More From Tests

Front 1

Loss of value of an expensive home due to lower-priced homes in close proximity is:

Back 1

Regression

Front 2

What are the 2 types of obsolescence?

Back 2

1) functional obsolescence (outdated equipment) 2) economic obsolescence (hardest to correct)

Front 3

What is an abstract of title?

Back 3

A report showing the chain of title after a search of records. It does not provide protection from defects

Front 4

A plot plan shows: _______. A plot map shows: _______.

Back 4

Where a building and other site improvements will be located; shape and size of a parcel of land and how it relates to other parcels in the area

Front 5

Title insurance:

Back 5

Holds harmless, reimburses, indemnifies a person who acquires an interest in real estate against monetary losses caused by an encumbrance

Front 6

What is an attorney-in-fact?

Back 6

Any legally competent person who has been given power of attorney to act on behalf of another

Front 7

What is the best valuation method for appraising raw land?

Back 7

Sales comparison approach

Front 8

Pest control inspection reports within 2 yrs can be obtained by:

Back 8

Any person

Front 9

Appraising residential properties valued at over $1 million requires:

Back 9

Either a certified residential license or a certified general license

Front 10

What valuation approach yields the highest estimate of value?

Back 10

Reproduction

Front 11

In a 1031 exchange, "boot" means:

Back 11

Any consideration of an UNLIKE kind

Front 12

A buyer has _____ to pursue a seller's agent to recover monetary losses for failure to disclose material facts.

Back 12

2 years

Front 13

An agency relationship is created by:

Back 13

Action, implication, ratification, verbal agreement

Front 14

An elevation sheet is used advertising for subdivisions and show:

Back 14

Drawings of the front and side views of the finished homes

Front 15

An exclusive listing agreement is:

Back 15

An executory and bilateral contract

Front 16

Ostensible agency occurs when:

Back 16

The buyer and the seller in a transaction both consider a broker their agent, but the broker may not know because the relationship has not been formally disclosed

Front 17

A licensee must complete ______ hours of continuing ed every _____ years.

Back 17

45 hours every four years

Front 18

When several properties are securing one loan, it is called a: ____________. A _______ releases some properties upon partial payment.

Back 18

Blanket mortgage; release clause

Front 19

Successful Marketing Materials include:

Back 19

Attention, interest, desire, action (AIDA)

Front 20

Impound accounts exist to ensure:

Back 20

Property taxes and insurance will be paid

Front 21

Before a new home can be occupied:

Back 21

A certificate of occupancy must be issued by the local building dept.

Front 22

Mineral and water rights are included in the:

Back 22

Bundle of rights which transfer w. the sale of the property

Front 23

An Express contract can be delivered:

Back 23

Orally or in writing

Front 24

Under the Subdivided Land Law, the Real Estate Commissioner is initially concerned with which court?

Back 24

Superior

Front 25

In a general plan, what is the method used by the planning commission?

Back 25

Zoning

Front 26

A negative declaration issued for an Environmental Impact Report (EIR) indicates:

Back 26

There are no negative effects of a proposed development to the environment

Front 27

A leasehold estate is not real property because it is:

Back 27

A less-than-freehold estate

Front 28

The ALTA goes beyond the CLTA by protecting against:

Back 28

Location of property lines in accordance with formal survey

Front 29

The Uniform Commercial Code (UCC) exists to protect:

Back 29

Creditors against debtors who might try to walk away from their debts

Front 30

A tenant in common may not:

Back 30

Will their interest in property to another upon their death

Front 31

In a newspaper advertisement, the annual percentage rate (APR) is:

Back 31

Sufficient enough financing information

Front 32

A subdivision consists of ____ or more units, except in the case of a timeshare which is ____ or more

Back 32

6 units; 12 units-timeshare

Front 33

Total foreclosure time under a trustee's sale on a trust deed is minimally:

Back 33

4 months (3 months + 4 weeks advertising)

Front 34

The Statute of Limitations allows a buyer _____ years to sue a seller for failure to perform and close escrow.

Back 34

4 years

Front 35

If a salesperson takes a listing on a house, then changes the broker they work under, the listing belongs to:

Back 35

The salesperson's previous broker

Front 36

Transfer tax stamps come in multiples of:

Back 36

$0.55

Front 37

Most real estate records need to be kept for a period of _____ years after the commencement of the listing or the close of escrow.

Back 37

3 years

Front 38

A deed is recorded and indexed based on:

Back 38

The grantor and grantee names alphabetically

Front 39

A fictitious DBA name needs to be renewed:

Back 39

Every 5 years

Front 40

A buyer of a common interest development (CID) may receive copies of all except:

Back 40

A homeowner's warranty (this belongs to the individual homeowner)

Front 41

When purchasing a business, the buyer needs to be certain it has recieved a _______ from the __________, which assures that any taxes due have been paid.

Back 41

Certificate of Clearance from the State Board of Equalization. (SBOE)

Front 42

An irrevocable right to purchase property within a specific time period is known as an:

Back 42

Option to buy

Front 43

Sequential steps of the appraisal process:

Back 43

Define the problem, gather the data, analyze it, reconcile results, reach a conclusion

Front 44

What are the elements of value?

Back 44

Utility, demand, scarcity, transferability (DUST)

Front 45

What is estoppel?

Back 45

The principal that stops a person from asserting something contrary to what is previously implied by actions/statements

Front 46

What is the method used in the Cost Approach Method that totals the cost of materials and labor?

Back 46

The Quantity Survey Method

Front 47

In order to transfer fee title a parcel of real estate, what is required?

Back 47

Delivery and acceptance of a valid deed

Front 48

In a buyer's closing statement, the selling price is listed as a:

Back 48

Debit to the buyer

Front 49

A cloud on title is:

Back 49

Any inconsistency in the names of the title holder and grantor on the deed (i.e. a married woman uses her changed name)

Front 50

A beneficiary statement is made by _____ for the purpose of ________

Back 50

The lender; to state the current balance required to pay off a real estate loan

Front 51

How do you calculate the adjusted cost basis of personal residence?

Back 51

The property's original cost + improvements - depreciation

Front 52

The greatest loss in value for real estate is due to:

Back 52

Obsolescence

Front 53

Accretion is:

Back 53

The acquisition of property thru natural causes.

Front 54

When a broker want to store documents electronically, the DRE requires them to use:

Back 54

WORM- write once, read many

Front 55

A section contains how many acres?

Back 55

640

Front 56

The essential elements of an enforceable contract are:

Back 56

Competancy, mutual consent, lawful object and consideration

Front 57

When an aggrieved person has been discriminated against, they can file:

Back 57

A civil action in state and federal courts or file a complaint with HUD

Front 58

Square yards to square feet:

Back 58

Divide by 9

Front 59

What type of notice is given by recording a deed?

Back 59

Constructive Notice

Front 60

What valuation approach yields the highest estimate of value?

Back 60

Reproduction

Front 61

Under what listing contract must an owner pay a commission regardless of of who sells the property?

Back 61

Exclusive right to sell listing

Front 62

Under a land sales contract for the sale of real property, legal title is held by:

Back 62

The vendor

Front 63

What kind of loan is required to have an appraisal?

Back 63

A US Department of Vet Affairs (VA) Loan

Front 64

A property owner found guilty of violating the rumford act may be required to:

Back 64

Pay a civil penalty of up to 10,000, sell or lease the property to the aggrieved person or locate a similar porperty to rent to them

Front 65

A voidable contract remains binding until it is:

Back 65

Rescinded

Front 66

A violation of an HOA's CC&R's is:

Back 66

More severe than the violation of a covanent

Front 67

What is required to establish title by adverse possession?

Back 67

Open, notorious or hostile use, the payment of taxes for 5 yrs

Front 68

A pest control inspection is only required on:

Back 68

VA loans and some FHA loans where active infestation is observed

Front 69

What kind of lease requires the tenant to pay certain expenses such as taxes, maintenance or insurance in addition to the rent?

Back 69

Net Lease

Front 70

An abstract of title is:

Back 70

A written summary of documents shown in the title history of the property.

Front 71

What loan has the lowest closing cost?

Back 71

CalVET home loan

Front 72

The Alquist Prolio Study Zone is specific to:

Back 72

Residential properties located in earthquake fault zones

Front 73

A lender who originates a HELOC (home equity line of credit) is required to deliver:

Back 73

A copy of the mortgage loan disclosure statement to the borrower

Front 74

A broker paying a portion of their commission to a buyer or seller is:

Back 74

Allowable provided that it is fully disclosed to all parties

Front 75

The receipt for delivery of a subdivider's final public report needs to be kept by the subdivider and their agent for how long?

Back 75

3 years

Front 76

Acquiring of land thru natural causes is called:

Back 76

Accretion

Front 77

CC&Rs must be given to a purchaser of a condominium unit within _____ days of the request

Back 77

10 days

Front 78

If an appraiser is negligent in using valuation methods, they may be guilty fo violating:

Back 78

Both real estate law and apparaisal ethics

Front 79

The calendar date that is of most concern to an appraiser is the date that:

Back 79

The purchase contract was signed

Front 80

Fee amounts are always:

Back 80

Negotiable and not fixed by law, though 6% of sales price is common

Front 81

A contract is fully executed when it has been:

Back 81

Completely and fully performed

Front 82

What is a metropolitan area where cities within have grown together?

Back 82

A megalopolis

Front 83

The principal that housing passes down to lower economic groups is:

Back 83

Filtering down

Front 84

When a broker solicits and accepts a deposit on the purchase of real porperty without express written authorization from the owner, the broker is:

Back 84

Acting as an agent for the buyer

Front 85

If a seller does not authorize a broker to accept deposit towards a purchase price, but the broker procures a buyer who gives them a deposit, the broker may:

Back 85

Accept the deposit and hold it as an agent of the BUYER until the offer is accepted by the seller.

Front 86

In order for someone to acquire title, they must give constructive notice, which requires that the buyer look at:

Back 86

The property as well as county records

Front 87

A notary acknowledgement contained in a grant deed must be signed by:

Back 87

The grantor

Front 88

To make a formal declaration that a statement is true without giving an oath is an:

Back 88

Affirmation

Front 89

A commission on trust deeds with a term of less than three years is limited to, more than three years is limited to:

Back 89

5%, 10%

Front 90

If a property appreciates by 10% each year, you calculate it by:

Back 90

Adding 10% to the purchase price, them adding 10% to that and so on for each year.

Front 91

What is ratification?

Back 91

The adoption or approval of an act performed on behalf of a person without previous authorization after the act has been performed (creates agency)

Front 92

Return OF (not ON) an investor's investment is provided for through:

Back 92

Depreciation

Front 93

Prohibiting against a "for sale" sign is:

Back 93

A violation of the First Ammendment

Front 94

Senior citizen housing is restricted to housing for persons:

Back 94

55 or 62 or older

Front 95

Who is bound to perform in an option?

Back 95

Only the optionor (seller)

Front 96

Riparian rights are:

Back 96

Real property

Front 97

The ________ is responsible for off site improvements in a new subdivision.

Back 97

Developer

Front 98

Delinquent interest is never:

Back 98

Prorated

Front 99

In mortgage financing, the term warehousing means:

Back 99

A mortgage broker who packages loans prior to their sale on the secondary market

Front 100

When changes are made to correct functional obsolescence, it is called:

Back 100

Remodeling

Front 101

A deed:

Back 101

Does not have to be recorded to transfer title

Front 102

To avoid taxable gain, a property owner may exchange their commercial property with:

Back 102

A more valuable apartment building, assuming a larger loan

Front 103

A lost right caused by an unreasonable delay in a pursuit of a claim is called:

Back 103

Laches

Front 104

The Federal Truth in Lending Act (TILA) defines the annual percentage rate as:

Back 104

The relative cost of credit expressed in percentage terms

Front 105

Compensating balance is defined as:

Back 105

Leaving enough money with the bank to offset potential foreclosure costs

Front 106

An action against a licensee by the Real Estate Commissioner needs to be initiated within:

Back 106

Three years of occurence

Front 107

The cost basis for income tax purposes is calculated:

Back 107

From the loan after the down payment is made

Front 108

The four essential elements of an enforceable contract are:

Back 108

Competency, mutual consent, lawful object, consideration

Front 109

In order to transfer fee title to a parcel of real estate, whose consent must be obtained?

Back 109

All lenders who hold an interest in the property

Front 110

An intestate succession means:

Back 110

The owner of the property died with no will, transfer of title requires a probate court approval

Front 111

Most real estate law suits are heard in:

Back 111

The state superior court

Front 112

For a salesperson to be given full licensed agent authority by their broker, the salesperson needs to have:

Back 112

Accumulated two full years' experience within the last 5 years

Front 113

Why are warranty deeds rarely used in California but commonly used in other states?

Back 113

Recourse against a title company under a grant deed is more effective than collecting from a grantor under a warranty deed

Front 114

A deed only becomes valid once its been:

Back 114

Delivered

Front 115

To transfer title to a property:

Back 115

A new deed needs to be executed and delivered

Front 116

An appraiser can ethically share their report findings with:

Back 116

The client or anyone named by the client, a peer review committee or a court of law

Front 117

A deed restriction can lawfully prohibit:

Back 117

A property to be used for religious purposes

Front 118

A broker's receipt for any deposit towards marketing costs from a seller is:

Back 118

Documented and accounted to the seller

Front 119

If a broker wants to solicit for an advance fee, how many days before use must the broker submit the proposed solicitation to the California Bureau of Real Estate?

Back 119

10 days

Front 120

Which of the following will NOT terminate an agency relationship?

Back 120

Estoppel; a legal theory barring a person from later asserting or denying a condition based on a person's previous acts or statements

Front 121

If a park is built in a neighborhood, the cost to build and maintain the park would apply to the owners of the properties in that neighborhood as a:

Back 121

Special assessment

Front 122

A real estate commission is normally calculated as a percentage of the:

Back 122

Selling price

Front 123

If homes in an area represent highest and best use and are similar in architectural design, which of the following principals apply?

Back 123

Conformity

Front 124

Information about the thickness and material used for the foundation footing of a property are contained in:

Back 124

Foundation plans

Front 125

A turnkey project is:

Back 125

The construction from groundbreaking to completion; "turnkey implies that a property is complete and ready for immediate occupancy

Front 126

Return of an investor's investment is paid thru:

Back 126

Depreciation; as an income tax deduction

Front 127

Deficiency judgements can only be granted when:

Back 127

A property has been judicially foreclosed

Front 128

Once a deed has been recorded, a ____ _____ is needed to transfer the property to anyone else.

Back 128

A new deed

Front 129

A flood hazard report will note that flooding is frequent when it is described as:

Back 129

Occurring at least twice every ten years