Chapters 1-15 Final Exam Study Set

How much time, after the buyer signs the loan application, does the lender have to provide a good faith estimate of closing costs (RESPA requirement)?

3 business days

A legal document that informs the tenant that he/she has three straight days to pay all past due rent, vacate the premises, or face an unlawful detainer court action is known as a(n):

3-day notice to pay rent or quit.

An Easement by Prescription requires which of the following to be valid:

5 years continuous use open and notorious use hostile use

A section consists of how many acres?

640

A lease for a property in a town or city can be for any predetermined time, up to how many years?

99 years

Which of the following is considered an institutional lender?

Bank.

The measure of the total value of production (goods and services) in the US is called the:

GDP.

How do owner-occupied homes affect a neighborhood?

Lend economic stability.

A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is known as a(n):

acceleration clause.

What principle does the "market data approach" use to compare similar properties?

Principle of Substitution

According to the SBSA, whose responsibility is it to conduct thorough investigation of the property, both personally and with appropriate professionals?

buyer

Under A, subsection 10. SQUARE FOOTAGE, LOT SIZE, BOUNDARIES, AND SURVEYS, who is responsible for determining the square footage of a piece of property?

buyer

A written instrument that conveys and evidences title is called a:

deed

The lower the loan-to-value ratio, the greater the:

down payment.

Under B, subsection 10. MARIJUANA, CANNABIS, AND METHAMPHETAMINE LABS, the state of California's medical and recreational use marijuana laws are in direct conflict with:

federal law

Which of the following liens are NOT eliminated by a foreclosure sale?

federal tax liens state, county, or city assessments state, county, or city taxes

The two major types of freehold estates are:

fee simple and life estate.

Under C, subsection 8. the OFF-SITE AND NEIGHBORHOOD CONDITIONS includes:

golf course disclosure

A quick way to convert gross income into the approximate value is to use a:

gross rent multiplier.

Emblements are usually:

growing crops, cultivated annually, and on leased land by tenant farmers

An owner can deduct a "loss" on the sale of residential property if that property:

has been converted into rental property.

If a contract is said to be "executory," it:

has not yet been completely performed

"Police Power" is the power to make rulings to control the use of private property for the protection of the public's:

health safety welfare

Under A, subsection 7. PETS AND ANIMALS, odors from animal urine or other contamination may be dormant for long periods of time and then become active because of:

heat

A person who takes a negotiable instrument from another with no knowledge of defect is called a(n):

holder in due course.

The market data method (comparative approach) is best used for:

houses condominiums vacant land

What differentiates an estate for years from an estate from period-to-period is that an estate for years:

is for a fixed period of time.

If property taxes are NOT paid by June 30, the property:

is sold to the state starts a five year redemption period remains undisturbed for five years

With a life estate, the ownership interest is limited to the:

life of any designated person or persons.

The principle that states that the value of the best property in the neighborhood will be adversely affected downward by the value of many lesser properties is known as:

regression.

Zoning is polic power that controls the:

use of property.

Approximately, how many acres are there in a lot 1/2 mile by 1/2 mile?

160

Each year property taxes in California (Proposition 13) are allowed to increase by what percentage?

2%

How many principal base and meridian line intersections does California have?

3

The current award for liquidated damages on a purchase agreement form is a maximum of:

3% of the home purchase price.

In California, a notice to vacate an "estate at will" (rental agreement) requires how many days notice?

30

When a tenant has lived on a property for less than one year, how many days notice is a landlord required to give to terminate a month-to-month lease?

30 days

Proration of expenses and income is based on a month with:

30 days.

How many sections are in a township?

36

A township contains:

36 square miles

One acre equals:

43,560 square feet

How many hours of Commissioner-approved continuing education must a salesperson or broker have in order to renew his or her four-year license?

45 hours.

The documentary transfer tax is charged on money borrowed or cash down payments at the rate of:

55 cents per $500.

Which form "limits and defines the agents scope of duty to inspect normally accessibility areas of the property?

Agent Visual Inspection Disclosure

What type of clause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property?

Alienation clause

What license is issued by the Department of Real Estate?

Broker's license Prepaid rental listing service license Real property securities dealer

The standard title insurance policy in California is the:

CLTA.

A property, to be purchased by a veteran, must have what type of appraisal?

CRV

The group, through its leader, that regulates real estate transactions is called the:

California Department of Real Estate.

The portion of the Business and Professions Code that refers to licensing and subdivisions is called:

California Real Estate Law

Which of the following is NOT a requirement of a valid escrow?

Confirmation of citizenship.

Which of the following is NOT one of the three methods to determine the value of real property?

Correlation approach

Which of the following is NOT one of the four essential elements of value?

Cost.

The first installment of property taxes is due on November 1st. When is it delinquent?

December 10

Which of the following is NOT considered a "demand area" for borrowing money?

Demolition

Civil law requires that both parties to a transaction be informed of the various options they have regarding agency representation. Which form is used for this purpose?

Disclosure Regarding Real Estate Agency Relationship

Which of the following forms are included in CAR's "Listing Package"?

Disclosure Regarding Real Estate Agency Relationship Wire Fraud and Electronic Funds Transfer Advisory Sellers Advisory

Which of the following forms are part of CAR's "Purchase Agreement Package?"

Disclosure Regarding Real Estate Agency Relationship (AD) Wire Fraud and Electronic Funds Transfer Advisory (WFA) Buyer's Inspection Advisory (BIA)

An easement that is "created for and beneficial to" the owner of adjoining or attached lands is which type of easement?

Easement appurtenant.

Which type of depreciation is always incurable, meaning nothing can be done?

Economic obsolescence

If a tenant does NOT leave after expiration of the lease and retains possession, what has occurred?

Estate at sufferenace.

Banks in California are insured by the:

FDIC.

Under A, subsection 4. GEOLOGICAL HAZARDS, the buyer is encouraged to obtain and read the booklet:

Homeowner's Guide to Earthquake Safety

Which appraisal method measures the present worth of future benefits?

Income approach

For income tax purposes, you may deduct what portion of your house payment?

Interest only

What document does a trustee record after being notified by the lender of the trustor's nonpayment?

Notice of Default

Which of the following does NOT require a real estate license for the sale of real property?

Owner of the property

The categories "General Disclosure Duties" and "Statutory Disclosure Duties" can be found at the beginning of which form?

Seller's Advisory

In California, what is the usual method of forcing someone to sell property to pay off a judgment?

Sheriff's sale

Under B, subsection 6. HEATING VENTILATION AND AIR CONDITIONING SYSTEMS, changes to energy efficiency regulations impact the installation, replacement, and some repairs of heating air conditioning units (HVAC). Which level of government are responsible for these regulations?

State and federal

The disclosure that reminds buyers and sellers of the importance of investigating a property before the sale is known as the:

Statewide Buyers and Seller Advisory.

Coordinating subdivision plans and insuring that subdividers comply with the city or county's master plan is the objective of the:

Subdivision Map Act.

What provision in an instrument of finance would permit a change in the priority of liens on a property?

Subordination clause

Which of the following is NOT a test to determine whether an item is a fixture?

Value of the item

What do we call the wood lining on the lower portion of an interior wall with the upper portion wallpapered or covered with another material different from the lower portion?

Wainscoting.

The advisory to obtain phone numbers and account numbers only from Escrow Officers, Property Managers or Landlords at the beginning of the transaction is included in which form?

Wire Fraud and Electronic Funds Transfer Advisory

A property owner living on a river bank acquires land due to the shifting of the river. This process is called:

accretion.

A lot facing a turnaround portion of a dead-end street is called a(n):

cul-de-sac lot.

Depreciation can be:

curable incurable loss in value due to any cause

A deed does NOT take effect until it is:

delivered and accepted.

Under A, subsection 5, INSPECTIONS, in addition to a general inspection, a buyer might be advised to seek additional expertise from all of the following professions, EXCEPT:

dentistsh

A homeowner can deduct from income taxes all the items listed below, except:

depreciation.

A table that illustrates how the highest value is located in the front part of a lot is called a:

depth table.

Minimum requirements of a lease include which of the following:

description of property amount of rent length or duration of the lease

Which of the following are stages of a real property's life cycle?

development maturity decline

The steps of agency disclosure include:

disclose elect confirm

What are included steps in agency disclosure?

disclose elect confirm

Selling an apartment:

does NOT terminate a tenant's lease.

Which of the following is a consideration in determining the "highest and best use" of a property?

is the use physically possible is the use legally permissible is the use financially feasible

With regards to a subdivision, if the Real Estate Commissioner wanted to stop sales or any violations, he or she would:

issue a desist and refrain order

Time, title, interest, and possession are the four essential unities of a:

joint tenancy

When two or more people have identical interests in the whole property with the same right of possession and the right of survivorship, this is called:

joint tenancy

The least desirable lot, bordered on the side by the backs of lots that front on another street is a(n):

key lot.

The percentage of the appraised value that the lender will loan the borrower to purchase a property is called:

loan-to-value ratio (LTV)

The unethical practice of not giving a new listing to the MLS until the listing broker first tries to sell that property through only the other agents within the company is called a:

pocket listing

When a landlord discovers that work is being done on the property without the landlord's consent, he should:

post a Notice of Non-Responsibility on the property.

A written notice that should be given within 20 days of supplying labor or services, and before filing a mechanic's lien, is known as a:

preliminary notice

Someone using another person's land continuously, without paying any property taxes, might qualify to obtain an easement, or legal right to use the land, according to:

prescription

Under D, subsection 3. the EPA'S LEAD-BASED PAINT RENOVATION, REPAIR, AND PAINTING RULE applies to structures built:

before 1978

The best time for a seller to have a termite report issued is:

before the sale of the property.

Under A, subsection 5. INSPECTIONS, what will an inspector NOT inspect during a general inspection?

behind walls or under carpets

Should the trustor default, the trustee may have to sell the property for the:

beneficiary.

You promise to pay a painter $2,000 to paint your house and the painter agrees to do it. What type of contract is formed?

bilateral contract.

A voluntary lien placed over more than one parcel is known as a:

blanket encumbrance

A voluntary lien, for money owed, placed over more than one parcel is called a(n):

blanket encumbrance.

A false advertisement (Section 10177 of the Business and Professions Code) that gives the impression that the agent is the owner of the property is called a:

blind advertisement.

Any net cash or net mortgage relief that a participant in an exchange might receive in addition to the actual property is known as:

boot.

The trustor is also known as the:

borrower.

Any escrow amendment must be signed by the:

both parties (seller and buyer)

If one of the parties doesn't go through with a contract (nonperformance), it is called a:

breach.

A licensed real estate broker working in the capacity of a salesperson for another broker or corporation is known as a:

broker associate.

With regards to the closing escrow statement, the seller's and buyer's respective totals:

can be different.

Another term for the income approach is:

capitalization approach.

A manufactured home is transferred with a:

certificate of title

A recorded history of a specific property is called a:

chain of title.

Which of the following non-profit organization's real properties are usually exempt from property taxes?

charitable religious medical or educational

According to A, subsection 9. SOIL AND GEOLOGIC CONDITIONS, who is most suited to evaluate soil stability?

civil or geo-technical engineers

Mixing the funds of a principal and a licensee is known as:

commingling.

Property acquired by a husband and wife during marriage and is split 50/50 is called:

community property

All property acquired by a husband and wife during their marriage other than separate property is called:

community property.

The approach that takes the current selling prices of similar properties and adjusts these prices for any differences is called the:

comparative approach.

In a contract, anything of value given by one party to another party to make the agreement binding is known as:

consideration.

The amount of rent stated in the rental agreement is the:

contract rent.

A non-listing broker with whom the listing broker agrees to share a commission (not necessarily 1/2 and 1/2) if the non-listing broker sells the property is:

cooperating broker

Which of the following is used to change the original terms of the purchase agreement?

counter offer form

A title company could make a tile search by searching the records of the:

county clerk's office county recorder's office federal lands office

In a seller's market, decreased supply and increased demand causes:

prices to rise.

The person who hires or employs an agent to work for him or her is known as:

principal.

In California, any person in real estate who is acting in return for compensation from others, must have a Department of real estate license to:

sell or offer to sell buy or offer to buy solicit prospective buyers and sellers

Under D, subsection 1. DEATH ON THE PROPERTY, if the buyer has any questions about a death that may have occurred on the property, he or she should submit a written request to the:

seller

In a real estate transaction, the grantor is the:

seller.

The 1% loan fee on FHA loans is usually paid by the:

seller.

A utility company obtains an easement in gross to run power lines over your property. As a result, your property would become a:

servient tenement

A buyer will not pay more for a particular property if he/she can buy an equally desirable one for less, according to the principles of:

substitution.

"Eminent domain" allows the government to:

take private property for compensation.

The lessee is the:

tenant

The term that best describes a construction loan is a(n):

interim loan.

What is NOT an example of functional obsolescence?

Hole in the roof

Which type of will, unless signed with an "X," requires NO witnesses?

Holographic

Which of the following is an example of economic obsolescence?

Rundown neighborhood

Personal property that is permanently affixed to real property is called:

a fixture

An agreement that is made either verbally or in writing is known as an:

express contract.

Some of the ways in which contracts may be classified include:

valid voidable void

Which of the following is a classification of a contract?

valid, unenforceable, voidable

Which legal document allows a sheriff to physically evict a tenant?

writ of possession

The restriction on the use of private property by the local government agency is called:

zoning.

When a salesperson chooses to leave the employ of a broker, that broker must notify the DRE within:

10 days

Once recorded, a judgment is good for:

10 years

What term refers to the amount left after deducting what is owed on a property from the market value of the property?

Equity

Of the following government backed loans, which is insured?

FHA

Which of the following is TRUE concerning the salesperson's exam?

150 multiple choice question test

A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:

"subject to" provision or contingency clause.

The homeowner's property tax exemption will reduce an assessed valuation of $200,000 to:

$193,000.

A single person can avoid paying capital gains taxes on up to what amount of profit from the sale of a residence?

$250,000

The maximum award of the recovery fund in any one occurrence is:

$50,000.

Which of the following is FALSE concerning the broker's exam?

$500 fee

A married couple can exude from taxable income up to what amount of profit from the sale of a residence?

$500,000

A farm 6 miles square has how many townships?

1

A lender charges an origination fee, which includes points. One "point" is equal to:

1% of the loan amount

Real estate laws in California apply to:

1- to 4-unit residential property commercial property vacant land

Real estate laws in California related to real property apply to:

1- to 4-unit residential property commercial property vacant land

What is the maximum length of a real estate license of renewal for an applicant on a list of persons who have not complied with a court order to provide child support payments?

150 days

Which of the following statements is FALSE?

A trust deed is an instrument used to transfer personal property.

Most lenders require buyers (owners) to obtain an extended title insurance policy, known as a(n):

ALTA policy

Which of the following is NOT one of the basic appraisal principles?

Accession

What type of loan allows the interest rate to "fluctuate" depending on money market conditions?

Adjustable rate mortgage

Smith sold Blackacre Estate to Willis. Before he sold it, Blackacre had an appurtenant easement across Whiteacre Estate, owned by Johnson. When Willis tried to use the easement, Johnson protested. Which is true?

An appurtenant easement always passes when the property is sold.

Which of the following can transfer ownership of trade fixtures and personal property?

Bill of Sale

In Northern California, the buyer usually pays for escrow fees. Who usually pays for them in Southern California?

Both buyer and seller.

Which of the following is NOT normally prorated?

Broker's commission

The standard fire insurance policy insures against which perils?

Fire and lightning.

A purchaser must read a final public report and sign a receipt for it. How long must the subdivider keep this required receipt?

For three years

Which of the following is NOT a party to a trust deed?

Grantor

Which of the following is FALSE concerning the Annual Percentage Rate (APR)?

It is expressed as a weekly rate.

Of the following, which is NOT true of a grant deed?

It is used primarily to clear a "cloud on title" from the records.

What distinguishes a will from other types of property transfers?

It only becomes effective at death

Grantor C conveys a large house and land to his daughter and son-in-law to be theirs as long as they are married. One year later, they are divorced. What happens to the property?

It reverts back to C.

What is always true about a counter offer?

It terminates the previous offer.

When do property taxes become a lien (before the fiscal year starts)?

January 1

What type of ownership has definite rights of survivorship?

Joint tenancy

Federal discrimination laws evolved from:

Jones v. Mayer Title VIII of Civil Rights Act of 1968 13th Amendment to the US Constitution

A "REALTOR" is a member of which trade association(s)?

Local Board of REALTORS California Association of REALTORS National Association of REALTORS

Which of the following is NOT a section title used on the SBSA?

Local suggestions and opinions

FHA and VA requirements that are often more restrictive than the building codes are called:

MPRs

Which appraisal method uses the principle of substitution?

Market data approach

Regulatory authority of the housing and construction industry is NOT accomplished through:

Mello-Roos bonds

Municipal bonds issued to fund streets, sewers and other infrastructure needs before a subdivision is built and paid for by the purchaser are called:

Mello-Roos liens

FHA backed loans are protected by:

Mortgage Insurance Premiums (MIPs)

Which lenders usually lend their own money so they can originate, finance, and close first trust deeds or mortgages secured by real estate?

Mortgage bankers

The real estate trade association whose members are known as Realtists is the:

National Association of Real Estate Brokers

Any licensee working in the real estate field must be a member of which group?

No affiliation is necessary

Which of the following is NOT a method of creating real property?

Plugging it in

Which of the following is NOT a type of depreciation?

Political

Which of the following is FALSE concerning purchase agreement contracts?

Promissory notes and post-dated checks are never acceptable as consideration.

BUILDING PERMITS, ZOMING AND CODE COMPLIANCE information can be found under:

Property Use and Ownership

Which of the following would be considered operating expenses to be subtracted from the gross income of a property when determining its value through the income capitalization approach?

Property taxes

A formal disclosure of the important facts about a subdivision is called the:

Public Report

Which of the following would NOT be applicable to RESPA requirements?

Purchase of a shopping center

What's included in the Residential Listing Agreement (RLA) that may allow a broker to collect commission even after the termination of the listing?

Safety Clause

Which of the following is a document conveying title with NO warranties, expressed or implied?

Quitclaim deed

Which of the following restrictions is illegal and unenforceable?

Race

Who has the power to revoke, restrict, or suspend a real estate license?

Real Estate Commissioner

Which form identifies items of value attached to the structure or land and states whether these items are operational?

Real Estate Transfer Disclosure Statement

In addition to a broker's license, what type of endorsement must a broker have to sell promissory notes or sales contracts?

Real Property Securities Dealer (RSPD)

Which of the following is FALSE concerning real estate licenses?

Real estate licenses are valid for the life of the licensee.

A property owner CANNOT deduct depreciation on what type of real property?

Residential

With regards to zoning, what does the symbol "R" usually designate?

Residential areas

If you sell your house, how do you determine your gain or loss?

Subtract adjusted cost basis from adjusted sale price

Which of the following is NOT a basic right of ownership included in the "Bundle of Rights"?

Sustainability

Which of the following is TRUE concerning fee appraisers?

The are self-employed

With regards to depreciation of real property, which of the following is TRUE according to income tax laws?

The land cannot be depreciated, but the improvements can.

Susie owns a real estate based upon her own life. She leases the property to a tenant on a three-year lease. Susie, the life tenant, dies two years later. What happens to the lease?

The lease is terminated.

According to SBSA, which of the following statements is true?

The physical condition of the land and improvements being purchased are not guaranteed by seller or brokers.

From what document are escrow instructions are usually drawn?

The purchase agreement

Which of the following is FALSE concerning options?

They require that the optionee (purchaser) always go through with the purchase.

What do we call a borrower who secures a loan through a trust deed?

Trustor

Which system may be used for legal description purposes?

US Government survey, Metes and bounds, and Lot, block, and tract

Which of the following requires NO cash down payment on loans up to $679,650 in some areas of California?

VA

Any individual who wants to operate a real estate office must have:

a broker's license.

Proration of prepaid taxes is:

a credit to the seller.

An agency relationship does not require which of the following?

a payment of consideration

In addition to the FHA, a mortgage loan may be insured by:

a private mortgage insurance (PMI)

A remedy for breach can be:

a unilateral rescission, an action for damages, and an acceptance of breach.

If tenant just moves out or vacates the premises without formal surrender and never returns, it is called:

abandonment.

A signed or verbal statement by the named person that he/she has signed that document of his/her own free will is known as:

acknowledgement.

An area of and that contains 43,560 square feet is called a(n):

acre.

Which of the following is an encumbrance that affects the physical use of real property?

an easement, a building restriction, and an encroachment

A wrongful unauthorized placement of improvements or permanent fixtures on a property by a non-owner of that property is called:

an encroachment.

Which of the following is TRUE concerning appraisals? They are:

an opinion of value for a specific property and as of a certain date based on judgment and professional experience

Consideration can best be described as:

anything of value.

A transfer of an ENTIRE lease from one person to another is known as an:

assignment.

Compared to ordinary income tax rates, capital gains are taxed:

at a lower rate.

RESPA requires that the lender provide the buyer with a good faith estimate of closing costs:

at the time of the loan application, or within 3 business days.

Any sale of a substantial part of the inventory of a business is known as a:

bulk transfer

An encumbrance:

burdens the property

A city tax on a real estate brokerage firm's gross receipts is called a:

business license tax.

In what way can a real estate agency relationship be created?

by ratification by express or written authority by estoppel

What agency relationship requires the informed consent of both parties (buyer and seller)?

dual agency

Which of the following is NOT a lien?

easements

Sections in a township run:

east to west

The amount that a property should rent for in the current open market is called the:

economic rent

A person who works under the direct control and supervision of the employer is known as a(n):

employee.

If Bob places improvements and permanent fixtures on property that he does not own, Bob has created an:

encroachment

A lien (money owed) on real property makes the property:

encumbered.

Which of the following is NOT considered a basic element of a contract?

enforcement

A woman CANNOT receive title to real property by:

escheat

Which of the following is considered an employee of an escrow company?

escrow officer escrow holder escrow agent

An estate where a tenant continues to retain possession, without the landlord's consent, after the expiration of the lease term is called an:

estate at sufferance.

A lease for a fixed (predetermined) period of time is an:

estate for years.

An interstate, share, right or equity in real estate that varies from the minimal right of a renter to the maximum right of full owner is called a(n):

estate.

The legal process of removing a tenant because there is a breach of the lease or rental agreement is called a(n):

eviction.

Which of the following would be a reason to terminate an agency relationship?

expiration of term destruction of property death of the broker

A written contract between two parties is:

express and bilateral.

The Real Estate Commissioner's Office (white) Report is the:

final subdivision public report.

Items of personal property that are attached to, or incorporated into, the land in such a manner as to become real property are called:

fixtures.

The expanded portion of the concrete foundation is the:

footing.

Which of the following would be considered a tort?

fraud negligence secret profit

When a person misrepresents a material fact, knowing that it is not true, or is carelessly indifferent to the truth of the stated facts, it is known as:

fraud.

All of the following real estate terms are closely related, except:

frontage.

Loss of value due to outmoded style of non-usable space is called:

functional obsolescence.

A judgment is best described as a:

general lien

The sale of real estate in which the payments for the property extend over more than one calendar year is called a(n):

installment sale.

If from the ridge board, the highest point of the roof, a roof slopes downward in four directions, it is referred to as a:

hip roof.

A Fiduciary relationship requires which of the following with the principal:

honesty, loyalty, integrity.

Real property is best described as:

immovable

You enter the coffee shop next door where you have an account, pour yourself a cup of coffee, hold it up to show the manager and wave as you leave the store. This would be an example of a(n):

implied contract.

Which of the following can discharge a contract?

impossibility of performance full performance operation of law

Moneys collected in advance from borrowers to assure the payment of recurring costs are known as:

impound accounts.

Anything attached to the land, such as buildings, fences, walls, walks and shrubs, are called:

improvements.

A person who is judged to be of unsound mind is known as a(n):

incompetent.

An exclusive right to occupy and use property on a temporary basis is known as a:

leasehold.

"The right to use a property for a specific period of time" describes a:

less-than-freehold estate

The practice of purchasing real estate using a small amount of your own money and a large portion of borrowed funds is knowns as:

leverage.

A document that uses a property to secure the payment of a debt or that discharge of an obligation is called a(n):

lien.

Which of the following is NOT a type of leasehold estate?

life estate

The greatest source of shopping center financing is:

life insurance companies

A notice of a pending lawsuit that clouds title is called a:

lis pendens

A contract to employ a broker as an agent, to do certain things for the owner/seller and serve as an employment contract for personal service is called a:

listing

A contract to employ a broker as an agent, to do certain things for the owner/seller is known as a(n):

listing.

Which of the following is NOT a way to terminate a lease?

making monthly payments

In the income approach the net income divided by the capitalization rate equals:

market value.

A lien filed against a property by a person who was not paid after furnishing labor or materials for construction work on that property is called a(n):

mechanic's lien.

An association of real estate brokers that provides a pooling of listings, recent sales, and the sharing of commissions on a specified basis is called a:

multiple listing service

Any contract that can't be performed within one year from the date of signing:

must be in writing.

The replacement cost approach to appraisal is best used for:

new construction.

According to the Business and Professions Code 10176, which of the following is NOT grounds for license revocation or suspension?

no commissions earned for a year.

Easements are always:

non-money encumbrances

The California Fair Employment and Housing Act is also known as the: Unruh Civil Rights Act Open Housing Law Federal Civil Rights Act of 1968

none of the answers are correct.

Ranges are 6-miles increments measured (and described) from the north-south meridian running:

north and south

A woman purchases an adjacent lot to the one she already owns, combining the two lots. This is known as:

plottage.

When an existing contract is replaced with an entirely new contract, it is called:

novation

If the time of closing is not specified, escrow will close:

on the date the documents are recorded.

An authorization to sell a property which may be given to several brokers, or the property may be sold by the owner is called:

open listing.

Boards nailed across rafters, as a foundation for the roof covering, are called:

open sheathing.

In a landloard/tenant situation, who would be called the lessor?

owner

Who can petition for zone changes?

owners subdividers government agencies

The trustee issues a "reconveyance deed" when the promissory note is:

paid in full.

If a retail store rents for $5000 a month or 12% of the gross sales, the tenant has what type of lease?

percentage lease

A "bill of sale" transfers title to:

personal property

Minerals, oil, and gas, once extracted, are considered:

personal property

The seller of a 10-year-old condominium must provide, to the buyer, all the following, except:

pink public report.

The basic instrument used to evidence an obligation or debt is a:

promissory note.

The rights and interests that a person has in the thing owned is the definition of:

property

A "net lease" is one in which the lessee pays for:

property taxes, insurance, and operating expenses

"Front footage" is the:

property width in the front along the street.

A subdivider is always required to give a copy of the Commissioner's Public Report about a project to a(n):

prospective purchaser interested realtor fellow developer who requests one

A landlord's responsibilities include:

protecting tenant's health and safety obeying fair housing laws giving 24 hours notice before entering rental

Sloping members of a a roof used to support the roof boards and shingles are:

rafters

When you authorize a broker to act for you "after" he or she has already done so, it is known as:

ratification

Which of the following is NOT a method of becoming an emancipated minor:

reaching the age of 16 years old.

A sale of a business (business opportunity) by a real estate agent can include which of the following?

real estate personal property goodwill

The completion of what college-level course is required to qualify for a real estate salesperson examination?

real estate principles real estate practice one other acceptable course

Anything permanently attached to the land is called:

real property.

The process of purchasing land in a run-down area and constructing new buildings, parks, and other new construction is called:

redevelopment.

Trade fixtures are:

removable, forms of business furniture and personal property

The amount of money paid for the use of a property is known as:

rent.

What is the most common form used for the above contract?

residential listing agreement

The capitalization rate is a:

return "on" and "of" investment.

Appurtenant means the ownership of the item:

runs with the land

A transaction where an owner sells his or her property to another party and leases the property from the new owner for a stated period of time is known as a:

sale-leaseback.

Which of the following uses of an escrow are highly recommended?

sales of real property loans exchanges

Compensation made by the payment of money or the return of property, thus clearing a lien from the record, is known as:

satisfaction of judgment

When determining the starting time for a mechanic's lien, it is important to know when the work began, known as the:

scheme of improvements

Under E, subsection 11. CONTRACT RELATED ISSUES AND TERMS discusses all of the following, EXCEPT:

schools

The United States Government Survey System has to do with:

sections and townships

Providing the landlord with funds to pay for damages or unpaid rent when the tenant vacates is called a(n):

security deposit.

Which of the following real estate terms best describes mortgages and trust deeds?

security devices

The primary purpose of the master plan is to set forth existing and future matters concerning:

seismic safety districts streets and highways

Because they are "asking prices" in most cases, listings:

set a ceiling on market value

If there is a discrepancy between local and state building codes, the subdivider will use the code that:

sets the highest standard of safety.

Local improvements, like street lights and sewers, are paid for by property owners through:

special assessments

A small area that is zoned differently from the surrounding area is an example of:

spot zoning.

The "nominal interest rate" is:

stated in the note

When a person temporarily rents out an apartment on which he or she holds a lease, it is called a:

sublease

Which of the following is NOT a remedy for breach of contract?

substitute performance

Buyer and seller are advised that confirming the exact location of easements, access, and encroachments on or to the property may be possible if:

the buyer hires a licensed surveyor during buyer's inspection contingency period

Under B, subsection 13. RETROFIT, BUILDING REQUIREMENTS, AND POINT OF SALES REQUIREMENTS, the buyer and seller are advised that state and local law may require:

the installation of operable smoke detectors bracing or strapping of water heaters a written statement of compliance delivered to the buyer

An estate at sufferance does NOT require a notice of termination because:

the lease has already expired.

A signed written contract takes precedence over oral agreements or prior written agreements based on:

the parol evidence rule.

An easement that does NOT specify a special area for a right-of-way is known as an:

unlocated easement

Through the process of escheat, the deceased's property passes to:

the state.

When the general level of prices decreases:

the value of money increases.

Under E, subsection 4. HOME WARRANTY, which of the following is true regarding warranty plans?

they can be purchased before escrow closes they can be purchased after escrow closes the seller can purchase one during the listing period

Another term for the trustee is:

third party

Township lines divide the land into a series of east-west strips called:

tiers.

A required form, provided by the seller, which identifies items of value attached to the structure or land and states whether these items are operational is called a(n):

transfer disclosure statement.

An assignment:

transfers a person's right in a contract.

Items that are NOT included in the standard title insurance policy (CLTA) include:

undisclosed grants or liens mining claims nonpublic record liens

An increase in value of real estate due to NO effort on the part of the owner is a(n):

unearned increment.

Under E, subsection 3. ESCROW FUNDS, escrow companies cannot disperse funds:

unless there are sufficient "good funds" to cover the disbursement