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