RE PRINCIPLES / MIDTERM

b. for years

***** 15 *****. A lease for 9 months is considered to be an estate: a. from period to period b. for years c. at sufferance d. at will

c. Estate at will

***** 17 *****. A lessor or lessee may unilaterally terminate which of the following? a. Estate of periodic tenancy b. Estate for years c. Estate at will d. Estate at sufferance

C. a mechanic's lien is a statutory lien

***** 23 *****. A principal difference between a mechanic's lien and a judgment lien is that: A. a judgment lien is a voluntary lien B. a judgment lien must be recorded C. a mechanic's lien is a statutory lien D. a mechanic's lien can take priority before it is recorded

b. Trust deed

***** 24 *****. Which of the following is not an estate in real property? a. Reversion b. Trust deed c. Remainder d. Leasehold

b. acknowledgment

***** 31 *****. A deed requires all of the following except: a. granting clause b. acknowledgment c. proper description d. competence by all parties

d. trustee to beneficiary

***** 39 *****. The fiduciary duties owed by the agent to the principal may be compared as to: a. mortgagor to mortgagee b. grantor to grantee c. leasee to leasor d. trustee to beneficiary

d. agency

***** 40 *****. What is the legal relationship in which a principal authorizes an agent to act as the principal's representative when dealing with a third party? a. attorney in fact b. special power of attorney c. general power of attorney d. agency

b. just broker Sherman

***** 45 *****. Broker Oliver and broker Sherman agreed to split the commission on an open listing. Broker Oliver had a buyer, but the deal fell through. Two weeks later, broker Sherman found a buyer. Who gets the commission? a. both equally b. just broker Sherman c. just broker Oliver d. neither is entitled to a commission because this is an open listing

d. when full acceptance is communicated

***** 47 *****. As used in connection with deposit receipts, the "contract date" is: a. the date the earnest money is deposited b. the date the contract is prepared c. the date the buyers sign the deposit receipt d. when full acceptance is communicated

b. An Interim Occupancy Agreement should be signed by buyer and seller

***** 48 *****. Buyer Taylor submits an offer accompanied by a cash deposit to purchase a vacant house. The offer was presented through broker Maher to the seller, who in turn accepted the offer. Before escrow closes, Taylor request permission from the broker to enter the house to measure for new carpeting. Which of the following statements is correct? a. In order for Taylor to do this, there must be a written agreement signed by the buyer and seller setting forth the limits of the repairs to be made b. An Interim Occupancy Agreement should be signed by buyer and seller c. Taylor is an equity owner and, as such, does not need permission from anyone d. If Taylor signs a rental agreement, broker Maher may give permission

c. pursuing an action in court

***** 59 *****. If a tenant refuses to pay rent due according to terms of a written lease, the landlord may have the tenant evicted by: a. serving a 30-day notice b. posting a three-day notice to quit or pay rent and allowing three days to pass c. pursuing an action in court d. filing a Notice of Defuault

d. exclusive right to sell listing

***** 75 *****. A for-sale-by-owner was finally listed with a broker. However, the seller continued to market the property by placing ads in the local newspaper. The broker put the listing in the multiple listing service and the property was shown by several other agents. As a result of the seller's ads, however, a buyer made an offer, which was accepted. From the proceeds of the sale, the seller paid a 6% commission to the broker. What kind of listing did he most likely have with the broker? a. open listing b. exclusive agency listing c. net listing d. exclusive right to sell listing

a. witnessed

***** 87 *****. A holographic will dow NOT have to be: a. witnessed b. entirely handwritten c. signed d. dated

b. avulsion

***** 89 *****. Land is torn away by the action of water in the process called a. evolution b. avulsion c. accretion d. reliction

c. Trust deed

1. Which of the following deeds is a security instrument? a. Quitclaim deed b. Grant deed c. Trust deed d. Sheriff's deed

d. buyer

10. In the sale of real property, a copy of the structural pest control certification report, if requested, must be given to the: a. broker b. escrow company c. lender d. buyer

b. No, because mineral rights are appurtenant to the land

100. A property is sold to which mineral rights have been attached. Do the mineral rights require a separate sales contract? a. No, because all real property in California must have mineral rights b. No, because mineral rights are appurtenant to the land c. Yes, because they are separate interest d. Yes, because they are not the land itself

c. estates or fees

11. Ownership rights and interests in real estate are called: a. encumbrances b. liens c. estates or fees d. all of the above

d. Will it

12. What is the one thing the holder of a life estate may not do with the property? a. sell it b. borrow against it c. lease it d. Will it

b. less-than-freehold estate

13. A leasehold is sometimes called a(n): a. estate of defeasance b. less-than-freehold estate c. freehold estate d. life estate

C. a lease

14. If an owner grants possession of real property to another person for less than the owner's interest, it is known as: A. a subordinated lease B. an uninsured lease C. a lease D. a sale-leaseback

d. dual agent

16. A broker acting as agent for both the seller and the buyer in the same transaction: a. bilateral agent b. unilateral agent c. general agent d. dual agent

a. interest a co-owner has in property which carries with it a right to possession of the whole property along with the co-owners

18. An undivided interest is the: a. interest a co-owner has in property which carries with it a right to possession of the whole property along with the co-owners b. physical location of an interest in real property c. fraction interest in a property d. divicion of property

d. possession

19. For a tenancy in comon, there is a unity of: a. time b. title c. interest d. possession

d. an operable smoke detertor

2. California law requires that every single-family home that is sold have: a. an attic b. a basement c. an energy efficient oven d. an operable smoke detector

d. undivided 1/4 interest as a tenant in common

20. 4 people purchased some rural property. How will the title be recorded if there is no mention of what each party has in the property, or how title is to be taken? Each would hold a/an: a. undivided 1/4 interest as a joint tenant b. divided 1/4 interest as a joint tenant c. divided 1/4 interest as a tenant in common d. undivided 1/4 interest as a tenant in common

c. right of survivorship

21. Which of the following is required for a joint tenancy? a. husband and wife b. estoppel c. right of survivorship d. all of the above

c. the entire property has only one title

22. A property is owned by 4 people as joint tenants. Which of the following statements is correct? a. each tenant in common holds a separate title b. when one of the joint tenants dies, the heir inherits as a tenant in common c. the entire property has only one title d. the tenants may hold unequal shares

d. all of the above

25. Which of the following may be involved in a mechanic's lien? a. notice of nonresponsibility b. 20-day preliminary notice c. Lis pendens d. all of the above

a. superior to other liens

26. Tax liens are: a. superior to other liens b. inferior to trust liens c. on par with other liens d. none of the above

d. answer their question honestly

27. If the buyer asks a direct question about a death on the property, the seller or agent must: a. inform the buyer that they must ask the broker b. refuse to answer their question c. lie in order to keep the buyer's interest in the property d. answer their question honestly

b. the servient tenement terminates

28. An easement appurtenant is extinguished by all of the following except: a. the dominant tenement terminates b. the servient tenement terminates c. the dominant and servient tenements merge d. the dominant and servient both agree

c. dominant tenemnet

29. The term "easement appurtenant" is most closely associated with a(n): a. encumbrance b. servient tenement c. dominant tenement d. servient dominant tenement

a. earthquake faults

3. The Alquist-Priolo Earthquake Fault Zoning Act is designed to control development in the vicinity of: a. earthquake faults b. fire zones c. earth slides d. water sheds

c. may be revoked

30. The main difference between an easement and a license is that a license: a. confers an estate b. may be converted to an option c. may be revoked d. may be transferred

c. constructive notice

32. When a judgment or real estate document is recorded, persons who are unaware of the recording are deemed to have received: a. no notice b. actual notice c. constructive notice d. actual knowledge

d. Escheat

33. In which of the following ways may an individual not receive title to real property? a. Adverse possession b. Quitclaim deed c. Patent d. Escheat

b. an enforceable contract

34. A contract for the purchase of a commercial building on the condition that the buyer find satisfactory leases is: a. illusory b. an enforceable contract c. an unenforceable contract d. both a bilateral and unilaleral contract

d. is valid on its face but may be revoked by either party

35. A voidable contract: a. lacks offer or acceptance b. has no lawful effect c. contains all the required elements of a valid contract d. is valid on its face but may be revoked by either party

c. bilateral contract

36. The language "promise-for-promise" in an exclusive listing creates a(n): a. employment contract b. unilateral contract c. bilateral contract d. all of the above

A. any legally competent person who has received a power of attorney form another person called the principal

37. An attorney-in-fact is: A. any legally competent person who has received a power of attorney from another person called the principal B. a person called the principal who has implied powers C. any attorney at law who represents a persona called the principal D. any legally competent person who acts as a dual agent with the knowledge and consent of the buyer and seller

d. all of the above

38. In which of the following cases may a minor legally convey title to real property? a. minor is married, divorce, or widowed b. minor is on active duty in the U.S. military c. minor has received a declaration of emancipation from a court d. all of the above

b. observable

4. The phrase "as is" in real estate refers to __________________ conditions. a. habitable b. observable c. concealed d. any and all

a. The single agent broker represents only the buyer or seller

41. Which of the following applies to the concept of a "single agency"? a. The single agent broker represents only the buyer or seller b. The single agent broker represents the seller and the buyer c. In a single agency, the broker is a dual agent or the seller and buyer d. In a single agency, the agent represents two principals

a. provides no legal protection for obtaining a commission

42. An oral listing agreement: a. provides no legal protection for obtaining a commission b. would enable the broker to file a lawsuit for a commission c. provides the same rights and protections as a written listing agreement d. offers some protection and right to sue

d. estoppel

43. All of the following terminate an agency agreement except: a. death of the agent or principal b. mutual consent c. destruction of the subject property d. estoppel

b. ostensible dual agency

44. An agent performs the acts of an agent for two different parties in a transfer of property. He doesn't inform them of this because he is unaware that both consider him to be their agent. He has fallen into: a. accidental dual agency b. ostensible dual agency c. coincidental double agency d. inadvertent double agency

c. listing agreement

46. Safety clauses are most likely to appear in a: a. deposit receipt b. mortgage c. listing agreement c. commission split

d. for any reason

49. Prior to acceptance by a seller, a buyer's offer may be revoked: a. in the event of breach of contract b. provided that the buyer's deposit is retained by the seller c. in the event of the agent's death d. for any reason

a. sale

5. A Real Estate Transfer Disclosure Statement is required in the ___________________ of one to four residential units. a. sale b. lease c. foreclosure d. all of the above

d. tenant

50. Someone acquiring less-than-freehold estate is called a(n): a. owner b. lender c. offeror d. tenant

b. Mineral rights may be leased

51. Concerning minerals found under land, which of the following statements is correct? a. Mineral rights escheat to the State upon transfer b. Mineral rights may be leased c. Mineral rights are personal property d. Mineral rights are chattels real

d. percentage lease

52. A lease that provides for the landlord to receive a portion of the lessee's gross sales is called a: a. gross lease b. triple net lease c. graduated lease d. percentage lease

c. Verification

53. Which of the following is NOT a way to terminate a contract? a. Rescission b. Release c. Verification d. Novation

d. refundable

54. A security deposit must be: a. in cash b. returned to tenant within 10 days after moving out c. returned if tenant is handicapped d. refundable

c. the term of the lease and whether the unit is furnished or unfurnished

55. The maximum amount of security deposit a landlord may demand from a prospective tenant depends upon: a. the total number of tenants who plan to occupy the premises b. the number of children occupying the unit c. the term of the lease and whether the unit is furnished or unfurnished d. economic competition from nearby properties

b. retaliatory eviction

56. An eviction that occurs in revenge for some complaint made by the tenant is knows as: a. constructive eviction b. retaliatory eviction c. statutory eviction d. judicial eviction

c. novation

57. When both parties to a contract agree to substitute a new agreement for the present one, this is known as a: a. release b. rescission c. novation d. breach

c. lessor

58. An unlawful detainer proceeding is most often taken by a: a. beneficiary b. trustee c. lessor d. grantee

c. Mold hazard

6. Broker Logan took a listing on a home. When filling out the NHDS, which of the following would Logan not include? a. Flood hazard b. Seismic hazard c. Mold hazard d. Fire hazard

a. "let the buyer beware."

60. The Latin phrase "caveat emptor" means: a. "let the buyer beware." b. "let the seller beware." c. "beware of the buyer." d. "beware of the seller."

c. seller will not be responsible for the cost of repairing any defect

61. An "as is" clause means that the: a. broker will personally cover the cost or repairing any defect b. buyer and seller must both contribute funds to cover the cost of repairing defects c. seller will not be responsible for the cost of repairing any defect d. buyer will not be responsible for the cost of repairing any defect

c. Transfer Disclosure Statement

62. "TDS" is an abbreviation for a real estate document called: a. Tax Deed Statement b. Tenancy Default Statement c. Transfer Disclosure Statement d. Trust Deed Statement

d. Proposition 65

63. Which proposition has imposed extensive asbestos disclosure requirements on owners of commercial buildings constructed prior to January 1, 1979? a. Proposition 45 b. Proposition 50 c. Proposition 55 d. Proposition 65

d. answer their question honestly

64. If the buyer asks a direct question about a death on the property, the seller or agent must: a. inform the buyer that they must ask the broker b. refuse to answer their question c. lie in order to keep the buyer's interest in the property d. answer their question honestly

b. listing

65. A contract between an owner of real property and an agent who is authorized to represent him or her: a. offer to purchase b. listing c. option d. lease

d. executory contract

66. A contract that has yet to be performed is known as an a. executed contract b. express contract c. implied contract d. executory contract

b. be in writing

67. To be enforceable, real estate sales agreements must: a. contain a granting clause b. be in writing c. be acknowledged d. be recorded

d. broker

68. In a real estate transaction, the agent is always a ________________________ a. salesperson b. sales associate c. broker associate d. broker

c. all residential property transactions of one-to-four units

69. The Agency Relationship Disclosure Act applies to: a. all real property transactions b. all commercial property transactions c. all residential property transactions of one-to-four units d. business opportunity transactions

d. all of the above

7. When a condominium is sold, the seller must, upon request, provide to the buyer: a. CC&R b. bylaws c. financial statements d. all of the above

a. a disclosure of agency

70. Before a buyer makes an offer on real property, he or she must be given: a. a disclosure of agency b. lead based paint hazard disclosure c. a property inspection report d. a public report on the subject property

c. prior to taking a listing or writing an offer

71. The Agency Relationship Disclosure Act requires all agents to supply a written document to buyers and sellers explaining the nature of agency: a. after close of escrow b. prior to signing loan documents c. prior to taking a listing or writing an offer d. within 10 days after signing an offer to purchase

d. assignment

72. Which of the following is not a way to create an agency relationship? a. agreement b. ratification c. estoppel d. assignment

b. open listing

73. While prospecting, agent Roberts came upon a homeowner who said he would sell his home if he could get the price he wanted. He did not want to list his property with agent Roberts, but said he would listen to any offers that might be presented, and pay a commission if it was accepted. This most nearly describes which type of listing? a. exclusive right to sell b. open listing c. exclusive agency d. net listing

d. pay a commission to the listing broker when the sale is completed

74. Under the terms of an exclusive right to sell listing, a seller is required to: a. sell the house if he receives a full price offer b. pay a commission only if he wants to c. notify the broker if he decides to sell the property himself d. pay a commission to the listing broker when the sale is completed

c. a fee simple absolute

76. The highest form of modern land ownership is known as: a. a life estate b. a real estate trust c. a fee simple absolute d. an estate for years

b. grantee

77. Someone who receives real property is known as the: a. mortgagee b. grantee c. devisor d. grantor

c. separate ownership

78. Ownership in severalty is: a. concurrent ownership b. a joint tenancy c. separate ownership d. community property

d. Ownership in severalty

79. Which of the following is NOT considered concurrent ownership? a. Joint teancy b. Tenancy in common c. Community property d. Ownership in severalty

c. condominium unit

8. All listing brokers must conduct a reasonably competent and diligent visual inspection of the property. Which items must be visually inspected? a. condominium common areas b. permits held in the name of the condominium association c. condominium unit d. all of the above

a. Tenancy in common

80. A holder of which of the following ownership interests can devise her share of the property to someone else? a. Tenancy in common b. Joint tenancy c. Tenancy in partnership d. Community property with right of survivorship

b. severance

81. The four unities of joint tenancy do NOT include a. time b. severance c. interest d. possession

a. all property acquired during marriage

82. Community property is: a. all property acquired during marriage b. all property acquired by the husband during marriage c. all property acquired during marriage that is not separate d. the only form of ownership during marriage

c. 13%

83. What percentage of the United States Gross Domestic Product (GDP) does California generate? a. 4% b. 10% c. 13% d. 20%

b. an easement

84. The right of an owner of a parcel of land to travel over an adjoining parcel of land is known as: a. a restriction b. an easement c. a covenant d. an encroachment

a. dominant tenement

85. When a landowner has the right to travel over the property of an adjoining landowner, the property that benefits from the easement right is called the: a. dominant tenement b. servient tenement c. life tenant d. tenant at will

a. intestate

86. If a person dies without living a will, that person dies: a. intestate b. statutorily c. testate d. administratively

c. along a flowing body of water

88. Accretion is the process of accumulating new soil a. next to a lake b. adjacent to an ocean c. along a flowing body of water d. close to a baseline

c. Subdivided Land's Law

9. Which state law protects the buyer from fraud, misrepresentation, or deceit in the marketing of subdivided lots, and undivided interests in new subdividions? a. Megan's law b. Interstate Land Sales Full Disclosure Act c. Subdivided Land's Law d. Mello-Roos Community Facilities Act

b. recording

90. In order to be valid, a grant deed does NOT require: a. a granting clause b. recording c. the signature of the grantor d. a proper writing

d. recording the deed

91. Public notice of the transfer of ownership of real property is given by means of: a. posting a notice on the property b. running an ad in the local newspaper c. notifying all parties involved in the transfer d. recording the deed

d. severalty

92. Which one of the following is not a type of concurrent ownership? a. joint tenancy b. tenancy in common c. community property d. severalty

c. metes and bounds

93. All of the following are measurements of land except: a. front feet b. square feet c. metes and bounds d. acre

c. California Association of REALTORS

94. C.A.R. stands for: a. California Acquaintanceship of REALTORS b. California Alliance of Realty c. California Association of REALTORS d. California Affiliation of Realty

b. trade fixtures

95. Shelving, cash registers, room partitions or dressing room dividers in a business are known as: a. personal fixtures b. trade fixtures c. fixtures d. real property

a. Two

96. How many types of real estate licenses are there? a. Two b. Three c. One d. Four

a. rights of the owner of property bordering a stream or river

97. The term riparian rights refers to which of the following? a. rights of the owner of property bordering a stream or river b. rights of the owner of property bordering a forest c. rights of the owner of property bordering a lake d. rights of the owner of property bordering a meadow

d. is immovable

98. The main difference between real and personal property is that real property: a. is less valuable b. can be depreciated c. is more valuable d. is immovable

c. cost of the item

99. All of the following are taken into account when determining if an item is a fixture except: a. relationship of the parties b. intent in placing the item c. cost of the item d. usefulness of the item