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153 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Accertion |
Acquiring land through natural forces. Only accretion represents a gain of property. |
Accumulation of sediment on a costal property. |
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If evidence of active infestation is found, a structural pest control report is required to be provided: |
When the home being purchased is financed by a Federal Housing Administration (FHA)-insured loan or U.S. Department of Veterans Affairs (VA)-guaranteed loan. |
(FHA) or (VA) |
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A purchaser of a condominium unit requests a copy of the conditions, covenants and restrictions (CC&Rs) and bylaws. These documents need to be provided within: |
Ten Days |
Deliver disclosures as soon as possible. |
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The expression “company dollar” refers to: |
Money left over after a salesperson’s share of a commission has been paid. |
Is the remainder of the broker’s split of the fee after paying their agent’s commission. |
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If an appraiser uses improper valuation methods or is negligent in completing a government loan assignment, they may be guilty of: |
Violating real estate law and committing a felony. |
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The calendar date that is of most concern to an appraiser is the date: |
The purchase contract was signed. |
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Fee amounts are always: |
Negotiable and not fixed by law. |
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The term “kiosk” refers to a(n): |
Open-sided booth. |
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Agency relationships may not be solely created by: |
Voluntary offer by the agent. |
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When representing their client to third persons in a sale, a licensed real estate broker is operating under the law of: |
Agency |
Exists for the purpose of clarifying the conduct of an agent when dealing with a third-party for the benefit of their client. |
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Gloria is considering an income-producing property to purchase as an investment. In analyzing it’s suitability for investment, what is Gloria most interested in? |
The capitalization (cap) rate |
Is the annual rate of return on invested capital experienced by an investment property. |
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What occurs when a listing agent deletes provisions on the face of a buyer’s signed purchase agreement and adds a copy to replace the deleted material. |
Interlineation |
Modifying boilerplate wording in a form by inserting additional language between the printed lines. This is improper conduct when it is performed after the principal has signed the agreement. |
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A contract has been fully executed when it has been: |
Completely and fully performed. |
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Real property that builds up along a riverbank is acquired through: |
Accession |
Addition to property through human efforts or by natural forces. |
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A metropolitan area where cities within it have grown together is known as a(n): |
Megalopolis |
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When a salesperson’s employing broker does, the salesperson needs to: |
Stop all real estate activity immediately until they find a new employing broker. |
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The final step in the appraisal process is to: |
Reconcile the different approaches and arrive at a conclusion. |
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The principle that housing passes down to lower economic groups would be: |
Filtering down. |
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When a broker solicits an accepts a deposit on the purchase of real property without express written authorization from the owner to sell the property, the broker is: |
Acting as an agent for the buyer. |
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A real estate broker generally acts from a position of trust for the seller or buyer. |
Fiduciary Relationship |
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Nathan agreed to list his property for sale with Broker Chan. In the listing agreement, Nathan specified Broker Chan is not authorized to accept a deposit towards the purchase price from the buyer. What happens if Broker Chan produces a buyer? |
If he accepts a deposit, he holds it as an agent of the buyer until the offer is accepted by the seller. |
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A(n) _________ is an individual’s opinion or estimate of a property’s value on a specific date. |
Appraisal |
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The employment agreement between a broker and a salesperson needs to be retained by the broker and salesperson for: |
Three years from the date of the termination of the salesperson’s employment. |
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How soon must a broker deposit a client check that is made out to the broker’s trust account? |
Three business days |
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How soon must a broker deposit a client check that is made out to the broker’s trust account? |
Three business days |
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Who must receive a copy of structural pest control report? |
The buyer |
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How soon must a broker deposit a client check that is made out to the broker’s trust account? |
Three business days |
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Who must receive a copy of structural pest control report? |
The buyer |
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A broker presented a written offer to their seller from a buyer . The offer stated that upon acceptance, the buyer would deposit $25,000 in escrow. The seller made a counteroffer but did not change the amount of the deposit and sent it back to the buyer. The buyer agreed to all the changes but lowered the amount of the deposit to $10,000. Which of the following statements is NOT correct. |
The contract is fully enforceable. |
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The relationship between a vendor and vendee under a land sales contract is most similar to the relationship between a(n): |
Seller and buyer |
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If a lessee assigns their lease to someone else, the lessee: |
May be responsible for both rent and maintenance. |
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Mineral and water rights are included in the _______ which are transferred with the sale of a property. |
Bundle of rights |
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Insulation values are rated as “R”. What does this represent? |
Resistance to heat and flow. |
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A violation of a condition in a homeowner’s association (HOA’s) conditions, covenant’s and restrictions (CC&Rs) is: |
More severe than the violation of a covenant. |
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Peter sold his home to Matt. Matt didn’t record the grant deed, but moved into the house. Peter then sold the same property to Isabella, who reviewed the county recorders records but did not look at the house. Peter gave Isabella a deed, which she recorded. Which of the following is true concerning title to the property? |
Matt maintains title. |
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Wainscoting can be found: |
On the lower three or four feet of an interior wall when finished differently from the rest of the wall. |
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A brokers receipt of any deposit towards marketing costs from a seller is documented: |
and accounted to the seller. |
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A real estate agent needs to elect their agency relationship: |
As soon as practical |
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An individual who has been delegated agency duties by an agent of the client, not the client directly, is known as a(n): |
Subagent |
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A real estate broker wrote an offer on a property for their buyer that was contingent on the approval of the home by the buyers father. The buyer informed the broker their father was out of the country for an unknown duration. The broker presented presented the offer to the seller without disclosing that the buyers father was out of the country. The seller accepted the offer. In this example, the brokers conduct was: |
Unlawful |
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If a broker wants to solicit for an advance fee, how many days before use must the broker submit the proposed solicitation to the Department of Real Estate (DRE) for approval? |
10 Days |
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Which of the following will not terminate an agency relationship? |
Estoppel |
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Appurtenances go with the land. Which of the following is not an appurtenance? |
A trade fixture |
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Marta’s city built a new park in her neighborhood. This may result in a(n): |
Special Assessment |
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Real estate investments may include: |
debt and equity funds |
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Confidential financial information about a principal obtained by a broker during the course of a real estate transaction needs to be kept confidential for how long? |
Forever |
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A real estate commission is normally calculated as a percentage of the: |
Selling price |
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If homes in an area represent the highest and best use of the land and are similar in architectural design, which of the following principles of appraisal apply? |
Conformity |
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In the instance of condominium ownership, which of the following may be held in fee title? |
In a condominium complex an individual owner owns their own condo as well as a proportional share of all common areas. |
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Which of these is considered least important when appraising old residences? |
The original cost of residence. |
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Acme Development sent postcards to 25,000 AARP members offering prizes without disclosing the requirement to visit the retirement community and attend a sales presentation in order to win. Is this legal? |
No, since the developer failed to disclose the need to visit the property and attend a sales presentation. |
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The sudden physical loss of land due to a flood is an example of: |
Avulsion |
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Information about the thickness and material used for the foundation footing of a property are contained in: |
Foundation plans |
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If a newspaper advertisement for the sale of a condominium states only the annual percentage rate (APR): |
No other disclosures are required. |
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A turnkey project is: |
Construction of a property from groundbreaking to completion. |
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A seller enters into an exclusive right-to-sell listing with an agent but does not receive a copy of the signed agreement. The seller, believing this relieves them of any obligations, personally sells the property while the listing is in effect. What is the outcome? |
The listing is valid and enforceable, but the broker is liable to be disciplined. |
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A buyer’s agent submitted on offer to purchase a home to a seller along with a $10,000 personal note as the earnest money deposit. The buyers agent is to: |
Inform the seller that the earnest money deposit is a personal note prior to the sellers acceptance of the offer. |
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A residential mortgage primarily for personal, family, or household use and secured by a deed of trust on a dwelling is known as a: |
Consumer purpose mortgage. |
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To make a formal declaration that a statement is true without giving an oath is a(n): |
Affirmation |
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All of the following are essential to creating a valid contract, except: |
Written Documentation |
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Broker Wallace represented a young man in the sale of his home. After purchase terms had been agreed to and the grant deed had been signed and delivered into escrow, the title company discovered that the seller was not 18 years old and was not emancipated. The grant deed is: |
Void |
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In order to form a building agreement, an offer or counteroffer: |
Needs to be accepted in its entirety and without conditions. |
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In a S1031 real estate exchange, “boot” does not refer to: |
Like-Kind consideration |
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A group of competing brokers who collectively set commissions based upon an agreed-to minimum commission schedule are: |
In violation of antitrust law |
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A listing broker may not be: |
The sole agent of the buyer |
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To avoid taxable gain, a property owner may exchange their commercial property with: |
A more valuable apartment building, assuming a larger loan and paying cash boot to balance equities. |
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On appraisals of older apartment buildings, a major problem in the cost method is: |
The determination of accrued depreciation. |
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When an appraiser attempts to establish the value of a commercial building, what type of property is least affected by changing economic conditions? |
A medical building |
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The form style of an appraisal report includes all of the following information except: |
Loan and financing data |
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The land residual method of appraisal is used to determine the value of the: |
Land alone |
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What must an appraiser do when they are hired to appraise a property owned by a corporation in which the appraiser owns a share? |
Disclose their ownership interest in the property and accept the assignment. |
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When the due-on clause in a trust deed is triggered, the lender may recast or call the loan, also known as: |
Acceleration |
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Who pays the points on a CalVet Home Loan? |
No one pays the points |
It is a land sales contract. |
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A mortgage broker’s fee is customarily paid by the: |
Borrower |
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Assemblage is closest to: |
Plottage |
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The task of evaluating a property to qualify it as collateral for the repayment of a loan is completed by a(n): |
Appraiser |
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In a buyers closing statement, the selling price is listed as: |
A debit to the buyer |
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Under the Real Estate Law, a real estate salesperson is: |
An employee of the broker. |
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A brokerage office with a high degree of turnover and failure amongst its staff is most likely a result of: |
Lack of supervision and training. |
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The designation “CPM” stands for: |
Certified Property Manager |
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A fictitious business name statement expires: |
Five years from recordation |
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A lost right caused by an unreasonable delay in the pursuit of a claim is called: |
Laches |
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A real property land sales contract does not need to show: |
How a dispute is to be resolved if there is a disagreement. |
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A walk-up refers to: |
An apartment building with no elevator. |
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A 60ft by 45ft building is to be carpeted. 60% of the square footage will be covered at a cost of $6 per square yard. The total cost of the carpeting will be: |
1080 |
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State licensing of contractors protects the public against: |
Incompetence |
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Which of the following is false regarding the cost method of appraisal? |
It produces the lowest value of results. |
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As opposed to condominium ownership, cooperative ownership has the disadvantage that: |
Owners could lose their equity if the other cooperative owners fail to make their tax and loan payments. |
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The federal Loan Estimate is to be delivered to a borrower. |
Within three business days of receipt of a consumer mortgage application. |
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A sellers broker receives a written offer on a listed property. The broker is certain the seller will not accept it. Which of the following may the broker NOT do? |
Change the offer price to what the broker thinks the seller will accept, and initial the change. |
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The Federal Truth-In-Lending Act TILA defines the annual percentage rate APR as: |
The relative cost of credit expressed in percentage terms. |
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A loan that allows the borrower to make monthly payments less than the interest accruing is referred to as a(n): |
Option adjustable rate mortgage (ARM) |
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The lowest closing costs other than the down payment are realized using a: |
CalVet Home Loan |
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A bank loans Lauren $850,000. Part of the loan agreement calls for Lauren to keep $20,000 of the loan funds on deposit with the bank for the life of a loan. This is an example of: |
Compensating balance |
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Which of the following is true regarding the agency duty held by a buyers agent? |
The agent represents the buyer only. |
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Unless fraud is involved, an action against a licensee by the Real Estate Commissioner needs to be initiated within _______ of the occurrence of the alleged violation. |
Three years |
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The organization responsible for the enforcement of proper sewage and sanitation construction practices in a subdivision is the: |
Local health department |
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Whether property functions as adequate security for a real estate loan depends on the: |
Value of the property |
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Harold wills the family estate to his son Patrick on the condition Patrick marry before the title will be transferred. This is an example of a: |
Condition Precedent |
Before a title is transferred |
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A real estate agent may not represent all principals in a transaction when: |
They fail to disclose their dual agency status the moment it arises. |
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The real estate disclosure law that became effective January 1, 1988 concerns: |
Agency relationships |
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Marc purchased an apartment building for 2,000,000. The list price was 2,500,000. Marc put 500,000 down and acquired a new first trust deed for the difference. Marc’s cost basis for income tax purposes is: |
2,000,000 |
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The proper order of events in a court proceeding involving real estate is: |
attachment, judgement, execution |
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The Real Estate Commissioner is primarily concerned with financial arrangements in a subdivision. If the Commissioner wishes to rescind approval of a subdivision, they would: |
Issue a desist and refrain order. |
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Who may withdraw trust funds? |
Any employee authorized by the broker. |
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It is unethical for a property managers compensation to be structured as: |
Kickbacks or discounts on goods and supplies. |
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The four essential elements of an enforceable contract are: |
Competency, mutual consent, lawful object, consideration. |
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When advertising on the internet, the broker needs to: |
Exercise proper supervision |
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A property owner lost their job. The owners loan payments were made for them since they had a(n): |
California Housing Financing Agency (CalHFA) loan. |
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A real estate salesperson may only be paid a commission by: |
Their employing broker |
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The existence of which of the following is required under disclosure law? |
The property is located next to a military ordinance site. |
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A broker related property information they received from their seller to a buyer. On discovering the information to be false, the broker is to: |
Inform the buyer |
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David listen his house for sale with Broker Paulson for $400,000. David told broker Paulson it was imperative that the property be sold quickly. Broker Paulson showed the property to Henry and told him David was financially insolvent and would accept $380,000. Based on Broker Paulsons statement, Henry offered David $380,000 for his property. David accepted the offer. Concerning broker Paulsons actions which of the following is true? |
Broker Paulson violated his fiduciary obligation to David since he acted in excess of this authority. |
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Compliance with the agency law is required in which of the following transactions? |
A residential lease with a two-year term. |
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An appraisal is valid for what length of time? |
The date stated in the report. |
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In order to transfer fee title to a parcel of real estate, which of the following is required? |
Delivery of a valid deed. |
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Which of the following parties is in the weakest position against loss of property due to a claim of title by a third party? |
The person possessing an unrecorded quitclaim deed who does not occupy the property. |
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An express contract is one that: |
Is structured in words, delivered in writing or orally. |
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Which of the following is least likely to be true regarding a property that is transferred through intestate succession? |
The owner of the property died with a will. |
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Alienation of title refers to: |
Transferring an estate |
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A seller entered into an oral listing agreement to sell real estate with a broker without a follow up written verification. The payment of a commission to the broker under these circumstances is: |
Unenforceable |
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All real estate brokers and sales agents are required to complete hours of continuing education (CE) every four years to renew their Department of Real Estate (DRE) license. |
45 Hours |
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Housing expenses are one of the largest denominators in the Consumer Price Index (CPI) since: |
Housing is one of the largest expenses for consumers. |
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Most real estate sales lawsuits are heard in: |
The state superior court |
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The physical age of a house can be determined best by inspecting: |
The county records |
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The primary concern of an appraiser when analyzing property is: |
Marketability and acceptability |
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What is contained in all purchase agreements that states the existence nonexistence of each brokers fiduciary agency with the various parties to the transaction? |
Agency confirmation provision |
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Which of the following is not considered ethical behavior? |
A broker who approves of a pocket listing policy among their staff that is done for personal gain, not to benefit the client. |
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For a salesperson to be given the authority to review purchase agreements and contracts by their broker, the salesperson granted supervisory powers needs to have: |
Accumulated two full years experience within the last five years. |
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A buyer purchased a home without being informed the house was on a septic tank system. The buyer has the right to: |
Rescind the contract. |
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Which of the following is NOT true regarding a notary acknowledgement contained in a grant deed? |
It does not need to be signed by the grantor. |
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Why are warranty deeds rarely used in California but commonly used in other states? |
Recourse against title company under a grant deed is more effective than trying to collect from the grantor under a warranty deed. |
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Amelia deeds a property to Buster which is never recorded. How would Buster transfer title back to Amelia? |
Creating a new feed |
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A buyers agent prepares an offer for a buyer of a home. When is the buyers agent to give the buyer the Agency Law Disclosure form? |
As soon as practicable |
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In addition to a general duty owed to the other party in a transaction, a licensee owes a(n) _________ to act with the utmost good faith and diligence for the benefit of their principal. |
Fiduciary duty |
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If a salesperson withholds a new listing from the MLS in an attempt to sell it themselves, it is called: |
A pocket listing |
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A property was sold netting $410,000 for the seller after 6% commission was paid. How much was the property sold for? |
$436,170 |
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A fully amortized loan has equal monthly payments. The portion of the payment applied to principal: |
Goes up each month |
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The person or organization named on a trust deed as the beneficiary is most likely the: |
Lender |
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What appraisal license is required to appraise a ten unit apartment building valued at $1 million? |
Certified general license |
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An appraiser was hired by Whitney to appraise DuPonts property. With whom does the appraiser discuss their findings? |
Whitney |
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Successful marketing materials are generally held to include the following four critical elements: |
attention, interest, desire, and action. |
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Californias energy conservation disclosure requirements require that buyers of newly built homes receive a disclosure concerning the: |
R-value of insulation used. |
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Gloria is considering an income-producing property to purchase as an investment. In analyzing it’s sustainability for investment, what is Gloria most interested in? |
The capitalization (cap) rate. |
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A home sold for $300,000. They buyer applied and was approved for a loan with an 80% loan to value ration (LTV) with a 20% down payment. The property was appraised for $290,000. How much will the buyer need as a down payment? |
20% of $290,000 + $10,000 |
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What is not essential to the creation of an agency relationship? |
Agreement to pay consideration. |
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When a broker represents only a buyer in the sale of real estate, this is referred to as: |
Single agency |
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The Agency Law Disclosure does not need to be made to all parties in which of the following transactions? |
Lease agreements for less than a year. |
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Agency disclosure is handled in the following sequential steps: |
Disclose, elect, confirm |
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What is an example of a real estate advertisement that is clearly misleading? |
Advertising which includes a map incorrectly indicating the property is close to area amenities. |
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Which of the following deed provisions are enforceable? |
The property may not be used for religious purposes. |
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Broker Gary sold a property to Sarah that was marketed “as is”. Broker Gary know that the property’s plumbing was in a major state of disrepair but did not tell Sarah. The problem with the plumbing is not apparent to an ordinary, prudent person. If Sarah sued the seller for damages the court action would likely be: |
Successful since the duty to disclose a material fact cannot be avoided by an “as is” provision under the stated circumstances. |
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If a newspaper advertisement run by a licensee fails to identify their name or license number, this is referred to as: |
A blind ad. |
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