TUTOR EXAM - 10

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

No, in general this is not a legal practice.

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

$120,000

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

$60,000

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

42

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

?

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

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

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

Yes. If it is in writing it is enforceable.

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

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

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

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

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

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

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

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

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

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

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

marital status and sexual orientation.

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

$2,093

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

$280,000

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

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

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

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