Real Estate Exam One

In this scenario, the broker acted in good faith and relied on false information provided by the seller. The buyer rescinded the contract due to fraud. Despite the fraud, the broker is entitled to a full commission because they acted in a reasonable manner and made the sale based on the information they had at the time. Additionally, the broker is entitled to indemnity for any loss caused by legal action taken by the defrauded buyer against the broker.

Completion refers to the fulfillment or accomplishment of a task or agreement. In the context of an agency relationship, completion can refer to the successful completion of the tasks or objectives outlined in the agency agreement. Once the tasks or objectives are completed, the agency relationship may come to an end. This can happen when the agent has successfully carried out their duties or when the agreed-upon time period for the agency relationship has expired.

The broker can give $50 to the buyer or seller because the advertisement clearly states that if a buyer or seller brings the ad to the broker's office and either lists or buys a property through him, they will receive $50. This implies that the broker is allowed to give referrals and is not illegal under real estate law. Commission payments are typically made to licensed individuals, but in this case, the broker is offering a separate incentive of $50 to the buyer or seller.

If the owner of a property believes that their property has been over-assessed by the county assessor, they would contact the Assessment Appeals Board. This board is responsible for handling appeals related to property assessments and ensuring that assessments are fair and accurate. They have the authority to review the assessment and make adjustments if necessary. The controller, tax collector, and department of appraisals do not typically handle assessment appeals, making the Assessment Appeals Board the correct choice in this scenario.

The correct answer is "Increase while the interest payment decreases." This means that as the interest payment decreases over time, the amount credited to the principal will increase. In a fully amortized loan, the monthly payments are equal, but the proportion of the payment that goes towards interest decreases over time while the proportion that goes towards the principal increases. This allows the borrower to pay off the loan gradually over time.

The appraiser would come to the conclusion that the wall insulation is adequate because if the inside temperature of an exterior wall is the same as the other interior walls during winter, it indicates that the insulation is effectively preventing heat loss. If the insulation was inadequate, the exterior wall would be colder than the interior walls.

When a broker runs an advertisement, they are required to disclose their name. This is important for transparency and accountability in the real estate industry. By providing their name, the broker is ensuring that potential clients have access to the necessary information to make informed decisions. It also helps establish trust between the broker and the public.

The correct way to calculate the desk cost is by dividing the total operating expenses of the firm, including salaries, rent, insurance, etc., by the number of salespersons. This calculation takes into account all the expenses incurred by the firm and divides it by the number of salespersons, giving an average cost per desk. This helps the real estate broker analyze and manage the cost of each desk in order to operate a competitive and profitable business.

The hardest and yet the most important part in the market data method of appraising is adjusting for the differences between the comparable properties and the subject property. This step is challenging because it requires a thorough analysis of various factors such as location, size, condition, amenities, and other relevant features that may affect the value of the properties. It is crucial to accurately account for these differences to ensure a fair and accurate appraisal.

A title company could make a title search by searching the records of the County Clerk's Office, County Recorder's Office, and Federal Land Office. These offices maintain different types of records related to property ownership and transactions. The County Clerk's Office keeps records of deeds, mortgages, and liens, while the County Recorder's Office maintains records of property ownership and transfers. The Federal Land Office maintains records of federal land grants and patents. By searching all of these offices, a title company can gather comprehensive information about a property's ownership history and any encumbrances or claims on the title.

A written employment contract is the most essential element to create an enforceable broker-principal relationship concerning a right, title, or interest in real property. This contract would outline the terms and conditions of the employment, including the broker's responsibilities, compensation, and the principal's expectations. It would ensure that both parties are aware of their rights and obligations, and provide a legal framework for the relationship. Without a written employment contract, it would be difficult to establish the terms of the relationship and enforce any agreements made between the parties.

Individuals normally do not have eminent domain rights. Eminent domain is the power of the government to take private property for public use, but it must provide just compensation to the owner. This power is typically held by the government and not by individuals. Therefore, individuals do not have the right to exercise eminent domain over someone else's property.

Zoning is the legal method that City uses to implement its general plan. Zoning involves dividing the city into different zones or districts, each with specific regulations and guidelines for land use, building height, density, and other factors. This helps ensure that the city's development aligns with the goals and objectives outlined in the general plan. Building codes, variance, and safety zones may also be part of the implementation process, but zoning is the primary method used.

The broker who communicated acceptance of the offer from the buyer to the seller is more likely to earn a sale commission. This is because the acceptance of the offer is a crucial step in finalizing the sale, and the broker who successfully communicates this acceptance is directly involved in completing the transaction. The other actions mentioned, such as attempting to bind the principal to the contract, securing an offer with a deposit, and securing acceptance to an offer, are important steps in the process but do not directly guarantee the completion of the sale.

The correct answer is "Any of the above." This is because all three options mentioned in the question can be considered as definitions of value from an appraiser's perspective. The relationship between desirous persons and things desired, the ability of one commodity to command other commodities in exchange, and the present worth of future benefits arising out of ownership of a property are all valid ways to define value in the context of appraisal. Therefore, any of these options can be considered as a definition of value.

All of the notices mentioned (Notice of non-responsibility, Notice of cessation, and Notice of completion) could be important to the filing of a mechanic's lien. A Notice of non-responsibility is typically filed by a property owner to disclaim responsibility for any work or materials provided by a contractor. A Notice of cessation is filed to inform interested parties that work on a construction project has stopped. A Notice of completion is filed to notify interested parties that a construction project has been finished. Filing these notices can help protect the rights of contractors and suppliers to secure payment for their work and materials through a mechanic's lien.

The rate of unemployment does not directly affect the level and movement of mortgage interest rates. Mortgage interest rates are primarily influenced by factors such as the demand for funds, inflation, and the supply of money. Unemployment rates may indirectly impact mortgage interest rates through their effect on the overall economy and consumer confidence, but they do not have a direct correlation with interest rates in the mortgage market.

As the owner of the apartment units, the broker is not required to place the rental income or the sale deposit in a trust account. Trust accounts are typically used by brokers to hold funds that belong to others, such as rental income from tenants or deposits from buyers. In this case, since the broker is the owner of the units and the funds are his own, he is not obligated to deposit them in a trust account.

When a residential neighborhood is composed mostly of owner-occupied residential properties, it tends to stabilize property values. This is because homeowners have a vested interest in maintaining and improving their properties, which can positively impact the overall value of the neighborhood. Additionally, owner-occupied properties often attract more stable and long-term residents, which can contribute to a sense of community and stability in the neighborhood.

This answer is correct because failure to communicate notice of revocation before the other party has communicated their acceptance does not terminate an offer to purchase real estate. In this scenario, the offeror has the right to revoke the offer at any time before the offeree communicates their acceptance. Therefore, failure to communicate notice of revocation does not affect the termination of the offer.

When comparing condominiums and rented apartments, the person who occupies each unit would have an estate in real property. This means that they have a legal interest and ownership in the physical property itself, rather than just a temporary right to use it. This distinguishes condominiums and rented apartments from other forms of housing where the occupier does not have ownership rights.

The given answer is correct because the advertisement is deceptive and misleading. Hudson knows that the property needs major repairs but fails to mention this in the advertisement. By stating "Move right in" and emphasizing the Victorian style, he creates a false impression that the house is in good condition. This is deceptive to potential buyers who may be interested in the property based on the advertisement.

The purpose of the Truth-in-Lending Act is to ensure that consumers are provided with clear and accurate information about the terms and costs of credit. This includes disclosing the annual percentage rate (APR), finance charges, and other important details that allow consumers to make informed decisions about borrowing money. By assuring meaningful disclosure of credit terms, the Act aims to protect consumers from deceptive practices and promote transparency in the lending industry.

$675 X 12 = $8,100
$8,100 / 7 ½% = $108,000

Harrison and David owned the property as joint tenants, which means they both had an equal interest in the property. However, when Harrison encumbered his interest for $10,000 without David's consent, it created a debt on his share of the property. When Harrison died, his debt did not transfer to David because joint tenancy includes the right of survivorship. This means that upon Harrison's death, his share automatically passed to David, free and clear of any encumbrance. Therefore, David would own all the property without having to pay the $10,000 debt.

If broker Gutierrez promised to find another suitable residence before close of escrow and failed to do so, seller Smith could initiate a civil suit against the broker. In this case, the broker would be responsible for any damages caused by their failure to perform as promised.

In a tenancy in common, each owner has the right in possession of all the properties. This means that each owner has the right to use and occupy the entire property, regardless of their ownership percentage. Unlike other types of ownership, such as joint tenancy or community property, the property in a tenancy in common cannot be divided among the owners. Instead, each owner has an undivided interest in the entire property. Therefore, the correct answer is that each owner has the right in possession of all the properties.

The correct answer is "Both Panic Peddling and Blockbusting." Panic peddling refers to the act of using fear tactics or spreading false information to convince property owners to sell their homes quickly, usually at a lower price. Blockbusting, on the other hand, involves encouraging property owners to sell their homes by insinuating that an influx of minority residents will negatively impact property values. In this case, the salesperson is using both fear tactics and insinuations about minorities to obtain listings, which aligns with both panic peddling and blockbusting.

Borrowers will have to pay commission on FHA or PMI loans.

To find the number of acres represented by half a mile by half a mile, we need to convert the given measurements into the same unit. Since there are 640 acres in a square mile, we can calculate the area of half a mile by half a mile by multiplying 0.5 miles by 0.5 miles and then converting the result into acres. So, 0.5 miles by 0.5 miles is equal to 0.25 square miles. Multiplying this by 640 acres, we get 160 acres. Therefore, half a mile by half a mile represents 160 acres.

A loan secured by real property usually consists of a promissory note and a trust deed. A promissory note is a legal document that outlines the terms and conditions of the loan, including the amount borrowed, interest rate, and repayment schedule. A trust deed, also known as a deed of trust, is a document that gives the lender a legal interest in the property as collateral for the loan. It allows the lender to foreclose on the property if the borrower fails to repay the loan according to the terms of the promissory note.

The buyer could do any of the above because they relied on the fraudulent statement of the seller's agent and suffered damage as a result. They could sue the seller for fraud because the seller may be held responsible for the actions of their agent. They could also sue the seller's agent for fraud because the agent made the false statement. Additionally, the buyer has sufficient grounds for rescission, which means they can seek to cancel or void the agreement due to the fraudulent statement.

If one of the parties agrees not to revoke an offer for a certain period of time, an option contract will apply. In an option contract, the party granting the option agrees to keep the offer open for a specified period, giving the other party the right to accept the offer within that timeframe. This means that the party granting the option cannot revoke the offer during the agreed-upon period, providing the other party with a certain level of security and time to make a decision.

If no notice of non-completion is recorded on an improvement project, anyone can record a mechanics lien within 90 days. This means that if there is no official notification indicating that the project has been completed or abandoned, any party involved in the project can file a mechanics lien within 90 days to protect their right to payment. This allows them to claim a legal interest in the property until they are paid for their work or materials provided.

Amortization tables are used to determine the monthly payment for a loan. These tables provide a breakdown of the principal and interest portions of each payment over the life of the loan. By using these tables, borrowers can understand how much they need to pay each month to fully repay the loan by the end of the term. The tables take into account the loan amount, interest rate, and the length of the loan to calculate the monthly payment amount. Therefore, the correct answer is the monthly payment.

$108,00 x 6% = $6,480 + $1,450 = $7,930

Interest rates on trust deed loans are primarily determined by the demand for the supply of money. When there is a high demand for money, interest rates tend to increase, and vice versa. This is because when there is a higher demand for money, lenders can charge higher interest rates to borrowers. Conversely, when there is a lower demand for money, lenders may offer lower interest rates to attract borrowers. Therefore, the demand for the supply of money plays a crucial role in determining interest rates on trust deed loans.

The correct answer is Economic Obsolescence because the decrease in rental offers was due to the city's decision to widen the street, which affected the property's value and attractiveness to potential renters. This type of depreciation is caused by external factors that negatively impact the value of a property, such as changes in the surrounding area or neighborhood. In this case, the street widening project led to a decrease in rental offers by approximately 10%.

When financing a home with a long-term loan, if equal payments are made, the amount of the principal will increase while the interest payment decreases. This is because in the early stages of the loan, a larger portion of the payment goes towards interest, while a smaller portion goes towards the principal. As the loan progresses and more payments are made, the interest payment decreases, allowing a larger portion of the payment to be applied towards the principal, causing it to increase.

A joint tenant can dispose of an interest held in real property by selling, leasing, or transferring it to another party. However, they cannot dispose of their interest through a will. A will is a legal document that outlines how a person's assets and property should be distributed after their death. In the case of joint tenancy, the property automatically passes to the surviving joint tenants upon the death of one of the joint tenants, so a will is not necessary for disposing of the interest in real property.

All of the options listed can be appurtenant to land. Stock in a mutual water company can be appurtenant to land if it is tied to the use of water rights associated with the land. Attachment refers to the legal process of seizing property and is not appurtenant to land. An easement in gross is a right to use someone else's land and is not appurtenant to any specific piece of land. Therefore, the correct answer is All of the above.

A deed showing the racial identity of a client can only be re-written with authorization from a court order. This means that a legal authority, such as a judge, must grant permission for the deed to be changed. This requirement ensures that any changes made to the deed are done so in a fair and lawful manner, preventing any potential discrimination or offensive practices. The other options listed, such as the laws created in 1978, title companies, or the offensive and discrimination department, do not have the necessary legal authority to authorize the re-writing of a deed in this context.

The Alqust-Priolo Earthquake Special Studies Act is applicable to all counties in California. This means that the act applies to every county within the state of California, regardless of the specific city or region within that county. The act is not limited to designated earthquake fault lines or specific regions, but rather encompasses the entire state at the county level.

A land contract is the most difficult for a buyer to obtain financing because it involves the buyer making payments directly to the seller over a period of time, without involving a traditional lender. This means that the buyer may not have access to the same financing options and benefits that they would with other types of contracts, such as FHA, VA, or conventional loans. Additionally, lenders may be hesitant to provide financing for land contracts due to the potential risks and uncertainties involved in such arrangements.

Capital expenditures for improvements are added to the cost basis of the property and depreciated for Federal Income Tax purposes. This means that the cost of the improvements is added to the original cost of the property, increasing the overall cost basis. The total cost basis is then depreciated over a certain period of time, allowing the taxpayer to deduct a portion of the cost each year as a depreciation expense.

$125,000 / 500 = 250
$.55 x 250 = $137.5

In this scenario, Broker Benson contacted the buyer and successfully arranged the sale of the property. Since Broker Andrew was unable to close the deal and the buyer ultimately purchased the property through Broker Benson, it is reasonable to conclude that the seller would be obligated to pay the full commission amount to Broker Benson only.

The owner of the apartment complex deducted $6,000 from the gross income for depreciation on his federal income tax return. This means that the basis of the property, which is the original cost of the property for tax purposes, is reduced by $6,000. Depreciation is a tax deduction that allows property owners to account for the wear and tear of their property over time. By deducting $6,000 for depreciation, the owner is lowering the value of the property for tax purposes.

The term "single agency" refers to a situation where an agent represents one client in dealing with a third person. In this scenario, the agent acts as a representative for one party and negotiates on their behalf with another party. This is different from dual agency, where an agent represents both the buyer and seller in a transaction. In single agency, the agent's loyalty and fiduciary duty are solely to their one client, ensuring that their best interests are represented in the negotiation process.

If a tenant enters into a 2 year lease and if the lease contains no clause of assignment of subleasing, the tenant may sublease to another tenant. This means that the tenant has the right to rent out the property to someone else for a portion of the lease term, while still being responsible for the original lease agreement with the landlord. This allows the tenant to share the rental space or offset some of the rental costs. However, it should be noted that this is only possible if the lease does not explicitly prohibit subleasing.

Land cannot be depreciated under federal income tax law. This is because land is considered a non-depreciable asset. Depreciation is the gradual decrease in the value of an asset over time, but land is seen as having an indefinite useful life and does not wear out or become obsolete like other assets. Therefore, the owner cannot deduct depreciation expenses for land on their tax returns.

A VA Loan is a type of loan that is guaranteed by the Department of Veterans Affairs and is available to eligible veterans, active duty service members, and surviving spouses. One of the benefits of a VA Loan is that it typically does not require a down payment from the borrower. This is because the loan is backed by the government, providing additional security to the lender. Therefore, a VA Loan would probably be made without requiring a down payment from the borrower.

The purchase price would appear on the debit side of a buyer's closing statement because it represents the amount of money that the buyer is paying to purchase the property. This is a significant expense for the buyer and is therefore recorded as a debit, which represents an increase in expenses or a decrease in assets. The other options listed (prepaid rents, mortgage interest, and down payment) would not appear on the debit side of the closing statement as they do not represent the initial cost of purchasing the property.

A deed does not have to be recorded to transfer title because the act of transferring title is accomplished by the execution and delivery of the deed from the grantor to the grantee. Recording the deed is not a requirement for the transfer of ownership, but it is often done to provide notice to the public and protect the interests of the grantee. However, even if a deed is not recorded, the transfer of title is still legally valid.

An appraiser's narrative appraisal report of a single-family residence is primarily focused on providing an unbiased and objective evaluation of the property's value. It typically includes information about the appraiser's qualifications, neighborhood data, and market analysis to support their assessment. However, the type of financing available for the property is not relevant to the appraisal report as it does not directly impact the property's value. Therefore, it would not be mentioned in the report.

When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, they are required to provide the loan applicant with a good faith estimate. This estimate includes an approximation of the loan terms and costs associated with the loan, such as the interest rate, closing costs, and other fees. It helps the borrower understand the overall financial implications of the loan and make an informed decision. A good faith estimate is an important document that promotes transparency and protects the borrower's rights.

The correct answer is "Estate for years." This type of tenancy refers to a lease agreement for a fixed period of time, in this case from May 1 to July 1. It is a leasehold interest in the property for a specific duration, rather than a month-to-month or periodic tenancy. A monthly lease would imply a recurring monthly rental agreement, which is not the case here.

A listing (authorization to sell) generally authorizes the broker to find a buyer for the property. This means that the broker is given the authority to search for potential buyers and market the property in order to facilitate a sale. The listing does not necessarily become a legal contract when the buyer signs it, as it is primarily an agreement between the seller and the broker. It also does not specify that it is a bilateral executed contract, as this would imply that both parties have already fulfilled their obligations under the contract. However, it does allow the broker to collect a commission during the term of the listing, indicating that the broker is entitled to compensation for their services if they successfully find a buyer.

A subordination clause is a provision in a trust deed that allows future loans on the property to have priority over existing loans. This means that if the property owner takes out a new loan, the new loan will be paid off first in the event of foreclosure or sale of the property. This clause is often used by lenders to protect their interests and ensure that they are repaid before other creditors.

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In the replacement cost method, the unit cost per square foot or cost per cubic foot is used to determine the value of a property. Since a small house has less square footage or cubic footage compared to a large house, the cost per unit (square foot or cubic foot) would be higher for a small house. This means that a small house would cost more per unit than a large house.

In this scenario, the encumbrance created would be a specific lien. A specific lien is a legal claim on a property that is directly related to a specific debt or obligation. In this case, the construction company would file a lien specifically for the unpaid payment of the construction work done on Walker's residential premises. This specific lien would give the construction company the right to seek payment from the proceeds of the sale of the property, should it come to that.

When the mortgage money supply increases, it means that there is more money available for lending towards mortgages. This increase in supply leads to more competition among lenders, which in turn causes them to lower their interest rates in order to attract borrowers. Therefore, the decline in mortgage interest rates occurs when the mortgage money supply increases.

$117,800 / 8% = $1,472,500

The post office would demand a lower capitalization rate because it is considered a more stable and secure tenant compared to a hardware store. A lower capitalization rate indicates a higher value for the property, and since the post office is viewed as a safer investment, it would attract more potential buyers and investors. Therefore, the post office would have more bargaining power to negotiate for a lower capitalization rate.

In this situation, Wilson is most likely liable for payment of commission to Hays as well as to the selling broker. This is because Wilson took a 90-day exclusive agency listing with Hays, which means that Hays had the exclusive right to sell the property for that period of time. Even though Wilson attempted to cancel the listing after 30 days, it is likely that the cancellation was not valid since it was sent by certified mail. Therefore, Hays still had the right to earn a commission if the property was sold within the 90-day period. Additionally, since Wilson listed the property with several brokers using open listings, the selling broker who completed the sale would also be entitled to a commission.

Jose is an unlicensed employee of a licensed real estate broker, which means he is not legally allowed to engage in activities such as distributing door hanger fliers and making telephone solicitations for potential buyers and sellers. These activities require a real estate license. Therefore, both the broker and Jose are engaging in unlawful practices.

If Wilson sells the property to Lee under the condition that Lee takes title "subject to" the existing VA loan, Wilson will be primarily liable for any loss suffered by the government after a foreclosure on the VA loan. This means that Wilson will bear the main responsibility for repaying the loan and any associated losses. Lee, on the other hand, will not be held primarily liable for the loan or any losses incurred.

A sublease is a type of lease agreement where the original tenant (sublessor) transfers a portion of their leasehold interest to a new tenant (sublessee). This means that the sublessor still retains some rights and responsibilities under the original lease, while also granting certain rights to the sublessee. It is different from an assignment, which involves transferring the entire leasehold interest to a new tenant. Therefore, the correct answer is "A transfer of less than the entire leasehold."

When someone has power of attorney, they have the authority to act on behalf of another person in legal and financial matters. This includes signing documents on behalf of their principal, charging commission for their services, and even deeding the property to another person. However, they cannot deed the property to themselves as this would be a conflict of interest and potentially an abuse of their power.

A single-agency broker is client-oriented means that the broker is focused on serving the best interests of their client. They prioritize the needs and preferences of their client and work towards achieving their goals. This type of broker represents only one party in a transaction, either the buyer or the seller, and does not represent both. They do not have any conflicts of interest and can provide undivided loyalty and advocacy to their client.

The Federal Housing Administration (FHA) was created primarily to provide insurance for home loans made by approved lenders. This means that if a borrower defaults on their loan, the FHA will reimburse the lender for the loss. This insurance helps to mitigate the risk for lenders and encourages them to provide loans to borrowers who may not otherwise qualify for conventional financing. By providing this insurance, the FHA helps to promote homeownership and increase access to affordable housing options.

$8,100 / 45% = $ 18,000
$18,00 0/ 6% = $300,000

This clause is important to the creation of a bilateral contract because it outlines the broker's obligation to use diligence in finding a buyer for the property. By including this clause, both the broker and the seller are agreeing to perform certain actions and fulfill their obligations under the contract. This clause ensures that both parties have mutual obligations and responsibilities, making it a bilateral contract.

In this scenario, even though Broker Walter entered into an oral listing agreement without a subsequent written verification, the payment of a commission to him would still be permissible if the seller elects to do so. While it is generally recommended to have written agreements in real estate transactions for clarity and protection, oral agreements can still be legally binding. If the seller agrees to pay the commission to Broker Walter despite the lack of a written verification, it would be considered permissible.

In this scenario, the trustee has defaulted on their loan and refused to reinstate the deed of trust. The most expedient thing for the beneficiary to do is to institute a trustee sale. A trustee sale is a type of foreclosure sale where the property is sold by the trustee to recover the outstanding debt. It is a quicker and more efficient process compared to a judicial foreclosure, lien sale, or HUD sale.

Mortgage loan correspondents can obtain a license from both the Department of Corporations and the Department of Real Estate. This suggests that in order to operate as mortgage loan correspondents, individuals or companies must meet the requirements and regulations set by both departments. It is important to obtain licenses from both departments to ensure compliance with the laws and regulations governing mortgage loan correspondents.

$162,500 x 4.5% = $7,312.50
$7,312.50 x 50% = $3,656.25
$3,656.25 x 50% = $1,828.13

A "negative declaration" means that the subdivision will have an insignificant effect upon the environment and the developer will not have to pay for a full environmental report.

20,000 / 200 = 100 front ft.
20,000 x $4.40 = $88,000 purchase price
$88,000 / 100 = $880

When appraising a property, an appraiser typically considers various factors such as the property description, final value, and neighborhood data. However, the assessed value is not a factor that appraisers usually take into account. The assessed value is the value assigned to a property by a tax assessor for the purpose of calculating property taxes, and it may not necessarily reflect the market value or the true worth of the property. Therefore, it is not typically considered by appraisers during the appraisal process.

The principle of substitution states that a buyer would not pay more for a property when there are other similar properties available for a lower price. In the market data approach appraisal, this principle is used to determine the value of a property by comparing it to similar properties that have recently sold in the market. By analyzing the prices of these comparable properties, an appraiser can estimate the value of the subject property. Therefore, the basis of the market data approach appraisal is the principle of substitution.

The correct answer is February 1st and April 10th. In California, the second installment of real property taxes is due on February 1st. If the payment is not made by that date, it becomes delinquent and a penalty is imposed. The delinquent date for the second installment is April 10th, after which additional penalties and interest may be charged.

When an owner refuses to pay the broker an earned commission, the broker may properly seek relief by taking court action. This means that the broker can file a lawsuit against the owner in order to recover the commission that they are owed. Filing a complaint with the Department of Real Estate or filing a vendor's lien may also be options for the broker, but they are not the most appropriate or effective ways to seek relief in this situation. Court action is the most direct and legally binding method for the broker to pursue their earned commission.

According to the Business and Professions Code, a copy of a deposit receipt must be kept for a minimum of three years from the date closing of the transaction. This means that the receipt should be retained for at least three years starting from the day the transaction is finalized and closed.

In a trust deed, the lender is referred to as the beneficiary. The beneficiary is the party who lends the money and holds the legal interest in the property being used as collateral. They have the right to receive payments and can foreclose on the property if the borrower defaults on the loan. The trustor is the borrower who creates the trust, the trustee is the neutral third party who holds legal title to the property, and the mortgagor is the borrower in a mortgage loan. Therefore, the correct answer is beneficiary.

Lenders know that the lower the loan-to-value ratio, the higher the equity. This means that borrowers have a larger stake in the property, which reduces the lender's risk. When borrowers have more equity, they are less likely to default on the loan, making it safer for the lender. As a result, lenders may offer more favorable terms, such as lower interest rates, to borrowers with higher equity.

When land is subject to an easement, it means that there is a legal right for someone else to use that land for a specific purpose. This restricts the owner's full use and enjoyment of the property, as they must allow others to access or use it. Therefore, the land is considered "encumbered" because it has a burden or limitation on its use due to the existence of the easement.

A broker may not remain silent concerning material facts about a property known only by himself. This means that the broker is obligated to disclose any important information about the property that could affect a buyer's decision. This is important for ensuring transparency and fairness in real estate transactions.

A voidable contract remains binding upon the parties until the contract is rescinded. This means that the contract is valid and enforceable until it is officially canceled or revoked by one of the parties involved. Once the contract is rescinded, it becomes void and no longer legally binding.

The phrase "time is of the essence" is commonly used in contracts to emphasize the importance of meeting deadlines and completing obligations on time. In the context of a real estate purchase contract and receipt for deposit, this phrase may be included to stress the significance of adhering to specific timelines for submitting payments and completing the transaction.

The statement "Brokers cannot sell their own in-house listings" is least correct about in-house sales. In reality, brokers have the ability to sell their own in-house listings. This means that they can represent both the seller and the buyer in the transaction, allowing them to earn both the listing and selling commission. This practice is known as dual agency, where the broker acts as a neutral intermediary between the two parties involved in the sale.

The provision of the Subdivision Map Act is enforced by the Planning Commission. The Planning Commission is responsible for reviewing and approving subdivision maps, which outline the division of land into smaller lots or parcels. They ensure that the subdivision complies with zoning regulations, environmental laws, and other relevant requirements. The Real Estate Commissioner oversees real estate licensing and enforcement, the Subdivision Land Act is not a governing body, and the Contractor License Board is responsible for licensing and regulating contractors.