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Exam 2

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1 Real Estate Quiz on Exam 2, created by Ambir Dudley on 11/10/2015.
Ambir Dudley
Quiz by Ambir Dudley, updated more than 1 year ago
Ambir Dudley
Created by Ambir Dudley about 9 years ago
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Resource summary

Question 1

Question
Two friends hold title as joint tenants. One borrowed money and executed a deed of trust against the property. In terms of affecting title this action could:
Answer
  • Destroy one of the four unities of Joint Tenants
  • Place the beneficiary in a precarious position should the borrower die
  • Invalidate the note since a lien can be attach only to the undivided interest of all joint tenants
  • Create a security interest in all other real property in which the borrower may have an interest

Question 2

Question
Joint tenant estate held by two joint tenants is severed and ended by the following EXCEPT:
Answer
  • By the execution of a mortgage or deed of trust by one Joint Tenant creating a lien against his interest.
  • A foreclosure by one of the joint tenants
  • One of the joint tenants transfers his interest to a third party
  • One of the joint tenants sells his interest

Question 3

Question
A man owns six separate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he will obtain will probably be:
Answer
  • A mortgage
  • A trust deed
  • A blanket mortgage
  • A security mortgage

Question 4

Question
All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant:
Answer
  • Sells his or her share
  • Transfers his or her share
  • Mortgages his or her share
  • Deeds his or her share to a co-owner

Question 5

Question
A conflict in a contract between a buyer and a seller to return the deposit to the buyer from the trust account, the broker unable to resolve the problem refers it to a third person the action by the broker is known as:
Answer
  • An interpleader action
  • A court action
  • A Judicial action
  • An attorney

Question 6

Question
A contingency in a contract may be created by:
Answer
  • Nature of the contingency
  • Duration of the contingency
  • Method how to remove the contingency
  • All of the above

Question 7

Question
Under the Real Estate Law if an agent is found guilty of discrimination the Real Estate Commissioner may:
Answer
  • Revoke or suspend the agents license
  • Cancel the agents license for 150 days
  • Suspend the agents license for 3 months
  • Suspend the agents license for 1 year

Question 8

Question
Which of the following is misrepresentation:
Answer
  • Material to the contrary
  • Information known by the broker that is false
  • False information to bound a buyer to a contract
  • All of the above

Question 9

Question
Broker Hadley took a listing from Watanabe for 30 days. After the 27th day Hadley was not successful selling the property so he decided to buy the property himself. Broker Hadley must present to the seller:
Answer
  • His interest on the property
  • The net amount to the seller
  • Commission disclosure
  • All of the above

Question 10

Question
What is a deed:
Answer
  • To transfer title
  • To be acknowledged
  • The evidence in change of title or an interest
  • To be recorded in the county recorders office to be valid

Question 11

Question
Before his death Westland had several listings, now Westland's daughter is taking over the business. In regards to the listings she must:
Answer
  • All listings are automatically cancelled and she needs to re-list the properties from the clients
  • Automatically cancelled and is not necessary to re-list the listing agreements
  • May be cancelled only in writing and approved by the daughter
  • Must be cancelled within 24 hours or the listings are automatically transferred to the daughter.

Question 12

Question
A Hispanic buyer wants to be shown property in a Hispanic neighborhood. The real estate agent should:
Answer
  • Show him properties as any other client
  • Show him properties only in areas where he wants to look
  • Provide information about the ethnicity of the neighborhood
  • Show properties in areas where Hispanic population is greater

Question 13

Question
An example of police power is:
Answer
  • Zoning
  • Condemnation
  • Eminent domain
  • Inverse condemnation

Question 14

Question
Which of the following may be attached to the land:
Answer
  • Trees
  • Buildings
  • Water rights
  • All of the above

Question 15

Question
The agent who will earn a commission is the one that:
Answer
  • Signed the purchase agreement
  • Communicated the offer and the acceptance from seller to buyer
  • Communicated the offer to the seller
  • Accepted a deposit first

Question 16

Question
In a new developed subdivision, The Real Estate Commissioner was informed of misrepresentations made by the developer. The commissioner may stop the sale of the subdivision by:
Answer
  • Revoking the final public report
  • Filing an accusation
  • Suspending the developers contractors license
  • Issuing a desist and refrain order

Question 17

Question
Which of the following must be given to a buyer of a condominium unit:
Answer
  • Copy of the CC and R’s
  • Copy of the by laws
  • Copy of the most recent financial statement of the association
  • All of the above

Question 18

Question
The placement of a building on the land is known as:
Answer
  • Orientation
  • Topography
  • Elevation
  • Foundation plan

Question 19

Question
A binding contract between the buyer and seller, it must :
Answer
  • An offer and delivery
  • Contain an offer and acceptance
  • Acceptance from buyer
  • Acceptance from seller to sellers agent

Question 20

Question
CPI refers to:
Answer
  • Listing agreements
  • Purchase agreements
  • Manufacturing
  • Commercial leases

Question 21

Question
Who pays the service charge under a FHA loan:
Answer
  • The seller
  • The buyer
  • Both buyer and seller
  • The lender

Question 22

Question
When comparing FHA and Conventional Loans. Conventional Loans offer:
Answer
  • Higher loan to value ratios
  • Lower payments
  • Lower interest rates
  • Lower loan to value ratios

Question 23

Question
A commission to an agent may be in the form of:
Answer
  • A note
  • A trust deed
  • Cash
  • All of the above

Question 24

Question
A home sold for $178,000 and leased at $1200. If another home is leased at $1,300 the value is:
Answer
  • $193,000
  • $136,000 $178,000 / $1,200 = 148.33
  • $200,000 148.33 X $1,300 = $192,833
  • $190,000

Question 25

Question
The right of an interest in real property is represented by:
Answer
  • Quite title action
  • A trust deed
  • A quitclaim deed
  • Mortgage

Question 26

Question
A brother and sister own property as Joint Tenants. The brother died and left un-secured debts and died penniless. The title to the sister now shows.
Answer
  • The sister owns title as tenants in common
  • Free and clear of debts from the brother
  • The sister has a lien on the property from the debts from the brother
  • The sister has to pay only half of the brothers debts

Question 27

Question
Which of the following best refers to sellers market:
Answer
  • Causes prices to drop as demand decreases and supply increases
  • High prices of a product with demand and supply lags
  • Demand and supply of a product with a decrease of buyers
  • Decrease on land and construction

Question 28

Question
A real estate broker discovers that one of the agents was receiving referral fees from a lender that they do business with. The broker fired the agent and warned the other agents not to receive any referrals. According to the real estate law:
Answer
  • Both broker and sales person may be subject for prosecution
  • Only the agent will be prosecuted by the Department Of Real Estate
  • Only the broker will be prosecuted by the Department Of Real Estate
  • The broker’s conduct is acceptable and he may receive any referral fees

Question 29

Question
Buyer and seller decided to cancel a transaction. The seller instructed the broker to return the buyer’s deposit. The broker should.
Answer
  • Return the deposit and sue buyer for his commission
  • Return only half of the deposit to the buyer
  • Return the deposit as instructed
  • The agent may collect his commission in court

Question 30

Question
A person using a document to represent another acts as:
Answer
  • A power of attorney
  • A grant deed
  • A reconveyance deed
  • An attorney in fact

Question 31

Question
In regards to appraisal all of the following are true except:
Answer
  • The cost approach is used in new construction
  • The cost approach is used for special properties
  • The cost approach is used for commercial building
  • The cost approach sets the lower limits of value

Question 32

Question
Which of the following policies covers all risks:
Answer
  • A Homeowners insurance
  • A Extended policy
  • A Standard policy
  • No policy covers everything

Question 33

Question
When appraising an old residential property in regards to periodic tenancy:
Answer
  • Compared to rentals and comparables in the area
  • Is determine by square footage
  • According to the type of neighborhood
  • Is obtained from the assessors value

Question 34

Question
Bonds, deed of trust and notes held by a third party is known as:
Answer
  • Beneficiary
  • Lender
  • Escrow
  • Trustee

Question 35

Question
A contract replaced entirely by a new one is known as:
Answer
  • An Amendment
  • A Replacement
  • A Novation
  • A Renewal

Question 36

Question
Fuentes purchased Brown's house and agreed to assume the existing mortgage Which of the following is true:
Answer
  • Brown is relieved from future liabilities
  • Brown is liable for the loan
  • Fuentes is not primarily responsible for the loan
  • Brown and Fuentes both are liable

Question 37

Question
Which of the following will determine if an item is a fixture , except:
Answer
  • Intention
  • Agreement
  • Cost
  • Relationship

Question 38

Question
Which of the following will determine if an item is a fixture except:
Answer
  • Intention
  • Agreement
  • Time
  • Relationship

Question 39

Question
A commission on the sale of a property through probate will be determine by:
Answer
  • The court order
  • The real estate commissioner
  • The Board of directors
  • The administrator

Question 40

Question
A voidable contract is:
Answer
  • Valid only when it's signed, but for some reason it cannot prove by either party
  • Contains all legal requirements but may be cancelled by anyone
  • Is valid and enforceable on its face, but it may be rejected by one of the parties
  • Is a contract with no legal effect

Question 41

Question
When comparing real property to personal property, real property is:
Answer
  • Immovable by law
  • Movable
  • Personal exclusively
  • Transferable by a bill of sale

Question 42

Question
A standard policy of title insurance will cover against:
Answer
  • Property lines
  • Zoning
  • Legal incompetence of the grantor
  • Property survey

Question 43

Question
Which of the following is not a lien:
Answer
  • Taxes
  • Trust deed
  • Judgment
  • Restrictions

Question 44

Question
Under the Income Tax Law a sales person is:
Answer
  • Employee of the broker he/she is permitted to work for
  • Self employed contractor
  • Employee of the broker and the broker must pay for medical insurance
  • Self employed and employee of the broker

Question 45

Question
“As Is” is permitted when:
Answer
  • A buyer is fully informed about known defects before bound to contract
  • Only if buyer ask for a transfer disclosure
  • The property is financed through a private investor
  • Only if the property needs major repairs

Question 46

Question
An appraiser is least concerned with the general state of the economy in appraising
Answer
  • Shopping center
  • Electronic assembly
  • Medical dental building
  • Industrial park

Question 47

Question
The maximum amount that may be recovered from the Recovery Trust Fund is:
Answer
  • $20,000
  • $10,000
  • $250,000
  • $50,000

Question 48

Question
A blind ad doesn’t identify the:
Answer
  • Broker
  • Salesperson
  • Seller
  • Buyer

Question 49

Question
If a property is under default, possession of the property is held by the:
Answer
  • Trustee
  • Trustor
  • Beneficiary
  • Mortgagee

Question 50

Question
The Earthquake Hazard Report must be Issued to properties in:
Answer
  • All California
  • All counties
  • All cities
  • Only to specific types of structures on a earthquake zones

Question 51

Question
The maximum value of a property do to architectural design and stability of neighborhood:
Answer
  • Progression-regression
  • Conformity
  • Stability
  • None of the above

Question 52

Question
A contractor was installing a new hardwood floor and was unpaid, and placed a lien on the property. The lien becomes effective on:
Answer
  • After the installation of the hardwood floor
  • Commencement of the installation of the hardwood floor
  • The date recorded at recorders office
  • 3 days after the installation of the hardwood floor

Question 53

Question
A master plan shows:
Answer
  • Streets and freeways
  • Residential and commercial zoning
  • Safety
  • All of the above

Question 54

Question
The ordinary repairs on a property are known as:
Answer
  • Repairs
  • Rehabilitation
  • Cosmetic maintenance
  • Wear and tear

Question 55

Question
The Standard policy of title insurance consist of three processes. Which of the following is not one of the three processes:
Answer
  • Determination of correct boundary lines and property survey
  • Amount of insurance required
  • Title investigation
  • Protection of title losses

Question 56

Question
When a property is being sold through an option the broker must inform to the client that he is acting as a:
Answer
  • A principal
  • An agent
  • A broker
  • A seller

Question 57

Question
Capitalization is a process used by real estate appraiser's to:
Answer
  • Converts income into value
  • Finds the gross income of a property
  • Establishes the cost of capital
  • Depreciation value

Question 58

Question
Conditions affecting interest rates and the availability of loan funds vary over time. When would it be advantageous for a lender to waive a prepayment penalty clause contained in a promissory note:
Answer
  • When loans are available with low interest rates
  • In a deflationary economy
  • In a tight money market where there is a lack of funds available for real estate loans
  • When the FED lowers his reserve requirements

Question 59

Question
When a broker is representing both buyer and seller on an exchange real estate transaction, and the broker doesn’t disclose his dual agency to the parties, the remedy by the buyer and seller are:
Answer
  • No commission
  • Cancel the transaction
  • Sue for criminal and civil action
  • All of the above

Question 60

Question
When can an agent refuse to transmit an offer:
Answer
  • When the seller has accepted a back up offer
  • When the agent is acting as a gratuitous agent
  • To anyone at any time
  • When the agent is acting on express instructions from the principal

Question 61

Question
Which of the following is not a component when operating net income:
Answer
  • Personal income tax
  • Cash flow
  • Operation expenses
  • Ordinary income

Question 62

Question
Broker Taylor listed a property for $55,000 with instruction from the seller that the minimum down payment was not to exceed 23%. The broker then presented an offer with all cash and the seller rejected the offer. What should the broker do:
Answer
  • The seller can turn down the offer without liability, and pay no commission because the offer did not meet the requirements in the listing.
  • The broker is entitle to a full commission
  • The broker is entitle to a commission based on the appraised value
  • The broker is entitle only to a 23% of the appraised value

Question 63

Question
A broker has a listing and one of his sales persons sells the listing. This is known as:
Answer
  • Dual agency
  • Single agency
  • Single agency for the buyer
  • No agency

Question 64

Question
Deed covenants that limited the conveyance of properties to persons of the minority group, these restrictions:
Answer
  • Has no effect on the conveyance, covenant is unenforceable
  • Enforceable if buyers prefer to have them
  • Valid, only buyer and seller may cancel them
  • May be cancelled by escrow

Question 65

Question
If the comparable properties has an item that is not present on the subject property:
Answer
  • Add from the subject property to the comparables
  • Subtract from the comparable properties to the subject property
  • Add from the comparables to the subject property
  • Add to the basis of the subject property

Question 66

Question
A clause on a trust deed that agrees to be on a lesser position is known as:
Answer
  • Acceleration clause
  • Subordination clause
  • Or more clause
  • Agreement clause

Question 67

Question
A document to transfer property from trustee to trustor is when the trust deed is terminated is:
Answer
  • A grant deed
  • A trust deed
  • A reconveyance deed
  • A partial reconveyance deed

Question 68

Question
When an agent is a subagent of the selling broker he is working for:
Answer
  • The seller
  • The buyer
  • The lender
  • The beneficiary

Question 69

Question
The path way of an airport is over Omedos home, and loss of value do to the constant noise of the airport. Omedos legal proceedings against Government Authorities to purchase his property is called:
Answer
  • Just compensation
  • Eminent Domain
  • Condemnation
  • Inverse condemnation

Question 70

Question
The city made a change in zoning that is not permitted in the construction industry. This is an example of:
Answer
  • Variance
  • Building code
  • Restrictions
  • Zoning changes

Question 71

Question
The activity of an unlicensed person working for a real estate office, according to the Department Of Real Estate, the unlicensed person:
Answer
  • The agent is self-employed
  • The agent is an employee of the broker
  • According to the Real Estate Law, it must be under a licensed supervision
  • The broker has no duty to supervise the agent

Question 72

Question
An appraiser when appraising a Commercial Building for $550,000 must have a:
Answer
  • General Appraisal License
  • Certify License
  • Commercial License
  • Appraisal License

Question 73

Question
According to the Department Of Real Estate, if an agent wants to advertise on the World Wide Web.
Answer
  • Only provided by qualified real estate licensees
  • Only to real estate brokers
  • Anyone appointed by the broker
  • Anyone appointed by the real estate commissioner

Question 74

Question
If the seller presented the hazard disclosure statement to the buyer which of the following is true:
Answer
  • The seller is not obligated to disclose anything else other than the report
  • No other disclosure is needed
  • The buyer must agree to the content disclosed in the hazard disclosure statement
  • The seller and seller’s agent are obligated to disclose any material hazard for which they are aware.

Question 75

Question
Which of the following is true in regards hazard safety disclosure statement and transfer disclosure statement:
Answer
  • The hazard safety disclosure statement and transfer disclosures are needed only if buyer is interested.
  • The hazard safety disclosure statement is the complete hazard disclosure
  • If the transfer disclosure statement is presented no other disclosures are needed
  • The Seller and the Licensee must check the public posted maps to discover and disclose existing hazard information if it is available. The transfer disclosure statement is limited to information that the owner knows.

Question 76

Question
Which of the following is a violation of the Federal Housing Law according to periodic tenancy:
Answer
  • Requiring first month rent in advance
  • Acquiring co-signers for unmarried persons only
  • Acquiring good credit rating
  • Acquiring references from previous landlords

Question 77

Question
Which of the following reports is the most complete:
Answer
  • Narrative report
  • Form report
  • Letter report
  • Neighborhood data

Question 78

Question
Deed restrictions may be created by:
Answer
  • By a deed or written agreement
  • Zoning
  • By a deed or written agreement and zoning
  • Only by a deed

Question 79

Question
A tenant may be justified in abandoning a leased property if the landlord has constructively evicted the tenant. Which of the following acts would be an example of constructive eviction:
Answer
  • The landlord has shown the property to a new prospective tenant and has entered into lease negotiations with the new tenant.
  • The landlord has failed to make necessary repairs to the premises
  • The landlord has made extensive and unwarranted alterations to the premises, making it no longer usable for its original purpose
  • All of the above

Question 80

Question
Nominal rate or normal rate means
Answer
  • The rate stated in the note
  • The rate named in the good faith estimate
  • The rate printed in the purchase agreement
  • The rate set by escrow instructions

Question 81

Question
Who can order the pest control report: if sold through the owner:
Answer
  • Escrow
  • The lender
  • The seller
  • All of the above

Question 82

Question
Roger sold his home, he paid $140 for escrow services, 6% commission, the seller received $13,583. The sales price is:
Answer
  • $12,770
  • $14,440 $13,583 + $140 = $13,723
  • $14,540 $13,723 / .94 = $14,598
  • $14,600

Question 83

Question
An agency relationship is represented by:
Answer
  • Oral agreement
  • Written agreement
  • Assignment
  • Commission agreement

Question 84

Question
A Dual Agency is permitted when:
Answer
  • Buyer and Seller agreed to it
  • Buyer agrees to it
  • Seller agrees to it
  • By lenders approval

Question 85

Question
A written contract between the broker and salesperson has to be in writing according to:
Answer
  • The National Association of Realtors
  • The rules and regulations of the Real Estate Commissioner
  • Only if necessary
  • The multiple listing service

Question 86

Question
Riparian rights refers to owners that borders:
Answer
  • River/streams
  • Bays and seas
  • Subterranean cavities
  • All of the above

Question 87

Question
A pest control company, according to the Real Estate Rules and regulations must provide a copy to:
Answer
  • The owner
  • The seller
  • The escrow company
  • The lender

Question 88

Question
Once a binding contract has been created between buyer and seller the buyer will receive:
Answer
  • Equitable title
  • Legal title
  • Certify title
  • Pending title

Question 89

Question
The date in the purchase contract or deposit receipt is the date in that:
Answer
  • The buyer signed
  • The contract was prepared
  • The agent received the deposit
  • Final acceptance was communicated back to the offeror

Question 90

Question
The construction industry is regulated by:
Answer
  • State housing law
  • Local building codes
  • Contractors license law
  • All of the above

Question 91

Question
If a lender decides to take a deed in lieu of foreclosure the lender:
Answer
  • Must receive an approval of sale from the trustor
  • Must get a deficiency judgment in court
  • Will own the property free and clear
  • Assumes any junior liens

Question 92

Question
The Market Data Approach is:
Answer
  • Based on the assessed value
  • Inferred from comparable properties
  • Based on the cost of material to build the same property
  • Based on the annual net income

Question 93

Question
A listing must contain all of the following except
Answer
  • Compensation
  • Lawful object
  • Unspecified consideration
  • Being notarized by a notary

Question 94

Question
Under the Truth and Lending Law disclosure is presented by the:
Answer
  • Lender
  • Beneficiary
  • Borrower
  • Seller

Question 95

Question
The Federal Fair Housing Law declares:
Answer
  • Eliminating prejudice throughout the United States.
  • Building houses for minority groups throughout the United States.
  • Guaranteeing separate but equal housing in all of the States.
  • Providing Fair Housing for persons throughout the United States.

Question 96

Question
Buyer and seller entered in a contract and the buyer asked the broker to move into the property before closing escrow the broker must:
Answer
  • Obtain an interim-occupancy agreement
  • Give the buyer a temporary lease
  • The agent may give the buyer oral permission
  • Obtain written consent from the escrow company

Question 97

Question
Davis sold his friends home in Yolo County. Davis has no license and received a commission. Who will prosecute Davis:
Answer
  • The District attorney
  • The real estate commission
  • The attorney general
  • The board of supervisors

Question 98

Question
John entered into a Right to Sell Listing with Broker Otis. John gave Otis $100 to advertise the property. The payment of the $100 to Otis Must:
Answer
  • Must be deposited in the trust account and used for the purpose intended
  • Be applied towards his commission
  • Be deposited in the trust account if it is less than $200
  • None of the above

Question 99

Question
A broker must have the following in writing any employment agreement with which of the following:
Answer
  • Secretaries
  • Janitorial employees
  • Real estate staff
  • All of the above

Question 100

Question
Property may be substituted by:
Answer
  • Design
  • Earnings
  • Use
  • Any of the above

Question 101

Question
A Exclusive Agency Listing may be for a period of:
Answer
  • 180 days
  • 60 days
  • 6 months
  • Any time agreed between the agent and seller

Question 102

Question
An easement attached to the land is known as:
Answer
  • Gross easement
  • Prescriptive easement
  • Appurtenant easement
  • Ingross easement

Question 103

Question
Cost approach is used in:
Answer
  • New buildings
  • Old construction
  • Land
  • None of the above

Question 104

Question
All of the following are necessary for a valid contract except:
Answer
  • Meeting of the minds
  • Lawful object
  • Consideration
  • Payment of money or performance

Question 105

Question
An appraiser will deduct the vacancy factor of an apartment to arrive at:
Answer
  • Effective gross income
  • Net income
  • Gross income
  • Appreciation

Question 106

Question
An agent is authorized to accept a deposit on behalf of the seller, this clause is found in which of the following contracts:
Answer
  • Listing agreement
  • Purchase agreement
  • Escrow instructions
  • Loan documents

Question 107

Question
A lessee may abandon the property by all of the following except:
Answer
  • When property becomes dilapidated due to tenants negligence
  • Condemnation by Eminent domain
  • Failure of the landlord to make repairs
  • Eviction notice

Question 108

Question
Broker Marshall sold to Sanders a property “as is”. Marshall and seller knew about problems with the plumbing. Sanders, after close of escrow discovered the problems with the plumbing. If Sanders wants to seek legal proceedings he will be:
Answer
  • Successful because the duty to disclose material fact cannot be avoided by AS IS
  • Not successful because the property was sold as is
  • The buyer’s responsibility is to hire a professional home inspector
  • As Is provision the buyer must accept the property on its present condition

Question 109

Question
The authority that prohibits an agent from doing an act of fraud is found in:
Answer
  • Business and Professions Code
  • Listing agreement
  • Real estate office conduct
  • Real estate purchase contract

Question 110

Question
The legal process to evict a defaulting tenant is called:
Answer
  • 3 day notice
  • Unlawful detainer action
  • 30 day notice
  • Surrender

Question 111

Question
Eminent Domain may be exercised by:
Answer
  • Cities
  • Public Utilities
  • Public Education
  • Any of the above

Question 112

Question
What state agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms:
Answer
  • Department of Real Estate
  • Department of Corporations
  • Department of Housing and Development
  • Structural Pest Control Board

Question 113

Question
A board foot is:
Answer
  • Six inches by twelve inches by three inches
  • Six inches by six inches by six inches
  • Twelve inches by six inches by four inches
  • Six inches by twelve inches by two inches

Question 114

Question
In order for a broker to be able legally to claim a commission on an Exclusive Right to Sell Listing, which of the following termination dates would be appropriate:
Answer
  • Until either principal or agent gives proper notice of rescission.
  • 120 days after completion of the improvements.
  • For 180 days from the date the listing agreement is signed by the contracting parties.
  • For 90 days after a conditional commitment is issued by the FHA.

Question 115

Question
Amezcua was asked to disclose her ethnicity in the loan application:
Answer
  • Sue the real estate broker
  • Refuse to disclose the portion of the loan application
  • Must fill in the entire application including the ethnicity disclosure box
  • Do nothing

Question 116

Question
If the buyer and seller agree to prorate property taxes as of the date of the close of escrow, and the escrow closes May 1, and the current annual tax bill of $1,380 has been paid, the escrow agent would appropriately debit the buyer for:
Answer
  • $130
  • $230 $1380 / 12 = = $115
  • $115 115 X 2 = $230
  • $680

Question 117

Question
When a home is financed under the State of California Veterans Farm and Home Purchase Plan, which of the following documents is used:
Answer
  • A real property purchase contract
  • Listing agreement
  • A grant deed
  • A mortgage

Question 118

Question
Which of the following is a fiduciary relationship:
Answer
  • Buyer to seller
  • Landlord to tenant
  • Sellers to appraisal
  • Agent to principle

Question 119

Question
The Earthquake Booklet was not necessary if property was built before:
Answer
  • 1957
  • 1960
  • 1975
  • 1978

Question 120

Question
Under which of the following listings can the seller refuse to pay a commission even if the agent is the procuring cause:
Answer
  • Open listing
  • Exclusive right to sell listing
  • Exclusive agency listing
  • Net listing

Question 121

Question
Functional Utility is:
Answer
  • Marketability
  • Location
  • Layout
  • Desire

Question 122

Question
costing $190,000 in a $100,000 home neighborhood. This is an example of:
Answer
  • Progression
  • Social obsolescence
  • Functional obsolescence
  • Economic Obsolescence

Question 123

Question
Which of the following is not a valid reason for the seller to terminate an Exclusive Listing:
Answer
  • The broker’s license was revoked
  • The seller declared bankruptcy
  • One of the seller's relatives gets a real estate license and the seller wants her to have the listing.
  • The broker was declared mentally incompetent after signing the listing

Question 124

Question
Hanson wants to buy a property and talks to Broker Cohen about that particular property that he wants to buy. Broker Cohen contacts the property owner and tells him that Hanson wants to buy his property. The seller tells the broker that the property is not for sale. Three months later Cohen found out that the seller entered into a purchasing contract with Hanson. Under these circumstances Broker Cohen is entitle to:
Answer
  • Sue for his commission
  • Sue for his time and labor
  • Get paid a finders fee
  • Entitled to nothing

Question 125

Question
In applying the principles of the Easton vs. Strassburger Case, Real Estate Licensees are obligated to give prospective buyers of certain real estate:
Answer
  • A list of obvious defects and functional obsolescence.
  • A list of known defects and those that should be known.
  • A strong recommendation that the buyer obtain a home inspection.
  • A disclosure forcing the buyer to take the property “as is”.

Question 126

Question
Mr. Arturian granted a property to Macy with a condition not to drink alcohol beverages. Macy’s ownership is now describe as:
Answer
  • Fee simple
  • Conditional
  • Agreement
  • Fee simple defeasible

Question 127

Question
The maximum fine that may be imposed by the Real Estate Commissioner against a broker who pays an unlicensed person for soliciting borrowers or negotiating real estate loans is:
Answer
  • $1,000
  • $5,000
  • $10,000
  • $50,000

Question 128

Question
In the event a person is discriminated against in violation of Title VIII of the Civil Rights Acts of 1968, that person may seek relief by:
Answer
  • Filing a Civil Action in a State Court.
  • Filing a Complaint with the Secretary of HUD.
  • Filing a Civil Action in a Federal Court.
  • Any of the above.

Question 129

Question
The police power to divide the land into districts is accomplished by:
Answer
  • Eminent domain
  • Condemnation
  • Zoning
  • Down zoning

Question 130

Question
Which kind of relationship does the salesperson not have:
Answer
  • Attorney-in-fact
  • Broker-client
  • Fiduciary
  • Attorney-client

Question 131

Question
Which of the following is a commercial acre:
Answer
  • Any parcel of 43,560 square feet.
  • An acre located outside of an R zoning.
  • An acre after deductions for streets, sidewalks, curbs and alleys.
  • An acre zoned for commercial purposes.

Question 132

Question
The purpose of the assessment roll, as compiled by the assessor’s office is:
Answer
  • Determination of the actual tax to be paid by the property owner.
  • The equalization of the assessments among the various properties.
  • The setting of the tax rates.
  • The establishment of the tax base.

Question 133

Question
Buyer makes offer to buy a home including all the appliances. Seller is willing to accept offer, but will not include all of the appliances. Agent crossed out buyer’s requirement for all appliances without the knowledge or consent of the buyer. Seller then accepted the “modified offer.” Agent’s action was:
Answer
  • Unethical, but not illegal
  • Legal, if seller was aware of agent’s actions
  • Common practice by most real estate agents
  • Illegal

Question 134

Question
An estate at sufferance is:
Answer
  • The lessee keeps possession of a lease after expiration of the lease term
  • Possession of a lease after expiration of the lease term sellers approval
  • Possession of a lease during the lease
  • Eviction of a lease for non-payment of rent

Question 135

Question
  Jack leases a single family dwelling property from Mr. Michaels. After the lease agreement is signed and Jack moves in, Mr. Michaels insists that Jack sign a contract agreeing to make substantial capital improvements to the property. This requirement by the lessor would render the lease contract:
Answer
  • Valid
  • Voidable by the lessor
  • Voidable by the lessee
  • Void

Question 136

Question
Jackson leased his home to Sullivan with a verbal agreement to sell the property to Sullivan. Jackson knows that Sullivan has been making significant improvements to the property in reliance on the verbal agreement. Jackson now declines to sell the property to Sullivan. Which of the following best describes the rights of the parties:
Answer
  • Jackson must sell because he made an agreement
  • Sullivan has no right to enforce the verbal agreement
  • Jackson must sell because the doctrine of estoppel will apply in this case
  • Jackson does not have to sell because of the Statute of Frauds

Question 137

Question
Banks loan 80% of appraised value. If the Interest rate is 11%, and the first year interest was $7,040 , what was the appraised value.
Answer
  • $64,000
  • $76,000
  • $80,000 $7,040/11% = $64,000 LOAN AMOUNT
  • $85,000 $64,000/80% = $80,000 APPRAISAL VALUE

Question 138

Question
The SW ¼ of the NW ¼ of Sec. 5 is valued at $800 per acre. The S ½ of the NE ¼ of Sec. 8 is valued at $500 per acre, what is the difference in value between the two parcels:
Answer
  • $6,000 A section is 640 acres. 1/4 of a section is 160 acres.
  • $8,000 1/4 OF 1/4 section is 40 acres. 40 acres times $800 = $32,000
  • $10,000 A section is 640 acres. 1/4 of a section is 160 acres.
  • $12,000 1/2 OF 1/4 section is 80 acres. 80 acres times $500 = $40,000 $40,000 minus $32,000= $8,000

Question 139

Question
The original amount of a straight note of that calls for interest payments of $60 per month based on a rate of 8% per annum is:
Answer
  • $4,000
  • $7,500 $60x12 = $720 PER YEAR
  • $9,000 $720/8% = $9,000
  • $12,000

Question 140

Question
Wong bought a vacant lot for $17,424, wants to sell the lot and make a 40% profit after paying a 10% commission. What must he sell lot for:
Answer
  • $24,393
  • $27,104
  • $28,395 $17,424 X 1.40 = $24,393
  • $31,402 $24,393 / 0.90 = $27,104

Question 141

Question
An investor purchased a trust deed and note at a 20% discount. This was a one year fully amortized note with a face amount of $4,500 with payments of $393 per month including 9% interest. If she holds the note for the full year, the yield on her original investment would be.
Answer
  • 29% 4500 X 20% = $900
  • 31% $393 X 12 = $4,716
  • 24% 4716 - $4,500 = 216
  • 36% $900 + $216 = $1,116 $1,116 / $3,600 = 31%

Question 142

Question
On August 5th a borrower gave Broker Gutierrez a personal check for $1,000. made payable to the seller. The buyer instructed Broker Gutierrez that the check should be held uncashed until August 30th. Broker Gutierrez must:
Answer
  • Not accept the deposit
  • Return the deposit to the buyer
  • Accept the deposit and instruct the seller that the check has to be held until August 30th.
  • Not accept personal checks

Question 143

Question
Which of the following factors would tend to make real estate values unstable in a residential neighborhood:
Answer
  • An increasing number of average priced homes are being constructed in a neighborhood with a number of high priced homes.
  • Local zoning restrictions, that would limit or prohibit the construction of multiple family units.
  • The residents of a neighborhood are of the same ethnic background and religious beliefs.
  • The subdivider demanding each borrower to purchase lots with a minimum number of square feet and value.

Question 144

Question
Misuse of the term “Realtor” is:
Answer
  • A violation of the California Real Estate Law.
  • A felony offense.
  • Unethical but not illegal.
  • Only unethical in California.

Question 145

Question
When the Real Estate Commissioner wishes to proceed against a licensee for a suspected violation for the Real Estate Law the Commissioner must first serve the real estate licensee with:
Answer
  • A complaint.
  • A demurrer.
  • A statement of issues.
  • An accusation.

Question 146

Question
Federal Law requires sellers, landlords and remodels to disclose known information on lead-based paint. It is assumed that lead-based paint was last used on homes built before:
Answer
  • 1952
  • 1967
  • 1978
  • 1989

Question 147

Question
When applying the capitalization of net income approach to establish the value of an income property, which of the following would not be included as an expense:
Answer
  • Cost of capital
  • Utilities
  • Property management
  • Reserves for replacement of improvements.

Question 148

Question
Which of the following is not one of the survey systems in California:
Answer
  • San Bernardino
  • Willamette
  • Humboldt
  • Mt. Diablo

Question 149

Question
John owns a lot that measures 150 feet deep by 50 feet wide. The zoning laws require a 20 foot front setback and 4 foot setback on both sides and at the back. The available area is:
Answer
  • 5,292 square feet 150 - 24 = 126
  • 5,560 square feet 50 - 8 = 42
  • 6,556 square feet 126 X 42 = 5,292 sq. ft.
  • 6,800 square 42X126= 5,292

Question 150

Question
The broker has an oral listing to sell real property. The broker presented an offer which the seller accepted. The seller then requested the broker to give him the buyer’s deposit check.
Answer
  • The broker must give the check to the seller
  • The broker must deposit the check in escrow
  • The broker must deposit the check in the trust account
  • Return the deposit to the buyer
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