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60 Cards in this Set
- Front
- Back
Sue is 17 years old. She can contract as an adult if she is
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Emancipated
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Fred owns and runs his one-man shoe repair shop as a
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sole proprietor
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Mary persuaded her elderly Aunt Agnes to buy a grossly overpriced condominium. Mary knew the price was too high, but she received a commission on the sale from the seller. Aunt Agnes may complain of
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actual fraud & undue influence
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The contract Haji Ababe accepted states a purchase price "as appraised on May 12, 2005, by Mike Morton, MAI" Based on this provision, the contract is
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Enforceble
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Can Broker Bob enforce an oral listing agreement?
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No
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When both parties agree to cancel a contract they effect a
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Recission
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Todd Miller made an offer for the Brown residence, and te Browns accepted Todd's offer. On reconsidering, Todd decides to back out of the deal. The Browns agree to let him do so. Todd and the Browns then sign a(n)
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Agreement rescinding the purchase contract
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Verification
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is not a way to terminate a contract
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Lonnie and Karen have a contract to buy the Santos house. Following a 4-day rainstorm, the Santos house was pushed off its foundation by a mud slide and is now resting about halfway over a ravine. The contract probably is
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Discharged because performance is impossible
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If Janes performance of her sales contract becomes economically impractical, she should
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Ask that the contract be terminated
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Failure to perform a contract is a
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Breach
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Fred signed a contract to sell his farm to george. Fred had second thoughts and refused to sell, but the sale went through anyway. How?
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George received a court order for specific performance of the contract
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The time period in which a lawsuit can be brought is set by the
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Statute of Limitations
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The Statute of Limitations for an action based on a written real estate contract is
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4 years
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The rule for preprinted contracts is
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Handwriting takes precedence over both typing and printing
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A property description including the words "250 acres, more or less" is
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Sufficient if reasonable close to the exact acreage
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A well-drafted real estate purchase contract will include provision for
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(All of the above) Buyer's possession of the property, Financing terms, proration of property expenses
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Unless the seller provides the necessary documentation, part of the proceeds of a sale of real property must be withheld for federal tax purposes as provided by
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FIRPTA
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Liquidated damages paid on default by the buyer of a single-family residence who intended to occupy the dwelling cannot exceed what percentage of the purchase price?
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3
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Haji Ababe receivved an offer of $610,000 for his house. His asking price is $635,000. Haji countered with $625,000. If the buyer rejects the counteroffer, may Haji accept the $610,000?
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No
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$450,000 house can be purchased with a $90,000 down payment using the principle of
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Leveraging
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The Fed can increase or decrease the amount of money in circulation by
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Establishig, the discount rate, raising/lowering reserve requirements, buying & selling government securities...but not issuing government securities
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Federal savings and loan activites are overseen by
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The Offce of Thrift Supervision
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California usury laws apply primarily to
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Private lenders
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Real Estate is hypothecated by use of a
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Security instrument
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To be a negotiable instrument, a promissory note must be
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A promise to pay money to the bearer
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A holder in due course must take a negotiable instrument
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Without notice of any defense against its enforcement
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In a mortgage, the lender is the
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Mortgagee
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The highest bidder at a judicial foreclosure receives a
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Certificate of sale
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In a deed of trust, the borrower is the
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Trustor
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In a deed of trust, the lender is the
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Beneficiary
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The 1st step in bringing about a trustee's sale is to prepare a
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Declaration of default
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There is no right of redemption following a
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Trustee's sale
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An ARM is a
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Mortgage in which the interest rate changes
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Most adjustabe-rate loans are
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Assumable
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Interest rate and payment can change every 3-5 years in a
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Renegotiable-rate mortgage
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A Real Estate broker who arranges loans no more than 5 times a year
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Is not subject to Regulation Z
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RESPA covers the
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Uniform Settlement States
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John Smith bought Whiteacre, and John is making the former owner's original loan payments. If John defaults, the seller will be obligated on the loan. It's true that
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John bought the property subject to the loan
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A lender that discriminates against a loan applicant because of race has violated the
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Equal Credit Opportunity Act
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A California veteran might have a home loan insured by
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FHA
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FHA appraisal value is used to set the upper limit of the
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loan amount
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In addition to a monthly charge, FHA mortgage insurance includes a 1 time payment that is
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1.5% of the loan amount
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For an existing structure, the maximum FHA mortgage loan term is
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30 years
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1 discount point will increase a lender's effective yield by approximately
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1/8%
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4 Discount points will increase a lender's effective yield by approximately
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%1/5
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On FHA loans, seller contributions, including discounts and closing costs, cannot exceed
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6% of acquisition cost
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5 different graduated payment mortgages are approved by
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FHA
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A veteran can have a home loan guaranteed by
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VA
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The Certificate of Reasonable Value sets the upper limit of value for the
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Guarantee
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Using the benefits of the GI Bill, a veteran cannot buy a
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Farm
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A veteran can be given a home loan on property owned by
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Cal-Vet
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A Cal-Vet purchase loan must be applied for
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Before a contract of sale is sign
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Cal-Vet loans are not available for
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Commercial property
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Many seller-financed purchases are examples of
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Creative financing
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An installment sales contract also is called a
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Land contract
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In a sale-leaseback
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Both land and buildings can be sold
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The secondary mortgage market does not deal in
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Issuing loans
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Which of the following is not a part of the primary mortgage market
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GNMA
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GNMA securities are not backed by
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Cal-vET LOANS
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