Real Estate Principles Final Exam Flashcards

Real Estate Principles Final Exam Flashcards When a Cal-Vet wishes to purchase a home and use his or her California veterans benefits he or she would make

application to the:

Department of Veterans Affairs Charles died intestate and left a $60,000 Estate but no

heirs. His state would:

Revert to the state The end result of most profit and loss statements is to

ascertain:

Net income If a note in the amount of $22,250 specifies monthly payments over a period of 30 years at 6.6% interest per annum, what is the first month's interest payment?

$122.38

Under a construction loan, the final payment to the

borrower is generally released when the:

Lien period has expired Title to real property that is transferred by a will is

considered:

A devise When a creditor wants to satisfy a judgement which was

levied against another person, the creditor would:

Obtain a writ of execution A client hires a broker to buy a parcel of land for a specified sum on his behalf. The broker however purchases it for himself at a lower price and then sells it to his client at a higher price without revealing his costs. This is an example

of:

Secret profit Most real estate contracts are in writing on reprinted forms.Some of the terms of these contracts must be written in and other parts are reprinted. In the interpretation of such

contracts:

The written parts take precedence over the printed parts A lease of real property for a fixed period of time at a set

rate of rent creates:

An estate for years Which of the following represents a gross misrepresentation by the agent?The representation is an obvious falsehood, the representation is made with the knowledge of it being a falsehood, and the representation caused the aggrieved party to enter into the contract Under the law of Agency, a fiduciary relationship is created between the broker and the seller upon execution of the listing agreement. As far as the broker's responsibility to

third parties, the broker:

Must be fair and honest A real estate subdivider who resides in Hawaii is required to comply with various laws if he wants to offer his property located in Hawaii for sale in California. The law that he

would be most concerned with would be the:

California Real Estate Law Enforcement of the State Housing Law is accomplished

through the:

Local building inspectors

The words "procuring cause" would have an important meaning to which of the following?A disputed over commission on an open listing Which of the following has the control over the approval of a subdivision under the Subdivision Map Act?Planning Commission All of the following would have an effect on the final estimate value when making an appraisal of an old family

residence except:

Original cost of the residence Which of the following would not be classified as a specific lien?Judgment Discrimination by a real estate licensee based on race is:A violation of the regulations of the Real Estate Commissioner, against public policy, and unethical A quitclaim deed releases all present claims, rights and title

of the:

Grantor A formal declaration before a notary public or other qualified by a person who has executed an instrument, that

such execution in his or her act and deed is called:

An acknowledgment The trust deed and note on a conventional loan is held by

the:

Lending institution

Recording a deed:Presumes delivery of the deed

An executrix of an Estate is:Named in the decedent's will

Blank, special, restrictive, and qualified are all terms used

to specify types of:

Endorsements To an appraiser, a definition of value is: The relationship between desirous persons and things desired, the ability of one commodity to command other commodities in exchange, and the present worth of all the right to future benefits arising from the ownership of property A valid recorded homestead will not protect the homeowner

against the foreclosure of:

A mortgage, a trust deed, or a mechanic's lien

The type of interest usually charged on home loans is:Simple

Which of the following appraisal reports would be the most comprehensive and complete?Narrative According to the provisions of both federal and state civil rights legislation, discrimination due to race, color, creed or

national origin in housing is:

Unenforceable, unlawful, and illegal The landmark case of the United States Supreme Court

which prohibited discrimination in housing was:

Jones vs. Mayer A landowner is notified by a railroad company that it plans to cross his property with a railroad line. If the landowner

refuses, the railroad company can proceed by the use of:

Eminent domain The stated policy of the Real Estate Commissioner is to create a "color-blind" industry which can help society obtain voluntary, equal opportunity in fair housing. What does this mean?Maintain an attitude that is actually free from bias and color-blind to appearance, that race, creed or color is not a material fact in real estate transactions, and do unto others as you would have them do unto you

When a property is sold during a tight money market and the existing loan contains an alienation clause, which of the following is most likely to occur?Buyer will secure new financing

A grant deed:Warrants that the property has not been previously

conveyed by the grantor Which of the following is generally demanded in every sale of real property in California?A policy of title insurance

A title plant is a:Collection of real estate records

State law requires that every city or county create a

planning commission:

Without exception Upon the signing of a real property sales contract:An equitable title passes to purchaser Which of the following is not an essential to the validity of a deed?Payment of financial consideration The commission to be paid to a broker in a probate sale is

set by the:

Court When an appraiser analyzes the rent while using the income approach, he should base his appraisal on which of the following characteristics of the income?Durability, quality, and quantity In comparing the cost of reproduction of two buildings of

the same square footage, a two-story house usually:

Costs less than a one-story house The gross multiplier method of appraisal would be of little

value when appraising:

Public buildings When a broker advertises a listed property for sale, the

broker may not legally use an ad:

That gives the impression that the broker is the owner of the property One of the chief advantages of the market data approach in

the appraisal of real property is that:

It is the easiest method for a salesperson to learn and use An income property was appraised for the $100,000 based on a 6% capitalization rate. If an investor used an 8%

capitalization rate, the property would be:

$75,000

Which of the following is not an essential element of a contract?Performance

The least contract is considered:Personal property

A person that is employed by another to act on his or her

behalf may be considered:

An employee, an agent, and an independent contractor A first trust deed can usually be distinguished from a

second trust deed by the:

Time and date of decoration The California State Agency that governs the issuance of

liquor licenses is the:

State Franchise Tax Board Which of the following would be considered a quiet title action?Court action to remove a cloud on the title

All of the following are personal property except:Easements

An estate of inheritance or a perpetual estate would be:A fee simple estate

"Duress" is a term which is most closely associated to

matters concerning:

Contracts

A corporation is prohibited from holding title to real property

in California with any one as a joint tenant because:

If it's perpetual existence Anything that is fastened or attached to real property

permanently is considered to be:

Real Property The person who most likely would make use of the legal

remedy known as "Unlawful Detainer" would be a:

Lessor Most real estate syndicates that have been created in

California have taken the form of a:

Limited partnership What is the annual interest rate on a $16,000 loan when the interest payments are $160 per quarter on the full amount? At least; 4%, but less than 5% The government's control over land use, planning and

zoning are an important example of:

Police power Deed restrictions may be terminated in all of the following

ways, except:

Voluntary cancellation by grantee

A valid deed vests title in the grantee when the deed is:Delivered

A cautious buyer paid $200 for a four-month option to purchase a property for $30,000. Under these

circumstances, each of the following are true except:

Optionee has created a legal interest in the property A lender agrees to make a loan on a large commercial complex provided the borrower gives the lender a 2% interest in the ownership. This type of loan would be known

as a:

Participation loan In a business partnership, if one of the partners dies, the

surviving partner:

Becomes exclusive manager of the partnership business and retains title to the partnership property until he winds up the partnership business Once an abstract of judgment is recorded it remains a lien

on all real property for:

Ten years A real estate broker received 40 acres of land valued at $300 per acre as a commission from the seller. Two weeks after escrow closed, the broker was offered $400 per acre

for the land. If the broker accepts the offer he:

Will be acting in an acceptable manner To hold real property as tenants in common, individuals

must:

Hold undivided interests If there is a conflict between the signed escrow instructions and the signed deposit receipt, which of the following would be binding?The escrow instructions An estate in which a tenant who rightfully came into possession of a property, and who retains possession after the expiration of the term without he consent of the landlord

is known as:

An estate at sufferance Which of the following would not be classified as an institutional lender?Mortgage company Under the Street Improvement Act of 1911, the city is authorized to assess each owner for the work completed.