From Tests

Front 1

What is the date of the agency relationship disclosure law?

Back 1

Jan 1, 1988

Front 2

What is the date of the TDS law?

Back 2

1987

Front 3

An Express contract can be delivered:

Back 3

Written or orally

Front 4

What act outlawed kickbacks?

Back 4

Real Estate Settlement procedures act, 1974

Front 5

What is novation?

Back 5

An exchange of one contract, person or obligation for another

Front 6

Under the ______, a buyer has ___ yrs to sue a seller for refusal to perform and close escrow

Back 6

Statute of Limitations; 4 yrs

Front 7

Liquidated damages are limited to ___% of the sales price on an o/o residential 1-to-4 unit

Back 7

3%

Front 8

What are the sequential steps of agency disclosure?

Back 8

Disclose, elect, confirm

Front 9

Earthquake fault zones are ___ miles wide

Back 9

.25/ a quarter

Front 10

______ are not added to the original cost basis of real property/adjusted for federal income tax purposes

Back 10

Monthly mortgage payments

Front 11

Adverse possession requires:

Back 11

Occupancy for five years, the occupant pays all taxes against the property

Front 12

Unlike a lease, a license does not include:

Back 12

Termination date, rental payments, the right to exclude others from entry

Front 13

When a lender recasts or calls a loan, it is called:

Back 13

Acceleration

Front 14

What is the term for when an interest rate exceeds the legal limit?

Back 14

Usury

Front 15

The ______ issues the certificate of clearance to a buyer when purchasing a business

Back 15

State Board Of Equalization (SBOE)

Front 16

What does intestate succession mean?

Back 16

The property owner dies with no will and the transfer requires probate court approval

Front 17

What is a board foot?

Back 17

A piece of lumber whose volume is the equivalent of 12"x1"x1" (i.e. 6"x2"x12")

Front 18

Land is the only property that is not:

Back 18

Depreciable

Front 19

What are the elements of value?

Back 19

Demand, utility, scarcity and transferability (DUST)

Front 20

What is "puffing"?

Back 20

Exaggerating certain features of a property

Front 21

What is a UCC-1?

Back 21

A uniform commercial code financing statement used to put the public on notice of a lien created by a security agreement on personal property

Front 22

Successful marketing materials include these four elements:

Back 22

Attention, interest, desire, action (AIDA)

Front 23

What is used to force a tenant to vacate a property they no longer have the right to occupy, and who instigates it?

Back 23

An Unlawful Detainor; the Landlord/ the Lessor

Front 24

A _____ is the most detailed report becuase is offers detailed descriptions.

Back 24

Narrative Appraisal Report

Front 25

Only the government (not individuals) may acquire property by:

Back 25

Escheat

Front 26

The concept that no person would pay more for a property than the price of a reasonably close alternative is:

Back 26

Substitution

Front 27

If a buyer is required to put 20% down for the LTV ratio, that % is calculated from the ________, not the purchase price.

Back 27

Appraisal value

Front 28

And ARM is a loan that:

Back 28

Allows the borrowers to make monthly payments less than the interest accruing, resulting in negative amortization

Front 29

A landlord is required to provide a copy of the written lease to the tenant within:

Back 29

15 calendar days

Front 30

The act of placing two parcels of real estate on on a piece of land under common ownership is called _____; the increase in value is called _____

Back 30

Assemblage; Plottage refers to value

Front 31

The Statutory Right a homeowner has to rescind a purchase contract is:

Back 31

3 days

Front 32

The closing disclosure needs to be presented to the buyer:

Back 32

3 business days before the buyer closes on the mortgage

Front 33

When a seller enters into a purchase agreement with the buyer, the seller's agent prepares a ______ to disclose the financial consequences of a sale when setting the listing price and upon acceptance of the buyer's offer

Back 33

Net sheet

Front 34

A death on the property must be disclosed if it occurred within _____ years prior to the purchase.

Back 34

3 years

Front 35

__________ applies to one-to-four residential property

Back 35

Real Estate Settlement Procedures Act (RESPA)

Front 36

Porperty which benefits from an easement is the:

Back 36

Dominant tenemant

Front 37

In order to handle escrow activities, the broker must:

Back 37

Be otherwise involved in the transaction (one of the agents)

Front 38

When a lease containing an option to purchase is assigned, the option will typically:

Back 38

Pass with the assignment

Front 39

An impound account is a:

Back 39

"Recurring cost"

Front 40

The gross rent multiplier (GRM) is calculated by:

Back 40

Dividing sales price by gross monthly rents

Front 41

A freehold estate (life estate) means ownership; anything less is a:

Back 41

Leasehold

Front 42

The first thing an appraiser does when appraising land is determine:

Back 42

The highest and best use of the land

Front 43

A lender must notify the borrower when a final/balloon payment is due:

Back 43

90-150 days prior to the due date (3-5 months)

Front 44

The order of events in a court proceeding is:

Back 44

Attachment (of the property) judgement, execution

Front 45

Every exclusive listing requires a ______ ________ __________ after the listing agreement is SIGNED

Back 45

Specified termination date

Front 46

Illegal purpose makes a contract: void/voidable

Back 46

VOID

Front 47

If a party has an option to perform and does not, the contract becomes: void/voidable by the other party

Back 47

VOIDABLE

Front 48

The rating of insulation needs to be disclosed on newly built homes, called the:

Back 48

R-value

Front 49

Agency Law Disclosure is required on:

Back 49

1-to-4 Residential units, leases for more than 1 year

Front 50

NOI:

Back 50

Net Operating Income

Front 51

What is used to determine the value of an investment in income-producing property?

Back 51

Cap(capitalization) Rate: dividing the NOI by the property's price

Front 52

In a carry-back transaction, the seller (the beneficiary) receives:

Back 52

The promissory note and trust-deed

Front 53

Under which type of title insurance policy is the insurance company least likely to inspect the property?

Back 53

Standard policy

Front 54

________ is when a listing agent improperly deletes provisions on a buyer's signed contract and adds copy to replace deleted material

Back 54

Interlineation

Front 55

What is a constructive eviction?

Back 55

When a landlord substantially interfere's with a tenant's use and enjoyment and the tenant therefore vacates the premises

Front 56

An unsuspecting buyer who acquires ownership of real estate without knowledge of a pre-existing enforceable purchase agreement from another buyer is called a:

Back 56

Bona fide purchaser

Front 57

A clause in a trust deed used by the lender to declare the total balance due upon transfer of property is called:

Back 57

Due-on clause

Front 58

A legal process asking the court to resolve disputes between principals over trust funds entrusted to the broker is:

Back 58

Interpleader Action

Front 59

Disciplinary action agaisnt a non-licensee who performs real estate activities is handled by:

Back 59

Local district attorney

Front 60

When a sub agency is created with the seller's approval, the sub agent is primarily responsible to:

Back 60

The seller, not the agent

Front 61

An easement does not need to ________ to be valid.

Back 61

Specify a location

Front 62

A buyer needs to be notified if a property is within _____ mile(s) of a military ordinance

Back 62

1 mile

Front 63

Only an _____, NOT a standard policy, will give additional coverage for title, such as encroachments and prescriptive easements

Back 63

ALTA (American Land Title Association)

Front 64

After an applicant passes their test, they must apply for their RE license within _____

Back 64

1 year

Front 65

When a broker employs a sub agent with the seller's approval, the sub agent is responsible to the:

Back 65

Seller

Front 66

What are five approaches to appraising a property:

Back 66

GRM ( income-producing porperty), Capitilization rate (Purchase price ÷ NOI), cost approach, sales comparison approach, market data approach

Front 67

Who is responsible for giving a Pest Control Report to the buyer?

Back 67

The seller or their broker

Front 68

In the cost-approach method, "reproduction cost" measures ________; whereas "replacement cost" means _______

Back 68

Reproduction cost: the present cost to build and exact replica; Replacement cost: present cost to build a structure with similar utility using modern methods and materials

Front 69

The beneficiary on a trust deed is a:

Back 69

Lender

Front 70

Interest =

Back 70

Prinipal x rate × time (___ months÷12 months)

Front 71

If there is not specified closing date in escrow intusctions, escrow can last:

Back 71

Any reasonable length of time- less than 30 days to more than 90 days

Front 72

A listing agent can never be:

Back 72

A sole agent for the buyer

Front 73

A buyer can rescind an offer until:

Back 73

The seller's acceptance has been communicated to the buyer

Front 74

If apartments are to be converted into condominiums, a tenant needs to be given ____ to vacate

Back 74

90 days from the public report issuance

Front 75

What is the basis of all appraisal methods?

Back 75

Principle of substitution- that no buyer will pay more for a property than a the cost of a similar porperty

Front 76

Transfer tax varies and is calculated from:

Back 76

The amount put down on a property.

Front 77

What type of contract is the only one that requires a response within a certain period of time?

Back 77

Purchase contract

Front 78

Real estate licencees have a _____ year grace period after their license expires during which their license is suspended and they must _____ and _____ to renew their license

Back 78

Two year grace period; they must complete continuing ed and pay a higher renewal fee to renew

Front 79

What type of notice is given by recording a deed?

Back 79

Constructive notice

Front 80

The right to take something from a property (such as water from a stream) is called:

Back 80

Appropriation

Front 81

Utility elements (such as sewer pipes running thru a property) are:

Back 81

Easements in gross

Front 82

The holding of Easton vs Strassburger requires brokers to:

Back 82

Disclose all known material facts about the property (TDS)

Front 83

The word "tenancy" means:

Back 83

The method of holding interest to real property by the lessee (tenant) or owner

Front 84

What regulates ethics in Real estate?

Back 84

The Business and Professions Code

Front 85

In appriasing, "capitalization" is used to:

Back 85

Convert future benefits for present Net Worth

Front 86

An exclusive listing must have:

Back 86

A termination date

Front 87

In a foreclosure, who has posession of the property during the redemption period?

Back 87

The mortgagor (borrower)

Front 88

Escrow law is contained in the:

Back 88

California Financial Code

Front 89

"Company dollar" most nearly means:

Back 89

The broker's share of the commission received

Front 90

A broker must present all offers on a property until:

Back 90

Escrow is closed

Front 91

A salesperson is "an agent of the agent" and therefore their commission is paid by:

Back 91

Their broker

Front 92

The _______ makes it unlawful to discriminate in financing by charging additional fees to certain groups of people.

Back 92

California Holden Act

Front 93

The GRM is calculated by dividing the sales price of a untit by:

Back 93

Gross monthly rents

Front 94

A fee simple absolute estate is defined as:

Back 94

The highest interest one can have in real property, affords the owner full, absolute ownership of a property free of limitations

Front 95

A lease conveys:

Back 95

An exclusive right of posession

Front 96

If a lease requires a tenant to pay certain expenses such as taxes, maintenance or insurance, it is called a:

Back 96

Net lease; a gross lease requires the landlord to pay all expenses

Front 97

When rent is calculated based on the gross sales of a business occupying the property, the lease is classified as:

Back 97

Percentage lease

Front 98

A triangular shaped piece of land is called a:

Back 98

Gore

Front 99

A broker cannot lawfully:

Back 99

Act as an escrow officer

Front 100

Which appraisal approach calculates the value of the land separately:

Back 100

Cost approach

Front 101

Cost basis equals:

Back 101

Purchase price+ improvements- depreciation

Front 102

When the administrator of an estate sells a parcel:

Back 102

Court approval is required

Front 103

A holder in due course is one who is one who has taken a note, check or bill of exchange in due course:

Back 103

1) before it is overdue 2) in good faith and for value 3) without knowledge that it has been previously dishonored

Front 104

A holder in due course can be defended by:

Back 104

Forgery, incapacity

Front 105

A subdivider needs to give a copy of the Real Estate Commissioner's public report to:

Back 105

Anyone upon request

Front 106

Brokerage fee provisions which may be included in a seller's exclusive right to sell listing include:

Back 106

A fee on any sale provision, a termination provision, a safety clause

Front 107

A conditional installment sale gives the buyer (the vendee):

Back 107

possession of the property

Front 108

For a buyer's broker to have the ability to negotiate their fee, the broker needs to enter into an employment agreement with their buyer called:

Back 108

A buyer's listing

Front 109

Real estate investments are generally funded through a combination of:

Back 109

Mortgage and investor funds

Front 110

When failure to disclose a material fact is discovered, the appropriate action by the buyer would be to:

Back 110

Sue both the seller and their broker

Front 111

A real estate agent is obliged to present any offer to the the seller unless:

Back 111

The offer is patently frivolous or the agent is acting on written instructions of their seller

Front 112

What does not terminate an agency relationship?

Back 112

Refusal to perform by the agent or the principal

Front 113

What kind of tenancy does not need to be for an extended period of time (not even a year), but must be for a specified period of time?

Back 113

An estate for years

Front 114

Businesses are typically subject to:

Back 114

Net leases; tenant pays all maintenance and operating costs

Front 115

Masonary buildings with wood frame floors or roofs are required to deliver earthquake safety guides when built prior to: _______; for all other homes the safety guide needs to be delivered is its built prior to:

Back 115

Masonary buildings- 1975; all other homes- 1960

Front 116

In a deed, the clause that defines the nature of the estate being granted is the:

Back 116

Habendum

Front 117

On any investment rental property, regardless of the number of units, what is the minimum number of years in which the owner can depreciate the building for federal income tax purposes?

Back 117

27.5

Front 118

In a 1031 exchange, a person is most likely to be taxed for a gain when:

Back 118

Trading down- taxable gain occurs when anything other than like-kind real estate is recieved on the exchange

Front 119

An escrow agent cannot:

Back 119

Unilaterally make a decision that effects either principal; i.e. releasing money or documents to either party

Front 120

A rental listing service that intends to relocate is required to provide notice of the new address and telephone number to its clients:

Back 120

Before the move is to occur

Front 121

When a deed does not fit in the chain of title or the name does not appear previously on the title, it is called:

Back 121

A wild document

Front 122

A disclosure which warns a buyer they may be liable for additional tax obligations after the close of escrow:

Back 122

Supplemental tax bill disclosure

Front 123

The appraisal process which allocates a percentage of a property's value to the land and the percentage to improvements is known as:

Back 123

The allocation approach; ratio of total value to site value

Front 124

A capital improvement to real property will always:

Back 124

Increase the book value of the property by the cost of improvement

Front 125

If a deed provides for an easement granting ingress and egress over a neighboring property, but fails to locate the easement:

Back 125

The servient tenement holder can specify a reasonable area

Front 126

If a seller refuses to pay a broker their earned commission, the broker may:

Back 126

File a court action against the seller to recover their fee

Front 127

Personal property is sometimes called:

Back 127

Chattel

Front 128

To use personal property as collateral for a loan while the owner retains ownership of it is called:

Back 128

Hypothicate

Front 129

A _______ benefits from an easement, while a _______ is burdened by the easement.

Back 129

Dominant tenement; servient tenemant.

Front 130

An appurtenant easement is the right to:

Back 130

Cross or use a property, runs with the property

Front 131

An easement in gross is the right of:

Back 131

Utility; belongs to an individual not the land

Front 132

Interests in real estate which secure payment of debt are:

Back 132

Liens

Front 133

Fee estates/fee title properties are held for: _____; while life estates are held for:_____

Back 133

Perpetuity; a finite period of time

Front 134

Month to month rental

Back 134

Periodic tenancy

Front 135

A lease with a fixed term (can be less than a year)

Back 135

Estate for years

Front 136

When a tenant remains occupying a property beyond the expiration of their lease.

Back 136

Estate at sufferance

Front 137

A tenant's agreed continued occupancy beyond the lease term

Back 137

Estate at will

Front 138

The parties of a lease are:

Back 138

The lessor (the owner) and the lessee (the tenant)