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CA REAL ESTATE > TEST PREP > Flashcards

TEST PREP Flashcards

1
Q

If closing is in the middle of the month, mortgage interest thru the end must be paid up until the end by the ______ ?

A

BUYER

Debit to Buyer

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2
Q

How would a buyer’s new loan be recorded on the closing (settlement) statement?

A

Credit to BUYER

Someone else brings money to closing

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3
Q

Never include _____ in a legal description of a property

A

Street address

Use Lot & Block only

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4
Q

When you divide the PART by the WHOLE, remember to move decimal ______?

A

2 to the right

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5
Q

When calculating pre-payment penalty, you multiple the % x _______?

A

Outstanding Principal only (don’t include interest)

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6
Q

When calculating the SELLERS NET, remember to ______ from the list of answer options

A

Work backwards

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7
Q

When calculating a partial month of interest, remember to ____?

A

Count the number of days on your hand

Ex: June 15 closing thru June 30 is actually 16 days!

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8
Q

When calculating a loan amount, do not deduct _____?

A

Ernest Money Deposit (Use the full sale price)

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9
Q

For a rental property that is sold and closes mid-month, the ______ gets the prorated rent money on the day of closing?

A

Seller

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10
Q

Water is usually prepaid by the ____?

A

Seller

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11
Q

1 square mile = ______ acres

A

640

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12
Q

What is NAKED TITLE?

A

What the Trustee in a Trust Deed holds until the home is paid off

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13
Q

A SECTION is ___?

A

1 Square Mile of a Township

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14
Q

A tax rate of “35 Mills” is ______ for every $1000?

A

$35

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15
Q

Who is a VENDOR in a Land Sales Contract? Who is a VENDEE?

A

VENDOR: Seller
VENDEE: BUYER

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16
Q

Who is the OFFEROR, and who is the OFFEREE?

A

OFFEROR: Gives the offer
OFFEREE: Receives the offer

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17
Q

An OFFEREE has the right to ___ ?

A

Reject an offer

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18
Q

A Mechanic’s lien can only be placed on ____ ?

A

The property where the work was done

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19
Q

What are EQUALIZATION FACTORS?

A

A way for jurisdiction’s to “level out” uneven tax appraisals

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20
Q

What is a LEASED FEE INTEREST?

A

The Lessor’s (owner’s) interest in a lease

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21
Q

What is a SPOT SURVEY?

A

Best way to ensure that there are no encroachments, and verify the boundaries of a parcel of land

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22
Q

What is the cubic footage of a driveway that measures 60 feet long, 8 feet wide, and is 3 inches deep?

A

120 cubic feet

60 x 8 x .25

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23
Q

What is ABSTRACT OF TITLE?

A

The entire recorded history of a property’s title (encroachments, liens etc…) - more extensive than just the Chain of Title that passed from one owner to the next.

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24
Q

Commercial Zoning regulates ____ ?

A

Intensity of Usage

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25
Q

A Broker deserves a commission if ______ ?

A

They produce a buyer who meets the sellers terms and conditions

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26
Q

Permission granted to hunt on another’s land is an example of

A

A Liscense

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27
Q

What is a Quit Claim Deed?

A

All of the seller’s interests in the property belong to the buyer

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28
Q

Is the price of rental units important to the property management agreement?

A

No.

The agreement is about the managers role and responsibilities.

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29
Q

An ESTATE AT WILL is?

A

Indefinite and can be terminated by either party at any time

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30
Q

A lot measuring 120’ x 200’ is selling for $300 a front foot. What is its price?

A

120’ x $300 = $36,000

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31
Q

In order for multiple people to create “sole ownership” of a single property in severalty, they must be….?

A

A Corporation

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32
Q

What is not part of closing costs on the settlement doc?

A

Broker’s Commisions

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33
Q

A PROMISSORY NOTE is ____ ?

A

The Lender’s evidence of a debt

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34
Q

How many square feet are in an ACRE?

How many acres are in a section?

A

43,560 square feet

640

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35
Q

The environmental hazard found mostly in electrical equipment is known as?

A

PCB’s

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36
Q

Commercial emails are regulated by the ____?

A

CAN-SPAM Act

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37
Q

In property management, risk management refers to?

A

Reducing the risk to a level at which it can be managed or tolerated.

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38
Q

Title to real property is conveyed by deed when the deed is?

A

Delivered to and accepted by the grantee.

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39
Q

Can married couples who jointly own property file a partician suit against the other?

A

No. They are one unit.

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40
Q

Most homeowners insurance policies contain which clause?

A

Co-insurance Clause

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41
Q

Can married couples own property in severalty (sole ownership)

A

No. Only jointly.

42
Q

When can the Seller collect Ernest Money Deposits?

A

At the time of Settlement

43
Q

What has no bearing on real estate supply?

A

Population

44
Q

The instrument that pledges real property as security is?

A

A mortgage or deed of trust

45
Q

An apartment building has a value of $800,000 when capitalized at 6%. What would be the value if the building were capitalized at 8%?

A

$600,000

$800,000 x 6%, then divided by 8%

46
Q

Differentiate between these COVENANTS:

  • SEISIN
  • FURTHER ASSURANCE
  • QUIET ENJOYMENT
  • AGAINST ENCUMBRANCES
A
  • SEISIN: Grantor owns the property and has right to sell
  • FURTHER ASSURANCE: Grantor ensures that the title is good
  • QUIET ENJOYMENT: Grantee has right to enjoy property without challenges
  • AGAINST ENCUMBRANCES: protection against encumbrances
47
Q

What is PROCURING CAUSE?

A

The effort that brings about a ready, willing and able buyer resulting in a sale

48
Q

In a repayment of a mortgage loan, which type of interest is used?

A

Simple Interest

49
Q

The earth’s surface extending downward to the center of the earth and upward into space, including all things permanently attached, is known as:

A

Real Estate

50
Q

Who is responsible for filling out the PROPERTY DISCLOSURE FORM?

A

Seller

51
Q

How many square feet are in a square yard?

How many cubic feet are in a cubic yard?

A

9

27

52
Q

Does a listing expire if the selling Broker dies?

A

No, it remains with the Broker’s firm

53
Q

Does a listing expire if the Seller is declared legally insane?

A

YES

54
Q

What is an EASEMENT IN GROSS?

A

Limited rights to access another’s property for a specific purpose (ex. Telephone Company for their line maitenence)

Not created for the benefit of the land, but attaches personally to the easement owner

55
Q

Is a business sign installed by a Lessor the Leasee’s property at the end of the lease?

A

No. It is the owner’s real property

56
Q

What is an APPURTENANT EASEMENT?

A

For adjacent properties or neighbors, which run with the land.

57
Q

When a tenant sublets all or any part of the premises rented under a written lease?

A

The original lease is unaffected unless it contains a provision that prohibits such subletting.

58
Q

A grantee taking title to a property “subject to” an existing mortgage is….?

A

Not personally liable for payment but could lose the property (and equity) in a foreclosure.

59
Q

What is the most important document at closing?

A

Deed

60
Q

What is a Real Estate Asset Manager?

A

The property owners’ agent and adviser for the property for long term strategic planning.

61
Q

What is TENANCY BY THE ENTIRETY?

A

Ownership by husband and wife. When one dies, the other inherits it.

Created by express intent, not law

62
Q

Can a lease agreement be signed by a 17-year old?

A

Yes, but it is not enforceable, so it is VOIDABLE

63
Q

A broker who changes his/her main office address must forward a written notice to the DRE in Sacramento….?

A

The next business day

64
Q

Brokers who use a fictitious name for the Brokerage also need to do what?

A

Re-register the name separately every 4 years when getting a license renewal

65
Q

CA law also allows real estate licensees to do what?

A

Act as Mortgage Loan Brokers

66
Q

How should an Agent handle the trust account portion of her record-keeping?

A

In columnar form, with separate records for each beneficiary in each transaction

67
Q

For homestead to be effective, when must a homeowner assert those rights?

A

Right up to the last minute even after bankruptcy is “rendered” but BEFORE a judgement is recorded

68
Q

If a Seller agrees to pay for an ad and gives their listing Agent money to pay it….?

A

Deposit it in Trust Account and draw against it only to pay actual advertising expenses

69
Q

On May 7, 2010 Senate Bill 183 was signed into law requiring…?

A

Carbon Monoxide Detectors

70
Q

Penalties for violating the Unruh Act may be….?

A

Up to three times the amount of actual damages or $4,000, whichever is more - to the injured party.

71
Q

How much notice must be given when evicting someone with ESTATE AT WILL?

A

30 Days

72
Q

Inventory in a sale of a business is ….?

A

Personal Property sold by a Bill of Sale

73
Q

What is a duty of licensees set forth by both the DRE and the rules of fiduciary responsibility?

A

To disclose MATERIAL INFORMATION that might affect the price and/or sale of the property

74
Q

What is the difference between a “Desist and Refrain order” and a “Restraining Order” in real estate?

A

DESIST & REFRAIN: Issued by DRE Commissioner if they suspect fraudulent activity

RESTRAINING ORDER: From a Court

75
Q

How does a Net Listing Agreement work?

A

The broker must notify the seller of the amount of the commission the broker is earning before the seller agrees to sign the purchase contract with the buyer.

76
Q

Who administers license law in CA?

A

The DRE Commisioner

77
Q

Who sits on the Real Estate Advisory Board?

A

A mix of 6 Brokers, and 4 members of the public

78
Q

What is the main duty of the County Tax Assessor?

A

To determine the amount of tax to be paid by each property owner

Not to collect the money

79
Q

Which act allows the California Department of Fair Employment and Housing to take action against public or private housing entities that discriminate?

A

The Rumford Act

80
Q

Does CA collect Inheritance Taxes?

A

No

81
Q

What is EQUITABLE TITLE?

A

The buyer has obtained the right to acquire ownership of a property currently owned and occupied by another.

This is before Closing.

82
Q

In an INSTALLMENT LAND CONTRACT, what type of title did the seller retain?

A

Legal

This passes to Buyer once debt is paid

83
Q

What are the 2 main purposes of RESPA?

A

Inform Buyer of Settlement fees

Prevent kickbacks

84
Q

USURY means?

A

An Illegal interest rate above the norm

i.e. loan sharking

85
Q

Impounds mostly benefits ____?

A

The Lender (makes sure taxes and insurance are paid)

86
Q

A salesperson is involved in a transaction where an individual wishes a six-month lease with an option to buy. What is true about this situation?

A

A salesperson could use two standard forms, fill in the blanks and request that his or her broker review the forms before signing.

87
Q

A competent and disinterested person who is authorized by another person to act in his or her place and sign a contract of sale is called?

A

An Attorney in Fact

88
Q

JOINT TENANCY is ______?

A

IDENTICAL (think about your ankles, knees)

89
Q

What provides a buyer with the best assurance of clear, marketable title?

A

Title Insurance

90
Q

What is WAREHOUSING?

A

A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors

91
Q

Are “For Sale By Owner” sales subject to restrictions like Truth in Lending, Regulation Z?

A

No, they can advertise things like the down payment

92
Q

Does the source of additional income like Alimony, Child Support, Freelance need to be disclosed when applying for a loan?

A

Only if counting on it to make payments

93
Q

What phrase automatically triggers Truth in Lending regulations?

A

“No down payment required”

94
Q

What is the relationship between Brokers representing different sides of the deal?

A

None - they have individual relationships with their clients but not each other

95
Q

A Mechanic’s lien is what type o lien?

A

Statutory (based on a law)

96
Q

A square is 1/8 of a mile by 1/8 of a mile. How many acres is this?

A

10

Multiply 1/8 X 1/8 = 1/64 divided into 640 acres = 10 acres

97
Q

The primary purpose of a deed is to ____?

A

Transfer Ownership

98
Q

A Special Warranty Deed covers ______ ?

A

A limited time period

99
Q

The list of previous owners from whom the present real estate owner derives his or her title is known as the?

A

Chain of Title

100
Q

In valuing a single family residence by the sales comparison approach, an appraiser would make additions and subtractions to which property?

A

The Comparable, not the subject

101
Q

Why are people cautioned against owning the most expensive home in the neighborhood?

A

Because of regression, meaning that the lower priced homes (and commercial buildings) have a much greater downward pull on the value of higher end properties than the other way around

CA REAL ESTATE (4 decks)

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