TUTOR EXAM - 10
A $200,000 property sustains $120,000 in fire damage, but is only covered for $80,000. Under the terms of the insurance policy's 80% coinsurance requirement how much will the insured receive?
$60,000
How do you calculate the tax base of an area?
Assessed value - exemptions
Which of the following items would be LEAST important in a property management agreement?
Rental price of each unit
Which of the following is true regarding the useful life of a property?
The physical life is generally greater than the economic life.
The process in which boundaries are measured and land areas determined is called
a survey.
An estimate of the value of something, usually a property, is known as
an appraisal.
On May 7, 2010 Senate Bill 183 was signed into law requiring the placement of __________ in all California dwelling units.
carbon monoxide detectors
Government Code Section 65589.5 sets forth the critical problem of ________ in California.
lack of housing
Ad valorem taxes are based on
the assessed value of the property.
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually paid $150 in taxes for the year, what was the total value of the property?
$120,000
A straight note for $13,400 was executed at 8% annual interest. If the borrower actually paid $3,752 in interest, how many months did he take to pay it off?
42
Which of the following persons is usually NOT an agent?
A person who works for a multiple listing service
Which of the following activities requires a real estate license in California?
A real estate secretary who hosts open house weekends
Which is true regarding the Federal Fair Housing Law?
Aggrieved parties may appeal to HUD for assistance.
Which of the following properties would be exempt from property taxes?
An FBI building
Which BEST describes the principle that a home maintains its highest value in a neighborhood with similar homes and similar type housing?
Conformity
A house was sold on an installment land contract. There was no mention in the contract about a counter top microwave oven. Can the seller take the microwave oven?
Yes, because it is personal property.
A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?
Yes, because the buyer was able to perform all of the requirements in the contract.
Rich put in writing that Rich would sell Mark a strip of land between the road and Mark's property line for $3.15 per square foot. Rich agreed to transfer the land in 6 months. The 6 months passed and Rich refused. Does Mark have any recourse?
Yes. If it is in writing it is enforceable.
Which BEST characterizes the difference between zoning laws and building codes?
Zoning laws deal with use; building codes deal with building materials.
Under Civil Code Section 1351, an example of a common interest development would be
a stock cooperative.
Some states also allow a licensee to act in a non-agency capacity. Depending on the state, the licensee could be known as all of the following except
a subagent.
Licensee Brutus is representing Tim, the owner of a pawn shop. The inventory of the pawn shop is transferred to buyer Jan with
a written bill of sale.
Which of the following items would MOST likely be enforced by the forced sale of a property?
Judgment
In California , any apartment building that has 16 or more rental units must have
an onsite manager, also known as a residential manager.
Under the California Business and Professions Code Section 10145, as well as the Commissioner's Regulation 2832, a trust account must
be maintained with a bank or recognized depository located in California.
A claim or interest revealed by a title search is called a
cloud on title.
Broker Sandra decides not to disclose to a buyer that the property's well is almost dry. Sandra has
committed passive fraud.
A tenant agreed to lease a commercial space for $2,000 per month. The tenant needed a sign to advertise the business and requested that the owner provide a sign. The owner agreed to erect a sign but required in return that the tenant sign a 5-year lease and pay rent of $2,200 per month until the cost of the sign was recovered. At the termination of the lease, could the tenant be allowed to take possession of the sign?
No, because it was installed by the owner and therefore it is the owner's real property.
A broker entered into an agreement with a buyer to find the buyer a piece of property, whereby the buyer agreed to pay $5,000 for the broker's services. The broker found a lot for the buyer, which was listed with another broker on an exclusive basis. The sale was consummated. Can the buyer's broker collect the $5,000 in commission from the buyer and also share in the commission of the listing broker without the permission of all parties to the transaction?
No, because the broker had not obtained written prior permission from both the seller and buyer.
Vicky is a real estate licensee whose friend Thomas is a home inspector with an excellent reputation. When Vicky has a buyer interested in a property, she sends them to Thomas, who pays her brokerage a $50 referral fee. Is this a legal practice?
No, in general this is not a legal practice.
Which of the following is true regarding net listings in California?
On a net listing, the broker must notify the seller of the amount of the commission the broker is earning before the seller agrees to sign the purchase contract with the buyer.
Which of the following is a duty of the real estate commissioner?
Qualifying applicants for real estate licenses
A person owned a 4-plex and lived in one of the units. Which of the following would be allowed?
Refusing to rent to a student from a different national origin.
Which of the following covenants would NOT be found in a general warranty deed?
Restrictive ownership
Which non-governmental organizations have their greatest investment in first mortgages on single family residences?
Savings and loans
A salesperson did a CMA and listed a property for $188,000. Soon thereafter, another property that was comparable to the listed property sold for $215,000. Which of the following BEST describes what the salesperson should do?
Tell the owner that another had sold for $215,000
What is the principal federal statute that covers competition and is one of the most important pieces of antitrust legislation?
The Sherman Antitrust Act of 1890
Who cannot be an escrow agent?
The seller
A(n) ________ is a parcel of real property that is owned and occupied as a family home.
homestead
Previously, the Unruh Civil Rights Act protected people from being discriminated against because of their sex, race, color, religion, ancestry, national origin, disability, or medical condition. However, recent changes have added ______ to the other classes protected under this legislation in California.
marital status and sexual orientation.
An exaggerated or superlative comment about a property's is called
puffing
The final process in appraising a duplex would be
reconciliation
Earnest money is provided when
the offer to purchase real estate is made.
A buyer purchased an option on a property. In this case
the optionee would lose the money paid if he does NOT exercise the option within the option time period.
A loan with a balance of $210,000 prior to the June 1 payment was figured with interest at 5% annually and monthly principal and interest payments of $1,575. There was a 1% pre-payment penalty. The owner paid the June 1 payment and then paid off the balance of the loan. What was the pre-payment penalty?
$2,093
A 3-year straight note was obtained at 10% per year. Interest paid the first two years was $42,000. The loan on the house was 75% of the value. What was the total value of the property?
$280,000
Under which of the following circumstances is the broker due a commission?
The broker procures a buyer who can meet the seller's terms and conditions.
In which of the following cases would an estoppel certificate be needed?
The holder of a mortgage loan sells it, and the buyer of that loan wants the mortgagor to acknowledge the full amount of the debt still owed.
A plumber did some work on a property and was NOT paid. He discovered that there were already several liens against the property. He then discovered that the owner had another piece of property, which was free from encumbrances. Which of the following would be true?
The mechanic's lien can only be placed on the property where the work was done.