TUTOR EXAM - 10, 11, 12

A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually paid $150 in taxes for the year, what was the total value of the property?

$120,000

There is a house that a salesperson from Firm A has been trying for several weeks to list for sale. The owners have been interviewing salespeople from different firms. They tell A's salesperson that Firm B will charge 2% less commission for selling the house. What should A's salesperson say to the owner to get the listing?

Firm A provides excellent services to market their sellers' properties

Terri advertises her house in the paper as "for sale by owner." Which statement is TRUE?

No license is required in this situation

Melissa receives an offer on one of her listings. Before she's able to present it to the seller, she receives another offer from a participating broker. What action should Melissa take?

She must present both offers as soon as possible.

Which of the following is the most important document at closing?

The deed

Which of the following is true regarding the useful life of a property?

The physical life is generally greater than the economic life.

When a transaction that involves earnest money has consummated, when and how must the sponsoring broker disburse the funds?

The sponsoring broker must disburse the funds according to the terms of the contract regarding the release of the escrow moneys.

Which of the following is not a duty owed to all parties by an licensee in California?

To minimize the number of arms-length transactions

Real Estate Tower has retail space on the first floor, office space on floors 2-17, and residential units on floors 18-35. Real Estate Tower is

a mixed-use development.

A residential real estate listing is generally considered to be

a non-transferrable service contract.

An estimate of the value of something, usually a property, is known as

an appraisal.

On May 7, 2010 Senate Bill 183 was signed into law requiring the placement of __________ in all California dwelling units.

carbon monoxide detectors

Broker Sandra decides not to disclose to a buyer that the property's well is almost dry. Sandra has

committed passive fraud.

Ad valorem taxes are based on

the assessed value of the property.

Ross and Amanda Troutman own a $200,000 home that's insured with a $120,000 policy that includes an 80% coinsurance requirement. What amount will they receive from the insurance company if they sustain a loss of $175,000?

$120,000

A $200,000 property sustains $120,000 in fire damage, but is only covered for $80,000. Under the terms of the insurance policy's 80% coinsurance requirement how much will the insured receive?

$60,000

There are no exceptions for racial discrimination based on the

1866 Civil Rights Act.

A straight note for $13,400 was executed at 8% annual interest. If the borrower actually paid $3,752 in interest, how many months did he take to pay it off?

42

Which of the following persons is usually NOT an agent?

A person who works for a multiple listing service

Which of the following activities requires a real estate license in California?

A real estate secretary who hosts open house weekends

Which is true regarding the Federal Fair Housing Law?

Aggrieved parties may appeal to HUD for assistance.

Which of the following properties would be exempt from property taxes?

An FBI building

How do you calculate the tax base of an area?

Assessed value - exemptions

A listing broker had a signed sale contract on a house. The broker then noticed a crumbling wall in the basement. Who should the broker inform about the wall?

Both buyer and seller

After contracting for a house a buyer applied for a conventional loan at a mortgage banker. Which of the following items would NOT be listed on the good faith estimate of closing costs?

Broker's commission

In California, anyone who wishes to sell real estate investment type security must FIRST obtain a

Commissioner's Permit.

Which BEST describes the principle that a home maintains its highest value in a neighborhood with similar homes and similar type housing?

Conformity

Which of the following is not a type of nonresidential property?

Cooperatives

Which of the following deeds is the most commonly used in the United States?

Warranty

A house was sold on an installment land contract. There was no mention in the contract about a counter top microwave oven. Can the seller take the microwave oven?

Yes, because it is personal property.

Ann Carr planted a rose garden on the corner of Mrs. Baird's property. Mrs. Baird was homebound and never left her house. Mrs. Baird never knew that Ann Carr had planted a rose garden on her property. The statutory period had elapsed and Ann Carr claimed the rose garden. Would Ann Carr have a good chance of getting rights to an easement by prescription?

Yes, because she had made open use of the property.

A seller was selling an unimproved 1.1-acre lot for $10,000. The seller listed the property with a broker who was also going to help any buyers in trying to locate suitable financing. The broker ran an ad in the paper on the property which said, "$3,000 down will buy." Does the broker have to disclose anything else in the ad?

Yes, because the broker mentioned the down payment in the ad, he is also required to disclose all other financing terms as well.

A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?

Yes, because the buyer was able to perform all of the requirements in the contract.

Rich put in writing that Rich would sell Mark a strip of land between the road and Mark's property line for $3.15 per square foot. Rich agreed to transfer the land in 6 months. The 6 months passed and Rich refused. Does Mark have any recourse?

Yes. If it is in writing it is enforceable.

Which BEST characterizes the difference between zoning laws and building codes?

Zoning laws deal with use; building codes deal with building materials.

Under Civil Code Section 1351, an example of a common interest development would be

a stock cooperative.

Some states also allow a licensee to act in a non-agency capacity. Depending on the state, the licensee could be known as all of the following except

a subagent.

The process in which boundaries are measured and land areas determined is called

a survey.

Licensee Brutus is representing Tim, the owner of a pawn shop. The inventory of the pawn shop is transferred to buyer Jan with

a written bill of sale.

Broker Conrad represents a party in a transaction where there is a dispute regarding $4,000 of deposited escrow money. What should Conrad do?

Hold the money until both parties (or their lawyers) provide a written release.

Which of the following items would MOST likely be enforced by the forced sale of a property?

Judgment

Which of the of the following is not an advantage of a business leasing commercial space?

Lack of control over rent

What is one of the most frequently used organizational forms for real estate syndicates in California?

Limited partnership

Which of the following is NOT a type of listing contract?

MLS contract

The seller conveyed a quitclaim deed to the buyer. Upon receipt of the deed, the buyer may be certain that

all of the seller's interests in the property belong to the buyer.

A lease that goes from month to month is known as

an estate from period to period.

In California , any apartment building that has 16 or more rental units must have

an onsite manager, also known as a residential manager.

Under the California Business and Professions Code Section 10145, as well as the Commissioner's Regulation 2832, a trust account must

be maintained with a bank or recognized depository located in California.

A joint tenancy with right of survivorship may be created

by deed or will.

A claim or interest revealed by a title search is called a

cloud on title.

Broker Cole places buyer Grant's earnest money deposit in the same account as his personal funds. Cole does not spend any of the money from this account before the closing. Cole has

commingled funds which is an illegal act.

A listing agreement is a legal

contract between the seller or buyer and a broker that establishes their agency relationship.

A land contract provides for the

conveyance of legal title at a future date.

A tenant agreed to lease a commercial space for $2,000 per month. The tenant needed a sign to advertise the business and requested that the owner provide a sign. The owner agreed to erect a sign but required in return that the tenant sign a 5-year lease and pay rent of $2,200 per month until the cost of the sign was recovered. At the termination of the lease, could the tenant be allowed to take possession of the sign?

No, because it was installed by the owner and therefore it is the owner's real property.

A broker entered into an agreement with a buyer to find the buyer a piece of property, whereby the buyer agreed to pay $5,000 for the broker's services. The broker found a lot for the buyer, which was listed with another broker on an exclusive basis. The sale was consummated. Can the buyer's broker collect the $5,000 in commission from the buyer and also share in the commission of the listing broker without the permission of all parties to the transaction?

No, because the broker had not obtained written prior permission from both the seller and buyer.

Vicky is a real estate licensee whose friend Thomas is a home inspector with an excellent reputation. When Vicky has a buyer interested in a property, she sends them to Thomas, who pays her brokerage a $50 referral fee. Is this a legal practice?

No, in general this is not a legal practice.

The owner of an apartment complex hired a broker to rent six of the units. The owner further requested that the broker do everything possible to find women tenants only as the owner did not want the units rented to men as they are prone to have loud parties. Can the broker follow these instruction?

No, this would not be allowed as discrimination based on sex is prohibited by the fair housing laws.

Which of the following is true regarding net listings in California?

On a net listing, the broker must notify the seller of the amount of the commission the broker is earning before the seller agrees to sign the purchase contract with the buyer.

An owner was constructing a building and was using second-hand materials. A building inspector checked the construction on numerous occasions; however, the construction continued. Which of the following would this accelerate?

Physical depreciation

Which of the following is a duty of the real estate commissioner?

Qualifying applicants for real estate licenses

A person owned a 4-plex and lived in one of the units. Which of the following would be allowed?

Refusing to rent to a student from a different national origin.

Which of the following items would be LEAST important in a property management agreement?

Rental price of each unit

Which of the following covenants would NOT be found in a general warranty deed?

Restrictive ownership

Which non-governmental organizations have their greatest investment in first mortgages on single family residences?

Savings and loans

A salesperson did a CMA and listed a property for $188,000. Soon thereafter, another property that was comparable to the listed property sold for $215,000. Which of the following BEST describes what the salesperson should do?

Tell the owner that another had sold for $215,000

What California State law prohibits financial institutions from engaging in discriminatory loan practices such as redlining?

The Holden Act

What is the principal federal statute that covers competition and is one of the most important pieces of antitrust legislation?

The Sherman Antitrust Act of 1890

A borrower applied for a VA guaranteed first time mortgage for $150,000. However, the property appraised for $146,000. If the buyer still wished to buy the property, which could happen?

The VA could allow the borrower to make up the difference in cash.

Andy is taking the brokers exam. He intentionally sneaks testing materials out of the lab and is caught. What is the most likely result?

The application for his license is denied.

Who cannot be an escrow agent?

The seller

Which of the following is true of discount points?

They are usually charged to improve the yield on a mortgage

The major intent of zoning regulations is to

ensure the health, safety and welfare of the community.

Under the California Government Code Section 65300, every city and county is required to develop its own

general plan.

A(n) ________ is a parcel of real property that is owned and occupied as a family home.

homestead

A high vacancy rate may be caused by any of the following EXCEPT

impressive amenities.

An ordinance that requires a builder of new residential housing to set aside a designated number of units for low- to moderate-income people is known as

inclusionary zoning.

Government Code Section 65589.5 sets forth the critical problem of ________ in California.

lack of housing

The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the

loan to value ratio.

Previously, the Unruh Civil Rights Act protected people from being discriminated against because of their sex, race, color, religion, ancestry, national origin, disability, or medical condition. However, recent changes have added ______ to the other classes protected under this legislation in California.

marital status and sexual orientation.

An agent wishes to purchase his principal's house. The laws of agency state that an agent

may not purchase the house in another person's name and later convey it to himself/herself without full disclosure.

An exaggerated or superlative comment about a property's is called

puffing

The final process in appraising a duplex would be

reconciliation

An offeree has the right to

reject an offer

Property over which an easement runs in favor of another parcel of real estate is known as a

servient estate.

As an agent for the seller, a real estate broker can

solicit an offer to purchase the property from a prospective buyer.

The severalty owner of a parcel of land sells it to a buyer. The buyer insists that the owner's wife join in signing the deed. The purpose of obtaining the wife's signature is to

terminate any rights the wife may have in the property.

A buyer took delivery of the deed to his new house but forgot to record the deed. Under these circumstances

the buyer's interest is not fully protected against third parties.

If the amount realized at a sheriff's sale as part of a mortgage foreclosure is more than the amount of the indebtedness and expenses, then the excess belongs to

the mortgagor.

Earnest money is provided when

the offer to purchase real estate is made.

A buyer purchased an option on a property. In this case

the optionee would lose the money paid if he does NOT exercise the option within the option time period.

A licensed salesperson was assisting a seller in establishing a listing price for the seller's home. Prior to giving the seller the information the salesperson had gathered, the seller told the salesperson what price the seller wanted to use to list the home. Which of the following statements BEST describes what the salesperson should suggest as a list price

within range of the most recent "asking" and "sold" comparables in view of the seller's urgency and market conditions.

The listing and selling brokers agree to split a 7% commission fifty-fifty on a $387,600 sale. The listing broker gives the listing salesperson 30% of his commission and the selling broker gives the selling salesperson 35% of his commission. How much does the selling salesperson earn from the sale?

$4,748.10

Which is an example of ostensible agency?

The principal showed by his or her actions that the agent's actions were accepted.

A loan with a balance of $210,000 prior to the June 1 payment was figured with interest at 5% annually and monthly principal and interest payments of $1,575. There was a 1% pre-payment penalty. The owner paid the June 1 payment and then paid off the balance of the loan. What was the pre-payment penalty?

$2,093

A 3-year straight note was obtained at 10% per year. Interest paid the first two years was $42,000. The loan on the house was 75% of the value. What was the total value of the property?

$280,000

Under which of the following circumstances is the broker due a commission?

The broker procures a buyer who can meet the seller's terms and conditions.

In which of the following cases would an estoppel certificate be needed?

The holder of a mortgage loan sells it, and the buyer of that loan wants the mortgagor to acknowledge the full amount of the debt still owed.

The foremost consideration in the purchase of a home is its affordability. What is the second?

The location of the property

A plumber did some work on a property and was NOT paid. He discovered that there were already several liens against the property. He then discovered that the owner had another piece of property, which was free from encumbrances. Which of the following would be true?

The mechanic's lien can only be placed on the property where the work was done.

Tyler purchased a home and applied for a mortgage at South gate Bank. The loan was made and payments were to be made on the 1st of each month. After making payments for three years, Tyler lost his job and could not make the payments. Which of the following statements is correct?

The mortgagee could file a court action to have the house sold to satisfy the debt.