231. A lender agrees to make a loan on a large commercial complex provided the borrower gives the lender a 2% interest in the ownership. This type of loan would be known as a:
A. Package loan
B. Participation loan
C. Open-end loan
D. Take-out loan
Answer: B. Participation loan
232. Which of the following is not a requisite for creation of an undeclared leasehold agreement?
A. Amount of rental payments
B. That rent payments be made in advance
C. Length of time the lease will continue
D. Description of the property
Answer: B. That rent payments be made in advance
233. Which of the following is not an essential to the validity of a deed?
A. Payment of financial consideration
B. Competent grantor
C. Description of the property
D. Delivery of the deed
Answer: A. Payment of financial consideration
234. The trust deed and note on a conventional loan is held by the:
A. Lending institution
B. Federal Government
C. The seller
D. The trustee
Answer: A. Lending institution
235. When a veteran wishes to purchase a home and use his or her California veteran’s benefits, he or she would make application to the:
A. California Veterans Administration
B. Department of Veterans Affairs
C. Federal Housing Administration
D. An institutional lender
Answer: B. Department of Veterans Affairs
236. A real estate subdivider who resides in Hawaii is required to comply with various laws if he wants to offer his property located in Hawaii for sale in California. The law that he would be most concerned with would be the:
A. California Subdivision Map Act
B. State Housing Act
C. California Real Estate Law
D. All of the preceding
Answer: C. California Real Estate Law
237. Private mortgage insurance is required for residential mortgage loans if the loan-to-value ratio is in excess of:
A. 60%
B. 70%
C. 80%
D. 90%
Answer: C. 80%
238. Deed restrictions may be terminated in all of the following ways, except:
A. Voluntary cancellation by grantee
B. Expiration of their prescribed period of duration
C. Merger of ownership
D. Quit claim deed from grantor
Answer: A. Voluntary cancellation by grantee
239. Permissive use of a road across real property would cause a prescriptive easement in:
A. 5 years
B. 10 years if the user pays the taxes
C. 20 years
D. None of the above
Answer: D. None of the above
240. To an appraiser, a definition of value is:
A. A relationship between desirous persons and things desired
B. The ability of one commodity to command other commodities in exchange
C. The present worth of all the rights to future benefits arising from the ownership of property
D. All of the above
Answer: D. All of the above