finance real estate

The type of lender that makes large loans on commercial properties, buys loans from mortgage companies, and invests in government-insured loans is

Choose one answer.

a. a mutual savings bank.

b. an insurance company.

c. a commercial bank.

d. a mortgage company.

California law exempts from usury laws any loan secured by real property and arranged by any of the following EXCEPT

Choose one answer.

a. a bank.

b. a savings and loan.

c. a real estate broker.

d. an insurance company.

contract that has been established by the conduct of the parties without a specific written agreement is

Choose one answer.

a. an expressed contract.

b. a quasi contract.

c. a unilateral contract.

d. an implied contract.

In California, escrow procedures throughout the state

Choose one answer.

a. are virtually the same.

b. may vary.

c. are handled by brokers.

d. are mandated by state law.

Which of the following is covered by a standard policy of title insurance?

Choose one answer.

a. Forgery in the deed

b. Mining claims

c. Zoning changes

d. Tenant occupancy

One of the main responsibilities of the seller is to

Choose one answer.

a. order fire insurance.

b. obtain a new loan.

c. provide lien releases.

d. review the title report.

A house is sold for $400,000. An existing first trust deed of $299,975 is assumed by the purchaser. What amount of documentary transfer tax may be charged?

Choose one answer.

a. $110.03
	b. $110.55
	c. $220.03
d. $220.55

Which of the following allows discount points to be paid, with no preset limit, even on a refinancing?

Choose one answer.

a. FHA

b. CalVet

c. Fannie Mae

d. PMI

The Unruh Civil Rights Act forbids discrimination as to

Choose one answer.

a. credit history.

b. education.

c. amount of income.

d. sex.

Which of the following is NOT required of a valid contract?

Choose one answer.

a. Legal capacity

b. Offer and acceptance

c. Notarization

d. Lawful object

FHA-insured loan amounts are

Choose one answer.

a. subject to change.

b. always the same.

c. fixed throughout the United States.

d. for first-time buyers only.

A house is sold for $400,000 in Los Angeles. An existing first trust deed of $299,975 is assumed by the purchaser. What amount of documentary transfer tax may be charged?

Choose one answer.

b. $110.55

c. $220.03

a. $565.05

d. $454.50

Real estate loans generally include a promissory note and a

Choose one answer.

	a. purchase contract.
	b. settlement statement.
	c. security instrument.
	d. quitclaim deed.

Real estate loans generally include a promissory note and a
Choose one answer.

a. purchase contract.

b. settlement statement.

c. security instrument.

d. quitclaim deed.

Ginnie Mae provides a secondary market for

Choose one answer.

a. conventional loans.

b. hard money lenders.

c. private lenders.

d. government-backed mortgages.

Property used in a trade or business, or held for investment or personal pleasure, is considered

Choose one answer.

a. real property.

b. a capital asset.

c. intangible property.

d. personal property.

The repayment of a loan that is made by installments of interest only with the principal due in a lump sum is

Choose one answer.

a. a straight loan.

b. a hard money loan.

c. an amortized loan.

d. a mortgage loan.

Proposition 13 amended the California Constitution to establish the

Choose one answer.

a. maximum annual real property tax.

b. minimum annual real property tax.

c. documentary transfer tax.

d. Homeowner Assistance Program.

A buyer who uses a small initial cash outlay to finance the purchase of a property worth many times that amount is using

Choose one answer.

a. equity sharing.

b. leverage.

c. liquidity.

d. interest buydown.

In general, the maximum annual real property tax in California is

Choose one answer.

a. determined by each county.

b. the amount of equity.

c. 1 percent of assessed value plus any allowable local assessments.

d. 3 percent of assessed value plus any Mello-Roos indebtedness.

The right to buy property at some time in the future is

Choose one answer.

a. a listing agreement.

b. a purchase agreement.

c. a lease.

d. an option.

The tax collector can sell property at public auction if it is not redeemed by payment of taxes on it within

Choose one answer.

a. one year.

b. five years.

c. seven years.

d. nine years.

The preferred security instrument in California is the

Choose one answer.

a. mortgage.

b. quitclaim deed.

c. deed of trust.

d. grant deed.

A unique feature of a CalVet loan is that the interest rate

Choose one answer.

a. may change annually.

b. are fixed.

c. is always higher than market rates.

d. is always lower than market rates.

The cost of using money BEST describes

Choose one answer.

a. equity sharing.

b. interest.

c. credit.

d. capital.

The cost of using money BEST describes
Choose one answer.

a. equity sharing.

b. interest.

c. credit.

d. capital.

Regulation Z covers which of the following transactions?

Choose one answer.

a. Business loan

b. Agricultural loan

c. Commercial loan

d. Home mortgage loan

An escrow officer should remain impartial and never

Choose one answer.

a. point out an obvious discrepancy in the documents.

b. pay full attention to the transaction.

c. respond to any questions.

d. give advice.

What does the escrow officer file when the buyer and seller are unable to resolve a dispute that stops the closing of escrow?

Choose one answer.

a. Interpleader action

b. Writ of possession

c. Quiet title action

d. Estoppel agreement

A house is sold for $100,000 in a rural area of California. An existing first trust deed of $99,975 is assumed by the purchaser. What amount of documentary transfer tax may be charged?

Choose one answer.

a. $110.03

b. $110.55

c. $220.03

d. $0

The seven members of the Board of Governors of the Federal Reserve Bank serve 14-year terms and are appointed by the

Choose one answer.

a. President of the U.S.

b. U.S. Senate.

c. Real Estate Commissioner.

d. Secretary of the Treasury.

Title insurance is paid for in a single payment and responsibility for payment is

Choose one answer.

a. negotiable.

b. not negotiable.

c. always the seller’s.

d. always the buyer’s.

Under the present GI Bill of Rights, if a veteran has previously used a VA loan, the veteran’s entitlement can be increased to the full amount, if

Choose one answer.

a. the veteran remarries.

b. the lender is released from liability on the original loan.

c. the property is reappraised at less than its original market value.

d. any loss suffered by the VA has been repaid in full.

Historically, a leasehold was considered to be

Choose one answer.

a. real property.

b. a life estate.

c. personal property.

d. an estate for years.

The duties of an escrow officer handling the sale of a residential property do NOT include the preparation of

Choose one answer.

a. necessary reports.

b. tax returns.

c. calculations and prorations.

d. settlement statements.

By borrowing money against the value of the property, and with the expectation that the property’s value will increase over time, homeowners can benefit from all of the following EXCEPT

Choose one answer.

a. present use.

b. forced savings.

c. future appreciation.

d. being debt-free.

Which of the following requires escrow licensing by the Department of Corporations?

Choose one answer.

a. Real estate broker

b. Banks

c. Independent escrow agent

d. Title insurance companies

The maximum amount of security deposit a landlord can collect in advance for a furnished residential apartment is

Choose one answer.

a. one month’s rent.

b. two months’ rent.

c. three months’ rent.

d. any amount the landlord wants.

When performing escrow duties, the escrow agent should ALWAYS

Choose one answer.

a. offer advice.

b. remain impartial.

c. provide legal expertise.

d. explain terms and conditions.

When both parties to a contract agree to substitute a new contract for the present one, this is known as a

Choose one answer.

a. release.

b. novation.

c. reformation.

d. rescission.

When property is hypothecated to secure the payment of a debt or obligation, a lien on the property is given by the

Choose one answer.

a. mortgagee.

b. mortgagor.

c. lender.

d. trustee.

A house is sold for $400,000 in Los Angeles. An existing first trust deed of $199,975 is assumed by the purchaser. What amount of documentary transfer tax may be charged?”

Choose one answer.

a. $110.03

b. $110.55

c. $1125.05

d. $454.50

In California, the person who actually performs escrow duties is called

Choose one answer.

a. a real estate broker.

b. an escrow secretary.

c. a title officer.

d. an escrow holder or agent.

Escrow officers base their prorations on

Choose one answer.

a. a full calendar year.

b. business days.

c. a 30-day month.

d. a monthly basis.

A landlord cannot make a deduction from a security deposit for

Choose one answer.

a. a cleaning fee.

b. damage to the property.

c. delinquent rent.

d. nonrefundable fees.

A well-drafted purchase contract will make reference to all of the following, if applicable, EXCEPT

Choose one answer.

a. location in a flood hazard zone.

b. presence of a smoke detector.

c. location in a seismic hazards zone.

d. seller’s purchase price.

Negotiability of real estate commissions is addressed in the

Choose one answer.

a. Civil Code.

b. Health and Safety Code.

c. Business and Professions Code.

d. Government Code.

FHA periodically adjusts maximum insured loan amounts depending upon

Choose one answer.

a. state law.

b. federal law.

c. policies set by individual lenders.

d. regional market conditions.

Unless there is a specific prohibition from doing so, a tenant can

Choose one answer.

a. transfer the leasehold interest by subletting or assignment.

b. abandon the leasehold interest without giving notice.

c. renew the lease at any time.

d. use the premises for any purpose.

Unless stated in the rental agreement, a tenant does NOT have a duty to

Choose one answer.

a. pay rent.

b. dispose of waste.

c. keep the premises clean.

The second property tax installment becomes delinquent on

Choose one answer.

a. November 1.

b. December 10.

c. February 1.

d. April 10.