RE#4
The largest area would be
10% of a township
Lien
A lien is an encumbrance on one person's property to secure a debt the property owner owes to another person
Which of the following deeds would contain a granting clause, but carry no warranties, expressed or implied?
A quitclaim deed
Which term does not belong with the others?
A. Convey B. Transfer C. Devise D. Assign Answer is Devise
Who will establish the real property tax rate?
Board of Supervisors
Smith owns a single family residence in which he resides. He trades with Brown for another residence, which Brown is renting to a tenant. Both parties intend to use their newly acquired properties for rental income. Which of the following is true?
Brown can negotiate a tax fee exchange
The provision that states the realtor shall not publicly disparage the business practice of a competitor appears in the
NAR Code of Ethics
The form of real estate syndicate that requires 100 or more investors is a
Real Estate Investment Trust (REIT)
The fact that no two parcels of land are exactly alike is one of the basis for courts of law to enforce
Specific Performance
Two couples bough properties and had financed the same loan balances. If one couple had used a conventional loan and the other had received a loan guaranteed under the G.I. Bill, which of the following would be true?
VA had a lower monthly payment
Which of the following is used in determining the net income of a property using Capitalization Approach of appraisal?
Vacancy allowance
Growing crops would be placed as security for a loan using which one of the following documents?
a security agreement
While appraising a home, an appraiser observes cracks in the foundation and notices that the doors and windows do not close properly. The appraiser would probably recommend which of the following?
a soil engineers report
Sales to the public of tax deeded property are made at public auction by the county tax collector
after the notice of publication and that mailing of a copy to the delinquent taxpayer
Every sale contract relating to the purchase of real property in a common interest subdivision or a new subdivision in an unincorporated county area shall clearly set forth
all outstanding encumbrances
Liquidation of an obligation means
amortization
Which of the following contracts must be in writing to be enforceable?
an agreement by a buyer to assume an existing loan secured by a deed of trust
When a lender accepts a deed in lieu of foreclosure, the lender
assumes junior loan
The value of property purchased for investment purposed is usually
based on the capitalization of future net income
A contract between the seller of real property and a licensee in which the seller agrees to pay the licensee a commission if he produces a ready, willing and able buyer and the licensee agrees to use due diligence in procuring the buyer is called a
bilateral executory contract
The county tax rate is set annually by the
board of supervisors
An institutional lender would be the least interested in which of the following?
borrowers desire for the property
Upon seeking housing accommodations, a person who found himself discriminated against may under Title VIII of the Civil Rights Act
bring an action in either federal or state court
If a buyer withdraws his offer to purchase real property prior to acceptance by the seller, the
buyer is entitled to a refund of the earnest money deposit
Megalopolis is an important new term that has been added to the vocabulary of persons working in real estate. The term involved the formation of
cities
Interest calculated on the total sum of the principal and the simple interest accrued thereon is called
compound interest
Interest paid on top of interest is
compound interest
The five requisites for a land contract are
consideration, legality, offer/acceptance, capacity of the parties, and writing
Recording a judgement gives what type of notice?
constructive notice
A restriction in a deed would be enforced by a
court injunction
A blanket encumbrance is one that
covers more than one lot or parcel
The uniform commercial code division 6, which pertains to bulk sale transfer of business goods, exists primarily for the protection of
creditors
An attorney-in-fact with general powers can do all of the following except
deal in real estate without recording his power of attorney
Which of the following would be an advantage in the ownership of income producing property?
deduction of depreciation, deduction of interest, and capital gains treatment
The words "time is of the essence" would most likely be found in a
deposit receipt
The unit of comparison when using the market data approach of appraisal on a single family residence is the
entire property
Community apartment projects and condominiums come within the subdivision provisions of the California real estate law when they contain how many units?
five or more
The sheet metal that is used to protect a building from water seepage is called
flashing
No subdivision lots in an unincorporated area of California county can be legally sold or leased prior to
furnishing a copy of the commissioner's final public report to the customer, giving the customer a chance to read it, and obtaining the signature of the customer for a copy of the report
When a transaction takes place for the sale of a business, on which of the following would a sales tax be charged?
furniture and or fixtures
Highest and best use most nearly means
greatest net return
In a typical percentage lease, rent is calculated as a percentage of
gross sales of the lesee's business
If a broker has a nonexclusive listing and he wants to be legally entitled to a commission, he must be able to prove that
he was a duly licensed broker at the time of transaction, he found a buyer who was ready, willing and able to buy, and he was the procuring cause of the sale
An appraisers first step in estimating value on a piece of vacant land is to assess
highest and best use
In order to hold real property as tenants in common, individuals must
hold undivided interests
Under normal competitive conditions, the vacancy rate of an apartment building is the result of
housing supply and demand in the area
A land developer offers a prize to anyone who replies to his direct mail advertisement and visits his subdivision site. Prior to awarding the prize however, the developer requires the party to attend a sales presentation at the site. The sales presentation requirement was not mentioned anywhere in the advertisement. This type of promotion is
illegal because it did not disclose the sales representation attendance requirement
The comparison method of appraising would be least reliable
in an inactive market
Regarding parks, playgrounds, and public buildings owned by the city, title is held
in severalty
The lending institution that is permitted by law to offer the longest pay off period on a conventional loan is the
insurance company
A homeowner can deduct a portion of which of the following as an expense for income tax purposes?
interest on the home laon
In which of the following situations would the attorney general of California become involved?
investigation into fraudulent real estate subdivisions, legality of licensing procedures, and a broker whose license has been suspended brings court action against the real estate commissioner to overturn the decision
A post dated check
is the equivalent of a promissory note and cannot justifiably be accepted by a real estate broker as a deposit unless there is full disclosure to the seller
Conveyance
is the transfer of legal title of property from one person to another, or the granting of an encumbrance
A beneficiary statement is often required in the closing of an escrow in the sale of real property. This is a statement
issued by a lender indicating the balance due on a loan
If prices rise 20%, what happens to the purchasing power of the dollar?
it has gone down 16 2/3%
Which of the following forms of ownership always consists of an undivided interest with the rights of survivorship?
joint tenancy
A beneficiary statement is issued by the
lender to the borrower to identify current status of a loan
The personal, revocable and unassignable permission or authority to do one or more acts on the land of another without possessing any interest therein is a definition of a
license
Regarding a Trust Deed and Note the
lien of the trust deed is incidental to the debt
Which of the following least affects the use of land?
liens
A cost that is most likely overlooked when the owner of a commercial property lists it for the purpose of sale is
management costs
An easement differs from a license in that a license
may be revoked
A significant difference between Mechanics liens and Judgement liens is that
mechanics liens may take priority earlier than the date they are recorded
Because life insurance companies are not willing to deal directly with the mortgagors and trustors, they usually pay a loan servicing and preparation fee and make real estate mortgage loans to purchase indirectly through
mortgage companies
Which of the following would not be classified as an institutional lender?
mortgage company
In FHA financing as opposed to conventional financing, the lenders main benefit is the
mortgage insurance
After signing a valid agreement for sale, a buyer asks the broker for permission to move into the property before the sale closes. The broker should
obtain written consent from the seller
Economic life of an improvement depends on
owners repair policy, use of the improvement, and condition and age of the improvement
Mortgages and other lien instruments are considered
personal property exclusively
Regarding the California Land Title Association Policy of Title Insurance: which of the following would indicate the advantage of having an extended coverage as opposed to standard coverage?
physical aspects
Common ownership of a recreation area and individual ownership of individual lots is a
planned development project
When issuing their closing statement, escrow would debit the seller of income property for which of the following items?
prepaid rent
Which of the following items would likely appear as credit on the sellers closing statement?
prepaid taxes
Space available to meet public demand expands and contracts when stimulated primarily by the fluctuation of
prices and rents
Which of the following normally deals directly with borrowers, underwrites loans, arranges for real property appraisals, and services loans by receiving and crediting monthly payments?
primary mortgage lenders
Most of the junior loans that are secured by real property are secured through
private investors
Most junior loans negotiated are secured from
private lenders
The primary justification for zoning ordinances is that a municipality
promote the general health, safety, and welfare of the community
Mrs. Adams dies intestate and apparently has no heirs. She has substantial property holdings in California, therefore the
property would escheat to the State of California if no heirs should claim the property within 5 days
According to the Bulk Sales Law, when buying a business one must
publish the notification of sale
A prudent investor, to hedge against the erosion of capital caused by inflation would logically place funds in
real property
It is property business practice for real property managers to be compensated in all of the following ways except by a
receipt of discounts on purchase of supplies
Which of the following types of lenders would have the greatest percentage of and the most funds invested in real estate mortgages?
savings and loan associations
The responsibility of an agent to his principal is to
show them the correct fiduciary responsibilities and keep them up to date on all things that you are doing for him
Which of the following is not real property?
stock in a real estate corporation
The basis of the market data approach to appraising is found in the principle of
substitution
Your clients petition for a variance has been turned down the the planning commission. You should advise him to appeal to
the City Council (if in a city) or the Board of Supervisors (if in unincorporated areas)
Walter's after signing a contract to purchase real property, but before being notified of the sellers acceptance of the offer, dies of a heart attack. Which of the following is true?
the death of Walters worked a revocation of the offer
Which of the following can be insured by a title insurance company?
the validity of an easement, loss due to an desirable clause in private restrictions, and validity of tenants lease interest free from liens and encumbrances
Warranty Deeds are common in other parts of the country, but rarely used in California because
title insurance, with its recourse against the title company has largely supplanted the warranty deed with its recourse against the grantor
An example of a device hypothecating real property as security is the
trust deed
The level of mortgage interest rates is directly affected by all of the following except
unemployment rate
According to the provisions of both federal and state civil rights legislation, discrimination due to race, color, creed or national origin in housing is
unenforceable, unlawful, illegal
If a spouse leases the residence owned by the husband and wife as community property for one year without the consent of the spouse, the contract is
valid and enforceable
In regard to land value units, as the depth a lot increases beyond the typical lot depth, the
value per front foot increases
An offer made by the buyer was accepted by the seller. Prior to the broker advising the buyer that the offer had been accepted, the buyer died. The contract would be
void
Some leases contain a covenant or condition against assignment without consent of the lessor. In such a case, if the lessee makes an assignment unknown to the lessor, the assignment is considered
voidable
A lender referring to a Seasoned Loan would be talking about a loan
with a previous pattern of prompt payments
Katz made a full payment on a note secured by a deed of trust on his property, and he demanded that the beneficiary clear the records. The beneficiary must move for a reconveyance
within 30 days