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practice exam #2
Term | Definition |
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Describe syndication + who benefit from it? | A transaction between a sponsor and investor. It's a way for investors to pool their financials and intellectual resources together. + it benefits small investors or people who normally couldn't afford to invest in the project/ property on THEIR OWN. |
If an UNLICENSED person acts as a real estate salesperson, he or she will be guilty of?? | A misdemeanor |
Which penal code section addresses the crime of bribery of a lender to obtain credit | PC 639-639a |
To be exempt to the federal fair housing laws concerning age and family status a retirement community MUST have ___% of the dwellings with one person who is __years old or older and INCLUDE ______ for the elderly residents. | 80% - 55 years old or older - WITH Amenities |
How does Northern,CA compare from Southern,CA when it comes to paying Escrow Service Fees? | Southern,Ca splits them 50-50 + Northern,Ca the buyer usually pays the escrow service fees |
What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments? | The foreclosure lawsuit must be filed within 90 days of recording the lien + The action for removal of encroachments must be brought within 3 years. |
After receiving notice of a lump sum of $11,257 due to pay off a mortgage loan. Which type of promissory note has Caroline NOT been paying? and why? | A fully amortized loan because it WON'T have a Balloon Payment due. (if the borrower makes payments according to the loan's amortization schedule, the loan is fully paid off by the end of its set term) |
With a loan secured by a first trust deed for a period of 3 years or more, the maximum commission a broker can receive is? | 10% of the principal of the loan. |
A valid joint tenancy is said to require the "4 unities"aka fourfold unites characteristics which are? | (P.I.T.T) -Possession -Interest -Time -Tittle |
The term "Vesting of Title" means? + Vesting Deeds are usually part of a Warranty Deed and serve as a GUARANTEE from the seller to the buyer and certify what things? | Determining how you will ”Hold the Tittle” and it outlines the type of ownership rights a person has on a property + The seller has the absolute right of title as well as ownership rights and able/willing to convey them |
When an owner dies without a will or heirs what term describes that? what happens to the property and why? | Es-cheat. Escheat means that property cannot be without an owner. So when an owner dies without a will and without heirs, then the property REVERTS to the state. |
Define Fee Simple Defeasible estate. What happens if the terms are not met? | fee simple defeasible is a conveyance of property that has conditions placed on it.If the condition is violated or not met, then the property will either go back to the original grantor or a specified third party. |
Define fee simple absolute estate... | Absolutely ownership.....(The greatest and highest property ownership. The right to have you can do WHATEVER you want with this leasehold estate) |
State the case that is responsible for broker's conducting a diligent inspection of properties they are listing or selling?? | Easton v. Strassburger -- A real estate broker employed by the seller (MUST disclose Material Facts) affecting the value of the property after carefully inspecting the property to be sold/listed |
Certified Residential Licenses are issued to appraisers for one-to-four unit residential properties and non-residential properties with a transaction value up to? + The applicant for this license must complete how many hrs of appraiser education? | Transaction Value up to $250,000 + 200 hours of appraiser education is required. |
What are the 4 steps to Qualify a Property? | (V.A.C.T) 1.)Value range 2.)Area Zoning 3.)Condition 4.)Type of property |
XYZ Corporation is interested in a piece of land for development. They are selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of stock considered a form of financing? + Why/ Why not?? | It is considered a -Mortgage Financing Alternative- + Because the purchase of the land ISN'T actually being financed, its being taken care of by cash obtained from the sale of stock. (The sale of stock is considered a Mortgage Financing Alternative) |
What are the 4 elements required for a Valid Contract? | 1.)Legally Competent Parties 2.)Offer and Acceptance 3.)Consideration 4.)Legality of Object |
What is a purchase-money mortgage AKA Land Contract? | A purchase-money mortgage AKA Seller/Owner financing is a mortgage issued TO the borrower FROM the seller of a home as part of the purchase transaction. (Usually when the buyer CAN'T QUALIFY for a mortgage through traditional lending channels) |
When is a real estate licensee considered a creditor? | If the licensee routinely assists sellers in DETERMINING whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy. |
Is it Northern or Southern CA the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow? | Southern CA |
What is the difference between Southern,CA and Northern ,CA when it comes to who preforms the Escrow Services? | In Southern,CA escrow services are usually performed by Independent Escrow Companies or Financial Institutions + Northern,CA the escrow services are usually performed by Title Insurance Companies |
What are the 3 types of legal Life Estates + Definitions? | Dower:Wife’s Interest in the husband's property + Curtesy:Husband's Interest in a wife's property + Homestead:Protection against unsecured debts for the party who did not sign for the loan |
Give 3 examples of forms of syndication... | The Corporate Form + The General Partnership +The Limited Liability are all forms of Syndication! |
John and Tom are purchasing their dream home. Due to the expiration of escrow instructions, the escrow has been terminated. Have they lost the contract on the house of their dreams??? | No... the termination of an escrow DOES NOT terminate the associated contract. |
What is the significance of the Cohen v. Shearer case? | Under Cohen v. Shearer, the Cancellation or Termination of escrow MAY NOT also cancel a purchase contract. |
What form of illegal discrimination is the process by which Banks and other institutions Refuse to offer mortgages or offer worse rates to customers in certain neighborhoods Based on their racial and or ethnic composition?? | Redlining |
What form of illegal discrimination is the practice of persuading owners to SELL their property cheaply because of the fear of people of another race or class moving into the neighborhood.(And then Profiting by res$elling at a higher price)??? | Blockbusting |
What form of illegal discrimination is the practice of nudging buyers Away or Toward a specific area... Based on their race,religion, national origin, or ancestry | Steering |
What are the requirements for converting a mobile home into Real Property? | Mobile home owner MUST… 1.)Get building permit 2.)Mobile home must be placed on a Permanent Foundation 3.) Obtain a Certificate of Occupancy 4.) A doc. Saying its been attached has to be RECORDED |
Is in Northern or Southern CA the instructions are usually not signed until one or two days before the close of escrow? | Northern CA |