a LOCK-IN CLAUSE?

A

An extreme pre-payment penalty that prohibits Borrowers from paying of their loan early.

270
Q

What is the SUBORDINATION CLAUSE on a loan?

A

An agreement to reduce the priority of an existing loan to a new loan to be repaid first.

271
Q

What is California’s position regarding late payments on a loan?

A

10-day grace period is required

Fees cannot exceed 6% of the payment due

272
Q

What types of transactions often include a RELEASE CLAUSE on a loan?

A

When two or more properties are pledged as collateral for a single loan, such as transactions that involve land development

273
Q

If the promissory note was made with a RECOURSE CLAUSE and the sale does not bring enough to pay…?

A

The mortgagee can file a claim for a deficiency judgment (outstanding debt remaining) to get more money including legal fees.

274
Q

What is LIS PENDENS in a Foreclosure?

A

Public notice that enables other lienholders to join in the suit against the defendant

275
Q

What is a DEFICIENCY JUDGEMENT?

A

Any outstanding debt remaining after foreclosure and sale of a property is known as a deficiency judgment.

276
Q

The primary method of foreclosure in California is?

A

Non-judicial foreclosure

Most deeds of trust contain the power of sale clause, which allows a foreclosure sale without a court order.

277
Q

How long do you have to make the payment once you have received the Lender’s NOTICE OF DEFAULT?

A

90 Days

After which they can start Foreclosure proceedings

278
Q

What potential problem is there for the new Owner after a non-judicial foreclosure sale?

A

Title may not be clear. Might be other liens in place against the property like taxes, mechanics liens etc…

279
Q

How do CONVENTIONAL loans compare to GOVERNMENT loans?

A

ADVANTAGES: Less time-consuming, and less forms and more loan options

DISADVANTAGES: higher down payments, pre-payment penalties

280
Q

What is a payment cap in an ADJUSTABLE RATE MORTGAGE (ARM)?

A

A set monthly payment that remains the same although the actual interest rate may fluctuate throughout the year

281
Q

What is a GRADUATED PAYMENT MORTGAGE (GRM)?

A

payment for principal and interest gradually increases over time and then it levels off for the remaining term of the mortgage

282
Q

What is a SHARED EQUITY MORTGAGE?

A

A participation mortgage in which the lender shares in the appreciation of a mortgaged property if and when the property sells

283
Q

List 3 types of loans that do not require compliance with the TRID rule?

A
  1. Reverse mortgages
  2. Home equity loans
  3. Mobile Home Loans
284
Q

Any advertising is subject to REGULATION Z disclosure if it contains…?

A

All must be disclosed….

  1. Amount or percentage of down payment
  2. Installment payment or amount
  3. Specific finance change
  4. Number of installments
  5. Period of repayment
  6. Indication that there is no charge for credit
285
Q

What is the COMMUNITY REINVESTMENT ACT?

A

1977
Prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments

Requires regulators to assess the record of each bank and thrift in helping to fulfill their obligations to the community

286
Q

What is SUBPRIME LENDING?

A

Predatory Lending Mortgages made to borrowers with lower credit ratings who wouldn’t typically qualify for a conventional mortgage, and they pay higher interest rates and have high levels of default.

287
Q

What are 3 warning signs of PREDATORY LENDING?

A
  1. Phrases such as “guaranteed approval” and “no income verification”
  2. Large balloon payments or significant increases in the interest rate after a short period
  3. Loan fees between 5-7% of the loan amount
288
Q

What clause, in a non-judicial foreclosure, enables a mortgagee to order a public sale without a court decree?

A

A Power-Of-Sale Clause

289
Q

What Act requires each of 3 three nationwide credit reporting companies to give consumers a free copy of their credit report, at their request, once every 12 months?

A

Fair Credit Reporting Act

290
Q

In an adjustable rate loan, index plus the margin establishes the…?

A

Calculated Rate

291
Q

In a GPM, the interest owed and not paid in the initial months is added back to the principal causing what is referred to as…?

A

Negative Amortization

292
Q

What is a DEED IN LIU OF FORECLOSURE?

A

When a defaulting borrower avoids court actions and costs by voluntarily deeding the property to the mortgagee

293
Q

What is a A DEFEASANCE CLAUSE in a loan?

A

If paid off, the mortgage is canceled, and the title is given back to the borrower.

294
Q

ESCROW INSTRUCTIONS can never contradict the terms and conditions of what?

A

The Purchase Agreement or Addenda

295
Q

What activities are all escrow agents prohibited from doing?

A
  • Offer Legal advice
  • Favor one party over the other
  • Change documents without approval from both sides
  • Release funds without approval from both sides
296
Q

What is a TITLE INSURANCE POLICY?

A

Insurance to the Buyer and Lender that protects against defects in Title

297
Q

What is the purpose of the preliminary title report?

A

Shows the condition of the title before the loan or sale transaction.

298
Q

Why is TITLE INSURANCE unlike most other insurances?

A
  1. It protects against something from the PAST

2. You only pay a 1 time only premium

299
Q

Who typically pays for the homeowner’s title insurance at closing?

A

NOR CAL: BUYER

SO CAL: SELLER

But in either it can be split

300
Q

What is PASSING PAPERS?

A

A meeting at closing with everyone in the same room to sign and close.

Not typical in CA

301
Q

When closing, what is the order of RECORDING?

A
  1. Deed of reconveyance – provided by the seller’s lender (trustee) giving the seller ownership of the property.
  2. Grant deed – The grant deed transfers title from the seller to the buyer.
  3. Deed of Trust – The deed of trust transfers title from the buyer to the buyer’s lender.
302
Q

All escrow agents must report sales of real estate to the Internal Revenue Service (IRS) by completing…?

A

Form 1099-S

303
Q

Name 4 items that are PRORATED at closing?

A
  1. Taxes
  2. Insurance
  3. Utilities
  4. Mortgage Interest
304
Q

What is loan CONSUMMATION?

A

The time that a consumer becomes contractually obligated on a transaction

305
Q

What is included in the OTHER COSTS section of the Closing Disclosure?

A
  1. Taxes and other government fees
  2. Prepaids
  3. Initial escrow payment at closing
  4. HOA fees, home warranty fees, home inspection fees, and/or real estate commission
306
Q

What is a borrower affirming by signing the CONFIRM RECEIPT section of the Closing Disclosure?

A

That you received the form only. It does not indicate that you accept the loan.

307
Q

Who is RESPA administered by?

A

The Consumer Financial Protection Bureau (CFPB)

308
Q

What is ASSUMPTION in the Loan Disclosure?

A

Indicates whether or not the lender will allow a loan assumption on a future sale or transfer

309
Q

What is a VENDEE Policy?

A

Special title insurance used when a property is being purchased through a land sales contract, purchase money mortgage, or purchase money trust deed?

310
Q

What is significant about the Fair Housing Amendments Act of 1988?

A

Added disability and familial status

311
Q

What was the significance of the Plessy v. Ferguson Supreme Court decision of 1896?

A

This Supreme Court decision allowed the use of “separate but equal”. Later overturned.

312
Q

What is the LOAN APPLICATION REGISTER (LAR)?

A

Each time a person applies for a home mortgage at an institution covered by HMDA (Home Mortgage Disclosure Act), that institution must make a corresponding entry into the register

313
Q

Which additional discriminatory classes does the California Fair Employment and Housing Act include that the Federal Fair Housing Act does not?

A

Marital status
Ancestry
Sexual orientation/Gender Identity
Source of income

314
Q

Why is it important for licensees to know fair housing laws?

A
  1. It’s the Law
  2. It’s Right
  3. It reduces Risk
315
Q

If a client asks a licensee’s opinion about a home or neighborhood, how should the licensee respond?

A

Respond with factual statements, but do not give an opinion that violates the rights of any protected class of the Fair Housing Act

316
Q

What are TESTERS?

A

People of different protected status that test brokerages to see if they are offered the same listings.

317
Q

In ____ the HOUSING AND COMMUNITY DEVELOPMENT ACT added what to the list of protected classes?

A

1974

Sex

318
Q

What is CONCILIATION?

A

When HUD attempts to resolve a complaint by getting assurance from the person that they will remedy the alleged violation

319
Q

When HUD receives a complaint, it will start an investigation within…?

A

100 Days

320
Q

In ____ the HOME MORTGAGE DISCLOSURE ACT did what?

A

1975

Prohibits financial institutions from discriminating in loan activities

321
Q

What is URLTA?

A

Uniform Residential Landlord and Tenant Act

A federal law guiding Landlord/Tenant issues that State’s use as a blueprint

322
Q

What are the 2 main characteristics of a Lease?

A

Contract

Conveyance

323
Q

How long is a “reasonable time” between when a tenant provides notice to a landlord and when a tenant actually makes repairs?

A

30 Days

324
Q

A LEASE may terminate for any of the following causes…?

A
  • Term expiration or appropriate notice
  • Voluntary agreement
  • Property destruction
  • Condemnation
  • Abandonment or surrender of the premises
  • Bankruptcy of Tenant
  • Breach of contract
  • Eviction
325
Q

What is the most common form of landlord default?

A

Failure to provide services and maintain the property condition

326
Q

What is an UNLAWFUL DETAINER?

A

An Eviction order from the Court

327
Q

What is CONSTRUCTIVE EVICTION?

A

When the landlord makes the living conditions such that the tenant is forced to move out

Illegal in CA

328
Q

Explain RENT CONTROL with and without VACANCY DECONTROL

A

WITH Vacancy Decontrol: Allows property owner to set new rent every time a new tenant starts, and then that tenant is rent controlled at that amount.

WITHOUT Vacancy Decontrol: Rent Control stays with the unit even when vacant and applies to the next tenant

329
Q

If the use of a mobile home park changes and everyone gets evicted, how much notice is required?

A

6 months if Gov’t approval required

12 months Gov’t approval not required

330
Q

How many days notice to terminate must an INDIVIDUAL TENANT be given in a MOBILE HOME lease agreement?

A

60 Days

331
Q

What refers to the right a tenant has to exclusively have possession of a rental property?

A

Exclusive Use

332
Q

How many days notice, before the date of increase, must be given to homeowners in a mobile home lease agreement, regarding the increase of rent?

A

90 Days

333
Q

What option allows a tenant to arrange and pay for repairs, then deduct the amount from rent payments?

A

Repair And Deduct Option

Tenant must notify Landlord and give them 30 days to repair it first

334
Q

What type of lease conveys a leasehold interest to an owner of a cooperative?

A

A Proprietary Lease

335
Q

What describes a guarantee that a property meets the minimum health and housing codes?

A

Warrant of Habitability

336
Q

The penalties for engaging in unlicensed real estate activity are?

A

Individual: up to $20,000 and 6 months in prison
Corp: up to $60,000

337
Q

List three parties exempt from real estate licensing requirements in California

A
  1. Employees of Banks and Lending Institutions
  2. Cemeteries
  3. Short Term Vacation Home Rental Agents
338
Q

What is California’s policy regarding compensation for an unlicensed person acting in the capacity of a real estate salesperson

A

They Cannot receive any compensation

339
Q

A licensee who is 70 years old or older is exempt from the continuing education requirement if…?

A

They are a licensee in good standing in California for at least 30 years

340
Q

If someone applying for a license is on the register of people who haven’t paid child support…?

A

They will be issued a temporary license for 150 days to clear it up

341
Q

A nonresident of California is eligible for a California real estate license if

A

They complete all CA eligibility requirements

AND the state they live in reciprocates with CA

342
Q

Describe when a licensee may be issued a restricted license?

A

When a license has been suspended, revoked, or denied after a hearing.

343
Q

What are the DRE Commissioner’s Regulations?

A

Rules that are part of the California Administrative Code.

344
Q

In order for the Commissioner to investigate a complaint, what timeframe must the complaint be filed?

A

Within 3 Years

345
Q

What is the Recovery Fund?

A

Alast resort for a consumer who has obtained a final civil judgment against a real estate licensee based on fraud or certain other grounds.

346
Q

What is a Post-Dated Check considered?

A

A Promissory Note

Promissory Notes are not acceptable for real estate deposits

347
Q

What is the CA Sales & Use Tax and who enforces the collection?

A

A a tax on the retail sale of tangible personal property.

The California State Board of Equalization

348
Q

After a license is revoked, the person affected may not apply for reinstatement of the license until…?

A

1 Year has passed

349
Q

What must a landlord or homeowner post that informs workers that the homeowner is not responsible for the work being performed?

A

Notice of non-Reponsibillity?

350
Q

What happens to agency when a property is destroyed through a storm, earthquake or fire?

A

Terminated because the property no longer exists

351
Q

If a broker is also an escrow agent in a transaction, he or she must put aside any agency relationships with the parties involved and become a…?

A

Neutral Depository

352
Q

Who can file a discrimination complaint?

A

Anyone, but usually the Buyer

353
Q

If the interest-holder enjoys the right of possession of land, the party is considered to have?

A

An Estate-In-Land

354
Q

Who are the primary regulatory entities of the real estate business?

A

State Government

355
Q

What type of listing is a non-exclusive contract, authorizing a broker to serve as the agent for either the sale or the purchase of property?

A

Open Listing

356
Q

The rectangular survey system divides a township into thirty six squares called?

A

Sections

357
Q

What is NOTORIOUS POSSESSION?

A

Possession without Concealment

358
Q

What type of clause is inserted in a financing document when the lender agrees to waive the right to a deficiency judgement?

A

Exculpatory Clause

359
Q

As of October ____, 3 days before closing, the 2 forms a Buyer receives are…?

A

2015
Loan Estimate
Closing Disclosure

CA REAL ESTATE (4 decks)

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