Real Estate Practice Quiz - Chp 1,2,3

A real estate business that is partnership can have more than one office location, provided A. A broker partner obtains an additional license for each location B. All partners are real estate licensees C. There is a designated broker-officer D. There is at least one partner at each location

A. A broker partner obtains an additional license for each location

A salesperson owns 25% of the outstanding shares of Rollo Realty, Inc. and the broker owns the remaining shares. This division of ownership is A. Acceptable B. Mandated C. Discouraged D. Prohibited

A. Acceptable

A new broker opens a brokerage office and immediately places an ad in the local newspaper: List your House with me and I Will Pay You $500 at Closing. This practice is A. acceptable B. Mandated C. Discouraged D. Prohibited

A. acceptable

Something that is used with the land for its benefit, such as a roadway or a waterway, is known as A. an appurtenance. B. an encumbrance. C. personal property. D. a fixture.

A. an appurtenance. An appurtenance to land is anything used with the land for the benefit of its owners, such as a roadway, an easement, right of way, or condominium parking space.(Page 45)

Personal property is usually transferred by a A. bill of sale. B. deed. C. will. D. purchase contract.

A. bill of sale. Ownership of real property is usually transferred by an instrument called a deed. Personal property is usually transferred by a bill of sale.(Page 48)

The right of possession is restricted under a A. fee simple subject to a power of termination. B. life estate with a right of reversion. C. freehold estate. D. fee simple qualified.

A. fee simple subject to a power of termination. Fee simple subject to a power of termination is ownership in which the right of possession is restricted in some way by some limitation or condition.(page 63)

Real estate licenses are renewable for a period of A. for four years. B. for three years. C. for two years. D. one year.

A. four years. The full term on renewal of a broker's or salesperson's license is four years.(Page 20)

Someone who receives real property is known as the A. grantee. B. devisor. C. mortgagee. D. grantor.

A. grantee. A conveyance of real estate is called a grant; the person conveying the property is the grantor, and the person receiving the property is the grantee.(page 65)

A real estate salesperson is supervised by A. the employing broker only. B. the seller. C. the buyer or seller. D. any licensed broker.

A. the employing broker only. The employing broker is held accountable for the salesperson's conduct in performing business activities.(Pages 5-6)

When a real estate license expires, licensed activity must cease but the license may be renewed up to A. two years later. B. three years later. C. one year later. D. four years later.

A. two years later. A license that is not renewed before it expires may be renewed at any time up to two years from the expiration date. All licensed activity must cease before the license is renewed and a late renewal fee will be required. (page 21)

How many sections are in a township? A. 18 B. 36 C. 6 D. 24

B. 36 In the rectangular survey system, land is measured, divided, and numbered in each direction from the point of intersection of the baseline and the meridian in townships, each of which is an area of six miles square (36 square miles) made up of 36 townships of one square mile each.(Pages 52-53)

California's Real Estate Law is found in the A. Financial Code. B. Business and Professions Code. C. Government Code. D. Civil Code.

B. Business and Professions Code. California legislation has been compiled into a series of books called codes. The Real Estate Law is Division 4 of the Business and Professions Code.(Page 2)

When a broker exercised his option to buy Whiteacre, he presented to the owner of Whiteacre a written statement of his expected profit in the transaction. The seller agreed in writing to proceed with the sale. This conduct A. acceptable B. Mandated C. Discouraged D. Prohibited

B. Mandated

The Real Estate Law is found in A. The Licensing Code B. The Business and Professions Code C. The Health and Safety Code D. The Corporations Code

B. The Business and Professions Code

The Real Estate Commissioner reports to A. The California Bureau of Real Estate B. The Governor C. The Department of Housing and Urban Development D. The Legislature

B. The Governor

Real property includes A. appurtenances to land. B. all of these. C. fixtures. D. land.

B. all of these. The California Civil Code definition of real property includes land, fixtures, anything incidental or appurtenant to land, and anything immovable by law.(Page 43)

Community property is A. all property acquired during marriage. B. all property acquired during marriage that is not separate. C. all property acquired by the husband during marriage. D. the only form of ownership during marriage.

B. all property acquired during marriage that is not separate. Community property is real or personal property acquired by either spouse during marriage or by registered domestic partners during that relationship. Community property cannot be sold, mortgaged, or leased for one year or longer without agreement of both spouses or registered domestic partners.(page 69)

In medieval England, the highest form of ownership was the A. estate for years. B. freehold estate. C. leasehold estate. D. life estate.

B. freehold estate. In medieval England, the freehold estate was the highest form of land ownership and the owner could use the property in any way without being subject to the demands of an overlord.(page 62)

A real estate broker's license may be obtained by any of the following except a A.partnership. B. limited liability company. C. sole proprietorship. D. corporation.

B. limited liability company. There is no provision in the Business and Professions Code to allow a limited liability company to obtain a real estate license.(Pages 4-5)

There are three principal baselines and meridians in California. The intersection of the Humboldt Baseline and Meridian is in A. a state other than California. B. northern California. C. central California. D. southern California.

B. northern California. The Humboldt Baseline and Meridian were established on Mt. Pierre in Humboldt County in 1853. The other two baseline and meridians were established a few years earlier.(Page 52)

Ownership in severalty is A. a joint tenancy. B. separate ownership. C. community property. D. concurrent ownership.

B. separate ownership. Ownership in severalty, also called separate ownership or sole ownership, is ownership by one person. The property owner is the only person to receive the benefits (and responsibilities) of ownership.(page 66)

An officer of Ajax Corporation, which is not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. The officer received a commission on the sale in addition to his normal salary. The officer of Ajax Corporation A. did not need a real estate license for the deal B. should have had a real estate license C. is exempt from licensing requirements D. None of these

B. should have had a real estate license

A broker is so busy that he never has the time to return the phone calls of his principals. He prefers to spend his time in the filed making sales and acquiring new listings. This practice is A. acceptable B. Mandated C. Discouraged D. Prohibited

C. Discouraged

The broker-officer of XYZ Realty, Inc., does not like the overly aggressive sales tactics of XYZ's salespeople but has not reprimanded them because business is so good. The broker's conduct is A. acceptable B. Mandated C. Discouraged D. Prohibited

C. Discouraged

Which of the following is NOT considered concurrent ownership? A. Joint tenancy B. Community property C. Ownership in severalty D. Tenancy in common

C. Ownership in severalty Concurrent ownership is ownership by more than one person at the same time. Ownership in severalty is ownership by only one person.(page 66)

Every real estate broker must be licensed by the Bureau of A. Housing. B. Corporations. C. Real Estate. D. State.

C. Real Estate. The Bureau of Real Estate licenses real estate brokers in California.(Page 3)

A holder of which of the following ownership interests can devise her share of the property to someone else? A. Community property with right of survivorship B. Joint tenancy C. Tenancy in common D. Tenancy in partnership

C. Tenancy in common A tenant in common can give away, sell, or devise (will) her share of the property to someone else. The recipient receives the share of the tenant in common and full right of possession.(Page 67)

The sale or transfer of goods ordinarily held for sale in the course of business is governed by A. the Business Opportunity Code B. The Commercial Transfer Law C. The Uniform Commercial Code D. The Real Estate Law

C. The Uniform Commercial Code

The applicant for a real estate salesperson's license must complete how many college-level courses before taking the licensing examination? A. Seven B. Five C. Three D. One

C. Three An applicant for a real estate salesperson's license must complete three college-level courses before taking the licensing examination.(Page 19)

The rectangular survey system is also known as the A. Torrens system. B. metes and bounds system. C. U.S. government survey system. D. lot, block, and tract system.

C. U.S. government survey system. The rectangular survey system is also called the section and township system, or the U.S. government survey system, and is used by the United States Surveyor General to survey public lands.(Page 51)

The Real Estate Law allows a business opportunity to be sold A. with a special endorsement. B. by a PRLS licensee. C. by a real estate licensee. D. by a financial planner.

C. by a real estate licensee. A real estate licensee may represent others in the purchase or sale of a business. Business brokerage is a growing area of real estate practice. (Page 14)

Under the Real Estate Law, a real estate salesperson works for a broker as an A. agent. B. independent contractor. C. employee. D. associate broker.

C. employee. For purposes of the Real Estate Law, a salesperson is always considered the employee of the broker.(Page 5)

Under Spanish rule, land was owned primarily by the A. peasants. B. missions. C. king. D. conquistadors.

C. king. In 1513, Balboa claimed all lands "washed by the Pacific Ocean" for the King of Spain.(Page 38)

If a real estate license is NOT renewed before it expires, the licensee A. Is allowed to complete transactions in progress B. is allowed to finish a transaction that is substantially complete C. must cease all real estate activities D. may act under the authority of another agent's license for a period not to exceed 60 days

C. must cease all real estate activities

A real estate licensee can offer a mobile home for sale that is A. in a manufacturing plant, ready for delivery B. transportable under an exemption from the Vehicle Code C. presold D. In a location where it can legally remain for one year

D. In a location where it can legally remain for one year

A broker has an exclusive listing agreement with a property owner. The listing will terminate "when the parties agree." This practice is A. acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

A broker routinely places earnest money deposits in his personal account for overnight safe keeping. This practice is A. acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

A broker wants to help out his neighbor's son, who recently acquired a B.A. in history from Back East University. The broker hires the graduate to show the property to prospective buyers. Because the new employee has no real estate license, the broker handles all of the negotiating. This practice is A. acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

A couple desperately wants to move to Pine Bend, and they like the seller's house, which is listed with a broker. The couple tells the broker they will "make it worth his while" if he can persuade the sellers to accept their offer, and they send an expensive food basket to the broker as a sign of their good faith. The broker neglects to mention this to the sellers. This practice is A. Acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

A house is for sale following a murder in the house six months earlier. A salesperson, showing an out-of-town prospect through the house, decides to keep information about the murder to himself. The salesperson's conduct is A. acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

A salesperson is part owner of Rollo Realty, Inc. In the broker's absence, the salesperson frequently reviews the work of sales associates. This is A. Acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

A salesperson is selling the Greenacre Estate. An offer has been accepted, and the closing will take place in two weeks. While the owners are out of town, the buyer asks if the closing can be put off for one day. The salesperson agrees on behalf of the owners, for she is sure they will not object. The salesperson's conduct is A. acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

After attending a get-rich-quick real estate seminar, an attendee wants to buy a house "cheap." She tells a broker that she will offer $50,000, with seller financing and no down payment, on the Monroe Street house, which has an asking price of $125,000. The broker presents the offer with one of his own for $85,000, telling the owners that unexpected market conditions make their asking price unrealistic. His conduct is A. acceptable B. Mandated C. Discouraged D. Prohibited

D. Prohibited

Which of the following does NOT require a real estate license? A. Taking a listing B. Presenting an offer C. Negotiating a lease D. Selling your own property

D. Selling your own property It is not necessary to have a real estate license to sell your own property. (Page 16)

The highest form of modern land ownership is known as A. an estate for years. B. a life estate. C. a real estate trust. D. a fee simple absolute.

D. a fee simple absolute. The highest (most complete) form of ownership is a fee simple absolute, in which right of possession is not restricted.(page 63)

The test for a fixture does NOT include A. intent of the parties. B. relationship of the parties. C. method of attachment. D. origin of manufacture.

D. origin of manufacture. The test for a fixture (MARIA) includes the method by which the thing is affixed; adaptability of the thing for another use; relationship of the parties, intent in using the thing, and agreement of the parties.(Pages 46-47)

Today, more than 50 percent of California land is owned by the A. federal government. B. municipalities. C. state government. D. private sector.

D. private sector. Of the more than 100 million acres of California's total area, government entities own about 49%, leaving the majority of ownership in the private sector.(Page 41)

The term real estate means the same thing as A. ownership. B. intangible personal property. C. personal property. D. real property.

D. real property. In California, the term real property is synonymous with the term real estate.(Page 43)

The right of the future holder of what is currently a life estate is a A. fee simple subject to a power of termination. B. fee simple conditional. C. fee simple defensible. D. remainder.

D. remainder. The owner of a life estate has the right to possession and use of property but only as long as the life of an identified person(s). If the right of possession and use goes to a third person when the life estate ends, rather than returning to the grantor of the life estate, that person has a remainder interest while the life estate is in existence and a fee simple estate on termination of the life estate.(page 64)

The four unities of joint tenancy do NOT include A. time. B. possession. C. interest. D. severance.

D. severance. The four unities of joint tenancy (TTIP) are: unity of time, title, interest, and possession.(page 68)

A section is a. 640 acres. b. six square miles. c. 5,000 feet by 5,000 feet. d. three leagues.

a. 640 acres.

When doing business in California, a corporation chartered in California is a. a domestic corporation. b. a foreign corporation. c. a Real Estate Investment Trust. d. a general partnership.

a. a domestic corporation.

If Greenacre is deeded by Lou to Mary for Mary's life, Mary has a. a life estate. b. an estate in remainder. c. an estate in reversion. d. no interest.

a. a life estate.

Absolute control, as well as absolute liability, belongs to a. a sole proprietor. b. a corporate shareholder. c. a limited partner. d. a trustee.

a. a sole proprietor.

A fee simple estate and a life estate are a. freehold estates. b. fee simple estates. c. leasehold estates. d. estates of tenancy.

a. freehold estates.

The owner of a life estate can a. sell only the life estate. b. never will the life estate. c. sell the fee simple estate. d. sell both the life estate and the fee simple estate.

a. sell only the life estate.

4. Land disputes over the Spanish and Mexican land grants were settled by a. the Board of Land Commissioners. b. the State of California. c. the Spanish legal code. d. taking all land for public use.

a. the Board of Land Commissioners.

The rectangular survey system is also called a. the U.S. government survey system. b. the province and township system. c. the subdivision system. d. the California system.

a. the U.S. government survey system.

The MOST useful method of describing a subdivision parcel is probably a. the lot and block system. b. the rectangular survey system. c. the metes and bounds system. d. the U.S. government survey system.

a. the lot and block system.

The sale of real property generally is governed by the laws of a. the state where the real property is located. b. the state where the owner of the real property resides. c. any of the states. d. the federal government.

a. the state where the real property is located.

When Aunt Winifred died, she left a life estate in Whiteacre to her nephew George. When George dies, Whiteacre will go to George's daughter Elizabeth. Elizabeth is a. a reversioner. b. a remainderman. c. a holder of a life estate. d. a joint tenant with right of survivorship.

b. a remainderman.

Three joint tenants share interest in a prop-erty. If one joint tenant's share is sold using the proper legal formalities, the new owner will then be a. a joint tenant with the other joint tenants. b. a tenant in common with the other joint tenants. c. a tenant at sufferance. d. a remainderman.

b. a tenant in common with the other joint tenants.

In California, the Uniform Commercial Code governs sales transactions involving a. real estate. b. bulk sales of goods. c. fixtures to real estate. d. riparian rights.

b. bulk sales of goods.

For real estate to be conveyed, there must be an accurate a. fence line. b. description. c. soil chemical analysis. d. water test.

b. description.

One of the forms of concurrent ownership is a. ownership in severalty. b. tenancy in partnership. c. sole proprietorship. d. separate ownership.

b. tenancy in partnership.

The point of beginning is used in a. the rectangular survey system. b. the metes and bounds system. c. the lot and block system. d. all legal descriptions.

b. the metes and bounds system.

The sale of personal property generally is governed by the laws of a. the state where the personal property is located. b. the state where the owner of the property resides. c. any of the states. d. the federal government.

b. the state where the owner of the property resides.

Land described as the South ½ of the North ½ of Section 18 contains how many acres? a. 80 b. 120 c. 160 d. 320

c. 160

Jessica and John own Blackacre as joint ten-ants. Jessica's will specifies that on her death her interest in Blackacre is to go to her sister Mona. When Jessica dies a. Mona will be a tenant in common of Blackacre with John. b. Mona will be a joint tenant of Blackacre with John. c. John will be sole owner of Blackacre. d. the probate court will have to sell Black-acre and distribute the proceeds to John and Mona.

c. John will be sole owner of Blackacre.

Section 22 lies in what direction from Section 17 of a township? a. Northeast b. Northwest c. Southeast d. Southwest

c. Southeast

California has how many principal baselines? a. One b. Two c. Three d. Four

c. Three

Title to a spouse's marital property can be transferred upon death by use of a. an oral will. b. a tenancy in common. c. a living trust. d. a letter of intent.

c. a living trust.

If Greenacre is deeded by Lou to Mary for Mary's life, Lou has a. a life estate. b. an estate in remainder. c. an estate in reversion. d. no interest.

c. an estate in reversion.

A limited partner is a. responsible for partnership activities. b. a general partner in some instances. c. not liable for partnership debts beyond the amount invested. d. required to take part in partnership business.

c. not liable for partnership debts beyond the amount invested.

5. In California, the term real estate is synonymous with a. land. b. fixtures. c. real property. d. personal property.

c. real property.

Victor and Karen are not married but together own community property because they are a. brother and sister. b. joint tenants. c. registered domestic partners. d. holders of a life estate.

c. registered domestic partners.

During the days of Spanish rule, all land was owned by a. the missions. b. the government. c. the crown. d. the conquistadores.

c. the crown.

The highest form of ownership is a. the life estate. b. the real estate syndicate. c. the fee simple absolute. d. the estate at will.

c. the fee simple absolute.

2. The Treaty of Guadalupe Hidalgo ended a. the gold rush. b. Spanish rule. c. the war with Mexico. d. the missions.

c. the war with Mexico.

A township consists of how many sections? a. 12 b. 18 c. 4 d. 36

d. 36

3. Real Estate Law, which relies on court decisions as well as legislation, is based on a. Spanish civil law. b. French civil law. c. the right of appropriation. d. English common law.

d. English common law.

Section 6 lies in what direction from Section 1 of a township? a. North b. South c. East d. West

d. West

A fee simple estate that has no conditions is a. a life estate. b. a remainder. c. a fee simple on condition subsequent. d. a fee simple absolute.

d. a fee simple absolute.

A fee simple estate that may be lost when some act is performed is a. a life estate. b. a fee simple absolute. c. a remainder. d. a fee simple on condition subsequent.

d. a fee simple on condition subsequent.

A subdivision map is a. rarely accurate. b. good only to describe the entire subdivision. c. never required. d. a good reference for a legal description.

d. a good reference for a legal description.

Community property is a. all property acquired by a spouse or regis-tered domestic partner. b. all property acquired by the spouse during marriage. c. the only form of ownership during marriage. d. all property acquired by a spouse or registered domestic partner that is not separate property.

d. all property acquired by a spouse or registered domestic partner that is not separate property.

Real property is NOT a. land. b. real estate. c. appurtenances to land. d. movable.

d. movable.

If Greenacre is deeded by Lou to Mary for the life of Nancy, Nancy has a. a life estate. b. an estate in remainder. c. an estate in reversion. d. no interest.

d. no interest.

A partner has a. an absolute right to use partnership property. b. the right to assign partnership property. c. the right to convey partnership property by will. d. the right to possession of partnership property for partnership purposes.

d. the right to possession of partnership property for partnership purposes.

Joint tenants have unity of a. interest but not possession. b. title but not interest. c. possession and title only. d. time, title, interest, and possession.

d. time, title, interest, and possession.