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Real Estate Cali

California Real Estate

QuestionAnswer
The Listing Broker can act as a Buyer's Agent Only. True or False? FALSE
The FHA (Federal Housing Administration) was created primarily to: Provide insurance for home loans made by the approved lender.
A Buyer relied upon a seller's fraudulent statement and was damaged. The seller was unaware. The buyer has the right to: Sue the seller, the seller's agent, and/or has grounds to recision.
In order to be valid, a Deed: Does not have to be recorded to Transfer Title.
The provision of the Subdivision Map Act is enforced by: Planning Commission
The encumbrance created for an unpaid construction job is: A Specific Lien
A person who occupies a Condo or Apartment rental technically has: An Estate in Real Property.
Half a Mile by Half a Mile is how many acres? 160 Acres
Brokers cannot sell their own in-house listings? TRUE
If 2 people owned property as Joint Tenants and 1 party encumbered his interest for 10k to pay medical bills, then shortly died, would the living party own the entire property free and clear of all encumbrances? YES
A Title Company could make a title search by searching the records the County Clerk's Office, County Recorder's Office and Federal Land Office? TRUE
A Voidable Contract remains binding upon the parties until the contract is recinded. TRUE
If a roof slopes on all 4 sides it's called a Hip Roof. TRUE
Interest rates on trust deed loans are primarily determined by: Demand for Supply of Money.
Property depreciation because the City widens a street is called: Economic Obsolescence
Promissory Notes are acceptable as deposits if: The Broker notifies the Seller and the Seller accepts.
When an owner refuses to pay a Broker an earned commission, the Broker may properly seek relief by: Court Action
A Broker can legally advertise a $50 incentive to a Buyer or Seller for listing a property through him/her? TRUE
A Joint Tenant can dispose of their interest in their real property through a Will. FALSE
A Trust Deed can have a provision that allows future loans on the property to have priority. This would be called: A Subordinate Clause
If Lee takes over "subject to" a VA loan from Wilson in the transfer of a property. Lee defaults on the loan. Who is primarily liable for the foreclosure? Wilson
When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, the loan applicant must be provided with which of the following: A Good Faith Estimate (GFE)
Property Tax Installment dates are: First installment is due November 1 and delinquent after December 10, Second installment is due on February 1 and delinquent after April 10.
A lessee rents a building from May 1 to July 1. His tenancy is considered: Estate for Years
When a deed shows the racial identity of a client, it can be re-written only by: The Court
When gross income is changed into value in one operation, which of the following describes this occurrence? Rent Multiplier
A sublease is considered to be: A transfer of less than the entire leasehold.
A single-agency broker is client oriented. TRUE
A broker receives rental income from several apartment units which he owns. He plans soon to accept an offer accompanied by a deposit to sell one of the units. Under these circumstances, he should not place rent or the sale deposit into a trust account. TRUE
Authorization to Sell generally means: The Broker is authorized to find a buyer for the property.
A listing is the property of the Broker or the Salesperson? The Employing Broker
A Negative Declaration in an Environmental Review means: Development would have an insignificant effect on the environment and the developer will not have to pay for a full environmental report.
Exaggerating features of a property and/or neighborhood when showing the property to prospective buyers is called: Puffing
Define the Term "Single Agency": The agent represents one client in dealing with a third person
A tenant does some work in their unit and notices some asbestos. Does this tenant have legal obligation to warn the other people? NO
The Alquist-Priolo Earthquake Special Studies Act is applicable to all counties in California? TRUE
Mortgage Loan correspondents may obtain a license by: No License Needed
A Lender Under a Trust Deed is known as a Beneficiary. TRUE
When a lender in a Trust Deed taskes a deed in Lieu of Foreclosure, who is liable for the second financing? Beneficiary
When a residential neighborhood is composed mostly owner occupied residential property, it tends to: Stabilize Value
When using multiple properties as security for a loan, the mortgage would be called: A Blanket Mortgage
When a Broker is unable to resolve a conflict in a contract between buyer and seller and there is also a conflict with the deposit. The matter must be referred to a third party person via: Interpleader Action
Contingency in a contract must contain: Nature, Duration and Method of Removal
The purpose of a deed is: The evidence in change of title or an interest.
The Agent who will earn a commission is the one that: Communicated the offer and acceptance from seller to buyer.
CPI refers to: Commercial Leases
Who pays the service charge under a FHA loan? Seller
When comparing FHA and conventional loans, the Conventional Loan offers lower Loan to Value (LTV) ratios. TRUE
The right of an interest in Real Property is represented by: Quiet Title Action
Two Siblings owned a property as Joint Tenants. One dies penniless and in debt. The title to the other sibling is now free and clear. TRUE
High prices, with demand and supply lag best refers to a Seller's Market. TRUE
Can a Broker be liable for prosecution if one of his sellers is receiving referral fees from a lender they do business with? YES
Are there any Insurance Policies that cover ALL risks? NO
Bond, Deed of Trust and Notes held by a Third Party is known as: ESCROW
A Contract replaced entirely by a new one is called: Novation
A voidable contract may be voided by one of the parties. TRUE
When comparing Real Property to Personal Property, Real Property is Immovable by Law. TRUE
Standard Policy will cover against Legal Incompetence of the Grantor. TRUE
The Max Amount that may be recovered from the Recovery Trust Fund is: $100,000
A Blind Ad doesn't identify the: Broker
For a property under default, the property is held in possession by: Trustor
Earthquake Hazard Report must be issued to properties in: All Counties
A Contractor's Lien would start on which date? Commencement of the work start date.
Ordinary repairs on a property are considered: Cosmetic Maintenance
The Standard Insurance Policy checks boundary lines and property survey. FALSE
When a property is being old through an Option, the Broker must inform the client that he is acting as a: Principal
If the feeling property has an item that is not present on the comparable, the appraiser has subtract from the subject property to the subject property. TRUE
A document to transfer property from trustee to trustor is: Reconveyance Deed
When an Agent is a subagent of the selling Broker, he is working for: The Buyer
When an Appraiser appraises a commercial building for $550,000, the appraiser must have which type of license: General Appraisal License
Which appraisal report is the most complete? Narrative Report
The Pest Control Company must provide a copy of the report to the Owner. TRUE
Once and binding contract has been created between buyer and seller, it is in Equitable Title. TRUE
Selling a house to receive a commission (other than your own) without a license is punishable by whom? District Attorney
Cost Approach is used in what aged building? New Building
Eminent Domain may be exercised by Cities, Public Utilities, or Public Education. TRUE
What State Agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms? Structural Pest Control Board
The Earthquake Booklet was not necessary to be disclosed of property was built after: 1960
When an expensive home is built in a neighborhood of cheaper houses. This is called: Economic Obsolescence.
Granting a property to someone with conditions, such as a rule like "No drinking" is called: A Fee Simple Defeasable
Which sort of relationship does a salesperson NOT have with his/her client? Attorney-Client
How large is a commercial Acre? An acre after deductions of streets, sidewalks, curbs and alleys
The purpose of the assessment roll, as compiled by the assessor office is: The establishment of the tax base.
An estate at sufferance: Possession of the lease after expiration of the lease term.
Can an agent hold a post-dated deposit check? YES, if the seller agrees.
Personal property may be hard to identify because: It can be alienated, Hypothecated and become Real Property.
When rent on a business is computed on gross sales of a business it's termed a: Percentage Lease.
Warehousing activity would refer to a mortgage Broker collecting loans prior to resale. TRUE
A Monthly Interest would not be included in an impound account. TRUE
The purpose for the assessment roll is: Establishment of the Tax Base.
Valuable, Adequate and Sufficient means: Consideration
When a seller makes a counter offer, the offeree becomes the new offerer. TRUE
In a flood hazard report, the degrees of flood hazard are: Inundation, Sheet Overflow, and Ponding of Local Storm Water.
Is stock in a mutual water company Real Property? YES
Alienation expresses a meaning most completely opposite to: Acquisition
A holder of an easement that is not attached to any lands owned by the easement holder has what type of an Easement? An Easement in Gross
When a Real Estate Broker negotiates the sale of a used mobile home, it's the Broker's responsibility to give written notice of transfer to the Department of Housing and Community Development with how many days? 10 Calendar Days
The max amount a Broker's personal funds can keep in his trust account without being guilty of commingling. $200
The current use of a building to its highest and best use is called: Interim Use
In Appraisal, the method used to evaluate a shopping center is called: Cost Approach
How many Sq Ft in an Acre? 43,560
What is this defining: a surveyor's desc of a parcel of real property, using carefully measured distances, angles, and directions, which results in what is called a "legal description" of the land. Metes and Bounds
How many acres in a square mile? 640
Name this roof shape: Although flat they are generally gently pitched. Flat or Shed Roof
Name this roof shape: A simple roof design shaped like an inverted V Gable (also called: ridged, dual-pitched, peaked, saddle, pack-saddle, saddleback, span roof)
Name this roof shape: Shaped like an A- typically in snowy areas A-Frame
Name this roof shape: A gable roof with one side longer than the other, and thus closer to the ground unless the pitch on one side is altered Salt-Box
Name this roof shape: sloped in two pairs of directions (e.g. N-S and E-W) Hipped Roof
Name this roof shape: A hip roof on a square building Pyramid (Pavilion)
Name this roof shape: Looks like a Traditional Barn Gambrel
Name this roof shape: A roof with the pitch divided into a shallow slope above a steeper slope. Mansard (French)
As to Ethics, the best guideline to determine if an action is ethical will be found in which book: The Business and Profession Code
Who is in charge of constructing street's utilities and curbs? Developer
Charge for the preparation of the Uniform Settlement Act is: Nothing
Guidance Disclosure sequence is as follows: Confirmation, Election Disclosure TRUE
If a licensee fails to renew his or her license prior to its expiration date, the licensee must renew within how how long? Two Years
Recovery Fund State regulated fund used to pay purchasers of real estate who have suffered a loss due to actions or inactions of licensee.
Civil Rights Act of 1866 Prohibits discrimination against race and color in certain real estate transactions
Federal Fair Housing Act Act that prohibits discrimination against race, color, religion, national origin, gender, familial status and handicap in certain real estate transactions
Sherman Anti-Trust Act of 1890 Act which ensures fairness in the marketplace
Blind Ads Advertisements placed by a sales agent that doesn't include the employing broker's name
Salesperson One who performs real estate activities while employed by or associated with a licensed real estate broker
Designated Broker One who supervises all activities of sales agents and is liable for their actions.
Employing Broker Firm name or entity - not a person
Associate Broker A real estate broker working for a designated broker
Referring Broker Real estate broker who receives referral fee
Agent Broker or Salesperson
Loan to Value or LTV Ratio of a mortgage principal to the property appraised value or its sales price, whichever is lower
Collateral Property that is pledged as security for a debt
Equity Value over and above what is not debt
Promissory Note Unconditional promise made in writing to repay a debt
Mortgage A written instrument to secure repayment of a debt for real property
Mortgagor In a mortgage, the buyer or borrower
Mortgagee In a mortgage, the lender
Assignment When a mortgage is sold or assigned to another lender
Trustor In a deed of trust, the borrower
Trustee Impartial third party
Beneficiary Lender
Interest Charge for using another's money
Usury When a lender charges an interest rate above the legal limit
Origination Fee Fee charged by the lender for making the loan
Discount Point Fee charged by the lender for lowering the interest rate for the borrower
Assumption When a buyer assumes the current loan under the same terms and conditions of the original borrower
Conforming Loans Standardized conventional loan that meets the requirements of Fannie Mae and Freddie Mac
Non-Conforming Loans Loan that fails to meet the requirements of Fannie Mae and Freddie Mac
FHA Escape Clause Borrower must be shown the appraisal and if not may withdraw from the sale penalty free
Title The right to ownership
Estate The extent of interest a person has in real estate
Ownership Method of taking title
Leasehold An estate that lasts for a fixed period of time (rent or lease)
Freehold An estate in real property that could last an indefinite duration
Dower Interest of ownership that a wife has in the real estate of her deceased husband
Curtesy Interest of ownership that a husband has in the real estate of his deceased wife
Pur Autre Vie For the life of another - Life estate contingent on the life of someone other than the grantee
Intestate Dies with no will
Judicial Partition When a court divides property due to a dispute regarding the use or sale of the property
Separate Property Real and personal property owned solely by either spouse before marriage
Community Property Property attained after marriage
Right of Survivorship When the interest of a property is equally divided between its surviving owners or remaining owner
Inter Vivos Trust Living Trust
Testamentary Trust A trust that becomes effective after a person dies
Actual Notice Express information or fact attained in a transaction
Uniform Residential Landlord & Tenant Act of 1973 Created for regulating the relationship between landlord and tenant in residential leases
Constructive Notice Knowledge that is implied by the law or legal notice
Parol Evidence Rule Written agreement is the final expression of the agreement of the parties and prevails over prior oral negotiations
Liquidated Damages Compensation amount predetermined and paid to an injured party because of a contract breach
Escheat Reversion of property to the state or county
Acknowledgement Formal declaration made before an authorized officer to confirm a person has signed a document not under duress
Rescission Agreement Mutual agreement signed by the seller and buyer to cancel the contract, stating disposition of earnest money
Homestead Life estate in real estate occupied as the family home
Laches A doctrine to bar a legal claim due to delay or failure to assert the claim or right
Conversion When a broker spends trust money
Reversionary Rights Right to take back possession of a property if a lease ends
Inverse Condemnation When an owner requests that his property be condemned because of damages caused by government actions
Taxation Right of the government to tax private property to pay for the costs of government and area improvements
Ad Velorem According to Value
Assessment Tax A specific levy for a definite purpose such as adding curbs or sewers in a neighborhood
Prior Appropriation Landowner's right to use available water based on a government administered permit system
Non-Conforming Use Permitted use of real property that no longer conforms to current zoning laws
Variances Permit deviations from existing zoning laws
RESPA Real Estate Settlement Proceedures Act - Requires full disclosure of all costs invoved in obtaining financing and closing on a property
Temporary Broker When designated broker becomes ill or dies, the broker that steps in to manage agents
Cooperating Broker Broker who assists another broker in a real estate transaction
Hypothecate To pledge property as security for a loan without giving up possession
Estoppel Certificate Legal instrument verifying the exact loan amount, the current rate of interest and the date to which interest is paid
Consideration Valuable or good
Constructive Eviction Actions of a landlord that disturb or impair a tenant's enjoyment of the leased premises and causes him to leave
Novation Substituting a new obligation for an old one or for new parties to an existing obligation
Deed Written instrument transferring the ownership of real property from one person to another
Grantor One giving up possession or the Seller
Grantee One receiving possession, or the Buyer
Grant The act of conveying ownership
Contract Legally enforceable agreement for consideration between competent parties to perform or not perform an act
Statute of Frauds A requirement that everything must be in writing
Misrepresentation False statement of concealment of a fact
Fraud Any form of misrepresentation with intent to deceive
Blue Sky Laws Laws which regulate the registration and sale of investment securities
Offeror Giver of the offer
Offeree Receiver of the offer
Offer Expressed promise made by one party to act or perform in a specified manner
Comingling Mixing of the broker's operating money with trust funds
Breach of Contract Violation of any terms in a contract without legal excuse
Option An agreement kept open to buy or lease the owner's property at a fixed price within a stated period of time
Optionor When exercising an option, the Seller
Optionee When exercising an option, the Buyer
Lease Contract between a lessor and a lessee that transfers right to exclusive possession and use of property for specified period of time in exchange for rent
Lessor Landlord
Lessee Tenant
Subletting Transferring part of a lessee's interest to another for a portion of the term of the lease
Actual Eviction Legal process that results in the tenant being physically removed from the leased premises
Distraint Landlord's legal right to seize a tenant's belongings for damages or rents in arrears under court order
Public Accomodation Privately owned entity that provides services or accomodations to the public
Eminent Domain The right of the government to take private property for "necessary public use" in exchange for compensation
Condemnation The process by which the government takes property by eminent domain
Active Management Areas Areas where the water supply is limited and where water management programs are most needed
Littoral Rights Rights associated with navigable waterways
Riparian Rights Rights associated with nonnavigable waterways
Set Back Amount of space required between lot line and building line
Buffer Zone Strip of land separating one land use from another
Unsubdivided Land Land with 6 or more parcels of 36 acres but less than 160 acres each
Subdivided Land Land with 6 or more parcels under 36 acres each
Master Planned Community Area of 2 or more platted subdivisions with the same CC&R's
Zoning Regulation that governs structures ona property and use of land within a particular area
Closing When seller delivers title to the buyer in exchange for the purchase price
Escrow Arrangement in which money and/or documents are then transferred by escrow agent according to purchase and sale agreement
Affidavit of Legal Value A recorded document indicating the sale price of the property and signed by the buyer and seller for tax purposes
Prorating The dividing of all costs proportionally between the buyer and seller
Chain of Title Ownership history of a property from creation
Title Evidence Proof in the form of documents that seller conveys legal title
Abstract of Title A history of all recorded instruments that has affected title to a property
Acknowledged Deed A formal declaration made before a notary public or duly authorized officer by the person who has signed the document itself
Testate When a person dies with a will
Intestate When a person dies without a will
Probate When a court determined the validity of a will or the order of descent if there is no will.
Devise The transfer of real property by will
Devisee The person who receives property by will
Descent or Intestate Succession Real estate distributed by descent statutes after deceased owner died intestate
Interpleader Action When the title company turns earnest money over to court due to a dispute between buyer and seller
Executor Person who is named in will to carry out the deceased person's wishes
Adverse Possession The actual, open, notorious, hostile and continuous possession of another's land
Appraisal An estimate or opinion of the value of a piece of property as of a certain date.
Appraiser One who estimates the value of real or personal property
Reconciliation When an appraiser arrives at a final estimate of value after examining each appraisal approach
Seller's Market Real estate market where the demand for homes is greater than the supply
Buyer's Market Real estate market where the supply of homes is greater than the demand
Subject Property The property being appraised
Comparable Property(comps) A recently sold property being used as a means of comparison
Reproduction Cost The construction cost at current prices of an exact duplicate of the subject property
Replacement Cost The construction cost at current prices of a property that serves the same purpose or function as the original
Physical Deterioration Decay, disintegration, or wear and tear
Functional Obsolescence Loss of value inside property lines from functional problems like age or design
Economic Obsolescence Loss of Value off the subject property
Capitalize To convert future income to present value
Plottage Combining parcels for greater value
Assemblage Combining two or more adjacent lots to increase value
Real property Land and anything permanently attached to it
Fixture Personal property changed to real property by permanently attaching it to the real estate
Personal Property Movable items not attached to real estate
Trade Fixtures Personal property used in a business or trade that is attached to real estate
Contiguous Touching at any point
Abutting Butting against each other
Government Check In a 24-mile-square parcel, there are 16 townships
Plat Map A map that only shows lot locations and size
Encumberance Any claim attached to real property that may lessen its value or impair its use
Lien A claim against one property owner as security for debt
Mechanics Lien Lien placed on property for the labor and or material rendered in the improvement of the property
Easement Appurtenant Easement that is attached to the land and passes with the land
Domaning Estate (tenement) The estate that benefits from the easement
Servient Estate (tenement) The estate that is the giver of the easement
Party Wall A common wall between properties
License Not an interest in land but merely permission to use the land of another for some limited purpose
Encroachment An unauthorized intrusion of real property reducing its value.
Egress The ability to exit a property
Ingress The ability to enter a property
Principal (client) In a real estate transaction, the person represented
Agent In a real estate transaction, the person being represented
Subagent When the original agent delegates authority to another agent, that person is called a subagent
General Agent One authorized to act on behalf of another
Dual Agency When an agent represents both buyer and seller
Expressed Agency Agency, whether written or oral, that was clearly stated in words
Implied Agency Agency with someone who appears to act on behalf of a prncipal with no formal listing agreement
Agency by Ratification To later acknowledge or restate a previously implied relationship
Estoppel Agency When the principal creates agency because he fails to "esstop" someone from acting like his agent
Agency A legal relationship when a person acts on behalf of another in business
Attorney in Fact A competent and disinterested person who is authorized by another person to act in his or her place
Customer A prospective buyer of real estate
Fiduciary A relationship that implies a position of trust
Special Agent One authorized by a principal to perform a particular act
Dual Agent One authorized to act on behalf of the buyer and the seller with written consent
Steering When brokers direct buyers away or to some of their listings to change or keep the character of an area the same
Redlining The illegal practice of lending institutions denying loans based on ethnicity instead of financial reasons
Blockbusting A practice whereby a broker hopes to profit thru persuading owners to enter into a real estate transaction by telling them that change may occur in the neighborhood in regards to race, sex, religion, color, handicap, or familial status
Listing Contract A written agreement authorizing a real estate broker to find a buyer for a property owner
Seller's Property Disclosure Stmt (SPDS) Statement to the best of the sellers knowledge identifying condition of property being sold
Misrepresentation A false, unintentional statement by which on party tries to gain advantage
Negligent Representation A false statement that the broker should have known about a fact
Fraud An intentional, false statement of a material fact by which on party tries to gain advantage
Puffing An exaggerated or superlative comment or opinion
Caveat Emptor Statement that means: Let the Buyer Beware
Caveat Venditor Statement that means: Let the Seller Beware
Superfund Nickname for an act which focuses on cleaning up waste and hazardous material on property and identifying responsible parties
Assignment When the right and interest in a property is transferred to another for the entire term
Power of Sale Clause that permits the trustee to sell the property if the borrower defaults without a court of law
Severance Damages The partial taking of property through eminent domain
Specific Performance A legal action to compel a party to carry out the terms of a contract
Consequential Damages Damage that occurs due to something off the subject property but that causes a loss of value
Trust Deed A legal document in which the title to the property is transferred by a borrower to a third party as security for the beneficiary/lender
Police Power Government's right to enact legislation for the health, safety, and general welfare of the public
Name Architectural Style: A neoclassical style of architecture inspired by and incorporating features of Greek temples from the 5th century BC, popular in the US and Europe in the first half of the 19th century. Greek Revival
Name Architectural Style: English Baroque architectural style revived form that was popular in the last quarter of the 19th century and the early decades of the 20th century Queen Anne
Name Architectural Style: Usually has a formally defined living room, dining room and sometimes a family room. The bedrooms are typically on the second floor. They also have one or two chimneys that can be very large. Colonial
Name Architectural Style: The 19th century Movement sparked the Craftsman and bungalow styles. The beams on the porch and inside the house are often exposed. Arts and Crafts
Name Architectural Style: Heavy chimneys and steeply pitched roofs with medieval flavor. The windows of this home include a lot of casements. Typically off-white with a lot of dark brown trim throughout. Tudor
Name Architectural Style: Houses usually have low-pitched tiled roofs, white stucco walls, and rounded windows and doors. Other elements may include scalloped windows and balconies with elaborate grillwork, decorative tiles around doorways and windows. Spanish
Name Architectural Style: Flat roofs, metal window casements, and smooth stucco walls with rectangular cut-outs mark the exteriors. Facades are typically flush with zigzags and other stylized floral, geometric, and "sunrise" motifs. Art Deco
Name Architectural Style: Flat roofs, parapet walls with round edges, earth-colored stucco or adobe-brick walls, and roof beams that project through the wall. Interior typically features corner fireplaces, raw wood columns, and tile or brick floors. Pueblo
Name Architectural Style: Overhanging eaves, a low-slung gabled roof, and wide front porches framed by pedestal-like tapered columns. Material often included stone, rough-hewn wood, and stucco. Craftsman
Name Architectural Style: One-story, pitched-roof construction, built-in garage, wood or brick exterior walls, sliding and picture windows, and sliding doors leading to patios. Ranch
Name Architectural Style: Architecture dates from the second half of the 19th century. These homes combine modern materials with 19th century details, such as curved towers and spindled porches. Victorian
Name Architectural Style: Ionic or Corinthian columned porches often extend the full height of the house. Also typical: symmetrical facades, elaborate, decorative designs above and around doorways, and roof-line balustrades (low parapet walls). Neo-Classical
Name Architectural Style: Square or rectangular with one or one-and-a-half stories and steeply pitched, gabled roofs. It may have dormers and shutters. The siding is usually clapboard or brick. Cape Cod
Name Architectural Style: Odd-sized and often tall windows, lack of ornamentation, and unusual mixtures of wall materials--stone, brick, and wood. Contemporary
Name Architectural Style: These narrow, rectangular one and one-half story houses have low-pitched gabled or hipped roofs and small covered porches at the entry. The style became so popular that you could order a kit from Sears and Roebuck catalog. Bungalow
Name Architectural Style: Brick with detailing in copper or slate. Windows and chimneys are symmetrical and balanced. Defining features include a steep, high, hip roof; balcony and porch balustrades; rectangle doors set in arched openings. French Providential
Created by: melitia1