Exam 2

Question 1 of 150

1

Two friends hold title as joint tenants. One borrowed
money and executed a deed of trust against
the property. In terms of affecting title this action could:

Select one of the following:

Destroy one of the four unities of Joint Tenants
Place the beneficiary in a precarious position should the borrower die
Invalidate the note since a lien can be attach only to the undivided
interest of all joint tenants
Create a security interest in all other real property in which the borrower
may have an interest

Explanation

Question 2 of 150

1

Joint tenant estate held by two joint tenants is severed and ended
by the following EXCEPT:

Select one of the following:

By the execution of a mortgage or deed of trust by one Joint Tenant
creating a lien against his interest.
A foreclosure by one of the joint tenants
One of the joint tenants transfers his interest to a third party
One of the joint tenants sells his interest

Explanation

Question 3 of 150

1

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

Select one of the following:

A mortgage
A trust deed
A blanket mortgage
A security mortgage

Explanation

Question 4 of 150

1

All of the following acts of one joint tenant terminates a joint tenancy except
when the joint tenant:

Select one of the following:

Sells his or her share
Transfers his or her share
Mortgages his or her share
Deeds his or her share to a co-owner

Explanation

Question 5 of 150

1

A conflict in a contract between a buyer and a seller to return
the deposit to the buyer from the trust account, the broker unable to resolve
the problem refers it to a third person the action by the broker is known as:

Select one of the following:

An interpleader action
A court action
A Judicial action
An attorney

Explanation

Question 6 of 150

1

A contingency in a contract may be created by:

Select one of the following:

Nature of the contingency
Duration of the contingency
Method how to remove the contingency
All of the above

Explanation

Question 7 of 150

1

Under the Real Estate Law if an agent is found guilty
of discrimination the Real Estate Commissioner may:

Select one of the following:

Revoke or suspend the agents license
Cancel the agents license for 150 days
Suspend the agents license for 3 months
Suspend the agents license for 1 year

Explanation

Question 8 of 150

1

Which of the following is misrepresentation:

Select one of the following:

Material to the contrary
Information known by the broker that is false
False information to bound a buyer to a contract
All of the above

Explanation

Question 9 of 150

1

Broker Hadley took a listing from Watanabe for 30 days. After the 27th day
Hadley was not successful selling the property so he decided to buy the
property himself. Broker Hadley must present to the seller:

Select one of the following:

His interest on the property
The net amount to the seller
Commission disclosure
All of the above

Explanation

Question 10 of 150

1

What is a deed:

Select one of the following:

To transfer title
To be acknowledged
The evidence in change of title or an interest
To be recorded in the county recorders office to be valid

Explanation

Question 11 of 150

1

Before his death Westland had several listings, now Westland's daughter is
taking over the business. In regards to the listings she must:

Select one of the following:

All listings are automatically cancelled and she needs to re-list the
properties from the clients
Automatically cancelled and is not necessary to re-list the listing agreements
May be cancelled only in writing and approved by the daughter
Must be cancelled within 24 hours or the listings are automatically
transferred to the daughter.

Explanation

Question 12 of 150

1

A Hispanic buyer wants to be shown property in a Hispanic neighborhood. The
real estate agent should:

Select one of the following:

Show him properties as any other client
Show him properties only in areas where he wants to look
Provide information about the ethnicity of the neighborhood
Show properties in areas where Hispanic population is greater

Explanation

Question 13 of 150

1

An example of police power is:

Select one of the following:

Zoning
Condemnation
Eminent domain
Inverse condemnation

Explanation

Question 14 of 150

1

Which of the following may be attached to the land:

Select one of the following:

Trees
Buildings
Water rights
All of the above

Explanation

Question 15 of 150

1

The agent who will earn a commission is the one that:

Select one of the following:

Signed the purchase agreement
Communicated the offer and the acceptance from seller to buyer
Communicated the offer to the seller
Accepted a deposit first

Explanation

Question 16 of 150

1

In a new developed subdivision, The Real Estate Commissioner was informed
of misrepresentations made by the developer. The commissioner may stop the
sale of the subdivision by:

Select one of the following:

Revoking the final public report
Filing an accusation
Suspending the developers contractors license
Issuing a desist and refrain order

Explanation

Question 17 of 150

1

Which of the following must be given to a buyer of a condominium unit:

Select one of the following:

Copy of the CC and R’s
Copy of the by laws
Copy of the most recent financial statement of the association
All of the above

Explanation

Question 18 of 150

1

The placement of a building on the land is known as:

Select one of the following:

Orientation
Topography
Elevation
Foundation plan

Explanation

Question 19 of 150

1

A binding contract between the buyer and seller, it must :

Select one of the following:

An offer and delivery
Contain an offer and acceptance
Acceptance from buyer
Acceptance from seller to sellers agent

Explanation

Question 20 of 150

1

CPI refers to:

Select one of the following:

Listing agreements
Purchase agreements
Manufacturing
Commercial leases

Explanation

Question 21 of 150

1

Who pays the service charge under a FHA loan:

Select one of the following:

The seller
The buyer
Both buyer and seller
The lender

Explanation

Question 22 of 150

1

When comparing FHA and Conventional Loans. Conventional Loans offer:

Select one of the following:

Higher loan to value ratios
Lower payments
Lower interest rates
Lower loan to value ratios

Explanation

Question 23 of 150

1

A commission to an agent may be in the form of:

Select one of the following:

A note
A trust deed
Cash
All of the above

Explanation

Question 24 of 150

1

A home sold for $178,000 and leased at $1200. If another home is leased at
$1,300 the value is:

Select one of the following:

$193,000
$136,000 $178,000 / $1,200 = 148.33
$200,000 148.33 X $1,300 = $192,833
$190,000

Explanation

Question 25 of 150

1

The right of an interest in real property is represented by:

Select one of the following:

Quite title action
A trust deed
A quitclaim deed
Mortgage

Explanation

Question 26 of 150

1

A brother and sister own property as Joint Tenants. The brother died and left
un-secured debts and died penniless. The title to the sister now shows.

Select one of the following:

The sister owns title as tenants in common
Free and clear of debts from the brother
The sister has a lien on the property from the debts from the brother
The sister has to pay only half of the brothers debts

Explanation

Question 27 of 150

1

Which of the following best refers to sellers market:

Select one of the following:

Causes prices to drop as demand decreases and supply increases
High prices of a product with demand and supply lags
Demand and supply of a product with a decrease of buyers
Decrease on land and construction

Explanation

Question 28 of 150

1

A real estate broker discovers that one of the agents was receiving referral fees
from a lender that they do business with. The broker fired the agent and
warned the other agents not to receive any referrals. According to the real
estate law:

Select one of the following:

Both broker and sales person may be subject for prosecution
Only the agent will be prosecuted by the Department Of Real Estate
Only the broker will be prosecuted by the Department Of Real Estate
The broker’s conduct is acceptable and he may receive any referral fees

Explanation

Question 29 of 150

1

Buyer and seller decided to cancel a transaction. The seller instructed the
broker to return the buyer’s deposit. The broker should.

Select one of the following:

Return the deposit and sue buyer for his commission
Return only half of the deposit to the buyer
Return the deposit as instructed
The agent may collect his commission in court

Explanation

Question 30 of 150

1

A person using a document to represent another acts as:

Select one of the following:

A power of attorney
A grant deed
A reconveyance deed
An attorney in fact

Explanation

Question 31 of 150

1

In regards to appraisal all of the following are true except:

Select one of the following:

The cost approach is used in new construction
The cost approach is used for special properties
The cost approach is used for commercial building
The cost approach sets the lower limits of value

Explanation

Question 32 of 150

1

Which of the following policies covers all risks:

Select one of the following:

A Homeowners insurance
A Extended policy
A Standard policy
No policy covers everything

Explanation

Question 33 of 150

1

When appraising an old residential property in regards to periodic tenancy:

Select one of the following:

Compared to rentals and comparables in the area
Is determine by square footage
According to the type of neighborhood
Is obtained from the assessors value

Explanation

Question 34 of 150

1

Bonds, deed of trust and notes held by a third party is known as:

Select one of the following:

Beneficiary
Lender
Escrow
Trustee

Explanation

Question 35 of 150

1

A contract replaced entirely by a new one is known as:

Select one of the following:

An Amendment
A Replacement
A Novation
A Renewal

Explanation

Question 36 of 150

1

Fuentes purchased Brown's house and agreed to assume the existing mortgage
Which of the following is true:

Select one of the following:

Brown is relieved from future liabilities
Brown is liable for the loan
Fuentes is not primarily responsible for the loan
Brown and Fuentes both are liable

Explanation

Question 37 of 150

1

Which of the following will determine if an item is a fixture , except:

Select one of the following:

Intention
Agreement
Cost
Relationship

Explanation

Question 38 of 150

1

Which of the following will determine if an item is a fixture except:

Select one of the following:

Intention
Agreement
Time
Relationship

Explanation

Question 39 of 150

1

A commission on the sale of a property through probate will be determine by:

Select one of the following:

The court order
The real estate commissioner
The Board of directors
The administrator

Explanation

Question 40 of 150

1

A voidable contract is:

Select one of the following:

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

Explanation

Question 41 of 150

1

When comparing real property to personal property, real property is:

Select one of the following:

Immovable by law
Movable
Personal exclusively
Transferable by a bill of sale

Explanation

Question 42 of 150

1

A standard policy of title insurance will cover against:

Select one of the following:

Property lines
Zoning
Legal incompetence of the grantor
Property survey

Explanation

Question 43 of 150

1

Which of the following is not a lien:

Select one of the following:

Taxes
Trust deed
Judgment
Restrictions

Explanation

Question 44 of 150

1

Under the Income Tax Law a sales person is:

Select one of the following:

Employee of the broker he/she is permitted to work for
Self employed contractor
Employee of the broker and the broker must pay for medical insurance
Self employed and employee of the broker

Explanation

Question 45 of 150

1

“As Is” is permitted when:

Select one of the following:

A buyer is fully informed about known defects before bound to contract
Only if buyer ask for a transfer disclosure
The property is financed through a private investor
Only if the property needs major repairs

Explanation

Question 46 of 150

1

An appraiser is least concerned with the general state of the economy in appraising

Select one of the following:

Shopping center
Electronic assembly
Medical dental building
Industrial park

Explanation

Question 47 of 150

1

The maximum amount that may be recovered from the Recovery Trust Fund
is:

Select one of the following:

$20,000
$10,000
$250,000
$50,000

Explanation

Question 48 of 150

1

A blind ad doesn’t identify the:

Select one of the following:

Broker
Salesperson
Seller
Buyer

Explanation

Question 49 of 150

1

If a property is under default, possession of the property is held by the:

Select one of the following:

Trustee
Trustor
Beneficiary
Mortgagee

Explanation

Question 50 of 150

1

The Earthquake Hazard Report must be Issued to properties in:

Select one of the following:

All California
All counties
All cities
Only to specific types of structures on a earthquake zones

Explanation

Question 51 of 150

1

The maximum value of a property do to architectural design and stability of
neighborhood:

Select one of the following:

Progression-regression
Conformity
Stability
None of the above

Explanation

Question 52 of 150

1

A contractor was installing a new hardwood floor and was unpaid, and placed a
lien on the property. The lien becomes effective on:

Select one of the following:

After the installation of the hardwood floor
Commencement of the installation of the hardwood floor
The date recorded at recorders office
3 days after the installation of the hardwood floor

Explanation

Question 53 of 150

1

A master plan shows:

Select one of the following:

Streets and freeways
Residential and commercial zoning
Safety
All of the above

Explanation

Question 54 of 150

1

The ordinary repairs on a property are known as:

Select one of the following:

Repairs
Rehabilitation
Cosmetic maintenance
Wear and tear

Explanation

Question 55 of 150

1

The Standard policy of title insurance consist of three processes. Which of the
following is not one of the three processes:

Select one of the following:

Determination of correct boundary lines and property survey
Amount of insurance required
Title investigation
Protection of title losses

Explanation

Question 56 of 150

1

When a property is being sold through an option the broker must inform to
the client that he is acting as a:

Select one of the following:

A principal
An agent
A broker
A seller

Explanation

Question 57 of 150

1

Capitalization is a process used by real estate appraiser's to:

Select one of the following:

Converts income into value
Finds the gross income of a property
Establishes the cost of capital
Depreciation value

Explanation

Question 58 of 150

1

Conditions affecting interest rates and the availability of loan funds vary over
time. When would it be advantageous for a lender to waive a prepayment
penalty clause contained in a promissory note:

Select one of the following:

When loans are available with low interest rates
In a deflationary economy
In a tight money market where there is a lack of funds available for real estate loans
When the FED lowers his reserve requirements

Explanation

Question 59 of 150

1

When a broker is representing both buyer and seller on an exchange real
estate transaction, and the broker doesn’t disclose his dual agency to the
parties, the remedy by the buyer and seller are:

Select one of the following:

No commission
Cancel the transaction
Sue for criminal and civil action
All of the above

Explanation

Question 60 of 150

1

When can an agent refuse to transmit an offer:

Select one of the following:

When the seller has accepted a back up offer
When the agent is acting as a gratuitous agent
To anyone at any time
When the agent is acting on express instructions from the principal

Explanation

Question 61 of 150

1

Which of the following is not a component when operating net income:

Select one of the following:

Personal income tax
Cash flow
Operation expenses
Ordinary income

Explanation

Question 62 of 150

1

Broker Taylor listed a property for $55,000 with instruction from the seller
that the minimum down payment was not to exceed 23%. The broker then
presented an offer with all cash and the seller rejected the offer. What should
the broker do:

Select one of the following:

The seller can turn down the offer without liability, and pay no commission because the offer did not meet the requirements in the listing.
The broker is entitle to a full commission
The broker is entitle to a commission based on the appraised value
The broker is entitle only to a 23% of the appraised value

Explanation

Question 63 of 150

1

A broker has a listing and one of his sales persons sells the listing. This is
known as:

Select one of the following:

Dual agency
Single agency
Single agency for the buyer
No agency

Explanation

Question 64 of 150

1

Deed covenants that limited the conveyance of properties to persons of the
minority group, these restrictions:

Select one of the following:

Has no effect on the conveyance, covenant is unenforceable
Enforceable if buyers prefer to have them
Valid, only buyer and seller may cancel them
May be cancelled by escrow

Explanation

Question 65 of 150

1

If the comparable properties has an item that is not present on the subject
property:

Select one of the following:

Add from the subject property to the comparables
Subtract from the comparable properties to the subject property
Add from the comparables to the subject property
Add to the basis of the subject property

Explanation

Question 66 of 150

1

A clause on a trust deed that agrees to be on a lesser position is known as:

Select one of the following:

Acceleration clause
Subordination clause
Or more clause
Agreement clause

Explanation

Question 67 of 150

1

A document to transfer property from trustee to trustor is when the
trust deed is terminated is:

Select one of the following:

A grant deed
A trust deed
A reconveyance deed
A partial reconveyance deed

Explanation

Question 68 of 150

1

When an agent is a subagent of the selling broker he is working for:

Select one of the following:

The seller
The buyer
The lender
The beneficiary

Explanation

Question 69 of 150

1

The path way of an airport is over Omedos home, and loss of value do to the
constant noise of the airport. Omedos legal proceedings against Government
Authorities to purchase his property is called:

Select one of the following:

Just compensation
Eminent Domain
Condemnation
Inverse condemnation

Explanation

Question 70 of 150

1

The city made a change in zoning that is not permitted in the construction
industry. This is an example of:

Select one of the following:

Variance
Building code
Restrictions
Zoning changes

Explanation

Question 71 of 150

1

The activity of an unlicensed person working for a real estate office, according
to the Department Of Real Estate, the unlicensed person:

Select one of the following:

The agent is self-employed
The agent is an employee of the broker
According to the Real Estate Law, it must be under a licensed supervision
The broker has no duty to supervise the agent

Explanation

Question 72 of 150

1

An appraiser when appraising a Commercial Building for $550,000 must have a:

Select one of the following:

General Appraisal License
Certify License
Commercial License
Appraisal License

Explanation

Question 73 of 150

1

According to the Department Of Real Estate, if an agent wants to advertise on the
World Wide Web.

Select one of the following:

Only provided by qualified real estate licensees
Only to real estate brokers
Anyone appointed by the broker
Anyone appointed by the real estate commissioner

Explanation

Question 74 of 150

1

If the seller presented the hazard disclosure statement to the buyer which of
the following is true:

Select one of the following:

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

Explanation

Question 75 of 150

1

Which of the following is true in regards hazard safety disclosure statement
and transfer disclosure statement:

Select one of the following:

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

Explanation

Question 76 of 150

1

Which of the following is a violation of the Federal Housing Law according to
periodic tenancy:

Select one of the following:

Requiring first month rent in advance
Acquiring co-signers for unmarried persons only
Acquiring good credit rating
Acquiring references from previous landlords

Explanation

Question 77 of 150

1

Which of the following reports is the most complete:

Select one of the following:

Narrative report
Form report
Letter report
Neighborhood data

Explanation

Question 78 of 150

1

Deed restrictions may be created by:

Select one of the following:

By a deed or written agreement
Zoning
By a deed or written agreement and zoning
Only by a deed

Explanation

Question 79 of 150

1

A tenant may be justified in abandoning a leased property if the landlord has
constructively evicted the tenant. Which of the following acts would be an
example of constructive eviction:

Select one of the following:

The landlord has shown the property to a new prospective tenant and has
entered into lease negotiations with the new tenant.
The landlord has failed to make necessary repairs to the premises
The landlord has made extensive and unwarranted alterations to the premises,
making it no longer usable for its original purpose
All of the above

Explanation

Question 80 of 150

1

Nominal rate or normal rate means

Select one of the following:

The rate stated in the note
The rate named in the good faith estimate
The rate printed in the purchase agreement
The rate set by escrow instructions

Explanation

Question 81 of 150

1

Who can order the pest control report:
if sold through the owner:

Select one of the following:

Escrow
The lender
The seller
All of the above

Explanation

Question 82 of 150

1

Roger sold his home, he paid $140 for escrow services, 6% commission, the seller
received $13,583. The sales price is:

Select one of the following:

$12,770
$14,440 $13,583 + $140 = $13,723
$14,540 $13,723 / .94 = $14,598
$14,600

Explanation

Question 83 of 150

1

An agency relationship is represented by:

Select one of the following:

Oral agreement
Written agreement
Assignment
Commission agreement

Explanation

Question 84 of 150

1

A Dual Agency is permitted when:

Select one of the following:

Buyer and Seller agreed to it
Buyer agrees to it
Seller agrees to it
By lenders approval

Explanation

Question 85 of 150

1

A written contract between the broker and salesperson has to be in writing
according to:

Select one of the following:

The National Association of Realtors
The rules and regulations of the Real Estate Commissioner
Only if necessary
The multiple listing service

Explanation

Question 86 of 150

1

Riparian rights refers to owners that borders:

Select one of the following:

River/streams
Bays and seas
Subterranean cavities
All of the above

Explanation

Question 87 of 150

1

A pest control company, according to the Real Estate Rules and regulations
must provide a copy to:

Select one of the following:

The owner
The seller
The escrow company
The lender

Explanation

Question 88 of 150

1

Once a binding contract has been created between buyer and seller the buyer
will receive:

Select one of the following:

Equitable title
Legal title
Certify title
Pending title

Explanation

Question 89 of 150

1

The date in the purchase contract or deposit receipt is the date in that:

Select one of the following:

The buyer signed
The contract was prepared
The agent received the deposit
Final acceptance was communicated back to the offeror

Explanation

Question 90 of 150

1

The construction industry is regulated by:

Select one of the following:

State housing law
Local building codes
Contractors license law
All of the above

Explanation

Question 91 of 150

1

If a lender decides to take a deed in lieu of foreclosure the lender:

Select one of the following:

Must receive an approval of sale from the trustor
Must get a deficiency judgment in court
Will own the property free and clear
Assumes any junior liens

Explanation

Question 92 of 150

1

The Market Data Approach is:

Select one of the following:

Based on the assessed value
Inferred from comparable properties
Based on the cost of material to build the same property
Based on the annual net income

Explanation

Question 93 of 150

1

A listing must contain all of the following except

Select one of the following:

Compensation
Lawful object
Unspecified consideration
Being notarized by a notary

Explanation

Question 94 of 150

1

Under the Truth and Lending Law disclosure is presented by the:

Select one of the following:

Lender
Beneficiary
Borrower
Seller

Explanation

Question 95 of 150

1

The Federal Fair Housing Law declares:

Select one of the following:

Eliminating prejudice throughout the United States.
Building houses for minority groups throughout the United States.
Guaranteeing separate but equal housing in all of the States.
Providing Fair Housing for persons throughout the United States.

Explanation

Question 96 of 150

1

Buyer and seller entered in a contract and the buyer asked the broker to move
into the property before closing escrow the broker must:

Select one of the following:

Obtain an interim-occupancy agreement
Give the buyer a temporary lease
The agent may give the buyer oral permission
Obtain written consent from the escrow company

Explanation

Question 97 of 150

1

Davis sold his friends home in Yolo County. Davis has no license and received
a commission. Who will prosecute Davis:

Select one of the following:

The District attorney
The real estate commission
The attorney general
The board of supervisors

Explanation

Question 98 of 150

1

John entered into a Right to Sell Listing with Broker Otis. John gave Otis $100
to advertise the property. The payment of the $100 to Otis Must:

Select one of the following:

Must be deposited in the trust account and used for the purpose intended
Be applied towards his commission
Be deposited in the trust account if it is less than $200
None of the above

Explanation

Question 99 of 150

1

A broker must have the following in writing any employment agreement with which of the following:

Select one of the following:

Secretaries
Janitorial employees
Real estate staff
All of the above

Explanation

Question 100 of 150

1

Property may be substituted by:

Select one of the following:

Design
Earnings
Use
Any of the above

Explanation

Question 101 of 150

1

A Exclusive Agency Listing may be for a period of:

Select one of the following:

180 days
60 days
6 months
Any time agreed between the agent and seller

Explanation

Question 102 of 150

1

An easement attached to the land is known as:

Select one of the following:

Gross easement
Prescriptive easement
Appurtenant easement
Ingross easement

Explanation

Question 103 of 150

1

Cost approach is used in:

Select one of the following:

New buildings
Old construction
Land
None of the above

Explanation

Question 104 of 150

1

All of the following are necessary for a valid contract except:

Select one of the following:

Meeting of the minds
Lawful object
Consideration
Payment of money or performance

Explanation

Question 105 of 150

1

An appraiser will deduct the vacancy factor of an apartment to arrive at:

Select one of the following:

Effective gross income
Net income
Gross income
Appreciation

Explanation

Question 106 of 150

1

An agent is authorized to accept a deposit on behalf of the seller, this clause is
found in which of the following contracts:

Select one of the following:

Listing agreement
Purchase agreement
Escrow instructions
Loan documents

Explanation

Question 107 of 150

1

A lessee may abandon the property by all of the following except:

Select one of the following:

When property becomes dilapidated due to tenants negligence
Condemnation by Eminent domain
Failure of the landlord to make repairs
Eviction notice

Explanation

Question 108 of 150

1

Broker Marshall sold to Sanders a property “as is”. Marshall and seller knew
about problems with the plumbing. Sanders, after close of escrow discovered
the problems with the plumbing. If Sanders wants to seek legal proceedings he
will be:

Select one of the following:

Successful because the duty to disclose material fact cannot be avoided by AS IS
Not successful because the property was sold as is
The buyer’s responsibility is to hire a professional home inspector
As Is provision the buyer must accept the property on its present condition

Explanation

Question 109 of 150

1

The authority that prohibits an agent from doing an act of fraud is found in:

Select one of the following:

Business and Professions Code
Listing agreement
Real estate office conduct
Real estate purchase contract

Explanation

Question 110 of 150

1

The legal process to evict a defaulting tenant is called:

Select one of the following:

3 day notice
Unlawful detainer action
30 day notice
Surrender

Explanation

Question 111 of 150

1

Eminent Domain may be exercised by:

Select one of the following:

Cities
Public Utilities
Public Education
Any of the above

Explanation

Question 112 of 150

1

What state agency would a consumer contact in order to obtain a written
report disclosing the presence of wood destroying organisms:

Select one of the following:

Department of Real Estate
Department of Corporations
Department of Housing and Development
Structural Pest Control Board

Explanation

Question 113 of 150

1

A board foot is:

Select one of the following:

Six inches by twelve inches by three inches
Six inches by six inches by six inches
Twelve inches by six inches by four inches
Six inches by twelve inches by two inches

Explanation

Question 114 of 150

1

In order for a broker to be able legally to claim a commission on an Exclusive
Right to Sell Listing, which of the following termination dates would be
appropriate:

Select one of the following:

Until either principal or agent gives proper notice of rescission.
120 days after completion of the improvements.
For 180 days from the date the listing agreement is signed by the contracting parties.
For 90 days after a conditional commitment is issued by the FHA.

Explanation

Question 115 of 150

1

Amezcua was asked to disclose her ethnicity in the loan application:

Select one of the following:

Sue the real estate broker
Refuse to disclose the portion of the loan application
Must fill in the entire application including the ethnicity disclosure box
Do nothing

Explanation

Question 116 of 150

1

If the buyer and seller agree to prorate property taxes as of the date of the
close of escrow, and the escrow closes May 1, and the current annual tax bill of
$1,380 has been paid, the escrow agent would appropriately debit the buyer
for:

Select one of the following:

$130
$230 $1380 / 12 = = $115
$115 115 X 2 = $230
$680

Explanation

Question 117 of 150

1

When a home is financed under the State of California Veterans Farm and
Home Purchase Plan, which of the following documents is used:

Select one of the following:

A real property purchase contract
Listing agreement
A grant deed
A mortgage

Explanation

Question 118 of 150

1

Which of the following is a fiduciary relationship:

Select one of the following:

Buyer to seller
Landlord to tenant
Sellers to appraisal
Agent to principle

Explanation

Question 119 of 150

1

The Earthquake Booklet was not necessary if property was built before:

Select one of the following:

1957
1960
1975
1978

Explanation

Question 120 of 150

1

Under which of the following listings can the seller refuse to pay a commission
even if the agent is the procuring cause:

Select one of the following:

Open listing
Exclusive right to sell listing
Exclusive agency listing
Net listing

Explanation

Question 121 of 150

1

Functional Utility is:

Select one of the following:

Marketability
Location
Layout
Desire

Explanation

Question 122 of 150

1

costing $190,000 in a $100,000 home neighborhood. This is an example of:

Select one of the following:

Progression
Social obsolescence
Functional obsolescence
Economic Obsolescence

Explanation

Question 123 of 150

1

Which of the following is not a valid reason for the seller to terminate an
Exclusive Listing:

Select one of the following:

The broker’s license was revoked
The seller declared bankruptcy
One of the seller's relatives gets a real estate license and the seller wants
her to have the listing.
The broker was declared mentally incompetent after signing the listing

Explanation

Question 124 of 150

1

Hanson wants to buy a property and talks to Broker Cohen about that
particular property that he wants to buy. Broker Cohen contacts the property
owner and tells him that Hanson wants to buy his property. The seller tells the
broker that the property is not for sale. Three months later Cohen found out
that the seller entered into a purchasing contract with Hanson. Under these
circumstances Broker Cohen is entitle to:

Select one of the following:

Sue for his commission
Sue for his time and labor
Get paid a finders fee
Entitled to nothing

Explanation

Question 125 of 150

1

In applying the principles of the Easton vs. Strassburger Case, Real Estate
Licensees are obligated to give prospective buyers of certain real estate:

Select one of the following:

A list of obvious defects and functional obsolescence.
A list of known defects and those that should be known.
A strong recommendation that the buyer obtain a home inspection.
A disclosure forcing the buyer to take the property “as is”.

Explanation

Question 126 of 150

1

Mr. Arturian granted a property to Macy with a condition not to drink alcohol
beverages. Macy’s ownership is now describe as:

Select one of the following:

Fee simple
Conditional
Agreement
Fee simple defeasible

Explanation

Question 127 of 150

1

The maximum fine that may be imposed by the Real Estate Commissioner
against a broker who pays an unlicensed person for soliciting borrowers or
negotiating real estate loans is:

Select one of the following:

$1,000
$5,000
$10,000
$50,000

Explanation

Question 128 of 150

1

In the event a person is discriminated against in violation of Title VIII of the
Civil Rights Acts of 1968, that person may seek relief by:

Select one of the following:

Filing a Civil Action in a State Court.
Filing a Complaint with the Secretary of HUD.
Filing a Civil Action in a Federal Court.
Any of the above.

Explanation

Question 129 of 150

1

The police power to divide the land into districts is accomplished by:

Select one of the following:

Eminent domain
Condemnation
Zoning
Down zoning

Explanation

Question 130 of 150

1

Which kind of relationship does the salesperson not have:

Select one of the following:

Attorney-in-fact
Broker-client
Fiduciary
Attorney-client

Explanation

Question 131 of 150

1

Which of the following is a commercial acre:

Select one of the following:

Any parcel of 43,560 square feet.
An acre located outside of an R zoning.
An acre after deductions for streets, sidewalks, curbs and alleys.
An acre zoned for commercial purposes.

Explanation

Question 132 of 150

1

The purpose of the assessment roll, as compiled by the assessor’s office is:

Select one of the following:

Determination of the actual tax to be paid by the property owner.
The equalization of the assessments among the various properties.
The setting of the tax rates.
The establishment of the tax base.

Explanation

Question 133 of 150

1

Buyer makes offer to buy a home including all the appliances. Seller is willing
to accept offer, but will not include all of the appliances. Agent crossed out buyer’s
requirement for all appliances without the knowledge or consent of the buyer.
Seller then accepted the “modified offer.” Agent’s action was:

Select one of the following:

Unethical, but not illegal
Legal, if seller was aware of agent’s actions
Common practice by most real estate agents
Illegal

Explanation

Question 134 of 150

1

An estate at sufferance is:

Select one of the following:

The lessee keeps possession of a lease after expiration of the lease term
Possession of a lease after expiration of the lease term sellers approval
Possession of a lease during the lease
Eviction of a lease for non-payment of rent

Explanation

Question 135 of 150

1

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

Select one of the following:

Valid
Voidable by the lessor
Voidable by the lessee
Void

Explanation

Question 136 of 150

1

Jackson leased his home to Sullivan with a verbal agreement to sell the
property to Sullivan. Jackson knows that Sullivan has been making significant
improvements to the property in reliance on the verbal agreement.
Jackson now declines to sell the property to Sullivan. Which of the following
best describes the rights of the parties:

Select one of the following:

Jackson must sell because he made an agreement
Sullivan has no right to enforce the verbal agreement
Jackson must sell because the doctrine of estoppel will apply in this case
Jackson does not have to sell because of the Statute of Frauds

Explanation

Question 137 of 150

1

Banks loan 80% of appraised value. If the Interest rate is 11%, and the first
year interest was $7,040 , what was the appraised value.

Select one of the following:

$64,000
$76,000
$80,000 $7,040/11% = $64,000 LOAN AMOUNT
$85,000 $64,000/80% = $80,000 APPRAISAL VALUE

Explanation

Question 138 of 150

1

The SW ¼ of the NW ¼ of Sec. 5 is valued at $800 per acre. The S ½ of the NE
¼ of Sec. 8 is valued at $500 per acre, what is the difference in value between the
two parcels:

Select one of the following:

$6,000 A section is 640 acres. 1/4 of a section is 160 acres.
$8,000 1/4 OF 1/4 section is 40 acres. 40 acres times $800 = $32,000
$10,000 A section is 640 acres. 1/4 of a section is 160 acres.
$12,000 1/2 OF 1/4 section is 80 acres. 80 acres times $500 = $40,000
$40,000 minus $32,000= $8,000

Explanation

Question 139 of 150

1

The original amount of a straight note of that calls for interest payments of $60
per month based on a rate of 8% per annum is:

Select one of the following:

$4,000
$7,500 $60x12 = $720 PER YEAR
$9,000 $720/8% = $9,000
$12,000

Explanation

Question 140 of 150

1

Wong bought a vacant lot for $17,424, wants to sell the lot and make a 40%
profit after paying a 10% commission. What must he sell lot for:

Select one of the following:

$24,393
$27,104
$28,395 $17,424 X 1.40 = $24,393
$31,402 $24,393 / 0.90 = $27,104

Explanation

Question 141 of 150

1

An investor purchased a trust deed and note at a 20% discount. This was a one
year fully amortized note with a face amount of $4,500 with payments of
$393 per month including 9% interest. If she holds the note for the full year,
the yield on her original investment would be.

Select one of the following:

29% 4500 X 20% = $900
31% $393 X 12 = $4,716
24% 4716 - $4,500 = 216
36% $900 + $216 = $1,116
$1,116 / $3,600 = 31%

Explanation

Question 142 of 150

1

On August 5th a borrower gave Broker Gutierrez a personal check for $1,000.
made payable to the seller. The buyer instructed Broker Gutierrez that the
check should be held uncashed until August 30th. Broker Gutierrez must:

Select one of the following:

Not accept the deposit
Return the deposit to the buyer
Accept the deposit and instruct the seller that the check has to be
held until August 30th.
Not accept personal checks

Explanation

Question 143 of 150

1

Which of the following factors would tend to make real estate values unstable
in a residential neighborhood:

Select one of the following:

An increasing number of average priced homes are being constructed
in a neighborhood with a number of high priced homes.
Local zoning restrictions, that would limit or prohibit the construction of
multiple family units.
The residents of a neighborhood are of the same ethnic
background and religious beliefs.
The subdivider demanding each borrower to purchase lots with a
minimum number of square feet and value.

Explanation

Question 144 of 150

1

Misuse of the term “Realtor” is:

Select one of the following:

A violation of the California Real Estate Law.
A felony offense.
Unethical but not illegal.
Only unethical in California.

Explanation

Question 145 of 150

1

When the Real Estate Commissioner wishes to proceed against a licensee for a
suspected violation for the Real Estate Law the Commissioner
must first serve the real estate licensee with:

Select one of the following:

A complaint.
A demurrer.
A statement of issues.
An accusation.

Explanation

Question 146 of 150

1

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

Select one of the following:

1952
1967
1978
1989

Explanation

Question 147 of 150

1

When applying the capitalization of net income approach to establish the value
of an income property, which of the following would not be included as an
expense:

Select one of the following:

Cost of capital
Utilities
Property management
Reserves for replacement of improvements.

Explanation

Question 148 of 150

1

Which of the following is not one of the survey systems in California:

Select one of the following:

San Bernardino
Willamette
Humboldt
Mt. Diablo

Explanation

Question 149 of 150

1

John owns a lot that measures 150 feet deep by 50 feet wide. The zoning laws
require a 20 foot front setback and 4 foot setback on both sides and at the back.
The available area is:

Select one of the following:

5,292 square feet 150 - 24 = 126
5,560 square feet 50 - 8 = 42
6,556 square feet 126 X 42 = 5,292 sq. ft.
6,800 square 42X126= 5,292

Explanation

Question 150 of 150

1

The broker has an oral listing to sell real property. The broker presented
an offer which the seller accepted. The seller then requested the broker
to give him the buyer’s deposit check.

Select one of the following:

The broker must give the check to the seller
The broker must deposit the check in escrow
The broker must deposit the check in the trust account
Return the deposit to the buyer

	Created by Ambir Dudley over 8 years ago

1 Real Estate Quiz on Exam 2, created by Ambir Dudley on 11/10/2015.

Question 1 of 150

Two friends hold title as joint tenants. One borrowed money and executed a deed of trust against the property. In terms of affecting title this action could:

Select one of the following:

Explanation

Question 2 of 150

Joint tenant estate held by two joint tenants is severed and ended by the following EXCEPT:

Select one of the following:

Explanation

Question 3 of 150

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

Select one of the following:

Explanation

Question 4 of 150

All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant:

Select one of the following:

Explanation

Question 5 of 150

A conflict in a contract between a buyer and a seller to return the deposit to the buyer from the trust account, the broker unable to resolve the problem refers it to a third person the action by the broker is known as:

Select one of the following:

Explanation

Question 6 of 150

A contingency in a contract may be created by:

Select one of the following:

Explanation

Question 7 of 150

Under the Real Estate Law if an agent is found guilty of discrimination the Real Estate Commissioner may:

Select one of the following:

Explanation

Question 8 of 150

Which of the following is misrepresentation:

Select one of the following:

Explanation

Question 9 of 150

Broker Hadley took a listing from Watanabe for 30 days. After the 27th day Hadley was not successful selling the property so he decided to buy the property himself. Broker Hadley must present to the seller:

Select one of the following:

Explanation

Question 10 of 150

What is a deed:

Select one of the following:

Explanation

Question 11 of 150

Before his death Westland had several listings, now Westland's daughter is taking over the business. In regards to the listings she must:

Select one of the following:

Explanation

Question 12 of 150

A Hispanic buyer wants to be shown property in a Hispanic neighborhood. The real estate agent should:

Select one of the following:

Explanation

Question 13 of 150

An example of police power is:

Select one of the following:

Explanation

Question 14 of 150

Which of the following may be attached to the land:

Select one of the following:

Explanation

Question 15 of 150

The agent who will earn a commission is the one that:

Select one of the following:

Explanation

Question 16 of 150

In a new developed subdivision, The Real Estate Commissioner was informed of misrepresentations made by the developer. The commissioner may stop the sale of the subdivision by:

Select one of the following:

Explanation

Question 17 of 150

Which of the following must be given to a buyer of a condominium unit:

Select one of the following:

Explanation

Question 18 of 150

The placement of a building on the land is known as:

Select one of the following:

Explanation

Question 19 of 150

A binding contract between the buyer and seller, it must :

Select one of the following:

Explanation

Question 20 of 150

CPI refers to:

Two friends hold title as joint tenants. One borrowed
money and executed a deed of trust against
the property. In terms of affecting title this action could:

Joint tenant estate held by two joint tenants is severed and ended
by the following EXCEPT:

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

All of the following acts of one joint tenant terminates a joint tenancy except
when the joint tenant:

A conflict in a contract between a buyer and a seller to return
the deposit to the buyer from the trust account, the broker unable to resolve
the problem refers it to a third person the action by the broker is known as:

Under the Real Estate Law if an agent is found guilty
of discrimination the Real Estate Commissioner may:

Broker Hadley took a listing from Watanabe for 30 days. After the 27th day
Hadley was not successful selling the property so he decided to buy the
property himself. Broker Hadley must present to the seller:

Before his death Westland had several listings, now Westland's daughter is
taking over the business. In regards to the listings she must:

A Hispanic buyer wants to be shown property in a Hispanic neighborhood. The
real estate agent should:

In a new developed subdivision, The Real Estate Commissioner was informed
of misrepresentations made by the developer. The commissioner may stop the
sale of the subdivision by:

A home sold for $178,000 and leased at $1200. If another home is leased at
$1,300 the value is:

A brother and sister own property as Joint Tenants. The brother died and left
un-secured debts and died penniless. The title to the sister now shows.

A real estate broker discovers that one of the agents was receiving referral fees
from a lender that they do business with. The broker fired the agent and
warned the other agents not to receive any referrals. According to the real
estate law:

Buyer and seller decided to cancel a transaction. The seller instructed the
broker to return the buyer’s deposit. The broker should.

Fuentes purchased Brown's house and agreed to assume the existing mortgage
Which of the following is true: