Real Estate Principles: Online Exam First Tuesday Flashcards

Real Estate Principles: Online Exam (First Tuesday) Flashcards

• Incidental rights to real estate which are not located on

the real estate nor reflected on its title are called:

appurtenant rights

• The _____ oversees, regulates, administers and

enforces the real estate law.Department of Real Estate (DRE)

• A(n) _____ is issued to the successful bidder on the

completion of a judicial sale.certificate of sale

• To be considered capable at the time of signing a deed,

a grantor needs to be of sound mind, possess their civil

rights and _____:

be an adult at least 18 years of age

• _____ refers to the right of the government to take

private property for public use.Eminent domain

• A trustee's sale is considered final and complete:on the trustee's acceptance of the last and highest bid
• A(n) _____ exists when an agent has a positive or

negative bias toward an opposing party in a transaction which might hinder their ability to fully represent the needs of their client.conflict of interest

• Default mortgage insurance coverage provided by

private insurers for conventional loans with loan-to-value

ratios higher than 80 % is called:

private mortgage insurance (PMI)

• A seller's broker and their agents have a _____ owed

solely to the seller who has employed the broker, to diligently market the listed property for sale.fiduciary agency duty

• A(n) _____ is a commercial lease arrangement which

transfers to the tenant the obligation, unless modified, to pay all of the costs of ownership in addition to utilities and janitorial services.full-service gross lease

• Owners of adjacent properties uncertain over the true

boundary may agree to establish the location of their

common lot line under the:

statute of limitations

• The use of a(n) _____ to prepare a Natural Hazard

Disclosure Statement (NHD) relieves the seller's agent of any liability not known to the agent to exist.natural hazard expert

• A _____ is the sale or lease of the operations and

goodwill of an existing business enterprise or opportunity.business opportunity

• The federal lead-based paint (LBP) disclosure needs to

be delivered by the seller of residential property

constructed:

before 1978

• Ownership of a unit in a condominium project includes

compulsory membership in:

the homeowners' association (HOA)

• A real estate agent has no duty to voluntarily disclose

information regarding a prior occupant whose death

occurred on the real estate more than _____ before.three years

• To qualify home improvement loans for interest

deductions, the new improvements must be substantial,

meaning they:

prolong the property's useful life,adapt the property to residential use,add to the property's market value

• _____ are noxious or annoying conditions which are

man-made hazards that are injurious to health or interfere with an individual's sensitivities.Environmental hazards

• _____ is a process in which an independent agent

manages the closing of a real estate transaction through the exchange of documents and money between two parties.Escrow

• Recovery of money losses for a _____ cannot include

lost property value since the nuisance can be entirely eliminated.continuing nuisance

• _____ are funds belonging to others which a broker

and their agents handle when acting in a transaction.Trust funds

• A(n) _____ sets forth acceptable land uses within a

jurisdiction and governs the growth of a municipality.general plan

• A(n) _____ runs for an indefinite period of time and

renews monthly on the same terms until terminated.w month-to-month rental agreement

• A(n) _____ belongs to and benefits an adjacent

property and is said to run with the land as an interest the adjacent property holds in the burdened real estate.appurtenant easement

• A trustee is authorized to initiate a non-judicial

foreclosure sale of the property on a declaration of default and instructions to foreclose from the beneficiary under the _____ contained in a trust deed.power-of-sale provision

• A broker prudently refuses to use phrases that indicate

a preference in advertising, such as:

Any of the above("black home, adult building, Jewish home.")

• All records of an agent's activities during the listing

period need to be retained for:

three years

• Brokers and agents are required complete a minimum of

_____ of continuing education (CE) every four years to renew a license issued by the Department of Real Estate

(DRE).

45-Hours

• A seller of a one-to-four unit residential property

delivers a mandatory statutory form to prospective buyers

called a(n):

Transfer Disclosure Statement (TDS)

• The _____ dollar amount of equity in a homeowner's

dwelling has priority on title over most judgment liens and some government liens.homestead

• The amount of interest a private, non-exempt lender

can charge is controlled by:

Usury Law

• No matter how vested, all property acquired jointly by a

married couple is presumed to be:

community property

• The _____ insures mortgages with less demanding

down paym requirements and with high loan-to-value ratios (LTVs) than compared to mortgages originated by most conventional lenders.Federal Housing Administration (FHA)

• The fee charged by a lender as prepaid interest which

reduces the note rate on the mortgage is known as a:

point

• The restriction of a person seeking to buy or rent

housing in a manner that perpetuates segregated housing patterns is referred to as steering

• A tenant who remains in possession of a property on

expiration of a lease without an agreement or acceptance

of rent by the landlord becomes a(n):

holdover tenant

• A(n) _____ is valid and enforceable after delivery until it

is challenged due to a defect and declared invalid by court order voidable deed

• Under the _____ lenders are required to compile and

submit home loan origination data to supervisory agencies.Home Mortgage Disclosure Act (HMDA)

• A(n) _____ lasts for a specific length of time as stated

in a lease agreement.fixed-term tenancy

• While the federal Civil Rights Act provides general

protection against all prohibited discriminatory activity, the _____ protections are specifically limited to dwellings, including rental housing.Federal Fair Housing Act (FFHA)

• When a dual agency is established in a one-to-four unit

residential sales transaction, the broker may not:

pass on confidential pricing information to the opposing parties.

• A nonlicensed _____ may solicit and refer potential real

estate clients to brokers in exchange for a fee.finder

• Any final payment on a note which is greater than twice

the amount of any one of the six regularly scheduled

preceding payments is known as a:

balloon payment

• A wrongful and unauthorized entry onto real estate in

the possession of another is referred to as a(n):

trespass

• A(n) _____ is an additional charge levied by a lender

when an owner pays off the principal on a debt before it is due prepayment penalty

• A _____ is the primary document used to negotiate a

transaction between a buyer and seller.purchase agreement

• A trustee is required to send a copy of the Notice of

Default (NOD) by registered or certified mail to holders of a recorded interest in the secured property within _____ after recording the NOD.one month

• A residential or commercial landlord under a

month-to-month rental agreement can increase the rent or shift repair and maintenance obligations to the tenant by

serving a(n):

30-Day Notice of Change in Rental Terms.