- 51. The individual conveying real estate is called the ________ and the individual acquiring title is called the ________.
- a) grantor; grantee
- b) grantee; grantor
- c) grantor; beneficiary
- d) trustee; beneficiary
- 52. To be considered capable at the time of signing a deed, a grantor needs to be of sound mind, possess their civil rights and:
- a) be a permanent resident of California.
- b) own the item being granted free of all liens.
- c) hold a degree from a four year university.
- d) be an adult at least 18 years of age.
- 53. To convey any interest in real estate without an assurance the individual holds that interest conveyed, a(n) __________ deed is used.
- a) grant deed
- b) quitclaim deed
- c) abstract of title
- d) implied covenant
- 54. A(n) ________ is valid and enforceable after delivery until it is challenged due to a defect and declared invalid by court order.
- a) void ab initio deed
- b) void deed
- c) voidable deed
- d) implied deed
- 55. No matter how vested, all property acquired jointly by a married couple is presumed to be:
- a) public property.
- b) separate property.
- c) community property.
- d) property held under a tenancy in common.
- 56. Lis pendens means Notice of Litigation or:
- a) Notice of Arbitration.
- b) Notice of Delinquency.
- c) Notice of Mediation.
- d) Notice of Pending Action.
- 57. A(n) ____________ discloses the current vesting and encumbrances which may be reflected on the public record affecting a property’s title.
- a) preliminary title report
- b) abstract of title
- c) property profile
- d) natural hazard disclosure
- 58. __________ refers to a form of indemnity insurance issued by a title insurance company which holds harmless the named insureds against monetary loss caused by an encumbrance not listed in Schedule B of the policy and not known by the insured when the policy was issued.
- a) Title insurance
- b) Home warranty
- c) Private mortgage insurance (PMI)
- d) Renters’ insurance
- 59. The _________ dollar amount of equity in a homeowner’s dwelling has priority on title over most judgment liens and some government liens.
- a) homestead
- b) interest deductible
- c) capitalization rate
- d) loan-to-value (LTV) ratio
- 60. Within three business days following a lender’s receipt of a buyer’s mortgage application, the lender provides the buyer a(n) ___________, estimating the buyer’s settlement charges and mortgage terms.
- a) Good Faith Estimate (GFE)
- b) Uniform Residential Loan Application
- c) HUD-1 Closing Statement
- d) Loan Estimate
- 61. The _________ prepared by the buyer with the assistance of their transaction agent (TA) provides the lender with necessary information about the buyer and the property which will secure the mortgage.
- a) Loan Estimate
- b) Closing Disclosure
- c) balance sheet
- d) Uniform Residential Loan Application
- 62. The ________ insures mortgages with less demanding down payment requirements and with high loan-to-value ratios (LTVs) than compared to mortgages originated by most conventional lenders.
- a) Truth-in-Lending Act
- b) Federal Housing Administration (FHA)
- c) MGIC Investment Corp.
- d) Real Estate Settlement Procedures Act (RESPA)
- 63. An arrangement in which the seller carries back a note executed by the buyer to evidence a debt owed for the purchase of the seller’s property is referred to as:
- a) a land sales contract.
- b) seller financing.
- c) a piggyback loan.
- d) adverse possession.
- 64. The amount of interest a private, non-exempt lender can charge is controlled by:
- a) Fair Housing Law.
- b) the Lender Code of Ethics.
- c) usury law.
- d) the California Bureau of Real Estate (CalBRE).
- 65. Default mortgage insurance coverage provided by private insurers for conventional loans with loan-to-value ratios higher than 80% is called:
- a) homeowners’ insurance.
- b) renters’ insurance.
- c) private mortgage insurance (PMI).
- d) American Land Title Association (ALTA) insurance.
- 66. The ________ is used for debt obligations with constant periodic repayments in any amount and frequency negotiated.
- a) straight note
- b) installment note
- c) unsecured note
- d) partial note
- 67. Notes which call for periodic adjustments to the interest rate and the amount of scheduled payments are known as:
- a) fixed-rate notes.
- b) adjustable rate notes (ARMs).
- c) all-inclusive trust deeds (AITDs).
- d) All of the above.
- 68. A(n) ________ is an additional charge levied by a lender when an owner pays off the principal on a debt before it is due.
- a) late fee
- b) balloon payment
- c) prepayment penalty
- d) grace period
- 69. Any final payment on a note which is greater than twice the amount of any one of the six regularly scheduled preceding payments is known as a:
- a) private mortgage insurance (PMI) premium.
- b) balloon payment.
- c) penultimate payment.
- d) due-on clause.
- 70. The preferential security device used to impose a lien on real estate is the:
- a) trust deed.
- b) estoppel certificate.
- c) lis pendens.
- d) quitclaim deed.
- 71. When the due-on clause is triggered, the lender may recast or call the loan, also known as:
- a) subordination.
- b) waiver by proxy.
- c) reconciliation.
- d) acceleration.
- 72. The due-on clause is triggered by any conveyance of equitable ownership of real estate, such as a(n):
- a) all-inclusive trust deed (AITD).
- b) lease option sale.
- c) land sales contract.
- d) All of the above.
- 73. A trustee is authorized to initiate a non-judicial foreclosure sale of the property on a declaration of default and instructions to foreclose from the beneficiary under the __________ contained in a trust deed.
- a) power-of-sale provision
- b) arbitration clause
- c) indemnification provision
- d) liquidated damages clause
- 74. ______________ occurs when an owner-in-foreclosure pays all sums due under the note and trust deed and reimburses the lender’s costs of foreclosure, prior to completion of the trustee’s sale.
- a) Redemption of the property in foreclosure
- b) Subordination of the lender’s interest
- c) Waste of the property
- d) None of the above.
- 75. A trustee is required to send a copy of the Notice of Default (NOD) by registered or certified mail to holders of a recorded interest in the secured property within ________ after recording the NOD.
- a) one month
- b) one week
- c) one year
- d) two years
- 76. A trustee’s sale is considered final and complete:
- a) when the lender signs the certificate of sale.
- b) when the trustee records a Notice of Default (NOD).
- c) when a beneficiary makes a bid.
- d) on the trustee’s acceptance of the last and highest bid.
- 77. A trust deed holder may foreclose on a property by:
- a) nonjudicial foreclosure under the power-of-sale provision in the trust deed.
- b) judicial foreclosure under mortgage law.
- c) Either a. or b.
- d) Neither a. nor b.
- 78. A(n) ________ is issued to the successful bidder on the completion of a judicial sale.
- a) Notice of Trustee’s Sale (NOTS)
- b) certificate of sale
- c) fair value hearing certificate
- d) Sheriff’s Deed
- 79. To qualify home improvement loans for interest deductions, the new improvements must be substantial, meaning they:
- a) prolong the property’s useful life.
- b) adapt the property to residential use.
- c) add to the property’s market value.
- d) Any of the above.
- 80. The fee charged by a lender as prepaid interest which reduces the note rate on the mortgage is known as a:
- a) usury limitation.
- b) substitute security.
- c) point.
- d) final/balloon payment.
- 81. A broker’s primary objective as a property manager is to oversee the maintenance of rental property, fill vacancies with suitable tenants and:
- a) live on the property and conduct structural repairs.
- b) find tenants to purchase the property.
- c) regularly landscape the property.
- d) collect rent and account to the landlord.
- 82. A(n) __________ runs for an indefinite period of time and renews monthly on the same terms until terminated.
- a) fixed-term lease
- b) tenancy-at-sufferance
- c) month-to-month rental agreement
- d) continuing nuisance
- 83. To be enforceable under the statute of frauds, a lease agreement exceeding __________ needs to be in writing to be enforceable.
- a) one year
- b) ninety days
- c) nine months
- d) six months
- 84. A(n) __________ is a commercial lease arrangement which transfers to the tenant the obligation, unless modified, to pay all of the costs of ownership in addition to utilities and janitorial services.
- a) net lease
- b) gross lease
- c) full-service gross lease
- d) triple net lease
- 85. A residential or commercial landlord under a month-to-month rental agreement can increase the rent or shift repair and maintenance obligations to the tenant by serving a(n):
- a) 30-Day Notice of Change in Rental Terms.
- b) 60-Day Notice to Pay Rent or Quit.
- c) 90-Day Notice to Vacate.
- d) Three-Day Notice to Quit.
- 86. Security against a tenant’s default on obligations agreed to in the rental or lease agreement is provided by the:
- a) Real Estate Recovery Fund.
- b) security deposit.
- c) personal landlord’s savings account.
- d) trust fund.
- 87. As a matter of public policy, residential security deposits are limited to:
- a) two months’ rent for unfurnished units and three months’ rent for furnished units.
- b) two months’ rent for unfurnished units and four months’ rent for furnished units.
- c) one month’s rent for unfurnished units and two months’ rent for furnished units.
- d) three months’ rent for unfurnished units and four months’ rent for furnished units.
- 88. A landlord may serve a __________ to require the tenant to pay all amounts due or vacate the premises.
- a) 30-Day Notice to Vacate
- b) Three-Day Notice of Change in Rental Terms
- c) Three-Day Notice to Pay Rent or Quit
- d) 90-Day Notice to Vacate
- 89. Failure to pay late charges, interest penalties, bad check charges or security deposits are classified as:
- a) incurable breaches.
- b) material breaches.
- c) nonmonetary breaches.
- d) minor breaches.
- 90. The agreed-to time period following the due date during which rent may be paid without incurring a late charge is referred to as the:
- a) security deposit.
- b) grace period.
- c) waterbed addendum.
- d) late charge.
- 91. Statutory breaches, being incurable, include an unauthorized subletting of the premises, maintaining a nuisance on the premises or the tenant’s:
- a) failure to keep the property clean.
- b) failure to pay rent prior to expiration of the grace period.
- c) unlawful use of the premises.
- d) failure to significantly improve the premises.
- 92. A notice to quit may be served when the use of a property becomes unlawful, such as when the use:
- a) adds to the curb appeal of the property.
- b) threatens the physical safety of the property.
- c) facilitates the landlord’s continued receipt of rent.
- d) violates maritime law.
- 93. Waste to a property occurs when a:
- a) tenant neglects the premises and impairs its value by failing to maintain it as agreed.
- b) landlord replaces the carpets in a unit before needing to.
- c) subtenant vacates without the landlord’s consent.
- d) property manager doesn’t get bids from multiple contractors when intending to renovate a property.
- 94. An owner-by-foreclosure who purchases a residential property at a trustee’s sale for investment purposes terminates an existing residential tenancy by serving a:
- a) 120-day Notice to Vacate.
- b) 90-day Notice to Vacate.
- c) 60-day Notice to Vacate.
- d) 30-day Notice to Vacate.
- 95. When a landlord fails to comply with housing code standards that materially affect the health and safety of the occupants, the landlord has breached the:
- a) implied warranty of habitability.
- b) terms of the sublease.
- c) 60-day Notice to Fix Property or Quit.
- d) statute of frauds.
- 96. When criminal activity is ___________, the landlord has a duty to take reasonable measures to prevent harm to persons on the property from future similar criminal activities.
- a) reasonably foreseeable
- b) unlikely
- c) possible
- d) impossible
- 97. Individuals employed by municipalities to ensure properties comply with local building codes, ordinances, zoning regulations and contract specifications are referred to as:
- a) contractors.
- b) home energy auditors.
- c) escrow officers.
- d) building inspectors.
- 98. ____________ refers to the placement of a house upon its lot.
- a) Physical location
- b) Orientation
- c) Zoning
- d) Floor plan
- 99. A(n) ___________ sets forth acceptable land uses within a jurisdiction and governs the growth of a municipality.
- a) general plan
- b) policy of title insurance
- c) subdivision ordinance
- d) condition, covenant and restriction (CC&R)
- 100. The California Energy Commission designed and implemented the __________ program to include a uniform rating scheme for the systematic delivery of home energy ratings to homeowners.
- a) California Housing Finance Agency (CalHFA)
- b) Home Affordable Modification Program (HAMP)
- c) California Home Energy Rating System (HERS)
- d) California Department of Veterans Affairs (CalVet)
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