Mix Flashcards
Which of the following is not a Ca starting point in the U.S. Government Survey System?
Baja Base line and Meridian
A single person can avoid paying capital gains taxes on up to what amount of profit from the sale of a residence
$250,000
What is required in California for a valid real estate contract?
A consideration and acceptance by both parties
Under the department of real estate commissioners rule and regulations, which of the following would be required to have a written employment contract with a broker?
A real estate broker working for another real estate broker
Which word best describes the effects of income taxes as your income increases
Progressive
Which of the following is an example of a voluntary lien
Trust deed
The seller must provide the buyer of a condominium with:
-the CCnR
-the by laws
-a Copy of the most recent financial statement
What type of commission plan does a broker not charge a fee, but a commission based on a percentage of the selling price?
Straight commission plan
What was the purpose of president Biden HUD-led task force, property appraisal and valuation equity? (PAVE)
Establish new appraisal standards
A neighborhood in which a real estate agent “cultivates “ new clients by contacting its resident up to 12 times a year in order to update them on real estate activities and values
Geographical Form
When an owner decides and try’s to sell his own property
FSBOs, For Sale by owner
This type of newspaper advertisement is designed to advertise a specific property and enjoys high readership among those looking for low and medium priced housing
Classified ads
A time-tested, step-by-step method used in writing ads; this formula gets the job done
AIDA-Attention, Interest, Desire, and Action
Advertising of Real Estate credit terms is under this federal organization Jurisdiction
Consumer Finance Protection Bureau (CFPB)
An informative analytical tool that logs in daily calls that specifically gives you a daily and historical review of how effectively your brokerage is advertising and includes important caller data
Traffic Sheet
Type of advertising that is sent using the U.S. postal Service
Direct Mail
Article 9
The regulations of the Real Estate commissioner also establishes advertising guidelines and restrictions
A comparison of one property’s value to similar recently sold properties is called
Comparative market analysis
FSBO is an abbreviation of
For sale by owner
CMA stands for
Comparative Market Analysis
The time-tested model used in writing ads to s the AIDA formula, which stands for
Attention, Interest, Desire, Action
Brokers owe a duty of the highest care and confidentiality to their principal (clients) whose interest they promote even at the cost of some greater benefit to themselves
Fiduciary Relationship
Listings that did not sell within the contract period
Expired listings
Calls made to people you already know and which are usually more productive
Warm calls
If a landlord knows that there is a current bed bug infestation, he or she
Cannot show or rent vacant units
An agreement where the seller of a business agrees to not open a competing business for a period of time within a specific geographical area is referred to as:
A covenant not to compete
In california, before selling real property securities to the public, the broker must obtain an endorsement from the:
Governor
California department of real estate
State franchise board
Which of the following are operating expenses the DO vary
Utility cost
Property management
Cleaning and Maintenance
The illegal practice of misappropriation and using the client’s money is called:
Conversion
The economic principle that states, “ if two properties are equally desirable, the less expensive one is likeliest to sell first “ is the:
Principle of substitution
When there are more unsold properties available for purchase in a specific neighborhood than buyers, an appraiser and a real estate agent would describe this as a
Buyers Market
What is generally the main purpose for ordering an appraisal
To determine market value
What is generally the main purpose for ordering an appraisal
To determine market value
An___________ is usually ordered to determine the true average property value by analyzing both general data of purchase.
Appraisal
General Data
Economic and neighborhood trends
Specific Data
Lot size, shape of house zoning for the subject property
A self- employed appraiser who is hired to appraise properties for a fee may be referred to as ________ ________ because he or she is usually paid a flat fee for the services he or she performs.
Fee appraisers
Appraisers are certified and licensed by the state of California. Under federal law , a state-licensed appraiser, as set out in the ______ ______ ______ _______ ________ ______ ( USPAP) guidelines, may work on federally-Related, federally-backed, or federally-Insured mortgage loans or government owned properties.
The four elements of value are:
Utility, Scarcity, Demand, and Tranferability
Principle of substitution
Given the choice between two identical homes to purchase, a buyer is likely to buy the more affordable one.
The depth of value of a property site may be described by way of a value principle known as the 4-3-2-1 rule. The site’s value is broken down as follows: 40% _____ 30%____, 20%______ and 10%______.
40% front quarter of the land site that is adjacent to the street
30% second quarter
20% third quarter
10% back portion of the lot
The rebuilding of a property structure estimate is ________ ________ and ________ _______
Reproduction Cost
Replacement Cost
Damage to a property or physical deterioration is classified as ______(fixable) or_______( when the cost to repair or correct is not financially within reason) curable physical deterioration is also known as __________ _________
Curable
Incurable
Deferred maintenance
The _______ _________ ( or cap rate) is used to convert the net operating income (NOI) into a meaningful present market value
NOI
———=value
CAP Rate
Capitalization Rate
Who has unity of “time, title, interest, and posesión?”
Joint tenants
Who has unity of “time, title, interest, and posesión?”
Joint tenants
What is it called when two or more parties hold undivided interest?
Tenancy in common
What is it called when two or more parties hold undivided interest?
Tenancy in common
What may arise after a periodic or term tenancy ends upon mutual acceptance?
Tenancy at will
Ownership in severalty is equivalent to_______
Sole ownership
Title to a property that is sold with a condition that the land will not be used for selling alcohol create a (n) .
Fee simple difeasable
What term may also be defined as an estate of inheritance?
Freehold Estate
An agreement is signed between two parties for the use and possession of real property for 60 days which creates a (n).
Term tenancy
Which of the following gives the owner the most absolute rights and unlimited duration?
Fee simple absolute
A possessory interest with limited duration or time is a
•leasehold
•Less-than freehold estate
Property usually refers to ______
Rights or interest in something owned
Escrow
Is the place where money documents are held by a neutral third party, up until the transaction is about to close
An agreement made by two spouses for the sale of community property is ________.
Valid
What best defines community property as it relates to ownership
All property purchased by a spouse or domestic partner that is not separate property.
What is it called when two or more parties hold undivided interest?
Tenancy in common
Who has unity of “time, title, interests, and possession?
Joint tenants
What may arise after a periodic or term tenancy ends upon mutual acceptance?
Tenancy at will
Ownership in severalty is equivalent to
Sole Ownership
An agreement is signed between two parties for the use and possession of real property for 60 days which creates
Term tenancy
What term may also be defined as an estate of inheritance?
Freehold estate
Title to a property that is sold with a condition that the land will not be used for selling alcohol creates
Fee simple defeasable
Which debt-to-income ratio will a lender prefer the most for a mortgage borrower applicant?
25% front-end-debt ratio
What is the best FICO risk score for a borrower applicants?
775
What is the very first section on 1003 mortgage loan application form?
Type of terms of mortgage requested
Seller-financed mortgage disclosure laws go into effect when there are more than how many buyer payments to the seller after the down payment that is originally made at the time of closing?
4
A fee that a borrower may pay for a slightly lower fixed rate is called a:
Discount Point
Which loan is likeliest to have a balloon payment?
Partially- amortized loans
What is a type of demand deposit account?
Business Checking
Personal Checking
Which of the following gives the owner the most absolute rights and unlimited duration?
Fee simple absolute
Which funded mortgage loan is the least likely to be sold to Fannie Mae or Freddie Mac in the secondary Markets?
Private mortgage
Which statements about mortgages insured by FHA is most true?
The borrower usually must be an
owner-occupant
What is another name for a lenders loan commitment?
Pre-approval letter
The first set of ________ ________ is usually based on the signed countersigned purchase contract. These details usually include _______, closing dates, _______ _______, earnest money, ________ ________, any existing lenders to be paid off, and various contingency dates.
Escrow instructions
Purchase Price
Commission Fees
Deposit Receipts
All independent California escrow companies must be licensed by the _______ ________ _______ _______.
Department of business oversight
Are the property tax payments likely to be listed as a recurring cost in a closing statement for escrow?
Yes
What is the name of the document that an escrow officer will send out to a lender about to be paid off?
Beneficiary statement
For disputes over funds held by escrow between a buyer and seller, the legal action that is taken by an escrow company is called?
Interpleader
A buyers side of the settlement statement will probably contain?
Mortgage loan origination fee
The best rate fee for most types of documentary transfer tax fee is approximately?
$1.10 per every $1000 of sales price
What are the MARIA acronyms
Method of attachment
Adaptability
Relationship of the parties
Intention
Agreement between the parties
Accession
The process of manufactured or natural improvement or addition to property
Acceleration Clause
Provision in a real estate financing instrument allowing the lender to declare the fall debt due immediately and f the borrower breaches any of the provisions of the loan agreement, also referred to as a call provision.
Abstract of Title
Summation of all recorded transfers, conveyances, legal proceedings, and any other facts relied on an evidence of title to show ownership continuity and signify any possible loss to tittle.
Abstract of Judgement
Document that summarizes the result of a legal action, which can be filed in any county where the judgment debtor owns a property.
Acquisition Cost
Amount of money required to acquire title to a property; it includes the purchase price as well as the closing costs, legal fees, escrow, service charges, title insurance, recording fees.
Acre
- 160 square rods
- 4,840 square yards
- 43,560 square feet
- A tract of about 208.71 feet square
ADA
American with Disabilities Act
The value of smaller and older properties will likely increase when surrounded by larger and newer properties under the economic theory of__________.
Principal of theory
The real estate valuation theory states that a property of much higher value than a surrounding inferior ( or smaller or older) properties will likely be negatively impacted is the ______________.
Principal of regression
Where is usually the best source of recent sales for CMA reports?
MLS
Value of use
Is more of an “eye of the beholder “ situation when when the property owner thinks their beloved home is worth much more than the market value partly due to their fond memories
Value in exchange (market value )
Is the objective value for a property as seen in the eyes of an average person who has no favorable bias towards the home
A CMA (comparative Market Analysis)
Report will likely include sales or listing comparable within the past six months of the date of the completed CMA report
Appraisers are likely to use one, two or three approaches to determining the value of land, homes, or commercial properties. The three value approaches are:
- Cost approach
- Income approach
- Sales comparable approach
Principal of regression
Inferior and smaller properties that surround a property that is overbuilt for the neighborhood may negatively affect the larger homes value ( e.g., a large, modern home built in a neighborhood of older, small two- bedroom,
Principal of progression
The value of smaller and /or older properties will probably increase surrounded by larger and newer properties.
Ad Valorem
Latin phrase meaning: According to Value. Referring to taxes assessed on the value of property.
Adverse Possession
A way of acquiring title to real property belonging to someone else by occupying it without permission, and fulfilling other statory requirements.
Affidavit
Acknowledged Sworn Statement in writing made before a notary public ( or any other official authorized to administer an oath)
After-Acquired Title
If a tittle is acquired by a grantor, only after a conveyance to a grantee, the deed to the grantee becomes legally competent ( usually 18 years old)
Agency Apparent
When the impression given to a third party is that someone who hasn’t been approved to represent another is that person’s agent, or the impression that an agent has been approved to perform acts which usually beyond the capacity of his authority
Agency, Dual
An agent relationship where the agent represents two principals in their dealings with each other.
Agency, exclusive
Listing Agreements that employs a broker as sole agent for a seller of real property for which the broker is entitled to compensation if the property is sold via any other broker, but not if a sale negotiated by the owner without the services of an agent
Which metropolitan region in California had the highest median list prices as of 2017?
San Francisco
How many active real estate brokers were in California as of 2020?
93,795
How many active real estate salespersons ( agents) were in California as of 2020?
206,308
According to the national association of realtors, home many homes sold across the nation in October 2020?
6.85 million
Over the past several decades, what was the average ratio of active sales person to brokers in California ?
1.5-1
Per federal poverty Guidelines established by the u.s. department of health and human services, which income level was considered the national poverty living in one household in 2020?
$26,200
Which household annual income amount would qualify as the top 5% for all families through out the country in recent years?
$130,000
Nationwide, what percentage does the equity in a primary residence represent for a household overall net worth?
68.62%
How many times did the federal reserve raise its FED funds rate during 2004-2006, just a year before the official start of 2007 credit crisis
17
Personal property (also referred as “personalty or chattel”) may be described as
Tangible or intangible
Land
Is legally defined as the real estate, minus the building improvements and equipment that do not occur in a natural way.
Bundle of rights
Include five different rights: possess, control, enjoy, exclude, and dispose.
There are two types of systems that apply to water rights:
Riparian and appropriative
Littoral rights
Are rights of owners of properties that are adjacent to large, navigable oceans and lakes and non-flowing smaller backyard ponds.
Method of attachment and whether the item is personal or real property under MARIA acronym:
Method of attachment
Adaptability
Relationship of the parties
Intention
Agreement between the parties
Public land survey system (PLSS)
Is the main legal definition used for most types of U.S. properties
What does PalSS stand for
Public land survey system
What is the Public Land survey system (PLSS) for?
Is the main legal definition system used for most types of properties.
The rectangular survey system is a
Type of land survey that is approximately 24 miles square. It is bound by base lines that run east and west, and meridians that run north and south.
Township
Is six miles north or south from the base line, which is the designated parallel.
Metes
Are property’s boundary lines that are determined by measuring its straight lines or a distance between two points.
Bounds
Are descriptions based on landmarks , or what types of things, buildings, or locations are adjacent to the property site such as a wall , a street, or a railroad.
Another name for personal property is
Personalty or chattel
Personal property that is tangible is
Touchable
An example of intangible property is
Corporate stock
The right to encumber is known as the right to
Borrow money against
Real property may be defined as
Land
Personal property may be
Movable
Touchable
Intangible
What is in the bundle of rights
- Right to possess
- Right to control
- Right to exclude
- Right to enjoy
- Right to Dispose
What is the acronym MARIA used for?
Improvements made to land to help determine if it’s considered permanent or temporary attachment.
*permanent=real property
*Temporary =personal property
The riparian doctrine omits about which type property issue?
Water rights
The California Gold Rush began peaking in
1848 and 1849
California was admitted to the Union as the 31st state on
September 30 1850
Which non-native American explorer reached land in California first?
Juan Rodriguez Carrillo
Who was the first person to discover large amounts of gold that began the gold rush in the region that would later become California?
James Marshall
How many ounces of gold were supposedly excavated in the California region during the peak of Gold Rush Years?
12 million ounces
What percentage of Americans live in regions that are designated as urbanized areas?
80%
