Principles of Real Estate Ch. 6-10 Quizzes (Combined)

The W 1/2 of the NW 1/4 of the NW 1/4 of the SE 1/4, and the SW 1/4 of Section 10 contains:

1) 165 acres

2) 2 ½ acres

3) 45 acres

4) 5 acres

1) 165 acres

In the U. S. Government Survey System, which lines run parallel to the principal base line?

1) township line

2) meridian line

3) range line

4) survey line

1) township line

How many square feet are in an acre?

1) 5280

2) 14970

3) 43560

4) 75436

3) 43560

A person who makes a will is the

1) executor (trix)

2) Administrator (trix)

3) devisor (ee)

4) testor (trix)

4) testor (trix)

If a married person dies testate and leaves all community property, the decedent's interest passes to the:

1) Surviving spouse and children if any

2) Surviving child, and not the surviving spouse

3) Surviving spouse

4) Whomever is named in the will

4) Whomever is named in the will

Ben’s father passed away and left Ben a ring in his will that Ben had always admired along with a sizeable sum of money. Ben received this gift as a:

1) Bequest

2) Devise

3) Legacy

4) Bequest and legacy

4) Bequest and legacy

The sudden tearing away of land along a river with the re-deposit of the land on the other side of the river, downstream, is called:

1) erosion

2) accretion

3) avulsion

4) reliction

3) avulsion

When possession of land includes open and notorious use for 5 years, hostile to the owner's wishes, and payment of property taxes, this best describes:

1) interstate succession

2) accession title

3) alluvion ownership

4) adverse possession

4) adverse possession

The passing of title to the state because of the lack of heirs is called:

1) escheat

2) eminent domain

3) police power

4) condemnation

1) escheat

The Connecticut case, Kelo vs. New London, was decided by a U.S. Supreme Court ruling which had an impact on:

1) how foreclosures should be conducted.

2) whether or not a partition action can be taken.

3) how private property can be taken to further economic development.

4) how filing for bankruptcy will stop foreclosure.

3) how private property can be taken to further economic development.

Which of the following is not required for a deed to be valid?

1) signature of grantor

2) granting clause

3) date

4) must be in writing

3) date

Chang deeds to Lopez and Lopez takes possession but does not record the deed. Chang then tells his friend Jones about the deed to Lopez. Chang then deeds the same property to Jones, who records the deed. Based on this information, title probably vests in:

1) Lopez

2) Chang

3) Jones

4) Both Lopez and Jones

1) Lopez

A sequential list of owners for a parcel of real estate is called:

1) constructive notice

2) chain of title

3) notarized record

4) deed of reconveyance

2) chain of title

Mr. and Mrs. Smith were interested in purchasing a vacant lot. However, they first wanted the property surveyed. When the surveyor came out to measure the property he began measuring from the iron spike embedded in the middle of the street. In this case the iron spike would be known as:

1) a benchmark

2) an angular line

3) a vara

4) a compass

1) a benchmark

A metes and bounds description requires:

1) a point of beginning

2) a distance and direction from one point to another

3) a return to the point of beginning

4) all of these

4) all of these

Before a deed is recorded, it must be acknowledged by:

1) the grantee

2) a notary public

3) the escrow officer

4) the grantor

4) the grantor

Who is competent to deed title to real estate?

1) 17-year-old unmarried student

2) a married 16-year-old

3) convict under a death sentence

4) none of these

There are implied warranties made by the grantor in a grant deed. Which one of the following is not implied?

1) property has not been encumbered by grantor except as disclosed

2) the interest held by grantor is being transferred to the grantee

3) the grantor holds a certificate of title to the property

4) the interest being deeded has not been conveyed to others

3) the grantor holds a certificate of title to the property

A deed need not be recorded in order to be valid, but must be delivered. Effective delivery depends on:

1) valid acknowledgment by the grantor

2) physical transfer

3) intention of grantor

4) knowledge of its existence by the grante

The recording of a deed gives:

1) Actual

2) Constructive notice

3) Right of possession

4) Effective notice

2) Constructive notice

In order to be valid, a deed must contain:

1) a date

2) a granting clause

3) the signature of the grantee

4) evidence of a notary

2) a granting clause

A major railroad company plans to run a line across Quan's property. If Quan refuses to give permission, the railroad company can proceed to take action through the use of:

1) Eminent Domain

2) Partition action

3) Injunction

4) Writ of execution

1) Eminent Domain

Title can be transferred from government to private owners using a:

1) Fiduciary Grant

2) Partition Grant

3) Public dedication

4) Patent

4) Patent

When describing or locating a piece of property using the meets and bounds system, which of these would be classified as artificial markers?

1) rocks

2) trees

3) streets

4) rivers

3) streets

Under the United States government survey system, a property containing this description includes how many acres? "The S 1/2 of the SE 1/4 of section 17 and the E 1/2 of the NE 1/4 of section 23 and the SW 1/4 of the NW 1/4 of section 21"

1) 160

2) 200

3) 240

4) 220

2) 200

If a married person with two children dies intestate and leaves community property, the descendant interest passes to the:

1) Surviving spouse and children

2) Surviving children, and not the surviving spouse

3) Surviving spouse

4) Surviving parents

3) Surviving spouse

The county recorder files deeds in a book called:

1) First to record is first to be filed

2) Legal description

3) Grantor–grantee index

4) The city where the property is located

3) Grantor–grantee index

If a court proceeds to confirm a probate sale, the first additional bid must be what percent above the original bid?

1) 5% on the first $10,000, 3% on the remainder

2) 5% on the first $10,000 and any amount on the remainder

3) 10% on the first $10,000, 5% on the remainder

4) 10% on the first $10,000 and any amount on the remainder

3) 10% on the first $10,000, 5% on the remainder

According to the laws of California, which of the following documents must be recorded to be valid?

1) Land mortgage

2) Grant deed

3) Trust deed

4) None of these

4) None of these

When a gift deed is use to transfer title to real property, the deed may be set aside or voided by:

1) Certain debtors of the grantor

2) No one

3) Certain creditors of the grantor

4) Someone who later purchases the land from the gift deed grantor

3) Certain creditors of the grantor

An easement across another person's land is:

1) A voluntary lien

2) A general lien

3) An encumbrance

4) Two of these are correct.

3) An encumbrance

A utility easement held by the telephone company for the installation of a telephone line would be best described as:

1) Easement in gross

2) Easement appurtenant

3) Dominant tenement

4) Lien right

1) Easement in gross

The major difference between obtaining an easement by prescription or title by adverse possession would involve the:

1) time of continuous use

2) permission of the owner

3) claim of right/color of title

4) payment of property taxes

4) payment of property taxes

Private deed restrictions are also known as CC&Rs. These initials stand for:

1) conditions, characteristics, and restrictions

2) covenants, conditions, and reconveyances

3) covenants, conditions, and restrictions

4) conditions, covenants, and reconveyances

3) covenants, conditions, and restrictions

Which of the following two terms go together?

1) Taxes - voluntary lien

2) Police power – public restrictions

3) Eminent domain - private restrictions

4) Mechanics lien – general lien

2) Police power – public restrictions

If an owner fails to file a proper Notice of Completion in the County Recorder's office, all unpaid mechanics have how many days to file a lien?

1) 30 days

2) 60 days

3) 90 days

4) 180 days

3) 90 days

An easement can be terminated in several ways. The most common way to terminate an easement is by:

1) Quiet title action

2) Express release

3) Nonuse

4) Filing a formal abandonment

2) Express release

Which of the following is not correct?

1) A notice of non-responsibility is usually recorded by a tenant

2) Special assessments are levied to defray the cost of a specific local improvement

3) A judgment lien normally runs for 10 years

4) An attachment, if used, is placed on a property before a judgment is rendered.

1) A notice of non-responsibility is usually recorded by a tenant

For a homeowner, not in a high median property valued county, the Homestead exemption is:

1) $100,000

2) $200,000

3) $300,000

4) $600,000

3) $300,000

For a formal declared homestead to be valid, it must be:

1) recorded

2) owner-occupied at all times

3) placed on a conventional home, not on a mobile home

4) two of the above are correct

1) recorded

Per the formally declared homestead law, an owner’s equity within the allowed amount is protected for how many months in the event the homeowner sells and purchases another home?

1) Three-months

2) Six-months

3) 12 months

4) 18 months

2) Six-months

A homestead is considered terminated when:

1) the home is rented to a tenant

2) a final decree of divorce is granted

3) the home is sold

4) an abstract of judgment is recorded

3) the home is sold

Sohal owns a home and has an easement over 20 feet of Lightfoot’s land. Sohal sells to Carter. Based on this information:\

1) Carter is the servient tenement

2) the easement is terminated

3) Lightfoot has a lien

4) Carter has an appurtenance

4) Carter has an appurtenance

A homestead, within the statutory amounts, will notprotect against:

1) after recorded judgments

2) mechanics’ liens

3) unsecured money debts that become secured by judgments

4) after recorded attachments

2) mechanics’ liens

Assume that there is lot 75-feet wide and 100-feet deep at the corner of Oak and 10th Streets. There is a 10-foot easement along Oak Street and a 20-foot easement along 10th Street. How many square feet are there in the lot?

1) 7,500 sq. ft.

2) 5,200 sq. ft.

3) 4,950 sq. ft

4) 4,400 sq. ft.

A court order to force the sale of real estate to pay a judgment is called:

1) An attachment

2) A writ of execution

3) A deficiency judgment

4) A foreclosure

2) A writ of execution

Which of these statements would be correct concerning a covenant and a condition in a deed?

1) The penalty for violation of a covenant is more severe than that for violation of a condition

2) The penalty for violation of a condition is always money damages

3) Neither of these

4) Both of these

3) Neither of these

A satisfaction of judgment is recorded when a:

1) Sheriffs sale takes place

2) Judgment is paid

3) Writ of attachment is exercised

4) Lien is filed

2) Judgment is paid

A valid homestead has been placed on their home by Mr. and Mrs. urban. This homestead will be terminated when they:

1) Move out of the home

2) Lease the home

3) Give an option to sell the home

4) None of the above will automatically terminate the homestead

4) None of the above will automatically terminate the homestead

After a proper Notice of Completion has been filed, if a material supplier wishes to file a mechanics’ lien, the supplier has how many days in which to do so?

1) 30

2) 45

3) 60

4) 90

1) 30

Deed restrictions that apply to all lots in a new subdivision are created by the:

1) Lender

2) Government

3) Developer

4) Broker

3) Developer

Mr. Rodriguez has a neighbor with a huge tree. One of its branches is growing over the fence into Mr. Rodriguez’s yard. The leaves fall off this branch and wind up in the pool located on Mr. Rodriguez’s property. This has been a problem for several years. Now Mr. Rodriguez is wondering if can bring an action for removal of the tree branch, even though it has been more than five years.

1) Yes if Mr. Rodriguez states this is a recent problem

2) There is no recourse because the time period to bring an action has expired.

3) Yes, because there is no Statute of Limitations for removal of the tree branch.

4) There is no recourse because the tree is not on Mr. Rodriguez’s property.

3) Yes, because there is no Statute of Limitations for removal of the tree branch.

A lessor can protect against a mechanics' lien for unpaid construction work ordered by lessee by:

1) Posting and recording a notice of non-responsibility

2) Filing a suit against the contractor for undertaking the work without authorization from the landlord

3) Serving the lessee with a notice of responsibility

4) Declaring a breach of contract and dispossessing the lessee

1) Posting and recording a notice of non-responsibility

In the field of real estate, most documents must be acknowledged before they can be recorded. Which document must be verified, not acknowledged, before it can be recorded?

1) Trust deed

2) Mechanics’ lien

3) Listing agreement

4) Judgement

2) Mechanics’ lien

The landlord has come by on the first of the month to collect the rent from the tenant. He notices a work on a new patio has begun, which she has not authorized. The tenant is not at home to ask about this new structure. The landlord should immediately:

1) File a mechanic's lien

2) File a notice of cessation

3) File a notice of completion

4) File a notice of non-responsibility

4) File a notice of non-responsibility

Which of the following is a non-money encumbrance affecting the physical use of a property?

1) An easement

2) Delinquent taxes

3) A trust deed

4) Judgment

1) An easement

If a zoning law permits a use of a property that is prohibited by a valid deed restriction, the normal rule is that the:

1) Zoning will prevail

2) Deed restriction will prevail

3) Homeowners association ruling will prevail

4) Owners personal desire will prevail

2) Deed restriction will prevail

A judgment is what type of lien?

1) Constructive

2) Voluntary

3) General

4) Specific

3) General

Special assessments:

1) If paid become a lien on real property

2) Are usually not paid with property with property taxes

3) Can be foreclosed upon

4) All of these

3) Can be foreclosed upon

All of the following are acceptable ways to terminate an easement, except:

1) Express release

2) Abandonment

3) Merger

4) If created by deed, it may be extinguished by non-use

4) If created by deed, it may be extinguished by non-use

A real estate promissory note that reads "$50,000 principal payable interest only monthly at a rate of 8%" is what type of promissory note?

1) straight

2) installment

3) principal and interest

4) accommodation

1) straight

A real estate promissory note reads "$557.50 per month for 239 payments, then a final monthly payment of $2,011.19." This is an example of a/an:

1) balloon payment

2) alienation payment

3) prepayment

4) amortized payment

1) balloon payment

Under a trust deed (deed of trust) the:

1) trustor deeds to trustee

2) trustor deeds to the beneficiary

3) trustee deeds to trustor

4) trustee deeds to beneficiary

1) trustor deeds to trustee

An enforceable due-on-sale clause is correctly called a/an:

1) alienation clause

2) acceleration clause

3) wrap around clause

4) prepay clause

1) alienation clause

A negative amortized ARM means:

1) all of these

2) the unpaid interest is added to the principal.

3) the payments may not cover the annual interest.

4) it can cause some problems in later years.

1) all of these

Late charges on a loan:

1) may not exceed five dollars or 10 percent of the principal and interest part of an installment payment, whichever is greater

2) added to the balance of the loan

3) cannot legally be charged

4) are charged at a standard $50.00 per month

1) may not exceed five dollars or 10 percent of the principal and interest part of an installment payment, whichever is greater

A type of financing instrument in which the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:

1) installment sales contract

2) lease contract

3) wraparound contract

4) junior lien contract

1) installment sales contract

Under the Trustee's Sale procedure, after a Notice of Default has been recorded, a borrower has how long to reinstate by making up past due payments, penalties, late charges, and trustee expenses?

1) 5 days prior to trustee's sale date

2) 90 days

3) 3 months

4) 1 year

1) 5 days prior to trustee's sale date

The Equal Credit Opportunity Act requires a lender to:

1) not discriminate on the basis of race, creed, color, sex, origin, plus other protected categories

2) use a HUD approved uniform closing statement

3) disclose all closing costs

4) quote interest rates as annual percentage rates (APR)

1) not discriminate on the basis of race, creed, color, sex, origin, plus other protected categories

The successful bidder at a Trustee's Sale (foreclosure) receives what type of deed?

1) trustee’s

2) grant

3) quitclaim

4) sheriff’s

1) trustee’s

If a real estate loan is paid off in advance of the due date, some lenders are legally allowed to charge a penalty. This is called what type of penalty?

1) prepayment

2) balloon

3) alienation

4) acceleration

1) prepayment

A lender foreclosed on a California home that had a VA loan. The proceeds from the sale were not enough to cover the outstanding loan amount. Which of the following statements are true?

1) The lender can sue for a deficiency judgment

2) The lender cannot sue because California is an anti-deficiency judgment state.

3) The lender can sue the seller who sold the home to the veteran.

4) The lender takes the loss and cannot do anything about it.

1) The lender can sue for a deficiency judgment

The Real Property Loan Law does not apply to first loans of $30,000 or more and second deed of trust loans of:

1) $20,000 or more

2) $19,500 or more

3) $17,500 or more

4) $5,000 or more

1) $20,000 or more

RESPA stands for:

1) Real Estate Settlement Procedures Act

2) Real Estate Salesperson Association

3) Real Estate Syndication Planning Act

4) Real Estate Settlement Program Act

1) Real Estate Settlement Procedures Act

Which of the following regarding a Trustee's Sale is false?

1) after the sale, the dispossessed owner has a one-year right of redemption

2) the sale must be advertised in a newspaper of general circulation in the area

3) the sale must be held in a public place

4) the beneficiary doing the foreclosing is allowed to submit the loan balance and foreclosure costs instead of cash

1) after the sale, the dispossessed owner has a one-year right of redemption

An owner sells and the buyer takes over the existing loan. To relieve the seller of primary liability, the buyer must:

1) assume the note and trust deed

2) take title subject to the note and trust deed

3) take title contingent upon the note and trust deed

4) sign a non-recourse agreement

1) assume the note and trust deed

An annual percentage rate (APR):

1) is not an interest rate but rather a percentage rate that reflects the effective interest rate on the loan.

2) is an interest rate that includes tax service fees.

3) is not an interest rate; it is a fee for lending.

4) is an interest rate that only applies to refinancing.

1) is not an interest rate but rather a percentage rate that reflects the effective interest rate on the loan.

In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?

1) first trust deed; second trust deed; foreclosure costs; trustor

2) second trust deed; first trust deed; foreclosure costs; trustor

3) trustor; first trust deed; second trust deed; foreclosure costs

4) foreclosure costs; trustor; first trust deed; second trust deed

$300,000 loan at 8% payable $2,000 per month is what type of note?

1) straight

2) installment

3) wraparound

4) amortized

If a broker negotiated a third trust deed for $12,000 payable in five semi-annual installments, the maximum rate of commission allowed by the Mortgage Loan Brokerage Law would be:

1) 10%

2) 15%

3) 5%

4) no rate is established for third trust deeds

In an ARM loan, the distance between the borrower's rate and the index is called the:

1) margin

2) adjustmnet

3) cap

4) teaser

1) margin

A copy of a Mortgage Loan Disclosure Statement prepared by the broker and signed by the borrower must be retained by the broker for at least:

1) 4 years

2) 5 years

3) 3 years

4) 2 years

A clause in a trust deed that states that the lender's rights shall become secondary to a new trust deed is called:

1) a subordination clause

2) an alienation clause

3) a submortgage

4) an escalation clause

1) a subordination clause

Under the Real Property Loan Law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:

1) $700

2) $900

3) $390

4) 5%

1) $700

Real estate advertisements must comply with:

1) Reg Z

2) APR p. 207 Annual Percentage Rate is an effective interest rate on the loan.

3) GPM p. 198 Graduated Payment Mortgage is a type of loan.

4) ECOA p. 207 Equal Credit Opportunity Act prohibits lenders from discriminating.

3) GPM p. 198 Graduated Payment Mortgage is a type of loan.

Which of the following words expresses a meaning most completely opposite to the term "alienation"?

1) acquisition

2) amortization

3) ad valorem

4) acceleration

1) acquisition

For loans that under the California usury law, the maximum interest rate is:

1) 10% or 5% above the Federal Reserve Discount Rate, whichever is greater

2) 5% above the Federal Funds Rate

3) 10% or 5% above the Federal Reserve Discount Rate, whichever is lesser

4) 10% above the Prime Rate

1) 10% or 5% above the Federal Reserve Discount Rate, whichever is greater

The loan-to-value ratio on a mortgage is defined as the:

1) loan amount as a percentage of appraised value

2) monthly payments as a percentage of the face amount of the loan

3) loan amount as a percentage of sales price

4) loan amount as a percentage of assessed value

1) loan amount as a percentage of appraised value

A property is usually appraised in what phase of the financing process?

1) analysis

2) application

3) processing

4) closing

3) processing

Any loan payment twice as large as a regular payment is called a:

1) balloon

2) wrap

3) teaser

4) cap

1) balloon

Which of the following is an institutional lender?

1) life insurance company

2) mortgage company

3) pension fund

4) credit union

1) life insurance company

The three major credit reporting agencies are:

1) Experian, Equifax, and TransUnion.

2) Experian, TRW, and Equifax.

3) TRW, Equifax, and FICO.

4) Equifax, Experian, and Franklin.

1) Experian, Equifax, and TransUnion.

A Seller's Financial Disclosure Statement must be signed by the:

1) buyer

2) seller

3) all of these

4) broker

3) all of these

The CalHFA program:

1) charges the least amount of money in closing costs as compared to any other program

2) is a secondary mortgage market

3) is designed to help first time homebuyers

4) is used as a last resort by lenders to make loans to borrowers with less than perfect credit

3) is designed to help first time homebuyers

Sylvia wants to purchase a home. She is recently divorced and is receiving alimony for the next ten years in addition to child support for her three year old son. She has been in her present job for five years. What sources of income can she include in her loan application?

1) Her salary from her job only.

2) Her salary from her job and alimony.

3) Her salary from her job and child support.

4) Her salary from her job, alimony, and child support.

4) Her salary from her job, alimony, and child support.

The maximum FHA insured loan under the 203b program for a condo with an acquisition cost of $150,000 is:

1) $144,275

2) $150,000

3) $145,725

4) $144,750

4) $144,750

The ultimate source of all loan funds is:

1) taxes

2) transfer payments

3) savings

4) government spending

3) savings

The major source for junior loans (2nds, 3rds, etc.) is:

1) private parties

2) Cal-Vet

3) FHA

4) savings and loan associations

1) private parties

Real Estate Investment Trusts (also known as REIT):

1) invest in savings banks

2) were created to encourage small investors to invest in real estate transactions with other small investors

3) are usually a two year loan

4) operate in the second trust deed market

2) were created to encourage small investors to invest in real estate transactions with other small investors

Traditionally, the total monthly expenses should not exceed____ to ____of the borrower’s gross monthly income.

1) 33%-36%

2) 25%-30%

3) 28%-30%

4) 33%-38%

3) 28%-30%