California Real Estate Broker Examination flashcards

Mandatory disclosure in California for properties located within a Community Facilities District (CFD) that levies special taxes to finance public services or infrastructure.

• Required by California Civil Code.
• Discloses special taxes for Mello-Roos CFDs.
• Taxes are liens on the property, similar to property taxes.
• Disclosure must be provided by seller to buyer.

Memory trick: Mello-Roos means 'More Money' for 'Recorded Obligations' – it's always 'Disclosed'.

A legally required statement in California informing buyers if a property is located in specific natural hazard zones, such as flood, fire, or earthquake zones.

• Mandatory for properties in designated hazard zones.
• Covers flood, fire, earthquake, and other natural hazards.
• Must be provided to the buyer by the seller.

Memory trick: Disclose it all, prevent the fall, from property woes to legal calls.

If a California real estate license has been expired for more than two years, it cannot be renewed. The individual must re-apply, pass the examination, and pay all fees.

• Applies to licenses expired over two years.
• Requires a new application and passing the exam.
• All original licensing fees must be paid again.

Memory trick: Expired too long? Back to the start, pass the test, pay the art!

An interest in real property that is held for the duration of the life of a designated person, after which the property reverts to the original owner or passes to a designated third party.

• Holder (life tenant) has rights of possession and income.
• Interest terminates automatically upon death of measuring life.
• Cannot be willed, but can be sold or mortgaged (interest terminates on measuring life's death).

Memory trick: Grantor wants to LIVE in it, then leave it.

Buyer's statutory right to cancel a purchase agreement for property in a federally regulated subdivision, contingent on when the Property Report was received.

• Governed by Interstate Land Sales Full Disclosure Act (ILSFDA).
• Property Report must be provided to buyer.
• If report received <3 days before contract: 7-day rescission from contract signing.
• If report received >=3 days before contract: 7-day rescission from report receipt.

Memory trick: Report's late? Wait 7 days from signing, don't hesitate!

A type of adjustable-rate mortgage (ARM) that offers a fixed interest rate for an initial period, after which the rate adjusts periodically.

• Combines fixed-rate and adjustable-rate features.
• Initial period has a stable, predictable payment.
• Rate adjustments occur after the initial fixed period.

Memory trick: Hybrid loans offer a 'best of both' world initially, then adapt.