Real Estate

Front 1

Sue is 17 years old. She can contract as an adult if she is

Back 1

Emancipated

Front 2

Fred owns and runs his one-man shoe repair shop as a

Back 2

sole proprietor

Front 3

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

Back 3

actual fraud & undue influence

Front 4

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

Back 4

Enforceble

Front 5

Can Broker Bob enforce an oral listing agreement?

Back 5

No

Front 6

When both parties agree to cancel a contract they effect a

Back 6

Recission

Front 7

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)

Back 7

Agreement rescinding the purchase contract

Front 8

Verification

Back 8

is not a way to terminate a contract

Front 9

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

Back 9

Discharged because performance is impossible

Front 10

If Janes performance of her sales contract becomes economically impractical, she should

Back 10

Ask that the contract be terminated

Front 11

Failure to perform a contract is a

Back 11

Breach

Front 12

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?

Back 12

George received a court order for specific performance of the contract

Front 13

The time period in which a lawsuit can be brought is set by the

Back 13

Statute of Limitations

Front 14

The Statute of Limitations for an action based on a written real estate contract is

Back 14

4 years

Front 15

The rule for preprinted contracts is

Back 15

Handwriting takes precedence over both typing and printing

Front 16

A property description including the words "250 acres, more or less" is

Back 16

Sufficient if reasonable close to the exact acreage

Front 17

A well-drafted real estate purchase contract will include provision for

Back 17

(All of the above) Buyer's possession of the property, Financing terms, proration of property expenses

Front 18

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

Back 18

FIRPTA

Front 19

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?

Back 19

3

Front 20

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?

Back 20

No

Front 21

$450,000 house can be purchased with a $90,000 down payment using the principle of

Back 21

Leveraging

Front 22

The Fed can increase or decrease the amount of money in circulation by

Back 22

Establishig, the discount rate, raising/lowering reserve requirements, buying & selling government securities...but not issuing government securities

Front 23

Federal savings and loan activites are overseen by

Back 23

The Offce of Thrift Supervision

Front 24

California usury laws apply primarily to

Back 24

Private lenders

Front 25

Real Estate is hypothecated by use of a

Back 25

Security instrument

Front 26

To be a negotiable instrument, a promissory note must be

Back 26

A promise to pay money to the bearer

Front 27

A holder in due course must take a negotiable instrument

Back 27

Without notice of any defense against its enforcement

Front 28

In a mortgage, the lender is the

Back 28

Mortgagee

Front 29

The highest bidder at a judicial foreclosure receives a

Back 29

Certificate of sale

Front 30

In a deed of trust, the borrower is the

Back 30

Trustor

Front 31

In a deed of trust, the lender is the

Back 31

Beneficiary

Front 32

The 1st step in bringing about a trustee's sale is to prepare a

Back 32

Declaration of default

Front 33

There is no right of redemption following a

Back 33

Trustee's sale

Front 34

An ARM is a

Back 34

Mortgage in which the interest rate changes

Front 35

Most adjustabe-rate loans are

Back 35

Assumable

Front 36

Interest rate and payment can change every 3-5 years in a

Back 36

Renegotiable-rate mortgage

Front 37

A Real Estate broker who arranges loans no more than 5 times a year

Back 37

Is not subject to Regulation Z

Front 38

RESPA covers the

Back 38

Uniform Settlement States

Front 39

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

Back 39

John bought the property subject to the loan

Front 40

A lender that discriminates against a loan applicant because of race has violated the

Back 40

Equal Credit Opportunity Act

Front 41

A California veteran might have a home loan insured by

Back 41

FHA

Front 42

FHA appraisal value is used to set the upper limit of the

Back 42

loan amount

Front 43

In addition to a monthly charge, FHA mortgage insurance includes a 1 time payment that is

Back 43

1.5% of the loan amount

Front 44

For an existing structure, the maximum FHA mortgage loan term is

Back 44

30 years

Front 45

1 discount point will increase a lender's effective yield by approximately

Back 45

1/8%

Front 46

4 Discount points will increase a lender's effective yield by approximately

Back 46

%1/5

Front 47

On FHA loans, seller contributions, including discounts and closing costs, cannot exceed

Back 47

6% of acquisition cost

Front 48

5 different graduated payment mortgages are approved by

Back 48

FHA

Front 49

A veteran can have a home loan guaranteed by

Back 49

VA

Front 50

The Certificate of Reasonable Value sets the upper limit of value for the

Back 50

Guarantee

Front 51

Using the benefits of the GI Bill, a veteran cannot buy a

Back 51

Farm

Front 52

A veteran can be given a home loan on property owned by

Back 52

Cal-Vet

Front 53

A Cal-Vet purchase loan must be applied for

Back 53

Before a contract of sale is sign

Front 54

Cal-Vet loans are not available for

Back 54

Commercial property

Front 55

Many seller-financed purchases are examples of

Back 55

Creative financing

Front 56

An installment sales contract also is called a

Back 56

Land contract

Front 57

In a sale-leaseback

Back 57

Both land and buildings can be sold

Front 58

The secondary mortgage market does not deal in

Back 58

Issuing loans

Front 59

Which of the following is not a part of the primary mortgage market

Back 59

GNMA

Front 60

GNMA securities are not backed by

Back 60

Cal-vET LOANS