Real Estate California Exam Prep

Front 1

Defeasance Clause

Back 1

A provision in a mortgage contract which releases the property from the encumbrance when the obligation is fully paid is:

Front 2

Severance

Back 2

Real property can be converted into personal property through __________

Front 3

Easement by prescription

Back 3

An easement created when a person has been using a roadway without permission for over 20 years is called an _________

Front 4

The Income Capitalization Approach

Back 4

A valuation method appraisers and real estate investors use to estimate the value of income producing real estate. It is based upon the premise of anticipation i.e., the expectation of future benefits. This method of valuation relates value to two things: [1] the "market rent" that a property can be expected to earn and, [2] the "reversion" (resale) when a property is sold

Front 5

Direct capitalization

Back 5

Typically involves the analysis of a single years net income (or average of several years income). The resultant "NOI" is capitalized by an overall capitalization rate to derive value

Front 6

Yield capitalization

Back 6

Requires explicit projects of income, holding period, and property reversion and generally considers the income streams for several years

Front 7

Negligent misrepresentation

Back 7

Occurs when a broker should have known that a statement about a material fact was false

Front 8

Probate

Back 8

Administering the estate of a deceased person, resolving all claims and distributing the deceased person's property under a will. A probate court (surrogate court) decides the legal validity of a testator's will and grants its approval by granting probate to the executor

Front 9

1. LAND IS IMMOBILE
2. LAND IS INDESTRUCTIBLE
3. LAND IS UNIQUE

Back 9

Physical Characteristics of a Real Estate

Front 10

Estimate value

Back 10

Capitalization is the process by which annual net operating income is used to

Front 11

Accession

Back 11

Personal property be converted into real property through what process?

Front 12

A court order

Back 12

THE REAL ESTATE COMMISSION FOR A PROPERTY THAT IS IN PROBATE IS SET BY

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Devise

Back 13

A person died testate. After an extensive search, no additional heirs were found. The person's real property would transfer by

Front 14

Demise

Back 14

To give up the right of possession in a lease. (Yes, it also means someone has died.)

Front 15

Escheat

Back 15

Means the property reverts to the state when it is classified as abandoned. This may happen when someone dies intestate and no heirs can be found

Front 16

Lessor/Landlord

Back 16

THE REMEDY OF UNLAWFUL DETAINER ACTION IS USED BY OFFENDED

Front 17

A broker should have known that a statement about a material fact was false

Back 17

Negligent misrepresentation occurs when

Front 18

Quantity survey method

Back 18

One method an appraiser can use to determine a building reproduction cost involves the estimated cost of the raw materials needed to build the structure, plus labor and indirect cost. This is called the

Front 19

Gross sales of the lessee’s business

Back 19

IN A TYPICAL PERCENTAGE LEASE, RENT IS CALCULATED AS A PERCENTAGE OF

Front 20

Defeasance Clause

Back 20

A provision in a mortgage contract which releases the property from the encumbrance when the obligation is fully paid i

Front 21

Land Assembly

Back 21

It refers to the acquisition of lots varying ownership, through purchase on expropriation for the purpose ofplanned and rational development and socialized housing program without individual boundary restrictions

Front 22

For the grantor to deliver a deed

Back 22

WHEN LEGAL TITLE IS TRANSFERRED AS THE RESULT OF THE SALE OF REAL ESTATE ENCUMBERED BY A DEED OF TRUST, IT IS ALWAYS NECESSARY

Front 23

Land Banking

Back 23

The acquisition of land in advance of actual need based on present value for future planned development is referred to in the Urban Land Reform Law as

Front 24

Same as the borrower on the loan

Back 24

Trustor

Front 25

Cost Approach

Back 25

Makes use of a rate of investment return

Front 26

Regression

Back 26

THE VALUE OF THE BEST PROPERTY IN THE NEIGHBORHOOD WILL BE ADVERSELY AFFECTED BY THE PRESENCE OF COMPARATIVELY SUBSTANDARD PROPERTY”, IS A STATEMENT RELATING TO VALUE AND IS KNOWN AS THE PRINCIPLE OF

Front 27

Inundation, sheet overflow, ponding of local storm water

Back 27

A FLOOD HAZARD AND DRAINAGE REPORT MAY BE REQUIRED IN THE FILING FOR THE SUBDIVISION FINAL PUBLIC REPORT. IF A HAZARD EXISTS, THE DEGREE OF HAZARD MUST BE REPORTED. THE THREE DEGREES OF FLOOD HAZARD ARE