RE License

Suzette is leasing a condo from the Garcias. She has been renting the condo for over three years. She renews the lease each year and, because of her loyalty and exemplarily rental history, the Garcia's allow her to make any décor changes she wishes. Which of the following statements is true about the relationship between the Garcias and Suzette? -The Garcias own the condo in leasehold but rent it to Suzette in freehold. -The Garcias have entered into a Pur Autre Vie lease relationship with Suzette. -The Garcias own the condo in freehold but rent it to Suzette in leasehold. -The Garcias and Suzette have a tenants in common relationship.

The Garcias own the condo in freehold but rent it to Suzette in leasehold.

Merle has a rural piece of land in the northern part of the state. He is in the process of selling it to a developer. The property has a pair of one-hundred-year-old trees that mark the entrance to the property. A stream and a bluff mark the end of Merle's property. What method of real estate description would best suit Merle's land? -Lot and Block System -Metes and Bounds System -Rectangular Survey System -Both A and C

Metes and Bounds System

The Smiths have decided to move to Antigua. They are transferring the ownership of their $950,000 home in Oakland to their daughter, Renee. Renee has heard about Proposition 13 and is nervous about not being able to afford the increase in property taxes. Does she need to worry? -In the state of California, transferring a principal residence of $2 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised and the taxes increased. -When the property is transferred from the Smiths to Renee, the full cash value for tax purposes will be adjusted to the current market value of the property. This will increase the property taxes considerably. -In the state of California, transferring a principal residence of $1 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised nor the taxes increased. -None of the Above

In the state of California, transferring a principal residence of $1 million or less from a parent to a child is considered a transfer exclusion. The property will not be reappraised nor the taxes increased.

A first-time buyer has applied for a large mortgage loan at ABC Bank. The first-timer has good credit, good debt-to-income ratio, a stable position and adequate income. The lender still has concerns. Which of the following is not one of the lender's concerns? -The current and future value of the property. -The attractiveness of other investments that could be made for a better return. -The income and income potential of the loan applicant. -The loan applicant's need of financial assistance.

The loan applicant's need of financial assistance. extra info: When an FHA, VA, or conventional loan is made to a consumer, the lender is concerned with the current and future value of the property, the income of the loan applicant, and the attractiveness of other investments that could bring a better return. The lender is not interested in the loan applicant's need for financial assistance.

Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much interest will Naomi pay over the term of her loan? -$244,440 -$224,440 -$124,440 -$144,440

$124,440 extra info: Interest = P&I x 12 = annual payment x # loan years = total P&I; then total P&I - loan amount = total interest paid. So, $679 P&I x 12 = $8,148 annual payment x 30 years = $244,440 total P&I - $120,000 loan amount = $124,440 total interest paid.

A taxing jurisdiction has a mill rate of 14.7. What is an owner's tax bill if his assessed value is $250,000? -$36.75 -$367.50 -$3,675.00 -The tax bill is based on taxable value, not assessed value.

$3,675.00

Which of the following elements is not necessary for a valid contract? -Offer and Acceptance -Accession -Legality of Object -Consideration

Accession

Tyoka has a small retail store in San Diego. He sells imported items such as clothing, arts, and crafts. He has recently sold the store to a group of investors. In the arrangement with the investors, Tyoka now leases his former store from the new investors. What type of financing applies to Tyoka's new arrangement? -Exchange -Long-Term Lease -Sale-Leaseback -Straight Lease

Sale-Leaseback extra info: With a sale-leaseback, the property owner sells his property but then leases it back from the purchaser, allowing the original owner to retain possessory rights.

What category of investors sees Syndicate Equity Financing as a good opportunity? -Consumers with damaged credit. -Consumers with more than one home loan. -Small investors. -Borrowers who have previously declared bankruptcy.

Small investors.

A local school has been destroyed by fire. Nothing has been salvaged and the school will have to completely rebuilt. What are the three methods of determining the cost of rebuilding? -Estimate the value of the land; Determine the replacement or reproduction cost; and Deduct all accrued depreciation. -Square Foot Cost; Unit in Place; and Quantity Survey Method -Square Foot Cost; Value of Land Estimation; and Quantity Survey Method -Value of Land Estimation; Unit in Place; and Deduct all accrued depreciation.

Square Foot Cost; Unit in Place; and Quantity Survey Method

Which portion of the California Business and Professions Code consists of the Subdivided Lands Law? -Part 1, Sections 10000 to 10580 of the Business and Professions Code -Part 2, Sections 11000 to 11200 of the Business and Professions Code -California Civil Code, Section 2985 of the Business and Professions Code -None of the Above

Part 2, Sections 11000 to 11200 of the Business and Professions Code

This form of syndication avoids double taxation but has a lack of centralized management. Which form fits the description? -The Corporate -The General Partnership -The Joint Venture -Both B and C

Both B and C: -The General Partnership -The Joint Venture extra info: The General Partnership, also known as Joint Venture, syndication avoids double taxation which a regular corporation would incur, but there is an unlimited liability provision as well as a lack of centralized management.

Judy and Xavier are planning a very large addition to their home. The kitchen will be doubled in size with a new hearth room, and a large new master suite will complete the renovation. They live in a neighborhood of houses in the $500,000 range. This addition will change the appraisal value of their home substantially. Which principle of value applies? -Assemblage -Competition -Contribution -Regression and Progression

Contribution

HEH, Inc. owns a large parcel of land which will be used for commercial development. Upon the sale of the property to HEH, Inc., the grantor in a written agreement established the lake may never be touched and the property may only be used for commercial purposes. Which type of private deed restriction is in place for HEH, Inc.'s property? -Affirmative -Covenant -Public -Building

Covenant

What is the major difference between a VA Loan and a FHA Loan? -FHA insures repayment of the loan; VA guarantees repayment of the loan. -FHA guarantees repayment of the loan; VA insures repayment of the loan. -FHA lends the money for the actual loan; VA guarantees repayment of the loan. -FHA insures repayment of the loan; VA lends the money for the actual loan.

FHA insures repayment of the loan; VA guarantees repayment of the loan. extra info: There are several differences, including who qualifies and the amount of down payment required, but the major difference is that the FHA insures the lender against loss while the VA guarantees the loan by making the veteran personally liable.

Hassan is not happy with the listing agreement on his home through REE Realty Company. He has not been pleased with the showings without notice, the agents showing his home have been rude, and he doesn't feel the property has received the advertising or exposure promised when he signed the listing contract. What is his best option for terminating the listing with REE Realty Company? -Hassan could wait for himself or the broker to pass away. -Hassan could wait for the expiration of the agreement term to pass. -Hassan could speak with the broker and possibly come to a mutual agreement that it is in both parties' best interest to cancel the listing. -Hassan could cancel the agreement; however, since it is contractual, the broker could decide to sue for damages.

Hassan could speak with the broker and possibly come to a mutual agreement that it is in both parties' best interest to cancel the listing.

Louise recently turned 65, retired, and is downsizing to a smaller home. She was concerned about moving from the home she owned for 40 years with its low assessment to a smaller home, but with a much larger assessment. Which proposition eases her worries? -Proposition 60 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value. -Proposition 60 allows homeowners 65 years and older to transfer their base-year tax value to another home of equal or lesser value. -Proposition 90 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value. -Proposition 60 allows homeowners 55 years and older to transfer their base-tax value to another home of lesser value.

Proposition 60 allows homeowners 55 years and older to transfer their base-year property tax value to another home of equal or lesser value.

As an examinee, or a new licensee, where is the best, most accurate source for current California Department of Real Estate information? -Your Educator -Your Broker -The DRE website -All of the Above

The DRE website

While waiting in the lobby of the Fair Real Estate Company's office, Samir and Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT neighborhood. It's very "colorful," if you know what I mean." Which ruling by the Supreme Court dealt with this issue? -The prohibition of discrimination based on race and color was created by the 1968 Fair Housing Act. -Fair housing laws apply to home sellers as well as to agents. If an agent goes along with a client's discriminatory act, the agent is equally liable for the violation, Mayer v. Johnson. -All discrimination and appearances of discrimination in selling or renting residential property based on race and color is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer. -All brokers must prominently display a HUD standard Fair Housing poster affirming the broker's compliance with fair housing laws in selling, renting, advertising, and financing residential properties, Jones v. Smith.

All discrimination and appearances of discrimination in selling or renting residential property based on race and color is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.

Ted and Jack are selling their home to Duncan and Gary. Upon the title search, the title company discovers Ted and Jack's home is free of any liens or problems and can be easily sold. Ted and Jack's property holds which type of title? -Certificate of Title -Abstract -Marketable Title -Chain of Title

Marketable Title

The sewers in Mary's neighborhood need replacing. In fact, the entire sewage system for her city needs replacing. The city has imposed a tax that will pay for all of the sewer updates in the area. What type of real estate tax applies? -General Tax -Special Assessment Tax -Ad Valorem -Both A and C

Special Assessment Tax

John lives in an apartment and each month pays his rental payments. He is also considered a stockholder in his building and owns property. In what type of apartment does John live? -Condominium -Timeshare -Cooperative -Common Element

Cooperative

Jeffrey is selling his loft to Caroline. He is using a General Warranty Deed in the transfer of property. Which of the following covenants is not a requirement? -Covenant of Seisin -Covenant Against Encumbrances -Covenant of Exceptions and Reservations -Covenant of Further Assurance

Covenant of Exceptions and Reservations

Which of the following is not a method of involuntary alienation? Tacking On Escheat Adverse Possession Eminent Domain

Tacking On

Which of the following is not a type of leasehold estates? -An Estate for Years -An Estate from Period to Period -Tenancy in Common -Estate at Will

Tenancy in Common extra info: An estate for years, estate from period to period, estate at will, and estate at sufferance are the four types of leasehold estates. Tenancy in common is not one of these leasehold estates.

Is it permissible to advertise real estate associated services or products in California without a California real estate license? -No. All real estate related services or products must only be advertised by a licensed California real estate salesperson. -Yes, the Internet is a free commerce site. Any person may advertise whatever services or products they choose, as long as they are legal. -Yes, as long as the products or services do not include any actions for which a California real estate license is required. -None of the above.

Yes, as long as the products or services do not include any actions for which a California real estate license is required.

A violent storm comes in from the ocean, hitting the beachfront properties with destructive force. When the Meyers return to their home, they find the beach has disappeared from their property. Which term describes the damage? -Reliction -Avulsion -Erosion -Alluvion

Avulsion

Ramon, a salesperson licensed to Richard, a broker, has been given specific written authorization to make a withdrawal from the broker's trust account. Ramon is uncertain this is permissible under California Law. Which California Law, if any, references Ramon's concern? -California Business and Professions Code Section 10145 -Commissioner's Regulation 2832 -California Business and Professions Code Section 10085.5 -Both A and B

Both A and B: -California Business and Professions Code Section 10145 -Commissioner's Regulation 2832

Lisa has had her California real estate license suspended for violations involving mobile homes under the California Business and Professions Code. What could she have possibly done? -Submitted a check to the State of California for mobile home fees and the check was not honored. -Knowingly participated in the sale of a stolen mobile home. -Unknowingly participated in the purchase of a stolen mobile home. -Both A and B

Both A and B: -Submitted a check to the State of California for mobile home fees and the check was not honored. -Knowingly participated in the sale of a stolen mobile home.

Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month (including principal and interest). What is the principal balance after Renata has made one payment on her loan? After two payments? -$148,950.50, $148,900.70 -$149,950.50, $149,900.70 -$149,990.50, $149,980.20 -$149,920.50, $149,873.80

$149,950.50, $149,900.70 Extra info: First determine the annual amount of interest paid based on the loan balance: $150,000 x 7.5% = $11,250 annual interest ÷ 12 months = $937.50 monthly interest. $987 monthly P&I payment - $937.50 monthly interest = $49.50 monthly principal payment. $150,000 original loan - $49.50 first month payment = $149,950.50 after one payment. Use same process with new balance as loan amount to determine balance after second month payment = $149,900.70

This form of syndication allows limited liability for the investors but has negative tax features. Which form fits the description? -The General Partnership -The Joint Venture -The Limited Liability Company -The Corporate Form

The Corporate Form

Sydney has inherited her grandmother's estate worth approximately $4.5 million. She is worried about paying taxes on the estate and the inheritance. How will these taxes affect her new estate and inheritance? -While the federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether. -California has eliminated all estate and inheritance taxes. Due to the elimination, federal estate taxes do not apply in California. -Sydney will have to pay the applicable estate and inheritance taxes on her grandmother's estate based on her particular taxable situation. -None of the above

While the federal government sometimes taxes the estates of deceased persons, California has eliminated inheritance taxes altogether.

Which of the following is not a requirement of a will? -Legal age -Proper wording -Witnesses -Written in testator's handwriting

Written in testator's handwriting

Jack is buying the Padillas' home. He makes his offer and in his terms states he wants all the window treatments, refrigerator, and microwave to be part of the sale. The Padillas accept his offer on the condition that the refrigerator is the only item that stays in the home. Which contract term applies? -Implied Agreement -Novation -Counteroffer -Option

Counteroffer

Chandra is selling her condo to Fabian. Chandra's deed explains the property has been clear since her ownership. However, she cannot guarantee that is the case prior to buying the condo. Which deed covers this situation? -Bargain and Sale -Special Warranty -General Warranty -Tax

Special Warranty

Why are sales contracts no longer a popular financing instrument in California? -It is very difficult for the seller to remove a buyer that is in default. -The buyer is at risk because he holds no immediate title to the property. -Court battles involving both the seller and buyer could be lengthy and costly. -All of the Above

All of the Above: -It is very difficult for the seller to remove a buyer that is in default. -The buyer is at risk because he holds no immediate title to the property. -Court battles involving both the seller and buyer could be lengthy and costly.

An examinee or licensee may perform what transactions on the DRE website? -Check test results. -Renew salesperson and broker license. -Obtain the current testing schedule. -All of the above.

All of the above.

The signature of a notary public is known as: -Attestation -Acknowledgment -Alienation -Testimonium

Attestation

Certain disclosures must be made within the Subdivided Lands Public Report Notice of Intention. Recently, an amendment to these disclosures has added which of the following to the required disclosures under this notice? -Supplemental Property Tax Notice -Automatic Stay Disclosures -Brownfield Disclosures -All of the above

Supplemental Property Tax Notice

When a buyer hands over earnest deposit money to a salesperson licensed to a broker, or to the broker themselves, what type of relationship does this create? -A Client Relationship, with the broker obligated to give full disclosure to the funds' owners. -A Fiduciary Relationship with the broker having a fiduciary responsibility to the funds' owners. -A Buyer Relationship with the broker obligated to give full disclosure to the funds' owners. -Both A and C

A Fiduciary Relationship with the broker having a fiduciary responsibility to the funds' owners.

Mikela wants to research and study the requirements for the California Real Estate Examination Test. Where can she find the exam's purpose and requirements? -California Business and Professions Code Section 10153 -California Business and Professions Code Section 16600 -Civil Code Section 1798.24 -California Civil Code Section 1798.40

California Business and Professions Code Section 10153

What is the true purpose of Truth in Lending Law? -Closing Costs -Controlling Interest Rates -Disclosure -APR

Disclosure

The Moltasanto family has owned a vineyard in Sonoma for over one hundred years. They have owned all rights to the property since the first day of ownership. The property is always inherited by the oldest child after the death of the previous owner. Which type of estate is the Moltasanto family vineyard? -Fee Simple Defeasible -Fee Simple Absolute -Estate in Reversion -A Leasehold Estate

Fee Simple Absolute

Which of the following equations is the correct application of the capitalization rate? -Net Operating Income divided by Capitalization Rate = Value Memory Tool - IRV = Value. -Capitalization Rate divided by Net Operating Income = Value Memory Tool - IRV = Value. -Net Operating Income divided by Capitalization Rate = Value -Value divided by Net Operating Income = Capitalization Rate

Net Operating Income divided by Capitalization Rate = Value

Jason has approached Sam about purchasing an acre of property that adjoins Jason's backyard. Sam has explained to Jason on numerous occasions that he is not interested in selling. Jason has resorted to telling Sam if he doesn't sell the land, he'll contact the authorities and accuse him of dealing drugs out of his home. Which Penal Code Section addresses this crime? -PC 502.5 -PC 518, 519 -PC 532a -PC 484b-c

PC 518, 519 extra info: California Penal Code Sections 518, 519 addresses obtaining property from another by threatening to accuse that person of a crime or to expose his or her secrets.

ABC Mortgage Company accepts a bribe from a licensee in exchange for approving mortgages for all of his clients. Which Penal Code Section addresses this crime? -PC 556-556.2 -PC 639-639a -PC 830.1 -It is not a crime.

PC 639-639a extra info: California Penal Code Sections 639-639a addresses bribery of a lender to obtain credit or the acceptance of such bribery.

Ernesto is a developer who is building low-to-moderate-income, federally funded homes. He is building multi-family town homes that will help those graduating from welfare education programs get a new start off of public assistance and into the job market. Which of the following federal laws plays a major role in Ernesto's development? -The National Environmental Policy Act -The Clean Air Act -The Contractor's License Law -Both A and B

Both A and B: -The National Environmental Policy Act -The Clean Air Act

Sam is the owner of a ten-unit apartment complex. He has just hired a new property manager to run the property. Serena, the new property manager, has been drawing up a new set of management plans for the property. What should be the deciding factors in the adoption of the new plans? -The Owner's Objectives -The Fair Housing Laws -The Management Agreement -Both A and B

Both A and B: -The Owner's Objectives -The Fair Housing Laws

Jan failed to renew her license prior to its expiration. In order to renew her license now Jan must: -Submit a proper application within 2 years of her license expiration. -Providing evidence of the completion of current required continuing education. -Pay the appropriate late renewal fee. -All of the above.

All of the above. Jan may legally renew the license within two years from such expiration by submitting a proper application, evidence of completion of the current continuing education requirements, and the appropriate late renewal fee.

Greg, a licensee, fails to have his client sign off on the purchaser's counteroffer. Greg's client verbally approves the new terms, but Greg failed to obtain his signature. The deadline for signing the counteroffer is in one hour. Greg decides to sign his client's name. Which Penal Code Section addresses this crime, if it is a crime? -PC 470, 473 -PC 532a -PC504b -It is not a crime.

PC 470, 473 extra info: California Penal Code Sections 470, 473 address signing the name of someone else without the authority from that person and forging documents and then passing off any such falsified documents as genuine in order to defraud another.

Which of the following is not a part of a property management agreement? -Property Description and Term of Agreement -Definition of Responsibilities and Extent of Authority -Americans with Disabilities Act (ADA) -Management Fee and Allocation of Costs

Americans with Disabilities Act (ADA)

John is trying to keep things straight while he studies. He's having a rough time distinguishing federal and state legislation. Help John with the primary focus of federal legislation. -Anti-discrimination laws and fair trade practices -Agency and disclosure requirements -Anti-discrimination and disclosure requirements -Fair trade practices and agency disclosures

Anti-discrimination laws and fair trade practices

Jose has heard rumors that a zoning change will be taking place involving a piece of undeveloped sale property. Jose buys the property in hope the zoning change will take place, making the property much more valuable on the market. Which principle of value applies? -Regression and Progression -Anticipation -Contribution -Conformity

Anticipation

An appraiser is appraising a property that was built 65 years ago. The home has wonderful architectural charm, hardwood floors, and beautiful original molding, but it also has tiny bathrooms, and the closet space is nonexistent. Which type/types of depreciation applies/apply? -Physical Deterioration and Functional Obsolescence -Economic and Functional Obsolescence -Economic, Environmental, and Internal Obsolescence -Functional Obsolescence

Functional Obsolescence

Gerald, a sergeant in the Marine Corps, is getting married and wants to purchase a home. How does he begin the process of getting a VA loan? What follows? -Gerald must have the home appraised and be issued a Certificate of Reasonable Value. He then must apply for the loan through the financial institution of his choice. -Gerald must first apply for a Certificate of Eligibility to obtain a VA loan. The home must qualify with an appraisal and be issued a Certificate of Reasonable Value. -Gerald only need to fill out the necessary paperwork through the Veteran's -Administration Office in his area. -None of the Above

Gerald must first apply for a Certificate of Eligibility to obtain a VA loan. The home must qualify with an appraisal and be issued a Certificate of Reasonable Value.

Which of the following is not considered one of the five economic characteristics of land? -The more demand for a particular property, the more valuable the property. The more demand there is for a particular property, the more valuable it is to consumers looking for real estate. -Each parcel of land has its own nonhomogeneous characteristics. No two properties are the same. -One property will sell quickly if only a few properties in a particular area are on the market. -The three most important economic characteristics of real estate are location, location, and location.

Each parcel of land has its own nonhomogeneous characteristics. No two properties are the same.

California licensing laws define which of the following: -Real Estate Brokerage -Handling Trust Funds -Managing Escrow Accounts -All of the Above

All of the Above

Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful, attractive, and highly desirable. The next day, Agent Smith tells the Miller family that Fernwood is deteriorating, values are falling, and the school district is less than stellar. Name the form of illegal discrimination. -Discriminatory misrepresentation -Steering -It is not a form of illegal discrimination. -Blockbusting

Steering

Patrice has purchased a century-old townhouse in San Francisco. She wants to make some changes and updates to both the exterior and interior. She isn't happy with the historic pediments outside the townhouse. Patrice's vision is of a minimalist, clean, modern home that reflects her personal style. Which type of zoning regulation, if any, may affect Patrice's vision of a minimalist town home? -Enabling Acts -Aesthetic Zoning -Directive Zoning -Patrice may make any changes she would like to her townhouse.

Aesthetic Zoning

Which of the following is not a water right? -Riparian Right -Doctrine of Prior Appropriation -Littoral Right -Alluvial Right

Alluvial Right

The Van Horns deposit funds with ABC Escrow as a requirement for the purchase of their new home. Who is the grantee and the third party, and what is the type of transaction? -The Van Horns are the grantees; and ABC Escrow the third party. This transaction constitutes appropriated closing funds. -The Van Horns are the grantees; and ABC Escrow the third party. This transaction constitutes escrow. -The Van Horns are the third party; and ABC Escrow the grantee. The transaction constitutes escrow. -The Van Horns are the grantees; and ABC Escrow the third party. This transaction constitutes proration.

The Van Horns are the grantees; and ABC Escrow the third party. This transaction constitutes escrow. extra info: The grantee is the buyer, or the Van Horns, while the third party is the neutral escrow holder, or ABC Escrow. Depositing funds with an escrow holder is the beginning of the escrow process.

Formerly, 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 two new bases for discrimination that are illegal in California. These are: -Marital status and legal source of income. -Marital status and source of income. -Marital status and sexual orientation. -Legal source of income and sexual orientation.

Marital status and sexual orientation.

Conchita is applying for a VA loan. She has served in the military, on active service, for eighty-five days. She is trying to buy a townhome near her base for easier commuting. The townhome has qualified with an appraisal and has been issued a Certificate of Reasonable Value. Will Conchita be considered for a VA loan? -Yes, she has met all of the criteria for a Certificate of Eligibility. -No, she has not served the 90 days of active service required. -No, she has not been approved for a Certificate of Eligibility. -None of the Above

No, she has not served the 90 days of active service required extra info: To qualify for a VA loan, the applicant must have served on active duty for 181 days. She may be eligible for a CalVet program loan with 90 days of active duty service.

What are the steps set forth for a real property securities dealer? Which Article do the regulations fall under? -Obtaining a Commissioner's Permit; an RPSD endorsement on a broker license; and proof of a $10,000 surety bond. The regulations fall under Article 6. -Obtaining a Commissioner's Permit and proof of a $10,000 surety bond. The regulations fall under Article 5. -Obtaining a Commissioner's Permit; an RPSD endorsement on a broker license; and proof of a $10,000 surety bond. The regulations fall under Article 4. -None of the Above

Obtaining a Commissioner's Permit; an RPSD endorsement on a broker license; and proof of a $10,000 surety bond. The regulations fall under Article 6.

Penny, a California licensee, has been advertising on the Internet. She specializes in the sale of upscale homes in the Hollywood Hills area. Penny has been violating the Business and Professions Code, Sections 10235.5 and 10140.6. What has she done? -Penny should not be soliciting her services to the residents of California. -Penny failed to indicate in the advertisement her license status. -The services she advertises do not include any actions for which a license is required. -None of the above.

Penny failed to indicate in the advertisement her license status.

Fair Housing Act 1968

Prohibited discrimination concerning the sale, rental, and financing of housing based on race

Melinda's mother recently passed away. She is thinking of selling her belongings in an estate sale. During her research, she came across real and personal property regulations and laws. Please help Melinda understand the legal difference(s) between real and personal property. -For the most part, the rules of the situs state govern the transfer of personal property from seller to buyer. -Tax laws often distinguish between real and personal property. -An agreement for a sale of real property must be in writing and signed by the party to be charged. If the amount or value is $500 or more, an agreement for the sale of personal property must be in writing. -Both B and C

Both B and C: -Tax laws often distinguish between real and personal property. -An agreement for a sale of real property must be in writing and signed by the party to be charged. If the amount or value is $500 or more, an agreement for the sale of personal property must be in writing.

Lot 19, Block 8, Western Acres Subdivision, City of Sacramento, County of Sacramento, State of California. Which method of legal description applies? -Lot and Block System -Metes and Bounds System -Rectangular Survey System -Government Survey System

Lot and Block System

Lily, a licensee, has been referring her first-time home buyers to Safe Insurance Company for all of their insurance needs. The insurance company has been providing Lily with "motivation" in the form of cash to keep the referrals coming. Which law or act prohibits this type of violation? -Fair Lending Laws -RESPA -Equal Credit Opportunity Act -Both A and C

RESPA extra info: The REAL ESTATE SETTLEMENT PROCEDURES ACT (RESPA) ensures that the buyer and seller in a residential real estate transaction involving a new first mortgage loan have knowledge of all settlement costs. RESPA prohibits kickbacks or unearned fees paid to lender for referring customers to insurance agencies, etc.

Which of the following statements is false in reference to a balance sheet? -The balance sheet shows the business's profits for the last 3 years. -The balance sheet shows the assets of a business as of a particular date. -The balance sheet shows the net worth of a business as of a particular date. -The balance sheet shows the business's liabilities as of a certain date.

The balance sheet shows the business's profits for the last 3 years.

A small group of investors are in the initial stages of putting together a real estate investment trust (REIT). Which of the following is not a qualification? -A REIT must be beneficially owned by at least 100 investors. -The company must distribute at least 85% or more of its income to its shareholders. -Each share of certificate of interest must carry with it an equivalent vote. -No five, or fewer, persons may hold more than 50 percent of the beneficial interests.

The company must distribute at least 85% or more of its income to its shareholders.

Shamus McManus purchased property from Sir Ian Wainwright under early English common law. Which of the following were acceptable methods of property transfer? -The transfer of a rock, some dirt, or a branch of a tree (feoffment). -Livery of Seisin, the actual delivery of possession of the property. -A statement made in front of witnesses in sight of the land, and the new owner's entry onto that land. -All of the above.

All of the above.

The duties of a property manager to an owner include which of the following? -Obtaining maximum profit on the property. -Evaluating the Rental Market -Handling Tenant Complaints and Conflicts -All of the above

All of the above: -Obtaining maximum profit on the property. -Evaluating the Rental Market -Handling Tenant Complaints and Conflicts

All property in the United States falls under which system of land ownership? -Feudal System -Allodial System -Freehold System -Dower System

Allodial System

Perry is listing his home with Extra Real Estate Company, a brokerage. He wants the listing as follows: He must receive $250,000 from the sale of the home, anything above that price is the broker's commission. Which type of listing agreement is Perry demanding? -Exclusive Agency -Open Listing Agreement -Exclusive Right to Sell with Automatic Extender -Net Listing

Net Listing extra info: A listing agreement that states the seller is to receive a certain amount of money from the sale and any amount over this will be paid to the broker as commission is called a net listing. Net listings are illegal in most states and are not recognized in California.

Victoria, the lessee is negotiating to lease a condo from Sanchez, the lessor. They have agreed on the monthly lease payment, term of lease, security deposit, and so forth. Victoria plans to start moving in on the first day of next month. Which of the following applies to this situation? -Offer -Contract -Title -Executed

Offer

TBH, Inc. owns land for development adjacent to their corporate headquarters. TBH, Inc. is the sole owner of the property. The land will be developed as a shopping and restaurant area. Which form of ownership does this property fall under? -Severalty -Unity of Possession -Joint Tenancy -All of the above

Severalty

Beth and Brian have been informed a convenience store is going to be built on the corner across from their residence. They are furious and want some answers as to how this could be happening in their neighborhood. Who should they go to for answers and the final word on the decision? -The city or county planning department -The city council or board of supervisors -The owners of the new property -Their city alderman

The city council or board of supervisors

Ken has fallen behind on his property taxes. He has received the "intent to sell" notice and is terrified of losing his home. Ken lost his job and cannot immediately repay the back taxes. How can Ken keep from losing his residence? -Ken has already lost the title to his home by falling behind in his taxes. -After the "intent to sell" notice, a three-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees. -After the "intent to sell" notice, a five-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees. -After the "intent to sell" notice, Ken must repay all back taxes, interest, penalties, and any other applicable fees within one year, and pay the current taxes on time to avoid losing the title to his home.

After the "intent to sell" notice, a five-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees.

Marita and Alexandra set up a Limited Partnership. Marita is named General Partner and Alexandra is named Limited Partner. Marita embezzles funds from the investors. Is Alexandra liable for Marita's indiscretion? -Alexandra is only liable if she is named as a general partner in the certificate or if she participates in control of the business. -Alexandra is as liable to the investors as Marita. However, unless she was involved in the crime, she is only financially liable. -Alexandra is liable and a partner, whether it be a general or limited partner. -Both B and C

Alexandra is only liable if she is named as a general partner in the certificate or if she participates in control of the business.

Lizette is buying her first home today. She is overwhelmed with all of the information that is being disclosed. Sex offender disclosures, smoke detector compliance, title insurance--the list goes on and on. Which of the following are environmental hazards the seller and agent are obligated to disclose? -Earthquake Information -Lead-Based Paint -Mold -All of the Above

All of the Above: -Earthquake Information -Lead-Based Paint -Mold

Which of the following is an action taken by a Mineral, Oil, and Gas specialist on behalf of others? -Solicit borrowers or lenders for or negotiate loans on mineral, oil, or gas property -Lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property -Assist another in filing an application for the purchase or lease of, or to locate or enter upon mineral, oil, or gas property owned by the state or federal government. -All of the Above

All of the Above: -Solicit borrowers or lenders for or negotiate loans on mineral, oil, or gas property -Lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property -Assist another in filing an application for the purchase or lease of, or to locate or enter upon mineral, oil, or gas property owned by the state or federal government.A right thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property.

The law judge has just issued a decision based upon the findings in a formal hearing of a real estate salesperson for various ethical violations. What could the California Real Estate Commissioner do at this point in the proceeding? -Reject the proposed decision -Accept the proposed decision -Reduce the proposed penalty and make an official decision. -All of the above

All of the above Once the administrative law judge issues a proposed decision based upon the findings, the Commissioner may reject or accept the proposed decision, or reduce the proposed penalty and make an official decision. The respondent may petition for reconsideration, and has the right of appeal through the courts.

Marc needs to score 12 points higher on the California State Licensing exam this time to earn a passing score. What was his initial exam score? -Marc's initial score was 68% based on the required passing score of 80%. -Marc's initial score was 63% based on a required passing score of 75%. -Marc's initial exam score was 58% based on the required passing score of 70%. -Marc's initial exam score was 53% based on the required passing score of 65%.

Marc's initial exam score was 58% based on the required passing score of 70%.

Which of the following deeds are not really deeds at all? -Trustee's Deed -Land Patent -Trust Deed -Both A and B

Trust Deed

Maya, who lives in California, just purchased her first home at a Trustee's foreclosure sale. She was given a deed at the sale. What type of deed was she given? -Tax Deed -Grant Deed -Sheriff's Deed -Trustee's Deed

Trustee's Deed

Chandra and Fabian have heard that it is unnecessary to record a deed. Is this accurate? -No, it is necessary and required to record a deed. The deed will not be valid unless it is signed, recorded, and notarized by a notary public. -Yes, it is not necessary for a deed to be recorded. It is still valid and presumed to have been delivered without such recording. -Yes, it is not necessary for a deed to be recorded. However, recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record, and convey the transfer of title. -No, it is necessary and required to record a deed. If it is not recorded, the first to record the deed is considered the first in right to the property.

Yes, it is not necessary for a deed to be recorded. However, recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record, and convey the transfer of title.

Sam is selling one of his rental homes. His advertisement reads: "For Sale By Owner - Owner Will Finance - No Down Payment!" What are the criteria for being considered a creditor under Truth in Lending? -A lender must lend funds 25 times a year and/or must lend the funds for at least five housing loans annually. -A lender must lend funds five times a year and/or must lend the funds for at least 25 housing loans annually. -A lender must lend funds 20 times a year and/or must lend the funds for at least five housing loans annually. -Every lender is considered a Truth in Lending creditor and must follow all of the law's regulations.

A lender must lend funds 25 times a year and/or must lend the funds for at least five housing loans annually.

Which of the following is the dollar value of a mill? A. .0001 B. .001 C. .01 D. .1

ANSWER B: .001 - For any mill rate you are given like those below), multiply by .001 and then use that number to multiply by the assessed value to figure out the taxes for the property. Assuming you are given a single digit mill rate like "7" or "5" or "9": Add two "00" and a decimal point and multiply by the assessed value. (.007 or .009) If you are given a double digit mill rate, like "75" or "95," add one "0" and a decimal point (.075 or .095) and multiply by the assessed value. If you are given a mill rate like 75.5 or 85.5, add one "0" to the left and a decimal point and multiply by the assessed value. (.0755 or .0855)

David has been laid off from his job. Carey, his spouse, only works part time and has been trying to pick up extra shifts. They have missed their third home loan payment this month. Their lender has called the entire balance due and payable immediately. Which clause applies to their situation? -Alienation Clause -Acceleration Clause -Satisfaction of Mortgage Clause -Satisfaction Clause

Acceleration Clause extra info: An acceleration clause allows the lender to call the entire balance due and payable immediately if the borrower defaults on the loan by missing payments.

Jane feels she has been discriminated against in her search for a new home. She's a single mother of two who works full time. Where does she go with a complaint? -The Office of Fair Housing and Equal Opportunity (OFHEO) -Her real estate agent and HUD -Her real estate agent, HUD and MLS -The Attorney General's Office

The Office of Fair Housing and Equal Opportunity (OFHEO)

Saffron and Serge have a mobile home in which they travel from city to city, town to town, selling pottery and playing music. One week they may be in Berkeley, the next Sacramento. The couple travel wherever their mobile home will take them. Which of the following is true? -By the definition of the California Health and Safety Code, this couple's 'mobile home' is not, in fact, a mobile home. -The mobile home can be sold by a real estate licensee as real property, since it constitutes a dwelling unit. -To become real property, their mobile home must have a permanent foundation. -Saffron and Serge cannot legally occupy the mobile home without a Certificate of Occupancy.

To become real property, their mobile home must have a permanent foundation.

A mill rate is used in real estate -appraisal, to determine market value. -finance, to determine the points charge on a loan. -taxation, to determine the owner's tax bill. -assessment to determine the jurisdiction's budget.

taxation, to determine the owner's tax bill.

The Subdivision Map Act, the Subdivided Lands Law, and Land Projects all have a minimum number of lots required to meet requirements. Which of the following is correct? -The Subdivision Map Act and the Subdivided Lands Law both require a minimum of five lots for regulation and to be defined as a subdivision. To qualify as a Land Project, there must be fifty or more vacant lots. -The Subdivision Map Act regulates the division of five or more lots; The Subdivided Lands Law defines a subdivision as a division of land into two or more lots; and a Land Project must have fifty or more vacant lots. -The Subdivision Map Act regulates the division of two or more lots; The Subdivided Lands Law defines a subdivision as a division of land into five or more lots; and a Land Project must have fifty or more vacant lots. -None of the Above

The Subdivision Map Act regulates the division of two or more lots; The Subdivided Lands Law defines a subdivision as a division of land into five or more lots; and a Land Project must have fifty or more vacant lots.

Tim owns a mobile home he wants to transform into real property. He attaches the mobile home to an approved foundation; records a document reflecting that the mobile home has been affixed to an approved foundation system; and obtains a certificate of occupancy. Which step, if any, did Tim leave out? -Tim forgot to ensure the axles are attached to the frame. -Tim forgot to obtain a building permit. -Tim forgot to have the piece of property on which the mobile home is located mapped and recorded. -Tim fulfilled every prerequisite for transforming his mobile home into real property.

Tim forgot to obtain a building permit.

In some counties, certain funds are collected and then distributed to be used only for the exclusive purpose of deterring, investigating, and prosecuting real estate fraud crimes. This fund is the: -Real Estate Advisory Commission Fund. -Real Estate Recovery Account. -Real Estate Fraud Prosecution Trust Fund. -Real Estate Fraud Investigation Fund.

Real Estate Fraud Prosecution Trust Fund.

Patrice and Jacque have secured a mortgage loan. They must provide at least a 20% down payment, but are not required to have a government guarantee or private mortgage insurance. What type of mortgage loan have they obtained? -A Conventional Insured Loan -An Exchange -Conventional Loan -Syndicate Financing

Conventional Loan

Lydia has decided to actually spend a considerable amount of time STUDYING for the exam this time, in hope of earning a passing score. Her application has expired in the two years of fruitless reexaminations. What does she need to do to reapply? -File the Examination Result Notification (RE 418), along with the appropriate fee. -File an Examination Change Application (RE 415), along with the appropriate fee. -Submit the Salesperson Examination Schedule Notice (RE 401A), along with the appropriate fee. -File the Salesperson Examination Application (RE400A) along with the appropriate fee.

File the Salesperson Examination Application (RE400A) along with the appropriate fee.

Dr. Mullins owns a home he leases to college students. The tenants have been complaining to Dr. Mullins of bats in the attic. At times, the bats have flown downstairs into the living areas of the home. Recently in the area, a man was bitten by a rabid bat. The students are worried and are unsure of their rights. Which guarantee covers the tenants' right that the property meets the minimum health and housing codes? -Implied Right of Habitability -Reversionary Right -Leasehold Interest Right -Possessory Right

Implied Right of Habitability extra info: By renting the property, the landlord has certain responsibilities, First is guaranteeing that the property meets the minimum health and housing codes, known as the implied right of habitability.

Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property outside Las Vegas and believes the California market could be very lucrative. Is it permissible for Gerard to advertise in this manner? Why or why not? -It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license. -It is not permissible for Gerard to solicit California residents. State-to-state real estate transactions must be approved by the DRE. -Yes, it is permissible for Gerard to advertise his services to California residents. He is only advertising his services, not offering any advice. Therefore a California license is not needed. -None of the above

It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license.

Jason, a broker, has been accused of conversion. His partner, Justin, has been accused of commingling. Which has been accused of a more serious offense? -Jason, conversion is considered a much more serious violation than commingling and has heavy criminal penalties. -Justin, commingling is considered a much more serious violation than conversion and has heavy criminal penalties. -Both Jason and Justin have been accused of very serious crimes and it will be up to the court system to decide who has committed a more serious offense. -None of the Above.

Jason, conversion is considered a much more serious violation than commingling and has heavy criminal penalties.

Which of the following is not considered a type of common interest ownership? -Community Apartment Project -Condominiums -Stock Cooperatives -None of the Above

None of the Above

Which of the major warehousing agencies in the Secondary Market are not regulated by a government agency? -Federal National Mortgage Association (Fannie Mae) -Government National Mortgage Association (Ginnie Mae) -Federal Home Loan Mortgage Corporation (Freddie Mac) -None of the Above

None of the Above

XYZ Escrow has been turned down in its application for an escrow license. What could be the reasoning behind the denial of the license to XYZ? -XYZ Escrow could not prove it was financially solvent and was unable to furnish a surety bond of at least $100,000. -XYZ Escrow could not prove it was financially solvent and was unable to furnish a surety bond of at least $25,000, or more, based upon the yearly average trust obligations. -XYZ Escrow placed funds in a trust account that was exempt from execution or attachment. -XYZ Escrow could not prove it was financially solvent and furnish bonds of indemnification for all employees of at least $25,000.

XYZ Escrow could not prove it was financially solvent and was unable to furnish a surety bond of at least $25,000, or more, based upon the yearly average trust obligations.

If a conventional loan is at 16% and the VA loan is at 15%, the lender will want to charge how many points to increase the yield on investment? -Six Points -Eight Points -Four Points -Two Points

Eight Points extra info: The rule of thumb is that 8 discount points are required to increase the percentage yield by 1%, so the lender will want to charge 8 points to increase the yield on investment.

XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in length and have fixed rents. XYZ's contracts contain a clause in which both parties agree to annual adjustments of rent based on tax increases and other operating costs. If the previous year did not see more than a five percent increase in these costs, there is no change in the rent. What is the clause? -Allowable Vacancy Rate Clause -Escalator Clause -Operating Costs Adjustment Clause -Periodic Tenancy Clause

Escalator Clause

Lydia applied for the salesperson examination in January 2014. She sat for the exam three times in 2014 and four times in 2015. Each time, Lydia did not receive a passing score. How many times may Lydia sit through the examination in 2016? -Lydia may re-take the exam as many times as it takes to earn a passing score in 2016. -Lydia may re-take the exam a maximum of three times in 2016. The total number of times she has taken the exam will then equal ten, the maximum allowed in a three-year period. -Lydia may re-take the examination as many times as it takes to earn a passing score, but her application will expire in January and she must reapply first. -Lydia may possibly want to reconsider her dream of becoming a California real estate agent.

Lydia may re-take the examination as many times as it takes to earn a passing score, but her application will expire in January and she must reapply first.

Alexandra and Marita are forming a real estate syndicate. They have their initial investments and are ready to proceed. What happens next? -Operation, Origination, Completion or Liquidation -Syndication, General Partnership, REIT -Origination, Operation, Completion or Liquidation -Origination, Exemption, Corporation

Origination, Operation, Completion or Liquidation extra info: Origination(planning and buying the property, following registration and disclosure mandates, etc.); Operation(in which the sponsor generally manages BOTH the syndicate and the actual property); Completion or Liquidation(the property's resale).

Jeanne and Mark are buying a home. They've been told their mortgage payment will be $1,072 per month. There's also an additional amount of $335.62 being added to the monthly payment, bringing their total to $1,407.62. It was explained the additional $335.62 is to cover insurance and property taxes. Which loan definition applies? -Estoppel -Disintermediation -Impounds -In Contract

Impounds extra info: Impounds are funds of the buyer's money that the lender sets aside for future needs associated with the property, such as insurance and taxes. Impounds are sometimes referred to as the buyer's escrow.

Gary and Paul have wooden shutters installed throughout their home. A few years later, Paul is promoted by his employer and transferred to another city. Gary wants to take the wooden shutters to their new home. Paul insists they must remain with the home. Which of the five tests for real and personal property applies? -Method of Attachment -Adaptability -Intent -All of the above

All of the above

Rafe is an assistant property manager of a large residential community. He wants someday to be promoted to property manager. Rafe needs to consistently learn his duties and responsibilities to the owner and demonstrate them accordingly. What duties/responsibilities should he focus on? -Fiduciary Responsibility to the Owner -Achieving the Highest Rate of Return for the Owner -Disclosure of Material Facts -Both A and B

Both A and B: -Fiduciary Responsibility to the Owner -Achieving the Highest Rate of Return for the Owner

Tucker, a licensee, has been instrumental in the sale of a nightclub to a group of investors. He has guided the buyers every step of the way in obtaining this new business opportunity. What government agencies are also in need of notification by the investors concerning their new business? -IRS -CA Department of Tax and Fee Administration -California BRE -Both A and B

Both A and B: -IRS -CA Department of Tax and Fee Administration

Why would a Contract for Deed (Installment Sale Contract) be attractive to certain buyers? -Buyers who cannot come up with a down payment may lease to own for a period of time, usually five years. -Buyers who can only make a small down payment with monthly installments. Usually they must meet certain conditions and the contract does not require conveyance within six months. -Buyers who can only make a small down payment with monthly installments. Usually they must meet certain conditions, and the Contract for Deed does not require conveyance (transfer) within the same year. -Buyers have the title conveyed to them, usually after two years, when certain conditions are met and monthly installments are made toward the down payment.

Buyers who can only make a small down payment with monthly installments. Usually they must meet certain conditions, and the Contract for Deed does not require conveyance (transfer) within the same year. extra info: A contract for deed is typically used for buyers who can only make a small down payment and monthly installments. Transfer of title is not required within 1 year and only after the buyer has met certain named conditions.

Which of the following are functions of the Federal Reserve? -Buying/Selling of Securities and Discount Rates -Participation Financing -Debt Coverage -Oversees Lending Laws

Buying/Selling of Securities and Discount Rates extra info: The Federal Reserve System is a central banking system designed to manage the nation's economy and does so by buying and selling securities and discount rates to control the amount of money in the market.

Sumatra has had a terrible year. He lost his business and now he has lost his home in foreclosure. The proceeds from the foreclosure sale were not sufficient to cover his debt, and NOW the lender has taken him to court to obtain more money. Which of the following applies to Sumatra's situation? -Deficiency Judgment -Deed in Lieu of Foreclosure -Equitable Right of Redemption -Non-Judicial Foreclosure Judgment

Deficiency Judgment extra info: If the proceeds from the foreclosure sale are not sufficient to cover the debt, the lender can go to court and seek a deficiency judgment against the borrower that places a general lien against all of the borrower's assets.

Mrs. Jenkins has lived in her little 1940s cottage for forty years. Her home is immaculately maintained; it has a beautiful, well-manicured garden, and is just as lovely inside as outside. Unfortunately, the same cannot be said for the rest of her neighborhood. Other neighbors have let their properties go downhill. There is absolutely no curb appeal to any of the other homes in her neighborhood. Mrs. Jenkins' neighborhood is definitely in decline. Which type/types of depreciation applies/apply? -Economic, Environmental, or External Obsolescence -Physical Deterioration -Functional Obsolescence -Physical Deterioration and Functional Obsolescence

Economic, Environmental, or External Obsolescence

What does the term "turnover" reference in a business opportunity? -The amount of employees being employed and leaving employment of a business. -The number of times the inventory is sold per year. -The number of times a business has been sold. -None of the above

The number of times the inventory is sold per year.

Victoria decides not to lease the condo from Sanchez. (They have an oral agreement regarding the 18-month lease.) She tells him she has changed her mind the day before she had agreed to move in. He has spent time and money getting the property ready for Victoria and is thinking of suing. Which type of contract applies to the situation? -Valid -Unenforceable -Voidable -Void

Unenforceable

Which of the following is not considered one of the six distinct forms of ownership in California? -Tenancy in Common -Severalty -Joint Tenancy -Voluntary Tenancy

Voluntary Tenancy

XYZ Escrow has gone out of business. They committed one of THE violations of all violations of escrow holder regulations. What is the violation? -XYZ Escrow charged a fee for its services. -XYZ Escrow did not maintain the records and files of its clients. Due to poor record keeping, several escrow accounts at XYZ were overdrawn. -XYZ Escrow used forms at closing that were neither simple nor clear. In several instances, the closing of escrow was behind schedule and held up the completion of the real estate transaction. -XYZ Escrow Company submitted the required annual audit late to their CPA for an additional audit.

XYZ Escrow did not maintain the records and files of its clients. Due to poor record keeping, several escrow accounts at XYZ were overdrawn. extra info: California regulations require an escrow holder to maintain records and files on a daily basis and ensure that the account is never overdrawn. The escrow holder must be sure that not a single procedure in maintaining such an acount is overlooked.

Jacinda makes collections on real estate loans. Last year, she made approximately 20 collections and collected $38,000. Must Jacinda be licensed? -Yes, if a collector makes more than ten annual collections, or collects more than $40,000, he/she must be licensed as a California real estate broker. -No, if a collector makes more than forty annual collections, or collects more than $10,000, he/she must be licensed as a California real estate broker. -Yes, if a collector makes more than fifteen annual collections, or collects more than $40,000, he/she must be licensed as a California real estate broker. -Yes, if a collector makes more than twenty annual collections, or collects more than $30,000, he/she must be licensed as a California real estate broker.

Yes, if a collector makes more than ten annual collections, or collects more than $40,000, he/she must be licensed as a California real estate broker.

The Commissioner discovers in an audit commingling of trust accounts by a licensee. At what amount does the court issue a restraining order against the licensee? -In excess of $50,000 -In excess of $100,000 -In excess of $30,000 -In excess of $10,000

In excess of $10,000 extra info: If an audit conducted by the Commissioner shows either commingling or conversion of trust funds in excess of $10,000.00, then the court may issue an order that restrains the licensee from committing any more or additional acts to continue to inappropriately handle the funds of his clients or others in his practice as a real estate licensee

John completes the Salesperson Examination Application and submits it to the California Department of Real Estate. Driving home from work, he realizes he used his old address and not his new one on the application. What should he do? -Contact the DRE and tell the story of how he used the incorrect address and request his application sent back in order to make the change. -Once a completed Salesperson Examination Application is submitted to the DRE, no changes of any kind may be made to the application. -John may fill out the portion of the Salesperson Examination Application that needs changing and send it to the DRE. He must also submit in writing the situation and the reason for the alteration of the original application. -John can submit an Error Correction form by email.

Once a completed Salesperson Examination Application is submitted to the DRE, no changes of any kind may be made to the application.

Jonathan is in the process of refinancing his home loan. Due to the lowering of interest rates and Jonathan's credit score improvement, he has been able to secure a conventional loan with an excellent annual percentage rate. Unfortunately, his current loan contract contains a stipulation that if he repays the loan before three years, he will owe the lender a fee of two percent of the loan balance. Which clause applies to Jonathan's situation? -Subordination Clause -Subrogation -Prepayment Penalty Clause -Alienation Clause

Prepayment Penalty Clause extra info: A prepayment penalty clause allows a lender to charge extra interest if the loan is paid off before the normal completion date.

The Ritchie family has put their home on the market. The Sampsons make an offer on the Ritchies' home. Suddenly, the Ritchies decide not to sell their home. They explain to Sara, their agent, that the Sampsons "aren't quite right" for the neighborhood. What should Sara do? -The Ritchies are her clients. Sara must honor their wishes and remove the home from the market. -Sara must explain to the Richies that she cannot ethically remove a property from the market, after an offer has been made, to sidestep a purchase by a party. -Sara must withdraw herself from the relationship with the Ritchies or from any situation where client discrimination occurs. -Both B and C

Both B and C: -Sara must explain to the Richies that she cannot ethically remove a property from the market, after an offer has been made, to sidestep a purchase by a party. -Sara must withdraw herself from the relationship with the Ritchies or from any situation where client discrimination occurs.

John is studying for his California real estate license. He is studying federal law, state law, and local law. Now, he is trying to get a handle on something called "Professional Code." What source has no input on the topic John is currently studying? -Federal and state legislation -Industry self-regulation through trade associations and institutes -The Better Business Bureau® -State real estate licensing regulation

The Better Business Bureau®

What are the major differences between a mortgage and a deed of trust? -The amount of interest that may be charged and the method of foreclosure on default. -The number of parties involved and the method of foreclosure on default. -The collaterized form of the loan and the method of foreclosure on default. -None of the above.

The number of parties involved and the method of foreclosure on default. extra info: In a mortgage, there are two parties involved while a deed of trust has three involved parties with the trustee holding the legal title and right to foreclose.

Olive Maccones dies without a will. She has three sons and seven grandchildren. She owned a substantial amount of property. What happens to the property? -The property escheats back to the state. -The property will be intestate and distributed by the state to the heirs. -The property will be transferred according to the Statute of Descent and Distribution. -Both A and C

The property will be transferred according to the Statute of Descent and Distribution.

Public notice must be given of a bulk transfer of inventory in a business sale. What is this notice known as and where must the notice be published? -The public notice is known as Notice of Intent to Transfer Inventory and must be published in a general circulation newspaper. -The public notice is known as Notice of Intent to Sell and must be published in a trade newspaper. -The public notice is known as Notice of Intent to Sell Bulk and must be published in a general circulation newspaper. -The public notice is known as Notice of Intent to Sell Bulk and must be published in a trade newspaper.

The public notice is known as Notice of Intent to Sell Bulk and must be published in a general circulation newspaper.

John is still studying for his California real estate license. Once again, he is having a difficult time keeping areas straight. Help John with the largest area of the NAR Code of Ethics Standards and Practices. -Article 16 - Ethics and Agency Relationships -Article 12 - Truth in Advertising -Article 9 - Disclosure -Article 1 -Protecting the Best Interest of the Client

Article 16 - Ethics and Agency Relationships

Who benefits from a long-term lease? -The tenant - 100% of rent is deductible as an expense. -The landlord - The property is leased for a long period of time, guaranteeing a return on investment. -The tenant - The total debt load of the tenant remains the same. -Both A and C

Both A and C: -The tenant - 100% of rent is deductible as an expense. -The tenant - The total debt load of the tenant remains the same. extra info: A long-term lease is a good approach if the property is usable as is, offering the tenant 100% of the rent being deductible as expense with the tenant's total debt load remaining the same; and while there are some disadvantages to the landlord, he does benefit from the property being leased with a guaranteed return on investment.

The designation "grand theft" is used in relation to the theft of: -Certain farm crops or animals, personal and real property with value of less than $950. -Automobiles and other personal property valued over $950. -Money, labor, real and personal property that exceeds a value of $950. -Both B and C

Both B and C: -Automobiles and other personal property valued over $950. -Money, labor, real and personal property that exceeds a value of $950.

Penny and Joe rent an apartment in the Trade Winds apartment complex. They moved in one month earlier and signed a one year lease. Today the couple received a notice stating the complex has been sold and their lease will terminate at the end of thirty days. Is this a violation? -No, if the complex has been sold, the new owners may do with the apartments as they wish. A thirty day notice to vacate is more than sufficient. -Yes, it is a violation. Penny and Joe must have sixty days from the sales transaction to vacate their apartment and terminate the lease. -Yes, it is a violation. Leases do not terminate because a property is sold. -None of the above

Yes, it is a violation. Leases do not terminate because a property is sold.

Marita tells Alexandra they must obtain their broker-dealer license from the Department of Corporations to engage in the sale of real estate syndicate security interests. Alexandra disagrees with Marita, explaining they both have their broker licenses and that is sufficient. Who is correct and why? -Marita is correct. Section 15632 was added to The Real Estate Syndicate Act requiring real estate brokers to obtain a broker-dealer license. -Alexandra is correct. Section 25206 was added to the Corporations Code making obtaining a broker-dealer license optional. -Marita is correct. Section 25206 has an added provision dealing with brokers violating the Corporations Code and requiring the broker-dealer license. -None of the above

Alexandra is correct. Section 25206 was added to the Corporations Code making obtaining a broker-dealer license optional.

Juanita is in the process of buying Amir's home. She made an offer that was accepted by Amir and both are happy with the financial terms. After paying for several inspections, Juanita has found serious structural and electrical issues with Amir's home. In the contract, she has requested these items be rectified at Amir's expense within thirty days. At the end of thirty days, Amir is unwilling to spend the money to correct the items. What are Juanita's options? -Juanita may simply proceed with the contract, despite Amir's unwillingness to correct the problems. -Juanita may cancel the contract altogether. -Juanita could possibly sue to have Amir take care of the issues and then continue with the transaction. -Both A and B

Both A and B: -Juanita may simply proceed with the contract, despite Amir's unwillingness to correct the problems. -Juanita may cancel the contract altogether.

Which of the following is not a level of licensing for real estate appraisers? -Residential License -Certified Residential Real Estate Appraiser -Certified General Real Estate Appraiser -Certified Specialized Real Estate Appraiser

Certified Specialized Real Estate Appraiser

Hannah is a newly licensed California real estate salesperson. She has aspirations of one day being the California Real Estate Commissioner. How does she get there and what does she do once she's there? -Hannah must become an attorney as well as a licensed real estate agent. She would need to have the appointment of the Governor of California. Her primary duty would be the qualification of applicants and issuance of real estate licenses. -Hannah would have to be appointed by the California Real Estate Commission. Her primary duty as Commissioner would be regulation of the sale of subdivision interests. -Hannah would need to be elected the California Real Estate Commissioner in a state-wide election. Her primary responsibilities as Commissioner would be to enforce the Real Estate Law and Subdivided Lands Law. -Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved.

Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved. The California Real Estate Commissioner is appointed by the Governor, and serves as the chief executive of the Department of Real Estate with the responsibility to enforce the Real Estate Law and the Subdivided Lands Law in a way to offer maximum protection for persons dealing with real estate licenses and for purchasers of subdivided real property.

Maria, a single mother of three, has been saving to buy the family's first home. Her budget is limited, but there is a home she can easily afford on the market. Unfortunately, there have been zoning changes in the area, and a twenty-four hour convenience store is located across the street. Is this deterioration curable or incurable? -Curable -Incurable -It may be curable if the surrounding neighborhood is well-maintained and the upkeep is good. If the remainder of the area is on the decline, it is probably incurable. -Both A and C

Incurable

Sara waited and waited and waited for what she thought was a lifetime. Finally, Thursday morning the results of her California real estate examination arrived. What was the maximum length of "the lifetime" Sara waited and could she have gotten her results by another method? -Sara's lifetime wasn't too long. The results are normally mailed out in five days. She could have also received her results online through the eLicensing system and through the Interactive Voice Response system. -Sara was exaggerating her lifetime. The results are guaranteed to be in her hands in five days. She could have also received her results online through the eLicensing system and the Interactive Voice Response system. -Instead of waiting the five-plus days for the mailed results, Sara could have called the DRE, Sacramento Office, and received her results over the telephone. She could have also used the eLicensing system online to view her score. -Instead of waiting a "lifetime," Sara could have hastened the process using the online eLicensing and the Interactive Voice Response telephone system. This would have cut down on the usual wait time of thirty days.

Sara's lifetime wasn't too long. The results are normally mailed out in five days. She could have also received her results online through the eLicensing system and through the Interactive Voice Response system.

Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low offer through a "dummy" purchaser, or an accomplice who is not a buyer at all. Bill then sells the property to the buyer for the higher price, with the difference being profit. What's the violation? -Commingling -Secret Profit -False Promise -Dishonest Dealing

Secret Profit Section 10176(g) of the Business and Professions Code covers secret profit cases where the broker, who already has a higher offer from another buyer, makes a low offer, usually through a "dummy" purchaser. The broker then sells the property to the interested buyer for the higher price, with the difference being the secret profit.

What is required by a notary of the person signing the notarized document? -A thumbprint of the person signing the document. -A right thumbprint of the person signing the document. -A right thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property. -A thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property.

A right thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property.

Which of the following is not considered a basic real estate deed?? -General Warranty deed -Bargain and Sale deed -Special Warranty deed -Sheriff's deed

Sheriff's deed

Civil Rights Act 1866

the original fair housing statues, prohibits discrimination in housing based on race.

Which of the following is the dollar value of the mill rate 86.5? 86.5 0.865 0.0865 8.065

0.0865

Alexandra and Marita have formed a REIT. They have their investors and resources and are ready for business. The REIT will be investing in an assorted portfolio of real estate and mortgage investments. What type of REIT have Alexandra and Marita formed? -An Equity Trust -A Mortgage Trust -A Combination Trust -A Joint Venture Trust

A Combination Trust

This is the most frequently used organizational form for real estate syndicates. Which form fits the description? -The General Partnership or Joint Venture -The Corporate Form -The Limited Partnership -The Combination

The Limited Partnership

Under the amended Davis-Stirling Common Interest Development Act, in order to grant the exclusive use of a common area to one or more owner, there must be a passing affirmative vote of what percentage of the owners of that common interest development? -51% -67% -69% -75%

67%

Which of the following statements in reference to a deed is untrue? -The deed transfers ownership only one time. -In a deed, alienation is another term for transfer or convey. -A deed must be recorded in order to be valid. -The primary variation in the different types of deeds are the promises made by the grantor.

A deed must be recorded in order to be valid.

Each of the following types of housing, with one exception, falls under the heading of Common Interest Development. Which is the exception to this? -A manufactured housing community. -A condominium project. -A community apartment project. -A stock cooperative.

A manufactured housing community.

Every California dwelling unit was required to have a Carbon Monoxide Detector by: -January 1, 2001 -May 7, 2010 -July 1, 2011 -January 1, 2013

January 1, 2013

Martin is purchasing a personnel agency from Warren and his partner. The agency has been very successful over its twenty years in business, and Warren is ready to retire. What elements should Martin expect from Warren as part of the business sale? -A bill of sale and specific financial statements. -A bill of sale and a bulk transfer of any inventory. -A bill of sale; a balance sheet; the profit and loss statement; and a bulk transfer of any inventory. -None of the above

A bill of sale; a balance sheet; the profit and loss statement; and a bulk transfer of any inventory.

Jerilyn has been approved for a home loan in the amount of $250,000 with two points. If one point equals one percent (1%) of the loan balance, what will the points cost Jerilyn? How are the points shown at closing? -$5,000 - The points are shown as a debit to the buyer. -$10,000 - The points are shown as a debit to the buyer. -$5,000 - The points are shown as a credit to the buyer. -$500 - The points are shown as a debit to the buyer.

$5,000 - The points are shown as a debit to the buyer. extra info: $250,000 x 1% = $2,500 per point x 2 points = $5,000 owed by the buyer so it will be shown as a debit to the buyer at closing.

Which of the following statements concerning California Trust Account Requirements is false? -A trust account may be an interest-bearing account. -A salesperson, licensed to the broker, may, under certain conditions, make a withdrawal from the broker's trust account. -An out-of-state trust account is permitted under certain conditions. -Both A and C

A trust account may be an interest-bearing account.

Civil Code Section 1365.1 states that the homeowner association must distribute a written notice entitled, "NOTICE ASSESSMENTS AND FORECLOSURE" to EACH member of the common interest development association. How long immediately preceding the beginning of the association's fiscal year must this notice be distributed? -60 days -90 days -3 months -4 months

60 days

At the present time, funds are limited for CalVet Program mortgage loans. A decision must be made to give one veteran a loan over another. Veteran A has been in the military service for 20 years and is a four-time decorated hero. He wants to buy an Oregon farm with the loan. Veteran B has been in the military four years. He lost his right leg in a battle in Afghanistan. He wants to buy a small home in Las Vegas for himself and his mother, who will live with him. Which veteran will they choose and why? -Veteran A will be chosen based on his years of service, his decoration, and his desire to buy a farm. -Veteran A will be chosen because he is still on active duty; Veteran B has received a discharge from service, making him less desirable for the program's loan. -Veteran B will be chosen because his family members will take priority due to his injury. -Neither will be chosen for the loan because both are planning on buying homes outside the state.

Neither will be chosen for the loan because both are planning on buying homes outside the state. extra info: To qualify for a CalVet loan, the veteran must have served at least 90 days of active duty, either still be on active duty or have received an honorable discharge, and must buy a home or farm in California.

Jamison, a broker, has been fined $10,000 and is being sentenced to four months' prison time for violations he has committed through his brokerage. Which type of violation did he possibly commit? -Commingling -Restitution -Advance Fees for a Loan secured by Lien on Real Property -Account Fraud

Advance Fees for a Loan secured by Lien on Real Property

Who is the largest private mortgage insurer? -Mortgage Guarantee Insurance Corporation -Fannie Mae -Freddie Mac -VA

Mortgage Guarantee Insurance Corporation

Which of the following is not a required disclosure? -Agency Relationship Disclosure -The owner's motivation to sell -Megan's Law -Asbestos

The owner's motivation to sell

A corporation is found guilty of charging purchasers advanced fees for securing mortgage loans on homes they have listed. What is the punishment for the violation? -A fine up to a maximum of $50,000. -A fine up to a maximum of $10,000, with up to six months of prison time, or a combination of both. -A restraining order issued against the corporation protecting clients and restitution and/or damages paid. -None of the above.

A fine up to a maximum of $50,000 extra info: It is illegal under Section 10085.5 for anyone to charge or collect advance fees for soliciting lenders on behalf of borrowers in connection with any loan to be secured by a lien on real property before the borrower becomes obligated to complete the loan. A corporation violating this section of the penal code is punishable with a fine up to $50,000, while an individual can receive a fine up to $10,000 or 6 months' prison time or both.

Samantha and Todd live in a mobile home park. They have lived in the park for five years and have never been late on their rent, utilities, or any other bills. Today the mobile home park landlord has terminated their tenancy. Which of the following is not a justifiable legal reason why this couple might have been evicted? -The park had become overcrowded. -They did not follow rules and regulations. -They had become a substantial annoyance to other tenants. -They failed to sufficiently maintain their property to meet management's standards.

The park had become overcrowded.

Pelican Bay Apartments is a complex consisting of 80 units. The units are available in studio and one-, two-, and three-bedroom apartments. Kimberly Bracco is the property manager of Pelican Bay. She has decided to stay in her condo and not reside at Pelican Bay. She is also pursuing her California real estate license as she manages the property. Is anything wrong with this scenario? -No, Kimberly does not have to reside on the property she manages. Pursuing her real estate license is additionally optional. -Yes, in California any apartment complex that has sixteen or more rental units must have a manager that lives on-site. In addition, Kimberly, as an off-site manager, must hold a real estate broker license. If she decides to hire a residential manager, who lives on the property, they do not need a broker's license. -Yes, Kimberly is required to live on-site if the complex has more than ten rental units. -None of the above.

Yes, in California any apartment complex that has sixteen or more rental units must have a manager that lives on-site. In addition, Kimberly, as an off-site manager, must hold a real estate broker license. If she decides to hire a residential manager, who lives on the property, they do not need a broker's license.

Larry and Carlos are purchasing a 1930s bungalow in the Hollywood Hills. It is their dream home and once belonged to a silent film star. Is a lead-based paint disclosure necessary on this lovely, historic bungalow? -No, only if encapsulation or abatement have been conducted on the property and the seller is aware of these processes. -Yes, the seller of any residential structure built before 1978 is obligated to provide a lead-based paint disclosure. -Yes, the seller of any residential structure built before 1988 is obligated to provide a lead-based paint disclosure. -Yes, the seller of any property purchased prior to 1978 is obligated to provide a lead-based paint disclosure.

Yes, the seller of any residential structure built before 1978 is obligated to provide a lead-based paint disclosure.

Who enforces the codes of the California State Housing Law? -State Building Inspectors -Federal Building Inspectors -Local Building Inspectors. -None of the Above.

Local Building Inspectors.

Eviction is the legal procedure of removing a tenant from a property because -They didn't pay for their utilities -The Landlord wants the place for a relative -The tenant has breached their lease -The tenant has sublet the property with no restriction in the lease

The tenant has breached their lease

Jonathan decides to sell his home and transfer all of his property ownership rights to the new buyer. This bundling and selling of rights is known as: -Livery of Seisin -Transfer of Appurtenances -Non-homogeneous Situs -Transfer of Chattels

Livery of Seisin

The Juarez family are moving into a new home and are having the home tested for Radon. They have young children and are worried about the possible effects the gas could have on their health and development. What is the interior reading that should concern the family? -4 pCi/L Radon and above -2.73 pCi/L Radon and above -3.52 pCi/L Radon and above -They should be concerned at the presence of any level of Radon in their new home.

4 pCi/L Radon and above

Which regulation or section(s) apply to the use of the Internet for advertising in California? -Commission's Regulation 2770 -Commission's Regulation 007 -Business and Professions Code, Sections 10235.5 and 10140.6 -Both A and B

Commission's Regulation 2770

Renee is leasing her condo in San Francisco from Brad. For the first six months of the lease, her rent will be $1,200 per month. Every six months her rent will increase $100 per month based on the increases to Brad in taxes, insurance, and other operating costs. What type of lease has Renee signed? -Index Lease -Graduated Lease -Escalator Clause Lease -Economic Rent Lease

Escalator Clause Lease extra info: Renee has signed a lease that includes an escalator clause which is a clause in a lease in which the parties agree to an adjustment of rent based on set increases in taxes, insurance, maintenance, and other operating costs.

Jennifer is a single mother looking for a place to live. She sees an ad on Facebook by a private owner which states "No young children because of pool". Would this be a Fair Housing Violation? -No. The owner is looking out for the family's safety. -No. Private owners do not fall under Fair Housing and can deny housing to all but race. -Yes. Private owners cannot advertise against a protected class. -Yes. This is against the Fair Housing Act and the owner must allow all families.

Yes. Private owners cannot advertise against a protected class.

Under California Finance Code, what is defined as a consumer credit transaction that is secured by real property located in California, which is used, or intended to be used or occupied, as the principal dwelling of the consumer? -Vacant land loan -Consumer loan -Commercial loan -Land development loan

Consumer loan

Miguel sits down, ready and prepared to take the examination. He neatly places his slide rule, programmable calculator, single piece of scratch paper, answer sheet, pencil and pocket-size electronic calculator on the desk and he is ready to begin. Although extremely prepared, which item of Miguel's is NOT permitted in the testing site? -The slide rule -The programmable calculator -The single piece of scratch paper -The pocket-size, electronic calculator

The programmable calculator

John and Jane Van Horn are buying their first home from the Simpson family. ABC Escrow will be the closing agent for both the Van Horns and Simpsons. Which of the three is considered the neutral party in this real estate transaction? -The Van Horns are the neutral party; the Simpsons are the sellers; ABC Escrow is the lender. -The Simpsons are the neutral party; the Van Horns are the buyers; ABC Escrow is the lender. -ABC Escrow is the neutral party; the Van Horns are the buyers; the Simpsons are the sellers. -Both the Van Horns and the Simpsons are the neutral parties in the transaction. ABC Escrow is the lender.

ABC Escrow is the neutral party; the Van Horns are the buyers; the Simpsons are the sellers.

Steering

The practice in which real estate brokers or sales agents guide prospective home buyers towards or away from certain neighborhoods based on their race. Steering is highly illegal.

How is goodwill protected in business opportunity transactions? -Goodwill is not tangible property and, therefore, cannot be protected. -The goodwill of a business has monetary value, which is protected by law. -Goodwill is the expectation of continued public patronage. -Goodwill is protected by Sherman Anti-trust laws.

The goodwill of a business has monetary value, which is protected by law.

Max, a licensee, accepts a bribe from ABC Title Company for referring clients. What is Max's possible punishment? -Max could be fined up to $50,000 and up to six months of prison time. -Max could be fined a maximum of $10,000. -Max could go to prison and/or be fined $10,000 for each illegal transaction. -Max may have to pay restitution to those who provided the bribe.

Max could go to prison and/or be fined $10,000 for each illegal transaction.

A chain of restaurants would like to begin opening new sites along the Pacific Coastline. The owner wants all of the restaurants beachside with customer access to the beach and water from the restaurant. Which of the following ordinances or acts could govern the planning and opening of the beachfront restaurants? -The California Conservation Act and The California Environmental Quality Act of 1970 (CEQA) -The Clean Air Act -The National Environmental Policy Act -All of the Above.

All of the Above. -The California Conservation Act and The California Environmental Quality Act of 1970 (CEQA) -The Clean Air Act -The National Environmental Policy Act

Melinda is selling her home to Trevion. The deed, conveying the property, will be a general warranty deed. Who is the Grantor? Who is the Grantee in the transaction? -Trevion is the Grantor. Melinda is the Grantee. -Melinda is the Grantor. Trevion is the Grantee. -Melinda is the Grantor. The home is the Grantee. -Trevion is the Grantee. The home is the Grantor.

Melinda is the Grantor. Trevion is the Grantee.

Executive Order 11063

enforce 1866 act to prevent discrimination in residential properties financed by FHA and VA loans.

Put the following foreclosure actions in order: -Equitable Right of Redemption, Statutory Redemption, and Foreclosure -Statutory Redemption, Equitable Right of Redemption, and Foreclosure -Equitable Right of Redemption, Foreclosure, and Statutory Redemption -Statutory Redemption, Foreclosure, and Equitable Right of Redemption

Equitable Right of Redemption, Foreclosure, and Statutory Redemption extra info: The equitable right of redemption gives the borrower the right to clear up the debt prior to the foreclosure sale. After the foreclosure sale has taken place, the statutory right of redemption gives the borrower a certain amount of time to clear the debt.

Penelope is interested in buying a 150-year-old historical home in San Francisco. If Penelope decides to purchase the home, it must be on the condition the original architectural features are never removed from the home. Additionally, if Penelope buys the home and then sells it at some point, the same condition must be in the sales contract, and so on. What type of freehold estate is this historic home? -Fee Simple Defeasible -Estate in Reversion -Fee Simple Absolute -Curtesy Estate

Fee Simple Defeasible

RSS Real Estate Brokerage is the listing broker for the Pratte property. RSS delegates some of the responsibility of the listing to Helpful Real Estate Company. The two brokers cooperate on listings frequently and have a good working relationship. Unfortunately, RSS failed to get the principal's (Pratte's) agreement to the delegation. What is the relationship between RSS Real Estate Brokerage and Helpful Real Estate Company? -Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal. -Helpful Real Estate Company is now the assigned agent of the listing broker, RSS Real Estate Brokerage. -Helpful Real Estate Company becomes the cooperating agent to RSS Real Estate Brokerage's listing broker's representation of the Pratte property. -Helpful Real Estate Company becomes the dual agent to RSS Real Estate Brokerage's listing broker's representation of the Pratte property.

Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal. extra info: In a situation in which the listing broker appoints another broker without the consent of the principal, the second broker becomes the agent of the listing broker.

The Real Estate Commissioner has the authority to perform all of the following actions except: -Hold formal hearings to decide issues involving a licensee or licensee applicant. -Hold interest in a real estate company or brokerage firm. -Regulate and control the issuance and revocation of all licenses issued under California law. -Adopt, amend, or repeal rules and regulations for the enforcement of the laws.

Hold interest in a real estate company or brokerage firm. extra info: The Commissioner may not hold interest in a real estate company or any real estate brokerage firm as director, stockholder, officer, member, agent, or employee or act as a broker or salesman, or act as a copartner or agent for any broker or brokers, salesman, or salesmen.

Howard, a licensee, has heard about a specialized area of real estate brokerage--the mineral, oil, and gas brokerage. Howard is trying to find his niche in the industry and believes this is the direction in which he needs to head. What specialized license does Howard need to work with mineral, oil, and gas transactions? -He must obtain a Mineral, Oil, and Gas brokerage certification in addition to his real estate salesperson license. -He must obtain a securities license to work with Mineral, Oil, and Gas transactions in addition to his real estate salesperson license. -Howard does not need a specialized license to work with Mineral, Oil, and Gas transactions. -Both A and B

Howard does not need a specialized license to work with Mineral, Oil, and Gas transactions.

Ginny, a licensee, uses a preprinted contract in Tim's purchase of a new loft apartment. There is a discrepancy in the contract between a preprinted clause and a handwritten addition. Which clause supersedes? -The preprinted clause always supersedes a handwritten clause. -The handwritten clause generally supersedes the preprinted clause. -The handwritten clause always supersedes a preprinted clause. -The grantor and grantee must resolve the contractual issues or the contract will be void.

The handwritten clause generally supersedes the preprinted clause.

Assembly Bill 1099 does not require a property tax reassessment for the construction or addition of -a beachfront home. -a separate building such as a guest home or workshop measuring less than 1,500 square feet. -an active "solar energy system" in a new subdivision. -a barn or horse corral built on a parcel of land two acres or larger.

an active "solar energy system" in a new subdivision.

Ricardo's Restaurant is currently located between two subdivisions. The restaurant has been in business for over forty years. Currently, the area no longer allows any commercial activity. The zoning board ruled Ricardo's may continue to operate unless it is sold, destroyed, or used for any other commercial purpose. Which zoning exception applies to Ricardo's? -Nonconforming Use (Illegal) -Spot Zoning -Nonconforming Use (Legal) -A Buffer Zone

Nonconforming Use (Legal)

The main purpose of the California Department of Real Estate (DRE): -To protect the public. -To ensure the qualification of applicants and issuance of real estate licenses. -The regulation of the sale or lease of subdivision interests. -To advise the California Real Estate Commissioner on real estate matters that are important to the real estate industry and the public.

To protect the public. The California Department of Real Estate's mission is "to protect the public in real estate transactions and provide related services to the real estate industry."

How many, if any, escrow or trust accounts must a property manager maintain? -Three - One is for security deposits; one for current rents and management; and one for maintenance funds. -Two - One is for security deposits and one for current rents and management. -One for security deposits. -None of the above

Two - One is for security deposits and one for current rents and management.

Veronica has recently completed her surgical residency and is tired of paying rent. She needs a residence that is very low maintenance due to her grueling surgical schedule. Condos and Stock Cooperatives (co-ops) have both been high on her list. Help Veronica differentiate between these two residential options. -A stock cooperative buyer receives a fee interest, or deed, to her unit. A condominium is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit. -A condominium buyer receives a fee interest, or deed, to her unit. A stock cooperative is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit. -A condominium buyer receives a fee interest, or deed, to her unit. A stock cooperative is a form of ownership in which each of the investors holds a specific unit and owns the right to occupy that unit for a specified period of time. -A condominium is a form of ownership in which each of the investors holds a specific unit and owns the right to occupy that unit for a specified period of time. A stock cooperative is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit

A condominium buyer receives a fee interest, or deed, to her unit. A stock cooperative is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit.

Bruce, a private in the US Army, has applied for his Certificate of Eligibility and been approved. He wants to purchase a condo for himself. What's the maximum amount lenders will loan Bruce, based on his veteran status? -A veteran's basic entitlement is $100,000. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $400,000. -A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $417,000. -A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $425,000. -A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $550,000.

A veteran's basic entitlement is $104,250. Lenders generally lend up to four times the available entitlement without a down payment. There is no maximum amount, but generally lenders limit VA loans to $417,000. extra info: Lenders will lend up to 4 times the veteran's available entitlement of $104,250, and while there is no maximum VA loan, lenders tend to limit the loans to $417,000 which is the loan limit in the secondary market where lenders sell the VA loans.

Alex, a Nevada developer, has a very large development of attached retirement villas. He is interested in advertising this development in California. Alex has previously advertised and sold condos in his Arizona development to citizens of California. What must Alex do to promote and sell his Nevada development in California? -Alex, due to his previous experience selling to the citizens of California, is exempt from any regulations or reports required before advertising. -According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer. -According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from the California Commissioner of Real Estate and keep a copy of this report for his own records. -According to California State subdivision regulations, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer.

According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer.

Which level of government is in charge of all planning controls? -The federal government has the final say in all planning matters. -The state government has the final say in all planning matters. -Although all levels of government have laws, regulations, and ordinances that must be recognized and followed, the state housing law is a uniform law that must be adopted by ALL cities and counties in California. -All levels of government: city, county, state, and federal have the final say in all planning matters.

Although all levels of government have laws, regulations, and ordinances that must be recognized and followed, the state housing law is a uniform law that must be adopted by ALL cities and counties in California.

Price fixing, group boycotts, bid rigging, market allocation and division of markets by location or price are all examples of ________________ and are punishable by ___________________. -Estoppels; suspension of one's license -Intentional misrepresentation; fines of up to $10 million for corporations and up to $350,0000 for individuals and/or prison time -Antitrust violations; fines of up to $100 million for corporations and up to $1 million for individuals and/or prison time -Conversion; prison time and up to $1 million in fines

Antitrust violations; fines of up to $100 million for corporations and up to $1 million for individuals and/or prison time extra info: The Sherman Antitrust Act prohibits price fixing, group boycotts, bid rigging, and market allocation and division of markets by location or price Violating antitrust prohibitions is a felony punishable by a fine up to $100 million for corporations and $1 million or 10 years imprisonment or both for individuals.

Serena is studying for her California real estate license. She is very confused about base lines, meridians, townships, and ranges. Keeping these sets of intersecting lines straight has Serena stumped. Can you help? -Base lines are vertical and run east/west; meridians are horizontal and run north/south; township lines are vertical running east/west from a principal base line; and ranges are horizontal running north/south on either side of a principal meridian. -Base lines are horizontal and run north/south; meridians are vertical and run east/west; township lines are horizontal running north/south from a principal base line; and ranges are vertical running in any direction on either side of a principal meridian. -Base lines are horizontal and run east/ west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal base line; and ranges are vertical running north/south on either side of a principal meridian. -Base lines are horizontal and run east/ west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal meridian; and ranges can be either horizontal or vertical running in any direction on either side of a principal base line.

Base lines are horizontal and run east/ west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal base line; and ranges are vertical running north/south on either side of a principal meridian.

Dan, a real estate agent, suggests an escrow holder to the Snyder family for their real estate transaction. Is this a prohibited activity in California? -If the Snyder family requests the information from Dan, and he has disclosed any interest he may have in the escrow company, then it is not prohibited. -If Dan has made his suggested escrow company a condition of the transaction, it is a prohibited activity. -If Dan has made the suggestion of an escrow company without a request of his client, it is not prohibited, just good customer service. -Both A and B

Both A and B: -If the Snyder family requests the information from Dan, and he has disclosed any interest he may have in the escrow company, then it is not prohibited. -If Dan has made his suggested escrow company a condition of the transaction, it is a prohibited activity. extra info: A real estate agent may suggest an escrow holder as long as he doesn't make using that escrow holder a condition of the transaction and as long as he discloses any interest he may have in the escrow company. He also may not accept any fee from the escrow company for suggesting them to the clients.

Jan is moving into a new home. Her husband recently died during military service in the Middle East. She cannot afford a very large down payment at this time, but wants to get her children into their first home to provide some stability after the loss of their father. What are Jan's options? -Jan qualifies for an FHA loan, if her income is adequate. There is usually a small down payment required. -Jan qualifies for a VA loan due to her status as a veteran's unmarried widow. The VA loan does not require a down payment. -Jan cannot qualify for both types of loans. -Both A and B

Both A and B: -Jan qualifies for an FHA loan, if her income is adequate. There is usually a small down payment required. -Jan qualifies for a VA loan due to her status as a veteran's unmarried widow. The VA loan does not require a down payment.

Marta and Sean acquire notes from a previous California State Licensing Exam through a friend. This friend had previously taken the exam and managed to record the questions on his scratch piece of paper. Marta and Sean score passing grades on their exams, but are denied licenses. Why would they be denied a license? -Marta and Sean were guilty of subversion by using improperly obtained test questions to prepare for the examination. This is considered a dishonest practice. -Marta and Sean had an unfair advantage over the other applicants taking the examination. It was basically old fashioned cheating, and was not tolerated. -Marta and Sean were denied licenses due to their inability to completely and correctly fill out their examination applications. -Both A and B

Both A and B: -Marta and Sean were guilty of subversion by using improperly obtained test questions to prepare for the examination. This is considered a dishonest practice. -Marta and Sean had an unfair advantage over the other applicants taking the examination. It was basically old fashioned cheating, and was not tolerated.

Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship? What is Jose's role? -Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent. -Jose is the principal; Howard is the agent; they have a third party relationship; Jose is a broker. -Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent. -Both A and C

Both A and C: -Jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent. -Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent. extra info: Jose is an agent who is empowered to contract to represent the interest of someone called a principal, in this case, Howard. The relationship between the agent and the principal is an agency relationship with Jose being a special agent who is handling one transaction for Howard.

Serena and Lucy want to make an offer on their dream home. The seller is requesting a very large earnest money deposit with serious offers on the home. Serena and Lucy have some cash set aside for this purpose, but are short of the amount the sellers are requesting. Do they have any other options? -Cash is the only acceptable trust fund item accepted by brokers. -A check made payable to the broker or to an escrow or title company is an option. -A personal note made payable to the seller or a pink slip on an automobile given as a deposit is acceptable. -Both B and C

Both B and C: -A check made payable to the broker or to an escrow or title company is an option. -A personal note made payable to the seller or a pink slip on an automobile given as a deposit is acceptable.

The McMillan Development Corporation is in the preliminary stages of building a commercial office development. They have received the building permit and all of the necessary approvals to break ground. Where do they go for guidance on the types of materials approved for construction, electrical wiring, etc.? -The City Planning Commission -The Building Codes -Building Officials Conference of America -Both B and C

Both B and C: -The Building Codes -Building Officials Conference of America

The Ahmed family have signed a contract to buy the Miller family's home. However, the contract states the Ahmeds must first close on the sale of their current home within thirty days. If this closing does not occur, the contract is no longer binding for either party. Which contract term applies? -Novation -Option -Contingency -Assignment

Contingency

The Van Horns (buyers) and the Simpsons (sellers) have closed escrow on their real estate transaction. Who handles the completion of the transaction and both parties' separate paperwork? -Both parties close the transaction with ABC Escrow, the dual agency, in which both parties are represented. ABC Escrow then changes to separate agency and also handles each parties separate paperwork. -Although ABC Escrow served as the dual agency representing both parties until escrow closed, the Van Horns and Simpsons change to separate agencies for the handling of final paperwork. -ABC Escrow closes escrow for the Van Horn family. The real estate listing agent closes escrow for the Simpson family. Both parties use an agreed upon title company, acting as a dual agency, to complete the transaction and final paperwork. -None of the above.

Both parties close the transaction with ABC Escrow, the dual agency, in which both parties are represented. ABC Escrow then changes to separate agency and also handles each parties separate paperwork. extra info: Once the escrow closes, the dual agency in which both parties are represented changes to separate agency in which each party's separate paperwork is handled.

Sania and her mother own property on a river. The water has carried part of their bank downstream to another property. They want their bank back and are prepared to have it returned. Which method of property transfer applies? -By Accession and through Accretion -By Accession and through Avulsion (It must be reclaimed within one year of the occurrence.) -By Accession and through Avulsion (It must be reclaimed within two years of the occurrence.) -By Succession and through Avulsion

By Accession and through Avulsion (It must be reclaimed within one year of the occurrence.)

What circumstances require a lease to be in writing? -California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year, or has a term of less than one year, which expires more than one year after the agreement is reached. -The California Department of Real Estate requires a lease to be in writing if it has a term of one year or longer; or has a term of less than one year, which expires more than one year after the agreement is reached. -California Civil Code Section 1942 requires a lease to be in writing if it has a term or one year or longer; or has a term of less than two years, which expires more than one year after the agreement is reached. -The Commissioner of Real Estate requires a lease to be in writing if it has a term or two years or longer; or has a term of less than one year, which expires more than one year after the agreement is reached.

California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year, or has a term of less than one year, which expires more than one year after the agreement is reached. extra info: A lease of 1 year or less can be written or verbal, but under the Statute of Frauds, a lease for more than 1 year must be in writing. Additionally, if the lease has a term of less than 1 year but expires more than 1 year after the agreement is reached, such as making the agreement in advance to the actual commencement of the lease.

Gordon makes a trip to his financial institution one morning. He has conducted all of his banking transactions at the institution for more than twenty years. Today he walks out with a loan on his new home and one for a new boat. What method of financing has Gordon secured? -Exchange -Commercial -Conforming loan -Bonds or Stocks

Commercial extra info: A commercial loan is a straight bank loan that the borrower obtains based either on good credit or some non-real property collateral.

What is the difference between commingling and conversion? Which, if either, is considered a more serious violation? -Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Commingling is the more serious of the two violations. -Commingling is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the practice of mixing a client's money with the agent's personal funds. Conversion is the more serious of the two violations. -Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Neither violation is considered more serious than the other; they both have heavy criminal penalties. -Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the more serious violation.

Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the more serious violation. extra info: While commingling or mixing the client's money with the agent's personal or business funds is illegal, conversion or misappropriation and use of a client's funds by a licensee, resulting in the agent converting those funds into his own, is a much more serious violation than commingling and has heavy criminal penalties.

MTH Bank has given the McKelvey's a written pledge to lend $250,000 on a new construction home, for 30 years, at 6.53%. The McKelvey's will now present this pledge to the subdivision's sales agent to continue with their new home's construction. Which loan definition applies? -Conditional Approval -Underwriting -Exculpatory Clause -Non-Recourse Clause

Conditional Approval extra info: A conditional loan approval is a written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms. It is more formal than a preliminary loan approval.

Tina and James have made an offer on a four-bedroom home that will be much more costly than their present mortgage. The day after making the offer, James learns his company is being sold and he will probably lose his job. Are Tina and James contractually obligated to the offer they have made on the new home? -Yes, an offer is put onto a purchase contract form and is legally binding. -No, an offer is just an offer until it is accepted by the seller. Once the owner has accepted the offer, the offeror is legally bound to the contract. -It depends. If Tina and James have not received notification of the seller's accepting the offer, they may legally withdraw the offer and not be held liable on the contract. However, if the offer has been accepted, and communication of this offer has been received by the buyer, it is legally binding. -None of the Above

It depends. If Tina and James have not received notification of the seller's accepting the offer, they may legally withdraw the offer and not be held liable on the contract. However, if the offer has been accepted, and communication of this offer has been received by the buyer, it is legally binding.

Miranda helps her friend Lupe purchase a home. She researches the neighborhood, assists her with a mortgage -- she essentially acts as Lupe's real estate agent. There is only one issue, Miranda does not have a California license and Lupe has paid Miranda for her help. Is this acceptable? -Yes, it is acceptable. Miranda is a lender who makes federally-insured or guaranteed loans. She has helped Lupe with her knowledge and experience and Lupe has compensated her time. -Miranda is simply helping her busy friend make good choices. She just wanted to put her knowledge of the real estate industry to work. Although she has never passed the licensing examination, she knows everything an agent does. -It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license. -Miranda is in the process of studying for her license. She will be taking the examination before Lupe's real estate purchase closes. Miranda WILL be a licensed real estate agent at the close of escrow; so, yes, it is acceptable.

It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license. A person must be licensed if she undertakes or negotiates to undertake any activity that requires a license when the activity is for compensation and for another person.

Jane has filed her complaint of discrimination. She also wants to seek some sort of punitive damages. What are her options, if any? -Jane has one year from the date of the violation to bring suit. She may seek actual damages and a court order to allow her to buy or lease the original property she was denied. -Jane has three years from the date of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $10,000. -Jane may only file a complaint. The law does not allow any litigation in fair housing matters due to the extremely difficult nature of the cases -Jane may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.

Jane may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.

Jeremy, a licensee, witnesses Patti, another licensee, involved in behavior that is questionable. Jeremy learns Patti's client is also willfully involved in the indiscretions. What action, if any, should Jeremy take? -Jeremy need not take any action. As long as he is not involved in the questionable behavior, he is not obligated to do a thing. -Jeremy is obligated to speak to the authorities and report what he has witnessed. If he is unsure a crime has been committed, he should obtain legal advice. -Jeremy must report all indiscretions to the Department of Real Estate. He is not obligated to report the client's behavior. -None of the above.

Jeremy is obligated to speak to the authorities and report what he has witnessed. If he is unsure a crime has been committed, he should obtain legal advice. extra info: If the licensee cannot ascertain whether a transaction involves a crime, he should obtain legal advice and then report illegal actions to the authorities.

Jerry is interested in purchasing a lot for new construction in a new subdivision. The Commissioner has issued a preliminary public report in this case, allowing the subdivider to take reservations for lot purchases. Does Jerry have any recourse to change his mind? -Jerry may change his mind on the lot he has reserved. However, he will not receive a full refund. His refund will be prorated for the amount of time he had reserved the lot. -Jerry is under no obligation due to the preliminary public report. His reservation is one in name only and is not legally binding. -Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued. -None of the Above

Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued.

Johnel, of ABC Escrow, is beginning to work on the escrow procedures of the Van Horn - Simpson file. She prepares the instructions; orders the title search and report; requests new loan instructions and documents; negotiates the fee due ABC Escrow from the parties involved; and accepts the pest control report and other reports. Which of these procedures is prohibited? -Johnel should not be requesting new loan instructions and documents. That is confidential information not applicable to closing escrow. -The ordering of the title search and report is prohibited of an escrow company. It is a procedure that is handled by the sellers' closing representation. -Johnel should only be preparing the instructions and ordering the title search and report. All of the other procedures are not requirements of the escrow holder. -Johnel should not be negotiating the fee due ABC Escrow as part of escrow procedures. The buyer and seller negotiate between themselves who is responsible for paying the escrow holder's fee.

Johnel should not be negotiating the fee due ABC Escrow as part of escrow procedures. The buyer and seller negotiate between themselves who is responsible for paying the escrow holder's fee. extra info: The escrow agent does not decide or negotiate how much of the escrow company fee will be paid by each party to the transaction. In Southern California, the escrow service fees are usually split 50-50 between the buyer and seller, while in Northern California, the service fees are usually paid by the buyer. However, the parties may negotiate among themselves to decide who will pay how much.

Jonathan rents a two bedroom house from Samantha and Gerald. The plumbing keeps backing up into the basement, leaving water and sewage on the basement floor. Jonathan has repeatedly reported this issue to Samantha and Gerald. He has made telephone calls and spoken to each landlord; he has also sent a written request with proof of delivery. It has been two months and not only has nothing been done, they have not even responded to his calls or requests. What are Jonathan's options, if any? -Jonathan may file suit in civil court to force Samantha and Gerald to either make the repairs or refund his rent, with interest, and any damages and costs. -Jonathan has a couple of options available to resolve this issue. He may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises, Jonathan is relieved from paying additional rent and other conditions of the lease. -Jonathan's only option is to abandon the premises. If he does so, he is relieved of any rent or other conditions of the lease. -Jonathan may surrender the lease and end any further obligations to the contract.

Jonathan has a couple of options available to resolve this issue. He may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises, Jonathan is relieved from paying additional rent and other conditions of the lease.

Martha and Liz have applied for a mortgage. They both have excellent credit and very successful careers and they are perfect on paper. Martha and Liz are partners and are expecting the birth of their first child together. They are denied a loan. What's the violation here? -Martha and Liz have been denied full protection under the Equal Opportunity in Housing Act. -Martha and Liz have been denied the full protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws. -Martha and Liz have been denied the full protection of the Fair Housing Act of 1968; an integral part of the Fair Financing Laws. -None of the above

Martha and Liz have been denied the full protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.

Johanna is selling her restaurant, J's Café. She has decided restaurant hours are too long for her and is changing careers. Matt, a licensee, is assisting Johanna in the sale of the café. She wants to sell both the real property, the restaurant itself, and all of the personal property inside to one buyer. A buyer is interested in the physical restaurant, the business itself, and all of the personal property inside the restaurant. How will Matt handle the sale of both the real property and the business itself? -Matt, as a licensee, is not authorized to conduct the sale of a business. He may assist Johanna in the real property transaction, but not the personal property that represents the business. -Matt must treat the sale of the business and the sale of the real property as two separate and concurrent transactions with two concurrent and contingent escrows. -Matt may sell the entire business opportunity in one sales transaction. Due to its encompassing the real property, the business, and the personal property of the restaurant, it is a single sale. -None of the above

Matt must treat the sale of the business and the sale of the real property as two separate and concurrent transactions with two concurrent and contingent escrows.

Maurice is a builder of new residential housing in the San Fernando Valley. He builds high-end homes in various subdivisions in the area. Maurice has been paying into a fund that is used by the government for low-to-moderate-income housing. Is Maurice required to pay into this fund and, if so, why? Does he have any other options? -Maurice is NOT required to pay into this fund. He pays into the fund to ensure he is given special treatment in receiving building permits. He does have the option not to pay into the fund or voluntarily set aside a few units for low-to-moderate-income housing. -Maurice IS required to pay into this fund due to the Building Codes Ordinance. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases like Maurice's, he may pay into the fund. If he refuses, his building permit will be denied. -Maurice IS required to pay into this fund due to the Police Power Action. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases like Maurice's, he may pay into the fund. If he refuses, his building permit will be denied. -Maurice IS required to pay into this fund due to the Inclusionary Zoning Ordinance. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases, like Maurice's, he may pay into the fund. If he refuses his building permit will be denied.

Maurice IS required to pay into this fund due to the Inclusionary Zoning Ordinance. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases, like Maurice's, he may pay into the fund. If he refuses his building permit will be denied.

Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is located is going through a major widening and most of the homes are going to be leveled for the project. Through eminent domain, Michelle must sell her home to the city for the construction. What is the required length of notice Luis must receive from Michelle in terminating the lease? -Michelle must give Luis a thirty-day written notice of the lease termination. -Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year. -Michelle does not have to give Luis any sort of notice due to the eminent domain. He must vacate the premises within the week of the sale to the city. -None of the above.

Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year. extra info: With a tenancy at will, the landlord must give a 30-day written notice of lease termination unless the tenant has lived in the property for more than 1 year, which requires a 60-day notice.

Miriam is a real estate salesperson. She has just been handed a $100,000 earnest money deposit certified check from buyers who are interested in a new home. What does she do with the money? -Miriam must turn the money over to the broker listing the home the buyers are interested in purchasing. The broker may then deposit the funds in the broker's trust account. -Miriam must hand the check over to her own broker. At that point, the broker might direct her to put the funds into the hands of the broker's principal; hand the funds over to another broker involved in the transaction; or place the funds into the broker's bank account. -Miriam must hand over the check to only her own broker. At that point, the broker might direct her to put the funds into the hands of the broker's principal; place the funds into a neutral escrow depository; or deposit the funds into the broker's trust fund bank account. -Miriam must simply deposit the check into the broker's account within three business days of receipt of funds. She need not consult her broker on procedure, only follow the trust fund regulations.

Miriam must hand over the check to only her own broker. At that point, the broker might direct her to put the funds into the hands of the broker's principal; place the funds into a neutral escrow depository; or deposit the funds into the broker's trust fund bank account.

Matilda is buying a condo from Tom and Alex Ries. She has given her agent, Manuel, earnest deposit funds in the amount of $10,000. Matilda has post-dated the check to coincide with the expiration date of offer acceptance on the contract. Do the basic trust fund regulations apply to Matilda's earnest deposit? -Yes, handling a post-dated check should be the same as a check with written instructions to be cashed upon offer acceptance. All of the basic regulations apply to the post-dated check. -No, a post-dated check is illegal tender in the state of California and may result in the mischaracterization of the form of earnest deposit money made by the buyer. -No, California law has held that post-dated checks are the equivalent of a promissory note and are non-negotiable. The broker must not accept a post-dated check from a buyer without adequate disclosure to the seller. -Yes, a post-dated check should be treated the same as a promissory note. As long as the seller has full disclosure, the basic regulations of trust funds apply to the post-dated check.

No, California law has held that post-dated checks are the equivalent of a promissory note and are non-negotiable. The broker must not accept a post-dated check from a buyer without adequate disclosure to the seller.

Jeremy opened a coffeehouse in a space leased from Maria and Renaldo. A week before his lease expired, Jeremy moved to a new location without his commercial microwave which was attached to the counter. Eighteen days following notice of Jeremy's right to reclaim the microwave, Maria and Renaldo sold the microwave at auction. Jeremy is furious and threatening legal action. Does he have a suit? -No, Jeremy does not have a case. Since the microwave was not reclaimed during the period allowed by law. -Yes, Jeremy does have a possible suit. The trade fixture, the installed microwave, is considered personal property and was merely forgotten and not legally Maria and Renaldo's to sell. -No, Jeremy does not have a possible suit. If he left it in the property, it automatically becomes property of the owners. -Both A and C

No, Jeremy does not have a case. Since the microwave was not reclaimed during the period allowed by law.

Christine and Scott have been married for fifteen years. They have three children, a home, and a vacation home. The couple purchased their home together after their marriage, but Scott owned the vacation property prior to the union. Christine and Scott are now getting divorced. Christine wants half of their residence and half of the ownership of the vacation property. At times they have rented the vacation home and the proceeds have gone to their joint bank account. Does Christine have any legal right to the ownership of the vacation home? -Yes, due to the commingling of the funds gained from rental proceeds, Christine will be allowed shared ownership of the vacation property. -Yes, although Scott came to the marriage with the vacation property, all property owned by each partner in a marriage is thus shared by the spouse. -No, Scott came to the marriage with the vacation property, therefore it may remain a separate property. However, due to the commingling of the rental proceeds from the property in the joint account, she does have a right to half the proceeds. -Both A and B

No, Scott came to the marriage with the vacation property, therefore it may remain a separate property. However, due to the commingling of the rental proceeds from the property in the joint account, she does have a right to half the proceeds.

Samir Shah is a landlord leasing apartments for residential use. He will be updating the lighting fixtures in his units during the month of January. He has been having his maintenance crew enter the units at will to make the changes. Several of the tenants have been surprised, frightened, and inconvenienced. Is it acceptable for Samir's employees to enter unannounced? -Yes, the landlord may enter the rental property at any time to make necessary or agreed repairs, decorations, alterations, or improvements. -No, although it is an acceptable reason for the landlord to enter the units, they must give the tenant at least a 24-hour notice and enter between normal business hours. -No, the landlord may only enter the rental property in case of emergency; to supply necessary or agreed services; when the tenant has abandoned or surrendered the premises; or under a court order. -Yes. Because the landlord has okayed the entrance by his representatives for work to improve the rental properties, it is acceptable for the unannounced entrances.

No, although it is an acceptable reason for the landlord to enter the units, they must give the tenant at least a 24-hour notice and enter between normal business hours. extra info: Under a residential lease, the landlord may enter the dwelling to make necessary or agreed repairs or improvements between normal business hours and only if the landlord has given or attempted to give the tenant advance 24-hour notice, except in case of emergency.

The Logans are in their seventies with a very nice home. They paid off their mortgage twenty-five years ago. Mrs. Logan has been having serious medical issues and Mr. Logan wants to hire home healthcare professionals to care for her. His retirement savings will not withstand these healthcare costs. He has turned to his home to supplement his monthly income in order to keep his wife at home. Which type of loan applies to the Logan's situation? -Package Mortgage -Wraparound -Buydown -Reverse Annuity

Reverse Annuity extra info: With a reverse annuity mortgage, the homeowner receives monthly payments based on accumulated equity rather than a lump sum. This mortgage is available for senior citizens who own their own home with equity.

TBH Realty Company is handling the sale of the Lopez (seller) home to the Bright (buyer) family. The buyers give an earnest money deposit to the brokerage in the amount of $5,000. The money is then deposited into the broker's account at the bank on the seventh business day after receiving the funds. Has TBH Realty Company followed all trust account regulations with the earnest money? -Yes, the money was received and deposited into the broker's account by the seventh business day after receiving the funds. -No, the broker should have deposited the earnest money into the broker's account within three business days of receiving the funds. -No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account. -No, the broker should have deposited the earnest money into the broker's trust fund not the broker's account within the seven days allotted after receipt of funds.

No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account. extra info: Upon receiving a buyer's money deposit, a broker must deposit the funds into the appropriate neutral escrow depository or into the broker's trust fund account within 3 business days following the receipt of the funds. Earnest money may not be commingled with the broker's personal or business funds.

Jim and Kim Scott have been working very hard to rebuild their credit. They are now in good financial shape to buy their first home. The couple has been working with a mortgage broker, Ted, to assist them in finding the best loan. They complete the application, are approved for a loan, complete other paperwork, and are now obligated to complete the loan. A week before they are due to close, they receive the Mortgage Disclosure Statement, outlining all of the costs and terms associated with the loan. The costs and terms are not what they had previously understood. Are they stuck with this loan? -Yes, they have had several opportunities to fully question and understand the terms and costs associated with their loan. -No, the Mortgage Disclosure Statement should have been presented to them within three days of the broker's receipt of their written loan application, or before the Scotts were obligated to take the loan. -No, the Mortgage Disclosure Statement should have been presented to them within seven days of the broker's receipt of their written loan application, or before the Scotts were obligated to take the loan. -Yes, unfortunately they are stuck with the loan. It was the Scotts' responsibility to ask for the Mortgage Disclosure Statement so they were clear on the terms and costs associated with the loan.

No, the Mortgage Disclosure Statement should have been presented to them within three days of the broker's receipt of their written loan application, or before the Scotts were obligated to take the loan.

Shanta is renting beachfront property in Malibu. The unfurnished bungalow has two bedrooms, one bathroom, and is right on the beach. Shanta's monthly rent is $1,600. Her landlord, Harold, is requiring a $6,400 nonrefundable security deposit. This amount includes her first month's rent. Is this an acceptable amount for a security deposit? -No, the maximum security deposit allowed in California for an unfurnished property is two months' rent. The correct amount would be $4,800, including the first month's rent. Additionally, security deposits cannot be labeled as nonrefundable. -No, the maximum security deposit allowed in California for an unfurnished property is one month's rent. The correct amount would be $3,200, including the first month's rent and the security deposit. Additionally, security deposits cannot be labeled as nonrefundable. -Yes, the maximum security deposit allowed in California for an unfurnished property is three months' rent. The amount of $6,400 includes the first month's rent. However, the security deposit cannot be labeled as nonrefundable. -No, there is not a maximum security deposit regulation in California. Landlords may decide on the amount based on the property's value.

No, the maximum security deposit allowed in California for an unfurnished property is two months' rent. The correct amount would be $4,800, including the first month's rent. Additionally, security deposits cannot be labeled as nonrefundable. extra info: In California, security deposits for an unfurnished rental are limited to 2 months' rent in addition to the first month's rent and cannot be labeled as nonrefundable.

Cheryl and Troy are closing on their home on Tuesday. Their brokerage represents the GoodHome Insurance Company. The couple have not yet decided what company will be handling their homeowner's insurance. Are they obligated to use GoodHome due to its affiliation with the brokerage? -They are not exactly obligated to use the insurance company represented by the brokerage; however, it would make all of the paperwork and closing more efficient. -No, they are not obligated to use any services recommended by the broker or agents licensed to the broker. Choosing a source of insurance is ONLY the client's choice. -Yes, if they are going to use the brokerage they must use the broker's affiliates. -None of the Abov

No, they are not obligated to use any services recommended by the broker or agents licensed to the broker. Choosing a source of insurance is ONLY the client's choice.

Shanta, a property manager of a retail center, is using the Income Capitalization Approach in trying to project future earnings for the partners who own the center. She first estimates the annual potential gross income, subtracts an appropriate allowance for vacancy and collection losses to arrive at a gross income, deducts operating expenses (including debt service and mortgage payments). This gives her the Net Operating Income. She then applies a capitalization rate to the net income to determine the value. Did she use the correct steps? -Yes, Shanta went through all four steps correctly, debt service and mortgage payments may be included. -No, when Shanta was deducting operating expenses, she included debt service and mortgage payments when they shouldn't have been included. -No, Shanta should have added an appropriate allowance for vacancy and collection losses instead of subtracting these items. -None of the Above.

No, when Shanta was deducting operating expenses, she included debt service and mortgage payments when they shouldn't have been included.

Beverly, an African-American woman, has applied for a mortgage on a new home. She has a reliable job as a court reporter and has been employed for ten years. Her income is substantial enough to pay a mortgage, in her budget, and still have seventy percent of her income remaining. She has, however, been at least ninety days late on several bills one year ago. Beverly has since caught up on her credit card bills, paid them on time, and reduced their balances by half. She has just been turned down for a mortgage by her bank. Has she been discriminated against? -Perhaps. She may have been turned down because she is an African -American woman. She has a steady job with a decent income. Her small brush with delinquency should not have led to a refusal. -No. Beverly's brush with delinquency is too fresh on her record for the bank to issue a mortgage. Although she has taken the steps to correct the issues, ninety days late on several debts is substantial. She more than likely did not meet the bank's financial requirements. -No. Beverly's income must not be substantial enough for the home she is wanting to buy. -None of the Above

No. Beverly's brush with delinquency is too fresh on her record for the bank to issue a mortgage. Although she has taken the steps to correct the issues, ninety days late on several debts is substantial. She more than likely did not meet the bank's financial requirements.

Damon has a string of misdemeanor convictions. He was just cleared of felony fraud. Damon is now opening a restaurant and wants to serve alcohol. What are Damon's chances of being issued a liquor license? -Not very good at all. According to the Alcoholic Beverage Control Act, the person must be of good moral character. All of Damon's convictions probably won't bode well with his receiving a license. -The same as others. Damon only has misdemeanor convictions. He was acquitted of the felony charge. -Damon may be issued a probationary liquor license due to his previous convictions. -None of the above

Not very good at all. According to the Alcoholic Beverage Control Act, the person must be of good moral character. All of Damon's convictions probably won't bode well with his receiving a license.

What are the steps to convert a mobile home into real property, if it is possible? -Obtain a building permit and place the mobile home on a permanent foundation. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded. -It is not possible to convert a mobile home into real property. -Obtain a building permit; place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded. -Place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded.

Obtain a building permit; place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded.

Patrice and Michael are in the process of refinancing their townhouse. The mortgage company calls and gives the couple the news they have a lien on their home for non-payment of the previous year's property taxes. What type of lien is on their property? What do they need to do to remedy their situation? -Patrice and Michael have an involuntary lien placed on their home for delinquent property taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien removed. -Patrice and Michael have a voluntary lien placed on their home for delinquent property taxes. The couple must pay the back taxes to have the lien removed -Patrice and Michael have an equitable lien placed on their home for delinquent property taxes. The couple must pay the back taxes to have the lien removed. -Patrice and Michael have a judgment lien placed on their home for delinquent property taxes. The couple must pay the back taxes and petition the court to have the lien removed.

Patrice and Michael have an involuntary lien placed on their home for delinquent property taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien removed.

Raj is stressed. He is getting ready to take the salesperson examination and doesn't know where to begin studying. Help Raj by telling him the examination topic(s) with the largest concentration of questions. -Contracts -Laws of Agency -Practice of Real Estate and Mandated Disclosures -Transfer of Property

Practice of Real Estate and Mandated Disclosures

John and Thom purchased a home that only had one previous owner. It is a simple three-bedroom, two-bath ranch. The previous owner built the home in 1964 and recently passed away. John and Thom had looked at the previous owner's property taxes and found them to be quite manageable. When they received their first assessment, they were shocked. Which proposition is attributed to this dramatic increase in property taxes? -Proposition 60 -Proposition 13 -Proposition 218 -Proposition 90

Proposition 13

Scott is trying to sell his home FSBO. The Bartells believe Scott's home could be their dream home, but they have been working with Melinda, a licensee, to find a new home. Melinda shows the Bartells the home, failing to disclose her status as an agent. They love Scott's home and want to buy it. Scott is not interested in any way, shape, or form in working with an agent. However, the Bartells have made an offer above his asking price and he can't refuse it over the Melinda issue. Which of the following describes the creation of this agency relationship? -Written or expressed -Ostensible Agency -Ratification -Implied

Ratification

If a person believes that her property has been placed under an unlawful restriction, covenant, or other provision, based on an arbitrary reason as defined in the Government Code, she may: -Refuse to pay her rent or mortgage. -File suit against the parties that sold her or rented her the property. -File a civil suit against the party/parties that so placed this unlawful restriction. -Record a Restrictive Covenant Modification document.

Record a Restrictive Covenant Modification document.

Roy Malone owns a large piece of land in the Sonoma Valley. He is planning to subdivide the land into five lots for the construction of luxury homes. If Roy carries through with this project, what are his roles and his next steps? -Roy is considered a Subdivider. His first step should be a development plan; however, this plan must include all state and local government regulations, the Subdivided Lands Law, the Subdivision Map Act, the California Environmental Quality Act, zoning, and local general and specific plans. -Roy is considered a developer. He must contact local officials, follow the Subdivided Map Act, and have his subdivided land mapped into lots. -Roy is considered a developer. He must first file a public report for the subdivision. Then local officials, following the Subdivided Map Act, have his subdivided land mapped into legal lots. -None of the Above

Roy is considered a Subdivider. His first step should be a development plan; however, this plan must include all state and local government regulations, the Subdivided Lands Law, the Subdivision Map Act, the California Environmental Quality Act, zoning, and local general and specific plans.

Sally, a licensee, has been asked to be the sales agent for a company selling new mobile homes. Can she sell these new mobile homes? If not, what sort of mobile homes can she sell? -Sally may not sell new mobile homes, but she may sell used mobile homes. She would have to become licensed by the California Department of Housing and Community Development to sell new mobile homes. -Sally may not sell new mobile homes, but she may sell used mobile homes, if they have been registered with the State of California and are on a lot. She would have to become licensed by the California Department of Housing and Community Development to sell new mobile homes. -Sally is a licensed real estate salesperson in the state of California. She may sell any real property she is assigned to sell. -None of the Above

Sally may not sell new mobile homes, but she may sell used mobile homes, if they have been registered with the State of California and are on a lot. She would have to become licensed by the California Department of Housing and Community Development to sell new mobile homes.

Sam, a broker, thought the postage meter stamp was sufficient evidence of a U.S. Postal Service postmark. He was wrong and his broker's license expired. What happened next? -Sam's broker's license expired; so he had to cease all of his licensed activities. However, his salespersons still possess active licenses and may continue with business while Sam is temporarily unlicensed. -Sam must immediately stop his licensed activity and his salespersons all lose their licenses as well. All must re-take the state license examination to re-activate their licenses. -Sam must immediately stop his licensed activity. His salespersons are all placed immediately in non-working status, and his branch office licenses are cancelled. He must then take all necessary steps to re-activate his license, his salespersons' licenses and the branch office licenses. -Sam must stop his licensed activity until he re-activates his license. The only salespersons affected are those with conditional salesperson licenses. They may not re-activate their status and must complete the required courses to obtain a four-year salesperson license.

Sam must immediately stop his licensed activity. His salespersons are all placed immediately in non-working status, and his branch office licenses are cancelled. He must then take all necessary steps to re-activate his license, his salespersons' licenses and the branch office licenses. If a broker's license expires, all licensed activities of the broker must cease, the broker's salespersons are immediately placed in a non-working status, and any branch office licenses are cancelled. The broker must get his own license reactivated and then re-activate the license of each salesperson in the broker's employ by submitting a Salesperson Change Application. Finally, the broker must re-activate any branch office licenses by submitting a Branch Office Application.

Katrina had her license suspended for making false promises to clients. She had a habit of telling clients what they wanted to hear and never being able to state the facts. Of course, she could never follow through with her statements and several complaints were filed. Which guidelines constitute most suspensions? -Sections 10176 and 10177 of the Business and Professions Code. -Sections 10176 and 10177 of the Regulations of the Commissioner. -Section 11350.6 of the Welfare and Institutions Code. -Section 17910 of the California Code.

Sections 10176 and 10177 of the Business and Professions Code. Sections 10176 and 10177 of the Business and Professions Code constitute the foundation for most license suspensions or revocations. Section 10176(b) specifically covers false promises.

The Percy family have purchased a heavily wooded property in Northern California. They are planning to build a guest house off the main house for entertaining. In the process, many trees will need to be cleared. The family is planning to sell the wood to the neighbors as firewood. Which process applies? -Annexation -Severance -Appurtenance -Livery of Seisin

Severance

Lydia feared she did not pass the California State Licensing Exam AGAIN. As she nervously opened the envelope that held the results, what was the first clue to the outcome of her reexamination? -She received an actual score and nothing else, which meant, once again, she hadn't earned a passing score. -She did NOT receive an actual score this time in the mail. This means she finally passed the licensing exam, and her license application is included in the envelope. -She received a card that gave congratulations and telephone number with code to order her license. -Lydia passed. She received an application for her license along with the results of her examination.

She did NOT receive an actual score this time in the mail. This means she finally passed the licensing exam, and her license application is included in the envelope.

Susan is thinking of putting her home up for sale but doesn't want to use a real estate agent. What are her options? -Susan must obtain her real estate license or use a licensed real estate agent to sell her property. She cannot be compensated for the sale of her property unless she is representing another person. -Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person. -Susan will be negotiating the purchase price of her home and must be licensed to do so. -Both A and C

Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person. Because Susan is selling her own home and not providing the service for another person, she is exempt from needing a license.

What is the correct order of regulatory agency jurisdiction changes to non-corporate California real estate syndicates since The Real Estate Syndicate Act's inception in 1970? -The Department of Corporations, The California Department of Real Estate, The Department of Corporations -The California Department of Real Estate, The Department of Corporations, Real Estate Commissioner -Real Estate Commissioner, The California Department of Real Estate, The Department of Corrections -Real Estate Commissioner, The California Department of Real Estate, The Department of Corporations

The Department of Corporations, The California Department of Real Estate, The Department of Corporations

Sam has successfully completed the Real Estate Principles course, the Real Estate Practices course, an additional college level course, and passed the salesperson licensing examination. Which license is available to Sam? -The Four-Year Salesperson License -An Original Salesperson License -A Restricted Salesperson License -A Conditional Salesperson License

The Four-Year Salesperson License Applicants who provide proper verification that the applicant has completed all three required courses and has successfully completed the salesperson examination may apply for a four-year salesperson license.

Which of the following statements concerning California's three sets of base lines and meridians is true? -The Humboldt Base Line and Meridian in the southwestern part of the State; The Mt. Diablo Base Line and Meridian in the central part of the State; and The San Bernardino Base Line and Meridian in the northwestern part of the State. -The Humboldt Base Line and Meridian in the northwestern part of the State; The Mt. Diablo Base Line and Meridian in the central part of the State; and The San Bernardino Base Line and Meridian in the southern part of the State. -The Humboldt Base Line and Meridian in the northwestern part of the State; The Mt. Diablo Base Line and Meridian in the southern part of the State; and The San Bernardino Base Line and Meridian in the central part of the State. -The Humboldt Base Line and Meridian in the central part of the State; The Mt. Diablo Base Line and Meridian in the northwestern part of the State; and The San Bernardino Base Line and Meridian in the southern part of the State.

The Humboldt Base Line and Meridian in the northwestern part of the State; The Mt. Diablo Base Line and Meridian in the central part of the State; and The San Bernardino Base Line and Meridian in the southern part of the State.

Maria and Carlos are selling their grocery store to a large corporation. There will be a bulk transfer of the store's inventory in the sale to the corporation. Public notice must be given of this transfer. Who must give the public notice? How many days public notice must they give and why? -The sellers must give the public notice. They must give a public notice 12 business days before the transfer occurs. It gives the buyers' creditors an opportunity to file a claim if trade credit is still owed on the inventory. -The buyers must give the public notice. They must give a public notice 12 business days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owed on the inventory. -The buyers must give the public notice. They must give a public notice 15 days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owed on the inventory. -The buyers must give the public notice. They must give a public notice 10 business days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owed on the inventory.

The buyers must give the public notice. They must give a public notice 12 business days before the transfer occurs. It gives the seller's creditors an opportunity to file a claim if trade credit is still owed on the inventory.

Alexandra and Marita's company has qualified as a trust. It has distributed 96% of its income to its shareholders. Which earnings require the payment of federal taxes? -The company only pays federal taxes on the retained earnings. -The company only pays federal taxes on the retained earnings, which are taxed at corporate rates. -The company only pays federal taxes on the distribution to its shareholders. -The company is exempt from federal taxes due to its trust qualification. It is required only to pay state and local taxes.

The company only pays federal taxes on the retained earnings, which are taxed at corporate rates.

The Marinos are selling their home to the Snyders. Tim is representing both the Marinos and the Snyders in the transaction. He had initially listed the Marinos' home and realized their home would be perfect for his buyer clients, the Snyders. After making all the necessary disclosures to both parties, he showed the Snyders the Marinos' home and they are buying it. The Marinos are paying commission on the transaction to Tim's broker, who in turn, will compensate Tim. Since the Marinos are paying Tim's commission, does this constitute an agency relationship, and, if so, what kind of an agency relationship? -The fact that one party (the Marinos/sellers) or another party (the Snyders/buyers) pays a commission does not create an agency relationship. -Yes, this constitutes an agency relationship. Due to the Marinos' paying the commission, the relationship would be between Tim, a special agent to the Marinos, and the Marinos (sellers). -Yes, this constitutes an agency relationship between the Marinos, the Synders and Tim. The payment of commission by the sellers produces a single agency relationship between the parties. -None of the above.

The fact that one party (the Marinos/sellers) or another party (the Snyders/buyers) pays a commission does not create an agency relationship.

What is the major difference between the real estate business in general and a real estate brokerage? -The general real estate business consists of production, marketing, and financing of real property; a brokerage is directed primarily toward the sale, exchange, lease, rental, and financing for compensation. -The brokerage business consists of production, marketing, and financing of real property; the general real estate business is directed primarily toward the sale, exchange, lease, rental, and financing for compensation. -Both A and B -None of the Above

The general real estate business consists of production, marketing, and financing of real property; a brokerage is directed primarily toward the sale, exchange, lease, rental, and financing for compensation.

The escrow instructions in the Van Horn - Simpson transaction are deemed unavailable to the Simpsons. If instructions are confidential, and ABC Escrow is a dual agency representing both parties, why are the instructions only known to the Van Horns, their real estate agent, and ABC Escrow? -The instructions are considered bilateral and only apply to the Van Horns. -The instructions are always only available to the buyer (grantee) and are of no consequence to the seller (grantor). -The bilateral instructions apply only to the Van Horns and therefore may be known only to the Van Horns, their agent and ABC Escrow. -The instructions are considered unilateral and apply only to the Van Horns; therefore they may be known only to the Van Horns, their agent and ABC Escrow.

The instructions are considered unilateral and apply only to the Van Horns; therefore they may be known only to the Van Horns, their agent and ABC Escrow. extra info: As long as the instructions relate to mutual items in the transactions, they both principals and their agents may see the instructions. However, if the instructions are unilateral and only concerning one party to the transaction, then only that party and his agent may see the instructions.

Under Article 7, what is the maximum amount that may be charged to the borrower for loan costs and expenses? Also, under Article 7, if the home is not occupied by the owner, under what circumstance is the loan exempt from a balloon payment? -The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan, or $490.00, to a maximum of $800.00. If the loan term is less than three years, and the home is not occupied by the owner, the loan is exempt from balloon payments. -The maximum amount that may be charged to the borrower for loan costs and expenses is 3% of the loan, or $390.00, to a maximum of $700.00. If the loan term is less than three years, and the home is not occupied by the owner, the loan is exempt from balloon payments. -The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan, or $390.00, to a maximum of $700.00. If the loan term is less than three years, and the home is not occupied by the owner, the loan is exempt from balloon payments. -The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan, or $390.00, to a maximum of $700.00. If the loan term is six or more years, and the home is not occupied by the owner, the loan is exempt from balloon payments.

The maximum amount that may be charged to the borrower for loan costs and expenses is 5% of the loan, or $390.00, to a maximum of $700.00. If the loan term is less than three years, and the home is not occupied by the owner, the loan is exempt from balloon payments.

At the close of escrow, ABC Escrow divides up funds proportionately between the Van Horns and Simpsons. What is the process and what expenses does it include? -The process of dividing funds between parties is the rescinding of escrow. It includes both expenses that are prepaid by the seller and paid after closing by the buyer. -The process of dividing funds between parties is termination of escrow. It includes the expenses that both parties prepaid to the escrow holder. -The process of dividing funds between parties is proration. It includes both expenses that are prepaid by the seller and paid after closing by the buyer. -The process of dividing funds between parties is auditing escrow. It includes expenses of both parties granted to the escrow holder to secure the real estate transaction.

The process of dividing funds between parties is proration. It includes both expenses that are prepaid by the seller and paid after closing by the buyer. extra info: Proration is the process in which expenses such as property taxes, interest, rent, and/or assessments are divided proportionately between the buyer and seller and includes items that are prepaid by the seller such as insurance or items that will be paid after closing by the buyer such as property taxes.

To take private property through eminent domain, three steps must be taken by the state or local government. What are they? -The property owner must be paid compensation for the property. The property must be zoned for business use or public use. The owner must have due process in the court system. -The property owner must agree to voluntarily transfer the property. The property must be for public good or use. The owner must have due process in the court system. -The property owner must be paid compensation for the property. The property must be for public good or use. The owner must have due process in the court system. -The property owner must be paid compensation for the property. The property must be for public good or use. The process of condemnation must be executed to ensure taking of the property.

The property owner must be paid compensation for the property. The property must be for public good or use. The owner must have due process in the court system.

The Hannekes are selling their pharmacy to a small investor. They have decided not to follow the regulations set forth by the bulk sale law. Is the sale considered valid between the two parties? -The sale is considered valid between the two parties; it is void against creditors; they are legally permitted to attach inventory for any debt. -The sale is considered invalid between the two parties due to not following the regulations set forth by the bulk sale law. -The sale is considered valid between the two parties and all creditors. The bulk sale law is set up to ease the transfer of inventory in a business sale. -None of the above

The sale is considered valid between the two parties; it is void against creditors; they are legally permitted to attach inventory for any debt.

The 1943 case People v. Sipper held what decision? -The selection and preparation of a mortgage or deed by a broker, in which a fee was charged, constituted the unlawful practice of law. -The real estate agent should guard well the privilege of practicing real estate while avoiding stepping over the line of practicing law. -A real estate profession has limited legal authority as a licensee. -The real estate licensee could face losing his real estate license for improper behavior.

The selection and preparation of a mortgage or deed by a broker, in which a fee was charged, constituted the unlawful practice of law. extra info: The California District Court of Appeal, in the 1943 case of People v. Sipper, held that the practice of law is not simply performing court appearances for another party, but that the larger definition of "to practice law" also includes giving legal advice and counsel and preparing legal instruments by which legal rights are secured. In People v. Sipper, it was held that the selection and preparation of a mortgage or deed of trust by a broker in an independent loan transaction, in which the broker charged a fee, constituted the unlawful practice of law, even though only one transaction was involved.

Which of the following statements is true concerning Earthquake Hazards Disclosure? -The seller and agent must supply the Homeowner's Guide to Earthquake Safety booklet and provide any information requested to the buyer regarding geological or seismic hazards. -The seller's and agent's only responsibility is to supply the Homeowner's Guide to Earthquake Safety booklet. Nothing else pertaining to the property of any seismic or geological nature need be disclosed. -The seller and agent must provide the Homeowner's Guide to Earthquake Safety booklet and also disclose that a property is in an earthquake zone. -Both A and B

The seller and agent must provide the Homeowner's Guide to Earthquake Safety booklet and also disclose that a property is in an earthquake zone.

What is included in the APR? -The total cost of the loan including: the finance charge, all legal fees, survey fees, recording fees, broker's fees, and title insurance premiums. -The total finance charge to the total amount to be financed. -The total finance charge (including a computation of unearned finance charges) to the total amount to be financed. -None of the Above

The total finance charge to the total amount to be financed. extra info: Annual Percentage Rate (A.P.R.): An expression of the relationship of the total finance charge to the total amount to be financed.

How many primary steps must be taken to develop a general plan? Who is required to develop a general plan? What are the primary steps, in order, to achieve the desired general plan? -There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: A Resource Analysis, Formulation of Community Goals, and The Plan Implementation. -There are five primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: A Resource Analysis, Formulation of Community Goals, and The Plan Implementation. -There are three primary steps that must be taken to achieve the general plan. Under California Code, every city is required to develop a general plan. The steps are as follows: A Resource Analysis, The Plan Implementation and Formulation of Community Goals. -There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: Formulation of Community Goals, A Resource Analysis, and The Plan Implementation.

There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: A Resource Analysis, Formulation of Community Goals, and The Plan Implementation.

The Escrow Act, found in the California Financial Code, establishes two essential mandates for escrow validity. What are these mandates? -There must be a binding contract between buyer (grantor) and the seller (grantee); and there must be a conditional delivery of transfer instruments and funds to separate agencies. -There must be a binding contract between buyer (neutral party) and the seller (grantee); and there must be a conditional delivery of transfer instruments and funds to a grantor. -There must be a binding contract between buyer (grantee) and the seller (neutral party); and there must be a conditional delivery of transfer instruments and funds to a dual agency. -There must be a binding contract between buyer (grantee) and the seller (grantor); and there must be a conditional delivery of transfer instruments and funds to a neutral third party.

There must be a binding contract between buyer (grantee) and the seller (grantor); and there must be a conditional delivery of transfer instruments and funds to a neutral third party. extra info: For an escrow to be valid, there must be a binding contract between the buyer and seller that can appear in any legal form, and there must be the conditional delivery of transfer instruments and funds to a neutral third party.

San Diego tenant Jack Stone is a full-time slacker. The guy has not paid rent in months and refuses to give up possession of the property. After many attempts to solve the problem outside of a courtroom, landlord Tom Crick gives up, files an eviction notice, and obtains a judgment to obtain possession of the property. Three weeks later, however, Jack tells Tom that just that morning he's filed for bankruptcy--so the eviction is off. Which of the following statements is true of this situation? -Tom is out of luck and should get in line behind Jack's other creditors. As for the apartment, Jack cannot be forced out of it when he's in bankruptcy. -Tom is in luck. Since he has already taken the appropriate actions and obtained a judgment to obtain possession of the property before Jack filed his bankruptcy petition, the previously filed eviction remains in effect. -Tom and Jack must retain lawyers to sort out this mess, because there is no set way of handling this type of situation. -Because Jack was able to successfully file a bankruptcy petition, he may not have to move out yet. He must attempt to file a Retroactive Petition for Bankruptcy, with the required documentation from that time period. If he obtains a judgment stating that.

Tom is in luck. Since he has already taken the appropriate actions and obtained a judgment to obtain possession of the property before Jack filed his bankruptcy petition, the previously filed eviction remains in effect.

The cost approach to value may be derived by: -Total Land Valuation + Depreciated Value of Building = Value of Property Cost Approach -Total Land Valuation + Undepreciated Value of Building = Value of Property Cost Approach -Total Land Valuation - Building Valuation = Value of Property Cost Approach -Total Land Valuation + Building Valuation = Value of Property Cost Approach

Total Land Valuation + Depreciated Value of Building = Value of Property Cost Approach

Jackson, a broker, is accused of commingling his money with trust account funds. His broker's trust account is a non-interest-bearing account. The current balance of the trust account is $430,000. The earnest deposit funds portion of the account totals $415,000; the broker's initial deposit totals $15,000. Is Jackson guilty of commingling? -No, he can clearly show through well-kept records his initial deposit of $15,000 and the trust fund money of $430,000. He is not earning interest from any part of this account, including his initial deposit of personal funds. -Yes, he should not have any money of his own ever mixed with clients' earnest money deposits. -Yes, Jackson's initial deposit to open the account should have only totaled about $1,000. The $15,000 he deposited of his own money to open the account is considered excessive. -Yes, Jackson's initial deposit to open the account should have only totaled about $200.00. The $15,000 he deposited of his own money to open the account is considered excessive.

Yes, Jackson's initial deposit to open the account should have only totaled about $200.00. The $15,000 he deposited of his own money to open the account is considered excessive.

Peter has been offered the position of property manager for a large apartment complex. These apartments are upscale with impeccable maintenance programs and beautiful amenities for its residents. His contract has a clause that states, "If at any time during our agreement the property has a vacancy rate of more than 12%, our agreement is cancelled." Should this clause give Peter pause in accepting the position? Does this type of clause have a name? -Yes, Peter should be giving this position a second thought based on the clause. This type of clause is an Allowable Vacancy Rate. -No, Peter shouldn't worry about the clause. He needs to have faith in his abilities. The property is upscale and very desirable and shouldn't have a vacancy issue. This type of clause is an Allowable Vacancy Rate -No, Peter shouldn't worry about the clause. There are ways to work around such a statement. If necessary, he can rent to anyone, regardless of their qualifications, to fulfill the required vacancy rate. This type of clause is a Maximum Profit Clause. -Yes, Peter should be giving this position a second thought based on the clause. This type of clause is a Rate of Return for Owner Clause.

Yes, Peter should be giving this position a second thought based on the clause. This type of clause is an Allowable Vacancy Rate.

The McColls have made an offer on a new home. The home is new construction and scheduled to be completed by the end of the year. They provide a purchase deposit--a check in the amount of $40,000--to their agent, Suzette. Suzette, at the broker's direction, deposits the earnest money in the broker's trust fund account within two business days of receipt of the funds. Did Suzette follow the proper procedures? -No, the check should not have been cashed. If a check is used as an earnest money deposit, it is to be held until acceptance of the offer. The seller must also be informed the buyer's check is being held and not negotiated. -Yes, Suzette deposited the earnest money in the broker's trust fund account as directed. She also deposited the check within three business days of receipt. Unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed. -No, Suzette needed to deposit the earnest money in the broker's trust fund account within two days of receipt, not necessarily two business days. -Both A and C

Yes, Suzette deposited the earnest money in the broker's trust fund account as directed. She also deposited the check within three business days of receipt. Unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed.

Jack owns a small home near a school. He doesn't have any children, and doesn't plan on having any in the future. Jack is a writer and works out of his home. All of the noise from the playground during the day interrupts Jack while he is trying to work. Tina, a friend of Jack's, also owns a small home. Her home is in a quiet, little secluded neighborhood. She has a child that will be entering first grade in the fall and wishes she lived closer to a school. One day, Jack asked Tina if she would want to exchange homes. Is this a possibility? -Yes, a trade of properties (Exchange) is possible if the trade involves no financing and the properties are not mortgaged. -Yes, a trade of properties (Exchange) is possible if the trade involves no financing. -No, it is not a possibility. Simply "trading" real estate is not recognized under California Real Estate Law. -None of the Above

Yes, a trade of properties (Exchange) is possible if the trade involves no financing and the properties are not mortgaged. extra info: An exchange is a trade of properties that are not mortgaged and when there is no financing involved.

Amy suffered a spinal cord injury. She is partially paralyzed and confined to a wheel chair. She is self-sufficient in day-to-day living, has a career, and is looking for a new apartment. She decides to take a tour of Golden Gate Gables apartments. She was very happy with the two-bedroom unit and wants to put in an application for the unit. She has a special van—to accommodate her wheelchair--that requires an extra-wide disabled parking space. The Golden Gate Gables does not provide any special parking for the disabled. If Amy's application is approved for the apartment, does the apartment complex have to install a special parking spot for Amy? -Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces. -No, as long as Amy has received full disclosure of the absence of any special parking for her needs, if she decides to pursue the application further, that is her decision. -No, Amy cannot expect special accommodations for herself because she decides she would like to live in the complex. It would take time and money to make the necessary changes. The complex is not obligated to make those changes for her. -Both B and C

Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces.

The Browns have a real estate agreement with Sell Fast Real Estate Company. A couple makes a ridiculously low offer on their home, which is five-bedrooms, five-baths in Malibu. The offer is $200,000 less than the Browns' asking price. Does the broker have to present the offer to the Browns, even if it is obviously going to be rejected and waste everyone's time? -No, if an offer is clearly not going to be accepted, the broker, acting in the seller's best interest, does not have to present the offer. -Yes, according to the regulations of the Real Estate Purchase Agreements in California, all offers received by the broker must be presented to the seller, no matter how out of line with expectations. -Yes, the agent, acting in the seller's best interest, must present the offer. In discussing the property with other prospective buyers, there is a record of an offer having been extended, making the property appear desirable. -None of the Above

Yes, according to the regulations of the Real Estate Purchase Agreements in California, all offers received by the broker must be presented to the seller, no matter how out of line with expectations.

Deanna is thinking of taking the step from renter to homeowner. She has a very stable position as a surgical nurse and excellent credit. She doesn't, however, have a large sum of cash handy for the down payment. One Sunday morning, she notices advertising for new condos where "no down payment is required." Should she look for any other information in the ad? -No, the "no down payment required" gives her the initial information to peak her interest and take a look at the condos. After taking a look at the property, they can fill her in on all the details. -Yes, she should make sure the amount or percentage of down payment is there; annual percentage rate and if an increase is possible; total finance charge; and total number of payments and due dates. -Yes, she should make sure the amount or percentage of down payment is there; terms of repayment; annual percentage rate and if an increase is possible; total finance charge; and total number of payments and due dates. -Yes, she should make sure the amount or percentage of down payment is there; terms of repayment; annual percentage rate and if an increase is possible; and total number of payments and due dates.

Yes, she should make sure the amount or percentage of down payment is there; terms of repayment; annual percentage rate and if an increase is possible; total finance charge; and total number of payments and due dates.

Max owns a townhouse in Sacramento. He is in the process of leasing it to Hannah. The contractual lease states Hannah Scott will be leasing Max Thomas' townhouse for two years beginning July 1. She will be paying $1,000 per month due by the first of each month. The lease clearly states Max will be the landlord of the townhouse and Hannah the tenant. Is there a minimum requirement for a California lease missing? -No, the lease has met all of the minimum lease requirements of the state of California. -Yes, the missing minimum requirement is the absence of the issue of a security deposit. -Yes, the missing minimum requirement is the absence of any assignment and subleasing options. -Yes, the missing minimum requirement is the absence of a sufficient description of the property, such as an address and/or a legal description.

Yes, the missing minimum requirement is the absence of a sufficient description of the property, such as an address and/or a legal description. extra info: The minimum requirements for a California are the duration of the lease, the amount of rent and due date, the names of the parties, a sufficient description of the property, and evidence that both parties intend to create a landlord-tenant relationship. This lease does not appear to include the description of the property.

The Lemps have been looking at new homes for weeks and have not found anything worthy of an offer. Mikel, their agent, has invested a large amount of time in showing homes with no luck. Today, he calls Mr. Lemp and says, "I have found you the perfect home! The home is amazing! The yard is perfect and lush. The school district is the best in the state. This home and area are the most prestigious in the city!" Are these types of statements legal? -No, this is intentional misrepresentation and cannot be substantiated. -Yes, this is legal as long as Mikel does not violate the Federal Fair Housing Laws. These statements are considered "Puffing" in the real estate world. "Puffing" can be unethical if the statements are not true, but it is not illegal. -No, this is unintentional misrepresentation. By exaggerating, Mikel is making promises about the property and surrounding areas that are purely subjective. -No, this is merely good salesmanship. Describing a home and the surrounding area in glowing terms is just that and nothing more.

Yes, this is legal as long as Mikel does not violate the Federal Fair Housing Laws. These statements are considered "Puffing" in the real estate world. "Puffing" can be unethical if the statements are not true, but it is not illegal. extra info: Puffing is giving an exaggerated or subjective opinion, such as the schools and the area are great, and while puffing is unethical, it is not illegal as long as the exaggerated statements are not untrue.

ary and Paul have signed the Exclusive Authorization and Right to Sell listing contract with Meyer's Real Estate. The term of the agreement was sixty days. After the expiration of the agreement, Gary and Paul sold their home to a couple who were shown the home by a salesperson licensed to Meyer's Real Estate. Does the real estate company have any claim to compensation from the sale? -Yes, under the listing's "safety clause," there is a period of time set forth after the expiration of the listing contract, during which the broker is entitled to compensation if the owner sells to anyone who was shown the property or who made an offer on the property during the agreement--as long as the broker notified the owner in writing of the names of the prospective buyers with whom they negotiated during the listing term. -No, if the broker could not sell the home during the listing term, Gary and Paul have every right to sell their home themselves to whomever they choose, without owing Meyer's Real Estate Company compensation. -Yes, Meyer's is entitled to both compensation and damages if Gary and Paul sell to a prospective buyer that was gained through Meyer's Real Estate Company. -None of the above

Yes, under the listing's "safety clause," there is a period of time set forth after the expiration of the listing contract, during which the broker is entitled to compensation if the owner sells to anyone who was shown the property or who made an offer on the property during the agreement--as long as the broker notified the owner in writing of the names of the prospective buyers with whom they negotiated during the listing term.