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Mid Term FIN 365 Quiz on Midterm 1, created by nvelazco on 04/03/2016.

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Midterm 1

Question 1 of 100

1

Which of the following sources would be the least satisfactory for obtaining a legal description of a parcel of real property?

Select one of the following:

  • Deeds

  • Preliminary title reports

  • Escrow instructions

  • Real property tax bills

  • A real property tax bill usually identifies the property by the tax assessor's parcel number. While the bill may also include a legal description of the property, that's often an abbreviated description instead of the complete legal description.

Explanation

Question 2 of 100

1

The land description method that makes reference to sections, townships, and ranges is the

Select one of the following:

  • government survey method

  • recorded map method

  • metes and bounds method

  • Torrens system

Explanation

Question 3 of 100

1

A ranch is 36 miles square. What is the number of townships contained in the ranch?

Select one of the following:

  • 1

  • 6

  • 36

  • 1296

Explanation

Question 4 of 100

1

Which of the following is not considered to be appurtenant to land?

Select one of the following:

  • Watercourses

  • Fences

  • Dwellings

  • Trade fixtures

Explanation

Question 5 of 100

1

When a title company issues an ALTA policy, it will extend the risk beyond that which is covered by a standard policy, to include all of the following, except:

Select one of the following:

  • the rights of parties in possession

  • unrecorded easements

  • the effect of zoning regulations

  • unrecorded mechanic's liens

Explanation

Question 6 of 100

1

The right to use and enjoy another person's property that falls short of an estate is a/an:

Select one of the following:

  • easement

  • leasehold

  • deed

  • devise

Explanation

Question 7 of 100

1

A seller accepted a proper offer in writing to purchase his property. He then refused to complete the transaction. If the buyer were to bring suit for failure to perform the contract, under the statute of limitations he would need to do so within:

Select one of the following:

  • 1 year

  • 2 years

  • 3 years

  • 4 years

Explanation

Question 8 of 100

1

A city passes a bond issue to improve streets in a particular neighborhood. The properties in that area will be burdened:

Select one of the following:

  • according to the value of the property

  • according to the size of the lot

  • in proportion to the benefits that the land will receive

  • identically

Explanation

Question 9 of 100

1

Al willed his property to his three children (Barry, Chris, and Dara) as joint tenants. Barry then died, leaving behind a will stating that his share of the property would pass to his daughter Mary. Dara then sold her portion of the property to her friend Vera. At this point, how is the property owned?

Select one of the following:

  • Mary and Chris own it as joint tenants

  • Vera and Chris own it as tenants in common

  • Mary, Vera, and Chris own it as tenants in common

  • Mary and Chris own their shares as joint tenants, while Vera owns her share as a tenant in common

Explanation

Question 10 of 100

1

A person was judicially declared incompetent and then was willed a parcel of real property by his brother. Can he take title to this property?

Select one of the following:

  • He can accept title only if it is placed with a trustee

  • He can accept title to real property that passes to him by will

  • He cannot accept title because he is incompetent

  • He can accept title to personal property but not real property

Explanation

Question 11 of 100

1

Which of the following statements concerning estates is correct?

Select one of the following:

  • A life estate is a leasehold estate

  • An estate may be held with another estate in the same property

  • Title to an estate must pass using a grant deed

  • An estate always gives the right of immediate possession

Explanation

Question 12 of 100

1

How many acres are in a property that is described as the "S 1/2 of the NW 1/4 of the NE 1/4 of the NE 1/4 of Section 23"?

Select one of the following:

  • 5

  • 10

  • 20

  • 40

Explanation

Question 13 of 100

1

A buyer consented to purchase a property, but his consent was induced by fraudulent statements made by the seller's broker. The buyer's purchase agreement would be:
A. valid

Select one of the following:

  • valid

  • voidable

  • void

  • illegal

Explanation

Question 14 of 100

1

A reversionary interest would be held by a:

Select one of the following:

  • state government under the right of eminent domain

  • mortgagee in the event of default by the borrower

  • lessor under the terms of a lease

  • person who gained title through adverse possession

Explanation

Question 15 of 100

1

A minor who owns property asks a broker to assist in the sale of the property. The broker may not accept a listing from the minor because:

Select one of the following:

  • a minor is incapable of appointing an agent

  • the minor may be able to disaffirm a real estate contract later

  • a broker is incapable of a fiduciary relationship with a minor

  • it is illegal for a minor to enter into any sort of contract

Explanation

Question 16 of 100

1

Which of the following is not a consideration in determining whether or not an item is a fixture?

Select one of the following:

  • Relationship between parties

  • Intention of annexor

  • Manner of annexation

  • Time of annexation

Explanation

Question 17 of 100

1

If the owner of a large parcel of property plans to subdivide it, what is the minimum number of parcels that would make the project subject to the Subdivided Lands Law?

Select one of the following:

  • 2

  • 3

  • 4

  • 5

Explanation

Question 18 of 100

1

A lessee has all of the following, except:

Select one of the following:

  • a less-than-freehold estate

  • a leasehold estate

  • a chattel real

  • a freehold estate

Explanation

Question 19 of 100

1

What document would be used to convey possessory rights without conveying ownership rights?

Select one of the following:

  • License

  • Mortgage

  • Patent

  • Sublease

Explanation

Question 20 of 100

1

A broker misrepresented his principal's property when showing it to a buyer. The actions of the broker may subject his principal to:

Select one of the following:

  • rescission of the sale by the buyer

  • court action for damages resulting from fraud

  • civil liability for the broker's misrepresentations

  • All of the above

Explanation

Question 21 of 100

1

A salesperson working for a listing broker:

Select one of the following:

  • owes fiduciary duties to the seller

  • owes fiduciary duties to the buyer

  • is limited by the terms of the power of attorney

  • is not limited by the broker's scope of authority

Explanation

Question 22 of 100

1

A neighborhood that was originally zoned to allow multiple-unit dwellings was rezoned to allow only single-family dwellings. What effect would this have on an already existing apartment building in the neighborhood?

Select one of the following:

  • It would be in violation of the zoning laws

  • It would have to be demolished immediately

  • It would need to be issued a variance

  • It could probably continue as a nonconforming use

Explanation

Question 23 of 100

1

A corporation may not hold title to a property as a joint tenant because:

Select one of the following:

  • no corporation may hold title to real property

  • it is prohibited by Securities and Exchange Commission regulations

  • only a husband and wife may hold property in joint tenancy

  • a corporation has a potentially perpetual existence

Explanation

Question 24 of 100

1

Which of the following persons would be responsible to her employer for results only?

Select one of the following:

  • Employee

  • Independent contractor

  • Principal

  • Stockholder

Explanation

Question 25 of 100

1

Adam leased a property from Casey for a five-year term. Casey died, at which point Adam found out that Casey had only a life estate in the property, with Casey's life as the measuring life. The lease is:

Select one of the following:

  • valid for the remaining five years

  • valid until invalidated by the executor of Casey's estate

  • valid only during the life of Casey

  • invalid since it is fraudulent and illegal to lease a life estate

Explanation

Question 26 of 100

1

Cities and counties regulate land use by limiting building size, lot size, and setbacks through:

Select one of the following:

  • the Subdivided Lands Law

  • zoning restrictions

  • covenants, conditions, and restrictions

  • community redevelopment agreements

Explanation

Question 27 of 100

1

Chen gave his son a power of attorney to sell his house. Which of the following statements is false?

Select one of the following:

  • The power of attorney must describe the property that will be conveyed

  • Chen's son may legally deed the property to himself

  • The attorney in fact may sign the name of his principal

  • The attorney in fact may encumber the property with a deed of trust where another person is the beneficiary

Explanation

Question 28 of 100

1

Which of the following is a type of lien?

Select one of the following:

  • An easement

  • An attachment

  • A restriction

  • All of the above

Explanation

Question 29 of 100

1

A builder submitted plans that included several minor deviations from the building standards required by local building codes. If the local building department decided this inconsistency did not constitute a health or safety hazard and permitted construction to continue, it would be known as a/an:

Select one of the following:

  • exception

  • variance

  • infraction

  • permit

Explanation

Question 30 of 100

1

Ownership rights to a property are determined through which of the following legal actions?

Select one of the following:

  • Quiet title

  • Interdiction

  • Declaratory relief

  • Injunction

Explanation

Question 31 of 100

1

Of the following, which is a means by which a person might gain title to real property?

Select one of the following:

  • Riparian rights

  • Accession

  • Appurtenance

  • Mortgage

Explanation

Question 32 of 100

1

Delia died leaving no known heirs. In her will, she left her real property to her friend Ed. However, at the time of Delia's death, Flora was in possession of the property under the terms of a one-year lease. The probate court then found that Delia's will had not been properly witnessed and was invalid. What happens to Delia's real property?

Select one of the following:

  • It passes to Ed, since that was clearly Delia's intent

  • It passes to Flora, since she is in possession

  • It is immediately sold at a court auction

  • It passes according to statutory provisions, overseen by a court of proper jurisdiction

Explanation

Question 33 of 100

1

Proper acknowledgment of a deed may be taken by a notary public who is:

Select one of the following:

  • the grantee of the deed

  • a mortgagee in a mortgage being acknowledged

  • the grantor of the deed

  • an employee of the corporation that is the grantor, if he has no personal interest in the property

Explanation

Question 34 of 100

1

When a document concerning title to real property is recorded, it gives all of the following except:

Select one of the following:

  • constructive notice of the contents of the document

  • constructive notice of the rights and interests conveyed in the document

  • actual notice of the conveyance of title

  • None of the above

Explanation

Question 35 of 100

1

Tim has been judicially declared incompetent. His best friend then deeds him a parcel of real property. The deed is:

Select one of the following:

  • invalid, as an incompetent grantee cannot take title to real property

  • invalid, since the title must pass to Tim's guardian or conservator

  • valid, since a grantee does not have to be legally competent to receive title

  • valid only if placed in trust until such time that Tim is declared competent

Explanation

Question 36 of 100

1

Which would a court disregard in deciding whether an item of personal property has become real property?

Select one of the following:

  • Agreement between the parties

  • Permanence of annexation

  • Cost of the item

  • Relationship of the parties

Explanation

Question 37 of 100

1

Which of the following is not a necessary element in the formation of a contract?

Select one of the following:

  • Offer

  • Acceptance

  • Performance

  • Consideration

Explanation

Question 38 of 100

1

A lis pendens action is effective:

Select one of the following:

  • during the time that an action is pending

  • until the action is dismissed

  • until a final judgment is rendered

  • All of the above

Explanation

Question 39 of 100

1

Most real estate syndicates in California are organized as:

Select one of the following:

  • corporations

  • general partnerships

  • limited partnerships

  • real estate investment trusts

Explanation

Question 40 of 100

1

A tenant wants to sublease or assign a leased property. If the lease is silent on this issue, then the:

Select one of the following:

  • property cannot be sublet or assigned

  • property cannot be sublet or assigned without the landlord's permission

  • tenant may go ahead and sublease or assign the property

  • tenant may sublease the property but may not assign it

Explanation

Question 41 of 100

1

Which of the following statements regarding options is correct?

Select one of the following:

  • If a lease containing an option to purchase is assigned, the option right will pass along with the lease

  • An option creates a fiduciary relationship between optionor and optionee much like the relationship between agent and principal

  • An optionor may give another option to a second optionee before the first option period expires

  • An option is the same thing as a right of first refusal

Explanation

Question 42 of 100

1

A broker took a listing that did not expressly authorize him to accept a deposit. When the broker found a prospective buyer, the buyer gave him a personal check as the deposit on the property. With regard to the deposit, the broker would be:

Select one of the following:

  • agent to the buyer

  • agent to the seller

  • a dual agent

  • agent to the escrow company

Explanation

Question 43 of 100

1

Jaime sold his landlocked property, which had an easement appurtenant for access to the road. The deed he gave the buyer gave an adequate legal description of the property but did not mention the easement. The buyer:

Select one of the following:

  • has a cloud on the title

  • takes title without the easement but receives a new easement by necessity

  • loses the easement to the servient tenement

  • has the same right to the easement that Jaime did

Explanation

Question 44 of 100

1

Which of the following easements runs with the land and is binding on all subsequent owners?

Select one of the following:

  • Easement appurtenant

  • Easement in gross

  • Prescriptive easement

  • Easement by implication

Explanation

Question 45 of 100

1

Which of the following would be important in the process of filing a mechanic's lien?

Select one of the following:

  • Notice of nonresponsibility

  • Notice of completion

  • Notice of cessation of labor

  • All of the above

Explanation

Question 46 of 100

1

A broker takes a listing. The seller accepts an offer from a buyer who's being represented by a salesperson who works for the listing broker. The broker is now classified as a:

Select one of the following:

  • buyer's agent

  • general agent

  • dual agent

  • subagent

Explanation

Question 47 of 100

1

A prospective buyer submitted an offer to Broker Randolph that met the asking price. As Randolph was on his way out of the office to present the offer to the seller, one of Randolph's salespersons brought in another offer on the same property that was $5,000 less. Randolph should:

Select one of the following:

  • inform the salesperson that the property already has sold on the seller's terms and conditions

  • present the offers in the order they were received

  • present the two offers at the same time

  • present the second offer only if the first offer is turned down

Explanation

Question 48 of 100

1

When industrial space is rented, the landlord customarily promises that:

Select one of the following:

  • the property is up to current code at the time of the lease

  • the property was constructed according to code when it was built

  • the property shall be in habitable condition

  • the property shall be never be subject to condemnation

Explanation

Question 49 of 100

1

The Alquist-Priolo Special Studies Zone Act requires a subdivider to disclose to potential purchasers:

Select one of the following:

  • underground storage tanks

  • location in a flood plain

  • water quality reports

  • earthquake fault lines

Explanation

Question 50 of 100

1

Basic responsibility for zoning decisions lies with the:

Select one of the following:

  • planning commission

  • city engineer's office

  • county assessor

  • board of equalization

Explanation

Question 51 of 100

1

A vacant lot sold for $50,000, with the buyer assuming an existing $30,000 loan as part of this selling price. The documentary transfer tax rate is 55 cents per $500. How much would the documentary transfer tax on this transaction be?

Select one of the following:

  • $88

  • $22

  • $33

  • $55

Explanation

Question 52 of 100

1

Which of the following is not a way through which an individual can acquire an interest in real property?

Select one of the following:

  • Patent

  • Escheat

  • Prescription

  • Accession

Explanation

Question 53 of 100

1

A grant deed is executed if it has been:

Select one of the following:

  • signed by the grantor

  • acknowledged

  • delivered to the grantee

  • recorded

Explanation

Question 54 of 100

1

Which of the following statements regarding the power of eminent domain is true?

Select one of the following:

  • The proposed use must be practical and just compensation must be paid

  • The proposed use must be a public use and just compensation must be paid

  • The proposed use must be practical and a public use

  • The government must offer the property owner a property of comparable value and utility

Explanation

Question 55 of 100

1

The government has the authority to enact zoning ordinances because these ordinances:

Select one of the following:

  • maintain the quality of building construction

  • promote the public health, safety, morals, and welfare

  • prevent oversupply of certain types of uses

  • encourage conformity within particular zones

Explanation

Question 56 of 100

1

Who is generally responsible for the installation of the curbs, streets, and public utilities in a new subdivision?

Select one of the following:

  • The developer

  • City or county planning office

  • Bonding companies serving the developer

  • Improvement districts formed by lot purchasers

Explanation

Question 57 of 100

1

A mechanic's lien against real property may be filed by:

Select one of the following:

  • contractors and subcontractors

  • landscape architects

  • suppliers of materials

  • All of the above

Explanation

Question 58 of 100

1

The police power is the power of the state to:

Select one of the following:

  • regulate federal lands for the public good

  • levy taxes

  • enact and enforce laws to protect the safety, health, morals, and welfare of the public

  • take private land

Explanation

Question 59 of 100

1

The Real Estate Commissioner has primary authority regarding new subdivisions that includes:

Select one of the following:

  • drainage and sewage

  • street layout

  • financial arrangements necessary to complete improvements

  • All of the above

Explanation

Question 60 of 100

1

A possessory ownership right or interest in real property is a/an:

Select one of the following:

  • lien

  • encumbrance

  • fixture

  • estate

Explanation

Question 61 of 100

1

Which of the following instances would not terminate an offer to purchase real property?

Select one of the following:

  • Death or insanity of the offeror

  • The offeror revokes the offer after the offeree has accepted the offer

  • The offeree does not respond to the offer before a deadline for acceptance

  • The offeree makes a counteroffer

Explanation

Question 62 of 100

1

Which of the following would not be considered real property?

Select one of the following:

  • Rights to unextracted oil

  • An easement appurtenant

  • An uncultivated stand of trees

  • A leasehold estate in a rental house

Explanation

Question 63 of 100

1

When a counteroffer is made:

Select one of the following:

  • the offeree becomes the offeror

  • the offeror is accepting the terms without modification

  • the original offer is amended

  • the offeree can later go back and accept the original offer

Explanation

Question 64 of 100

1

Alienation is most nearly the opposite of:

Select one of the following:

  • abrogation

  • acquisition

  • acceleration

  • amortization

Explanation

Question 65 of 100

1

A contract that is executory is a:

Select one of the following:

  • binding written contract

  • contract that contains a promise for a promise

  • contract that has not yet been fully performed

  • contract that has been fully performed

Explanation

Question 66 of 100

1

In some bilateral contracts, the parties exchange a promise for a promise. Each promise would be:

Select one of the following:

  • partial performance

  • an acceptance

  • consideration for the contract

  • a novation

Explanation

Question 67 of 100

1

How is the maximum commission rate a broker may charge established?

Select one of the following:

  • It is set by the local multiple listing service

  • It is mandated by the state Real Estate Law

  • It must be within limits prescribed by real estate professional associations' ethical codes

  • It is set by agreement between principal and broker

Explanation

Question 68 of 100

1

On Thursday, Angie decided to accept Harry's counteroffer for the purchase of his house, signed the purchase agreement, and placed it in the mail. On Friday, Harry decided that he had asked too low a price for the house, and faxed Angie stating that the offer was withdrawn. On Saturday, Harry received her acceptance in the mail. Under the mailbox rule, which of the following is true?

Select one of the following:

  • Harry withdrew his offer, so no contract is formed

  • Harry did not withdraw his counteroffer in time, so a contract is formed

  • Harry may not make a counteroffer

  • Harry's withdrawal was ineffective since it was not in writing

Explanation

Question 69 of 100

1

Before the seller's acceptance of an offer has been communicated to a buyer, the buyer may withdraw the offer:

Select one of the following:

  • if the offer was not stated to be irrevocable

  • if the offer was not scheduled to remain open until a particular date

  • if the offer was not accompanied by a good faith deposit

  • for any reason

Explanation

Question 70 of 100

1

An attachment lien is good for:

Select one of the following:

  • 1 year

  • 2 years

  • 3 years

  • 4 years

Explanation

Question 71 of 100

1

In which of the following circumstances would a deed always be void?

Select one of the following:

  • A forged deed in the hands of a bona fide purchaser

  • A deed signed by an incarcerated convict

  • A deed signed by an unmarried person under age 18

  • A deed that is not supported by consideration

Explanation

Question 72 of 100

1

A broker sells a used mobile home that is subject to registration requirements. The Department of Housing and Community Development must be notified within:

Select one of the following:

  • 3 days

  • 7 days

  • 10 days

  • 20 days

Explanation

Question 73 of 100

1

Which of the following organizations is considered to be an artificial person?

Select one of the following:

  • Joint venture

  • Corporation

  • Partnership

  • All of the above

Explanation

Question 74 of 100

1

Title will be delivered on a different day than the day the buyer plans to take possession on. The parties should use a/an:

Select one of the following:

  • interim occupancy agreement

  • quitclaim deed

  • assignment of rents

  • option agreement

Explanation

Question 75 of 100

1

A broker is working under an open listing. When prospective buyers are shown the property, the broker should:

Select one of the following:

  • withhold disclosure of latent defects

  • notify the multiple listing service

  • require each prospect to sign an agreement to pay a commission if they purchase the property

  • notify the seller of the prospects' names

Explanation

Question 76 of 100

1

A seller accepted an offer on a property and communicated her acceptance to the buyer. However, before the deal went to escrow, the seller received a second, all-cash offer. The seller rescinded the first acceptance in order to accept the second offer. A court would find that:

Select one of the following:

  • the broker is not entitled to compensation since the transaction did not go to escrow

  • the buyer is entitled to return of the good faith deposit but has no further claim against the seller

  • the acceptance of the second offer was void because a contract for the sale of the property already existed

  • the broker was entitled to a commission as soon as the first offer was accepted

Explanation

Question 77 of 100

1

If a broker is authorized through an agency agreement to negotiate a sale of property, but the seller strikes the portion of the listing form that provides for the authority to accept a buyer's deposit, then the broker:

Select one of the following:

  • is therefore implicitly authorized to accept a buyer's deposit

  • may accept a buyer's deposit but becomes the buyer's agent in regard to the deposit

  • will violate the Real Estate Law if he accepts a buyer's deposit without the express authority to do so

  • must be given express permission by the seller before being able to accept the buyer's deposit

Explanation

Question 78 of 100

1

Which of the following is a requirement for a tenancy in common relationship to exist?

Select one of the following:

  • The tenants in common must have the right of survivorship

  • Each tenant in common must have an equal interest

  • There must be unity of possession

  • Each tenant must take title to the property at the same time

Explanation

Question 79 of 100

1

A land contract was recorded by the seller. The buyer defaulted on the payments. If a quitclaim deed were to be used in order to clear the cloud from the title, it would be executed by:

Select one of the following:

  • the buyer

  • the seller

  • both the buyer and the seller

  • the lender

Explanation

Question 80 of 100

1

The payment of a commission to a real estate broker based only on an oral listing is:

Select one of the following:

  • illegal

  • contrary to public policy

  • permissible if the seller elects to do so

  • prohibited by the Commissioner's regulations

Explanation

Question 81 of 100

1

A seller's agent owes which of the following duties to the buyer?

Select one of the following:

  • The duty of confidentiality

  • Only the duty to disclose latent defects

  • The duty of honesty and good faith

  • All of the same fiduciary duties

Explanation

Question 82 of 100

1

With a purchase agreement, the date of formation of the contract is:

Select one of the following:

  • when acceptance is communicated to the offeror

  • the date the contract is prepared

  • the date the buyer signs

  • the date the offer is made

Explanation

Question 83 of 100

1

A buyer and seller of a house initialed a liquidated damages provision in a standard residential purchase agreement. The buyer defaulted. The damages money will usually be:

Select one of the following:

  • divided equally between seller and listing agent

  • limited to 5% of purchase price

  • retained entirely by the seller

  • returned to the buyer, less any seller's expenses

Explanation

Question 84 of 100

1

Which of the following methods would create an easement that would be easiest to terminate for nonuse?

Select one of the following:

  • Express reservation

  • Implication

  • Prescription

  • Quitclaim deed

Explanation

Question 85 of 100

1

Broker Stevens listed a property. Broker Yamasaki located a buyer for the property. Under a unilateral offer of subagency, Yamasaki would be a/an:

Select one of the following:

  • buyer's agent

  • inadvertent dual agent

  • agent of Broker Stevens

  • dual agent

Explanation

Question 86 of 100

1

What is the most common way for a corporation to generate additional funds?

Select one of the following:

  • Sell common stock

  • Authorize preferred stock

  • Order a bond issue

  • Take on additional limited partners

Explanation

Question 87 of 100

1

How do riparian rights differ from littoral rights?

Select one of the following:

  • Riparian rights are associated with water; littoral rights are associated with land

  • Riparian rights are only use rights; littoral rights are possessory rights

  • Riparian rights relate to streams and rivers; littoral rights relate to lakes and oceans

  • Riparian rights are appurtenant to the land; littoral rights are not

Explanation

Question 88 of 100

1

Who would be in the weakest position to protect himself against a loss of property to another claimant?

Select one of the following:

  • A holder of a recorded deed who rents the property out

  • A holder of an unrecorded deed who occupies the property

  • A holder of a certificate of title issued by a title company

  • A holder of an unrecorded quitclaim deed who does not occupy the property

Explanation

Question 89 of 100

1

Leo purchased a mobile home, which is now located in a mobile home park and properly registered. He wants to hire a broker to list the home. Which of the following is true?

Select one of the following:

  • A broker could not list it since the land is not being sold with it

  • A broker could not sell it without a mobile home sales permit from the DMV

  • A broker could arrange a sale of the home and a sublease of the land

  • A broker could list the mobile home only if it has been registered for more than one year

Explanation

Question 90 of 100

1

An appurtenant easement is:

Select one of the following:

  • a possessory interest in another person's land

  • a right held by condominium owners to use property owned in common

  • an interest in land capable of being transferred by the owner of the easement

  • incapable of being sold because it is intangible

Explanation

Question 91 of 100

1

On March 1, Craig paid $100 for a 60-day option to purchase a property. The option stated, "Upon exercise of option, optionee is to purchase within 30 days." On March 15, he sold and assigned the option to Sharon for $10,000. On April 20, Sharon informed the seller that she intended to purchase the property on May 15. What is the status of the option?

Select one of the following:

  • Valid, since an option may be assigned, but Sharon will need to purchase the property before April 30

  • Valid, since Sharon will purchase within 30 days after the exercise of the option

  • Invalid, since an option may not be assigned

  • Invalid, since the purchase date will be after the option has expired

Explanation

Question 92 of 100

1

A buyer's agent has a fiduciary duty to:

Select one of the following:

  • advise the buyer on how best to take title

  • use utmost care when dealing with the buyer

  • instruct the buyer which title insurance company to use

  • disclose to the seller the maximum the buyer will pay for the property

Explanation

Question 93 of 100

1

A farm was sold where a field of corn was growing; there was no discussion between buyer and seller as to who would own the corn. If there was a dispute as to who could harvest the corn, a court would find:

Select one of the following:

  • the corn is real property, so the buyer is entitled to it

  • the seller receives the corn because it has been constructively severed from the land

  • the seller may return to harvest the corn under the doctrine of emblements

  • the seller may harvest the corn because his intention is the controlling factor

Explanation

Question 94 of 100

1

The Springers hired a contractor to build a swimming pool for their house. If the Springers did not pay for the construction and the contractor filed a lien, the resulting encumbrance would be a:

Select one of the following:

  • general lien

  • specific lien

  • voluntary lien

  • None of the above

Explanation

Question 95 of 100

1

Barry hired Broker Teri to find a warehouse to lease. Carrie hired Teri to find a lessee for her warehouse. Each party agreed to pay Teri a commission. Teri negotiated a lease between the two parties. Barry knew Teri also represented Carrie, but Carrie didn't know that Teri represented Barry. Which of the following is correct?

Select one of the following:

  • Barry and Carrie are both liable for commissions

  • Barry is liable for a commission

  • Carrie is liable for a commission

  • Neither party may be liable for a commission

Explanation

Question 96 of 100

1

How can a homestead recorded under California law be invalidated?

Select one of the following:

  • Destruction of the improvements on the property by fire

  • A declaration of homestead is filed on another property

  • Moving to another property

  • Moving to another state

Explanation

Question 97 of 100

1

Broker Arbogast had an open listing on a residential property. He verbally agreed to pay one-half of any commission to Broker Bates if Bates found a buyer. Bates succeeded in arranging a sale of the property, but Arbogast refused to pay half of his commission to Bates. How would a court decide this case?

Select one of the following:

  • Bates would not be able to collect because of the open listing

  • Bates would not be able to collect because verbal commission split agreements are unenforceable

  • The matter would be referred to the Real Estate Commissioner for arbitration

  • Bates would be able to file a civil action and collect his commission

Explanation

Question 98 of 100

1

An agent fails to do a visual inspection of a house as required by law. How many years after occupying the property can the buyer bring an action against the agent for failure to inspect the property?

Select one of the following:

  • 1 year

  • 2 years

  • 5 years

  • 7 years

Explanation

Question 99 of 100

1

If an owner obtains riparian rights to a property:

Select one of the following:

  • he may take as much water from the stream as he likes

  • he may use the water only with a government permit

  • he has absolute ownership of the stream

  • the riparian rights apply only to the property that is adjacent to the stream and that is located within the watershed

Explanation

Question 100 of 100

1

In which of the following ways are joint tenancy and community property similar?

Select one of the following:

  • Both are limited to husband and wife

  • Both require that the property be owned by no more than two parties

  • Both involve equal ownership interests

  • Both require the signature of all parties to sell any interest in the property

Explanation

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