Real Estate: CA: Real Estate Principles: RE chapter Final Exam

Real Estate: CA: Real Estate Principles: RE chapter Final Exam Flashcards Call the sellers immediately and let them know you won't be coming by.Theresa just bought her first new home. She put 30% down and got a mortgage for the remainder. The difference between what Theresa owes and what her home is worth is known as what?PrincipalEquityReplacement costCapital gain Real estate associations promote a code of ethics so that they will have solid ground for license suspensions.Carl has a habit of directing minority clients to the south end of town because he feels they would be more comfortable in that neighborhood. This practice

is:BlockbustingRedliningPanic sellingSteering

Equal Credit Opportunity ActJenny's home appraised for $550,000. Her asking price was $560,000 and the property sold for $575,000. What will the new owners pay in property taxes?$5,500 the first year, plus a maximum 2% increase in market value per year$5,600 every year, with no increase$5,750 the first year, plus a maximum 2% increase in market value per year$5,750, plus a maximum 10% increase in market value per year Fannie Mae, Ginnie Mae and Freddie MacWhich kind of lease increases at specified intervals?NetGrossPercentageGraduated Department of Real EstateAll but which of the following is NOT an AIDA feature?ActionDesireAspirationInterest Nancy bought her home last year for $425,000. Her

property taxes would be assessed at a maximum of:

$4,250

The worth and use of a parcel to a particular person for a particular purpose Sharon and Steve have just taken a second mortgage on their home. Which is a true statement?The second mortgage has now become the primary loan.This mortgage is not negotiable.They're probably paying a higher interest rate on the second mortgage.The first and second mortgages will be rolled into one.Sally and Dan must pay 2 points on their new $65,000 loan. What will they have to pay at closing for the points?

$1,300

Advertising a similar property can and does create interest in their property.Agent Dan received an offer on his listing with sellers Mark and Amy for less than asking price. Which of these actions would be the least desirable action for Dan to take?Dan should set up a meeting with Mark and Amy as soon as possible.He should study the other terms of the offer so that he can point out the offer's other positive benefits.Dan should prepare a statement of the sellers' net and a new CMA to take to the presentation.He should tell Mark and Amy the offering price over the phone so that they can

think about it before the meeting.She can advertise that the home can travel on the highway if it meets certain requirements.

When agent Hal shows a home he should never:Ask

questions of the prospects' children.Start in the room with the best features.Allow indoor pets to leave their designated area.Leave everything as it was when he entered.Bill of SaleThe public report that a developer must provide when offering subdivided lands for sale is provided by which

agency?Department of Housing and Urban DevelopmentDepartment of Real EstateRecorder's Office in the county where the land is locatedThe county planning commission

SteeringWhich of the following is not considered a benefit of investing in real estate?Having a monthly income.Reducing taxes.Realizing a quick profit.Hedging against inflation.Gained $640When dealing with the sale of a business, which is not a true statement?A Bill of Sale gives title to the business equipment.Goodwill is an intangible asset that results from the reputation of the business.Tangible assets transferred in the sale include inventory, fixtures and equipment.The UCC is a body of law that standardizes a number of business practices.Mello-Roos Community Facilities ActBroker Jill has an agreement with seller Alice that says Jill will receive compensation if anyone except Alice sells Alice's home. What kind of agreement is this?Exclusive agencyNet listingRight-to-sell agreementOpen listing The broker's identificationWhich is not a true statement about the Agency Disclosure?The listing agent must provide the disclosure to the seller prior to securing the listing agreement.The selling agent must provide the disclosure to the seller "as soon as practicable" prior to presenting a purchase offer.If the selling agent does not deal directly with the seller, the selling agent is not required to provide the disclosure.The selling agent must provide the disclosure to the buyer "as soon as practicable" prior to the execution of the buyer's offer to purchase.Recently renovated propertiesWho is liable for the withholding on the sale of a property owned by a foreigner?BuyerSellerAgentEscrow Officer Realizing a quick profit.An apartment manager seeks to evict a tenant for filing a discrimination complaint. What California Fair Housing law has the manager violated?Civil Rights Act of 1964Rumford Fair Housing ActHolden ActCalifornia Civil Rights Act AspirationWhich of the following prospecting techniques do you have to use carefully because it has tended to upset people in recent years?Facebook and Twitter advertisingDirect mailPlacing adsTelephone calls BuyerWhich statement is true about a loan that has a negative amortization?At the end of the term, the loan balance will be negative.The borrower makes payments of interest only over the term of the loan.Payments will not be enough to retire the loan.All adjustable rate mortgages have negative amortization.RESPA requires the use of the Closing Disclosure for which types of transactions?All real estate transactions The date Abby receives the good faith estimate. The Housing Financial Discrimination Act is also known asThe Rumford ActThe Holden ActTitle VIIIThe Unruh Act