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
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
3
Q
Never include _____ in a legal description of a property
A
Street address
Use Lot & Block only
4
Q
When you divide the PART by the WHOLE, remember to move decimal ______?
A
2 to the right
5
Q
When calculating pre-payment penalty, you multiple the % x _______?
A
Outstanding Principal only (don’t include interest)
6
Q
When calculating the SELLERS NET, remember to ______ from the list of answer options
A
Work backwards
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!
8
Q
When calculating a loan amount, do not deduct _____?
A
Ernest Money Deposit (Use the full sale price)
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
10
Q
Water is usually prepaid by the ____?
A
Seller
11
Q
1 square mile = ______ acres
A
640
12
Q
What is NAKED TITLE?
A
What the Trustee in a Trust Deed holds until the home is paid off
13
Q
A SECTION is ___?
A
1 Square Mile of a Township
14
Q
A tax rate of “35 Mills” is ______ for every $1000?
A
$35
15
Q
Who is a VENDOR in a Land Sales Contract? Who is a VENDEE?
A
VENDOR: Seller
VENDEE: BUYER
16
Q
Who is the OFFEROR, and who is the OFFEREE?
A
OFFEROR: Gives the offer
OFFEREE: Receives the offer
17
Q
An OFFEREE has the right to ___ ?
A
Reject an offer
18
Q
A Mechanic’s lien can only be placed on ____ ?
A
The property where the work was done
19
Q
What are EQUALIZATION FACTORS?
A
A way for jurisdiction’s to “level out” uneven tax appraisals
20
Q
What is a LEASED FEE INTEREST?
A
The Lessor’s (owner’s) interest in a lease
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
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
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.
24
Q
Commercial Zoning regulates ____ ?
A
Intensity of Usage
25
A Broker deserves a commission if ______ ?
They produce a buyer who meets the sellers terms and conditions
26
Permission granted to hunt on another's land is an example of
A Liscense
27
What is a Quit Claim Deed?
All of the seller's interests in the property belong to the buyer
28
Is the price of rental units important to the property management agreement?
No.
The agreement is about the managers role and responsibilities.
29
An ESTATE AT WILL is?
Indefinite and can be terminated by either party at any time
30
A lot measuring 120' x 200' is selling for $300 a front foot. What is its price?
120' x $300 = $36,000
31
In order for multiple people to create "sole ownership" of a single property in severalty, they must be....?
A Corporation
32
What is not part of closing costs on the settlement doc?
Broker's Commisions
33
A PROMISSORY NOTE is ____ ?
The Lender's evidence of a debt
34
How many square feet are in an ACRE?
How many acres are in a section?
43,560 square feet
640
35
The environmental hazard found mostly in electrical equipment is known as?
PCB's
36
Commercial emails are regulated by the ____?
CAN-SPAM Act
37
In property management, risk management refers to?
Reducing the risk to a level at which it can be managed or tolerated.
38
Title to real property is conveyed by deed when the deed is?
Delivered to and accepted by the grantee.
39
Can married couples who jointly own property file a partician suit against the other?
No. They are one unit.
40
Most homeowners insurance policies contain which clause?
Co-insurance Clause
41
Can married couples own property in severalty (sole ownership)
No. Only jointly.
42
When can the Seller collect Ernest Money Deposits?
At the time of Settlement
43
What has no bearing on real estate supply?
Population
44
The instrument that pledges real property as security is?
A mortgage or deed of trust
45
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%?
$600,000
$800,000 x 6%, then divided by 8%
46
Differentiate between these COVENANTS:
- SEISIN
- FURTHER ASSURANCE
- QUIET ENJOYMENT
- AGAINST ENCUMBRANCES
- 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
What is PROCURING CAUSE?
The effort that brings about a ready, willing and able buyer resulting in a sale
48
In a repayment of a mortgage loan, which type of interest is used?
Simple Interest
49
The earth's surface extending downward to the center of the earth and upward into space, including all things permanently attached, is known as:
Real Estate
50
Who is responsible for filling out the PROPERTY DISCLOSURE FORM?
Seller
51
How many square feet are in a square yard?
How many cubic feet are in a cubic yard?
9
27
52
Does a listing expire if the selling Broker dies?
No, it remains with the Broker's firm
53
Does a listing expire if the Seller is declared legally insane?
YES
54
What is an EASEMENT IN GROSS?
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
Is a business sign installed by a Lessor the Leasee's property at the end of the lease?
No. It is the owner's real property
56
What is an APPURTENANT EASEMENT?
For adjacent properties or neighbors, which run with the land.
57
When a tenant sublets all or any part of the premises rented under a written lease?
The original lease is unaffected unless it contains a provision that prohibits such subletting.
58
A grantee taking title to a property "subject to" an existing mortgage is....?
Not personally liable for payment but could lose the property (and equity) in a foreclosure.
59
What is the most important document at closing?
Deed
60
What is a Real Estate Asset Manager?
The property owners' agent and adviser for the property for long term strategic planning.
61
What is TENANCY BY THE ENTIRETY?
Ownership by husband and wife. When one dies, the other inherits it.
Created by express intent, not law
62
Can a lease agreement be signed by a 17-year old?
Yes, but it is not enforceable, so it is VOIDABLE
63
A broker who changes his/her main office address must forward a written notice to the DRE in Sacramento....?
The next business day
64
Brokers who use a fictitious name for the Brokerage also need to do what?
Re-register the name separately every 4 years when getting a license renewal
65
CA law also allows real estate licensees to do what?
Act as Mortgage Loan Brokers
66
How should an Agent handle the trust account portion of her record-keeping?
In columnar form, with separate records for each beneficiary in each transaction
67
For homestead to be effective, when must a homeowner assert those rights?
Right up to the last minute even after bankruptcy is "rendered" but BEFORE a judgement is recorded
68
If a Seller agrees to pay for an ad and gives their listing Agent money to pay it....?
Deposit it in Trust Account and draw against it only to pay actual advertising expenses
69
On May 7, 2010 Senate Bill 183 was signed into law requiring...?
Carbon Monoxide Detectors
70
Penalties for violating the Unruh Act may be....?
Up to three times the amount of actual damages or $4,000, whichever is more - to the injured party.
71
How much notice must be given when evicting someone with ESTATE AT WILL?
30 Days
72
Inventory in a sale of a business is ....?
Personal Property sold by a Bill of Sale
73
What is a duty of licensees set forth by both the DRE and the rules of fiduciary responsibility?
To disclose MATERIAL INFORMATION that might affect the price and/or sale of the property
74
What is the difference between a "Desist and Refrain order" and a "Restraining Order" in real estate?
DESIST & REFRAIN: Issued by DRE Commissioner if they suspect fraudulent activity
RESTRAINING ORDER: From a Court
75
How does a Net Listing Agreement work?
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
Who administers license law in CA?
The DRE Commisioner
77
Who sits on the Real Estate Advisory Board?
A mix of 6 Brokers, and 4 members of the public
78
What is the main duty of the County Tax Assessor?
To determine the amount of tax to be paid by each property owner
Not to collect the money
79
Which act allows the California Department of Fair Employment and Housing to take action against public or private housing entities that discriminate?
The Rumford Act
80
Does CA collect Inheritance Taxes?
No
81
What is EQUITABLE TITLE?
The buyer has obtained the right to acquire ownership of a property currently owned and occupied by another.
This is before Closing.
82
In an INSTALLMENT LAND CONTRACT, what type of title did the seller retain?
Legal
This passes to Buyer once debt is paid
83
What are the 2 main purposes of RESPA?
Inform Buyer of Settlement fees
Prevent kickbacks
84
USURY means?
An Illegal interest rate above the norm
i.e. loan sharking
85
Impounds mostly benefits ____?
The Lender (makes sure taxes and insurance are paid)
86
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 salesperson could use two standard forms, fill in the blanks and request that his or her broker review the forms before signing.
87
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?
An Attorney in Fact
88
JOINT TENANCY is ______?
IDENTICAL (think about your ankles, knees)
89
What provides a buyer with the best assurance of clear, marketable title?
Title Insurance
90
What is WAREHOUSING?
A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors
91
Are "For Sale By Owner" sales subject to restrictions like Truth in Lending, Regulation Z?
No, they can advertise things like the down payment
92
Does the source of additional income like Alimony, Child Support, Freelance need to be disclosed when applying for a loan?
Only if counting on it to make payments
93
What phrase automatically triggers Truth in Lending regulations?
"No down payment required"
94
What is the relationship between Brokers representing different sides of the deal?
None - they have individual relationships with their clients but not each other
95
A Mechanic's lien is what type o lien?
Statutory (based on a law)
96
A square is 1/8 of a mile by 1/8 of a mile. How many acres is this?
10
Multiply 1/8 X 1/8 = 1/64 divided into 640 acres = 10 acres
97
The primary purpose of a deed is to ____?
Transfer Ownership
98
A Special Warranty Deed covers ______ ?
A limited time period
99
The list of previous owners from whom the present real estate owner derives his or her title is known as the?
Chain of Title
100
In valuing a single family residence by the sales comparison approach, an appraiser would make additions and subtractions to which property?
The Comparable, not the subject
101
Why are people cautioned against owning the most expensive home in the neighborhood?
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
