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150 Cards in this Set
- Front
- Back
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Which of the following will terminate an easement for nonuse: |
A. Prescriptive easement |
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Which of the following would be considered real property |
D. A bearing wall in a single family house |
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A real estate broker may have difficulty with personal property because its ownership rights and identification may be difficult to determine. This is because personal property can: |
D. All of the above |
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Alienation is the opposite of: |
A. Acquisition |
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A deposit to purchase real estate is held by escrow. In case of a conflict between buyer and seller and both demanding the deposit specified in the purchaseagreement . When is the escrow allowed to disburse the deposit. |
D. All of the above |
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When an owner acquires land with riparian rights appurtenant thereto, such rights: |
D. Are only available to land adjacent to moving water, a stream or brook within the watershed. |
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The agent’s commission for negotiating a real property lease is fixed by: |
D. Agreement. |
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When rent is computed on the gross sales of a business. Then the lease iscorrectly termed: |
D. A percentage lease. |
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A standard policy insures against: |
D. Recorded deed that was not properly delivered and accepted. |
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The right or power to sell a property in the event of a default under the terms of the trust deed is given by: |
D. Trustor to trustee |
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The purpose of the Truth-in-Lending Act is to: |
C. Assure a meanful disclosure of credit terms to the buyer |
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Which of the following indicators would best define the purchasing power of the U.S. dollar: |
D. Price Indexes |
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Lenders sometimes require borrowers to deposit amounts with the monthly mortgage payments to cover some costs related to the property.Which of the following would not be included in such impounds: |
C. Monthly interest. |
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Conversation about real estate finance that included reference to a “warehousing” activity would probably be referring to. |
C. A mortgage banker collecting loans prior to resale. |
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The purpose of the assessment roll is to: |
A. Establishment of the tax base |
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Reserves or impounds are recurring costs by a lender except: |
D. Monthly interest mortgage |
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Which of the following persons would usually be in the weakest position against loss of property due to a claim of title by an outside person: |
A holder of an unrecorded quitclaim deed who does not occupy the property |
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Valuable, adequate, Good and Sufficient means: |
C. Consideration |
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Dual Agency is legal if: |
C. The buyer and seller consent to it. |
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Which of the following is most nearly correct concerning Buyer’s Agency: |
D. The Buyer’s Broker has no agency relationship with the seller or the listing broker, and is therefore not liable for their actions. |
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Where is a deed recorded: |
D. In the county where the property is located |
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Buyer Clark contacted Broker Jacobs to find out if Jacobs had a listing on a certain property that Buyer Clark was interested in purchasing. Broker Jacobs did not have a listing on the property in question but informed Buyer Clark that he would get the full details. The broker then contacted the property owner in an attempt to obtain a listing and informed the owner that Buyer Clark was interested in purchasing the property. The owner refused the listing, informing the broker that the property was not for sale and that he would not list the property with any broker. Two months later, Broker Jacobs was informed that the owner had in fact sold the property to Clark without Broker Jacobs’ knowledge. Given these conditions. |
D. Broker Jacobs is entitled to nothing. |
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Ms. Miller executed a full price and terms offer to purchase Taylor’s property through Broker Hicks who held an Exclusive Authorization And Right To SellListing. As the broker was leaving the office to present the offer, another broker handed him a second offer for $1,000 less than the listed sales price but which contained a larger down payment and other different terms. Hicks, the listing Broker, should. |
B. Present both offers at the same time. |
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A real estate agent may legally represent all principals in the same transaction if: |
D. All of the above |
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In July, Spenser bought Longs home through the listing Broker Ceeley, inNovember, when the first rain came, the tile roof leaked badly in many places.Spenser sued Long and Broker Ceeley for the cost of the necessary new roof.Testimony in court showed that Long had mentioned the need of a roof to Ceeley, but Ceeley had not mentioned it to Spenser because he had not asked about it. The most likely result was: |
A. Spenser was successful in the suit against Long and Long was entitled to recover damages from Broker Ceeley. |
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If a seller of real property inquired of his broker concerning the ethnic background of a prospective buyer, the broker. |
C. Violates the California Fair Housing Act (the Rumford Act) if he gives the seller the requested information. |
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When a seller makes a counter-offer, the: |
C. The offeree becomes the new offeror. |
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If a broker receives a personal check made payable to an independent escrow company from a buyer as deposit on the purchase price, the broker: |
C. Must deliver the check to the escrow company prior to the close of escrow. |
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Broker Able took a listing from Mr. Cain on a commercial property. Broker Able then presented an offer from the XYZ Company that was above the listed price. Mr. Cain accepted the offer. However, the broker did not tell Mr. Cain that he was one of the principals in the XYZ Company, concerning the sale, the: |
B. Seller could cancel the contract. |
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Since Harris did not have the necessary $285,000 cash to purchase 300 acres of land for future subdivision, Nishimoto agreed to purchase the land and enter into a conditional installment sale contract with Harris, selling him the land for$298,000. The action by Harris is: |
D. Valid purchase and resale transaction. |
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Attorney in fact is: |
B. Any legal competent person who has received a power of attorney from another person. |
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An executed contract is a contract: |
A. Completed and fully performed by both parties. |
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In which of the following transactions is the agent required to disclose his or her agency relationship: |
B. The sale of a residential tri-plex. |
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Jimmy built a house on speculation and sold it for $282,000, receiving $262,000cash from the proceeds of new financing and a $20,000 note secured by a second deed of trust. In order to build a second house on another lot, Jimmy would like to borrow $50,000. If he uses the $20,000 note as part of the security, the note in this instance would be a: |
D. Pledge |
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Ms. Wilson made an offer to purchase real property. However, she died of a heart attack before the listing broker could notify her of an unqualified, signed acceptance by the seller. Based on these facts, which of the following is true: |
B. The death of Wilson constituted a revocation of the offer |
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A Real Estate Licensee acts as: |
D. Fiduciary |
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A Flood Hazard Report is required as part of filing for a subdivision public report. If a flood hazard exists, the degree of hazard must be reported. The degree of flood hazard is: |
A. Inundation, sheet overflow, and ponding of local storm water. |
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Ross owns a commercial building, enters into a seven-year lease with Roberts for the property. In your opinion, Robert’s lease is: |
D. All of the above |
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Which of the following is real property: |
A. Stock in a mutual water company. |
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Inflationary trends in the housing market affect: |
B. Market values and sale prices |
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Which of the following might be short-rated by the escrow holder: |
A. Fire insurance |
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Alienation expresses a meaning completely opposite to: |
A. Acquisition |
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Which of the following is acceptable response to sellers who have indicated their home is not to be shown to sales of prospects who are members of the ethnic minority group. The agent must. |
C. I cannot accept the listing on your property because I'am prohibited from discrimination |
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Mr. Abdul owned an unencumbered lot and decides to build a single family residence on it. He bought $8,000 worth of lumber and had it delivered to the property. One week later he obtained a construction loan for $150,000 fromPeople’s Savings and Loan Association. The loan was recorded after the lumber was delivered. Later more lumber was delivered and subsequently the completed structure was painted. When the lumber company could not collect$8,000 on the amount owed and the painter could not collect $3,000 for the painting;they each filed a mechanic’s lien. If the property is sold at a foreclosure sale and nets $150,000, the amount received by People’s Savings and Loan would be: |
B. $139,000 |
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A seller was presented an offer on his home which he immediately accepted. The acceptance was communicated to the buyer. Before escrow was opened, the seller found another buyer who was willing to pay all cash. He decided to cancel the original contract and notified the broker of his decision. Under these circumstances: |
B. The broker has an excellent legal basis to collect a commission. |
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The holder of an easement that is not attached to any land owned by the easement holder has: |
B. An easement in gross |
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When a Real Estate Broker negotiates the sale of a used mobile home, it is the broker’s responsibility to give written notice of the transfer to the Department of Housing and Community Development within: |
C. 10 calendar days |
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The maximum amount of a Broker’s personal funds that may be kept in his or her trust account without being guilty of commingling is: |
B. $200 |
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When a licensee acts as an agent for another without authority or color of authority and the acts are later approved by the principal, an agency has been created by: |
C.Ratification |
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Banks loan 80% of appraised value. The interest rate is 11%. The first year’s interest was $7,040. What was the appraised value. |
C. $80,000 |
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The following instructions were given to a Real Estate Agent to sell properties in a new subdivision: 1. Sell to women rather than men 2. Try to sell homes in equal numbers to Hispanics, Asians, Africans and Caucasians. |
D. Both A and B |
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A home owner needed $9,000 to pay for his child’s education. The lender arranged an equity loan for the amount of $9,600. The lender must now present the borrower with the following: |
C. Mortgage loan disclosure statement |
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Jackson sold a condominium to William for $90,750. William assumed an existing loan of $30,000. If there is no other agreement and the documentary transfer tax is .55 for each $500 the most nearly amount of tax to be paid is: |
D. $67 |
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The current use of a building to its highest and best use is called: |
D. Interim use |
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To an appraiser the method used to evaluate a shopping center is: |
C. Cost approach |
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Which of the following types of listings enables the broker to represent the seller as the agent, or allows the broker to purchase the property himself: |
B. Option listing. |
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n 1998, Broker Drake acted as the agent for 3 different principals in the purchase of 3 apartment buildings. Later, the purchasers were able to prove thatBroker Drake had misrepresented the income on the properties and each principal was able to obtain a judgment for damages against Drake in the amount of $10,000, $15,000 and $75,000. If Broker Drake is now bankrupt and each principal seeks reimbursement from the Real Estate Recovery Account the claimant with the $50,000 judgment would receive. |
C. $50,000 |
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An unlicensed employee may not do any of the following in a real estate office except: |
C. Type listings for the salespersons |
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Vargas owned 3 sections of vacant land. He sold eight parcels of 80 acres each at a price of $160,000 each. He then sold the remaining land in parcels of 160 acre each at a price of $400,000 per parcel. Based on this information, the total selling price for the 3 sections of land was: |
D. $4,480,000 |
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Which of the following listings may the owner refuse to pay a commission even if sold through an agent: |
B. Net listing |
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Which of the following rights of ownership in real estate mayan individual not have: |
A. Eminent domain rights |
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Willy paid $17,424 for a vacant lot which had an area of 21,780 sq. ft. and was140 ft. deep. He then sold the lot and made a 40% profit after paying a 10% commission to Broker John. At what price per front foot did the lot sell: |
B. $174 24 X 140% (100% plus 40%) = $24,393.60 $24,393.60 divided by 90% (100% minus 10%) =$27,104 listing price 21,780 sq. ft. divided by 140 feet = 155.57 front foot 27,104 divided by 155.57 front foot = $174.22 front foot. |
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The owner of a condominium unit in a condominium development is selling her unit and wants to place a “For Sale” sign on the property. If the CC&Rs prohibit the posting of a “For Sale” sign in the complex, the owner: |
A. Is legally permitted to post a sign if it is of reasonable proportions |
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BTU (British Thermal Unit) refers to: |
B. Heating systems |
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Disclosure Statement regarding any earthquake hazard must be given to a prospective purchaser by the seller or the seller’s agent. This statement must contain which of the following information: |
B. Whether the property is or is not in an official earthquake fault zone. |
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Which of the following is not related to income tax: |
C. Homestead |
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Multiple apartment buildings are represented by: |
D. R3 |
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Increase in value with the passage of time is known as: |
B. Appreciation |
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If you are asked to appraise a property built in 1910, which of the following would you use: |
D. Today’s cost of reproduction less depreciation. |
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A footing is which of the following: |
D. A heavy concrete course placed in the ground upon which the concrete foundation is set. |
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When used in real estate, which of the following terms are usually used with such adjectives as “good”, “sufficient”, “adequate” and “valuable”. |
C. Consideration |
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A Licensee who speaks of a “grandfather” clause is probably referring to: |
D. Continuation of a non-conforming use |
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For appraising purposes, when making adjustments in the direct comparison analysis. |
C. Comparables are adjusted to the characteristics of the subject property. |
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When buying a single family residence with the aid of an unlicensed person. If the unlicensed person receives compensation the agency that will prosecute the unlicensed person is: |
A. District Attorney of the respective county |
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The best guidelines to determine if an action is ethical will be found in which of the following? |
B. The Business and Professions Code. |
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A Real Estate Broker presented an offer to the seller, which the seller accepted. During escrow, the seller discovered that the buyer was the brother of the broker. This relationship was not disclosed in the offer. The seller can: |
C. Cancel the transaction without liability for the commission. |
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Wilson signed an offer, before the broker could obtain unqualified signed acceptance of the offer from the seller, Wilson died of a heart attack. The contract in now: |
B. Cancelled, the death of Wilson is the revocation of the offer |
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A “release clause” in a Trust Deed provision: |
D. Creates a lien only on taxes and assessments |
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Who is in charge of constructing streets, utilities and curbs. |
B. The developer |
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Which of the following is synonymous |
B. Construction loan / Interim loan |
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Who is in charge of the direct enforcement of Building Codes: |
C. The building inspector |
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If title and possession are not concurrent at the close of escrow the agent must create: |
A. Interim occupancy agreement |
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A prepayment penalty clause on a loan means: |
A penalty charge to a borrower who makes advance payments |
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A turnkey project is: |
B. A construction project completed (ready for occupancy). |
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A developer who owned a large parcel of land wanted to subdivide the parcel and sell individual lots to potential buyers of single-family residences. In order to finance the costs of improving the parcel with streets, sidewalks and gutters, and to be able to pass these costs on to the purchasers, the subdivider would use: |
C. Mello-Roos Municipal Bonds |
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If a loan with a due on sale clause is taken over “Subject to” without the consent of the lender: |
C. The seller may be held personally liable for loan and deficiency if permitted by law |
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A lien imposed by court in all of the principals property is a: |
B. General lien |
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Which of the following is true about legal aspects of Real Estate Law: |
C. Personal property can become real property |
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A listing agreement is: |
D. All of the above |
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Which of the following is necessary for creation of an agency: |
D. Mutual consent |
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When is it permissible for a broker to complete the transfer disclosure statement: |
C. When the agent has been instructed to do so by the seller |
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A Lower loan to value ratio, higher the: |
A. Equity |
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A Broker placed the following ad: 4 bedrooms, 3 bathrooms, pool, spa,$154,000 call 333-66-9999. This ad is called a: |
B. Blind ad |
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Demand for non-agriculture properties includes: |
D. All of the above |
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A contract between the seller and broker to sell real property is in a form of: |
C. Written agreement |
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Customary procedures to enforce private restrictions in real estate is accomplished by: |
B. Injunctions |
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The phrase used in real estate by brokers to the principals is: |
A. Fiduciary |
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A borrower bought a home for $162,000. Gradual economic inflation affects the equity to the benefit of the: |
D. Trustor |
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What’s true about escrow: |
A. Escrow changes from dual agency to single agency for each party |
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Which of the following will least appear on the buyers debit side: |
D. Interest on assume loans |
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Under FHA MMI represents: |
C. Insurance for the mortgagee in case of foreclosure |
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Market value is synonymous with: |
B. Price |
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The beneficiary on a second trust deed sold the note for lesser value. This is an example of: |
C. Discounting |
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A Licensee under a Non- Exclusive Listing, the Licensee must prove that: |
A. He was the procuring cause of sale |
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Rostanian was denied credit and was denied access to her credit report and an explanation for rejection for credit. Rostanian may do which of the following: |
D. All of the above |
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Burg bought a mobile home from a dealer. Now Burg wants to sell it.Broker Fisher listed the mobile home. If Fisher wants to sell Burgs mobile home the mobile home must : |
C. Fisher may sell a mobile home that is attach to a permanent foundation approved and registered |
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Out of state relatives of an agent want to buy a property. The agent made an offer to purchase a property with a lease and option to buy. A disclosure must be presented to: |
A. To the owner (seller) |
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An amendment presented to a buyer on changes to the transfer disclosure statement , the buyer: |
C. Either A and B |
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A compensating clause for commission expired on a listing agreement. The broker verbally notified to the seller of a new buyer after the expiration date. The following day the buyer and the seller got together and started negotiations. The broker is entitle to: |
A. No commission |
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On a property built next to a gas station the owner should: |
D. Order a toxic waste report |
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Ownership rights and interest are represented by: |
D. All of the above |
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A tax shelter refers to: |
D. Income tax |
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Land value is estimated on the basis of: |
A. Selling price of comparables |
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Which of the following is necessary for a valid deed: |
C. Property description |
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The amount that can be charged for the preparation of the Uniform Settlement Act is: |
A. Nothing |
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The guidance for a transfer disclosure statement sequence is as follows: |
B. Confirmation, election, disclosure |
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After the appraiser has collected all the data and applied the appropriate appraisal method(s), what is the next step in the appraisal process: |
B. Reconciliation |
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When appraising a property built on a hillside the appraiser notices cracks on the walls. The best recommendation is to: |
A. Order soil engineer report |
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A real estate broker negotiates the sale of a home on behalf of the seller in which the buyer obtains a new first trust deed and the seller carries back a second trust deed as part of the purchase price. The broker recommends to the seller that they execute and record a “Request for Notice of Default”. This would be done for the benefit of the: |
B. Beneficiary of the second trust deed. |
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A Disclosure form must be given to the purchaser of any property that is subject to a lien created under the Mello-Roos Community Facilities Act. The party that is responsible for the delivery of this statement is. |
A. The seller |
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Roberto owns an apartment building and undertakes a 1031 exchange in order to defer paying taxes. He could exchange his apartment building for: |
B. A more valuable apartment building, exchanging loans, and paying money to the other party to equalize the values. |
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A broker shows a prospective buyer a home. The buyer makes an offer, which the seller accepts. The broker, buyer and seller then go to the Reliable Escrow Company where the buyer makes out a personal check for a $1,000 deposit payable to Reliable Escrow Company and hands it to the escrow officer. Which of the following is correct. |
D. The broker does not have to keep a record of the check. |
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What type of title insurance policy covers everything: |
D. No title insurance policy covers everything. |
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A real estate salesperson is attempting to renew his license. The Department of Real Estate finds that according to the Department of Child Support Services, the party has failed to make the required child support payments. Under these circumstances, the salespersons license: |
C. Can be issued on a temporary basis for 150 days. |
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F an appraiser to determine the amount of Economic Obsolescence suffered by a commercial property owner, which of the following is true: |
C. Is the neighborhood prospering |
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Who signs the reconveyance deed: |
B. The trustee |
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If a licensee fails to renew his or her license prior to its expiration date, the licensee: |
D. May renew it within two years by submitting the proper application and pay the appropriate late fees. |
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A seller owns an easement attach to the buyer's adjoined property. The seller did not use the easement for 21 years. The easement is now: |
A. The easement is valid |
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Which of the following can be considered economic obsolescence: |
C. Zoning changes. |
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A real estate broker advertises that he will give a seller a credit in escrow on his commission to any seller who lists with him and that he will pay $50 to any buyer who purchases a property from him. This type of advertising is: |
B. Legal if disclosure is made to all parties to the transaction. |
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The purpose of the “hold harmless” clause in the Residential Listing Agreement is to protect the broker from any liability or claims resulting from: |
B. Incorrect information supplied by the seller |
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An appraiser who is to appraise a Commercial Property with an estimated value of $550,000 must hold which of the following appraisal licenses: |
D. Certified General Real Estate Appraiser |
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There are three phases or steps involved in the construction of a single family residence. These three steps are: |
A. Land acquisition, devopment and construction. |
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In the sale of a residence when the buyer is to take possession of the property prior to the transfer of title, the buyer and seller should execute a: |
A. Interim Occupancy agreement. |
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Two days after entering into a contract for the sale of a home, both the buyer and seller agreed to rescind the contract. The broker representing both the buyer and the seller: |
C. Return the entire deposit to the buyer. |
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When buying a home buyers prefer which of the following polices: |
B. Standard |
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The Real Estate Agency Disclosure Form must be given to the parties in which of the following transactions: |
D. Sale of a residential triplex |
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Agent Ana presented an offer on one of the office’s listings. The offer had a contingency that the property is to be approved by the buyer's Uncle Paul, since he is financing the property. Ana did not discuss the offer with the buyer. Ana presented the offer to the seller thinking that the Uncle will have no objection to the property. The seller accepted the offer. The buyer told Ana that the uncle was out of state and not to present the offer because the Uncle has to approve the property and now they cannot find him. The action by the broker was: |
A. Unlawful |
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Broker (A) is representing Brown. Brown makes an offer contingent to the sale of Browns home located on Elm St. Jones accepted the offer on Main St.then broker (A) handed the offer to broker (R) with a referral fee attached to the contract.who must the agent present a disclosure to: |
D. Both owners, of Main St. and owner of Elm St. to Jones and Brown. |
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To determine value by net income and percentage of reasonable rate of return on an investment a process used by appraisers known as: |
A. Capitalization |
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Which of the following is a unique characteristic of an FHA mortgage: |
D. It insures the lender against loss. |
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A commercial bank agreed to loan Davis $180,000 for a one year term provided Davis agreed to maintain a savings account with the bank in the amount of$18,000 during the term of the loan. This provision is known as: |
A. Compensating balance. |
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A real estate agent wrote-up an offer for a buyer. The buyer was primarily interested in this particular home because it was located in a very good school district. The deposit receipt did not make the offer contingent upon the school district. The offer was accepted and escrow was opened. During escrow the school is located in a poor school district. Which of the following is true: |
C. Buyer is bound to the contract. |
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All of the following could be recurring expenses to a reserve or impound account by a borrower except: |
B. Monthly mortgage interest. |
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Who signs the trust deed and promissory notes: |
C. Trustor |
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Which of the following is true concerning a “buyers agency”: |
D. Buyers agent doesn’t have an agency with sellers agent, he is not responsible for his action. |
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If the city wants to acquire a commercial property by eminent domain, they: |
B. Must pay the owner “just compensation” |
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An appraiser intends that the estimate of value as disclosed in his appraisal report on a property be valid: |
A. As of the date of the appraisal only and may contain past values at some point in the past. |
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A broker, who is authorized by another broker to act as a subagent as authorized by the seller, is primarily responsible to: |
B. The principal |
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A clause on a trust deed where the lender’s right shall be secondary to a subsequent trust deed is called: |
C. A subordination clause |
