Real Estate Final Exam - 100 Questions

A Federal Estate tax return must be filed for any U.S. resident whose gross estate exceeds:

$10,000,000.

For about how much assessed value is the Homeowner's Property Tax Exemption?

$7,000

The "Purchase Agreement Package" includes which of the following forms?

-Disclosure Regarding Real Estate Agency Relationship -Buyer's Inspection Advisory -Wire Fraud and Electronic Funds Transfer Advisory

Which of the following forms are included in the "Listing Package?"

-Disclosure Regarding Real Estate Agency Relationship -Possible Representation of More than One Buyer or Seller - Disclosure and Consent -Wire Fraud and Electronic Funds Transfer Advisory

In order for victims of domestic violence to terminate a lease, they must provide the landlord a copy of a police report that a domestic violence report has been filed and a written:

30-day termination notice.

One-half of a section has how many acres?

320

How many square feet are in an acre?

43,560

How many square feet are in 1 acre?

43.560

The area of a rectangular lot that is 50 feet wide by 100 feet deep is:

5,000 sq. ft.

The salesperson exam requires what percent of correct answers to pass?

70%

What is the section in the Residential Listing Agreement (Exclusive Authorization and Right to Sell) that can entitle a broker to a commission even after the termination of the listing?

Safety Clause

If a buyer defaults on a conditional sales purchase contract (land contract), who would file a quiet title action to remove the cloud on the title?

Seller.

Which advisory form reminds the buyer and seller of the importance of investigating a property before the sale?

Statewide Buyer and Seller Advisory

A lien placed on more than one parcel, all parcels having the same owner, is known as a:

blanket encumbrance.

CC&Rs refer to:

covenants, conditions, and restrictions.

Depreciation can be:

curable incurable loss in value from any cause

If the prospective investor of real property is most concerned with making money off the usefulness of the improvements, he or she would be most concerned with:

economic life remaining in the improvements.

Real property subject to a lien is referred to as:

encumbered.

The term "EER" is used to measure:

energy efficiency (the higher the better)

The Real Estate Commissioner:

enforces the Real Estate Law.

What is the term used when a person leasing a property remains after the expiration of the stated term?

estate at sufferance.

If a property is to be returned to the grantor after a life estate is terminated, it is referred to as a(n):

estate in reversion.

Misuse of the real estate appraisal report or coercion of the appraiser are now:

federal felonies.

A real estate license for both salesperson and a broker must be renewed every:

four years.

An outdated kitchen would be an example of:

functional obsolescence

Zoning is under the control of:

government agencies.

The fundamental goal of the California Housing Finance Agency (Cal HFA) is to:

help minority buyers obtain financing for new home purchases.

The market data method (comparison approach) is the most common approach for:

houses condos vacant land

You enter a hardware store where you have an account, pick up a pair of $5.00 pliers, and wave them at the manager as you leave the store. This would be an example of a(n):

implied contract.

Real property consists of:

land and structures on the land anything incidental to the land anything appurtenant to the land

A mechanic's lien can be filed against a property by someone who has furnished which of the following services?

landscaping roofing plumbing

In a trust deed, the beneficiary is the:

lender.

Which of the following is a requirement of a lease?

length of lease amount of rent names of parties

An ownership interest in real property that only exists for the life of any designated person or persons (often the grantee) is called a(n):

life estate.

The type of misrepresentation which occurs least often in a real estate sale would be:

malicious misrepresentation

Which of the following would best describe an open listing?

nonexclusive

If the "exact" terms of the listing agreement are met, the listing broker is entitled to a commission, even if the:

owner refuses to sell to the buyer.

A month-to-month rental agreement is usually a:

periodic tenancy.

The current status of items from the county records affecting the property's title is called the:

preliminary title report.

Which of the following are considered non-institutional lenders?

private lenders mortgage companies credit unions

If a rental property is sold, the rents of the tenants are:

prorated in escrow.

An "REIT" is a:

real estate investment trust.

When an improvement is permanently attached to real property it becomes:

real property.

Which of the following is considered the most popular real estate brokerage websites?

realtor.com and zillow.com

The nominal interest rate is:

stated on the note

An agent who intentionally shows minorities homes for sale in a minority neighborhood only and refuses to communicate the availability of housing in other neighborhoods is guilty of:

steering.

An appraiser using the market approach collects many recent comparable sales. If a comparable property has a feature that is NOT present in the subject property, the estimated value of the feature is:

subtracted from the sales price of the comparable.

The "Pest Control Inspection Report and Certification" is also called the:

termite inspection.

The seller must provide the buyer of a condominium with:

the CC&Rs the bylaws a copy of the most recent financial statement

An agency is terminated by operation of law when:

the agency agreement expires the broker or seller dies the property is destroyed

The closing date is:

the date the documents are recorded.

The rate the borrower is actually paying (including interest, points, and loan fees) is called:

the effective interest rate.

A contract that is binding and enforceable in a court of law is said to be:

valid.

An oath or affirmation made before a notary public that the content of an instrument is true is called a(n):

verification.

The cost of approach is most effective:

with new, unique, or public buildings.

To be valid, a lease need NOT include the:

words "let or demise"

Which of the following is TRUE concerning negotiable instruments?

-They are easily transferable from one person to another. -Promissory notes are considered negotiable instruments. -The most common example of a negotiable instrument is a personal check.

Mello-Roos liens:

-require a seller and/or salesperson to disclose -are municipal bonds -usually fund street improvements

Which of the following is true about the salesperson's exam?

150 multiple choice questions lasts three hours and fifteen minutes requires 70% correct score to pass

When a residential tenant vacates a residential rental unit, the landlord has how long to return any unused portion of the tenant's security deposit?

21 calendar days

Escrows base monthly prorations on how many days?

30

Which of the following statements constitutes and example of progression?

A home of lesser value is worth more when located among homes of greater value.

Under the Department of Real Estate Commissioner's rules and regulations, which of the following would be required to have a written employment contract with a broker?

A real estate broker working for another real estate broker.

Which "American" title insurance is usually requested by lenders?

ALTA policy

The federal civil rights law that applies to people with disabilities and protects them from discrimination is the:

Americans with Disabilities Act

Which of the following is NOT a California starting point in the U.S. Government Survey system?

Baja Base Line and Meridian

The California Department of Veteran's Affairs loan program is commonly known as the:

CalVet Program.

The acronym "CLTA" stands for:

California Land Title Association

Which of the following is NOT an essential element of a real estate contract?

Cash

Which of the following is NOT a type of property lot?

Curb lot.

Which of the following is NOT a test to determine whether an item is a fixture?

Date of purchase

Of the following, who is permitted to purchase property in California without court approval?

Foreign persons (aliens)

Which of the following statements is FALSE concerning economic obsolescence?

It is due to wear and tear.

Which of the following is FALSE concerning a grant deed?

It is signed only by the grantee.

For all practical purposes, discrimination laws evolved from Title VIII of the Civil Rights Act of 1968, 13th Amendment to the U.S. Constitution, and the U.S. Supreme Court Case?

Jones v. Mayer

Other than the initial small deposit to open the account, when are money deposits the personal property of the broker?

Never

Which of the following is an important tax date to remember?

November 1 December 10 February 1

Which of the following is NOT one of the forces that affect the value of a neighborhood?

Past sales considerations

Which word best describes the effects of income taxes as your income increases?

Progressive

Which of the following is NOT usually prorated in escrow?

Title insurance

Which of the following is an example of a voluntary lien?

Trust deed.

The original housing law in California that deals with discrimination in business is called the:

Unruh Civil Rights Act.

A fee estate that is subject to particular limitations imposed by the grantor of the estate is called:

a fee simple defeasible estate

In real estate, the person who acts for and with the authority of another is called a(n):

agent.

When property is legally described using the U.S. Government Rectangular Survey System, the intersections of the north-south lines with the east-west lines are known as:

base lines and meridian lines.

When the Federal Reserve wants a "loose" money market, it:

buys back bonds lowers the discount rate lowers the reserve requirements of banks

If a landlord knows that there is a current bed bug infestation, he or she:

cannot show or rent vacant units.

A recorded public history of a specific property is called a:

chain of title.

A broker who mixes personal funds with his or her principal's funds is guilty of:

commingling.

Prior to receiving communication of its acceptance, a buyer can withdraw an offer:

in writing personally by registered mail

An incompetent person:

is of unsound mind cannot individually contract must have court approval to contract

An information booth is called a(n):

kiosk.

Noninstitutional lenders who usually lend their own money and then sell their loans to others and service the loans are called:

mortgage bankers.

A person who is authorized by the Secretary of State to witness the acknowledgement of documents is known as a(n):

notary public.

You are a landlord who discovers that one of your tenants is having new carpet installed in his apartment without your consent. To protect yourself, you should file a(n):

notice of non-responsibility.

The Fair Employment and Housing Act prohibits:

redlining.

When prices rise due to shortages of available properties, it is known as a:

seller's market.

The bottom portion lining a doorway or window is the:

sill.

A document given to a tenant stating that he or she must pay past due rent or vacate is known as a(n):

three-day notice to pay

A real estate professional who assists agents and brokers in the processing of a real estate transaction all the way through escrow is known as a(n):

transaction coordinator