Real Estate Test Overview

license

A______ is permission to do something on another's land without actually possessing any interest or ownership in the land.

roll the funding fee into the loan

Because of the funding fee required for a VA loan, a borrower with no down payment funds saved should ______.

Cam is a dual agent to both the buyer and seller.

Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller?

Datums and benchmarks are used for ______.

Datums and benchmarks are used for ______.

Restrictive covenants

Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______.

bilateral

Ezra's lease on his condo includes an option to purchase. He told his landlord, Sherm, that he's ready to purchase the condo, and they've negotiated a purchase price and closing date. What kind of contract is this?

Real property because of the method of annexation

Homeowner Shaun loves DIY projects and decided to build some bookshelves for his home office. He bolted the shelves to the wall and installed trim around them so they became an integral part of the room. When he sells his home, the bookshelves will be considered ______.

Get conventional financing

How might a borrower avoid paying the mortgage insurance premium required by an FHA loan?

Chattel interest

In California, an estate at will is known as ______.

Chattel real

In California, an estate for years is known as ______.

It's generally much easier for a lender to foreclose on a property.

In a title theory state, which of the following is a true statement?

Zero years (personal residences cannot be depreciated)

Jennifer is the owner of the single-family residence in which she resides. How long can she take to depreciate her property?

No, trustees selling properties under a deed of trust are exempt from licensure.

June has worked with buyers and sellers for years. When homeowners default on their mortgage, June acts as trustee for the deed of trust. Under the deed of trust, June has the authority to sell the property. Does June have a real estate license?

Disposition

LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya's sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property?

10 years

Licensee Audrey was convicted of an antitrust violation. What is the maximum prison sentence she can serve?

The agency agreement only terminates if the broker or the principal declares bankruptcy.

Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of the following statements about this situation is true?

Metes and Bounds

Point of beginning is common with metes and bounds descriptions.

lot and block

References to plats and plat maps are used in the ______ survey system.

Yes, but only if his taxes remain unpaid for five years.

San Diego homeowner Carl hasn't paid his property taxes for three years in a row. The county has a tax lien attached to his property. Can the county foreclose on Carl?

A wrap-around mortgage

Seller Jerome found financing that would include his current mortgage inside the buyer's mortgage. What type of mortgage is this?

Incentive zoning

The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this?

The sale of debt securities and international money markets

The Farm Credit System funds are acquired from ______.

U.S. Department of Housing and Urban Development

The Federal Housing Administration is part of the ______.

Alienation

The ______ clause is also known as a due-on-sale clause.

Funding fee

The amount of the ______ a veteran must pay depends on factors such as military status, down payment amount, and whether the veteran's entitlement is being used for the first time or a subsequent time.

Basis

The sales price, acquisition costs, and capital improvement costs (such as renovations or additions) of a property combine to make up what?

Rate, index, and margin

What factors directly affect an adjustable rate mortgage?

Fee simple absolute

What form of ownership is inheritable and includes the entire bundle of rights, not subject to any conditions or qualifications?

An income tax lien is a general lien and a property tax lien is a specific lien.

What makes an income tax lien different from a property tax lien?

late charge

What type of provision is standard with either the mortgage or the deed of trust, but is included in the promissory note rather than the security instrument?

agent

What's the term for someone who's been given the authority to act on behalf of someone else?

The trustee executes and records a deed of reconveyance and the lender returns the note to the borrower.

When a borrower has paid off the loan, how is the release handled if the security instrument is a deed of trust?

The trustee holds the deed, and the lender holds the note.

When a deed of trust is used as a security instrument, who holds the deed and the note?

Unruh Act

Which act provides similar protections for consumers of business services and products as those provided by the California Fair Employment and Housing Act?

FHA

Which entity insures government loans?

A legal notice that a lawsuit is pending that affects the title of a property

Which of the following defines the term 'lis pendens'?

Paying off a loan over time

Which of the following describes amortization?

They sell packaged loans to investors.

Which of the following statements is true about national lending intuitions?

Non-exclusive, not for compensation buyer representation agreement

Which of these real estate contracts would not include a section on broker compensation?

Easement, lien, deed restriction

Which one of the following options provides three valid examples of a private land use control?

Created by law and gives right of possession

Which option best defines a statutory lien?

Specific and involuntary

Which option describes a real property tax lien?

seller

With a land contract, who retains the title to the property?

interest

With a straight mortgage, what type of payments are made up until the end of the loan term?

easement

allows a person the right to use or cross over another's property for a specific reason.

net operating/market value

cap rate formula

Easement in Gross

granted to a specific individual or company

Easement by prescription

long-term use of another's property without actual permission.

net operating income/cap rate

value