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HalfTime Real estate principles exam prep
Terms in this set (66)
Real estate contracts must:
be in writing, be signed by the parties, and have the elements of a valid contract.
A prospective buyer made an offer and gave the seller's broker a $500 check as a deposit for the sale of a residence. Before the offer was given to the seller, the buyer contacted the broker and withdrew the offer. What should the broker do with the $500 check?
Return it immediately
When purchasing property, the amount of the buyer's earnest money deposit is determined by:
agreement between buyer and seller.
The primary document used to make an offer on real estate is called a(n):
When a buyer reserves the right to buy a property at an agreed upon price, within a stated period of time, without being obligated to do so, it is known as a(n):
Mary's broker presented a full-price offer to purchase to Susan's home with a 45-day closing. Susan accepted the offer but changed the closing date from 45 days to 90 days because she needed more time. In this situation, buyer Mary is:
not bound by the original offer she sent to Susan.
which of the following is not a reason for a lease to be valid
Signature of the tenant
Which of the following is true regarding a buyer representation agreement?
It is a single agency agreement.
The statute of frauds requires that contracts for the sale of real estate must:
be in writing.
What is a lawsuit that removes an unlawful holdover tenant?
An unlawful detainer action
Which of the following statements is correct regarding an option contract to purchase real estate?
The optionee is not obligated to purchase the property.
Unlawful acts by a landlord (lessor) to evict a tenant include all of the following except:
using the eviction process to remove the tenant.
In a listing, the seller agrees to pay a commission if the broker:
uses due diligence to procure a buyer.
A(n) __________ commands a tenant to vacate the a property within five days.
writ of possession
The offeror in a purchase agreement is usually the:
Seller Chris listed a vacant lot with a broker at $111,400. Prospective buyer Jordan submitted an offer of $111,000 that was to expire in three days. The next day, Chris made a counteroffer of $111,200. When Jordan did not respond within the three-day period, Chris signed an acceptance of Jordan's $111,000 original offer and instructed the broker to deliver it to Jordan. Jordan told the broker that he had decided not to purchase the property, but Chris insisted they had a deal. Based on these circumstances, there is:
Legally, when is rent due if there is no specific agreement?
End of the month
If a buyer wants early possession of the property before escrow closes, which document should be used?
Interim Occupancy Agreement
The Subdivided Lands Law protects buyer from all of the following, except:
Which disclosure shows that a broker discussed market conditions with a buyer?
Market Conditions Advisory
The National Association of REALTORS® defines a _____ property as "a property that has been psychologically impacted by an event which occurred, or was suspected to have occurred, on the property, such event being one that has no physical impact of any kind."
Anyone who is found guilty of violating the Subdivided Lands Law is punishable by a maximum fine of _____.
A document disclosing all important facts about a property, its marketing, and the financing of the subdivision is called a(n) _____ report.
Which of the following is a "red flag?"
Cracks in the cement leading to and around a swimming pool
In which of the following documents would a seller most likely reveal the existence of air traffic noise above property that is being sold?
Real estate transfer disclosure statement
What did the Carbon Monoxide Poisoning Prevention Act of 2010 require?
CO detectors must be installed in all dwelling units with a fossil fuel burning heater, appliance, or fireplace; or that have an attached garage.
What must occur in order to comply with laws regarding braced water heaters?
The seller must provide certification of having the water heater(s) braced, anchored, or strapped in place.
Which of the following is true regarding a pest control inspection?
The law does not require a structural pest control inspection to be performed prior to transfer.
A special assessment would be imposed to pay for which of the following?
Neighborhood street lights
Which of the following is not a title insurance policy?
is not a policy of title insurance but is only an offer to issue a policy of title insurance in the future for a specific fee.
Documentary transfer tax is usually based on _____ per $1,000 of the purchase price.
Which of the following is the escrow holder?
Lenders require escrow holders to verify the presence of:
For property tax purposes, how much is the California homeowner's exemption?
A lot, block, and tract system can be called all of the following, except a:
landmarks and unique identifier system.
Other names for the lot, block, and tract system are
lot and block system, subdivision system, or recorded map system
Which of the following became the measure for assessing property in California?
Which of the following may license an escrow company?
Commissioner of Business Oversight
A new roof, swimming pool, or other cosmetic addition to property is known as:
A loan that has no security for payment of the debt is a(n):
What is the clause in a loan document describing certain events that would cause the entire loan to be due?
allows a noteholder to call the entire note due, on occurrence of a specific event, such as default in payment, taxes or insurance, or sale of the property
Financing for new construction contains all of the following, except:
one loan that finances the construction and completion phase.
Construction financing comprises two phases
the construction phase and completion
is a short-term loan to finance construction costs, such as the building of a new home
Mutual mortgage insurance on F.H.A. loans:
protects the lender in the event of default.
The lender is protected, in case of foreclosure, by charging the borrower a fee for an insurance policy called
Mutual Mortgage Insurance (MMI).
The evidence of a debt that is recorded after a first trust deed is a(n):
junior trust deed.
The cost of borrowing money is:
When is a blanket loan typically used?
For housing tracts or construction loans
Which of the following is not one of the functions of the FHA?
Making discounted loans to qualified borrowers
Functions of FHA Loan
Promoting home ownership
Setting minimum property requirements
A foreclosure's reinstatement period is until _____ business days before the date of the trustee's sale.
Which of the following is not a characteristic of a promissory note?
It requires a mortgage for validity.
Characteristics of a promissory note
It is signed by the borrower.
It is a written promise to pay.
It is payable at a definite time.
_____ is a federal law that requires disclosure to borrowers of closing costs and procedures by means of a pamphlet and forms approved by the United States Department of Housing and Urban Development (HUD).
Which of the following is not one of the credit reporting agencies used by lenders to research a borrower's credit record?
Which Act established the Consumer Financial Protection Bureau and authorized it to regulate consumer financial products and enforce several consumer protection laws?
Which of the following activities is not commonly performed by a mortgage broker?
Mortgage brokers underwrite loans and fund them at closing.
The Seller Financing Disclosure Statement only applies to a(n):
arranger of credit.
Which economic stimulation tool of the Federal Reserve involves purchasing and selling government securities?
Regulation Z implements the:
_____ is the process of evaluating a borrower's risk factors before the lender will make a loan
Equal Credit Opportunity Act.
a United States law (codified at 15 U.S.C. § 1691 et seq.), enacted in 1974, that makes it unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital ...
All consumers are given an equal chance to obtain credit through the:
Equal Credit Opportunity Act.
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