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Questions Flashcards

1
Q

Legally and technically, property is defined as

A

Rights or interests which a person has in the thing that is owned

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2
Q

How is real property different from personal property

A

Real property is immovable

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3
Q

Real property is

A

land, fixtures, appurtenances

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4
Q

a bearing wall in a single family home is

A

real property

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5
Q

Emblements is not considered

A

real property

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6
Q

Personal property can be

A

alienated, hypothecated, and become real property

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7
Q

Barring agreement

A

the buyer because he is paying for it

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8
Q

Run w/ the land

A

easement appurtenant, covenants, stock in mutal water company

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9
Q

Appurtenances are items that run w/ the land and are incidental to the land, what is not an appurtenance

A

fixtures

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10
Q

What describes an encumbrance?

A

Anything which affects or limits to real property

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11
Q

A non money encumbrance would be

A

easement

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12
Q

Land that is subject to an easement is said to be

A

encumbered

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13
Q

The deed received contained an adequate description of land, but no reference to the easement; the buyer:

A

Has the same right to the easement as the seller did

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14
Q

An appurtenant easement always passes when

A

property is sold

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15
Q

Parcel is sold to a new owner, who fences off he parcel and padlocks the gate . the family would be advised to:

A

file a quiet title suit against the new owner to confirm their rights

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16
Q

An easement on real property would be terminated if the holder of the dominant tenement recorded a

A

quitclaim deed

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17
Q

An interest in real property may be acquired by either prescription or by adverse possession. the interest resulting from prescription is

A

the right to use another’s land

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18
Q

If garage was build a few feet over property line, what remedy can be done

A

sue for trespass

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19
Q

A money encumbrance would be

A

judgment

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20
Q

Which of the following is the best definition of an estate

A

the degree, quantity, nature, and extent of interest which a person has in real property

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21
Q

Fee simple estate

A

a present possessory interest, carries the max bundle of rights, owner has the right of possession now and indefinitely into the futre

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22
Q

Indication of a fee simple estate

A

the most interest an owner can hold in the land

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23
Q

Not included in the definition of fee simple estate

A

the property is always free of encumbrances

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24
Q

No alcohol property

A

fee simple defeasible estate

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25
Q

a life estate is best described as

A

an estate that is based of the duration of someone’s life

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26
Q

A property that will revert back to someone

A

an estate in reversion

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27
Q

a property is transferred to someone when they die

A

estate in remainder

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28
Q

owner leases her home then dies, the lease was

A

valid for as long as janet lived

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29
Q

Best indicates a less than freehold estate

A

a leasing or renting interest

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30
Q

An estate for years is a less than freehold estate and

A

it is a leasehold interest created for a particular period of time w/ a definite termination date

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31
Q

Lease for 6 months

A

estate for years

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32
Q

Rental from sept 1 to jan 1st

A

estate for years

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33
Q

governmental land use planning and zoning are important of

A

police power

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34
Q

Primary justification for zoning ordinances is to

A

promote public health, safety, morals and general welfare

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35
Q

Davis has a property that is zoned R-3, and city changes zoning to R-1, what happens

A

it is legal, non-comforming and the current use is grandfathered in

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36
Q

assets reverts to the state

A

escheat

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37
Q

Planning commission does not

A

regulate zoning ordinances

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38
Q

Master plan is concerned w/

A

seismic safety issues, location of streets, futuristic planning

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39
Q

burning trash

A

local air district

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40
Q

general purpose of local building codes

A

to provide minimum requirements and standards for the protection of the public safety, health, welfare and general well being

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41
Q

Building code conflicts w/ the uniform building code, what would take priority

A

whichever code imposes the higher standards of safety

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42
Q

Law define a subdivision

A

5 lots or more

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43
Q

who usually sets deed restrictions on a subdivision development

A

the developer

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44
Q

Private restrictions on real property can be written as a condition or a covenant, most correct concerning restriction

A

violation of a condition can result in penalties that are more severe and can result in loss of title

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45
Q

The covenant of quiet enjoyment relates most directly to

A

possession of real property

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46
Q

a subdivider must give a copy of the commissioner’s final public report to which

A

any person, at any time, upon request

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47
Q

commissioner’s final public report does not include

A

assurances that the developer is not charging an excessive price for the property

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48
Q

Represents the property sequence for building a residential subdivision

A

acquisition, approval, development

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49
Q

When the real estate commissioner wishes to rescind approval of a new subdivision, he would

A

issue a desist and refrain order

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50
Q

a subdivider receives a negative declaration, this means

A

it means that building subdivision at this location will not harm the environment

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51
Q

an undivided interest, in common, in a parcel of real property, together with a separate interest in airspace in a particular unit

A

Condominium

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52
Q

Include in selling a condominium

A

CCRs, bylaws, copy of the most recent financial statement

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53
Q

True of an infill developer

A

he is looking for an underutilized lot in highly populated urban area and seeking to maximize the use of that lot

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54
Q

Smart growth refers to

A

development that is ecology friendly

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55
Q

Brownfield’s economic development initiative

A

HUD program to distribute funds to public agencies and purpose is to assist in redeveloping a contaminated industrial and commercial properties

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56
Q

EPA

A

superfund

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57
Q

waters found beneath the surface of land

A

percolating waters

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58
Q

right to pump out and use underground water

A

overlying rights

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59
Q

water adjacent to land is moving watercourse, like a river, the owner is

A

a riparian owner

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60
Q

body of water adjacent to land is not flowing and has shoreline, owner is

A

littoral owner

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61
Q

taking of water from a public stream for private use is

A

appropriation

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62
Q

Fiduciary duties are

A

utmost care, integrity honesty and loyalty

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63
Q

A broker acting in a fiduciary capacity… exchanging real property is said to be of

A

an agency

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64
Q

Real estate licensee generally acts

A

as a fiduciary

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65
Q

Defines the principal

A

it is the personal who has appointed an agent to represent him or her in dealings w/ third parties

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66
Q

Describes a client in a transaction

A

the principal

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67
Q

Identifies a customer in a transaction

A

the party owed simply honestly and fairness

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68
Q

Identifies the agent in a transaction

A

broker who has entered into a contract w/ the principal

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69
Q

When dealing w/ the public, a broker may not

A

remain silent concerning material facts about a property known only to herself

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70
Q

Not legally for a licensee to do

A

keep the client’s secret that the roof leaks

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71
Q

Describes pratice of a single agency

A

the single agency broker is client oriented

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72
Q

describes dual agency

A

dual agency is legal, but only w/ the knowledge and consent of both buyer and seller

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73
Q

when an agent represents both buyer and seller in a transaction, what is not permitted

A

disclosing to a buyer that the seller will sell for less than the asking price

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74
Q

“power of attorney”

A

it is a form of agency

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75
Q

true regarding attorney in fact

A

the attorney in fact must record the power of attorney

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76
Q

best way to create an agency relationship

A

by written agreement

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77
Q

owner signs a listing agreement w/ broker that they are specifically representing

A

a special agent

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78
Q

Agency relationship not be established by

A

a voluntary offer by the agent

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79
Q

Agency cant be created by a

A

subornation

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80
Q

Consideration and the issue of agency

A

consideration is not required to establish an agency relationship

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81
Q

Seller’s agent

A

seller’s agent acts as agent for the seller only

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82
Q

A seller’s agent owes to both the buyer and seller in a transaction except for

A

fiduciary duties

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83
Q

a seller’s agent is obligated to reveal all of the following information to a buyer except when

A

confidential information

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84
Q

a listing agent is

A

the seller’s agent

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85
Q

When an agent took a listing and promised something but failed it is

A

actual fraud

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86
Q

seller’s agent relived of the obligation to present an offer to the seller

A

when the offer is patently frivolous or he is acting on express instructions of the principal

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87
Q

a seller’s agent must do all of the following but

A

present all legitimate offers, even agent close of escrow

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88
Q

A buyer’s agent owes fiduciary obligations to which of the following parties in a transaction

A

the buyer only

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89
Q

Concerning buyer agency

A

a buyer’s agency has no fiducciary duty to the seller or the seller’s agent, and it not liable for their actions

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90
Q

when a seller’s agent receives an offer from a buyer and accepts a deposit on the offer that has not been authorized by the seller, which is true

A

he has become a buyer’s agent for the one act of receiving the deposit

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91
Q

when a broker acts exclusively as a buyer’s agent she can

A

present offers to the seller and seller’s agent

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92
Q

what shall a listing broker disclose to a seller how he or she is performing as agent in the transaction

A

as soon as practicable

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93
Q

must be disclosed by a licensee

A

buyer in the transaction spouse, acting as principal in this transaction w/ the intention of making financial gain, acting as principal as well as special agent

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94
Q

a relationship may be terminated by

A

completion of the task

95
Q

legitimate method of terminating an agency relationship

A

mutual agreement of the parties to terminate

96
Q

if a principal no longer desires the broker to act for him during the period of an exclusive right to sell listing

A

can revoke the agency created by the listing

97
Q

Automatically terminate an agency

A

broker died, listing expired

98
Q

Could also terminate agency relationship

A

house burned down

99
Q

Terminate agency relationship

A

seller files for bankruptcy

100
Q

agency relationship may be terminated by

A

estoppel

101
Q

When appraising real property, the appraiser attempts to estimate value, the value arrived at is

A

based on an analysis of facts as given date

102
Q

Value is

A

a relationship between the desirous persons, ability of one commodity to command, present worth of future benefits

103
Q

Considered facts is not

A

value

104
Q

not taken into consideration in value

A

cost of material and labor

105
Q

represents market value

A

the most probable price a property will bring in an open market

106
Q

closest to market value

A

market price

107
Q

4 essential elements of value are

A

utility, scarcity, demand and transferability

108
Q

improved value of land

A

current market value of the land and the improvements

109
Q

4 phases of the business cylce

A

prosperity, recession, depression, and expansion

110
Q

Neighborhood life cycle is comprised of

A

development, stability, decline and revitalization

111
Q

Ethical for an appraiser to do

A

appraise a property in which the appraiser has an interest, provided she first disclose the interest

112
Q

in arriving at an estimate of value, an appraiser would be interested in the date

A

the price was agreed upon

113
Q

real estate appraisal is limited to what period of time

A

the given date

114
Q

an appraiser who does not use generally accepted methods in order to influence a FDIC insured lender may be guilty of

A

a felony

115
Q

when appraising a single family residence, an appraiser will not consider

A

the assessed value

116
Q

what type of appraisal license is required to appraise a strip mall

A

certified general license

117
Q

a narrative appraisal report is the most extensive type of appraisal report available, but what item of information is generally not included in this type of report

A

the type of financing readily available in the community

118
Q

in a narrative appraisal report, where would the client find the type of value being estimated

A

the statement of purpose

119
Q

defines a fee appraiser

A

an appraiser who is self employed and charges a fee

120
Q

an appraiser is analyzing a parcel of vacant land to estimate its value. what is needed first

A

the highest and best use of the land

121
Q

Property must be valued at it’s highest and best use. if a parcel of land has a building on it that is not contributing to it’s highest and best use, appraiser should

A

deduct the demolition cost from the estimate of value

122
Q

Definition of highest and best use, you will find the phrase

A

greatest net return

123
Q

the primary purpose of which an appraiser would perform a site analysis is to determine

A

highest and best use

124
Q

When the highest and best use of a property is expected to change, the property current use is called

A

the interim use

125
Q

objectives of an appraisal

A

support sales price, make a loan, start an improvement project

126
Q

After an appraiser accumulates various value indications for a property, what is next

A

reconcile the data

127
Q

why does real estate have value

A

maximum utilization of available resources

128
Q

no prudent person would pay more for a parcel of real property than the price of a reasonably close alternative

A

substitution

129
Q

When identical or highly similar properties are offered for sale, consumer demand will normally focus on the property offered at the lower price

A

substitution

130
Q

When real property increases in value b/c of an increase in population, this is classified as

A

an unearned increment

131
Q

An increase in value of real property over time is appropriately called

A

appreciation

132
Q

Placing two or more contiguous units under common ownership for the purpose of increasing the value per unit is known as

A

plottage

133
Q

Appraisals of a single family dwelling are usually based on

A

sales prices of comparable homes

134
Q

in the market data approach to value, make sure

A

sales are recent, similar to the subject property, located near to the subject property

135
Q

the basis of the market data approach to value is found in

A

the principle of substitution

136
Q

sales prices adjustments are made b/c

A

no two properties are similar concerning everything

137
Q

if a comparable property has a feature that is not present in the subject property, the value of that feature will be

A

subtracted from the sale price of the comparable

138
Q

the hardest and yet the most important part of the market data method of appraising is

A

adjusting the correct amount for the differences between the comparable properties and the subject property

139
Q

most readily adaptable for use by licensees

A

the market data (comparison) approach

140
Q

appraisal assignments are answered w/ market data approach:

A

single family residency, vacant land, rental schedules

141
Q

effectiveness of the market data approach is limited by which of the following circumstances

A

economic conditions that rapidly change, in an inactive market

142
Q

if an appraiser is appraising a special property like city hall, she will use

A

the cost approach

143
Q

best represents the correct sequence to perform the cost approach

A

estimate the cost of the house new, subtract deprecation, and add the value of the land

144
Q

where should the value estimated from the cost approach be in relation to market value

A

it should be higher, representing the upper limits of value

145
Q

Comparing “replacement cost” w/ reproduction cost, best identifies

A

the present cost to replace the building w/ another building having the same utility

146
Q

when comparing the term “replacement cost.” w/ “reproduction cost.”

A

exact replica

147
Q

An appraiser is appraising a single family home that was built in 1910

A

reproduction

148
Q

survey method, unit in place method, square food method, cubic food method, connected w/

A

the cost approach

149
Q

usefulness of the cost approach would be most limited in which of the following circumstances

A

appraising an old structure w/ many functional deficiencies

150
Q

Usefulness of the cost approach would be most limited in which of the following circumstances

A

appraising an old structure w/ many deficiencies

151
Q

not important in appraisal of a single family home

A

original cost of the construction

152
Q

building on an empty lot, debating whether to build a 3000 square foot house, if he goes smaller then

A

more cost per square foot than the larger house

153
Q

Capitalization is a process used to

A

convert income into value

154
Q

Capitalization (income) approach

A

present worth of future benefits

155
Q

in arriving at an effective gross income figure, an appraiser of rental property makes a deduction for

A

vacancy

156
Q

item would an appraiser use to arrive at a net income for capitalization purpose

A

Management expenses

157
Q

In the capitalization method of appraising the most difficult step is

A

select a capitalization rate

158
Q

“loss in value from any cause.”

A

depreciation

159
Q

causes of depreciation include

A

physical deterioration, functional obsolescence, economic obsolescence

160
Q

obsolescence is best defined as which

A

impairment of desirability and usefulness

161
Q

not contribute to obsolescence

A

wear and tear from use

162
Q

not functional obsolescence

A

house backs up to the freeway

163
Q

two houses build the same w/ different appraisals

A

functional obsolescence was left uncorrected in one of the properties

164
Q

economic obsolescence

A

a house located in close proximity to high tension wires, situated on a busy street, zoning changes have caused a loss in value

165
Q

economic (external)obsolescence is not affected by

A

an outdated kitchen

166
Q

type of depreciation that is most difficult to cure is

A

economic (external) obsolescence

167
Q

the time period during which a building earns sufficient income to justify its continued operations is a definition of

A

economic life

168
Q

due to quality of construction and maintenance, a 15 yr old house can appear to be only 6 years old, this demonstrates

A

effective age

169
Q

The gross rent multiplier is used by dividing

A

sales price by gross monthly rental

170
Q

the truth in lending law

A

disclose credit terms to consumers in a meaningful way

171
Q

to implement the truth in lending act, ___ regulation requires furnish truth in lending disclosures to the consumer

A

creditor

172
Q

an exemption from coverage under regulation Z is extended primarily for all of the following types of loans except

A

residential

173
Q

Under the federal truth in lending law, the consumer has the right to rescind under

A

when the loan is secured by a lien against the consumer’s existing principal dwelling

174
Q

under the federal truth in lending law, two of the most critical facts that must be disclosed to buyers or borrowers are

A

finance charge and annual percentage rate

175
Q

The effective interest rate is

A

the rate actually paid by the borrower for the use of the money, the nominal interest rate is the rate specified in the note

176
Q

if a loan advertisement contains any triggering terms, like the down payment or the amount of any payment, or the finance charge then the ad must also contain

A

terms of repayment, whether the interest rate can be increased, the APR

177
Q

The real estate settlement procedures act was established for what purpose

A

to ensure that borrowers, buyers, and sellers receive accurate closing cost information

178
Q

RESPA loans

A

federally related loans for the purchase or refinance of 1-4 owners occupied residential units

179
Q

RESPA, time frame under which a loan estimate must be provided to a borrower

A

within three business days of receipt of completed application

180
Q

Under RESPA, the most lender can charge for preparation of teh closing disclosure

A

nothing

181
Q

RESPA requires that a borrower receive information regarding closing costs, best describes how points are applied in the financial services industry

A

it is loan origination fees and discounts to adjust investor yields

182
Q

a charge imposed on specific real property by which the property is made collateral for a loan is called

A

lien

183
Q

a lien is created by recording

A

a trust deed or mortgage

184
Q

which of the following is a lien

A

an attachment

185
Q

when a seller carries back a second trust deed, this creates

A

a specific lien

186
Q

when a judgment has been created by court action, and it covers all properties of the debtor in the county where it is recorded, it is known as

A

an involuntary general lien

187
Q

what is the best description of a property tax lien

A

an involuntary specific lien

188
Q

which of the following is an example of a voluntary lien

A

a purchase money trust deed

189
Q

Carpenter installed hardwood floors in a new house, and when the invoice was not paid for his work, filed a mechanic’s lien, the priority of his claim is

A

the date construction on the new house was begun

190
Q

if a homeowner remodeled his home and did all the work himself, how is it possible he could find a mechanic’s lien recorded against his house

A

he failed to pay the suppliers of the materials

191
Q

time frame of a contractor filing a mechanic’s lien as it pertains to a notice of completion

A

if a notice of completion is recorded, the contractor has 60 days to file, and if it not recorded, the contractor has 90 days to file

192
Q

A negotiable instrument

A

a mortgage securing a promissory note

193
Q

a promissory note is

A

evidence of the debt

194
Q

regarding a trust deed, the trustor

A

is the borrower

195
Q

documents a trustor signs

A

note and trust deed

196
Q

party who loans the money on real property and secures that loan by means of a trust deed is

A

the beneficiary

197
Q

the power to sell a property in the event of a default under the terms of a trust deed is given by

A

trustor to the trustee

198
Q

describes a trustee

A

a third party w/ fiduciary duties to the beneficiary

199
Q

What services does a trustee provide

A

it records a notice of default upon instruction from the lender, publishes a date of sale, and conducts the trustee’s sale when necessary, it issues a reconveyance deed when the debt is paid and the trust deed is terminated

200
Q

when must a trustee sign and record a reconveyance deed

A

within 21 calendar days of receiving a request for full reconveyance

201
Q

from the time a notice of default is recorded, approx how much time does it take to get to the trustee’s sale

A

four months

202
Q

What are the rules of reinstatement of a trust deed loan after the notice of default has been recorded

A

the loan can be reinstated up until 5 days before the sale

203
Q

when a trustee’s sale has taken place, what kind of deed will the winning bidder receive

A

a trustee’s deed

204
Q

a clause in a trust deed stating that the rights of the beneficiary shall be secondary to a subsequent trust deed is

A

a subordination clause

205
Q

lenders disburse the last payment when the

A

period to file a lien has expired

206
Q

Who are the parties in a mortgage contract

A

mortgagor and mortgagee

207
Q

Why would such a lender sue in court rather than go through a trustee’s sale

A

the lender can obtain a deficiency judgment against the borrower in a judicial foreclousre, but not through a trustee’s sale

208
Q

is a trustee’s sale final

A

yes, the trustor has no recourse

209
Q

an installment note is nearest to

A

a note that calls for the payment of both principal and interest in specific amounts and at specified intervals

210
Q

A fully amortized loan is nearest to

A

a loan where the debt is liquidated by the end of the term

211
Q

the amount of each payment applied to a principal balance will

A

increase while the interest payment decrease

212
Q

when the interest rate on a real estate loan can be increased or decreased depending on money market conditions, this is

A

an adjustable rate mortgage

213
Q

when comparing a straight note w/ an installment note, the straight note

A

will have no principal payments during the term of the loan except on the last payment

214
Q

a partially amortized loan is best described

A

it requires a balloon payment

215
Q

balloon payment

A

the required payment of the entire balance due

216
Q

a land contract is a real property conditional installment sales contract set up between a buyer and a seller, what happens when a vendor (seller) executes the contract

A

the vendor conveys equitable title to the buyer (vendee)

217
Q

best defines equitable title in a land contract

A

the right to use and possess the property and to obtain legal title when all conditions of the contract are met

218
Q

the relationship between vendor and vendee is similar to which of the following

A

beneficiary and trustor

219
Q

if the vendee defaults on a land contact, what are the remedies available to the vendor

A

a quiet title action in court, ask for a quitclaim deed from the vendee

220
Q

a mortgage loan is generally insured by

A

FHA or PMI

221
Q

FHA (federal housing admin) was created in 1934 primarily to provide

A

insurance for home loans made by approved lenders

222
Q

what types of payments are allowed on an FHA loan

A

monthly only

223
Q

Not permitted when using an FHA loan to purchase a home

A

a junior loan

224
Q

w/ an FHA loan, what is permissible

A

a gift down payment from a family member

225
Q

loan with no down payment

A

VA loan

226
Q

when a home is financed under the state of California vet farm and home purchase plan, the following is used

A

a real property purchase contract

227
Q

Vendor in a Cal-Vet loan

A

the department of veterans affair

228
Q

which of the following loans require a life/disability insurance policy for the buyer

A

cal-vet

229
Q

Special California loan program is designed to help first time low income buyers

A

CalHFA

230
Q

CalHFA loan made through private lenders, loans are funded

A

by the sale of tax exempt gov bonds

231
Q

Inflation most nearly means which

A

the price of most goods and services is increasing over time

232
Q

a difference between mortgage bankers and mortgage brokers

A

mortgage brokers do not usually loan their own money

233
Q

30,000,000 loan

A

life insurance companies

234
Q
A

Trainers Prep (10 decks)

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