Real Estate Principles
When inspecting a seller's home, the agent discovers several physical defects that the agent fails to disclose to the buyer. The buyer can file civil action against the agent for up to
2 years.
How much time, after the buyer signs the loan application, does the lender have to provide a good faith estimate of closing cost (RESPA requirement)
3 business days
With the exception of the mortgage disclosure form, which must be kept longer, transaction files of all the important brokers and salesperson documents concerning a property must be kept for how long?
3 yrs
The current award for liquidated damages on a purchase agreement form is a maximum of:
3% of the home purchase price
A legal document that informs the tenant that he/she has three straight days to pay all past due rent, vacate the premises or face an unlawful detainer court action is known as a(n):
3-day notice to pat rent or quit
Escrow base monthly proration on how many days?
30
one-half of a section has how many acres?
320
How many sections are in a township:
36
The salesperson exam requires what percent go correct answers to pass?
70%
A lease for a property in a town or city can be for any predetermined time, up to how many years?
99 years
With regards to zoning, what does the symbol "R" usually designate:
Residential areas
A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is known as a(n):
acceleration clause
The owner of property adjacent to the water flow can acquire title to additional land by:
accession
Which of the following is FALSE concerning purchase agreement contracts?
Promissory notes and post-dated checks are never acceptable as consideration
Which of the following is NOT a California starting point in the US government survey system?
baja base line and meridian
A township consists:
a 6-mile by 6- mile square of land & 36 square miles
If one of the parties doesn't go through with a contract(nonperformance) it is called:
a breach
The truster is also known as the:
borrower
The only party who can require a specific title insurance company is the:
buyer
Any escrow amendment must be signed by the:
buyer and seller
Demand sources for real estate loans include loans for:
buying property refinancing construction
The lower the loan value the ration the greater the:
down payment
The lower the loan-to-value ratio, the greater
down payment
Misuse of the real estate appraisal report or coercion of the appraiser are now:
federal felonies
The two major types of freehold estates are:
fee simple and life estate
Zoning is under the control of:
government agencies
A quick way to convert gross income into the approximate value is to use a:
gross rent multiplier
An owner can deduct a "loss" on the sale of residential property if that property:
has been converted into rental property
If a contract is said to be "executory" it:
has not yet been performed
Zoning laws are made to control the use of private property for the protection of the public's :
health safety welfare
A person who takes a negotiable instrument from another with no knowledge of defect is called a(n):
holder in due course
An incompetent person:
is of unsound mind cannot individually contract must have court approval to contract
If property taxes are NOT paid by June 30, the property :
is sold to the state starts a 5 year redemption period remains undisturbed for 5 years
When do property taxes become a lien(before the fiscal year starts)?
jan 1
Which word best describes the effects of income taxes as your income increases?
regressive
If you sell your house, how do you determine your gain and loss?
subtract adjusted cost basis from adjusted sale price
Which of the following is TRUE about the salesperson's exam?
150 multiple choice questions lasts 3 hours and 15 minutes requires 70% correct score to pass
Approximately how many acres are there in a lot 1/2 miles by 1/2 miles?
160
Each year property taxes in California (prop 13)are allowed to increase by what percentage?
2%
How many principal base and meridian line intersections does California have?
3
How much time after the buyer signs the loan application does the lender have to provide a good faith estimate of closing costs:
3 business days
In California, a notice to vacate an "estate at will" (rental agreements) requires how many days notice?
30
Proration of expenses and income is based on a month with:
30 days
When a tenant has lived on a property for less than one year how many days notice is a landlord required to give to terminate a month-to-month lease?
30 days
A township contains:
36 sq miles
A real estate license for both a salesperson and a broker must be renewed every:
4 yrs
How many sq ft are in an acre?
43,560
one acre equals:
43,560 sq feet 4,840 sq yds
One acre equals:
43,560 sq ft 4,840 sq ft
How many sq ft are in 1 acre?
43560
How many hours of Commissioner approved continuing education must a sales person or broker have in order to renew his or her 4 yr license?
45 hours
An Easement by Prescription requires which of the following to be valid?
5 yrs continuous use Open and notorious use Hostile use
The documentary transfer tax is charged on money borrowed or cash dawn payments at the rate of:
55 cents per $500
A section consists of how many acres>
640
When a project of improvement on real property has been completed and the owner has not filed a "notice of completion," how many days do claimants have to file mechanics liens?
90 days
Which of the following statements constitutes an example of progression?
A home of lesser value is worth more when located among homes of greater value.
In addition to the FHA, a mortgage loan may be insured by:
A private mortgage insurance
Which of the following would have the least impact on property taxes?
A recorded homestead.
What license is NOT issued by the Bureau of Real Estate?
Alcoholic Beverage License
With what type of cause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property?
Alienation clause
With what type of clause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property?
Alienation clause
An encumbrance:
Burdens the property
The basic line insurance policy is the:
CLTA
A property purchased by a veteran must have what type of appraisal?
CRV
A property, to be purchased by a veteran, must have what type of appraisal?
CRV
The California Department of Veteran's Affairs loan program is commonly known as the:
CalVet program
The group, through its leader, that regulates real estate transactions is called the:
California Bureau of Real Estate
The acronym "CLTA" stands for:
California Land Title Associated
The portion of the Business and Professions Code that refers to licensing and subdivisions is called:
California Real Estate Law
According to generally accepted practices an escrow agent is authorized to:
Call for buyers documents and funds
What differentiates an estate for years from an estate from period to period is that an estate for years:
Can be terminated at any time
Which of the following is NOT an essential element of a contract:
Cash
When a broker has mixed the funds of his or her principal with his or her own money, it is called:
Commingling
The approach that takes the current selling prices of similar properties and adjusts these prices for any differences is called:
Comparative approach
Which of the following is NOT a requirement of a valid escrow?
Confirmation of citizenship
Which of the following is not a test for a fixture?
Cost and size of the item
Which of the following is used to change the original terms of the purchase agreement?
Counter offer form
The first installment of property taxes is due on nov 1. when is it delinquent?
Dec 10
A written instrument that conveys and evidences title is called a(n):
Deed
A deed does NOT take effect until it is:
Delivered and accepted
Which of the following is NOT considered a "demand area"?
Demolition
Minimum requirements of a lease include which of the following?
Description of the property Amount of rent Length or duration of the lease
Selling an apartment:
Does not terminate a tenant's lease
Which of the following is NOT a lien:
Easement
An easement that is "created for and beneficial to" the owner of adjoining or attached lands is which type of easement:
Easement appurtenant
An easement that is "created for and beneficial to" the owner of adjoining or attached lands is which type of easement?
Easement appurtenant
Which type of depreciation always incurable meaning nothing can be done?
Economic obsolescence
An interest, share,right or equity in real estate that varies from the minimal right of a renter to the maximum right of full owner is called a(n)
Estate
If a tenant does NOT leave after the expiration of the lease and retains possession, what has occurred?
Estate at sufferance
What is the term used when a person leasing a property remains after the expiration of the stated term?
Estate at sufferance
Which of the following is a type of freehold estate?
Estate in fee
If a property is to be returned to the grantor after a life estate is terminated, it is referred to as:
Estate in reversion
In what type of listing is the broker competing with the owner?
Exclusive agency listing
An agreement that is made either verbally or in writing is now as a(n):
Expressed contract
Banks in California are insured by the:
FDIC
Banks in California, are insured by the:
FDIC
A Fiduciary relationship requires which of the following with the principal?
Honesty loyalty integrity
A copy of the listing agreement must be given to signing party:
Immediately after it is signed
Which of the following can discharge a contract?
Impossibility of performance Full performance Operation of law
The term "express contract" describes a contract of which is expressed:
In words, either oral or written.
Which appraisal method measures the present worth of future benefits?
Income approach
Which of the following is a court order restricting a party from doing an act such as violating private deed restrictions?
Injunction.
P X R X T=
Interest
The California Fair Employment and Housing Act is also known as the:
None: Unruh Civil Right Open housing law Federal Civil Rights Act of 1968
Which of the following would best describe an open listing?
Nonexclusive
Ranges are 6 miles increments measured (and described) from the north-south meridian running:
North and south
What document does a trustee record after being notified by the lender of the truster's nonpayment?
Notice of Default
Who can petition for zone changes?
Owners Subdividers Government Agencies
If Bob places improvements and permanent fixtures on property, thus clearing a lien from the record, is known as:
Satisfaction of judgment
When determining the starting time for a mechanic's lien, it is important to know when the work began, known as the:
Scheme of improvements
The United States Government Survey system has to do with:
Sections and townships
Which of the following real estate terms best describes mortgages and trust deeds?
Security devices
In a real estate transaction, the grantor is the:
Seller
Which of the following is NOT a duty of the escrow company?
Selling title insurance
A utility company obtains an easement in gross to run power lines over your property. As a result, your property would become a:
Servient tenement
In California, what is the usual method of forcing someone to sell property to pay off a judgement?
Sheriff's sale
Local improvements, like street lights and sewers, are paid for by property owners through:
Special assessments
Reports disclosing presence of wood destroying organisms are obtained from the:
Structural Pest Control Board.
Coordinating subdivision plans and insuring that subdividers comply with the city or county's master plan is the objective of the:
Subdivision Map Act
If a buyer and seller enter in a valid binding contract and one of the parties dies or becomes incompetent, the contract is:
Valid if it was signed before the party died or became incompetent.
Which of the following is NOT a test to determine whether an item is a fixture?
Value of the item
Which is considered real property?
Vegetation
A contract based on an unlawful consideration is:
Void
Depreciation can be:
curable insurable loss in value due to any cause
Which of the following is not a type of property lot?
curb lot
which of the following is not considered a demand area:
demolition
A homeowner can deduct from income taxes all the items listed below except:
depreciation
A table that illistrates how the highest value is located in front part of the lot is called a:
depth table
Annual straight- line depreciation is determined by:
dividing improvement cost by years
The standard coverage CLTA title insurance policy is most often used and protects against:
invalid deed delivery unrecorded federal tax liens forgeries
With regards to a subdivision, if the Real Estate Commissioner wanted to stop sales or any violations, he or she would:
issue a desist and refrain order
Which of the following statements is FALSE concerning economic obsolescence?
it is due to wear and tear
Which of the following is false concerning the APR:
it is expressed as a weekly rate
Which of the following is FALSE concerning a grant deed?
it is signed only by the grantee
When 2 or more people have identical interests in the whole property with the same right of possession and the right of survivorship it is called:
joint tenancy
When two or more people have identical interests in the whole property with the same right of possession and the right of survivorship it is called:
joint tenancy
The least desirable lot, bordered on the side by the backs of lots that front on a(n):
key lot
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 and someone who has furnished which of the following services?
landscaping roofing plumbing
Which of the following is NOT a type of depreciation:
political
Which of the following is NOT a type of depreciation?
political
When a landlord discovers that work is being done on the property without the landlord's consent he or she should:
post a Notice of Non-Responsibility on the property
When a landlord discovers that work is being done on the property without the landlord's consent he/she would:
post a Notice of Non-Responsibility on the property
If a real estate agent advises a buyer how to take title to real property, he/she may be liable for:
practicing law, giving tax advise, discrimination
A written notice that should be given within 20 days of supplying labor or services, and before filing a mechanic's lien, is known as a:
preliminary notice
The current status of items from the county records affecting the property's title is called:
preliminary title report
The first step in a title search is for the escrow officer to order a:
preliminary title report
which of the following is considered an institutional lender:
bank
Should the truster default, the trustee may have to sell the property for the:
beneficiary
A lien placed on more than one parcel, all parcels having the same owner, is known as a:
blanket encumbrance
A voluntary lien, for money owned, placed over more than one parcel is called a:
blanket encumbrance
With regards to the closing escrow statement, the seller's and buyer's respective totals:
can be different
Another term for the income approach is :
capitalization approach
Another term for the income approach is:
capitalization approach
A manufactured home is transferred with a:
certificate of title
A recorded history of a specific property is called a:
chain of title
A recorded public history of a specific property is called a:
chain of title
Which of the following non-profit organization's real properties are usually exempt from property taxes?
charitable religious medical or educational
Mixing the funds of a principal and a licensee is known as:
commingling
When a real estate salesperson mixes his/her personal funds with the deposit of a client, its called:
commingling
All property acquired by a husband and wife during their marriage other than separate property is called:
community property
Property acquired by a husband and wife during marriage and is split 50/50 is called:
community property
The approach that takes the current selling prices of similar properties and adjusts these prices for any differences is called the:
comparative approach
In a contract, anything of value given by one party to make the agreement binding is known as:
consideration
The amount of rent stated in the rental agreement is the:
contract rent
CC&Rs refers to:
convents, conditions, and restrictions
An escrow holder can be a(n):
corporation attorney real estate broker
Which of the following is NOT one of the three methods to determine the value of real property?
correlation approach
Which of the following is not one of the four essential elements of value:
cost
If seller Garcia accepts an offer but changes its terms, seller Garcia has made a(n):
counter offer.
A title company could make a title search by searching the record of the:
county clerk's office county recorder's office federal lands office
in a sellers market decreases supply and increased demand causes:
prices to rise
In a seller's market, decreased supply and increased demand causes.
prices to rise.
The person who hires or employees an agent to work for his or her is known as a(n):
principal
Which of the following are considered non-institutional lenders?
private lenders mortgage companies credit unions
The principal that states that the value of the best property in a neighborhood will be adversely affected downward by the value of the many lessor properties is known as :
regression
If a buyer defaults on a conditional sales purchase contract (land contract) who could file a quiet title action to remove the cloud on the title?
seller
The 1% loan fee on FHA loans is usually paid by the:
seller
When prices rise due to shortage of available properties, it is known as a:
sellers market
Which of the following does NOT require a real estate license:
selling your own real estate
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
Eminent domain allows the government to:
take private property for compensation
The lessee is the:
tenant
Of the following, which most nearly means the same thing as "rescind"?
terminate
Impound accounts are NOT used to pay:
interest
For income tax purposes you may deduct what portion of your house payment?
interest only
The term that best describes a construction loan is an:
interim loan
The Housing Financial Discrimination Act prohibits:
redlining
What is NOT an example of functional obsolescence?
Hole in the roof
Which type of will, unless signed with an "X", requires NO witnesses?
Holographic
Which of the following is an example of economic obsolescence?
Rundown neighborhood
Appurtenant means the ownership of the item:
Runs with the land
Personal Property that is Permanently affixed to real property is called?
a fixture
A written contract between two parties is:
expressed and bilateral
Zoning is police power that controls the:
use of property
A contract that is binding and enforceable in a court of law is said to be:
valid
Which of the following is a classification of a contract?
valid unenforceable voidable
Some of the ways in which contracts may be classified include:
valid voidable void
An oath or affirmation made before a notary public that the content of an instrument is true is called a(n):
verification
What do we call the wood lining no the lower portion on an interior wall with the upper portion wall papered or covered with another material different from the lower portion:
wainscoting
"Potable Water" refers to:
water suitable for drinking
The cost approach is most effective:
with new unique or public buildings
RESPA requires that the buyer be notified of closing costs:
within 3 bs days after escrow closes
To be valid, a lease need NOT include the:
words "let or demise"
Which legal document allows a sheriff to physically evict a tenant:
writ of possession
Depreciation for tax purposes is a yearly tax deduction on the taxpayer's income tax form. Which of the following is NOT acceptable for depreciation?
your owner occupied residence
The restriction on the use of private property by the local government agency is called:
zoning
Once recorded, a judgment is good for:
10 yrs
A lien(money owed) on real property makes the property:
Encumbered Easements
Which of the following is NOT considered a basic element of a contract?
Enforcement
What term refers to the amount is left after deduction what is owed on a property from the market value of the property?
Equity
What term refers to the amount left after deducting what is owed on a property from the market value of the property?
Equity
A woman CANNOT receive title to real property by:
Escheat
Which party usually is responsible for sending notification of the sale of a single-family residence to Internal Revenue System(IRS):
Escrow Officer
Of the following government backed loans, which is insured?
FHA
Of the following government loans which is insured:
FHA
A farm 6 miles sq has how many townships?
1
Which of the following is TRUE concerning the salesperson's exam?
150 multiple choice questions
A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:
"subject to" provision or contingency clause
The homeowner"s property tax exemption will reduce an assessed valuation of $200,000 to:
$193,000 ($7,000 exception)
How much of a broker's personal funds can be kept in his or her trust account without being guilty of commingling?
$200
A single person can avoid paying capital gains tax on up to what amount of profit from the safe od a residence?
$250.000
As of 2014 a Federal Estate Tax return must be filed for any US resident whose gross estate exceeds:
$5,000,000
The total liability of the recovery fund in any one transaction is:
$50,000
Which of the following is FALSE concerning the broker's exam?
$500 fee
A married couple can exclude from taxable income up to what amount of profit from the sale of a residence?
$500,000
If you made a 17% profit on the $76000 sale of a lot, how much did you pay for the lot?
$63,080
For how much assessed value is the homeowner's Property Tax Exemption:
$7000
a lender changed an origination fee, which includes points, 1 point is equal to:
1 % of the loan amount
A lender changes an origination fee, which includes points. One "point" is equal to:
1% of the loan amount
Which of the following is FALSE concerning real estate commissions?
A salesperson received compensation(his or her commission) directly from the principal
Which of the following statements is FALSE?
A trust deed is an instrument used to transfer personal property
If a tenant just moves out or vacates the premises without formal surrender and never returns it is called:
Abandonment
Which of the following is NOT one of the basic appraisal principals:
Accession
A property owner living on a river bank acquires land due to the shifting of the river. This process is called?
Accretion
A signed or verbal statement by the named person that he or she signed that document of his or her own free will is known as:
Acknowledgement
A signed or verbal statement by the named person that he/she has signed that document of his/her own free will is known as:
Acknowledgment
Land owner Jacobs granted the telephone company the right to erect telephone poles on his land. Which of the following best describes this situation?
An encumbrance
Which of the following is considered an institutional lender?
Bank
You promise to pay a painter $2,000 to paint your house and the painter agrees to do it. What type of contract is formed?
Bilateral contract
The ownership of personal property is transferred by using a
Bill of Sale
Which of the following can transfer ownership of trade fixtures and personal property?
Bill of Sale
A voluntary lien placed over more than one parcel is known as a(n):
Blanket encumbrance
A false advertisement (Section 10177 of the Business and Professions Code) that gives the impression that the agent is the owner of the property is called a:
Blind advertisement
Any net cash or net mortgage relief that a participant in an exchange might receive in addition to actual property is known as:
Boot
In Northern California, the buyer usually pays for escrow fees. Who usually pays for them in Southern California?
Both
Which of the following is needed to transfer property deeded "Mary Smith, a married woman"?
Both husband and wife's signature
Seller signed a 90-day exclusive right to sell listing with Broker Able. When the listing expired, Seller gave an open listing to Broker Baker and Broker Charlie. Three weeks later Broker Baker presents an offer to the seller which he accepted. Which of the following is most correct?
Broker Baker is the procuring cause of the sale and is entitled to a full commission.
Which of the following is NOT normally prorated?
Broker's commission
Which of the following is NOT a required document in a personal property security transaction?
Federal Tax Return
Which of the following liens are NOT eliminated by a foreclosure sale?
Federal tax liens State, county, or city assessments State, county or city taxes
Items that are commonly prorated in Escrow include:
Fire insurance, rents, interest
A broker who knowingly makes a statement he or she knows is false at the time, or who fails to disclose material facts, is guilty of:
Fraudulent misrepresentation
The measure of the total value of production (goods and services) in the US is called:
GDP
the measure of total value of producation(goods in services) is called:
GDP
A judgement is best described as a(n):
General lien
What type of fixed interest loan has payments that start out lower and gradually increase?
Graduated payment mortgage
Which of the following is NOT a party to a trust deed?
Grantor
Emblements are usually?
Growing crops cultivated annually one leased land by tenant farmers
If from the ridge board, the highest point of the roof, a roof slopes downward in four direction, it is referred to as a:
Hip roof
Which of the following is FALSE concerning the APR?
It is expressed as a weekly rate
Of the following, which is NOT true of a grant deed?
It is used primarily to clear a "cloud on title" from the record
Which of the following is most correct about "puffing?"
It may be misrepresentation if a reasonable person considers it a "statement of fact."
What distinguishes a will from other types of property transfers?
It only becomes effective at death
What is always true about a counter offer?
It terminates the previous offer
Dick and Jane, brother and sister, own an apartment building in joint tenancy. Dick needs $10,000 to cover unexpected medical expenses, so he borrows the money from a lender and signs a trust deed on the property that was soon recorded in the public records. Forty-five days later. Dick dies. Which of the following is most correct?
Jane now owns the apartment building free and clear of her brother's $10,000 debt.
What type of ownership has definite rights of survivorship?
Joint Tenancy
Time, title, interest, and possession are the four essential unities of a:
Joint tenancy
What federal case in 1968 upheld the 1866 Civil Rights Act?
Jones v. Mayer
Federal discrimination laws evolved from:
Jones v. Mayer Title VIII of civil rights act of 1968 13th amendment to the US constitution
When selling his home to John, Bert negotiated a leaseback arrangement in order to continue renting and occupying the property for the next two years. John immediately placed the unrecorded grant deed into a safe deposit box for ultimate security. Two days later, Bert "sold" the home a second time to Julie who promptly recorded her deed. Which of the following is most correct?
Julie is the likely owner of the property because she recorded her deed first.
An exclusive right to occupy and use property on a temporary basis is known as a(n):
Leasehold
"The right to use a property for a specific period of time" describes a:
Less-than-freehold estate
Which of the following is NOT a type of leasehold estate?
Life estate
The greatest source of shopping center financing is:
Life insurance companies
With a life estate, the ownership interest is limited to the:
Life of any designated person or persons
A notice of pending lawsuits that clouds title is called:
Lis pendens
The percentage of the appraised value that the lender will loan to the borrower to purchase a property is called:
Loan-to-Value ratio(LTV)
A "REALTOR" is a member of which trade association(s)?
Local Board of REALTORS California Association of REALTORS National Association of REALTORS
What provision in an instrument of finance would permit a change in the priority of liens on a property?
MPR provision
FHA and VA requirement that are often more restrictive than the building codes are called:
MPRs
FHA and VA requirements that are often more restrictive than the building codes are called
MPRs
Which appraisal method uses the principle of substitution?
Market data approach
Regulatory authority of the housing and construction industry is NOT accomplished through:
Mello-Roos bonds
Municipal bonds issued to fund street, sewers and other infrastructures needs before a subdivision is built and paid by the purchaser are called:
Mello-Roos liens
Which method of land description is the oldest and least reliable?
Metes and Bounds
FHA backed loans are protected by:
Mortgage Insurance Premiums (PMI)
Non institutional lenders who usually lend their own money and then sell their loans to others and service the loans are called?
Mortgage bankers
FHA backlogs are protected by:
Mortgage insurance premiums
The Real Estate trade association whose members are known as Realists is the:
National Association of Real Estate Broker's
According to the Business and Professions Code 10176, which of the following is NOT grounds for license revocation or suspension?
No commission earned for a year
Any licensee working in the real estate field must be a member of which group?
None
Seller Skinner signed a 90-day exclusion right to sell listing with Broker Bill. Two weeks later, Skinner cancelled the listing with Bill and gave an open listing to Broker Carl and another open listing to Broker Paul. Three weeks later, Paul presented an offer to Skinner that the seller accepted. Which of the following is most correct?
Paul is entitled to a full commission and Bill is entitled to a full commission as well.
If a retail store rents for $5,000 a month or 12% of the gross sales, the tenant has what type of lease?
Percentage lease
The term "Bill of Sale" is most commonly associated with:
Personal Property
A "Bill of Sale" transfers title to:
Personal property
The seller of a 10 year old condominium must provide the buyer all the following except:
Pink Public report
Which of the following is NOT a method of creating real property?
Plug it in
A broker tries to sell a listed property through his or her own company's agents before giving it to an MLS. This is called a:
Pocket listing
A woman purchases an adjacent lot to the one she already owned this is known as :
Pottage
A written notice that should be given within 20 days of supplying labor or services and before filing a mechanic's lien, is known as a:
Preliminary notice
Someone using another person's land continuously, without paying any property taxes might qualify to obtain an easement, or legal right to use the land, according to:
Prescription
Which of the following would be considered operating expenses to be subtracted from the gross income of a property when determining its value through the income capitalization approach?
Property taxes
Which is the process of proportionately dividing expenses or income to a precise date?
Proration
"QR code" stands for:
Quick Response Code
Which of the following is a document conveying title with NO warranties, expressed or implied?
Quitclaim deed
Which of the following restrictions is illegal and unenforceable?
Race
A sale of a business (business opportunity) by a real estate agent can include which of the following?
Real Estate Personal property Goodwill
Who has the power to revoke, restrict, or suspend a real estate license?
Real Estate Commissioner
An "REIT" is a:
Real Estate Investment Trust
Anything permanently attached or affixed to the land is called:
Real Property
In addition to the broker's license, what type of endorsement must a broker have to sell promissory notes or sales contracts?
Real Property Securities Dealer (RSPD)
Which of the following is FALSE concerning real estate licenses?
Real estate licenses are valid for the life of the licensee
in addition to the broker's license what type of endorsement must a broker have to sell promissory notes or sales contracts:
Real properties securities dealer
The initials RSS refer to:
Really Simple Syndication
What is the main advantage of using digital real estate forms?
Recurring information can be inserted into other related forms.
Trade fixtures are:
Removable Forms of business furniture Personal Property
A buyer will not pay more for a particular property if he or she can buy an equally desirable one for less according to the principal of :
Substitution
Novation is:
Substitution of a new contract for a new one.
Which of the following is NOT a basic right of ownership included in the "Bundle of Rights"?
Sustainability
Which of the following is NOT a basic right if ownership included in the "Bundle of Rights"?
Sustainablility
Who appoints the Real Estate Commissioner?
The governor
With regards to depreciation of real property, which of the following is TRUE according to income tax law?
The land cannot be depreciated but the improvements can
Susie owns a life estate based upon her own life. She leases the property to a tenant on a 3 yr lease. Susie dies 2 yrs later. What happens to the lease?
The lease is terminated
Susie owns a life estate based upon her own life. She leases the property to a tenant on a three-year lease. Susie the tenant dies two years later. What happens to the lease?
The lease is terminated
Which of the following will terminate an easement?
The owner of the dominant tenement records a quitclaim deed.
Property is defined as:
The rights or interests that a person has in the thing owned
Who is responsible to disclose any Mello-Roos bonds or assessments to a homebuyer?
The seller.
Which of the following is TRUE concerning fee appraisers?
They are self- employed
Which of the following is FALSE concerning options?
They can be revoked at any time by the seller without penalty
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 required form, provided by the seller, which identifies items of value attached to the structure or land and states whether these items are operational is called:
Transfer Disclosure Statement
What do we call a borrower who secures a loan through a trust deed?
Trustor
Which system may be used for legal description purposes?
US government survey Metes and bounds lot, block, and tract
An easement that does NOT specify a special area for a right-of-way is known as a(n):
Unlocated easement
Which of the following requires NO cash down payment on loans up to $417,000?
VA
Which of the following requires no cash down payment on loans up to 417,000?
Va loans
Any individual who wants to operate a real estate office must have:
a broker's license
Proration of prepaid taxes is:
a debit to the buyer
What do we call a series of changes brought about by a chain of events:
a development
A fee estate that is subject to particular limitations imposed by the grantor of the estate is called:
a fee simple defeasible estate
Which of the following is an example of a freehold estate?
a life estate
In addition to the FHA, a mortgage loan may be insured by
a private mortgage insurance (PMI)
A loan secured by personal property usually consists of
a security agreement
When a person temporarily rents out an apartment on which he or she holds a lease, it is called :
a sublease
A tenancy at sufferance would occur when:
a tenant remains in the property after expiration of a lease without the owners consent.
A remedy for breach can be:
a unilateral rescission an action for damages an acceptance of breach
The best way to establish an agency relationship is through:
a written agreement
Which of the following is NOT one of the basic appraisal principles?
accession
When a seller grants the right to sell and the broker agrees to use diligence in obtaining a purchaser, this is called:
agency.
Most lenders require buyers(owners) to obtain an extended title insurance policy, known as:
an ALTA policy
A real estate auction where the property must be sold to the highest bidder, no mater how low the final bid, is called:
an absolute auction
A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is known as:
an acceleration clause
An area of land that contains 43,560 sq feet is called:
an acre
An area of land that contains 43,56o sq feet is called ?
an acre
A commercial acre is:
an acre less the amount of land dedicated for public improvements
In real estate, the person who acts for and with the authority of another is called:
an agent
Which of the following is an encumbrance that affects the physical use of the real property?
an easement a building restriction an encroachment
A wrongful unauthorized placement of improvements or permanent fixtures on a property by a non-owner of the property is called?
an encroachment
A seven year lease would be considered:
an estate for years, personal property and chattel real.
The following could be used by a buyer as earnest money deposit in purchasing real property: a promissory note secured by a deed of trust; a postdate check:
an unsecured promissory note
A Transfer Disclosure Statement is required for the sale of:
any residential property
Consideration can be best described as:
anything of value
The broker in a large real estate office dies. All listings:
are automatically cancelled and the new broker would need to re-list the properties.
A licensee is required to tell the parties involved whom he or she represents?
as soon as possible
A transfer of an ENTIRE lease from one person to another is known as a(n):
assignment
Compared to ordinary income tax rates, capital gains are taxed:
at a lower rate
A city tax on a real estate brokerage firm's gross receipt is called a:
business license tax
In a sale of an existing business (Business Opportunity) the real property is transferred:
by deed
If the time of closing is not specified, escrow will close:
by mutual consent
The best way to create an agency relationship is:
by written agreement
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 improvement
A person who works under the direct control and supervision of the employer is known as a(n):
employee
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
An interest, share, right, or equity in real estate that varies from the minimal right of a renter to the maximum right of full owner is called a(n):
estate
An estate where a tenant continues to retain possession without the landlord's consent, after the expiration of the lease term is called a(n):
estate at sufferance
A lease is usually a(n):
estate for years
The legal process of moving a tenant because there is a breach of the lease or rental agreement is called a(n):
eviction
The best term to describe the relationship between the broker and the principal is:
fiduciary
The Real Estate Commissioner's Official Report is the:
final subdivision public report
The standard fire insurance policy insures against which perils?
fire and lightning
Items of personal property that are attached or incorporated into the land in such a manner as to become real property are called:
fixtures
items of personal property that are attached to or incorporated into, the land in such a manner as to become real property are called:
fixtures
A purchaser must read a final public report and sign a receipt for it> How long must the subdivider keep this required receipt?
for three years
Of all the following, who is permitted to purchase property in California without court approval?
foreign persons (aliens)
When a person misrepresents a material fact, knowing that it is not true, or carelessly indifferent to the truth of the stated facts, it is known as:
fraud
All of the following real estate terms are closely related except:
frontage
An outdated kitchen would be an example of:
functional obsolescence
Loss of value due to outmoded style or non-usable space is called:
functional obsolescence
A person who takes a negotiable instrument from another with no knowledge of defect is called a:
holder in due of course
The market data method(comparative approach) is best used for:
houses. condominiums vacant land
Real property is best described as:
immovable
You enter a hardware store where you have an account, pick up a pair of pliers and wave them at the manager as you leave the store. This would be an example of a(n):
implied contract
You enter the coffee shop next door where you have an account, pour yourself a cup of coffee, hold it up to show the manager, and wave as you leave the store. This would be an example of a(n):
implied contract
Anything attached to the land, such as buildings, fences, walls, walks and shrubs, are called:
improvements
Prior to receiving communication of its acceptance, a buyer can withdraw an offer:
in writing personally by registered mail
The term "company dollar" refers to the company:
income after paying salespersons' commissions
A person who is judged to be of unsound mind is known as a(n):
incompetent
The sale of real estate in which the payments for the property extend over more than one calendar yea is called a(n):
installment sale
How do owner occupied homes affect a neighborhood?
lend economic stability
In a trust deed the beneficiary is the:
lender
Which of the following is a requirement of a lease?
length of the lease amount of rent names of parties
The practice of purchasing real estate using a small amount of your own money and a large portion of borrowed funds is known as:
leverage
The practice of purchasing real estate using a small amount of your own money and a large portion of borrowing funds is known as:
leverage
A document that uses a property to secure the payment of a debt or the discharge of an obligation is called a(n) :
lien
A document that uses a property to secure the payment of a debt or the discharge of an obligation is called:
lien
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 greatest source of shopping center financing is :
life insurance companies
When it comes to loans lenders in secondary market are concerned with:
liquidity and marketability
When it comes to loans, lenders in the secondary market are concerned with:
liquidity and marketability.
A contract to employ a broker as an agent, to do certain things for the owner/seller, is known as a(n):
listing
The percentage of the appraised value that† the lender will loan to the borrower to purchase a property is called:
loan to value ratio
Compared to ordinary income tax rates, capital gains taxes are:
lower
Which of the following is NOT a way to terminate a lease?
making monthly payments
In the income approach, the Net Income divided by the capitalization Rate equals:
market value
A lis pendens:
may affect title to the property, based upon the results of the lawsuit.
A lien filed against a property by a person who was not paid after "furnishing labor or materials for construction work on that property is called a(n):
mechanic's lien
If a condominium owner breaches a "condition" in the CC&Rs, this would be:
more stringent than breaching a covenant
Any contract that can't be performed within one year from the date of signing:
must be in writing
In order for a broker to collect a commission , without going to court, a listing agreement :
must be in writing
The replacement cost approach to appraisal is best used for:
new construction
Easements are always:
non-money encumbrances
Which of the following is an important tax date to remember?
nov 1 dec 10 feb 1
The substitution or exchange of a new contract for an existing one with intent to cancel the old contract is called:
novation
When an existing contract is replaced with an entirely new contract, it is called:
novation
An authorization to sell property which may be given to several brokers or the property may be sold by the owner is called:
open listing
Boards nailed across rafters as a foundation for the roof covering are called:
open sheathing
In an option of agreement, the owner of the option is the:
optionee
In a landlord/tenant situation, who would be called the lessor?
owner
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
The trustee issues a reconveyance deed when the promissory note is:
paid in full
A month-to-month rental agreement is usually a:
periodic tenancy
The basic instrument used to evidence an obligation or debt is a:
promissory note
The rights and interests that a person has in the thing owned is the definition of:
property
A net lease is one in which the lessee pays for:
property taxes insurance operating expenses
Front footage is the:
property within the front end of the street
If a rental property is sold, the rents of the tenants are:
prorated in escrow
A subdivider is always required to give a copy of the Commissioner's Public Report about a project to :
prospective purchaser interested realtor fellow developer who requests one
A landlord's responsibilities include:
protecting tenant's health and safety obeying fair housing laws giving 24 hour notice before entering rental
A formal disclosure of the important facts about a subdivision is called the:
public report
sloping members of a roof used to support
rafters
When you authorize a broker to have acted for you after he or she has already done so, it is known as:
ratification
Which of the following is NOT a method of becoming an emancipated minor?
reaching the age of 16 years old
In order to receive a commission, the broker must find a buyer who is:
ready willing able
When an improvement is permanently attached to real property it becomes:
real property
Which of the following is considered the most reliable Internet source of real estate for sale accessible to the general public?
realtor.com
In a Transfer Disclosure Statement, both the buyer's and seller's brokers must conduct what type of property inspection?
reasonably competent diligent visual
The process of purchasing land in a run-down area and constructing new buildings, parks and other new construction is called:
redevelopment
The amount of money paid for the use of a property is known as:
rent
Mello-Roos liens:
require a seller and/or salesperson to disclose are municipal bonds usually fund street improvements
A property owner CANNOT deduct depreciation on what type of real property?
residential
The capitalization rate is a:
return "on" and "of" investment
A transaction where an owner sells his or her property to another party and leases the property from the new owner for a stated period of time is known as a:
sale-leaseback
Providing the landlord with funds to pay for damages or unpaid rent when the tenant vacates is called a:
security deposit
Because they are "asking prices" in most cases, listings:
set a ceiling on market value
IF there is a discrepancy between local and state building codes, the subdivider will use the code that:
sets the highest safety standard
The bottom portion lining a doorway or window is the:
sill
to obtain the highest and best use of a property the appraiser would first do a :
site analysis
The difference between property tax and special assessments is that:
special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund
A small area that is zoned differently from the surrounding area is an example of:
spot zoning
The nominal interest rate is:
stated in the note
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
Which of the following us NOT a remedy for breach of contract?
substitute performance
The seller must provide the buyer of a condominium with:
the CC&Rs the by laws 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 truster is also known as:
the borrower
A salesperson's listings are the property of:
the broker who employs him/her as a salesperson.
In an escrow, the process of signing, transfer of documents and distribution of funds is referred to as:
the closing
The closing date is:
the date the documents are recorded
The broker, as agent of the seller, owes the buyer:
the duty of honesty and fait dealing.
Daniel, who owned two pieces of adjacent land, sold one of them to Charles reserving an easement for himself at the time. Daniel soon left the state for 21 yrs during which time he did not use the easement. When Daniel finally returned to the state, he discovered that:
the easement was still valid and enforced.
The amount that a property should rent for in the current open market is called :
the economic rent
The rate the borrower is actually paying (including interest, points, and loan fees) is called:
the effective interest rate
The unit of comparison in the market data approach for a house would be:
the entire property
Through the process of escheat, the deceased's property passes to:
the estate
An estate at sufferance does NOT require a notice of termination because:
the lease has already expired
A salesperson employed by a listing broker is an agent of:
the owner/seller
A signed written contract takes procedure over oral agreements or prior written agreements based on:
the parol evidence rule
From what document are escrow instructions usually drawn?
the purchase agreement
The only time an agent can refuse to show a property is when:
the sellers are out of town and notify the broker that no one is allowed to see the property.
When the general prices decrease:
the value of money increases
When the general level of prices decrease:
the value of money increases.
Which of the following is true concerning appraisals:
they are an opinion of value for a specific property and as of a certain date based on judgement and professional experience.
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 negotiable instruments is a personal check
Another term for the trustee is:
third party
Anything attached to the land into a series of east-west strips called:
tiers
Township lines divide the land into a series of east-west strips called:
tiers
Which of the following is NOT usually prorated in escrow?
title insurance
A special power of attorney allows the authorized persons to:
transact one specific act (sell your house)
An assignment:
transfers a person's right in a contract
Which of the following is an example of a voluntary lien?
trust deed
Items that are NOT included in the standard title insurance policy(CLTA) include:
undisclosed grants or liens mining claims nonpublic record liens
An increased value of real estate due to no effort on the part of the owner is :
unearned increment