CalBRE Study Guide
The _____ ensures against all encumbrances affecting title which can be discovered by a search of public records prior to issuance of the policy, but does not cover against unrecorded encumbrances A. California Land Title Association (CTLA) standard policy B. American Land Title Association (ALTA) policy C. property profile D. homestead exemption
A. California Land Title Association (CTLA) standard policy
Regardless of race, all US citizens have the right to rent residential and commercial real estate under the federal A. Civil Rights Act B. Freedom of Information Act C. Unruh Civil Rights Act D. Proposition 13
A. Civil Rights Act
_____ are interests in real estate which secure payment or performance of a debt or urger monetary obligation, such as a trust deed lien or a local property tax lien A. Liens B. Legal descriptions C. Title insurance policies D. Bundle of rights
A. Liens
Lis pendens means A. Notice of Pending Action B. Notice of Prior Litigation C. Notice of Non-responsibility D. Notice of Expungement
A. Notice of Pending Action
The chief officer of the CalBRE is the A. Real Estate Commissioner B. President of the United States C. Governor of California D. Real Estate Solicitor
A. Real Estate Commissioner
The _____ is available for individuals who have obtained a judgement against a licensee and are unable to recover the judgement from the licensee for losses caused while acting as an agent. A. Real Estate Recovery Fund B. Broker Protection Fund C. Homeowner Relief Fund D.Borrower Education Fund
A. Real Estate Recovery Fund
A seller of a one-to-four unit residential property needs to complete and deliver to a prospective buyer a statutory form called a(n) A. Transfer Disclosure Statement (TDS) B. Condition of Neighborhood Addendum C. Agency Law Disclosure D. Oil-Based Paint Disclosure (OBP)
A. Transfer Disclosure Statement (TDS)
A property defect which would likely affect the price buyer would be willing to pay is referred to as A. a material fact B. a matter of opinion C. circumstantial evidence D. an 'as is' condition
A. a material fact
A lender may lawfully consider _____ when determining the applicant's creditworthiness A. a mortgage applicant's age B. the religious preference of the applicant C. whether the applicant intends to have children D. whether an applicant's income is derived from alimony
A. a mortgage applicant's age
The _____, contained in all purchase agreements, states the existence or nonexistence of each broker's fiduciary agency with the various parties to the transaction A. agency confirmation provision B. broker liability agreement C. hold harmless agreement D. attorney fee provision
A. agency confirmation provision
Under the _____, owners of properties uncertain over the true boundary agree to establish the location of their common lot line and acquiesce to the boundary line for at least five years A. agreed-boundary doctrine B. statute of limitations C. doctrine of estoppel D. balancing hardships doctrine
A. agreed-boundary doctrine
A residential landlord may not induce or attempt to induce an individual to offer, or abstain for offering, a dwelling to prevent the entry of certain classes of people into the neighborhood, known as A. blockbusting B. condemnation C. redlining D. dual agency
A. blockbusting
All property acquired jointly by a couple during their marriage, no matter how vested, is presumed to be A. community property B. separate property C. public property D. joint property
A. community property
A residential mortgage primarily for personal, family, or household use and secured by a deed of trust on a dwelling is known as a A. consumer purpose mortgage B. public project loan C. adjustable rate mortgage (ARM) D. Zero Ability to Pay (ZAP) Loan
A. consumer purpose mortgage
The property which benefits from an easement is referred to as the A. dominant tenement B. diminutive tenement C. servient tenement D. subsistence tenement
A. dominant tenement
A(n) _____ is a broker who simultaneously represents the best interest of the opposing parties in a transaction, i.e., both the buyer and the seller. A. dual agent B. secret agent C. subagent D. finder
A. dual agent
Brokers owe fiduciary duty to the client to use _____ in a continuous effort to meet the objective of the employment A. due diligence B. minimal effort C. moderate caution D. general competence
A. due diligence
If a property is landlocked, the owner of the property will most likely be able to acquire a(n) A. easement by necessity B. partial easement C. easement by grant D. solar easement
A. easement by necessity
A(n) _____ belongs to an individual and is their personal right A. easement in gross B. appurtenant easement C. easement running with the land D. encroachment
A. easement in gross
The _____ of a property is the highest price on the date of valuation that a willing seller and buyer would agree to, both having full knowledge of the property's various uses A. fair market value B. depreciation schedule C. replacement cost D. conforming value
A. fair market value
The function of a _____ is limited to soliciting, identifying, and referring potential real estate clients to brokers, agents, or principals in exchange for a fee A. finder B. appraiser C. home inspection D. mortgage loan organizer (MLO)
A. finder
On expiration of a lease, a tenant who remains in possession of a property without and agreement or acceptance of rent by the landlord for the extended occupancy becomes a A. holdover tenant B. equity purchaser C. subtenant D. successor tenant
A. holdover tenant
The illegal sale of a controlled substance is considered a(n) A. nuisance per se B. trespass C. unlawful detainer D. encroachment
A. nuisance per se
When a dual agency is established on a one-to-four unit residential sales transaction, the broker may not A. pass on confidential pricing info to the opposing parties B. communicated to one of the parties without the express consent of the other C. collect their fee when the sale closes D. disclose materials facts about the property which might dissuade the buyer from submitting and offer to purchase the property
A. pass on confidential pricing info to the opposing parties
A(n) _____ exists when the nuisance cannot be abated at a reasonable cost and by reasonable means A. permanent nuisance B. easement by necessity C. continuing nuisance D. unlawful detainer
A. permanent nuisance
The federal lead-based paint (LBP) disclosure is required on all _____ residential construction A. pre-1978 B. post-1978 C. pre-1995 D. post-1995
A. pre-1978
Failing to provide financing in certain communities is called A. redlining B. redevelopment C. panic selling D. subordination
A. redlining
The right to use water is called a A. riparian right B. taking C. fixture D. endorsement
A. riparian right
A(n) _____ is housing intended for and solely occupied by persons 62 yrs old and older, or intended and operated for occupancy by persons 55 yrs old and older A. senior citizen housing project B. Section 8 Housing Project C. common interest development (CID) D. cooperative housing project
A. senior citizen housing project
A _____ is any wrongful and unauthorized entry onto real estate in the possession of another A. trespass B. forcible detainer C. transient possession D. right of way
A. trespass
Natural hazards such as _____ come with the location of a parcel of real estate, not with the man-made aspects of the property A. very high fire hazard severity zones B. high local crime rates C. security bars which interfere with an occupant's ability to exit a room D. asbestos-containing building materials
A. very high fire hazard severity zones
A(n) _____ is valid and enforceable after delivery until it is challenged due to a defect and declared invalid by court order A. voidable deed B. void deed C. void ab initio deed D. implied deed
A. voidable deed
A(n) _____ is a written employment contract between a client and a licensed real estate broker A. job application B. listing agreement C. month-to-month rental agreement D. letter or intent (LOI)
B listing agreement
California anti-discrimination law is enforced by the Department of Fair Employment and Housing and the A. Department of Business Oversight (DBO) B. Fair Employment and Housing Commission C. Department of Housing and Urban Development (HUD) D. Fannie Mae
B. Fair Employment and Housing Commission
The printing or publishing of an advertisement for the sale or rental of residential property that indicates a wrongful discriminatory preference is a violation of the A. Unruh Civil Rights Act B. Federal Fair Housing Act (FFHA) C. American with Disabilities Act (ADA) D. Equal Credit Opportunity Act
B. Federal Fair Housing Act (FFHA)
The _____ requires lenders to compile and submit their home loan organization data to their respective supervisory agencies A. Equal Credit Opportunity Act B. Home Mortgage Disclosure Act (HMDA) C. Home Affordable Modification Plan (HAMP) D. Federal Fair housing Act (FFHA)
B. Home Mortgage Disclosure Act (HMSA)
A(n) _____ is an estimate of the buyer's settlement charges and mortgage terms delivered to the buyer within three business days following the lender's receipt of the mortgage application A. Good Faith Estimate (GFE) B. Loan Estimate C. HUD-1 or HUD-1A Closing Statement D. Uniform Residential Loan Application
B. Loan Estimate
To unify and streamline the disclosure made by the seller and their agent about natural hazards affecting a property, California legislature created a statutory forms called the A. Transfer Disclosure Statement (TDS) B. Natural Hazard Disclosure Statement (NHD) C. Conflict of Interest Disclosure D. Mortgage Settlement Statement
B. Natural Hazard Disclosure Statement (NHD)
_____ levied by an HOA fund the operating budget to pay for the cost of maintaining the common areas A. Special assessments B. Regular assessments C. Mello Roos assessments D. Extraordinary assessments
B. Regular assessments
Radon gas concentration is enclosed, unventilated areas located within a building where the underlying rock contains uranium is an example of A. an environmental hazard located off a property B. an environmental hazard located on a property C. a natural hazard located off a property D. a seismic hazard located off a property
B. an environmental hazard located on a property
Incidental rights to real estate which are not located on the real estate nor reflected on the title are called A. trade fixtures B. appurtenant rights C. fructose industriales D. freehold estates
B. appurtenant rights
The location of a common property line that is represented by an improvement which acts as a demarcation of the property line is called a A. spite fence B. common boundary improvement C. implied boundary D. nuisance
B. common boundary improvement
A process employing an independent agent to manage the closing of a real estate transaction through the exchange of documents and money between two parties is referred to as A. a title search B. escrow C. underwriting D. pre-approval
B. escrow
Until _____ was added to the anti-discrimination laws in 1992, it was legal to exclude minors under the age 18 from housing accommodations A. implicit discrimination B. familial status C. religious preference D. senior citizen housing
B. familial status
A seller's broker and their agents have a _____, owed solely to the seller who has employed the broker, to diligently market the listed property for sale A. non-fiduciary general duty B. fiduciary agency duty C. implied agency duty D. limited general duty
B. fiduciary agency duty
A(n) _____ is used to pass a fee simple interest in real estate from the grantor to another individual, unless a lesser interest is stated in the deed A. quitclaim deed B. grant deed C. warranty deed D. bill of sale
B. grant deed
An individual who holds themselves out as being in the business of preparing a home inspection report on a one-to-four unit residential property is referred to as a(n) A. appraiser B. home inspector C. handyman D. subcontractor
B. home inspector
A(n) _____ is the dollar amount of equity in a homeowner's dwelling that the homeowners qualifies to hold which has priority on title over most judgement liens and some government liens A. overriding lien B. homestead C. interest deduction D. negative equity
B. homestead
The Natural Hazard Disclosure Statement (NHD) requires a seller's agent to disclose to a prospective buyer whether they have knowledge the property A. has a roof greater than 3 years old B. is located on a fault zone C. is located in a area with a high crime rate D. has an outdoor pool
B. is located on a fault zone
A(n) _____ vesting is characterized by an ownership interest in property concurrently received by two or more individuals who share equally and have the right of survivorship A. tenancy in common B. joint tenancy C. community property D. community property with the right of survivorship
B. joint tenancy
A(n) ____ is any condition that causes exposure to lead from lead-contaminated dust, soil, or paint which has deteriorated to the point of causing adverse health effects A. natural hazard B. lead-based paint hazard C. oil-based paint hazard D. neighborhood security hazard
B. lead-based paint hazard
An Agency Law Disclosure is provided each time and broker prepares a purchase agreement or A. lease for less than one year B. lease for more than one year C. makes any contact with a client D. independent contractor agreement
B. lease for more than one year
Ownership in a unit in a condominium project includes compulsory membership in A. the local trade union B. the homeowner's association (HOA) C. Facebook D. the board of directors
B. the homeowner's association (HOA)
Failure of the seller's agent to provide the seller with the Agency Law Disclosure prior to entering into the listing agreement may result in A. a $1000 fine B. the loss of their fee C. jail time D. the forfeiture of all funds in their trust account
B. the loss of their fee
Funds belonging to others which a broker and their agents handle when acting in transaction are called A. broker fees B. trust funds C. bonds D. security deposits
B. trust funds
All real estate brokers and agents need to complete _____ of continuing education (CE) every four years to renew a CalBRE license. A. 15 hours B. 30 hours C. 45 hours D. 50 hours
C. 45 hours
_____ refers to a method of acquiring title to real estate owned by another by openly maintaining exclusive possession of the property for a period of five years and paying all property taxes A. Eminent domain B. Inheritance C. Adverse possession D. Probate
C. Adverse possession
The broker analyzes the suitability of an income property which is for sale by preparing a(n) _____ and reviewing it with the buyer A. Profit and Loss statement B. Balance Sheet C. Annual Property Operating Data Sheet (APOD) D. Investment Circular
C. Annual Property Operating Data Sheet (APOD)
The California Legislature created the _____ to oversee, regulate, administer, and enforce the real estate law. A. Department of Home Finance B. California Bureau of Veterans C. California Bureau of Real Estate (CalBRE) D. Department of Agriculture and Property
C. California Bureau of Real Estate (CalBRE)
The _____ is a 1974 federal enactment prohibiting lenders from discriminating against borrowers from a protected class A. Credit Reporting Act B. Truth in Lending Act C. Equal Credit Opportunity Act D. Dodd-Frank Wall Street Reform and Consumer Protection Act
C. Equal Credit Opportunity Act
_____ are exempt from federal lead-based paint (LBP) disclosure requirements A. residential properties built prior to 1968 B. Single family residences built after 1970 C. Foreclosure sales of residential property D. Resales of housing previously acquired by the lender at a foreclosure sale
C. Foreclosure sales of residential property
The _____ program assists qualified veterans or their surviving spouses to buy a home with a zero down payment A. California Housing Finance Agency (CalHFA) B. California Department of Veterans Affairs (CalVet) C. US Department of Veterans Affairs (VA) mortgage guarantee D. Federal Housing Administration (FHA)-insured mortgage
C. US Department of Veterans Affairs (VA) mortgage guarantee
A(n) _____ is a written statement which presents an accurate, factual representation of title to the property being acquired, encumbered, or leased A. preliminary title report B. property profile C. abstract of title D. balance sheet
C. abstract of title
A(n) _____ is an individual's opinion or estimate of a property's value on a specific date A. termite inspection B. home inspection C. appraisal D. open house
C. appraisal
Improvements that become part of the real estate include walls, central AC, and A. wash stations in a beauty salon B. chairs C. attached flooring D. drapes and curtains
C. attached flooring
Agency in real estate related transactions includes relationships between brokers and their A. principals B. agents C. both A and B D. a real estate broker is never an agent
C. both A and B
A(n) _____ arises when a broker or their agent, acting on behalf of the client, has a competing professional or personal bias which hinders they ability to fulfill the fiduciary duties they have undertaken on behalf of their client. A. affiliated business agreement (ABA) B. subagency C. conflict of interest D. implied agency
C. conflict of interest
The right of the government to take private property for public use is called A. theft B. put option C. eminent domain D. the power to tax
C. eminent domain
A(n) _____ is an improvement on real estate which extends onto real estate belonging to another person without their consent A. nuisance B. trespass C. encroachment D. implied boundary
C. encroachment
The Natural Hazard Disclosure Statement (NHD) handed to a prospective buyer does not include A. whether the property is located in an area of potential flooding B. whether the property is located in a very high fire hazard severity zone C. environmental hazards and physical deficiencies in the soil or property improvements D. the fact that the property was built in a seismic hazard zone
C. environmental hazards and physical deficiencies in the soil or property improvements
A(n) _____ lasts for a specific length if time as stated in a lease agreement entered into by a landlord and tenant A. tenancy-at-will B. estate at will C. fixed-term tenancy D. life estate interest
C. fixed-term tenancy
An easement is terminated by _____ if the easement holder places an excessive burden on the property encumbered by the easement A. abandonment B. merger C. forfeiture D. prescription
C. forfeiture
To properly record a lis pendens, the lis pendens is required to identify the parties to the lawsuit and A. provide reasonable accommodation for the real estate B. post a notice of the pending legal action on the property C. give an adequate description of the real estate D. be published in a newspaper in general circulation in the city where the property is located
C. give an adequate description of the real estate
The individual conveying real estate is called the _____ and the individual acquiring real estate is called the _____ A. grantee; grantor B. grantor; beneficiary C. grantor; grantee D. trustee; beneficiary
C. grantor; grantee
For delivery of a deed to occur, the grantor needs to _____ and the grantee needs to _____ A. place the deed in the mail; plan to accept the deed on certain conditions B. physically hand the deed to the grantee; record the deed with the county C. intend to convey the title; accept the deed as immediately effective D. intend to convey partial title; record the deed with the county
C. intend to convey the title; accept the deed as immediately effective
A broker's representation of a client, such as a buyer or seller, is best undertaken A. with an oral agreement only B. through coercion C. on a written employment agreement signed by both the client and the broker D. through ratification after acts requiring a license have been performed
C. on a written employment agreement signed by both the client and the broker
Under a(n) _____, a client can enter into listings with as many brokers as they want without becoming obligated to pay more than one fee A. exclusive agency listing B. exclusive right-to-sell listing C. open listing D. triple-net lease agreement
C. open listing
A broker is required to regularly account to an owner the status, expenditure, and location of negotiable trust funds, called a(n) A. balance sheet B. deposit receipt C. owner's statement D. amortization schedule
C. owner's statement
A _____ is a nuisance which affects an entire segment of the population A. private nuisance B. continuing nuisance per se C. public nuisance D. temporary nuisance
C. public nuisance
The primary document used to negotiate the transaction between a buyer and a seller is a A. listing agreement B. counteroffer C. purchase agreement D. waiver
C. purchase agreement
To simply convey any interest in real estate without an assurance the individual holds that interest conveyed, a(n) _____ deed is issued A. grant deed B. abstract of title C. quitclaim deed D. implied covenant
C. quitclaim deed
A real estate agent has no affirmative duty to voluntarily disclose information to a potential buyer regarding a prior occupant which death occurred on the property more than _____ years prior to the purchase offer A. one B. two C. three D. agents always need to disclose deaths on a property
C. three
All records of an agent's activities on behalf of a buyer or seller during them listing period are to be retained by the agent's broker for A. one year B. two years C. three years D. four years
C. three years
The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions? A. A purchase agreement B. A seller's listing agreement C. A lease agreement for a term exceeding one year D. All of the above
D. All of the above
_____ practices are those which are not openly discriminatory, but result in discriminatory effects A. Overtly discriminatory B. Harmlessly prejudice C. Conflict of interest D. Implicit discriminatory
D. Implicit discriminatory
A statement by a structural pest control (SPC) company indicating the property is free of infestation in the visible and accessible areas is referred to as a A. Certificate of Completion B. Certificate of Occupancy C. Pest Elimination Voucher D. Pest Control Certification
D. Pest Control Certification
_____ easements restrict an owner's ability to maintain or construct improvements which interfere with a neighbor's solar energy system A. Light B. Air C. View D. Solar
D. Solar
California established the _____ to act as a referee for all disputes over water rights A. California Bureau of Real Estate (CalBRE) B. Department of Motor Vehicles (DMV) C. Federal Water Conservation Authority (FWCA) D. State Water Resources Control Board
D. State Water Resources Control Board
_____ involves the restriction of a person seeking to buy or rent a dwelling in a community in a manner that perpetuates segregated housing patterns A. Blockbusting B. Redeveloping C. Redlining D. Steering
D. Steering
A(n) _____ is a recorded restriction which requires a property to be used for a specific purpose A. negative covenant B. Declaration of Covenants, Conditions, and Restrictions (CC&Rs) C. covenant which does not run with the land D. affirmative covenant
D. affirmative covenant
At the time of signing a deed, a capable grantor needs to A. possess their civil rights B. be of sound mind C. be an adult of at least 18 D. all of the above
D. all of the above
The first component of real estate is land which is comprised of A. soil B. rocks C. reasonable airspace above the earth D. all of the above
D. all of the above
California's Unruh Civil Rights Act specifically prohibits discrimination on behalf of A. educational institutions B. government institutions C. individuals D. businesses
D. businesses
The specific duties of the escrow officer in a particular transaction are documented in A. the county records B. the escrow officer's oath C. the listing contract D. escrow instructions
D. escrow instructions
The Department of Housing and Urban Development (HUD) issues guidelines that require real estate brokers selling or renting single family residences (SFRs) to display a(n) A. code of ethics B. copy of the broker's driver license C. inspirational poster D. fair housing poster
D. fair housing poster
The submission of a(n) _____ to a private or institutional lender is the catalyst which sets the machinery of the mortgage industry in motion A. Letter of intent (LOI) B. appraisal report C. Option to Purchase D. mortgage application
D. mortgage application
Consumers may request a free copt of their credit report _____ to review it for errors A. once every month B. once every quarter C. twice every year D. once every year
D. once every year
To be eligible for a broker or agent license, the applicant needs to be honest and truthful, complete mandatory education, and A. provide proof of legal presence in the US B. be at least 21 years old C. have previously worked as an unlicensed realtor D. pass the qualifying exam
D. pass the qualifying exam
On expiration of a lease, the passage of real estate fixtures from the tenant to the landlord is a conveyance called A. waste B. tariff C. sacrifice D. reversion
D. reversion
Environmental hazards not itemized in the Transfer Disclosure Statement (TDS) include A. hazardous construction materials waste B. window security bars and inoperable release mechanisms C. environmental noise D. whether the property is located in a special flood hazard zone
D. whether the property is located in a special floor hazard zone