Broker Exam-Ca

Front 1

Is not following the Code of Ethics grounds for suspension, etc?

Back 1

No. Code of Ethics is set of VOLUNTARY rules established by National Association of Realtors.

Front 2

Canons of Ethics

Back 2

Are ethics laws of individual states and must be followed

Front 3

ACOLD

Back 3

FIDUCIARY RESPONSIBILITIES: Accountability, Care (reasonable,
obedience, loyalty, disclosure

Front 4

1968 Federal Fair Housing Act

Back 4

Race, Religion, color, sex, national origin, handicap and family status

Age - not protected class

Front 5

Sherman Anti-Trust Act

Back 5

Prohibits price and market fixing

Front 6

Federal Fair Housing Act aka
Civil Rights Act of 1968

Back 6

Family status is protected but marital status is only protected under Federal Fair Credit Act

Front 7

Blockbusting

Back 7

Illegal act whereby owners are encouraged to sell because minorities are moving into the neighborhood

Front 8

Steering

Back 8

Influencing buyers to a particular area based on race, religion or ethnicity

Front 9

Red lining

Back 9

Illegal practice of denying loans in certain areas based on race, religion

Front 10

Discrimination Act 1866

Back 10

Action must be brought within ONE year in Federal District Court

Front 11

Truth in Lending Act - additional disclosures

Back 11

Mention of monthly payment or interest rate requires additional disclosures such as interest rate, amount of down payment & terms

Front 12

Truth in Lending Act

Back 12

Regulates advertising disclosures

Front 13

HUD 1 Statement

Back 13

Required under RESPA - allows ONE day for review

Front 14

Jones v. Mayer

Back 14

Interpreted Civil Rights Act of 1866 -- NO exceptions to racial discrimination

Front 15

Federal Fair Housing Act

Back 15

File a complaint with HUD within ONE year or a lawsuit in federal court within TWO years

Front 16

Radon

Back 16

No federal law requiring mitigation -- it is only recommended over 4.0

Front 17

Vicarious Liability

Back 17

Client is held liable for actions of agent

Front 18

Lead Based Paint Disclosure

Back 18

Must be signed by buyer, seller and both agents as all are responsible for compliance

Front 19

Estoppel (Apparent Agency)

Back 19

Refers to apparent agency when a person allows that agent to be an agent of that person without actual authority

Front 20

Implication

Back 20

Used to create an agency's relationship by a party's conduct where no expressed agreement exists

Front 21

Special Agent vs. General Agent

Back 21

Has very limited authority (e.g. sale of house) -- general agent anything in particular area (e.g. manage property)

Front 22

How can agency relationship be terminated?

Back 22

Principal revokes agency
Agent renounces agency
Or by mutual agreement

Front 23

Exclusive Agency Agreement

Back 23

Broker will only get commission if it or other agency finds the buyer - if seller finds buyer - no commission to broker

Front 24

Open listing

Back 24

Seller not represented by any one broker -- any broker can sell and get commission

Front 25

Patent vs. Latent defect

Back 25

Patent defect - buyer can see
Latent defect - hidden defect

Front 26

Rescission

Back 26

Mutual agreement of parties to terminate contract

Front 27

Seller or Broker dies

Back 27

Listing is terminated

Front 28

Agent DIRECT fiduciary duty

Back 28

Is to its broker

Front 29

Covenant of seizin

Back 29

In a Warranty Deed - Seller states it is owner and has right to sell the property

Front 30

COLAN

Back 30

Common Law - agent's fiduciary obligations to client = Care, Obedience, Loyalty, Accountability and Notice

Front 31

Government Rectangular System

Back 31

Legal descriptions with townships and sections with longitude and latitude with divisions per 1/4, 1/2, 1/4 etc

Front 32

Meets and Bounds

Back 32

Legal Description with points of beginning and ending with degress

Front 33

How many acres in a Section

Back 33

Section has 640 acres - 1/4 of section has 160 acres, and 1/4 of 1/4 of section has 40 acres -- 1/4 of 1/4 of 1/4 would be 10 acres

Front 34

Disintermediation

Back 34

Transfer of funds from savings account into higher yield investment

Front 35

Discount Points

Back 35

Fees charged by lender to make up difference between current market interest rate and the rate the lender gives to the borrower

Front 36

Ad varlorem

Back 36

According to valuation

Front 37

Abatement

Back 37

Lowering of valuation for tax purposes

Front 38

One Acre

Back 38

43,560 square feet
640 acres in a Section
5,280 linear feet in a mile

Front 39

Tenancy in common

Back 39

Co-ownership with NO right of survivorship

Front 40

Tenancy by the Entireties

Back 40

Requires couple to be married and living on the property

Front 41

Joint Tenancy Unities

Back 41

Possession, interest, time and title

Front 42

Accesssion

Back 42

When something is added to real property

Front 43

Emblements

Back 43

Tenant's crops

Front 44

Appropriate Rights

Back 44

Given by government allowing owner to use water on property it does not own

Front 45

Littoral or Riparian rights

Back 45

Rights to use water on land that you own

Front 46

Mortagor vs. Mortagee

Back 46

Mortagor = borrower
Mortagee = lender

Front 47

Constructive Annexation

Back 47

Not actually affixed to real property but is so associated to make it a fixture (e.g. garage door opener)

Front 48

Inverse Condemnation

Back 48

Property owner sues government to pay compensation or loosen property use restrictions

Front 49

Easement by Prescription

Back 49

Open & nortorious use
Hostile & adverse use
Constant and regular use for 21 years

Front 50

DUST

Back 50

Demand, utility, scarcity and transferability are necessary ingredients for value

Front 51

Life cycle

Back 51

Growth, stability, decline, revitalization

Front 52

Acre

Back 52

43,560 square feet

Front 53

Annual Depreciation

Back 53

Cost divided by # of years for depreciation

Front 54

CMA

Back 54

Competitive Market Analysis

Front 55

Appurtenat Easement vs. Easement in Gross

Back 55

Appurtenant easements afford the most protection since they are generally a permanent feature of the property. Thus, in the case of sale, the lake access passes to any new owners. By contrast, an "easement in gross" is between two individuals, which would severely limit the attractiveness and value of the property if the original owner wished to sell.

Front 56

System of Ownership of Real Property in US

Back 56

"Allodial" is the modern form of ownership and is often contrasted with "feudal" in which land is held on the condition of rent or service due the government. For example, a medieval knight held property subject to coming to his baron's service when called. Similarly, the baron's land holdings were conditional on his raising an army and fighting for the king in times of conflict. Failure of any party to "perform as promised" was cause for holdings to be confiscated, often as a preliminary step to more extreme actions.

Front 57

General, Voluntary, Statutory Equitable Liens

Back 57

A "statutory lien" is one that arises out of specific law (otherwise known as statutes). By contrast, an "equitable lien" has its roots in common law or custom. A "voluntary lien" is one entered with the property owner's knowledge and consent, such as a mortgage. A "general lien" grants a creditor the right to file a claim against all of a debtor's assets, not just a particular property.

Front 58

Covenant of Seisen

Back 58

Another outgrowth of the feudal system, "seisen" derives from the French meaning to "sit upon or own" and gives owners the right to sell or transfer property at will.

Front 59

Alienation

Back 59

Acquisition means just what you think -- to acquire or receive something. The legal definition of "alienation," however, is to transfer. Thus, "alienation of affection" in divorce proceedings doesn't mean a person has caused one spouse to dislike the other (though often a result), but rather to transfer his or her affection away from their partner to another party.

Front 60

Which act provides for punitive action against businesses accused of discrimination based on sex, color, religion, ancestry or national origin?

Back 60

Unruh Act -- Named for Jesse Unruh, author of the 1959 act, it provides for specific remedies against hotels, restaurants, hospitals -- virtually any public business or organization -- for discriminating on the basis of sex, race, color or other personal characteristic.

Front 61

Which act allows the California Department of Fair Employment and Housing to take action against public or private housing entities that discriminate?

Back 61

Rumford Act - this act provides protection against discrimination in housing by landlords, apartment owners, housing developers, mortgage companies and real estate firms.

Front 62

Subrogation

Back 62

The substitution of a third person in place of a creditor to whose rights the third person succeeds in relation to the debt. (Title company)

Front 63

Appurtenances

Back 63

Rights and privileges that pass with the land

Front 64

Ostensible Agency

Back 64

Ostensible agency is the same as implied agency and means that the relationship is created by the actions of the parties rather than written contract

Front 65

Types of Easements

Back 65

easement by condemnation, property is acquired for PUBLIC purpose; an easement by prescription acquired by continuous, open and hostile use over a period of years; or an easement by necessity, necessary for another to enter and exit his own property.

Front 66

Return on Investment

Back 66

Net income is $73,500 minus $52,300 or $21,200. The value of the building is calculated by dividing net income ($21,200) by the rate of return (11%) which, in this case, is $192,727.27.