Course 2 Quiz 13-15

According to Proposition 13, the maximum State real estate tax is .......... of the fair market value of a property?

1 (% percent)

Proposition 13 was enacted in...?

1978

Which of the following is considered an extended title policy...?

ALTA

A condensed history, or summary of all transactions affecting a particular tract of land is known as...?

Abstract of Title

The second property tax bill is due on...?

April 10th

For depreciation purposes, the value of land can be determined using which of the following methods...?

Assessed value method Appraisal method Contract method D) All of the above

A transfer of benefits and obligations within a contract to a 3rd party who is not originally a party to the contract is known as a...?

Assignment

In Southern California, escrow and title insurance are handled as...?

Bilateral Escrow Instructions

Cash received in a tax-deferred exchange is known as...?

Boot

Which of the following is considered a standard title policy...?

CLTA

The profit realized from the sale of real estate is known as a...?

Capital gain

An item that adds value to a property, adapts the property to new users, or prolongs the life of the property is known as a...?

Capital improvement

Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept, is known as...?

Clouded Title

Title that is encumbered or burdened with defects is known as...?

Clouded title

In a closing statement, an expense or money received against a credit is referred to as a...?

Debit

The first property tax bill is due on...?

December 10th

Escrow agents act as a...?

Dual agent

Which of the following may lead to the tenant being evicted...?

Estate of Sufferance

A lease less than one year must be in writing...?

FALSE

A real estate broker is not allowed to act as escrow to a real estate transaction...?

FALSE

Which of the following is a protected class under the fair housing laws...?

Familial status

A gross lease is also known as a...?

Fixed lease

A lease which provides for a varying rental rate, often based upon future determination, is known as a...?

Graduated lease

A lease in which the lessor pays all costs of operating and maintaining the property and real property taxes is known as a...?

Gross lease

The Certified Property Manager designation was developed by the...?

IREM

A tenant's right to occupy real estate during the term of the lease is known as a...

Leashold estate

Real estate taxes are calculated as a ............ of a property's full cash value...?

Percentage

A lease on property, the rental for which is determined by the amount of business done by the lessee is known as a...?

Percentage lease

An estate from year to year is also known as a...?

Periodic tenancy

Property taxes in California are reassessed as of the...?

Sale date of a property

Both parties must sign-off on any amendments to the escrow instructions...?

T (True)

What typically serves as the escrow instructions...?

The purchase contract

Evidence of the right to possess property is known as...?

Title

Insurance to protect a real property owner or lender up to a specified amount against certain types of loss is known as...?

Title insurance

An estate from year to year automatically renews...?

True

Escrow is a limited agency relationship...?

True

Real estate agents should never provide tax advice to their clients...?

True

In Northern California, escrow and title insurance are handled as...?

Unilateral Escrow Instructions

In order to qualify for the primary residence capital gains tax exemption, the owner must have lived in the house for .......... out of the previous 5 years?

2

What is the maximum security deposit a landlord can charge for an unfurnished apartment...?

2 months rent

Single owners are exempt from paying capital gains taxes on the sale of their primary residence up to...?

250,000

Married couples are exempt from paying capital gains taxes on the sale of their primary residence up to...?

500,000

Owner occupied residential properties are entitled to a ............ homeowner's tax exemption?

7000

Which of the following skills are typically required of a property manager...?

Accounting Sales Repairs and maintenance D) All of the above

The value of property used to determine the amount of gain or loss realized by an owner upon sale of the property is known as the...?

Adjusted basis

What is the main closing cost for a seller...?

Broker commissions

A property manager is responsible for which of the following...?

Collect rents Market vacancies Schedule and supervise maintenance and repairs D) All of the above

In a closing statement, money to be received, or credit given for money is referred to as a...?

Credit

The amount of decrease in value of an asset that is allowed in computing the value of the property for tax purposes is known as...?

Depreciation

Any transaction wherein one person delivers any written instruments, money, or evidence of title to real property, or other things of value to a third person, to be held by such third person until the happening of a specified event is known as...?

Escrow

The neutral third party holding funds or something of value in trust for another or others is referred to as a...?

Escrow agent

This type of leasehold estate arising when the tenant wrongfully holds over after the expiration of the term...?

Estate at sufferance

An interest in land by virtue of a contract for the possession of them for a definite and limited period of time is known as a/an...?

Estate for years

Which of the following is an example of a leasehold estate...?

Estate for years Periodic tenancy Tenancy at will D) All of the above

Which of the following is a contract between landlord and tenant, setting forth conditions upon which tenant may occupy and use the property and the term of the occupancy...?

Lease

The tenant is referred to as the...?

Lessee

The landlord is referred to as the...?

Lessor

A form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation is known as a/an...?

Lien

The buyer's closing costs include which of the following...?

Loan origination fees Title insurance policy Appraisal fees D) All of the above

A lease requiring a lessee to pay charges against the property such as taxes, insurance and maintenance costs in addition to rental payments is known as a...?

Net lease

The escrow is typically responsible for which of the following...?

Order the title report Facilitate the signing of all documents Disbursement of all funds D) All of the above

A personal residence is also known as a...?

Primary residence

A branch of the real estate business involving the marketing, operation, maintenance and day-to-day financing of rental properties is known as...?

Property management

A person who manages properties for an owner as the owner's agent, is referred to as a...?

Property manager

Which of the following allows property to be transferred between family members without being taxed on the first million dollars of market value...?

Proposition 58

This Proposition benefits citizens 55 and older...?

Proposition 60

An individual who supervises the care of an apartment complex while living in one of the units in the complex is known as a...?

Resident manager

A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes is known as...?

Section 1031 Exchange

A method of depreciation under which improvements are depreciated at a constant rate throughout the estimated useful life of the improvement is known as...?

Straight line depreciation

A homeowner can have their property reassessed...?

TRUE

A resident manager does not need to have a real estate license...?

TRUE

A tenancy at will may exist without a lease...?

TRUE

A time-share is an example of a secondary residence...?

TRUE

An escrow officer serves as a third neutral party in a transaction...?

TRUE

Boot is considered taxable income...?

TRUE

Escrow fees are typically split between the buyer and seller...?

TRUE

Landscaping is an example of a capital improvement...?

TRUE

Who typically pays for the documentary transfer tax...?

The seller

Residential property is considered to have a useful life of...?

27.5 years

Non-residential property is considered to have a useful life of...?

39 years

Which of the following is considered a low vacancy rate...?

5 percent (%) of total units

The division of certain settlement costs between a buyer and seller is known as...?

Proration

To divide the taxes equally or proportionately to time of use, usually between seller and buyer is known as...?

Proration of Taxes

Which of the following prohibits kickbacks between lenders and real estate professionals...?

RESPA

Pre-liens are not covered under a standard title policy...?

TRUE

Proposition 90 is only available in participating counties...?

TRUE

Real estate taxes are considered a tax deductible for homeowners...?

TRUE

Rent skimming is illegal in California...?

TRUE

Which of the following may be prorated between buyers and sellers at closing...?

Taxes Insurance Rents D) All of the above

This type of leasehold estate can be terminated at any time by either the tenant or the landlord...?

Tenancy at will