Real estate
A form of business organization in which the co-owners are fully liable for the company's debts is (a)a general partnership. (b)a limited partnership. (c)a corporation. (d)all of the above.
The correct answer is: (A): All the owners are general partners and share a full liability for the debts and obligations of the partnership.
1: Land use controls that benefit the public health, safety, and general welfare are possible because of the government's (a)restrictions. (b)regulations. (c)health and safety laws. (d)police power.
D
What type of background check does the Real Estate Commissioner and Appraisal Commissioner use? (a)Late rental payments (b)Personal habits (c)Credit history (d)Late child support
The correct answer is: (D): In accordance with Section 17520 of the Family Code, DRE is precluded from issuing or renewing a full-term license if the applicant is on a list of persons (obligors) who have not complied with a court order to provide child support payments. The Department of Child Support Services compiles the list from information provided by the District Attorney of each county in California.
10: Rejecting real estate loans because of location is called (a)stering (b)redlining (c)blockbusting (d)distortion
b
6: The procedure for filing a subdivision plan when property is divided into two or more parcels is found in the (a)Subdivided Lands Law (b)Subdivision Map Act (c)zoning regulations (d)building codes
b
8: The federal Fair Housing Act is enforced by (a)FHA (b)HUD's Office of Equal Opportunity (c)state agencies (d)the Justice Department, through the Attorney General.
b
California's Real Estate Law is found in the (a)Civil Code(b)Financial Code(c)Government Code(d)Business and Professions Code
d
How many sections are in a township? (a)6(b)18(c)24(d)36
d
Real Estate licenses are renewable for a period of (a)one year.(b)two years.(c)three years.(d)four years.
d
The rectangular survey system is also known as the (a)metes and bounds system(b)Torrens system(c)lot, block, and tract system(d)U.S. government survey system.
d
All of the following are true about professional trade organizations EXCEPT (a)They help shape the law and the industry by establishing and enforcing standards of practice. (b)They enforce the real estate law much like the real estate commissioner. (c)They provide sources of information, training, and contact with other professionals. (d)They provide an effective lobbying voice for their members.
he correct answer is: (B): Professional trade organizations have nothing to do with enforcing real estate laws.
A long-range plan for local development is commonly known as (a)the general plan (b)zoning (c)CC&Rs (d)the design plan
A
The Subdivided Lands Law can be found in the Quiz Question (a)Penal Code (b)Civil Code (c)Health and Safety Code (d)Business and Professions Code
D
The government's police power can be used for all of the following purposes EXCEPT (a)public health (b)general welfare (c)safety (d)taxation
D
Which of the following is required to operate as a Prepaid Rental Listing Service (PRLS) agent? (a)A real estate broker's license. (b)A written contract with prospective tenants. (c)A real estate salesperson's license. (d)Access to the Multiple Listing Service.
The correct answer is: (B): An advance-fee rental agent collects a fee in advance from prospective tenants to find them suitable rental properties. An advance-fee rental agent must have a Prepaid Rental Listing Service license (PRLS), but real estate brokers are exempt from this license requirement. PRLS contracts must be in writing and approved by the Real Estate Commissioner.
A method of land description where each parcel in a subdivision is identified by tract, lot, and block numbers is called (a)plat map. (b)lot and block. (c)metes and bounds. (d)government survey.
The correct answer is: (B): Lot and Block is a description of real property that identifies a parcel of land by reference to lot and block numbers appearing on maps and plats of recorded subdivided land.
6: Which of the following must comply with the Subdivided Lands Law? (a)Parcels of more than 160 acres (b)Parcels of up to 160 acres (c)Parcels of any size (d)None of the above
The correct answer is: (B): Parcels of up to 160 acres are included in the Subdivided Lands Law.
5: The main purpose of California's Community Redevelopment Agency (CRA) is (a)to rehabilitate dilapidated low income apartments and sell them as condominiums. (b)to rehabilitate existing structures for low and moderate-income housing. (c)to lend money to low income buyers for the purchase of inner-city housing. (d)to demolish older structures in favor of new planned developments.
The correct answer is: (B): The deteriorating condition of some urban neighborhoods has served as the impetus for local redevelopment efforts. California's Community Redevelopment Law (found in the Health and Safety Code) allows the formation of a community redevelopment agency (CRA). CRAs work to rehabilitate existing structures or bring in new development both to provide low- and moderate-income housing and to employ low-income persons.
The real estate commissioner is appointed by the Governor and charged with (a)creating and interpreting the real estate law. (b)enforcing the real estate law. (c)advising the governor on changing the real estate law. (d)All of the above.
The correct answer is: (B): The real estate commissioner's primary function is to enforce the real estate law. Creation and interpretation of the real estate law is a legislative process.
13: Housing discrimination on the basis of race is prohibited throughout the United States on the basis of the (a)First Amendment of the Constitution. (b)National Association of Fair Housing. (c)13th Amendment to the Constitution. (d)Rumford Fair Housing Act.
The correct answer is: (C): Housing discrimination on the basis of race is prohibited based on the 13th Amendment to the United States Constitution.
The liability of a limited partner for business debts is limited to (a)the same as the general partners. (b)any amount agreed to in the partnership agreement. (c)his/her contribution to the firm. (d)the amount of the debts equally divided among all the partners.
The correct answer is: (C): Limited partners are not responsible for the firm's debts beyond their investment. At least one partner in such a firm must be a general partner with unlimited liability.
Freehold estate includes (a)estates for years. (b)leasehold estates. (c)life estates (d)All of the above
The correct answer is: (C): The distinctive characteristic of the freehold estate is that they endure for an interminable duration. Freehold estates include the fee simple absolute, fee simple subject to power of termination, and life estate.
The classical definition of property ownership is ownership of (a)the surface only. (b)horizontal and vertical areas above and below the property. (c)everything below the property in the shape of an inverted pyramid with its apex at the center of the earth and infinite airspace. (d)all that one can perceive.
The correct answer is: (C): This is the classical definition of ownership of land. Modern day practical theory prohibits exercising absolute control beyond a reasonable distance above and below the surface of the land.
4: When the local building authority permits an exception to applicable building codes, it is referred to as a(n) (a)infraction. (b)exemption. (c)permit. (d)variance.
The correct answer is: (D): A variance is an exception to the zoning law.
The rights of a landowner whose property line touches on a river or other flowing stream are called (a)sub-surface rights. (b)correlative user rights. (c)high-low water rights. (d)riparian rights.
The correct answer is: (D): Riparian rights are the rights of an abutting owner to his/her fair share of water flowing past the land.
10: What is a commercial acre? (a)An acre minus space for streets and parking. (b)An acre minus space for warehouse structures. (c)An acre minus space for all housing accommodations. (d)An acre minus space for schools and emergency services.
Your answer: (A) is correct. A commercial acre is that portion of an acre of newly subdivided land remaining after dedication for streets, sidewalks, parks and so on.
Which of the following is considered a "less than freehold estate"? (a)Lease (b)Life estate (c)Fee simple estate (d)Fee simple subject to power of termination
Your answer: (A) is correct. A less than freehold estate is an estate in possession generally referred to as a leasehold. Such interests exist for a definite period of time or successive periods of time until termination by notice.
Commingling is one of the greatest single causes for loss of license. Which of the following would NOT be considered commingling? (a)Holding an uncashed deposit check after acceptance of an offer when directed to do so by the seller. (b)Cashing a deposit check (made out to the broker) and placing the money in the broker's safe, properly identified as being the deposit received from the buyer. (c)Depositing either cash or a check received as a deposit in the broker's personal account to be held until called for by the escrow officer. (d)Depositing money received by his/her client in the broker's personal account to pay miscellaneous expenses.
Your answer: (A) is correct. An exception to this rule is when a check is received from an offeror in connection with an offer to purchase or lease. In this case, the deposit check may be held uncashed by the broker until acceptance of the offer if the following conditions are met: 1) The check by its terms expressly provides that it is not to be negotiated by the broker, or if the offeror has given written instructions to the broker that the check shall not be deposited or cashed until acceptance of the offer; and, 2) The offeree is informed, before or at the time the offer is presented for acceptance, that the check is being so held.
The diversity of California's population and economy makes the state unique compared to the rest of the country. Which statistic shows the greatest disparity between the state and the nation? (a)Home values (b)Household income (c)Population (d)Growth
Your answer: (A) is correct. Home value statistics show the greatest disparity between the state and the nation.
Which of the following has had the LEAST influence on California history and the real estate market? (a)Natural hazards (b)Cultural forces (c)Political forces (d)Economic forces
Your answer: (A) is correct. Nature provides an abundance of both benefits and hazards, but cultural, political, and economic forces often have brought about more changes than even the most severe earthquake or fire.
A system providing for surveying and describing land by reference to principal meridians and base lines is known as the (a)rectangular survey system. (b)metes and bounds system. (c)property address system. (d)lot and block system.
Your answer: (A) is correct. The Rectangular Survey System was established in 1785 by the federal government, providing for surveying and describing land by reference to principal meridians and base lines. Also known as the government survey system.
14: The Unruh Civil Rights Act prohibits discrimination in (a)accommodations and business establishments of every kind. (b)public establishments only. (c)commercial establishments only. (d)for profit enterprises only.
Your answer: (A) is correct. The Unruh Civil Rights Act prohibits discrimination in accommodations and business establishments and now includes all of the protected classifications that appear in FEHA. Sections 54-55.1
8: The four unities of joint tenancy are (a)Time, Title, Interest, Possession(b)Time, Interest, Possession, and Liability(c)Title, Interest, Possession, and Ability(d)Time, Possession, Liability, and Interest
Your answer: (A) is correct. The four unities to a joint tenancy are: Time, Title, Interest, andPossession. "TTIP"
Before taking the licensing examination, the applicant must successfully complete (a)a 3 hour course in Ethics. (b)three college-level courses. (c)a course in office administration. (d)a course in fair housing.
Your answer: (B) is correct. Before taking the licensing examination, the applicant must successfully complete three college-level courses in Real Estate Principles, Real Estate Practice, and one course from a designated list.
Agent Jones has an offer on a listing contingent on the buyer's uncle approving the property since he will be financing the loan. Agent Jones hasn't discussed this with the buyers, but assures the seller that there will be no problems regarding the uncle. After the seller accepts the offer, the buyers tell the agent that the uncle is out of town and they don't know when he will return. By failing to explain the meaning and probable significance of the contingency in the offer, the agent has engaged in (a)unethical conduct. (b)unlawful conduct. (c)practical conduct. (d)proper conduct.
Your answer: (B) is correct. By failing to explain the potential risks concerning the contingency in the offer, the listing agent has engaged in "unlawful conduct" according to the Real Estate Commissioner. An agent must explain the meaning and probable significance of any contingency in an offer that he/she knows or reasonably believes may affect the closing date of the transaction, or the timing of the vacating of the property by the seller or its occupancy by the seller.
The S 1/2 of the NW 1/4 of the SE 1/4 contains (a)40 acres. (b)20 acres. (c)10 acres. (d)5 acres.
Your answer: (B) is correct. Go backwards:First: Find the SE 1/4.Second: Find the NW 1/4 of the first area.Third: Find the S 1/2 of the second area.This area contains 20 acres.
2: The owner of a house located next to the landing strip of a small public airport successfully sued the local governing body, which was required to purchase the property. This type of action is known as (a)equitable severance. (b)inverse condemnation. (c)condemnation. (d)eminent domain.
Your answer: (B) is correct. Inverse condemnation is an action brought by a person whose property has been effectively taken, substantially interfered with, or taken without just compensation.
Mark gives a life estate to Charlie. Mark's interest is (a)personal property (b)reversionary. (c)leasehold. (d)remainder.
Your answer: (B) is correct. Mark's interest reverts back to him after the death of Charlie.
California real estate acquired by an out-of-state married person that would have been considered community property if it had been acquired by a resident of California is considered (a)separate individual property (b)quasi-community property (c)jointly held personal property. (d)distance owned real property.
Your answer: (B) is correct. New California residents should be aware of the concept of quasi-community property. Quasi-community property is any California real estate acquired by an out-of-state married person that would have been considered community property if it had been acquired by a resident of California; and any California real estate acquired in exchange for real or personal property located anywhere, when the California real estate would have been considered community property if it had been acquired by a California resident.
The most heavily weighted subject matter on the salesperson and broker examination is (a)Property Ownership and Land Use Controls and Regulations. (b)Practice of Real Estate and Mandated Disclosures. (c)Valuation and Market Analysis. (d)Contracts.
Your answer: (B) is correct. Practice of Real Estate and Mandated Disclosures: Approximately 25% of salesperson and broker exam examination.
The California Coastal Act defines coastal zones as (a)the zone between 1,000 yards off-shore to 1,000 yards inland. (b)the length of the state from the sea inland 1,000 yards or more. (c)all beach and cliff zones in contact with the sea. (d)all coastal zones consisting of buildable land.
Your answer: (B) is correct. The California Coastal Act defines coastal zones, which generally run the length of the state from the sea inland 1,000 or more yards, depending on terrain.
A salesperson tells his broker that he is quitting and plans to go to work for another broker. His present employing broker should (a)notify the Real Estate Commissioner and hold the license until further notice from the Commissioner. (b)give the salesperson his license and notify the Real Estate Commissioner immediately in writing. (c)request cancellation of the salesperson's license. (d)call the other broker to confirm the change.
Your answer: (B) is correct. The Commissioner's Regulations state that upon termination of employment of a salesperson, the broker shall immediately return the license certificate to the salesperson and immediately notify the commissioner thereof in writing.
A form of ownership by which investors purchase certificates of ownership in a trust, which in turn invests the money in real property and then distributes any profits to the investors free of corporate tax is called a(n) (a)Land Contract Sales Trust (LCST). (b)Real Estate Investment Trust (REIT). (c)Pooled Mortgage Investment Trust (PMIT). (d)Flow-through Investment Trust (FIT).
Your answer: (B) is correct. This is the definition of a Real Estate Investment Trust (REIT).
While ownership of real property is usually transferred by deed, ownership of personal property usually is transferred by (a)land contract. (b)bill of sale. (c)trust deed. (d)voucher.
Your answer: (B) is correct. Transfer of personal property is accomplished with a bill of sale.
In the sale of a business, bulk transfer laws pertain to (a)fixtures. (b)goodwill. (c)inventory. (d)All of the above
Your answer: (C) is correct. A "bulk sales transfer" is any transfer in bulk (not a transfer in the ordinary course of the seller's business) of a major part of the materials, inventory or supplies of an enterprise (stock-in-trade).
According to the real estate law, a real estate salesperson must work under the supervision of (a)the city council. (b)the Department of Business Oversight. (c)his/her employing broker. (d)the Department of Consumer Affairs.
Your answer: (C) is correct. A real estate salesperson may only work under the supervision of his/her employing broker. Commissions earned can only be paid through the employing broker.
All of the following are grounds for revocation or suspension of a real estate license EXCEPT (a)knowingly participating in the sale of a stolen mobile home. (b)knowingly concealing a material fact in an application for registration of a mobile home. (c)accidentally overpaying taxes on a mobile home. (d)failing to deliver a properly endorsed certificate of title from the seller to the buyer.
Your answer: (C) is correct. Accidentally overpaying taxes on a mobile home is not under the jurisdiction of the real estate commissioner.
The sale or lease of a business, including all or most of the assets or stock of the business is termed a (a)bankruptcy. (b)acquisition. (c)business opportunity. (d)discount sale.
Your answer: (C) is correct. Business opportunity: Any type of business that is for sale (also called business chance brokerage, or simply business brokerage). The sale or lease of the business and goodwill of an existing business, enterprise or opportunity, including a sale of all or substantially all of the assets or stock of a corporation, or assets or a partnership or sole proprietorship.
The letters CMBA stand for (a)California Monetary Bankers Association. (b)California Metropolitan Brokers Association. (c)California Mortgage Bankers Association. (d)California Managers & Brokers Association.
Your answer: (C) is correct. California Mortgage Bankers Association (CMBA)
All of the following are factors considered when determining whether an item of personal property has become real property, EXCEPT (a)agreement between the parties. (b)method of attachment. (c)cost of the article. (d)relationship of the parties.
Your answer: (C) is correct. Fixtures are items of personal property which have become attached to real property, thus becoming real property. The five tests of a fixture are: Method of attachment, Agreement of the parties, Relationship of the parties, Intention of the person attaching it, Adaptability of the item. Study Aid: MARIA
In addition to the prelicense education requirements to become a real estate broker, an applicant must also (a)be an attorney and a member of the California state bar. (b)show proof of a master's degree in a related field. (c)have been actively engaged as a real estate salesperson for at least two of the preceding five years, or equivalent. (d)show proof of at least two years experience as a CEO, manager, or small business owner.
Your answer: (C) is correct. In addition to the education requirements to qualify for the real estate broker's exam, an applicant must have two years experience within the preceding five years, or a 4-year college degree with a major or minor in real estate...one or the other.
California real estate law originated from (a)Calbre regulations. (b)Spanish law. (c)English common law. (d)European law.
Your answer: (C) is correct. In general, California's laws relating to real estate originated from English common law.
Which of the following events is arguably the most important single event with respect to the exploration and settlement of the western frontier and California? (a)The Mexican/American war (b)The Treaty of Guadalupe Hidalgo (c)The discovery of gold at Sutter's Mill (d)The creation and upholding of Mexican land grants
Your answer: (C) is correct. In the midst of the postwar land problems, gold was discovered at Sutter's Mill in 1848. This discovery, coming within weeks of the end of the war, gave new importance to America's westernmost frontier.
15: The practice of rejecting real estate loan applications because of the location of the property involved is called (a)blockbusting. (b)mainlining. (c)redlining. (d)steering.
Your answer: (C) is correct. Redlining is the illegal practice by a lending institution of restricting the number of loans or the loan-to-value ratio in certain areas of a community, or refusing to make loans in those areas, based on the demographics of the area's residents.
A broker wanted to operate a real estate office under the fictitious name MLB Realty. Before operating under a fictitious name, the broker must (a)publish the fictitious name in a newspaper of general circulation. (b)file under the Secretary of State. (c)obtain a DRE license bearing the fictitious business name. (d)file with the city as a fictitious business.
Your answer: (C) is correct. The broker may not do business under a fictitious name until he/she has a DRE license issued in the fictitious name.
Among the principles involved in the "Bundle of Rights" is the right to (a)Build, tax, destroy, and rebuild. (b)Design, plan, implement, and profit. (c)Possession, use, enjoy, exclude others, dispose. (d)All of the above.
Your answer: (C) is correct. The five major rights, which can be remembered by the acronym PUEED, are:1. Right of Possession2. Right to control the property's Use3. Right to Enjoyment of the property4. Right to Exclude others from the property5. Right to Dispose of the property
Spanish settlement of California began with the establishment of (a)Military forts. (b)Maritime ports. (c)Missions. (d)Indian reservations.
Your answer: (C) is correct. The major impetus to Spanish settlement of California was the establishment of missions.
7: Ownership interest in the airspace of a particular portion of real property, as well as an interest in common in the land and structure describes a (a)stock cooperative. (b)planned unit development. (c)condominium project. (d)time-share.
Your answer: (C) is correct. The owner of a condominium has an exclusive ownership interest in the airspace of a particular portion of real property, as well as an interest in common in the land and structure.
According to the Real Estate Commissioner's suggestions for professional conduct, which of the following would be considered "desirable conduct?" (a)Attempting to settle disputes with other licensees through mediation or arbitration. (b)Submitting all written offers in a prompt and timely manner. (c)Never claiming to be an expert in an area of specialization when in fact you are not. (d)All of the above.
Your answer: (D) is correct. All of the choices are considered "desirable conduct" under the Commissioner's Recommended Conduct In Sale, Lease, or Exchange Transactions.
8: Which of the following statements is TRUE regarding public reports? (a)A public report may be renewed under certain circumstances. (b)A copy of the public report must be given to prospective purchasers. (c)No sales can be closed until the final public report is received. (d)All of the above.
Your answer: (D) is correct. All of the choices are true as to public reports. If all parcels have not been sold within five years of issuance of a final public report, it can be renewed for an additional five years.
The process through which disciplinary action is taken by the Department of Real Estate starts with an audit or an investigation of the licensee's activities or alleged misconduct. What is the next step in the disciplinary process? (a)A hearing is held before an Administrative Law Judge to examine evidence and hear testimony.(b)The commissioner makes a decision to impose a penalty or dismiss the charges.(c)The licensee can elect to appeal the findings of the investigation or audit. (d)If warranted, an accusation is filed against the licensee.
Your answer: (D) is correct. An accusation is the next administrative step toward disciplinary action once the investigation has been conducted.
Which of the following is NOT appurtenant to real estate? (a)Growing trees (b)Buildings (c)Fences (d)Trade fixtures
Your answer: (D) is correct. Appurtenant means belonging to; adjunctive; appended or annexed to. For example, the garage is appurtenant to the house, and the common interest in the common elements of a condominium is appurtenant to each apartment. Appurtenant items run with the land when the property is transferred. Trade fixtures do not transfer with the property.
Any individual who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan application, must be licensed as a (a)real estate salesperson. (b)real estate broker. (c)bank employee. (d)Mortgage Loan Originator (MLO).
Your answer: (D) is correct. As of January of 2011, Federal law established by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) now states that any individual who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan application, must be licensed as a Mortgage Loan Originator (MLO) through the Nationwide Mortgage Licensing System (NMLS). This new law applies to:1) Individuals licensed under the California Department of Real Estate (salesperson or broker).2) Individuals licensed under the Department of Business Oversight (CFL or CRMLA).
A licensee was farming a non-integrated neighborhood which was next to an integrated neighborhood by telling the owners that if minority people moved into their neighborhood, their property values would go down. This is an example of (a)steering. (b)panic selling. (c)blockbusting. (d)both (b) and (c).
Your answer: (D) is correct. Blockbusting or panic selling (or panic peddling) violates federal fair housing laws.
A licensee must take 45 hours of continuing education in order to renew the license. The 45 hours must include (a)Agency and Trust Fund Handling. (b)Ethics and Fair Housing. (c)Risk Management and Management & Supervision. (d)All of the above
Your answer: (D) is correct. Every four years licensees must complete 45 hours of continuing education. Part of the 45 hours must include 18 hours in the category of consumer protection, plus coverage of Agency, Ethics, Fair Housing, Trust Fund Handling, Risk Management, and Management & Supervision.
Which of the following individuals are exempt from the real estate licensing requirements? (a)A person selling his or her own property. (b)An attorney-at-law rendering services in the performance of his or her duties as attorney. (c)Anyone holding a duly executed power of attorney from the owner of property. (d)All of the above.
Your answer: (D) is correct. None of these activities requires a real estate license.
A section contains ____ acres. (a)80 (b)160 (c)320 (d)640
Your answer: (D) is correct. One standard section is one square mile, which contains 640 acres.
Using only a street address to identify real estate can be problematic because (a)rural, undeveloped land may not have a street address. (b)street names may change. (c)a driveway may be moved. (d)All of the above
Your answer: (D) is correct. Physical characteristics of land and streets can be a problem when identifying real estate. Street names can change; driveways and access points can move; undeveloped land may not even have a physical address.
California exercises its police power to promote the public (a)trust. (b)image. (c)tax base. (d)health, safety, and general welfare.
Your answer: (D) is correct. Police power is the authority of the state to adopt and enforce laws and regulations to promote and support the public health, safety, morals and general welfare.
A person holding title to property in severalty would most likely have (a)a life estate. (b)an estate for years. (c)ownership in common with others. (d)sole ownership.
Your answer: (D) is correct. Severalty is sole ownership of real property. You are viewing Unit Three: Section 6 o
Tenants in common have equal right of (a)time. (b)title. (c)interest. (d)possession.
Your answer: (D) is correct. Tenancy in common is a form of concurrent ownership where two or more persons hold separate legal title in the same property through the unity of possession. This means that each co-owner has an undivided fractional interest in the land and a right to use the whole property.
The Real Estate Law DOES NOT require licensing for (a)the resident manager of an apartment building or complex. (b)the manager of a hotel. (c)a real estate assistant who does not perform acts that require a real estate license. (d)all of the above.
Your answer: (D) is correct. The Real Estate Law does not require licensing for the resident manager of an apartment building or complex; the manager (or employees of the manager) of a hotel, motel, or auto or trailer park; an employee of a property management company who merely opens vacant units to prospective tenants; and a real estate assistant who does not perform acts that require a real estate license.
3. The city's master plan includes (a)background information on the area economy. (b)population growth. (c)information on existing land uses. (d)All of the above
Your answer: (D) is correct. The city's master plan is a comprehensive plan to guide the long-term physical development of a particular area. It is both a statement of policy and a means to enact that policy.
A licensee cannot lead an owner of real property, during listing negotiations, to believe that the licensee is precluded from charging less than the commission or fee quoted (a)Due to the law (b)As a result of DRE regulations (c)Because of the rules of an organization (d)All of the above
Your answer: (D) is correct. The law requires licensees to inform prospective clients that real estate commissions are negotiable. Licensees cannot imply that the law, DRE regulations, or the rules of an organization, such as an association of real estate licensees requires a certain amount of commission to be charged.
What is the maximum amount that could be recovered from the Recovery Fund for one salesperson? (a)$50,000 (b)$40,000 (c)$80,000 (d)$250,000
Your answer: (D) is correct. The question is asking for the maximum amount that may be recovered, which is for any one licensee's conduct. $50,000 for a single transaction, but $250,000 maximum for any one licensee.
A large, densely populated metropolitan area, consisting of a number of major urban areas is referred to as a(n) (a)apex statistical area. (b)county. (c)urban region. (d)megalopolis.
Your answer: (D) is correct. Urban development generally has been concentrated in coastal and central valley areas. Eventually, Los Angeles and San Diego will form one continuous urban area, or megalopolis.
An "S" corporation (a)is taxed as a partnership. (b)avoids corporate taxation. (c)passes tax liability through to shareholders. (d)all of the above.
Your answer: (D) is correct. With an "S" corporation, taxable income and net losses are passed through to the corporation's shareholders. Double taxation at the corporate level is thus avoided.
9: The Subdivision Map Act is a(n) (a)enabling act. (b)restrictive act. (c)informational act. (d)police power act.
Your answer: (D) is not correct. The correct answer is: (A): The Subdivision Map Act is an enabling act. This means that it authorizes cities and counties to establish subdivision requirements by local ordinance.
7: Federal fair housing protections do NOT include the category of (a)economic status (b)familial status (c)handicap (d)sex
a
A real estate salesperson is supervised by (a)the employing broker only(b)any licensed broker(c)the seller(d)the buyer or seller
a
Something that is used with the land for its benefit, such as a roadway or a waterway, is known as (a)an appurtenance(b)personal property(c)a fixture(d)an encumbrance
a
The Real Estate Law allows a business opportunity to be sold (a)by a real estate licensee.(b)by the financial planner.(c)by a PRLS licensee.(d)with a special endorsement.
a
The test for a fixture does NOT include (a)origin of manufacture(b)method of attachment(c)intent of the parties(d)relationship of the parties
a
There are three principal baselines and meridians in California. The intersection of the Humbold Baseline and Meridian is in (a)northern California(b)central California(c)southern California(d)a state other than California
a
Today, more than 50 percent of California is owned by the (a)private sector(b)federal government(c)municipalities(d)state government
a
Community property is property owned by (a)churches. (b)husband and wife. (c)the municipality. (d)the community.
b
The applicant for a real estate salesperson's license must complete how many college-level courses before taking the licensing examination? (a)One(b)Three(c)Five(d)Seven
b
The term real estate means the same thing as (a)personal property(b)real property(c)ownership(d)intangible personal property
b
Under the Real Estate Law, a real estate salesperson works for a broker as an (a)independent contractor.(b)employee(c)agent(d)associate broker
b
When a real estate license expires, licensed activity must cease but the license may be renewed up to (a)one year later(b)two years later(c)three years later(d)four years later
b
4: Minimum parcel size, building height limitations, and required setbacks are covered in a (a)general plan (b)specific plan (c)zoning ordinance (d)master plan
c
9: The federal Fair Housing Act provides for age-restricted housing when all residents of an adult community are at LEAST age (a)50 (b)55 (c)62 (d)65
c
A real estate broker's license may be obtained by any of the following except a (a)sole proprietorship(b)corporation(c)limited liability company(d)partnership
c
Every real estate broker must be licensed by the Department of (a)Corporations.(b)State.(c)Real Estate.(d)Housing.
c
Personal property is usually transferred by a (a)will(b)deed(c)bill of sale(d)purchase contract
c
Under Spanish rule, land was owned primarily by the (a)missions(b)peasants(c)king(d)conquistadors
c
Which of the following does NOT require a real estate license? (a)Negotiating a lease(b)Presenting an offer(c)Selling your own property(d)Taking a listing
c
11: If a subdivision project will have a significant effect on the environment, the government agency that approves the project may be required to prepare a(n) (a)Alquist-Priolo report. (b)Earthquake fault zone report. (c)Coastal Zone Impact Report. (d)Environmental Impact Report.
our answer: (D) is correct. An Environmental Impact Report (EIR), authorized by the California Environmental Quality Act of 1970 (CEQA), may be required before subdivision approval if the project will have a significant effect on the environment.