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Real Estate Principals > Unit Reviews > Flashcards

Unit Reviews Flashcards

1
Q

List two ways the government can acquire privately held land:
_________________
_________________

A

escheat

eminent domain

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2
Q

Public control of land use by the government is known as ______ power.

A

police power

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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

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4
Q

A tenant’s right to possess real estate for the term of a lease is a _________ estate.

A

leasehold estate

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5
Q

A tree limb that overhangs into a neighbor’s yard is an example of an ____________.

A

encroachment

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6
Q

An easement is not _________ , but a license is.

A

revocable

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7
Q

A claim that one person has against the land of another to secure payment of a debt is a ____.

A

lien

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8
Q

A person who has not been paid for work performed on real property may record a ______________.

A

mechanic’s lien

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9
Q

A party wall or a shared driveway is an example of an easement ___________.

A

appurtenant

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10
Q

The right of an owner to occupy a parcel of real estate forever is a ___________________.

A

fee simple absolute

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11
Q

The type of lien that takes priority over all others is the _______________ for property taxes.

A

government lien

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12
Q

As part of their right to govern land use, local municipalities enact and enforce ______ ordinaces.

A

zoning ordinances

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13
Q

A freehold estate is an estate of ownership with an __________ duration.

A

indefinite duration

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14
Q

Leasehold estates are estates of possession with a(n) _________ duration.

A

definite duration

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15
Q

Zoning laws are set at a _____ level.

A

local level

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16
Q

A written legal document by which ownership of real property is transferred from one party to another is a ____.

A

deed

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17
Q

In order to convey title, a deed must be signed by the _______. 

A

grantor

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18
Q

Title does not pass to the grantee until the deed is _________ and ________.

A

delivered and accepted

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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

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20
Q

Property owned by one person is said to be owned in _________.

A

severalty

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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

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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

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23
Q

A person who holds stock in a building owned by a corporation owns the rights to a ___________.

A

cooperative

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24
Q

All the documents that comprise the history of the title are the ______________.

A

chain of title

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25
Q

Protection against incomplete or defective records of the title to land can best be obtained by securing ________________.

A

title insurance

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26
Q

A problem that is not covered by standard or extended title insurance is an _________.

A

exception

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27
Q

Most instruments to be recorded must first be ___________.

A

notarized

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28
Q

The legal process of handling a person’s business affairs after death is called _________.

A

probate

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29
Q

The allowance period for depreciation on residential rental property is ___________.

A

27.5 years

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30
Q

California property taxes are limited by ______________.

A

Proposition 13

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31
Q

A contract whose terms have been explicitly declared either verbally or in writing is an _______ contract.

A

express

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32
Q

When only one party to the agreement makes a promise, the result is a _________ agreement.

A

unilateral

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33
Q

A contract in which one party has the right to void the contract is a ________ contract.

A

voidable

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34
Q

A contract created by the actions of the parties is a _______ contract.

A

implied

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35
Q

A lease agreement in which the tenant pays rent only is a _____ lease.

A

gross lease

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36
Q

A lease agreement in which the tenant pays rent plus operating expenses is a ___ lease.

A

net lease

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37
Q

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 ______.

A

option

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38
Q

A party attempting to enforce an oral executory contract for the purchase of real estate would be stopped by the _________________.

A

statute of frauds

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39
Q

________________ means that there was an offer and acceptance; there was no fraud, misrepresentation, or mistake; and the consent was genuinely and freely given.

A

mutual agreement

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40
Q

The party who makes an offer to another is known as the _______.

A

offeror

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41
Q

An accepted offer becomes binding on the offeror upon ___________________________.

A

communication of acceptance

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42
Q

Entering into a contract by intentionally deceiving a party is _____.

A

fraud

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43
Q

Something of value given in exchange for something else of value is _____________.

A

consideration

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44
Q

_____________ is not consideration but may be required as part of liquidated damages in a purchase contract.

A

earnest money

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45
Q

Additional material attached to and made part of an offer is an ________.

A

addendum

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46
Q

The process of converting a future income stream into an expression of present value is ______________.

A

capitalization

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47
Q

The cost of replacing an improvement with another of similar quality but not an exact replica is ________________.

A

replacement cost

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48
Q

Loss in value due to causes external to the property is _____________________.

A

economic obsolescence

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49
Q

A method of valuing a property by comparing the subject property to similar properties that have recently
sold is the ____________________.

A

market data approach

50
Q

Demand, utility, scarcity, and transferability are essential elements of _____.

A

value

51
Q

An appraisal is an ________  of value

A

estimate

52
Q

To obtain the value using the capitalization approach, an appraiser would divide the ___________________
by the capitalization rate.

A

net operating income

53
Q

The market data approach is based on the principle of ____________.

A

substitution

54
Q

An appraiser calculates accrued depreciation using the _____________.

A

cost approach

55
Q

When an appraiser determines the accrued depreciation, outdated plumbing fixtures would be considered _______________________.

A

functional obsolescence

56
Q

The market data approach is also known as ________________.

A

sales comparison

57
Q

The step in which the appraiser weighs all approaches to determine a final value is ______________ , which is also called correlation.

A

reconciliation

58
Q

An appraiser determining the value of a shopping center would use the _______________.

A

income approach

59
Q

An example of physical deterioration (also called physical obsolescence) is _____________.

A

wear and tear

60
Q

For appraisal purposes, land does not __________ in value

A

depreciate

61
Q

The borrower’s right to cure the default and stop the foreclosure sale is ____________________.

A

equitable redemption

62
Q

A mortgage pledging personal property as well as real property as security for a debt is a _________________.

A

package mortgage

63
Q

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 ___________________.

A

acceleration clause

64
Q

A loan that is repaid in one single lump sum at the end of its life is called a straight loan or _________.

A

term loan

65
Q

A loan in which payments are scheduled so the entire principal balance is repaid by the maturity date is a ____________________.

A

fully amortized loan

66
Q

A final payment that is larger than preceding payments is a ________ payment.

A

balloon

67
Q

A ________________ is used when more than one property is pledged as security for a single loan.

A

blanket mortgage

68
Q

A mortgage given by the purchaser to the seller in partial payment for the property is a ______________ mortgage.

A

purchase money mortgage

69
Q

The difference between a property’s market value and the debts against it is ______.

A

equity

70
Q

The document that shows a veteran has the right to purchase a home using a VA loan is a ________________________.

A

certificate of eligibility

71
Q

A government-sponsored secondary mortgage market organization that buys both conventional and gov- ernment loans from primary lenders is  __________.

A

Fannie Mae

72
Q

An agency of the federal government that guarantees loans made to veterans is the __.

A

VA

73
Q

A government agency that insures (but does not make) mortgage loans is the ___

A

FHA

74
Q

A promissory note is ________ of the debt

A

evidence of the debt

75
Q

In a trust deed loan, a borrower is referred to as a _______.

A

trustor

76
Q

One who employs an agent to act on his/her behalf in a real estate transaction is known as a _________.

A

principal

77
Q

The person employed by a principal to act on the principals behalf is an _____.

A

agent

78
Q

Commissions charged by brokerage firms for their services are set by ___________.

A

negotiation

79
Q

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.


A

exclusive right-to-sell

80
Q

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 ________________.


A

exclusive agency

81
Q

A listing that allows an owner to list concurrently with more than one broker is known as an ____ listing.

A

open

82
Q

The relationship of brokers to their principals is known as a _________.

A

fiduciary

83
Q

When a broker serves as the agent for both the buyer and the seller, it is a ___________.

A

dual agency

84
Q

Unless otherwise provided for, earnest money must be deposited in the broker’s _____________.

A

trust account

85
Q

Depositing a client’s money in the same account with the broker’s money (which is illegal) is ___________.


A

commingling

86
Q

Using trust funds for personal reasons is __________.

A

conversion

87
Q

The first responsibility of a property manager is to ______________.

A

maintain value

88
Q

A property manager should seek _______________ tenants.

A

well-qualified tenants

89
Q

The buyer’s broker should ___________ deliver the earnest money to the listing broker after acceptance of the offer.

A

immediately

90
Q

Real estate commissions charged by a firm are determined by the ____________.

A

brokerage firm

91
Q

California law requires brokers to____inspect property.

A

visually

92
Q

The ____ expresses the relationship of the total finance charge to the amount financed.

A

APR

93
Q

The NAR Code of Ethics is based on the ___________.

A

golden rule

94
Q

Brokers and salespersons must check the National Do Not Call Registry before ____________.

A

cold calling

95
Q

An exception to the real estate licensing law is an ________ who is performing duties as such.

A

attorney

96
Q

The ________________ has a duty to review all documents from the parties to a transaction.

A

broker of record

97
Q

PRLS agents operate under a ___ -year license term.

A

two

98
Q

A real estate salesperson can never work _____________.

A

independently

99
Q

The Real Estate Commissioner requires salespersons to have a ___________________________.

A

written employment contract

100
Q

To obtain a salesperson’s license, an applicant must complete___college-level courses.

A

three

101
Q

Most environmental issues fall under the jurisdiction of the ____.

A

EPA

102
Q

Radon is a naturally occurring ____.

A

gas

103
Q

The Truth in Lending Act, which requires disclosure of the true cost of borrowing for consumer credit
transactions, is implemented by ____________ .

A

Regulation Z

104
Q

The law that is intended to make consumer credit available with fairness and impartiality is the _______________________________.

A

Equal Credit Opportunity Act (ECOA)

105
Q

The document that describes the potential impact of a proposed project on the environment is an ______________________________.

A

environmental impact report (EIR)

106
Q

All property other than real estate is known as _________________.

A

personal property

107
Q

Real estate consists of three things: land, improvements, and ______.

A

rights

108
Q

If a seller is taking a fixture, it must have been ________ from the purchase agreement.

A

excluded

109
Q

Land is not considered a ____________ because it cannot be sold quickly.

A

liquid asset

110
Q

When articles of personal property are permanently attached to the improvements, they become ________.

A

fixtures

111
Q

Before a new building can be inhabited, ________________________ a is required.

A

certificate of occupancy

112
Q

Permission to vary from strict compliance with zoning requirements may be obtained in the form of a _________.

A

variance

113
Q

When a previously established use does not comply with the requirements of a new zoning ordinance, it
may be allowed to continue as a __________________.

A

nonconforming use

114
Q

Townships, sections, and meridians are used in the __________________ form of legal description.

A

rectangular (government) survey

115
Q

A legal description that uses compass degrees is ________________.

A

metes and bounds

116
Q

The type of legal description used in most urban areas is _________________________.

A

lot, block, and subdivision

117
Q

A ___________ may be used to separate two incompatible zoning uses.

A

buffer zone

118
Q

Real estate and fixtures are transferred with a ____.

A

deed

119
Q

Personal property is transferred with a ____________.

A

bill of sale

120
Q

If the buyer is keeping the seller’s personal property, it must be _________ in the purchase agreement.

A

included

Real Estate Principals (5 decks)

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