Legal aspects of Real Estate

What is another term for a coterminous owner? a. Adjoining landowner b. Encroacher c. Tenant in common d. Trespasser

a. Adjoining landowner

Which of the following is not included in the definition of real property? a. Anything movable by law b. Anything immovable by law c. Anything appurtenant to the land d. Anything permanently attached to the land

a. Anything movable by law

If the boundary is a road, where is the boundary line situated? a. Center of the road b. Left side of the road c. Right side of the road d. Side nearest the largest parcel holder

a. Center of the road

Which type of CID is characterized by fee ownership of the dwelling unit with a tenant in common interest in a portion of real property? a. Condominium b. Community apartment project c. Cooperative d. Planned development

a. Condominium

The __________ administers the Real Estate Law in California. a. Department of Real Estate b. United States Supreme Court c. Federal District Courts d. Court of Appeals

a. Department of Real Estate

What is the intentional misrepresentation or concealment of a material fact to persuade someone to take action? a. Fraud b. Incompetence c. Slander d. Negligence

a. Fraud

Charlotte and Vanessa, both unmarried, enter into a purchase of real estate as joint tenants. Which of the following events would convert that into a tenancy in common? a. If either one conveys to herself as a tenant in common. b. The marriage of either one. c. The death of either one. d. If one of them sold her complete share to the other.

a. If either one conveys to herself as a tenant in common.

Landmarks and monuments are used to indicate a boundary of a parcel of land. Which of the following is a landmark? a. Large oak tree growing out of an outcrop of rock b. Wooden stake c. Iron post in the ground d. Any man-made object

a. Large oak tree growing out of an outcrop of rock

A real estate salesperson receives a complaint by a former client who is accusing her of misrepresentation of facts when purchasing a home. What could happen? a. The real estate salesperson ignores the complaint, resulting in a default judgment. b. The real estate salesperson issues a summons for the former client. c. The real estate salesperson responds with an answer to the complaint, resulting in a default judgment. d. The real estate salesperson ignores the complaint with no consequences

a. The real estate salesperson ignores the complaint, resulting in a default judgment.

A person with a salesperson license who wishes to perform the acts requiring a real estate license must: a. be employed by an active broker. b. be insured by a nationally-recognized insurance company. c. have a degree from an accredited 2-year college. d. all of the choices apply.

a. be employed by an active broker.

Many areas of the law, such as agency law, property law, and tort law, are governed extensively by _________ law. a. common b. federal c. ordinance d. statute

a. common

While the parties are domiciled in California, all property acquired by either spouse from earnings, profits, or other income is presumed to be __________ property. a. community b. quasi c. separate d. spousal

a. community

The characteristic of perpetual succession pertains to a: a. corporation b. general partnership. c. limited partnership. d. sole proprietorship.

a. corporation

A statutory nonemployee is considered self-employed and receives compensation for the: a. number of sales closed and commissions earned. b. hours involved in completing the task. c. days spent on the task. d. months spent completing the task.

a. number of sales closed and commissions earned.

Under the per stirpes distribution provided for under California law, the children: a. of a deceased person have the right to receive a portion of an estate by right of representation. b. of a deceased person are never allowed to receive a portion of an estate by "right of representation." c. of a predeceased spouse always have a claim for the property of an estate. d. follow per capita distribution; whereas grandchildren follow per stirpes .

a. of a deceased person have the right to receive a portion of an estate by right of representation.

Trade fixtures used in a trade or business are: a. personal property of the tenant. b. real property of the landlord. c. emblements of the tenant. d. fructus industriales.

a. personal property of the tenant.

An agent that makes an exaggerated statement of opinion regarding a property that he or she is listing for sale is an example of: a. puffing b. innocent misrepresentation. c. disclosure d. respondeat superior.

a. puffing

Under a __________ power of attorney, the agent has authorization to perform specific tasks. a. special b. general c. durable d. flexible

a. special

Most real estate transactions in California use a grant deed rather than a general warranty deed because: a. title insurance is almost universally used for real estate transactions in California. b. a grant deed allows for a non-judicial foreclosure in the event of non-payment. c. the use of a general warranty deed is illegal in California. d. a grant deed only gives up whatever present interests are held by the grantor.

a. title insurance is almost universally used for real estate transactions in California.

A(n) __________ cannot receive compensation for acts that require a real estate license. a. unlicensed person b. real estate broker c. real estate salesperson d. individual with a salesperson license

a. unlicensed person

A person with a real estate salesperson license has delinquent child support payments and is an obligor on the California Department of Child Support Services list. If the child support remains unpaid when the salesperson renews his or her license, what type of license will the DRE issue? a. 90-day Restricted License b. 150-day Temporary License c. 4-year Salesperson License d. Suspended License

b. 150-day Temporary License

Bill wants to allow his friend Robert to use his land occasionally to do such things as hunt or fish. Nevertheless, Bill also wants to be able to revoke Robert's use of the land at any time. What is the best way for him to accomplish this? a. Bill should give Robert an express easement. b. Bill should give Robert a license. c. Bill cannot accomplish this under California land law. d. Bill should let Robert acquire a prescriptive easement.

b. Bill should give Robert a license.

What is the name for the limitations usually imposed on property in newer subdivisions? a. AAAs b. CC&Rs c. Q&As d. R&Rs

b. CC&Rs

Which federal law prohibits race discrimination in the sale of commercial real estate? a. Fair Employment and Housing Act b. Civil Rights Act of 1866 c. Fair Housing Act d. Civil Rights Act of 1968

b. Civil Rights Act of 1866

What is one of the best defenses in a lawsuit? a. Appeals b. Documentation c. Licensing d. Precedent

b. Documentation

What is the commonality of accretion, erosion, and reliction? a. Gain of riparian land b. Gradual changes to land c. Loss of riparian land d. Sudden changes to land

b. Gradual changes to land

Which deed has only two implied warranties of title? a. Contract for deed b. Grant deed c. Quitclaim deed d. Warranty deed

b. Grant deed

Which of the following is not a recognized method of involuntary alienation in California? a. Non-judicial foreclosure b. Grant deed c. Tax deed d. Partition action

b. Grant deed

Which will does not require two witnesses? a. Codicil b. Holographic Will c. Statutory Form Will d. Witnessed Will

b. Holographic Will

In which way is an agency not terminated? a. Mutual agreement b. Incapacity of the listing salesperson c. Full performance d. Revocation by the client

b. Incapacity of the listing salesperson

The court case ______________ prohibits discrimination based on race by upholding the 1866 Civil Rights Act and the 13th Amendment to the U.S. Constitution, which prohibits slavery. a. Easton v. Strassburger b. Jones v. Mayer c. Ragin v. New York Times Co. d. Span v. the Avenel Corporation

b. Jones v. Mayer

Which of the following is not a federal fair housing law? a. Civil Rights Act of 1866 b. Jones v. Mayer c. Civil Rights Act of 1968 d. Fair Housing Amendments Act

b. Jones v. Mayer

Which of the following are among the mandatory elements of a general plan? a. Parks and recreation, noise, and water use b. Land use, housing, and public safety c. Open space, water use, and seismic safety d. Housing, public utilities, and roads

b. Land use, housing, and public safety

Which of the following is not an uninvited interference with a person's rights in real property? a. Encroachment b. License c. Nuisance d. Trespass

b. License

What are emblements? a. Anything that enhances the appearance of something without having any functional purpose b. Personal property of a tenant farmer, even prior to harvest c. Personal property of a tenant farmer, but only after harvest d. Real property owned by a tenant farmer

b. Personal property of a tenant farmer, even prior to harvest

Jack has sued Jill and obtained a money judgment against her. In order to obtain a lien on Jill's property, what should Jack do? a. Record an abstract of judgment in the county where Jill lives. b. Record an abstract of judgment in each county where Jill owns real property. c. Mail a copy of a notice of lien to Jill at her home address. d. Send a copy of the judgment to the Secretary of State in Sacramento.

b. Record an abstract of judgment in each county where Jill owns real property

Discrimination on the basis of which of the following characteristics is prohibited by California's Fair Employment and Housing Act, but not by the federal Fair Housing Act? a. Religion b. Sexual orientation c. Handicap d. National origin

b. Sexual orientation

What is the measurement of a tract of land with its boundaries, contents, and location relative to other property? a. Calculus b. Survey c. Land speculation d. Relationship analysis

b. Survey

When analyzing whether an agent relied on reasonable skill and competence in a real estate transaction, the courts use __________ to make this determination. a. loyalty b. a standard of care c. written examinations d. confidentiality

b. a standard of care

Proposed legislation that undergoes debate and is voted on by the House of Representatives and the Senate is called a: a. law. b. bill c. statute d. code

b. bill

The Civil Rights Act of 1968 expanded protected classes to include not only race, but also: a. color, handicap, sex, and national origin. b. color, national origin, religion, and sex. c. familial status, sex, handicap, and color. d. national origin, familial status, color, and religion.

b. color, national origin, religion, and sex.

The commonality of party walls, division fences, and line trees is that they are considered: a. common areas. b. common boundary improvements. c. common interest developments. d. common nuisances.

b. common boundary improvements.

The Comprehensive Environmental Response, Compensation, and Liability Act is also known as the Superfund because it: a. consists of three trust funds for the cleanup of properties. b. consists of two trust funds used for cleaning up properties. c. establishes one large account from property tax collections. d. establishes one large account funded by wealthy philanthropists.

b. consists of two trust funds used for cleaning up properties.

Discrimination in the purchasing or renting of real estate is regulated by __________ law. a. probate b. fair housing c. antitrust d. agency

b. fair housing

A federal agency that wants to undertake an activity on federally-owned property in California: a. can do so immediately without environmental review because of the Supremacy Clause of the Constitution. b. must comply with the procedures under the National Environmental Policy Act. c. must comply with the procedures under the California Environmental Quality Act. d. is exempt from complying with the procedures under the National Environmental Policy Act.

b. must comply with the procedures under the National Environmental Policy Act.

When a person gains a benefit from a previously unauthorized act of an agent and does not deny the authority to act after learning about it, this constitutes an agency created by: a. agreement b. ratification c. estoppel d. power of attorney.

b. ratification

A broker who represents only the buyer or seller in a real estate transaction is known as a __________ agent. a. simple b. single c. dual d. exclusive

b. single

Paul, Ted, and Donna purchase a parcel of real property. Because Paul contributed $10,000 to the purchase price while Ted and Donna each contributed $5,000 apiece, Paul holds a 50% share while Ted and Donna hold a 25% share apiece. Without knowing anything more, it is clear that they hold title as: a. joint tenants. b. tenants in common. c. tenants by the entirety. d. community property.

b. tenants in common.

What element does the agreed-boundary doctrine require? a. Uncertainty as to the boundary line b. An agreement between the owners as to the boundary line c. All of the choices apply d. Five years acceptance of the agreed boundary line

c. All of the choices apply

George conveys land "to Alan for the life of Catherine, and then to Bill for life, and then to David." What is Catherine's interest after George makes this conveyance: a. Catherine has a reversionary interest. b. Catherine has a fee simple subject to condition subsequent. c. Catherine has no interest. d. Catherine has a remainder.

c. Catherine has no interest.

Which of the following, taken together, constitute the Fair Housing Act? a. 1866 Civil Rights Act and Jones vs. Mayer b. Civil Rights Act of 1968 and 1866 Civil Rights Act c. Civil Rights Act of 1968 and the Fair Housing Amendments Act d. 1866 Civil Rights Act and the Thirteenth Amendment

c. Civil Rights Act of 1968 and the Fair Housing Amendments Act

Angela, Bruce, and Caroline buy some property and hold title in joint tenancy. Without Angela's or Caroline's permission, Bruce sells his share to David. What is the status of David's share after the sale? a. Angela, Caroline, and David are now all joint tenants. b. Bruce's sale to David is invalid because he failed to get permission from Angela and Caroline. c. David is a tenant in common as to the joint tenancy between Angela and Caroline. d. Angela, Caroline, and David are now all tenants in common.

c. David is a tenant in common as to the joint tenancy between Angela and Caroline.

Which of the following would be considered a tree encroachment? a. Excessive shade b. Falling leaves c. Intrusive roots d. Pine needles

c. Intrusive roots

What is the process of bringing a lawsuit against someone? a. Default b. Interrogatory c. Litigation d. Resolution

c. Litigation

Of the following voluntary and involuntary liens, which would have priority? Work started on a project on June 15, a deed of trust to 1st Bank was recorded on June 18, and another deed of trust was recorded to 2nd Bank later in the day on June 18. A mechanic's lien was recorded on September 28, but a notice of completion was recorded on Sept 1. a. Both deeds of trust recorded June 18 to 1st Bank and 2nd Bank b. Deed of trust recorded June 18 to 1st Bank c. Mechanic's lien recorded September 28 d. Notice of Completion recorded September 1

c. Mechanic's lien recorded September 28

Which statement is correct regarding a California landowner's right to sunlight and air circulation or to a view over adjoining lands? a. Every landowner has an absolute right to sunlight and air circulation or to a view over adjoining lands. b. Landowners have an absolute right to sunlight but not for a view over adjoining lands. c. No landowner has an absolute right to sunlight and air circulation or to a view over adjoining lands. d. The absolute right to sunlight and air circulation or to a view over adjoining lands only belongs to landowners of five or more acres.

c. No landowner has an absolute right to sunlight and air circulation or to a view over adjoining lands.

In which court case did the property owner successfully challenge the restrictive conditions on development imposed by the public agency? a. Easton v. Strassburger b. Euclid v. Ambler Realty Co. c. Nollan v. California Coastal Commission d. Zellers v. State of California

c. Nollan v. California Coastal Commission

The Real Estate Commissioner appoints a __________ for consultative purposes on issues involving the Department of Real Estate. a. local real estate attorney b. city official c. Real Estate Advisory Commission d. real estate consultation firm

c. Real Estate Advisory Commission

Which is not one of the four powers of government that affects private ownership of real estate? a. Eminent domain b. Escheat c. Replevin d. Taxation

c. Replevin

Martin purchased a parcel of land on which he intends to build a house. Which of the bundle of rights pertains to this activity? a. Right to encumber b. Right of transfer c. Right of use d. Right of possession

c. Right of use

Which of the following is the best way to describe a property tax lien? a. General, personal lien b. General, voluntary lien c. Specific, involuntary lien d. Specific, voluntary lien

c. Specific, involuntary lien

Which state law requires the preparation of a public report for all major subdivisions? a. Interstate Land Sales Full Disclosure Act b. State Housing Law c. Subdivided Lands Law d. Subdivision Map Act

c. Subdivided Lands Law

What type of leasehold estate may be ended by the unilateral decision of either party and has no written agreement between the landlord and the tenant? a. Periodic tenancy b. Tenancy at sufferance c. Tenancy at will d. Tenancy for years

c. Tenancy at will

Which of the following is true about a change in zoning that makes a use nonconforming? a. Such a zoning change would be illegal. b. California courts will always award the owner monetary compensation. c. The owner will be allowed to continue the use if it is not a nuisance. d. The owner of the property has an absolute right to expand the use.

c. The owner will be allowed to continue the use if it is not a nuisance.

Paula tells her rental agent, Tom, not to violate the fair housing laws. Tom nevertheless wrongfully discriminates against a prospective tenant because he is Hispanic. A court would likely determine that: a. Paula is liable for Tom's conduct even though Tom is not. b. Tom is liable for his conduct, but Paula is not. c. both Paula and Tom are liable for Tom's act of discrimination. d. neither Paula nor Tom are liable.

c. both Paula and Tom are liable for Tom's act of discrimination.

When a salesperson is discharged for a violation of any of the provisions of the Real Estate Law, the employing broker must immediately file a __________ with the Commissioner. a. registered complaint b. complaint notification c. certified written statement of the facts d. certified copy of salespersons license

c. certified written statement of the facts

A statement of fact that is required by law is known as: a. misrepresentation b. puffing c. disclosure d. obedience

c. disclosure

In a broker/associate agency relationship, the agreement that specifies the supervision of licensees, duties, and compensation is the __________ agreement. a. listing b. buyer representation c. employment d. dual agency

c. employment

Intentionally dumping refuse on another person's property is known as an: a. abatement b. encroachment c. indirect trespass. d. injunction

c. indirect trespass.

An applicant for a real estate license who lives outside the state of California: a. must complete a reciprocity application. b. may obtain a waiver from the Department of Real Estate. c. must meet the state's licensing requirements. d. may waive the licensing requirements.

c. must meet the state's licensing requirements.

Pat is an intern at a real estate brokerage while he studies for his license exam. Pat may perform all of the following tasks, except: a. answer and route phone calls throughout the company. b. deliver funds and documents to the escrow company. c. negotiate a month-to-month lease for a single-family home. d. proofread newspaper and print advertising for a salesperson.

c. negotiate a month-to-month lease for a single-family home.

A creditor with a recorded abstract of judgment can force the sale of a homestead property to satisfy a money judgment: a. only if the equity is less than the homestead exemption. b. only within one year of obtaining the judgment. c. only if the equity exceeds the homestead exemption. d. only when the property is vacant.

c. only if the equity exceeds the homestead exemption.

The following legal description was found in a deed: "Lot 17, Block 5, Citrus Acres, County of Orange, State of California." This is an example of a(n) __________ description. a. metes and bounds b. rectangular survey c. recorded plat d. informal reference

c. recorded plat

Bill has an auto parts business on property zoned commercial. The city's zoning for commercial properties allows the sale of auto parts as a matter of right, but states that the city has authority to approve or deny the repair of automobiles on the same premises. If Bill wants to start an auto repair business on the same lot, he must: a. have the property re-zoned. b. obtain a variance. c. seek a conditional use permit. d. sue the city, arguing that the restriction amounts to a "taking."

c. seek a conditional use permit.

Ownership in severalty would most likely involve: a. a fee simple defeasible estate. b. ownership with other parties. c. sole ownership. d. tenancy in common.

c. sole ownership.

Recording protects __________ against prior unrecorded interests. a. appointed administrators b. former vendors c. subsequent bona fide purchasers d. unauthorized trespassers

c. subsequent bona fide purchasers

The rights to natural resources, such as minerals, oil, and gas, are part of the: a. air rights. b. bundle of rights. c. subsurface rights. d. surface rights.

c. subsurface rights.

What are the legal remedies to obtain relief from a private or public nuisance? a. Abatement b. Injunction c. Money damages d. All of the choices apply

d. All of the choices apply

Which of the following could defeat an adverse possessor? a. Giving the adverse possessor a license b. Fencing the property and keeping gates locked c. Posting a notice at 200-foot intervals along the perimeter pursuant to Civil Code Section 1008 d. All of the choices apply

d. All of the choices apply

Which of the following is a type of legal remedy? a. Compensatory damages b. Punitive damages c. Nominal damages d. All of the choices apply

d. All of the choices apply

Which of the following is a type of agency law? a. Common law agency b. Statutory law agency c. Contractual agency d. Both common law agency and statutory law agency

d. Both common law agency and statutory law agency

The payment of non-collectable court judgments against licensees who committed fraud, misrepresentation, deceit, or conversion of trust funds in a transaction, is assured by the: a. Commissioner's Consumer Account. b. National Real Estate Public Fund. c. Real Estate Regulatory Fund. d. Consumer Recovery Account.

d. Consumer Recovery Account

The formation, operation, and dissolution of partnerships, corporations, limited liability companies, and limited partnerships in the State of California is governed by the California: a. Administrative Code. b. Business and Professions Code. c. Civil Code. d. Corporations Code.

d. Corporations Code.

According to California policy, what is the highest use of water? a. Recreation b. Irrigation c. Fire protection d. Domestic purposes

d. Domestic purposes

What is the legal process to determine creditors' claims and beneficiaries' interests in an estate upon the owner's death? a. Bankruptcy b. Foreclosure c. Inverse condemnation d. Probate

d. Probate

Who owns navigable non-tidal waters in California? a. Adjacent landowners b. Federal government c. Private landowners d. State of California

d. State of California

Why did Congress rely on the Commerce Clause instead of the Fourteenth Amendment as the basis for the Fair Housing Act? a. Real estate discrimination is not specifically mentioned in the Fourteenth Amendment. b. The Fourteenth Amendment was not in effect when Congress passed the Fair Housing Act. c. The Fourteenth Amendment was repealed by the Twenty-Second Amendment. d. The Fourteenth Amendment has a state action requirement, which means it generally cannot be the basis for legislation against private acts of discrimination.

d. The Fourteenth Amendment has a state action requirement, which means it generally cannot be the basis for legislation against private acts of discrimination.

Which is not one of the tests used to determine whether property is a fixture or personal property? a. Adaptation of the property b. Intent of the parties for the particular property c. Property's method of attachment d. Time of the attachment

d. Time of the attachment

Which transfer of ownership would not be excluded from property tax reappraisal? a. Transfers between grandparents to grandchildren b. Transfers between parents and children c. Transfers between spouses d. Transfers between unrelated buyers and sellers

d. Transfers between unrelated buyers and sellers

Which of the "four unities" is the only one that a joint tenancy and a tenancy in common both share? a. Unity of time b. Unity of title c. Unity of interest d. Unity of possession

d. Unity of possession

Henry and Wanda are married and hold the property as husband and wife. Unbeknownst to Wanda, Henry leaves "all my property" to Sheryl in his will. When Henry dies, what will happen to the property? a. Sheryl and Wanda will become joint tenants. b. Wanda will get ½ as community property; Sheryl will get half of the remaining ½, so that she will end up with a ¼ interest, and Wanda a ¾ interest. c. Wanda will own all of the property. d. Wanda and Sheryl will each own a ½ interest as tenants in common.

d. Wanda and Sheryl will each own a ½ interest as tenants in common.

Art wants to transfer his interest in the real property that he owns to Betty. The transaction is handled through a real estate broker and an escrow officer working for the title insurance company prepares the majority of paperwork. The escrow officer drafts the deed and has Art sign it and takes care of getting the payment for the purchase from Betty's loan to Art. At the conclusion of the transaction, Art's deed to Betty is recorded. Has Art's deed conveyed his interest to Betty? a. Yes, but only if it can be proven later that Art and Betty were in the room together at some point during the transaction. b. No, because Art never delivered the deed to Betty. c. No, because Betty never formally accepted the deed from Art. d. Yes, because recording the deed at the conclusion of the transaction created a presumption that the deed was both delivered and accepted.

d. Yes, because recording the deed at the conclusion of the transaction created a presumption that the deed was both delivered and accepted.

A security instrument is best defined as: a. a contractual provision entitling a broker to his or her fee even after a listing agreement has expired. b. the means by which the government collects revenue against real property for a local improvement, such as a road or sewer plant. c. a written agreement in which a borrower agrees to repay a debt. d. a document that is given by the borrower to hypothecate (pledge) the property to the lender as collateral for the loan.

d. a document that is given by the borrower to hypothecate (pledge) the property to the lender as collateral for the loan.

A real estate broker license allows the broker to: a. employ other brokers. b. employ salespeople. c. perform acts that require a real estate license. d. all of the choices apply.

d. all of the choices apply.

A real estate licensee is accused of violating the law. After the hearing, an administrative law judge gave recommendations to the Commissioner for discipline. The Commissioner may: a. accept the penalty. b. reduce the penalty. c. reject the penalty. d. all of the choices apply.

d. all of the choices apply.

Under the Fair Housing Act, lenders are prohibited from: a. refusing to make a mortgage loan. b. imposing different terms or conditions on a loan. c. setting different terms or conditions for purchasing a loan. d. all of the choices apply.

d. all of the choices apply.

A private entity that owns property that is specifically designed to provide products or services to the public, is a: a. citizen suit provision. b. conciliation. c. state action requirement. d. public accommodation.

d. public accommodation.

Patrick wants to change the use of a property he owns, so he will have to go through the CEQA process. The city planning department's staff report for his project concludes that there will be no environmental impacts from the changed use. Patrick will probably: a. not be permitted to change the use of his property. b. be required to provide an environmental impact report before he can proceed. c. have to sell the property because the city will deny the changed use. d. receive a negative declaration for the changed use and proceed with the project.

d. receive a negative declaration for the changed use and proceed with the project.

Andy has a parcel with an elevation that is substantially lower than most of the neighboring properties. In order to have the same view as neighboring parcels, a house built on his parcel will have to be 18 feet higher than the height limit for the zoning district. If he is to build such a house, he will need: a. an amendment to the zoning district. b. to have the property re-zoned. c. to obtain a conditional use permit. d. to obtain a variance.

d. to obtain a variance.

If a licensee causes damage due to negligence, it is considered a(n): a. criminal offense. b. fraudulent act. c. intentional tort. d. unintentional tort.

d. unintentional tort.