Real Estate Principles - Final

House A sold for $867,000 and is comparable to the house being appraised, but it has an extra garage valued at $47,000. What is the adjusted value of house A?

$820,000

A preliminary title report will

(Describe the owner of record, List all recorded encumbrances upon the property, Indicate any outstanding bonds and assessments) All of the above

When an escrow does not close, the, escrow holder is permitted to release a buyer's deposit upon which of the following events?

(The matter is settled in arbitration, A judgement is rendered regarding the dispute, The parties agree) Any of the listed could allow for the release of a buyers deposit being held in escrow

RESPA regulates loans for which of the following?

1-4 unit family dwellings

Every building with ___ or more dwelling united must have a resident apartment manager

16

How long after the tenant has vacated the premises, must the landlord mail the tenant the full amount of the security deposit?

21 Days

If the tenant has not paid the required rent, the lessor must first give?

3 day notice to pay or quit

The maximum amount of a security deposit for a furnished residential property is

3 month's rent

Which of the following amounts represents the down-payment required on an FHA insured loan

3.5%

In a commercial lease, the landlord has ___ days to return security deposit.

30 days

What is the redemption period for non-payment of property taxes?

5 Years

When terminating a lease, a residential tenancy requires a _______ if the tenant has resided in the dwelling for one year or more.

60 day notice

By law, property located in a city or town cannot have a lease term longer than?

99 years

Escrow officers usually base their proration on

A 30-day month

To create an escrow, there must be

A binding contract

A loan that meets Fannie Mae's underwriting criteria and dollar amount is known as?

A conforming loan

Title insurance is paid for with what degree of frequency

A one-time fee

The landlord has the right to enter the premises if necessary, only in the following.

ALL OF THE ABOVE(Below) (A. An emergency B. Pursuant to a court order C. When the tenant has abandoned the premises.)

Taxes charged in direct relation to property values are

Ad valorem taxes

When must a lease agreement be in writing?

All the time

The payment of a loan in equal installments that include both interest and principal reduction is referred as:

Amortized Loan

A clause in a loan that allows the lender to call the balance due in the event of default is known as

An acceleration clause

What does the escrow officer file when the buyer and seller are unable to resolve a dispute which stops the closing of escrow?

An interpleader action

The second property tax installment is delinquent after

April 10

A taxpayer who disagrees with the assessor's opinion of value may appeal that decision by filling an appeal with the

Assessor's appeals office

In a Deed of Trust, the lender is the

Beneficiary

Escrow instructions that are given jointly by both the buyer and the seller are known as?

Bilateral escrow instructions

How many days must the landlord store any tenant's personal possessions left behind

Both A and B are correct (A. 15 days from the date notice is personally delivered B. 18 days after mailing)

A homeowner may generally deduct which of the following from their federal tax return

Both mortgage interest and property tax payments

A benefit or benefits associated with investing in real estate include

Both the use of leverage and a forced savings plan

Lender's title insurance policy is typically paid by the

Buyer

RESPA requirements do not apply to

CV, Commercial loans

Interest rate on Cal-Vet loans

Change Annually

What is the form that integrates and replaces the existing Settlement Statement (HUD -

Closing disclosure

An improvement to a house may or may not create corresponding increase in the house's market value, this is an example of.

Contribution

The person responsible for determining assessed values is the

County assessor

The security instruments of choice in California is the

Deed of trust

The rate at which the member banks borrow money from the Federal Reserve is known as the

Discount rate

An escrow agent would not be permitted to

Do any of the listed

From a property tax perspective, which would likely trigger a reassessment of a given parcel of real estate?

Either an addition or a change in ownership

Which of the following could not be an escrow holder?

Escrow Partnership

The purpose of the property tax assessed value is to

Establish the base value

A type of leasehold that is created by landlord and tenant for a particular period of time is

Estate for years

The process by which a tenant can be removed from the leased premises is called

Eviction

The federal agency that insures savings accounts is the

FDIC

Which of the following is FALSE with regard to FHA and VA loans?

FHA and VA loans are obtained directly from FHA and VA. (Answer=FALSE)

Which of the following statements are true regarding FHA and conventional loan types?

FHA-INSURED loans do not have a prepayment penalty

Prohibits housing discrimination based on marital status as well as race, color, religion, sex, sexual orientation, national origin, ancestry, familial status, disability, medical condition, or source of income.

Fair Employment and housing Act (FEHA)

The purpose of the secondary mortgage market is to

Free up capital in order to make new loans

A single family residence with a one-car garage maybe an example of

Functional obsolescence

Commercial lease in which the tenant pays a fixed amount for the rent over the lease term

Gross lease

Ed Wilson owns a vacant lot and employs an appraiser to determine the property's

Highest and best use

Pledging some asset as collateral to be used in connection with a loan is known as:

Hypothecation

Houses adjacent to a new highway will probably suffer from

Incurable external obsolescence

For a valid escrow, you need a binding agreement and conditional delivery of the

Instruments of transfer

A real estate broker can handle an escrow when the broker

Is the agent or a party to the transaction

A one-time payment paid to FHA at the close of escrow is known as the FHA mortgage insurance premium. Which of the following is true regarding this premium?

It is not considered part of the borrowers down payment.

When a lender makes a loan to two or more borrowers, the lender would be well advised to include which of the following clauses in the promissory note?

Joint and Several Liability clause

In the event the mortgagor's default before final payment, the mortgagee's remedy is?

Judicial Foreclosure

The property tax calendar runs from

July 1 - June 30

Which of the following documents is used with a Cal-Vet loan?

Land Contract

An installment sales contract is also called a sales contract or

Land contract

In a Lease, the Lessor is the

Landlord

A ________ is a contract that conveys an interest in real property from a person to another

Lease

What form integrates and replaces the existing Good Faith Estimate (GFE) and the initial truth-in-lending disclosure?

Loan Estimate

An ARM is a

Mortgage in which the interest rate charges periodically based on an index

A one-time payment to FHA at closing is the

Mortgage insurance premium

In a mortgage, the lender is the?

Mortgagee

If an escrow holder receives conflicting instructions from a buyer and seller they should:

NONE OF THE ABOVE

What is the redemption period following a trustee's sale?

No redemption period

The first property tax installment of the tax year is due on?

November 1

Title insurance is paid as of the day

Of closing

The type of loan that allows a borrower to borrow additional funds without rewriting the loan is known as:

Open end loan

With title insurance, the buyer always receives a/an?

Preliminary report

A house that benefits from the desirability of its neighboring properties is an example of the principle of

Progression

This is the borrower's promise to pay the amount borrowed

Promissory note

Real Estate loans in California generally are made using two instruments, which are?

Promissory note and a security instrument

The California proposition that allows a homeowner older than 55 to transfer their property tax basis to another property within the same county is?

Proposition 60

The document issued to a trustor upon full payment of a promissory note secured by a trust deed is known as?

Reconveyance deed

Charlie Addison has a deluxe five-bedroom house in a neighborhood of modest three-bedroom houses. How the value of Charlie's house will be affected is an example of

Regression

It's imposed by ordinance of a local governing body to protect tenants from relatively high rent increases over the occupancy period of a lease

Rent control

To calculate the market value of a 19th century San Francisco Victorian style mansion using the cost approach, you probably would use

Replacement cost

The transfer of existing mortgages between investors is the

Secondary mortgage market

One of the main responsibilities of the seller is to?

Sign escrow instructions

The escrow officer acts for both the buyer and seller as a/an

Special Agent

The buyer of property at an auction by the tax collector receives a

Tax Deed

A significant difference between a mortgage and a trust deed is?

The foreclosure process in a mortgage would give the borrower redemption rights, whereas foreclosure through a trustee's sale would not have such redemption rights.

The rate of interest indicated within a promissory note is known as

The nominal rate

In a Sublease or Sandwich lease, the primary responsibility for payment of rent remains with?

The original tenant

Of the following parties, who must disclose the existence of Mello-Roos to a prospective purchaser:

The seller

How long before the consummation of the loan the credit must provide the Closing Disclosure?

Three days

In northern California, escrows are typically held by

Title Insurance companies

Which of the following provides the best protection?

Title insurance policy

A principal residence must be occupied for ___ years of the last five years to take advantage of the maximum exclusion of profit from taxable income?

Two years

Escrow instructions that are given separately by the buyer and seller are known as:

Unilateral escrow instructions

What is the term of the legal proceeding by which the landlord also can request an order of eviction from the court?

Unlawful detainer

Which of the following would permit a borrower to borrow up to 100% of the appraisal value?

VA

of the following, which may not be depreciated?

Vacant land

The sheriff or marshal can forcibly remove a tenant by a

Writ of possession

Insurance provided by an FHA loan would be done for the benefit of

the lender