|
SECTION 1 ANSWER
B B B C DAC DD B D A A AAD AD A A C D ABC BC B A A B ACD DA A A A D CDB CB D C A BAD D A B C DAC A C A A DAC B A C B CAB B B A A BDA D |
SECTION 2 ANS 35 QUESTION ONLY
AAAB CCAA ABAA ABBA ACDB BC? D? BAA ADD AAA BCA | ||
SECTION ONE (TWO SET OF SECTION ONE)
A preemptive right is also known as a(n) _________________ to purchase.
b) right of first refusal
==
A seller-in-foreclosure has a statutory __________ right to cancel the
equity purchase (EP) agreement he has entered into with an EP investor
prior to the sale.
c) five-day
==
29 ans = b
The broker representing an EP investor must, when negotiating an EP transaction, deliver
to all parties to the transaction a written EP disclosure statement that the buyer’s agent representing
==
An exchange of _____________ could be considered an unconscionable method of payment:
a) worthless land.
==
A preemptive right is also known as a(n) _________________ to purchase.
b) right of first refusal
==
A seller-in-foreclosure has a statutory __________ right to cancel the
equity purchase (EP) agreement he has entered into with an EP investor
prior to the sale.
c) five-day
==
29 ans = b
The broker representing an EP investor must, when negotiating an EP transaction, deliver
to all parties to the transaction a written EP disclosure statement that the buyer’s agent representing
==
An exchange of _____________ could be considered an unconscionable method of payment:
a) worthless land.
==
SECTION 1 BOOK ; SECTION 2 BOOK; Agency Trust F;
| section1-75-06282011.doc |
| agencyn2n1-85percent-05172011.doc |
| section2n1-85percent-04022011.doc |
| section2n1-85percent.doc |
| section1.doc |
| agencyn2n1-85percent-05172011.doc |
| section2.doc |
| agencytrustfund02062012.doc |
Real Estate Matter Quiz Test 2 for Self Help 12/25/12
1 ) A short sale is a property sales transaction which generates net sales proceeds in an amount __________ the total amount owed on the secured loan.
d. less than (You are correct!
2 ) An alternative measure for a property owner to avoid tax liability for discharge-of-indebtedness income on a recourse loan is to:
a. force the lender to foreclose. (4th Edition: page 252 print version; page 275 digital version.)
3 ) The offsetting of income for rental operating losses is done to reduce the owner’s:
b. adjusted gross Income (AGI). (4th Edition: page 256 print version; page 278 digital version.)
4 ) To be classified as a passive income category property, rentals need to be occupied by tenants for an average of more than __________ days in a year.
a. 30 (4th Edition: page 259 print version; page 278 digital version.)
5 ) For a landlord to qualify as a(n) __________ of a real estate related trade or business for passive income tax reporting purposes, he must render professional real estate services in that business and spend a minimum amount of time operating the business.
b. owner-operator (4th Edition: page 260 print version; page 279 digital version.)
6 ) To qualify for rental operating losses, a landlord must spend more than __________ hours of the year and more than half of his time rendering services in a real estate related trade or business.
d. 750 (4th Edition: page 260 print version; page 280 digital version.)
7 ) In order for a real estate licensee who works out of their home to qualify for the home office deduction:
a. a portion of the home must be used exclusively and regularly for the licensee’s brokerage business. (4th Edition: page 265 print version; page 285 digital version.)
8 ) Taxwise, direct expenses for a home office include:
b. the cost of repairs made in the portion of the residence exclusively used as the home office. (You are correct!
4th Edition: page 266 print version; page 286 digital version.)
.
9 ) Property taxes for the upcoming fiscal year are set based on the property’s assessed value, which is set on the date the property is:
d. sold, improved or undergoes any change of ownership. (4th Edition: page 275 print version; page 296 digital version.)
10 ) Every person acquiring an ownership interest in real estate must file a change of ownership report with the:
c. county assessor. (You are correct!
4th Edition: page 276 print version; page 297 digital version.)
11 ) For purposes of the parent-child exclusion, the definition of a child includes all of the following except:
b. children adopted after the age of 18. (4th Edition: page 278 print version; page 300 digital version.)
12 ) In order to qualify for a principal residence exclusion from reassessment on a change in ownership, each parent or child receiving property must file a claim with the county assessor:
a. at the time the deed is recorded. (4th Edition: page 281 print version; page 303 digital version.)
13 ) Of all the economic factors, __________ has the most impact on the vigor of the California real estate market.
c. employment (4th Edition: page 285 print version; page 306 digital version.)
14 ) Property values appreciate or depreciate based on increases or decreases in population density and:
d. pay levels. (4th Edition: page 287 print version; page 309 digital version.)
15 ) Real estate supply and property prices have a(n) __________ relationship.
b. inverse (4th Edition: page 289 print version; page 310 digital version.)
16 ) The primary indicator of long-term, organic demand is:
a. purchases by end users. (4th Edition: page 290 print version; page 312 digital version.)
17 ) The typical age of a first-time homebuyer is __________ of age.
a. 25 - 34 years (4th Edition: page 297 print version; page 317 digital version.)
18 ) The money illusion refers to seller insistence on prices paid in the past, also referred to as:
d. the sticky price phenomena. (4th Edition: page 299 print version; page 321 digital version.)
19 ) Following the bottom of the recession in 2008, the recovery is shaped like a(n):
c. aborted check mark. (4th Edition: page 303 print version; page 323 digital version.)
20 ) The rentier class consists of those who receive income from:
d. owned tangible and intangible assets. (4th Edition: page 307 print version; page 327 digital version.)
21 ) Interest rates on the 10-Year Treasury Note yield have slowly declined since __________, and are currently at or near zero.
d. 1980 (4th Edition: page 311 print version; page 332 digital version.)
22 ) A buyer’s purchasing power is the amount he is able to borrow based on repayment at approximately __________ of his income.
b. 31% (4th Edition: page 313 print version; page 334 digital version.)
23 ) In spite of government guarantees, home mortgages are a riskier investment than treasury bonds and are thus typically priced at a __________ margin over the rate on 10-year Treasury Notes.
a. 1.4% (4th Edition: page 313 print version; page 335 digital version.)
24 ) Few would dare question the severity of the Great Recession, which officially started __________ and ended __________ .
a. December 2007; August 2009 (4th Edition: page 314 print version; page 337 digital version.)
25 ) The brunt of jobs lost in California during the Great Recession came from the __________ industry.
c. construction (4th Edition: page 316 print version; page 338 digital version.)
d. less than (You are correct!
2 ) An alternative measure for a property owner to avoid tax liability for discharge-of-indebtedness income on a recourse loan is to:
a. force the lender to foreclose. (4th Edition: page 252 print version; page 275 digital version.)
3 ) The offsetting of income for rental operating losses is done to reduce the owner’s:
b. adjusted gross Income (AGI). (4th Edition: page 256 print version; page 278 digital version.)
4 ) To be classified as a passive income category property, rentals need to be occupied by tenants for an average of more than __________ days in a year.
a. 30 (4th Edition: page 259 print version; page 278 digital version.)
5 ) For a landlord to qualify as a(n) __________ of a real estate related trade or business for passive income tax reporting purposes, he must render professional real estate services in that business and spend a minimum amount of time operating the business.
b. owner-operator (4th Edition: page 260 print version; page 279 digital version.)
6 ) To qualify for rental operating losses, a landlord must spend more than __________ hours of the year and more than half of his time rendering services in a real estate related trade or business.
d. 750 (4th Edition: page 260 print version; page 280 digital version.)
7 ) In order for a real estate licensee who works out of their home to qualify for the home office deduction:
a. a portion of the home must be used exclusively and regularly for the licensee’s brokerage business. (4th Edition: page 265 print version; page 285 digital version.)
8 ) Taxwise, direct expenses for a home office include:
b. the cost of repairs made in the portion of the residence exclusively used as the home office. (You are correct!
4th Edition: page 266 print version; page 286 digital version.)
.
9 ) Property taxes for the upcoming fiscal year are set based on the property’s assessed value, which is set on the date the property is:
d. sold, improved or undergoes any change of ownership. (4th Edition: page 275 print version; page 296 digital version.)
10 ) Every person acquiring an ownership interest in real estate must file a change of ownership report with the:
c. county assessor. (You are correct!
4th Edition: page 276 print version; page 297 digital version.)
11 ) For purposes of the parent-child exclusion, the definition of a child includes all of the following except:
b. children adopted after the age of 18. (4th Edition: page 278 print version; page 300 digital version.)
12 ) In order to qualify for a principal residence exclusion from reassessment on a change in ownership, each parent or child receiving property must file a claim with the county assessor:
a. at the time the deed is recorded. (4th Edition: page 281 print version; page 303 digital version.)
13 ) Of all the economic factors, __________ has the most impact on the vigor of the California real estate market.
c. employment (4th Edition: page 285 print version; page 306 digital version.)
14 ) Property values appreciate or depreciate based on increases or decreases in population density and:
d. pay levels. (4th Edition: page 287 print version; page 309 digital version.)
15 ) Real estate supply and property prices have a(n) __________ relationship.
b. inverse (4th Edition: page 289 print version; page 310 digital version.)
16 ) The primary indicator of long-term, organic demand is:
a. purchases by end users. (4th Edition: page 290 print version; page 312 digital version.)
17 ) The typical age of a first-time homebuyer is __________ of age.
a. 25 - 34 years (4th Edition: page 297 print version; page 317 digital version.)
18 ) The money illusion refers to seller insistence on prices paid in the past, also referred to as:
d. the sticky price phenomena. (4th Edition: page 299 print version; page 321 digital version.)
19 ) Following the bottom of the recession in 2008, the recovery is shaped like a(n):
c. aborted check mark. (4th Edition: page 303 print version; page 323 digital version.)
20 ) The rentier class consists of those who receive income from:
d. owned tangible and intangible assets. (4th Edition: page 307 print version; page 327 digital version.)
21 ) Interest rates on the 10-Year Treasury Note yield have slowly declined since __________, and are currently at or near zero.
d. 1980 (4th Edition: page 311 print version; page 332 digital version.)
22 ) A buyer’s purchasing power is the amount he is able to borrow based on repayment at approximately __________ of his income.
b. 31% (4th Edition: page 313 print version; page 334 digital version.)
23 ) In spite of government guarantees, home mortgages are a riskier investment than treasury bonds and are thus typically priced at a __________ margin over the rate on 10-year Treasury Notes.
a. 1.4% (4th Edition: page 313 print version; page 335 digital version.)
24 ) Few would dare question the severity of the Great Recession, which officially started __________ and ended __________ .
a. December 2007; August 2009 (4th Edition: page 314 print version; page 337 digital version.)
25 ) The brunt of jobs lost in California during the Great Recession came from the __________ industry.
c. construction (4th Edition: page 316 print version; page 338 digital version.)
SECTION 1
1 agent can not act as himself (ans is false)
for number 4
For Sale” sign regulations | first tuesday journal online Feb 1, 2008 ... Signs in mobilehome parks may be up to 24 inches wide and 36 inches ... The right to display mobilehome “For Sale” signs extends to brokers ...
5 answer is TRUE
has no more than 4 years
8
A listing agent owes no duty to a prospective buyer to address the existence, much less the nature, of an easement located on the listed property.
12
In addition, garage door openers installed after January 1, 1993 are required to have a sensor which, when garage door movement is interrupted or misaligned, causes a closing door to open and prevents an open door from closing.[Health & S C §19890(b)]
17
Lead-based paint is defined as paint or other surface coating that contains lead equal to at least 1.0 milligram per square centimeter or 0.5% by weight.[24 CFR §35.86; 40 CFR §745.103] == so answer is false
\
32 ans is true
buyer-occupants are frequently unwilling to purchase property in foreclosure since the property is often:
physically damaged or unattractive•• due to deferred maintenance; and
improperly encumbered•• since either the buyer cannot assume or will not assume the loan on the terms demanded, or the property cannot be refinanced for an amount sufficient to pay off the existing loan and the lender will not agree to a short payoff.
15 answer is true
Actual use of the NHD Statement by sellers and their agents is mandated on the sale of one-to-four unit residential properties, called targeted properties.
18 answer is true
The seller and the listing broker must each keep a copy of the disclosure statement for at least three years
19 ANSWER IS both true
When conditions are the subject of contingency provisions, the conditions are initially distinguished by whether they:
do ••occur (events and activities), called event-occurrence contingencies; or
are ••approved (information, data, documents and reports), called further-approval or personal-satisfaction contingencies.
22 answer is TRUE
The existence of an oral or written contingency provision in a purchase agreement does not render the agreement void, as though it were a mere illusory contract which never was binding
24 answer is true (time is of the essence)
The "common understanding" said to exist as the purpose for including a time-essence clause in a purchase agreement is to protect the seller from delays in the buyer’s payment of the sales price.Delays "tie up" both the seller’s ownership of the real estate and receipt of the net sales proceeds beyond the date or period fixed for the transfer of ownership.
Another less logical theory for enforcing appointed dates as deadlines for the occurrence of events or the approval of the conditions called for in agreements containing a time-essence clause is the purported inability of courts to estimate the compensation owed a seller for losses resulting from a delay in the close of escrow due to the buyer’s failure to perform.
However, delays in closing of a few days or even a few weeks or more, while inconvenient, rarely cause any compensable loss of money, property value, rights or property for the person attempting to cancel due to the passing of a performance deadline.Typically, the cancellation by a seller is motivated not by time, but by greater profits to be had elsewhere, i.e., "money is of the essence."
25 ans is true
27 ans is c
syndicator exercises the option, a bilateral sales contract is automatically formed,
29 whole chapter talks about right of refusal
right of refusal == A buyer’s preemptive right to purchase
34 answer is TRANSMUTE is NOT REQUIRED (answer is FALSE)
Transfer by transmutation
A husband and wife divide their community assets between them so they can now conveniently pass the assets on to their children from previous marriages.
The husband and wife do not provide for the division of the funds received by the husband from his pension fund.However, the money from the pension is community property, even though the pension is vested only in the husband’s name.
The husband places funds received from the pension into an individual retirement account (IRA) vested in the name of the husband’s revocable living trust.The husband obtains the wife’s consent to the deposits, acknowledging she is not to be named as a beneficiary on the IRA account.
Later, the wife asserts an interest in the IRA, claiming the funds are community property.
The husband claims the wife transmuted her community property interest into his separate property when she signed the consent form for the change in vesting.
Does the wife have a community property interest in the husband’s IRA?
Yes! For a written declaration to express an intent to transmute property from a community asset to a separate asset of one spouse, the declaration signed must contain an explicit statement confirming the spouse conveys and terminates the community property interest held in the property.
The use of the word transmutation is not required in a transfer document to transmute property.A transmutation would have taken place had the consent agreement contained the provision, "I give to the account holder any interest
35 ANS is all of the above
Other instruments and entities which can be used to authorize one spouse to manage and control community property include:
a power of attorney; ••
a revocable trust in which one spouse is the named trustee [Fam C §761(c)]; or ••
a limited partnership.[Corp C §15621]••
SECTION 2
for number 7
http://firsttuesdayjournal.com/recovery-of-residential-turnover-costs/
for number 5
The good faith requirement prevents an intentional exploitation of the balancing hardships rule.
http://firsttuesdayjournal.com/encroachments-crossing-the-line/
for number 22
Today, the remaining goal of usury laws is the prevention of loan-sharking by private lenders – charging interest at a higher rate than the rate established by the usury laws. [CC §1916-3(b)]
http://firsttuesdayjournal.com/usury-and-the-private-lender/
for myself about ALTD
http://firsttuesdayjournal.com/notes-variations-and-uses/
FOR 1031
http://firsttuesdayjournal.com/an-installment-sale-coupled-with-a-%c2%a71031/
1 agent can not act as himself (ans is false)
for number 4
For Sale” sign regulations | first tuesday journal online Feb 1, 2008 ... Signs in mobilehome parks may be up to 24 inches wide and 36 inches ... The right to display mobilehome “For Sale” signs extends to brokers ...
5 answer is TRUE
has no more than 4 years
8
A listing agent owes no duty to a prospective buyer to address the existence, much less the nature, of an easement located on the listed property.
12
In addition, garage door openers installed after January 1, 1993 are required to have a sensor which, when garage door movement is interrupted or misaligned, causes a closing door to open and prevents an open door from closing.[Health & S C §19890(b)]
17
Lead-based paint is defined as paint or other surface coating that contains lead equal to at least 1.0 milligram per square centimeter or 0.5% by weight.[24 CFR §35.86; 40 CFR §745.103] == so answer is false
\
32 ans is true
buyer-occupants are frequently unwilling to purchase property in foreclosure since the property is often:
physically damaged or unattractive•• due to deferred maintenance; and
improperly encumbered•• since either the buyer cannot assume or will not assume the loan on the terms demanded, or the property cannot be refinanced for an amount sufficient to pay off the existing loan and the lender will not agree to a short payoff.
15 answer is true
Actual use of the NHD Statement by sellers and their agents is mandated on the sale of one-to-four unit residential properties, called targeted properties.
18 answer is true
The seller and the listing broker must each keep a copy of the disclosure statement for at least three years
19 ANSWER IS both true
When conditions are the subject of contingency provisions, the conditions are initially distinguished by whether they:
do ••occur (events and activities), called event-occurrence contingencies; or
are ••approved (information, data, documents and reports), called further-approval or personal-satisfaction contingencies.
22 answer is TRUE
The existence of an oral or written contingency provision in a purchase agreement does not render the agreement void, as though it were a mere illusory contract which never was binding
24 answer is true (time is of the essence)
The "common understanding" said to exist as the purpose for including a time-essence clause in a purchase agreement is to protect the seller from delays in the buyer’s payment of the sales price.Delays "tie up" both the seller’s ownership of the real estate and receipt of the net sales proceeds beyond the date or period fixed for the transfer of ownership.
Another less logical theory for enforcing appointed dates as deadlines for the occurrence of events or the approval of the conditions called for in agreements containing a time-essence clause is the purported inability of courts to estimate the compensation owed a seller for losses resulting from a delay in the close of escrow due to the buyer’s failure to perform.
However, delays in closing of a few days or even a few weeks or more, while inconvenient, rarely cause any compensable loss of money, property value, rights or property for the person attempting to cancel due to the passing of a performance deadline.Typically, the cancellation by a seller is motivated not by time, but by greater profits to be had elsewhere, i.e., "money is of the essence."
25 ans is true
27 ans is c
syndicator exercises the option, a bilateral sales contract is automatically formed,
29 whole chapter talks about right of refusal
right of refusal == A buyer’s preemptive right to purchase
34 answer is TRANSMUTE is NOT REQUIRED (answer is FALSE)
Transfer by transmutation
A husband and wife divide their community assets between them so they can now conveniently pass the assets on to their children from previous marriages.
The husband and wife do not provide for the division of the funds received by the husband from his pension fund.However, the money from the pension is community property, even though the pension is vested only in the husband’s name.
The husband places funds received from the pension into an individual retirement account (IRA) vested in the name of the husband’s revocable living trust.The husband obtains the wife’s consent to the deposits, acknowledging she is not to be named as a beneficiary on the IRA account.
Later, the wife asserts an interest in the IRA, claiming the funds are community property.
The husband claims the wife transmuted her community property interest into his separate property when she signed the consent form for the change in vesting.
Does the wife have a community property interest in the husband’s IRA?
Yes! For a written declaration to express an intent to transmute property from a community asset to a separate asset of one spouse, the declaration signed must contain an explicit statement confirming the spouse conveys and terminates the community property interest held in the property.
The use of the word transmutation is not required in a transfer document to transmute property.A transmutation would have taken place had the consent agreement contained the provision, "I give to the account holder any interest
35 ANS is all of the above
Other instruments and entities which can be used to authorize one spouse to manage and control community property include:
a power of attorney; ••
a revocable trust in which one spouse is the named trustee [Fam C §761(c)]; or ••
a limited partnership.[Corp C §15621]••
SECTION 2
for number 7
http://firsttuesdayjournal.com/recovery-of-residential-turnover-costs/
for number 5
The good faith requirement prevents an intentional exploitation of the balancing hardships rule.
http://firsttuesdayjournal.com/encroachments-crossing-the-line/
for number 22
Today, the remaining goal of usury laws is the prevention of loan-sharking by private lenders – charging interest at a higher rate than the rate established by the usury laws. [CC §1916-3(b)]
http://firsttuesdayjournal.com/usury-and-the-private-lender/
for myself about ALTD
http://firsttuesdayjournal.com/notes-variations-and-uses/
FOR 1031
http://firsttuesdayjournal.com/an-installment-sale-coupled-with-a-%c2%a71031/
9
When a lender breaches its oral commitment to lend, the borrower’s reliance on anything less
than an unconditional written loan commitment is not legally justified — even though the
borrower had no realistic choice other than to rely on the lender’s oral promises. As
14 ans is A
note. Guarantor
To protect the private lender or carryback seller from loss due to a default on his trust deed note,
the private lender or seller may require a third party with sufficient assets to become liable on
call for all amounts due under the note and trust deed, called a put option.
By guaranteeing the note, a guarantor literally agrees to buy the note from the private lender or
carryback seller, a legal process called subrogation or equitable assignment.
The private lender or carryback seller has three types of third party assurances:
• a co-owner’s signature on the note and trust deed;
• a co-signer’s signature on the note only; or
• a personal guarantee of the note by one other than the buyer. When a third party signs the note, the third party becomes liable for repayment of the note,
subject to anti-deficiency rules protecting co-owners on any type of foreclosures
17 ans is D
However, an advisor, such as a broker or attorney, assisting the buyer or seller to mask the
change of ownership from the lender with the primary purpose of avoiding the lender’s due-on
enforcement, can be held liable for wrongfully interfering with the lender’s right to call or recast
the loan, an offense called tortious interference with prospective economic advantage.
The advisor’s liability arises based on the extent to which his actions were specifically intended
to conceal the transfer and prevent a call by the lender, and on the foreseeability the lender
would incur losses due to the concealment. [J’Aire Corporation v.Gregory (1979) 24 C3d
799]
27 answer is full and equity , right
The two variations of the all-inclusive trust deed (AITD), the full payoff and the equity payoff,
are differentiated by the amount of the payoff demand the carryback seller can request
for satisfaction of the all-inclusive note and reconveyance of the AITD. [See Forms 442 and
443 accompanying this chapter]
33 an is right b
To be classified as passive income category property, rentals only need to be occupied by
tenants for an average of more than 30 days. The over 30 days’ occupancy rule, together with
the owner’s active participation in its operations, locks reporting of a property’s income, expenses,
interest and depreciation in the passive income category as rental income. [See IRS
Form 1040, Schedule E]
34 right 25000
Rental operating losses remaining after the offset of other rental and passive business income or
profits can be deducted from the landlord’s AGI in amounts of up to $25,000 a year to establish
the landlord’s taxable
36 i am wrong , right ans is direct expen
Both brokers and sales agents employed as independent contractors qualify for the home office
deduction under the same rules. If the licensee qualifies for the home office deduction,
the deductible home office expenses include:
• the direct expenses attributable to the home office area used exclusively in the business;
and
When a lender breaches its oral commitment to lend, the borrower’s reliance on anything less
than an unconditional written loan commitment is not legally justified — even though the
borrower had no realistic choice other than to rely on the lender’s oral promises. As
14 ans is A
note. Guarantor
To protect the private lender or carryback seller from loss due to a default on his trust deed note,
the private lender or seller may require a third party with sufficient assets to become liable on
call for all amounts due under the note and trust deed, called a put option.
By guaranteeing the note, a guarantor literally agrees to buy the note from the private lender or
carryback seller, a legal process called subrogation or equitable assignment.
The private lender or carryback seller has three types of third party assurances:
• a co-owner’s signature on the note and trust deed;
• a co-signer’s signature on the note only; or
• a personal guarantee of the note by one other than the buyer. When a third party signs the note, the third party becomes liable for repayment of the note,
subject to anti-deficiency rules protecting co-owners on any type of foreclosures
17 ans is D
However, an advisor, such as a broker or attorney, assisting the buyer or seller to mask the
change of ownership from the lender with the primary purpose of avoiding the lender’s due-on
enforcement, can be held liable for wrongfully interfering with the lender’s right to call or recast
the loan, an offense called tortious interference with prospective economic advantage.
The advisor’s liability arises based on the extent to which his actions were specifically intended
to conceal the transfer and prevent a call by the lender, and on the foreseeability the lender
would incur losses due to the concealment. [J’Aire Corporation v.Gregory (1979) 24 C3d
799]
27 answer is full and equity , right
The two variations of the all-inclusive trust deed (AITD), the full payoff and the equity payoff,
are differentiated by the amount of the payoff demand the carryback seller can request
for satisfaction of the all-inclusive note and reconveyance of the AITD. [See Forms 442 and
443 accompanying this chapter]
33 an is right b
To be classified as passive income category property, rentals only need to be occupied by
tenants for an average of more than 30 days. The over 30 days’ occupancy rule, together with
the owner’s active participation in its operations, locks reporting of a property’s income, expenses,
interest and depreciation in the passive income category as rental income. [See IRS
Form 1040, Schedule E]
34 right 25000
Rental operating losses remaining after the offset of other rental and passive business income or
profits can be deducted from the landlord’s AGI in amounts of up to $25,000 a year to establish
the landlord’s taxable
36 i am wrong , right ans is direct expen
Both brokers and sales agents employed as independent contractors qualify for the home office
deduction under the same rules. If the licensee qualifies for the home office deduction,
the deductible home office expenses include:
• the direct expenses attributable to the home office area used exclusively in the business;
and
1. An option to purchase as part of a month-to-month tenancy is subject to change on:
a) 20 days’ written notice from the landlord.
b) 60 days’ written notice from the landlord.
c) 30 days’ written notice from the landlord.
d) 15 days’ written notice from the landlord.
2. After being served with a 30-day notice of a change in rental terms, the month-to-month tenant has all the following options, except:
a) remain in possession and refuse to comply with the new rental terms.
b) serve the landlord with his own changes to the rental agreement.
c) serve the landlord with a 30-day notice of intent to vacate.
d) remain in possession and comply with the new rental terms.
3. A landlord must prevent _______________ to all persons who may be on the leased premises.
a) any threat of injury
b) foreseeable injury
c) unreasonable treatment
d) None of the above.
4. In order to prevent harm to others on the leased property, a landlord must inspect:
a) only the entrance to the premises.
b) all entry points available to the tenant.
c) every aspect of the leased property.
d) all entry points available to the landlord.
5. A landlord is not required to:
a) expend extraordinary amounts of time and money conducting investigations into dangerous conditions.
b) address dangerous conditions in public areas on his property.
c) inspect the premises when he enters for any single purpose.
d) conduct an inspection of the leased premises for the purpose of making the premises safe.
6. The discount rate is the interest rate the Federal Reserve charges banks and thrifts who borrow funds directly from the Fed and is important to private money lenders:
a) who arrange their loans through real estate brokers.
b) who are licensed real estate brokers.
c) who are not licensed real estate brokers and who do not arrange their loans through real estate brokers.
d) None of the above.
7. The maximum annual discount rate for calculating usurious rates on non-exempt loans secured by real estate is the greater of:
a) 10% per year or the discount rate plus 10%.
b) 20% per year or the discount rate plus 5%.
c) 15% per year or the discount rate plus 2.5%.
d) 10% per year or the discount rate plus 5%.
8. The prime rate is a base rate used by banks to price:
a) one-year T-bills.
b) short-term business loans.
c) five-year adjustable rate mortgages.
d) fixed rate mortgages.
9. A borrower’s reliance on anything less than a(n) _______________________ from a lender is not legally justified.
a) oral commitment
b) conditional loan commitment
c) verbal assurance
d) unconditional written loan commitment
10. Oral assurances regarding conditional written loan commitments are _______________ binding.
a) always
b) conditionally
c) never
d) None of the above.
11. Special provisions added to a note serve to:
a) protect the noteholder.
b) comply with statutorily mandated provisions.
c) Both a. and b.
d) Neither a. nor b.
12. A late charge provision structured as a default interest rate is _______________ since it is a penalty provision in disguise.
a) unenforceable.
b) not considered a penalty.
c) Both a. and b.
d) Neither a. nor b.
13. A _____________________ is a final lump sum payment of remaining unpaid principal, which is due on an earlier date than had the periodic payment schedule continued until the principal was fully amortized.
a) due-date payment
b) balloon payment
c) compound payment
d) All of the above.
14. A private lender or carryback seller has three types of third-party assurances to protect from loss due to a default on his trust deed note. The third-party assurances do not include:
a) a government guarantee. (this is right afterall)
b) a co-owner’s signature on the note and trust deed.
c) a co-signer’s signature on the note only. (wrong answer)
d) a personal guarantee of the note by one other than the buyer.
15. _______________ is a federal legislative process which prevents a resident from using his state right to convey real estate subject to trust deed liens without the lender interfering with the transfer of ownership.
a) acceleration.
b) early payoff.
c) prepayment.
d) preemption.
16. A due-on clause is triggered by a lease for any term coupled with an option to purchase or a lease with a term over:
a) three years.
b) two years.
c) one year.
d) six months.
17. A broker assisting a buyer or seller to mask the change of ownership from the lender with the primary purpose of avoiding the lender’s due-on enforcement can be held liable for wrongfully interfering with the lender’s right to call the loan, an offense called:
a) tortious interference with interest differential.
b) tortious fraud. wrong answer
c) tortious masking of the security.
d) tortious interference with prospective economic advantage. (this is right afterall)
18. Anti-deficiency non-recourse rules no longer apply to a carryback debt if the debt becomes secured by real estate other than the real estate sold, called:
a) exhaustion of security.
b) substitution of security.
c) release of security.
d) None of the above.
19. A lender might require a borrower to obtain a letter of credit as a condition for funding a(n):
a) purchase-assist loan.
b) security investment.
c) home inspection.
d) None of the above.
20. When a note is _____________________ property other than the property sold, anti-deficiency rules do not bar the lender from obtaining a money judgment.
a) no longer a lien on
b) secured by
c) not secured by
d) All of the above.
21. A deficiency judgment is based on the cash value of the secured real estate consistent with market conditions at the time of the foreclosure sale, called the __________ of the property.
a) asset price deflation
b) intrinsic value
c) current resale value
d) fair market value
22. A buyer and seller should determine and analyze the risks and benefits accompanying their use of an unescrowed, unrecorded and uninsured land sales contract before they:
a) sign and deliver an offer to purchase on a land sales contract.
b) employ a sales agent.
c) open a sales escrow..
d) None of the above.
23. Taxwise, ___________ are recharacterized by the Internal Revenue Service, the state Franchise Tax Board and the county assessor as carryback financing or land sales contracts.
a) conventional purchase agreements
b) lease-option sales
c) reverse mortgages
d) All of the above.
24. Today, the remaining goal of usury laws is the prevention of ________________ by private lenders.
a) forfeiture of interest
b) loan sharking
c) exemption
d) None of the above.
25. The most common penalty suffered by a lender for usury is:
a) the nullifying of all principal for the loan.
b) the reduction of principal for the loan.
c) the forfeiture of all interest on the loan.
d) All of the above.
26. A(n) __________ is also called a wraparound note or overriding note.
a) land sales contract
b) lease-option sale
c) shared equity note
d) all-inclusive note
27. The two variations of the all-inclusive trust deed (AITD), the ___________ and the _________________, are differentiated by the amount of the payoff demand the carryback seller can request for satisfaction of the all-inclusive note and reconveyance of the AITD.
a) full payoff; equity payoff ((this is right afterall))
b) short payoff; equity payoff
c) short payoff; full payoff
d) partial payoff; equity payoff
28. A short sale is a real estate sales transaction in which:
a) the lender offers the seller a deferred repayment plan.
b) the lender accepts the seller’s net proceeds from the sale in full satisfaction of the loan.
c) the seller receives cash from the lender in exchange for his equity in the property.
d) All of the above.
29. A default in payments is the legal step taken by the owner to:
a) force the lender to foreclose.
b) force the lender to reduce his principal.
c) avoid foreclosure.
d) All of the above.
30. To qualify for FHA pre-foreclosure sale treatment, a homeowner must be in default on at least ____________ monthly payment(s).
a) one
b) three (this is right afterall)
c) 12
d) 24
31. For a landlord to qualify with the IRS as an owner-operator of a real estate related trade or business:
a) the business must render professional real estate services, or manage, invest in or develop real estate.
b) the landlord must spend a minimum amount of time participating in the real estate related business.
c) Neither a. nor b.
d) Both a. and b.
32. To qualify as a material participant in a joint ownership between a married couple, the managing spouse must spend __________hours annually managing the rental property.
a) more than 500
b) at least 1200
c) less than 100
d) 48
33. For rent to be passive category income, rentals need only be occupied by tenants for an average of:
a) less than 30 days.
b) more than 30 days.
c) more than 60 days.
d) less than 60 days.
34. Rental operating losses remaining after offsetting other passive income can be deducted from the landlord’s adjusted gross income (AGI) in amounts of losses up to:
a) $100,000.
b) half the landlord’s AGI.
c) $75,000.
d) $25,000. (this is right afterall)
35. To qualify for the income for tax deduction of home office expenses, the licensee must:
a) be a real estate broker.
b) perform all of his business while working in the home office.
c) use the home office as the principal place of business.
d) apply for a home office exemption with the Department of Real Estate (DRE).
36. _______________ are deductible home office expenses attributable to the home office area used exclusively in the brokerage business.
a) Client expenses
b) Direct expenses (this is right afterall)
c) Indirect expenses
d) All of the above.
37. A licensee with both a home office and a non-residential office:
a) may still qualify for a home office deduction.
b) may not deduct home office expenses.
c) must perform half of his business activities at his home office.
d) None of the above.
38. Co-owners vested as tenants in common (TIC) who jointly operate a shared property are considered to be:
a) partners.
b) agents of one another.
c) Both a. and b.
d) Neither a. nor b.
39. It is the ___________ and ___________ of co-owners that determines whether a state law partnership exists.
a) location; effort
b) investment; individual conduct
c) contract; agreement
d) interaction; coordinated conduct (this is right afterall)
40. A co-owner in a tenants in common (TIC) vesting has the right to force the sale of the property via a(n):
a) arbitration award.
b) partition action.
c) trustee’s sale.
d) Any of the above.
41. Tenants in common (TIC) ownership does not rise to tax partner status unless the co-owners are operating as:
a) a declared partnership.
b) independent owners.
c) a corporation.
d) All of the above.
42. The ___________ the assessed value, the ___________ the property tax.
a) higher; greater
b) lower; greater
c) higher; lower
d) None of the above.
43. Every person acquiring an ownership interest in real estate must file a change of ownership report with the:
a) county recorder.
b) Board of Supervisors.
c) Department of Real Estate.
d) county assessor. (this is right afterall)
44. For purposes of the parent-child exclusion, a child does not include a:
a) child who lives with his parents.
b) stepchild.
c) child who was adopted after 18 years of age. (this is right afterall)
d) son-in-law.
45. Parents can combine their separate ______________ assessment exclusions to jointly convey property for a combined exclusion of ______________.
a) $1,500,000; $2,000,000
b) $2,000,000; $2,500,000
c) $2,000,000; $4,000,000
d) $1,000,000; $2,000,000
Click the Finish button below to submit your test for grading.
Exam Score: 68% (will be higher if correctly answered)
You did not pass.
You answered 31 out of 45 questions correctly. A score of 70% or higher is required to pass this exam. You may now return to your Student Homepage and check your course progress.
If you have any questions, ouyour test for grading.
a) 20 days’ written notice from the landlord.
b) 60 days’ written notice from the landlord.
c) 30 days’ written notice from the landlord.
d) 15 days’ written notice from the landlord.
2. After being served with a 30-day notice of a change in rental terms, the month-to-month tenant has all the following options, except:
a) remain in possession and refuse to comply with the new rental terms.
b) serve the landlord with his own changes to the rental agreement.
c) serve the landlord with a 30-day notice of intent to vacate.
d) remain in possession and comply with the new rental terms.
3. A landlord must prevent _______________ to all persons who may be on the leased premises.
a) any threat of injury
b) foreseeable injury
c) unreasonable treatment
d) None of the above.
4. In order to prevent harm to others on the leased property, a landlord must inspect:
a) only the entrance to the premises.
b) all entry points available to the tenant.
c) every aspect of the leased property.
d) all entry points available to the landlord.
5. A landlord is not required to:
a) expend extraordinary amounts of time and money conducting investigations into dangerous conditions.
b) address dangerous conditions in public areas on his property.
c) inspect the premises when he enters for any single purpose.
d) conduct an inspection of the leased premises for the purpose of making the premises safe.
6. The discount rate is the interest rate the Federal Reserve charges banks and thrifts who borrow funds directly from the Fed and is important to private money lenders:
a) who arrange their loans through real estate brokers.
b) who are licensed real estate brokers.
c) who are not licensed real estate brokers and who do not arrange their loans through real estate brokers.
d) None of the above.
7. The maximum annual discount rate for calculating usurious rates on non-exempt loans secured by real estate is the greater of:
a) 10% per year or the discount rate plus 10%.
b) 20% per year or the discount rate plus 5%.
c) 15% per year or the discount rate plus 2.5%.
d) 10% per year or the discount rate plus 5%.
8. The prime rate is a base rate used by banks to price:
a) one-year T-bills.
b) short-term business loans.
c) five-year adjustable rate mortgages.
d) fixed rate mortgages.
9. A borrower’s reliance on anything less than a(n) _______________________ from a lender is not legally justified.
a) oral commitment
b) conditional loan commitment
c) verbal assurance
d) unconditional written loan commitment
10. Oral assurances regarding conditional written loan commitments are _______________ binding.
a) always
b) conditionally
c) never
d) None of the above.
11. Special provisions added to a note serve to:
a) protect the noteholder.
b) comply with statutorily mandated provisions.
c) Both a. and b.
d) Neither a. nor b.
12. A late charge provision structured as a default interest rate is _______________ since it is a penalty provision in disguise.
a) unenforceable.
b) not considered a penalty.
c) Both a. and b.
d) Neither a. nor b.
13. A _____________________ is a final lump sum payment of remaining unpaid principal, which is due on an earlier date than had the periodic payment schedule continued until the principal was fully amortized.
a) due-date payment
b) balloon payment
c) compound payment
d) All of the above.
14. A private lender or carryback seller has three types of third-party assurances to protect from loss due to a default on his trust deed note. The third-party assurances do not include:
a) a government guarantee. (this is right afterall)
b) a co-owner’s signature on the note and trust deed.
c) a co-signer’s signature on the note only. (wrong answer)
d) a personal guarantee of the note by one other than the buyer.
15. _______________ is a federal legislative process which prevents a resident from using his state right to convey real estate subject to trust deed liens without the lender interfering with the transfer of ownership.
a) acceleration.
b) early payoff.
c) prepayment.
d) preemption.
16. A due-on clause is triggered by a lease for any term coupled with an option to purchase or a lease with a term over:
a) three years.
b) two years.
c) one year.
d) six months.
17. A broker assisting a buyer or seller to mask the change of ownership from the lender with the primary purpose of avoiding the lender’s due-on enforcement can be held liable for wrongfully interfering with the lender’s right to call the loan, an offense called:
a) tortious interference with interest differential.
b) tortious fraud. wrong answer
c) tortious masking of the security.
d) tortious interference with prospective economic advantage. (this is right afterall)
18. Anti-deficiency non-recourse rules no longer apply to a carryback debt if the debt becomes secured by real estate other than the real estate sold, called:
a) exhaustion of security.
b) substitution of security.
c) release of security.
d) None of the above.
19. A lender might require a borrower to obtain a letter of credit as a condition for funding a(n):
a) purchase-assist loan.
b) security investment.
c) home inspection.
d) None of the above.
20. When a note is _____________________ property other than the property sold, anti-deficiency rules do not bar the lender from obtaining a money judgment.
a) no longer a lien on
b) secured by
c) not secured by
d) All of the above.
21. A deficiency judgment is based on the cash value of the secured real estate consistent with market conditions at the time of the foreclosure sale, called the __________ of the property.
a) asset price deflation
b) intrinsic value
c) current resale value
d) fair market value
22. A buyer and seller should determine and analyze the risks and benefits accompanying their use of an unescrowed, unrecorded and uninsured land sales contract before they:
a) sign and deliver an offer to purchase on a land sales contract.
b) employ a sales agent.
c) open a sales escrow..
d) None of the above.
23. Taxwise, ___________ are recharacterized by the Internal Revenue Service, the state Franchise Tax Board and the county assessor as carryback financing or land sales contracts.
a) conventional purchase agreements
b) lease-option sales
c) reverse mortgages
d) All of the above.
24. Today, the remaining goal of usury laws is the prevention of ________________ by private lenders.
a) forfeiture of interest
b) loan sharking
c) exemption
d) None of the above.
25. The most common penalty suffered by a lender for usury is:
a) the nullifying of all principal for the loan.
b) the reduction of principal for the loan.
c) the forfeiture of all interest on the loan.
d) All of the above.
26. A(n) __________ is also called a wraparound note or overriding note.
a) land sales contract
b) lease-option sale
c) shared equity note
d) all-inclusive note
27. The two variations of the all-inclusive trust deed (AITD), the ___________ and the _________________, are differentiated by the amount of the payoff demand the carryback seller can request for satisfaction of the all-inclusive note and reconveyance of the AITD.
a) full payoff; equity payoff ((this is right afterall))
b) short payoff; equity payoff
c) short payoff; full payoff
d) partial payoff; equity payoff
28. A short sale is a real estate sales transaction in which:
a) the lender offers the seller a deferred repayment plan.
b) the lender accepts the seller’s net proceeds from the sale in full satisfaction of the loan.
c) the seller receives cash from the lender in exchange for his equity in the property.
d) All of the above.
29. A default in payments is the legal step taken by the owner to:
a) force the lender to foreclose.
b) force the lender to reduce his principal.
c) avoid foreclosure.
d) All of the above.
30. To qualify for FHA pre-foreclosure sale treatment, a homeowner must be in default on at least ____________ monthly payment(s).
a) one
b) three (this is right afterall)
c) 12
d) 24
31. For a landlord to qualify with the IRS as an owner-operator of a real estate related trade or business:
a) the business must render professional real estate services, or manage, invest in or develop real estate.
b) the landlord must spend a minimum amount of time participating in the real estate related business.
c) Neither a. nor b.
d) Both a. and b.
32. To qualify as a material participant in a joint ownership between a married couple, the managing spouse must spend __________hours annually managing the rental property.
a) more than 500
b) at least 1200
c) less than 100
d) 48
33. For rent to be passive category income, rentals need only be occupied by tenants for an average of:
a) less than 30 days.
b) more than 30 days.
c) more than 60 days.
d) less than 60 days.
34. Rental operating losses remaining after offsetting other passive income can be deducted from the landlord’s adjusted gross income (AGI) in amounts of losses up to:
a) $100,000.
b) half the landlord’s AGI.
c) $75,000.
d) $25,000. (this is right afterall)
35. To qualify for the income for tax deduction of home office expenses, the licensee must:
a) be a real estate broker.
b) perform all of his business while working in the home office.
c) use the home office as the principal place of business.
d) apply for a home office exemption with the Department of Real Estate (DRE).
36. _______________ are deductible home office expenses attributable to the home office area used exclusively in the brokerage business.
a) Client expenses
b) Direct expenses (this is right afterall)
c) Indirect expenses
d) All of the above.
37. A licensee with both a home office and a non-residential office:
a) may still qualify for a home office deduction.
b) may not deduct home office expenses.
c) must perform half of his business activities at his home office.
d) None of the above.
38. Co-owners vested as tenants in common (TIC) who jointly operate a shared property are considered to be:
a) partners.
b) agents of one another.
c) Both a. and b.
d) Neither a. nor b.
39. It is the ___________ and ___________ of co-owners that determines whether a state law partnership exists.
a) location; effort
b) investment; individual conduct
c) contract; agreement
d) interaction; coordinated conduct (this is right afterall)
40. A co-owner in a tenants in common (TIC) vesting has the right to force the sale of the property via a(n):
a) arbitration award.
b) partition action.
c) trustee’s sale.
d) Any of the above.
41. Tenants in common (TIC) ownership does not rise to tax partner status unless the co-owners are operating as:
a) a declared partnership.
b) independent owners.
c) a corporation.
d) All of the above.
42. The ___________ the assessed value, the ___________ the property tax.
a) higher; greater
b) lower; greater
c) higher; lower
d) None of the above.
43. Every person acquiring an ownership interest in real estate must file a change of ownership report with the:
a) county recorder.
b) Board of Supervisors.
c) Department of Real Estate.
d) county assessor. (this is right afterall)
44. For purposes of the parent-child exclusion, a child does not include a:
a) child who lives with his parents.
b) stepchild.
c) child who was adopted after 18 years of age. (this is right afterall)
d) son-in-law.
45. Parents can combine their separate ______________ assessment exclusions to jointly convey property for a combined exclusion of ______________.
a) $1,500,000; $2,000,000
b) $2,000,000; $2,500,000
c) $2,000,000; $4,000,000
d) $1,000,000; $2,000,000
Click the Finish button below to submit your test for grading.
Exam Score: 68% (will be higher if correctly answered)
You did not pass.
You answered 31 out of 45 questions correctly. A score of 70% or higher is required to pass this exam. You may now return to your Student Homepage and check your course progress.
If you have any questions, ouyour test for grading.
tip on real estate matter 2 91 score
QUESTION
44. Mortgage rates cannot drop further than the 10-year Treasury Note (T-Note) rate, plus:
a) 1.4%.
b) 2.4%.
c) 3.4%.
ANSER IS 1.4
Mortgage rates cannot drop further than the 10-year??
http://firsttuesdayjournal.com/30-years-of-summer-followed-by-30-years-of-winter/
The construction industry felt the brunt of California’s job losses, due to ____________ in the mid-2000s.
a) massive overbuilding
b) massive underbuilding
c) significant underspending
ANSWER IS MASSIVE OVERBUILD
http://firsttuesdayjournal.com/can-the-timing-and-strength-of-future-economic-recovery-be-divined-from-the-past/
41. Low labor force participation (LFP) among 25-34 year olds indicates this group will become first-time homebuyers:
a) earlier than prior generations.
b) later than prior generations.
c) at a higher rate than prior generations.
ANSWER IS LATER THAN PRIOR GENERATION
http://firsttuesdayjournal.com/the-demographics-forging-california%E2%80%99s-real-estate-market-a-study-of-forthcoming-trends-and-opportunities-
%E2%80%93-part-i/
13. The discount rate is the interest rate the Federal Reserve (the Fed) charges banks and thrifts who borrow funds:
a) from Wall Street.
b) from loan sharks.
c) directly from the Federal Reserve.
ANSWER IS DIRECTLY FROM FED ..HOW COME I HAVE SECOND HESITATION?
14. The maximum annual interest rate on non-exempt loans secured by real estate is the greater of 10% per year or:
b) the discount rate plus 5%.
19. A late charge provision structured as an increased interest rate on the entire remaining principal on default is ____________ since it is a
penalty provision in disguise.
a) not considered a penalty
b) unenforceable
c) fair dealing
answer unenforcable
Disguised penalty provisions are void and thus unenforceable. To be enforceable, the carryback seller’s compensation under a late charge
provision is limited solely to his monetary losses caused by the delinquency in the payment. [Garrett v. Coast and Southern Federal Savings and
Loan Association (1973) 9 C3d 731]
http://firsttuesdayjournal.com/late-charges-and-grace-periods/
1. A tenant who fails to pay rent or otherwise materially breaches a lease may be served with a ____________ to pay or quit.
b) three-day notice
2. In the event a tenant fails to pay late charges, the landlord’s viable options are:
c) Either a. or b.
3. A residential landlord has ____________ to either refund a tenant’s security deposit or provide an itemized list of deductions.
c) 21 days
4. A residential landlord may not deduct amounts from the security deposit to:
b) repair defects which existed prior to the tenant’s occupancy.
5. After a residential tenant vacates, the residential landlord must:
b) provide the tenant with an itemized statement for any deductions to the security deposit.
6. If a ____________ files an unlawful detainer (UD) action and later accepts a partial rent payment, the UD action cannot go forward to eviction.
a) residential landlord
7. A partial payment agreement entered into by a residential landlord and tenant memorializes the landlord’s receipt of partial rent and:
c) Both a. and b.
8. An option to purchase as part of a month-to-month tenancy is subject to change on:
c) 30 days’ written notice from the landlord.
9. After being served with a 30-day notice of a change in rental terms, the month-to-month tenant may:
a) remain in possession and comply with the new rental terms.
10. A landlord must prevent ____________ to all persons who may be on the leased premises.
a) foreseeable injury
11. In order to prevent harm to others on the leased property, a landlord must use reasonable care in the repair and maintenance of the leased premises, and inspect the property:
a) whenever entry is available.
.
12. A landlord is not required to:
b) expend extraordinary amounts of time and money conducting investigations into dangerous conditions.
13. The discount rate is the interest rate the Federal Reserve (the Fed) charges banks and thrifts who borrow funds:
c) directly from the Federal Reserve.
14. The maximum annual interest rate on non-exempt loans secured by real estate is the greater of 10% per year or:
b) the discount rate plus 5%.
15. The prime rate is a base rate used by banks to price:
b) short-term business loans.
16. A borrower’s reliance on anything less than a(n) ____________ from a lender is not legally enforceable.
b) unconditional written loan commitment
17. Oral assurances regarding conditional written loan commitments are ____________ binding.
c) not
18. Special provisions added to a promissory note serve to:
c) protect the noteholder.
19. A late charge provision structured as an increased interest rate on the entire remaining principal on default is ____________ since it is a penalty provision in disguise.
b) unenforceable
20. A(n) ____________ is a final lump sum payment of remaining unpaid principal.
c) balloon payment
21. By guaranteeing the note, a guarantor agrees to buy the note from the private lender or carryback seller, a process called:
a) subrogation.
22. ____________ is a federal legislative process which prevents a resident from using his state right to convey real estate without the lender interfering in the transfer of ownership.
b) Pre-emption
23. A due-on clause is triggered by a lease with a term over:
c) three years.
24. Due-on enforcement is not triggered when an owner of a one-to-four residential unit:
c) transfers ownership to a spouse or child who occupies the property.
25. The amount of a deficiency judgment is based on the ____________ of the property.
a) fair market value (FMV)
26. The seller under the land sales contract, recharacterized as a(n) ____________, retains legal title as security for the buyer’s promised payment of the balance of the purchase price.
b) vendor
27. Lease-option sales are recharacterized by the ____________, the state Franchise Tax Board and the county assessor as carryback financing or land sales contracts.
c) Department of Real Estate
28. Today, the goal of usury laws is the prevention of ____________ by private lenders.
c) loan sharking
29. The most common penalty suffered by a lender for usury is:
b) the forfeiture of all interest on the loan.
30. A short sale is a real estate sales transaction in which the lender:
c) accepts the seller’s net proceeds from the sale in full satisfaction of the loan.
31. A default in payments is the first step taken by the owner to:
b) avoid foreclosure.
32. To qualify for FHA pre-foreclosure sale treatment, a homeowner must be in default on at least ____________ monthly payment(s).
b) three
33. All income, profit or loss from residential and nonresidential rental properties with an average occupancy of more than ____________ is reported by the owner in the passive income category.
c) 30 days
34. All reportable rental losses are reported as:
c) Both a. and b.
35. Rental operating losses remaining after offsetting other passive income can be deducted from the landlord’s adjusted gross income (AGI) in amounts of:
b) $25,000.
36. A landlord must spend more than 750 hours and ____________ rendering real estate services each year to offset business or investment income with his rental operating losses.
c) more than half his time
37. To qualify for the tax deduction of home office expenses, the licensee must:
b) use the home office as the principal place of business.
38. Local taxes are limited to ____________ of the assessed value each year.
b) 2%
39. The most influential economic factor on the California real estate market is:
b) employment.
40. Long-term demand is indicated by:
c) end-users.
41. Low labor force participation (LFP) among 25-34 year olds indicates this group will become first-time homebuyers:
a) earlier than prior generations.
42. Since 2008, the recovery has:
b) continued on a bumpy plateau.
43. Members of the rentier class earn their income:
c) passively.
44. Mortgage rates cannot drop further than the 10-year Treasury Note (T-Note) rate, plus:
a) 1.4%.
45. The construction industry felt the brunt of California’s job losses, due to ____________ in the mid-2000s.
a) massive overbuilding
91 score
44. Mortgage rates cannot drop further than the 10-year Treasury Note (T-Note) rate, plus:
a) 1.4%.
b) 2.4%.
c) 3.4%.
ANSER IS 1.4
Mortgage rates cannot drop further than the 10-year??
http://firsttuesdayjournal.com/30-years-of-summer-followed-by-30-years-of-winter/
The construction industry felt the brunt of California’s job losses, due to ____________ in the mid-2000s.
a) massive overbuilding
b) massive underbuilding
c) significant underspending
ANSWER IS MASSIVE OVERBUILD
http://firsttuesdayjournal.com/can-the-timing-and-strength-of-future-economic-recovery-be-divined-from-the-past/
41. Low labor force participation (LFP) among 25-34 year olds indicates this group will become first-time homebuyers:
a) earlier than prior generations.
b) later than prior generations.
c) at a higher rate than prior generations.
ANSWER IS LATER THAN PRIOR GENERATION
http://firsttuesdayjournal.com/the-demographics-forging-california%E2%80%99s-real-estate-market-a-study-of-forthcoming-trends-and-opportunities-
%E2%80%93-part-i/
13. The discount rate is the interest rate the Federal Reserve (the Fed) charges banks and thrifts who borrow funds:
a) from Wall Street.
b) from loan sharks.
c) directly from the Federal Reserve.
ANSWER IS DIRECTLY FROM FED ..HOW COME I HAVE SECOND HESITATION?
14. The maximum annual interest rate on non-exempt loans secured by real estate is the greater of 10% per year or:
b) the discount rate plus 5%.
19. A late charge provision structured as an increased interest rate on the entire remaining principal on default is ____________ since it is a
penalty provision in disguise.
a) not considered a penalty
b) unenforceable
c) fair dealing
answer unenforcable
Disguised penalty provisions are void and thus unenforceable. To be enforceable, the carryback seller’s compensation under a late charge
provision is limited solely to his monetary losses caused by the delinquency in the payment. [Garrett v. Coast and Southern Federal Savings and
Loan Association (1973) 9 C3d 731]
http://firsttuesdayjournal.com/late-charges-and-grace-periods/
1. A tenant who fails to pay rent or otherwise materially breaches a lease may be served with a ____________ to pay or quit.
b) three-day notice
2. In the event a tenant fails to pay late charges, the landlord’s viable options are:
c) Either a. or b.
3. A residential landlord has ____________ to either refund a tenant’s security deposit or provide an itemized list of deductions.
c) 21 days
4. A residential landlord may not deduct amounts from the security deposit to:
b) repair defects which existed prior to the tenant’s occupancy.
5. After a residential tenant vacates, the residential landlord must:
b) provide the tenant with an itemized statement for any deductions to the security deposit.
6. If a ____________ files an unlawful detainer (UD) action and later accepts a partial rent payment, the UD action cannot go forward to eviction.
a) residential landlord
7. A partial payment agreement entered into by a residential landlord and tenant memorializes the landlord’s receipt of partial rent and:
c) Both a. and b.
8. An option to purchase as part of a month-to-month tenancy is subject to change on:
c) 30 days’ written notice from the landlord.
9. After being served with a 30-day notice of a change in rental terms, the month-to-month tenant may:
a) remain in possession and comply with the new rental terms.
10. A landlord must prevent ____________ to all persons who may be on the leased premises.
a) foreseeable injury
11. In order to prevent harm to others on the leased property, a landlord must use reasonable care in the repair and maintenance of the leased premises, and inspect the property:
a) whenever entry is available.
.
12. A landlord is not required to:
b) expend extraordinary amounts of time and money conducting investigations into dangerous conditions.
13. The discount rate is the interest rate the Federal Reserve (the Fed) charges banks and thrifts who borrow funds:
c) directly from the Federal Reserve.
14. The maximum annual interest rate on non-exempt loans secured by real estate is the greater of 10% per year or:
b) the discount rate plus 5%.
15. The prime rate is a base rate used by banks to price:
b) short-term business loans.
16. A borrower’s reliance on anything less than a(n) ____________ from a lender is not legally enforceable.
b) unconditional written loan commitment
17. Oral assurances regarding conditional written loan commitments are ____________ binding.
c) not
18. Special provisions added to a promissory note serve to:
c) protect the noteholder.
19. A late charge provision structured as an increased interest rate on the entire remaining principal on default is ____________ since it is a penalty provision in disguise.
b) unenforceable
20. A(n) ____________ is a final lump sum payment of remaining unpaid principal.
c) balloon payment
21. By guaranteeing the note, a guarantor agrees to buy the note from the private lender or carryback seller, a process called:
a) subrogation.
22. ____________ is a federal legislative process which prevents a resident from using his state right to convey real estate without the lender interfering in the transfer of ownership.
b) Pre-emption
23. A due-on clause is triggered by a lease with a term over:
c) three years.
24. Due-on enforcement is not triggered when an owner of a one-to-four residential unit:
c) transfers ownership to a spouse or child who occupies the property.
25. The amount of a deficiency judgment is based on the ____________ of the property.
a) fair market value (FMV)
26. The seller under the land sales contract, recharacterized as a(n) ____________, retains legal title as security for the buyer’s promised payment of the balance of the purchase price.
b) vendor
27. Lease-option sales are recharacterized by the ____________, the state Franchise Tax Board and the county assessor as carryback financing or land sales contracts.
c) Department of Real Estate
28. Today, the goal of usury laws is the prevention of ____________ by private lenders.
c) loan sharking
29. The most common penalty suffered by a lender for usury is:
b) the forfeiture of all interest on the loan.
30. A short sale is a real estate sales transaction in which the lender:
c) accepts the seller’s net proceeds from the sale in full satisfaction of the loan.
31. A default in payments is the first step taken by the owner to:
b) avoid foreclosure.
32. To qualify for FHA pre-foreclosure sale treatment, a homeowner must be in default on at least ____________ monthly payment(s).
b) three
33. All income, profit or loss from residential and nonresidential rental properties with an average occupancy of more than ____________ is reported by the owner in the passive income category.
c) 30 days
34. All reportable rental losses are reported as:
c) Both a. and b.
35. Rental operating losses remaining after offsetting other passive income can be deducted from the landlord’s adjusted gross income (AGI) in amounts of:
b) $25,000.
36. A landlord must spend more than 750 hours and ____________ rendering real estate services each year to offset business or investment income with his rental operating losses.
c) more than half his time
37. To qualify for the tax deduction of home office expenses, the licensee must:
b) use the home office as the principal place of business.
38. Local taxes are limited to ____________ of the assessed value each year.
b) 2%
39. The most influential economic factor on the California real estate market is:
b) employment.
40. Long-term demand is indicated by:
c) end-users.
41. Low labor force participation (LFP) among 25-34 year olds indicates this group will become first-time homebuyers:
a) earlier than prior generations.
42. Since 2008, the recovery has:
b) continued on a bumpy plateau.
43. Members of the rentier class earn their income:
c) passively.
44. Mortgage rates cannot drop further than the 10-year Treasury Note (T-Note) rate, plus:
a) 1.4%.
45. The construction industry felt the brunt of California’s job losses, due to ____________ in the mid-2000s.
a) massive overbuilding
91 score
