Questions and Answers
Which of these instruments must be recorded in the county recorder's office to be valid?
Which of the following is true regarding the impound account?
If a borrower makes full payment on a note secured by a trust deed on his property, the trust deed beneficiary must arrange for the reconveyance within:
A trust deed with a balance of $75,000 was sold to a businessman for $50,000. Such a practice is called:
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An unenforceable contract cannot be enforced in court for the following reason(s):
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An executed contract is a contract which ______:
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The front-end ratio for a loan is determined by:
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A real property lease creates a(n):
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A buyer of property in a land project may rescind his purchase and obtain a refund, even without a specific reason, within:
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An escrow officer is generally authorized to:
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Adam has been getting to his horse stable every day for the last seven years by driving across Randy's property. A court would likely uphold Adam's right to continue this practice because his actions have created a(n) ______________.
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All of the following are encumbrances, except:
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Study Notes
Recording Valid Instruments
- A Declaration of Homestead must be recorded in the county recorder's office for validity.
- Land contracts, easements, and leases may not require recording in California.
Impound Accounts
- Impound accounts safeguard properties by collecting funds for taxes and insurance.
- These accounts can generate interest for the account holder and benefit both the trustor and beneficiary.
Trust Deed Reconveyance
- Trust deed reconveyance must be arranged within 30 days of the borrower's full payment.
Discounting in Trust Deeds
- Selling a trust deed for less than its balance is known as discounting.
Enforceability of Contracts
- An unenforceable contract cannot be upheld in court due to reasons such as lack of proof, voidable status, or expired statute of limitations.
Executed Contracts
- An executed contract refers to a contract that has been fully performed by all involved parties.
Front-End Ratio
- The front-end ratio, also called the housing ratio, calculates the percentage of monthly income needed for housing expenses.
Real Property Lease
- A real property lease creates an estate for years, which has a definite termination date.
Right of Rescission for Land Purchases
- A buyer can rescind a purchase in a land project and receive a refund within 14 calendar days, irrespective of specific reasons.
Duties of an Escrow Officer
- An escrow officer is responsible for preparing estimated closing statements, among other duties.
Prescription and Property Rights
- Continuous use of a property over time can grant rights through prescription, allowing the user to maintain access despite objections from the owner.
Encumbrances
- A homestead exemption is not considered an encumbrance; encumbrances are legal interests held by parties other than the property owner.
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Description
Test your knowledge on real estate laws, specifically focusing on the validity of various instruments that must be recorded in the county recorder's office. This quiz will challenge your understanding of important concepts such as easements, leases, and declarations of homestead.
