California Real Estate Principles - Questions and Answers

(10) 13. Closing is on June 15, and rent of $2,400 has been prepaid for the current month. What amount will the seller be debited at closing if the buyer receives credit for the day of closing? a. $1,280 b. $1,200 c. $1,350 d. $2,200

$1,280

(12) 17. Harry's Haberdashery has a percentage lease based on 5% of gross income of up to $25,000 per month and 2.5% of gross income above that amount. The minimum Harry must pay is $1,000 per month. For a month in which Harry has a gross income of $47,000, what will be his rent payment a. $1,800 b. $4,675 c. $2,800 d. $3,675

$1,800

(5) 20. The homestead exemption for a homeowner who is a member of a family unit is at least a. $175,000 b. $150,000 c. $125,000 d. $100,000

$100,000

(11) 14. Gift tax is payable when the total value of the gift to an individual in one year is more than a. $8,000 b. $14,000 c. $15,000 d. $28,000

$14,000

(10) 12. If closing is on May 19, what amount will be charged to the buyers on a total property tax of $4,320 paid by the sellers for the current tax year? Remember to use the standard number of days in the month. a. $492 b. $504 c. $1,584 d. $1,728

$504

(13) 18. The gross rent multiplier for most single family residences in Sally Murphy's neighborhood is 268. What is the market value of Sally's house using the GRM, if the house rents for $1,975 per month a. $736,940 b. $525,350 c. $529,300 d. $568,800

$529,300

(5) 19. The homestead exemption for a single person is at Least a. $175,000 b. $100,000 c. $75,000 d. $50,000

$75,000

(13) 8. House A sold for $867,000 and is comparable to the house being appraised, but it has and extra garage valued at $47,000. What is the adjusted value of house A a. $767,000 b. $813,000 c. $820,000 d. $914,000

$820,000

What are the 7 requirements for a valid deed?

(1) in writing (2) description of parties (3) grantor legally capable (4) adequate description of PIQ (5) granting clause (6) signed by grantor (7) delivered and accepted

The type of trust which hold various forms of real estate or mortgages for the benefit of 100+ investors who own shares of the trust is called a?

(REIT) real estate investment trust

How many square miles in a section?

1

(9) 3. In addition to a monthly charge, FHA mortgage insurance includes a one time payment on a purchase loan that is a. 1.75% of the loan b. variable c. negotiable d. determined by lender

1.75% of the loan

(9) 6. Four discount points will increase a lender's effective yield by approximately a. 1/4 % b. 1/8 % c. 1/2 % d. 4%

1/2 %

(9) 5. One discount point will increase a lender's effective yield by approximately a. 1/4 % b. 1/8 % c. 1/2 % d. 1%

1/8 %

(5) 6. A notice of completion should be filed within a. 20 days after completion of the work of improvement b. 10 days after completion of the work of improvement c. 20 days after work stops d. 10 days after supplies have been received

10 days after completion of the work of improvement

(13) 17. An office building with an annual gross income of $70,175 sold for $800,000. What is the building's gross income multiplier a. 11.4 b. 1.147 c. .0877 d. 12

11.4

How many feet in a rod?

16.5

(2) 19. Land described as the South 1/2 of the N 1/2 of Section 18 contains how many acres? a. 80 b. 120 c. 160 d. 320

160

What year did California become a state?

1850

(15) 19. A homeowner whose property is exempt from the requirements of the Federal Fair Housing Act will still be subject to the a. 1866 Civil Rights Act b. Housing Financial Discrimination Act c. Subdivision Map Act d. Subdivided Lands Law

1866 Civil Rights Act

How many witnesses must be present for a witnessed will?

2

(2) 14. California has how many principal baselines a. 1 b. 2 c. 3 d. 4

3

(7) 19. Liquidated damages paid on default by the buyer of a single family residence who intended to occupy the dwelling cannot exceed what percentage of the purchase price a. 1 b. 3 c. 7 d. 10

3

One league is how many miles?

3

(12) 4. A security deposit on furnished residential property can be no more than a. two month's rent b. three month's rent c. a reasonable amount d. $2,000

3 months rent

(10) 11. Prorations at closing on amounts other than interest payments usually are based on a. a 30 day month b. a 31 day month c. the actual calendar number of days d. the number of days indicated by the buyer

30 day month

(9) 4. For an existing structure, the maximum FHA mortgage loan term is a. 15 years and 32 days b. 25 years c. 30 years d. 40 years

30 years

(2) 15. A township consists of how many sections a. 12 b. 18 c. 4 d. 36

36

How many square miles is a township?

36

(7) 14. The statute of limitations for an action based on a real estate contract is a. unlimited b. 2 years c. 4 years d. 20 years

4 years

One furlong is how many rods?

40

One acre contains how many square feet?

43,560

(15) 7. The subdivided lands law applies to subdivisions of land into a. 2 or more parcels b. 5 or more parcels c. 12 or more parcels d. 25 or more parcels

5 or more parcels

One mile is how may feet long?

5,280

(12) 3. Agricultural land can be leased for a term of no more than a. 150 years b. a reasonable time c. 99 years d. 51 years

51 years

(9) 7. On FHA loans, seller contributions, including discounts and closing costs, cannot exceed a. $5,000 b. 4% c. five points d. 6% of acquisition cost

6% of acquisition cost

How many acres are in a section?

640

(2) 16. A section is a. 640 acres b. six square miles c. 5,000 feet by 5,000 feet d. three leagues

640 acres

(5) 7. Generally, the action to enforce a mechanic's lien claim must be filed within how many days after the lien is recorded a. 30 b. 60 c. 90 d. 120

90 days

(12) 1. An apartment in San Francisco can be leased for a term of no more than a. 150 years b. a reasonable time c. 99 years d. 51 years

99 years

(12) 2. An office in Los Angeles can be leased for a term of no more than a. 150 years b. a reasonable time c. 99 years d. 51 years

99 years

(4) 11. Elena moves onto Mike's land, builds a home, pays property taxes, and claims she owns the property. When will she have good title, even against Mike a. After 1 year b. After 3 years c. After 5 years d. After 10 years

After 5 years

(1) 1. The Real Estate Law is found in the a. Licensing Code b. Business and Professions Code c. Health and Safety Code d. Corporations Code

Business and Professions Code

(9) 12. A veteran can be given a home loan on property owned by a. FHA b. VA c. CalVet d. Fannie Mae

CalVet

(9) 20. Ginnie Mae securities are NOT backed by a. FHA insured loans b. VA guaranteed loans c. Farmer Mac guaranteed loans d. CalVet loans

CalVet loans

(15) 20. The broadest prohibition against all forms of discrimination in the sale of residential real estate is found in a. the Federal Housing Act b. Jones vs Mayer c. California law d. the Civil Rights Act of 1968

California law

(15) 3. Planning for future development does NOT include consideration of a. solid waste management b. conservation of natural resources c. safety d. Contractors' License Law

Contractors' License Law

A stock transfer requires a ? license, as set out in the ? Code

Corporations

(8) 19. David Yoo bought Whiteacre and is making the former owner's original loan payments. If David defaults, the seller will be obligated on the loan. Which statement is TRUE a. David bought the loan b. David bought the property subject to the loan c. David is subject to a due-on-sale clause d. David does not have title to Whiteacre

David bought the property subject to the loan

A mobile home dealer license is obtained from the?

Department of Housing and Community Development (HCD)

(11) 9. A deed may show on its face that which of the following was paid a. Release of equity b. Gift tax c. Deed tax d. Documentary transfer tax

Documentary transfer tax

(2) 3. Real Estate Law, which relies on court decisions as well as legislation, is based on a. Spanish civil law b. French civil law c. the right of appropriation d. English common law

English common law

(8) 20. A lender that discriminates against a loan applicant because of race has violated the a. Equal Dignities Rule b. Truth in Lending Act c. Equal Credit Opportunity Act d. Lender's Law

Equal Credit Opportunity Act

(10) 4. Which must be licensed as escrow agents to perform such services a. Attorneys b. Title Insurance Companies c. Banks d. Escrow Companies

Escrow Companies

(9) 1. A California veteran might have a home loan insured by a. FHA b. VA c. CalVet d. Fannie Mae

FHA

(9) 8. Five different graduated payment mortgages are approved by a. FHA b. VA c. CalVet d. Ginnie Mae

FHA

(7) 18. Unless the seller provides the necessary documentation, part of the proceeds of a sale of real property must be withheld for federal tax purposes as provided by a. FHA b. Fannie Mae c. FIRPTA d. IRS

FIRPTA

(9) 19. Which is NOT a part of the primary mortgage market a. FHA b. VA c. CalVet d. Fannie Mar

Fannie Mae

(7) 12. Fred signed a contract to sell his farm to George. Fred had second thoughts and refused to sell, but the sale went through anyway. How a. George threatened Fred b. George received a court order for specific performance of the contract c. Once signed, a contract cannot be terminated d. Fred increased the purchase price

George received a court order for specific performance of the contract

(6) 2. A minor a. may be a licensed real estate agent b. is anyone younger than 21 years of age c. may be a licensed real estate salesperson d. is anyone younger than 18 years of age

Is anyone younger than 18 years of age

(11) 4. A lien in the amount of tax due is placed on all assessed real property on a. April 15 b. December 10 c. January 1 d. July 1

January 1

(11) 3. The property tax year runs from a. January 1 through December 31 b. April 10 through December 10 c. July 1 through June 30 d. December 10 through December 9

July 1 through June 30

(12) 13. On May 15, Jacquie Jones notified her landlord that she would be vacating her retail store location on June 30. Jacquie has a month to month periodic tenancy. Until what date will she incur rent a. June 15 b. June 30 c. July 15 d. July 30

June 30

(3) 12. Barbara and Mark own Blackacre as joint tenants. Barbara's will specifies that on her death her interest in Blackacre is to go to her sister Jacquie. When Barbara dies a. Jacquie will be a tenant in common of Blackacre with Mark b. Jacquie will be a joint tenant of Blackacre with Mark c. Mark will be sole owner of Blackacre d. the probate court will have to sell Blackacre and distribute the proceeds to Mark and Jacquie

Mark will be sole owner of Blackacre

(11) 8. The use of property assessments was expanded by the a. Senior Citizens' Tax Act b. Mello-Roos Community Facilities Act c. State Board of Equalization d. Housing Economic Recovery Act

Mello-Roos Community Facilities Act

A mortgage loan originator (MLO) must register annually on the?

Nationwide Mortgage Licensing System & Registry (NMLS)

(7) 20. Haji Ababe received an offer of $610,00 for his house. His asking price is $635,000. Haji countered with $625,000. If the buyer rejects the counteroffer, may Haji accept the $610,000? a. Yes b. No c. Yes, if he does so within 24 hours d. Only if he redrafts the original offer

No

(7) 5. Can broker Bob enforce an oral listing agreement for his neighbor's home a. Yes b. No c. Possibly d. Only if he did not have a contract form handy

No

A partner's right in property owned by the partnership can be community property? Yes/No

No

Can a court of another state decide an issue involving California real estate? Yes/No

No

Can real estate agent give advice on how to acquire title?

No

(11) 15. Sam gave his friend Joe $15,000 for his tuition at Old Ivy, sending the money directly to the school. Must a gift tax return be filed a. Yes, because this is a gift b. No, because this gift has an exemption c. Yes, so that the exemption can be claimed d. No, because this is not considered a gift

No, because this is not considered a gift

Is it a legal requirement that a deed be dated?

No, but advised

(8) 3. Federal savings and loan activities are overseen by the a. FHLMC b. Office of the Comptroller of the Currency c. Federal Reserve Board d. FDIC

Office of the Comptroller of the Currency

Any California real estate acquired by an out-of-state married person that would have been considered community property if it had been acquired by a resident of California is called?

Quasi-Community Property

Any California real estate acquired in exchange for real or personal property located anywhere, when the California real estate would have been considered community property if it had been acquired by a California resident is called?

Quasi-Community Property

(14) 5. Ornate exterior woodwork is usually found on a a. Colonial American house b. Queen Anne Victorian house c. contemporary house d. California ranch house

Queen Anne Victorian house

(15) 13. The subdivision public report is issued by the a. advisory agency b. planning commission c. Real Estate Commissioner d. California Bureau of Real Estate

Real Estate Commissioner

The type of corporation where all shareholders must be individuals with fewer than 100 shareholders is called an?

S corporation

(2) 18. Section 22 lies in what direction from section 17 of a township a. Northeast b. Northwest c. Southeast d. Southwest

Southeast

(11) 10. Sales and use tax are the responsibility of the a. Internal Revenue Service b. Franchise Tax Board c. State Board of Equalization d. Department of Housing and Community Development

State Board of Equalization

(15) 16. A proposed subdivision is covered by the a. Subdivision Map Act b. Subdivided Lands Law c. Contractors' License Law d. Contractors' State License Board

Subdivided Lands Law

(2) 13. The rectangular survey system is also called the a. U.S. government survey system b. province and township system c. subdivision system d. California system

U.S. government survey system

(1) 6. The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by the? a. Business Opportunity Code b. Commercial Transfer Law c. Uniform Commercial Code d. Real Estate Law

Uniform Commercial Code

(9) 9. A veteran can have a loan guaranteed by a. FHA b. VA c. CalVet d. Fannie Mae

VA

(2) 17. Section 6 lies in what direction from section 1 of a township a. North b. South c. East d. West

West

All partners are liable for debts of the partnership. Yes/No

Yes

Are love and affection the only consideration needed for a valid deed?

Yes

As of July 1, 2001, spouses can take title to property as community property with right of survivorship. Yes/No

Yes

Every word of a holographic will must be in the testator's handwriting?

Yes

Property that was a married persons separate property before marriage remains separate property after marriage.

Yes

Taxes and fees are higher for an LLC than for a partnership. Yes/No

Yes

Using a trust to hold title is a way to keep the true owner's identity hidden. Yes/No

Yes

(10) 1. To create an escrow, there must be a. a binding contract b. unconditional delivery c. real property d. all of these

a binding contract

(1) 5. A real estate business that is a partnership can have more than one office location, provided a. a broker partner obtains an additional license for each location b. all partners are real estate licensees c. there is a designated broker-officer d. there is at least one partner at each location

a broker partner obtains an additional license for each location

(2) 11. A subdivision map is a. rarely accurate b. good only to describe the entire subdivision c. never required d. a good reference for a legal description

a good reference for a legal description

(12) 10. A dwelling is untenantable if it substantially lacks a. a heating unit b. windows in every room c. a trash compactor d. freeway access

a heating unit

(3) 6. If Greenacre is deeded by Lou to Mary for Mary's life, Mary has a. a life estate b. an estate in remainder c. an estate in reversion d. no interest

a life estate

(5) 1. A cloud on the title is ? a. not important b. easily remedied c. no impediment to a property sale d. a possible impediment to a property sale

a possible impediment to a property sale

(8) 6. To be a negotiable instrument, a promissory note must be a. a promise to pay money to the bearer b. an oral agreement c. payable at an indefinite future time d. signed by the bearer

a promise to pay money to the bearer

(14) 2. A contractor's license can be suspended or revoked for a. abandoning a project b. violating building laws c. breaching a construction contract d. all of these

abandoning a project, violating building laws, breaching a construction contract

(10) 15. The MOST thorough method of title check results in a(n) a. abstract of title b. certificate of title c. guarantee of title d. policy of title insurance

abstract of title

(1) 20. Rudy opens his brokerage office and immediately places an ad in the local newspaper: List Your House with Me and I Will Pay You $500 at closing. This practice is a. acceptable b. mandated c. discouraged d. prohibited

acceptable

(1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is? a. acceptable b. mandated c. discouraged d. prohibited

acceptable

(4) 8. When soil is deposited on a riverbank, gradually building out the land, this process is called a. accretion b. alluvion c. avulsion d. subsidence

accretion

In order for a deed to be recorded it must be ?

acknowledged

(7) 3. Mary persuaded her elderly Aunt Agnes to buy a grossly overpriced condominium. Mary knew the price was to high, but she received a commission on the sale from the seller. Aunt Agnes may complain of a. actual fraud and undue influence b. negligent misrepresentation c. constructive fraud d. commercial frustration

actual fraud and undue influence

The court appointed person named to act of behalf of the decedent?

administrator

(4) 7. The probate court appoints a(n) a. executor or executrix b. testator c. devisee d. administrator or administratrix

administrator or administratrix

Want are the 3 ways to acquire property by using it without the owner's permission?

adverse possession, prescription and abandonment

(6) 6. A salesperson is a broker's a. principal b. agent c. subagent d. third person

agent

(10) 3. The escrow holder acts in the capacity of a. mediator b. agent of both parties c. advisor on the transaction d. surety

agent of both parties

(7) 7. Todd Miller made an offer for the Brown residence, and the Browns accepted the offer. On reconsidering, Todd decides to back out of the deal. The Browns agree to let hi do so. Todd and the Browns then sign a(n) a. novation of the purchase contract b. agreement rescinding the purchase contract c. assignment of the purchase contract d. agreement reforming the purchase contract

agreement rescinding the purchase contract

(10) 18. Title insurance protects a buyer against a. all claims from any source b. all claims except those excluded from coverage c. claims arising from the buyer's future actions d. any claims the buyer already knows about

all claims except those excluded from coverage

(12) 9. A lease may be renewed automatically only if a. the landlord prepared the lease b. the tenant and landlord are unable to agree on any other term c. the automatic renewal provision is noted in a separate document referenced in the lease d. all of the statutory requirements are met

all of the statutory requirements are met

(3) 14. Community property is a. all property acquired by a spouse or registered domestic partner b. all property acquired by the husband during marriage c. the only form of ownership during marriage d. all property acquired by a spouse or registered domestic partner that is not separate property

all property acquired by a spouse or registered domestic partner that is not separate property

(5) 3. Which is not a mechanic a. An engineer b. An architect c. An apartment lessor d. An equipment lessor

an apartment lessor

(4) 13. The right to travel over the property of someone else is a. an easement b. equitable estoppel c. a fixture d. statutory dedication by deed

an easement

(3) 7. If Greenacre is deeded by Lou to Mary for Mary's life, Lou has a. a life estate b. an estate in remainder c. an estate in reversion d. no interest

an estate in reversion

(14) 10. Earthquake protection is provided by a. anchor bolts b. cross-bracing c. plywood sheathing d. all of these

anchor bolts, cross-bracing, plywood sheathing

(13) 7. The Miejas are looking forward to eventually retiring on the profit they will make from selling their house. Their attitude is an example of a. progression b. growth c. acquisition d. anticipation

anticipation

What is considered to "run with the land"?

appurtenances

(6) 10. Real estate commission rate a. are established by the California Bureau of Real Estate b. should be no lower than 2% c. should be no higher than 10% d. are not fixed by law

are not fixed by law

(7) 10. If Jane's performance of her sales contract becomes economically impractical, she should a. cancel the contract unilaterally b. ask that the contract be terminated c. claim the purchase is a mistake d. tear up the contract

ask that the contract be terminated

(12) 8. Transfer of all of a tenant's rights under a lease is a(n) a. assignment b. sublease c. freehold estate d. estate at will

assignment

(8) 15. MOST adjustable rate mortgages are a. assumable b. not assumable c. held by the sellers d. not allowed for federal institutions

assumable

Advising someone on how to take title has tax consequences. Such advice should come from ?

attorney or CPA

(4) 9. When flood conditions cause land to be washed away, this is known as a. accretion b. alluvion c. avulsion d. accession

avulsion

What direction in the section and township method of describing land runs east-west?

base line

(10) 6. By law a licensed escrow agent must a. pay a referral fee to a real estate agent b. disclose information concerning the transaction to outside parties c. be a corporation d. have a real estate brokers license

be a corporation

(6) 11. All real estate agency agreements must a. expire in 90 days b. be in writing c. be signed before a buyer is solicited d. be approved by the California Bureau of Real Estate

be in writing

(9) 13. A CalVet purchase loan must be applied for a. within one year of property purchase b. before closing c. before a contract of sale is signed d. before talking to a property owner

before a contract of sale is signed

(8) 11. In a deed of trust, the lender is the a. trustor b. trustee c. beneficiary d. holder

beneficiary

(9) 17. In a sale leaseback a. land is never sold b. buildings are always sold c. both land and buildings can be sold d. only a leasehold interest is sold

both land and buildings can be sold

(15) 18. Discrimination in housing is prohibited by a. federal law b. state law c. both state and federal laws d. neither state nor federal law

both state and federal law

(14) 20. All water heaters must be a. cemented in place b. braced, anchored, or strapped c. at least 80 gallons in capacity d. warranted by the state

braced, anchored, or strapped

(7) 11. Failure to perform a contract is a a. rescission b. breach c. novation d. reformation

breach

(2) 9. In California, the Uniform Commercial Code governs sales transactions involving a. real estate b. bulk sales of goods c. fixtures to real estate d. riparian rights

bulk sales of goods

(10) 20. Lender's title insurance typically is paid by the a. buyer b. seller c. lender d. broker

buyer

(10) 9. Providing a copy of any buyer broker agreement is the responsibility of the a. buyer b. seller c. escrow agent d. real estate agent

buyer

(7) 17. A well-drafted real estate purchase contract will include provisions for a. the buyer's possession of the property b. the financing terms c. prorations of property taxes d. all of these

buyer's possession of the property, financing terms, prorations of property taxes

(5) 15. Marilyn's 40-acre tract, purchased from Alan, is landlocked, which means she a. has to enter it by helicopter b. has an easement in gross over any land she chooses c. has an easement by implication of law over any land she chooses d. can get an easement by necessity over Alan's adjoining land.

can get an easement by necessity over Alan's adjoining parcel

(14) 16. A window that opens out is called a a. double hung window b. horizontal sliding window c. casement window d. fixed window

casement window

(11) 5. When all past due property taxes are paid, the county tax collector issues a a. receipt for unpaid taxes b. letter of credit c. certificate of redemption d. release of equity

certificate of redemption

(8) 9. The highest bidder at a judicial foreclosure receives a a. deed b. contract c. title d. certificate of sale

certificate of sale

(10) 2. Escrow instructions can be a. changed by oral agreement b. only unilateral c. changed only by written agreement of both parties d. all of these

changed only by written agreement of both parties

(11) 1. Property taxes are ad valorem taxes, which means that they are a. charged in relation to the value of the property taxes b. charged once at the time of a property transfer c. use taxes d. sales taxes

charged in relation to the value of the property taxes

(8) 18. RESPA covers the a. listing agreement b. broker's commission c. Closing Disclosure form d. loan application form

closing disclosure form

A document used to amend a will is called a?

codicil

(4) 12. Elena's friend Carl, who was a prior owner of a piece of property, gave her a phony deed to the property in question. Elena, who does not know the deed is phony, has a. a worthless document b. color of title c. a good title d. to share title with Mike

color of title

(9) 14. CalVet loans are NOT available for a. single family homes b. manufactured homes c. working farms d. commercial property

commercial property

(15) 11. A subdivision consisting of individual ownership of airspace and areas owned in common is a a. planned development b. community apartment project c. condominium project d. stock cooperative project

condominium project

(8) 17. The TILA-RESPA law applies to a. HELOCs b. construction-only loans c. loans made by a person who makes five or fewer mortgages in a calendar year d. reverse mortgages

construction-only loans

(13) 6. An improvement to a house may or may not create a corresponding increase in the house's market value. This is an example of a. balance b. progression c. contribution d.regression

contribution

(13) 15. The upper limit of a property's value usually is determined by the a. market comparison approach b. cost approach c. income approach d. sales comparison approach

cost approach

(12) 6. Lulu landlord wants to give Tom Tenant's apartment to her nephew Ken. Lulu tries do drive Tom out by constantly phoning him, visiting him, and insisting that his apartment be used to show prospective tenants for other units what the building is like. Lulu is violating Tom's a. right to use property without interference b. covenant to repair c. covenant of quiet enjoyment d. warranty of habitability

covenant of quiet enjoyment

(9) 15. Many seller financed purchases are examples of a. institutional lending b. creative financing c. mortgage backed securities d. blended rate mortgages

creative financing

(2) 1. During the days of the Spanish rule, all land was owned by the a. missions b. government c. crown d. conquistadors

crown

(8) 12. The first step in bringing about a trustee's sale is to prepare a a. declaration of default b. notice of levy c. request for notice d. notice of default

declaration of default

(5) 18. A family unit is a. defined by law b. limited in size c. limited to the relatives of one's spouse d. at least 3 people

defined by law

(11) 20. For 2013, all of the following were deductions from a homeowner's gross income for purposes of federal income taxation EXCEPT a. mortgage interest on a loan of $75,000 b. PMI on a loan that originated in 2013 c. mortgage interest on combined first and second home loans totaling $935,000 d. depreciation based on a 39 year schedule

depreciation based on a 39 year schedule

(2) 10. For real estate to be conveyed, there must be an accurate a. fence line b. description c. soil chemical analysis d. water test

description

The transfer of real property by will is called?

devise

(4) 3. Someone who receives real property by will is called a a. devise b. devisee c. testator d. codicil

devisee

Someone who receives real property by will is called a ?

devisee

The person receiving property by will is called a?

devisee

(7) 9. Lonnie and Karen have a contract to buy the Santos house. Following a four-day rainstorm, the Santos house was pushed off its foundation by a mud slide and is now resting halfway over a ravine. The contract probably is a. discharged because performance is impossible b. still in effect c. discharged because performance is impossible d. renegotiable at the discretion of the seller

discharged because performance is impossible

(1) 14. Maya is a broker-officer of XYZ Realty, Inc. She does not like the overly aggressive sales tactic's of XYZ's salespeople but has not reprimanded them because business is so good. Maya's conduct is a. acceptable b. mandated c. discouraged d. prohibited

discouraged

(1) 18. Broker Luis is so busy that he never has the time to return the phone calls of his principals. He prefers to spend his time in the field making sales and acquiring new listings. This practice is a. acceptable b. mandated c. discouraged d. prohibited

discouraged

What is DBA?

doing business as

(3) 18. When doing business in California, a corporation chartered in California is a a. domestic corporation b. foreign corporation c. real estate investment trust d. general partnership

domestic corporation

Corporations created in the state where they are chartered are called?

domestic corporations

(5) 13. Betty's property includes an easement over Al's land. Betty's property is the a. dominant tenement b. servient tenement c. easement d. encroachment

dominant tenement

(5) 11. The right to use adjacent land to go to and from a roadway is a(n) a. encroachment b. easement c. restriction d. condition

easement

(5) 14. George does not own any land but has an easement over Al's and Betty's property to go down to the river. George has an a. easement by necessity b. easement by implication of law c. easement in gross d. encroachment

easement in gross

(13) 16. Vacancy and collection losses are subtracted from potential gross income to derive a. net operating income b. gross operating income c. effective gross income d. capitalization rate

effective gross income

(7) 1. Sue is 17 years old. She can contract as an adult if she is a. is living away from her parents b. Is emancipated c. is an orphan d. has an adult cosign with her

emancipated

Cultivated crops are called?

emblements

(4) 17. The power of the state to take private property for public use is called a. eminent domain b. equitable estoppel c. a public grant d. abandonment

eminent domain

(6) 5. The California Real Estate Law treats a real estate salesperson as a(n) a. independent contractor of the broker b. employee of the broker c. sole proprietor d. partner of the broker

employee of the broker

(5) 9. Liens and judgments are a. encumbrances b. encroachments c. easements d. void on homestead property

encumbrances

(7) 4. The contract Haji Ababe accepted states a purchase price "as appraised on May 12, 2014, by Mike Morton, MAI". Based on this provision, the contract is a. void b. voidable c. unenforceable d. enforceable

enforceable

The process by which rainfall wears away the surface of the soil is called?

errosion

(10) 5. In Southern California, escrows are MOST often held by a. savings and loan associations b. escrow companies c. title insurance companies d. attorneys

escrow companies

An interest in property is called an?

estate

(6) 12. The most commonly used form of real estate listing agreement is the a. open listing b. exclusive agency listing c. exclusive authorization and right to sell listing d. net listing

exclusive authorization and right-to-sell listing

The decedent's representative named in a will?

executor

(4) 2. The testator names a(n) a. executor or executrix b. testator c. devisor d. administrator

executor or executrix

The testator names a(an)?

executor or executrix

(9) 11. Using the benefit of the GI Bill, a veteran cannot buy a a. house b. condominium c. farm d. manufactured home

farm

(3) 2. The highest form of ownership is the a. life estate b. real estate syndicate c. fee simple absolute d. estate at will

fee simple absolute

(3) 5. A fee simple estate that has no conditions is a a. life estate b. remainder c. fee simple on condition subsequent d. fee simple absolute

fee simple absolute

(3) 4. A fee simple estate that may be lost when some act is performed is a a. life estate b. fees simple absolute c. remainder d. fee simple on condition subsequent

fee simple on condition subsequent

(5) 8. If unauthorized work is being done, a property owner can a. file a preliminary notice b. file a notice of cessation c. allow the job to be completed and then refuse to pay d. file a notice of non-responsibility

file a notice of non-responsibility

(15) 14. A final subdivision public report has an initial term of a. one year b. two years c. four years d. five years

five years

(11) 11. In California there is a state sales tax on a. food b. buildings to be removed from land by the buyer as part of a transaction c. fixtures sold as part of a business d. inventory sold as part of a business

fixtures sold as part of a business

Corporations created outside the state where they are chartered are called?

foreign corporations

(3) 1. A fee simple estate and life estate are a. freehold estates b. fee simple estates c. leasehold estates d. estates of tenancy

freehold estates

(12) 14. A landlord must follow the legal requirements for an eviction a. from leased premises b. but can shorten the notice required if the tenant agrees c. unless the tenant can be physically removed d. unless the housing is government subsidized

from leased premises

(13) 12. A single family residence with a one car garage may be an example of a. external obsolescence b. functional obsolescence c. economic obsolescence d. environmental obsolescence

functional obsolescence

(14) 3. A type of roof with two steeply pitched planes is called a a. gambrel roof b. flat roof c. gable roof d. salt box roof

gable roof

(14) 4. A Dutch colonial house is distinguished by a a. hip roof b. shed roof c. gable roof d. gambrel roof

gambrel roof

(15) 1. Land use policies and goals are established through the a. general plan b. subdivision report c. preliminary report d. notice of intention

general plan

(13) 1. A house is appraised at $423,000, even though it cost $435,000 to build 3 years earlier. Which factor could NOT have contributed to the loss in value a. Regression b. Gentrification c. Functional obsolescence d. Supply and demand

gentrification

The benefit derived from the business's favorable relationship with its customers is called?

goodwill

(1) 2. The Real Estate Commissioner reports to the a. California Bureau of Real Estate b. governor c. Real Estate Advisory Commission d. legislature

governor

A conveyance of real estate is called a ?

grant

The only form of deed that conveys after acquired title is a ?

grant deed

The person receiving property conveyed to them is the ?

grantee

The person (the owner) conveying the property is the ?

grantor

(9) 10. The certificate of reasonable value sets the upper limit of value for the a. purchase price b. loan c. guarantee d. None of the above

guarantee

(7) 15. The rule for preprinted contracts is a. handwriting takes precedent only over printing b. printing takes precedence over typing c. handwriting takes precedence over both typing and printing d. typing takes precedence over handwriting

handwriting takes precedence over both typing and printing

(4) 6. A holographic will is a. oral b. telegraphic c. handwritten d. witnessed

handwritten

(13) 2. Ed Wilson owns a vacant lot and employs an appraiser to determine the property's a. growth b. reproduction cost c. replacement cost d. highest and best use

highest and best use

(15) 2. The general plan must consider a. housing at current market rates b. only present land uses and hazards c. the needs of all applicants for development permits d. housing at all income levels

housing at all income levels

(14) 1. In contracting for any work on someone else's property, a contractor's license is NOT needed a. by an attorney b. by a real estate broker c. by a real estate salesperson d. if the work costs less than $500

if the work costs less than $500

(1) 9. A real estate licensee can offer a mobile home for sale that is? a. in a manufacturing plant, ready for delivery b. transportable under an exemption from the vehicle code c. presold d. in a location where it can legally remain for one year

in a location where it can legally remain for one year

(12) 7. A landlord has a right of entry a. in an emergency b. only to show the premises to prospective tenants c. only when the tenant agrees d. any time

in an emergency

(13) 13. Houses adjacent to a new highway will probably suffer from a. curable external obsolescence b. incurable functional obsolescence c. curable functional obsolescence d. incurable external obsolescence

incurable external obsolescence

(13) 10. The cubic foot method of estimating construction cost is best used for a. single family residences b. manufactured homes c. industrial properties d. multi family residential properties

industrial properties

(10) 8. The legal action that may be brought by an escrow holder is a. quiet title b. interpleader c. adverse possession d. injunction

interpleader

(4) 1. A person who dies without a will dies a. testate b. intestate c. with an executor d. in eminent domain

intestate

A person who dies without a will dies?

intestate

The legal determination of property ownership of a person who dies without having a will is called?

intestate succession

(12) 11. Because a tenant complains about the condition of the building, the landlord may a. evict the tenant b. raise the tenant's rent c. shut off the tenant's utilities d. investigate the complaint

investigate the complaint

(6) 18. Exaggerating a property's value or desirability a. is permissible b. is expected in the average transaction c. is justifiable as harmless "puffing" d. is never permitted

is never permitted

(12) 19. A property manager a. must be a real estate broker b. is the property owner's agent c. is the tenant's agent d. is not an agent

is the property owner's agent

(8) 2. The Fed can increase or decrease the amount of money in circulation by all of the following EXCEPT a. establishing the discount rate b. issuing government securities c. raising or lowering reserve requirements d. buying and selling government securities

issuing government securities

(9) 18. The secondary mortgage market does NOT deal in a. primary mortgage market instruments b. junior liens c. issuing loans d. mortgage backed securities

issuing loans

(14) 9. A good floor plan has a. the kitchen near the garage b. bedrooms near living areas c. one bathroom for every three bedrooms d. no closets in the bedrooms, to conserve space

kitchen near the garage

(5) 2. A mechanics lien may be filed by a a. laborer b. tenant c. advertiser d. customer

laborer

(9) 16. An installment sales contract is also called a a. GEM b. GPM c. land contract d. bill of sale

land contract

Real property is composed of what 4 elements? (lAAF)

land, fixtures, anything incidental or appurtenant to the land, anything immovable on the land

The recipient of personal property by will is called a?

legatee

(8) 1. A $450,000 house can be purchased with a $90,000 down payment using the principle of a. borrowed funds b. leveraging c. partial financing d. home equity

leveraging

The holder of a life estate is called the?

life tenant

(3) 19. Title to a spouse's marital property can be transferred upon death by use of a(n) a. oral will b. tenancy in common c. living trust d. letter of intent

living trust

(9) 2. FHA appraisal value is used to set the upper limit of the a. purchase price b. loan amount c. construction cost d. seller contribution

loan amount

(10) 14. A buyer's settlement statement includes a. only prorations chargeable to the buyer b. the borrower's loan application c. loan origination fees d. all encumbrances of record

loan origination fees

(15) 15. The Subdivision Map Act allows a. the state to have a say in how property is subdivided b. local jurisdictions to determine whether a subdivision is desirable c. developers to dictate how subdivision will take place d. neighboring landowners to petition to have land subdivided

local jurisdictions to determine whether a subdivision is desirable

(2) 12. The most useful method of describing a subdivision parcel is probably the a. lot and block system b. rectangular survey system c. metes and bounds system d. U.S. government survey system

lot and block system

(6) 14. The agent owes the principal the duty of a. loyalty b. compensation c. extraordinary care and skill d. dual representation

loyalty

(4) 4. A typewritten will must be a. made by a competent b. signed by the testator c. witnessed d. all

made by a competent person, signed by the testator and witnessed

(1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to the owner of Whiteacre a written statement of his expected profit in the transaction. The seller agreed to proceed with the sale. This conduct is a. acceptable b. mandated c. discouraged d. prohibited

mandated

(6) 17. A real estate seller must disclose a. only visible property defects b. structural additions or repairs only if made by the seller c. material facts concerning the property's value or desirability d. only defects that would be revealed by a property

material facts concerning the property's value or desirability

(6) 15. A real estate agent must make full disclosure of a. all material facts known to the agent b. all material facts revealed by the owner of the property c. material facts that are known by the agent or that would be revealed by a reasonable inspection of the property d. all actual or potential property defects, of whatever kind

material facts that are know to the agent or that would be revealed by a reasonable inspection of the property

A nonprofit corporation is owned by?

members

What direction in the section and township method of describing land runs north-south?

meridian

What are the 3 types of legal description of land?

metes and bounds, lot and block, section and township

What are the 5 tests to determine if a specific thing is a fixture? (MARIA)

method, adaptability, relationship, intent, agreement

(8) 14. An ARM is a a. graduated payment mortgage b. growing equity mortgage c. mortgage in which the interest rate changes periodically based on an index d. reverse annuity mortgage

mortgage in which the interest rate changes periodically based on a index

(11) 19. With respect to investment property, an investor can make use of a. the residence replacement rule b. exclusion from taxation c. property tax postponement d. mortgage interest deductions from property income

mortgage interest deductions from property income

(8) 8. In a mortgage, the lender is the a. mortgagor b. mortgagee c. maker d. holder

mortgagee

(2) 6. Real property is NOT a. land b. real estate c. appurtenances to land d. movable

movable

(6) 8. To be enforceable, all real estate sales contracts a. may be oral or written b. must be in writing c. must comply with the equal equities rule d. must be completed within 90 days of origination

must be in writing

(1) 8. If a real estate license is NOT renewed before it expires, the licensee? a. is allowed to complete transactions in progress b. is allowed to finish transactions that are substantially complete c. must cease all real estate activities d. may act under authority of another agent's license for a period not to exceed 60 days

must cease all real estate activities

(6) 7. An agency agreement to perform an act that requires a writing a. must itself be in writing b. may be oral or written c. cannot be an express agreement d. violates the statute of frauds

must itself be in writing

(6) 9. As a contract, a real estate agency agreement a. can have any objective b. needs only to be made by parties with the capacity to contract c. does not need to be supported by consideration d. must meet the requirements for a valid contract

must meet the requirements for a valid contract

(15) 8. An out of state subdivider of California land a. must procure a public report b. need not procure a public report c. can decide whether to procure a public report d. needs a public report only to finance a California subdivision

must procure a public report

(12) 18. The owner of 417 Main, an office building, receives a guaranteed monthly income from her tenants and pays no expenses. She has a a. gross lease b. trust lease c. percentage lease d. net lease

net lease

(15) 9. A standard subdivision includes a. single family residences and condominiums b. no common interests c. only residential property d. no irregular shaped parcels

no common interests

(3) 9. If Greenacre is deeded by Lou to Mary for the life of Nancy, Nancy has a a. a life estate b. an estate in remainder c. an estate in reversion d. no interest

no interest

Limited partners can take part in management of the partnership. Yes/No

no, and if the do they become a general partner

The sections composing a township are numbered starting in what corner of the township.

northeast

(3) 20. A limited partner is a. responsible for partnership activities b. a general partner in some instances c. not liable for partnership debts beyond the amount invested d. required to take part in partnership business

not liable for partnership debts beyond the amount invested

(12) 15. A landlord may begin eviction proceedings with a(n) a. notice of termination b. notice of abandonment c. notice to pay or quit d. order of eviction

notice to pay or quit

(10) 17. Title insurance is paid as of the day a. escrow opens b. the sales contract is executed c. of closing d. the buyer takes possession

of closing

(5) 17. The maximum homestead exemption may be claimed by any homeowner who is a. a member of a family unit b. older than 65 years of age c. married d. single

older than 65 years of age

(14) 19. Every house sold on or after January 1, 1986, must have at LEAST a. three bedrooms b. two bathrooms c. one smoke detector d. one garage

one smoke detector

(14) 11. A two story platform house is built a. with studs that extend from the first floor to the ceiling of the second floor b. one story at a time c. with posts within the house that support beams d. with no interior supporting walls

one story at a time

What are the 5 steps to acquire property by adverse possession? (ONCHA)

open, notorious, continuous, hostile and adverse

(14) 7. The location of a house on its site is called its a. view b. architecture c. orientation d. floor plan

orientation

(4) 14. A cotenant who wants property that is co-owned to be sold would bring a(n) a. foreclosure action b. action for declaratory relief c. action to quiet title d. partition action

partition action

(14) 18. Heat from sunlight reaching water filled containers is used in a. active solar heating systems only b. passive solar heating systems c. most homes d. air-conditioning systems

passive solar heating systems

(6) 19. The Recovery Account is available to a. brokers b. salespeople c. people victimized by a real estate licensee d. real estate licensees victimized by their clients

people victimized by a real estate licensee

Underground water that is not confined to a defined stream is?

percolating water

(15) 10. A subdivision consisting of individually owned lots as well as areas owned in common is a a. planned development b. community apartment project c. condominium project d. stock cooperative

planned development

(14) 17. A relatively inexpensive and easy to install interior wall finish a. plasterboard b. drywall c. wallboard d. all of these

plasterboard, drywall, wallboard

A subdivision map may also be referred to as a?

plat map

(15) 4. Zoning ordinances are an exercise of a government's a. power of eminent domain b. power of condemnation c. police power d. judicial power

police power

What power of the state allows it to license real estate agents?

police power

Real Property is often described as a bundle of rights. What are the 5 major rights? (PUEED)

possession, use, enjoyment, exclude, dispose

(14) 13. A post and beam frame house is built a. with studs that extend from the first floor to the ceiling of the second story b. one story at a time c. with posts within the house that support beams d. with interior supporting walls

posts within the house that support beams

(4) 15. In the event of default, real property may be sold without court action if the mortgage or other lien contains a a. trust deed b. power of sale c. tax deed d. right of entry

power of sale

If the right of possession is restricted in some way, it is a fee simple subject to a?

power of termination

(6) 1. Generally an agent works for the a. principal b. third person c. subagent d. California Bureau of Real Estate

principal

(6) 13. A real estate agent owes duties to a. the principal b. the third person c. the subagent d. all of these

principal, third person, subagent

(8) 4. California usury laws apply primarily to a. financial institutions b. all lenders c. nonfinancial institutions d. private lenders

private lenders

(13) 4. A house that benefits from the desirability of its neighboring properties is an example of the principle of a. balance b. contribution c. progression d. regression

progression

(1) 10. The Browns desperately want to move to Pine Bend, and they like the Smith House, which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can persuade the Smith's to accept the Brown offer on their house, and the Browns send an expensive food basket to Bob as a sign of their good faith. Bob neglects to mention this to the Smiths. This practice is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 11. Broker Bob routinely places earnest money deposits in his personal account for overnight safekeeping. This practice is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate "when the parties agree". This practice is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 15. Broker Bob wants to help out his neighbor's son, Igor, who recently acquired a BA in history from Back East University. Broker Bob hires Igor to show property to prospective buyers. Because Igor has no real estate license, Bob handles all of the negotiating. This practice is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 16. Salesperson Sally is selling the Martinez Mansion. An offer has been accepted, and the closing will take place in two weeks. While the owners are out of town, the buyer asks if the closing can be put off for one day. Sally agrees on behalf of the owners, for she is sure they will not object. Sally's conduct is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 17. The Anderson house is for sale following the murder of Mrs. Anderson by Mr. Anderson in the breakfast room six months earlier. Salesperson Sam, showing an out-of-town prospect through the house, decides to keep information about the murder to himself. Sam's conduct is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 19. After attending a get-rich-quick real estate seminar, Kim wants to buy a house cheap. She tells broker Bob she will offer $50,000, with seller financing and no down payment, on the Henderson house. The Henderson house has an asking price of $125,000. Bob presents the offer with one of his own for $85,000, telling the Hendersons that the expected market conditions make their asking price unrealistic. His conduct is a. acceptable b. mandated c. discouraged d. prohibited

prohibited

(1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is? a. acceptable b. mandated c. discouraged d. prohibited

prohibited

A form which is unique to the entity that created it is called?

proprietary

(12) 20. James moved out of his apartment at the end of the lease term. The landlord will be allowed to increase the rent for a new tenant to reflect the current market value because the local rent control ordinance a. provides for vacancy control b. provides for vacancy decontrol c. is based on an index d. is favorable to the tenant

provides for vacancy decontrol

(13) 11. Appraiser Hansen estimated all direct and indirect construction costs of the Harley Building separately, then totaled them. She used the a. unit in place method b. index method c. quantity survey method d. cost averaging method

quantity survey method

(14) 15. The main roof supports are the a. soffits b. rafters c. gutters d. eaves

rafters

Townships run east-west in groups called?

ranges

(15) 17. Disclosure of the fact that property is located in a special studies zone must be made by the a. city council or board of supervisors b. property buyer c. real estate agent who represents the seller d. seller, in addition to the real estate agent

real estate agent who represents the seller

A fictitious name is any name than that of a?

real estate licensee

(2) 5. In California, the term real estate is synonymous with a. land b. fixtures c. real property d. personal property

real property

(11) 2. The Smiths' sale of their residence is a a. release of equity b. reassessment event c. local assessment d. notice of change of ownership

reassessment event

(13) 19. The step in which the appraiser arrives at a final opinion of value is called a. equilibrium b. reconciliation c. substitution d. equalization

reconciliation

(4) 20. Legal title conveyed by a deed of trust may be regained by a a. warranty deed b. trust deed c. reconveyance deed d. sheriff's deed

reconveyance deed

(11) 18. Property that can be depreciated for income tax purposes is called a. recovery property b. tax basis c. boot d. like kind property

recovery property

(3) 3. Victor and Karen are not married but together own community property because they are a. brother and sister b. joint tenants c. registered domestic partners d. holders of a life estate

registered domestic partners

(13) 5. Charlie Addison has a deluxe five bedroom house in a neighborhood of modest 3 bedroom houses. How the value of Charlie's house will be affected is an example of a. substitution b. scarcity c. progression d. regression

regression

(4) 10. When water recedes, creating a new shoreline, the process is called a. accretion b. alluvion c. avulsion d. reliction

reliction

If the right of possession goes to a third person when the life estate ends, that person has a ?

remainder

(3) 8. When Aunt Winifred died, she left a life estate in Whiteacre to her nephew George. When George dies, Whiteacre will go to George's daughter Elizabeth. Elizabeth is a a. reversioner b. remainderman c. holder of a life estate d. joint tenant with right of survivorship

remainderman

Who holds an estate in remainder during the existence of the life estate and a fee simple estate on termination of the life estate?

remainderman

The listing agreement between seller and buyer should identify the items the seller wants to ?

remove

(8) 16. Interest rate and payment can change every three to five years in a a. graduated payment mortgage b. renegotiable-rate mortgage c. growing equity mortgage d. reverse annuity mortgage

renegotiable-rate mortgage

(13) 9. To calculate the market value of a 19th century San Francisco Victorian style mansion using the cost approach, you probably would use a. reproduction cost b. replacement cost c. historical building cost d. cost averaging

replacement cost

(7) 6. When both parties agree to cancel a contract, they effect a a. rescission b. release c. novation d. reformation

rescission

(6) 4. An independent contractor is distinguished by a. responsibility for Social Security and other payments b. no flexibility in setting work hours c. little control over work methods d. no legal obligation to employer

responsibility for Social Security and other payments

If the right of possession returns to the original property owner when a life estate ends, the original owner has a ?

reversion

(15) 6. Land may be subdivided for purpose of a. sale b. lease c. financing d. all of these

sale, lease, financing

(8) 5. Real estate is hypothecated by use of a a. promissory note b. negotiable instrument c. security instrument d. pledge

security instrument

(13) 20. The most comprehensive method of conveying the result of an appraisal is the a. self contained report b. form report c. restricted use report d. summary report

self contained report

(3) 10. The owner of a life estate can a. sell only the life estate b. never will the life estate c. sell the fee simple estate d. sell both the life estate and the fee simple estate

sell only the life estate

(10) 10. Providing tenant information is the responsibility of the a. buyer b. seller c. escrow agent d. real estate agent

seller

(5) 12. Betty's property includes an easement over Al's land. Al's property is the a. dominant tenement b. servient tenement c. easement d. encroachment

servient tenement

The owners of a corporation are called?

shareholders

If you buy real estate at an execution sale, you will receive a?

sheriff's deed

(1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd a. did not need a real estate license for the deal b. should have had a real estate license c. is exempt from licensing requirements d. None of these

should have had a real estate license

A document is executed when it is ?

signed

(4) 5. A statutory will is a. signed and witnessed b. telegraphic c. oral d. invalid

signed and witnessed

(4) 18. To be effective, a deed must be a. made on a printed form b. signed by the grantor c. delivered to the grantee by the grantor personally d. all of these

signed by the grantor

(3) 17. Absolute control, as well as absolute liability, belongs to a a. sole proprietor b. corporate shareholder c. limited partner d. trustee

sole proprietor

(7) 2. Fred owns and runs his one-man shoe repair shop as a(n) a. sole proprietor b. partner c. executor d. administrator

sole proprietor

(6) 20. An agency relationship may NOT be terminated by a. completion of the agreement b. expiration of the terms of the agreement c. agreement of the parties d. someone outside the agency relationship

someone outside the agency relationship

(6) 3. Someone appointed to carry out a particular transaction is a a. general agent b. special agent c. secret agent d. subagent

special agent

(11) 7. A benefit assessment also may be called a a. tax credit b. special assessment c. community assessment d. documentary transfer tax

special assessment

(10) 19. Water rights are excluded from coverage in a. a standard policy of title insurance b. an extended coverage policy of title insurance c. a warranty deed d. all residential title insurance policies

standard policy of title insurance

(11) 12. The State of California collects a. federal income tax b. gift tax c. state income tax d. inheritance tax

state income tax

(7) 13. The time period in which a lawsuit can be brought is set by the a. equal dignities rule b. statute of frauds c. statute of limitations d. probate court

statute of limitations

Wording that is dictated by law is called?

statutory language

(15) 12. A corporation holds title to property and shareholders having a right of occupancy to part of the property own the corporation in a a. planned development b. community apartment project c. condominium project d. stock cooperative project

stock cooperative project

(13) 14. Which is not a form of depreciation a. Physical deterioration b. Straight line method c. Economic obsolescence d. Functional obsolescence

straight line method

(14) 12. The vertical supports in a wood frame house are called a. studs b. plates c. joists d. beams

studs

(7) 16. A property description including the words "250 acres, more or less" is a. fatally defective b. not definite enough c. sufficient if reasonably close to the exact acreage d. incomplete without a metes and bounds description

sufficient if reasonably close to the exact acreage

(14) 8. The sun's arc in the sky is highest in a. summer b. fall c. winter d. spring

summer

(13) 3. Since the Peterson factory closed, houses in Sunny Acres are taking longer to sell, and prices have gone down. This is a result of a. highest and best use b. supply and demand c. contribution d. conformity

supply and demand

(11) 17. The rate of federal income tax paid depends on the taxpayer's a. tax bracket b. state income tax paid c. location d. source of income

tax bracket

(11) 6. The buyer of property at an auction by the tax collector receives a a. certificate of sale b. release of equity c. quitclaim deed d. tax deed

tax deed

(3) 15. One of the forms of concurrent ownership is a. ownership in severalty b. tenancy in partnership c. sole proprietorship d. separate ownership

tenancy in partnership

Property owned by the partnership is actually owned by the individual partners as a?

tenancy in partnership

(3) 13. Three joint tenants share interest in a property. If one joint tenant's share is sold using the proper legal formalities, the new owner will then be a a. joint tenant with the other joint tenant's b. tenant in common with the other joint tenants c. tenant at sufferance d. remainderman

tenant in common with the other joint tenants

(12) 5. If a question arises as to the validity of a landlord's claim against a tenant's security deposit a. the landlord is presumed to be entitled to the security deposit b. the tenant is presumed to be entitled to the security deposit c. the security deposit is forfeited to the state d. there is no presumption regarding ownership of the security deposit

tenant is presumed to be entitled to the security deposit

(12) 12. Which may be considered in choosing a tenant a. Marital status b. National ancestry c. Whether the prospective tenant is on welfare d. Tenant's income

tenant's income

Those who rent or lease property from landlords are called ?

tenants

A trust created by the terms of a will to care for the decedent's children until they reach adulthood is called a?

testamentary trust

A person who dies leaving a will, is said to die?

testate

A person who makes a will is called a?

testator

(2) 4. Land disputes over the Spanish and Mexican land grants were settled by a. the Board of Land Commissioners b. the State of California c. the Spanish legal code d. taking all land for public use

the Board of Land Commissioners

The transfer of personal property by will is referred to as?

the bequest of a legacy

(4) 19. The transfer of title from grantor to grantee, and from that grantee to a subsequent grantee, and so on, is called a. a cloud on the title b. the chain of title c. delivery and acceptance d. an acknowledgment

the chain of title

(6) 16. The principal owes the agent a. only the duty of compensation b. the duty of obedience c. the duty of care d. the duties of a fiduciary

the duty of care

(2) 20. The point of beginning is used in a. the rectangular survey system b. the metes and bounds system c. the lot and block system d. all legal descriptions

the metes and bounds system

(5) 16. Al sold Blackacre to Betty, giving her an easement over Whiteacre. Years later, Al bought Blackacre back from Betty. What effect did his purchase have on the easement a. The easement stayed with Betty b. The easement is owned by Al c. The purchase terminated the easement d. The purchase had no effect on the easement

the purchase terminated the easement

(3) 16. A partner has a. an absolute right to use partnership property b. the right to assign partnership property c. the right to convey partnership property by will d. the right to possession of partnership property for partnership purposes

the right to possession of partnership property for partnership purposes

(2) 8. The sale of personal property generally is governed by the laws of a. the state where the personal property is located b. the state where the owner of the property resides c. any of the states d. the federal government

the state where the owner of the property resides

(2) 7. The sale of the real property generally is governed by the laws of a. the state where the real property is located b. the state where the owner of the real property resides c. any of the states d. the federal government

the state where the real property is located

(2) 2. The Treaty of Guadalupe Hidalgo ended a. the gold rush b. Spanish rule c. the war with Mexico d. the missions

the war with Mexico

Townships run north-south in groups called?

tiers

What are the 4 unities of joint tenancy? (TTIP)

time, title, interest and possession

(3) 11. Joint tenants have unity of a. interest but no possession b. title but no interest c. possession and title only d. time, title, interest, and possession

time, title, interest, and possession

(10) 16. A title plant consists of a. all possible title records b. a title company's lot books and general indexes c. recorded and unrecorded title information d. duplicates of county recorder's records

title company's lot books and general indexes

(14) 6. An architectural style in which homes share a common wall is called a. Colonial American b. Victorian c. Spanish d. a town house

town house

An item attached for use in a trade or business is called a?

trade fixture

What type of fixture remains the personal property of a business?

trade fixture

(8) 13. There is no right of redemption following a a. strict foreclosure b. trustee's sale c. judicial foreclosure d. mortgage foreclosure

trustee's sale

(8) 10. In a deed of trust, the borrower is the a. trustor b. trustee c. beneficiary d. holder

trustor

(15) 5. A property owner deprived by a zoning ordinance of the privileges enjoyed by owners of other property in the vicinity may apply for a a. conditional use permit b. variance c. master plan exception d. nonconforming use permit

variance

(14) 14. A brick or stone exterior finish is called a. glazing b. paneling c. veneer d. tile

veneer

(7) 8. Which is Not a way to terminate a contract a. rescission b. release c. verification d. novation

verification

The upper limit of percolating water below the earth's surface, at a depth of a few feet or hundreds of feet is called?

water table (groundwater level)

(11) 13. A gift is made a. by a donor to a beneficiary b. when an individual voluntarily transfers property for anything less than its fair market value c. any time property is transferred between parent and child d. when like kind property is exchanged

when an individual voluntarily transfers property for anything less than its fair market value

(10) 7. A real estate broker can serve as an escrow a. through associates b. with other brokers c. when he or she represents one of the parties to the transaction d. under a fictitious business name

when he or she represents one of the parties to the transaction

(5) 5. A notice of cessation is appropriate a. when work has stopped for 30 days b. when an improvement is complete c. at any time after the work is substantially completed d. after work has stopped for any number of days

when work has been stopped for 30 days

A document made by an owner of property who is legally competent to do so, to pass title to the property to another after death is called a?

will

(5) 4. When required, preliminary notice of intent to file a mechanic's lien should be given a. 90 days after notice of completion b. 60 days after notice of completion c. within 10 days of the starting time d. within 20 days of the starting time

within 20 days of the starting time

(8) 7. A holder in due course must take a negotiable instrument a. within 90 days of its execution b. with knowledge of all defenses against it c. without notice of any defense against its enforcement d. for cash

without notice of any defense against its enforcement

(4) 16. The court order following a judgment for money is a a. certificate of sale b. special limitation c. writ of execution d. trustee in bankruptcy

writ of execution

(5) 10. The sheriff is directed to sell property by a a. writ of attachment b. writ of execution c. satisfaction d. release

writ of execution

(12) 16. The sheriff or marshal can forcibly remove a tenant by a a. judgment of eviction b. writ of possession c. notice of eviction d. notice to pay or quit

writ of possession

(11) 16. Mario died in 2014, leaving only his separate property estate valued at $500,000. Must an estate tax return be filed a. Yes b. No c. Only if Mario was a widower d. Only if the estate is probated

yes

Is a life tenant responsible for mortgage interest?

yes