Brokers Exam

  1. What does the lender create to secure a loan?
    A deed of trust
  2. How many parties does a deed of trust involve?
    3 Parties

    • Trustor- Buyer
    • Beneficiary- Lendor-Bank
    • Trustee- Neutral 3 party who holds temporary title
  3. When a trust deed is paid what is generated?
    A reconveyance deed is generated by the neutral 3rd party trustee
  4. What are 3 notices pertaining to mechanic's liens?
    • 1. Notice of non-responsibility
    • 2. Notice of cessation
    • 3. Notice of non-completion
  5. A mechanic's lien may be filed by the original contractor within how many days?
    60 days from filing for record of the notice of completion.
  6. A mechanic's lien may be filed by any claimant other than the original contractor within how many days?
    30 Days of notice of completion
  7. If the notice of completion is not recorded, a mechanic's lien may be filed by any claimant within how many days?
    90 days after completion
  8. How many years is an attachment lien good for?
    3 years
  9. What does Lis pendens stand for?
    Pending lawsuit
  10. What is a judgement?
    A monetary decision against a defendant to a lawsuit
  11. What happens when an abstract of judgement is recorded?
    It creates an involuntary general lien against the defendant
  12. What is an example of a voluntary lien?
    trust deed or mortgage
  13. What must be filed prior to recording a mechanic's lien?
    a 20-day notice must be filed prior to recording a mechanic's lien
  14. What must take place to make a mechanic's lien valid?
    It must be verified and recorded
  15. When the IRS records a tax lien against a taxpayer a lien is created on any real property they own. What is the name of this lien?
    General Lien
  16. What is the homestead exemption regarded as?
    An anti-lien
  17. What amount does the homestead exemption protect the head of household up to?
    And other members of the household?
    • Head of Household $75,000
    • Other Members $50,000
  18. What is an easement?
    The right to enter and use another's land
  19. What is the land burdened by the easement called?
    Serviant Tenement
  20. What is the land benefited by an easement called?
    The dominant Tenement
  21. What are the two different types of easement called?
    • Apurtenant and
    • Easements in Gross (Utility Companies)
  22. What 3 ways can an easement be obtained?
    • 1- Continuous and uninterrupted use for 5
    • 2- The use is hostile and adverse (meaning without license or permission)
    • 3- The use is open and notorious (meaning the owner knows or could have known of the use)
  23. What time period can an easement be created for?
    Any time period
  24. Where do restrictions originate from?
    Both public and private sources
  25. Where are public restrictions generally found?
    Zoning ordinances
  26. Where are the 3 places that private restrictions generally found?
    • 1- Deed
    • 2- CCR's
    • 3- Memorandum of agreement
  27. If a public and private restriction on the same property differ, which one controls?
    Which ever one is more restrictive
  28. What is an injunction?
    It is used to enforce a private restriction
  29. What is an encroachment?
    It is a form of a trespass----not by a person but by a structure/thing
  30. How long does an individual have to take action when there has been an encroachment?
    WIthin 3 years
  31. What can the offended party's remedy be if a friendly agreement cannot be reached between two parties
    sue the neighbor
  32. Who usually places private restrictions on a sub-division (property)?
    The developer
  33. A condition is a restriction that involves more serious consequences than a covenant, because a condition may contain what clause that could bring about a change of ownership?
    Forfeiture Clause
  34. What is a covenant?
    A promise
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Brokers Exam