May 4, 2023/in Business and Finance Assignment Help /by admin
51. The individual conveying real estate is called the ________ and the individual acquiring title is called the ________.
a) grantor; grantee
b) grantee; grantor
c) grantor; beneficiary
d) trustee; beneficiary
52. To be considered capable at the time of signing a deed, a grantor needs to be of sound mind, possess their civil rights and:
a) be a permanent resident of California.
b) own the item being granted free of all liens.
c) hold a degree from a four year university.
d) be an adult at least 18 years of age.
53. To convey any interest in real estate without an assurance the individual holds that interest conveyed, a(n) __________ deed is used.
a) grant deed
b) quitclaim deed
c) abstract of title
d) implied covenant
54. A(n) ________ is valid and enforceable after delivery until it is challenged due to a defect and declared invalid by court order.
a) void ab initio deed
b) void deed
c) voidable deed
d) implied deed
55. No matter how vested, all property acquired jointly by a married couple is presumed to be:
a) public property.
b) separate property.
c) community property.
d) property held under a tenancy in common.
56. Lis pendens means Notice of Litigation or:
a) Notice of Arbitration.
b) Notice of Delinquency.
c) Notice of Mediation.
d) Notice of Pending Action.
57. A(n) ____________ discloses the current vesting and encumbrances which may be reflected on the public record affecting a property’s title.
a) preliminary title report
b) abstract of title
c) property profile
d) natural hazard disclosure
58. __________ refers to a form of indemnity insurance issued by a title insurance company which holds harmless the named insureds against monetary loss caused by an encumbrance not listed in Schedule B of the policy and not known by the insured when the policy was issued.
a) Title insurance
b) Home warranty
c) Private mortgage insurance (PMI)
d) Renters’ insurance
59. The _________ dollar amount of equity in a homeowner’s dwelling has priority on title over most judgment liens and some government liens.
b) interest deductible
c) capitalization rate
d) loan-to-value (LTV) ratio
60. Within three business days following a lender’s receipt of a buyer’s mortgage application, the lender provides the buyer a(n) ___________, estimating the buyer’s settlement charges and mortgage terms.
a) Good Faith Estimate (GFE)
b) Uniform Residential Loan Application
c) HUD-1 Closing Statement
d) Loan Estimate
61. The _________ prepared by the buyer with the assistance of their transaction agent (TA) provides the lender with necessary information about the buyer and the property which will secure the mortgage.
a) Loan Estimate
b) Closing Disclosure
c) balance sheet
d) Uniform Residential Loan Application
62. The ________ insures mortgages with less demanding down payment requirements and with high loan-to-value ratios (LTVs) than compared to mortgages originated by most conventional lenders.
a) Truth-in-Lending Act
b) Federal Housing Administration (FHA)
c) MGIC Investment Corp.
d) Real Estate Settlement Procedures Act (RESPA)
63. An arrangement in which the seller carries back a note executed by the buyer to evidence a debt owed for the purchase of the seller’s property is referred to as:
a) a land sales contract.
b) seller financing.
c) a piggyback loan.
d) adverse possession.
64. The amount of interest a private, non-exempt lender can charge is controlled by:
a) Fair Housing Law.
b) the Lender Code of Ethics.
c) usury law.
d) the California Bureau of Real Estate (CalBRE).
65. Default mortgage insurance coverage provided by private insurers for conventional loans with loan-to-value ratios higher than 80% is called:
a) homeowners’ insurance.
b) renters’ insurance.
c) private mortgage insurance (PMI).
d) American Land Title Association (ALTA) insurance.
66. The ________ is used for debt obligations with constant periodic repayments in any amount and frequency negotiated.
a) straight note
b) installment note
c) unsecured note
d) partial note
67. Notes which call for periodic adjustments to the interest rate and the amount of scheduled payments are known as:
a) fixed-rate notes.
b) adjustable rate notes (ARMs).
c) all-inclusive trust deeds (AITDs).
d) All of the above.
68. A(n) ________ is an additional charge levied by a lender when an owner pays off the principal on a debt before it is due.
a) late fee
b) balloon payment
c) prepayment penalty
d) grace period
69. 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:
a) private mortgage insurance (PMI) premium.
b) balloon payment.
c) penultimate payment.
d) due-on clause.
70. The preferential security device used to impose a lien on real estate is the:
a) trust deed.
b) estoppel certificate.
c) lis pendens.
d) quitclaim deed.
71. When the due-on clause is triggered, the lender may recast or call the loan, also known as:
b) waiver by proxy.
72. The due-on clause is triggered by any conveyance of equitable ownership of real estate, such as a(n):
a) all-inclusive trust deed (AITD).
b) lease option sale.
c) land sales contract.
d) All of the above.
73. 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.
a) power-of-sale provision
b) arbitration clause
c) indemnification provision
d) liquidated damages clause
74. ______________ occurs when an owner-in-foreclosure pays all sums due under the note and trust deed and reimburses the lender’s costs of foreclosure, prior to completion of the trustee’s sale.
a) Redemption of the property in foreclosure
b) Subordination of the lender’s interest
c) Waste of the property
d) None of the above.
75. 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.
a) one month
b) one week
c) one year
d) two years
76. A trustee’s sale is considered final and complete:
a) when the lender signs the certificate of sale.
b) when the trustee records a Notice of Default (NOD).
c) when a beneficiary makes a bid.
d) on the trustee’s acceptance of the last and highest bid.
77. A trust deed holder may foreclose on a property by:
a) nonjudicial foreclosure under the power-of-sale provision in the trust deed.
b) judicial foreclosure under mortgage law.
c) Either a. or b.
d) Neither a. nor b.
78. A(n) ________ is issued to the successful bidder on the completion of a judicial sale.
a) Notice of Trustee’s Sale (NOTS)
b) certificate of sale
c) fair value hearing certificate
d) Sheriff’s Deed
79. To qualify home improvement loans for interest deductions, the new improvements must be substantial, meaning they:
a) prolong the property’s useful life.
b) adapt the property to residential use.
c) add to the property’s market value.
d) Any of the above.
80. The fee charged by a lender as prepaid interest which reduces the note rate on the mortgage is known as a:
a) usury limitation.
b) substitute security.
d) final/balloon payment.
81. A broker’s primary objective as a property manager is to oversee the maintenance of rental property, fill vacancies with suitable tenants and:
a) live on the property and conduct structural repairs.
b) find tenants to purchase the property.
c) regularly landscape the property.
d) collect rent and account to the landlord.
82. A(n) __________ runs for an indefinite period of time and renews monthly on the same terms until terminated.
a) fixed-term lease
c) month-to-month rental agreement
d) continuing nuisance
83. To be enforceable under the statute of frauds, a lease agreement exceeding __________ needs to be in writing to be enforceable.
a) one year
b) ninety days
c) nine months
d) six months
84. 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.
a) net lease
b) gross lease
c) full-service gross lease
d) triple net lease
85. 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):
a) 30-Day Notice of Change in Rental Terms.
b) 60-Day Notice to Pay Rent or Quit.
c) 90-Day Notice to Vacate.
d) Three-Day Notice to Quit.
86. Security against a tenant’s default on obligations agreed to in the rental or lease agreement is provided by the:
a) Real Estate Recovery Fund.
b) security deposit.
c) personal landlord’s savings account.
d) trust fund.
87. As a matter of public policy, residential security deposits are limited to:
a) two months’ rent for unfurnished units and three months’ rent for furnished units.
b) two months’ rent for unfurnished units and four months’ rent for furnished units.
c) one month’s rent for unfurnished units and two months’ rent for furnished units.
d) three months’ rent for unfurnished units and four months’ rent for furnished units.
88. A landlord may serve a __________ to require the tenant to pay all amounts due or vacate the premises.
a) 30-Day Notice to Vacate
b) Three-Day Notice of Change in Rental Terms
c) Three-Day Notice to Pay Rent or Quit
d) 90-Day Notice to Vacate
89. Failure to pay late charges, interest penalties, bad check charges or security deposits are classified as:
a) incurable breaches.
b) material breaches.
c) nonmonetary breaches.
d) minor breaches.
90. The agreed-to time period following the due date during which rent may be paid without incurring a late charge is referred to as the:
a) security deposit.
b) grace period.
c) waterbed addendum.
d) late charge.
91. Statutory breaches, being incurable, include an unauthorized subletting of the premises, maintaining a nuisance on the premises or the tenant’s:
a) failure to keep the property clean.
b) failure to pay rent prior to expiration of the grace period.
c) unlawful use of the premises.
d) failure to significantly improve the premises.
92. A notice to quit may be served when the use of a property becomes unlawful, such as when the use:
a) adds to the curb appeal of the property.
b) threatens the physical safety of the property.
c) facilitates the landlord’s continued receipt of rent.
d) violates maritime law.
93. Waste to a property occurs when a:
a) tenant neglects the premises and impairs its value by failing to maintain it as agreed.
b) landlord replaces the carpets in a unit before needing to.
c) subtenant vacates without the landlord’s consent.
d) property manager doesn’t get bids from multiple contractors when intending to renovate a property.
94. An owner-by-foreclosure who purchases a residential property at a trustee’s sale for investment purposes terminates an existing residential tenancy by serving a:
a) 120-day Notice to Vacate.
b) 90-day Notice to Vacate.
c) 60-day Notice to Vacate.
d) 30-day Notice to Vacate.
95. When a landlord fails to comply with housing code standards that materially affect the health and safety of the occupants, the landlord has breached the:
a) implied warranty of habitability.
b) terms of the sublease.
c) 60-day Notice to Fix Property or Quit.
d) statute of frauds.
96. When criminal activity is ___________, the landlord has a duty to take reasonable measures to prevent harm to persons on the property from future similar criminal activities.
a) reasonably foreseeable
97. Individuals employed by municipalities to ensure properties comply with local building codes, ordinances, zoning regulations and contract specifications are referred to as:
b) home energy auditors.
c) escrow officers.
d) building inspectors.
98. ____________ refers to the placement of a house upon its lot.
a) Physical location
d) Floor plan
99. A(n) ___________ sets forth acceptable land uses within a jurisdiction and governs the growth of a municipality.
a) general plan
b) policy of title insurance
c) subdivision ordinance
d) condition, covenant and restriction (CC&R)
100. The California Energy Commission designed and implemented the __________ program to include a uniform rating scheme for the systematic delivery of home energy ratings to homeowners.
a) California Housing Finance Agency (CalHFA)
b) Home Affordable Modification Program (HAMP)
c) California Home Energy Rating System (HERS)
d) California Department of Veterans Affairs (CalVet)
admin2023-05-04 18:47:062023-11-11 13:04:55The individual conveying real estate is called the ________ and the individual acquiring title is called the ________.
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