CALIFORNIA REAL ESTATE EXAM #2 REVIEW QUESTIONS WITH CORRECT ANSWERS

CALIFORNIA REAL ESTATE EXAM #2 REVIEW QUESTIONS WITH CORRECT ANSWERS Impounds are monies set aside (reserves) to cover future payments of recurring costs such as taxes and insurance. Foreclosure by sale would NOT involve a: (a) publication period. (b) deed of reconveyance. (c) notice of default. (d) Any of the above - Answer-B When the trustee sells property under the power-of-sale provision in a deed of trust, the recording of the Notice of Default by the trustee commences the three month reinstatement period. When the trustor's right of reinstatement has run out, advertising of the sale begins by publishing the Notice of Sale. A Notice of Default is sent to junior lien holders advising them of a pending foreclosure on the first. In the event of a conflict between local building codes and the Health and Safety Code, which would prevail? (a) Health and Safety Code (b) Local building code (c) The more stringent of the two (d) The one selected after a hearing - Answer-C In the event of a conflict between local building codes and the Health and Safety Code, the more stringent typically prevails. A Brownfield property that has been left vacant or is underutilized is most likely: (a) hazardous, toxic and contaminated. (b) taken for a freeway. (c) depleted for crop use from overuse. (d) overpriced. - Answer-A The Environmental Protection Agency (EPA) defines a Brownfield as "real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant." Brownfields are often abandoned, closed or under-used industrial or commercial facilities, such as an abandoned factory in a town's former industrial section or a closed commercial building or warehouse in a suburban setting. Brownfields, however, can be located anywhere and can be quite small. Which of the following laws applies to federally related transactions?