Test Exam #2 Flashcards
What rights does a buyer have after a seller has accepted their offer?
What rights does a buyer have after a seller has accepted their offer?
A seller needs to provide approval to a buyer who intends to enter a vacant house prior to the close of escrow. Until escrow closes, the property still belongs to the seller. When the buyer is given permission to enter and make repairs, it creates liability if something happens prior to the close of escrow, such as an injury on the property.
California Housing financing agency (CalHFA)
California Housing financing agency (CalHFA)
The California Housing financing agency program offers first time home buyers special consideration. CalVET is not a mortgage program, and US Department of Veterans Affairs and federal housing Administration are insured and guaranteed loans arranged through mortgage brokers and Banks.
Executrix
A husband nominates his wife to manage his will. Thus, she will function as an executrix. the term for manager of a will is Executor. As the wife is managing the will, the correct answer is the feminine form of this word: executrix.
Exceptions in a grant deed
An exception in a grant deed, excludes part of the property from the grant.
Grant Deeds transfer title to property. When an exception is stated, a portion of the property is not transferred with the grant deed. For example, consider an easement being retained by the owner, or a specific space such as Highway Frontage or Beach Frontage to be held for other purposes.
Restrictions in a grant deed
To be valid, restrictions in a grant deed need to be contained in a deed or written agreement. Restrictions, such as conditions covenants and restrictions for a subdivision need to be recorded as a statement on the deed or as a reference to another recorded document such as the subdivision restrictions.
Hard Money Loans
First Trust deeds
Junior Trust Deeds
The maximum commission a loan broker May charge to negotiate and $8,000 hard money First Trust deed that is due in two years is $400.
The commission for hard money lenders is set by law within the business and professions code. The size of the loan, the length of the loan term and whether it is a First Trust deed or a junior mortgage affect the commission that may be charged.
On First Trust Deeds - A commission with a term of less than three years is limited to 5%.
For junior trust Deeds, the commission limits are 5% for a term of less than 2 years, 10% for a term of less than three years, and 15% for 3 years are longer.
Real estate brokers are required to have written employment contracts
Real estate brokers are required to have written employment contracts with the salesperson’s they employ. Written contracts are required to properly document a broker’s employment of a salesperson. The contract will state the duties of the broker and agent and who is responsible for a variety of issues such as risk management maintenance, insurance requirements and the split of commissions.
Broker performing escrow activities
Without being a licensed as an escrow officer, a broker may not handle escrow activities when they are not otherwise involved in a transaction. The broker needs to be involved in the transaction representing one of the principles or themselves in order to act as the escrow officer.
real estate commissioner
The real estate commissioner oversees and administers real estate law, the subdivided lands law, and the regulations of the Real Estate Commission. Note these elements are categorized as laws and regulations, not rules, which carry less effect then either regulations or law.
direct building costs
Lumber is an example of a direct building cost. Direct building costs are the construction costs incurred for labor and materials. All other expenses are indirect.
gore
A gore is a triangular piece of land. This is a question that requires the memorization of an unusual term to earn the point.
ostensible agency
When a broker does not disclose their dual agency status, it creates an ostensible agency. Without disclosure of the Dual agency, the actions of the agent will create an ostensible agency relationship due to the appearance of acting as an agent.
Estate administration - administrating an estate
When the administrator of an estate sells a parcel, Court approval is required. A sale from an estate involves a court and will therefore require Court approval.
Appraiser Licensing - California Bureau of real estate appraisers (Cal Brea)
Appraiser Licensing in California is controlled by the California Bureau of real estate appraisers (Cal Brea) . the California Bureau of real estate appraisers is the entity that controls appraiser Licensing in California. The name should make this an easy point.
costs per square foot
When comparing a small house with a large house of similar quality, The small house will cost more per square foot. the overall value of the property includes the land it is situated on. Thus when the house is smaller, the price per square foot will be higher since the cost of the underlined land is divided into fewer square feet.
appraisal
When appraising a single family residence, and appraiser observes cracks in the walls and floor. In response the appraiser best recommends a soil engineer’s report. The cracks in walls or floors are more likely to be a soil stability concern rather than a pest issue, and thus are best addressed with a soil Engineers report. The environmental impact report will have no value nor will the home warranty insurance.
holder in due course
the maker of a negotiable instrument is able to defend against a holder in due course in the event of both forgery and incapacity. Both forgery and incapacity are a suitable defense against a holder in due course. A holder in due course is one who has taken a note, check or Bill of Exchange in due course: one before it was overdue, 2 in good faith for value, and three without knowledge that it has been previously Dishonored and without notice of any defects at the time it was negotiated.
discrimination
the Department of Housing and Urban Development advertising guidelines are violated when someone advertises retirees Dream Home. the suggestion that a property is more suitable to one group of people retirees is viewed as discrimination. Alternatively, it is acceptable to have a requirement for a roommate and state an opinion such as a good neighborhood.
buyer/seller consent
A seller’s broker receives and presents a purchase offer that is accepted by the seller. The seller then request the broker to give them the buyer’s deposit check. The broker needs to obtain the written consent of the buyer before releasing the check to the seller. The broker must seek written consent from the buyer before releasing the deposit check to the seller. As the offer has already been accepted, a counter-offer is not possible.
Before closing, a buyer ask their broker for permission to enter the vacant house they will be purchasing in order to paint the kitchen. The broker is to seek approval from the seller. a seller, being the legal owner of the property, needs to decide whether to allow the buyer to make repairs to the property prior to the close of escrow. Allowed in the buyer to enter the property prior to the close of escrow presents to primary concerns liability for something that goes wrong when the buyer is on the property, such as personal injury or damage to the property, and the possibility that escrow may fail to close after the buyer has altered the property.
buyer’s listing
For a buyer’s broker to have the ability to negotiate their fee, the buyer’s broker needs to enter into an employment agreement with their buyer called a buyer’s listing. A buyer’s listing is the appropriate contract for the purpose of negotiating fees as the buyer’s broker.
copy of the written lease to the tenant Within 15 calendar days
A landlord is required to provide a copy of the written lease to the tenant Within 15 calendar days. A landlord is required to provide a signed copy of the lease to the tenant within 15 calendar days of its execution by the tenant.
one board foot
A one board foot is the volume of a piece of lumber that measures 12in by 12in by 1in. Only one answer from the choices has the same amount of volume, 6in by 2in by 12in.
Constructive notice and bona fide buyer
Blake sold his home to Frank but remained in possession and negotiated a two-year lease back. Frank did not record the deed. During this two-year period, Blake sold the home to Sam who then recorded the deed. Who owns the home? Sam does, because he recorded his deed. Sam is the owner since he recorded the deed. Constructive notice can be either the recorded deed or possession. Since Blake retained possession, Sam had no way of knowing that Frank previously purchased the house. This makes Sam a bona fide buyer.
condition precedent
condition subsequent
Conrad wills the Family Estate to his first son Michael with the provision that if Michael were to divorce in the future, title will pass to Conrad Second Son, Brett. This is an example of condition subsequent. a future divorce is a condition subsequent. The two conditions precedent and subsequent, refer to actions that alienate title, transfer title. A condition precedent is how one gains title, unless and until completion of a specified act or event, – a condition subsequent is how one loses title, the failure or non-performance of a condition.
