| A | B |
|---|
| The Four Essential Elements: | STUD) SCARCITY: The availability of a similar type of property in the open market; TRANSFERABILITY: The ability of the property to be transferred; UTILITY: The ability of the property to fulfill a particular need or purpose in the open market; DEMAND: The desire for a such type of property in the open market; |
| A mortgage is | security for a promissory note |
| A mechanic's lien | requires verification and recording to be valid. |
| To create an option contract | the optionee must have provided consideration to the optionor for the unilateral contract that keeps the option open |
| A claim or liability attached to a property is called: | an encumberance |
| The appraiser is the most interested in: | the date the contract was signed |
| A deed: | The Grantor must be Legally Competent, it must be Delivered and accepted and Contain a Granting or Action Clause. A deed does NOT need to be Acknowledged to be valid |
| A voidable Contract is: | valid until it is rescinded. |
| Which of the following deeds would least likely contain implied covenants by the grantor? | quitclaim deed |
| The four legal essentials in any contract are: | (1) consideration, (2) an offer and acceptance (i.e., a meeting of the minds), (3) a lawful object, and (4) competent parties. |
| The due-on-sale clause says: | that the balance must be paid in full if the property is sold |
| the Rumford Act provides protection against: | discrimination in housing by landlords, apartment owners, housing developers, mortgage companies and real estate firms. |
| The gross rent multiplier (GRM) is calculated by | dividing the monthly or annual gross rent into the selling price of the property. |
| To determine property taxes on a residence: | assess land and improvements separately, then multiply the total by one tax rate. |
| In California, deaths in the house only need to be disclosed if | less than 3 years ago |
| The economic life of an investment can be described as: | the time over which value generated exceeds cost of operation. |
| the higher the capitalization rate: | the higher the risk |
| IRS tax laws allow homeowners to add | the cost of improvements that increase the value of a home to the cost basis of that home. The improvements depreciate |
| Adjustments are made ONLY to the | comparable property |
| A reduction certificate is a | document signed by a lender stating the outstanding amount on a mortgage loan. |
| CA property taxes are due: | Nov. 1; become delinquent on Dec 10 |
| The main purpose of "RESPA" (Real Estate Settlement Procedures Act) is to: | To provide consumers with enough information to enable them to shop for settlement services. |
| Preliminary Title Report should show | the seller is the trustor of the property and should show if there are mechanics liens that need to be removed. |
| in Community Property IT IS ASSUMED | that when the deed designates the co-owners of the property as "husband and wife" that Community Property applies |
| discounting is | selling a note for an amount that is less than what is owed. |
| When enforcing the Subdivision Lands Law, the Real Estate Commissioner is protecting purchasers from: | Fraud and misrepresentation in the marketing and financing of subdivisions. |
| A feature found in a comparable property that is not present in the subject property will result in: | a reduction adjustment to the comparable's selling price. |
