Unit Reviews Flashcards
1
Q
List two ways the government can acquire privately held land:
_________________
_________________
A
escheat
eminent domain
2
Q
Public control of land use by the government is known as ______ power.
A
police power
3
Q
A right of use or enjoyment that one person has in the lands of another for a specific purpose is an ________.
A
easement
4
Q
A tenant’s right to possess real estate for the term of a lease is a _________ estate.
A
leasehold estate
5
Q
A tree limb that overhangs into a neighbor’s yard is an example of an ____________.
A
encroachment
6
Q
An easement is not _________ , but a license is.
A
revocable
7
Q
A claim that one person has against the land of another to secure payment of a debt is a ____.
A
lien
8
Q
A person who has not been paid for work performed on real property may record a ______________.
A
mechanic’s lien
9
Q
A party wall or a shared driveway is an example of an easement ___________.
A
appurtenant
10
Q
The right of an owner to occupy a parcel of real estate forever is a ___________________.
A
fee simple absolute
11
Q
The type of lien that takes priority over all others is the _______________ for property taxes.
A
government lien
12
Q
As part of their right to govern land use, local municipalities enact and enforce ______ ordinaces.
A
zoning ordinances
13
Q
A freehold estate is an estate of ownership with an __________ duration.
A
indefinite duration
14
Q
Leasehold estates are estates of possession with a(n) _________ duration.
A
definite duration
15
Q
Zoning laws are set at a _____ level.
A
local level
16
Q
A written legal document by which ownership of real property is transferred from one party to another is a ____.
A
deed
17
Q
In order to convey title, a deed must be signed by the _______. 
A
grantor
18
Q
Title does not pass to the grantee until the deed is _________ and ________.
A
delivered and accepted
19
Q
A deed that conveys whatever interest in the property the grantor holds at the time of conveyance and contains no covenants or warranties is a ______________.
A
quitclaim deed
20
Q
Property owned by one person is said to be owned in _________.
A
severalty
21
Q
A form of concurrent ownership in which each tenant owns an undivided ownership share in the entire
property and has no right of survivorship is _________________.
A
tenants in common
22
Q
A form of concurrent ownership in which all owners have equal shares in the property and the right of survivorship is  _____________.
A
joint tenancy
23
Q
A person who holds stock in a building owned by a corporation owns the rights to a ___________.
A
cooperative
24
Q
All the documents that comprise the history of the title are the ______________.
A
chain of title
25
Protection against incomplete or defective records of the title to land can best be obtained by securing ________________.
title insurance
26
A problem that is not covered by standard or extended title insurance is an _________.
exception
27
Most instruments to be recorded must first be ___________.
notarized
28
The legal process of handling a person’s business affairs after death is called _________.
probate
29
The allowance period for depreciation on residential rental property is ___________.
27.5 years
30
California property taxes are limited by ______________.
Proposition 13
31
A contract whose terms have been explicitly declared either verbally or in writing is an _______ contract.
express
32
When only one party to the agreement makes a promise, the result is a _________ agreement.
unilateral
33
A contract in which one party has the right to void the contract is a ________ contract.
voidable
34
A contract created by the actions of the parties is a _______ contract.
implied
35
A lease agreement in which the tenant pays rent only is a _____ lease.
gross lease
36
A lease agreement in which the tenant pays rent plus operating expenses is a ___ lease.
net lease
37
A unilateral contract in which the buyer has the right to purchase a property from the seller if the buyer
chooses to do so is an ______.
option
38
A party attempting to enforce an oral executory contract for the purchase of real estate would be stopped by the _________________.
statute of frauds
39
________________ means that there was an offer and acceptance; there was no fraud, misrepresentation, or mistake; and the consent was genuinely and freely given.
mutual agreement
40
The party who makes an offer to another is known as the _______.
offeror
41
An accepted offer becomes binding on the offeror upon ___________________________.
communication of acceptance
42
Entering into a contract by intentionally deceiving a party is _____.
fraud
43
Something of value given in exchange for something else of value is _____________.
consideration
44
_____________ is not consideration but may be required as part of liquidated damages in a purchase contract.
earnest money
45
Additional material attached to and made part of an offer is an ________.
addendum
46
The process of converting a future income stream into an expression of present value is ______________.
capitalization
47
The cost of replacing an improvement with another of similar quality but not an exact replica is ________________.
replacement cost
48
Loss in value due to causes external to the property is _____________________.
economic obsolescence
49
A method of valuing a property by comparing the subject property to similar properties that have recently
sold is the ____________________.
market data approach
50
Demand, utility, scarcity, and transferability are essential elements of _____.
value
51
An appraisal is an ________  of value
estimate
52
To obtain the value using the capitalization approach, an appraiser would divide the ___________________
by the capitalization rate.
net operating income
53
The market data approach is based on the principle of ____________.
substitution
54
An appraiser calculates accrued depreciation using the _____________.
cost approach
55
When an appraiser determines the accrued depreciation, outdated plumbing fixtures would be considered _______________________.
functional obsolescence
56
The market data approach is also known as ________________.
sales comparison
57
The step in which the appraiser weighs all approaches to determine a final value is ______________ , which is also called correlation.
reconciliation
58
An appraiser determining the value of a shopping center would use the _______________.
income approach
59
An example of physical deterioration (also called physical obsolescence) is _____________.
wear and tear
60
For appraisal purposes, land does not __________ in value
depreciate
61
The borrower’s right to cure the default and stop the foreclosure sale is ____________________.
equitable redemption
62
A mortgage pledging personal property as well as real property as security for a debt is a _________________.
package mortgage
63
The clause that appears in both the note and the mortgage that allows the lender to demand immediate payment of the entire debt if the borrower defaults is an ___________________.
acceleration clause
64
A loan that is repaid in one single lump sum at the end of its life is called a straight loan or _________.
term loan
65
A loan in which payments are scheduled so the entire principal balance is repaid by the maturity date is a ____________________.
fully amortized loan
66
A final payment that is larger than preceding payments is a ________ payment.
balloon
67
A ________________ is used when more than one property is pledged as security for a single loan.
blanket mortgage
68
A mortgage given by the purchaser to the seller in partial payment for the property is a ______________ mortgage.
purchase money mortgage
69
The difference between a property’s market value and the debts against it is ______.
equity
70
The document that shows a veteran has the right to purchase a home using a VA loan is a ________________________.
certificate of eligibility
71
A government-sponsored secondary mortgage market organization that buys both conventional and gov- ernment loans from primary lenders is  __________.
Fannie Mae
72
An agency of the federal government that guarantees loans made to veterans is the __.
VA
73
A government agency that insures (but does not make) mortgage loans is the ___
FHA
74
A promissory note is ________ of the debt
evidence of the debt
75
In a trust deed loan, a borrower is referred to as a _______.
trustor
76
One who employs an agent to act on his/her behalf in a real estate transaction is known as a _________.
principal
77
The person employed by a principal to act on the principals behalf is an _____.
agent
78
Commissions charged by brokerage firms for their services are set by ___________.
negotiation
79
A listing agreement in which the owner agrees to pay the agent a commission regardless of who sells the
property during the listing period is known as an ______________________ listing.

exclusive right-to-sell
80
A listing that appoints a broker as the sole agent to find a property for the buyers, but allows the buyers to find their own property without paying a commission, is an ________________.

exclusive agency
81
A listing that allows an owner to list concurrently with more than one broker is known as an ____ listing.
open
82
The relationship of brokers to their principals is known as a _________.
fiduciary
83
When a broker serves as the agent for both the buyer and the seller, it is a ___________.
dual agency
84
Unless otherwise provided for, earnest money must be deposited in the broker’s _____________.
trust account
85
Depositing a client’s money in the same account with the broker’s money (which is illegal) is ___________.

commingling
86
Using trust funds for personal reasons is __________.
conversion
87
The first responsibility of a property manager is to ______________.
maintain value
88
A property manager should seek _______________ tenants.
well-qualified tenants
89
The buyer’s broker should ___________ deliver the earnest money to the listing broker after acceptance of the offer.
immediately
90
Real estate commissions charged by a firm are determined by the ____________.
brokerage firm
91
California law requires brokers to____inspect property.
visually
92
The ____ expresses the relationship of the total finance charge to the amount financed.
APR
93
The NAR Code of Ethics is based on the ___________.
golden rule
94
Brokers and salespersons must check the National Do Not Call Registry before ____________.
cold calling
95
An exception to the real estate licensing law is an ________ who is performing duties as such.
attorney
96
The ________________ has a duty to review all documents from the parties to a transaction.
broker of record
97
PRLS agents operate under a ___ -year license term.
two
98
A real estate salesperson can never work _____________.
independently
99
The Real Estate Commissioner requires salespersons to have a ___________________________.
written employment contract
100
To obtain a salesperson’s license, an applicant must complete___college-level courses.
three
101
Most environmental issues fall under the jurisdiction of the ____.
EPA
102
Radon is a naturally occurring ____.
gas
103
The Truth in Lending Act, which requires disclosure of the true cost of borrowing for consumer credit
transactions, is implemented by ____________ .
Regulation Z
104
The law that is intended to make consumer credit available with fairness and impartiality is the _______________________________.
Equal Credit Opportunity Act (ECOA)
105
The document that describes the potential impact of a proposed project on the environment is an ______________________________.
environmental impact report (EIR)
106
All property other than real estate is known as _________________.
personal property
107
Real estate consists of three things: land, improvements, and ______.
rights
108
If a seller is taking a fixture, it must have been ________ from the purchase agreement.
excluded
109
Land is not considered a ____________ because it cannot be sold quickly.
liquid asset
110
When articles of personal property are permanently attached to the improvements, they become ________.
fixtures
111
Before a new building can be inhabited, ________________________ a is required.
certificate of occupancy
112
Permission to vary from strict compliance with zoning requirements may be obtained in the form of a _________.
variance
113
When a previously established use does not comply with the requirements of a new zoning ordinance, it
may be allowed to continue as a __________________.
nonconforming use
114
Townships, sections, and meridians are used in the __________________ form of legal description.
rectangular (government) survey
115
A legal description that uses compass degrees is ________________.
metes and bounds
116
The type of legal description used in most urban areas is _________________________.
lot, block, and subdivision
117
A ___________ may be used to separate two incompatible zoning uses.
buffer zone
118
Real estate and fixtures are transferred with a ____.
deed
119
Personal property is transferred with a ____________.
bill of sale
120
If the buyer is keeping the seller’s personal property, it must be _________ in the purchase agreement.
included
