Just Cali RE Exam

What is a Real Estate Investment Trust (REIT)? A. A syndicate of working real estate professionals B. A syndicate of people looking for their first home C. An unincorporated trust that holds a large number of real estate investments D. A syndicate of a few investors with large sums of investment capital

D. A syndicate of a few investors with large sums of investment capital

What describes a regulation enacted by the local government for zoning a city or county? A. A mandate B. A special use permit C. An injunction D. A zoning ordinance

D. A zoning ordinance

California requires that deaths that occurred within the past three years be disclosed unless an occupant of the property dies with or as a result of: A. cancer B. leukemia C. environmental factors D. AIDS

D. AIDS

What type of surveys use portable receiving antennas to gather data transmitted from satellites which are used to calculate the position of the object being located on the surface of the earth? A. TA/AC surveys B. ALTA surveys C. GPS surveys D. ALTA/SM surveys

D. ALTA/SM surveys

What homestead law term describes the discontinued use of property? A. Discarded B. Uninhabited C. Revoked D. Abandoned

D. Abandoned

Which fiduciary duty requires an agent to be accountable for all monies, documents, and other property they receives from the principal? A. Loyalty B. Disclosure of notice C. Care D. Accountability

D. Accountability

Which is not an AIDA characteristic? A. Interest B. Attention C. Desire D. Activity

D. Activity

Fannie Mae does all of the following activities except which? A. Buys conventional, FHA, and VA loans. B. Buys pools of mortgages in exchange for mortgage-backed securities. C. Guarantees payment of all interest and principal on mortgage-backed securities. D. Administers special assistance programs.

D. Administers special assistance programs.

Gary and Paul have wooden shutters installed throughout their home. A few years later, Paul is promoted by his employer and transferred to another city. Gary wants to take the wooden shutters to their new home. Paul insists they must remain with the home. Which of the five tests for real and personal property applies? A. Method of Attachment B. Adaptability C. Intent D. All of the above

D. All of the above: A. Method of Attachment B. Adaptability C. Intent

California licensing laws define which of the following? A. Real Estate Brokerage B. Handling Trust Funds C. Managing Escrow Accounts D. All of the above

D. All of the above: A. Real Estate Brokerage B. Handling Trust Funds C. Managing Escrow Accounts

The law judge has just issued a decision based upon the findings in a formal hearing of a real estate salesperson for various ethical violations. What could the California Real Estate Commissioner do at this point in the proceeding? A. Reject the proposed decision B. Accept the proposed decision C. Reduce the proposed penalty and make an official decision D. All of the above:

D. All of the above: A. Reject the proposed decision B. Accept the proposed decision C. Reduce the proposed penalty and make an official decision

Jan failed to renew her license prior to its expiration. In order to renew her license now Jan must: A. Submit a proper application within 2 years of her license expiration. B. Providing evidence of the completion of current required continuing education. C. Pay the appropriate late renewal fee. D. All of the above

D. All of the above: A. Submit a proper application within 2 years of her license expiration. B. Providing evidence of the completion of current required continuing education. C. Pay the appropriate late renewal fee.

What does the paragraph on repairs state? A. The buyer must make all repairs. B. If checked, the seller can complete repairs after closing. C. The seller can do all repairs himself. D. All repairs must be in compliance with existing building codes.

D. All repairs must be in compliance with existing building codes.

Which of the following is not a right? A. Riparian right B. Doctrine of prior appropriation C. Littoral right D. Alluvial right

D. Alluvial right

Which one of these contracts is a unilateral agreement? A. Lease B. Purchase agreement C. Independent Contractor Agreement D. An Option to Terminate

D. An Option to Terminate

What describes a piece of property or an object on a property that is crossing the boundary line of another adjacent property? A. A nuisance B. A consideration C. A claim D. An encroachment

D. An encroachment

What type of contract describes a sales contract prior to closing? A. An executed contract B. An implied contract C. An express contract D. An executory contract

D. An executory contract

What section under the Dispute Resolution provision of a CAR Residential Purchase Agreement states that if mediation does not solve a dispute, the parties agree to use a neutral, binding arbitration to decide the matter? A. Additional mediation and arbitration terms B. Mediation C. Conflict resolution D. Arbitration and disputes

D. Arbitration and disputes

What type of variance permits an applicant to vary one or more of the dimensional or physical requirements of the applicable zoning law, code or ordinance in connection with some proposed construction? A. Zoning variance B. Use variance C. Code variance D. Area variance

D. Area variance

What do California homeowners receive to protect equity when a court forces the sale of a house to pay for a judgment? A. Mortgage forgiveness B. Mortgage exemption C. Tax lien D. Automatic homestead

D. Automatic homestead

When agent Hal shows a home he should never: A. Ask questions of the prospects' children B. Start in the room with the best features C. Allow indoor pets to leave their designated area D. Avoid negative comments while he's inside the home

D. Avoid negative comments while he's inside the home

In a transaction that involves the purchase of a business, what document functions in the same way as the deed in a personal real estate transaction? A. Mortgage B. Deed of Trust C. Warranty deed D. Bill of Sale

D. Bill of Sale

Which is not a fiduciary duty an agent owes to their principal? A. Loyalty B. Confidentiality C. Accountability D. Blind obedience

D. Blind obedience

Agent Dan tells his buyers that the seller will leave the washer and dryer if the buyers make an offer now. What kind of closing technique is Jim using? A. Standing-room only B. Alternative C. Ownership D. Bonus

D. Bonus

Which loan covers the period of time between the end of one mortgage and the beginning of another? A. Construction Loan B. Wraparound Loan C. Open-end Loan D. Bridge Loan

D. Bridge Loan

Who sets the amount or the rate of real estate commissions? A. Real estate board B. Escrow agent C. Lender D. Broker

D. Broker

In an adjustable rate loan index plus the margin establishes the: A. Adjustment period B. Initial rate C. Amortization period D. Calculated rate

D. Calculated rate

What is the standard title policy in California? A. California Home Title Policy B. First American Land Title Policy C. American Tile Association D. California Land Title Association

D. California Land Title Association

What does DRE stand for? A. California buyer representation B. California board of realtors C. California business enterprises D. California department of real estate

D. California department of real estate

Prospects Mike arrive with agent Elaine at a showing. Mike does not like the neighborhood and does not want to see the inside. What should Elaine do? A. Tell Mike that the sellers will be upset if he cancels the appointment. B. Enumerate the home's special features and hope he changes his mind. C. Tell him that this home is an exceptional buy and encourage him to look. D. Call the sellers immediately and let them know you won't be coming by.

D. Call the sellers immediately and let them know you won't be coming by.

Which of the following is not a level of licensing for real estate appraisers? A. Residential license B. Certified residential real estate appraiser C. Certified general real estate appraiser D. Certified specialized real estate appraiser

D. Certified specialized real estate appraiser

What refers to the succession of property owners of record dating back to the original grant of title from the state to a private party? A. Deed-in-lieu B. Clouded title C. Eminent domain D. Chain of title

D. Chain of title

Which act is known as the original fair housing statute? A. Executive order 11063 B. Civil rights act title VII C. Fair housing act D. Civil Rights Act of 1866

D. Civil Rights Act of 1866 - prohibits discrimination on the basis of race and Jones V. Mayer upheld that prohibition in selling or renting residential property

What settlement process refers to signing and transferring all documents and distributing funds? A. Commitment B. Conveyance C. Servicing D. Closing

D. Closing

A shopping center would be primarily categorized as what type of property? A. Residential B. Agricultural C. Investment D. Commercial

D. Commercial

What do we call the practice of mixing a client's money with the agent's personal funds? A. Conversion B. Disengagement C. Dispersement D. Commingling

D. Commingling

What is the difference between commingling and conversion? Which is considered a more serious violation? A. Commingling is the pratice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Commingling is the more serious of the two violations. B. Commingling is the unlawful misapproriation and use of a client's funds by a licensee. Conversion is the practice of mixing a client's money with the agent's personal funds. Conversion is the more serious of the two violations. C. Commingling is the pratice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Neither violation is considered more serious than the other, they both have heavy criminal penalties. D. Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and the use of a client's funds by a licensee. Conversion is a more serious violation.

D. Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and the use of a client's funds by a licensee. Conversion is a more serious violation.

What was passed by Congress in1977 to prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities, including low and moderate income neighborhoods? A. Economic Recovery Act B. Equal Opportunity Act C. Tax Relief Act D. Community Reinvestment Act

D. Community Reinvestment Act

Which section of a residential listing agreement begins with a bold notice that states "The amount of rate of real estate commission is not fixed by law"? A. Items excluded and included B. Listing price and terms C. Multiple listing service D. Compensation to broker

D. Compensation to broker

What is an additional clause in a sales contract where the seller warrants that there are no undisclosed building codes or zoning violations? A. Owner's association disclosure B. Inspections C. Survey D. Compliance with laws

D. Compliance with laws

What term describes the exchange of promises offered by one party to another to do or not to do something? A. Deliberation B. Application C. Omission D. Consideration

D. Consideration

What term describes knowledge of a fact that a person could have or should have obtained? A. Hindsight B. Occurrence C. Realization D. Constructive notice

D. Constructive notice

Which booklet is not part of the Combined Hazards Books? A. The Residential Environmental Hazards Guide B. Protect Your Family From Lead in Your Home C. The Homeowner's Guide to Earthquake Safety D. Consumer Guide to Disclosure for Buyers

D. Consumer Guide to Disclosure for Buyers

This form of syndication allows limited liability for the investors but has negative tax features. Which form fits the description? A. General Partnership B. Joint Venture C. Limited Liability D. Corporation

D. Corporation - a corporation by law is an individual entity and has sole ownership of the property

What is not one of the four choices a buyer can make when a counteroffer is given back to them? A. Counteroffer could be accepted B. Counteroffer could be made C. Counteroffer could be rejected D. Counteroffer could become a lease

D. Counteroffer could become a lease

Who is generally responsible for ensuring that the Closing Disclosure is delivered to the buyer no later than three business days before consummation? A. Seller B. Buyer C. Agent D. Creditor

D. Creditor

What refers to money that the buyer or seller needs to pay at closing? A. Fee B. Credit C. Settlement D. Debit

D. Debit

What term describes the failure to do something required by law or duty? A. Transgression B. Breach C. Noncompliance D. Default

D. Default

Which of the following forms is non-standard and should be prepared by a broker to give to sellers? A. Natural hazards disclosure B. Water heater compliance C. Estimated seller's proceeds D. Defective furnaces in California

D. Defective furnaces in California

Who enforces fair housing laws? A. Department of Community Development B. Secretary of State C. Office of Equal Opportunity D. Department of Housing and Urban Development

D. Department of Housing and Urban Development

Which types of agency is not allowed in California? A. Dual agency B. Buyer's agency C. Single agency D. Designated agency

D. Designated agency

What was the important ruling in Jones v. Mayer? A. Sex became a protected class. B. The definition of race was expanded to include ancestry. C. The definition of handicap was expanded to include the use of guide or support animals for deaf and blind individuals. D. Discrimination on the basis of race is strictly prohibited meaning no exceptions whatsoever.

D. Discrimination on the basis of race is strictly prohibited meaning no exceptions whatsoever.

How can a seller lessen the tax impact of selling a home for enough profit that they will be boosted to a much higher tax bracket? A. There is nothing they can do. B. Do a tax-free exchange with their property. C. Participate in a tax shelter program. D. Do an installment sale.

D. Do an installment sale.

What type of tax is levied by a county or city when properties transfer ownership? A. Ownership tax C. Public tax C. Zoning tax D. Documentary tax transfer

D. Documentary tax transfer

The discovery step of civil cases is where: A. Parties use a mediator B. Complaint is filed C. Each party presents their case D. Each party gathers information from each other and third parties

D. Each party gathers information from each other and third parties

What describes plants or crops that are considered personal property since human intervention is necessary for planting and harvesting? A. Appurtenances B. Conservation C. Fodder D. Emblements

D. Emblements

What Act prohibits lenders from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependency on public assistance? A. Real Estate Settlement Procedures Act B. Fair Credit Reporting Act C. Truth in Lending Act D. Equal Credit Opportunity Act

D. Equal Credit Opportunity Act

What should be prominently displayed in all broker's offices to comply with fair housing policies? A. Housing Discrimination Act B. Title VIII of the Civil Rights Act C. The office anti-discrimination policies D. Equal Opportunity Poster

D. Equal Opportunity Poster

Sara bought her first new home. She put 20% down and got a mortgage for the remainder. The difference between what Sara owes and what her home is worth is: A. Principal B. Capital gain C. Replacement cost D. Equity

D. Equity

Which is not a form of syndication? A. Corporate Form B. General Partnership C. Limited Liability D. Equity Trust

D. Equity Trust - a company that invests in real estate itself or in several real estate projects

What is an involuntary alienation common law doctrine which transfers the property of a person who dies without heirs to the state? A. Conversion B. Estoppel C. Abandonment D. Escheat

D. Escheat

What describes written authorization and instructions for how an escrow agent will perform in a transaction? A. Escrow analysis B. Performance instructions C. Agent authorization D. Escrow instructions

D. Escrow instructions

Which of these is not a type of leasehold estate? A. Estate for years B. Estate at will C. Estate at sufferance D. Estate at conveyance

D. Estate at conveyance

If the interest-holder enjoys the right of possession of land, the party is considered to have: A. Eminent domain B. Leasehold estate C. Encumbrance D. Estate in land

D. Estate in land

What form can an agent use to show a seller what they will bet on the sale of the property? A. Statement of Closing Costs B. Competitive Market Analysis C. Sale Price Disclosure D. Estimated Seller Proceeds

D. Estimated Seller Proceeds

What prevents a person from claiming a right or interest that is inconsistent with the person's previous statements or acts? A. Title B. Entitlement C. Conveyance D. Estoppel

D. Estoppel

The most widely used listing agreement is the: A. Open listing B. Exclusive agency listing C. Net listing D. Exclusive right to sell

D. Exclusive right to sell

What section in a CA residential listing agreement states that the seller is granting the broker the exclusive and irrevocable right to sell or exchange the property described? A. Listing terms B. Items excluded and included C. Compensation to broker D. Exclusive right to sell

D. Exclusive right to sell

Which of these is not a good thing to do when writing a counteroffer? A. Fill out a separate, numbered counter offer form. B. Rewrite whole paragraphs to ensure clarity. C. Date and attach supporting documents. D. Exert pressure on the sellers to include something the other party wants.

D. Exert pressure on the sellers to include something the other party wants.

Communities view licensees as their real estate: A. Appraisers B. Board C. Inspectors D. Experts

D. Experts

What type of lien exists when the IRS sends a taxpayer a bill entitled "Notice for Demand and Payment" and the bill is either ignored or not paid in full? A. Equitable lien B. Statutory lien C. General lien D. Federal lien

D. Federal lien

Manny is in the process of selling his restaurant to a group of investors. Manny conditions are: there may never be any alcohol served on the property and there can never be dancing of any kind. If the investors do not agree to these conditions then Manny refuses to sell his restaurant. What type of estate applies? A. Fee simple absolute B. Pur autre vie C. Estate in reversion D. Fee simple defeasible

D. Fee simple defeasible - provide the usage conforms to stated conditions: Based on an occurrence or non-occurrence of a specified event An estate that dictates "on the condition that.." An estate that provides the "right to re-enter"

What describes a legal procedure in which the property that is used as security for a debt is sold to satisfy the debt in the event of a default? A. Eviction B. Seisen C. Repossession D. Foreclosure

D. Foreclosure

What term describes when damages were within the contemplation of the contract when made? A. Accountability B. Computability C. Predictability D. Foreseeability

D. Foreseeability

An appraiser is appraising a property that was built 65 years ago. The home has wonderful architectural charm, hardwood floors, and beautiful original molding, but it also has tiny bathrooms, and the closet space is nonexistent. Which type of depreciation apply? A. Physical deterioration and functional obsolescence B. Economic and functional obsolescence C. Economic, environmental and internal obsolescence D. Functional obsolescence

D. Functional obsolescence - a loss of value of an improvement due to functional inadequacies that often caused by age or poor design

When you receive an offer on a listing for less than asking price, you should not: A. Study the other terms of the offer so that you can maximize the offer's benefits and minimize the lower price. B. Set up a face-to-face meeting with the sellers as soon as possible. C. Prepare additional documentation to take to the presentation. D. Give the sellers the price over the phone so that they can think about it before you meet with them.

D. Give the sellers the price over the phone so they can think about it before meeting with them.

Which of the following is NOT a condition of the safe harbor test? A. Person must be properly licensed. B. Gross income must be based on production. C. Clearly written contractor agreement must exist. D. Gross income must be based on hours worked.

D. Gross income must be based on hours worked.

Hannah is a newly licensed California real estate salesperson. She has aspirations of one day being the California Real Estate Commissioner. How does she get there and what does she do once she's there? A. Hannah must become an attorney as well as a licensed real estate agent. She would need to have the appointment of the Governor of California. Her primary duty would be the qualification of applicants and issuance of real estate licenses. B. Hannah would have been appointed by the California Real Estate Commission. Her primary duty as Commissioner would be regulation of the sale of subdivision interests. C. Hannah would need to be elected the California Real Estate Commissioner in a statewide election. Her primary responsibilities as Commissioner would be to enforce the Real Estate Law and Subdivided Lands Law. D. Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protections for real estate consumers is achieved.

D. Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved.

A licensee cannot give legal advice unless they: A. Has permission from the broker B. Is asked to by the client C. Speaks with an attorney D. Has a separate license to do that

D. Has a separate license to do that

Agent Dan received an offer on his listing with sellers Mark and Amy for less than asking price. Which of these actions would be the least desirable action for Dan to take? A. Dan should set up a meeting with Mark and Amy as soon as possible B. He should study the other terms of the offer so that he can point out the offer's other positive benefits C. Dan should prepare a statement of the sellers' net and a new CMA to take to the presentation D. He should tell Mark and Amy the offering price over the phone so that they can think about it before the meeting

D. He should tell Mark and Amy the offering price over the phone so that they can think about it before the meeting

All of the following are primary mortgage market lenders except which? A. Investment groups B. Credit unions C. Mortgage bankers D. Holding warehouse agencies

D. Holding warehouse agencies

What 1977 Act prohibits financial institutions from discriminating in loan activities on the basis of race, color, religion, marital status, national origin ancestry or sex? A. Home Mortgage Act B. Equal Credit Act C. Fair Lending Act D. Housing Financial Discrimination Act

D. Housing Financial Discrimination Act

Which of these statements about counter offers is not true? A. A counteroffer represents a rejection of an offer. B. A counteroffer by a seller to a buyer turns the seller from offeree to offeror. C. A counteroffer can give the buyer an "out" if they want one. D. If the buyer rejects the first counteroffer, the seller can accept the first offer.

D. If the buyer rejects the first counteroffer, the seller can accept the first offer.

When a salesperson says or does something that creates agency such as giving advice to a customer, giving an opinion to a customer, or negotiating on the customer's behalf the licensee has: A. Created agency B. Universal agency C. Express agency D. Implied agency

D. Implied agency

Which of the following is not a way a property may be held? A. In co-ownership B. In trust C. In severalty D. In agreement

D. In agreement

If a California homeowner does not pay their full property tax amount by June 30th, the property is considered: A. Intestate B. Escheat C. Nonconforming D. In default

D. In default

The Commissioner discovers in an audit commingling of trust accounts by a licensee. At what amount does the court issue a restraining order against the licensee? A. In excess of $50,000 B. In excess of $100,000 C. In excess of $30,000 D. In excess of $10,000

D. In excess of $10,000

Which of the following liens is both general, involuntary, and statutory? Which lien is specific, voluntary, and equitable? A. Judgment lien, property tax lien B. Income tax lien, property tax lien C. Judgment lien, mechanic's lien D. Income tax lien, mortgage lien

D. Income tax lien, mortgage lien

What provision in an independent contractor agreement states that the broker and licensee will comply with all Federal and State Fair Housing laws? A. Compensation B. Non-employment Federal Tax Purposes C. Regulatory compliance D. Indemnification

D. Indemnification

What is also called a contract for deed? A. Purchase money mortgage B. Lease purchase C. Second mortgage D. Installment land sales contract

D. Installment land sales contract

What have lenders established to protect borrowers from unlimited increases in the interest rate? A. Adjustment period B. Payment cap C. Adjustable-rate loans D. Interest rate caps

D. Interest rate caps

The rules of the Bulk Sales Act apply when a business is sold that involves: A. Creditors B. Appurtenances C. Assets D. Inventory

D. Inventory

What describes a transfer of title to real property without the owner's consent? A. Indemnity B. Conveyance C. Chain of title D. Involuntary alienation

D. Involuntary alienation

What is not true about prospecting? A. It can provide a steady stream of future clients. B. It helps to identify buyer and seller needs. C. It keeps your name in front of potential buyers and sellers. D. It guarantees sales.

D. It guarantees sales

Jane has filed her complaint of discrimination. She also wants to seek some sort of punitive damages. What are her options, if any? A. Jane has one year from the date of the violation to bring suit. She may seek actual damages and a court order to allow her to buy or lease the original property she was denied. B. Jane has three years from the date of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $10,000. C. Jane may only file a complaint. The law does not allow any litigation in fair housing matters due to the extremely difficult nature of the cases. D. Jane may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.

D. Jane may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.

Every California dwelling unit was required to have a Carbon Monoxide Detector by: A. January 1, 2001 B. May 7, 2010 C. July 1, 2011 D. January 1, 2013

D. January 1, 2013

Joanna, of ABC Escrow, begin working on the escrow procedures for Van and Sam file. She prepares the instructions, orders the title search and report, request new loan instructions and documents, negotiates the fee due to ABC Escrow by the parties involved, and accepts the pest control report and other report. Which of these procedures is prohibited? A. Joanna should not be requesting new loan instructions and documents because it is confidential information not applicable to closing escrow. B. The ordering of the title search and report is prohibited of an escrow company. This is a procedure that is handled by the sellers' closing representation. C. Joanna should only be preparing the instructions and ordering the title search and report. All other procedures are not requirements of the escrow holder. D. Joanna should not be negotiating the fee due to ABC Escrow as part of the escrow procedures. The buyer and seller negotiate between themselves who is responsible for paying the escrow holder fee.

D. Joanna should not be negotiating the fee due to ABC Escrow as part of the escrow procedures. The buyer and seller negotiate between themselves who is responsible for paying the escrow holder fee.

Which of the following circumstances would concern you about working for Broker John? A. John offers weekly training seminars. B. There are several successful agents at John's office. C. John's office has a selection of books, CDs and tapes for agent us. D. John expects his agents to spend 5 hours a week on unsupervised telephone duty.

D. John expects his agents to spend 5 hours a week on unsupervised telephone duty.

What term, in the California Civil Code addressing mobile home residency, describes the right of a homeowner to use the site within a mobile home park?

"Tenancy" is the right of a homeowner to the use of a site within a mobile home park on which to locate, maintain, and occupy a mobile home, site improvements, and accessory structures for human habitation, including the use of the services and facilities of the park.

Jerry has been approved for a home loan in the amount of $250,000 with two points. If one point equal 1% of the loan balance. What will the points cost Jerry? How are the points shown at closing?

$250,000 x .02 (2%) = $5,000 points and it will be a debit to the buyer

Kirk submits an offer to seller Larry but later that day Kirk finds a home he likes better. He withdrew his offer to Larry. What happens next? A. Kirk does not have the right to withdraw the offer so soon. B. Larry can sue Kirk. C. If Larry verbally accepted the offer, Kirk is bound by it. D. Kirk's offer to Larry is legally cancelled.

D. Kirk's offer to Larry is legally cancelled.

Who is responsible for maintaining a residential property in a condition fit for human occupancy? A. City B. Tenant C. Lessee D. Landlord

D. Landlord

What type of contingency gives the buyer 10 days to inspect for lead-based paint? A. Home Inspection Contingency B. Approval of HOA Documents Contingency C. Buyer Financing Contingency D. Lead-based Paint Disclosure and Inspection Contingency

D. Lead-based Paint Disclosure and Inspection Contingency

What is an oral or written agreement that creates and governs by express or implied terms a landlord-tenant relationship? A. Agency B. Sales contract C. Listing D. Lease

D. Lease

A Presentation manual: A. Should be professionally produced. B. Can be used in place of a verbal presentation. C. Is not necessary if the verbal presentation is strong. D. Lends good visual support to what the agent is saying.

D. Lends good visual support to what the agent is saying

Once a mechanic's lien has been paid, what must be recorded to show the lien has been discharged and satisfied? A. Deficiency judgment B. Equitable title C. Expense report D. Lien release

D. Lien release

A creditor who places a lien on a property is called: A. Lienee B. Mortgagor C. Mortgagee D. Lienor

D. Lienor

In California, property is generally owned in one of six distinct forms of ownership. Which of the following is not one of these six forms? A. Severalty B. Tenancy in Partnership C. Community Property D. Life Estate

D. Life Estate

Which of these lenders would be most likely to finance a large shopping mall? A. Commercial bank B. Seller C. Savings and loan association D. Life insurance company

D. Life insurance company

A life estate is freehold estate that is: A. Passed to an heir B. Given to the state upon the owner's death C. Transferred to another person for permanent ownership D. Limited in duration to the life of the owner or other named person

D. Limited in duration to the life of the owner or other named person

The Bill of Rights protects the rights of individuals by: A. Dividing power into three main branches B. Laying out the organization and powers of the federal government C. Making sure all laws agree with the US Constitution D. Limiting government power

D. Limiting government power

What type of prepayment clause prohibits the borrower from paying the mortgage loan in full before a specific date? A. Lienholder clause B. Lender clause C. Due-on-sale clause D. Lock-in clause

D. Lock-in clause

Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for 30 years. How much interest will Naomi pay over the term of her loan?

1. $679.00 x 12 months x 30 years = $244,440 2. $244,440 - $120,000 = $124,440

Maurice is a builder of new residential housing in the San Fernando Valley. He builds high-end homes in various subdivisions in the area. Maurice has been paying into a found that is used by the government for low-to-moderate-income housing. Is Maurice required to pay into this fund and why? Does he have any other options? A. Maurice is not required to pay into this fund. He pays into the fund to ensure he is given special treatment in receiving building permits. He does have the option not to pay into the fund or voluntarily set aside a few units for low-to-moderate-income housing. B. Maurice is required to pay into this fund due to the Building Codes Ordinance. He must either set aside a designated number of units for low-to-moderate-income housing, in certain cases like Maurice's, he may pay into the fund. If he refuses, his building permit will be denied. C. Maurice is required to pay into this fund due to the Police Power Action. He must either set aside a designated number of units for low-to-moderate-income housing, or in cases like Maurice's, he may pay into the fund. If he refuses, his building permit will be denied. D. Maurice is required to pay into this fund due to the inclusionary zoning ordinance. He must either set aside a designated number of units for low-to-moderate-income housing or in case like Maurice's, he may pay into the fund. If he refuses his building permit will be denied.

D. Maurice is required to pay into this fund due to the inclusionary zoning ordinance. He must either set aside a designated number of units for low-to-moderate-income housing or in case like Maurice's, he may pay into the fund. If he refuses his building permit will be denied.

What are the types of leasehold estates?

1. An Estate for Years 2. An Estate from Period to Period 3. Estate at Will

Once an offer has been accepted, the agent should do all of the following except which? A. Make sure all required disclosures have been done. B. Attend the final walkthrough. C. Be sure all requested inspections have been ordered. D. Meet with the buyers' lender to ensure they are getting a good deal.

D. Meet with the buyers' lender to ensure they are getting a good deal.

What system uses physical features of the local geography, along with directions and distances to define and describe the boundaries of a parcel of land? A. Lot and block method B. Rectangular survey system C. Recorded plat method D. Metes and bounds

D. Metes and bounds

What describes a fungus that grows in the presence of moisture and oxygen on virtually any kind of organic surface? A. Carbon monoxide B. Radon C. Asbestos D. Mold

D. Mold

What term describes the borrower in a mortgage? A. Lender B. Mortgagee C. Trustee D. Mortgagor

D. Mortgagor

A meeting of the minds where parties freely agree to the terms of a contract exactly as the contract is written is called? A. Separate assent B. Reciprocal agreement C. Bilateral assent D. Mutual assent

D. Mutual assent

Once signed, escrow instructions can be changed only by: A. The escrow agent B. The broker C. Amending the purchase agreement D. Mutual consent of both parties

D. Mutual consent of both parties

In a graduated payment mortgage, the interest owed and not paid in the initial months is added back to the principal causing what referred to as: A. Indemnification B. Recompensation C. Graduate subsidy D. Negative amortization

D. Negative amortization

What are the five economic characteristics of land?

1. Demand - the more demand for a particular property, the more valuable the property 2. Scarcity - one property will sell quickly if only a few properties in a particular area are on the market 3. Situs - the most important characteristic in real estate is location 4. Utility/usefulness - a three bedrooms house is more appealing to consumers than a one-bedroom house 5. Transferability - when loans are available and rates are low, real estate is readily transferable from seller to the buyer

What are the the Economic characteristics of land?

1. Demand - the more demand for a property, the more valuable it is 2. Utility or usefulness - a three bedrooms house is more appealing to consumer than a one or two bedroom house 3. Scarcity - one property will sell quickly if only a few properties in a area are on the market 4. Transferability - when loans are available and rates are low, real estate is readily transferable from seller to buyer 5. Situs - the most important characteristic of real estate is location

What a licensee should not use in advertising that would show discrimination?

1. Discriminatory misrepresentation - an agent may not conceal available properties, represent that they are not for sale or rent or change the sale terms for the purpose of discriminating - Ex. An agent may not inform a minority buyer that the seller has recently decided not to carry back second mortgage financing when in fact the owner has made no such decision 2. Discriminatory advertising - an agent may not advertise residential properties in a way as to restrict their availability to any prospective buyer or tenant Providing unequal services - an agent may not alter the nature or quality of brokerage services to any party based on race, color, sex, religion, and ethnicity - Ex. If it is customary for an agent to show a customer the latest MLS publication, the agent may not refuse to show it to any party 3. Providing unequal services - an agent may not alter the nature or quality of brokerage services to any party based on race, color, sex, religion, and ethnicity - Ex. If it is customary for an agent to show a customer the latest MLS publication, the agent may not refuse to show it to any party

Which mortgage wholesale agency in the Secondary Market are regulated by the government?

1. Federal National Mortgage Association (Fannie Mae) 2. Government National Mortgage Association (Ginnie Mae) 5. Federal Home Loan Mortgage Corporation (Freddie Mac)

A the present time, funds are limited for CalVet Program mortgage loans. A decision must be made to give one veteran a loan over another. Veteran A has been in the military service for 20 years and is a four-time decorated hero. He wants to buy an Oregon farm with the loan. Veteran B has been in military for 4 years and he lost his right leg in battle. He want to buy a small home in Las Vegas for himself and his mother. Which veteran will they choose and why? A. Veteran A will be chosen based on his years of service, his decoration, and his desire to buy a farm. B. Veteran A will be chosen because he is still on active duty; Veteran B has received a discharge from service marking him less desirable for the program's loan. C. Veteran B will be chosen because his family members will take priority due to his injury. D. Neither will be chosen for the loan because both are planning on buying homes outside of the state.

D. Neither will be chosen for the loan because both are planning on buying homes outside of the state.

All of the following are valid listing agreements. Which one is illegal in many states? A. Exclusive agency B. Open C. Exclusive-right-to-sell D. Net

D. Net

Perry is listing his home with ERR Brokerage. He want to receive $250,000 from the sale of the home, and anything above that price is the broker's commission. Which type of listing agreement is Perry demanding? A. Exclusive Agency B. Open Listing Agreement C. Exclusive Right to Sell with Automatic Extender D. Net Listing

D. Net Listing - listing that states the seller is to receive a certain amount of money from the sale

Seller Patsy wants to net $150,000 from the sale of her home. She tells Broker Al that he can list the property for whatever price he wants and anything he gets above the $150,000, he can keep as his commission. What is this agreement called? A. Exclusive agency B. open listing C. Exclusive-authorization-and-right-to-sell agreement D. Net listing

D. Net listing

Prospecting ends: A. At the time of a sale B. Two weeks after closing C. When you have 200 names in your contact database D. Never

D. Never

When setting up a rent schedule a property manager should analyze all but which of the following? A. Neighborhood amenities B. Community growth C. Area vacancy rates D. New home sales

D. New home sales

What type of licensing does a person need who is acting on their own behalf with respect to their own property? A. Real estate license B. Broker license C. Independent contractor license D. No license required

D. No license required

Is a broker allowed to accept lender funds unless that broker owns the loan? Which requirement under the California Business and professions code address this? A. Yes, it is permissible for a broker to accept those funds. They will be used for a loan or to buy a note. The requirements is outlined in Article 5. B. Yes, it is permissible for a broker to accept those funds. They will used for a loan or to buy a note. The requirement is outlined in Article 6. C. No, it is not permissible for a broker to accept those funds. The requirement is outline in Article 17. D. No, it is not permissible for a broker to accept those funds. The requirement is outline in Article 5.

D. No, it is not permissible for a broker to accept those funds. The requirement is outline in Article 5.

What are the basic real estate deeds?

1. General Warranty deed 2. Bargain and Sale deed 3. Special Warranty deed

What section in a CAR Exclusive Buyer Representation Agreement states that the terms of an offer a buyer makes to the seller may be shared to others by the seller or listing agent? A. Confirmation B. Other Potential buyers C. Broker authorization D. Non confidentiality of offers

D. Non confidentiality of offers

What term describes when a buyer has the right to contract with other brokers for representation in the purchase of a property during the term of the agreement? A. Exclusive B. Exclusion C. Agency D. Non-exclusive

D. Non-exclusive

The primary method of foreclosure in California is the: A. Strict foreclosure B. Judicial foreclosure C. Voluntary foreclosure D. Non-judicial foreclosure

D. Non-judicial foreclosure

All of these items are important to include on your weekly activity report except which? A. Number of calls that week B. Agent comments about property C. Classified ads placed on the property D. Number of hits on the company website

D. Number of hits on the company website

The Real Estate Commissioner has the authority to perform all the following actions:

1. Hold formal hearings to decide issues involving a licensee or licensee applicant. 2. Regulate and control the issuance and the revocation of all licenses issued under California law. 3. Adopt, amend, or repeal rules and regulations for the enforcement of the laws.

What describes a lease provision that gives the tenant the right to extent the lease for an additional period of time and sets forth the terms for the renewed lease? A. Term lease B. Extension C. Lease from period to period D. Option to renew

D. Option to renew

What provision in an independent contractor agreement includes the name of the broker and licensed real estate agent participating in the employment contract and the term of the agreement? A. Independent contractor relationship B. Obligations and duties C. Associates authority D. Parties and terms

D. Parties and terms

What type of property is ownership of anything that is not real estate and the right associated with owning the item? A. An emblement B. Real property C. A datum D. Personal property

D. Personal property

In a typical civil case, the burden of proof is on the: A. Judge B. Officer of the court C. Defendant D. Plaintiff

D. Plaintiff

Alex makes an offer to purchase one of Bill's listings. Bill cannot contact the seller and Bill gets another offer from another buyer at a higher price. What should Bill do? A. Present the higher-priced offer first B. Decide which offer is best and present that one C. Present Alex's offer first since it came in first D. Present both offers to the seller

D. Present both offers to the seller

What type of lease conveys a leasehold interest to an owner of a cooperative? A. Land lease B. Percentage lease C. Index lease D. Proprietary lease

D. Proprietary lease

Which statements are true about an offer?

1. If a seller changes the terms of the offer to purchase, he has created a counteroffer 2. An offer or counteroffer can withdraw at any time before it has been accepted 3. Once the offer or counteroffer is accepted and the offeror has been notified, a legal contract is formed

What are the the physical characteristics of land?

1. Immobile - real is permanent 2. Indestructible - land is permanent 3. Nonhomogeneous (uniqueness) - each parcel of land has its own unique characteristics , no two properties are the same

What does a counter offer do?

1. It represents a rejection of an offer 2. By a seller to a buyer turns the seller from offeree to offeror 3. Give the buyer an "out" if they want one

How might probate information help in prospecting? A. Gives the names of lawyers who might require property assistance. B. Allows the agent to determine community market trends. C. Shows property addresses that should be excluded from prospecting. D. Provides the names of individuals who may want to sell inherited property.

D. Provides the names of individuals who may want to sell inherited property.

The agency relationship between buyer, seller and broker must be confirmed in writing in either the CAR Standard form AC-6 or: A. Inspection notice B. Real estate listing C. Transaction form D. Purchase contract

D. Purchase contract

What type of deed transfers real and potential interests in a property whether an interest is known to exist or not? A. Limited deed B. Special warranty deed C. Fiduciary deed D. Quitclaim deed

D. Quitclaim deed

The north-south area between consecutive meridians is called a: A. Lot B. Tier C. Section D. Range

D. Range

What was created in 1974 to ensure that the buyer and seller in a residential real estate transaction involving a new first mortgage loan, have knowledge of all settlement costs? A. Consumer Financial Disclosure Act B. Real Estate Protection Agency C. Department of Housing and Urban Development D. Real Estate Settlement Procedure Act

D. Real Estate Settlement Procedure Act

What are the water rights?

1. Riparian right 2. Doctrine of prior 3. Appropriation 4. Littoral right

Which of the following is a type of water rights?

1. Riparian rights, which relate to rivers 2. Littoral rights, which relate to seashores and beaches.

What elements are necessary for a valid contract?

1. Statute of Frauds - to be enforceable, it must be in writing 2. Legally competent parties - sound mind and sound body 3. Offer and acceptance - meeting the minds 4. Consideration - good or valuable consideration is a promise to pay money 5. Legality of Object - the purpose of the contract is legal a contract to commit an illegal act is void 6. Bilateral - a promise for a promise 7. Unilateral - a one-sided agreement, only one party makes a promise to perform 8. Executed - everything has been done, all promises have been fulfilled, and everyone has performed under the contract 9. Express agreement - an oral or written contract in which the parties state the contract's terms and express their intentions in words 10. Implied agreement - a contract under which the agreement of the parties is demonstrated by their acts or

What is true about a reverse annuity mortgages?

1. The lender makes payments to the borrower 2. This mortgage type is popular among the elderly 3. The borrower pays a fixed rate of interest

What are the three steps that the state/local government must do to take private property through eminent domain?

1. The property owner must be paid compensation for the property 2. The property must be for the public good or use 3. The owner must have due process in the court system

Under acceptance of offer in a CAR Residential Purchase Agreement, which section states that brokers are not parties to the agreement? A. Escrow holder acknowledgement B. Presentation of offer C. Non-participating parties D. Real estate brokers

D. Real estate brokers

Which of these individuals could not act as an escrow agent without an escrow license? A. Attorney B. Banker C. Broker D. Real estate salesperson

D. Real estate salesperson

Which is not a source of information for professional ethics codes? A. State laws B. Licensing regulations C. Real estate associations D. Real estate schools

D. Real estate schools

What gives a person the chance to channel their private savings into real estate investments for which other financing cannot be obtained or is not available because of the large amount of money involved? A. Money market account B. Private investment C. Economic reinvestment D. Real estate syndication

D. Real estate syndication

What describes real estate and the bundle of rights associated with owning real estate? A. Personal estate B. Community property C. Personal property D. Real property

D. Real property

When doing a competitive market analysis, an agent looks at all but which of the following factors? A. Prices of properties currently on the market B. Prices of sold properties C. Properties that were listed but did not sell D. Recently renovated properties

D. Recently renovated properties

If a person believes that her property has been placed under an unlawful restriction, covenant or other provision based on an arbitrary reason as defined in the Government Code: A. Refuse to pay their rent or mortgage B. File suit against the parties that sold her or rented her the property C. File suit against the party/parties that so placed this unlawful restriction D. Record a Restrictive Covenant Modification document

D. Record a Restrictive Covenant Modification document

Jonestown Community Bank refuses to lend money to potential homeowners trying to purchase property in the predominantly Asian neighborhood on the west end of town. This practice is: A. Steering B. Blockbusting C. Panic-selling D. Redlining

D. Redlining

What refers to a government regulation of the amount of rent a landlord may charge a tenant? A. Cap B. Lease regulation C. Income stabilization D. Rent control

D. Rent control

In 1848, courts in the United States recognized and enforced restrictive covenants to regulate land use in: A. Public areas B. Parks C. Agricultural areas D. Residential subdivisions

D. Residential subdivisions

Logan is in his 70s and have a nice home. He paid off their mortgage 25 years ago. Logan is ill and he need to hire a home care taker so he turned to his home to supplement. What type of loan applies to this situation? A. Package Mortgage B. Wraparound C. Buydown D. Reverse Annuity

D. Reverse Annuity - a homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or line of credit.

Wanda home is paid off but in order to supplement her fixed income, she receives monthly checks from their bank. What kind of loan is this? A. Home equity loan B. Amortized loan C. Senior citizen loan D. Reverse annuity mortgage

D. Reverse annuity mortgage

What paragraph in a CAR Residential Listing Agreement states the broker is not responsible for damage to personal or real property or persons in association with the showing and sale of the property? A. Seller representations B. Deposit C. Agency relationships D. Security and insurance

D. Security and insurance

The title report on a property shows there is a lien on the property. Who is responsible for removing the lien to clear the title? A. Broker B. Title company C. Buyer D. Seller

D. Seller

When doing research to recommend a reasonable listing price for a home, the most critical part of the research deals with analyzing: A. Asking prices for current homes B. Listing prices of homes that sold C. Listing prices of homes that expired unsold D. Selling prices of recently sold homes

D. Selling prices of recently sold homes

There has been very little interest in the Bowers' home this past week. What should agent Phil do? A. Wait until next week to send an activity report hoping things will pick up. B. Suggest to the sellers that their listing price is too high. C. Make up some statistics to share with the Bowers. D. Send the weekly report as usual, emphasizing what your upcoming plans are for the week.

D. Send the weekly report as usual, emphasizing what your upcoming plans are for the week.

Which of the following is not considered a basic real estate deed? A. General Warranty Deed B. Bargain and Sale Deed C. Special Warranty Deed D. Sheriff's Deed

D. Sheriff's Deed - granted to the purchaser at a court-ordered sale

Jake has decided to specialize in working with clients who purchase schools. What property type will he be dealing with? A. Commercial B. Industrial C. Recreational D. Special-purpose

D. Special-purpose

Jennifer and Mark home had a lien on it by the state for failure to pay state income tax. What kind of lien is it? A. General involuntary B. Specific voluntary C. General voluntary D. Specific involuntary

D. Specific involuntary

What California statute requires that all agreements affecting title to or interest in real estate be in writing and signed by the parties? A. Statute of contracts B. Statute of consideration C. Statute of cooperation D. Statute of frauds

D. Statute of frauds

Carl has a habit of directing minority clients to the south end of town because he feels they would be more comfortable in that neighborhood. This practice is: A. Blockbusting B. Redlining C. Panic selling D. Steering

D. Steering

What describes the channeling of home buyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood? A. Blockbusting B. Filtering C. Redlining D. Steering

D. Steering

If a tenant is in default what can the landlord file to repossess the property and evict the tenant? A. Suit for default B. Breach of contract C. Order of removal D. Suit for possession

D. Suit for possession

Which of the following economic characteristics is true? A. Land is plentiful B. Properties are very liquid and can move quickly C. Real estate can respond quickly to changes in the market D. Supply cannot be moved to a high demand area

D. Supply cannot be moved to a high demand area

What type of rights applies to the real estate contained within the surface boundaries of the parcel? A. Littoral rights B. Water rights C. Encumbrance rights D. Surface rights

D. Surface rights

Ted is selling his home and has signed a listing agreement. Then Steven visits Ted's house during open house and he wants to buy the house. In the first transaction, is Ted a client or a customer? In the second transaction, is Steven a client or customer? A. Ted is a customer, Steven is a client. The listing agent must disclose to Steven that Ted is a customer. B. Ted and Steven are both clients. The listing agent must disclose to both of them that they are both clients. C. Ted is a customer and Steven is a client. The listing agent must disclose to Steven that they represents Ted and explain the customer relationships. D. Ted is a client and Steven is a customer. The listing agent must disclose to Steven that they represents Ted and explain the customer relationships.

D. Ted is a client and Steven is a customer. The listing agent must disclose to Steven that they represents Ted and explain the customer relationships.

Which of the following prospecting techniques do you have to use carefully because it has tended to upset people in recent years? A. Door knocking B. Direct mail C. Placing ads D. Telephone calls

D. Telephone calls

All of the following are good approaches for handling objections except which? A. View an objection as the buyer's request for more information. B. Use the "yes-but" technique to handle the objection. C. Ask the buyer more questions. D. Tell the buyer it's not an issue.

D. Tell the buyer it's not an issue.

If a seller refuses to consider an offer because the prospective buyer is a member of a protected class the listing should be: A. Referred to the broker B. Extended C. Offered at a lower price D. Terminated

D. Terminated

If a decedent died with a valid will, they said to have died: A. Habendum B. Intestate C. With heirs D. Testate

D. Testate

What term describes when a property owner dies with a valid will in place? A. Escheat B. Intestate C. Moratorium D. Testate

D. Testate

What governs the making, interpretation, and enforcement of leases? A. The Residential Tenant Act B. Landlord Tenant Law C. The Law of Possession D. The Law of Contracts

D. The Law of Contracts

What restricts the time period for which an injured party in a contract has the right to bring a lawsuit against the other party? A. The Statute of Frauds B. An exclusion clause C. A limitation clause D. The Statute of Limitations

D. The Statute of Limitations

Janet is a broker who negotiates a number of loans to specific subdivisions. She took part in 27 loans to homeowners in one subdivision. Due to the large number of loans, she has to report it to the California BRE. What is the name of this reporting process? How often must the reports be made? What is an additional requirement for making these reports? A. The annual and quarterly process is Uniform Reporting. Additionally, if a broker negotiates more than $5,000,000.00 in loans annually, they must take part in the reporting. B. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in the reporting. C. The annual and quarterly process is Trust Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in the reporting. D. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, they must take part in the reporting.

D. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, they must take part in the reporting.

What happens when the terms of a loan are satisfied? A. The lender can keep anything left in the escrow account B. The borrower must get an appraisal of the property before the lender turns over the legal title C. The lender cannot charge a fee to close out the loan D. The borrower receives a release of mortgage document

D. The borrower receives a release of mortgage document

In a broker-associate relationship, where a licensee is an employee, who controls the hours, schedule, and workload an agent has? A. The licensee B. The board secretary C. The real estate board D. The broker

D. The broker

Who can allow a listing to be cancelled during the term of the listing agreement? A. The seller B. The licensee C. A cooperating broker D. The broker

D. The broker

What does not occur during a pre-trial conference? A. A trial plan is prepared B. Attorneys and parties will revisit the financial costs and unpleasantness of going to trial C. Parties may or may not consider settlement D. The court enters a pre-trial order

D. The court enters a pre-trial order

If an affiliated licensee terminates or transfers to another broker, within how many days of termination must a broker notify the DRE through it's Elicensing system, or in writing, and return the licensee's license to the licensee?

3 days

Sharon and Steve have just taken a second mortgage on their home. Which is a true statement? A. The second mortgage has now become the primary loan. B. This mortgage is not negotiable. C. They're probably paying a higher interest rate on the second mortgage. D. The first and second mortgages will be rolled into one.

D. The first and second mortgages will be rolled into one.

Which of the following conditions does not apply in converting a mobile home into real property? A. The homeowner must obtain a building permit. B. The home must be placed on a permanent foundation. C. The homeowner must obtain a certificate of occupancy. D. The homeowner is required to have a tag guaranteeing the mobile home's proper construction.

D. The homeowner is required to have a tag guaranteeing the mobile home's proper construction.

The escrow instructions in John and Sam transaction are deemed unavailable to the Sam. If instructions are confidential, and AVC Escrow is a dual agency representing both parties. Why are the instructions only known to John, his agent, and AVC Escrow? A. The instructions are considered unilateral and only apply to John. B. The instructions are always only available to the buyer and are of no consquence to the seller. C. The bilateral instructions apply only to John and may be known only to John, his agent, and AVC Escrow. D. The instructions are considered unilateral and apply only to John, his agent, and AVC Escrow.

D. The instructions are considered unilateral and apply only to John, his agent, and AVC Escrow.

A first-time buyer has applied for a large mortgage loan at ABC Bank. The first-timer has good credit, good debt-to-income ratio, a stable position and adequate income. The lender still has concerns. Which of the following is not one of the lender's concerns? A. The current and future value of the property B. The attractiveness of other investments that could be made for a better return C. The income and income potential of the loan applicant D. The loan applicant's need of financial assistance

D. The loan applicant's need of financial assistance

When a person acquires new property, which is true? A. The owner has 30 days to notify the county assessor. B. The seller must file a bill of sale with the county clerk. C. The owner has 45 days to pay the new property taxes. D. The owner has 45 days to file a change in ownership statement.

D. The owner has 45 days to file a change in ownership statement.

An agent who ultimately caused a buyer to purchase a home and earned the commission is called? A. A subagent B. A transaction broker C. A dual agent D. The procuring cause agent

D. The procuring cause agent

When an owner dies without a will or heirs, what happens to the property and why? A. The property is abandoned until it can be sold by the state. If there is not an owner, the state takes ownership. B. There is an auction with the proceeds going to the state. If there is not an owner, the state takes ownership. C. The property is transferred to the nearest living relative. Property must have an owner. D. The property is transferred to the state. Property cannot be without an owner

D. The property is transferred to the state. Property cannot be without an owner.

A common interest development (CID) is a development characterized by the individual ownership of either a housing unit or parcel coupled with: A. Its relative size B. Its proximity to other units C. The potential value D. The right to use shared common areas and facilities

D. The right to use shared common areas and facilities

What is the meaning of "value" in real estate? A. Asking price well below market B. The use of a parcel of land C. The function a parcel might have to a number of people D. The worth and use of a parcel to a particular person for a particular purpose

D. The worth and use of a parcel to a particular person for a particular purpose

The Escrow Act found in California Financial Code establishes two essential mandates for escrow validity. What are these mandates? A. There must be a binding contract between buyer and seller. There must be conditional delivery of transfer instruments and funds to separate agencies. B. There must be a binding contract between buyer, neutral party, and the seller. There must be a conditional delivery of transfer instruments and funds to a grantor. C. There must be a binding contract between buyer and seller. There must be a conditional delivery of transfer instruments and funds to a dual agency. D. There must be a binding contract between buyer and seller. There must be a conditional delivery of transfer instruments and funds to a neutral third party.

D. There must be a binding contract between buyer and seller. There must be a conditional delivery of transfer instruments and funds to a neutral third party.

It is key for agents to learn about the laws because: A. They need to be able to memorize them B. They should be able to give their clients legal advice C. They have too many laws that apply to their transactions D. They need to know the origination and support for those rules

D. They need to know the origination and support for those rules

Broker Sam receives a deposit check from a client along with the purchase contract. How long does he have to deposit it into his trust account? A. Six business days B. Two business days C. Four business days D. Three business days

D. Three business days

RESPA gives the buyer the right to review the completed settlement statement how long before closing? A. Two calendar days B. One business week C. One calendar week D. Three business days

D. Three business days

RESPA gives the buyer the right to review the completed closing disclosure how long before closing? A. Two calendar days B. One business week C. One calendar week D. Three days

D. Three days

What is the most common reason that owners try to sell their homes themselves? A. To handpick the buyer B. To have a quick sale C. To control the flow of prospects D. To save on commission

D. To save on commission

Which section of a Closing Disclosure includes names and addresses for both the borrower and seller and the lender's name? A. Closing information B. Loan information C. Summary information D. Transaction information

D. Transaction information

What describes money or other things of value that are received by the broker on the part of another person? A. Endowment B. Investment capital escrow C. Escrow D. Trust funds

D. Trust funds

In a deed of trust, the three parties to the loan are the borrower, the lender and: A. Seller B. Buyer C. Agent D. Trustee

D. Trustee

Maya purchased her first home at a Trustee's foreclosure sale. She was given a deed at the sale. What type of deed was given to her? A. Grant Deed B. Tax Deed C. Sheriff's Deed D. Trustee's Deed

D. Trustee's Deed - conveys title from the trustor to a trustee for the beneficiary

How often can a tenant call their own professional to make repairs and then deduct the amount from the next month's rent? A. Never B. Once every 3 months C. Once a year D. Twice in a 12-month period

D. Twice in a 12-month period

Heet has transferred a portion of her property, via a grant deed, to Cameron. However, this deed did not set forth in writing the two primary warranties Cameron should have on the property: first, that Heet has not already transferred the title to another person; and, second, that the estate is free of any encumbrances, other than what has been disclosed to the grantor. Which of the following is true of this situation? A. Cameron must file a quiet title lawsuit in order to alter the transfer to include these warranties. B. Cameron must accept the situation as is, unless he can convince Heet. to alter the transfer willingly. C. Because this transfer has occurred with a grant deed, the two necessary warranties, as explained, are implied in the deed. However, under the Statute of Limitations, contracts must be in writing to be enforceable; so Cameron's coverage in this situation will not stand up in court. D. Under a grant deed, the two warranties that Heet has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present.

D. Under a grant deed, the two warranties that Heet has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present.

In creating a joint tenancy, there are four unities. Which of the following is not one of the four? A. Unity of time B. Unity of Possession C. Unity of Interest D. Unity of Origination

D. Unity of Origination

In what type of agency relationship does the principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative? A. Specific agent B. Special agent C. General agent D. Universal agent

D. Universal agent

In order to have a joint tenancy and the right of survivorship, four unities must take place. Which one of the following is not one of these unities? A. Time B. Title C. Possession D. Vesting

D. Vesting

Which of the following is not a fourfold unity? A. Time B. Title C. Possession D. Vesting

D. Vesting

If a contingency was not met by the date outlined in the contingency, the contract is: A. Abdicated B. Revised C. Waived D. Void

D. Void

What describes an unforced transfer of title by sale or gift from an owner to another party? A. Constructive notice B. Chain of title C. Act of acceptance D. Voluntary alienation

D. Voluntary alienation

Which of the following is not considered one of the six distinct forms of ownership in California? A. Tenancy in common B. Severalty C. Joint tenancy D. Voluntary tenancy

D. Voluntary tenancy

All of these might be a buying signal except which? A. Taking room measurements. B. Asking about a possession date. C. Moving closer to the agent to get a better look. D. Walking through the home quickly.

D. Walking through the home quickly.

What describes a guarantee that a property meets the minimum health and housing code? A. Home warranty B. Tenancy guarantee C. Home service warranty D. Warranty of habitability

D. Warranty of habitability

Which of the following is not a requirement of a will? A. Legal age B. Proper wording C. Witnesses D. Written in testator's handwriting

D. Written in testator's handwriting

Jackson, a broker, is accused of commingling his money with trust account funds. His broker's trust account is a non-interest-bearing account. The current balance of the trust account is $430,000. The earnest deposit funds portion of account totals $415,000, the broker's initial deposit totals $15,000. Is Jackson guilty of commingling? A. No, he can clearly show through well-kept records his initial deposit of $15,000 and the trust fund money of $430,000. He is not earning interest from any part of this account including his initial deposit of personal funds. B. Yes, he should not have any money of his own ever mixed with clients' earnest money deposits. C. Yes, Jackson's initial deposit to open the account should have only total about $1,000. The $15,000 he deposited of his own money to open the account is considered excessive. D. Yes, Jackson's initial deposit to open the account should have only totaled about $200. The $15,000 he deposited of his own money to open the account is considered excessive.

D. Yes, Jackson's initial deposit to open the account should have only totaled about $200. The $15,000 he deposited of his own money to open the account is considered excessive.

Tracy is buying a home and she put in 15% down payment and have qualified for a 30 year fixed conventional rate mortgage. Will Tracy have to pay the PMI? A. Yes, private mortgage insurance is required for all loans with less than 25% down payment. B. No, private mortgage insurance is only required for all loans with less than 15% down payment. C. No, this is Tracy's second mortgage for the purchase of a new home. Private mortgage insurance is only first-time buyers with less than a 20% down payment. D. Yes, private mortgage insurance is required for all loans with less than 20% down payment.

D. Yes, private mortgage insurance is required for all loans with less than 20% down payment.

Lisa has had her California real estate license suspended for violations involving mobile homes under the California Business and Professions Code. What could she have possibly done? A. Submitted a check to the State of California for mobile home fees and the check was not honored B. Knowingly participated in the sale of a stolen mobile home C. Unknowingly participated in the purchase of a stolen mobile home D. Both A and B

A and B: A. Submitted a check to the State of California for mobile home fees and the check was not honored B. Knowingly participated in the sale of a stolen mobile home

How can a borrower cancel the PMI payment?

A borrower can request the cancellation of PMI payments when the equity reaches 20% of the appraised value.

Hannah want to lease a house from Max. The Contractual Lease states that Hannah, the tenant, will be leasing from Max, the landlord, for two years beginning July 1. She will pay $1,000 per month and it is due by the first of each month. Is there a minimum requirement for a California lease missing? A. No, the lease has met all of the minimum lease requirements of the state of California B. Yes, the missing minimum requirement is the absence of the issue of a security deposit C. Yes, the missing minimum requirement is the absence of any assignment and subletting options. D. Yes, the missing minimum requirement is the absence of a sufficient description of the property such as an address or legal description. The minimum requirements are: duration of the lease, amount of rent, due date, name of the parties, sufficient description of the property and evidence that both parties intend to create a landlord-tenant relationship.

D. Yes, the missing minimum requirement is the absence of a sufficient description of the property such as an address or legal description. The minimum requirements are: duration of the lease, amount of rent, due date, name of the parties, sufficient description of the property and evidence that both parties intend to create a landlord-tenant relationship.

What is the process of a deed of trust?

A deed of trust involves three parties: a lender, a borrower, and a trustee. The lender gives the borrower money. In exchange, the borrower gives the lender one or more promissory notes. As security for the promissory notes, the borrower transfers a real property interest to a third-party trustee. Should the borrower default on the terms of her loan, the trustee may take full control of the property to correct the borrower's default.

What are things an escrow agent should never do?

A licensed escrow agent may not pay fees to real estate brokers or others for referral of business: 1. This "fees" would include gifts of merchandise or other things of value 2. An escrow agent cannot disburse a real estate broker's commission prior to the closing of the escrow Escrow licensees may not solicit or accept escrow instructions or amended or supplemental instructions containing any blank to be filled in after signing or initialing 3. They may not permit any person to make any addition, deletion, or alteration of an escrow instruction unless it is signed or initialed by all persons who had signed or initialed the instructions 4. A real estate broker may not decide on an escrow holder as a condition of the transaction, but may suggest an escrow holder if requested to do so by the parties 5. A real estate agent may suggest an escrow holder as long as he doesn't make using that escrow holder a condition of the transaction and as long as he discloses any interest he may have in the escrow company. He also may not accept any fee from the escrow company for suggesting them to the clients. 6. Civil Code Section 2995 prohibits: - Any real estate developer from requiring as a condition precedent to the transfer of real property containing a single-family residential dwelling - Escrow services affecting such transfer be provided by an escrow entity in which the developer has a financial interest

Bill bought his home for $150,000 seven years ago and have lived in it ever since. He made $50,000 of improvements and sold the home for $450,000. He paid $30,000 in selling expenses including the broker's commission. On what amount will he pay capital gains tax? A. $0 B. $100,000 C. $250,000 D. $300,000

A. $0

California law requires a lien filer to be a licensed contractor unless the homeowner knows the worker was unlicensed and the work performed was less than: A. $500 B. $700 C. $1,000 D. $1,200

A. $500

According to FIRPTA, what percent would a buyer who is buying the property as a personal residence need to withhold when purchasing a $200,000 home from a foreigner? A. 0% B. 15% C. 3.30% D. 10%

A. 0%

If a person believes he or she has been discriminated against, within what period of time of the alleged act must a complaint be filed with HUD? A. 1 year B. 2 years C. 3 years D. 4 years

A. 1 year

What percentage of the gross sales price must a buyer withhold and send to the IRS if the seller of real property is a foreigner? A. 15% B. 20% C. 12% D. 10%

A. 15%

How many years can an attachment lien be extended after the original 3 years? A. 2 years B. 3 years C. 4 years D. 5 years

A. 2 years

How many years are attachment liens valid from the date of the writ of attachment? A. 3 years B. 4 years C. 5 years D. 7 years

A. 3 years

ECOA requires that a lender send a denial notice within: A. 30 days B. 60 days C. 90 days D. 120 days

A. 30 days

The two methods that are typically used when closing agents and lenders calculate items that need to be prorated are the 12-month/360-day method and the: A. 365 day method B Half year method C. Prorated calculation method D. 6-month/180 day method

A. 365 day method

The Juarez family are moving into a new home and are having the home tested for Radon. What is the interior reading that should concern the family? A. 4 pCi/L Radon and above B. 2.73 pCi/L Radon and above C. 3.52 pCi/L Radon and above D. They should be concerned at the presence of any level of Radon in their new home

A. 4 pCi/L Radon and above

Civil Code Section 1365.1 states that the homeowner association must distribute a written notice entitled "Notice Assessments and Foreclosure" to each member of the common interest development association. How long immediately preceding the beginning of the association's fiscal year must this notice be distributed? A. 60 days B. 90 days C. 3 months D. 4 months

A. 60 days

When dealing with the sale of a business, which is not a true statement? A. A Bill of Sale gives title to the business equipment. B. Goodwill is an intangible asset that results from the reputation of the business. C. Tangible assets transferred in the sale include inventory, fixtures and equipment. D. The UCC is a body of law that standardizes a number of business practices.

A. A Bill of Sale gives title to the business equipment.

Jane sold her personal home for $148,000. Two months later she purchased and moved into a new home that cost $145,000. The adjusted cost basis of the first home was $140,000. For purposes of federal income tax, which statement is true? A. A basis of $148,000 and no taxable gain B. A basis of $145,000 and a taxable gain of $3,000 C. A basis of $140,000 and a taxable gain of $8,000 D. A basis of $140,000 and no taxable gain

A. A basis of $148,000 and no taxable gain

Which of the following statements is not true regarding a broker acting as an escrow agent? A. A broker may advertise that they are an escrow agent. B. A broker cannot use the word "escrow in a fictitious name. C. The broker must conduct the escrow personally and not delegate any escrow activities. D. Written escrow instructions must include a statement with the broker's name, indicating they are a licensed real estate agent.

A. A broker may advertise that they are an escrow agent.

What is a point of beginning refers to? A. A description starting at a designated place on a parcel using the Metes and Bounds System. B. A fixed object used to establish real estate boundaries using the Metes and Bounds System. C. Lines on either side of a principal meridian using the Rectangular Survey System. D. Lines running east and west parallel to a major base line using the Government Survey System.

A. A description starting at a designated place on a parcel using the Metes and Bounds System.

What clause in a sale contract states under what conditions the buyer can cancel the contract without default and receive a refund of the earnest money? A. A financing contingency clause B. An earnest money deposit clause C. An escrow clause D. A closing clause

A. A financing contingency clause

A corporation is found guilty of charging purchasers advanced fees for securing mortgage loans on homes they have listed. What is the punishment for the violations? A. A fine up to a maximum of $50,000 B. A fine up to a maximum of $10,000 with up to six months of prison time or a combination of both C. A restraining order issued against the corporation protecting clients and restitution and or damages paid D. None of the above

A. A fine up to a maximum of $50,000

Sam is selling one of his rental homes. His advertisement reads: "For sale by owner - owner will finance - no down payment!" What are the criteria for being considered a creditor under the Truth in Lending act? A. A lender must lend funds 25 times a year and/or must lend the funds for at least five housing loans annually. B. A lender must lend funds five times a year and/or must lend the funds for at least 25 housing loans annually. C. A lender must lend funds 20 times a year and/or must lend the funds for at least five housing loans annually. D. Every lender is considered a Truth in Lending creditor and must follow all the law's regulations.

A. A lender must lend funds 25 times a year and/or must lend the funds for at least five housing loans annually.

Which form of payment is most common for a property manager? A. A percentage of income B. A salary C. A flat fee D. All of the above

A. A percentage of income

What are the parts of a mortgage loan? What purpose does each part serve? A. A pledge and collateral. A pledge is a promise to pay, and a collateral allows a lender the right to foreclose if the borrower does not pay. B. A promissory note, a deed of trust, and collateral. A promissory note is an I.O.U. to pay. A deed of trust secures the interest in a borrower's real property. A collateral allows a lender the right to foreclose if the borrower does not pay. C. A pledge and collateral. A pledge allows a lender the right to foreclose if the borrower does not pay and a collateral is a promise to pay. D. None of the above

A. A pledge and collateral. A pledge is a promise to pay, and a collateral allows a lender the right to foreclose if the borrower does not pay.

Which statement is not true about an offer? A. A purchase offer is a binding contract between the buyer, the seller and their agents. B. If a seller changes the terms of the offer to purchase, he has created a counteroffer. C. An offer or counteroffer can withdraw at any time before it has been accepted. D. Once the offer or counteroffer is accepted and the offeror has been notified, a legal contract is formed.

A. A purchase offer is a binding contract between the buyer, the seller, and their agents.

What is the elective share statute? A. A statue that enables a surviving spouse to make a minimum claim to the deceased spouse's property in lieu of provisions in a will B. A statute that assures a wife's life estate interest in the husband's property C. A statue that protects family members against losing their homes to general creditors attempting to collect on debts D. A statute that allows surviving spouses definitive rights to all family property after a spouse's death

A. A statue that enables a surviving spouse to make a minimum claim to the deceased spouse's property in lieu of provisions in a will

Which of the following statements concerning California trust account requirements is false? A. A trust account may be an interest-bearing account B. A sales person, licensed to the broker may under certain conditions make a withdrawal from the broker's trust account C. An out-of-state trust account is permitted under certain conditions D. Both A and C

A. A trust account may be an interest-bearing account.

When agent Tom meets with his sellers to explain his advertising plan, he should make sure the owners understand that: A. Advertising a similar property can and does create interest in their property B. He can't afford to continue advertising if the ads he places fail to generate interest C. There are only so many advertising dollars to go around D. Most of the advertising budget is earmarked for low-priced homes

A. Advertising a similar property can and does create interest in their property

What is the act of converting personal property to real property by attaching it to the real estate called? A. Affixing B. Severing C. Appending D. Detaching

A. Affixing

Alex owns a duplex and lives in one unit. He refuses to rent the other unit to families with children. Did Alex violate the Fair Housing Act? A. Alex did not violate the Fair Housing Act since he is the owner of a dwelling that has fewer than four units and one unit is owner-occupied. B. He violated the Fair Housing Act because discrimination exists. C. He does not like children, they are not under the act. D. None of the above

A. Alex did not violate the Fair Housing Act since he is the owner of a dwelling that has fewer than four units and one unit is owner-occupied.

Marita and Alexandra set up a Limited Partnership. Marita is named General Partner and Alexandra is named Limited Partner. Marita embezzled funds from the investors. Is Alexandra liable for Marita's indiscretion? A. Alexandra is only liable if she is named as general partner in the certificate or if she participates in control of the business. B. Alexandra is as liable to the investors as Marita. Unless she was involved in the crime, she is only financially liable. C. Alexandra is liable and a partner whether it be a general or limited partner. D. Both B and C

A. Alexandra is only liable if she is named as general partner in the certificate or if she participates in control of the business.

At a community meeting, Agent Amanda tells a group of families in an established neighborhood that several India families are planning to buy homes in their neighborhood. She tells them this could decrease their property values. Which statement is true? A. Amanda is guilty of blockbusting. B. This action is legal but very unprofessional. C. Amanda is guilty of redlining. D. This action is deliberate misrepresentation.

A. Amanda is guilty of blockbusting.

What type of contract is one that cannot be fully understood because important terms are missing? A. An indefinite contract B. An inferred contract C. An ambiguous contract D. A presumed contract

A. An indefinite contract

John is trying to keep things straight while he studies. He's having a rough time distinguishing federal and state legislation. Help John with the primary focus of federal legislation. A. Anti-discrimination laws and fair trade practices B. Agency and disclosure requirements C. Anti-discrimination and disclosure requirements D. Fairtrade practices and agency disclosures

A. Anti-discrimination laws and fair trade practices

Elliot has misrepresented himself by advertising on the Internet. He is advertising in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation? A. Any false or misleading advertising on the Internet or via any other medium can result in administrative, civil and/or criminal penalties. B. Elliot has not done anything wrong. Advertising on the Internet cannot be controlled by the Real Estate Commission. C. Elliot has not done anything wrong since he once held a salesperson license. Advertising on the Internet in this case would be legal. D. Both B and C

A. Any false or misleading advertising on the Internet or via any other medium can result in administrative, civil and/or criminal penalties.

Where should John look to find information about the largest area of the NAR Code of Ethics Standards and Practices? A. Article 16 - Ethics and Agency Relationships B. Article 12 - Truth in Advertising C. Article 9 - Disclosure D. Article 1 - Protecting the Best Interest of the Client

A. Article 16 - Ethics and Agency Relationships

What would be the least effective way to get to know your buyers' needs? A. Ask closed-ended questions. B. Listen carefully to everything your prospects say and repeat some specifics back at appropriate times so that they know you have heard what they said. C. Watch actions and body language. D. Ask open-ended questions.

A. Ask closed-ended questions

The signature of a notary public is known as: A. Attestation B. Acknowledgment C. Alienation D. Testimonium

A. Attestation - the signature of the notary

The lead-based paint disclosure is required for homes built: A. Before 1978 B. Before 1976 C. After 1980 D. After 1975

A. Before 1978

Agent Simpson tells residents of a neighborhood that minorities are moving into the neighborhood, and property values are sure to plummet. Simpson goes to say, "resale values will suffer, the neighborhood will deteriorate, and if they don't sell their homes now, they will lose money." What form of illegal discrimination is Agent Simpson practicing? A. Blockbusting B. Redlining C. Steering D. Discriminatory Misrepresentation

A. Blockbusting - prohibits by California Code is the practice of inducing owners in an area to sell or rent to avoid an impending change in the ethnic or social makeup of the neighborhood that will cause values to go down

Soliciting a listing or inducing someone to sell by telling them that the people of a certain color group are moving in the neighborhood. Which term applies to this scenario? A. Blockbusting/panic selling B. Puffing C. Fraud D. Steering

A. Blockbusting/panic selling

John and Sam have closed escrow on their real estate transaction. Who will handles the completion of the transaction and both parties paperwork? A. Both parties close the transaction with AVC Escrow, the dual agency in which both parties are represent. AVC Escrow then changes to separate agency and also handles each parties separate paperwork. B. Although AVC Escrow served as the dual agency representing both parties until escrow closed. John and Sam change to separate agencies for the handling of final paperwork. C. AVC Escrow closes for John. The real estate listing agent closes escrow for Sam. Both parties use an agreed upon title company, acting as a dual agency to complete the transaction and final paperwork. D. None of the above

A. Both parties close the transaction with AVC Escrow, the dual agency in which both parties are represent. AVC Escrow then changes to separate agency and also handles each parties separate paperwork.

What describes when a buyer files a claim in situations where the seller has not delivered the title after all other terms of the contract have been satisfied? A. Breach of contract B. Covenant C. Change of contract D. Contingencies

A. Breach of contract

Who is liable for withholding on the sale of a property owned by a foreigner? A. Buyer B. Seller C. Agent D. Escrow Officer

A. Buyer

Which of the following are functions of the Federal Reserve? A. Buying/selling of securities and discount rates B. Participation of financing C. Debt coverage D. Overseas lending laws

A. Buying/selling of securities and discount rates

What independent contractor form must be used by brokers in California? A. California Association of Realtors (CAR) Independent Contractor Agreement form B. California Brokerage Agreement form C. Real Estate Association Claim form D. Independent contractor form agreement

A. California Association of Realtors (CAR) Independent Contractor Agreement form

Which circumstance require a lease to be in writing? A. California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year or has a term of less than one year which expires more than one year after the agreement is reached. B. The California Department of Real Estate requires a lease to be in writing if it has a term of one year or longer or has a term of less than one year which expires more than one year after the agreement is reached. C. California Civil Code Section 1942 requires a lease to be in writing if it has a term or one year or longer or has a term of less than two years which expires more than one year after the agreement is reached. D. The Commissioner of Real Estate requires a lease to be in writing if it has a term or one year or longer or has a term of less than two years which expires more than one year after the agreement is reached.

A. California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year or has a term of less than one year which expires more than one year after the agreement is reached.

Which AIDA characteristics are the most critical in advertisement? A. Capturing attention B. Arousing interest C. Creating desire D. Prompting action

A. Capturing attention

In the Uniform Commercial Code, negotiable instruments are all of the following except: A. Cash B. Promissory notes C. Drafts D. Checks

A. Cash

The collection of Roman law contributed the model for which type of law? A. Civil law B. Criminal law C. Case law D. Common law

A. Civil law

Which regulation or sections apply to the use of the Internet for advertising in California? A. Commission's Regulation 2770 B. Commission's Regulation 007 C. Business and Professions Code, Sections 10235.5 and 10140.6 D. Both A and B

A. Commission's Regulation 2770: Anyone who advertises about services over the Internet is NOT to be considered a real estate broker in California, if ONE of these apply: 1. If the advertisement or other information involves a service, but is: - NOT directed to any particular customer located within California - LIMITED to general information about the services offered to customers or the public in general - INCLUDES the following words: "The services referred to herein are not available to persons located within the State of California." 2. If the advertisement or information does not involve a service provided in connection with activity for which a real estate license is required 3. If the advertisement or information is not being published, circulated, or transmitted on behalf of another person

MTH Bank has given McKinley a written pledge to lend $250,000 on a new construction home for 30 years at 6.53%. McKinley will now present this pledge to the subdivision's sales agent to continue with his new home construction. Which loan definition applies? A. Conditional approval B. Underwriting C. Exculpatory clause D. Non-recourse clause

A. Conditional approval - a written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms

What is a blanket mortgage? A. Covers more than one piece of property. B. Entails entering into two agreements simultaneously. C. Is subordinate to a first mortgage. D. Reduces the monthly payment for a borrower during the initial years.

A. Covers more than one piece of property.

A lien is put on a property by: A. Creditor B. Owner C. Lessee D. Seller

A. Creditor

A lien is put on a property by: A. Creditors B. Owners C. Lessees D. Sellers

A. Creditors

Sumatra lost his home in a foreclosure. The proceeds from the foreclosure sale were not sufficient to cover his debt then the lender take him to court to obtain more money. Which of the following applies to this situation? A. Deficiency Judgement B. Deed in Lieu of Foreclosure C. Equitable Right of Redemption D. Non-Judicial Foreclosure Judgment

A. Deficiency Judgment - when a foreclosure property sale did not satisfy the lender's claim

What is the correct order of regulatory agency jurisdiction changes to non-corporate California real estate syndicates since the Real Estate Syndicate Act's inception in 1970? A. Department of Corporations, California Department of Real Estate, Department of Corporations B. California Department of Real Estate, Department of Corporations, Real Estate Commissioner C. Real Estate Commissioner, California Department of Real Estate, Department of Corrections D. Real Estate Commissioner, California Department of Real Estate, Department of Corporations

A. Department of Corporations, California Department of Real Estate, Department of Corporations

A developer wants to build a sprawling two-story office complex in an urban area of town. They will replace ten blocks of old high-rise buildings but the zoning commission does not coincide with the developer. Which type of zoning regulation applies here? A. Directive Zoning B. Aesthetic Zoning C. Bulk Zoning D. None of the above

A. Directive Zoning - to use zoning as a planning control to encourage use of land for it's highest and best use.

What is defined as advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin? A. Discriminatory advertising B. Behavioral advertising C. Predatory advertising D. Corporate advertising

A. Discriminatory advertising

Karen and Al obtained a 30-year fixed-rate, fully amortized loan when they purchased their home. Which statement is true? A. Each of their payments is for the same amount. B. They will owe a balloon payment at the end of the loan term. C. The same amount will go toward the principal every month. D. The interest payment is always smaller than the amount allocated to the principal.

A. Each of their payments is for the same amount.

Mrs. Jenkins has lived in her little 1940s cottage for forty years. Her home is immaculately maintained, it has a beautiful, well-manicured garden, and it is lovely inside and outside. But the neighbors have let their properties go downhill. There is no curb appeal to any of the other homes in that neighborhood. Mrs. Jenkins' neighborhood is definitely in decline. Which type of depreciation apply? A. Economic, environmental, or external obsolescence B. Physical deterioration C. Functional obsolescence D. Physical deterioration and functional obsolescence

A. Economic, environmental, or external obsolescence

When a lender is evaluating a buyer's ability to repay a loan, the lender looks at all of these items except which one? A. Educational history B. Past credit history C. President employment status D. Liabilities

A. Educational history

When the government condemns a property and cause it to be sold for the greater good, it exercises: A. Eminent domain B. A lien C. Continuous use D. Commercial easement

A. Eminent domain

Mortgage lenders are prohibited from discriminating in giving credit to prospective borrowers based on race, color, religion, national origin, sex, marital status, age or dependency on public assistance under which law or regulation? A. Equal Credit Opportunity Act B. Truth in Lending C. Real Estate Settlement and Procedures Act D. Community Reinvestment Act

A. Equal Credit Opportunity Act

If a person dies with no heirs and no one qualified to receive the property, what power will the state use to claim the property? A. Escheat B. Eminent domain C. Sovereignty D. Incentive

A. Escheat

What type of estate is one that continues for a definite fixed period of time? A. Estate for years B. Estate from period to period (periodic tenancy) C. Estate at will (tenancy at will) D. Estate at sufferance

A. Estate for years

Derek's new office is undergoing a minor renovation and he cannot conduct business in the location for six months. He lease temporary office space from Samantha from June 1 to December 30. Which type of lease has Derek signed? A. Estate for years B. Estate at sufferance C. Estate at will D. None of the above

A. Estate for years - has a definite fixed period of time with the beginning and the ending date 1. It is not necessary to give notice to the landlord to terminate an estate for years because it is automatic 2. Renewal is NOT automatic

What is the major difference between a VA loan and a FHA loan? A. FHA insures repayment of the loan, VA guarantees repayment of the loan. B. FHA guarantees repayment of the loan. VA insures repayment of the loan. C. FHA lends the money for the actual loan, VA guarantees repayment of the loan. D. FHA insures repayment of the loan, VA lends the money for the actual loan.

A. FHA insures repayment of the loan. VA guarantees repayment of the loan.

What is FNMA? A. Fannie Mae B. Ginnie Mae C. Fannie Mac D. Freddie Mac

A. Fannie Mae

Which of the following is not an item that a buyer usually pays at closing? A. Fee for clearing the title B. Mortgage recording fee C. Homeowner's insurance D. ALTA policy

A. Fee for clearing the title

Penelope is interested in buying a 150-year-old historic home in San Francisco. If Penelope decides to purchase the home, it must be on the condition the original architectural features are never removed from the home. Additionally, if Penelope buys the home and then sells it at some point, the same condition must be in the sales contract, and so on. What type of freehold estate is this historic home? A. Fee simple defeasible B. Estate in reversion C. Fee simple absolute D. Courtesy estate

A. Fee simple defeasible - provide the usage conforms to stated conditions: 1. Based on an occurrence or non-occurrence of a specified event 2. An estate that dictates "on the condition that.." 3. An estate that provides the "right to re-enter" - Ex. "I will sell my property to you with the condition that alcohol is never served on the premises. If you have a beer party then I have the right to take back the property

What term describes duties a broker has to a client to meet the needs of the client above the needs of everyone else including him or herself? A. Fiduciary duties B. Representation duties C. Client duties D. Disclosure duties

A. Fiduciary duties

Which paragraph of the purchase agreement states that the balance of the purchase price will be deposited into escrow prior to closing? A. Finance Terms B. Offer C. Closing and Occupancy D. Allocation of Costs

A. Finance Terms

Four years ago, Sam purchased a vacant lot for $10,000. He just sold it for $13,000. During the time Sam owned the property he paid $350 per year in taxes, $150 per year on maintenance like grass cutting and $90 per year on miscellaneous expenses. How much did Sam gain or lose on the sale? A. Gained $640 B. Gained $2,360 C. Lost $640 D. Lost $2,360

A. Gained $640

A lender might investigate a borrower's personal assets if that borrower was part of which of the following organizations? A. General partnership B. Corporation C. Limited partnership D. REIT

A. General partnership

After six months, manager Tim wants to terminate the lease of one of his month-to-month tenants. What must Tim do? A. Give the tenant a 30-day notice B. Change the locks on the tenant's apartment C. Give the tenant a 3-day notice to pay or quit D. Give the tenant a 60-day notice

A. Give the tenant a 30-day notice

Which disclosure is required by the Real Estate Settlement Procedures Act? A. Good faith estimate B. Rights regarding discrimination C. Transfer of the loan collection D. All of the above

A. Good faith estimate

Grace sold her property. She had already paid the property taxes for the year. The closing date was October 1; however, the contract allowed Grace to continue to occupy the property until the end of the year. How was the tax proration treated on the closing statement? A. Grace was credited for three months taxes. B. The buyer was credited with three months taxes. C. Grace was credited with nine months taxes. D. There was no tax proration at closing since Grace lived on the property for the entire year.

A. Grace was credited for three months taxes.

RSS Real Estate Brokerage is the listing broker for Pete's property. RSS delegates some of the responsibility of the listing to HGG Real Estate Brokerage. But RSS did not get the principal, Pete, to sign an agreement to the delegation. What is the relationship between RSS and HGG? A. HGG becomes the agent of RSS due to the appointment without the consent of the principal. B. HGG is now assigned agent of the listing broker for RSS. C. HGG becomes the cooperating agent to RSS listing broker representing the Pratte property. D. HGG becomes the dual agent to the RSS listing broker representing the Pratte property.

A. HGG becomes the agent of RSS due to the appointment without the consent of the principal.

What type of residential survey also called a drive-by survey designed to show the location of the house and other large structures of the property? A. House location survey B. Cadastral land survey C. Site survey D. Boundary survey

A. House location survey

Which Fair Housing Law added sex to the list of protected classes? A. Housing and Community Development Act B. Rehabilitation Act of 1973 C. Jones v. Mayer D. Fair Housing Amendments Act

A. Housing and Community Development Act

When is a real estate licensee considered a creditor? A. If the licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy. B. A licensee may always be considered a creditor based on the financial information and qualification of prospective buyers. C. A licensee is never considered a creditor under any circumstance. D. None of the above

A. If the licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy.

Bob leased an apartment for three years from the Steiners. He was never late on his rent in those three years, kept the apartment immaculate, and never caused a moment of trouble. Bob brought his first home and he will move out of the apartment. Bob give the Steiners a sixty days' notice before he move out of the apartment. The apartment was in good condition when Bob moved out. It has been 45 days since he moved out but he has not receive his security deposit refund. When should he expect his security deposit refunded? A. If there had been no damage or cleaning required. The landlord should have refunded his security deposit within 21 days of Bob's vacating the property. B. If there had been no damage or cleaning required. The landlord should have refunded his security deposit within 30 days of Bob's vacating the property. C. If there had been no damage or cleaning required. The landlord should have refunded his security deposit within 14 days of Bob's vacating the property. D. None of the above

A. If there had been no damage or cleaning required. The landlord should have refunded his security deposit within 21 days of Bob's vacating the property.

Mullen owns a home and he lease it out to some college students. They complain that there are bats in the attic and it had bitten one of their roommate. Which guarantee covers the tenant's right that the property meets the minimum health and housing codes? A. Implied Right of Habitability B. Reversionary Right C. Leasehold Interest Right D. Possessory Right

A. Implied Right of Habitability - the landlord by renting the property is guaranteeing that the property meets the minimum health and housing codes

Shakeel sold his home and made an offer on a new home. The offer was accepted and all the details of the sale have been worked out. Shakeel must obtain a loan for the property. What is the best term to describe their position in the transaction's timeline? A. In contract B. Chain of title C. Abstract and opinion D. Both B and C

A. In contract

The word "boot" usually applies to: A. Income tax B. Mortgages C. Promissory notes D. Trust deeds

A. Income tax

Tom and Mary want to purchase their first home. Which of the following would be the least likely place for them to obtain a loan? A. Insurance company B. Credit union C. Mortgage company D. Savings and loan association

A. Insurance company

Which of the following is not an important source of law in the US? A. International law B. US Constitution C. Local ordinances D. Rulings of federal, state, and local agencies

A. International law

What does it mean for a corporation to be closely held? A. It has only a few shareholders B. It is not a public corporation C. The shareholders plan for it to stay a small company D. It does not pay taxes

A. It has only a few shareholders

Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property outside Las Vegas and believes the California market could be very lucrative. Is it permissible for Gerard to advertise in this manner? Why or why not? A. It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license. B. It is not permissible for Gerard to solicit California residents. State-to-State real estate transactions must be approved by the CalBRE. C. Yes, it is permissible for Gerard to advertise his services to California residents. He is only advertising his services not offering any advice so a California license is not needed. D. None of the above

A. It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license.

When is it permissible for a broker to possess an out-of-state trust account? A. It is only permitted if the FDIC insures the account, and the account is used only for specific first loans. B. It is never permitted, all trust accounts must be maintained with a bank or recognized depository located in California. C. It is always permissible to hold an out-of-state trust account. D. None of the above

A. It is only permitted if the FDIC insures the account, and the account is used only for specific first loans.

What does a writ of attachment do? A. It stops a debtor from selling or concealing property B. It forces the sale of a property C. It protects certain property from being sold D. It determines the sale price of a property

A. It stops a debtor from selling or concealing property

Craig has just signed a contract to sell his home to buyer Ivy. The contract has met all the necessary requirements, and all inspections and other mandates have gone along as expected and as agreed to until one week before closing, when Craig decides to back out. However, he understands that he could face legal action by Ivy; so he offers to sell her another house he owns and has rented out for the past few years, in lieu of the Bernardino one promised. The second home is worth $15,000 more than the originally contracted one, and has an extra bedroom. However, Ivy isn't interested. Craig refuses to complete the sale on the original home. Which of the following statements is true of this situation? A. Ivy may sue Craig for specific performance, because no two properties are exactly the same and he hasn't fulfilled his end of the contractual agreement. B. Craig has the right to refuse to sell to Ivy within up to 3 business days prior to the closing date for the sale. No penalties are to be paid from either party to the other. C. Craig has the right to refuse to sell to Ivy within up to the day prior to the closing date for the sale. Any charges incurred by Ivy in the contractual process must be refunded to her by Craig within 24 hours after the original time set for closing. D. Craig cannot force Ivy to accept his offer of the other property. However, under California Civil Code, if the seller in this type of situation (Craig) offers the prospective buyer a home of equal or greater value, with an equal or greater number of bedrooms and square footage, the buyer may not bring legal action against that seller.

A. Ivy may sue Craig for specific performance, because no two properties are exactly the same and he hasn't fulfilled his end of the contractual agreement.

Jack is leasing a home from John for a year. In this arrangement, who has the reversionary right and who has the possessory right? A. Jack has the possessory right and John has the reversionary right B. Jack has the reversionary right and John has the possessory right C. Jack and John both have the possessory right D. Jack and John both share the reversionary right

A. Jack has the possessory right and John has the reversionary right

Jason, a broker, has been accused of conversion. His partner, Justin, has been accused of commingling. Which has been accused of a more serious offense? A. Jason, conversion is considered a much more serious violation than commingling and has heavy criminal penalties. B. Justin, commingling is considered a much more serious violation than conversion and has heavy criminal penalties. C. Both Jason and Justin have been accused of very serious crimes and it will be up to the court system to decide who has committed a more serious offense. D. None of the above

A. Jason, conversion is considered a much more serious violation than commingling and has heavy criminal penalties.

Which of the following would be an example of a licensee specializing in business type? A. Jim specializes in clients who want to buy restaurants. B. Alice knows everything about the exclusive east side neighborhoods. C. Tom specializes in options. D. Chris is a buyer's agent.

A. Jim specializes in clients who want to buy restaurants.

What paragraph in a CAR Residential Purchase Agreement has five sections that outline the joint instructions of the buyer and seller to the escrow holder and defines the roles of the parties in the transaction? A. Joint escrow instructions to escrow holder B. Prorations of property taxes and other items C. Brokers D. Representative capacity

A. Joint escrow instructions to escrow holder

Paul is filling out the Natural Hazard Disclosure Statement. Which of the following conditions is Paul not required to report on this form? A. Lead-based paint was used in the home B. The property is in an area that could flood C. The home sits on an earthquake fault zone D. The property is in a state fire responsibility area

A. Lead-based paint was used in the home

Which are the four elements required for a valid contract? A. Legally competent parties, offer and acceptance, consideration, and legality of object B. Legally competent parties, offer and acceptance, consideration, and terms C. Legally competent parties, offer and acceptance, assignment and legality of object D. Legally competent parties, offer and acceptance, contingency, and legality of object

A. Legally competent parties, offer and acceptance, consideration, and legality of object

Which of the following is not an equitable remedy? A. Liquidated damages B. Rescission C. Quiet title D. Foreclosure

A. Liquidated damages

In a foreclosure suit, what gives public notice that a mortgaged property may soon have a judgment issued against it? A. Lis Pendens B. Statute of Frauds C. Novation D. Principle of Laches

A. Lis Pendens

Jonathan decides to sell his home and transfer all of his property ownership rights to the new buyer. This bundling and selling of rights are known as: A. Livery of Seisin B. Transfer of Appurtenances C. Nonhomogeneous Situs D. Transfer of Chattels

A. Livery of Seisin - selling all of the real estate rights, "I own it and I have the right to sell it," one can own the subsurface, surface and air rights

What financing term in a CAR Residential Purchase Agreement states that the buyer's qualification of the loan is a contingency of the agreement? A. Loan contingency B. Loan contingency removal C. Lender limits on D. Loan contingency buyer credits

A. Loan contingency

Lot 19, block 8, Western Acres Subdivision, City of Sacramento, County of Sacramento, State of California. Which method of legal description applies? A. Lot and Block System B. Metes and Bounds System C. Rectangular Survey System D. Government Survey System

A. Lot and Block System - used to describe properties in residential, commercial and industrial subdivisions

Salesperson George received an offer that he believes is both fair and reasonable but it does not meet the sellers' asking price. What course of action should George follow? A. Make no recommendations and let the sellers decide on their own. B. Work toward acceptance. C. Recommend a counteroffer back to list price. D. Recommend that the seller delay response to make the buyer nervous and then submit a counteroffer.

A. Make no recommendations and let the sellers decide on their own.

Each of the following types of housing with on exception falls under the heading of Common Interest Development. Which is the exception to this? A. Manufactured housing community B. Condominium project C. Community apartment project D. Stock cooperative

A. Manufactured housing community

Adeeb has listed his condo with Maria's broker and she is his listing agent. The listing agreement is signed and the day to begin showing his property is nearing. Adeeb decides the day before the open house to raise his asking price by $20,000.00. How must Maria take care of this contractual change in the price? A. Maria must change the listing price on a price change or extension form B. Maria may make the change on the original contract due to the fact the condo has not been professionally shown by licensees C. The listing price change does not need to be changed on the contract. The price that will be paid for the condo does not have to be the listing price, therefore, it is just a guide, not set in stone. D. None of the above

A. Maria must change the listing price on a price change or extension form.

When an appraiser assumes that no one is being forced to sell at a reduced price because of an impending divorce or similar situation. Both the buyer and the seller are well-informed customers. The appraiser will be hired to determine which of the following? A. Market value B. Insurance value C. Salvage value D. All of the above

A. Market value

Elliot has misrepresented himself by acting in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation? A. Misdemeanor B. Felony C. Held accountable in a possible civil suit D. Both B and C

A. Misdemeanor - a minor wrongdoing

Who is the largest private mortgage insurer? A. Mortgage Guarantee Insurance Corporation B. Fannie Mae C. Freddie Mac D. VA

A. Mortgage Guarantee Insurance Corporation

Which tool will give you the comparative market data the fastest? A. Multiple listing service B. County records C. Company files D. Title companies

A. Multiple listing service

Which of the following duties is not a permitted activity for an unlicensed personal assistant? A. Negotiate agreements regarding commission structuring B. Secure documents that are public information from the courthouse and other sources available to the public C. Have keys made for company listings D. Write advertisements and promotional materials with the approval of the licensee and supervising broker

A. Negotiate agreements regarding commission structuring

Which figure represents the amount of income available as a return to an investor? A. Net operating income B. Potential gross income C. Adjusted gross spendable income D. Effective gross income

A. Net operating income

Which is not a probable reason for a listing to expire without selling? A. No open houses B. Needs repair C. Not properly priced D. Not marketed correctly

A. No open houses

Jeremy opened a coffeehouse in a space leased from Maria. A week before his lease expired, Jeremy moved to a new location without his commercial microwave which was attached to the counter. Eighteen days following notice of Jeremy's right to reclaim the microwave, Maria sold the microwave. Jeremy is furious and threatening legal action. Does he have a suit? A. No, Jeremy does not have a case since the microwave was not reclaimed during the period allowed by the law. B. Yes, Jeremy does have a possible suit since the trade fixture installed microwave is considered personal property and was merely forgotten and not legally for Maria to sell it. C. No, Jeremy does not have a possible suit if he left it in the property then it automatically belongs to the property owner. D. Both A and C

A. No, Jeremy does not have a case since the microwave was not reclaimed during the period allowed by law.

Shane is renting a bungalow from Tom. Shane monthly rent is $1,600 and Tom requires a $6,400 non-refundable security deposit which include the first month rent. Is this an acceptable amount for a security deposit? A. No, the maximum security deposit allowed in California for an unfurnished property is two months rent. The correct amount would be $4,800 including the first month rent. A security deposit cannot be non-refundable. B. No, the maximum security deposit allowed in California for an unfurnished property is one month's rent. The correct amount would be $3,200 including the first month's rent and the security deposit. Additionally, security deposits cannot be labeled as nonrefundable. C. Yes, the maximum security deposit allowed in California for an unfurnished property is three months' rent. The amount of $6,400 includes the first month's rent. The security deposit cannot be labeled as nonrefundable. D. No, there is not a maximum security deposit regulation in California. Landlords may decide on the amount based on the property's value.

A. No, the maximum security deposit allowed in California for an unfurnished property is two months rent. The correct amount would be $4,800 including the first month rent. A security deposit cannot be non-refundable.

Molly took a break from her job as a real estate agent to take care of her kids. Now she want to go back to her job but her license has expired and she did not take any continued education classes required by the CE. Can Molly go back to work? A. No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again. B. Yes, due to Molly's experience, she may petition the DRE for special dispensation for her work-related experience in order to reapply for her license. C. Yes, all license rights lapse after four years of non-renewal. D. None of the above

A. No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.

Demon has a string of misdemeanors. He was just cleared of felony fraud. Damon is now opening a restaurant and wants to serve alcohol. What are Damon's chances of being issued a liquor license? A. Not very good at all. According to the Alcoholic Beverage Control Act, the person must be of good moral character. All of Damon's convictions probably won't bode well with his receiving a license. B. The same as others. Damon only has misdemeanor convictions. He was acquitted of the felony charge. C. Damon may be issued a probationary liquor license due to his previous convictions. D. None of the above

A. Not very good at all. According to the Alcoholic Beverage Control Act, the person must be of good moral character. All of Damon's convictions probably won't bode well with his receiving a license.

What are the steps set forth for a real property securities dealer? Which article do the regulations fall under? A. Obtaining a Comissioner's Permit, an RPSD endorsement on a broker license, and proof of a $10,00 surety bond. The regulations fall under Article 6. B. Obtaining a Comssioner's Permit and proof of a $10,00 surety bond. The regulations fall under Article 5. C. Obtaining a Commissioner's Permit, an RPSD endorsement on a broker license, and proof of a $10,000 surety bond. The regulations fall under Article 4. D. None of the above

A. Obtaining a Commissioner's Permit, an RPSD endorsement on a broker license, and proof of a $10,000 surety bond. The regulations fall under Article 6.

Victoria, the lessee is negotiating to lease a condo from Sanchez, the lessor. They have agreed on the monthly lease payment, the term of the lease, security deposit, and so forth. Victoria plans to start moving in on the first day of next month. Which of the following applies to this situation? A. Offer B. Contract C. Title D. Executed

A. Offer - a promise by one party to act or perform in a specified manner provided the other party acts or performs in the manner requested

Katie and Rich own a rental home they have put up For Sale by Owner (FSBO). They notice the same woman has accompanied several potential buyers viewing the home. They discover that she is a broker that has been showing the home on the sly without their permission. What manner was the agency created? A. Ostensible agency B. Ratification C. Implied agency D. written or expressed

A. Ostensible agency - an agency relationship that arises by the actions of the parties rather than by written agreement

Greg, a licensee, did not have his client sign off on the purchaser's counteroffer. Greg's client verbally approves the new terms but Greg failed to obtain his signature. The deadline for signing the counteroffer is in one hour. Greg decides to sign his client's name. Which Penal Code Section addresses this crime? A. PC 470, 473 B. PC 532a C. PC 504b D. It is not a crime

A. PC 470, 473: Every person who, with the intent to defraud, knowing that he or she has no authority to do so, signs the name of another person or of a fictitious person is guilty of forgery

What is the main difference between condominiums and planned unit developments (PUD)? A. PUD owners own the land where the unit is, not just the airspace around it B. PUD cannot be owned jointly while condominiums can be C. PUD owners are not individually taxed as condominium owners are D. PUD can be individually sold by owners while condominiums cannot

A. PUD owners own the land where the unit is, not just the airspace around it

Mr. and Mrs. Haley are purchasing beachfront property in an upscale development. The home comes equipped with all furnishings. The Haleys want to get a mortgage that will cover the purchase price plus all the furnishings. What kind of mortgage are they looking for? A. Package B. Blanket C. Wraparound D. Buydown

A. Package

Patrice and Michael are in the process of refinancing their townhouse. The mortgage company calls and gives the couple the news they have a lien on their home for non-payment of the previous year's property taxes. What type of lien is on their property? What do they need to do to remedy their situation? A. Patrice and Michael have an involuntary lien placed on their home for delinquent property taxes. The couple needs to pay the taxes any interest/late fees to have the lien removed. B. Patrice and Michael have a voluntary lien placed on their home for delinquent property taxes. The couple must pay the taxes to have the lien removed. C. Patrice and Michael have an equitable lien placed on their home for delinquent property taxes. The couple must pay the taxes to have the lien removed. D. They do not have to pay the taxes to have the lien removed.

A. Patrice and Michael have an involuntary lien placed on their home for delinquent property taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien removed.

What kind of lease contains a recapture clause? A. Percentage B. Net C. Gross D. Graduated

A. Percentage

Pam just bought her first home and wants to budget for upcoming expenses. She will need money for all of the following home-related expenses EXCEPT which one? A. Personal property tax B. Maintenance C. Heating and air conditioning D. Property insurance

A. Personal property tax

In a civil case, the party bringing suit for injury is called the: A. Plaintiff B. Attorney C. Defendant D. Judge

A. Plaintiff

The metes and bounds description always identifies an enclosed area by starting at an origination point called: A. Point of beginning B. Base point C. Linear point D. Conception

A. Point of beginning

Which portion make up the largest section of the real estate exam? A. Practice of real estate and mandated disclosures B. Contracts C. Transfer of property D. Financing

A. Practice of real estate and mandated disclosures

Which is not a benefit of listing with an agent except? A. Preparation of an appraisal of the property B. Help during escrow C. Qualification of buyers D. Help with required forms and disclosures

A. Preparation of an appraisal of the property

Jean makes an offer to purchase one of Helen's listings. Helen cannot contact the seller. In the meantime, she gets another offer on the property from another buyer at a much lower price. What should Helen do? A. Present both offers to the seller B. Present Jean's higher-priced offer first C. Decide which offer is best and present that one D. Call the second buyer and tell him that she cannot present the offer to the seller because it's much too low

A. Present both offers to the seller

What is a court proceeding that generally settles a descendant's estate whether the person has died testate or intestate? A. Probate B. Deposition C. Condicil D. Action

A. Probate

Which proposition limited the maximum amount of tax on real property? A. Proposition 13 B. Proposition 58 C. Proposition 60 D. Proposition 90

A. Proposition 13

Louise recently turned 65, retired, and is downsizing to a smaller home. She was concerned about moving from the home she owned for 40 years with its low assessment to a smaller home, but with a much larger assessment. Which proposition eases her worries? A. Proposition 60 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value. B. Proposition 60 allows homeowners 65 years and older to transfer their base-year tax value to another home of equal or lesser value. C. Proposition 90 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value. D. Proposition 60 allows homeowners 55 years and older to transfer their base-tax value to another home or lesser value.

A. Proposition 60 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value.

Which disclosure form gives detailed information about the property's condition? A. Real Estate Transfer Disclosure Statement B. Agency Disclosure C. Natural Hazard Disclosure Statement D. Mello-Roos Report

A. Real Estate Transfer Disclosure Statement

What is an account that holds all the money collected from license and exam fees and is used for the operating expense of the CalDRE? A. Real estate general fund B. Real estate license fund C. Real estate escrow fund D. Real estate exam fund

A. Real estate general fund

Discharging a contract by mutual agreement is called? A. Rescission B. Initiation C. Revocation D. Retraction

A. Rescission

What describes the right of a mortgagor who has defaulted on a note to redeem or get back the title to the property by paying off the entire mortgage note before the foreclosure sale? A. Right of redemption B. Right of rescission C. Right of action D. Right of payment

A. Right of redemption

Roy Malone owns a large piece of land in the Sonoma Valley. He is planning to subdivide the land into five lots for the construction of luxury homes. What is his roles in the project? and what does he need to do next? A. Roy is considered a subdivider. His first step should be a development plan and this plan must include all state and local government regulations: The Subdivided Lands Law, the Subdivision Map Act, the California Environmental Quality Act, Zoning, and local general and specific plans. B. Roy is considered a developer and he must contact local officials, follow the Subdivided Map Act, and have his subdivided land mapped into lots. C. Roy is considered a developer and he must first file a public report for the subdivision. Then local officials following the Subdivided Map Act have his subdivided land mapped into legal lots. D. None of the above

A. Roy is considered a subdivider. His first step should be a development plan and this plan must include all state and local government regulations: The Subdivided Lands Law, the Subdivision Map Act, the California Environmental Quality Act, zoning, and local general and specific plans.

Wallace and Melissa live in a small rural community of 15,000. They want to purchase a home ad start a home-based business. They have limited income for a home. What is the best loan for them? A. Rural economic and community development (RECD) B. VA C. FHA D. Cal-Vet

A. Rural economic and community development (RECD) - the area must have a population of 20,000 or less: 1. The borrower must provide a limited income record and a need or housing 2. Loans are either made directly by the RECD or may be a private lender with RECD guaranteeing a certain percentage

Katrina had her license suspended for making false promises to clients. She had a habit of telling clients what they wanted to hear and never being able to state the facts. Of course, she could never follow through with her statements and several complaints were filed. Which guidelines constitute most suspensions? A. Sections 10176 and 10177 of the Business and Professions Code. B. Sections 10176 and 10177 of the Regulations of the Commissioner. C. Section 11350.6 of the Welfare and Institutions Code. D. Section 17910 of the California Code.

A. Sections 10176 and 10177 of the Business and Professions Code: Applies to situations in which the licensee involved was not necessarily acting in the capacity of an agent

In a CAR Residential Purchase Agreement, who is responsible for repairing any damages that occur as a result of inspections? A. Seller B. Broker C. Buyer D. Inspector

A. Seller

When there are only a few homes available in a very desirable area, it is a: A. Seller's market B. Buyer's market C. Lender's market D. Depressed market

A. Seller's market

Which of the following statements is not true about a net listing? A. Sets a limit on the commission a broker can earn. B. Is generally viewed as unprofessional. C. Is illegal in many states. D. Allows a broker to have as a commission anything above the minimum the seller sets.

A. Sets a limit on the commission a broker can earn.

TBH, Inc. owns the land for development adjacent to its corporate headquarters. TBH, Inc. is the sole owner of the property. The land will be developed as a shopping and restaurant area. Which form of ownership does this property fall under? A. Severalty B. Unity of possession C. Joint tenancy D. All of the above

A. Severalty

Sue obtained a buydown loan on her newly built home. Which of the following statements is not true? A. She will have to make very high down payment. B. Her interest rate will rise after the first few years. C. The builder paid a lump sum amount at closing to reduce the interest rate for a few years. D. The lender assumes Sue's income will rise over the first few years of the loan.

A. She will have to make a very high down payment.

Ross, a licensed residential real estate appraiser, will go to appraise a real property. How would he appraise the property? A. State the problem, gather, record and verify the necessary data. Analyze and interpret. the neighborhood analysis, neighborhood cycle and the site analysis B. Gather, record and verify the necessary data. State the problem. Neighborhood analysis, neighborhood cycle, and site analysis C. Gather, record and verify the necessary data. State the problem. Analyze and interpret. Neighborhood analysis, neighborhood cycle, and site analysis D. None of the above

A. State the problem, gather, record and verify the necessary data. Analyze and interpret. the neighborhood analysis, neighborhood cycle and the site analysis.

Salesperson Sally tells her senior citizen buyers that the home they want to buy is located in a neighborhood with small children and they are very loud. She tells them they would not be comfortable with this home and she shows them a list of homes in other neighborhoods. What did Sally do? A. Steering B. Blockbusting C. Discriminatory misrepresentation D. Both A and C

A. Steering

Salesperson Sally tells her senior citizen buyers that the home they want to buy is located in a neighborhood with small children and they are very loud. She tells them they would not be comfortable with this home and she shows them a list of homes in other neighborhoods. What did Sally do? A. Steering B. Blockbusting C. Panic selling D. Bluffing

A. Steering - the practice of directly or indirectly channeling customers toward or away from homes and neighborhoods

What describes the transfer by a tenant, the sub lessor of a portion of the leasehold interest to another party, the sublessee through the execution of a sublease? A. Subletting B. Renting C. Owner financing D. Assumption

A. Subletting

Certain disclosures must be made within the Subdivided Lands Public Report Notice of Intention. An amendment to these disclosures has added which of the following to the required disclosures under this notice? A. Supplemental property tax notice B. Automatic stay disclosures C. Brownfield disclosures D. All of the above

A. Supplemental property tax notice - requires a seller or their agent to deliver to the prospective purchaser a disclosure notice that includes: 1. California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes 2. The owner may receive one or two supplemental tax bills depending on when their loan closes 3. The supplemental tax bills are not mailed to your lender, it is the owner's responsibility to pay the bills directly to the Tax Collector

Dan, a real estate agent, suggests an escrow holder to Sydney for her real estate transaction. Is this a prohibited activity in California? A. Sydney requests the information from Dan and he has disclosed any interest he may have in the escrow company then it is not prohibited. B. If Dan has made his suggested escrow company a condition of the transaction, it is a prohibited activity. C. If Dan has made the suggestion of an escrow company without a request of his client, it is not prohibited, just good customer service. D. Both A and B

A. Sydney requests the information from Dan and he has disclosed any interest he may have in the escrow company then it is not prohibited. B. If Dan has made his suggested escrow company a condition of the transaction, it is a prohibited activity.

Which of the following is not a method of involuntary alienation? A. Tacking on B. Escheat C. Adverse possession D. eminent domain

A. Tacking on

Miguel and Maria have found a wonderful condo to lease. They call the owner and express their interest. The owner tells the couple it is no longer available for lease. Two weeks later, Maria sees the "FOR LEASE" sign outside the condo. Which act or law has been violated by the owner? A. The Civil Rights Act of 1866 B. Executive Order 11063 C. The Clayton Antitrust Act D. The American Housing Act of 1949

A. The Civil Rights Act of 1866: Prohibits discrimination on the basis of race and Jones V. Mayer upheld that prohibition in selling or renting residential property

Shivaram and Kiran are buying a home in a new subdivision. A new elementary school is being built in the area. They have been informed the taxes on their new home are substantially higher than the other area, why? A. The Mello-Roos community facilities act of 1982 B. The street improvement act of 1911 C. Proposition 13 D. Proposition 60

A. The Mello-Roos community facilities act of 1982 -the seller of a one-to four-unit residential property must obtain this disclosure notice from the district regarding special tax to give to the prospective buyer

Jane feels she has been discriminated against in her search for a new home. She's a single mother of two who works full time. Where does she go with a complaint? A. The Office of Fair Housing and Equal Opportunity (OFHEO) B. Her real estate agent and HUD C. Her real estate agent, HUD, and MLS. D. The Attorney General's Office

A. The Office of Fair Housing and Equal Opportunity (OFHEO)

Which paragraph of the purchase agreement states that if the buyer defaults after acceptance, they may be liable for the broker's commission? A. Terms and conditions of offer B. Final verification of condition C. Dispute resolution D. Liquidated damages

A. The Terms and Conditions of Offer paragraph states that the agreement is a purchase offer and that if the buyer defaults after acceptance, the buyer may be responsible for the broker's commission.

Which of the following statements is false in reference to a balance sheet? A. The balance sheet shows the business's profits for the last 3 years B. The balance sheet shows the assets of a business as of a particular date C. The balance sheet shows the net worth of a business as of a particular date D. The balance sheet shows the business's liabilities as of a certain date

A. The balance sheet shows the business's profits for the last 3 years

When presenting information about the buyers to the sellers, which piece of information might not be useful in helping the sellers make a decision? A. The buyer's family is pressuring them to purchase this home. B. The buyers have been pre-qualified by a lender. C. The buyers are interested in another property. D. The buyers love the landscaping improvements the sellers have made.

A. The buyer's family is pressuring them to purchase this home.

What does the term "police power" refer to in real estate? A. The constitutional right of the government to regulate private activity to promote the general safety, health and welfare of society. B. Police power allows the government to seize land at their discretion or in reaction to zoning ordinance changes. C. Police power controls and directs land use regarding subdivisions. D. Both A and C

A. The constitutional right of the government to regulate private activity to promote the general safety, health and welfare of society. C. Police power controls and directs land use regarding subdivisions.

Sam has successfully completed the Real Estate Principles course, the Real Estate Practices course, an additional college-level course, and passed the salesperson licensing examination. Which license is available to Sam? A. The four-year salesperson license B. An original salesperson license C. A restricted salesperson license D. A conditional salesperson license

A. The four-year salesperson license

What is the major difference between the real estate business in general and real estate brokerage? A. The general real estate business consists of production, marketing, and financing of real property; a brokerage is directed primarily toward the sale, exchange, lease, rental and financing for compensation. B. The brokerage business consists of production, marketing and financing of real property, the general real estate business is directed primarily toward the sale, exchange, lease, rental and financing for compensation. C. Both a and b D. None of the above

A. The general real estate business consists of production, marketing, and financing of real property; a brokerage is directed primarily toward the sale, exchange, lease, rental and financing for compensation.

Along a non-navigable stream, does an owner own the land, the water, both or neither? What is this right? A. The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right. B. The owner owns the water's edge. It is a Riparian Right. The owner owns the average high water mark. It is a Littoral Right. D. The owner owns the land and the water to the center of the stream. It is a Riparian Right.

A. The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right.

Todd live in a mobile home park. He have lived in the park for five years and have never been late on their rent, utilities, or any other bills. Today the mobile home park landlord has terminated his tenancy. Which of the following is not a justifiable legal reason? Why did Todd have been evicted? A. The park had become overcrowded B. They did not follow rules and regulations C. They had become a substantial annoyance to other tenants D. They failed to sufficiently maintain their property to meet management's standards

A. The park had become overcrowded

The Hannekes are selling their pharmacy to a small investor. They have decided not to follow the regulations set forth by the bulk sale law. Is the sale considered valid between the two parties? A. The sale is considered valid between the two parties, it is void against creditors, they are legally permitted to attach inventory for any debt. B. The sale is considered invalid between the two parties due to not following the regulations set forth by the bulk sale law. C. The sale is considered valid between the two parties and all creditors. The bulk sale law is set up to ease the transfer of inventory in a business sale. D. None of the above

A. The sale is considered valid between the two parties, it is void against creditors, they are legally permitted to attach inventory for any debt.

1943 case People v. Sipper held what decision? A. The selection and preparation of a mortgage or deed by a broker in which a fee was charged, constituted the unlawful practice of law. B. The real estate agent should guard well the privilege of practicing real estate while avoiding stepping over the line of practicing law. C. A real estate profession has limited legal authority as a licensee. D. The real estate licensee could face losing his real estate license for improper behavior

A. The selection and preparation of a mortgage or deed by a broker in which a fee was charged, constituted the unlawful practice of law.

How many primary steps must be taken to develop a general plan? Who is required to develop a general plan? What are the primary steps, in order, to achieve the desired general plan? A. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: resource analysis, formulation of community goals, and the plan implementation. B. There are five primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are: resource analysis, formulation of community goals, and the plan implementation. C. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city is required to develop a general plan. The steps are as follows: resource analysis, the plan implementation and formulation of community goals. D. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: Formulation of Community Goals, a resource analysis and the plan implementation.

A. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are: resource analysis, formulation of community goals, and the plan implementation.

Arbitration is an out of court settlement procedure where: A. Third party has the power to make a binding decision B. Third party attempts to create a compromise C. Third party conducts a discovery D. Third party consults with the judge

A. Third party has the power to make a binding decision

What is the Veteran Administration's primary role in the mortgage market? A. To insure loans made by approved lenders B. To guarantee loans made by lenders C. To lend money directly to borrowers D. To buy loans from other secondary mortgage marketers

A. To insure loans made by approved lenders

What is the Federal Housing Administration's primary role in the mortgage market? A. To insure loans made by approved lenders. B. To guarantee loans made by lenders. C. To lend money directly to borrowers. D. To sell loans to other secondary mortgage marketers.

A. To insure loans made by approved lenders.

Which of the following is not the purpose of laws in our society? A. To make associations between individuals and governments B. To set standards C. To settle disputes D. To safeguard liberties and rights

A. To make associations between individuals and governments

The main purpose of the California Bureau of Real Estate (CalBRE): A. To protect the public. B. To ensure the qualification of applicants and issuance of real estate licenses. C. The regulation of the sale or lease of subdivision interests. D. To advise the California Real Estate Commissioner on real estate matters that are important to the real estate industry and the public.

A. To protect the public

What is the primary role of Fannie Mae? A. To purchase conventional, FHA and VA loans B. To guarantee all FHA and VA loans C. To originate FHA and VA loans D. To ensure conventional, FHA, and VA loans

A. To purchase conventional, FHA and VA loans

The cost approach to value may be derived by: A. Total land valuation + depreciated value of building = value of property cost approach B. Total land valuation + undepreciated value of building = value of property cost approach C. Total land valuation - building valuation = value of property cost approach D. Total land valuation + building valuation = value of property cost approach

A. Total land valuation + depreciated value of building = value of property cost approach

Which federal court reviews IRS rulings? A. US tax court B. Claims court C. US bankruptcy court D. Appeals court

A. US tax court

The manager of a hotel refuses to rent a room to a blind person with a guide dog. What California Fair Housing law has the manager violated? A. Unruh Civil Rights Act B. Rumford Fair Housing Act C. Holden Act D. California Civil Rights Act

A. Unruh Civil Rights Act

Which of the following is not a good direct mail technique? A. Use a self-folding mailer. B. Hand address the mailer. C. Use an attractive first-class stamp. D. Offer something valuable to the reader.

A. Use a self-folding mailer.

All of these statements are true except which one? A. Virtual tours are very expensive marketing tool to use. B. An agent should print off a copy of the listing on the company's internet site to send to the seller. C. Participation in the MLS increases a licensee's inventory. D. Property evaluations from other agents have valuable information for sellers.

A. Virtual tours are very expensive marketing tool to use.

Mario is selling his home to Sid. Tim is the representing agent for both side. Tim initially listed Marion home then realized that the home is perfect for his buyer client, Sid. Mario pay a commission of the sell of his home to Tim's broker for their service then the broker will compensate Tim. Does this transaction constitute an agency relationship? A. When Mario/seller or Sid/buyer pays a commission, it does not create an agency relationship. B. Yes, this constitutes an agency relationship due to the Mario's paying the commission, the relationship would be between Tim, a special agent to Mario and Sid. C. Yes, this constitutes a agency relationship between Mario, Sid and Tim. The payment of commission by the sellers produces a single agency relationship between the parties. D. None of the above

A. When Mario/seller or Sid/buyer pays a commission, it does not create an agency relationship.

Sydney has inherited her grandmother's estate worth approximately $4.5 million. She is worried about paying taxes on the estate and the inheritance. How will these taxes affect her new estate and inheritance? A. While the federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether. B. California has eliminated all estate and inheritance taxes. Due to the elimination, federal estate taxes do not apply in California. C. Sydney will have to pay the applicable estate and inheritance taxes on her grandmother's estate based on her particular taxable situation. D. None of the above

A. While the federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether.

What type of mortgage is one that includes all the personal property and appliances that are installed on the property? A. Wraparound loan B. Bridge loan C. Covered loan D. VA loan

A. Wraparound loan

What type of mortgage loan allows a borrower who has an existing loan to get another loan from a second lender without paying off the first loan? A. Wraparound mortgage B. Swing loan C. Bridge loan D. Construction mortgage

A. Wraparound mortgage

What is an option a creditor can obtain to receive payment by forcing the sale of attached property and collecting a debt? A. Writ of execution B. Constructive notice C. Right of rescission D. Credit assessment

A. Writ of execution

Peter has been offered the position of property manager for a large apartment complex. These apartments are upscale with impeccable maintenance programs and beautiful amenities for its residents. His contract has a clause that states "if at any time during our agreement the property has a vacancy rate of more than 12%, our agreement is cancelled." Should this clause give Peter pause in accepting the position? Does this type of clause have a name? A. Yes, Peter should be giving this position a second thought based on the clause. This type of clause is an Allowable Vacancy Rate. B. No, Peter should not worry about the clause. He needs to have faith in his abilities. The property is upscale and very desirable and should not have a vacancy issue. This type of clause is an Allowable Vacancy Rate. C. No, Peter should not worry about the clause. There are ways to work around such a statement. If necessary, he can rent to anyone regardless of their qualifications to fulfill the required vacancy rate. This type of clause is a Maximum Profit Clause. D. Yes, Peter should be giving this position a second thought based on the clause. This type of clause is a Rate of Return for Owner Clause.

A. Yes, Peter should be giving this position a second thought based on the clause. This type of clause is an Allowable Vacancy Rate.

Jack owns a small home near a school. He does not have any children and does not plan on having them. All of the noise from the playground during the day interrupts Jack while he works from home. Tina, Jack's friend owns a home in a secluded neighborhood. She want to exchange home with Jack. Is this a possibility? A. Yes, a trade of properties exchange is possible if the trade involves no financing and the properties are not mortgaged. B. Yes, a trade of properties exchange is possible if the trade involves no financing. C. No, it is not a possibility, trading real estate is not recognized under California real estate law. D. None of the above

A. Yes, a trade of properties exchange is possible if the trade involves no financing and the properties are not mortgaged.

Amy is confined to a wheelchair. She is self-sufficient in day-to-day living, has a career, and is looking for a new apartment. She decides to take a tour of Golden Gate Gables Apartments. She was very happy with the two-bedroom unit and wants to put in an application for the unit. She has a special van to accommodate her wheelchair that requires an extra-wide disabled parking space. The Golden Gate Gables does not provide any special parking for the disabled. If Amy's application is approved for the apartment, does the apartment complex have to install a special parking spot for Amy? A. Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces. B. No, as long as Amy has received full disclosure of the absence of any special parking for her needs, if she decides to pursue the application further, that is her decision. C. No, Amy cannot expect special accommodations for herself because she decides she would like to live in the complex. It would take time and money to make the necessary changes. The complex is not obligated to make those changes for her. D. Both B and C

A. Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces.

XYZ Corporation is interested in a piece of land for development. They are selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of stock considered a form of financing? A. Yes, it is considered a mortgage financing alternative. B. No, it is not considered a form of financing. C. No, it is simply paying for land with cash proceeds. D. None of the above

A. Yes, it is considered a mortgage financing alternative.

Paul have signed the Exclusive Authorization and Right to Sell listing contract with Meyer's Real Estate. The term of the agreement was sixty days. After the expiration of the agreement, Paul sold his home to a couple who were shown the home by a salesperson licensed to Meyer's Real Estate. Does the real estate company have any claim to compensation from the sale? A. Yes, under the listing's "safety clause", there is a period of time set forth after the expiration of the listing contract during which the broker is entitled to compensation if the owner sells to anyone who was shown the property or who made an offer on the property during the agreement--as long as the broker notified the owner in writing of the names of the prospective buyers with whom they negotiated during the listing term. B. No, if the broker could not sell the home during the listing term, Gary and Paul have every right to sell their home themselves to whomever they choose without owing Meyer's Real Estate Company compensation. C. Yes, Meyer's is entitled to both compensation and damages if Gary and Paul sell to a prospective buyer that was gained through Meyer's Real Estate Company. D. None of the above

A. Yes, under the listing's "safety clause", there is a period of time set forth after the expiration of the listing contract during which the broker is entitled to compensation. If the owner sells to anyone who was shown the property or who made an offer on the property during the agreement. As long as the broker notified the owner in writing of the names of the prospective buyers with whom they negotiated during the listing term.

Jacinda makes collections on real estate loans. She made 20 collections and collected $38,000 last year. Must Jacinda be licensed? A. Yes, when a collector makes more thank ten annual collections or collects more than $40,000 then they must be licensed. B. No, when a collector makes more than forty annual collections or collects more than $10,000 then they must be licensed. C. Yes, when a collect makes more than fiftenn annual collections or collects more than $40,000 then they must be licensed. D. Yes, when a collector make more than twenty annual collections or collects more than $30,00 then they must be licensed.

A. Yes, when a collector makes more thank ten annual collections or collects more than $40,000 then they must be licensed.

Which of the following is a required disclosure? A. Agency Relationship Disclosure B. Megan's law C. Asbestos D. All of the above

All of the above: A. Agency Relationship Disclosure B. Megan's Law C. Asbestos

Which of the following are considered a type of common interest ownership? A. Community Apartment Project B. Condominiums C. Stock Cooperatives D. All of the above

All of the above: A. Community Apartment Project B. Condominiums C. Stock Cooperatives

Agent Green was present when two brokers were having an unethical discussion that could be considered collusion. What should he do? A. Concentrate on the pertinent facts of the case B. Think about who stands to gain and lose by his decision C. Explore different solutions to the problem D. All of the above

All of the above: A. Concentrate on the pertinent facts of the case. B. Think about who stands to gain and lose by his decision. C. Explore different solutions to the problem.

Lizette is buying a home. Which of the following are environmental hazards the seller and agent are obligated to disclose? A. Earthquake information B. Lead-based paint C. Electromagnetic fields D. All of the above

All of the above: A. Earthquake information B. Lead-based paint C. Electromagnetic fields

Which of the following statements referring to general taxes in true? A. General taxes are Ad Valorem taxes B. General taxes are used for the general operation of the governmental agency authorized to impose the taxes C. Real property tax, general taxes, are based on the assessed valuation of the property D. All of the above

All of the above: A. General taxes are Ad Valorem taxes B. General taxes are used for the general operation of the governmental agency authorized to impose the taxes C. Real property tax, general taxes, are based on the assessed valuation of the property

What are the advantages of owning a home? A. Increase in property value B. Increase in equity C. Tax deductions D. All of the above

All of the above: A. Increase in property value B. Increase in equity C. Tax deductions

Why are sales contracts no longer a popular financing instrument in California? A. It is very difficult for the seller to remove a buyer that is in default. B. The buyer is at risk because he holds no immediate title to the property. C. Court battles involving both the seller and buyer could be lengthy and costly. D. All of the above.

All of the above: A. It is very difficult for the seller to remove a buyer that is in default. B. The buyer is at risk because he holds no immediate title to the property. C. Court battles involving both the seller and buyer could be lengthy and costly.

The duties of a property manager to an owner include which of the following? A. Obtaining maximum profit on the property B. Evaluating the rental market C. Handling tenant complaints and conflicts D. All of the above

All of the above: A. Obtaining maximum profit on the property B. Evaluating the rental market C. Handling tenant complaints and conflicts

Which of the following is considered trust funds? A. Real estate commissions B. General operating funds C. Rents and deposits from broker-owned real estate D. All of the Above

All of the above: A. Real estate commissions B. General operating funds C. Rents and deposits from broker-owned real estate

Which of the following is an action taken by a mineral, oil, and gas specialist on behalf of others? A. Solicit borrowers or lenders for or negotiate loans on mineral, oil or gas property B. Lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property C. Assist another in filing an application for the purchase or lease of, or locate or enter upon mineral, oil, or gas property owned by the state or federal government D. All of the above

All of the above: A. Solicit borrowers or lenders for or negotiate loans on mineral, oil or gas property B. Lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property C. Assist another in filing an application for the purchase or lease of, or locate or enter upon mineral, oil, or gas property owned by the state or federal government

A chain of restaurants would like to begin opening new sites along the Pacific Coastline. The owner wants all of the restaurants beach side with customer access to the beach and water from the restaurant. Which of the following ordinances or acts could govern the planning and opening of the beachfront restaurants? A. The California Conservation Act and the California Environmental Quality Act of 1970 (CEQA) B. The Clean Air Act C. The National Environmental Policy Act D. All of the above

All of the above: A. The California Conservation Act and the California Environmental Quality Act of 1970 (CEQA) B. The Clean Air Act C. The National Environmental Policy Act

Zoning ordinances have changed in the area adjacent to a residential neighborhood. The residents are incensed a retail shopping area is being developed one block from their subdivision. They are concerned about the traffic noise, and what this will do to their property values. What must the new zoning ordinances ensure? A. The power be exercised in a reasonable manner B. The provisions be clear and specific C. Freedom from discrimination D. All of the above

All of the above: A. The power be exercised in a reasonable manner B. The provisions be clear and specific C. Freedom from discrimination

Zoning ordinances have changed in the area adjacent to a residential neighborhood. The residents are incensed a retail shopping area is being developed one block from their subdivision. They are concerned about the traffic, noise, and what this will do to their property values. The new zoning ordinances must ensure: A. The power be exercised in a reasonable manner B. The provisions be clear and specific C. Freedom from discrimination D. All of the above

All of the above: A. The power be exercised in a reasonable manner B. The provisions be clear and specific C. Freedom from discrimination

Any false or misleading advertising, whether on the Internet or via any other medium, can result in which of the following types of penalties? A. Civil B. Administrative C. Criminal D. Any of the above

Any of the above: A. Civil B. Administrative C. Criminal

What describes a transfer of the entire leasehold interest by a tenant to a third party?

Assignment - the transfer of an entire leasehold interest from a tenant to a third party

Mike bought his home last year for $150,000. His property taxes would be assessed at: A. $1,000 B. $1,500 C. $2,250 D. $3,000

B. $1,500

Sal bought a personal residence for $150,000. He made $150,000 of improvements and sold it. He sold the home for $750,000 and paid $50,000 in selling expenses including the broker's commission. On what amount will he pay capital gains tax? A. $0 B. $150,000 C. $200,000 D. $500,000

B. $150,000

A broker is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen-year loan. What is the maximum commission for the broker? A. 5% of the principal of the loan B. 10% of the principal of the loan C. 15% of the principal of the loan D. 2% of the principal of the loan

B. 10% of the principal of the loan

According to FIRPTA, what percentage of estimated tax of the sale price is required to withhold in a sale of property owned by a foreigner? A. 10% B. 15% C. 20% D. 25%

B. 15%

How old must a candidate be in order to obtain a real estate license? A. 21 B. 18 C. 16 D. 23

B. 18

Within how many days of providing labor, material, or services must preliminary notice be given when filing a mechanic's lien? A. 10 days B. 20 days C. 30 days D. 40 days

B. 20 days

How much notice must a landlord give a tenant to enter a rental property in most situations? A. 2 days B. 24 hours C. 12 hours D. 8 hours

B. 24 hours

A broker who receives a buyer's money deposit that is not in the form of a check must deposit it in the appropriate account within how many days following receipt of the funds? A. 10 business days B. 3 business days C. 7 business days D. 5 business days

B. 3 business days

Within how long of an alleged violation does a person have to file a complaint with the Commissioner regarding the actions of a real estate licensee in California? A. 1 year B. 3 years C. 6 months D. 18 months

B. 3 years

How long does the lender have to inform an applicant that they were rejected for a home loan? A. 60 days B. 30 days C. 90 days D. 120 days

B. 30 days

A licensee who is 70 years old or older is exempt from the continuing education requirements if that person has been a licensee in good standing in California for at least: A. 25 years B. 30 years C. 15 years D. 20 years

B. 30 years

Under the amended Davis-Stirling Common Interest Development Act, in order to grant the exclusive use of a common area to one or more owner, there must be a passing affirmative vote of what percentage of the owners of that common interest development? A. 51% B. 67% C. 69% D. 75%

B. 67%

How many days does a seller have after acceptance if not specified to disclose if the property is a condominium or planned development? A. 10 B. 7 C. 14 D. 21

B. 7

How many days notice before the date of increase must be given to the homeowner in a mobile home lease agreement regarding the increase of rent? A. 30 days B. 90 days C. 45 days D. 60 days

B. 90 days

What type of contingency gives the buyer time to apply for and obtain financing? A. A Preliminary Title Contingency B. A Buyer Financing Contingency C. A Sale of Buyer's Property Contingency D. A Home Inspection Contingency

B. A Buyer Financing Contingency

What is the difference between Condos and cooperatives (co-ops)? A. A stock cooperative buyer receives a fee interest or deed to their unit. A condominium is a corporation formed to own the land. The buyer would not receive a grant deed but does share in the corporation and the right to occupy a specific unit. B. A condominium buyer receives a fee interest or deed to their unit. A stock cooperative is a corporation formed to own the land. The buyer would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit. C. A condominium buyer receives a fee interest or deed to their unit. A stock cooperative is a form of ownership in which each of the investors holds a specific unit and owns the right to occupy that unit for a specific period of time. D. A condominium is a form of ownership in which each of the investors holds a specific unit and owns the right to occupy that unit for a specified period of time. A stock cooperative is a corporation formed to own the land. Veronica would not receive a grant deed but does not share in the corporation and the right to occupy a specific unit.

B. A condominium buyer receives a fee interest or deed to their unit. A stock cooperative is a corporation formed to own the land. The buyer would not receive a grant deed but does share in the corporation and the right to occupy a specific unit.

Which is not a true statement about the Americans with Disabilities Act? A. A broker might need to change the layout of the office to make the aisles wider for clients in wheelchairs. B. A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities. C. An apartment manager might be required to allow a tenant with a disability to widen a doorway. D. A shopping center might have to remodel their public restrooms.

B. A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.

When a buyer hands over earnest deposit money to a salesperson licensed to a broker, or to the broker themselves, what type of relationship does this create? A. A client relationship with the broker obligated to give full disclosure B. A fiduciary relationship with the broker having a fiduciary responsibility to the funds' owners C. A buyer relationship with the broker obligated to give full disclosure to the funds' owners D. Both A and C

B. A fiduciary relationship with the broker having a fiduciary responsibility to the funds' owners.

What type of agency is created between the broker and salespeople? A. A special agency B. A general agency C. A universal agency D. An employee agency

B. A general agency

What type of survey is a boundary survey with the additional location of all the interior improvements? A. A topographic survey B. A location survey C. A site planning survey D. A construction survey

B. A location survey

What describes a portion of land delineated by boundaries? A. A section B. A parcel C. A tier D. A plot

B. A parcel

What is a map drawn to scale the division of land? A. A survey B. A plat C. A chart D. A plant

B. A plat

When a seller receives an offer on their property, what action would free them to consider other offers and also free the buyer to consider other properties or to make another offer on the same property? A. A counteroffer B. A rejection C. An acceptance D. A referral

B. A rejection

Which of the following would not qualify as a 1031 exchange? A. An apartment building for a vacant lot B. A rental condominium for a recreational vehicle C. A farm for a storefront D. A warehouse for a rental home

B. A rental condominium for a recreational vehicle

A customer is not a client until: A. Disclosures are signed B. A representation agreement is signed C. It is mutually and orally agreed upon D. The broker signs an agency form

B. A representation agreement is signed

What type of contingency can be put in place when a buyer has already accepted an offer on their current home, but has not closed? A. A kick-out clause B. A settlement contingency C. A financing contingency D. A sale and settlement contingency

B. A settlement contingency

What authorizes a use that is not consistent with the zoning ordinance in a literal sense, yet is clearly beneficial or essential to the public welfare? A. An accessory use B. A special use permit C. A zoning ordinance D. A deed restriction

B. A special use permit

An association of two or more people who combine financial resources to achieve investment objectives is: A. Not allowed in California B. A syndicate C. Made up of wealthy individuals D. A group of brokers

B. A syndicate

Bruce, a private in the US Army, has applied for his certificate of eligibility and been approved. He wants to purchase a condo for himself. What is the maximum amount lenders will loan Bruce based on his veteran status? A. A veteran's basic entitlement is $100,000. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount but generally lenders limit VA loans to $400,000. B. A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount but generally lenders limit VA loans to $417,000. C. A veteran's basic entitlement is $104, 250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount but generally lenders limit VA loans to $425,000.

B. A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $417,000.

What covenant in a deed of trust document states that if the borrower violates any of the covenants of the contract, the beneficiary may call for payment of the loan in full and the trustee may sell the property after they have filed all the proper notice? A. Reconveyance B. Acceleration C. Assignment of rents D. Expenditures

B. Acceleration

David missed his third home payment this month. The lender has called the entire balance due and payable immediately. Which clause applies to this situation? A. Alienation Clause B. Acceleration Clause C. Satisfaction of Mortgage Clause D. Satisfaction Clause

B. Acceleration Clause - when the borrower default then the lender can call the entire balance due and payable immediately

Which section in the CAR Counter offer states that a binding agreement is created when a signed acceptance is personally received by the maker of the counteroffer or the person's authorized agent? A. Offer B. Acceptance C. Expiration D. Terms

B. Acceptance

Which of the following elements is not necessary for a valid contract? A. Offer and acceptance B. Accession C. Legality of object D. Consideration

B. Accession - the gain or loss of property through forces of nature, labor or additional new materials

Alex, a Nevada developer, has a very large development of attached retirement villas. He is interested in advertising this development in California. What must Alex do to promote and sell his Nevada development in California? A. Due to his previous experience selling to the citizens of California is exempt from any regulations or reports required before advertising. B. According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer. C. According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from the California Commissioner of Real Estate and keep a copy of this report for his own records. D. According to California State subdivision regulations, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer.

B. According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer.

What provides legal, public, and constructive knowledge to everyone about the ownership of a property? A. Contract B. Act of recording C. Title D. Judgement

B. Act of recording

If a licensee lists a home in a predominantly minority neighborhood, how can they avoid steering when advertising in newspapers? A. Advertise the property has multi-cultural B. Advertise in a city-wide newspaper C. Have the Equal Opportunity slogan in the advertising D. Advertise in the minority neighborhood's newspaper

B. Advertise in a city-wide newspaper

Patrice has purchased a century-old townhouse in San Francisco. She wants to make some changes and updates to both the exterior and interior. She is not happy with the historic pediments outside of the townhouse. Patrice's vision is of a minimalist, clean, modern home that reflects her personal style. Which type of zoning regulation, may affect Patrice's vision of a minimalist townhouse? A. Enabling acts B. Aesthetic zoning C. Directive zoning D. Patrice may make any changes she would like to her townhouse

B. Aesthetic zoning - specific zoning requirements to create a certain aesthetic look to the particular zoning area including conformity to architectural, landscaping, and signage

Regulation Z of the Truth-in-Lending Law would apply to real estate loans for all except which of the following? A. Residential loan B. Agricultural loans over $25,000 C. Agricultural loans under $25,000 D. Personal loan

B. Agricultural loans over $25,000

Marita tells Alexandra they must obtain their broker dealer license from the Department of Corporations to engage in the sale of real estate syndicate security interests. Alexandra disagrees with Marita explaining they both have their broker licenses and that is sufficient. Who is correct and why? A. Marita is correct, Section 15632 was added to the Real Estate Syndicate Act requiring real estate brokers to obtain a broker-dealer license. B. Alexandra is correct, Section 25206 was added to the Corporations Code making obtaining a broker-dealer license optional. C. Marita is correct, Section 252206 has an added provision dealing with brokers violating the corporations code and requiring the broker-dealer license. D. None of the above

B. Alexandra is correct, Section 25206 was added to the Corporations Code making obtaining a broker-dealer license optional.

Which paragraph of a CAR Residential Purchase Agreement has four sections that address various costs associated with the purchase of the property and outline which party is responsible for each cost? A. Sale of Buyer's property B. Allocation of Costs C. Addenda and Advisories D. Buyer Stated Financing

B. Allocation of Costs

All property in the United States falls under which system of land ownership? A. Feudal System B. Allodial System C. Freehold System D. Dower System

B. Allodial System - individuals are entitled to own property without proprietary control of the government

Harry has some buyers that he believes are ready to make an offer. He says to them, "Would you prefer to take possession on September 1 or October 1?" What kind of closing technique is Harry using? A. Assumptive B. Alternative C. Ownership D. Standing-room-only

B. Alternative

Offering a buyer more than one option and having them choose is what closing technique? A. Bonus B. Alternative C. Ownership D. Standing-Room-Only

B. Alternative

What type of contract contains vague terms or terms that can be interpreted and understood in more than one way? A. Contingent contract B. Ambiguous contract C. Indefinite contract D. Explicit contract

B. Ambiguous contract

What is an extended title coverage policy that insures against many of the items excluded in the CLTA standard policy? A. Mortgage Title Insurance Policy B. American Land Title Association C. Real Property Title Association D. California Title Association

B. American Land Title Association

What is the major difference between an Estate for Years and an Estate from Period to Period? A. An Estate of Year, the tenant must give the notice to vacate whereas, in an Estate from Period to Period, there is no need to give any notice. B. An Estate from Period to Period, the tenant must give the notice to vacate whereas, in an Estate for Years, there is no need to give any notice. C. An Estate for Years, it is used exclusively for commercial leases. D. There is no major differences between the two.

B. An Estate from Period to Period, the tenant must give notice to vacate whereas in an Estate for Years, there is no need to give any notice.

What describes someone who enters, occupies, and uses another's property without the knowledge or consent of the owner or with the knowledge of an owner who fails to take any action over a statutory period of time? A. A settler B. An adverse possessor C. A squatter D. An illegal tenant

B. An adverse possessor

What type of contingency protects the buyer by ensuring that the property is valued at a price that is close to what is being offered by the buyer? A. A financing contingency B. An appraisal contingency C. A kick-out clause D. A house sale contingency

B. An appraisal contingency

Property owners can enforce covenants by taking court action known as: A. An affidavit B. An injunction C. A complaint D. A decree

B. An injunction

Which agreement authorizes a broker to represent an owner or landlord? A. An agency agreement B. An owner listing C. A tenant representation agreement D. A transaction agreement

B. An owner listing

Jose has heard rumors that a zoning change will be taking place involving a piece of undeveloped sale property. Jose buys the property in hope the zoning change will take place, making the property much more valuable on the market which principle of value apply? A. Regression and progression B. Anticipation C. Contribution D. Conformity

B. Anticipation - property can increase or decrease in value in expectation of something in the future such as appreciation or rezoning

What clause in a CAR Residential Purchase Agreement states the agreement is contingent on a written appraisal of the property at no less than the purchase price? A. Verification of loan payment B. Appraisal contingency and removal C. All cash offer D. Buyer deposit with agent

B. Appraisal contingency and removal

What describes a powdery mineral once commonly used as a fireproof insulating material around pipes, in floor tiles and linoleum in siding and roofing and other applications? A. Radon B. Asbestos C. Formaldehyde D. Lead

B. Asbestos

Which part of a Loan Disclosure indicates whether or not the lender will allow a loan assumption on a future sale or transfer? A. Demand feature B. Assumption C. Escrow account D. Other disclosure

B. Assumption

An agent must give a copy of the listing agreement to the sellers: A. At the time the agent presents an offer. B. At the time the agreement is signed. C. When the seller pays the commission. D. After the agent has had time to make copies at the office.

B. At the time the agreement is signed

Marcus wants to have the deed to his new home recorded to protect his ownership rights. In order to record the deed, it must be notarized so Marcus must go before a notary public and verify the signing of the deed. The notary then signs the deed. What is the verification of Marcus' signature in the signing of the deed known as? A. Autograph B. Attestation C. Recording D. Caveat emptor

B. Attestation

A violent storm comes in from the ocean, hitting the beachfront properties with destructive force. When the Meyers return to their home, they find the beach has disappeared from their property. Which term describes the damage? A. Reliction B. Avulsion C. Erosion D. Alluvion

B. Avulsion - is the sudden loss of land by an act of nature ex. a typhoon

In a civil case, they primary goal is to compensate the injured party for the damage done to him or her by: A. Establishing a case precedent B. Awarding either a legal remedy or equitable remedy C. Not providing an equitable remedy D. Requiring a specific performance from the plaintiff

B. Awarding either a legal remedy or equitable remedy

Which document shows the assets and liabilities of a business? A. Bill of sale B. Balance sheet C. Profit and loss statement D. Purchase contract

B. Balance sheet

Veteran Bill has applied and been approved for a non-VA-guaranteed CalVet loan. Which of the following statements is not true? A. Bill will pay a 3% down payment. B. Bill is purchasing a 6-family apartment building. C. If Bill pays off the loan early, there will be no prepayment penalty. D. There is a loan protection plan included with the loan.

B. Bill is purchasing a 6-family apartment building.

What is described as the written instrument that passes the title to the personal property? A. Title receipt B. Bill of sale C. Balance sheet D. Transaction record

B. Bill of sale

Builder Monty must secure a loan with mortgages on five different lots. What type of loan will he need? A. Bridge loan B. Blanket loan C. Construction loan D. Package loan

B. Blanket loan

What type of mortgage loan covers more than one piece of property? A. Bridge loan B. Blanket loan C. Open-end loan D. Multiple property loan

B. Blanket loan

What is not a primary provision typically found in a residential sale contract? A. Parties B. Boundaries C. Legal description D. Price and terms

B. Boundaries

What describes a failure to perform according to the terms of an agreement? A. Failure of privilege B. Breach of contract C. Failure of performance D. Breach of faith

B. Breach of contract

Karen and Jay wanted to buy a new home. They saw a home they liked in a nice neighborhood and made an offer for it. the offer got accepted but they have not put their old home on the market. Which type of loan gives Karen and Jay their best option of paying two mortgages until their current home sells? A. Participation mortgage B. Bridge loan C. Sale-leaseback D. Contract for deed

B. Bridge loan - a temporary loan, secured by your existing home, that bridge the gap between the sales price of a new home and the homebuyer's new mortgage,

In the listing agreement, a seller can choose to decline/disapprove all but which of the following items? A. Sign in year B. Broker compensation to other brokers C. Posting to MLS D. Lockbox

B. Broker compensation to other brokers

What is it called when a broker wants to end a listing but the client does not? A. Rescission B. Broker renunciation C. Client revocation D. Recession

B. Broker renunciation

Which section in a CAR Residential Listing Agreement contains a list of duties for the broker and seller? A. Seller representations B. Broker's and seller's duties C. Agency relationships D. Management approval

B. Broker's and seller's duties

What type of zoning regulates the density in zoning areas by enforcing specific building requirements such as open space requirements and floor space area ratios? A. Spot zoning B. Bulk zoning C. Aesthetic zoning D. Inclusionary zoning

B. Bulk zoning

The public report that a developer must provide when offering subdivided lands for sale is provided by which agency? A. Department of Housing and Urban Development B. Bureau of Real Estate C. Recorder's Office in the county where the land is located D. The county planning commission

B. Bureau of Real Estate

What refers to all calendar days except Sundays and holidays specified in 5 U.S.C. 6103 or the observed legal holiday? A. Weekday B. Business day C. Nautical day D. Bank day

B. Business day

Which of these is an advantage of an exclusive buyer agency? A. Earning commissions from both the listing and selling side of the business is not possible B. Buyers have greater confidence that they will see all the properties available from every source C. A potential conflict arises if two clients want to make offers on the same property D. The exclusive buyer broker will not take listings

B. Buyers have greater confidence that they will see all the properties available from every source

What is one way the Federal Reserve System regulates the money supply? A. Printing money B. Buying government bonds C. Regulating reserves of institutions with savings accounts only D. Purchasing loans from primary lenders

B. Buying government bonds

Sonia and her mother own property on a river. The water has carried part of their bank downstream to another property. They want their bank back and are prepared to have it returned. Which method of property transfer applies? A. By accession and through accretion B. By accession and through avulsion (it must be reclaimed within one year of the occurrence) C. By accession and through avulsion (it must be reclaimed two years of the occurrence) D. By succession and through avulsion

B. By accession and through avulsion (it must be reclaimed within one year of the occurrence)

Which of the following is not a national real estate trade organization? A. NAR B. CAR C. NAREB D. AREAA

B. CAR - California Association of Realtors

Who enforces the collection of sales and use taxes in California? A. California Board of Realtors B. California State Board of Equalization C. California Bureau of Real Estate D. California Real Estate Commission

B. California State Board of Equalization

Which of these statements would not be a good objective in a prospecting plan? A. Hold one open house per week B. Call five people on my contact list when I have time C. Make contact with the Sunday FSBOs on Monday morning D. Contact three people every week for referrals

B. Call five people on my contact list when I have time

Another name for common law, which is the overall accumulation of judicial decisions is what? A. Constitutional law B. Case law C. Administrative law D. Contract law

B. Case law

An appraiser appraises one-to-four unit residential properties, and non-residential properties with a transaction value up to $250,000. What is this appraiser's level? How many hours of appraiser education were completed? A. Residential license, 150 hours B. Certified residential real estate appraiser, 200 hours C. Certified residential real estate appraiser, 180 hours D. Certified general real estate appraiser, 300 hours

B. Certified residential real estate appraiser, 200 hours

Gordon get a loan for his new home and one for a new boat. What method of financing has Gordon secured? A. Exchange B. Commercial C. Conforming loan D. Bonds or stocks

B. Commercial - a straight bank loans that the borrower obtains based either on good credit or some non-real property collateral

The regulations regarding both advertising and doing real estate business over the Internet have been set forth in: A. Code of Federal Regulations B. Commission's Regulations C. ARELLO regulations D. Federal Fair Housing Administration

B. Commission's Regulations

What is another term given to case law? A. State law B. Common law C. Property law D. Civil law

B. Common law

Gail's listing with Tom and Amanda Samuel was not extended. The most likely reason is the Samuels' dissatisfaction with the: A. Commission fee B. Communication C. Length of the listing D. Price

B. Communication

Real estate contracts are not enforceable unless the parties have exchanged something of value is called? A. Commerce B. Consideration C. Interchange D. Transposition

B. Consideration

What is RESPA administered by? A. Office of Fair Housing B. Consumer Financial Protection Bureau C. Office of Equal Opportunity D. Department of Housing and Urban Development

B. Consumer Financial Protection Bureau

Under California Finance Code, what is defined as a consumer credit transaction that is secured by real property located in California which is used or intended to be used or occupied as the principal dwelling of the consumer? A. Vacant land loan B. Consumer loan C. Commercial loan D. Land development loan

B. Consumer loan

George and Susan are selling their home. Which of the following charges will appear as a credit to them on the settlement statement? A. Loan balance B. Contract sale price C. Unpaid items still due from sellers D. Document preparation fees

B. Contract sale price

The transfer of title to real estate uses a written instrument called: A. Acknowledgement B. Conveyance C. Consideration D. Habendum

B. Conveyance

According to income tax law, John could adjust the cost basis of his personal residence for which of the following items? A. Interest on the home loan B. Cost of adding a new garage C. Depreciation D. Cost of replacing the water heater

B. Cost of adding a new garage

Accepting referral fees: A. Is common business practice. B. Could be a violation of state licensing laws. C. Is permissible if being accepted on behalf of a third party. D. Is permissible in amounts under $50.

B. Could be a violation of state licensing laws.

HEH, Inc. owns a large parcel of land which will be used for commercial development. Upon the sale of the property to HEH, Inc., the grantor in a written agreement established the lake may never be touched and the property may only be used for commercial purposes. Which type of private deed restriction is in place for HEH, Inc.'s property? A. Affirmative B. Covenant C. Public D. Building

B. Covenant - a promise by the person who accepts an agreement to do or not to do certain things

When a licensee first meets a person that person is called a: A. Principal B. Customer C. Client D. Buyer

B. Customer

The two types of homestead exemptions in California are the automatic homestead exemption and the: A. Implied homestead exemption B. Declared homestead exemption C. Express homestead exemption D. Equitable homestead exemption

B. Declared homestead exemption

Homeowners can deduct all but which of the following from their income taxes? A. Mortgage interest B. Depreciation C. Prepayment penalties D. Property taxes

B. Depreciation

In order to equalize business in their area, ABC Realty and RMH Realty have an unwritten agreement. They have agreed to split up their area with ABC taking everything north and RMH will taking everything south. Under this agreement, the real estate agents licensed to each respective brokerage will not be competing and all will profit. Is this a violation? If so, which violation is it? A. Division of markets is not a violation, it is merely cooperation between brokerages B. Division of markets is a violation of the Sherman Antitrust Act C. Bid rigging is a violation of the Clayton Antitrust Act D. Division of markets is a violation of the Clayton Antitrust Act

B. Division of markets is a violation of the Sherman Antitrust Act

What doctrine states that if a property owner is lax in protecting their rights, the property owner may lose those rights? A. Doctrine of Reapportionment B. Doctrine of Laches C. Act of State Doctrine D. Cumulative Rights Doctrine

B. Doctrine of Laches

What are the types of legal life estates? A. Dower, a husband's interest in his wife's property. Curtesy, a wife's interest in the husband's property. Homestead, protection against unsecured debts for the party that did not sign the loan. B. Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against secured debts for the party who did not sign for the loan. C. Marital rights, both the husband and the wife interest in the spouse's property. Homestead, protection against unsecured debts for the party who did not sign for the loan. D. None of the above

B. Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against secured debts for the party who did not sign for the loan.

hen can a landlord enter a tenant's property to make repairs or show it? A. Only after receiving the tenant's consent. B. During business hours and only after giving the tenant 24 hours notice. C. Anytime they want to. D. Only with a court order.

B. During business hours and only after giving the tenant 24 hours notice.

Which of the following is not one of the five economic characteristics of land? A. The more demand for a particular property, the more valuable the property. B. Each parcel of land has its own non-homogeneous characteristics because no two properties are the same. C. One property will sell quickly if only a few properties in a particular area are on the market. D. The most important economic characteristic of real estate is location.

B. Each parcel of land has its own non-homogeneous characteristics because no two properties are the same.

In a civil case, pleadings refer to: A. Counter-claims filed by the defendant B. Each party's side of the dispute C. Gathering relevant evidence D. Filing suit

B. Each party's side of the dispute

Judy is the listing agent for the Brandt's home. In the inspection of their home, she discovers a few issues of concern. The basement is very damp and smells of mildew. Judy noticed there is mold on the interior walls of the lower level. She also saw what she believed to be their main line overflowing in the utility area of the basement. What case is responsible for the broker's conducting a diligent inspection of properties they are listing or selling? A. Sherman v. Clayton B. Easton v. Strassburger C. Mello v. Roos D. Jones v. Mayer

B. Easton v. Strassburger

A conventional loan is at 16% and the VA loan is at 15%, the lender will want to charge how many points to increase the yield on investment? A. Six points B. Eight points C. Four points D. Two points

B. Eight points : One point = 1% so the lender will need to charge 8 points to increase their yield

In a real estate transaction, what party chooses the escrow holder? A. Seller B. Either party C. Buyer D. Lender

B. Either party

Various government and public entities can transfer private property to the public sphere by the power of: A. Escheat B. Eminent domain C. Riparian rights D. Encumbrance

B. Eminent domain

What is the term used to describe an interest in and a right to real property that limits the legal owner's freehold interest? A. Encroachment B. Encumbrance C. Deed restriction D. License

B. Encumbrance

Which of these regulates how borrowers apply for credit and how lenders evaluate income and grant credit? A. Federal Trade Commission B. Equal Credit Opportunity Act C. Department of Housing and Urban Development D. Department of Fair Housing

B. Equal Credit Opportunity Act

Theresa just bought her first new home. She put 30% down and got a mortgage for the remainder. The difference between what Theresa owes and what her home is worth is known as what? A. Principal B. Equity C. Replacement cost D. Capital gain

B. Equity

Erwin's father sold one of the three properties he owned to Erwin, provided that Erwin followed the conditions set forth in the contract, stating that "no alcohol can be served on the premises at any time." Erwin agreed with this provision and the sale was made. Which of the following statements is most accurate regarding this situation? A. This type of provision is not legal and therefore the sale is voidable by Captain Canguro. B. Erwin holds an estate in fee simple defeasible. C. Erwin has a less-than-freehold interest in the property. D. Erwin holds the estate Pur Autre Vie, or for the life of another, which means that while he has possessory and some ownership rights, the seller (his father, in this case) may still dictate some of the activities that occur on the property.

B. Erwin holds an estate in fee simple defeasible.

XYZ Development Inc. leases commercial space to businesses. Most of the leases are longer-term from five to fifteen years in length and have fixed rents. XYZ contracts contain a clause in which both parties agree to annual adjustments of rent based on tax increases and other operating costs. If the previous year did not see more than a five percent increase in these costs, there is no change in the rent. What is the clause? A. Allowable vacancy rate clause B. Escalator clause C. Operating costs adjustment clause D. Periodic tenancy clause

B. Escalator clause - a contract provision permitting an adjustment of certain payments either up or down to cover certain contingencies such as taxes, insurance, maintenance, and other operating costs

Who is responsible for ordering the preliminary title report? A. Buyer B. Escrow officer C. Seller D.Real estate salesperson

B. Escrow officer

A competitive market analysis is an attempt to: A. Find things in the home a seller needs to repair. B. Establish a home's fair market value. C. Discover why some homes have not sold. D. Convince a seller to list with you.

B. Establish a home's fair market value

A lease that has no time limit is an: A. Estate for years B. Estate at will C. Estate from period to period D. Estate at sufferance

B. Estate at will

If a couple has a one year lease that changes over to a month to month lease after one year term expires, the property is what kind of leasehold estate? A. Estate at will B. Estate from period to period C. Estate for years D. Estate at sufferance

B. Estate from period to period

If a seller lists their property at a particular broker's office, who has the job of obtaining the best possible transaction for the seller? A. The broker B. Everyone in the office C. The licensee D. The listing agent

B. Everyone in the office

Which kind of listing gives one broker the right to sell, but allows the owner to sell the property and not owe a commission to the broker? A. Non-exclusive agency B. Exclusive agency C. Exclusive-right-to-sell D. Net

B. Exclusive agency

The listing type that assures a broker that they will receive compensation no matter who procures the buyer is what kind of agreement? A. Net listing B. Exclusive-authorization-and-right-to-sell agreement C. Open listing D. Exclusive agency

B. Exclusive-authorization-and-right-to-sell agreement

Many states have enacted their own homestead laws that specify: A. Foreclosure time frame B. Exemption amounts for individuals and families C. Minimum sale price D. Payment for selling costs

B. Exemption amounts for individuals and families

In order to qualify for FHA financing insurance, what type of requirements must a subdivision meet? A. HUD requirements B. FHA requirements C. HOA requirements D. Minimum standard requirements

B. FHA requirements

Title VIII of the Civil Rights Act of 1968 is also known as: A. Equal Opportunity Act B. Fair Housing Act C. Familial Status Act D. Protected Classes Act

B. Fair Housing Act

Who are the major participants in the secondary mortgage market? A. Freddie Mae, Ginnie Mac and the Fed B. Fannie Mae, Ginnie Mae and Freddie Mac C. FHA, VA and the Fed D. GMAC, FHA, FNMA

B. Fannie Mae, Ginnie Mae and Freddie Mac

The Moltasanto family has owned a vineyard in Sonoma for over one hundred years. They have owned all rights to the property since the first day of ownership. The property is always inherited by the oldest child after the death of the previous owner. Which type of estate is the Moltasanto family vineyard? A. Fee simple defeasible B. Fee simple absolute C. Estate in reversion D. Leasehold estate

B. Fee simple absolute - it is not conditioned by stipulated or restricted uses

Testers who encounter fair housing discrimination have the legal ability to: A. Fines a licensee B. File complaints under federal or state agencies C. Revoke a real estate license D. Negotiate a listing contract

B. File complaints under federal or state agencies

RESPA applies to: A. Second mortgage on a time-share B. First mortgage on a single-family home C. Primary mortgage on an office building D. Settlement charges on a shopping center

B. First mortgage on a single-family home

Carol has been paying her mortgage steadily for fifteen years. She received a notice from her lender that the loan due date is approaching and she will owe a lump sum of $11,257 to pay off her mortgage loan. Which type of promissory note has Carol not been paying? A. Straight Note B. Fully Amortized Loan C. Balloon Note D. Interest-only note

B. Fully Amortized Loan - have scheduled, periodic payments that are applied to both the loan's principal amount and the interest accrued: 1. The payment first pays off the relevant interest expense for the period 2. Then the remainder of the payment is put toward reducing the principal amount.

What type of lien is one placed against any and all real and personal property owned by a particular debtor? A. Specific lien B. General lien C. Mechanic lien D. Mortgage lien

B. General lien

Which of the following is exempt from the Natural Hazards Disclosure? A. Special flood area B. Geological hazard C. Wildland high fire severity area D. Seismic hazard zone

B. Geological hazard

Gerald is in the Marine Corps and he want to buy a home. How should he begin the process of getting a VA loan? A. Gerald must have the home appraised and be issued a certificate of reasonable value. He must apply for the loan through the financial institution of his choice. B. Gerald must first apply for a certificate of eligibility to obtain a VA loan. The home must qualify with an appraisal and be issued a certificate of reasonable value. C. Gerald only need to fill out the necessary paperwork through the Veterans Administration Office in his area. D. None of the above

B. Gerald must first apply for a certificate of eligibility to obtain a VA loan. The home must qualify with an appraisal and be issued a certificate of reasonable value.

How is goodwill protected in business opportunity transactions? A. Goodwill is not tangible property and cannot be protected. B. Good will of a business has monetary value which is protected by the law. C. Goodwill is the expectation of continued public patronage. D. Goodwill is protected by Sherman Anti-trust laws.

B. Good will of a business has monetary value which is protected by the law.

In what type of lease does the landlord pay the property's operating expenses including utilities, repairs, and maintenance? A. Graduated lease B. Gross lease C. Net lease D. Index lease

B. Gross lease

Who is charged with the responsibility of making sure that the owner does not use their property in a way that will harm the public? A. Real Estate Commission B. HOA C. Government D. Zoning committee

B. HOA

The three unique characteristics of land are immobility, indestructibility, and: A. Production B. Heterogeneity C. Function D. Cultivation

B. Heterogeneity

The Real Estate Commissioner has the authority to perform all the followings except: A. Hold formal hearings to decide issues involving a licensee or licensee applicant. B. Hold interest in a real estate company or brokerage firm C. Regulate and control the issuance and the revocation of all licenses issued under California law. D. Adopt, amend, or repeal rules and regulations for the enforcement of the laws.

B. Hold interest in a real estate company or brokerage firm

Which of these statements is true about a Calvet loan? A. Loan terms are from 15 to 25 years. B. If the loan is VA guaranteed, no down payment is required. C. There is a 6-month pre-payment penalty for paying off the loan early. D. Interest rates are typically fixed rate.

B. If the loan is VA guaranteed, no down payment is required.

Which of the following is not an exemption to the federal fair housing laws concerning age and family status? A. In a government-designated retirement housing. B. In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents. C. In residential dwellings of two to four units if one of the units is occupied by the owner. D. None of the above

B. In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents.

How does a cooperative differ from condominiums? A. The costs are relatively higher in cooperatives B. In cooperatives, a person owns shares in a corporation as opposed to having a mortgage C. The cooperative has less potential problems than condominiums D. In cooperatives, the owner owns the land associated with their unit

B. In cooperatives, a person owns shares in a corporation as opposed to having a mortgage

Maria, a single mother of three, has been saving to buy the family's first home. Her budget is limited, but there is a home she can easily afford on the market. But there have been zoning changes in the area, and a 24hr convenience store is located across the street. Is this deterioration curable or incurable? A. Curable B. Incurable C. It may be curable if the surrounding neighborhood is well-maintained and upkeep is good. If the remainder of the area is on the decline, it is probably incurable D. Both A and C

B. Incurable - major interior repairs

Most brokers prefer working with licensees as: A. Employees B. Independent contractors C. Subagents D. Other brokers

B. Independent contractors

The three most common types of zoning classifications are residential, commercial and: A. Agricultural B. Industrial C. Recreational D. Public

B. Industrial

What section in a CAR Exclusive Buyer Representation Agreement states that the buyer understands that properties may be marketed online? A. Definition of buyer B. Internet advertising, blogs, social media C. Escrow assignment D. Broker right to compensation

B. Internet advertising, blogs, social media

What type of lien is one that a legal process places against a property which the property owner did not agree or consent to? A. Statutory lien B. Involuntary lien C. Equitable lien D. Judgment lien

B. Involuntary lien

Which statement is true about a comparative market analysis (CMA)? A. A CMA is the same as an appraisal B. It can help a seller decide what to ask for the property C. An agent is obligated to complete a CMA on each listing he or she takes D. It is not a valid way to arrive at market value

B. It can help a seller decide what to ask for the property

Which statement is not true about an agency relationship? A. It is based on authorization. B. It is determined by who pays the compensation. C. It is based on mutual consent. D. It can exist without compensation.

B. It is determined by who pays the compensation.

Jeremy, a licensee, witnesses Patti who is also a licensee, involved in behavior that is questionable. Which action should Jeremy take? A. Jeremy need to take any action. As long as he is not involved in the questionable behavior, he is not obligated to do a thing. B. Jeremy is obligated to speak to the authorities and report what he has witnessed if he is unsure a crime has been committed, he should obtain legal advice. C. Jeremy must report all indiscretions of the Department of Real Estate. He is not obligated to report the client's behavior. D. None of the above

B. Jeremy is obligated to speak to the authorities and report what he has witnessed if he is unsure a crime has been committed, he should obtain legal advice.

John rent a house from Sam. The plumbing keeps backing up into the basement leaving water and sewage on the basement floor. Gerald has repeatedly reported this issue to Sam and he also sent a written request with proof of delivery. But Sam has done nothing to fix the problem. What should Gerald do next? A. John may file suit in civil court to force Sam to either make the repairs or refund his rent with interest and any damages and costs. B. John may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises then he is relieved from paying additional rent along with other conditions of the lease. C. John has to abandon the premises if he does so, he is relieved of any rent or other conditions of the lease. D. John may surrender the lease and end any further obligations to the contract.

B. John may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises then he is relieved from paying additional rent along with other conditions of the lease.

What type of foreclosure allows a property to be sold by a court order after sufficient public notice? A. Strict foreclosure B. Judicial foreclosure C. Specific foreclosure D. Non-judicial foreclosure

B. Judicial foreclosure

Ken passed his licensing exam but the DRE will not issue him a full-term license because he is behind on child support payments. Can Ken be able to obtain a license? A. Ken will not be eligible for a license until he has been current on all child support payments for a minimum of 150 days. B. Ken may be issued a 150 day temporary license while he is on the list of child support obligors. Only one 150 day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150 day temporary period. C. Ken must clear his name and pay his child support on time for a minimum of six months to be eligible to receive a full-term license. D. None of the above

B. Ken may be issued a 150 day temporary license while he is on the list of child support obligatory. Only one 150 day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150 day temporary period.

What type of clause requires a borrower to pay a penalty or late charge for any payments that are considered to be late? A. Graduated payment clause B. Late payment penalty clause C. Lender clause D. Pay off clause

B. Late payment penalty clause

What refers to support provided by the adjacent property such as a landowner having a right to demand that a neighboring property owner does nothing to cause the land to collapse? A. Material support B. Lateral support C. Central support D. Littoral support

B. Lateral support

The Western Acres neighborhood is a highly desirable area in which homes very seldom go on the market. The homes in this area sell quickly and it is usually above the asking price. Which principal of real estate applies here? A. Highest and best use B. Law of supply and demand C. Anticipation D. Competition

B. Law of supply and demand

What term refers to a lessee's ownership of a temporary right to exclusively possess land or property? A. Specific use B. Leasehold estate C. Term of lease D. Tenant activity

B. Leasehold estate

Pauline has just signed a lease agreement with landlord, Wayne to rent a house he owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October 30, 2016) dates, and sets forth the rent amount and due dates and all additional property and personal information required in such a lease. Wayne hands a copy to Pauline, but she notices that he has not signed it. When she comments about this to him, he tells her that signatures are not necessary since the lease is for less than a year. Which of the following is true of this situation? A. Wayne is correct. Under the Statute of Frauds in California, leases of less than one year are not even required to be in writing, and therefore, signatures are not required. B. Leases of less than one year are not required to be in writing. However, if a lease is in writing, then it must be signed by the lessor (in this case, Wayne). C. Leases of less than one year are not required to be in writing; but if there is a written lease, then it must be signed by both the lessee and lessor. D. Because the property being leased is located in Northern California, a lease agreement is required to be both written and signed by the lessor if the lease period is for 6 months or more. Therefore, Wayne was incorrect and he must sign the lease. If he does NOT sign the lease, then it will remain valid, but will not be court-enforced, should Pauline default on any of the related provisions.

B. Leases of less than one year are not required to be in writing. However, if a lease is in writing, then it must be signed by the lessor (in this case, Wayne).

What accurately locates and identifies the boundaries of a subject parcel of property to a degree acceptable by courts of law in the state where the property is located? A. Address B. Legal description C. Appraisal D. Cumulative zoning

B. Legal description

Lillian is buying Julia's home. After Julia sold her home, she will buy Marie condo in San Francisco. In these transactions, who is the grantor and who is the grantee? A. Lillian is the grantor and Julia is the grantee. Julia is the grantor and Marie is the grantor. B. Lillian is the grantee and Julia is the grantor. Julia is the grantee and Marie is the grantor C. Lillian is the grantor and Julia is the grantee. Julia is the grantor and Marie is the grantee D. None of the above

B. Lillian is the grantee and Julia is the grantor. Julia is the grantee and Marie is the grantor.

What type of rights concern properties abutting bodies of water that are not moving, such as lakes and seas? A. Inlet rights B. Littoral rights C. Real property rights D. Riparian rights

B. Littoral rights

What section in a CAR Residential Purchase Agreement includes information regarding the first, second, VA or FHA loans? A. Balance of down payment B. Loans C. Financing D. Deposit

B. Loans

Calvin is buying his first home for $300,000.00 and he has a down payment of $75,000.00. What kind of loan does Calvin has? A. Highly secured B. Low risk C. Simple interest D. Highly leveraged

B. Low risk

Which fiduciary duty requires an agent to place the client's interests above those of all other, including their own? A. Honesty B. Loyalty C. Accountability D. Disclosure

B. Loyalty

What is a database of properties for sale and is available for all real estate agents and brokers? A. Index of housing B. MLS C. GFD D. National home sales

B. MLS

Martha and Liz have applied for a mortgage. They both have excellent credit and very successful careers and they are perfect on paper. Martha and Liz are partners and are expecting the birth of their first child together. They are denied a loan. What's the violation here? A. Martha and Liz have been denied full protection under the Equal Opportunity in Housing Act. B. Martha and Liz have been denied the full protection of the Equal Credit Opportunity Act and it is part of the Fair Financing Laws. C. Martha and Liz have been denied the full protection of the Fair Housing Act of 1968, an integral part of the Fair Financing Laws. D. None of the above

B. Martha and Liz have been denied the full protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.

Johanna is selling her restaurant, J's Cafe. She has decided restaurant hours are too long for her and is changing careers. Matt, a licensee, is assisting Johanna in the sale of the cafe. She wants to sell both the real property, the restaurant itself, and all of the personal property inside to one buyer. A buyer is interested in buying the property. How will Matt handle the sale of both the real property and the business itself? A. Matt, as a licensee, is not authorized to conduct the sale of a business. He may assist Johanna in the real property transaction, but not the personal property that represents the business. B. Matt must treat the sale of the business and the sale of the real property as two separate and concurrent transactions with two concurrent and contingent escrows. C. Matt may sell the entire business opportunity in one sales transaction. Due to its encompassing the real property, the business, and the personal property of the restaurant, it is a single sale. D. None of the above

B. Matt must treat the sale of the business and the sale of the real property as two separate and concurrent transactions with two concurrent and contingent escrows.

For how long can a California income tax lien be in force? A. Maximum of 10 years B. Maximum of 30 years C. Maximum of 20 years D. Maximum of 5 years

B. Maximum of 30 years

Which section in a CAR Residential Purchase Agreement provides information regarding registered sex offenders and includes a website for the buyer to search? A. Buyer's investigation of property B. Megan's Law database disclosure C. Natural and environmental hazards D. Statutory and other disclosures

B. Megan's Law database disclosure

Melinda is selling her home to Trevion. The deed conveying the property will be a general warranty deed. Who is the grantor? Who is the grantee? A. Trevion is the grantor, Melinda is the grantee. B. Melinda is the grantor, Trevion is the grantee. C. Melinda is the grantor, the home is the grantee. D. Trevion is the grantee, the home is the grantor.

B. Melinda is the grantor, Trevion is the grantee.

Which disclosure relates to special taxes that were levied for streets and sewers in new developments? A. Subdivision Disclosure B. Mello-Roos Community Facilities Act C. Public Report D. Notice of Adverse Action

B. Mello-Roos Community Facilities Act

Merle has a rural piece of land in the northern part of the state. He is in the process of selling it to a developer. The property has a pair of one-hundred-year-old trees that mark the entrance to the property. A stream and a bluff mark the end of Merle's property. What method of real estate description would best suit Merle's land? A. Lot and Block System B. Metes and Bound System C. Retangular Survey System D. Both A and C

B. Metes and Bound System - used to describe irregular pieces of property or in areas where a lot and block system is not in place

Michelle rent her house to Luis for four years. The street on which the house is located is going through a major widening and most of the homes are going to be leveled for project. Through eminent domain, Michelle must sell her home to the city. What is the required length of notice Luis must receive from Michelle in terminating the lease? A. Michelle must give Luis a thirty-day written notice of the lease termination. B. Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year. C. Michelle does not have to give Luis any sort of notice due to the eminent domain. He must vacate the premises within the week of the sale to the city. D. None of the above

B. Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.

What written disclosure is required when a property is located within one mile of an area previously used for military training? A. Live ammunition disclosure B. Military ordinance location disclosure C. Service training disclosure D. Governmental risk disclosure

B. Military ordinance location disclosure

What is one of the major objectives of professional property management? A. Maximize the return to the property management firm. B. Minimize expenses while maximizing profits for the owner. C. Help control area rent schedules. D. Maintain 100 percent occupancy.

B. Minimize expenses while maximizing profits for the owner.

Which item is not covered by CLTA, ALTA or ALTA-R insurance policies? A. Acts of minors B. Mining claims C. Forgeries D. Federal estate tax liens

B. Mining claims

Dan is buying a home from the Walsh and he offers the asking price along with all the kitchen appliances to remain with the property. The Walsh accepted his offer in writing. Which contract term applies to this situation? A. Time is of the essence B. Mirror Image C. Contingency D. Novation

B. Mirror Image - seller agrees to an offer exactly as it was made

Which of these forms is not filled out by the seller? A. Smoke detector compliance B. Modification of terms C. Transfer disclosure statement D. Water heater compliance

B. Modification of terms

What involves the transfer of an interest in land as security for a loan or other obligation? A. Deed B. Mortgage C. Transaction D. Lease

B. Mortgage

Which statement about mortgage is not true? A. Mortgage brokers do not lend money. B. Mortgage bankers bring borrowers and lenders together. C. Mortgage bankers are a large source of residential loans in California. D. Mortgage bankers originate loans.

B. Mortgage bankers bring borrowers and lenders together.

Once a mortgagor has paid off a mortgage in full, what will the lender execute and record indicating that the loan terms have been met? A. Acknowledgement document B. Mortgage release document C. Attachment of note D. Assignment clause

B. Mortgage release document

Manufactured homes and mobile homes are considered personal property because they are: A. Uninsurable B. Moveable C. Under 1,000 square feet D. Affordable

B. Moveable

When can licensees recommend specific individuals or companies to their clients and accept a referral fee? A. When there is a dual agency created B. Never C. When the licensee is also acting as an escrow agent D. When the licensee is acting as a transaction broker

B. Never

Beverly, an African-American woman, has applied for a mortgage on a new home. Her income is substantial enough to pay a mortgage. But she has been at least ninety days late on several bills one year ago. She has paid them on time since then and reduce the balance by half. But she was rejected for a mortgage by her bank. Has she been discriminated against? A. She was turn down because she is an African-American woman. B. No because her brush with delinquency is too new on her record for the bank to issue a mortgage. C. No, her income was not enough to substantial enough for the home she wanting to buy. D. None of the above

B. No, because her brush with delinquency is too new on her record for the bank to issue a mortgage.

Troy is closing on his home on Tuesday. His brokerage represents the Good Home Insurance Company. He have not yet decided what company will be handling his homeowners insurance. Is he obligated to use Good Home due to its affiliation with the brokerage? A. He is not exactly obligated to use the insurance company represented by the brokerage, however, it would make all of the paperwork ad closing more efficient. B. No, he is not obligated to use any services recommended by the broker or agents licensed to the broker. Choosing a source of insurance is only the client's choice. C. Yes, if he is going to use the brokerage they must use the broker's affiliates D. None of the above

B. No, he is not obligated to use any services recommended by the broker or agents licensed to the broker. Choosing a source of insurance is only the client's choice.

Deanna is buying several items from Kay. She pay Kay $650.00 for the items, she wrote a check and collected the items. Is this transaction legitimate? A. Yes, it is a private transaction between two adults where both are in agreement of the terms. B. No, in the State of California, an agreement for the sale of real property must be in writing if the amount or value of the property exceeds $500.00. C. No, in the State of California, an agreement for the sale of personal property must be in writing if the amount of value of the property exceeds $500.00. D. No, in the State of California, a agreement for the sale of personal property must be in writing if the amount of value of the property exceeds $600.00.

B. No, in the State of California, an agreement for the sale of personal property must be in writing if the amount of value of the property exceeds $500.00.

Conchita is applying for a VA loan. She has served in the military, on active service, for ninety days. She is trying to buy a town home. The town home has qualified with an appraisal and has been issued a certificate of reasonable value. Will Conchita be considered for a VA loan? A. Yes, she has met all the criteria for a certificate of eligibility. B. No, she has not served the 181 days of active service required. C. No, she has not been approved for a certificate eligibility. D. None of the above

B. No, she has not served the 181 days of active service required.

Jim is in good financial condition to buy his first home. His mortgage broker, Ted, had assist him in finding the best loan. He is approved for a loan. When he receive the Mortgage Disclosure Statement, outlining all the costs and terms associated with the loan. The costs and terms are not what he had previously understood. Is he stuck with this loan? A. Yes, they have had several opportunities to fully question and understand the terms and costs associated with their loans. B. No, the Mortgage Disclosure Statement should have been presented to Jim within three days of the broker's receipt of his written loan application or before Jim was obligated to take the loan. C. No, the Mortgage Disclosure Statement should have been presented to them within seven days of the broker's receipt of their written loan application or before Jim was obligated to take the loan. D. Yes, Jim is stuck with the loan because it was Jim's responsibility to ask for the Mortgage Disclosure Statement so he is clear on the terms and costs associated with the loan.

B. No, the Mortgage Disclosure Statement should have been presented to Jim within three days of the broker's receipt of his written loan application or before Jim was obligated to take the loan.

Kevin own a residential apartment. He is updating the lighting fixtures in all the units and his maintenance crew has been going in and out of the units without notifying the tenants. The tenants are surprised, frightened, and inconvenienced. Is it legal for Kevin crew to enter an occupied unit without notification to the tenant? A. Yes, the landlord may enter the rental property at any time to make necessary or agreed repairs, decorations, alterations, or improvements. B. No, the landlord must the tenant at least a 24-hour notice and his crew can only enter the unit during normal business hours. C. No, the landlord may only enter the rental property in case of emergency, to supply necessary or agreed services when the tenant has abandoned or surrendered the premises or under court order. D. Yes, because the landlord has okayed the entrance by his representatives for work to improve the rental properties, it is acceptable for the unannounced entrances.

B. No, the landlord must the tenant at least a 24-hour notice and his crew can only enter the unit during normal business hours.

Drew is leasing his apartment from Reggie. The lease is for one year and they have agreed on all areas of the contract. The lease is in written form and Reggie is the only party that has signed. Without Drew's signature, is the lease now invalid? A. Yes, a lease in written form, and it must have both parties' signatures to be validated B. No, the lessee is not required to sign, only the lessor. The lessee's occupation of the property is proof the lease agreement was accepted C. No, neither party needs to sign the written lease for validity. As long as a consensus exists between the two parties, the lease is valid D. None of the above

B. No, the lessee is not required to sign, only the lessor. The lessee's occupation of the property is proof the lease agreement was accepted

John is purchasing a home but the escrow has been terminated. Has he lost the contract on this home? A. Yes, once the escrow is terminated all contracts associated are also terminated. B. No, the termination of an escrow does not terminate the associated contract. C. No, if the escrow is terminated the contract can remain valid, but if the escrow is cancelled then the contract is cancelled. D. None of the above

B. No, the termination of an escrow does not terminate the associated contract.

Shanta, a property manager of a retail center is using the Income Capitalization Approach in trying to project future earnings for the partners who own the center. She first estimates the annual potential gross income, subtracts an appropriate allowance for vacancy and collection losses to arrive at a gross income then deducts operating expenses including debt service and mortgage payments. This gives her the net operating income, she then applies a capitalization rate to the net income to determine the value. Did she use the correct steps? A. Yes, Shanta went through all four steps correctly, debt service and mortgage payments may be included. B. No, when Shanta was deducting operating expenses, she included debt service and mortgage payments when they should have not been included. C. No, Shanta should have added an appropriate allowance for vacancy and collection losses instea of subtracting these items. D. None of the above

B. No, when Shanta was deducting operating expenses, she included debt service and mortgage payments when they should not have been included.

Missy, a licensee, and worked in real estate for three years, wants to be appointed as the next California Real Estate Commissioner. She has never had her license suspended or revoked. Is Missy qualified to be a candidate? A. Yes, she is qualify, the only requirements are to hold a California real estate license and be actively involved in the profession B. Not at this point in her career. In order to be appointed to the post by the Governor, she must have a minimum of five years' experience as a real estate broker. C. No, she must have a minimum of ten years of experience as a real estate broker D. No, she is not qualify

B. Not at this point in her career. In order to be appointed to the post by the Governor, she must have a minimum of five years' experience as a real estate broker.

What informs buyers and prospective tenants of the registered sex offender database that can be searched to identify if any sex offenders are near a property? A. Identifying a registered sex offender pamphlet B. Notice regarding a database of the location of registered sex offenders C. Sex offender disclosure form D. Property disclosure statement

B. Notice regarding a database of the location of registered sex offenders

Most sellers object to offers based on: A. Closing issues B. Offering price C. Financing issues D. Contingencies

B. Offering price

Brian made an offer on Rudy's home. The first offer was rejected by the seller then Brian made another offer but Rudy rejected it again. Then Brian made one last and best offer. Then Rudy made counter offer. What is the situation after a counteroffer is made by the sellers? A. The sellers cannot make a counteroffer to the buyer. They can either accept the buyer's offer or reject it. B. Once the counteroffer is made by the seller, the buyer's original offer becomes invalid. If the buyers accepts the offer the seller has made, the same process takes place as with a regular offer. C. The process will basically start completely from scratch. If the buyers reject the seller's counteroffer, the sellers can go back to the buyer's previous offer and accept. D. None of the above

B. Once the counteroffer is made by the seller, the buyer's original offer becomes invalid. If the buyers accepts the offer the seller has made, the same process takes place as with a regular offer.

Jolie is selling her home and moving to another place. Her appliances are free-standing and movable, with the exception of the built-in microwave over her new stove. Which of the following will be considered her personal property, which she may move with her? A. All the appliances, cabinets, and the microwave. B. Only the unattached appliances that are free-standing. C. Only the unattached appliances that are freestanding, plus the microwave. D. None of the appliances, the microwave, or cabinets.

B. Only the unattached appliances that are free-standing

What is a lease provision that gives the tenant the right to extend the lease for an additional period of time and sets forth the terms for the renewed lease? A. Extension B. Option to renew C. Recommence clause D. Time Revision

B. Option to renew

Jason has approached Sam about purchasing an acre of property that adjoins Jason's backyard. Sam has explained to Jason on multiple times that he do not want to sell. Jason told Sam that if he does not sell the land then he will contact the police and tell them Sam is selling drugs out of his home. Which Penal Code Section addresses this crime? A. PC 502.5 B. PC 518, 519 C. PC 532a D. PC 484b-c

B. PC 518, 519: Fear, such as will constitute extortion, may be induced by a threat of any of the following: 1. To do an unlawful injury to the person or property of the individual threatened or of a third person. 2. To accuse the individual threatened, or a relative of his or her, or a member of his or her family, of a crime. 3. To expose, or to impute to him, her, or them a deformity, disgrace, or crime. 4. To expose a secret affecting him, her, or them. 5. To report his, her, or their immigration status or suspected immigration status.

Agent Sims needs one more sale this month to receive a bonus. She has one more that could possibly close and help her meet the goal. But the buyer fell through with their finance and could not buy the house. Agent Sims contracts her friend who is a lender and offers them one-quarter of her bonus if they help the buyer finance the house. Which penal code did Agent Sims violate? A. PC 534 B. PC 639-639a C. PC 641.4 D. PC 532c

B. PC 639-639a - bribery of a lender to obtain credit or the acceptance of a bribery

ABC Mortgage Company accepts a bribe from a licensee in exchange for approving mortgages for all their clients. Which penal Code Section addresses this crime? A. PC 556-556.2 B. PC 639-639a C. PC 830.1 D. It is not a crime

B. PC 639-639a: Every person who gives, offers, or agrees to give to any director, officer, or employee of a financial institution any emolument, gratuity, or reward, or any money, property, or thing of value for his own personal benefit or of personal advantage, for procuring or endeavoring to procure for any person a loan or extension of credit from such financial institution is guilty of a felony

When a licensee induces someone to sell their property by telling the person of a certain protected class are moving into the neighborhood, it is: A. Steering B. Panic selling C. Redlining D. Protecting classes

B. Panic selling

A broker induces an owner to sell by telling him that Hispanics are moving into the neighborhood. This broker is guilty of what prohibited activity? A. Redlining B. Panic selling C. Steering D. Misrepresentation

B. Panic selling - prohibits by California Code is the practice of inducing owners in an area to sell or rent to avoid an impending change in the ethnic or social makeup of the neighborhood that will cause values to go down

Which portion of the California Business and Professions Code consists of the Subdivided Lands Law? A. Part 1, Section 100000 to 10580 of the Business and Professions Code B. Part 2, Section 11000 to 112000 of the Business and Professions Code C. California Civil Code, Section 2985 of the Business and Professions Code D. None of the above

B. Part 2, Sections 11000 to 11200 of the Business and the Professions Code: Protect the purchasers of property in new subdivisions from fraud or misrepresentation when these purchasers are buying subdivided land. Under this act, a new subdivision of 5 or more lots may not be offered for sale until the Real Estate Commissioner issues a public report for the subdivision Cannot issue the public report until he is certain that the developer has met all statutory requirements including financial arrangements established to assure completion of any promised subdivision facilities

What type of performance describes when a defendant has failed to complete performance of an agreement according to its terms and where the plaintiff may recover damages to compensate them to the same extent as though the contract had been completely performed? A. Sufficient performance B. Partial performance C. Defective performance D. Residual performance

B. Partial performance

All of the following are the types of monetary damages except: A. Restitution B. Passive C. Compensatory D. Nominal

B. Passive

When doing a competitive market analysis, the recently sold properties you include should have sold within what timeframe? A. The past month B. Past three to six months C. Past seven months D. Last six to nine months

B. Past three to six months

If an unlicensed person does act as a real estate salesperson or broker, they will be: A. Guilty of fraud B. Penalized under the law C. Required to compensate the injured party D. Fined $1,000

B. Penalized under the law

Penny, a California licensee, has been advertising on the Internet. She specializes in the sale of upscale homes in the Hollywood Hills area. Penny has been violating the Business and Professions Code, Sections 10235.5 and 10140.6. What has she done? A. Penny should not be soliciting her services to the residents of California. B. Penny failed to indicate in advertisement her license status. C. The services the advertisements do not include any actions for which a license is required. D. None of the above

B. Penny failed to indicate in the advertisement her license status.

When the rent for a property is computed on the gross sales at the site, what kind of lease is in place? A. Net lease B. Percentage lease C. Gross lease D. Graduated lease

B. Percentage lease

In contract language, what means to do what one agreed to do? A. Action B. Performance C. Exchange D. Attainment

B. Performance

What gives a government entity the ability to fulfill its responsibility to provide for the health, safety, and welfare of the public? A. Official enforcement B. Police power C. Jurisdiction D. Civil Courts

B. Police power

What clause in a non-judicial foreclosure enables a mortgagee to order a public sale without a court decree? A. Due-on-sale clause B. Power of sale clause C. Subordinate clause D. Release clause

B. Power of sale clause

Items that are paid in advance, such as property taxes are called: A. Credits B. Prepaid expenses C. Prorations D. Advancements

B. Prepaid expenses

Which of the following is not a requirement for an FHA loan? A. The mortgaged real estate must be appraised by an approved FHA appraiser B. Prepayment penalties are optional C. Points can be charged by the lender and paid by either buyer or seller or both D. A buyer may pay more than the appraised value if he pays the difference in cash

B. Prepayment penalties are optional

What is the statute of limitations? A. An action that bars recovery by the plaintiff because of the plaintiff's undue delay in seeking relief. B. Prevents action from being taken against an individual after a prescribed period of time. C. An action that the purchaser agreed to do or not do when they purchased the property. D. A principle which precludes a person from asserting something contrary to what is implied by a previous action.

B. Prevents action from being taken against an individual after a prescribed period of time.

What term refers to the person who hires a real estate agent and delegates to the agent the responsibility of representing his or her interests? A. Consumer B. Principal C. Customer D. Purchaser

B. Principal

When must a listing agent present the Disclosure Regarding Real Estate Agency Relationships to the seller? A. Prior to bringing an offer to purchase B. Prior to accepting the listing C. As soon as possible D. Prior to conducting any showings

B. Prior to accepting the listing

The amount of debt, time and method of payment, interest rate and other loan terms are part of the: A. Mortgage B. Promissory note C. Contract for deed D. Purchase agreement

B. Promissory note

Property taxes that are not paid result in a: A. Deed restriction B. Property lien C. Property assessment D. Tax lien

B. Property lien

Escheat occurs when: A. The local government changes zoning B. Property of a deceased person with no heir is given to the state C. A public utility company takes private property for public use D. Private property is seized by the state for non-payment

B. Property of a deceased person with no heir is given to the state

John purchased a home that only had one previous owner. John looked at the previous owner's property taxes and found them to be quite manageable. When he received their first assessment, they were shocked. Which proposition is attributed to this dramatic increase in property taxes? A. Proposition 60 B. Proposition 13 C. Proposition 218 D. Proposition 90

B. Proposition 13 - limits the maximum annual tax on real property at 1% of market value plus the cumulative increase of 2% in market value each year after due to the annual inflation factor

When working with any client, the broker's job is to: A. Protect the broker's interest B. Protect the client's interest C. Get the best price D. Establish a good rapport

B. Protect the client's interest

During jury selection, parties may not use peremptory challenges because of an individual's: A. Bias B. Race C. Age D. Economic status

B. Race

The account that holds all the money collected from license and exam fees, and is used for the operating expenses of the DRE, is known as: A. Real Estate Education Fund B. Real Estate General Fund C. Real Estate Recovery Fund D. Real Estate Operations Fund

B. Real Estate General Fund

Lily, a licensee, has been referring her first-time homebuyers to Safe Insurance Company for all of their insurance needs. The insurance company has been providing Lily with "motivation" in the form of cash to keep the referrals coming. Which law or act prohibits this type of violation? A. Fair lending laws B. Real Estate Settlement Procedures Act (RESPA) C. Equal Credit Opportunity Act D. Both A and C

B. Real Estate Settlement Procedures Act (RESPA) - requires that the borrower receive disclosures about business relationships that may exist among lenders/creditors and settlement service providers

What is a form that describes the physical condition of a property including the presence and working condition of appliances and other features, any defects or issues with the physical property, and any possible encroachments and easements? A. Home Inspection Form B. Real Estate Transfer Disclosure Statements C. Property Inspection Report D. Survey

B. Real Estate Transfer Disclosure Statements

What are described as the legal agreements that underlie the transfer and financing of real estate as well as the real estate brokerage business? A. Property contracts B. Real estate contracts C. Legal contracts D. Performance agreements

B. Real estate contracts

Escrow does not officially close until the deed has been: A. Signed B. Recorded C. Transferred D. Conveyed

B. Recorded

If a seller chooses not to follow fair housing laws the agent should: A. Refer the listing B. Refuse the listing C. Take the listing anyway D. Sue the seller

B. Refuse the listing

In a CAR Residential Purchase Agreement, the four sections that follow the confirmation of acceptance are real estate brokers, escrow holder acknowledgement, presentation of offer and: A. Contingencies B. Rejection of offer C. Appraisals D. Counteroffer

B. Rejection of offer

What option allows a tenant to arrange and pay for repairs then deduct the amount from rent payments? A. Tenant repair option B. Repair-and-deduct-option C. Right of refusal D. Landlord settlement option

B. Repair-and-deduct-option

What term describes when both the client and the broker agree to end the relationship that they are in? A. Contingency B. Rescission C. Termination D. Cancellation

B. Rescission

An apartment manager seeks to evict a tenant for filing a discrimination complaint. What California Fair Housing law has the manager violated? A. Unruh Civil Rights Act B. Rumford Fair Housing Act C. Holden Act D. California Civil Rights Act

B. Rumford Fair Housing Act

Which of the following is a credit to the seller on the settlement statement? A. Unpaid items due from seller B. Sales price C. Loan balance D. Document preparation fees

B. Sales price

Sally, a real estate agent, asked to be the sales agent for a company selling new mobile homes. Can she sell these new mobile homes? What sort of mobile homes can she sell? A. Sally may not sell new mobile homes, but she may sell used mobile homes. She would have to become licensed by the California Department of Housing and Community B. Development to sell new mobile homes. Sally may not sell new mobile homes, but she may sell used mobile homes, if they have been registered with the C. State of California and are on a lot. She would have become licensed by the California Department of housing and Community Development to sell new mobile homes. Sally is a licensed real estate salesperson in the state of California. She may sell any real property that is assigned to sell. D. None of the above

B. Sally may not sell new mobile homes, but she may sell used mobile homes, if they have been registered with the State of California and are on a lot. She would have become licensed by the California Department of housing and Community Development to sell new mobile homes.

Which of the following is a low loan-to-value ratio? A. Jake is getting a VA loan with no down payment. B. Sandy and Bill are putting 30% down on their home purchase. C. Alice is getting a conventional loan and making a 15% down payment. D. Tim and Gail have qualified for an FHA loan.

B. Sandy and Bill are putting 30% down on their home purchase.

The Richies family has put their home on the market. The Walters make an offer on the Ritchies' home. Suddenly, the Ritchies decide not to sell their home. They explain to Sara, their agent, that the Walters "aren't quite right" for the neighborhood. What should Sara do? A. The Richies are her clients so Sara must honor their wishes and remove the home from the market. B. Sara must explain to the Richies that she cannot ethically remove a property from the market after an offer has been made to sidestep a purchase by a party. C. Sara must withdraw herself from the relationship with the Richies or from any situation where client discrimination occurs.

B. Sara must explain to the Richies that she cannot ethically remove a property from the market after an offer has been made to sidestep a purchase by a party. C. Sara must withdraw herself from the relationship with the Richies or from any situation where client discrimination occurs.

Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low offer through a "dummy" purchaser or an accomplice who is not a buyer at all. Bill then sells the property to the buyer for the higher price, with the difference being profit. What's the violation? A. Commingling B. Secret Profit C. False Promise D. Dishonest Dealing

B. Secret profit (Section 10176 - g): When a broker, who already has a higher offer from another buyer, makes a low offer, through a dummy purchaser: - The broker then sells the property to the interested buyer for the higher price with the difference being the secret profit

The rectangular survey system divides a township into thirty six squares is called: A. Blocks B. Sections C. Parcels D. Lots

B. Sections

According to the CAR Residential Purchase Agreement, tax bills issued after the close of escrow will be handled directly between: A. Seller and broker B. Seller and buyer C. Broker and buyer D. Lender and seller

B. Seller and buyer

RESPA applies to all of the following except which? A. Condominium purchase B. Seller-financed loan C. Loan involving a second mortgage D. Federally-insured loan

B. Seller-financed loan

Most of the sales of residential property involves two licensees-a listing broker and a: A. Sales agent B. Selling broker C. Transaction broker D. Dual agent

B. Selling broker

What is the conversion of real property to personal property by detaching it from the real estate called? A. Assignment B. Severance C. Fasten D. Allocate

B. Severance

The Percy family has purchased a heavily wooded property in Northern California. They are planning to build a guest house of the main house for entertaining. In the process, many trees will need to be cleared. The family is planning to sell the wood to the neighbors as firewood. Which process applies? A. Annexation B. Severance C. Appurtenance D. Livery of Seisin

B. Severance - changes real property to personal property

If there is no offer on the property for a given week, the agent should: A. Skip the activity report for that week. B. Share that information with the sellers. C. Tell the seller you expect an offer to be coming soon. D. Tell the seler it is time to reevaluate the price.

B. Share that information with the seller.

What type of agency representation refers to one broker representing the seller and another broker representing the buyer? A. Implied agency B. Single agency representation C. Express agency D. Dual agency representation

B. Single agency representation

Which state court is known as the "people's court"? A. Family court B. Small claims court C. Court of appeals D. District court

B. Small claims court

The sewers in Mary's neighborhood need replacing. In fact, the entire sewage system for her city needs replacing. The city has imposed a tax that will pay for all of the sewer updates in the area. What type of real estate tax applies? A. General Tax B. Special Assessment Tax C. Ad Valorem D. Both A and C

B. Special Assessment Tax - is not a property tax, but it levied by the city to offset the costs of specific local improvements such as streets and sewers

Chandra is selling her condo to Fabian. Chandra's deed explains the property has been clear since her ownership. But she cannot guarantee that in the case prior to buying the condo. Which deed covers this situation? A. Bargain and Sale Deed B. Special Warranty C. General Warranty D. Tax Deed

B. Special Warranty - the grantor warrants only against title defects or encumbrances not noted on the deed that may have occurred during the grantor's period of ownership or trusteeship: 1. The deed does not protect the grantee against claims that predate the owner's period of ownership 2. Overall special warranty covenant is: "I own and will defend against my acts only."

What type of superior lien does local government entities place against certain properties to ensure payment for local improvement projects such as new roads, schools, sewers, or libraries? A. Ad valorem tax lien B. Special assessment lien C. Mechanic's lien D. Judgment lien

B. Special assessment lien

In what type of deed does the grantor warrants only against title defects or encumbrances not noted on the deed that may have occurred during the grantor's period of ownership or trusteeship? A. Ownership deed B. Special warranty deed C. Quietclaim deed D. Special purpose deed

B. Special warranty deed

Which is an emotional reason that buyers buy property? A. Tax advantages B. Status C. Investment D. Schools

B. Status

A subdivision has a homeowner association rule that states there can be no above ground pools in the subdivision. The Curtis family has an above ground pool in their backyard. Four years later, the new association president threatens to take the family to court for violating the subdivision regulations. Why doesn't the new president have a case? A. Laches B. Statute of Limitations C. Options D. Bylaws

B. Statute of Limitations - period of time within which certain actions must be brought to court

Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful, attractive, and highly desirable. The next day, Agent Smith tells the Miller family that Fernwood is deteriorating, values are falling, and the school district is less than stellar. Name the form of illegal discrimination. A. Discriminatory misrepresentation B. Steering C. It is not a form of illegal discrimination D. Blockbusting

B. Steering - the practice of directly or indirectly channeling customers toward or away from homes and neighborhoods

What puts a mechanic's lien on the balance of funds from a sale? A. Lien release B. Stop notice C. Notice of responsibility D. Notice of cessation

B. Stop notice

What type of suit compels the defaulting party to perform the contract obligation that was breached? A. Suit for breach of duty B. Suit for specific performance C. Suit for possession D. Suit for misrepresentation

B. Suit for specific performance

Susan is thinking of putting her home up for sale but doesn't want to use a real estate agent. What are her options? A. Susan must obtain her real estate license or use a licensed real estate agent to sell her property. She cannot be compensated for the sale of her property unless she is representing another person. B. Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person. C. Susan will be negotiating the purchase price of her home and must be licensed to do so. D. Both A and C

B. Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.

In a lease arrangement the owner is the landlord and the renter is the: A. Lessor B. Tenant C. Proprietor D. Freeholder

B. Tenant

Interests are individually owned in tenancy in common. What does that mean? A. Tenants decide what percentage of the property each will own B. Tenants have distinct and separable ownership of their interests C. One of the tenants is a beneficiary D. Tenants have tenancy in severalty

B. Tenants have distinct and separable ownership of their interests

Jim, Chris, and Beth are all partners in a cosmetics firm. Jim is leaving the partnership and wants to sell her shares of the business, including the property owned by the partnership, to Chris and Beth. The remaining partners are not interested in buying Jim's interests. Jim has been unable to find a buyer for her share of the partnership. She has now resorted to asking the court to either sell her shares or sell the entire property. What form of concurrent ownership applies? A. Partition Lawsuit B. Tenants in Common C. Community property D. Separate Ownership

B. Tenants in Common - One way for two or more people to own real estate together is as tenants in common. In this arrangement, owners can have equal ownership or they could each own different percentages

When purchasing a business, the buyer is required to notify all creditors of the impending sale. This is a requirement of which of the following? A. Real Estate Law B. The Business and Professions Code C. California State Civil Code D. Uniform Commercial Code

B. The Business and Professions Code

Brian have been informed a convenience store is going to be built on the corner across from their residence. He is furious and want some answers as to how this could be happening in their neighborhood. Who should he go to for answers? A. City or County Planning Department B. City Council or Board of Supervisors C. Owners of the new property D. Their city alderman

B. The City Council or Board of Supervisors

When purchasing a business, the buyer is required to notify all creditors of the impending sale. This is a requirement of which of the following? A. Real Estate Law B. The Code of Ethics C. California State Civil Code D. Uniform Commercial Code

B. The Code of Ethics

The Housing Financial Discrimination Act is also known as: A. The Rumford Act B. The Holden Act C. Title VIII D. The Unruh Act

B. The Holden Act

Which of the following statements concerning California's three sets of base lines and meridians is true? A. The Humboldt baseline and Meridian in the southwestern part of the State, the Mt. Diablo baseline, and Meridian in the central part of the state, and the San Bernardino baseline and Meridian in the northwestern part of the state. B. The Humboldt baseline and Meridian in the northwestern part of the state, the Mt. Diablo baseline and Meridian in the central part of the state; and the San Bernardino baseline and Meridian in the southern part of the State. C. The Humboldt baseline and Meridian in the northwestern part of the state, the Mt. Diablo baseline and Meridian in the southern part of the state, and the San Bernardino baseline and Meridian in the central part of the state. D. The Humboldt baseline and the Meridian in the central part of the state; the Mt. Diablo baseline and Meridian in the northwestern part of the state; and San Bernardino baseline and Meridian in the southern part of the state.

B. The Humboldt baseline and Meridian in the northwestern part of the state, the Mt. Diablo baseline and Meridian in the central part of the state; and the San Bernardino baseline and Meridian in the southern part of the State.

What 1969 act created the Environmental Protection Agency (EPA) and the Council for Environmental Quality giving them a mandate to establish environmental standards for land use planning? A. The Water Pollution Control Act B. The National Environmental Policy Act C. The Water Quality Improvement Act D. The Resource Recovery Act

B. The National Environmental Policy Act

What did the federal government develop to simplify and standardize property descriptions as a replacement for the cumbersome and often inaccurate metes and bounds method? A. The Lot and Block Method B. The Rectangular Survey System C. The Recorded Plat Method D. The Public Survey System

B. The Rectangular Survey System

What happens to agency when a property is destroyed through a storm, earthquake or fire? A. The agency will be renegotiated B. The agency is terminated C. The land will still be under an agency relationship D. It is considered a breach of agency

B. The agency is terminated

What happens in a mortgage loan transaction? A. The lender gives a mortgage to the borrower and gets funds in exchange. B. The borrower gives the lender a note and a mortgage in exchange for the funds. C. The lender gives the borrower a mortgage and funds. D. The borrower gets a note in exchange for a mortgage.

B. The borrower gives the lender a note and a mortgage in exchange for the funds.

Who is ultimately responsible for a licensees business related actions? A. The licensee B. The broker C. The real estate commission D. The brokerage franchise

B. The broker

In a CAR Buyer Representation Agreement, who agrees to pay for reports, inspections, and meetings arranged by the broker on the buyer's behalf? A. The broker B. The buyer C. The seller D. The lender

B. The buyer

Maria and Carlos are selling their grocery store to a large corporation. There will be a bulk transfer of the store's inventory in the sale to the corporation. Public notice must be given of this transfer. Who must give the public notice? How many days public notice must they give and why? A. The sellers must give the public notice. They must give a public notice 12 business days before the transfer occurs. It gives the buyers' creditors an opportunity to file a claim if trade credit is still owed on the inventory. B. The buyers must give the public notice. They must give a public notice 12 business days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owed on the inventory. C. The buyers must give the public notice. They must give a public notice 15 days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owned on the inventory. D. The buyers must give the public notice. They must give a public notice 10 days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owned on the inventory.

B. The buyers must give the public notice. They must give a public notice 12 business days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owed on the inventory.

A small group of investors are in the initial stages of putting together a Real Estate Investment Trust (REIT). Which of the following is not a qualification? A. A REIT must be beneficially owned by at least 100 investors. B. The company must distribute at least 85% or more of its income to its shareholders. C. Each share of certificate of interest must carry with it an equivalent vote. D. No five or fewer persons may hold more than 50% of the benficial interests.

B. The company must distribute at least 85% or more of its income to its shareholders.

Alexandra and Marita's company has qualified as a trust. It has distributed 96% of its income to its shareholders. Which earnings require the payment of federal taxes? A. The company only pays federal taxes on retained earnings. B. The company only pays federal taxes on the retained earnings which are taxed at corporate rates. C. The company only pays federal taxes on the distribution to its shareholders. D. The company is exempt from federal taxes due to its trust qualification. It is required only to pay state and local taxes.

B. The company only pays federal taxes on the retained earnings which are taxed at corporate rates.

Ginny, a licensee, uses a preprinted contract in Tim's purchase of a new loft apartment. There is a discrepancy in the contract between a preprinted clause and a handwritten addition. Which clause supersedes? A. The preprinted clause always supersedes a handwritten clause. B. The handwritten clause generally supersedes the preprinted clause. C. The handwritten clause always supersedes a preprinted clause. D. The grantor and grantee must resolve the contractual issues or the contract will be void.

B. The handwritten clause generally supersedes the preprinted clause.

Thad and Pierre want to lease a condo that they saw advertised in the newspaper then they went to view the condo. They called the landlord but the landlord told them that the condo had been leased. Then the following week, Thad saw the ad for the condo again in the newspaper. Thad asked his friend to call the landlord to ask if the condo is still available then the landlord told his friend that the condo is available. What is going on in this situation? A. The condo was leased for a week then the tenant moved out. B. The landlord did not like leasing his condo to a same sex couple. This is not permissible. The landlord follow the federal and state fair housing laws. C. The landlord want to lease his condo to other people who are not a same sex couple D. None of the above

B. The landlord did not like leasing his condo to a same sex couple. This is not permissible. The landlord follow the federal and state fair housing laws.

What are the major differences between a mortgage and a deed of trust? A. The amount of interest that may be charged and the method of foreclosure on default B. The number of parties involved and the method of foreclosure on default C. The collateralized form of the loan and the method of foreclosure on default D. None of the above

B. The number of parties involved and the method of foreclosure on default.

What does the term "turnover" reference in a business opportunity? A. The amount of employees being employed and leaving employment of a business B. The number of times the inventory is sold per year. C. The number of times a business has been sold D. None of the above

B. The number of times the inventory is sold per year.

Agent Paul is bound to inform his client of all facts that might affect the client's interests. Which of these situations would not be something Paul "should know"? A. There is a crack in the basement wall. B. The owner of the property is HIV positive. C. The air conditioner does not work. D. The casement windows have broken seals.

B. The owner of the property is HIV positive

Under federal income tax law, the "basis" for a personal residence is which of the following? A. The purchase price plus depreciation B. The purchase price plus improvements C. The fair market value at the time of sale D. The appraised value prior to sale

B. The purchase price plus improvements

What term means the right to mortgage a property as collateral for debt? A. The right to exclude B. The right to encumber C. The right to finance D. The right to rescind

B. The right to encumber

The most favorable management of real property usage must take into account both the interests of the individual and the interest of: A. The subdivision B. The surrounding community C. The government D. The HOA

B. The surrounding community

Tamara live in a subdivision with a tennis court and a swimming pool. Who actually owns the tennis court and the swimming pool? Which type of common interest development is this? A. The tennis court and the swimming pool are owned by the investors in the subdivision development. It is a Planned Unit Development. B. The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development. C. The tennis court and swimming pool are owned in common by all the property owner. It is a subdivision. D. None of the above

B. The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development.

What is included in the APR? A. The total cost of the loan including the finance charges, all legal fees, survey fees, recording fees, broker's fees, and title insurance premiums. B. The total finance charge to the total amount to be financed. C. The total finance charge including a computation of unearned finance charges to the total amount to be financed. D. None of the above

B. The total finance charge to the total amount to be financed.

The law enforces promises through: A. Monitoring our daily activities B. The use of contracts C. The preservation of order D. Setting standards

B. The use of contracts

Certain amendments will be of particular interest to real estate professionals because: A. They discuss real estate transactions B. They impact property rights C. Everyone should know the amendments D. They explain implied powers

B. They impact property rights

The Brights are buying a home from the Stones and they will split the escrow service fees 50-50. Do they live in Northern or Southern California? How does the other region usually handle the escrow service fees? A. They live in Southern California. In Northern California the seller usually pays the escrow service fees. B. They live in Southern California because in Northern California the buyer usually pays the escrow service fees. C. They live in Northern California. In Southern California the buyer usually pays the escrow service fees. D. They live in Northern California. In Southern California the seller usually pays the escrow service fees.

B. They live in Southern California because in Northern California the buyer usually pays the escrow service fees.

An undeveloped acre of land sits in the middle of a secluded rural community. How many separate owners could this acre have? A. As many as possible if they were partners in the ownership of the land B. Three owners: one could own the subsurface rights, one the surface rights, and another the air rights C. Two owners: one could own the surface rights, and another the air rights D. Two owners: one could own the subsurface rights and another the surface rights

B. Three owners: one could own the subsurface rights, one the surface rights, and another the air rights.

Tim owns a mobile home he wants to transform into real property. He attaches the mobile home to an approved foundation; records a document reflecting that the mobile home has been affixed to an approved foundation system; and obtains a certificate of occupancy. Which step, if any, did Tim leave out? A. Tim forgot to ensure the axles are attached to the frame. B. Tim forgot to obtain a building permit. C. Tim forgot to have the piece of property on which the mobile home is located mapped and recorded. D. Tim fulfilled every prerequisite for transforming his mobile home into real property

B. Tim forgot to obtain a building permit.

What is a contract of indemnity where an insurance company agrees to compensate the insured either a homeowner or a lender, for financial losses that the insured has incurred because of defects to the title of the property? A. Transfer of ownership B. Title insurance policy C. Title report D. Hazard insurance

B. Title insurance policy

What is the purpose of forming a syndicate? A. To create an LLC B. To pool financial resources for a certain investment C. To be protected from taxes D. To test out a business idea

B. To pool financial resources for a certain investment

What is the main purpose of the DRE? A. To collect license and exam fees B. To protect the public C. To protect licensees D. To protect brokers

B. To protect the public

The tenant ,Jack, has not paid rent in months and refuses to give up possession of the property. The landlord, Tom, files an eviction notice, and obtains a judgment to obtain possession of the property. Three weeks later, Jack tells Tom he filed for bankruptcy so the eviction is off. Which of the following statements is true of this situation? A. Tom is out of luck and should get in line behind Jack's other creditors. As for the apartment, Jack cannot be forced out of it when he is in bankruptcy. B. Tom is in luck since he has already taken the appropriate actions and obtained a judgment to obtain possession of the property before Jack files his bankruptcy petition, the previously filed eviction remains in effect. C. Tom and Jack must retain lawyers to sort out this mess because there is no set way of handling this type of situation. D. Because Jack was able to successfully file a bankruptcy petition, he may not have to move out yet. He must attempt to file a Retroactive Petition for Bankruptcy with the required documentation from that time period if he obtains a judgment stating that.

B. Tom is in luck since he has already taken the appropriate actions and obtained a judgment to obtain possession of the property before Jack files his bankruptcy petition, the previously filed eviction remains in effect.

Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation? A. Equal Credit Opportunity Act B. Truth in Lending C. Real Estate Settlement and Procedures Act D. Fair Housing laws

B. Truth in Lending

At least how many people are needed to form a bilateral contract? A. One B. Two C. Three D. Four

B. Two

How many escrow or trust accounts must a property manager maintain? A. Three - one is for security deposits, one for current rents and management and one for maintenance funds B. Two - one is for security deposits and one for current rents and management C. One for security deposits D. None of the above

B. Two - one is for security deposits and one for current rents and management.

Alice has decided that she will specialize in selling farm land. Which area of specialization would she fall into? A. Geography B. Type of property C. Business type D. Type of client

B. Type of property

Which of the following is not a specialized federal court? A. US claims court B. US supreme court C. US tax court D. US bankruptcy court

B. US supreme court

Victoria decides not to lease the condo from Sanchez. (They have an oral agreement.) She tells him she has changed her mind the day before she had agreed to move in. He has spent time and money getting the property ready for Victoria and is thinking of suing. Which type of contract applies to the situation? A. Valid B. Unenforceable C. Voidable D. Void

B. Unenforceable

Which California Fair Housing law provides protection from discrimination by business establishments? A. Rumford Fair Housing Act B. Unruh Civil Rights Act C. Holden Act D. Fair Employment and Housing Act

B. Unruh Civil Rights Act - provides protection from discrimination by all business establishments in California including housing and public accommodations

How much of his own money can broker Jake keep in a trust account and not be considered guilty of commingling? A. Up to $500 to use for service fees on the account B. Up to $200 to use for service fees on the account C. Up to $800 to use for service fees on the account D. Up to $100 to use for service fees on the account

B. Up to $200 to use for service fees on the account

Which is not a legal notice that can provide a listing lead? A. Death notice B. Vacancy C. Divorce D. Tax delinquency

B. Vacancy

Van deposit his funds with ABC Escrow as a requirement for the purchase of his new home. Who is the grantee and the third party? What is this type of transaction? A. Van is the grantee and ABC Escrow the third party. This transaction constitutes appropriated closing funds. B. Van is the grantee and ABC Escrow is the third party. This transaction constitutes escrow. C. Van is the third third party and ABC Escrow is the grantee. The transaction constitutes escrow. D. Van is the grantee and ABC Escrow is the third party. This transaction constitutes proration.

B. Van is the grantee and ABC Escrow is the third party. This transaction constitutes escrow.

If both parties agree to terminate a lease it called? A. Term expiration B. Voluntary agreement C. Condemnation D. Abandonment

B. Voluntary agreement

Broker Alice has hired several independent contractors in her firm. Which of these activities does she have control over? A. What the licensees wear B. What percent of commission the licensees can charge C. How much time the licensees must spend in the office D. Whether or not the licensees attend staff meetings

B. What percent of commission the licensees can charge

Government entities can create easements through the exercise of eminent domain which is: A. When government agents reside in properties of their choice B. When the government condemns a portion of a property and causes it to be sold for the greater good C. When easements reach the 5 year statutory period D. When the government helps owners keep their property

B. When the government condemns a portion of a property and causes it to be sold for the greater good

What is a legal instrument for the voluntary transfer of real and personal property after the owner's death? A. Trust B. Will C. Deed D. Title

B. Will

How much time does a person have to file a complaint with the Department of Fair Employment and Housing? A. Within 3 years from the incident B. Within a year from the incident C. Within 2 years from the incident D. Within 2 years from the incident

B. Within a year from the incident

XYZ Escrow has been turned down in its application for an escrow license. What caused the denial of the license to XYZ Escrow? A. XYZ Escrow could not prove it was financially solvent and was unable to furnish a surety bond of at least $100,000. B. XYZ Escrow cannot prove it was financially solvent and was unable to furnish a surety bond of at least $25,000 or more based upon the yearly average trust obligations. C. XYZ Escrow placed funds in a trust account that was exempt from execution or attachment. D. XYZ Escrow could not prove it was financially solvent and furnish bonds of indemnification for all employees of at least $25,000.

B. XYZ Escrow cannot prove it was financially solvent and was unable to furnish a surety bond of at least $25,000 or more based upon the yearly average trust obligations.

XYZ Escrow has gone out of business because they committed one of the violations of the escrow holder regulations. What is this violation? A. XYZ Escrow charged a fee for its services. B. XYZ Escrow did not maintain the records and files of its clients. Due to poor record keeping, severa escrow accounts at XYZ were overdrawn. C. XYZ Escrow used forms at closing that were neither simple nor clear. In several instances, the closing of escrow was behind schedule and held up the completion of the real estate transaction. D. XYZ Escrow submitted the required annual audit late to their CPA for additional audit.

B. XYZ Escrow did not maintain the records and files of its clients. Due to poor record keeping, severa escrow accounts at XYZ were overdrawn.

Moe have made an offer on a new home. The home is new construction and scheduled to be completed by the end of the year. He provide a purchase deposit, a check in the amount of $40,000 to her agent, Suzette. Suzette at the broker's direction, deposits the earnest money in the broker's trust fund account within two business days of the receipt of the funds. Did Suzette follow the proper procedures? A. No, the check should not have been cashed. If a check is used as an earnest money deposit, it is to be held until acceptance of the offer. The seller must be also be informed the buyer's check is being held and not negotiated. B. Yes, Suzette deposited the earnest money in the broker's trust fund account as directed. She also deposited the check within three business days of receipt. Unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed. C. No, Suzette needed to deposit the earnest money in the broker's trust fund account within two days of receipt, not necessarily two business days. D. Both A and B

B. Yes, Suzette deposited the earnest money in the broker's trust fund account as directed. She also deposited the check within three business days of receipt. Unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed.

The Browns have a real estate agreement with Sell Fast Real Estate Company. A couple makes a ridiculously low offer on their home, which is five-bedrooms, five-baths in Malibu. The offer is $200,000 less than the Browns' asking price. Does the broker have to present the offer to the Browns even if it is obviously going to be rejected and waste everyone's time? A. No, if an offer is clearly not going to be accepted, the broker, acting in the seller's best interest, does not have to present the offer. B. Yes, according to the regulations of the Real Estate Purchase Agreements in California, all offers received by the broker must be presented to the seller, no matter how out of line with expectations. C. Yes, the agent, acting in the seller's best interest, must present the offer. In discussing the property with other prospective buyers, there is a record of an offer having been extended, making the property appear desirable. D. None of the above

B. Yes, according to the regulations of the Real Estate Purchase Agreements in California, all offers received by the broker must be presented to the seller, no matter how out of line with expectations.

Is it permissible to advertise real estate associated services or products in California without a California real estate license? A. No, all real estate related services or products must only be advertised by a licensed California real estate salesperson. B. Yes, the internet is a free e-commerce site. Any person may advertise whatever services or products they choose as long as they are legal. C. Yes, as long as the products or services do not include any actions for which a California real estate license is required. D. None of the above

B. Yes, as long as the products or services do not include any actions for which a California real estate license is required.

California residents Kate and Jennifer decide to make a "deal": Kate will sell Jennifer her new Dell laptop for $600, a steal since she paid over $1,000 for it. They both feel they've gotten a great deal. Does this agreement need to be in writing, under California law? A. Yes, because under California law, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $200. B. Yes, because under California law, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500. C. No, because this is personal property, and written agreements are not required for personal property sales. D. No, because the value of this computer was under $2,000.00. California law ONLY requires that an agreement for the sale of personal property with a price or value of more than $2,000 be in writing.

B. Yes, because under California law, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.

Pelican Bay Apartments is a complex consisting of 80 units. The units are available in studio and one, two and three bedroom apartments. Bracco is the property manager at Pelican Bay Apartments. He decided to stay in his condo and not reside at Pelican Bay. He is also pursuing his California real estate license as he manages the property. Is anything wrong with this? A. No, he does not have to reside on the property he manages. Pursuing his real estate license is additionally optional. B. Yes, in California any apartment complex that has sixteen or more rental units must have a manager that lives on-site. In addition, Bracco as an off-site manager, must hold a real estate broker license. If he decides to hire a residential manager who lives on the property then they do not need a broker's license. C. Yes, he is required to live on-site if the complex has more than ten rental units D. None of the above

B. Yes, in California any apartment complex that has sixteen or more rental units must have a manager that lives on-site. In addition, Bracco as an off-site manager, must hold a real estate broker license. If he decides to hire a residential manager who lives on the property then they do not need a broker's license.

Len is looking to buy a home. Mitch is Len's agent. Mitch called Len and said " I have found you a perfect home! This area is the most prestigious in the city!" Is these type of statement legal? A. No, this is the intentional misrepresentation and cannot be subtantiated. B. Yes, it is legal as long as Mitch does not violate the Federal Fair Housing Laws. These statements are considered as "puffing" and it can be unethical if the statements are not true but it is not illegal. C. No, this is unintentional misrepresentation. By exaggerating, Mikel is making promises about the property and surrounding areas that are purely subjective. D. No, this is merely good salesmanship. Describing a home and the surrounding area in glowing terms is just that and nothing more.

B. Yes, it is legal as long as Mitch does not violate the Federal Fair Housing Laws. These statements are considered as "puffing" and it can be unethical if the statements are not true but it is not illegal.

Larry and Carlos are purchasing a 1930s bungalow in the Hollywood Hills. It is their dream home and once belonged to a silent film star. Is a lead-based paint disclosure necessary on this lovely bungalow? A. No, only if encapsulation or abatement have been conducted on the property and the seller is aware of these processes B. Yes, the seller of any residential structure built before 1978 is obligated to provide a lead-based paint disclosure C. Yes, the seller of any residential structure built before 1988 is obligated to provide a lead-based paint disclosure D. Yes, the seller of any property purchased prior to 1978 is obligated to provide a lead-based paint disclosure

B. Yes, the seller of any residential structure built before 1978 is obligated to provide a lead-based paint disclosure.

Under Section 761 of the California Civil Code, enacted in 1872, estates in real property are classified, with respect to duration, into which of the following categories: A: 1. Estates of inheritance or perpetual estates; 2. Estates for life; or 3. Estates for years. B: 1. Estates of inheritance or perpetual estates; 2. Estates for life; 3. Estates for years; or 4. Estates at will. C: 1. Freehold estates; 2. Leasehold Estates; and 3. Less-than-freehold estates. D: Fee Simple Estate; 2. Fee Defeasible Estate; 3. Life Estate; and 4. Fee Tail Estate.

B: 1. Estates of inheritance or perpetual estates; 2. Estates for life; 3. Estates for years; or 4. Estates at will.

Lois is selling her needlework shop to Simon including the business name, all of the fixtures and the inventory. What are the essential elements of this business opportunity sale? A. Bill of sale B. Financial statements C. Goodwill D. Both A and B

Both A and B: A. Bill of sale - a written instrument that passes the title to the personal property B. Financial statements - needed when a business is sold including: 1. Balance sheet - shows the financial status of the business as of a particular date including 2. Assets - business owned items of value 3. Liabilities - unpaid debts and other business expenses 4. Net worth - shows the owner and owner's equity which is the difference between the assets and the liabilities 5. Profit and loss statement (P&L) - shows the business's profit and loss during a specific time period

Ramon, a salesperson licensed to Richard, a broker, as been given specific written authorization to make a withdrawal from the broker's trust account. Ramon is uncertain this is permissible under California Law. Which law should Ramon use as a reference? A. California Business and Professions Code Section 10145 B. Commissioner's Regulation 2832 C. California Business and Professions Code Section 10085.5 D. Both A and B

Both A and B: A. California Business and Professions Code Section 10145 B. Commissioner's Regulation 2832

Rafe is an assistant property manager of a large residential community. He wants someday to be promoted to property manager. Rafe needs to consistently learn his duties and responsibilities to the owner and demonstrate them accordingly. Which responsibilities should he focus on? A. Fiduciary responsibility to the owner B. Achieving the highest rate of return for the owner C. Disclosure of material facts D. Both A and B

Both A and B: A. Fiduciary responsibility to the owner B. Achieving the highest rate of return for the owner

Tucker, a licensee, has been instrumental in the sale of a nightclub to a group of investors. He has guided the buyers every step of the way in obtaining this new business opportunity. What government agencies are also in need of notification by the investors concerning their new business? A. IRS B. State Board of Equalization C. California BRE D. Both A and B

Both A and B: A. IRS B. State Board of Equalization

Jan is moving into a new home. Her husband recently died during military service. She cannot afford a very large down payment at this time, but wants to get her children into their first home to provide some stability after the loss of their father. What are Jan's options? A. Jan qualifies for an FHA loan if her income is adequate. There is usually a small down payment required. B. Jan qualifies for a VA loan due to her status as a veteran's unmarried widow. The VA loan does not require a down payment. C. Jan cannot qualify for both type of loans. D. Both A and B.

Both A and B: A. Jan qualifies for an FHA loan, if her income is adequate. There is usually a small down payment required. B. Jan qualifies for a VA loan due to her status as a veteran's unmarried widow. The VA loan does not require a down payment.

Juanita is in the process of buying Amir's home. She made an offer that was accepted by Amir and both are happy with the financial terms. After paying for several inspections, Juanita has found serious structural and electrical issues with the house. In the contract, she has requested these items be rectified at Amir's expense within thirty days. At the end of the thirty days, Amir is unwilling to spend the money to correct the items. What are Juanita's options? A. Juanita may simply proceed with the contract, despite Amir's unwillingness to correct the problems B. Juanita may cancel the contract altogether C. Juanita could possibly file a lawsuit to have Amir take care of the issues and then continue with the transaction D. Both A and B

Both A and B: A. Juanita may simply proceed with the contract, despite Amir's unwillingness to correct the problems. B. Juanita may cancel the contract altogether.

Sam is the owner of a ten-unit apartment complex. He has just hired a new property manager to run the property. Serena, the new property manager has been drawing up a new set of management plans for the property. What should be the deciding factor in the adoption of the new plans? A. Owner's objectives B. Fair housing laws C. Management agreement D. Both A and B

Both A and B: A. Owner's objectives B. Fair housing laws

Ramon did not pass his licensing examination. What should Ramon do? A. Ramon may take the examination as many times as he needs. He need only apply to retake the exam. B. Ramon must pay the examination fee if he is to retake the examination. C. Ramon cannot take the examination for a period of two years after failing. At that time, he can retake the exam. D. Both A and B

Both A and B: A. Ramon may take the examination as many times as he needs. He need only apply to retake the exam. B. Ramon must pay the examination fee if he is to retake the examination.

Tameka, who is 16 year old, wanted to be a licensed real estate agent in the State of California but she is currently living in Canada. When she passes the exam, she cannot apply for a 4 years license, why? A. Tameka cannot apply for a 4 years license because she has not completed three college-level real estate courses B. Tameka is only 16 year old and the age requirement to get a license is 18 year old C. Tameka cannot provide proof of legal presence in the U.S. D. Both A and B

Both A and B: A. Tameka cannot apply for a 4 years license because she has not completed three college-level real estate courses. B. Tameka is only 16 year old and the age requirement to get a license is 18 year old.

Ernesto is a developer who is building low-to-moderate income, federally funded homes. He is building multi-family town homes that will help those graduating from welfare education programs get a new start off of public assistance and into the job market. Which of the following federal laws plays a major role in Ernesto's development? A. National Environmental Policy Act B. Clean Air Act C. Contractor's License Law D. Both A and B

Both A and B: A. The National Environmental Policy Act B. The Clean Air Act

When can a violation that has not happened yet to be a violation? A. If the Commissioner believes the person has or is about to commit a violation of law, order, license, permit etc. The Commissioner has the authority to bring action against the person. B. It can never be a violation. A person has to commit, past or present tense, a violation to have actions filed. You cannot punish someone for something they have yet to do. C. The Commissioner can command in the name of the people of the State of California in the Superior court of the State of California, that the individual not continue with the violation or not move to commit the violation. D. Both A and C

Both A and C: A. If the Commissioner believes the person has or is about to commit a violation of law, order, license, permit etc. The Commissioner has the authority to bring action against the person. C. The Commissioner can command in the name of the people of the State of California in the Superior court of the State of California, that the individual not continue with the violation or not move to commit the violation.

Howard want to buy a property. He hired Jose to be his agent and he only want Jose to represent his purchasing interest. They signed a contract. Who is the agent? Who is the principal? What is their relationship? What is Jose's role? A. Jose is the agent, Howard is the principal, they have an agency relationship, Jose is a special agent. B. Jose is the principal, Howard is the agent, they have a third party relationship, Jose is a broker. C. Jose is the agent, Howard is the principal, they have a fiduciary relationship, Jose is a special agent. D. Both A and C

Both A and C: A. Jose is the agent. Howard is the principal, they have an agency relationship. Jose is a special agent. C. Jose is the agent. Howard is the principal. They have a fiduciary relationship. Jose is a special agent.

Janice has given her broker an earnest money deposit check with written instructions to hold the check until the seller has accepted her offer. Her broker follows instructions and informs the seller. The buyer's check is being held awaiting offer acceptance. Did Janice's broker handle this situation correctly? A. No, the broker must inform the seller in writing the buyer's check is being held until acceptance of the offer B. Yes, the broker informed the seller of the stipulation on the negotiation of the check until offer acceptance C. No, the broker must inform the seller of the buyer's check being held at the exact time and the actual offer is presented D. Both A and C

Both A and C: A. No, the broker must inform the seller in writing the buyer's check is being held until acceptance of the offer. C. No, the broker must inform the seller of the buyer's check being held at the exact time and the actual offer is presented.

Who benefits from a long-term lease? A. The tenant: 10% off rent is deductible as an expense B. The landlord: the property is leased for a long period of time guaranteeing a return on investment C. The tenant: the total debt loan of the tenant remains the same. D. Both A and C

Both A and C: A. The tenant: 10% off rent is deductible as an expense C. The tenant: the total debt loan of the tenant remains the same.

Agent Peters has qualified buyers to purchase a new home. Now he needs to qualify the property they wish to buy. He understands the human qualification process. Can you help Agent Peters with steps to qualify the property? A. Type of property and area zoning B. Location and diversity of the neighborhood C. Value range and condition D. Both A and C

Both A and C: A. Type of property and area zoning C. Value range and condition

The designation grand theft is used in relation to the theft of: A. Certain farm crops or animals, personal and real property with value of less than $950 B. Automobiles and other personal property valued over $950 C. Money, labor, real and personal property that exceeds a value of $950 D. Both B and C

Both B and C B. Automobiles and other personal property valued over $950 C. Money, labor, real and personal property that exceeds a value of $950

Serena and Lucy want to make an offer on their dream home. The seller is requesting a very large earnest money deposit with serious offers on the home. Serena and Lucy have some cash set aside for this purpose, but are short of the amount the sellers are requesting. Do they have any other options? A. Cash is the only acceptable trust fund item accepted by brokers B. A check made payable to the broker or to an escrow or title company is an option C. A personal note made payable to the seller or a pink slip on a automobile given as a deposit is acceptable D. Both B and C

Both B and C: B. A check made payable to the broker or to an escrow or title company is an option C. A personal note made payable to the seller or a pink slip on a automobile given as a deposit is acceptable

Which of the following statements concerning real and personal property is true? A. Annexation changes real property to personal property, severance changes personal property to real property. B. A trade fixture is personal property and can be removed by the tenant any time before the end of the lease term. C. Annexation changes personal property to real property, severance changes real property to personal property. D. Both B and C

Both B and C: B. A trade fixture is personal property and can be removed by the tenant any time before the end of the lease term C. Annexation changes personal property to real property, severance changes real property to personal property

This form of syndication avoids double taxation but has a lack of centralized management. Which form fits the description? A. Corporate B. General Partnership C. Joint Venture D. Both B and C

Both B and C: B. General Partnership C. Joint Venture

What is the difference between Southern and Northern California escrow accounts? A. In Northern California, the bilateral escrow instructions are signed by the buyer and seller after they have signed their purchase agreement. After the start of the escrow from 30 to 60 days prior to the close of escrow. In Southern California, the instructions are usually not signed until one or two days before the close of escrow. B. In Southern California, the bilateral escrow instructions are signed by the buyer and seller after they signed their purchase agreement. After the start of the escrow from 30 to 60 days prior to the close of escrow. In Northern California, the instructions are usually not signed until one or two days before the close of escrow. C. In Southern California, escrow services are usually performed by independent escrow companies or financial institutions. In Northern California, the escrow services are usually performed by title insurance companies. D. Both B and C

Both B and C: B. In Southern California, the bilateral escrow instructions are signed by the buyer and seller after they signed their purchase agreement. After the start of the escrow from 30 to 60 days prior to the close of escrow. In Northern California, the instructions are usually not signed until one or two days before the close of escrow. C. In Southern California, escrow services are usually performed by independent escrow companies or financial institutions. In Northern California, the escrow services are usually performed by title insurance companies.

Melinda's mother recently passed away. She is thinking of selling her belongings in an estate sale. During her research, she came across real and personal property regulations and laws. Please help Melinda understand the legal difference(s) between real and personal property. A. The rules of the situs state govern the transfer of personal property from the seller to the buyer. B. Tax laws often distinguish between real and personal property. C. An agreement for a sale of real property must be in writing and signed by the party to be charged. If the amount or value is $500 or more, an agreement for the sale of personal property must be in writing. D. Both B and C:

Both B and C: B. Tax laws often distinguish between real and personal property. C. An agreement for a sale of real property must be in writing and signed by the party to be charged. If the amount or value is $500 or more, an agreement for the sale of personal property must be in writing.D. Both B and C

The McMillan Development Corporation is in the preliminary stages of building a commercial office development. They have received the building permit and all of the necessary approvals to break ground. Where do they go for guidance on the types of materials approved for construction, electrical wiring etc? A. City planning commission B. Building codes C. Building officials Conference of America D. Both B and C

Both B and C: B. The Building Codes C. Building Officials Conference of America

Which California fair housing laws apply to financial institutions? A. Rumford Fair Housing Act B. The Holden ACT C. Unruh Civil Right Act D. Both B and C

Both B and C: B. The Holden ACT C. Unruh Civil Right Act

Jane has been working with the buyers. She thinks they liked one of the properties she showed them. When she asked them, they told her "The price is too high." How should Jane respond? A. "I think they are asking a fair price." B. "Well then, just offer less." C. "What do you think would be a fair price?" D. "The comps say that this price is right on target."

C. "What do you think would be a fair price?"

A totally disabled veteran could be eligible for a property tax exemption of up to what amount? A. $50,450 B. $100,730 C. $191,266 D. $206,850

C. $191,266

Mark gets a home loan and the lender will charge him 3 points at closing. If the loan is for $68,000, what will Mark be assessed in points? A. $680 B. $1,360 C. $2,040 D. $2,720

C. $2,040

A taxing jurisdiction has a mill rate 14.7. What is an owner's tax bill if his taxable value is $250,000? A. 36.75 B. $367.50 C. $3,675 D. The tax bill is based on assessed value not taxable value

C. $250,000 x .0147 = $3,675

Jenny's home appraised for $550,00. Her asking price was $560,000 and the property sold for $575,000. What will the new owners pay in property taxes? A. $5,500 the first year, plus a maximum 2% increase in market value per year B. $5,600 every year, with no increase C. $5,750 the first year, plus a maximum 2% increase in market value per year D. $5,750, plus a maximum 10% increase in market value per year

C. $5,750 the first year, plus a maximum 2% increase in market value per year

Regulation Z applies to: A. $35,000 farm loan B. $50,000 restaurant loan C. $75,000 condominium loan D. $85,000 warehouse loan

C. $75,000 condominium loan

If a person believes they have been discriminated against, how long does they have to file a HUD complaint? A. 30 days B. 90 days C. 1 year D. 2 years

C. 1 year

If the Commissioner revokes a license, the person affected may not apply for reinstatement of the license until: A. 2 years has passed B. 6 months has passed C. 1 year has passed D. 3 months has passed

C. 1 year has passed

How many days does a buyer have to conduct a lead-based paint inspection in a sales transaction? A. 3 B. 15 C. 10 D. 30

C. 10

If an agent does not comply with the requirement of conducting a visual inspection of a property, how long after possession does the buyer have to file a suit? A. 6 months B. 12 months C. 24 months D. 36 months

C. 24 months

Within how many days of a loan application must a loan estimate be delivered? A. 30 B. 10 C. 3 D. 15

C. 3

In most cases a borrower has a right to cancel a transaction by notifying the lender within: A. 10 days B. 5 days C. 3 days D. 15 days

C. 3 days

California law requires that a licensee acting as a loan broker keep the Mortgage Loan Disclosure Statement on file for how long? A. 1 year B. 2 years C. 3 years D. 4 years

C. 3 years

If a buyer defaults on a CAR Residential Purchase Agreement and cannot complete the purchase, the seller will retain the deposit paid by the buyer as long as it is not more than: A. 5% of the purchase price B. 10% of the purchase price C. 3% of the purchase price D. 15% of the purchase price

C. 3% of the purchase price

When using a repair-deduct option, how long should a tenant wait for a landlord to fix items before choosing to fix them on their own if the problem is not severe? A. 7 days B. 21 days C. 30 days D. 60 days

C. 30 days

What are the continuous educations requirement in California? A. 45 hours every 6 year B. 40 hours every 5 year C. 45 hours every 4 year D. 6 hours every 4 year

C. 45 hours every 4 year

What is the continuing education requirement to renew a real estate license in California? A. 12 hours every 2 years B. 15 hours every year C. 45 hours every 4 years D. 60 hours every 4 years

C. 45 hours every 4 years

In a CAR Exclusive Buyer Representation Agreement, how many days from the date of the agreement does a buyer have to provide the broker proof that they have the financial capability to purchase a property described in the agreement if it is not written in the agreement? A. 7 B. 10 C. 5 D. 15

C. 5

How many days notice to terminate must a tenant be given in a mobile home lease agreement? A. 15 days B. 45 days C. 60 days D. 30 days

C. 60 days

Timeshare buyers have the right to rescind a transaction within what timeframe after signing the purchase contract? A. 1 day B. 3 days C. 7 days D. Never

C. 7 days

A candidate for an original real estate salesperson license must qualify for and pass a written examination with a score of: A. 60% or greater B. 65% or greater C. 70% or greater D. 50% or greater

C. 70% or greater

What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments? A. 120 days after filing the lien; four years B. 190 days after filing the lien; three years C. 90 days after filing the lien; three years D. 120 days after filing the lien; five years

C. 90 days after filing the lien; three years

In a general warranty deed, the implied promise: "If there is a defect, I promise to take care of any problems." is referred to what? A. Covenant of Seisin B. Covenant of a Warranty Forever C. Covenant of Further Assurance D. Covenant Against Encumbrances

C. A Covenant of Further Assurance - assures that the grantor will assist in clearing any title problems discovered later by obtaining and delivering any instrument needed to make the title good

Martin is purchasing a personnel agency from Warren and his partner. The agency has been very successful over its twenty years in business, and Warren is ready to retire. What elements should Martin expect from Warren as part of the business sale? A. A bill of sale and specific financial statements. B. A bill of sale and a bulk transfer of any inventory. C. A bill of sale, a balance sheet, the profit and loss statement, and a bulk transfer of any inventory. D. None of the above

C. A bill of sale, a balance sheet, the profit and loss statement, and a bulk transfer of any inventory.

When conveying title to real property, what is needed to create a valid escrow? A. A real estate broker knowledgeable in escrow procedures to handle the escrow. B. A document that describes all the escrow activities. C. A binding contract between the buyer and seller and the delivery of transfer documents to a third party. D. The services of an attorney who routinely performs escrows as part of his or her practice.

C. A binding contract between the buyer and seller and the delivery of transfer documents to a third party.

What type of survey locates and verifies all property corners and boundaries shows the location of all improvements in relation to the property lines includes an area of the overall property and shows any existing encroachments? A. A location survey B. A construction survey C. A boundary survey D. A site planning survey

C. A boundary survey

Which of the following statements is not true? A. A broker may require licensees to carry high levels of automobile insurance. B. It's a good idea for brokers to carry workers' compensation coverage. C. A broker is not responsible for the acts of independent contractors. D. Employee status versus independent contractor status is an IRS issue.

C. A broker is not responsible for the acts of independent contractors.

What describes legal rights that are attached to the ownership of a parcel of real estate? A. Ownership rights B. Parcel rights C. A bundle of rights D. Legal property rights

C. A bundle of rights

What agreement authorizes a broker to represent a buyer or tenant in the search for a property to rent or purchase? A. A representative agreement B. A buyer compensation agreement C. A buyer agency D. A listing contract

C. A buyer agency

What is a legal written instrument used by an owner to transfer title to real estate voluntarily to another party? A. A declaration B. Fee simple C. A deed D. An easement

C. A deed

Which of the following statements in reference to a deed is untrue? A. The deed transfer ownership only one time. B. In a deed, alienation is another term for transfer or convey. C. A deed must be recorded in order to be valid. D. The primary variation in the different types of deeds are the promises made by the grantor.

C. A deed must be recorded in order to be valid.

What clause talks about how a landlord is leasing a property and a tenant is taking possession of a property? A. A possession clause B. A leasehold clause C. A demising clause D. A regulation clause

C. A demising clause

Under Agency Relationships in a CAR Residential Listing Agreement, if a buyer is found through the broker or associate at the brokerage, the seller agrees to allow the broker to act as: A. A transaction broker B. A listing agent C. A dual agent D. A selling agent

C. A dual agent

What term describes a personal property item that has been converted to real property by attachment to real estate? A. A feature B. A component C. A fixture D. A fitment

C. A fixture

What type of deed offers the greatest protection of any deed? A. A grant deed B. A special warranty deed C. A full covenant and warranty deed D. A quitclaim deed

C. A full covenant and warranty deed

What accurately locates and identifies the boundaries of a subject parcel to a degree acceptable by courts of law in the state where the property is located? A. A stake survey B. A deed C. A legal description D. A title search

C. A legal description

How many properties should be included for comparison in a competitive market analysis? A. Two properties in each category B. Five current listings: three recently sold and two expired C. A minimum of three properties in the recently sold category D. Twelve properties total

C. A minimum of three properties in the recently sold category

What is required by a notary of the person signing the notarized document? A. A thumbprint of the person signing the document B. A right thumbprint of the person signing the document C. A right thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property D. A thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property

C. A right thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property

What should every contingency have so that there is "reasonable time" for the fulfillment of the contingency? A. Limitations of liability B. Selling restrictions C. A specific deadline D. A clear description

C. A specific deadline

What type of suit is an attempt to force the defaulting party to comply with the terms of the contract? A. A suit for damages B. Rescission C. A suit for specific performance D. Forfeiture

C. A suit for specific performance

In what type of agency does a person or court give an agent full control over someone's life and belongings to meet a specific need? A. A general agency B. A specific agency C. A universal agency D. A special agency

C. A universal agency

Which of these is considered separate property in a marriage? A. A $5,000 check given as a wedding gift B. A home purchased after a couple marries C. A vehicle owned by one spouse prior to marriage D. A business purchased during a marriage

C. A vehicle owned by one spouse prior to marriage

What allows a use that differs from the applicable ordinance for a variety of justifiable reasons? A. A proposed variance B. An area variance C. A zoning variance D. A use permit

C. A zoning variance

John is buying a home from Sam. AVC Escrow will close for both parties. Which of the three parties involved is considered the neutral party, the buyer, and the seller in this transaction? A. John is the neutral party, Sam is the seller, AVC Escrow is the lender. B. Sam is the neutral party, John is the buyer, AVC Escrow is the lender. C. AVC Escrow is the neutral party, John is the buyer, Sam is the seller. D. Both John and Sam are the neutral parties, AVC Escrow is the lender.

C. AVC Escrow is the neutral party, John is the buyer, Sam is the seller.

What describes expenses that the seller incurred but have not yet been billed for at the time of closing? A. Settlement expenses B. Mortgage expenses C. Accrued expenses D. Estimated expenses

C. Accrued expenses

Which of the following is the dollar value of the mill rate 86.5? A. 86.5 B. 0.865 C. 0.0865 D. 8.065

C. Add one 0 to the left and a decimal point to get 0.0865

Jamison, a broker, has been fined $10,000 and is being sentenced to four months' prison time for violations, he has committed through his brokerage. Which type of violation did he possibly commit? A. Commingling B. Restitution C. Advance Fees for a Loan secured by Lien on Real Property D. Account Fraud

C. Advance Fees for a Loan secured by Lien on Real Property

In California, non-judicial foreclosure lenders cannot start the foreclosure process for how many days after contacting a borrower to conduct a Foreclosure Avoidance Assessment to attempt to avoid foreclosure? A. After 10 days B. After 20 days C. After 30 days D. After 40 days

C. After 30 days

Mobile homes manufactured are required to have tags guaranteeing proper construction. Who issues the tag? A. Before June 15, 1976; the HUD B. After June 1, 1976; the HUD C. After June 15, 1976; the HUD D. After June 1, 1976; the California BRE

C. After June 15, 1976; the HUD

Ken has fallen behind on his property taxes. He has received the intent to sell notice and is terrified of losing his home. Ken lost his job and cannot immediately repay the back taxes. How can Ken keep from losing his residence? A. Ken has already lost the title to his home by falling behind in his taxes. B. After the "intent to sell" notice, a three-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees. C. After the "intent to sell" notice, a five-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees. D. After the "intent to sell" notice, Ken must repay all back taxes, interest, penalties, and any other applicable fees within one year, and pay the current taxes on time to avoid losing the title to his home.

C. After the "intent to sell" notice, a five-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees.

What term refers to a relationship established between a principal and a real estate agent? A. Fiduciary B. Brokerage agreement C. Agency D. Ministerial

C. Agency

Broker Alice needs to prepare an ad for a pre-owned mobile home. Which statement is not true? A. Alice cannot advertise the mobile home as new B. She cannot say "No down payment" if one is required C. Alice will have 24 hours to remove any advertising after the home sells D. She can advertise that the home can travel on the highway if it meets certain requirements

C. Alice will have 24 hours to remove any advertising after the home sells

While waiting in the lobby of the Fair Real Estate Company's office, Samir and Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT neighborhood. It's very "colorful," if you know what I mean." Which ruling by the Supreme Court dealt with this issue? A. The prohibition of discrimination based on sex and discrimination against handicapped persons and families with children, Jones v. Mitchell. B. Fair Housing laws apply to home sellers as well as to agents. If an agent goes along with a client's discriminatory act, the agent is equally liable for the violation, Mayer v. Johnson. C. All discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer. D. All brokers must display a HUD standard poster affirming the broker's compliance with fair housing laws in selling, renting, advertising, and financing residential properties, Jones V. Smith.

C. All discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.

When a spouse dies, how does community property get divided? A. All of the property goes to the heirs B. Half of the property goes to the surviving spouse and half to the decedent's heirs C. All of the property goes to the surviving spouse D. The home goes to the surviving spouse and all other property goes to the deceased's heirs

C. All of the property goes to the surviving spouse

Which offers is the broker required to present to the seller? A. The offers that are within 20% of asking price B. Negotiable offers C. All offers D. Prequalified offers

C. All offers

Which level of government is in charge of all planning controls? A. Federal government has the final say all planning matters. B. State government has the final say in all planning matters C. Although all levels of government have laws, regulations, or ordinances that must be recognized and followed. The state housing law is an uniform law that must be adopted by all cities and counties in California. D. All levels of government: city, county, state, and federal have the final say in all planning matters

C. Although all levels of government have laws, regulations, or ordinances that must be recognized and followed. The state housing law is an uniform law that must be adopted by all cities and counties in California.

Which of the following is the not a part of a property management agreement? A. Property description and term of agreement B. Definition of responsibilities and extent of authority C. Americans with disabilities act (ADA) D. Management fee and allocation of costs

C. Americans with disabilities act (ADA)

Assembly Bill 1099 does not require a property tax reassessment for the construction or addition of: A. A beachfront home. B. A separate building such as a guest home or workshop measuring less than 1,500 sqft. C. An active solar energy system in a new subdivision. D. A barn or horse corral built on a parcel of land two acres or larger.

C. An active solar energy system in a new subdivision.

What type of an agreement gives a broker the right to exclusively search for a home for a buyer and represent the buyer in the purchase? A. A nonexclusive representation agreement B. A residential purchase agreement C. An exclusive buyer representation agreement D. An open listing

C. An exclusive buyer representation agreement

What type of contract is one that has been fully performed and fulfilled? A. An open contract B. An executory contract C. An executed contract D. An indefinite contract

C. An executed contract

What type of contract is one in which all the terms and conditions of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing? A. An executed contract B. An implied contract C. An express contract D. A bilateral contract

C. An express contract

What type of contingency gives the buyer the right to have the home inspected within a specified period of time? A. A house sale contingency B. A specified contingency C. An inspection contingency D. An appraisal contingency

C. An inspection contingency

Which one of these contracts is a unilateral agreement? A. An independent contractor agreement B. A listing agreement C. An option to purchase D. A buyer representation agreement

C. An option to purchase

What is the legal process of a property or property in an unincorporated area or county becoming part of a neighboring city? A. Gentrification B. Corporation C. Annexation D. Inclusion

C. Annexation

Price fixing, group boycotts, bid rigging, market allocation, and division of markets by location or price are all examples of and are punished by: A. Estoppels, suspension of one's license B. Intentional misrepresentation, fines of up to $10 million for corporations and up to $350,000 for individuals and prison time C. Antitrust violations, fines of up to $100 million for corporations and up to $1 million for individuals and prison time D. Conversion, person time and up to $1 million in fines

C. Antitrust violations, fines of up to $100 million for corporations and up to $1 million for individuals and prison time.

Anthony is adding a new deck to his home. He has obtained all the necessary building permits to construct his new deck. Steve, the neighbor, informed him he has to have a California State contractor's license to work on his own property. Is Steve right? A. Anyone who does the business of a contractor must be licensed. B. Any major work conducted on a real property must be done by a licensed state contractor. C. Anyone who does the business of a contractor must be licensed unless the property owner is planning to sell the finished real estate project then they do not need a license to work on their own property. D. None of the above

C. Anyone who does the business of a contractor must be licensed unless the property owner is planning to sell the finished real estate project then they do not need a license to work on their own property.

Property rights that are "run with the land" and includes things such as air rights, surface rights, and subsurface rights are called: A. Fixtures B. Emblements C. Appurtenances D. Chattels

C. Appurtenances

When analyzing the data collected for a competitive market analysis, all of the following statements are most likely true except which? A. Data on homes that sold over six months ago is less reliable B. Homes with listing prices that are too high take longer to sell C. Asking price is a good indicator of selling price D. Research properties should match the subject property's characteristics as closely as possible

C. Asking price is a good indicator of selling price

All but which of the following is an AIDA feature? A. Action B. Desire C. Aspiration D. Interest

C. Aspiration

What is the penalty for a homeowner's failure to let an assessor know that the home is no longer eligible for a homeowner's exemption? A. Assessment with interest B. Assessment with penalty C. Assessment with interest plus a 25% penalty D. Penalty of 35% of the assessed value only

C. Assessment with interest plus a 25% penalty

What term describes a person, company or entity that assigns it rights to another? A. Assignee B. Delegor C. Assignor D. Delegee

C. Assignor

California allows a property manager to charge a non-refundable fee for which? A. Cleaning B. Security C. Background check D. Breakage by children

C. Background check

What is base lines, meridians, townships, and ranges? A. Base lines are vertical and run east/west, meridians are horizontal and run north/south, township lines are vertical running east/west from a principal base line, and ranges are horizontal running north/south on either side of a principal meridian. B. Base lines are horizontal and run north/south, meridians are vertical and run east/west; township lines are horizontal running north/south from a principal base line; and ranges are vertical running in any direction on either side of a principal meridian. C. Base lines are horizontal and run east/west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal base line; and ranges are vertical running north/south on either side of a principal meridian. D. Base lines are horizontal and run east/west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal meridian; and ranges can be either horizontal or vertical running in any direction on either side of a principal base line.

C. Base lines are horizontal and run east/west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal base line; and ranges are vertical running north/south on either side of a principal meridian.

Agent Jim tells his buyers that the seller will leave the riding lawn mower if the buyers make an offer now. What kind of closing technique is this? A. Assumptive B. Alternative C. Bonus D. Ownership

C. Bonus

A written employment agreement between a broker and a licensee must be signed by: A. The broker B. The real estate board C. Both parties D. The licensee

C. Both parties

In what landmark case did the Supreme Court prohibit racial segregation of public schools? A. Buchanan v. Warley B. Plessy v. Ferguson C. Brown v. Board of Education D. Shelley v. Kraemer

C. Brown v. Board of Education

If a broker is representing a buyer-client, they must negotiate on behalf of the: A. Seller B. Broker C. Buyer D. Lien Holder

C. Buyer

Why would a contract for deed (installment sale contract) be attractive to certain buyers? A. Buyers who cannot come up with a down payment may lease to own for a period of time usually five years. B. Buyers who can only make a small down payment with monthly installments usually they must meet certain conditions and the contract does not require conveyance within six months. C. Buyers who can only make a small down payment with monthly installments usually they must meet certain conditions and the Contract for Deed does not require conveyance (transfer) within the same year. D. Buyers have the title conveyed to them usually after two years when certain conditions are met and monthly installments are made toward the down payment.

C. Buyers who can only make a small down payment with monthly installments usually they must meet certain conditions and the Contract for Deed does not require conveyance (transfer) within the same year.

San Diego broker Cal Abrams has avoided the technological trend of the past 20 years. Finally, he's jumped online and realized what the buzz is about: He can potentially reach MILLIONS of customers just by running one little advertisement! When he talks to his salespeople, they tell him it's not as easy as that. In California, there are regulations to follow. He's ashamed to admit it, but since he was never interested in the Internet or "that new Web thing," he's not paid much attention to these regulations, and in fact, he had forgotten all about them until his salespeople reminded him. What must Cal do if he wants to advertise on the Internet? A. He must first send the advertisement to the California DRE for approval, and then use it once it's approved. B. Cal must file the Approval of Electronic Advertisement Form (AEAF), along with the appropriate filing fee, for the DRE's approval. Once the approval is received, the advertising may begin. If the AEAF is not approved, he may submit a new advertisement within 30 days without paying an additional fee. C. Cal must be sure to indicate his licensed status on his advertisements. D. None of the above

C. Cal must be sure to indicate his licensed status on his advertisements.

Which of the following does not belong in listing agreement provisions? A. Placement of the "for sale" sign on the property B. Equal housing opportunity clause C. California statute of frauds D. Arbitration

C. California Statute of Frauds

What is a tax on the retail sale of tangible personal property in California called? A. California public use tax B. Assessment C. California sales and use tax D. Real property tax

C. California sales and use tax

Salesperson Carol arrives at the first showing she has scheduled with prospects Mark and Melinda. When Carol pulls in front of the home, Melinda decides immediately that she doesn't want to see the inside. What should Carol do? A. Tell Melinda that the sellers will be very disappointed if they cancel the appointment. B. Enumerate the home's special features and hope she changes her mind. C. Call the sellers immediately and let them know you won't be coming by. D. Emphasize that this home is a great buy and it would be a shame for them to dismiss it without looking first.

C. Call the sellers immediately and let them know you won't be coming by.

In the US, the primary source of the law comes from: A. Civil law B. Statutes C. Case Precedents D. State regulations

C. Case Precedents

Items of personal property are also called: A. Appurtenances B. Fodder C. Chattels D. Interests

C. Chattels

In a real estate transaction, who is the decision maker on all things? A. Broker B. Buyer C. Client D. Seller

C. Client

A quiet title suit is also called a suit to remove: A. Assignment B. Defect C. Cloud D. Contingency

C. Cloud

What results when a grantee has obtained defective title or received title by defective means but occupies the property as they were the legal owner? A. Succession of title B. Acquisition C. Color of title D. Exclusive access

C. Color of title

Alexandra and Marita have formed a REIT. They have their investors and resources. The REIT will be investing in an assorted portfolio of real estate and mortgage investments. What type of REIT have Alexandra and Marita formed? A. Equity Trust B. Mortgage Trust C. Combination Trust D. Joint Venture Trust

C. Combination trust - combined trust companies that engage in both equity and mortgage trust investments but they are not prevalent as either equity trusts or mortgage trusts

What Act was passed in 1977 to prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities? A. Housing Mortgage Act B. Equal Credit Act C. Community Reinvestment Act D. Fair Credit Reporting Act

C. Community Reinvestment Act

The principles of an agency relationship include all of these factors except which one? A. Mutual consent B. Authorization C. Compensation D. Fiduciary duties

C. Compensation

What term describes when HUD attempts to resolve a complaint by getting assurance from the person against whom the complaint was filed that they will remedy the alleged violation? A. Condonation B. Arbitration C. Conciliation D. Intervention

C. Conciliation

What describes conditions that must be met in order for a contract to be enforceable? A. Terms B. Limitations C. Contingencies D. Restrictions

C. Contingencies

The Ahmed family signed a contract to buy the Miller family's home. However, the contract states, the Ahmed must first close on the sale of his current home within thirty days. If this closing does not occur, the contract is no longer binding for either party. Which contract term applies? A. Novation B. Option C. Contingency D. Assignment

C. Contingency - term or condition in a contract that requires a certain act to be done or a certain event to occur before the contract becomes binding

What consists of both common law and statutory rules that govern the creation, interpretation, and enforcement of contracts? A. Common law B. Statute law C. Contract law D. Civil law

C. Contract law

Judy and Xavier are planning a very large addition to their home. The kitchen will be doubled in size with a new hearth room, and a large new master suite will complete the renovation. They live in a neighborhood of houses in the $500,000 range. This addition will change the appraisal value of their home substantially. Which principle of value applies? A. Assemblage B. Competition C. Contribution D. Regression and progression

C. Contribution - the value of any component of a property is what it gives to the value of the whole or what its absence detracts from the whole

Patrick have secured a mortgage loan. He must provide at least a 20% down payment but are not required to have a government guarantee or private mortgage insurance. What type of mortgage loan have they obtained? A. Conventional insured loan B. Exchange C. Conventional loan D. Syndicate financing

C. Conventional loan - a mortgage that is secured by real property and is not insured or guaranteed by a government agency

John lives in an apartment and each month pays his rental payments. He is also considered a stockholder in his building and owns the property. In what type of apartment does John live? A. Condominium B. Timeshare C. Cooperative D. Common Element

C. Cooperative - members own shares represent ownership to a portion of the building as its principal asset: - The shareholder acquires a proprietary lease to occupy one of the apartment units

Jack is buying Padilla's home. He makes his offer and in his terms states, he wants all the window treatments, refrigerator, and microwave to be part of the sale. Padilla accepts his offer on the condition that the refrigerator is the only item that stays in the home. Which contract term applies? A. Implied agreement B. Novation C. Counteroffer D. Option

C. Counteroffer - attempt by seller to change the terms proposed by the buyer

Jeffrey is selling his loft to Caroline. He is using a General Warranty Deed in this transfer of property. Which of the following covenants is not a requirement for this type of deed? A. Covenant of Seisin B. Covenant Against Encumbrances C. Covenant of Exceptions and Reservations D. Covenant of Further Assurance

C. Covenant of Exceptions and Reservations

Which body of law is designed to protect the public from harm? A. Personal property law B. Civil law C. Criminal law D. Tort law

C. Criminal law

What type of zoning allows more restrictive zoning uses to be allowed in less restrictive zones? A. Noncumulative zoning B. Incentive zoning C. Cumulative zoning D. Recreational zoning

C. Cumulative zoning

What kind of appeal cases go straight to the California Supreme Court? A. Civil B. Murder C. Death Penalty D. Fraud

C. Death Penalty

Which of the following is not a characteristic of the California mortgage market? A. California has a large amount of the country's biggest commercial and savings banks B. California has a high population, therefore more people means more homes are needed C. Deeds of Trust are used instead of mortgages, which allows borrowers greater flexibility and protection. D. California has a very active secondary mortgage market

C. Deeds of Trust are used instead of mortgages, which allows borrowers greater flexibility and protection.

What clause in a standard mortgage states that if the borrower repays the debt when due, the words "of grant are void, the mortgage is canceled, and the title is given back to the borrower? A. Acceleration clause B. Seisen clause C. Defeasance clause D. Granting clause

C. Defeasance clause

What lease clause talks about the landlord leasing the property and the tenant taking possession of the property? A. Capacity to contract B. Rent C. Demising clause D. Description

C. Demising clause

When a broker receives a deposit check with a purchase contract, which of these are they not allowed to do? A. Deposit it directly into escrow B. Give it to the principal C. Deposit into the brokerage business account D. Hold it with the buyer's permission until the contract is accepted

C. Deposit into the brokerage business account

What is not one of the four ways a judgment lien can be terminated? A. Lien payment B. Lien expiration C. Discharge by exemption D. Discharge by creditor

C. Discharge by exemption

What is the true purpose of Truth in Lending Law? A. Closing costs B. Controlling interest rates C. Disclosure D. APR

C. Disclosure - requires lenders to disclose to buyers the true cost of obtaining credit

What should a customer receive to make them fully aware of what is going on in a transaction such as the condition of the property and who the licensee is representing? A. A property assignment form B. Affidavits C. Disclosures D. Brokerage agreement

C. Disclosures

What acceleration clause requires the borrower to pay off the entire mortgage debt when the property is sold? A. Subordination clause B. Subject to clause C. Due-on-sale clause D. Power of sale clause

C. Due-on-sale clause

What is a non-financial encumbrance that restricts the use of a property itself and enables others to use the property, regardless of the owner's desires? A. Lien B. Profit encumbrance C. Easement D. Restriction

C. Easement

When a licensee completes a TDS, the three main areas they will visually inspect includes the exterior of the property, the interior of the property and: A. The land B. Utility markings C. Environmental hazards D. Encroachments

C. Environmental hazards

Which provision in a CAR Residential Listing Agreement states that the property is offered in compliance with federal, state, and local anti-discrimination laws? A. Management approval B. Ownership C. Equal housing opportunity D. Acknowledgement

C. Equal housing opportunity

Eric is acting as a disclosed dual agent in a transaction. Which statement is true? A. Eric can require that both the buyer and the seller share equally in his commission. B. He must withdraw his representation of one of the parties. C. Eric may not represent the seller's interests to the detriment of the buyer. D. Eric's broker should appoint Eric as the designated agent in this transaction.

C. Eric may not represent the seller's interests to the detriment of the buyer.

Renee is leasing her condo in San Francisco from Brad. For the first six months of the lease, her rent will be $1,200 per month. Every six months her rent will increase by $100 per month based on the increases to Brad in taxes, insurance, and other operating costs. What type of lease has Renee signed? A. Index Lease B. Graduated Lease C. Escalator Clause Lease D. Economic Rent Lease

C. Escalator Clause Lease - a contract provision permitting an adjustment of certain payments either up or down to cover certain contingencies such as taxes, insurance, maintenance, and other operating costs

What term describes the process in which a disinterested third party holds all money and documents relating to a transaction until all terms and conditions have been satisfied? A. Transference B. Recording C. Escrow D. Modification

C. Escrow

What provision in a CAR Exclusive Buyer Representation Agreement allows the broker to provide the agreement to an escrow agent, and the buyer authorizes buyer's funds from escrow to pay the agreed upon compensation? A. Timing of Compensation B. Payments and Credits C. Escrow Assignment D. The Broker Right to Compensate

C. Escrow Assignment

Joe has a lease that specifies rent and other requirements, but it does not have an expiration date or renewal cycle. What kind of leasehold estate is it? A. Estate at sufferance B. Estate at will C. Estate for period to period D. Estate for years

C. Estate for period to period

Proof of ownership of a property is called: A. Marketable title B. Abstract of title C. Evidence of title D. Title commitment

C. Evidence of title

What refers to the right a tenant has exclusively to have possession of a rental property? A. Possessor rights B. Tenancy rights C. Exclusive use D. Specific use

C. Exclusive use

Properties which are owned by the government are: A. Domains B. Not exempt from the payment of property taxes C. Exempt from the payment of property taxes D. Required to pay a usury tax

C. Exempt from the payment of property taxes

If an agent is faced with questions outside the realm of their expertise, it is best for the agent to refer such questions to: A. Inspector B. Appraiser C. Expert D. Broker

C. Expert

Which of the following is not a true statement? A. Buyers looking at FSBO (for sale by owner) homes are usually looking for a bargain. B. FSBO sellers believe they will save money if they sell themselves. C. FSBO sellers who list with an agent will pay their own advertising costs. D. Buyers of FSBO homes are usually the ones who save money.

C. FSBO sellers who list with an agent will pay their own advertising costs.

What Act requires each of the three nationwide credit reporting companies to give consumers a free copy of their credit report at their request once every 12 months? A. Credit Reporting Act B. Home Mortgage Disclosure Act C. Fair Credit Reporting Act D. Mortgage Choice Act

C. Fair Credit Reporting Act

What Act requires that lenders keep all credit information confidential? A. Truth in Lending Act B. Mello-Roos Community Facilities Act C. Fair Credit Reporting Act D. Fair Housing Act

C. Fair Credit Reporting Act

Which fiduciary act requires that an agent act in good faith and obey the principal's directions as outlined in the contract? A. Honesty B. Accountability C. Fairness D. Care

C. Fairness

Which of the following is not a superior lien? A. Special assessment B. Federal and state inheritance tax C. Federal income tax D. Real estate tax

C. Federal income tax

Which type of estate is the most desirable? A. Determinable B. Fee excusatory interest C. Fee simple absolute D. Condition subsequent

C. Fee simple absolute

When is the first installment of property taxes due? A. First February B. Tenth of April C. First of November D. Tenth of December

C. First of November

Brett lost his job last year. He has only been able to find temporary work and fell behind on his mortgage. His home is currently in foreclosure. He is confused as to what will happen and how the debts are paid. What is the order of payments in foreclosure? A. Equitable right of redemption, foreclosure, and statutory redemption. B. Special assessment taxes and general taxes, the first mortgage which is determined by the order of recording, whatever is recorded next would be paid and the cost of the sale. C. First paid is the lender's cost of sale, then special assessment taxes and general taxes, then the first mortgage which is determined by the order of recording and then other debts to be paid. D. Statutory redemption, equitable redemption and foreclosure.

C. First paid is the lender's cost of sale, then special assessment taxes and general taxes, then the first mortgage which is determined by the order of recording and then other debts to be paid.

The term "metes" refers to distance and direction and the term "bounds" refers to: A. Course B. Variable landmarks C. Fixed reference points D. Latitude

C. Fixed reference points

What Act prevents foreign investors from avoiding paying taxes on the sale of real property? A. Tax-deferred exchange B. Tax shelter C. Foreign Investment in Real Property Tax Act (FIRPTA) D. Federal Tax Equity and Fiscal Responsibility Act (TEFRA)

C. Foreign Investment in Real Property Tax Act (FIRPTA)

This step of the general plan/master plan should encompass all aspects of the projected growth including the social economic, and physical features. While considered long-range, the plan must allow for short-range flexibility. Which step is this? A. Resource analysis B. Plan implementation C. Formulation of community goals D. Adaptation of zoning ordinances

C. Formulation of community goals

In early common law, transfers of land were only made when? A. From husband to wife upon the husband's death B. From father to child upon the father's death C. From father to son upon the father's death D. Both A and B

C. From father to son upon the father's death

When all members have unlimited liability for debts and obligations of the group, the organization is a: A. Limited partnership B. Corporation C. General partnership D. Syndicate

C. General partnership

Which of these is not an important aspect of selling? A. Establishing buyer rapport B. Knowing your inventory C. Giving buyers your opinion of what works best for them D. Handling objections

C. Giving buyers your opinion of what works best for them

With what type of loan is the monthly payment for principal and interest gradually increased by a certain percentage each year for a certain number of years then it levels off for the remaining term of the mortgage? A. Purchase money mortgage B. Package mortgage C. Graduated payment mortgage D. ARM

C. Graduated payment mortgage

What type of deed transfers title from the seller to the buyer? A. Deed of reconveyance B. Deed of trust C. Grant deed D. Specific Deed

C. Grant deed

Seller John tells his agent Greg that he would be willing to accept $185,000 on his $205,000 listed home. There are no offers on the property during the 6-month listing period and the listing expires. Weeks later when showing another home to a buyer, Greg mentions that John would have accepted less for her home. Which is true? A. Greg is violating the duties he owes to his new buyer. B. Greg has put himself in a potential dual agency. C. Greg has violated the duty of confidentiality to John. D. Greg has no fiduciary responsibilities to John once the listing expired.

C. Greg has violated the duty of confidentiality to John.

What is known as water beneath the surface that runs in recognizable underground streams or collects in porous ground layers called aquifers that landowners can make reasonable use it, but cannot transport it for use on land outside the basin from which it was removed but prior appropriation cannot be used.? A. Common water rights B. Surface water rights C. Ground water rights D. Water table rights

C. Ground water rights

Patrice is going over a preprinted sales contract with Mary, his agent. Mary has the authority to waive the broker's fee. She crossed off the broker's fee on the contract then wrote waived on top of it with her initial. What will happen to the contract in this situation? A. The preprinted portions of a contract always take precedence over handwritten. B. It depends on the portion of the contract and the language involved. C. Handwritten portions of real estate contracts always supersede preprinted forms. D. None of the above

C. Handwritten portions of real estate contracts always supersede preprinted forms.

An agent open house can be especially significant for a property that: A. Has just had the price reduced B. Is in an area where few homes are for sale C. Has unusual features or amenities D. Is overpriced

C. Has unusual features or amenities

Hassan is not happy with the listing agreement on his home through REE Realty Company.What should he do to terminate the listing with REE Realty Company? A. Hassan could wait for the broker to pass away. B. Hassan could wait for the expiration of the agreement term to pass. C. Hassan can speak with the broker and possibly come to a mutual agreement that is in both parties' best interest to cancel the listing. D. Hassab could cancel the agreement but since it is contractual, the broker could decide to sue for damages.

C. Hassan can speak with the broker and possibly come to a mutual agreement that is in both parties' best interest to cancel the listing.

Howard, a real estate agent, has heard about a specialized area of real estate brokerage, the mineral, oil, and gas brokerage. Howard is trying to find his niche in the industry and believes this is the direction in which he needs to head. What specialized license does Howard need to work with mineral, oil and gas transactions? A. He must obtain a mineral, oil, and gas brokerage certification in addition to his real estate salesperson license. B. He must obtain a securities license to work with mineral, oil, and gas transactions in addition to his real estate salesperson license. C. He does not need a specialized license to work with mineral, oil, and gas transactions D. Both A and B

C. He does not need a specialized license to work with mineral, oil, and gas transactions.

What does California law require the delivery of before the transfer of title on homes built before 1960 that are one-to-four units? A. Lead-based paint disclosure B. Notice regarding the availability of title insurance C. Homeowner's guide to earthquake safety D. Disclosure of death on property

C. Homeowner's guide to earthquake safety

What type of laws protect family members against losing their homes to general creditors attempting to collect on debts? A. Land use laws B. Familial laws C. Homestead laws D. Real estate laws

C. Homestead laws

What Act added sex to the list of protected classes in 1974? A. Fair Housing Amendment Act B. Housing Discrimination Act C. Housing and Community Development Act D. Community Reinvestment Act

C. Housing and Community Development Act

Which is not a true statement about the Agency Disclosure? A. The listing agent must provide the disclosure to the seller prior to securing the listing agreement. B. The selling agent must provide the disclosure to the seller "as soon as practicable" prior to presenting a purchase offer. C. If the selling agent does not deal directly with the seller, the selling agent is not required to provide the disclosure. D. The selling agent must provide the disclosure to the buyer "as soon as practicable" prior to the execution of the buyer's offer to purchase.

C. If the selling agent does not deal directly with the seller, the selling agent is not required to provide the disclosure.

What type of contract consists of obligations arising from a mutual agreement and intent to promise when the agreement and intent to promise where the agreement and promise have not been expressed in words? A. Unconscionable contract B. Aleatory contract C. Implied contract D. Unilateral contract

C. Implied contract

Jeanne and Mark are buying a home. They have been told their mortgage payment will be $1,072 per month. There is also an additional amount of $335.62 being added to the monthly payment, bringing their total of $1,407.62. It was explained the additional $335.62 is to cover insurance and property taxes. Which loan definition applies? A. Estoppel B. Disintermediation C. Impounds D. In Contract

C. Impounds - a fund of the buyer's money that the lender sets aside for future needs relating to a parcel of property

Interest is always paid: A. In advance B. By the lender C. In arrears D. Before closing

C. In arrears

An easement may be created by all of the following except? A. By prescription B. Voluntary C. In gross D. Necessity

C. In gross

The Smiths have decided to move to Antigua. They are transferring the ownership of their $950,000 home in Oakland to their daughter, Renee. Renee has heard about Proposition 13 and is nervous about not being able to afford the increase in property taxes. Does she need to worry? A. In the state of California, transferring a principal resident of 2 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised and the taxes increased. B. When the property is transferred from the Smiths to Renee, the full cash value for tax purposes will be adjusted to the current market value of the property. This will increase the property taxes considerably. C. In the state of California, transferring a principal residence of $1 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised nor the taxes increased. D. None of the above

C. In the state of California, transferring a principal residence of $1 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised nor the taxes increased.

According to ECOA, lenders cannot discriminate against potential borrowers on the basis of all but which of the following? A. Marital Status B. Age C. Income D. Religion

C. Income

In what type of a relationship is an agent paid based on their result not effect or time spent working on real estate activities? A. Employee relationship B. Technical relationship C. Independent contractor relationship D. Transaction broker relationship

C. Independent contractor relationship

The interest rate on an adjustable-rate mortgage is tied to an economic factor called the: A. Adjustment B. Margin C. Index D. Reserve

C. Index

What is undivided interest? A. Interest in a property where there is a single owner B. Interest determined by possession of the property C. Interest in a property where two or more parties share ownership D. Interest determined by intended use of the property

C. Interest in a property where two or more parties share ownership

California law outlines the distribution of real property through a process called: A. Lis pendens B. Life estate C. Intestate succession D. Quiet title

C. Intestate succession

Abigail has an inheritance tax lien placed on all of her property. What kind of lien is it? A. Voluntary general B. Involuntary specific C. Involuntary general D. Voluntary specific

C. Involuntary general

Miranda helps her friend Lupe purchase a home. She researches the neighborhood, assists her with a mortgage, she essentially acts as Lupe's real estate agent. There is only one issue, Miranda does not have a California license and Lupe has paid Miranda for her help. Is this acceptable? A. Yes, it is acceptable. Miranda is a lender who makes federally-insured or guaranteed loans. She has helped Lupe with her knowledge and experience and Lupe has compensated her time. B. Miranda is simply helping her busy friend make good choices. She just wanted to put her knowledge of the real estate industry to work. Although she has never passed the licensing examination, she knows everything an agent does. C. It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license. D. Miranda is in the process of studying for her license she will be taking the examination before Lupe's real estate purchase closes. Miranda will be a licensed real estate agent at the close of escrow then it is acceptable.

C. It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license.

Jeff rent a house from Mike. Jeff is three months behind on his rent. Mike want to remove all of Jeff's things from the house, shut off the utilities, and change the locks. Are Mike actions legal under the California Housing Law? A. Mike's idea is not illegal because Mike has every right to remove Jeff and his possessions from the property due to the late payment of rent. B. It is illegal for Mike to take such actions because the landlord need to serve the tenants with either a seven-day or a fifteen day notice of eviction. C. It is illegal for Mike to take these actions. Mike can as a landlord serve the tenant with a three-day notice of eviction then take the tenant to court if they refuse to move out after three days. D. It is illegal for Mike to take such actions and they must file an unlawful detainer in court and the tenant can be forcibly removed by the sheriff.

C. It is illegal for Mike to take these actions. Mike can as a landlord serve the tenant with a three-day notice of eviction then take the tenant to court if they refuse to move out after three days.

Which is true of an exclusive-authorization-to-acquire-property agreement? A. The buyer must pay the broker a commission. B. The broker will owe fiduciary responsibilities to the seller as well as the buyer. C. It must specify a definite termination date. D. Commission is never involved.

C. It must specify a definite termination date.

James have made an offer on a four-bedroom home that will be much more costly than their present mortgage. The day after making the offer, James learns his company is being sold and he will probably lose his job. Are Tina and James contractually obligated to the offer they have made on the new home? A. Yes, an offer is put onto a purchase contract form and is legall binding. B. No, an offer is just an offer until it is accepted by the seller then the offeror is legally bound to the contract. C. James have not received notification of the seller's accepting the offer, he may legally withdraw the offer and not be held liable on the contract. If the offer has been accepted and communication of this offer has been received by the buyer, it is legally binding. D. None of the above

C. James have not received notification of the seller's accepting the offer, he may legally withdraw the offer and not be held liable on the contract. If the offer has been accepted and communication of this offer has been received by the buyer, it is legally binding.

Jerry is interested in purchasing a lot for new construction in a new subdivision. The Commissioner has issued a preliminary public report in this case, allowing the subdivider to take reservations for lot purchases. Does Jerry have any recourse to change his mind? A. Jerry may change his mind on the lot he has reserved. He will not receive a fully refund. His refund will be prorated for the amount of the time he had reserved the lot. B. Jerry is under no obligation due to the preliminary public report. His reservation is one in name only and is not legally binding. C. Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued. D. None of the above

C. Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued.

Chris, Jen, and Will are business partners of a cosmetics company. Chris wants to sell his shares of the company including the property owned by the partnership. They have survivorship of the property so when one dies then the remaining partners will take over. Chris is unable to find a buyer for his share and he ask the court to either sell his share or sell the entire property. What form of concurrent ownership applies here? A. Partition B. Tenants in Common C. Joint Tenancy D. Separate Ownership

C. Joint Tenancy - two or more persons collectively own a property as if they were a single person

What type of lien occurs when someone loses a lawsuit and a judgment is placed against real property to pay for the judgment? A. Real estate tax lien B. Franchise lien C. Judgment lien D. State inheritance tax lien

C. Judgment lien

Which real estate syndicate is the most commonly used? A. General Partnership or Joint Venture B. Corporate C. Limited Partnership D. Combination

C. Limited Partnership - limited partners are liable only to the extent of their investment

Which of these items would be a credit to the buyer on the settlement statement? A. Sales price B. Loan origination fee C. Loan amount D. Recording fee

C. Loan amount

Who enforces the codes of the California State Housing Law? A. State building inspectors B. Federal building inspectors C. Local building inspectors D. None of the above

C. Local building inspectors

States allow local governments to enact ordinances because: A. State government does not have enough resources B. Local governments does not have to abide by state law C. Local government are more familiar with the needs of their community D. They help the state government make laws

C. Local government are more familiar with the needs of their community

The US Constitution gives Congress implied power, which is the ability to: A. Alter the Constitution B. Levy taxes C. Make any laws that they deem necessary D. Make laws that are neither prohibited by nor violate the Constitution

C. Make any laws that they deem necessary

Two new bases for discrimination under the Unruh Civil Rights Act are: A. Marital status and legal source of income B. Marital status and source of income C. Marital status and sexual orientation D. Legal source of income and sexual orientation

C. Marital status and sexual orientation

Ted and Jack are selling their home to Duncan and Gary. Upon the title search, the title company discovers Ted and Jack's home is free of any liens or problems and can be easily sold. Ted and Jack's property holds which type of title? A. Certificate of title B. Abstract C. Marketable title D. Chain of title

C. Marketable Title - a title that is free of defects, and there are no liens on the property

Christina will get marry next year and she want to buy some vacation property on the coast. She asks her agent, Martina, for advice on the title. What should Martina tell her about the title? A. To protect her future assets and hold title separately due to California's community property laws. B. She should consult her attorney on this matter. C. Martina could discuss with Christina what she knows in reference to California community property laws. She should not offer any advice on this subject except to consult an attorney to obtain legal counsel. D. None of the above

C. Martina could discuss with Christina what she knows in reference to California community property laws. She should not offer any advice on this subject except to consult an attorney to obtain legal counsel.

Tangible property is physical, visible, and: A. Abstract B. Conceptual C. Material D. Imperceptible

C. Material

Max, a licensee, accepts a bribe from ABC Title Company for referring clients. What is Max possible punishment? A. Max could be fined up to $50,000 and up to six months of prison time. B. Max could be fined a maximum of $10,000. C. Max could go to prison and/or be fined $10,000 for each illegal transaction. D. Max may have to pay restitution to those who provided the bribe

C. Max could go to prison and/or be fined $10,000 for each illegal transaction.

What type of junior lien arises when a contractor or work is not paid in full? A. Specific lien B. General lien C. Mechanic lien D. Mortgage lien

C. Mechanic lien

What type of lien is also known as a construction lien? A. Vendor's lien B. Federal lien C. Mechanic's lien D. Involuntary lien

C. Mechanic's lien

Mary and Ben were having a dispute over an employment contract. They agreed to allow a third party to listen to their issues and help them come to a resolution. This is a description of what type of dispute resolution? A. Arbitration B. Litigation C. Mediation D. Estoppel

C. Mediation

Miriam is a real estate salesperson. She has been handed a $100,000 earnest money deposit certified check from the buyer. What does she do with the money? A. Miriam must turn the money over to the broker listing the home the buyer are interested in purchasing. The broker may then deposit the funds in the broker's trust account. B. Miriam must hand the check over to her own broker. The broker may direct her to put the funds into the hands of the broker's principal, hand the funds over to another broker involved in the transaction or place the funds into the broker's bank account. C. Miriam must hand over the check to only her own broker. At that point, the broker might direct her to put the funds into the hands of the broker's principal, place the funds into a neutral escrow depository or deposit the funds into the broker's trust fund bank account. D. Miriam must simply deposit the check into the broker's account within three business days of receipt funds. She need not consult her broker on procedure only follow the trust fund regulations.

C. Miriam must hand over the check to only her own broker. At that point, the broker might direct her to put the funds into the hands of the broker's principal, place the funds into a neutral escrow depository or deposit the funds into the broker's trust fund bank account.

Residential property includes all of the following except which? A. Apartment B. Condominium C. Motel D. Vacation home

C. Motel

Salesperson Larry is writing an advertisement for one of his listings. Which of the following phrases should he avoid? A. Desirable neighborhood B. Apartment complex with chapel C. Mother-in-law suite D. No wheelchairs

C. Mother-in-law suite

What is the form of California State Real Estate licensing examinations? A. True or false tests B. Essay tests C. Multiple-choice tests D. All of the above

C. Multiple-choice tests

The full consent of all parties to a contract is called? A. Memorandum of understanding B. Cooperative agreement C. Mutual agreement D. Service agreement

C. Mutual agreement

Due to the subdividing of lots on the lake, Jim's property is surrounded on three sides by Louise's property. The only other boundary is the lake. Jim can only get to his home by driving up Andrea's driveway and behind her lake home to get to his own. How was the easement in this situation created? A. Implication B. Reservation C. Necessity D. Expressed

C. Necessity - an easement appurtenant granted by a court of law to a property owner because of a circumstance of necessity

If a real estate agent fails to exert reasonable efforts to represent their client's interests, the agent could be found guilty of: A. Misrepresentation B. Perjury C. Negligence D. Fraud

C. Negligence

When a tenant agrees to pay all taxes, insurance, maintenance, and repairs, that tenant has what kind of lease? A. Gross B. Percentage C. Net D. Graduated

C. Net

Which of the following listing agreements is illegal in most state? A. Open listing B. Exclusive agency listing C. Net listing D. Agency coupled with interest

C. Net listing

Which of the following equations is the correct application of the capitalization rate? A. Net operating income divided by capitalization rate = value memory tool - IRV = value B. Capitalization rate divided by net operating income = value memory tool - IRV = value C. Net operating income divided by capitalization rate = value D. Value divided by net operating income = capitalization rate

C. Net operating income divided by capitalization rate = value

Matilda is buying a condo from Tom. She has given her agent, Manuel, earnest deposit funds in the amount of $10,000. Matilda has post-dated the check to coincide with the expiration date of offer acceptance on the contract. Do the basic trust fund regulations apply to Matilda's earnest deposit? A. Yes, handling a post-dated check should be the same as a check with written instructions to be cashed upon offer acceptance. All of the basic regulations apply to the post-dated check. B. No, a post-dated check is illegal tender in the state of California and may result in the mischaracterization of the form of earnest deposit money made by the buyer. C. No, California law has held that post-dated checks are the equivalent of a promissory note and are non-negotiable. The broker must not accept a post-dated check from a buyer without adequate disclosure to the seller. D. Yes, a post-dated check should be treated the same as a promissory note. AS long as the seller has full disclosure, the basic regulations of trust funds apply to the post-dated check.

C. No, California law has held that post-dated checks are the equivalent of a promissory note and are non-negotiable. The broker must not accept a post-dated check from a buyer without adequate disclosure to the seller.

Christine and Scott have been married for fifteen years. They a primary home, and a vacation home. The couple purchased their primary home together after their marriage, but Scott owned the vacation property prior to the union. Christine and Scott are now getting divorced. Christine wants half of their residence and half of the ownership of the vacation property. At times they have rented the vacation home and the proceeds have gone to their joint bank account. Does Christine have any legal right to the ownership of the vacation home? A. Yes, due to the commingling of the funds gained from rental proceeds, Christine will be allowed shared ownership of the vacation property. B. Yes, although Scott came to the marriage with the vacation property, all property owned by each partner in a marriage is thus shared by the spouse. C. No, Scott came to the marriage with the vacation property, therefore, it may remain separate property. But due to the commingling of the rental proceeds from the property in the joint account, Christine does have a right to half of the proceeds. D. Both A and B

C. No, Scott came to the marriage with the vacation property, therefore it may remain separate property. However, due to the commingling of the rental proceeds from the property in the joint account, Christine does have a right to half the proceeds.

TBH Brokerage is handling the sale transaction for Luis, the seller, home to Brad, the buyer. The buyer give an earnest money deposit to the brokerage in the amount of $5,000. The money is then deposited into the broker's account at the bank on the seventh business day after receiving the funds. Has TBH Brokerage followed all trust account regulations with the earnest money? A. Yes, the money was received and deposited into the broker's account by the seventh business day after receiving the funds. B. No, the broker should have deposited the earnest money into the broker's account within three business days of receiving the funds. C. No, The broker should have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account. D. No, the broker should have deposited the earnest money into the broker's trust fund not the broker's account within the seven days allotted after receipt of funds.

C. No, the broker should have deposited the earnest money within three business days of receipt of funds. The money should be deposited into the broker's trust fund account and not the broker's account.

What type of use is one that clearly differs from current zoning and usually occurs when zoning change leaves existing properties in violation of the new ordinance? A. Special use B. Conforming use C. Nonconforming use D. Restrictive us

C. Nonconforming use

Ricardo's restaurant is currently located between two subdivisions. The restaurant has been in business for over forty years. Currently, the area no longer allows any commercial activity. The zoning board rules Ricardo's may continue to operate unless it is sold, destroyed, or used for any other commercial purpose. Which zoning exception applies to Ricardo's? A. Nonconforming use (illegal) B. Spot zoning C. Nonconforming use (legal) D. A buffer zone

C. Nonconforming use (legal) - an improvement that does not comply with the zoning ordinances because it was constructed prior to the adoption of the zoning laws

What describes when a borrower requests that the lender replace him or her on the loan instrument with a new buyer who must go through a process of full substitution? A. Trust Deed B. Statute of Frauds C. Novation D. Principle of Laches

C. Novation

What are the steps to convert a mobile home into real property, if it is possible? A. Obtain a building permit and place the mobile home on a permanent foundation. A document stating the mobile home has been attached to a permanent foundation must be recorded. B. It is not possible to convert a mobile home into real property C. Obtain a building permit, place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. A document stating the mobile home has been attached to permanent foundation must be recorded. D. Place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. A document stating the mobile home has been attached to a permanent foundation must be recorded.

C. Obtain a building permit, place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. A document stating the mobile home has been attached to permanent foundation must be recorded.

Which of the following parties are not exempt from the real estate licensing requirements in California? A. Cemetery authorities B. Licensed personal property brokers C. Off-site property managers D. Short-term vacation rental agents

C. Off-site property managers

What type of listing is a non-exclusive contract authorizing a broker to serve as the agent for either the sale or the purchase of the property? A. Net listing B. Exclusive right to sell listing C. Open listing D. Multiple listing

C. Open listing

Alexandra and Marita are forming a real estate syndicate. They have their initial investments and are ready to proceed. What happens next? A. Operation, origination, completion, or liquidation B. Syndication, general partnership, REIT C. Origination, operation, completion, or liquidation D. Origination, exemption, corporation

C. Origination, operation, completion, or liquidation

Tim thinks his buyers are ready to make an offer. He asks "Which room is the baby room?" What kind of closing technique is this? A. Bonus B. Alternative C. Ownership D. Standing-room-only

C. Ownership

Agricultural land includes all of the following EXCEPT which? A. Orchards B. Pastureland C. Parks D. Farms

C. Parks

Once a lien is placed on a property, the most common way to remove it is for the property owner to: A. Request a release B. File for bankruptcy C. Pay the debt D. Retain an attorney

C. Pay the debt

Which statement is true about a loan that has a negative amortization? A. At the end of the term, the loan balance will be negative. B. The borrower makes payments of interest only over the term of the loan. C. Payments will not be enough to retire the loan. D. All adjustable rate mortgages have negative amortization.

C. Payments will not be enough to retire the loan.

What describes a lease where the rent is based on a percentage of the monthly or annual gross sales made on the site? A. Proprietary lease B. Index lease C. Percentage lease D. Net lease

C. Percentage lease

Glenna bought her new home and she has new expenses. Which of these expenses is not associated with owning a home? A. Real estate taxes B. Interest on the loan C. Personal property tax D. Homeowner's insurance

C. Personal property tax

What is a housing concept that produces a high density of residential housing units, a maximum use of open spaces and greater development flexibility which results in lower-priced homes and minimum maintenance costs? A. Co-op B. Ecovillages C. Planned unit development D. Section 8 housing

C. Planned unit development

What describes the right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public? A. Law of the land B. Eminent domain C. Police power D. Right of rescission

C. Police power

Jonathan is in the process of refinancing his home loan. Due to the lowering of interest rates and Jonathan's credit score improvement, he has been able to secure a conventional loan with an excellent annual percentage rate. But his current loan contact contains a stipulation that if the replay the loan before three years then he will owe the lender a fee of two percent of the loan balance. Which clause applies to Jonathan's situation? A. Subordination Clause B. Subrogation C. Prepayment Penalty Clause D. Alienation Clause

C. Prepayment Penalty Clause - a person is assessed a prepayment penalty for paying off or drastically reducing a loan amount, they can deduct the penalty from income taxes

Jake has received two offers on one of his listing. The home is listed at $210,000. One offer is for $208,000 and the other offer is for $200,000. What should Jake do? A. Present the $208,000 offer today and wait for a response from the seller before he presents the other offer. B. Present the $200,000 first and recommend rejection then present the $208,000 offer. C. Present the $208,000 offer and the $200,000 offer together at the same presentation meeting. D. Hold both offers because he heard that a full-price offer is on its way.

C. Present the $208,000 offer and the $200,000 offer together at the same presentation meeting.

Fair Housing laws are designed to: A. Give housing choices to the widest range of people B. Restrict the housing market C. Prohibit discrimination D. Ensure fair real estate negotiations

C. Prohibit discrimination

Which section of a Closing Disclosure shows the actual payments the borrower will make for principal and interest and mortgage insurance, and estimated amount for the escrow payment, and the total estimated monthly mortgage payment? A. Loan terms B. Calculations C. Projected payments D. Descriptions

C. Projected payments

California law has held that a post-dated check may be considered the equivalent of a: A. Certificate of deposit B. Cash deposit C. Promissory note D. Cashier's check

C. Promissory note

Scott want to sell his home by for sale by owner (FSBO). Mindy show the house to Bart but she did not disclose that she is an agent. Scott does not want to work with an agent. Bart made an offer above Scott's asking price and Scott accepted it regardless of Mindy's conflict. What kind of agency relationship is this? A. Written or expressed B. Ostensible agency C. Ratification D. Implied

C. Ratification - the principal accepts the conduct of someone who acted without prior authorization as the principal's agent

What was created in 1974 to ensure that a buyer and seller in a residential real estate transaction have knowledge of all settlement costs? A. Real Estate Acquisition Act B. Residential Real Estate Act C. Real Estate Settlement and Procedures Act D. Settlement and Real Estate Transaction Act

C. Real Estate Settlement and Procedures Act

Air, water, land, and everything affixed to the land is a definition of: A. Intangible property B. Chattel C. Real estate D. Community property

C. Real estate

In some counties, certain funds are collected and distributed to be used only for the exclusive purpose of deterring, investigating, and prosecuting real estate fraud crimes. This fund is: A. Real estate advisory commission fund B. Real estate recovery account C. Real estate fraud prosecution trust fund D. Real estate fraud investigation fund

C. Real estate fraud prosecution trust fund

Which of the following is not considered a benefit of investing in real estate? A. Having a monthly income B. Reducing taxes C. Realizing a quick profit D. Hedging against inflation

C. Realizing a quick profit

A competitive market analysis contains information about all of the following items except which? A. Currently listed homes B. Recently sold homes C. Recently remodeled homes D. Similar expired listings that did not sell

C. Recently remodeled homes

Agent Pam receives an offer on one of her listings for less than the asking price. The home has been listed for several months so Pam does a CMA and determines that the offer is more than reasonable in today's market, But the seller will not be willing to accept the offering price. What should Pam do? A. Tell them to reject the offer so that the buyers will counter back with full price. B. Advise them to let the offer expire with no action to scare the buyer. C. Recommend that they counteroffer with a price halfway between the asking and the offering price. D. Persuade them to accept the offer.

C. Recommend that they counteroffer with a price halfway between the asking and the offering price.

What is an account established as a last resort for a consumer who has obtained a final civil judgment or criminal restitution order against a real estate licensee based on fraud or certain other grounds? A. Real estate education fund B. Real estate research fund C. Recovery fund D. Real estate restitution fund

C. Recovery fund

What is an example of descrimination in lending? A. Denying membership to MLS B. Telling a person that a property is not for sale C. Refusing to purchase a loan D. Stating a property is restricted

C. Refusing to purchase a loan

Which of these documents is for sellers only and not for buyers? A. Smoke detector statement of compliance B. Real estate transfer disclosure C. Residential listing agreement D. Seller's affidavit of non-foreign status and/or California withholding exemption

C. Residential listing agreement

What provision in a sales contract is the seller's written summary of the property's condition at the time of contracting for sale? A. Seller's representations B. Right of rescission C. Residential property condition disclosure D. Broker's representation and commission

C. Residential property condition disclosure

What are limitations placed on the use of land by the developer of a residential subdivision? A. Adverse possession B. Easements C. Restrictive covenants D. Development controls

C. Restrictive covenants

When the broker and seller agree that the broker can receive commission for a specified number of days after the listing expires if selling to a "named" party on a list, it's referred to by what term? A. Security clause B. Non-penalty clause C. Safety clause D. Effective period

C. Safety clause

Tokay has a small retail store in San Diego. He sells imported items such as clothing, arts, and crafts. He has recently sold the store to a group of investors. In the arrangement with the investors, Tokay now leases his former store from the new investors. What type of financing applies to Tokay new arrangement? A. Exchange B. Long-term lease C. Sale-leaseback D. Straight lease

C. Sale-leaseback - a property owner sells their parcel of property but then lease it back from the purchaser so the original owner retains possessory rights

Which of these statements is true? A. Salesperson Harry can solicit his own listings. B. Salesperson Julie can receive her commission from the cooperating broker in her latest transaction. C. Salespersons must perform all of their activities on behalf of their employing broker. D. Broker Tom has only limited responsibility for the actions of his licensees.

C. Salespersons must perform all of their activities on behalf of their employing broker.

Sam, a broker, thought the postage meter stamp was sufficient evidence of a U.S. Postal Service postmark. He was wrong and his broker's license expired. What happened next? A. Sam's broker's license expired so he had to cease all of his licensed activities. But his salespersons still possess active licenses and may continue with business while Sam is temporarily unlicensed. B. Sam must immediately stop his licensed activity and his salespersons all lose their licenses as well. All must retake the state license examination of re-activate their licenses. C. Sam must immediately stop his licensed activity. His salespersons are all placed immediately in non-working status, and his branch office licenses are canceled. He must then take all necessary steps to re-activate his license, his salespersons' licenses, and the branch office licenses. D. Sam must stop his licensed activity until he re-activates his license. The only salespersons affected are those with conditional salesperson licenses. They may not re-activate their status and must complete the required courses to obtain a four-year salesperson license.

C. Sam must immediately stop his licensed activity. His salespersons are all placed immediately in non-working status, and his branch office licenses are canceled. He must then take all necessary steps to re-activate his license, his salespersons' licenses, and the branch office licenses.

Chip is a veteran and he was told he is qualified for a property tax exemption based on his military service during wartime. Which exemption applies to him? A. Section 218 B. Proposition 13 C. Section 205 (California Military Exemption) D. Proposition 60

C. Section 205 (California Military Exemption)

What describes money that a tenant deposits with the owner in advance of possession for the repair of any damages for which the tenant is responsible? A. Lease deposit B. Partial payment C. Security deposit D. Escrow deposit

C. Security deposit

Which of the following best describes prospecting? A. Seeking buyers for your listings B. Seeking listings C. Seeking both buyers and sellers D. Seeking buyers for other agents' listings

C. Seeking both buyers and sellers

A buyer's agent is held to the same standard of performance in dealing with the buyer that the listing broker is held to in dealing with the: A. Title company B. Lender C. Seller D. Customer

C. Seller

Who must sign and acknowledge escrow instructions? A. Buyer B. Broker C. Seller and buyer D. Buyer

C. Seller and buyer

Rules and regulations enacted by various federal agencies are important to real estate because: A. They are laws passed by congress B. Many are listed in the constitution C. Several of the agencies involved housing and/or financial transactions D. They are considered guidelines rather than laws

C. Several of the agencies involved housing and/or financial transactions

Which of the following actions by an agent would upset the seller? A. Conducting an agent open house. B. Sending a weekly activity report. C. Sharing all visitor comments two weeks before the listing ends. D. Placing a classified ad in the weekend paper.

C. Sharing all visitor comments two weeks before the listing ends.

Which one of these parties do not need to be licensed as a real estate salesperson or broker? A. Buyer's agent B. Person who solicits real estate listings C. Short term vacation rental agent D. Seller's agent

C. Short term vacation rental agent

Which of the following lien types is subject to the homestead law? A. Child support debts B. Extensions of credit on the homestead C. Signature loan debts D. Tax debts on the homestead

C. Signature loan debts

What category of investors sees syndicate equity financing as a good opportunity? A. Consumers with damaged credit B. Consumers with more than one home loan C. Small investors D. Borrowers who have previously declared bankruptcy

C. Small investors

What describes involuntary, specific liens against real property by a local government entity such as street or sewer improvements? A. HOA lien B. State tax lien C. Special assessment D. Judgment lien

C. Special assessment

What type of taxes are levied on properties to pay for improvements that will increase the overall value of the property? A. Personal property taxes B. Improvement taxes C. Special assessments D. Rollback taxes

C. Special assessments

What type of deed is tailored to the requirements of specific parties, properties and purpose? A. Grant deed B. General deed C. Special purpose deed D. Full covenant and warranty deed

C. Special purpose deed

A local school has been destroyed by fire. Nothing has been salvaged and the school will have to be completely rebuilt. What are three methods determining the cost of rebuilding? A. Estimate the value of the land, determine the replacement or reproduction cost, and deduct all accrued depreciation B. Square foot cost, unit place, and quantity survey method C. Square foot cost, value of land estimation and quantity survey method D. Value of land estimation, unit in place, and deduct all accrued depreciation

C. Square foot cost, unit place, and quantity survey method

Who are the primary regulatory entities of the real estate business? A. Real estate commission B. Local governments C. State governments D. City governments

C. State governments

What requires certain documents to be in writing to be enforceable? A. Statute of limitations B. Law of documentation C. Statute of Frauds D. Habeas Corpus

C. Statute of Frauds

Which of the following statements is not true about the Federal Reserve? A. Regulates reserve requirements for all institutions that offer checking accounts. B. Supervises the Truth in Lending Act. C. Supervises the Federal Housing Authority. D. Engages in open market operations.

C. Supervises the Federal Housing Authority.

What term describes the giving up of a lease or other state thereby ending any further obligation? A. Breach B. Condemnation C. Surrender D. Voluntary agreement

C. Surrender

Lenders can charge all of the following except which fee when a borrower gets a loan? A. Origination fee B. Points C. Survey fee D. Discount points

C. Survey fee

Which of these lenders would be the least likely to lend money for an investor to purchase an apartment building? A. Saving bank B. Life insurance company C. Syndicate D. All of the above

C. Syndicate

If someone shows up at the seller's door unexpectedly to see the home, the sellers should: A. Tell them to call the agent's office. B. Invite them in and show them around. C. Take their names and call the agent's office. D. Ask them to leave.

C. Take their names and call the agent's office

A mill rate is used in real estate is: A. Appraisal to determine market value B. Finance to determine the points charge on a loan C. Taxation to determine the owner's tax bill D. Assessment to determine the jurisdiction's budget

C. Taxation to determine the owner's tax bill.

Which of the following is a kind of tenancy not recognized in California? A. Joint tenancy B. Tenancy in common C. Tenancy by the entirety D. Tenancy in severalty

C. Tenancy by the entirety

Which of the followings is not a type of leasehold estates? A. An Estate for Years B. An Estate from Period to Period C. Tenancy in Common D. Estate at Will

C. Tenancy in Common

What is defined as a simulated housing transaction designed to obtain evidence of different treatment based on an individual's protected class status? A. Measuring B. Streaming C. Testing D. Blockbusting

C. Testing

John is studying for his California real estate license. He is studying federal law, state law, and local law. Now, he is trying to get a handle on something called "Professional Code." What source has no input on the topic John is currently studying? A. Federal and state legislation B. Industry self-regulation through trade associations and institutes. C. The Better Business Bureau D. State real estate licensing regulation

C. The Better Business Bureau

Suzette is leasing a condo from the Gracias. She has been renting the condo for over three years. She renews the lease each year. Because of her loyalty and exemplary rental history, the Gracias allow her to make any decor changes she wishes. Which of the following statements is true about the relationship between Grace and Suzette? A. The Garcias own the condo in leasehold but rent it to Suzette in freehold. B. The Garcias have entered into a Pur Autre Vie lease relationship with Suzette. C. The Garcias own the condo in freehold but rent it to Suzette in leasehold. D. The Garcias and Suzette have a tenant in common relationship.

C. The Garcias own the condo in freehold but rent it to Suzette in leasehold

The two most important environmental disclosure requirements for licensees to be aware of are the Natural Hazards Disclosure Act and: A. The Clean Air Amendment B. The Coastal Zone Conservation Act C. The Lead-based Paint Act D. The Alquist-Priolo Earthquake Fault Zone Act

C. The Lead-based Paint Act

Which paragraph of the purchase agreement must be initiated by both buyer and seller for it to apply? A. Final verification of condition B. Removal of contingencies C. Liquidated damages D. Buyer indemnity and seller protection

C. The Liquidated Damages paragraph of the purchase agreement states the buyer agrees to pay the seller if the buyer breaches the contract with damages not to exceed 3% of the purchase price. Both buyer and seller must initial this section for it to apply.

What do many states have that protects consumers who enter into the types of contracts in which fraud is most likely to occur? A. Consumer law B. Common law C. The Statute of Frauds D. The Breach of Performance

C. The Statute of Frauds

What piece of information is missing from a blind ad? A. The price B. The property's address C. The broker's identification D. The property's features

C. The broker's identification

Which statement is not true about opening escrows? A. The escrow holder will need information about the broker's commission. B. The escrow holder will use the purchase agreement as the basis for writing the escrow instructions. C. The buyer's and seller's agents will sign the escrow instructions. D. Once escrow instructions are signed, changes can only be made with the written agreement of all parties.

C. The buyer's and seller's agents will sign the escrow instructions.

Abby applies for a federally-related loan to purchase a home. The lender must furnish a copy of the CFPB booklet to Abby no later than the third business day from which date? A. The date Abby receives the good faith estimate. B. The date escrow is opened. C. The date the lender receives her application. D. The date Abby makes the request to receive the booklet.

C. The date the lender receives her application.

Greg and Joyce have an adjustable-rate mortgage on their home. What is the key feature of this type of loan? A. The principal never amortizes. B. The term of the loan can be shortened. C. The interest rate can vary. D. The monthly payments increase over time.

C. The interest rate can vary.

The owner of an apartment building told his manager not to rent to an Asian family. Which statement is true? A. The manager must follow the owner's instructions B. The manager should set up his screening process to check for nationality C. The manager should tell the owner that his request is a violation of fair housing law D. The manager should rent to the Asian family and not tell the owner

C. The manager should tell the owner that his request is a violation of fair housing law

Under Article 7, what is the maximum amount that may be charged to the borrower for loan costs and expenses? Under Article 7, if the home is not occupied by the owner under what circumstances is the loan exempt from a balloon payment? A. The maximum amount that may be charged to the borrow for loan costs and expenses is 5% of the loan or $490 to a maximum of $800. If the loan term is less than three years and the home is not occupied by the owner, the loan is exempt from balloon payments. B. The maximum amount that may be charged to the borrower for loan costs and expenses is 3% of the loan or $390 to a maximum of $700. If the loan term is less than three years and the home is not occupied by the owner, the loan is exempt from the balloon payments. C. The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan or $390 to a maximum of $700. If the loan term is less than three years and the home is not occupied by the owner, the loan is exempt from balloon payments. D. The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan or $390 to a maximum of $700. If the loan term is six or more years and the home is not occupied by the owner, the loan is exempt from balloon payments.

C. The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan or $390 to a maximum of $700. If the loan term is less than three years and the home is not occupied by the owner, the loan is exempt from balloon payments.

What needs to happen to an offer in order for it to become a contract? A. The offer must be delivered B. The offer must be received C. The offer must be accepted D. The counteroffer must be made

C. The offer must be accepted

The individual state's common laws of torts and contracts are unique because: A. They are the same as federal contract laws B. They can be enforced on a federal or state level C. The powers of these belong exclusively to the state D. They are considered universal

C. The powers of these belong exclusively to the state

At the close of escrow, AVC Escrow divides up funds proportionately between John and Sam. What is the process and what expenses does it include? A. The process of dividing funds between parties is the rescinding of escrow. It includes both expenses that are prepaid by the seller and paid after closing by the buyer. B. The process of dividing funds between parties is the termination of escrow. It includes the expenses that both parties prepaid to the escrow holder. C. The process of dividing funds between parties is proration. It includes both expenses that are prepaid by the seller and paid after closing by the buyer. D. The process of dividing funds between parties is auditing escrow. It includes expenses of both parties granted to the escrow holder to secure the real estate transaction.

C. The process of dividing funds between parties is proration. It includes both expenses that are prepaid by the seller and paid after closing by the buyer.

When a licensee realizes that an agency has been undisclosed to someone, the problem can be corrected with: A. A chain of title B. Power of attorney C. The proper disclosure D. A listing agreement

C. The proper disclosure

Olive Maccones dies without a will. She has three sons and seven grandchildren. She owned a substantial amount of property. What happens to the property? A. The property escheats back to the state. B. The property will be intestate and distributed by the state to the heirs. C. The property will be transferred according to the Statute of Descent and Distribution. D. Both A and C

C. The property will be transferred according to the Statute of Descent and Distribution.

Public notice must be given a bulk transfer of inventory in a business sale. What is this notice known as and where must the notice be published? A. The public notice is known as Notice of Intent of Transfer Inventory and must be published in a general circulation newspaper. B. The public notice is known as Notice of Intent to Sell and must be published in a trade newspaper. C. The public notice is known as Notice of Intent to Sell Bulk and must be published in a general circulation newspaper. D. The public notice is known as Notice of Intent to Sell Bulk and must be published in a trade newspaper.

C. The public notice is known as Notice of Intent to Sell Bulk and must be published in a general circulation newspaper.

Which of these is not an exemption to fair housing law? A. Senior housing for residents 62 or older B. A religious organization providing housing to members only C. The sale of a single-family home by an owner who owns five residences D. Rental of a unit in an owner-occupied four-family flat

C. The sale of a single-family home by an owner who owns five residences

Which of the following statements is true about Earthquake Hazards Disclosure? A. The seller and agent must supply the Homeowner's Guide to Earthquake Safety booklet and provide any information requested to the buyer regarding geological or seismic hazards. B. The seller's and agent's only responsibility is to supply the Homeowner's Guide to Earthquake Safety booklet. Nothing else pertaining to the property of any seismic or geological nature needs to be disclosed. C. The seller and agent must provide the Homeowner's Guide to Earthquake Safety booklet and also disclose that a property is in an earthquake zone. D. Both A and B

C. The seller and agent must provide the Homeowner's Guide to Earthquake Safety booklet and also disclose that a property is in an earthquake zone.

Under which circumstances may withholding be required of the buyer? A. The seller resides in another state. B. The buyer is not from California. C. The seller is a foreign person. D. The buyer is a foreign person.

C. The seller is a foreign person.

When there is no buyer representation agreement in place, who actually represents a seller in a real estate transaction? A. The licensee B. The listing broker C. The selling broker D. An escrow officer

C. The selling broker

Which of the following is not a prohibited escrow-related activity? A. An escrow agent cannot disburse a real estate broker's commission prior to closing of the escrow. B. Escrow licensees may not solicit or accept escrow instructions containing any blank to be filled in after signing or initialing. C. They may not permit, under any condition, any person to make any addition, deletion, or alteration of an escrow instruction. D. None of the above

C. They may not permit, under any condition, any person to make any addition, deletion, or alteration of an escrow instruction.

Ben want to buy a vacant lot. He will continue to live in his current home while he build a new home on the vacant lot. But before closing, the zoning regulations permit nightclubs to be built in the immediate area. What are Ben's options? A. They do not have any options and must go forward with the sales contract or face a possible suit for breach of contract. B. They have to proceed with the contract or face a suit. C. They may rescind the transaction based on the misrepresentation of the broker. D. Both A and B

C. They may rescind the transaction based on the misrepresentation of the broker.

How long must trust account records be kept? A. One year B. Two years C. Three years D. Five years

C. Three years

What paragraph in a CAR Residential Purchase Agreement states the contract represents the final terms of the agreement unless the parties make changes in writing? A. Assignment B. Selection of service providers C. Time of essence, entire contract, changes D. Expiration of offer

C. Time of essence, entire contract, changes

What will a title company issue that is an agreement by an insurer to issue a title policy? A. Assignment B. Novation C. Title insurance D. Earnest Money

C. Title insurance

Saffron and Serge have a mobile home in which they travel from city to city, town to town, selling pottery and playing music. Which of the following is true? A. By the definition of the California Health and Safety Code, this couple's mobile home is not a mobile home B. The mobile home can be sold by a real estate licensee as real property since it constitutes a dwelling unit C. To become real property, their mobile home must have a permanent foundation D. Saffron and Serge cannot legally occupy the mobile home without a Certificate of Occupancy

C. To become real property, their mobile home must have a permanent foundation.

What is the best way to end agency? A. Let the time limitations expire B. Cancellation C. To close the deal D. Rescission

C. To close the deal

Which of the following is not a goal of a real estate appraiser? A. To determine the market value of a property B. To determine the insurance value of a property C. To determine the marketability of a property D. To determine the tax value of a property

C. To determine the marketability of a property.

Dave and Nadine have decided that they want to become property investors. What is most likely their main motivation for investing? A. To plan for retirement B. To save on taxes C. To make money D. To have a second home to enjoy

C. To make money

What refers to a method for protecting land by transferring the "rights to develop" from one area and giving them to another? A. Land acquisition transfer B. Fee simple development C. Transfer of development rights D. Right of refusal

C. Transfer of development rights

Which deed is not a real deed? A. Trustee's Deed B. Land Patent C. Trust Deed D. Both A and B

C. Trust Deed - a written instrument that makes real property collateral for a loan: 1. A deed of trust involves three parties: a lender, a borrower, and a trustee 2. The lender gives the borrower money in exchange, the borrower gives the lender one or more promissory notes 3. As security for the promissory notes, the borrower transfers a real property interest to a third-party trustee 4. Should the borrower default on the terms of their loan, the trustee may take full control of the property to correct the borrower's default

Ensuring consumers are fully informed of all finance changes and aware of the true annual interest rate are requirements of which regulation? A. Article 7 B. RESPA C. Truth in Lending D. Uniform Settlement Statement

C. Truth in Lending - requires lenders to disclose to buyers the true cost of obtaining credit

Sacramento artist S.C. Heet has transferred a portion of her property, via a grant deed, to Cameron Dulle. However, this deed did not set forth in writing the two primary warranties Cameron should have on the property: first, that S. C. has not already transferred the title to another person; and, second, that the estate is free of any encumbrances, other than what has been disclosed to the grantor. Which of the following is true of this situation? A. Cameron must file a quiet title lawsuit in order to alter the transfer to include these warranties. B. Cameron must accept the situation as is, unless he can convince S.C. to alter the transfer willingly. C. Under a grant deed, the two warranties that S. C. has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present. D. None of the above

C. Under a grant deed, the two warranties that S. C. has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present.

What Act is a model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties? A. Residential Community Act B. Property Accommodations Act C. Uniform Residential Landlord and Tenant Act D. Tenancy Regulation Act

C. Uniform Residential Landlord and Tenant Act

Timothy has been hired by the estate of Tyler, who has deceased. Timothy has Power of Attorney and will be handling all the real estate affairs of the deceased estate. Which type of agent is Timothy? A. Special agent B. Single-agent C. Universal agent D. Agency coupled with an interest

C. Universal agent - the principal empowers the agent to perform any and all actions that may be legally delegated to an agency representative with the power of attorney

What 1959 Act provides protection from discrimination by all business establishments in California including housing and public accommodations? A. Housing and Community Development Act B. Rehabilitation Act C. Unruh Civil Rights Act D. Architectural Barriers Act

C. Unruh Civil Rights Act

What type of special title insurance policy is used when a property is being purchased through a land sales contract, purchase money mortgage, or purchase money trust deed? A. Leaseholder policy B. Early issue endorsement C. Vendee policy D. Oil and gas

C. Vendee policy

What type of lien secures a purchase money mortgage, a seller's loan to a buyer to finance the sale of property? A. Federal lien B. Involuntary lien C. Vendor's lien D. Judgment lien

C. Vendor's lien

What is a sole proprietorship? A. When two people own a business together B. When the business is a separate legal entity under state law C. When a single person owns the whole business D. When two people own the business but it has limited liability

C. When a single person owns the whole business

When a person feels like they have been discriminated against, how long does that person have to file a complaint with HUD? And how long with the state or federal court? A. With the HUD - four years, with the state or federal court - two years B. With the HUD - one year, with the state or federal court - four years C. With the HUD - one year, with the state or federal court - two years D. None of the above

C. With the HUD - one year, with the state or federal court - two years

What is the most common type of will used in California and is a formally written document usually prepared by an attorney? A. Holographic will B. Approved will C. Witnessed will D. Nuncupative will

C. Witnessed will

When an offer is fair and reasonable but it does not meet the sellers' asking price, what will happen next? A. Make no recommendations and let the sellers decide on their own. B. Recommend a counteroffer back to list price. C. Work toward acceptance. D. Recommend that the seller delay response to make the buyer nervous and then submit a counteroffer.

C. Work toward acceptance.

What authorizes an official such as the county sheriff to seize and sell foreclosed property? A. Right of redemption B. Right to sell C. Writ of execution D. Power of sale

C. Writ of execution

Patty is a licensed real estate assistant. Which of the following activities would she not be authorized to perform? A. Give out listing information over the phone. B. Conduct an open house on her own. C. Write and sign commission checks to salespersons. D. Explain the paragraphs in the purchase agreement to a buyer.

C. Write and sign commission checks to salespersons.

Joe rent an apartment in the Trade Winds Apartments. He moved in one month earlier and signed a one year lease. Today, Joe received a notice stating the complex has been sold and his lease will terminate at the end of thirty days. Is this a violation? A. No, if the complex has been sold, the new owners may do with the apartments as they wish. A thirty day notice to vacate is more than sufficient. B. Yes, it is a violation. Joe must have sixty days from the sales transaction to vacate his apartment and terminate the lease. C. Yes, it is a violation. Leases do not terminate because a property is sold. D. None of the above

C. Yes, it is a violation. Leases do not terminate because a property is sold.

Chandra and Fabian have heard that it is unnecessary to record a deed. Is this accurate? A. No, it is necessary and required to record a deed. The deed will not be valid unless it is signed, recorded, and notarized by a notary public. B. Yes, it is not necessary for a deed to be recorded. It is still valid and presumed to have been delivered without such recording. C. Yes, it is not necessary for a deed to be recorded. However, a recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record and convey the transfer of title. D. No, it is necessary and required to record a deed. If it is not recorded, the first to record the deed is considered the first in right to the property.

C. Yes, it is not necessary for a deed to be recorded. However, a recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record and convey the transfer of title.

Deanna have good credit, but she does not have a lot of cash for a down payment. She saw an ad for a new condo with no down payment. Should she look for any other information in the ad? A. No, there is no down payment required gives her the initial information to peak her interest and take a look at the condos. After taking a look at the property then she can fill in the details on the paperwork. B. Yes, she should make sure the amount or percentage of down payment is there, annual percentage rate and if an increase is possible, total finance charge, and total number of payments and due dates. C. Yes, she should make sure the amount or percentage of down payment is there, terms of repayment, annual percentage rate, and if an increase is possible, total finance charge and total number of payments and due dates. D. Yes, she should make sure the amount or percentage of down payment is there, terms of repayment, annual percentage rate, and if an increase is possible and total number of payments and due dates.

C. Yes, she should make sure the amount or percentage of down payment is there, terms of repayment, annual percentage rate and if an increase is possible, total finance charge, and total number of payments and due dates.

What term describes the unlawful misappropriation and use of a client's funds by a licensee?

Commingling

The maximum commission amount a mortgage loan broker can charge on a second mortgage loan of 3 years for $18,000 is what? A. $900.00 B. $1,500.00 C. $1,800.00 D. $2,700.00

D. $2,700.00

Jake is required to pay 4 points on the $80,000 loan. What will he have to pay the lender? A. $800 B. $1,600 C. $2,400 D. $3,200

D. $3,200: $80,000 x 0.04 (4 points) ( 1 point = 1%)

Nancy bought her home last year for $425,000. Her property taxes would be assessed at: A. $425 B. $1,500 C. $2,250 D. $4,250

D. $4,250 Property tax is 1% $425,000 x .01 = $4,250

The maximum liability of the Recovery Account in any one transaction is how much? A. $40,000.00 B. $10,000.00 C. $15,000.000 D. $50,000.00

D. $50,000.00

When HUD receives a complaint, how many days may pass to determine if there is reasonable cause to charge discrimination? A. 30 B. 60 C. 75 D. 100

D. 100

According to the law governing mortgage loan brokers, what is the maximum commission Broker Dan can charge for securing a $15,000 second mortgage for a period of 4 years? A. 5% B. 10% C. 12% D. 15%

D. 15%

What is the mill rate of .017? A. 0.0017 B. 1.07 C. 1.7 D. 17

D. 17

A person who believes they have been discriminated against has how long from the time of the alleged violation to file a suit in a state or federal court? A. 6 months B. 12 months C. 18 months D. 24 months

D. 24 months

Within how many days after delivery of a disclosure can the buyer cancel a CAR Residential Purchase Agreement Contract? A. 7 B. 5 C. 10 D. 3

D. 3

Within how many days is a creditor generally required to provide the Loan Estimate of the receipt of the consumer's loan application? A. 10 business days B. 30 business days C. 7 business days D. 3 business days

D. 3 business days

All California real estate licenses are issued for a period of: A. 2 years B. 6 years C. 8 years D. 4 years

D. 4 years

How long must buyers and brokers keep the documentation on a foreign sale? A. 2 years B. 3 years C. 4 years D. 5 years

D. 5 years

What informational handout should the listing agent provide the seller before as seller signs a listing agreement with the agent? A. A Real Estate Agent Agreement Form B. A Property Brokerage Form C. A Listing Assignment D. A Disclosure Regarding Real Estate Agency Relationships

D. A Disclosure Regarding Real Estate Agency Relationships

What must a seller or listing agent complete if there is actual knowledge of a property being in a natural hazard zone? A. Energy Conservation Disclosure B. Right to Home Inspection Disclosure C. Environmental Disclosure Statement D. A Natural Hazards Disclosure Statement

D. A Natural Hazards Disclosure Statement

What type of contract is one in which both parties promise to perform their respective parts of an agreement in exchange for performance by the other party? A. An express contract B. A unilateral contract C. An implied contract D. A bilateral contract

D. A bilateral contract

All real estate must be performed under the supervision of: A. A judge B. An attorney C. An express agency D. A broker

D. A broker

What type of clause refers to conditions attached to either an offer to purchase property or a counteroffer to purchase a property? A. A demising clause B. A release clause C. An earnest clause D. A contingency clause

D. A contingency clause

What type of property restriction places limits on how a property may be used? A. An encumbrance B. A lien C. An easement D. A deed restriction

D. A deed restriction

What action could a seller take if they cannot make a decision regarding an offer? A. An acceptance B. A rejection C. A counteroffer D. A failure to act

D. A failure to act

When a lawsuit or complaint is filed against a real estate agent who must determine whether or not an agency relationship has been created? A. A broker B. A judge C. A member of the Commission D. A hearing officer

D. A hearing officer

Which item would not usually be included in a presentation manual for buyers? A. Documents showing your affiliations with real estate organizations. B. Services offered to buyers. C. Your plan for finding the buyer a home. D. A list of former client references.

D. A list of former client references.

What does a developer submit for approval that contains surveyed plat maps and comprehensive building specifications? A. An inspection report B. A survey C. A building plan D. A plat of subdivision

D. A plat of subdivision

An Encumbrance is: A. A law that assure a property owner's rights B. A way of zoning residential property C. A type of estate D. A right of another use or take possession of a legal owner's property or limit the owner's rights

D. A right of another use or take possession of a legal owner's property or limit the owner's rights

What describes a report that is filled out by the landlord stating the condition of a property union, the tenants moving in and moving out of the property? A. Inspection report B. Housing report C. Residential property form D. A statement of property condition

D. A statement of property condition

What type of survey includes a topographic survey of a parcel of land which will be divided into two or more smaller tracts, lots or estate divisions? A. A location survey B. A construction survey C. A site survey D. A subdivision survey

D. A subdivision survey

Under which of the following circumstances would a homeowner take his microwave with him when he moves? A. If it is unattached, because it would still be considered the current homeowners personal property. B. If it is so dictated in the contract and all parties agree to this in writing. C. Under any circumstance. D. Either A or B

Either A or B: A. If it is unattached, because it would still be considered the current homeowner's personal property. B. If it is so dictated in the contract and all parties agree to this in writing.

What is the order actions for a foreclosure?

Equitable Right of Redemption, Foreclosure, and Statutory Redemption

What is a legally enforceable contract where an agent or owner of a property gives the exclusive right of possession for a specific amount of time in exchange for money?

Exclusive-right-to-sell listing

What does a growing equity mortgage do?

It allows quick repayment of the loan through accelerated payments.

Who typically presents an offer to the seller?

Listing agent

If a broker has compensated a non-licensed person for activities that he or she is not licensed for, the broker is guilty of:

Misdemeanor

Rente has a home loan for $150,000.00 at 7.5% interest for 30 years and her payment is $987.00 per month including principal and interest. What is the principal balance after Rente has made one payment on her loan? And what is it after two payments?

One Payment break down: 1. $150,000 x .075 (7.5%) = $11,250 annual interest amount 2. $11,250 / 12 = $937.50 monthly interest amount 3. $987.00 - $937.50 = $49.50 principal amount 4. $150,000.00 - $49.50 = $149,950.50 new balance amount Two Payment break down: 1. $149,950.50 x .075 (7.5%) = $11,246.29 annual interest amount 2. $11,246.29 / 12 = $937.19 monthly interest amount 3. $987.00 - $937.19 = $49.81 principal amount 4. $149,950.50 - $49.81 = $149,900.69

What is a type of company that sells securities specializing in real estate ventures, and requires a minimum of 100 investors?

Real estate investment trust (REIT)

Which types of loans is the payment allocated only to interest?

Straight loan

The Subdivision Map Act, the Subdivided Lands Law, and Land Projects all have a minimum number of lots required to meet requirements. Which of the following is correct? A. The Subdivision Map Act and the Subdivided Lands Law both require a minimum of five lots for regulation and to be defined as a subdivision. To qualify as a Land Project, there must be fifty or more vacant lots. B. The Subdivision Map Act regulates the division of five or more lots, the Subdivided Lands Law defines a subdivision as a division of land into two or more lots and a Land Project must have fifty or more vacant lots. C. The Subdivision Map Act regulates the division of two or more lots, the Subdivided Lands Law defines a subdivision as a division of land into five or more lots; and a Land Project must have fifty or more vacant lots. D. None of the above

The Subdivision Map Act regulates the division of two or more lots, the Subdivided Lands Law defines a subdivision as a division of land into five or more lots; and a Land Project must have fifty or more vacant lots.

What duties does an escrow agent have to all parties in a transaction?

The escrow holder makes sure that all parties to the transaction comply with the terms and conditions of the agreement as set forth in the escrow instructions: 1. They coordinate activities such as the lender, the title company, buyer, seller, and broker 2. Take care of the paperwork and also handles the fund disbursement at the property sale closing 3. The binding contract can be in any legal form including a deposit receipt, an agreement for sale, mutual escrow instructions of the buyer and the seller or an exchange agreement

What is not true about a reverse annuity mortgage?

The loan must be prepaid before the borrower's death.

Under Article 7, what is the maximum amount that may be charged to the borrower for loan costs and expenses?

The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan or $390.00 to a maximum of $700.00.

What describes items of a tenant's personal property that the tenant has temporarily affixed to a landlord's real property in order to conduct business? A. Datums B. Accessories C. Personal devices D. Trade fixtures

Trade fixtures

An unlicensed person engages in advertising that conveys the clear impression that he is a licensed real estate broker or employee of a corporation who knowingly advertises a false statement concerning any land or subdivision, what is true and what is false about this situation? A. The advertiser is subject to a fine. B. The advertiser can be sentenced to up to a year in prison. C. The person is breaking the law. D. The advertiser must prove he was grandfathered in as a licensee.

True: the advertiser is beaking the law, can subject to a fine, can be sentenced up to a year in prison False: the advertiser must prove he was grandfathered in as an licensee