Term
| The primary purpose that an appraiser would use a site analysis for would be to determine |
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Definition
|
|
Term
| under a lease, who has the leasehold estate? |
|
Definition
|
|
Term
| urban industrial property is usually valued by the: |
|
Definition
|
|
Term
| if a problem between a buyer and a seller cannot be resolved in escrow company can: |
|
Definition
| enter court action with the buyer and seller in an action of interpleader |
|
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Term
| a trust deed not taken by a state savings and loan association on a single family, owner occupied residence could be prepaid without a penalty: |
|
Definition
| if the loan is more than 7 yrs old |
|
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Term
| Johnson purchased a parcel of real property and received a standard policy of title insurance. Johnson would be protected against all of the following except |
|
Definition
| easements and liens on the property not revealed by the public record |
|
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Term
| The statement: "no prudent person would normally pay more for an object than the price of an acceptable alternative" refers to the appraising principle of: |
|
Definition
|
|
Term
| Under the Civil Code, agents must disclose to sellers and buyers in a real estate transaction the nature of the agency relationship in which of the following transactions, would this agency relationship be required to be disclosed? |
|
Definition
| a lease for a period of more than one year |
|
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Term
| The quickest appraisal method that can be used to convert the established income of a property into a dollar valuation of a property is the |
|
Definition
| gross rent multiplier approach |
|
|
Term
| a real estate investor who wishes to operate by using the principle of leverage would: |
|
Definition
| use borrowed money to the maximum extent possible |
|
|
Term
| a real estate transfer disclosure statement would be required when property is transferred by which of the following methods? |
|
Definition
| a sale transaction involving one to four units |
|
|
Term
| in the purchase of personal property during the acquisition of a business opportunity, which of the following is necessary to "perfect" the arrangement? |
|
Definition
| file a financing statement |
|
|
Term
| insofar as the ratio of land and improvement cost is concerned, which offers an investor the largest depreciation basis: |
|
Definition
| apartment property being sold at $100,000 |
|
|
Term
| The Truth-in-Lending Law as it pertains to real estate would most nearly apply to which of the following: |
|
Definition
| first T.D. loans and junior loans |
|
|
Term
| "Depression, expansion, prosperity, and recession" are all terms related to which of the following types of cycle: |
|
Definition
|
|
Term
| The Subdivided Lands Act requires the owner, subdivider, or agent to notify the Real Estate Commissioner if certain material changes occur in a subdivision. All of the following would be considered to be a material change in a subdivision except: |
|
Definition
| a change in the prices of the lots, units, or parcels |
|
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Term
| For federal income tax purposes, which of the following items is a legitimate deduction for an owner on unimproved real property that is being held for the purpose of investment? |
|
Definition
| a loss on the sale of the property |
|
|
Term
| If an appraiser is appraising a special purpose property, she would most generally use the |
|
Definition
|
|
Term
| For Federal income tax purposes, capital expenditures for improvements are: |
|
Definition
| added to the "cost basis" of the property and depreciated |
|
|
Term
| Under most construction loan terms, a lender will not release the final payment to the builder until |
|
Definition
| the lien period has expired |
|
|
Term
| if there is a default on a mortgage and the mortgagee decides to foreclose on the mortgage, the mortgagee would: |
|
Definition
| file an action in the court |
|
|
Term
| The purchaser in a sale-leaseback transaction would be least concerned with the |
|
Definition
| depreciated book value of the building |
|
|
Term
|
Definition
| a net income to the lessor |
|
|
Term
| which of the following is most nearly like an easement appurtenant? |
|
Definition
| stock in a mutual water company |
|
|
Term
| The California Real Estate Law requires a subdivider to notify the Real Estate Commissioner whenever there is a material change after a final public report has been issued. Which of the following would constitute a material change? |
|
Definition
| the sale of seven lots to a private builder |
|
|
Term
| When loaning money to two or more co-borrowers on a single promissory note, the lender would be best advised to increase the security on the note by inserting which of the following phrases after the names of the co-borrowers? |
|
Definition
|
|
Term
| a homeowner may take advantage of an exclusion from capital gains in the sale of their own personal residence |
|
Definition
|
|
Term
| Mr. Bailey purchased a 24 unit apartment building in 1988 for income tax purposes, he is allowed to calculate depreciation using which of the following methods? |
|
Definition
|
|
Term
| which of the following is the reciprocal of an 8% capitalization rate? |
|
Definition
|
|
Term
| The Real Estate Law is found in |
|
Definition
| the Business and Professions Code |
|
|
Term
| The Real Estate Commissioner reports to |
|
Definition
|
|
Term
| A salesperson owns 25% of the outstanding shares of Rollo Realty, Inc., and the broker owns the remaining shares. This division of ownership is |
|
Definition
|
|
Term
| A salesperson is part owner Rollo Realty, Inc. In the broker's absence, the salesperson frequently reviews the work of sales associates. This is |
|
Definition
|
|
Term
| A real estate business that is a partnership can have more than one office location, provided |
|
Definition
| a broker partner obtains an additional license for each location |
|
|
Term
| The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by |
|
Definition
| the Uniform Commercial Code |
|
|
Term
| An officer of Ajax Corporation, who is not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. The Officer received a commission on the sale in addition to his normal salary. The officer of Ajax Corporation |
|
Definition
| should have had a real estate license |
|
|
Term
| If a real estate license is NOT renewed before it expires, the licensee |
|
Definition
| must cease all real estate activities |
|
|
Term
| A real estate licensee can offer a mobilehome for sale that is |
|
Definition
| in a location where it can legally remain for one year |
|
|
Term
| A couple desperately wants to move to Pine Bend, and they like the seller's house, which is listed with a broker. The couple tells the broker. The couple tells the broker they will "make it worth his while" if he can persuade the sellers to accept their offer, and they send an expensive food basket to the broker as a sign of their good faith. The broker neglects to mention this to the sellers. This practice is |
|
Definition
|
|
Term
| A broker routinely places earnest money deposits in his personal account overnight safekeeping. This practice is |
|
Definition
|
|
Term
| A broker has an exclusive listing agreement with a property owner. The listing will terminate "when the parties agree." This practice is |
|
Definition
|
|
Term
When a broker exercised his option to buy Whiteacre, he represented to the owner of
Whiteacre a written statement of his expected profit in the transaction. The seller agreed in writing to proceed with the sale. This conduct is |
|
Definition
|
|
Term
| The broker-officer of XYZ Realty, Inc., does not like the overly aggressive sales tactics of XYZ's salespeople but has not reprimanded them because is so good. The broker's conduct is |
|
Definition
|
|
Term
| A broker wants to help out his neighbor's son, who recently acquired a B.A. in history from Back East University. The broker hires the graduate to show property to prospective buyers. Because the new employee has no real estate license, the broker handles all of the negotiating. This practice is |
|
Definition
|
|
Term
| A salesperson is selling the Greenacre Estate. An offer has been accepted, and the closing will take place in two weeks. While the owners are out of town, the buyer asks if the closing can be put off for one day. The salesperson agrees on behalf of the owners, for she is sure they will not object. The salesperson's conduct is |
|
Definition
|
|
Term
| A house is for sale following a murder in the house six months earlier. A salesperson, showing an out-of-town prospect through the house, decides to keep information about the murder to himself. The salesperson's conduct is |
|
Definition
|
|
Term
| A broker is so busy that he never has the time to return the phone calls of his principles. He prefers to spend his time in the field making sales and acquiring new listings. This practice is |
|
Definition
|
|
Term
| After attending a get-rich-quick real estate seminar, an attendee wants to buy a house "cheap". She tells a broker that she will offer $50,000, with seller financing and no down payment, on the Monroe Street house, which has an asking price of $125,000. The broker presents the offer with one of his own for $85,000, telling the owners make their asking price unrealistic. His conduct is |
|
Definition
|
|
Term
| A new broker opens a brokerage office and immediately places an ad in the local newspaper: List Your House with Me and I Will Pay You $500 at Closing. This practice is |
|
Definition
|
|
Term
|
Definition
| Voluntary surrender of a claim or right, such as when a Declaration of Abandonment terminates a homestead. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| A condensation of the essential provisions of a court judgment |
|
|
Term
|
Definition
| A summary or digest of the conveyances, transfers, and any other facts relied on as evidence of title, together with any other elements of record which may impair the title |
|
|
Term
|
Definition
| Clause in trust deed or mortgage giving the lender the right to call all sums owing to be due and payable upon the happening of a certain event, such as the sale of the property or failure to pay property taxes. |
|
|
Term
|
Definition
| Acquiring title by having property added to your property |
|
|
Term
|
Definition
| An addition to land from natural causes as, for example, from gradual action of the ocean or river waters. |
|
|
Term
|
Definition
| Accumulated up to this point in time. Accrued interest, or accrued depreciation. |
|
|
Term
|
Definition
| The difference between the cost of replacement new as of the date of the appraisal and the present appraised value |
|
|
Term
|
Definition
| A formal declaration before a duly authorized officer by a person who has executed an instrument that such execution in his act and deed |
|
|
Term
|
Definition
| 43,560 square feet of land |
|
|
Term
|
Definition
| Knowledge if the existence of a thing or fact |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The relationship between principal and agent which arises out of a contract, either expressed or implied, written or oral, wherein the agent in employed by the principal to do certain acts dealing with a third party |
|
|
Term
|
Definition
| One who represents another from whom he has derived authority |
|
|
Term
|
Definition
| The transferring of property to another; the transfer of property and possession of lands, or other things, from one person to another |
|
|
Term
|
Definition
| Clause in a loan document providing for full payment if property is sold. |
|
|
Term
|
Definition
| (American Land Title Association) A type of title insurance policy issued by title insurance companies which expands the risks normally insured against under the standard type policy. It is a lender's policy. |
|
|
Term
|
Definition
| Satisfaction of enjoyable living to be derived from a home; conditions of agreeable living of a beneficial influence arising from the location or improvements |
|
|
Term
|
Definition
| The liquidation of a financial obligation on an installment basis; also, recovery, over a period, or cost of value. |
|
|
Term
|
Definition
| A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal. Also called a level payments loan. |
|
|
Term
|
Definition
| A principle of appraisal which affirms that value is created by anticipated benefits to be derived in the future. |
|
|
Term
|
Definition
| An opinion of the value of the property, usually by a licensed or certified appraiser |
|
|
Term
|
Definition
| One qualified by education, training and experience who is hired to estimate the value of real and personal property based on experience, judgment, facts, and use of formal appraisal processes. |
|
|
Term
|
Definition
| Something annexed to another thing which may be transferred incident to it. That which belongs to another thing, as a barn, dwelling, garage or orchard is incident to the land to which it is attached |
|
|
Term
|
Definition
| Putting together two or more parcels to increase the total value |
|
|
Term
|
Definition
| A value placed upon property by a public officer or board as basis for taxation |
|
|
Term
|
Definition
| The valuation of property for the purpose of levying a tax or the amount of the tax to be levied. |
|
|
Term
|
Definition
| The official who has the responsibility of determining assessed values. |
|
|
Term
|
Definition
| The one to whom property is transferred |
|
|
Term
|
Definition
| A transfer or making over to another of the whole of any property, real or personal, in possession or in action, of any estate or right therein |
|
|
Term
|
Definition
| One who assigs or transfers property |
|
|
Term
|
Definition
| The taking of title to property by a grantee, wherein he or she assumes liability for payment of an existing not secured by a mortgage or deed of trust against the property, becoming a co-guarantor for the payment of a mortgage or trust deed note. |
|
|
Term
|
Definition
| Seizure of property by court order, usually done to have it available in the event that a judgment is obtained in a pending lawsuit |
|
|
Term
|
Definition
| One who is authorized to perform acts for another under a power of attorney; power of attorney may be limited to a specific act or acts, or be general. |
|
|
Term
| During the days of Spanish rule, all land was owned by |
|
Definition
|
|
Term
| The Treaty of Guadalupe Hidalgo ended |
|
Definition
|
|
Term
| Real Estate Law, which relies on court decisions as well as legislation, is based on |
|
Definition
|
|
Term
| Land disputes over the Spanish and Mexican land grants were settled by |
|
Definition
| the Board of Land Commissioners |
|
|
Term
| In California, the tern real estate is synonymous with |
|
Definition
|
|
Term
|
Definition
|
|
Term
| The sale of real property generally is governed by the laws of |
|
Definition
| the state where the real property is located |
|
|
Term
| The sale of personal property generally is governed by the laws of |
|
Definition
| the state where the owner of the property resides |
|
|
Term
| In California, the Uniform Commercial Code governs sales transactions involving |
|
Definition
|
|
Term
| For real estate to be conveyed, there must be an accurate |
|
Definition
|
|
Term
|
Definition
| a good reference for a legal description |
|
|
Term
| The MOST useful method of describing a subdivision parcel is probably |
|
Definition
|
|
Term
| The regular survey system is also called |
|
Definition
| the U.S. government survey system |
|
|
Term
| California has how many principal baselines? |
|
Definition
|
|
Term
| A township consists of how many sections? |
|
Definition
|
|
Term
|
Definition
|
|
Term
| The point of beginning is used in |
|
Definition
| the metes and bound system |
|
|
Term
|
Definition
| Where the final installment payment on a note is greater than the preceding installment payments, and it pays the note in full, such final installment is termed a balloon payment |
|
|
Term
|
Definition
| Imaginary lines used by surveyors to find and describe the location of private or public lands. |
|
|
Term
|
Definition
| A wall or partition supporting any vertical load in addition to its own weight |
|
|
Term
|
Definition
| (1) One entitled to the benefit of a trust; (2) One who receives profit from an estate, the title which is vested is a trustee; (3) The lender on the security of a note and deed of trust. |
|
|
Term
|
Definition
| A contract in which both parties agree to perform certain acts. |
|
|
Term
|
Definition
| A written instrument given to pass title of personal property from vendor to vendee |
|
|
Term
|
Definition
| An encumbrance which covers more than one parcel of property |
|
|
Term
|
Definition
| A single mortgage which covers more than one piece of real estate |
|
|
Term
|
Definition
| Profit gained in exchange of properties on which income tax is not deferred. May be anything of value, including mortgage relief. |
|
|
Term
|
Definition
| Boundaries used in a metes and bounds legal description. |
|
|
Term
|
Definition
| The breaking of a law, or failure of duty, either by omission or commission. |
|
|
Term
|
Definition
| A licensed person who does real estate acts for compensation or in expectation of compensation. He acts for himself and it paid directly by the client. |
|
|
Term
|
Definition
| The sale or lease of a business. It includes personal property and it may include real property |
|
|
Term
|
Definition
| The rules of an organization such as a corporation or partnership |
|
|
Term
| A fee simple estate and a life estate are |
|
Definition
|
|
Term
| The highest form of ownership is |
|
Definition
|
|
Term
| Victor and Karen are not married but together own community property because they are |
|
Definition
| registered domestic partners |
|
|
Term
| A fee simple estate that may be lost when some act is performed is |
|
Definition
| a fee simple on condition subsequent |
|
|
Term
| A fee simple estate that has no conditions is |
|
Definition
|
|
Term
| If Greenacre is deeded by Lou to Mary for Mary's life, Mary has |
|
Definition
|
|
Term
| If Greenacre is deeded by Lou to Mary for Mary's life, Lou has |
|
Definition
|
|
Term
| When Aunt Winifred died, she left a life estate in Whiteacre to her nephew George. When George dies, Whiteacre will go to George's daughter Elizabeth is |
|
Definition
|
|
Term
| If Greenacre is deeded by Lou to Mary for life of Nancy, Nancy has |
|
Definition
|
|
Term
| The owner of a life estate can |
|
Definition
| sell only the life estate |
|
|
Term
| Joint tenants have unity of |
|
Definition
| time, title, interest, and possession |
|
|
Term
| Jessica and John own Blackacre as joint tenants. Jessica's will specifies that on her death her interest in Blackacre is to go on her sister Mona. When Jessica dies |
|
Definition
| John will be sole owner of Blackacre |
|
|
Term
| Three joint tenants share interest in a property. If one joint tenant's share is sold using the proper legal formalities, the new owner will then be |
|
Definition
| a tenant in common with the other joint tenants |
|
|
Term
|
Definition
| all property acquired by a spouse or registered domestic partner that is not separate property |
|
|
Term
| One of the forms of concurrent ownership is |
|
Definition
|
|
Term
|
Definition
| the right to possession of partnership property for partnership purposes |
|
|
Term
| Absolute control, as well as absolute liability, belongs to |
|
Definition
|
|
Term
| When doing business in California, a corporation chartered in California is |
|
Definition
|
|
Term
| Title to a spouse's marital property can be transferred upon death by use of |
|
Definition
|
|
Term
|
Definition
| not liable for partnership debts beyond the amount invested |
|
|
Term
| A person who dies without a will dies |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Someone who receives real property by will is called |
|
Definition
|
|
Term
| A typewritten will must be |
|
Definition
| made by competent person, signed by the testator, and witnessed. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| The probate court appoints |
|
Definition
| an administrator or administratrix |
|
|
Term
| When soil is deposited on a riverbank, gradually building out the land, the process is called |
|
Definition
|
|
Term
| When flood conditions cause land to be washed away, this is known as |
|
Definition
|
|
Term
| When water recedes, creating a new shoreline, the process is called |
|
Definition
|
|
Term
| Elena moves onto Mike's land, builds a home, pays the property taxes, and claims she owns the property. When will she have good title, even against Mike? |
|
Definition
|
|
Term
| The right to travel over the property of someone else is |
|
Definition
|
|
Term
| A cotenant who wants property that is co-owned to be sold would bring |
|
Definition
|
|
Term
| In event of default, real property may be sold without court action if the mortgage or other lien instrument contains |
|
Definition
|
|
Term
| The court order following a judgment for money is |
|
Definition
|
|
Term
| The power of the state to take private property for public use is called |
|
Definition
|
|
Term
| To be effective, a deed must be |
|
Definition
|
|
Term
| The transfer of title from grantor to grantee, and from that grantee to a subsequent grantee, and so on, is called |
|
Definition
|
|
Term
| Legal title conveyed by a deed of trust may be regained by |
|
Definition
|
|
Term
|
Definition
|
|
Term
| A mechanic's lien can be filed by |
|
Definition
|
|
Term
|
Definition
|
|
Term
| When required, preliminary notice of right to file a mechanic's lien should be given |
|
Definition
| within 20 days of the starting time |
|
|
Term
| A notice of cessation is appropriate |
|
Definition
| when the work has been stopped for 30 days |
|
|
Term
| A notice of completion should be filed within |
|
Definition
| 10 days after completion of the work of improvement |
|
|
Term
| Generally, the action to enforce a mechanic's lien claim must be filed within how many days after the lien is recorded? |
|
Definition
|
|
Term
| If unauthorized work is being done, a property owner can |
|
Definition
| file a notice of nonresponsibility |
|
|
Term
|
Definition
|
|
Term
| The sheriff is directed to sell property by |
|
Definition
|
|
Term
| The right to use adjacent land to go to and from a roadway is |
|
Definition
|
|
Term
| Betty's property includes an easement over Al's land. Al's property is |
|
Definition
|
|
Term
| Betty's property includes an easement over Al's land. Betty's property is |
|
Definition
|
|
Term
| George does not own any land but has an easement over Al's and Betty's property to go down to the river. George has |
|
Definition
|
|
Term
| Marilyn's 40-acre tract, purchased from Alan, is landlocked, which means that she |
|
Definition
| can get an easement by necessity over Alan's adjoining parcel |
|
|
Term
| Al sold Blackacre to Betty, giving her an easement over Whiteacre. Years later, Al bought Blackacre back from Betty. What effect did his purchase have on the easement? |
|
Definition
| the purchase terminated the easement |
|
|
Term
| The maximum homestead exemption may be claimed by a homeowner who is |
|
Definition
| older than 65 years of age |
|
|
Term
|
Definition
|
|
Term
| The homestead exemption for a single person is at LEAST |
|
Definition
|
|
Term
| The homestead exemption for a homeowner who is a member of a family unit is at LEAST |
|
Definition
|
|
Term
| Generally an agent works for |
|
Definition
|
|
Term
|
Definition
| is anyone younger than 18 years of age |
|
|
Term
| Someone appointed to carry out a particular transaction is |
|
Definition
|
|
Term
| An independent contractor is distinguished by |
|
Definition
| responsibility for Social Security and other payments |
|
|
Term
| The California Real Estate Law treats a real estate salesperson as |
|
Definition
| an employee of the broker |
|
|
Term
| A salesperson is a broker's |
|
Definition
|
|
Term
| An agency agreement to perform an act that requires a writing |
|
Definition
| must itself be in writing |
|
|
Term
| To be enforceable, all real estate sales contracts |
|
Definition
|
|
Term
| As a contract, a real estate agency agreement |
|
Definition
| must meet the requirements for a valid contract |
|
|
Term
| Real estate commission rates |
|
Definition
|
|
Term
| All real estate agency agreements must |
|
Definition
|
|
Term
| The MOST commonly used form of real estate listing agreement is |
|
Definition
| the exclusive authorization and right-to-sell listing |
|
|
Term
| A real estate agent owes duties to |
|
Definition
| the principal, the third person, and the subagent. |
|
|
Term
| The agent owes the principal the duty of |
|
Definition
|
|
Term
| A real estate agent must make full disclosure of |
|
Definition
| material facts that are known by the agent or that would be revealed by a reasonable inspection of the property |
|
|
Term
| The principal owes the agent |
|
Definition
|
|
Term
| A real estate seller must disclose |
|
Definition
| material facts concerning the property's value or desirability |
|
|
Term
| Exaggerating a property's value or desirability |
|
Definition
|
|
Term
| The Recovery Account is available to |
|
Definition
| people victimized by a real estate licensee |
|
|
Term
| An agency relationship may NOT be terminated by |
|
Definition
| someone outside the agency relationship |
|
|
Term
| A 17-year-old can contract as an adult if she |
|
Definition
|
|
Term
| The owner of a one-person shoe repair shop is |
|
Definition
|
|
Term
| Mary persuaded her elderly Aunt Agnes to buy grossly overpriced condominium. Mary knew the price was too high, but she received a commission on the sale from the seller. Aunt Agnes may complain of |
|
Definition
| actual fraud and undue influence |
|
|
Term
| The contract Haji Ababe accepted states a purchase price "as appraised on May 12, 2016, by Mike Morton, MAI." Based on this provision, the contract is |
|
Definition
|
|
Term
| Can a broker enforce an oral listing agreement for his neighbor's home? |
|
Definition
|
|
Term
| When both parties agree to cancel a contract, they effect |
|
Definition
|
|
Term
| Todd made an offer for the Brown residence, and the Browns accepted the offer. On reconsidering, Todd decided to back out of the deal, and the Browns agreed to let him do so. Todd and the Browns then signed |
|
Definition
| an agreement reforming the purchase contract |
|
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Term
| Which is NOT a way to terminate a contract? |
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Definition
|
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Term
| Lonnie and Karen have a contract to buy the Santos house. Following a four-day rainstorm, the Santos house was pushed off its foundation by a mudslide and is now resting about halfway over a ravine. The contract probably |
|
Definition
| discharged because performance is impossible |
|
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Term
| If a buyer's performance of her sales contract becomes economically impractical, she should |
|
Definition
| ask that the contract be terminated |
|
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Term
| Failure to perform a contract is |
|
Definition
|
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Term
| Drew signed a contract to sell his farm to George. Drew had second thoughts and refused to sell, but the sale went through anyway. How did this happen? |
|
Definition
| George received a court order for specific performance of the contract |
|
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Term
| The time period in which a lawsuit can be brought is set by |
|
Definition
| the statute of limitations |
|
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Term
| The statute of limitations for an action based on a written real estate contract is |
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Definition
|
|
Term
| The rule for preprinted contracts is |
|
Definition
| handwriting takes precedence over both typing and printing |
|
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Term
| A property description including the words "250 acres, more or less" is |
|
Definition
| sufficient if reasonably close to the exact acreage |
|
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Term
| A well-drafted real estate purchase contract will include provisions for |
|
Definition
| the buyer's possession of the property, the financing terms, & proration of property expenses. |
|
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Term
| Unless the seller provides the necessary documentation, part of the proceeds of a sale of real property must be withheld for federal tax purposes as provided by |
|
Definition
|
|
Term
| Liquidated damages paid on default by the buyer of a single-family residence who intended to occupy the dwelling cannot exceed what percentages of the purchase price? |
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Definition
|
|
Term
| A seller received an offer of $610,000 for his house. His asking price is $635,000. If the buyer rejects the counteroffer, may the seller accept the $610,000 offer? |
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Definition
|
|
Term
| A $450,000 house can be purchased with a $90,000 down payment using the principle of |
|
Definition
|
|
Term
| The Fed can increase or decrease the amount of money in circulation by all of following |
|
Definition
| establishing the discount rate, raising or lowering reserve requirements, & buying and selling government securities. |
|
|
Term
| Federal savings and loan activities are overseen by |
|
Definition
| the Office of the Comptroller of the Currency |
|
|
Term
| California usury laws apply primarily to |
|
Definition
|
|
Term
| Real estate is hypothecated by use of |
|
Definition
|
|
Term
| To be a negotiable instrument, a promissory not must be |
|
Definition
| a promise to pay money to the bearer |
|
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Term
| A holder in due course must take a negotiable instrument |
|
Definition
| without notice of any defense against its enforcement |
|
|
Term
| In a mortgage, the lender is |
|
Definition
|
|
Term
| The highest bidder at a judicial foreclosure receives |
|
Definition
|
|
Term
| In a deed of trust, the borrower is |
|
Definition
|
|
Term
| In a deed of trust, the lender is |
|
Definition
|
|
Term
| The first step in bringing about a trustee's sale is to prepare |
|
Definition
|
|
Term
| There is no right of redemption following |
|
Definition
|
|
Term
|
Definition
| a mortgage in which the interest rate changes periodically based on an index. |
|
|
Term
| MOST adjustable-rate loans are |
|
Definition
|
|
Term
| Interest rate and payment can change every three to five years in |
|
Definition
| a renegotiable-rate mortgage |
|
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Term
|
Definition
|
|
Term
|
Definition
| the Closing Disclosure form |
|
|
Term
| A lender that discriminates against a loan applicant because of race has violated |
|
Definition
| the Equal Credit Opportunity Act |
|
|
Term
| A California veteran might have a home loan insured by |
|
Definition
|
|
Term
| FHA appraisal value is used to set the upper limit of |
|
Definition
|
|
Term
| In addition to a monthly charge, FHA mortgage insurance includes a one-time payment on a purchase loan that is |
|
Definition
|
|
Term
| For an existing structure, the maximum FHA mortgage loan term is |
|
Definition
|
|
Term
| One discount point will increase a lender's effective yield by approximately |
|
Definition
|
|
Term
| For discount points will increase a lender's effective yield by approximately |
|
Definition
|
|
Term
| On FHA loans, seller contributions, including discounts and closing costs, cannot exceed |
|
Definition
|
|
Term
| Five different graduated payment mortgages are approved by |
|
Definition
|
|
Term
| A veteran can have a home guaranteed by |
|
Definition
|
|
Term
| The notice of value sets the upper limit of value for |
|
Definition
|
|
Term
| Using the benefits of the GI Bill, a veteran cannot buy |
|
Definition
|
|
Term
| A veteran can be given a home loan on property owned by |
|
Definition
|
|
Term
| A CalVet purchase loan must be applied for |
|
Definition
| before a contract of sale is signed |
|
|
Term
| CalVet loans are NOT available for |
|
Definition
|
|
Term
| Many seller-financed purchases are examples of |
|
Definition
|
|
Term
| An installment sales contract also called |
|
Definition
|
|
Term
|
Definition
| both land and buildings can be sold |
|
|
Term
| The secondary mortgage market does NOT deal in |
|
Definition
|
|
Term
| Ginnie Mae securities are NOT backed by |
|
Definition
|
|
Term
|
Definition
| Having legal competence to sign binding contacts. |
|
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Term
|
Definition
| Profit from the sale of property. Used in computing income taxes. |
|
|
Term
|
Definition
| Loss from sale of property. Used in computing income taxes. |
|
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Term
|
Definition
| (1) In appraising, determining the value of property by considering net income and percentage or reasonable return on the investment. (2) In accounting, carrying an expenditure as an asset, rather than taking it as an expense. |
|
|
Term
|
Definition
| The rate which is considered a reasonable return on the investment, and used in the process of determining value based upon net income. |
|
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Term
|
Definition
| Covenants, Conditions, and Restrictions affecting the use of a property. |
|
|
Term
|
Definition
| A history of conveyances and encumbrances affecting the title from the time the original patent was granted, or as far back as records are available. |
|
|
Term
|
Definition
| A principle of appraisal which holds that it is the future, not the past, which is of prime importance in estimating value |
|
|
Term
|
Definition
|
|
Term
|
Definition
| A personal property interest in real property, such as a lease. |
|
|
Term
|
Definition
| Any conditions revealed by a title search which affect the title to property; usually relatively unimportant items which can be removed with a quitclaim deed or court action. |
|
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Term
|
Definition
| Rules of an organization used as a guideline by members of the organization (e.g., N.A.R. Code of Ethics). |
|
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Term
|
Definition
| Mixing client's money or property with the agent's |
|
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Term
|
Definition
| Property accumulated through joint efforts of husband and wife. |
|
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Term
|
Definition
| Sales which have similar characteristics as the subject property and are used for analysis in the appraisal process. |
|
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Term
|
Definition
| A means of appraising by comparing recent sales prices of similar properties |
|
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Term
|
Definition
| Legally qualified, or capable of signing contracts. |
|
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Term
|
Definition
| Interest paid on original principal and also on the accrued and unpaid interest which has accumulated. |
|
|
Term
|
Definition
| The act of taking private property for public use by a political subdivision through the exercise of eminent domain; declaration that a structure is unfit for use. |
|
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Term
|
Definition
| A system of individual fee ownership of units in a multi-part structure, combined with joint ownership of common areas of the structure(s) and the land. |
|
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Term
|
Definition
| A principle of appraisal which holds that that maximum value is realized when a reasonable degree of homogeneity of improvements is present. |
|
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Term
|
Definition
| Anything of value given to induce entering into a contract; it may be money, personal services, or even love and affection. |
|
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Term
|
Definition
| Notice given by public records or possession of the property. |
|
|
Term
| Contribution, Principle of |
|
Definition
| An appraisal principal which holds that the value of a part of a property (such as a swimming pool) is determined by what buyers are willing to pay for it, not what it cost to construct. |
|
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Term
|
Definition
| A loan made without government backing. |
|
|
Term
|
Definition
| The transfer of title of land from one to another |
|
|
Term
|
Definition
| The price a buyer pays for a property |
|
|
Term
|
Definition
| One of the three methods in the appraisal process. An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding back land value. |
|
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Term
|
Definition
| The price a buyer paid for a property, used in computing any capital gain for income tax purposes. |
|
|
Term
|
Definition
| Trees which lose their leaves in the autumn and winter |
|
|
Term
|
Definition
| Written instrument which when properly executed and delivered, conveys title. |
|
|
Term
|
Definition
| Document by which naked legal title is transferred to a trustee as a security for a loan |
|
|
Term
|
Definition
| Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act |
|
|
Term
|
Definition
| A judgment given when the security pledge for a loan does not satisfy the debt upon its default |
|
|
Term
|
Definition
| Document used when accepting earnest money to bind an offer. Basic contract between buyer and seller |
|
|
Term
|
Definition
| Loss of value in real property brought about by age, physical deterioration or functional or economic obsolescence. Broadly, a loss in value from any cause. |
|
|
Term
|
Definition
| An order directing a person to desist and refrain from committing an act in violation of the law. |
|
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Term
|
Definition
| An amount deducted from the face amount of a loan |
|
|
Term
|
Definition
| Prepaid interest demanded by demanded by lender when a loan is negotiated. A premium paid for the privilege of borrowing at the stated interest rate. |
|
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Term
|
Definition
| A tax collected when a deed is recorded. Stamps are affixed to the deed. |
|
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Term
|
Definition
| The land that is benefitted by an easement appurtenant |
|
|
Term
|
Definition
| Unlawful constraint exercised upon a person whereby the person is forced to do some act against his or her will. |
|
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Term
|
Definition
| Deposit accompanying an offer. |
|
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Term
|
Definition
| Created by grant or agreement for a specific purpose, an easement is the right, privilege or interest which one party has in the land of another (example. Right-of-Way) |
|
|
Term
|
Definition
| The period over which a property will yield a return on the investment, over and above the economic or ground rent due to land. |
|
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Term
|
Definition
| A loss in value due to factors outside the subject property, but adversely affecting the value of the subject property. |
|
|
Term
|
Definition
| The number of years of age that is indicated by the condition of the structure |
|
|
Term
|
Definition
| The maximum rent from income property minus the vacancies |
|
|
Term
|
Definition
| The right of the government to acquire property for necessary public or quasi-public use by condemnation; the owner must be fairly compensated. |
|
|
Term
|
Definition
| Trespass; the building of a structure or construction of any improvements partly or wholly on the property of another. |
|
|
Term
|
Definition
| Anything which affects or limits the fee simple title to property, such as mortgages, easements or restrictions of any kind. Liens are special encumbrances which make the property security for payment of a debt or obligation, such as mortgages. |
|
|
Term
|
Definition
| The reverting of property to the state when heirs capable of inheriting are lacking |
|
|
Term
|
Definition
| The deposit of instruments and finds with instructions to a neutral third party to carry out the provisions of an agreement or contract; when everything is deposited to enable carrying out the instructions, it is called a complete or perfect escrow. |
|
|
Term
|
Definition
| The degree, quantity, nature and extent of interest which a person has in real property |
|
|
Term
|
Definition
| A freehold estate, not of inheritance, but which is held by the tenant for his or her own life or lives of one or more other persons. |
|
|
Term
|
Definition
| An interest in lands by virtue of a contract for the possession of them for a definite and limited period of time, which might be for days, weeks, months or years. |
|
|
Term
|
Definition
| A fee estate. The greatest degree of ownership of real property |
|
|
Term
|
Definition
| An estate which may descent to heirs. A type of fee estate |
|
|
Term
|
Definition
| Putting out a tenant when his or her right to possess the property has ended |
|
|
Term
|
Definition
| A written instrument giving one agent the right to sell property for a specified time but reserving the right of the owner to sell the property himself or herself without the payment of a commission |
|
|
Term
|
Definition
| A written agreement between an owner and an agent giving the agent the right to collect a commission if the property is solid by anyone during the term of the agreement |
|
|
Term
|
Definition
| To complete, to make, to perform, to do, to follow out; to sign a deed, to make a deed, including especially signing, sealing, and delivery; to execute a contract is to perform the contract, to follow out to the end, to complete. |
|
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Term
|
Definition
| A contract where both parties have completely performed |
|
|
Term
|
Definition
| A contract where something remains to be done by one or both of the parties |
|
|
Term
|
Definition
| A broad form title insurance policy which protects the owner against additional risks not covered in a standard policy |
|
|
Term
| Federal Housing Administration |
|
Definition
| Federal agency which insures lenders making FHA loans. |
|
|
Term
| Federal National Mtg. Assoc. |
|
Definition
| FNMA, Fannie Mae, provides a secondary market by buying and selling existing loans. |
|
|
Term
|
Definition
| An estate of inheritance (a fee simple estate) in real property) |
|
|
Term
|
Definition
| An estate of inheritance, where ownership continues for an indefinite period. It may be sold or willed. |
|
|
Term
|
Definition
| Fee simple ownership with no qualifications or limitations. |
|
|
Term
|
Definition
| Fee simple ownership with a condition which, if broke, could result in loss of title to the property. |
|
|
Term
|
Definition
| A person in a position of trust and confidence, as between principal and broker; broker, as fiduciary, owes certain loyalty which cannot be breached under rules of agency. |
|
|
Term
|
Definition
| The instrument which is filed in a loan on personal property in order to give public notice of the security interest and thereby protect the interest of the secured parties in the collateral. |
|
|
Term
|
Definition
| Items attached to the land or improvements, which usually cannot be removed without agreement, and therefore, they become real property; examples: plumbing fixtures built into the property, etc. |
|
|
Term
|
Definition
| Procedure whereby property pledged as a security for a debt is solid to pay the debt in the event of default in payments or terms. |
|
|
Term
|
Definition
| The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent, cheat or deceive another person whereby that person acts upon it to the loss of the property and to his or her injury. |
|
|
Term
|
Definition
| A fee simple or life estate. |
|
|
Term
|
Definition
| Property measurement for sale or valuation purposes; the property measured by the front foot on its street line- each front foot extending the depth of the lot |
|
|
Term
|
Definition
| Loss of value due to adverse factors from within the structure which affect the utility of the structure. |
|
|
Term
|
Definition
| A lien which affects all property of a person. |
|
|
Term
|
Definition
| A deed conveying the title. It has two implied warranties. |
|
|
Term
|
Definition
| The purchaser; a person to whom a grant is made. |
|
|
Term
|
Definition
| The action clause of a grant deed. |
|
|
Term
|
Definition
| Seller of a property; one who signs a deed. |
|
|
Term
|
Definition
| Total income before any expenses are deducted. |
|
|
Term
|
Definition
| The sale price of a property divided by the gross rent from that property. |
|
|
Term
|
Definition
| An appraisal phrase meaning that use which, at the time of an appraisal, is most likely to produce the greatest net rate of return to the land and/or buildings over a given period of time; that use which produces the greatest amount of amenities or profit. |
|
|
Term
|
Definition
| One who has taken a note, check or bill of exchange in due course (1) Before it was overdue; (2) In good faith and for value; (3) Without knowledge that it has been previously dishonored and without notice of any defect at the time it was negotiated. |
|
|
Term
|
Definition
| A home upon which the owner or owners have recorded a Declaration of Homestead, which protect the homeowner against judgment up to specified amounts. |
|
|
Term
|
Definition
| To give a thing as security without the necessity of giving up possession of it. |
|
|
Term
|
Definition
| A trust-type account established by lenders for the accumulation of funds to meet taxes, FHA mortgage insurance premiums, and/or future insurance policy premiums required to protect their security. Impounds are usually collected with the note payment. |
|
|
Term
|
Definition
| Things built on land which become a part of the real property |
|
|
Term
|
Definition
| A property that produces rent. |
|
|
Term
|
Definition
| A writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding. |
|
|
Term
|
Definition
| A not which provides that payments of a certain sum or amount to be paid on the dates specified in the instrument. |
|
|
Term
| Installment Sales Contract |
|
Definition
|
|
Term
|
Definition
| A note signed by two or more persons in which they are liable jointly and individually for the full amount of the loan. |
|
|
Term
|
Definition
| Joint ownership by two or more persons with right of survivorship; all joint tenants own equal interest and have equal rights in the property. |
|
|
Term
|
Definition
| The final determination of a court of competent jurisdiction of matter presented to it; money judgments provide for the payment of claims presented to the court, or are awarded as damages, etc. |
|
|
Term
|
Definition
| A lien that does not have first priority, such as a second trust deed. |
|
|
Term
|
Definition
| A small usually wooden structure, often cylindrical in shape and open on one or more sides. Often used as an information booth. |
|
|
Term
|
Definition
| A contract ordinarily used in connection with the sale of a property in cases where the seller does not wish to convey title until all or a certain part of the purchase price in paid by the buyer, often used when property is sold with a small down payment. |
|
|
Term
|
Definition
| A contract between the owner and tenant setting forth conditions upon which tenant may occupy and use the property, and the term of the occupancy. |
|
|
Term
|
Definition
| The interest of one who leases property. A less-than-freehold estate. |
|
|
Term
|
Definition
| A description recognized by law; a description by which property can be definitely located by reference to government surveys or approved recorded maps. |
|
|
Term
|
Definition
| One who contracts to rent property under a lease contract. |
|
|
Term
|
Definition
| An owner who contracts to rent property under a lease contract. |
|
|
Term
|
Definition
| The use of borrowed money to make an investment. |
|
|
Term
|
Definition
| Personal, revocable, non-assignable permission to do some at on the land of another. |
|
|
Term
|
Definition
| A form of encumbrance which usually makes property security fro the payment of a debt or discharge of an obligation; example: judgments, mortgages, deeds of trust, etc. |
|
|
Term
|
Definition
| An estate limited in duration to the life or lives of one or more designated persons. |
|
|
Term
| Liquidated Damages Clause |
|
Definition
| A clause in the contract specifying the damages in the event of a breach of contract. |
|
|
Term
|
Definition
| The ability to convert an asset to cash quickly. |
|
|
Term
|
Definition
| Suit pending, usually recording so as to give constructive notice of pending litigation. |
|
|
Term
|
Definition
| An employment contract between principal and agent authorizing the agent to perform services for the principal involving the latter's property; listing contracts are entered into for the purpose of securing persons to buy, lease or rent property. |
|
|
Term
|
Definition
| Lender's contractual commitment to a loan based on the appraisal and underwriting. |
|
|
Term
|
Definition
| The amount of the loan expressed as a percentage of the appraised value. |
|
|
Term
|
Definition
| One of the three methods in the appraisal process. A means of comparing similar types of residential properties, which have recently sold, to the subject property. |
|
|
Term
|
Definition
| The price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure. |
|
|
Term
|
Definition
| Merchantable title; title free and clear of objectionable liens or encumbrances. |
|
|
Term
|
Definition
| General plan for the future development of a community. |
|
|
Term
|
Definition
| A fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his consent to the agent to enter into the particular transaction on the specified terms. |
|
|
Term
|
Definition
| A lien placed on property by laborers and material suppliers who have contributed to a work of improvement. |
|
|
Term
|
Definition
| A term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| All persons under the age of majority, usually 18. |
|
|
Term
|
Definition
| An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; procedure for foreclosure, in event of default, is established by statute. |
|
|
Term
|
Definition
| One to whom a mortgagor give a mortgage to secure a loan or performance of an obligation; a lender. |
|
|
Term
|
Definition
| One who gives a mortgage on his property to secure a loan or assure performance of an obligation; a borrower. |
|
|
Term
|
Definition
| The gross income of income property minus the vacancies and allowable expenses equals the net income. Also the net profit of a business. |
|
|
Term
|
Definition
| A signed written instrument acknowledging a debt and promising payment. |
|
|
Term
|
Definition
| A document which is recorded when an improvement is completed on a property. |
|
|
Term
|
Definition
| A document that is recorded and delivered to the borrower when a default has occurred under a deed of trust. |
|
|
Term
| Notice of Nonresponsibility |
|
Definition
| A notice provided by law designed to relive a property owner from responsibility for the cost of work done on property or materials furnished therefore; notice must be verified, recorded and posted. |
|
|
Term
|
Definition
| Loss in value due to reduced desirability and usefulness of a structure because its design and construction become obsolete; loss because of becoming old-fashioned and not in keeping with modern needs, with consequent loss of income. |
|
|
Term
|
Definition
| Statement by owner of property or owner of lien against property setting forth the present status of liens against said property. |
|
|
Term
|
Definition
| An authorization given by a property owner to a real estate agent wherein said agent is given the nonexclusive right to secure a purchaser; open listings may be given to any number of agents. |
|
|
Term
|
Definition
| A mortgage containing a clause which permits the mortgagor to borrow additional money after the loan has been reduced without rewriting the mortgage. |
|
|
Term
|
Definition
| A right given for a consideration to purchase or lease a property upon specified terms within a specified time. |
|
|
Term
|
Definition
| Receiver of an option. Usually a potential buyer. |
|
|
Term
|
Definition
| Giver of an option. Usually a potential seller. |
|
|
Term
|
Definition
| A clause in a loan document allowing the borrower to pay additional sums at any time. |
|
|
Term
|
Definition
| A clause in a blanket mortgage or trust deed allowing for reconveyance or title of a part of the property when part of the loan is paid off. |
|
|
Term
|
Definition
| A leasehold estate continuing from period-to-period until the landlord to tenant gives notice. |
|
|
Term
|
Definition
| Any property which is not real property. |
|
|
Term
|
Definition
| Impairment of condition. Loss in value brought about by wear and tear, disintegration, use and actions of the elements. |
|
|
Term
|
Definition
| An agency of the city or county appointed to study and recommend steps for the orderly growth of the community. |
|
|
Term
|
Definition
| Prepaid interest demanded by lender when a loan is negotiated. A premium paid for the privilege of borrowing at the stated interest rate. Each point represents one percent of the loan amount. |
|
|
Term
|
Definition
| The right of the state to enact laws and enforce them for the order, safety, health, moral and general welfare of the public. |
|
|
Term
|
Definition
| An instrument authorizing a person to act as the agent of the person granting it. |
|
|
Term
|
Definition
| Penalty for the payment of a mortgage or trust deed note before it actually becomes due. |
|
|
Term
|
Definition
| The securing of an easement on a property by using it under certain conditions for a given period of time. |
|
|
Term
|
Definition
| Presumptively true on its face. |
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Term
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Definition
| The market where loans are originated. |
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Term
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Definition
| The employer of an agent. In a listing contract, this is normally the seller. |
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Term
|
Definition
| A limitation placed on the use of the property by the seller |
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Term
|
Definition
| That cause originating from a series of events that, without break in continuity, results in the prime object of an agent's employment producing a final buyer. |
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Term
| Progression, Principle of |
|
Definition
| The worth of a lesser valued residence tends to be enhanced by association with many higher valued residences in the same area. |
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Term
|
Definition
| Following a loan commitment from the lender, the borrower signs a note promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its repayment. |
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Term
|
Definition
| Anything of which there may be ownership. |
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Term
|
Definition
| To divide or prorate equally or proportionately to time of use. |
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Term
|
Definition
| A limitation places on the use of property by the government, usually through zoning laws. |
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Term
|
Definition
| The right to the use of property without interference of possession. |
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Term
|
Definition
| A court action brought to establish title or to remove a cloud on the title. |
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Term
|
Definition
| A deed to relinquish any interest in the property which the grantor may have. |
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Term
|
Definition
| Property that consists of land, that which is affixed to land, and that which is appurtenant to it. Generally considered immovable. |
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Term
|
Definition
| A real estate broker holding active membership in a real estate board associated with the National Association of Realtors. |
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Term
|
Definition
| The deed given by the trustee to the trustor, removing the lien against the property. |
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Term
|
Definition
| Filing for record in the office of the county recorder or other proper government official. |
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Term
|
Definition
| The restoration of a property to satisfactory condition without drastically changing the plan, form or style of architecture. |
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Term
|
Definition
| This is a stipulation that upon the payment of a specific sum of money to the holder of a trust deed or mortgage, the lien of the instrument as to a specifically described lot or area shall be removed from the blanket liens on the whole are involved. |
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Term
|
Definition
| The cost of replacing the subject improvement with one having utility equivalent to that being appraised, but constructed with modern materials, and according to current standards, design and layout. |
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Term
|
Definition
| The cost of replacing the subject improvement with one that is the exact replica, having the same quality of workmanship, design and layout. |
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Term
| Request for Notice of Default |
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Definition
| Document which is recorded by the holder of a junior loan so he or she may be notified if the buyer defaults on other loans. |
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Term
|
Definition
| The abrogation or annulling of contract; the revocation or repealing of the contract by mutual consent of the parties to the contract, or for cause by either party to the contract. |
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Term
|
Definition
| A right retained by the grantor when conveying a property. |
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Term
|
Definition
| The term as used relating to real property means the owner of real property is restricted or prohibited from doing certain things relating to the property, or using the property for certain purposes. |
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Term
|
Definition
| (1) Principal paid on a loan; (2) The return demand on income property for the depreciation of the improvements. |
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Term
|
Definition
| (1) The interest paid on a loan; (2) The profit received on investment in income property. |
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Term
|
Definition
| Right to acquire the interest of a deceased joint owner; distinguishing feature of a joint tenancy. |
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Term
|
Definition
| The right of a landowner to water, on, under or adjacent to his land. |
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Term
|
Definition
| A situation where the owner of a piece of property wishes to sell the property and retain occupancy by leasing it from the buyer. |
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Term
|
Definition
| A loan that has been in existence long enough to show a pattern of payments. |
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Term
| Secondary Mortgage Market |
|
Definition
| The market where existing loans are bought and sold. |
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Term
|
Definition
| A parcel of land, normally one mile square, containing 640 acres. |
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Term
|
Definition
| Document used when property is used as security for a loan; it can be a trust deed, a mortgage or a land contract. |
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Term
|
Definition
| Property burdened by an easement. |
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Term
|
Definition
| An ordinance prohibiting the erection of a building or structure between the curb and the setback line. |
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Term
|
Definition
| Owned by one person only. Sole ownership. |
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Term
|
Definition
| Economic obsolescence. A loss in value caused by factors outside of the property lines. |
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Term
|
Definition
| Legal charge against real estate by a public authority to pay cost of public improvements such as street lights, sidewalks, street improvements, etc. |
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Term
|
Definition
| A lien which affects only a particular parcel of property. |
|
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Term
|
Definition
| A court action to compel performance of an agreement, such as forcing the sale of a property. |
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Term
|
Definition
| State law which provides that certain contracts must be in writing in order to be enforceable by law. |
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Term
|
Definition
| A state law which prevents court action by an injured party in a contract if not taken within specific time limits. |
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|
Term
| Stock Cooperative Project |
|
Definition
| A subdivision where title to the property is held by a corporation. Stockholders receive a right of possession of a particular apartment. |
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Term
|
Definition
| A note where only interest payments are made during the term of the loan. The entire principal balance is paid at the end of the term. |
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Term
|
Definition
| When a grantee takes title to real property subject to a mortgage, the grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The grantee's maximum risk is his or her equity in the property. |
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Term
|
Definition
| A lease given by a lessee. |
|
|
Term
|
Definition
| A clause in a junior or second lien permitting retention of priority. A subordination clause may also be used in a first deed of trust permitting it to be subordinated to subsequent liens, as for example, the liens of construction loans. |
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|
Term
| Substitution, Principle of |
|
Definition
| A principle of appraisal which affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute property assuming no costly delay is encountered in making the substitution. |
|
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Term
|
Definition
| A group of investors who pool their money for a common investment. |
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Term
|
Definition
| A loan arranged by the owner or builder-developer for a buyer. The construction loan made for construction of the improvements is usually paid from the proceeds of this loan. |
|
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Term
|
Definition
| An exchange of "like for like" properties for the purpose of deferring income taxes. |
|
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Term
|
Definition
| Ownership by two or more persons who hold undivided interest, without right of survivorship; interests need not be equal. |
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Term
|
Definition
| Insurance written by a title company to protect property owner against loss if title is imperfect. |
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Term
|
Definition
| A parcel of land six miles square, containing 36 sections and therefore, 36 square miles. |
|
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Term
|
Definition
| Articles of personal property annexed to real property, but which are necessary to the carrying on of a trade or business and are removable by the owner. |
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Term
|
Definition
| A neutral bank account maintained by a broker for the deposit of money entrusted with him. |
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Term
|
Definition
| Deed given by the borrower to the beneficiary to be held pending fulfillment of an obligation, which is ordinarily repayment of a loan to the beneficiary. It gives naked legal title to a trustee. |
|
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Term
|
Definition
| One who holds legal title to a property in trust for another (the beneficiary) to secure the performance of an obligation. |
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Term
|
Definition
| A deed given by a trustee when property is foreclosed and sold at a trustee's sale. |
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Term
|
Definition
| One who deeds his property to a trustee to be held as security until he has performed his obligation to a lender under terms of a deed of trust. |
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Term
|
Definition
| The interest of a co-owner in real property. His interest cannot be separated without court action. |
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Term
|
Definition
| An increase in value of real estate due to no effort on the part of the owner; often due to an increase in population. |
|
|
Term
|
Definition
| A contract that cannot be sued upon in a court of law. |
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Term
|
Definition
| An exchange of a promise for an act. Only one party is bound to perform. |
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Term
|
Definition
| A court suit to evict a tenant. |
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Term
|
Definition
| Having force, or binding force; legally sufficient and authorized by law. |
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Term
|
Definition
| An interest rate in a loan which can be changed upon the happening of a certain event. |
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Term
|
Definition
| A rezoning of a single parcel. |
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Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| The have no force or effect; that which is unenforceable. |
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|
Term
|
Definition
| That which is capable of being adjudged void, but is not void unless action is taken to make it so. |
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|
Term
|
Definition
| Any lien placed on property with the consent of, or as a result of, the voluntary act of the owner. |
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|
Term
|
Definition
| The process of collecting loans for later resale as a part of a package. |
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Term
|
Definition
| Act of city or county authorities specifying the type of use to which the property may be put in specific areas. |
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|
Term
| To create an escrow, there must be |
|
Definition
|
|
Term
| escrow instructions can be |
|
Definition
| changed only by written agreement of both parties. |
|
|
Term
| The escrow holder acts in the capacity of |
|
Definition
|
|
Term
| Which must be licensed as escrow agents to perform such services? |
|
Definition
|
|
Term
| In Southern California, escrows are MOST often held by |
|
Definition
|
|
Term
| By law a licensed escrow agent must |
|
Definition
|
|
Term
| A real estate broker can serve as an escrow |
|
Definition
| when she represents one of the parties to the transaction. |
|
|
Term
| The legal action that may be brought by an escrow holder is |
|
Definition
|
|
Term
| Providing a copy of any buyer broker agreement is the responsibility of |
|
Definition
|
|
Term
| Providing tenant information is the responsibility of |
|
Definition
|
|
Term
| Prorations at closing on amounts other than interest payments usually are based on |
|
Definition
|
|
Term
| If closing is on May 19, what amount will be charged to the buyers on a total property tax of $4,320 paid by the sellers for the current tax year? Remember to use the standard number of days in the month. |
|
Definition
|
|
Term
| Closing is on June 15, and rent of $2,400 has been prepaid for the current month. What amount will the seller be debited as closing if the buyer receives credit for the day of closing? |
|
Definition
|
|
Term
| A buyer's settlement statement includes |
|
Definition
|
|
Term
| The MOST thorough method of title check results in |
|
Definition
|
|
Term
| A title plant consists of |
|
Definition
| a title company's lot books and general indexes |
|
|
Term
| Title insurance is paid as of the day |
|
Definition
|
|
Term
| Title insurance protects a buyer against |
|
Definition
| all claims except those excluded by the policy. |
|
|
Term
| Water rights are excluded from coverage in |
|
Definition
| a standard policy of title insurance. |
|
|
Term
| Lender's title insurance typically is paid by |
|
Definition
|
|
Term
| Property taxes are ad valorem taxes, which means that they are |
|
Definition
| charged in relation to the value of the property taxed. |
|
|
Term
| The Smith's sale of their residence is |
|
Definition
|
|
Term
| The property tax year runs from |
|
Definition
|
|
Term
| A lien in the amount of tax due is placed on all assessed real property on |
|
Definition
|
|
Term
| When all past-due property taxes are paid, the county tax collector issues |
|
Definition
| a certificate of redemption |
|
|
Term
| The buyer of property at an auction by the tax collector receives |
|
Definition
|
|
Term
| A benefit assessment also may be called |
|
Definition
|
|
Term
| The use of property assessments was expanded by |
|
Definition
| the Mello-Roos Community Facilities Act. |
|
|
Term
| A deed may show on its face that which of the following taxes was paid? |
|
Definition
|
|
Term
| Sales and use taxes are the responsibility of |
|
Definition
| the State Board of Equalization |
|
|
Term
| In California there is a state sales tax on |
|
Definition
| fixtures sold as part of a business. |
|
|
Term
| The State of California collects |
|
Definition
|
|
Term
|
Definition
| when an individual voluntarily transfers property for anything less than its fair market value. |
|
|
Term
| Gift tax is payable when the total value of gifts to an individual in one year is more than |
|
Definition
|
|
Term
| Sam gave his friend Joe $15,000 for his tuition at Old Ivy, sending the money directly to the school. Must a gift tax return be filed? |
|
Definition
| No, because this is not considered a gift. |
|
|
Term
| Mario died in 2014, leaving only his separate property estate valued at $500,000. Must an estate tax return be filed? |
|
Definition
|
|
Term
| The rate of federal income tax paid depends on the taxpayer's |
|
Definition
|
|
Term
| Property that can be depreciated for income tax purposes is called |
|
Definition
|
|
Term
| With respect to investment property, an investor can make use of |
|
Definition
| mortgage interest deductions from property income. |
|
|
Term
| An apartment in San Francisco can be leased for a term of no more than |
|
Definition
|
|
Term
| An office in Los Angeles can be leased for a term of no more than |
|
Definition
|
|
Term
| Agricultural land can be leased for a term of no more than |
|
Definition
|
|
Term
| A security deposit on furnished residential property can be no more than |
|
Definition
|
|
Term
| If a question arises as to the validity of landlord's claim against a tenant's security deposit, |
|
Definition
| the tenant is presumed to be entitled to the security deposit. |
|
|
Term
| A landlord wants to give a tenant's apartment to her nephew. The landlord tries to drive the tenant out by constantly phoning him, visiting him, and insisting that his apartment be used to show prospective tenants for other units what the building is like. The landlord is violating the tenant's |
|
Definition
| covenant of quiet enjoyment. |
|
|
Term
| A landlord has a right of entry |
|
Definition
|
|
Term
| Transfer of all of a tenant's rights under a lease is |
|
Definition
|
|
Term
| A lease may be renewed automatically only if |
|
Definition
| all of the statutory requirements are met. |
|
|
Term
| A dwelling is untenantable if it substantially lacks |
|
Definition
|
|
Term
| Because a tenant complains about the condition of the building, the landlord may |
|
Definition
| investigate the complaint. |
|
|
Term
| Which may be considered in choosing a tenant? |
|
Definition
|
|
Term
| On May 15, a business owner notified her landlord that she would be vacating her retail store location on June 30. The business owner has a month-to-month periodic tenancy. Until what date will she incur rent? |
|
Definition
|
|
Term
| A landlord must follow the legal requirements for an eviction |
|
Definition
|
|
Term
| A landlord may begin eviction proceedings with |
|
Definition
|
|
Term
| The sheriff or marshal can forcibly remove a tenant by |
|
Definition
|
|
Term
| The owner of 417 Main, an office building, receives a guaranteed monthly income from her tenants and pays no expenses. She has |
|
Definition
|
|
Term
|
Definition
| is the property owner's agent. |
|
|
Term
| A tenant moved out of his apartment at the end of the lease term. The landlord will be allowed to increase the rent for a new tenant to reflect the current market value because the local rent control ordinance. |
|
Definition
| provides for vacancy decontrol. |
|
|
Term
| Trevor owns a vacant lot and employs an appraiser to determine the property's |
|
Definition
|
|
Term
| Since the Riverside factory closed, houses in Sunny Acres are taking longer to sell, and prices have gone down. This is a result of |
|
Definition
|
|
Term
| A house that benefits from the desirability of its neighboring properties is an example of the principle of |
|
Definition
|
|
Term
| A homeowner's deluxe five-bedroom house is in a neighborhood of modest three-bedroom houses. The value of the five-bedroom house will be affected because of the principle of |
|
Definition
|
|
Term
| An improvement to a house may or may not create a corresponding increase in the house's market value. This is an example of |
|
Definition
|
|
Term
| The Miejas are looking forward to eventually retiring on the profit they will make from selling their house. Their attitude is an example of |
|
Definition
|
|
Term
| To calculate the market value of a 19th-century San Francisco Victorian-style mansion using the cost approach, you probably would use |
|
Definition
|
|
Term
| The cubic-foot method of estimating construction cost is BEST used for |
|
Definition
|
|
Term
| Appraiser Hansen estimated all direct and indirect construction cost of the Harley Building separately, then totaled them. She used |
|
Definition
| the quantity survey method. |
|
|
Term
| A single-family residence with a one-car garage may be an example of |
|
Definition
|
|
Term
| Houses adjacent to a new highway will probably suffer from |
|
Definition
| incurable external obsolescence. |
|
|
Term
| Which is NOT a form of depreciation? |
|
Definition
|
|
Term
| The upper limit of a property's value usually is determined by |
|
Definition
|
|
Term
| Vacancy and collection losses are subtracted from potential gross income to derive |
|
Definition
|
|
Term
| The step in which the appraiser arrives at a final opinion of value is called |
|
Definition
|
|
Term
| The MOST comprehensive method of conveying the result of an appraisal is |
|
Definition
| the self-contained report. |
|
|
Term
| In contracting for any work on someone else's property, a contractor's license is NOT needed |
|
Definition
| if the work costs less than $500 |
|
|
Term
| A contractor's license can be suspended or revoked for |
|
Definition
| abandoning a project, violating building laws, breaching a construction contract. |
|
|
Term
| A type of roof with two steeply pitched planes is called |
|
Definition
|
|
Term
| A Dutch colonial house is distinguished by |
|
Definition
|
|
Term
| Ornate exterior woodwork is usually found on |
|
Definition
| a Queen Anne Victorian house. |
|
|
Term
| An architectural style in which homes share a common wall is called |
|
Definition
|
|
Term
| The location of a house on its site is called its |
|
Definition
|
|
Term
| The sun's arc in the sky is highest in |
|
Definition
|
|
Term
|
Definition
| the kitchen near the garage. |
|
|
Term
| Earthquake protection is provided by |
|
Definition
| anchor bolts, cross-bracing, plywood sheathing. |
|
|
Term
| A two-story platform house is built |
|
Definition
|
|
Term
| The vertical supports in a wood-frame house are called |
|
Definition
|
|
Term
| A post-and-beam frame house is built |
|
Definition
| with posts within the house that support beams. |
|
|
Term
| A brick or stone exterior finish is called |
|
Definition
|
|
Term
| The main roof supports are |
|
Definition
|
|
Term
| A window that opens out is called |
|
Definition
|
|
Term
| A relatively inexpensive and easy-to-install interior wall finishing is |
|
Definition
| plasterboard, drywall and wallboard. |
|
|
Term
| Heat from sunlight reaching water-filled containers is used in |
|
Definition
| passive solar-heating systems. |
|
|
Term
| Every house sold in California must have at LEAST |
|
Definition
|
|
Term
| All water heaters must be |
|
Definition
| braced, anchored, or strapped. |
|
|
Term
| Land-use policies and goals are established through |
|
Definition
|
|
Term
| The general plan must consider |
|
Definition
| housing at all income levels. |
|
|
Term
| Planning for future development does NOT include consideration of |
|
Definition
| Contractor's License Law. |
|
|
Term
| Zoning ordinances are an exercise of a government's |
|
Definition
|
|
Term
| A property owner deprived by a zoning ordinance of the privileges enjoyed by owners of other property in the vicinity may apply for |
|
Definition
|
|
Term
| Land may be subdivided for purposes of |
|
Definition
|
|
Term
| The Subdivided Lands Law applies to subdivision of land into |
|
Definition
|
|
Term
| An out-of-state subdivider of California land |
|
Definition
| must procure a public report. |
|
|
Term
| A standard subdivision includes |
|
Definition
|
|
Term
| A subdivision consisting of individually owned lots as well as areas owned in common is |
|
Definition
|
|
Term
| A subdivision consisting of individual ownership of airspace and areas owned in common is |
|
Definition
|
|
Term
| A corporation holds title to property and shareholders having a right of occupancy to part of the property own the corporation in |
|
Definition
| a stock cooperative project. |
|
|
Term
| The subdivision public report is issued by |
|
Definition
| the Real Estate Commissioner. |
|
|
Term
| A final subdivision public report has an initial term of |
|
Definition
|
|
Term
| The Subdivision Map Act allows |
|
Definition
| local jurisdiction to determine whether a subdivision is desirable. |
|
|
Term
| A "proposed subdivision" is covered by |
|
Definition
| the Subdivision Lands Law. |
|
|
Term
| Disclosure of the fact that property is located in a special studies zone must be made by |
|
Definition
| the real estate agent who represents the seller. |
|
|
Term
| Discrimination in housing is prohibited by |
|
Definition
| both state and federal laws. |
|
|
Term
| A homeowner whose property is exempt from the requirements of the federal Fair Housing Act will still be subject to |
|
Definition
| the 1866 Civil Rights Act. |
|
|
Term
| The broadest prohibition against all forms of discrimination in the sale of residential real estate is found in |
|
Definition
|
|
Term
| Finance: The nature of the real estate financing relationship includes all of the following |
|
Definition
| collateral, leverage, hypothecation. |
|
|
Term
| Finance: In finance, leverage is applied to |
|
Definition
|
|
Term
| Finance: Through December 2015, the total of U.S. mortgages outstanding on all types of property exceeded |
|
Definition
|
|
Term
| Finance: Local real estate markets are MOST affected by |
|
Definition
|
|
Term
| Finance: Of all the loans outstanding on real estate in the United States, the largest total amount of money is loaned on |
|
Definition
| one-to-four-family residential properties. |
|
|
Term
| Finance: All of the following participate in a national secondary market for real estate mortagages |
|
Definition
| Ginnie Mae, Freddie Mac, Fannie Mae. |
|
|
Term
| Finance: The secondary mortgage market is designed to |
|
Definition
| redistribute money nationally. |
|
|
Term
| Finance: Real estate cycles are primarily reflections of |
|
Definition
|
|
Term
| Finance: We can view money as all of the following |
|
Definition
| as a medium of exchange, as a storehouse of purchasing power, as a standard of value. |
|
|
Term
| Finance: Our present monetary system is based on |
|
Definition
| a standard of confidence. |
|
|
Term
| Finance: The FDIC is involved in all of the following activities |
|
Definition
| insuring commercial bank deposits up to $250,000, insuring savings association deposits up to $250,000, & being appointed receiver for failed banks and thrifts. |
|
|
Term
| Finance: When a bank fails, the FDIC can take all of the following actions |
|
Definition
| liquidating the bank and its assets, merging the failed bank with another insured depository organization, & reimbursing depositors up to $250,000 for each amount. |
|
|
Term
| Finance: The Federal Reserve System is designed to |
|
Definition
|
|
Term
| Finance: When the Fed sells securities, it tends to |
|
Definition
|
|
Term
| Finance: The Fed's open market includes the sale and purchase of |
|
Definition
|
|
Term
| Finance: The U.S. Treasury is this nation's |
|
Definition
|
|
Term
| Finance: The Office of Thrift Supervision |
|
Definition
| is under the Comptroller of the Currency. |
|
|
Term
| Finance: Mortgage brokers do all of the following |
|
Definition
| arrange mortgages, collect placement fees, acts as noninstitutional lenders. |
|
|
Term
| Finance: The success of a mortgage broker depends upon all of the following |
|
Definition
| underwriting ability, the number of defaulted loans, & continuing relationship with investors. |
|
|
Term
| Finance: Mortgage bankers do all of the following |
|
Definition
| collect payments, arrange discounts, & lend their own money. |
|
|
Term
| Finance: Mortgage bankers are usually described as all of the following |
|
Definition
| as correspondents, as noninstutional lenders, & as intermediaries. |
|
|
Term
| Finance: When a mortgage banker establishes a line of credit with a commercial bank, the bank is acting as the mortgage banker's |
|
Definition
|
|
Term
| Finance: Real estate investment trusts are all of the following |
|
Definition
| corporations, investment conduits, & owned by 100 or more investors. |
|
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Term
| Finance: Tax-free bonds are issued to provide funds to finance houses for |
|
Definition
| low-income and middle-income homebuyers. |
|
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Term
| Finance: Real estate bonds are issued to finance all of the following purposes |
|
Definition
| industrial park developments, municipal improvements, & subdivision offsite improvements. |
|
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Term
| Finance: Unsecured bonds are called |
|
Definition
|
|
Term
| Finance: When a bond is paid from property taxes, it is |
|
Definition
| a general obligation bond. |
|
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Term
| Finance: Discretionary income is money that is used for |
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Definition
|
|
Term
| Finance: Commercial bank trust departments act as all of the following |
|
Definition
| executors, conservators, & guardians. |
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Term
| Finance: Which of the following institutional lenders are the leading lender for one-to-four-family loans? |
|
Definition
|
|
Term
| Finance: Which of the following is NOT an institutional lender |
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Definition
|
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Term
| Finance: Which type of property has the highest total of mortgage loans outstanding against it? |
|
Definition
|
|
Term
| Finance: Commercial banks participate in real estate finance through all of the following |
|
Definition
| trust departments, interim loans, & secondary markets. |
|
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Term
| Finance: MOST commercial banks create long-term, fixed-rate real estate loans for |
|
Definition
| sale in the secondary market. |
|
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Term
| Finance: Of the following categories, which is the MOST active in the multi-family loan market? |
|
Definition
|
|
Term
| Finance: When making nonamortized real estate loans, state-chartered banks in Finance: California are limited to which maximum percentage of the property's appraised value? |
|
Definition
|
|
Term
| Finance: Life insurance companies: |
|
Definition
| make loans on large real estate projects, are concerned with safety and long-term stability, & make participation loans. |
|
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Term
| Finance: California state-chartered savings banks are permitted all of the following activities |
|
Definition
| making loans of up to 100% of appraised value, making nonresidential loans to 40% of their total assets, & issuing checking accounts. |
|
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Term
| Finance: A straight conventional loan includes |
|
Definition
| no third party insurance or guarantees. |
|
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Term
| Finance: All of the following relationships are correct |
|
Definition
DVA L/V ratio= 100%
FHA L/V ratio= 95%
conventional-guaranteed L/V ratio=90% |
|
|
Term
|
Definition
|
|
Term
| Finance: FHA loans made after December 1989 |
|
Definition
| require qualification ratios of 31% and 43%. |
|
|
Term
| Finance: Which of the following is the MOST an eligible veteran may pay for a home under the current DVA loan formula? |
|
Definition
|
|
Term
| Finance: The interest rates on an FHA-insured loan are established by |
|
Definition
|
|
Term
| Finance: The DVA loan guarantee program protects |
|
Definition
|
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Term
| Finance: A qualified veteran with full entitlement wishes to purchase a home with a $417,000 CRV. What is the correct down payment? |
|
Definition
|
|
Term
| Finance: Financing for farms and ranches depends all of the following categories |
|
Definition
| productivity of the land, management skills, & climatic conditions. |
|
|
Term
| Finance: The Farm Credit System includes of the following participants |
|
Definition
| the Federal Credit Banks, the Production Credit Associations, & the Farmers Home Administration. |
|
|
Term
| Finance: The City of Los Angeles Mortgage Program provides mortgage loans for |
|
Definition
| eligible first-time homebuyers. |
|
|
Term
| Finance: The California Housing Agency provides loans for all of the following |
|
Definition
| low-rent apartment projects, first-time homebuyers, & down payment assistance. |
|
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Term
| Finance: A lender must provide a Loan Estimate to the borrower within three business day of receipt of the borrower's loan application. The only fee the lender may collect from the borrower before the Loan Estimate is given is for |
|
Definition
|
|
Term
|
Definition
| a law prohibiting discrimination in lending. |
|
|
Term
| Finance: The federal Truth in Lending Act (Regulation Z) |
|
Definition
| provides borrowers with a comparative percentage rate. |
|
|
Term
| Finance: RESPA is designed to |
|
Definition
| provide borrowers with closing cost information. |
|
|
Term
| Finance: The Holden Act prohibits discrimination in lending on the basis of all of the following reasons |
|
Definition
| existing neighborhood conditions, national origin, & neighborhood ethnic composition. |
|
|
Term
| Finance: Under California usury laws, loans made by all off the following participants are exempt from usury ceilings |
|
Definition
| banks, credit unions, & pawnbrokers. |
|
|
Term
| Finance: All of the following encumbrances are considered junior loans |
|
Definition
| an equity loan, a wraparound contract for deed, & a second mortgage. |
|
|
Term
| Finance: The use of junior finance through owner carrybacks increases when |
|
Definition
| market interest rates are high. |
|
|
Term
| Finance: Junior finance is often utilized for all of the following |
|
Definition
| land improvements, home improvements, & low down payment purchases. |
|
|
Term
| Finance: In the event of a default of the priority senior loan, a junior lender can usually do all of the following |
|
Definition
| pay the senior loan balance in full, bid at the foreclosure sale, & foreclose against the junior borrower. |
|
|
Term
| Finance: Creating a junior loan at the same time as a senior loan is known as |
|
Definition
|
|
Term
| Finance: When traded in the market, junior loans are usually sold at |
|
Definition
|
|
Term
| Finance: Lenders may increase their yields on real estate loans by using all of the following techniques |
|
Definition
| raising the interest rate, charging origination fees, & adding a discount amount to the principal owed. |
|
|
Term
| Finance: Interest rates on junior loans carried back by homesellers are usually |
|
Definition
| equal to or lower than market rates |
|
|
Term
| Finance: Interest rates on real estate loans are established by |
|
Definition
| agreement between the lender and borrower. |
|
|
Term
| Finance: A cross-defaulting clause in a junior loan |
|
Definition
| automatically triggers a default on the junior loan. |
|
|
Term
| Finance: Which type of loan includes both personal property and real property? |
|
Definition
|
|
Term
| Finance: Under which type of loan is the seller cashed out? |
|
Definition
|
|
Term
| Finance: Under which type of loan are the lower payments in the early years of the loan with periodic payment increases? |
|
Definition
| Graduated-payment mortgage. |
|
|
Term
| Finance: Under which type of loan does the lender adjust the interest rate according to a prearranged index? |
|
Definition
| Adjustable-rate mortgage (ARM). |
|
|
Term
| Finance: Which type of loan is known as a mortgage for future advances? |
|
Definition
|
|
Term
| Finance: Under which type of loan are all payments received by the borrower? |
|
Definition
| Reverse annuity mortgage. |
|
|
Term
| Finance: Under which arrangement does a buyer lock in a seller with none, some, or all of the payments applying to the purchase price? |
|
Definition
|
|
Term
| Finance: Which type of loan is short term, interest-only, and is in a junior position? |
|
Definition
|
|
Term
| Finance: A leasehold mortgage based essentially upon a tenant's financial strength is called |
|
Definition
|
|
Term
| Finance: The rights of a borrower to redeem property after a judicial foreclosure sales are described as |
|
Definition
| statutory rights of redemption. |
|
|
Term
| Finance: A note has all of the following attributes |
|
Definition
| it is an IOU, it is a promise to pay, & it is a negotiable instrument. |
|
|
Term
| Finance: A covenant of seisin states that the borrower |
|
Definition
| warrants title, as represented, to the lender. |
|
|
Term
| Finance: A deed of trust requires a borrower to pay all of the following |
|
Definition
| property taxes, hazard insurance premiums, & principal and interest payments. |
|
|
Term
| Finance: In a deed of trust, which of the following relationships is NOT always correct? |
|
Definition
|
|
Term
| Finance: A provision in a real estate loan preventing any prepayment for a specified time is called |
|
Definition
|
|
Term
| Finance: In an assumption, a due-on-sale clause in a mortgage contract allows the lender to do all of the following |
|
Definition
| review the credit of the buyer, call in the balance of the loan if not notified, & prohibit the assumption of the mortgage. |
|
|
Term
| Finance: To assume a loan is to do all of the following |
|
Definition
| agree to make its payments, become legally liable for its provisions, & be responsible for maintaining the property. |
|
|
Term
| Finance: To purchase a property "subject to" an existing mortgage is to do all of the following |
|
Definition
| agree to make the mortgage payments, be responsible for maintaining the property, & become the property's fee simple owner. |
|
|
Term
| Finance: The evaluation of the risks involved when issuing a new real estate loan is known as |
|
Definition
|
|
Term
| Finance: All of the following sources of funds are usually included in a borrower's income analysis |
|
Definition
| spousal earnings, regular overtime, & court-ordered child support. |
|
|
Term
| Finance: A borrower with a 2:1 current asset ratio has twice as many |
|
Definition
| assets as liabilities and is probably a good credit risk. |
|
|
Term
| Finance: The direct sales comparison approach to estimating a property's value is based primarily on |
|
Definition
| adjusting comparable properties' recent sales prices. |
|
|
Term
| Finance: The income approach to the estimate of a property's value is based primarily on |
|
Definition
| the property's ability to generate net income. |
|
|
Term
| Finance: The value of a 50-year-old house would probably BEST be estimated by using |
|
Definition
| the direct sales comparison approach. |
|
|
Term
| Finance: An example of a constructive notice is |
|
Definition
|
|
Term
| Finance: An abstract of title is |
|
Definition
| a historical review of a property's title. |
|
|
Term
| Finance: A standard title insurance policy insures against |
|
Definition
| errors in matters of record. |
|
|
Term
| Finance: A fault in a title can be corrected by |
|
Definition
|
|
Term
| Finance: Property surveys sometimes discover problems in all of the following categories |
|
Definition
| legal descriptions, easements, & encroachments. |
|
|
Term
| Finance: In California, real estate transfer disclosures include disclosures for all of the following categories |
|
Definition
| age and condition of the structure, soil contamination, & deed restrictions. |
|
|
Term
| Finance: Disclosures for possible geological hazards include all of the following events |
|
Definition
| flooding, landslides & earthquakes. |
|
|
Term
| Finance: Prior to closing a real estate loan, every borrower must receive all of the following items |
|
Definition
| an estimate of costs, an estimate of the amount of the monthly installments, & information relevant under Regulation Z, RESPA, and EOCA. |
|
|
Term
| Finance: In a loan closing, the borrower is usually charged with all of the following items |
|
Definition
| the prorated interest, the title insurance premium, & the recording fees. |
|
|
Term
| Finance: Fannie Mae and Freddie Mac are able to replenish their own funds, enabling them to purchase loans from primary lenders by |
|
Definition
| selling mortgage-backed securities |
|
|
Term
| Finance: Lenders may order either a mandatory or standby commitment to sell loans to Fannie Mae through |
|
Definition
| the administered price system. |
|
|
Term
| Finance: Which of the following statements regarding Fannie Mae guidelines is TRUE |
|
Definition
| Loans with a higher than 80% LTV require private mortgage insurance. |
|
|
Term
| Finance: The BEST description of a nonconforming loan is one that |
|
Definition
| does not meet Fannie Mae and Freddie Mac |
|
|
Term
| Finance: Fannie Mae debt-to-income ratios requirement is |
|
Definition
|
|
Term
| Finance: Freddie Mac was originally chartered to |
|
Definition
| provide a secondary market for savings associations. |
|
|
Term
| Finance: The agency established to ensure financial safety and soundness of Fannie Mae and Freddie Mac is |
|
Definition
| the Federal Housing Finance Agency (FHFA). |
|
|
Term
| Finance: The MOST important role played by Ginnie Mae today is |
|
Definition
| guaranteeing mortgage-backed securities payments |
|
|
Term
| Finance: Which statement regarding Ginnie Mae is TRUE? |
|
Definition
| Ginnie Mae is under the supervision of HUD. |
|
|
Term
| What agency is a government-sponsored enterprise? |
|
Definition
|
|
Term
| Finance: MOST loan defaults occur when a borrower does NOT |
|
Definition
| make the principal and interest payments on time. |
|
|
Term
| Finance: A foreclosure will usually be initiated when |
|
Definition
| a borrower can no longer make payments, even after forbearance, and the value of the collateral has dropped below the outstanding balance of the loan. |
|
|
Term
| Finance: When all other adjustments have been made and have failed, a foreclosure procedure may still be avoided by |
|
Definition
| a voluntary conveyance of a deed. |
|
|
Term
| Finance: After an FHA-insured loan is foreclosed, any of the following may transpire |
|
Definition
| the FHA will reimburse the lender in full and in cash, the FHA will reimburse the lender in full and in debentures, & the lender will secure title to the property, refurbish it, and sell it. |
|
|
Term
| Finance: When a veteran defaults on a DVA loan and it is foreclosed, the Department of Veterans Affairs may do all of the following |
|
Definition
| bring the loan current, securing subrogation rights against the borrower, pay the lender in full and in cash, taking title to the collateral, & pay the lender the difference between the deteriorated collateral's value at the foreclosure and balance of the loan up to the maximum limits, allowing the lender to keep the collateral. |
|
|
Term
| Finance: The MOST common foreclosure procedure in California is |
|
Definition
|
|
Term
| Finance: Under judicial foreclosure, a borrower may do all of the following |
|
Definition
| reinstate the loan prior to foreclosure by paying the delinquencies and costs, redeem the property after the public sale by paying the loan in full plus costs in three months to one year, depending on circumstances, & remain in possession of the property after the public sale for prescribed time. |
|
|
Term
| Finance: In a foreclosure of a deed of trust, all of the following documents utilized are |
|
Definition
| the declaration of default, the notice of sale, & the trustee's deed. |
|
|
Term
| Finance: When a deed of trust is foreclosed, the defaulting borrower has at LEAST which of the following periods to reinstate the loan? |
|
Definition
|
|
Term
| Finance: When foreclosing under a deed of trust, the trustee must do all of the following |
|
Definition
| post a notice on the door of the property, advertise in a newspaper of general circulation, & notify all interested parties by registered or certified mail. |
|
|
Term
| Finance: Profits secured through the refinancing process are |
|
Definition
| not taxable until the property is sold. |
|
|
Term
| Finance: When a builder, financier, and manager enter into a partnership to construct and own an office building, it is called |
|
Definition
|
|
Term
| Finance: Realized capital gain |
|
Definition
| is the difference between the total consideration received and the adjusted book basis of the property transferred. |
|
|
Term
| Finance: A seller-tenant in a sale-leaseback-buyback arrangement benefits from all of the following |
|
Definition
| immediate cash receipts, continued possession of the property, & tax-deductible rent. |
|
|
Term
| Finance: When a buyer refinances a seller's property using the proceeds from the new loan to satisfy the balance of the existing loan and to make the down payment, this buyer is |
|
Definition
| trading on the seller's equity. |
|
|
Term
| Finance: When a lender buys a project from a developer and then immediately sells it back on a contract that runs for 10 years longer than the financing term, the money paid over this extra time is called |
|
Definition
|
|
Term
| Finance: Building an estate by refinancing and purchasing additional properties is called |
|
Definition
|
|
Term
| Finance: Equity participation includes all of the following techniques |
|
Definition
| sale-buyback, split-fee financing, & joint ventures. |
|
|
Term
| Finance: Recognized capital gain is |
|
Definition
| the portion of the realized gain that is subject to income tax in the year received. |
|
|
Term
| Finance: When property is refinanced, any profit received from the proceeds of the new loan is |
|
Definition
| not considered realized and is not subject to income tax until the property is sold. |
|
|
Term
| Quiz CH1: Disintermediation occurs when |
|
Definition
| The money market certificate was created to offer short-term flexible interest rates; however, major money market investors countered by developing high-yield securities with any restrictions, minimum balances, or withdrawal penalties. The result was a serious outflow of funds, disintermediation, from the nation's savings associations. |
|
|
Term
| Quiz CH1: A fundamental aspect of real estate finance is the ability of borrowers to remain in possession and control of their property. This is defined as |
|
Definition
| The ability to remain control of the property while borrowing against it is called "hypothecation". |
|
|
Term
| Quiz CH1: The Secure and Fair Enforcement for Mortgage Licensing Act of 2008(SAFE Act) was designed to |
|
Definition
| minimize the potential for fraudulent lending activities. |
|
|
Term
| Quiz CH1: Real estate finance is basically a manifestation for our |
|
Definition
|
|
Term
| Quiz CH1: One way to increase a property's value without adding any physical improvement is to |
|
Definition
|
|
Term
| Quiz CH1: The demographics of a real estate cycle would probably include all of the following |
|
Definition
| ages, location, & family structure. NOT religion. |
|
|
Term
| Quiz CH1: Lenders having a cash surplus in a low demand area would most likely |
|
Definition
| Slow-growth, low-demand are lenders could invest their surplus funds by purchasing mortgages from these agencies. (purchase loans in the secondary market.) |
|
|
Term
| Quiz CH1: Reliance on borrowed capital more than on equity funds would be known as the use of |
|
Definition
|
|
Term
| Quiz CH1: The real estate cycle begins anew when |
|
Definition
|
|
Term
| Quiz CH1: The fact that a 1,500 square foot house sells for $300,000 in Los Angeles, $85,000 in Fresno, and $45,000 in El Centro is based on the property's fixity and its being subject to the economies of which of the following markets? |
|
Definition
|
|
Term
| Quiz CH2: The California Bureau of Real Estate |
|
Definition
- investigates complaints against
-licensees
enforces provisions of the real estate law to achieve maximum protection for purchasers of real estate property and persons dealing with real estate licensee
- regulates subdivisions, nonexempt franchises, and real property securities
- screens and qualifies applicants for license
- requires endorsements by the Bureau of mortgage loan originators
- investigates nonlicensees allegedly doing business for which a real estate license is required |
|
|
Term
| Quiz CH2: All of the following statements about the FDIC are true |
|
Definition
| insures depositors accounts, controls the Deposit Insurance Fund, and may merge failed institutions with other institutions. |
|
|
Term
| Quiz CH2: When the Federal Reserve raises its members' reserve requirements, it is acting to |
|
Definition
| decrease financial activities. |
|
|
Term
| Quiz CH2: Deposits in banks and thrifts are insured by the |
|
Definition
|
|
Term
| Quiz CH2: The Federal Home Bank System |
|
Definition
| provides its members with a national market for their securities. |
|
|
Term
| Quiz CH2: Which agency is responsible for handling the assets of failed savings institutions? |
|
Definition
| Federal Deposit Insurance Corporation. |
|
|
Term
| Quiz CH2: From an economic theory point of view, money can be described as a |
|
Definition
|
|
Term
| Quiz CH2: The Federal Reserve is currently responsible for all of the following operations |
|
Definition
| maintaining sound credit conditions, stabilizing values, and counteracting inflationary and deflationary movements. |
|
|
Term
| Quiz CH2: Economic stability is linked the supply of costs and money. Thus, all of the following statements are correct |
|
Definition
| The larger the supply of money available, the greater the economic activity. |
|
|
Term
| Quiz CH2: The Federal Reserve is |
|
Definition
| a central banking system. |
|
|
Term
| Quiz CH3: Commercial banks tend to make loans for |
|
Definition
|
|
Term
| Quiz CH3: Life insurance companies become partners with project developers through the use of commercial loans called |
|
Definition
|
|
Term
| Quiz CH3: All of the sources of funds for real estate finance are considered financial intermediaries |
|
Definition
|
|
Term
| Quiz CH3: State-chartered savings and loan associations regulated by the California Department of Savings and Loans are authorized to lend up to what percent of the appraised value of the collateral for a real estate mortgage loan? |
|
Definition
|
|
Term
| Quiz CH3: Which institutional lender has the most flexibility mortgage lending activities? |
|
Definition
|
|
Term
| Quiz CH3: The department in a commercial bank that manages relatively large quantities of money and property for their beneficiaries is the |
|
Definition
|
|
Term
| Quiz CH3: Which of the following institutional lenders is increasing its participation in real estate finance? |
|
Definition
|
|
Term
| Quiz CH3: The pension funds tend to invent in which of following types of real estate investments? |
|
Definition
|
|
Term
| Quiz CH3: Savings institutions major providers of home mortgage loans, are also referred to as |
|
Definition
|
|
Term
| Quiz CH3: Which of the following statements is true regarding life insurance companies? |
|
Definition
|
|
