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
