Practice of Real Estate

A listing would most likely be: A - low market value. B - high market value. C - average market value. D - not related to market value.

B - high market value. Would most likely be listed at high market value as seller would most likely try to get maximum price for his property.

Any complaint as to the violation of the United States Civil Rights Act of 1968 should be filed within how many days of its occurrence? A - 180 days B - 365 days C- 30 days D - 90 days

B - 365 days An aggrieved person may file a complaint directly to a U.S. District Court within one year of the alleged discriminatory practice, whether or not a verified complaint has been filed with the Secretary of HUD.

Fire insurance should allow the policy holder to: A - gain in the event of a claim. B - make at least 4 claims before cancellation of the policy. C - neither gain nor lose in the event of a claim. D - keep his loss to no more than $100,000.

C - neither gain nor lose in the event of a claim. Insurance provides indemnification against loss from a specific hazard or peril. Most insurance policies contain a pro rata liability clause that prevents the owner from collecting a greater amount than the actual loss.

A husband and wife owned their home as joint tenants. The husband signed an exclusive authorization and right to sell listing agreement with a broker without disclosing the manner of title holding in the property and without his wife's signature on the listing. In the event of a commission dispute, the broker: A - may bring action to force the wife to sell her interest. B - may sue the husband separately in civil court for his commission. C - has no right to a commission because he failed to obtain the wife's signature on the listing. D - may bring court action against the community estate.

D - may bring court action against the community estate. The husband binds the community as statutory manager when he fails to disclose the joint tenancy holding.

Real estate syndicates have recently come under the jurisdiction of the Real Estate Commission. A real estate syndicate can operate as: A - all of the following. B - a real estate investment trust. C - a partnership. D - a corporation.

A - all of the following. Real estate syndicates may operate as partnerships, corporations, or real estate investment trusts.

A Caucasian person would have recourse to fair housing provisions under the Civil Rights Act of 1968 if denied the right to: A - have minority neighbors. B - attend the church of his or her choice. C - meet neighbors. D - choose neighbors.

A - have minority neighbors. The Civil Rights Act of 1866 prohibits discrimination based on race in all property transactions.

Any complaint as to the violation of the United States Civil Rights Act of 1968 should be filed within how many days of its occurrence? A - 180 days B - 365 days C - 30 days D - 90 days

B - 365 days The deadline for filing a federal administrative complaint with the United States Department of Housing and Urban Development (HUD) is one (1) year from the date of the last discriminatory incident. [Title 24 §103.35].

Of the following, which can be involved in the escrow as the escrow agent? A - Broker Betty who is selling her own property B - Broker Bob who represents the buyer in the transaction C - Broker Brown who is not part of the transaction, but would like to be the escrow agent D - Salesperson Sam who obtained the listing from the seller

B - Broker Bob who represents the buyer in the transaction A real estate broker licensed by the Real Estate Commissioner is exempt from the Escrow Law when performing acts in the course of or directly incidental to a real estate transaction.

The due date for the second installment of real property taxes is: A - December 10. B - February 1. C - March 1. D - April 10.

B - February 1. Second installment is due February 1, and delinquent if not paid on or before April 10.

How long must a structural termite report be held on file by the Structural Pest Control Board in Sacramento? A - One year B - Two years C - Three years D - Four years

B - Two years A termite report is not demanded by law, but if one is issued, it must be filed in Sacramento and kept on file for two years.

Insurance is: A - substitution of a certainty for an uncertainty. B - compensation in the event of a certain event. C - an agreement written by an insurance company. D - none of the above

B - compensation in the event of a certain event. Definition: Insurance is indemnification against loss from a specific hazard or peril.

A real estate broker negotiated the sale of a home. Title was deeded to the buyer. The broker must notify buyer and seller within 30 days, in writing, of the: A - amount of commission he received. B - selling price of the property. C - new loans against the property. D - disposition of deposits placed into his trust account.

B - selling price of the property. A broker must notify the buyer and the seller of the selling price within one month after completion of the sale. It is usually done by the escrow company.

Which of the following would have priority? A - A first deed of trust recorded March 14, 1992 B - A homestead recorded April 1, 1992 C - An assessment lien for street improvement, recorded April 5, 1992 D - An unrecorded mechanic's lien

C - An assessment lien for street improvement, recorded April 5, 1992 Government liens (assessment, property tax, etc.) have priority over all other liens.

Which of the following is a true statement? A - Since a broker is an agent, he may discriminate if his principal authorized it B - As of this date, there is no law against discrimination by an agent C - Businesses are precluded from discrimination against customers by the Unruh Civil Rights Act, and since a real estate office is a business, the broker cannot discriminate D - Discrimination is most effectively prohibited by N.A.R.'s Code of Ethics

C - Businesses are precluded from discrimination against customers by the Unruh Civil Rights Act, and since a real estate office is a business, the broker cannot discriminate The Unruh Act applies to a real estate brokerage because it is a business and may not discriminate against clients or customers.

Which of the following state agencies has the power to investigate and take legal action to prevent acts of discrimination in housing accommodations in California because of race, color, religion, national origin, or ancestry? A - Real Estate Commission B - Labor Commission C - Department of Fair Employment and Housing D - Division of Housing

C - Department of Fair Employment and Housing The Department of Fair Employment and Housing investigates housing discrimination complaints in California.

Of the following agencies mentioned, which has the authority to hear complaints of discrimination in housing? A - Real Estate Board B - Fair Relations Commission Board C - Department of Fair Employment and Housing D - Real Estate Commissioner

C - Department of Fair Employment and Housing Violations of discrimination in the sale, rental or financing of practically all types of housing are reported to the state Department of Fair Employment and Housing.

In a bankruptcy, which of the following debts would be dischargeable? A - Debts or creditors not listed on the schedules filed at the outset of the case B - Child support and alimony C - Gambling debts D - Most student loans

C - Gambling debts To the extent that gambling debts are legal and enforceable, they can be discharged in bankruptcy. That is because bankruptcy discharges ALL debts other than those specifically made non-dischargeable—and gambling debts are not among those exemptions.

When there is a case involving discriminatory practices taken against a principal and his agent, which U.S. Supreme Court decision is often cited as a precedent? A - Wilson vs. Shaeffer B - Smith vs. Bonnheim C - Jones vs. Mayer D - Title VIII

C - Jones vs. Mayer In 1968, the Civil Rights Act of 1866, was upheld by the United States Supreme Court in Jones v. Alfred H. Mayer Company, when the court ruled that the 1866 federal law "prohibits all racial discrimination, private and public, in the sale and rental of property."

A real estate licensee under Federal law should not take restrictive listings or advertise dwellings which suggest discrimination because of the: A - Code of Ethics. B - Rumford Act. C - Title VIII of the Civil Rights Act of 1968. D - Unruh Civil Rights Act.

C - Title VIII of the Civil Rights Act of 1968. Title VIII of the Civil Rights Act of 1968 and the Fair Housing Amendments Act of 1988, taken together constitute the Fair Housing Act, which prohibits discrimination based on rate, national origin, color, religion, age, sex, and handicap status.

During the escrow process, if an unresolved dispute should arise between the seller and the buyer preventing the close of escrow, the escrow holder may legally: A - arbitrate the dispute as a neutral party. B - rescind the escrow and return all documents and monies to the respective parties. C - file an interpleader action in court. D - all of the above

C - file an interpleader action in court. An interpleader action is a legal proceeding whereby an innocent third party (stakeholder - such as an escrow agent or broker) can deposit with the court the property or money that he or she holds, and which is subject to adverse claims such as when the buyer and seller are in dispute over the purchase contract.

In 1968, the United States Supreme Court handed down a decision in a case involving the matter of fair and open housing. The Supreme Court's decision upheld the Civil Rights Act passed by Congress in the year: A - 1942 B - 1948 C - 1868 D - 1866

D - 1866 Jones vs. Mayer prohibits discrimination based on race by upholding the 1866 Civil Rights Act and the 13th Amendment to the U.S. Constitution prohibiting slavery.

The Federal Open Housing Laws prohibit discrimination by parties in the sale of which of the following properties? A - A 25-unit apartment building B - A single-family residence purchased with government assistance C - A single-family residence sold by a real estate broker D - All of the above

D - All of the above The Federal Fair Housing Law (also known as the Federal Open Housing Law) pertains to all these properties.

Who enforces anti-discrimination and assures housing accommodations regardless of race, creed, or color? A - Real Estate Commissioner B - State Department of Housing C - State Department of Labor D - Department of Fair Employment and Housing

D - Department of Fair Employment and Housing The California Fair Employment and Housing Act (formerly the Rumford Act) prohibits discrimination in the sale, rental, or financing of practically all types of housing. Violations are reported to the state Department of Fair Employment and Housing.

Which of the following is true about the Real Estate Law? A - It is enforced in a court of law B - It is enforced by local real estate boards C - It is enforced by the California Association of Realtors D - It is enforced by the Real Estate Commissioner

D - It is enforced by the Real Estate Commissioner The license law is only effective if it can be enforced. The Commissioner can only investigate non-licensed persons, but can discipline licensed persons.

Upon inspection, a pest control company finds no evidence of termite infestation. However, they do find conditions which may lead to infestation. Whose responsibility is it to pay for correcting these conditions? A - The seller in all cases B - The buyer in all cases C - The seller and the buyer, each paying half D - The buyer, only if he chooses to have the condition corrected

D - The buyer, only if he chooses to have the condition corrected The seller is responsible only for termite damage present at the time of inspection. Any preventative action is the responsibility of the buyer.

Which of the following covers Federal Fair Housing laws? A - Rumford Act B - 13th Amendment to the U. S. Constitution C - Unruh Civil Rights Act D - Title VIII, Civil Rights Act of 1968

D - Title VIII, Civil Rights Act of 1968 The Rumford Act is the State Fair Housing Law.

If you were asked to prepare newspaper ads for a home in a nice quiet area, $500,000 price range, you would appeal to: A - prestige. B - higher income families. C - pride of ownership. D - all of the above

D - all of the above Opinion answer of the state exam. We agree with their answer.

A broker refuses to sell property to an individual because of his color. His action is: A - unethical. B - illegal. C - against public policy. D - all of the above

D - all of the above Reference the NAR Code of Ethics and the Fair Housing Act.

If a person is in violation of the Rumford Act in refusing to sell property to a minority person, he could be made to: A - pay $1,000 in damages. B - sell the property to the individual if it is still available. C - sell a similar type property if he has a similar property for sale. D - any of the above

D - any of the above The Rumford Act is also known as the California Fair Employment and Housing Act.

Informing a person that he should sell his property because non-whites are moving into the area, decreasing property values, can be expressed by all of the following except: A - blockbusting. B - panic selling. C - illegal conduct. D - legal conduct.

D - legal conduct. Situation describes blockbusting which causes panic selling and is illegal.

A broker had signed an agreement with an investor who was interested in a certain property. The broker, determined that she could purchase this property for less than her principal was willing to pay, purchased the property and later sold it to the principal at a profit. This constitutes: A - commingling. B - fraud. C - conversion. D - secret profit.

D - secret profit. This is a good example of secret profit.

Commingling is most opposite to: A - trust fund. B - mingling. C - neutral depository. D - segregate.

D - segregate. Commingling is mixing. The opposite would be to segregate (keep separate).

You must have a real estate license if you are: A - selling your own property. B - subdividing your property. C - appraising property for a fee. D - soliciting a listing from a seller.

D - soliciting a listing from a seller. The other three choices would not need a real estate license.