Quick Quiz 10 Flashcards
In the absence of a special agreement to the contrary, a trust deed normally having highest priority is one that was A) a construction mortgage. B) executed and delivered first. C) executed first. D) recorded first.
D) recorded first.
Mr. Jones made application to Federal Pacific Bank for a loan November 1. The loan was approved on November 5. Mr. Jones waived his right to a Uniform Settlement Statement under RESPA in writing and escrow closed on November 15. The lender must supply the Uniform Settlement Statement
A) as soon as practical after the close of escrow.
B) on November 15, the settlement date.
C) to FHA only.
D) three days after the settlement date.
A) as soon as practical after the close of escrow.
The borrower may waive the right to delivery of the completed Uniform Settlement Statement no later than at settlement (closing). In such case, the completed Uniform Settlement Statement shall be mailed or delivered to the borrower and seller as soon as practicable after settlement.
Which term relates to time, title, interest, and possession? A) Mortgage B) Tenancy in common C) Severalty D) Survivorship
D) Survivorship
Mrs. Jones had Broker Smith negotiate a new $2,500 second trust deed on a home with a term of two years. What are the maximum costs and commission Mrs. Jones will have to pay? A) $640 B) $195 C) $415 D) $250
A) $640
Maximum costs: 5% or $390, whichever is greater $390
Maximum commission: Junior TDs of 2 years or more $250
Total costs and commission $640
The person who receives personal property through a will is called a(n) A) testator. B) devisee. C) administrator. D) legatee.
D) legatee.
A legatee is the receiver of a legacy, which is a willed gift of personal property. A devisee is the receiver of a devise, which is a willed gift of real property.
The receipt for a subdivision final report must be kept on file by the subdivider or his agent for A) three years. B) one year. C) four years. D) two years.
A) three years.
The broker must retain all documents for at least three years, including the receipt for a final public report. (A few documents must be retained for four years, including the disclosure statements from Articles 5, 6, and 7 of the Real Estate Law.)
The purchase price of a property amounted to $50,000 with the buyer assuming an existing $30,000 loan. If the documentary transfer tax is $0.55 for each $500 or fraction thereof, what was the tax paid on the transaction? A) $33 B) $55 C) $22 D) $44
C) $22 $50,000 Purchase price –30,000 Loan $20,000 Equity $20,000 ÷ $500 = 40 × $0.55 $22
According to Title VIII of the Civil Rights Act of 1968 and an 1866 law enacted by Congress, a person discriminated against in the purchase of a home because of race could go into court and the court could determine all of these rulings EXCEPT
A) money damages and punitive damage to prevent a recurrence.
B) money damages for humiliation and embarrassment.
C) money damages and specific performance.
D) revocation and suspension of broker or salesperson’s license if the court concludes he has discriminated.
D) revocation and suspension of broker or salesperson’s license if the court concludes he has discriminated.
Only the real estate commissioner has the legal authority to suspend or revoke a license.
Which is NOT an element of value? A) Utility B) Expectation C) Scarcity D) Transferability
B) Expectation
Expectation is not one of the elements of value. The four elements of value are: (1) demand, (2) utility, (3) scarcity, and (4) transferability (DUST).
What is included in an FHA loan? A) Prepayment penalty B) Schedule of payments C) Secondary financing D) Mortgage life insurance
B) Schedule of payments
The borrower would need to know the schedule of payments for the loan. FHA loans do not have prepayment penalties. Secondary financing is not normally permitted at the origination of the first loan. Mortgage life insurance is not a requirement of an FHA-insured loan (although mutual mortgage insurance is a requirement to protect the lender against default of the borrower).
Wall studs are placed on and secured to A) joists. B) subflooring. C) sole plates. D) girders.
C) sole plates.
A sole plate is a member (piece of lumber), usually a 2 × 4, on which wall and partition studs rest.
All of these are essential elements of a simple contract EXCEPT A) legal object. B) mutual assent. C) competent parties. D) proper writing.
D) proper writing.
The four essential elements of a simple contract are consideration, competent parties, a lawful object, and mutual assent. The statute of frauds requires that only certain contracts must be in writing to be enforceable in court, not all.
A due-on-sale clause, whether it is enforceable or not, contained in a mortgage or trust deed is a type of A) executed clause. B) acceleration clause. C) legally enforceable clause. D) defeasible clause.
B) acceleration clause.
A “due-on-sale” clause, also called an alienation clause, is a form of an acceleration clause found in some mortgages or trust deeds authorizing the lender to call the loan when the property is conveyed. This clause eliminates the new buyer’s assuming the mortgage unless the mortgagee permits the assumption, in which case the mortgagee could increase the interest rate and/or charge an assumption fee.
Which statement regarding a prepayment penalty in Cal-Vet financing is correct effective 1998?
A) The prepayment is 2% of the current loan balance.
B) If a Cal-Vet loan is paid off within the first five years there is a prepayment penalty based on the original loan amount.
C) If a Cal-Vet loan is paid off within two years of inception it requires a 2% penalty based on the current loan balance.
D) There is no prepayment penalty for an early payoff on a Cal-Vet loan.
D) There is no prepayment penalty for an early payoff on a Cal-Vet loan.
Functional obsolescence would NOT be attributable to A) lack of air-conditioning. B) proximity of nuisances. C) eccentric design. D) items of surplus utility.
B) proximity of nuisances.
Undesirable or unattractive nuisances outside a property would be economic obsolescence.
