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60 Cards in this Set

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  • Back
Sue is 17 years old. She can contract as an adult if she is
Emancipated
Fred owns and runs his one-man shoe repair shop as a
sole proprietor
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
actual fraud & undue influence
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
Enforceble
Can Broker Bob enforce an oral listing agreement?
No
When both parties agree to cancel a contract they effect a
Recission
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)
Agreement rescinding the purchase contract
Verification
is not a way to terminate a contract
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
Discharged because performance is impossible
If Janes performance of her sales contract becomes economically impractical, she should
Ask that the contract be terminated
Failure to perform a contract is a
Breach
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?
George received a court order for specific performance of the contract
The time period in which a lawsuit can be brought is set by the
Statute of Limitations
The Statute of Limitations for an action based on a written real estate contract is
4 years
The rule for preprinted contracts is
Handwriting takes precedence over both typing and printing
A property description including the words "250 acres, more or less" is
Sufficient if reasonable close to the exact acreage
A well-drafted real estate purchase contract will include provision for
(All of the above) Buyer's possession of the property, Financing terms, proration of property expenses
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
FIRPTA
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?
3
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?
No
$450,000 house can be purchased with a $90,000 down payment using the principle of
Leveraging
The Fed can increase or decrease the amount of money in circulation by
Establishig, the discount rate, raising/lowering reserve requirements, buying & selling government securities...but not issuing government securities
Federal savings and loan activites are overseen by
The Offce of Thrift Supervision
California usury laws apply primarily to
Private lenders
Real Estate is hypothecated by use of a
Security instrument
To be a negotiable instrument, a promissory note must be
A promise to pay money to the bearer
A holder in due course must take a negotiable instrument
Without notice of any defense against its enforcement
In a mortgage, the lender is the
Mortgagee
The highest bidder at a judicial foreclosure receives a
Certificate of sale
In a deed of trust, the borrower is the
Trustor
In a deed of trust, the lender is the
Beneficiary
The 1st step in bringing about a trustee's sale is to prepare a
Declaration of default
There is no right of redemption following a
Trustee's sale
An ARM is a
Mortgage in which the interest rate changes
Most adjustabe-rate loans are
Assumable
Interest rate and payment can change every 3-5 years in a
Renegotiable-rate mortgage
A Real Estate broker who arranges loans no more than 5 times a year
Is not subject to Regulation Z
RESPA covers the
Uniform Settlement States
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
John bought the property subject to the loan
A lender that discriminates against a loan applicant because of race has violated the
Equal Credit Opportunity Act
A California veteran might have a home loan insured by
FHA
FHA appraisal value is used to set the upper limit of the
loan amount
In addition to a monthly charge, FHA mortgage insurance includes a 1 time payment that is
1.5% of the loan amount
For an existing structure, the maximum FHA mortgage loan term is
30 years
1 discount point will increase a lender's effective yield by approximately
1/8%
4 Discount points will increase a lender's effective yield by approximately
%1/5
On FHA loans, seller contributions, including discounts and closing costs, cannot exceed
6% of acquisition cost
5 different graduated payment mortgages are approved by
FHA
A veteran can have a home loan guaranteed by
VA
The Certificate of Reasonable Value sets the upper limit of value for the
Guarantee
Using the benefits of the GI Bill, a veteran cannot buy a
Farm
A veteran can be given a home loan on property owned by
Cal-Vet
A Cal-Vet purchase loan must be applied for
Before a contract of sale is sign
Cal-Vet loans are not available for
Commercial property
Many seller-financed purchases are examples of
Creative financing
An installment sales contract also is called a
Land contract
In a sale-leaseback
Both land and buildings can be sold
The secondary mortgage market does not deal in
Issuing loans
Which of the following is not a part of the primary mortgage market
GNMA
GNMA securities are not backed by
Cal-vET LOANS