CA exam
When the debt has been paid in full, the trustee will record what legal instrument to remove the lien on a trust deed from the public record? A. Satisfaction of payment B. Complete a release statement C. Deed of reconveyance D. Redemption certificate
C.
The term "express contract" describes a contract which is expressed: A. Only orally B. Only in writing C. in words, either oral or written D. none of the above
C.
What are the three steps required under the California Agency Disclosure law? A. Analyze, disclose, confirm B. Analyze, prepare, disclose C. Disclose, erect, confirm D. Disclose, disclose, disclose
C.
What is the primary tool used by planning commissions to implement a general plan? A. Eminent Domain B. Adverse possession C. Zoning D. Master plan
C.
What state agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms. A. Department of RE B. Department of Corporations C. Structural Pest Control Board D. Department of Housing and Community Development
C.
When a lender in a trust deed takes in lieu of foreclosure, who becomes the owner of the property? A. Vendor B. Trustor C. Beneficiary D. Trustee
C.
When a project of improvement on real property has been completed and the owner has not filed a "notice of completion" how many days do claimants have to file mechanic's liens? A. 30 days B. 60 days C. 90 days D. Unlimited
C.
When a trustor defaults on his or her payments and refuses to reinstate the deed of trust, the most expedient thing for the beneficiary to do is to institute a: A. Sheriff's sale B. lien sale C. trustee's sale D. Judicial foreclosure sale
C.
Which of the following is an example of a freehold estate? A. The interested created by a trust deed B. An estate at will C. A life estate D. A leasehold estate
C.
A tenant has entered into a two-year lease. The lease makes no mention of assignment or subleasing. The tenant: A. may assign or sublease to another tenant, because the lease made no mention of assignment or subleasing. B. may sublease to another tenant., but only with the prior consent of the landlord C. cannot lease to another tenant D. may assign the lease, but not sublease
A.
Elizabeth purchased a home with a low down payment and long-term loan. This financing would most likely result in: A. increasing the financing costs B. decreasing the total financing costs C. having no effect on the total financing cost D. accelerating the amortization of the debt
A.
Many lenders consider the liquidity and marketability of loans to be very important when they make a loan secured by a mortgage. The importance of liquidity and marketability relates to: A. activities in the secondary mortgage markets B. desirability of fixed rate loans over adjustable rate loans C. ability to resell homes D. the mix of loans made by banks only
A.
The broker has an oral listing to sell real property. The broker presented an offer which the seller accepted. The seller then requested the broker give him the buyer's deposit check. What must the broker do? A. The broker must give the check to the seller B. The broker must deposit the check with the escrow C. The broker must first notify the buyer of the seller's request and get the buyers consent before relinquishing the check to the seller. D. The broker must return the check to the buyer
A.
The consumer price index (CPI) might be used to adjust the rent of a: A. graduated lease B. ground lease C. gross lease D. percentage lease
A.
Two buildings are leased on a long-term basis, one for a post office and the other for a hardware store. Using the capitalization approach to appraise the properties, the post office would demand: A. A lower capitalization rate B. The same capitalization rate as the hardware store C. A higher capitalization rate D. The two capitalization rates cannot be compared because the properties involve different uses
A.
Two days after entering into a contract for the sale of a home, both the buyer and the seller agreed to rescind the contract. The broker representing the both the buyer and the seller: A. must return the entire deposit to the buyer, but may sue for damages B. can deduct his expenses before returning the remainder of the deposit to the buyer C. can divide the deposit between the seller and the broker D. must file an interpleader action in court to determine the disposition of the deposit
A.
Water that is suitable for drinking and is not contaminated is said to be: A. potable water B. privy water C. alluvium water D. avulsion liquid
A.
What appraisal license is required to appraise a strip mall valued at $500,000? A. Certified general real estate appraiser B. Certified residential real estate appraiser C. Residential license D. Trainee license
A.
When the highest and best use of a property is expected to change, the current use is called: A. The interim use B. The temporary use C. The transitional use D. The possible use
A.
"Short rate" refers to A. property tax bill B. insurance C. interest D. loan documents
B.
A commercial development that has a single line of store buildings constructed along a major transportation route is described as a: A. Cluster development site B. Strip commercial development C. Neighborhood shopping center D. Street Commercial zone development
B.
A contract based on an unlawful consideration is: A. valid, until voided B. void C. illegal D. enforceable, if in writing
B.
A loan secured by real property usually consists of : A. Financing Statement and trust deed B. a promissory note and a trust deed C. FHA or VA insurance D. security agreement and financing statement
B.
A real estate broker wrote up an offer for his buyers. The offer was made contingent upon the approval of the home by the buyers' uncle. The buyers informed the broker that their uncle was currently in Europe, and they were unsure when he would return. The broker replied that the uncle's being out of the country would be "no problem." the broker then presented the offer to the seller without disclosing that the buyer's uncle was out of the country. The seller accepted the offer. Under these circumstances, the broker's conduct was: A. Lawful B. Unlawful C. Ethical D. Unethical
B.
A real estate licensee generally acts as a(n) A. ostensible agent B. fiduciary C. subcontractor for the seller D. dual agent
B.
A real estate licensee has inspected a home for sale and has discovered some problems in the property. How long does the buyer have to sue for the failure of the licensee to disclose problems in the property? A. 1 yr B. 2 yrs C. 3 yrs D. 4 yrs
B.
Adam sold his home to Tim, but negotiated a two year leaseback and remained in possession. Tim immediately placed the deed he received in a safe deposit box for "safe keeping". Adam then sold this same home to Sally. Sally recorded the deed. Who owns the home? A. Tim, because he received the first deed B. Sally because she recorded her deed C. Adam, because he still has three more deeds ready to be sold D. Adam, because both sales were improper.
B.
After the appraiser has collect all the data applied the appropriate appraisal method(s), what is the next step in the appraisal process? A. Simply average out the value estimates B. Reconcile or correlate the adjusted sales price of the comparables C. Assign appropriate value to individual estimates and average the total number D. Give the client a bill
B.
All of the following statements about covenants and conditions are false, except: A. The violation of a covenant results in the loss of title B. a violation of a condition can result in the loss of title C. covenants and conditions must be for the benefit of the general public D. private covenants and conditions are usually enforced by local government
B.
An owner of land owns riparian rights to water on, under, or adjacent to the land in which of the following? A. Oceans and bays, B. Rivers or streams C. Underground caves with water D. All the above
B.
California law controls the timing of a trustee's sale. what must the trustee do at least three weeks before conducting a trustee's sale? A. Publish a notice of reconveyance B. Publish a notice of trustee's sale C. Record a notice of redemption D. Evict the trustor
B.
Conditions affecting interest rates and the availability of loan funds vary over time. When would it be advantageous for a lender to waive a prepayment penalty clause contained in a promissory note A. When the Federal Reserve Board lowers the discount rate B. In a tight money market where there is a lack of funds available for real estate loans C. In a deflationary economy where home prices are falling D. When money is readily available for real estate loans at low interest rates.
B.
Davidson, a licensed Real Estate Broker, listed a home for sale for 9 months without any success. He knew that it needed some major structural repair and that it was overpriced by 10%. He wrote the following add in a newspaper, " Charming, cute Victorian home, move right in, you will not believe the price. Call: Davidson 410-9718." What was wrong with this advertisement? A. It doesn't specify the asking price and therefore violated the Truth-in-Lending law. B. The ad was misleading and deceptive because Davidson knew the home needed major repair. C. It is unethical to overprice and advertise a home for sale D. The newspaper would be held liable if someone purchases the home and relies on the advertisement
B.
For more than three generations the Garcia family has owned the right to operate a gold mine on land which belonged to a neighbor. One day, the neighbor sold the land and the new owner immediately fenced in the property and padlocked the gate to the entrance. What should the Garcias do? A. The Garcias should get a quitclaim deed from the new owner B. The Garcias should file a quiet title action in court C. The Garcias give a quitclaim deed to the new owner D. The Garcias can do nothing
B.
John owns a life estate based upon his own life. He leases the property to a tenant on a five year lease. John, the life tenant, dies two years later. What happened to the least? A. The lease continues in effect for the full five years B. The lease is terminated C. The lease continues in effect, but the tenant must renegotiate the monthly rent with the holder of the estate in reversion D. The lease was always null and void, because a life tenant may not lease the life estate
B.
Many real estate contracts contain preprinted clauses and spaces for information to be hand written in. In a legal dispute, when there is a conflict between the preprinted clauses and the hand written information, which will control? A. Preprinted clauses take precedence over hand written information B. The handwritten information takes precedence over the preprinted clauses C. the preprinted clauses and hand written information are considered equally. D. Hand written information is illegal on preprinted contracts
B.
Senior citizens may be able to defer the payment of the property taxes on their residence. In order to find out if they qualify for the program. the senior citizen should contact the: A. Real Estate Commissioner B. State franchising Tax Board C. State Housing authority D. County tax assessor
B.
The covenant of quiet enjoyment most directly applies to: A. Nuisances maintained on adjoining property B. Possession of real property C. title of real property D. All of the above
B.
The maximum commission which can be charged by a real estate broker in the sale of a residential income property is: A. limited by California State Law B. negotiable between the principal and the broker C. limited to no more than 9 percent of the total sales price D. set by a local custom
B.
The opposite of "alienation" is which of the following? A. Accretion B. Acquisition C. Ad Valorem D. Amortization
B.
The owner of a parcel of land granted an easement to the local telephone company to erect telephone poles across his land. This would create an: A. Encroachment B. Encumbrance C. Appurtenance D. Estate at sufferance
B.
The primary purpose of a site analysis by an appraiser is to determine the: A. applicable zoning laws B. highest and best use C. soil condition D. available amenities
B.
When a buyer has recently purchased a home with a valid land sales contract, what type of title does the buyer have? A. Sole title B. Equitable title C. Pending title D, Legal title
B.
When a buyer initially purchases a home with Cal Vet financing, the buyer receives a: A. Bill of sale B. Contract of sale C. Trust deed D. Lease of an option to buy
B.
When a residential neighborhood is composed mostly of owner occupied residential properties it tends to: A. attract commercial shopping centers to the neighborhood B. stabilize values C. deteriorate faster than areas with many rental properties D. lower property values
B.
When a vendee is buying a home with a land sales contract, what should he do to protect his interests? A. Get a standard title insurance policy B. Record the land sales contract at the county recorder's office C. Get a certificate or title D. Get a bill of sale
B.
When an appraiser is trying to determine the amount of economic obsolescence suffered by a commercial property, which of the following questions should he attempt to answer? A. Can this building be operated efficiently? B. Are the tenants in the neighborhood prospering? C. Is the rental schedule of the building fair to the tenants? D. Should a fire sprinkler system be installed?
B.
When one party agrees to indemnify another in a named loss in return for periodic payments, it is called: A. A fidelity bond B. Insurance C. Performance agreement D. None of the above
B.
Which of following is true concerning a "buyer agency?" A. A buyer agency is illegal in California B. In a "buyer agency" the agent represents buyers only C. In a "buyer agency" the agent represents mostly buyers, but some sellers D. In a "buyer agency," the agent must charge an advance fee to the buyer
B.
Which of the following expenses is not deducted from gross income to determine annual net income when using the capitalization approach to appraise an income producing property? A. Electricity B. Cost of capital C. Cost of management D. Replacement reserves
B.
Which of the following laws exert the greatest control over the California housing and construction industries? A. Uniform building code, National Electrical Code, Uniform Plumbing Code B. State housing law, Local business codes and Contractors License law C. Subdivision Map act, local building codes, city's master plan D. eminent domain, zoning ordinances, State housing law
B.
Who usually pays the 1% FHA loan fee? A. The borrower B. The seller C. The lender D. The lender in the secondary mortgage market
B.
the SW 1/4 of Section 5 is valued at $800 per acre. The S 1/2 of the NE 1/4 of Section 8 is valued at $500 per acre. What is the difference in value between the two parcels? A. $,6000 B. $8,000 C. $10,000 D. $12,000
B.
A "negative declaration" in a discussion of environmental impact means that the proposed subdivision: A. has been disapproved by the Real Estate Commissioner for the issuance of public report and the developer may not proceed with the construction B. will have a negative impact on the environment and create an environmental hazard C. will have an insignificant effect upon the environment and the developer will not have to pay for a full environmental impact report. D. has been disapproved because of other environmental hazards in the neighborhood
C.
A brother and sister held title to a 2-unit apartment building as joint tenants. Other than this apartment building, their business and personal affairs were conducted separately. At the time of the brother's death, he was insolvent, and owed several creditors substantial unsecured amounts of money. Title to the apartment building would be now held by the sister: A. subject to the processes of a probate sale B. subject to the claims of the unsecured creditors C. free and clear of debts of her brother D. as tenant in common with the creditors of the deceased brother
C.
A lender may also be called a: A. Mortgager B. Trustor C. Beneficiary D. Trustee
C.
A real estate broker who has been appointed as a subagent for the seller has which of the following duties? A. A fiduciary duty equally to both the buyer and the seller B. A fiduciary duty to the seller only C. A fiduciary duty to the seller and the broker who appointed him or her as the subagent D. A duty to be honest and fair to the seller and a fiduciary duty to the broker who appointed him or her as the subagent
C.
A seller gave broker Bob a 90-day exclusive right to sell listing. Two weeks later, the seller cancelled the 90-day exclusive listing and gave an open listing to broker Joe and another open listing to broker Fred. Broker Fred presented an offer to the seller one week later, which the seller accepted. How will the commission(s) be handled? A. All to broker BOB B. All to broker FRED C. A full commission to broker Bob and a full commission to broker Fred D. One commission divided equally between brokers Bob, Joe and Fred.
C.
A seller must give a TDS to the buyer in which of the following real estate transactions? A. Sale of a vacant lot B. Sale of a commercial building C. Sale of a triplex residential building D. ALL of the ABOVE
C.
After several lots have been sold in a subdivision, the Real Estate Commissioner was informed misrepresentations being made by the developer. The Commissioner may stop the sale of more lots by: A. revoking the final public report B. issuing a writ of prohibition C. issuing a desist and refrain order D. filing an accusation in court
C.
Concurrent ownership of real property by two or more parties, each of whom has an undivided interest (not necessarily equal) without right of survivorship, would be described as: A. community property B. joint tenancy C. tenancy in common D. ownership in severalty
C.
Each of the following would be subject to property taxes, except: A. Possessory interest of the lessee in oil and gas rights in real property owned by the government B. A manufactured home installed on a permanent foundation system C. Intangible personal property D. Vacant land in an unincorporated section of the country
C.
FHA will allow but Cal-Vet will not allow which of the following loans: A. A loan for the purpose of buying farm equipment B. A loan for the purchase of farm or agricultural land C. A home which is to be rented out D. A business opportunity
C.
In a deed of trust, the power of sale in event of foreclosure is given from the: A. trustor to the trustees B. beneficiary to the trustor C. trustor to the trustee D. trustee to the beneficiary
C.
Loan to Value ratio may be defined as: A. mortgage loans as a percent of capitalization rate B. mortgage loans as a percent of interest C. mortgage loans as a percent of appraised value D. mortgage loans as a percent of assessed value
C.
Mortgage Loan Correspondents may be licensed by the: A. Department of Corporations B. Department of RE C. both A & B D. Neither A & B
C.
Real property includes: A. Chattel mortgages B. trust deeds C. vegetation D. furniture
C.
The Alquist-Priolo Earthquake Special Studies Zone Act applies to: A. All States with earthquake activity B. All regions in The United States C. All counties in California D. All areas along fault lines
C.
The broker in a large real estate office died. His daughter, who was also a broker, took over the office. All listings: A. belongs to the salespeople B. are continued through probate of the brokers' estate C. are automatically cancelled, and the daughter would need to re-list the properties D. May be cancelled unilaterally by each principal with a minimum of 24 hour's written notice.
C.
Which of the following is usually considered real property? A. Crops that have been harvested B. Minerals that have been mined C. Stock in a mutual water company D. Growing crops that have been sold
C.
Which of the following would have the least impact on property taxes? A. New development B. Compacted population density C. A recorded homestead D. Tax deferment
C.
Which of the following, if it appears on a loan application, can a borrower refuse to answer? A. Request for information about property being financed B. Request for information on sources of income and analysis C. Request for information on martial status or race D. Request for information on monthly housing expenses
C.
A buyer and a seller has entered into a contract of sale of seller's home. The buyer backed out. The seller exercised his right of rescission. Which of the following is true? A. The seller must return the deposit to the buyer B. The seller can sue the buyer C. The seller can try to sell the property to someone else in order to limit the damage. D. All of the above
D.
A home sold for $200,000. The buyer assumed an existing loan against the property for $160,000. The document transfer tax for this county is $0.55 per $500 of consideration. The transfer tax is: A 11 B 22 C 33 D 44
D.
A joint tenancy in real property can legally be created with the execution of a deed by: A. a husband and wife to themselves as joint tenants B. existing joint tenants to themselves and others as joint tenants C. existing tenants in common to themselves as joint tenants D. any of the above ways
D.
A seller deeded a property which adjoined his home to a buyer and reserved an easement. The seller did not use the easement for 21 years. The seller now wants to use the easement. What will be the result? A. The easement is voidable by the holder of the servient tenement B. The creation of the easement was null and void because an easement cannot be created by reservation. C. The easement was terminated by non-use for 21 year olds D. The easement is valid
D.
All of the following will terminate an agency relationship, except: A. the death of an agent or the seller B. the mutual consent of an agent and seller C. the destruction of the subject property D. estoppel
D.
FHA loans generally differ from conventional loans in which of the following ways? A. Lower LTV ratio B. Shorter maturity C. More protection for the borrower D. Lower interest rate
D.
For appraisal purposes, "capitalization" is a process used to: A. Establish current market value B. Determine annual net income C. Find interest rate D. Convert income into value
D.
If an owner acquires land which includes riparian rights appurtenant, such as riparian rights A. Give the owner absolute ownership of the water B. Must be expressed in a trust deed C. may be determined accurately from an examination of public records at the County Recorder's D. concern the use of moving water, such as a stream within the watershed
D.
In real estate appraisal, "market value" is primarily based upon which of the following? A. The asking price on the listing B. The reproduction cost of the property C. Whatever a buyer is wiling to pay D. The willing buyer and the willing seller
D.
Mary listed her farm with broker Bob. In the listing Mary said she would not consider any offer with a down payment over 23%. Broker presented a full price, all cash offer which Mary turned down. Which of the following is true: A. The broker is entitled for a full commission B. the broker is entitled to a commission based upon 23% of the purchase price C. The broker should advise Mary to put the funds in excess of 23% of the purchase price in a long term CD. D. Mary can turn down the offer without liability, because the offer did not fully meet the terms of the listing.
D.
Private restrictions on the use of land may be created by A. Private land use controls. B. Written agreement C. A developer's general plan restrictions for a subdivision D. All of the above
D.
The "time is of the essence" clause in the deposit receipt refers to which of the following? A. The offer will expire if not accepted within____ days B. The offer is contingent upon______ C. The deposit must be delivered into escrow within_______days of acceptance D. the entire contract
D.
The Escrow act is found in the: A. Business code B. Civil Code C. Administrative code D. Financial Code
D.
The city planning commission recently changed the zoning for a residential neighborhood to allow for the construction of multiple family residential dwellings. The new zoning would most likely be: A. A-3 B. C-3 C. M-3 D. R-3
D.
The difference between property taxes and special assessments is that: A. assessment liens are always subordinate to property tax liens B. assessment liens can only levied by local improvement districts C. foreclosure of assessment liens can only be achieved by court foreclosure D. Special assessments are levied for the cost of special local improvements, while property tax revenue goes into the general fund.
D.
The real estate agency disclosure form must be given to the parties in which of the following transactions? A. Sale of a theatre B. Sale of an office building C. exchange of an office building D. Sale of a residential triplex
D.
What type of insurance policy covers everything? A. ALTA B. Extended C. Standard D. No title insurance policy covers everything
D.
When calculating the Consumer Price Index (CPI, housing expenses is one of the largest denominators because: A. The CPI is based upon all consumer purchases B. More people buy homes than buy business C. Housing impacts economy D. Housing is one of the largest expenses for consumers
D.
When describing land using the townships and sections, the intersection of north and south and east and west lines, respectively, are known as: A. metes and bounds B. lines of demarcation C. lot and blocks D. base lines and meridian lines
D.
When lending money to two or more joint tenants using a single promissory note, the lender would be best advised to increase the security on the note by inserting which of the following phrases after the names of the joint tenants? A. Personally and corporately B. Together as individuals C. Individually and severally D. Jointly and severally
D.
When the seller has accepted a buyer's offer to purchase the seller's home, the seller changed one of the terms in the offer. This would be best described as: A. a purchase agreement B. an amendment C. an abrogation D. a counter offer
D.
Which of the following is not an encumbrance A. A lease B. An easement C. A lien D. A homestead
D.
Which of the following is true regarding depreciation of land under federal income tax law? A. Land may be depreciated by the %125 declining balance method B. Owner may deduct the accrued depreciation of land over time C. Land may be depreciated by the sum of the year digits method D. Land cannot be depreciated under federal income tax law
D.
Which of the following is true with regards to the Alquist-Priolo Earthquake Special Studies Act? A. Most agents and sellers have a professional company prepare these disclosures B. It applies to all counties in California C. An earthquake zone normally extends one-quarter of a mile or more in width. D. All the above
D.
Which of the following must be given to every buyer of a condominium unit? A. Copy of the CC&Rs B. Copy of the bylaws C. Copy of the most recent financial statement of the condo association D. All of the above
D.
Which of the following would be an example of functional obsolescence? A. New zoning laws B. Incompatible land use in the neighborhood C. A deteriorated driveway D. A one car garage
D.
Which of the following would not terminate a joint tenancy between two owners? A. Foreclosure on one of the joint tenant's interest B. The sale of one joint tenant's interest ' C. One of the Joint tenants deeding his interest to a third party D. One joint tenant having a trust deed or mortgage recorded against his or her interest in the property.
D.
The initials HVAC in a commercial lease refer to
D. Heating, ventilation, air conditioning system