Real Estate Final 2.0

What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments?

90 days after filing the lien; Three years

Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan due date is approaching and she will owe a lump sum of $11,257 to pay off her mortgage loan. Which type of promissory note has Caroline NOT been paying?

A fully amortized loan

Which is not a form of syndication?

An Equity Trust. The ones that are a form of syndication are: The Corporate Form, The General Partnership and the Limited Liability.

What are the types of legal life estates?

Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against unsecured debts for the party who did not sign for the loan.

Judy is the listing agent for the Brandts' home. In the inspection of their home, she discovers a few issues of concern. The basement is very damp and smells of mildew. Judy noticed what appeared to be mold on the interior walls of the lower level. She also saw what she believed to be their main line overflowing in the utility area of the basement. State the case that is responsible for broker's conducting a diligent inspection of properties they are listing or selling.

Easton v. Strassburger

Mr. Manning has owned a restaurant for forty years. He is in the process of selling his business to a group of investors who plan on revamping the restaurant and turning it into a destination. In the negotiation of the sale, Mr. Manning has stipulated he is willing to accept their offer on two conditions: There may never be any alcohol served on the property and there can never be dancing of any kind. Mr. Manning is insistent on these conditions due to his religious beliefs. If either of these activities ever takes place, Mr. Manning would have the right to take back the property. Which type of estate applies?

Fee Simple Defeasible

Georgina sat for the examination about two weeks ago. She believes she passed with flying colors and checks her mail immediately upon arrival home for her results. Today, they arrived and, as she opened the envelope, she saw her test score. Did Georgina pass or fail?

Georgina failed the exam. The exam is qualifying by nature and if you pass, you pass; your score is irrelevant and is not revealed.

When is a real estate licensee considered a creditor?

If the licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy.

What is the difference between Southern California and Northern California in reference to escrow accounts?

In Southern California, the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow. In Northern California, the instructions are usually not signed until one or two days before the close of escrow. Also in SoCal escrow services are usually performed by independent escrow companies or financial institutions. In Northern California, the escrow services are usually performed by title insurance companies.

Which of the following is not an exemption to the federal fair housing laws concerning age and family status?

In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents.

Which of the following liens is both general, involuntary, and statutory? Which lien is specific, voluntary, and equitable?

Income Tax Lien; Mortgage Lien

XYZ Corporation is interested in a piece of land for development. They are selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of stock considered a form of financing?

It is actually considered a mortgage financing alternative.

Ken has just passed his licensing examination. However, he has been notified the DRE will not issue a full-term license. Ken is behind on child support payments and therefore has not complied with a court order to provide these payments. Will Ken ever be able to obtain his license?

Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150-day temporary period.

What are the four elements required for a valid contract?

Legally Competent Parties; Offer and Acceptance; Consideration; and Legality of Object

Christina is planning on getting married in the next year. She is a very successful business owner and is planning on buying some vacation property on the coast. She asks her agent, Martina, for advice on how she should take title to this new property. Should she hold the title alone, or jointly with her fiance? How should Martina advise?

Martina should discuss with Christina what she knows in reference to how title can be vested but give no advice except to consult an attorney for advice.

Agent Sims needs one more new home sale this month to receive a bonus. She has one more that could possibly close and help her meet the goal. However, today she was informed the financing fell through for the buyer. Agent Sims has a lender friend that owes her a favor. She calls the lender, offers the friend one-quarter of her bonus if he will finance the buyers who were turned down. Which penal code section addresses this crime?

PC 639-639a

The Statute of Limitations is:

Prevents action from being taken against an individual after a prescribed period of time

What is not considered "trust funds"?

Real Estate Commissions, General Operating Funds, Rents and Deposits from Broker-Owned Real Estate

Broker Burns is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen-year loan. What is the maximum commission for Broker Burns?

Ten percent of the principal of the loan.

Along a non-navigable stream, does an owner own the land, the water, both, neither? What is this right?

The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right.

When an owner dies without a will or heirs, what happens to the property and why?

The property is transferred to the state. Property cannot be without an owner.

Due to the subdividing of lots on the lake, Jim's property is surrounded on three sides by Louise's property. The only other boundary is the lake. Jim can only get to his home by driving up Andrea's driveway and behind her lake home to get to his own. How was the easement in this situation created?

Necessity

Which of the following is not a prohibited escrow-related activity?

They may not permit, under any condition, any person to make any addition, deletion, or alteration of an escrow instruction.

John and Thom are purchasing their dream home. Due to the expiration of escrow instructions, the escrow has been terminated. Have they lost the contract on the house of their dreams?

No, the termination of an escrow does not terminate the associated contract.

An undeveloped acre of land sits in the middle of a secluded rural community. How many separate owners could this acre have?

Three owners: One could own the subsurface rights, one the surface rights, and another the air rights.

Vesting is not a fourfold unity.

Time, Title, and Possession are

Ensuring consumers are fully informed of all finance changes and aware of the true annual interest rate are requirements of which regulation?

Truth in Lending

Tracy and Darnell are buying a home. They have a 15% down payment and have qualified for a thirty year fixed conventional rate mortgage. Will Tracy and Darnell have to pay PMI?

Yes, private mortgage insurance is required for all loans with less than 20% down payment.

Elliot has misrepresented himself by acting in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation?

A Misdemeanor

Which of the following statements concerning real and personal property is true?

A trade fixture is personal property and can be removed by the tenant any time before the end of the lease term; Annexation changes personal property to real property; severance changes real property to personal property.

Appraiser Jones appraises one-to-four unit residential properties, and non-residential properties with a transaction value up to $250,000. What is this appraiser's level? How many hours of appraiser education were completed?

He is a Certified Residential Real Estate Appraiser, 200 hrs.

When can a violation that hasn't happened yet be a violation?

If the Commissioner believes that a person has or is about to commit a violation of law, order, license, permit, etc., the Commissioner has the authority to bring action against the person. Also the Commissioner can command in the name of the people of the State of California in the Superior court of the State of California, that the individual not continue with the violation or not move to commit the violation.

Dan has recently been transferred to San Diego, and only has a month to find a home, sell his condo, pack, move, close, and get to work. His agent shows him the Walsh home and it's perfect. He offers the asking price, along with all the kitchen appliances and window treatments to remain with the property. The Walsh's accept his offer exactly as it is written. Which contract term applies to this situation?

Mirror Image

Which of the following listing agreements is illegal in most states?

Net Listing

Deanna is buying one of Kay's fur coats and several handbags. They are old friends and sometimes purchase each other's items instead of selling to a consignment shop. Deanna agrees to pay Kay $650.00 for the items, writes a check, and collects her purchased items. Is this transaction legitimate?

No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.00.

The Brights are buying a home from the Stones. They are splitting the escrow service fees 50-50. Do they live in Northern or Southern California? How does the other region usually handle the escrow service fees?

They live in Southern California. In Northern California the buyer usually pays the escrow service fees.

Ben and Amanda are interested in a vacant, undeveloped lot. They are going to continue to live in their current home, pay off the lot's loan, and then build a new home on the lot. Before closing on the purchase of the lot, they discover the zoning regulations permit nightclubs to be built in the immediate area. They specifically asked the broker about this issue and were told there was no reason to worry. What are Ben and Amanda's options, if any?

They may rescind the transaction based on the misrepresentation of the broker.

Agent Simpson tells residents of a neighborhood that minorities are moving into the neighborhood, and property values are sure to plummet. Simpson goes on to say, "resale values will suffer, the neighborhood will deteriorate, and if they don't sell their homes now, they will lose money." What form of illegal discrimination is Agent Simpson practicing?

Blockbusting

Which act is known as the original fair housing statute?

Civil Rights Act of 1866

Kim, Chris, and Beth are all partners in a cosmetics firm. Kim is leaving the partnership and wants to sell her shares of the business, including the property owned by the partnership, to Chris and Beth. The three partners own the property with the right of survivorship should one or more of them die. The remaining partners are not interested in buying Kim's interests. Kim has been unable to find a buyer for her share of the partnership. She has now resorted to asking the court to either sell her shares or sell the entire property. What form of concurrent ownership applies?

Joint tenancy

Patrice and Cornell are completing a sales contract with Mary, their agent. The sales contract used at Mary's brokerage is preprinted. Mary, as a senior agent, has the authority to waive one of the brokerage's fees. The fee is explained and preprinted on the contract. Mary simply crosses it out, writes "waived," and both parties initial. Which overrules the other? The preprinted or handwritten portions of the contract?

Handwritten portions of real estate contracts always supersede preprinted forms.

Molly, a successful real estate salesperson, took some time off to stay at home with her first child. Days turned into weeks, weeks into months, months into years, until Molly's child was starting school. She decided she needed to head back to her profession and pick up where she left off. During her at-home time, Molly hadn't kept up with any CE requirements, nor had she renewed her license after its expiration almost three years earlier. Can Molly simply pick up where she left off?

No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.

In studying for her real estate license, Elise is reading about police power. She is confused and doesn't understand why law enforcement would have any role in real estate sales, transactions, and regulations. What does the term "police power" refer to in real estate?

The constitutional right of the government to regulate private activity to promote the general safety, health, and welfare of society

Which of the following conditions does not apply in converting a mobile home into real property?

The homeowner is required to have a tag guaranteeing the mobile home's proper construction