77 questions prep agent

An easement is an example of: A) A non-possessory right B) Severance C) An appurtenance D) Reversion

A) A non-possessory right

If you are given a formal written notice that a default has occurred, this is called: A) A notice of default B) Intent to levy C) None of these D) A notice of court action

A) A notice of default

A lease that is often based on the Consumer Price Index and that allows for periodic increases in the rent is called a: A) Graduated lease B) Gross lease C) Escalator lease D) Stepped lease

A) Graduated lease

A reverse annuity mortgage is also called a: A) Home equity conversion mortgage B) Home mortgage reversal C) Cash out mortgage D) Equity reverse annuity

A) Home equity conversion mortgage

Which of the following is not an encumbrance? A) Homestead B) Lien C) Encroachment D) Easement

A) Homestead

If a lease is to be recorded, who must acknowledge it? A) The lessor B) The lessee C) The owner D) None of the above

A) The lessor

Which of the following terms best describes the parties to a purchase-and-sales contract? A) vendor-vendee B) optioner-optionee C) mortgagee-mortgagor D) grantor-grantee

A) vendor-vendee

The word "potable" refers to: A) water. B) easement rights. C) the rights of parties in possession. D) mineral and oil rights.

A) water.

This is issued to the holder of a certificate of sale after the one year redemption period has passed under the terms of the mortgage foreclosure proceeding. A) A sheriff's notice B) A writ of judgment C) A writ of execution D) A sheriff's deed

D) A sheriff's deed

The company that specializes in examining and insuring titles to real estate is called: A) None of these B) A transaction coordinator C) An insurance company D) A title company

D) A title company

A limit on the amount that payments can increase or decrease during any one adjustment period is called: A) Fixed rate B) A terms lock C) A rate lock D) A period rate cap

D) A period rate cap

If a minority person is looking to purchase a home and the lender refuses to lend to them based on their creditworthiness, this is: A) Racial Profiling B) An example of blockbusting C) Illegal D) Legal

D) Legal

The most profitable way in which a particular property can be utilized is known as its: A) principle of progression. B) increasing return. C) plottage value. D) highest and best use.

D) highest and best use.

The largest loans would most likely be made by a(n): A) mutual savings bank. B) commercial bank. C) federal bank. D) insurance company.

D) insurance company.

A ballon payment is usually associated with a: A) package mortgage B) blanket mortgage C) variable mortgage that varies with the cost of living index D) large payment during the term or at the end of the payment schedule

D) large payment during the term or at the end of the payment schedule

Although the term "purchase money mortgage" applies to any loan that finances the purchase of real estate, it is commonly used to refer specifically to a: A) loan on property already owned that is used to finance the purchase of a second property B) loan that is packaged for sale on the secondary market. C) refinance loan. D) loan taken back as part of the sales price by the seller.

D) loan taken back as part of the sales price by the seller.

The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the: A) amortization ratio B) debt to equity ratio C) capital use ratio D) loan to value ratio

D) loan to value ratio

A fee simple estate is most likely to be a: A) freehold estate. B) leasehold. C) less-than-freehold estate. D) maximum interest obtainable.

D) maximum interest obtainable.

When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n) A) deficiency judgment. B) lis pendens. C) estoppel certificate. D) mechanic's lien.

D) mechanic's lien.

Acquiring permissive use of another's land would be: A) adverse possession. B) prescription. C) both (a) and (b) D) neither (a) nor (b)

D) neither (a) nor (b)

Which of the following instruments would contain the loan amount, interest rate, term of the loan, and monthly payments? A) deed B) mortgage C) lease D) note

D) note

The difference between a freehold and leasehold estate is A) the right of survivorship for the tenant B) who is obligated to pay the property expenses C) ownership versus the right to purchase D) ownership versus possession

D) ownership versus possession

The kind of deed given by the government on the original transfer of government land to the original grantee is called: A) original deed. B) State Controller's deed. C) warranty deed. D) patent.

D) patent.

Which of the following is not necessary element in the formation of a contract: A) offer B) acceptance C) consideration D) performance

D) performance

A real estate broker was responsible for a chain of events that resulted in the sale of one of his client's properties. The broker is legally called the A) responsible party B) compensable cause C) initiating factor D) procuring cause

D) procuring cause

A bilateral contract is one that is a(n): A) promise for performance. B) promise for an act. C) act for a promise. D) promise for a promise.

D) promise for a promise.

A standard policy insures against: A) encroachments. B) claims of persons in possession. C) prescriptive easements. D) recorded deed that was not properly delivered and accepted.

D) recorded deed that was not properly delivered and accepted.

The Seddon family purchased the largest and most expensive house in a new subdivision. Five years later, when they were ready to move, they discovered that the value of their home had gone up proportionately less than the other houses in the neighborhood. This phenomenon is an example of the principle of: A) substitution B) diminishing return C) change D) regression

D) regression

CC&Rs relates to: A) mechanic's liens. B) Commissioner's regulations. C) easements. D) restrictions.

D) restrictions.

A major difference between an easement and a license is that a license is: A) assignable. B) with indefinite duration. C) written. D) revocable.

D) revocable.

Title to schools, parks, libraries, and other publicly owned property is held as: A) joint tenants. B) community property. C) tenants in common. D) severalty.

D) severalty.

A tenant's lease has expired, but the tenant has not vacated the premises or negotiated a renewal of the lease. The landlord has declared that the tenant is not to remain in the building. This situation is an example of A) an estate for years. B) an estate from year to year. C) tenancy at will. D) tenancy at sufferance.

D) tenancy at sufferance.

To remove a "financing statement" from the public records you would record a: A) satisfaction statement. B) reconveyance statement. C) financial statement release. D) termination statement.

D) termination statement.

The factor exerting the greatest influence on interest rates pertaining to first trust deed loans is: A) demand. B) the cost for arranging state bond issues. C) the economic condition of the country. D) the availability of loan funds.

D) the availability of loan funds.

The Soldiers and Sailors Civil Relief Act is of the greatest interest to: A) soldiers and sailors during war. B) land developers. C) real estate licensees. D) the principal to a deed of trust.

D) the principal to a deed of trust.

Which is NOT an example of a buyer's debit on a closing statement? A) a loan origination fee B) a credit report C) an appraisal fee D) the tenants' security deposit

D) the tenants' security deposit

The primary purpose of a deed is to: A) give constructive notice B) prevent adverse possession C) prove ownership D) transfer title rights

D) transfer title rights

A promise in exchange for a promise, supported by consideration, is the basis for a: A) multilateral contract B) unilateral contract C) offer to lease D) valid, binding, bilateral, contract

D) valid, binding, bilateral, contract

In dealing with a sale with a land contract subject to a blanket encumbrance containing a release clause, funds are deposited in an account approved by the Real Estate Commissioner for the protection of: A) beneficiary. B) trustor. C) vendor. D) vendee.

D) vendee.

CLTA and ALTA policies of title insurance holders are not insured against: A) chain of title. B) forgery. C) parties in possession. D) zoning limitations.

D) zoning limitations.

A man who needed money to purchase a new car had a real estate broker arrange a fully amortized 3-year loan using his home as security. The note was for $2,400 calling for payments of $77.00 per month, including 10% interest. If the borrower received $1,980 cash proceeds from the loan after deducting all expenses, the total amount of principal that must be paid to the lender on the note is: A) $2,400. B) $3,120. C) $2,772. D) $1,980.

A) $2,400.

A non-conforming loan is a loan amount over: A) $647,200 B) $453,100 C) $548,250 D) $484,350

A) $647,200

A rectangular parcel of land has an area of 770 square yards. It has a 55-foot frontage. How deep is the lot? A) 126 feet B) 114 feet C) 4,705 feet D) 6,930 yards

A) 126 feet

For speculative purposes, an owner of land divided it into eight parcels in 1991. He sold two lots in 1991, two lots in 1992, took an option to purchase on one lot in 1993, and sold the remaining lots in 1994. When was he legally classified as a subdivider? A) 1991 B) 1992 C) 1993, if the option were exercised D) 1994, if the option were not exercised

A) 1991

A receipt for a Preliminary Public Report must be kept by the subdivider for: A) 3 years. B) 2 years. C) 5 years. D) none of the above

A) 3 years.

If a property is leveraged 70%, what percentage is the owner's equity? A) 30% B) No equity C) 20% D) 10%

A) 30%

Ben is a property owner who is selling. He has made an arrangement with Jerry to provide financing in combination with an assumable mortgage. What type of agreement has been made? A) A seller carry-back B) An exclusive listing with financing C) A transfer of title D) A lease option

A) A seller carry-back

A first trust deed held by ABC Insurance Company was assumed by the buyer. The seller was agreeable to taking back a note secured by a second trust deed. At first he wanted the note to be paid off in 2 years. The buyer refused but later agreed to a provision that the note become due and payable in the event the property is sold, conveyed or alienated. Which of the following clauses is most applicable? A) Acceleration B) Subordination C) Safety D) Appurtenant

A) Acceleration

If one is transferring or conveying title to real property, it is called: A) Alienation B) Alluvation C) Succession D) Accretion

A) Alienation

Which of these statements is false regarding the statute of frauds? A) All of these B) Actions based on contracts must be brought within a certain time after the occurrence of a breach C) Actions for specific performance cannot succeed for personal services D) All contracts must have sufficient consideration

A) All of these

A purchaser is qualified to obtain an FHA loan for his new home. Which of the following would he apply to? A) An FHA lender B) Freddie MAC C) Fannie Mae D) The FHA

A) An FHA lender

Which of the following answers is incorrect in regard to a metes and bounds description? A) An advantage of a metes and bounds description is its simplicity B) A metes and bounds description is a good method for describing irregular shaped parcels C) When there is not a recorded map of the property, metes and bounds is a good method to describe it D) If there is a recorded map of the property, a metes and bounds description is still perfectly legal

A) An advantage of a metes and bounds description is its simplicity

A table or chart that shows how much of each mortgage payment that is applied to interest and how much is applied to the principal is called: A) An amortization schedule B) An interest to principal chart C) A mortgage division chart D) A loan expiration schedule

A) An amortization schedule

If an occupant is legally expelled from real property, this is known as: A) An eviction B) An expulsion C) An evocation D) An ejection

A) An eviction

A credit repository is: A) An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals being considered for credit B) A credit bureau C) An organization that issues a credit score D) Lending institution

A) An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals being considered for credit

If a mortgage note was executed and a new loan was established on the same property at a higher interest rate, the prepayment penalty could be: A) Any of these B) Charged regardless of any interest rates C) Waived due to recouping losses through a higher interest rate D) Waived because of the understanding nature of the lender

A) Any of these

If a person is given power of attorney, it allows a designated person to act on behalf of another and is known as: A) Attorney in Fact B) Attorney at Law C) Principle Fiduciary D) Principle Register

A) Attorney in Fact

If an agent makes claims to homeowners in a certain geographical location that their property values would decrease if certain ethnic groups were to move into the area, this could be an example of: A) Blockbusting B) Coercion C) Negotiation D) Steering

A) Blockbusting

A series of ordinances enacted by a state or local governmental entity, establishing minimum requirements that must be met in the construction and maintenance of buildings is best known as: A) Building Codes B) County Building Laws C) Eminent Domain D) Zoning

A) Building Codes

Mrs. Cherry is filing for bankruptcy. She is filing the most common type of bankruptcy. What type of bankruptcy is Mrs. Cherry filing? A) Chapter 7 No Asset B) Chapter 11 C) Chapter 11 No Asset D) Chapter 7

A) Chapter 7 No Asset

In California, the knowledge and consent of both parties (the buyer and the seller) must be obtained prior to the sale in order for the broker or agent to: A) Collect a commission from both parties B) Assign a quitclaim deed C) Transfer ownership D) None of these

A) Collect a commission from both parties

In the formation of contracts, "valuable," "good," "sufficient," and "adequate" are terms most closely associated with which of the following? A) Consideration B) Bilateral contracts C) Compensation D) Performance

A) Consideration

Prepaid rents in escrow are typically: A) Credited to the vendee B) Debited from the buyer C) Credited to the vendor D) Debited from the vendee

A) Credited to the vendee

How is "desk cost" generally determined in a real estate office? A) Determine the total operating expenses of the office and divide by the number of desks B) Determine how much each desk cost to purchase and divide by number of agents C) Determine a "fair share" cost for each desk and assign to each agent D) Determine the total profit of each agent and divide by number of desks

A) Determine the total operating expenses of the office and divide by the number of desks

Generally, construction onto the property of another, like a wall fence, building, etc. is known as what? A) Encroachment B) Easement appurtenant C) Situs D) Estoppel

A) Encroachment

Discrimination is prohibited in lending practices under which of these acts? A) Equal credit opportunity act (ECOA) B) Real estate settlement procedures act (RESPA) C) Fannie Mae (FNMA) D) Truth in Lending Act (TILA)

A) Equal credit opportunity act (ECOA)

If a lender is issuing an FHA or VA loan, where does the funding originate? A) From the lender B) Fannie Mae C) Freddie Mac D) Ginnie Mae

A) From the lender

If a lender is issuing an FHA or VA loan, where does the funding originate? A) From the lender B) Ginnie Mae C) Fannie Mae D) Freddie Mac

A) From the lender

If Jonathan lists his property with Julian, a broker in his hometown, and subsequently is killed in a tragic car accident before the listing is sold or expired, what happens with the listing? A) It is terminated B) It still belongs to the broker C) As soon as a buyer is found, it becomes active again D) It becomes binding to any heirs for the duration of the remaining contract period

A) It is terminated

In the language of real estate, which of the following terms does not belong with the others? A) Joint tenancy B) Hypothecate C) Subordination D) Second trust deed

A) Joint tenancy

Under California law, if a partnership were to take title to real property by the name of a third party as a trustee for the partnership, this would be considered: A) Legal B) None of these C) Illegal D) Fraud

A) Legal

Value of a property is most directly influenced by: A) Location B) Shape C) Size D) Zoning

A) Location

When Trent, a lender, has guaranteed Julie, a borrower, a specific interest rate for a specific time, Trent has offered Julie the: A) Lock-In period B) Freeze period C) Guaranteed rate D) Grace period

A) Lock-In period

Which term is best related to lender-borrower? A) Mortgagee-mortgagor B) Optionor-optionee C) Seller-buyer D) Grantor-grantee

A) Mortgagee-mortgagor

The borrower in the mortgage agreement is called the: A) Mortgagor B) Mortgagee C) Dealer D) Borrowee

A) Mortgagor

Earthquake zones, flood hazard areas, and fire hazard areas are all examples of: A) Natural Hazard Areas B) Natural Disaster Hazard Areas C) Natural Disaster Zones D) Natural Disaster Hazard Zones

A) Natural Hazard Areas

A sub-divider and developer purchased considerable acreage and now plans to construct a track of 40 homes. In arranging the financing for the new construction, the lender has agreed to advance part of the funds immediately and will release a set amount of additional money as each home is completed. The funds that will be forthcoming as construction progress are known as: A) Obligatory advances B) Reconveyance funds C) Release monies D) Open and mortgage payments

A) Obligatory advances

A bill of sale is used to transfer the ownership of what? A) Personal property B) Real property C) Fixtures D) Appurtenances

A) Personal property

When an appraiser is determining a building's effective age, they are estimating the building's: A) Physical condition B) State of repair C) Actual age D) Habitability

A) Physical condition

The government's right to make laws and regulations for the general welfare of the public is known as: A) Police power B) Eminent domain C) The bundle of rights D) Escheat

A) Police Power

In California, Heather is a real estate agent trying to sell a house for George. George specifically told her he does not want to even hear about any offers less than $440,000. Later, Heather receives an offer on the property for $400,000. What should Heather do? A) Present the offer B) Accept the offer C) Reject the offer D) Make a counter offer

A) Present the offer

Because a lease constitutes an executory bilateral contract between the landlord and the tenant, this contractual aspect of a lease creates: A) Privity of contract between landlord and tenant B) Privity of reversion between landlord and tenant C) Privity of contract between tenant and lessee D) Privity of contract between landlord and lessor

A) Privity of contract between landlord and tenant

Airways above a property are: A) Public domain B) Owned by the property owner C) Owned by the owner up to 1000 feet D) Owned by the owner up to 500 feet

A) Public domain

The down payment on a property is: A) Purchase price minus loan amount B) Twenty percent of purchase price C) Twenty percent of loan amount D) None of these

A) Purchase price minus loan amount

What happens when an agent/broker misrepresents the principal? A) Rescission or civil court action B) Apologies but no legal action C) Criminal penalties D) None of these

A) Rescission or civil court action

The term "riparian rights" refers to which of the following? A) Rights of the owner of property bordering a stream or river B) Rights of the owner of property bordering a forest C) Rights of the owner of property bordering a lake D) Rights of the owner of property bordering a meadow

A) Rights of the owner of property bordering a stream or river

Which of these would have the most percentage of their funds invested in real estate mortgages? A) Savings and loan associations B) Commercial banks C) Life insurance companies D) Mutual savings banks

A) Savings and loan associations

When Julie asks her broker Dave for a very specific type of property and Dave later informs her that there is a lack of abundance of that type of property, Dave is referring to the concept of: A) Scarcity B) Market saturation C) Supply and demand D) Market value

A) Scarcity

If a person is referring to both the legal location of something and to the preference for a particular location, they are referring to: A) Situs B) De novo C) In forma pauperis D) Ex parte

A) Situs

When an appraiser is appraising a property he usually considers all of the following EXCEPT: A) The assessed value B) The property rights to be valued C) A definition of value D) The property identification

A) The assessed value

Who is entitled to a commission when a property is not listed at the time of the offer and has been shown to a buyer by more than one broker? A) The broker who is the procuring cause B) Whoever listed the property prior to the sale C) No one D) All brokers who showed the property

A) The broker who is the procuring cause

A buyer produces a cash amount for earnest money deposit. The agent informs the seller after the seller has accepted the offer. In this case, it would not be valid because: A) The form of earnest money deposit must be disclosed to the seller before acceptance of the offer B) There was no transaction record because the earnest money was in cash C) None of these D) The agent cannot accept a cash amount for earnest money deposit

A) The form of earnest money deposit must be disclosed to the seller before acceptance of the offer

Method of attachment, adaptability of the attached item, relationship of the parties, intent of the person attaching the item, and agreement between parties are: A) The standard five tests used by courts for a fixture B) Parts of a fixture C) All methods for determining ownership of a fixture D) None of these

A) The standard five tests used by courts for a fixture

When a loan is made on real property, the loan depends on what security? A) The value of the property being purchased B) The amount of the earnest money C) The value of the appreciation over time D) The borrower's personal credit history and character

A) The value of the property being purchased

When a lender uses another party to completely originate, process, underwrite, close, fund, or package the mortgages it plans to deliver to the secondary mortgage market, this is known as: A) Third-party origination B) Outside origination C) Partner origination D) Secondary origination

A) Third-party origination

Which of the following falls under the term "real property"? A) Trees B) Fixtures C) Crops D) Furniture

A) Trees

A federal law requiring lenders to fully disclose in writing the terms and conditions of a mortgage, including the annual percentage rate and other charges, is called: A) Truth-In-Lending B) Transparency of Disclosure C) None of these D) Veritas of Oblige

A) Truth-In-Lending

When only one party gives a promise in a contract while the other does not, this type of contract is known as a: A) Unilateral contract B) None of these C) Contract deferment D) One sided contract

A) Unilateral contract

In California, which of the following statements is true of a tenancy in common? A) Unless another form of ownership is described in the deed, co-owners who are not spouses of each other are presumed to be tenants in common. B) Sale of one of the interests will end the tenancy in common. C) Destruction of the property terminates the co-ownership. D) When one of the tenants dies, his interest is spread among the survivors.

A) Unless another form of ownership is described in the deed, co-owners who are not spouses of each other are presumed to be tenants in common.

In California, which of the following statements is true of a tenancy in common? A) Unless another form of ownership is described in the deed, co-owners who are not spouses of each other are presumed to be tenants in common. B) When one of the tenants dies, his interest is spread among the survivors. C) Sale of one of the interests will end the tenancy in common. D) Destruction of the property terminates the co-ownership.

A) Unless another form of ownership is described in the deed, co-owners who are not spouses of each other are presumed to be tenants in common.

Jones put his house on the market. Brown made a written purchase offer that jones accepted in writing. When is the contract valid? A) When Brown is notified of the acceptance B) When the broker gets his fee C) As soon as the signatures are notarized D) Immediately

A) When Brown is notified of the acceptance

Lisa Capshaw owns an apartment building that was constructed in 1965. According to federal law, which of the following must be attached to the leases Lisa prepares for prospective tenants? A) a lead-based paint disclosure statement B) any known instances of groundwater contamination in the building's water supply C) a report of the building's radon level D) an illustration of the building's location relative to electromagnetic fields (EMFs)

A) a lead-based paint disclosure statement

All of the following are examples of a general lien EXCEPT: A) a mortgage lien. B) federal income tax. C) state income tax. D) judgment.

A) a mortgage lien.

Buyers who sign a document indicating the price and terms on which they are ready to purchase described property have created: A) a purchase offer. B) a contract of sale. C) a listing contract. D) an option.

A) a purchase offer.

Which activity requires a real estate license? A) a service that, for a fee, matches individuals who want to buy and sell properties B) a homeowner selling their own home C) a resident manager who collects rent on behalf of a building owner D) an executor selling a decedent's building

A) a service that, for a fee, matches individuals who want to buy and sell properties

Economic obsolescence is a property is generally: A) a type of depreciation that is incurable B) a result of poor maintenance C) due to architectural faults D) caused by the aging process

A) a type of depreciation that is incurable

The removal of land when a stream suddenly changes its channel is A) avulsion B) accretion C) adverse possession D) breach

A) avulsion

A listing broker had a signed sales contract on a house. The broker then noticed a crumbling wall in the basement. The broker should inform: A) both the buyer and the seller B) the seller only C) the buyer, seller, and mortgage company d) the buyer only

A) both the buyer and the seller

When a buyer withdraws his offer to purchase real property prior to acceptance by the seller, the: A) buyer is entitled to a refund of the earnest money deposit B) seller may sue the buyer for specific performance, and will probably win the suit C) seller is entitled to one-half of the earnest money deposit D) broker may sue the buyer for specific performance

A) buyer is entitled to a refund of the earnest money deposit

Assets, liabilities, and net worth are important items when running a business. The liabilities of a business are: A) claims of the creditors. B) prepaid taxes. C) accounts receivable D) cash on hand.

A) claims of the creditors.

The principle of appraising, which states that the maximum value is achieved when the property is in harmony with its surroundings, is the principle of A) conformity B) highest and best use C) contribution D) competition

A) conformity

Recording a deed gives: A) constructive notice. B) objective notice. C) actual notice. D) factual notice.

A) constructive notice.

The IRS requires that an independent contractor be: A) covered by unemployment insurance. B) strictly regulated in the matter of attendance at sales meetings. C) allowed at least two weeks of paid vacation annually. D) paid on the basis of successful transactions rather than hours worked.

A) covered by unemployment insurance.

The written instrument used to create land restrictions for the benefit of lot owners in a new subdivision is: A) declaration of restrictions. B) a blanket deed of restrictions. C) an order of desist and refrain. D) a blanket quit claim deed.

A) declaration of restrictions.

There is an oral agreement to lease a property for one year at $500 per month. This agreement is: A) enforceable. B) unenforceable because it is not in writing. C) unenforceable because there was no binder deposit. D) none of the above

A) enforceable.

An estate of inheritance or perpetual estates are referred to as a(n): A) estate in fee. B) life estate. C) estate at will. D) estate for years.

A) estate in fee.

A developer includes restrictive covenants in the deeds for all properties within a subdivision. These covenants may dictate all of the following EXCEPT the: A) ethnic character of future owners. B) owner's use of the property C) appearance of outbuildings and fences. D) style of architecture.

A) ethnic character of future owners.

A white person would be entitled to take action based on fair housing provisions under the Civil Rights Act of 1968 if denied the right to: A) have minority neighbors. B) attend the church of his or her choice. C) meet neighbors. D) choose neighbors.

A) have minority neighbors.

In the lending business, many terms are synonymous. All of the following terms are not synonymous, except: A) interim loan-construction loan. B) take out loan-construction loan. C) interim loan-take out loan. D) amortized progressive loan-take out loan.

A) interim loan-construction loan.

The authority given by law for a creditor to obtain a charge or a debt from a debtor is in the broadest sense of the term a: A) judgment. B) attachment. C) lien. D) judgment and attachment.

A) judgment.

Under the provisions of the Interstate Subdivided Lands Act, can the buyer may rescind his offer within specified time limits, if he buys: A) land projects. B) condominium. C) stock cooperative project. D) none of the above

A) land projects.

An appraiser's primary concern when analyzing real property is: A) marketability and acceptability. B) functionality. C) supply and demand. D) none of the above

A) marketability and acceptability.

For an option to be valid, the consideration: A) must be more than $10.00. B) can be less than $10.00 but must actually pass. C) no consideration needed. D) the promise of consideration is sufficient.

A) must be more than $10.00.

A home is the smallest in a neighborhood of large, expensive houses. The larger houses have an effect on the value of the smaller home called the principle of: A) progression B) regression C) contribution D) substitution

A) progression

A lesser valued property will be worth more because of the presence of a greater valued property nearby. This is known as the principle of: A) progression. B) regression. C) conformity. D) balance.

A) progression.

Recording a deed gives: A) public notice. B) objective notice. C) actual notice. D) factual notice.

A) public notice.

Involuntary methods of conveying property include all of the following EXCEPT: A) quitclaim deeds B) adverse possession C) escheat D) condemnation

A) quitclaim deeds

An appurtenance: A) runs with the land. B) is personal property. C) is a license to use land. D) is an encroachment.

A) runs with the land.

Of the many requirements of an option agreement, it must specifically state: A) that the offer will remain open for a specific time period. B) that the agreement is irrevocable. C) that the optionor can keep the price paid for the option if the optionee fails to purchase. D) the time for the optionee to purchase.

A) that the offer will remain open for a specific time period.

A homeowners association decides that the subdivision's community center should be sold for economic reasons. Before attempting to find an investor, the association decides it needs guidance on an appropriate asking price and hires an appraiser. Which approach is the appraiser likely to find most appropriate to appraise this property? A) the cost approach B)the sales comparison approach C) the gross rent multiplier approach D) the income approach

A) the cost approach

A landowner sells one acre of his two-acre property to a friend. He reserves for himself an appurtenant easement over the friend's land for ingress and egress. The landowner's property is: A) the dominant tenement B) the servient tenement C) the subject to an easement in gross D) cleared of the easement when the landowner sells the remaining acre to a third party

A) the dominant tenement

If the loan to value ratio is loan: A) the equity in property is high B) the equity is not affected C) the equity in the property is low D) none of the above

A) the equity in property is high

Considering construction financing, the lender will usually release the final payment to the borrower when: A) the lien period has expired. B) notice of completion is recorded. C) work has stopped for 30 days. D) none of the above

A) the lien period has expired.

A residential property was built 75 years ago. Two of the five bedrooms have no closets, the basement floor is unpaved, and the original slate roof needs repairs. To the appraiser, the most important consideration is: A) the sale price of a nearby similar property. B) how much it would cost to finish the basement floor. C) how the bedrooms could be reconfigured to provide some storage. D) the life expectancy of the roof.

A) the sale price of a nearby similar property.

Blockbusting is best described as an attempt: A) to panic a neighborhood into thinking property values will decline due to unwanted person(s) moving in. B) by insurance companies to refuse to issue homeowner's policies to certain residents of the city C) to form guerrilla bands to use violent action to integrate neighborhoods D) by banks to refuse loans to homeowners in certain segments of the city

A) to panic a neighborhood into thinking property values will decline due to unwanted person(s) moving in.

Which of the following is closest to the same relationship as between a broker and seller: A) trustee and beneficiary. B) broker and salesman. C) mortgagor and mortgagee. D) vendor and vendee.

A) trustee and beneficiary.

If a mortgage payment includes interest or any other charges, the payment is NOT: A) Interest plus principal B) Principal only C) Principal plus interest and other charges D) None of these

B) Principal only

A joint tenant may do all of the following with his interest except: A) lease it. B) will it. C) sell it. D) give it away.

B) will it.

What a dam broke, the flow of water cut away a strip of land from the riverbank. This would be known as: A) Reversion B) Avulsion C) Accretion D) Alluvion

B) Avulsion

If referring to an acceleration clause, which of these is the most similar? A) Call option B) Balloon payment C) Transfer clause D) Lease option

B) Balloon payment

Which of the following would be considered the least desirable tenant for a shopping center? A) Supermarket B) Barber shop C) Chain variety store D) Department store

B) Barber shop

Financing costs usually rise on loans with: A) None of these B) Both of these C) Low Down Payment D) Easy terms

B) Both of these

One of the indexes used to determine interest rate changes for certain adjustable-rate mortgages is called: A) BEAS B) COFI C) WOID D) LAFI

B) COFI

If an appraisal has been completed on a property that is being purchased with a VA loan, the VA will issue a: A) CSV B) CRV C) GRE D) None of these

B) CRV

If George has an 85% interest in a property while Ernie has a 15% interest in the same property, which right is equal? A) Economical B) Possession C) Survivorship D) Liquidation

B) Possession

If an income property is valued at $250,000 using a 6% capitalization rate, how much would an investor pay for the property if he demanded a 10% capitalization rate? A) $225,000 B) $150,000 C) $300,000 D) $500,000

B) $150,000

What is 75% of $250,000? A) none of the above B) $187,500 C) $182,500 D) $62,500

B) $187,500

Jerry spends 25% of her gross monthly income on her apartment rent of $600. What is her gross monthly income? A) $1,500 B) $2,400 C) $2,000 D) $2,420

B) $2,400

RESPA would apply to which of the following? A) Homes and residential dwellings only B) 1-4 family residential dwellings C) Commercial real estate only D) Subdivisions

B) 1-4 family residential dwellings

A parcel of land, rectangular in shape, has an area of 560 square yards. It has a 45-foot frontage. How deep is the lot? A) 60 feet B) 112 feet C) 2,800 feet D) 200 yards

B) 112 feet

Under the Truth in Lending Law, when a borrower wishes to borrow money (not on a first trust deed loan to purchase the property) and agrees to use his residence as security for the loan, how many days has he to rescind his offer? A) 5 days B) 3 days C) No set time limit D) One week

B) 3 days

What is the statute of limitations on filing an action for encroachment? A) 2 years B) 3 years C) 4 years D) 5 years

B) 3 years

What section is due north of section 8? A) 2 B) 5 C) 13 D) 4

B) 5

A time deposit that is held in a bank that pays a certain pre-determined amount of interest to the depositor is known as: A) An interest bearing account B) A certificate of deposit C) A time stamp deposit D) A certified deposit

B) A certificate of deposit

If Jerry was asking to receive a loan in which the interest rate does not change during the term, he would be asking for this type of mortgage: A) A non-adjustable mortgage B) A fixed rate mortgage C) A conventional fixed-rate mortgage D) Any of these

B) A fixed rate mortgage

The payment change date on an adjustable-rate mortgage or graduated payment mortgage is when: A) A lump sum payment is due B) A new monthly payment amount takes effect C) A new monthly payment date takes effect D) A new monthly interest amount takes effect

B) A new monthly payment amount takes effect

Which of the following would be least likely to include a legal description of a parcel of real estate? A) A grant deed B) A property tax bill C) Escrow instructions D) A preliminary title report

B) A property tax bill

A judgment by the court ordering the sale of property is known as: A) A notice of declaration B) A writ of execution C) A writ of judgment D) A habendum clause

B) A writ of execution

When Danielle issues a promissory note to Henrietta, she has given Henrietta: A) A written promise to not advertise within the geographical area of Henrietta B) A written promise to repay a specific amount over a specified period of time C) A written promise to not act outside of the bounds of her position D) A written promise to perform a certain contractual agreement within a specified period of time

B) A written promise to repay a specific amount over a specified period of time

The National Association of Realtors (NAR) is affiliated with which of the following: A) Institute of Real Estate Management B) All of these C) The REALTORS Land Institute D) The CCIM Institute

B) All of these

The broker loan law states that the broker's loan statement must contain estimated costs including: A) Escrow B) All of these C) Appraisal D) Title

B) All of these

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby is called: A) A similar analysis B) An appraisal C) A comp D) Neighborhood investigation

B) An appraisal

The best definition of an appraiser is: A) An individual that works exclusively independently as a contracted agent to estimate the value of real and personal property B) An individual qualified by education and experience to estimate the value of real and personal property C) An individual that works for lenders exclusively to estimate the value of real and personal property D) None of these

B) An individual qualified by education and experience to estimate the value of real and personal property

If a contract is written and parts are incomplete or ambiguous, what type of agreement takes preference: A) A new typed agreement B) An oral agreement C) A new written agreement D) None of these

B) An oral agreement

When a veteran is looked at and proven to be eligible for a VA loan, the document that is given to them from the Department of Veteran's Affairs is called: A) Certificate of Authentication B) Certificate of Eligibility C) Certificate of Availability D) Certificate of Green Light

B) Certificate of Eligibility

If Joyce places her number on the "Do-Not-Call Registry", this means that: A) Joyce has the right to sue any person or business that calls Joyce without prior authorization B) Commercial calls from which Joyce has no established business relationship are prohibited C) Calls from any source are prohibited from reaching Joyce D) Any of these

B) Commercial calls from which Joyce has no established business relationship are prohibited

In the exercise of police power, which of these is NOT related: A) Public Health B) Compensation C) Morals D) Safety

B) Compensation

If an agent acts in a way that prevents disclosure of something, this action is called: A) Misrepresentation B) Concealment C) Avoidance D) Fraud

B) Concealment

Which method would an appraiser be most likely to use when appraising a newly built (1-year old) apartment building with no rental history? A) Income approach B) Cost approach C) Capitalization approach D) Market Approach

B) Cost Approach

To determine the value for a business, which of the following items found on a financial statement would you pay least attention to? A) Gross income receipts B) Cost of inventory goods sold C) Inventory on hand D) Cash on hand

B) Cost of inventory goods sold

Scott executes a deed to Bob and records it. Later, Scott seeks to void the sale, claiming that there had been no delivery to Bob. Why will Scott lose? A) Bob is in possession of the property B) Delivery is presumed with recording C) A recorded deed is always valid D) Recording establishes the priority of the deed

B) Delivery is presumed with recording

Prescription is a method of acquiring which of the following? A) Medical drugs from a pharmacist B) Easements C) Utility rights D) None of the above

B) Easements

The effectiveness of the market data approach is limited most by which of the following factors? A) the differences in the comparable property B) Economic conditions that rapidly change C) The financing terms of comparable property D) Types of property that are regularly sold

B) Economic conditions that rapidly change

Joint tenancy and community property have which of the following in common? A) Right of survivorship B) Equal interest C) Both (a) and (b) D) Neither (a) nor (b)

B) Equal interest

A buyer, Joe, and a seller, Stephen, both sign a purchase contract. What kind of title interest, if any, does Joe have in the property at this point? A) ATLA B) Equitable C) Defeasible D) Legal

B) Equitable

What does an appraiser do? A) Verify building codes are in conformance B) Establish market value C) Provide written documentation on the state of the property D) Establish estimated property taxes

B) Establish market value

Which of the following best describes a severalty estate? A) It is a type of co-tenancy estate B) Even though a corporation has many individual stockholders it owns title in severalty C) An ownership of real property by more than one person such as three tenants in common each holding a 1/3 undivided interest would be classified as a severalty ownership D) A husband and wife hold real property in severalty

B) Even though a corporation has many individual stockholders it owns title in severalty

Liabilities, including long-term and short-term debt, can be called: A) Outstanding credit B) Financial obligations C) Poor credit D) Financial payments

B) Financial obligations

If personal property is affixed in a permanent manner to real property, it becomes what is called a(n): A) Attachment B) Fixture C) Easement D) Ornament

B) Fixture

In California, one way to clear a cloud on a title is to: A) Any of these B) Institute a quiet title action C) Obtain a deed D) Issue a decree

B) Institute a quiet title action

Mr. Big leased a property for five years to Ms. Kimball. During this lease term, Mr. Big died and it was discovered by Ms. Kimball that Mr. Big's interest was a life estate. The owner of the property would be correct in advocating which of the following? A) Ms. Kimball's leasehold estate is valid for the length of the lease B) Ms. Kimball's interest was terminated upon Mr. Big's demise C) Mr. Big's devises would receive the fee title D) the owner has an estate in remainder

B) Ms. Kimball's interest was terminated upon Mr. Big's demise

The dictate that a sign should not be placed on a property without the owners consent is found in: A) Business and Professions Code. B) NAR Professional Code of Ethics. C) California Real Estate Act. D) Commissioner's Regulations.

B) NAR Professional Code of Ethics.

Under a trustee's power of sale, the right to foreclose a trust deed expires: A) In 5 years B) Never C) In 7 years D) In 3 years

B) Never

A "condominium" is a type of: A) Development B) Ownership C) Construction D) Subdivision

B) Ownership

A balloon payment can be part of a: A) Fully amortized loan B) Partially amortized loan C) None of these D) Residential fully amortized loan

B) Partially amortized loan

If a married couple purchases property as tenants by the entirety, neither can obtain a court order for: A) Estimation B) Partition C) Separation D) Accrual

B) Partition

If someone is referring to zoning regulations, they are referring to instances of: A) Government control B) Police power C) County stewardship D) Voter approved measures

B) Police power

Which of the following is an expense or loss to a homeowner in owning a home? A) Interest lost in equity B) Reduction in the value of the lot C) Appreciation due to painting D) Increase

B) Reduction in the value of the lot

If a lien has a lower priority than the first mortgage or lien, this would be known as: A) Under-prioritized B) Subordinate C) Inferior D) Under

B) Subordinate

The total collection of rights which may be claimed by private ownership is best described as: A) Freehold B) The bundle of rights C) An estate D) The fee simple system

B) The bundle of rights

When there is a conflict in limitations on the development of property, which rule applies? A) The least restrictive B) The most restrictive C) There is no rule to determine this D) None of these

B) The most restrictive

Which of the following would not be allowed under the Federal Fair Housing Act? A) Housing limited to persons age 62 or older. B) The owner of a 10-unit apartment building renting to men only. C) An American Legion will rent rooms only to members who belong to the American Legion. D) A landlord refuses to rent his double home in which he lives to a woman with three children.

B) The owner of a 10-unit apartment building renting to men only.

A mortgage and trust deed are the same in which they allow: A) None of these B) The property to be sold in the event the borrower defaults C) An estate in gross D) Prescriptive benefits

B) The property to be sold in the event the borrower defaults

The usefulness of property relating to its ability to satisfy a potential buyer's need or desire such as to provide shelter or income is termed: A) Serviceability B) Utility C) Productivity D) Function

B) Utility

One example of an easement in gross is the right of: A) Owners to cut across their neighbor's property B) Utility companies to access a property in order to maintain wires or pipes C) Owners to use the neighbor's backyard for their own recreation D) A roofing company working on repairs to store some of their equipment in the neighbor's yard

B) Utility companies to access a property in order to maintain wires or pipes

Building heights, setbacks, and density are usually established by: A) County ordinances B) Zoning regulations C) State general plans D) Local building inspectors

B) Zoning regulations

A valid escrow requires which of the following: A) escrow instructions with no conditions B) a binding contract between the buyer and seller and the conditional delivery of transfer instruments to a third party C) the services of a licensed real estate broker D) none of the above

B) a binding contract between the buyer and seller and the conditional delivery of transfer instruments to a third party

A person hiring personal property is similar to: A) a mortgagor executing a mortgage. B) a lessee signing a lease. C) a trustor signing a trust deed. D) a buyer executing a trust deed.

B) a lessee signing a lease.

A court order to a property designated individual to sell property in order to satisfy a judgment is called: A) a deficiency judgment B) a write of execution C) a lis pendens D) an attachment

B) a write of execution

A listing agreement is a(n): A) unilateral or bilateral contract B) all are correct C) employment contract D) contract to find a buyer for a property

B) all are correct

When property is appraised as part of the loan application process, a copy of the appraisal: A) is confidential and for the lender's use only. B) belongs to the buyer who paid for it. C) is furnished to the seller only upon written request. D) must be shared with all the parties.

B) belongs to the buyer who paid for it.

In a buyer's closing statement, the purchase price is: A) a seller's debit. B) buyer's debit. C) seller's credit. D) buyer's credit.

B) buyer's debit.

Ann acquires title as a single female. Ann subsequently marries. Ann then sells the property, signing her married name to the grant deed. This: A) is immaterial. B) creates a cloud on the title. C) is automatically cured after 90 days. D) has no impact, because this was her separate property.

B) creates a cloud on the title.

What a leased property would be expected to rent for under current market conditions if the property were vacant and available for rent is: A) contract rent. B) economic rent. C) commercial rent. D) conditional rent.

B) economic rent.

A portion of Joe's building was inadvertently built on Ginny's land. This is called an: A) easement B) encroachment C) avulsion D) accretion

B) encroachment

The portion of the value of an owner's property that exceeds the amount of the owner's mortgage debt is called A) surplus B) equity C) escrow D) equality

B) equity

The ownership rights and interest in real property are called: A) executory contracts. B) estates or fees. C) land sales contract. D) liens.

B) estates or fees.

The type of real estate ownership that is MOST all-inclusive is a A) qualified fee estate B) fee simple absolute estate C) reversionary interest D) life estate

B) fee simple absolute estate

The type of real estate ownership that is MOST all-inclusive is a: A) life estate B) fee simple absolute estate C) qualified fee estate D) reversionary interest

B) fee simple absolute estate

A person who has complete control over a parcel of real estate is said to own a: A) life estate B) fee simple estate C) leasehold estate D) defeasible fee estate

B) fee simple estate

Which of the following is/are considered to be a personal property? A) toilet B) furniture C) concrete patio D) sink

B) furniture

The party who is responsible for the enforcement of sanitation and sewage requirements in a subdivision is the: A) local building inspector. B) health department. C) local planning commission. D) Real Estate Commission.

B) health department.

Broker White obtained a deposit from buyer Farley. The seller did not accept the offer, however, and broker would not return deposit. Farley contacted the Real Estate Commissioner. The Commissioner can: A) act only as mediator. B) investigate as required by real estate law. C) not act on this since it involves a real estate license. D) not act on this since it involves civil court action.

B) investigate as required by real estate law.

Lender's use the term "debt to income ratio" to refer to a: A) part of closing B) loan qualifying tool C) requirement of the federal government D) formula used in appraising property

B) loan qualifying tool

A prospective buyer of a business opportunity would be most interested in the: A) gross sales of the business. B) net profit of the business. C) turnover. D) net worth of the business.

B) net profit of the business.

With a tenancy for years: A) a 30-day notice is required to terminate the lease B) no notice is required to terminate the lease C) the term of the lease must be for a least one year D) the lessee has a freehold state

B) no notice is required to terminate the lease

For the past 30 years, the Seddons continue to operate a neighborhood grocery store. Last week, the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Seddon's grocery store is located. The store is now an example of a/an: A) violation of eminent domain B) non-conforming use C) illegal enterprise D) variance of the zoning laws

B) non-conforming use

Which of the following instruments would contain the loan amount, interest rate, term of the loan, and monthly payments? A) mortgage B) note C) deed D) lease

B) note

Real property includes all of the following except: A) airspace. B) oil. C) minerals. D) water rights.

B) oil.

The alienation clause found in most security instruments states that the full amount will be immediately due and payable if the: A) hazard insurance policy is allowed to lapse. B) property is sold to a new owner. C) borrower is late with three monthly payments. D) homeowner borrows more money on the property.

B) property is sold to a new owner.

Under the U.S. Government Survey method of land description, rows of townships that run north and south are called: A) tiers. B) ranges. C) meridians. D) base lines.

B) ranges.

A prospective client calls you and asks you to take a listing on his property. In reviewing his papers, you discover he is purchasing the property on a contract of sale that has no acceleration clause, and that is no provision in the contract prohibiting a resale or an assignment. Which of the following is the most nearly correct statement? Your client could: A) sell his interest in the property, but only if he pays off the contract first B) sell or assign his rights but not his duties under the original contract unless the contract seller's approval was obtained C) properly give the purchaser a warranty deed to the property providing the deed recited "subject to the existing contract of sale" D) properly give the purchaser a grant deed to the property, providing he took back a recorded purchase money second trust deed to cover the payments due on the original contract of sale

B) sell or assign his rights but not his duties under the original contract unless the contract seller's approval was obtained

Real property can become personal property by the process called: A) attachment B) severance C) hypothecation D) accretion

B) severance

If topography is considered in connection with development of a residential subdivision, experience has shown that: A) land with a rolling topography can be developed more cheaply than flat land. B) some contour is desirable in a residential subdivision. C) rolling hills and varied topography are considered to result in a monotonous landscape for a residential subdivision. D) none of the above is true.

B) some contour is desirable in a residential subdivision.

An appurtenance is: A) an easement in gross. B) stock in a mutual water company. C) an attachment. D) all of the above

B) stock in a mutual water company.

A transfer of possession of real property, but not ownership is called a: A) mortgage. B) sublease. C) security agreement. D) easement.

B) sublease.

Value is set by the cost of getting an equally desirable substitute. This is a simple explanation of the principle of: A) highest and best use. B) substitution. C) change. D) supply and demand.

B) substitution.

A homeowners association decides that the subdivision's community center should be sold for economic reasons. Before attempting to find an investor, the association decides it needs guidance on an appropriate asking price and hires an appraiser. Which approach is the appraiser likely to find most appropriate to appraise this property? A) the gross rent multiplier approach B) the cost approach C) the sales comparison approach D) the income approach

B) the cost approach

Sellers are usually reluctant to cancel an existing transferable fire insurance policy in the event of a cash sale due to the fact that: A) the buyer may not properly cover the property B) the higher short term cancellation rate will apply C) it could result in cancellation of other policies D) the elimination of a cash return in the pro-ration

B) the higher short term cancellation rate will apply

A purchaser under a sale-leaseback transaction would be least interested in: A) the location of the property. B) the seller's depreciated book value. C) a general well-constructed building. D) the credit of the prospective seller.

B) the seller's depreciated book value.

A minority purchaser enters your office and states they are looking for. and interested in purchasing a particular property in a minority neighborhood. You could legally assume that: A) the person is testing you and your legal procedures B) they are interested in that particular property C) they are interested in owning a home in an all minority neighborhood D) they cannot qualify to own property in a higher priced area

B) they are interested in that particular property

The maximum deposit allowed on an unfurnished property is not more than the amount of: A) one month's rent. B) two months' rent. C) three months' rent. D) four months' rent.

B) two months' rent.

A contract obtained through duress, is: A) good. B) voidable. C) void. D) unenforceable.

B) voidable.

To appraise an amenity an appraiser would probably use the: A) reproduction cost approach. B) capitalization of net income approach. C) market comparison. D) all of the above

C) market comparison.

A loan was made for $14,000 at an interest rate of 6% per year for a 20-year period. The total interest that would be paid over the entire loan period if the monthly payment for this fully amortized loan is $7.17 per $1,000, would be approximately: A) $18,000. B) $16,000. C) $10,000. D) $14,000.

C) $10,000.

A buyer assumed a note secured by a deed of trust. The balance of the note was $11,000 with an annual interest rate of 9-1/2% payable quarterly. The interest on the note was to be prorated upon possession of the property. If the interest on the note had been paid to March 15, and he took possession February 15, he would owe how much prorated interest? A) $168.75 B) $56.25 C) $87.08 D) None of the above

C) $87.08

A normal size section in the Government Rectangular Survey System contains: A) 36 square miles B) 6 Square miles C) 1 Square mile D) 160 acres

C) 1 Square mile

Under a normal month-to-month rental, how much notice must a tenant give when moving out? A) 90 days B) 60 days C) 30 days D) 10 days

C) 30 days

A type of multiple ownership where the residents of a multi-unit housing complex own shares in the cooperative corporation that owns the property and gives each resident the right to occupy a specific unit is called: A) A group mortgage B) A time-share C) A co-op D) A union

C) A co-op

If Sarah Jean recently begins to receive her own tax bill after purchasing her property, this means she has most likely purchased into: A) A lease B) A tenancy in common C) A condominium D) A syndicate

C) A condominium

What is one difference of a grant deed as opposed to a contract of sale? A)A contract of sale requires only the signature of the grantor B) A grant deed does not have implied warranties and a contract of sale does C) A grant deed has implied warranties and a contract of sale does not D) A grant deed requires the signatures of both the vendor and the vendee

C) A grant deed has implied warranties and a contract of sale does not

If a person dies that owns this type of estate, the ownership of that person automatically terminates: A) A lis pendens estate B) An estate in reversion C) A life estate D) An accretion estate

C) A life estate

Which of the following loans would be most likely to qualify for FHA insurance? A) A loan to purchase a farm B) A loan to buy a small business C) A loan to purchase 1-4 units of residential rental property D) A loan to buy farm equipment

C) A loan to purchase 1-4 units of residential rental property

Private mortgage insurance is required when: A) A purchaser has less than stellar credit B) Any home gets purchased C) A loan-to-value percentage is in excess of 80% D) A loan-to-value percentage is in excess of 90%

C) A loan-to-value percentage is in excess of 80%

A mortgage that is in default that is announced and sold in a public location to repay the delinquent loan amount is part of something called: A) A notice of default B) An auctioneers gathering C) A public auction D) A fire sale

C) A public auction

Which of the following statements best describes a real estate agent's liabilities concerning environmental hazards? A) Residential real estate agents do not need to know about environmental conditions. B) Unless the buyer asks, the real estate agent doesn't have to worry about it. C) A real estate licensee could be liable if he or she should have known about a condition, even if the seller neglected to disclose it. D) Disclosure of environmental hazards is the responsibility of the seller.

C) A real estate licensee could be liable if he or she should have known about a condition, even if the seller neglected to disclose it.

Which of the following is an encumbrance? A) liens B) easements C) All of the other options are correct D) mortgages

C) All of the other options are correct

Escrow disbursements can pay for: A) Real estate taxes B) Mortgage Insurance C) All of these D) Hazard insurance

C) All of these

Which of the following is considered an "encumbrance"? A) Mortgages B) Easements C) All of these D) Leases

C) All of these

Which of these is considered to be an encumbrance? A) A lease B) A mortgage C) All of these D) An easement

C) All of these

A cash payment of $10,001 is given as earnest money to secure a property. What must be filed? A) An expediting loan form B) A documenting receipt C) An IRS Form 8300 D) A procurement contract

C) An IRS Form 8300

If Lucia was looking to come up with a down payment for her loan and she put forth the idea of using her 401k plan as a source for the down payment, this would be: A) An acceptable source for a down payment as long as penalties are paid prior B) An unacceptable source for a down payment C) An acceptable source for a down payment D) None of these

C) An acceptable source for a down payment

Which of the following would be the best and most complete definition of the term "encumbrance"? A) The use of property by a debtor to offer a creditor security for a debt B) The degree, quantity, nature, and extent of interest which a person has in real property C) Anything which affects or limits the fee simple title to property D) Any action taken relative to property, other an acquiring or transferring title

C) Anything which affects or limits the fee simple title to property

If a person is given power of attorney, it allows a designated person to act on behalf of another and is known as: A) Attorney at Law B) Principle Register C) Attorney in Fact D) Principle Fiduciary

C) Attorney in Fact

If a neighborhood is only partially built and remains this way over a period of time, this could lead to: A) Negligence B) None of these C) Blighting D) Breach of contract

C) Blighting

If "A," "B," and "C" have property as joint tenants, and "B" sells his share to "W" and "A" dies leaving an heir, "S," which situation is correct? A) 2/3 goes to C and W with S as a tenant in common B) 1/3 goes to C, 1/3 to W, and 1/3 to S after court decision C) C and W have a tenancy in common D) Joint tenancy goes through probate

C) C and W have a tenancy in common

When describing an analysis of the transfers of title to a piece of property over the years, this is called a: A) Ownership chain B) Title search C) Chain of title D) Recordation of ownership

C) Chain of title

Mrs. Cherry is filing for bankruptcy. She is filing the most common type of bankruptcy. What type of bankruptcy is Mrs. Cherry filing? A) Chapter 11 B) Chapter 7 C) Chapter 7 No Asset D) Chapter 11 No Asset

C) Chapter 7 No Asset

When a marriage is dissolved, the law that governs the redistribution of properties is found in the: A) Housing Act B) None of these C) Civil Code D) County Dissolution Law

C) Civil Code

What is an agreement in which a borrower receives something of value in exchange for a promise to repay the lender at a later date? A) An I.O.U. B) A contract C) Credit D) A promissory note

C) Credit

When debts of a person are erased in bankruptcy, what is this called? A) Closure B) Erasure C) Discharge D) Relinquish

C) Discharge

If a complex of dwelling units are at least 80% occupied by at least one person who is aged 55 years or older, the Federal Fair Housing Act does not prohibit: A) Discrimination based on national origin B) Discrimination based on race C) Discrimination against children D) Discrimination based on age

C) Discrimination against children

If someone puts a deposit on a property showing that they are serious about purchasing, this deposit is called: A) A down payment B) Holding deposit C) Earnest money D) None of these

C) Earnest money

A change in flight patterns that caused a loss in property value would be an example of: A) Aviation Obsolescence B) Physical Deterioration C) Economic Obsolescence D) Functional Obsolescence

C) Economic Obsolescence

The Federal National Mortgage Association is also known as: A) Freddie Mae B) Freddie Mac C) Fannie Mae D) Ginnie Mae

C) Fannie Mae

Of the following, which one would be the least important feature in establishing the value for industrial acreage? A) Topography B) Top soil C) Fertility D) Subsoil

C) Fertility

According to the Subdivided Lands Law, what must the developer (seller) give a buyer before selling a lot in the subdivision? A) Grant deed B) Preliminary public report C) Final public report D) EIR

C) Final public report

Which type of lease requires the lessee to pay a flat rent? A) Sandwich lease B) Percentage lease C) Gross lease D) Net lease

C) Gross lease

An agent working under a broker is offered a new BBQ grill by a seller they are working with if the agent can produce a buyer by the end of the month. The agent does produce the buyer and the seller wants to give the agent the BBQ. What should the agent do? A) Offer to come pick it up at a later date B) Decline the offer because of the health effects of burned meats C) Inform the seller that it is not legal to receive such compensation from anyone except the broker D) Accept the gift graciously and thank the seller

C) Inform the seller that it is not legal to receive such compensation from anyone except the broker

Adjustable rate loans are loans in which: A) The ending interest rate is higher than the starting interest rate B) Interest is charged in a way that is tied to a general index fund C) Interest rates vary over the term of the loan D) The starting interest rate is higher than the ending interest rate

C) Interest rates vary over the term of the loan

If private property has been damaged (such as through excessive airport noise) or taken by the government without formal eminent domain proceedings, what would a property owner initiate to recover just compensation for losing, or damaging, the property? A) Condemnation B) Injunction C) Inverse Condemnation D) Writ of execution

C) Inverse Condemnation

Time, title, interest, and possession between two or more parties is a defining definition of: A) Dual partnership B) Tenancy in common C) Joint tenancy D) Community property

C) Joint tenancy

Which of the following would be classified as a general lien? A) Mechanic's lien B) Property tax lien C) Judgment D) Real estate property tax lien

C) Judgment

One of the differences between an exclusive agency listing and an exclusive right to sell listing is: A) Concealment with an exclusive right to sell listing B) More security with an exclusive agency listing C) Less security with an exclusive agency listing D) None of these

C) Less security with an exclusive agency listing

A title insurance policy protects a lender from prior: A) Environmental Hazards B) Pest Infestation C) Liens D) Damage

C) Liens

This person solicits loans, represents the lending institution, and represents the borrower to the lending institution. A) Equity manager B) Account officer C) Loan officer D) Loan manager

C) Loan officer

Which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of beginning? A) Geodetic B) Lot and block C) Metes and bounds D) Rectangular

C) Metes and bounds

If Walter, a real estate agent, fails to perform the due diligence to verify a seller's information, Walter can be held responsible for: A) Any monetary damages that result from lack of performance B) Loss of selling party commission C) Misrepresentation D) Breach of contract

C) Misrepresentation

Instead of refinancing a mortgage, sometimes a lender will agree to do this instead: A) None of these B) Interest rate adjustment after a specific time C) Modification D) Term change

C) Modification

Jim is a mortgagor. Jim is required to pay for mortgage insurance to either the FHA or to a PMI company. The amount that Jim has to pay is called the: A) Mortgage insurance cut B) Mortgage insurance term amount C) Mortgage insurance premium D) Mortgage insurance difference

C) Mortgage insurance premium

How does the FHA insure loans? A) Default claims insurance B) Homeowners insurance C) Mutual mortgage insurance D) Title insurance

C) Mutual mortgage insurance

If Jerome, a tenant, is paying a fixed rental amount to David for the lease of a property and is also paying some of David's operating expenses, the type of lease that Jerome has is called a: A) Percentage Lease B) Gross Lease C) Net Lease D) NNN Lease

C) Net Lease

If a buyer of a property wishes to move into the newly purchased home before the close of escrow, the agent/broker should: A) Allow it B) Deny it C) Obtain written consent from the owner D) None of these

C) Obtain written consent from the owner

In order to form a valid contract, which is not necessary: A) Consideration B) Acceptance C) Performance D) Offer

C) Performance

If a person has limited or complete authority on behalf of another person, granted from a legal document, this is called: A) Acting Attorney B) Attorney in Fact C) Power of Attorney D) Person on Account

C) Power of Attorney

If a loan has a loan-to-value percentage in excess of 80%, what is required? A) A down payment in excess of 10% B) None of these C) Private mortgage insurance D)A co-signer

C) Private mortgage insurance

Shelley v. Kraemer is the Supreme Court case that held: A) Steerage by licensed agents in real estate are invalid under the Fourteenth Amendment B) None of these C) Private racially based restrictive covenants are invalid under the Fourteenth Amendment D) Racial profiling determining interest amounts of loans are invalid under the Fourteenth Amendment

C) Private racially based restrictive covenants are invalid under the Fourteenth Amendment

What is the general purpose of a building code? A) Assure utilization of skilled labor B) Assure compliance with regulatory agencies C) Provide minimum construction requirements D) Guarantee cost effectiveness

C) Provide minimum construction requirements

If a property is in default and a meeting is announced in a public location to sell the property in order to recoup the mortgage in default, this would be an example of a: A) Foreclosure B) Eviction C) Public auction

C) Public auction

19: In some states, a deed of trust is recorded in place of: A) Recording a promissory note B) Recording a title C) Recording a mortgage D) Recording acceptance of loan terms

C) Recording a mortgage

In some states, a deed of trust is recorded in place of: A) Recording a promissory note B) Recording a title C) Recording a mortgage D) Recording acceptance of loan terms

C) Recording a mortgage

A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property before it is offered for sale or lease to others is known as: A) Contingent rights B) Renters rights C) Right of first refusal D) Initial offering

C) Right of first refusal

When Julie asks her broker Dave for a very specific type of property and Dave later informs her that there is a lack of abundance of that type of property, Dave is referring to the concept of: A) Market value B) Supply and demand C) Scarcity D) Market saturation

C) Scarcity

If Nancy owns the property that Heather crosses over to get to her own property, Nancy owns which parcel? A) Dominant B) Subservient C) Servient D) Neutral

C) Servient

When a loan is being paid off, over time: A) The amount of interest increases while the principle balance decreases B) The amount of interest increases while the principle balance increases C) The amount of interest decreases while the principle balance decreases D) The amount of interest decreases while the principle balance increases

C) The amount of interest decreases while the principle balance decreases

On April 2, a buyer gave a broker a personal check as a deposit to accompany an offer. The buyer told the broker to hold the check uncashed until after April 15. What should the broker do? A) The broker cannot legally accept the check. B) The broker should present the offer and hope the seller does not ask about the check. C) The broker should present the offer to the seller, but must tell the seller about buyer's instruction to hold the check until after April 15. D) The broker should immediately deposit the check in his trust account.

C) The broker should present the offer to the seller, but must tell the seller about buyer's instruction to hold the check until after April 15.

What must be included in an ad placed by a real estate salesperson? A) The salesperson's name B) The salesperson's title C) The broker's name D) The broker's license number

C) The broker's name

Private Mortgage Insurance, also called PMI, insures: A) The mortgagor B) The borrower C) The lender D) The trustee

C) The lender

Which of the following would usually occur in a sale-and-leaseback transactions? A) The seller gets a return on the purchase in the form of rental payments B) The rent that the seller pays is not income-tax deductible C) The property is sold on the condition that the new owner lease it back to the seller at the time title passes D) The buyer keeps capital in inventories rather than in realty

C) The property is sold on the condition that the new owner lease it back to the seller at the time title passes

What item will appear as a debit on the buyer's closing statement? A) None of the other options are correct B) Prepaid homeowner's insurance C) The purchase price D) Unpaid property taxes

C) The purchase price

Which of the following statements is true with respect to planning commissions? A) All members are elected B) Members must have had real estate or subdivision experience C) They are authorized to give advice to the city council on subdivisions D) Members must be real estate brokers

C) They are authorized to give advice to the city council on subdivisions

What does the term "alienation" mean? A) Exclusion of passage B) Recording of judgement C) Transfer of title D) Prescribing of a lien

C) Transfer of title

A buyer makes an offer to purchase a property and specifies that the owner accept or reject the offer within 48 hours. Before hearing back from the owner, the buyer locates a more attractive property and withdraws the offer. Is the buyer legally entitled to withdraw the offer? A) No; the offer is binding until the 48-hour time period expires. B) Yes; an offer with a condition to respond in 48 hours is not valid. C) Yes; either party may withdraw an offer or counteroffer at any time prior to its acceptance. D) No; the owner must be allowed an opportunity to respond to the offer.

C) Yes; either party may withdraw an offer or counteroffer at any time prior to its acceptance.

A notary public may legally notarize a document if it is: A) a grant deed in which he is grantee. B) a mortgage in which he is mortgagee. C) a document being executed by a corporation of which he or she is an employee but he or she has no personal interest in the transaction. D) an instrument in which he is a party.

C) a document being executed by a corporation of which he or she is an employee but he or she has no personal interest in the transaction.

To help a buyer get an FHA loan, a real estate broker should put the buyer in contact with A) the federal home loan mortgage corporation B) the designated FHA appraiser in the area C) a lending institution approved by the FHA D) the FHA

C) a lending institution approved by the FHA

In respect to deeds: A) a grant deed must state two warranties. B) a quitclaim deed does not move the entire present interest in the title owned by the grantor. C) a recorded deed is presumed delivered and accepted. D) a trust deed is the most common method of conveyance in real property purchased in California.

C) a recorded deed is presumed delivered and accepted.

The addition to one's land by the gradual deposit of soil through natural causes is A) annulation B) ademption C) accretion D) avulsion

C) accretion

Alienation expressed a meaning most completely opposite to: A) acceleration. B) subordination. C) acquisition. D) subrogation.

C) acquisition.

The law requires the county record to index grant deeds: A) according to phonetic filing system. B) according to date and time of recording. C) alphabetically according to grantor and grantee. D) on microfilm records.

C) alphabetically according to grantor and grantee.

The word "tender," as used in contract law, means: A) money only. B) promissory note only. C) an offer of money or performance. D) none of the above

C) an offer of money or performance.

The primary mortgage market is where lenders make mortgage loans directly to: A) veterans. B) mortgage bankers. C) borrowers. D) the secondary market.

C) borrowers.

Under lease, the leasehold estate lies with the: A) lessor. B) lessee. C) both (a) and (b) D) neither (a) nor (c)

C) both (a) and (b)

Part of the consideration offered to a seller when the buyer signs an agreement of sale is called: A) an option B) a recognizance C) earnest money D) a freehold estate

C) earnest money

The legal right to pass over your neighbor's land is an: A) example of eminent domain. B) encroachment. C) easement. D) estate in land.

C) easement.

The difference between the value of a property and the total amount of liens against it is known as: A) collateral B) a down payment C) equity D) actual cash value

C) equity

A possessory right or ownership interest in real estate is called an A) abstract of title B) ad valorem C) estate D) affidavit

C) estate

During the escrow process, if an unresolved dispute should arise between the seller and the buyer preventing the close of escrow, the escrow holder may legally: A) arbitrate the dispute as a neutral party. B) rescind the escrow and return all documents and monies to the respective parties. C) file an interpleader action in court. D) all of the above

C) file an interpleader action in court.

A widow who owns a condominium unit holds a: A) tenancy by the entireties. B) proprietary lease. C) freehold estate. D) proprietary estate.

C) freehold estate.

A master plan may also be described as a(n): A) elevation plan. B) environmental plan. C) general plan. D) specific plan.

C) general plan.

When title to real property, which is encumbered by a deed of trust, is transferred as the result of a sale, it is always necessary to: A) obtain the permission of the beneficiary. B) pay off the balance of the trust deed. C) have the grantor deliver a deed. D) refinance completely

C) have the grantor deliver a deed.

Eminent domain and escheat are two examples of: A) transfers of title by descent B) adverse possession C) involuntary alienation D) voluntary alienation

C) involuntary alienation

A life estate: A) cannot pass to future owners. B) is an estate in land. C) is limited in duration to lifetime of its owner. D) is a type of leasehold estate.

C) is limited in duration to lifetime of its owner.

The remedy of "unlawful detainer" would be used by the offended: A) holder of a note in default. B) trustee. C) lessor. D) lessee.

C) lessor.

An agent becomes the agent of the seller when both the seller and the agent sign a(n): A) purchase agreement B) transfer disclosure statement C) listing agreement D) agency disclosure statement

C) listing agreement

Although the term "purchase money mortgage" applies to any loan that finances the purchase of real estate, it is commonly used to refer specifically to a: A) refinance loan. B) loan that is packaged for sale on the secondary market. C) loan taken back as part of the sales price by the seller. D) loan on property already owned that is used to finance the purchase of a second property

C) loan taken back as part of the sales price by the seller.

The term depreciation refers to the: A) costs incurred to renovate or modernize a building B) value of real estate after the expiration of its useful life C) loss of value in real estate from any cause D) capitalized value of lost rental income

C) loss of value in real estate from any cause

Fire insurance should allow the policy holder to: A) gain in the event of a claim. B) make at least 4 claims before cancellation of the policy. C) neither gain nor lose in the event of a claim. D) keep his loss to no more than $100,000.

C) neither gain nor lose in the event of a claim.

Charlie's Cheeseburgers is located in a small building in an area that is now zoned for office development. Charlie was allowed to remain because he has a: A) variance. B) delicious product that will appeal to nearby office workers. C) non-conforming use. D)special use permit.

C) non-conforming use.

An appraiser examines a building that is 25 years-old. Because of superior upkeep, it has the condition of an 11 year-old building. The appraiser may use the 11 year-old age as the: A) actual age B) effective age C) numerical age D) physical age

C) numerical age

What is the general purpose of a building code? A) assure utilization of skilled labor B) assure compliance with regulatory agencies C) provide minimum construction requirements D) guarantee cost effectiveness

C) provide minimum construction requirements

For a real estate broker to be entitled to a commission if the property sells after the expiration of the listing, the broker should place into the listing agreement a: A) liquidated damages clause. B) due diligence clause. C) safety clause. D) none of the above

C) safety clause.

Ownership of a property by only one person is known as: A) entirety. B) remainder interest. C) severalty. D) reversionary interest.

C) severalty.

Which of the following items could not be used by the owner of a hardware store as security for a loan, under the provisions of the Uniform Commercial Code? A) a personal note endorsed by him B) accounts receivable C) stock for sale D) equipment and fixtures

C) stock for sale

In a new counter-offer: A) none of the other options are correct B) the terms of the offer can never be changed C) the counter-offeror becomes the counter-offeree D) the counter-offeror can change the terms of the offer unilaterally

C) the counter-offeror becomes the counter-offeree

A property owner conveys a life estate to his brother for the brother's lifetime and designates his cousin as the person to whom the property will pass when the life estate ends. When the brother dies, what happens to the property? A) the property owner must designate a remainderman for the property B) the property passes to the brother's heirs C) the cousin automatically becomes the fee simple owner of the property D) the property reverts back to the original property owner

C) the cousin automatically becomes the fee simple owner of the property

A broker accepts an exclusive authorization and right to sell listing from a corporation. During the listing term, all of the officers of the corporation die. In this case: A) the listing must be acknowledged by the newly appointed officers B) the listing must be signed by the corporation's board of directors C) the listing remains in full effect D) the listing is automatically terminated

C) the listing remains in full effect

When a loan broker secures a hard money second loan for $16,300: A) the Real Estate Law limits the maximum charges. B) the Real Property Security Law limits the maximum charges. C) the maximum costs are limited by the Business and Profession Code. D) none of the above

C) the maximum costs are limited by the Business and Profession Code.

All of the following statements concerning an option are correct except: A) unless prohibited in the contract, the option is assignable. B) the optionee has the first right to purchase the property. C) the optionee has the legal right to enter and use the property right after the option has been entered into. D) performance of the terms found in the lease option is sufficient consideration for the option agreement.

C) the optionee has the legal right to enter and use the property right after the option has been entered into.

An attachment lien is normally valid for a maximum period of: A) six months. B) two years. C) three years. D) four years.

C) three years.

The receipt for a Subdivision Final Public Report must be kept on file by the subdivider or his agent for a minimum of: A) one year. B) two years. C) three years. D) four years.

C) three years.

Ken Laughton's house is "for sale by owner?' Robert Hall falls in love with it during an open house, tells Ken he'll pay the full asking price, and promises to send Ken an earnest money check for $5,000. Ken accepts the offer. The contract between them is: A) invalid because it lacks consideration. B) valid only if there were witnesses. C) unenforceable. D) enforceable by court action if either tries to back out.

C) unenforceable.

Lessee is to lease as: A) optionee is to optionor. B) vendee is to vendor. C) vendee is to land contract. D) lessee is to lessor.

C) vendee is to land contract.

The term "potable" refers to: A) sewers. B) septic systems. C) water. D) land.

C) water.

Under the Quality Environmental Act, "a negative declaration" for a proposed subdivision would mean that it: A) has not been approved by the Real Estate Commissioner and all construction must stop. B) is an environmental hazard and it must be disclosed to prospective purchasers. C) will not have any significant effects on the environment and the developer will not have to pay for a full environmental impact report. D) has not been approved due to other environmental hazards in the area.

C) will not have any significant effects on the environment and the developer will not have to pay for a full environmental impact report.

Cities and counties may adopt zoning regulations to ensure that structures conform to specified standards as to character and location. All of the following are correct statements concerning zoning ordinances except: A) zoning regulations are classified as public restrictions and are created under police powers of the city or county. B) zoning laws affecting the use of property are classified as encumbrances on the title. C) zoning ordinances vary from city to city; however, the symbol "R-3" generally refers to recreational use of property. D) denial of zoning variances may be appealed to the city council or Board of Supervisors but not to the courts.

C) zoning ordinances vary from city to city; however, the symbol "R-3" generally refers to recreational use of property.

Which of the following changes in zoning should result in compensation to the owner? A) spot zoning B) down-zoning C) buffer zoning D) "taking"

D) "taking"

If a lender agrees to make a loan based on an 80% LTV, what is the amount of a loan for a property appraised for $135,000 and a sale price of $137,800? A) $110,240 B) $105,920 C) $112,000 D) $108,000

D) $108,000

A real estate investment trust, which is also a real estate syndicate, requires at least this many investors according to federal law? A) 2 B) 10 C) 25 D) 100

D) 100

How many acres are in the following described area: the W 1/2 of the N 1/2 of section 5? A) 110 B) 120 C) 140 D) 160

D) 160

A township contains only? A) 640 acres B) 36 square yard C) 23,040 square feet D) 36 Sections

D) 36 Sections

The "Loan Brokerage Law" requires the broker to retain a copy of the loan broker's statement in his office files for a period not less than: A) 1 year. B) 2 years. C) 3 years. D) 4 years.

D) 4 years.

In order to obtain a loan, a person would likely go to: A) Department of Housing and Urban Development B) Federal Housing Administration C) Department of Veterans Affairs D) A Bank

D) A Bank

An oral agreement is: A) Not a contract B) None of these C) A contract but is not binding in a court of law D) A contract that is binding in a court of law

D) A contract that is binding in a court of law

A person who is required to reside on the property and to sign a claiming statement is most likely referring to this: A) A trust deed B) A farmstead C) A superintend D) A homestead

D) A homestead

An easement is an example of: A) An appurtenance B) Reversion C) Severance D) A non-possessory right

D) A non-possessory right

When the rent charged is based on the gross sales of a business, the lease is correctly termed: A) A gross lease; B) A net lease; C) A voidable lease; D) A percentage lease;

D) A percentage lease;

Jake sells his home to Jerry who sets up his residency but fails to record the deed. Jake then gives a deed to Sunny for the same home. What is the outcome? A) Sunny owns the property B) Jerry and Sunny are co-owners C) Sunny has recourse over Jerry D) Jerry has title

D) Jerry has title

An individual wishes to borrow money and is advised by the lender that he will only accept a negotiable instrument as security for the loan. Which of the following documents is not a negotiable instrument? A) A check B) A promissory note C) A draft D) A trust deed

D) A trust deed

Most trust deeds contain several clauses of: A) Due process B) Indeterminacy C) Habendum D) Acceleration

D) Acceleration

If Betty has a mortgage and it becomes in default, the lender can demand payment by means of a clause in the contract called a(n): A) Due on default B) Balloon clause C) Due on instance D) Acceleration clause

D) Acceleration clause

A real estate agent that has been selling properties under a broker for the last year but is NOT associated with the National Association of Realtors is considered to be a(n) __________________ but not a _____________________. A) Broker, Realtor B) Realtor, Agent C) Realtor, Broker D) Agent, Realtor

D) Agent, Realtor

If one is transferring or conveying title to real property, it is called: A) Alluvation B) Accretion C) Succession D) Alienation

D) Alienation

In the sale of real property which of the following runs with the land? A) Easements B) Conditions C) Stock in a mutual water company D) All of the above

D) All of the above

The Federal Open Housing Laws prohibit discrimination by any party in the sale of which of the following types of properties? A) A 25-unit apartment building B) A single-family residence purchased with government assistance C) A single-family residence sold by a real estate broker D) All of the above

D) All of the above

As a tenant in a business center, the operating owner installs separate and additional lighting and counters to accommodate the retail business that is going to be operating in the space. Upon vacating the property at the end of the lease, the lighting and tables: A) Must be properly removed by the exiting tenant B) Can be removed but only by the owner's expressed permission C) Are now considered part of the building and will convey with a sale D) Are considered trade fixtures and are the personal property of the tenant.

D) Are considered trade fixtures and are the personal property of the tenant.

When Bernie bought a property from Mike, there were a multitude of personal property of Mike's that Bernie wished to have. Mike agreed to sell Bernie the personal property. In order to legally transfer title to the personal property, Mike issued Bernie a: A) Transfer of title B) Personal property receipt C) Personal property deed D) Bill of sale

D) Bill of sale

The seller delivers the deed to the property and the buyer pays the purchase price in the step known as: A) Final B) Ending C) Deadline D) Closing

D) Closing

In California, the knowledge and consent of both parties (the buyer and the seller) must be obtained prior to the sale in order for the broker or agent to: A) Transfer ownership B) None of these C) Assign a quitclaim deed D) Collect a commission from both parties

D) Collect a commission from both parties

In some states, the instrument used instead of a mortgage is a: A) Promissory note B) Release dead C) Negotiable instrument D) Deed of trust

D) Deed of trust

Who enforces anti-discrimination and assures housing accommodations regardless of race, creed, or color? A) Real Estate Commissioner B) State Department of Housing C) State Department of Labor D) Department of Fair Employment and Housing

D) Department of Fair Employment and Housing

This is a law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs. A) EACO B) None of these C) COA D) ECOA

D) ECOA

Land that is subject to an easement is said to be: A) Encroached B) Appurtenant C) Restricted D) Encumbered

D) Encumbered

If Jennifer is named in the will of her grandfather as the administrator of his estate, she is the: A) Beneficiary B) Executor C) Person with power of attorney D) Executrix

D) Executrix

The duration is the primary characteristic that distinguishes a ____________ from a _____________. A) None of these B) Affirmative covenant, Negative covenant C) Binding contract, Non-binding contract D) Freehold estate, Non-Freehold estate

D) Freehold estate, Non-Freehold estate

The term assemblage refers to the process of: A) Gathering a catalog of several potential properties for presentation to a prospective buyer B) Bringing together several zoning districts of different types under one single zoning designation C) Indexing properties as part of a comparative market analysis D) Gathering together two or more parcels to make the whole more valuable than the sum of its parts

D) Gathering together two or more parcels to make the whole more valuable than the sum of its parts

Three of the following are alike. Which one which does not fit with the others? A) Easement B) Lien C) Judgment D) Grant deed

D) Grant deed

If a property sustains major physical damage from hurricane speed winds, the type of insurance that would cover this type of damage would be: A) Casualty insurance B) Natural disaster insurance C) Wind insurance D) Hazard insurance

D) Hazard insurance

31: A fiduciary relationship requires these elements: A) Agency, Honesty, and Trust B) Loyalty, Agency, and Trust C) Care, Agency, and Trust D) Honesty, Care, and Loyalty

D) Honesty, Care, and Loyalty

In California, as tenants-in-common, if one of the tenants obligates the other co-tenants for a lease of the whole property without their consent, the lease would legally be considered: A) Voided B) Voidable C) Valid D) Invalid

D) Invalid

Which of the following is true concerning a township? A) Always contains the same amount of land B) Always has 36 square miles C) Always has 36 equal sections D) Its boundaries are range and township lines

D) Its boundaries are range and township lines

Which of the following would be classified as a general lien? A) Mechanic's lien B) Property tax lien C) Real estate property tax lien D) Judgement lien

D) Judgement lien

If one uses the words "of definite duration" to describe a lease, it is most likely a(n): A) periodic tenancy B) estate in sufferance C) life estate D) estate for years

D) estate for years

One of the differences between an exclusive agency listing and an exclusive right to sell listing is: A) Concealment with an exclusive right to sell listing B) None of these C) More security with an exclusive agency listing D) Less security with an exclusive agency listing

D) Less security with an exclusive agency listing

If a loan officer is looking into the current assets and current liabilities of a borrower, the loan officer is generally looking at the borrower's: A) Financial stability B) Derogatory debts C) Debt-to-income ratio D) Liquidity

D) Liquidity

A couple purchased a lot for the purpose of building a home at a later date. When they were ready to build, who would they contact to see that all codes and restrictions were complied with? A) Real estate broker B) Architect C) Contractor D) Local building inspector

D) Local building inspector

When the principal balance of a loan, bond, or other financial instrument becomes due and payable, this is called the date of: A) Payability B) Returns C) Collections D) Maturity

D) Maturity

Which instrument is most valuable to a buyer who may fall on temporary hard times or default on payments? A) First trust deed B) Second trust deed C) Financing agreement D) Mortgage

D) Mortgage

Which of these instruments does NOT contain the interest rate, loan amount, term of the loan, and monthly payments? A) Deed B) Mortgage C) Lease D) None of these

D) None of these

If the owners of a shopping center want a major department store's lease to provide rental payments that reflect the store's sales, they are MOST likely to use which of the following types of leases? A) Flat fee B) Net C) Gross D) Percentage

D) Percentage

Which of the following CANNOT be defined as escrow monies? A) Promissory notes B) Security deposits C) Earnest money D) Personal bonds

D) Personal bonds

When an appraiser is determining a building's effective age, they are estimating the building's: A) Habitability B) Actual age C) State of repair D) Physical condition

D) Physical condition

If a person borrows a monetary amount and issues a written promise to repay a specific amount over a specified period of time, the person is issuing a: A) I.O.U B) Payment contract C) None of these D) Promissory note

D) Promissory note

The down payment on a property is: A) Twenty percent of loan amount B) Twenty percent of purchase price C) None of these D) Purchase price minus loan amount

D) Purchase price minus loan amount

"A pamphlet provided by the EPA entitled Protect Your Family From Lead In Your Home is to be given to tenants" would be a false statement regarding the: A) Occupational Safety Handbook B) Federal Fair Housing Act C) None of these D) Residential Lead-Based Paint Hazard Reduction Act

D) Residential Lead-Based Paint Hazard Reduction Act

Which of these is considered an appurtenance? A) Vehicles on the property B) Fixtures that were added by the previous owner that are to be removed upon sale C) Crops D) Septic system

D) Septic system

The collection of mortgage payments from borrowers and related responsibilities of a loan servicer is known as: A) Lending B) Managing C) Collecting D) Servicing

D) Servicing

In regards to a lease option, the price is: A) Never fixed B) Set at the end C) Always based on the consumer price index D) Set at the beginning

D) Set at the beginning

In some cases of eminent domain where the remaining land is reduced in value, the owner may be able to receive: A) "Just compensation" B) None of these C) Punitive damages D) Severance damages

D) Severance damages

Who may sell new mobile homes? A) Any real estate licensee B) Only a real estate broker C) Only the owner D) Specially licensed mobile home dealers

D) Specially licensed mobile home dealers

A holder in due course is one who has taken a negotiable instrument that is complete and valid on its face, became the holder before it was overdue, took it in good faith and without knowledge of defect in the title of the negotiator. Under which of the following circumstances would a person taking a negotiable instrument not be classified as a holder in due course? A) Taking a note endorsed in blank, that is, where the holder simply signs his name on the back of the note B) Taking a straight note on which payment is not due for two years C) Taking a note that is made payable to bearer rather than to the order of a specific person D) Taking a note properly endorsed by the payee but not signed by the maker

D) Taking a note properly endorsed by the payee but not signed by the maker

A property report that contains pertinent information about the subdivision and discloses to the prospective buyer that he or she has a minimum of 7 days in which to rescind the purchase agreement is required under: A) The Federal Residential Lead-Based Paint Hazard Reduction Act B) The Uniform Commercial Code C) RESPA D) The Interstate Land Sales Full Disclosure Act

D) The Interstate Land Sales Full Disclosure Act

In California, if a court orders a general lien against a particular debtor, this means that: A) The lien is against one particular property of the debtor B) The lien is in place until a specific action is taken by the debtor C) The lien is against all the properties associated with the debtor D) The lien is against all the properties owned by the debtor

D) The lien is against all the properties owned by the debtor

The amount of the outstanding balance on a mortgage not including any interest or other charges is called: A) The original loan amount B) The principle C) The primary D) The principal

D) The principal

For a real estate agency relationship to be enforceable, which of the following is NOT required? A) The agent must be authorized by a written agreement. B) The agent must be a real estate licensee. C) The principal has the power to do what is being assigned. D) The principal has the funds to pay the agent.

D) The principal has the funds to pay the agent.

A mortgage and trust deed are the same in which they allow: A) Prescriptive benefits B) None of these C) An estate in gross D) The property to be sold in the event the borrower defaults

D) The property to be sold in the event the borrower defaults

An estate can be best described as: A) The sum total of all the real and personal property owned by an individual at the time of death B) The sum total of all real property, personal property, and promised property at the time of death C) The sum total of all the real property and personal property D) The sum total of all the real property owned by an individual at the time of death

D) The sum total of all the real property owned by an individual at the time of death

The statement "present worth to typical users or investors of all rights to future benefits, arising out of property ownership" is best describing: A) The market interest of a property B) Property ownership C) Property comparison D) The value of a property

D) The value of a property

A transfer tax is a state or local tax that is payable when: A) Title passes from one owner to another B) None of these C) Title is recorded D) Title moves from one state to another

D) Title moves from one state to another

Mary owns one parcel of land and is trying to show that exceptional circumstances exist which justify using the land in a way which is prohibited by current zoning laws. Her intended use would not be detrimental to the public. She would probably petition the planning commission for a: A) Rezoning agreement B) Building permit C) Redevelopment permit D) Variance

D) Variance

Which of the following is not classified as obsolescence? A) Poor floor plan B) Massive cornices C) Old fashioned kitchen fixtures D) Worn out roof

D) Worn out roof

A representative with full authority to bind the principal to all agreements is: A) a special agent. B) an accidental agent. C) a literary agent. D) a general agent.

D) a general agent.

While the doctrine of caveat emptor still exists in most states, many are requiring that the seller make written disclosure of latent defects within a property and to disclose known problems. The best assurance for the agent to avoid charges of misrepresentation about the property is to recommend: A) an engineer's report issued by a relative of the seller. B) a walk-through by another agent. C) an inspection by the buyer. D) a property inspection by a qualified home inspector.

D) a property inspection by a qualified home inspector.

All of the statements below are true, except: A) a grant deed may convey "after acquired" title even when such warranty is not actually written into the contents of the deed B) a quitclaim deed may convey any right or title including fee simple title C) a deed is of no effect unless delivered D) a reconveyance deed is used to convey title to a new purchaser in connection with a "trust deed sale"

D) a reconveyance deed is used to convey title to a new purchaser in connection with a "trust deed sale"

All of the following are classified as subdivisions and subject to regulation by the Real Estate Commissioner except: A) land divided into more than four pieces. B) a five-unit community apartment project. C) a five-unit condominium project. D) a twenty-one unit apartment house

D) a twenty-one unit apartment house

A professional appraiser, in arriving at the value of an income producing property, may use: A) property residual technique. B) capitalization of net income. C) land residual technique. D) all of the above

D) all of the above

If you were asked to prepare newspaper ads for a home in a nice quiet area, $500,000 price range, you would appeal to: A) prestige. B) higher income families. C) pride of ownership. D) all of the above

D) all of the above

Personal property may: A) become real property. B) be assessed. C) be hypothecated. D) all of the above

D) all of the above

Referring to the capitalization rate used in the income method: A) the higher the risk, the higher the rate. B) the higher the rate, the lower the value. C) the lower the rate, the higher the value. D) all of the above are correct statements

D) all of the above are correct statements

Referring to the capitalization rate used in the income method: A) the higher the risk, the higher the rate. B) the higher the rate, the lower the value. C) the lower the rate, the higher the value. D) all of the above are correct statements.

D) all of the above are correct statements.

A Declaration of Restrictions is recorded by the: A) project owner of a condominium project. B) the unit owner. C) Real Estate Commissioner. D) all unit owners in a condominium project.

D) all unit owners in a condominium project.

A homestead exemption has no effect on a: A) mortgage. B) trust deed. C) mechanic's lien. D) any of the above

D) any of the above

The law provides that it is unlawful for any person to effect or attempt to effect a sale of a non-exempt franchise for another unless such person is a: A) real estate broker. B) real estate salesperson employed by a real estate broker. C) broker-dealer under the Corporate Securities Law of 1968. D) any of the above

D) any of the above

A borrower takes out a mortgage loan that requires monthly payments of $875.70 for 20 years and a final payment of $24,095. This is what type of loan? A) variable B) wraparound C) accelerated D) balloon

D) balloon

Escheat results from: A) an estate with no will. B) an estate with no heirs. C) neither a nor b D) both a and b

D) both a and b

An appurtenant easement is: A) incapable of being transferred. B) incapable of being created. C) a condition found in all grant deeds. D) capable of being transferred.

D) capable of being transferred.

The correct formula for estimating value using the cost approach is: A) cost to reproduce + depreciation - value of land = value. B) value of land + cost to reproduce + depreciation = value. C) depreciation + value of land - cost to reproduce = value. D) cost to reproduce - depreciation + value of land = value.

D) cost to reproduce - depreciation + value of land = value.

An executrix is appointed by the: A) probate court. B) heirs of the deceased. C) deceased's attorney. D) deceased.

D) deceased.

All are examples of involuntary conveyance of title EXCEPT: A) condemnation through eminent domain. B) adverse possession. C) tax sale. D) dedication.

D) dedication.