California Real Estate Exam Prep

escheat, is if someone dies and there is no one to inherit or no will the property goes to the state.

There is only unity to tenancy in common. That's the matter of possession. Do not confuse with the for unities that belong to joint tenancy.

Economic life refers to the useful life of improved property, which is customarily shorter than the actual physical life of the property.

It is the foundation plan that will show the placement of the piers, sub-floors, footings, and columns withing the structure

Under the Federal Interstate Land Sales Full Disclosure Act, right of rescission lasts for seven days. Also recall that the number of lots in discussion under this act would be 100 or more lots being sold from state to state with a seven day right of rescission.

The borrower's need for financial assistance is the least consideration that a mortgage company will give.

If the requirements of the bulk sales law are not met, the creditor could move to unravel the sale between the seller and the buyer. The buyer would stand to lose any deposit monies presented into the escrow up to that time.

The employment contract between the broker and the salesperson must be in writing because of statutory requirement. A copy of this employment contract must be kept by both the broker and the salesperson for up to three years after termination of employment.

The assignee takes over all rights and interest of the original tenant in a lease agreement. The assignee becomes a tenant, replacing the original tenant.

An impound account benefits both the trustor (borrower) and the beneficiary (lender). By impounding taxes and insurance, the lender is certain that these debts will be paid. The borrower is also certain that the payments will be made.

The Structural Pest Control Board in Sacramento retains information on pest control reports for up to two years. This information may be secured by anyone who requests it and pays a fee.

Of the four choices, an unlicensed person can only type listing agreements for salesperson

An implied right of entry hoes along with a reservation of rights, as stated in the question

If there is any form of misinformation or misrepresentation by a salesperson to a potential buyer, both the salesperson and the broker may be liable for damages

Under Article 7 (loans) with reference to junior trust deed that is under $20,000, the maximum commission that a broker can earn if the payment of the debt is in three years or more is 15%

The trustor is the borrower under a deed of trust and is the one who signs the note and the deed of trust itself

The Unruh civil Rights Act that prohibits discrimination by businesses

Under the Unruh Civil Rights Act, payment of both punitive damages and actual damages for discrimination activities are both possible.

The Rumford Act, also called the California Fair Housing Act, empowers this commission to take action for discrimination violations.

In a tight money market, the cost of existing available dollars would increase. Therefore, buyers would be expected to pay more points for securing a loan.

A complete escrow is one wherein all documents have been properly drawn and are prepared for final signature, allowing that escrow to close.

The escrow agent is truly an independent agent for each of the parties to the escrow and can act neither as an advocate nor as a counselor

Most life insurance company loans are made through a loan correspondent that could be defined as a mortgage banker or mortgage broker.

For the homestead to be effective, the recording must occur before an ultimate judgment is recorded. Notice the difference between recorded and rendered. Recording occurs after a judgement is rendered

Jacob becomes a one-third tenant in common with Louis and Tom, who remains as joint tenants.

The National Association of REALTORS encourages settlement of disputes between the parties by mediation or arbitration whenever that can be arranged

Liquidated damage agreements have been disliked by the courts. However, they are often allowed if the amount discussed is not unusually high and it might perhaps be difficult to fix actual damages suffered by the insured party.

The promissory note is merely evidence of the debt and must be secured by another device commonly called the trust deed. Hence, a trust deed is a security device.

A lessee has possessory interest in real property and is able to grant an easement but only for the term of the lease

The husband's salary, as well as the wife's salary, is considered community property.

A deed to an assumed name, sometimes called a fictitious name, is permissible, such as a deed to property bought by a person in the name of a business.

Commercial property valued in excess of $350,000 required that an appraiser be licensed as a certified general appraiser

The statute of limitations for contract in writing is four years.

Choice "d" is a proper definition for the exclusive authorization and right-to-sell listing

Simple interest is the form of interest customarily charged on real estate loans.

FICO scores of 620 and above can usually generate good loans (there are exceptions)

A commercial acre is defined as the remainder of an acre after the land as been subdivided to include areas devoted to streets, sidewalks, curbs, and alleys, and so on

A condominium purchase is the only transaction in which the buyer receives a fee simple interest and an in-common interest at the same time

The time period in which to file a complaint for violation under the federal fair housing law is 180 days

None of the choices are required for minimum building standard requirements by the FHA

Two handrails are not required for minimum building standard requirements by the FHA

When one expires leaving a will without heirs, the property transfers according to the provisions of the will and possibly to the interests of potentially existing devisees, subject to the proper administration of that will

The beneficiary is the lender

The preferred method for the appraisal of a shopping center would be the replacement cost approach and the capitalization of net income approach

A hold in due course is a third party who buys up an existing note. The maker is the borrower. The borrower may refuse payment on the note if there is material alteration on the face of the note.

An estate of inheritance is another form of fee simple. A main characteristic of this interest is that the estate is of indefinite duration

Under an exclusive-agency listing, the seller reserves the right to sell the property on his own and not pay anyone a commission

Under an exclusive-agency listing, the seller reserves the right to sell the property on his own and not pay anyone a commission

Depreciation is a term with two applications. For accounting purposes, deprecation is taken off the book value. For appraisal purposes, deprecation is taken off the actual replacement value of a new commodity

If deed restrictions and zoning conflict, the more rigid of the two will prevail. In this example, zoning is more rigid.

The escrow company writes to the lender requesting a beneficiary statement. That settlement will indicate the condition of the loan, the balance due, rate of interest due to date, and so on.

Trade fixtures are items that can be removed on termination of the tenancy if the contract provides for that, as long as the tenant makes any repairs to the premises necessitated by the removal of such trade fixtures. Choices a and c are examples of trade fixtures

A attachment is legal seizure of the title to property by a court. It is a prejudgment activity, typing up that property until a hearing date is set

Unpaid taxes will be classified as general liens

Building codes, deed restrictions, and zoning regulations are all examples of public and private restrictions that may limit the use of real property

When recorded, an abstract of judgment becomes a lien on any property owned by the judgment debtor in the county where the abstract is recorded

Both the seller and the broker are obligated to disclose any material facts to a prospective buyer concerning the property in question, unless prohibited by law

Every potential buyer of land within a land project is entitled to a copy of the public report

A township is a six-mile square, containing 36 square miles, within a 24 mile perimeter

Usually, a broker is obligated to submit all offers on a listing, unless the owner has expressly instructed the broker not to do so.

The requirement of the meeting of the minds is a requirement for a contract, and a standard listing agreement is an example of a contract

The floor plan and the equipment help define functional utility

Intangible personal property is not subject to taxation

Prepaid rent is considered a charge, or debit, to the seller

Choices a, b, and c are all of concern to the home buyer

The statute of frauds says certain items, including real estate transactions, must be in writing to be enforceable

An unlawful detainer action is the legal action an owner may take to remedy a default in rental payment

The easement is an easement appurtenant, meaning it will run with the land and be transferred to the buyer of the dominant tenement interest.

Unlike some other states, California offers a homestead exemption to everyone who owns a home and lives in it. Your home need not be a single-family dwelling. If you live in a condo, motor home or on a boat that you own, you qualify for the exemption. If you are single, you have homestead protection up to $75,000 of equity. A head of household receives a $100,000 equity exemption. If you are over 65, physically disabled or have less than $15,000 annual income, your equity is protected up to $175,000. A qualifying dwelling can be any place you own as your principal place of residence and that is subject to property tax. Examples include, but are not limited to: Single family residence Duplex or half-plex Condominium or planned unit development (PUD) Unit of any multi-unit property Mobilehome Houseboat or floating home that is subject to property tax A living unit in a commercial or industrial property A motor home or other temporary structure used as a principal residence on otherwise vacant property owned by the claimant.