Quiz 6 (RE PRACTICE)

9. After the sale, a tenant with a valid lease: a. is automatically evicted from the premises. b. may remain in possession after the sale. c. is entitled to live rent free for one year after sale of the property. d. none of the above.

b (p. 191)

13. Statute requires the seller to inform the buyer that information is available regarding the location of registered: a. Marijuana dispensaries. b. sex offenders. c. urgent care clinics. d. convicted felons.

b (p. 194)

15. As an agent, when a buyer asks you how he or she should take title, you: a. should first get a signature on the purchase offer. b. should never advise how to take title. c. should charge a fee for title advice. d. are obligated to give your expert advice as to how to take title.

b (p. 197)

16. Broker compensation is specified in: a. the purchase agreement. b. a separate written agreement. c. the "Allocation of Costs" form. d. the contingency removal documents.

b (p. 202)

18. Mediation is: a. a binding decision with no right to appeal. b. not binding. c. more complicated than a conventional court proceeding. d. none of the above.

b (p. 205)

2. In California, it's customary to have a title insurance company: a. conduct a title search. b. prepare a preliminary report. c. issue a policy of title insurance. d. all of the above.

d (p. 169)

3. The most commonly used real estate purchase contract in California is: a. the "California Residential Purchase and Agreement and Joint Escrow Instructions." b. published by the California Association of Realtors(CAR)®. c. created by real estate attorneys working for the buyer. d. both a and b are correct.

d (p. 169)

5. In a purchase contract, which of the following is usually considered a financing contingency? a. Obtaining a deposit b. Obtaining the down payment c. Obtaining closing costs d. None of the above.

d (p. 183)

7. "Earnest money" deposit funds can be delivered to: a. the trust account. b. the seller. c. the escrow holder. d. any of the above.

d (p. 183)

12. The Transfer Disclosure Statement and the Natural Hazard Disclosure forms are considered: a. warranties. b. part of the contract. c. both a and b. d. none of the above

d (p. 194)

17. According to the California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA), mediation is required regardless of whether which parties agree to arbitrate or not? a. Buyers b. Sellers c. Brokers d. all of the above

d (p. 205)

11. Which of the following is considered a natural hazard zone? a. Special Flood Hazard Area b. Potential Flooding (Inundation) Area c. Very High Fire Hazard Zone d. All of the above

d (pp. 193-194)

20. In order to be enforceable, a contract has to be: a. approved by the CalBRE. b. processed by escrow. c. accepted by all parties in its entirety. d. approved by CAR.

c (p. 207)

4. If there is a contradiction between the written or typed words and the printed words in a purchase contract, the words given less importance are the: a. printed words. b. written words. c. typed words. d. none of the above.

a (p. 170)

6. Unless instructed otherwise in writing, deposit funds received must be disposed of within: a. three business days after acceptance. b. five business days after acceptance. c. 30 business days after acceptance. d. 90 business days after acceptance.

a (p. 183)

10. If the residential property was constructed before 1978, the seller must provide the buyer with a(n): a. lead-based paint notice. b. latex-based paint notice. c. historic landmark notice. d. blighted neighborhood notice.

a (p. 193)

19. Arbitration is: a. a binding decision with no right to appeal. b. not binding. c. more complicated than a conventional court proceeding. d. none of the above.

a (p. 205)

14. After an inspection of the property, preferable by a professional, the buyer may: a. cancel the purchase agreement. b. request the seller to make repairs. c. either a or b d. neither a or b

c (p. 196)

1. A contract provision that requires a specific action to take place for the contract to be considered enforceable is a(n): a. alienation clause. b. addendum clause. c. contingency clause. d. novation clause.

c (p. 167)

8. Paying for wood destroying pest (termite) inspection: a. is always the responsibility of the buyer. b. is always the responsibility of the seller. c. is negotiable. d. none of the above.

c (p. 188)