Quiz 14, Quiz 13, Quiz 15, Quiz 2, Quiz 1, Quiz 3, Quiz 5, Quiz 4, Quiz 7, Quiz 6, Quiz 8, Quiz 10, Quiz 11, Quiz 12

7. A small area that is zoned differently from the surrounding area is an example of: a. conditional zoning. b. spot zoning. c. commercial zoning. d. none of the above.

b (p.381)

14. If there is a discrepancy between local and state building codes, the subdivider will use the code that: a. most fits his or her needs. b. sets the highest standard of safety. c. is approved by the lending institution. d. all of the above.

b (p.383)

9. A manufactured home is transferred with a: a. bill of sale. b. certificate of title. c. quitclaim deed. d. none of the above.

b (p.384)

20. Eminent domain allows the government to: a. tax private property. b. take private property for compensation. c. use private property. d. none of the above.

b (p.385)

18. The process of purchasing land in a run-down area and constructing new buildings, parks, and other new construction is called: a. inverse condemnation. b. redevelopment. c. conversion. d. none of the above.

b (p.387)

4. Each year property taxes in California (Proposition 13) are allowed to increase by what percentage? a. 1% b. 2% c. 5% d. 10%

b (p.401)

8. The documentary transfer tax is charged on money borrowed or cash down payments at the rate of: a. 50 cents per $500. b. 55 cents per $500. c. $1 per $1,000. d. none of the above.

b (p.410)

20. A homeowner can deduct from income taxes all the items listed below, except: a. interest on a trust deed. b. depreciation. c. property taxes. d. prepayment penalties

b (p.416)

11. Who appoints the Real Estate Commissioner? a. President b. Governor c. State Senate d. State Assembly

b (p.431)

4. An unethical real estate office policy that keeps a listing "in house" for a period of time, in order to try to sell it first, is called a: a. blind listing. b. pocket listing. c. classified listing. d. paid listing.

b (p.448)

18. To obtain the "highest and best use" of a property, the appraiser would first do a: a. site analysis. b. neighborhood analysis. c. regional analysis. d. conformity analysis.

a (p.307)

13. How do owner-occupied homes affect a neighborhood? a. Lend economic stability b. Bring down values c. Artificially inflate prices d. Increase the possibility of turnover

a (p.311)

2. Which of the following is NOT one of the three methods to determine the value of real property? a. Correlation approach b. Cost approach c. Capitalization approach d. Comparative approach

a (p.335-349)

4. Which of the following is NOT a type of depreciation? a. political b. Physical c. Functional d. Economic

a (p.342)

10. Which of the following is an example of economic obsolescence? a. Rundown neighborhood b. Peeling paint c. Eccentric design d. Wear and tear on the load bearing members

a (p.344)

5. A false advertisement (Section 10177 of the Business and Professions Code) that gives the impression that the agent is the owner of the property is called a: a. blind advertisement. b. pocket advertisement. c. classified advertisement. d. paid advertisement.

a (p.448)

10. The total liability of the recovery fund in any one transaction is: a. $20,000 b. $25,000 c. $30,000 d. $50,000

a (p.452)

9. If escrow closes on the 21st day of a 30-day month, how much would an escrow company give of the $900 rent paid on the first of the month to the buyer? a. $270 b. $450 c. $600 d. $900

a (p.489)

1. An encumbrance: a. burdens the property. b. is always a lien. c. cannot affect the physical use of a property. d. all of the above.

a (p.49)

12. If we use 27.5 years for straight-line depreciation on residential properties, what is the annual depreciation on an apartment that cost $825,000 with land cost of $550,000? a. $10,000 b. $20,000 c. $30,000 d. $50,000

a (p.492)

16. A notice of a pending lawsuit that clouds title is called a(n): a. lis pendens. b. writ of execution. c. injunction. d. none of the above.

a (p.56)

2. Easements are always: a. non-money encumbrances. b. encroachments. c. specific liens. d. estates.

a (p.57)

2. The best way to create an agency relationship is: a. by written agreement. b. by handshake. c. by using the MLS service. d. by creating a dual agency.

a (p.75)

1. A licensee is required to tell the parties involved whom he or she represents: a. as soon as possible. b. after the loan is funded. c. after the escrow instructions are filed. d. after the offer has been accepted.

a (p.77)

5. When a real estate salesperson mixes his/her personal funds with the deposit of a client, it's called: a. commingling. b. commission. c. secret profit. d. contingency.

a (p.95)

13. The trustor is also known as the: a. escrow. b. third party. c. borrower. d. Iender.

c (p.232)

8. Annual straight-line depreciation is determined by: a. dividing total cost by years. b. dividing land cost by years. c. dividing improvement cost by years. d. any of the above.

c (p.492)

5. Local improvements, like street lights and sewers, are paid for by property owners through: a. tax liens. b. injunctions. c. special assessments. d. all of the above.

c (p.54)

14. Once recorded, a judgment is good for: a. 3 years. b. 5 years. c. 10 years. d. 15 years.

c (p.55)

4. Which of the following is NOT a lien? a. Trust deeds b. Mechanic's liens c. Easements d. Taxes and special assessments

c (p.57)

19. An easement that does NOT specify a special area for a right-of-way is known as a(n): a. easement in gross. b. vague easement. c. unlocated easement. d. partial easement.

c (p.58)

5. Which of the following is NOT a method of creating real property? a. Bolt it down b. Cement it down c. Plug it in d. Nail it down

c (p.7)

11. Which of the following is FALSE concerning real estate commissions? a. Commissions are negotiable. b. A real estate license is required to receive a commission for conducting a real estate transaction. c. A salesperson receives compensation (his or her commission) directly from the principal. d. All of the above.

c (p.88-90)

2. Which of the following is NOT a test to determine whether an item is a fixture? a. Relationship of the parties b. Method of attachment c. Value of the item d. Intent of the parties

c (p.9)

20. Which of the following is NOT a remedy for breach of contract? a. Unilateral rescission b. Specific performance c. Action for dollar damages d. Substitute performance

d (p.125)

5. Federal discrimination laws evolved from: a. Jones v. Mayer. b. Title VIII of Civil Rights Act of 1968. c. 13th Amendment to the U.S. Constitution. d. all of the above.

d (p.388-390)

7. Which of the following non-profit organization's real properties are usually exempt from property taxes? a. Charitable b. Religious c. Medical or educational d. All of the above

d (p.408)

18. A "REALTOR" is a member of which trade association(s)? a. Local Board of REALTORS ® b. California Association of REALTORS ® c. National Association of REALTORS ® d. Any of the above

d (p.454)

6. The real estate trade association whose members are known as Realtists is the: a. National Association of REALTORS®. b. Local Board of REALTORS ®. c. California Association of REALTORS ®. d. National Association of Real Estate Brokers.

d (p.455)

7. Any licensee working in the real estate field must be a member of which group? a. NAR b. CAR c. NAREB d. No affiliation is necessary

d (p.466)

2. If a $52,500 loan was made on a property, and this was equivalent to 70% of the appraisal value, what was the amount of the appraisal value? a. $90,000 b. $80,000 c. $50,000 d. $75,000

d (p.483-484)

9. Which of the following restrictions is illegal and unenforceable? a. Building size b. Zoning c. Rent control d. Race

d (p.62)

19. In what type of listing is the broker competing with the owner? a. Net listing b. Exclusive right to sell listing c. Open listing d. Exclusive agency listing

d (p.81)

9. Listing broker A negotiates the sale of C's property with the cooperation of broker B. The brokers agree to a 50/50 split of the $10,000 commission. Each broker has a salesperson who will receive 25% of their broker's commission. How much will each salesperson receive? a. $5,000 b. $2,500 c. $2.250 d. $1,250

d (p.90)

13. A real estate auction where the property must be sold to the highest bidder, no matter how low the final bid, is called a(n): a. no-sale auction. b. illusory auction. c. bidders market auction. d. absolute auction.

d (p.91)

2. An agreement that is made either verbally or in writing is known as a(n): a. express contract. b. mutual consent. c. implied contract. d. all of the above.

a (p.113)

5. Which of the following is NOT considered a basic element of any contract? a enforcement b. Mutual consent c. Capacity d. Consideration

a (p.116)

11. The current award for liquidated damages on a purchase agreement form is a maximum of: a. 3% of the home purchase price. b. 13% of the home purchase price. c. 33% of the home purchase price. d. 133% of the home purchase price.

a (p.127)

20. If the 3% liquidating damages clause in a purchase agreement is initialed and a $30,000 deposit is given towards a purchase price of $195,000, in a breach the seller could retain what amount? a. $5,850 b. $900 c. $24,150 d. $30,000

a (p.127, 480)

15. A farm 6 miles square has how many townships? a. 1 b. 6 c. 36 d. 72

a (p.13)

10. Which of the following is FALSE concerning options? a. They can be revoked at any time by the optioner (seller), without penalty. b. They have specific terms. c. They have specific time periods. d. They are granted in exchange for money.

a (p.146)

10. Which of the following is the smallest? a. Two sections b. Ten percent of a township c. 4 square miles d. 4 miles square

a (p.15)

4. A lease is usually a(n): a. estate for years. b. periodic tenancy. c. tenancy at will. d. tenancy at sufferance.

a (p.155)

12. An estate at sufferance does NOT require a notice of termination because: a. the lease has already expired. b. it is considered trespassing. c. it is generally for less than a year. d. all of the above.

a (p.157)

9. An estate where a tenant continues to retain possession, without the landlord's consent, after the expiration of the lease term is called a(n): a. estate at sufferance. b. Iess-than-freehold estate. c. estate at will. d. estate in reversion.

a (p.157)

18. A lease for a property in a town or city can be for any predetermined time, up to how many years? a. 99 years b. 100 years c. 10 years d. 50 years

a (p.164)

20. When a person temporarily rents out an apartment on which he or she holds a lease, it is called a(n): a. sublease. b. tenure. c. assignment. d. transfer.

a (p.165)

3. Which of the following is NOT a way to terminate a lease? a. Making monthly payments b. Destruction of the premises c. Surrender of the lease d. Expiration of the term

a (p.167)

5. A transaction where an owner sells his or her property to another party and leases the property from the new owner for a stated period of time is known as a: a. sale-leaseback. b. Iease purchase option. c. ground lease. d. net lease.

a (p.172)

14. With regards to the closing escrow statement, the seller's and buyer's respective totals: a. can be different. b. must balance. c. are negotiable. d. none of the above.

a (p.191)

6. A recorded history of a specific property is called a: a. chain of title. b. title plant. c. title record. d. all of the above.

a (p.197)

16. Which of the following would NOT be applicable to RESPA requirements? a. Purchase of a shopping center b. A house to be built c. A property on which a mobile home sits d. A condominium unit of one-to-four families

a (p.206)

18. With what type of clause does the entire balance of the loan become due and payable when an owner is alienating, transferring, or conveying a property? a. Alienation clause b. Conveyance clause c. Transfer clause d. None of the above

a (p.222)

5. A clause in a financial instrument that allows a lender to demand immediate payment of the entire note balance is known as a(n): a. acceleration clause. b. damage clause. c. assumption clause. d. demand clause.

a (p.222)

8. What provision in an instrument of finance would permit a change in the priority of liens on a property? a. Subordination clause b. Acceleration clause c. Alienation clause d. MPR provision

a (p.222)

16. Impound accounts are NOT used to pay: a. interest. b. property taxes. c. fire insurance. d. all of the above.

a (p.223)

17. The nominal interest rate is: a. stated in the note. b. compounded daily. c. the current interest rate. d. the effective interest rate.

a (p.223)

10. What type of fixed interest loan has payments that start out lower and gradually increase? a. Graduated payment mortgage b. Adjustable rate mortgage c. Fixed rate mortgage d. Reverse annuity mortgage

a (p.227)

20. A lender charges an origination fee, which includes points. One "point" is equal to: a. 1% of the loan amount. b. .01% of the loan amount. c. 10% of the loan amount. d. 100% of the loan amount.

a (p.227)

6. What do we call a borrower who secures a loan through a trust deed? a. Trustor b. Trustee c. Beneficiary d. Holder in due course

a (p.232)

9. Which of the following is NOT a party to a trust deed? a. Grantor b. Beneficiary c. Trustee d. Trustor

a (p.232)

14. The trustee issues a reconveyance deed when the promissory note is: a. paid in full. b. in default. c. recorded. d. expired.

a (p.235)

19. Trade fixtures are: a. removable. b. forms of business furniture. c. personal property. d. all of the above.

d (p.10)

3. Which system may be used for legal description purposes? a. U.S. Government survey b. Metes and bounds c. Lot, block, and tract d. All of the above

d (p.10)

3. Which of the following is a classification of a contract? a. Valid b. Unenforceable c. Voidable d. All of the above

d (p.115)

6. A signed written contract takes precedence over oral agreements or prior written agreements based on: a. the performance rule. b. English common law. c. the statute of frauds. d. the parol evidence rule.

d (p.121)

15. An assignment: a. is only for personal service. b. transfers only liability. c. is a new contract. d. transfers a person's right in a contract.

d (p.122)

9. A remedy for breach can be: a. a unilateral rescission. b. an action for damages. c. an acceptance of breach. d. all of the above.

d (p.125)

3. A written instrument that conveys and evidences title is called a(n): a. will. b. deed. c. transfer. d. implied warranty.

b (p.28)

16. Which of the following is a document conveying title with NO warranties, expressed or implied? a. Grant deed b. Quitclaim deed c. Holographic will d. All of the above

b (p.29)

5. A lot facing a turnaround portion of a dead-end street is called a(n): a. interior lot. b. cul-de-sac lot. c. flag lot. d. corner lot.

b (p.312)

9. A table that illustrates how the highest value is located in the front part of a lot is called a: a. value table. b. depth table. c. percentage table. d. declining value table.

b (p.314)

15. A deed does NOT take effect until it is: a. signed. b. delivered and accepted. c. notarized. d. all of the above.

b (p.32)

14. A married couple can exclude from taxable income up to what amount of profit from the sale of a residence? a. $100,000 b. $125,000 c. $250,000 d. $500,000

d (p.416)

16. What do we call the wood lining on the lower portion of an interior wall with the upper portion wallpapered or covered with another material different from the lower portion? a. R- Value b. Wainscoting c. Board foot d. Turnkey

b (p.323)

3. An owner can deduct a "loss" on the sale of residential property if that property: a. is a second residence. b. is a condominium. c. has a homeowner's exemption filed on it. d. has been converted into rental property.

d (p.416)

17. Compared to ordinary income tax rates, capital gains are taxed: a. at a higher rate. b. at the same rate. c. at a more regressive rate. d. at a lower rate.

d (p.418)

1. Which of the following does NOT require a real estate license? a. Selling real estate for others b. Buying real estate for others c. Negotiating leases for others d. Selling your own real estate

d (p.434)

12. Which of the following is FALSE concerning real estate licenses? a. Brokers' licenses are renewable. b. Salespersons' licenses are renewable. c. All licensees must complete 45 hours of CE courses every four years. d. Real estate licenses are valid for the life of the licensee.

d (p.436-437,442)

3. Who has the power to revoke, restrict, or suspend a real estate license? a. California Legislature b. NAR c. CAR d. Real Estate Commissioner

d (p.443,447)

9. A sale of a business (business opportunity) by a real estate agent can include which of the following? a. Real estate b. Personal property c. Goodwill d. All of the above

d (p.444)

19. The portion of the Business and Professions Code that refers to licensing and subdivisions is called: a. Real Estate Recovery Law. b. Real Estate General Fund. c. Commissioner's Regulations. d. California Real Estate Law.

d (p.446)

17. If you borrowed $2,500 at 9% for 3 years, ten months and 20 days, the total amount of interest would be closest to: a. $187.50. b. $225.00. c. $675.00. d. $875.00.

d (p.485-486)

3. A lien (money owed) on real property makes the property: a. Leased. b. an easement. c. alienated. d. encumbered.

d (p.49)

12. Real property is best described as: a. movable. b. anything of value. c. things we own. d. immovable.

d (p.5)

17. Which of the following is an encumbrance that affects the physical use of real property? a. An easement b. A building restriction c. An encroachment d. All of the above

d (p.57)

17. Appurtenant means the ownership of the item: a. is personal. b. is movable. c. is a crop. d. runs with the land.

d (p.7-8)

18. Emblements are usually: a. growing crops. b. cultivated annually. c. on leased land by tenant farmers. d. all of the above.

d (p.8)

8. Personal property that is permanently affixed to real property is called: a. appurtenant. b. encroachment. d. trespassing. d. a fixture.

d (p.8)

16. A "bill of sale" transfers title to: a. real property. b. heirs. c. immovable items. d. personal property.

d (p.8-9)

16. A copy of the listing agreement must be given to the signing party: a. within 3 days of being signed. b. at the discretion of the listing broker. c. before the escrow is opened. d. immediately after it is signed.

d (p.86)

20. A broker tries to sell a listed property through his or her own company's agents before giving it to an MLS. This is called a: a. secret profit. b. subagency. c. multiple deception. d. pocket listing.

d (p.86)

6. In order to receive a commission, the broker must find a buyer who is: a. ready. b. willing. c. able. d. all of the above.

d (p.88)

15. In a Transfer Disclosure Statement, both the buyer's and seller's brokers must conduct what type of property inspection? a. Reasonably competent b. Diligent c. Visual d. All of the above

d (p.90)

11. The principle that states that the value of the best property in a neighborhood will be adversely affected downward by the value of many lesser properties is known as: a. progression. b. regression. c. nonconformity. d. accession.

b (p.326)

3. The approach that takes the current selling prices of similar properties and adjusts these prices for any differences is called the: a. income approach. b. comparative approach. c. cost approach. d. none of the above.

b (p.335)

8. The replacement cost approach to appraisal is best used for: a. raw land. b. new construction. c. single-family dwellings. d. apartments.

b (p.339)

8. A property owner living on a river bank acquires land due to the shifting of the river. This process is called: a. succession. b. accretion. c. encroachment. d. none of the above.

b (p.34)

13. What is NOT an example of functional obsolescence? a. Massive cornices b. Hole in the roof c. Out-dated kitchen d. One-car garage

b (p.343)

5. Loss of value due to outmoded style or non-usable space is called: a. income obsolescence. b. functional obsolescence. c. economic obsolescence. d. physical deterioration.

b (p.344)

11. Which of the following would be considered operating expenses to be subtracted from the gross income of a property when determining its value through the income capitalization approach? a. Interest payments b. Property taxes c. Payments on loan principal d. All of the above

b (p.347)

12. Someone using another person's land continuously, without paying any property taxes, might qualify to obtain an easement, or legal right to use the land, according to: a. accession. b. prescription. c. adverse possession. d. Murphy's Law.

b (p.35)

15. The seller of a 10-year-old condominium must provide, to the buyer, all the following, except: a. CC&Rs of condo association. b. pink public report. c. financial statements of the condo association. d. by-laws of the condo association.

b (p.365)

2. A formal disclosure of the important facts about a subdivision is called the: a. Formal Development Report. b. Public Report. c. County Disclosure Report. d. none of the above.

b (p.366)

9. Time, title, interest, and possession are the four essential unities of a: a. tenancy in common. b. joint tenancy. c. partnership. d. corporation.

b (p.38)

19. If a property manager rents space in a strip shopping center for $8.50 a square foot per year, what is the monthly rent if a tenant rents an area 60 feet by 90 feet and 75 feet by 115 feet? a. $6,109 b. $9,934 c. $73,312 d. $119,212

b (p.473)

16. Two brokers sold a home for $162,000 and split 50/50 the 4.5% commission. How much would the salesperson receive if she had a 50% split with her broker? a. $1,012.50 b. $1,822.50 c. $2,025.00 d. $7,290.00

b (p.482-483)

14. How much would have to be invested at 7% in order to provide an investor with $840 monthly income? a. $12,000 b. $144,000 c. $170,560 d. None of the above

b (p.483)

1. If you sell your home for $350,000, which represents a 40% profit, what was the amount of your profit? a. $70,000 b. $100,000 c. $250,000 d. none of the above

b (p.483-484)

7. P x R x T = ? a. Area b. Interest c. Rate d. None of the above

b (p.485-486)

4. If a note for $3,740 is sold at a discount for $2,431, what is the rate of discount from the face amount? a. 25% b. 35% c. 45% d. None of the above

b (p.489)

6. What is the process of proportionately dividing expenses or income to a precise date? a. Depreciation b. Proration c. Allotment d. All of the above

b (p.489-490)

The rights and interests that a person has in the thing owned is the definition of: a. wealth. b. property. c. debt. d. none of the above.

b (p.5)

10. Which of the following real estate terms best describes mortgages and trust deeds? a. Promissory notes b. Security devices c. Involuntary liens d. General liens

b (p.51)

12. When determining the starting time for a mechanic's lien, it is important to know when the work began, known as the: a. start-stop period. b. scheme of improvements. c. waiting period. d. period of improvement.

b (p.52)

7. A written notice that should be given within 20 days of supplying labor or services, and before filing a mechanic's lien, is known as a: a. notice of nonresponsibility. b. preliminary notice. c. mechanic's notice. d. construction notice.

b (p.52)

13. A judgment is best described as a(n): a. voluntary lien. b. general lien. c. specific lien. d. attachment lien.

b (p.55)

15. Compensation made by the payment of money or the return of property, thus clearing a lien from the record, is known as: a. abstract of title. b. satisfaction of judgment. c. judgment compensation. d. dismissal of attachment.

b (p.55)

6. In California, what is the usual method of forcing someone to sell property to pay off a judgment? a. Attachment sale b. Sheriff's sale c. Lis pendens sale d. Condemnation sale

b (p.56)

18. A utility company obtains an easement in gross to run power lines over your property. As a result, your property would become a: a. dominant tenement. b. servient tenement. c. tenement appurtenant. d. none of the above.

b (p.58)

20. Smith sold Blackacre Estate to Willis. Before he sold it, Blackacre had an appurtenant easement across Whiteacre Estate, owned by Johnson. When Willis tried to use the easement, Johnson protested. Which is true? a. Whiteacre is the dominant tenement. b. An appurtenant easement always passes when the property is sold. c. Smith owns the servient tenement and can give it to anyone. d. Johnson owns the dominant tenement and his consent must be obtained.

b (p.58)

8. If Bob places improvements and permanent fixtures on property that he does not own, Bob has created a(n): a. adverse possession. b. encroachment. c. avulsion. d. hostile occupancy.

b (p.62)

7. The best term to describe the relationship between the broker and the principal is: a. distrustful. b. fiduciary. c. nurturing. d. implied.

b (p.76)

12. A salesperson employed by a listing broker is an agent of: a. the buyer. b. the owner/seller. c. the lender. d. the courts.

b (p.77)

15. Selling an apartment: a. is impossible if tenant has a lease. b. terminates a tenant's lease. c. does NOT terminate a tenant's lease. d. none of the above.

c (p.172)

5. Which of the following is NOT a requirement of a valid escrow? a. Signed instructions b. Neutral party acting as a dual agent c. Confirmation of citizenship d. Conditional delivery of funds and documents

c (p.185-187)

12. According to generally accepted practices, an escrow agent is authorized to: a. give buyers advice. b. change instructions when asked. c. call for buyer's documents and funds. d. authorize pest control repairs.

c (p.188)

1. In Northern California the buyer usually pays for escrow fees. Who usually pays for them in Southern California? a. Buyer b. Seller c. Both buyer and seller d. There are no escrow fees in Southern California

c (p.189)

10. In an escrow, the process of signing, transfer of documents and distribution of funds is referred to as: a. the wrap up. b. the proration. c. the closing. d. the interpleader.

c (p.191)

8. Which of the following is NOT normally prorated? a. Interest b. Fire insurance c. Broker's commission d. Property taxes

c (p.191)

2. Proration of expenses and income is based on a month with: a. 28 days. b. 29 days. c. 30 days. d. 31 days.

c (p.194)

15. Most lenders require buyers (owners) to obtain an extended title insurance policy, known as a(n): a. RESPA policy. b. CLTA policy. c. ALTA policy. d. none of the above.

c (p.200)

19. RESPA requires that the buyer be notified of closing costs: a. only if requested. b. within 3 business days after escrow closes. c. one business day before closing (upon buyer's request). d. none of the above.

c (p.206)

4. A person who takes a negotiable instrument from another with no knowledge of defect is called a(n): a. assignee. b. attorney-in-fact. c. holder in due course. d. Iimited note holder.

c (p.222)

11. Should the trustor default, the trustee may have to sell the property for the: a. trustor. b. trustee. c. beneficiary. d. title insurance company.

c (p.232)

12. Another term for the trustee is: a. borrower. b. lender. c. third party. d. escrow company.

c (p.232)

7. What document does a trustee record after being notified by the lender of the trustor's nonpayment? a. Request for Notice b. Notice of Foreclosure c. Notice of Default d. Notice of Deficiency

c (p.236)

7. Grantor C conveys a large house and land to his daughter and son-in-law to be theirs as long as they are married. One year later they are divorced. What happens to the property? a. The daughter acquires it b. The son-in-law acquires it c. It reverts back to C d. The couple must sell it

c (p.25)

18. With a life estate, the ownership interest is limited to the: a. economic life of the property. b. Iife of the grantor. c. Iife of any designated person or persons. d. any of the above.

c (p.26)

7. All of the following real estate terms are closely related, except: a. interior. b. cul-de-sac. c. frontage. d. T-intersection.

c (p.309-314)

20. A woman purchases an adjacent lot to the one she already owns. This is known as: a. contribution. b. subdividing. c. plottage. d. monopolizing.

c (p.315)

2. If from the ridge board, the highest point of the roof, a roof slopes downward in four directions, it is referred to as a: a. flat roof. b. gable roof. c. hip roof. d. shingle roof.

c (p.319)

4. Boards nailed across rafters, as a foundation for the roof covering, are called: a. ridge boards. b. girders. c. open sheathing. d. flashing.

c (p.321)

17. What do we call a series of changes brought about by a chain of events (causes and effects)? a. An equilibrium b. A development c. A trend d. None of the above

c (p.325)

12. A buyer will not pay more for a particular property if he/she can buy an equally desirable one for less, according to the principle of: a. conformity. b. contribution. c. substitution. d. progression.

c (p.326)

13. Which type of will, unless signed with an "X," requires NO witnesses? a. Living trust b. Statutory c. Holographic d. All of the above

c (p.33)

4. What distinguishes a will from other types of property transfers? a. It allows for the transfer of more property b. It creates a present interest in property c. It only becomes effective at death d. None of the above

c (p.33)

20. Because they are "asking prices" in most cases, listings: a. are lower than market value. b. are always grossly inflated. c. set a ceiling on market value. d. none of the above.

c (p.335-336)

11. Through the process of escheat, the deceased's property passes to: a. his or her heirs. b. his or her creditors. c. the state. d. the local county.

c (p.34)

14. Which type of depreciation is always incurable, meaning nothing can be done? a. Physical deterioration b. Functional obsolescence c. Economic obsolescence d. All of the above

c (p.344)

16. The capitalization rate is a: a. return "on" investment. b. return "of" investment. c. return "on" and "of" investment. d. none of the above.

c (p.345)

6. Another term for the income approach is: a. replacement approach. b. correlation approach. c. capitalization approach. d. appropriation method.

c (p.345)

9. A quick way to convert gross income into the approximate value is to use a: a. mortgage calculator. b. gross comparable multiplier. c. gross rent multiplier. d. all of the above.

c (p.348)

17. Which appraisal method measures the present worth of future benefits? a. Market data approach b. Cost Approach c. Income approach d. All of the above

c (p.349)

15. Which of the following is TRUE concerning fee appraisers? a. They don't charge a fee b. They are mortgage company employees c. They are self-employed d. None of the above

c (p.352)

10. The Real Estate Commissioner's Official (white) Report is the: a. preliminary report. b. tentative public report. c. final subdivision public report. d. desist and refrain order.

c (p.366)

19. Regulatory authority of the housing and construction industry is NOT accomplished through: a. state contractor license laws. b. Iocal building codes. c. Mello-Roos bonds. d. state housing law.

c (p.383)

6. The first installment of property taxes is due on November 1st. When is it delinquent? a. March 1 b. July 1 c. December 10 d. November 10

c (p.406)

1. Municipal bonds issued to fund streets, sewers and other infrastructure needs before a subdivision is built and paid for by the purchaser are called: a. Installment Bonds. b. Bond Act Issuance. c. Mello-Roos Liens. d. Vrooman Act Bonds.

c (p.411)

10. A single person can avoid paying capital gains taxes on up to what amount of profit from the sale of a residence? a. $100,000 b. $125,000 c. $250,000 d. $500,000

c (p.416)

11. The sale of real estate in which the payments for the property extend over more than one calendar year is called a(n): a. tax deferred exchange. b. sale-leaseback. c. installment sale. d. none of the above.

c (p.419)

18. Any net cash or net mortgage relief that a participant in an exchange might receive in addition to the actual property is known as: a. tax free. b. booty. c. boot. d. none of the above.

c (p.420)

13. Any individual who wants to operate a real estate office must have: a. a perfect credit rating. b. a master's degree. c. a broker's license. d. all of the above.

c (p.437)

20. Which of the following is FALSE concerning the broker's exam? a. 200 questions b. Five hours to complete c. $500 fee d. 75% correct answers to pass

c (p.440)

8. How many hours of Commissioner-approved continuing education must a salesperson or broker have in order to renew his or her four-year license? a. 30 hours b. 40 hours c. 45 hours d. 60 hours

c (p.442)

15. What license is NOT issued by the Department of Real Estate? a. Broker's license b. Prepaid rental listing service license c. Alcoholic Beverage license d. All of the above

c (p.443)

14. According to the Business and Professions Code 10176, which of the following is NOT grounds for license revocation or suspension? a. Misrepresentation b. False promises c. No commissions earned for a year d. Commingling

c (p.449)

15. There are how many square feet in 81 square yards? a. 27 b. 243 c. 729 d. 656

c (p.473)

11. What is the percentage of profit a person gains if he or she purchases a property for 20% less than the listed price and then sells it for the original listed price? a. 15% b. 22% c. 25% d. 30%

c (p.483)

18. If you take back a note of $4,200 secured by a trust deed and sold it quickly for $2,730, it would represent a loss of what percent? a. 17% b. 26% c. 35% d. 54%

c (p.483)

3. If a man buys two lots for $18,000 each, and then creates three lots from the two he purchased and sells them for $15,000 each; what is his percentage of profit? a. 15% b. 20% c. 25% d. 30%

c (p.483-484)

5. How much is a 7% commission on a $120,000 sale? a. $5,833 b. $7,350 c. $8,400 d. $17,142

c (p.483-484)

10. What is the annual net income, if expenses are 32% and the quarterly income is $265,000? a. $180,200 b. $349,800 c. $720,800 d. None of the above

c (p.483-485)

11. A voluntary lien placed over more than one parcel is known as a(n): a. all-inclusive encumbrance. b. subdivision encumbrance. c. blanket encumbrance. d. multi-parcel encumbrance.

c (p.49)

13. The assessed value of a piece of property is $308,700. The tax rate is $1.02 per $100 of assessed valuation. The tax is: a. $3,496.74. b. $3,087.00. c. $3,148.74. d. none of the above.

c (p.490)

8. When you authorize a broker to have acted for you after he or she has already done so, it's known as: a. estoppel. b. confirmation. c. ratification. d. all of the above.

c (p.75)

7. The term "bill of sale" is most commonly associated with: a. real property. b. immovable property. c. personal property. d. deed transfer.

c (p.8)

14. In order for a broker to collect a commission, without going to court, a listing agreement: a. must be recorded. b. must be notarized. c. must be in writing. d. must have an expiration date.

c (p.81)

17. A Transfer Disclosure Statement is required for the sale of: a. any commercial property. b. any residential property. c. residential property consisting of 1-to-4 units. d. multi-unit commercial property only.

c (p.90)

3. With the exception of the mortgage disclosure form, which must be kept longer, transaction files of all the important broker and salesperson documents concerning a property must be kept for how long? a. One year b. Two years c. Three years d. There is no time requirement

c (p.96)

17. Of the following, which is NOT true of a grant deed? a. It is used primarily to clear a "cloud on title" from the records. b. It warranties that the owner has not conveyed title to any other person. c. It warranties that the property being conveyed is free from any undisclosed encumbrances. d. It conveys any "after-acquired" title.

a (p.29)

6. The least desirable lot, bordered on the side by the backs of lots that front on another street is a(n): a. key lot. b. interior lot. c. corner lot. d. T-intersection lot.

a (p.313)

14. Which of the following statements is FALSE? a. A trust deed is an instrument used to transfer personal property. b. A gift deed is an instrument granting a gift out of love and affection. c. A tax deed is the deed given to the buyer when a property is sold for past due property taxes. d. A sheriff's deed is the deed given to the purchaser at a court required sale.

a (p.32)

1. The expanded portion of the concrete foundation is the: a. footing. b. sole plate. c. mud sill. d. cripple.

a (p.321)

15. An increase in value of real estate due to NO effort on the part of the owner is a(n): a. unearned increment. b. skillful manipulation. c. over improvement. d. rehabilitation.

a (p.332)

18. Which appraisal method uses the principle of substitution? a. Market data approach b. Cost approach c. Income approach d. All of the above

a (p.335)

19. In the income approach, the Net Income divided by the Capitalization Rate equals: a. market value. b. interest rates. c. expenses. d. all of the above.

a (p.348)

1. Coordinating subdivision plans and insuring that subdividers comply with the city or county's master plan is the objective of the: a. Subdivision Map Act. b. Preliminary Public Report. c. Subdivided Lands Act. d. California Zoning Law.

a (p.363)

13. With regards to a subdivision, if the Real Estate Commissioner wanted to stop sales or any violations, he or she would: a. issue a desist and refrain order. b. not approve the preliminary report. c. use police power. d. institute a condemnation action.

a (p.365)

1. What type of ownership has definite rights of survivorship? a. Joint tenancy b. Tenancy in common c. Severalty d. All of the above

a (p.37)

17. Zoning is police power that controls the: a. use of property. b. ownership of property. c. taxing of property. d. none of the above.

a (p.377)

4. With regards to zoning, what does the symbol "R" usually designate? a. Residential areas b. Recreation areas c. Restaurant areas d. Restricted areas

a (p.378)

6. Property acquired by a husband and wife during marriage and is split 50/50 is called: a. community property. b. joint tenancy property. c. tenancy in common. d. all of the above.

a (p.39)

5. When do property taxes become a lien (before the fiscal year starts)? a. January 1 b. July 1 c. November 1 d. February 1

a (p.402)

13. The homeowner's property tax exemption will reduce an assessed valuation of $200,000 to: a. $193,000. b. $190,000. c. $175,000. d. $150,000.

a (p.406)

15. A property owner CANNOT deduct depreciation on what type of real property? a. Residential b. Income c. Trade d. Business

a (p.416)

9. For income tax purposes, you may deduct what portion of your house payment? a. Interest only b. Principal and interest c. Principal only d. All of the above

a (p.416)

2. With regards to depreciation of real property, which of the following is TRUE according to income tax laws? a. The land cannot be depreciated, but the improvements can. b. The land can be depreciated, but not the improvements. c. The land and improvements can be depreciated. d. Investment property cannot be depreciated.

a (p.417)

16. If you sell your house, how do you determine your gain or loss? a. Subtract adjusted cost basis from adjusted sale price b. Subtract only adjusted cost basis c. Subtract only adjusted price basis d. Subtract nothing

a (p.418)

19. A city tax on a real estate brokerage firm's gross receipts is called a: a. business license tax. b. business transfer tax. c. business stamp tax. d. business property tax.

a (p.422)

2. The group, through its leader, that regulates real estate transactions is called the: a. Department of Real Estate. b. NAR. c. CAR. d. Federal Government.

a (p.431)

17. Which of the following is TRUE concerning the salesperson's exam? a. 150 multiple choice question test b. 50% correct score to pass c. 3-hour exam period d. all of the above

a (p.436)

16. In a sale of an existing business (Business Opportunity) the real property is transferred: a. by deed. b. by bill of sale. c. through the Real Estate Commissioner's office. d. none of the above.

a (p.444)

19. "The right to use a property for a specific period of time" describes a: a. Iife estate. b. Iess-than-freehold estate c. freehold estate. d. all of the above.

b (p.27)

20. What differentiates an estate for years from an estate from period-to-period is that an estate for years: a. is a renewable agreement. b. is for a fixed period of time. c. can be terminated at any time. d. is from year-to-year.

b (p.27)

4. A special power of attorney allows the authorized person to: a. transact all of the principal's business. b. transact one specific act (sell your house). c. maintain a trust account for the principal. d. none of the above.

b (p.101)

19. If a contract is said to be "executory," it: a. is court ordered. b. has not yet been performed. c. has been discharged or performed. d. has not yet been signed.

b (p.116)

14. Any contract that can't be performed within one year from the date of signing: a. is illegal. b. must be in writing. c. is a failure to perform. d. is an example of duress.

b (p.121)

12. If one of the parties doesn't go through with a contract (nonperformance), it is called a(n): a. assignment. b. breach. c. consideration. d. operation of law.

b (p.124)

4. How many sections are in a township? a. 640 b. 36 c. 320 d. 6

b (p.15)

17. An exclusive right to occupy and use property on a temporary basis is known as a(n): a. estate in fee. b. Ieasehold. c. estate for life. d. estate in remainder.

b (p.155)

7. In a landlord/tenant situation, who would be called the lessor? a. Tenant b. Owner c. Licensee d. Any of the above

b (p.155)

14. Approximately how many acres are there in a lot 1/2 mile by 1/2 mile? a. 80 b. 160 c. 320 d. 5,280

b (p.17)

11. If a retail store rents for $5000 a month or 12% of the gross sales, the tenant has what type of lease? a. Gross lease b. Percentage lease c. Graduated lease d. Net lease

b (p.173)

13. Any escrow amendment must be signed by the: a. escrow agent, seller and buyer. b. both parties (seller and buyer). c. brokers, seller and buyer. d. escrow agent and brokers involved.

b (p.188)

7. From what document are escrow instructions usually drawn? a. The listing agreement b. The purchase agreement c. The transfer disclosure statement d. The agency relationship form

b (p.190)

11. Proration of prepaid taxes is: a. a debit to the seller. b. a credit to the seller. c. a credit to the buyer. d. negotiable between buyer and seller.

b (p.194)

3. The standard fire insurance policy insures against which perils? a. Fire only b. Fire and lightning c. Fire and smoke d. Lightning, fire, and smoke

b (p.196)

1. The practice of purchasing real estate using a small amount of your own money and a large portion of borrowed funds is known as: a. hypothecation. b. Ieverage. c. amortization. d. alienation.

b (p.217)

2. The basic instrument used to evidence an obligation or debt is a: a. trust deed. b. promissory note. c. Iand contract. d. mortgage.

b (p.219)

15. Which of the following is FALSE concerning the APR? a. It is expressed as an annual rate. b. It is expressed as a weekly rate. c. It is expressed as a percentage rate. d. It includes all credit costs.

b (p.247)

10. In a real estate transaction, the grantor is the: a. buyer. b. seller. c. renter. d. Iender.

b (p.28)

10. A broker who knowingly makes a statement he or she knows is false at the time, or who fails to disclose material facts, is guilty of: a. innocent misrepresentation. b. negligent misrepresentation. c. fraudulent misrepresentation. d. all of the above.

c (p.102)

18. The term "company dollar" refers to the company: a. advertising budget. b. money required to run an office. c. income after paying salespersons' commissions. d. income before paying salespersons' commissions.

c (p.106)

9. The United States Government Survey System has to do with: a. metes and bounds. b. zoning, taxing, and polling. c. sections and townships. d. lots, blocks, and tracts.

c (p.11)

13. A written contract between two parties is: a. express and unilateral. b. implied and bilateral. c. express and bilateral. d. implied and unilateral.

c (p.113)

7. Consideration can best be described as: a. money paid in a contract. b. good will. c. anything of value. d. not necessary in a valid contract.

c (p.120)

1. When an existing contract is replaced with an entirely new contract, it is called: a. rescission. b. assignment. c. novation. d. subordination.

c (p.123)

16. Of the following, which most nearly means the same thing as "rescind?" a. Arrest b. Reword c. Terminate d. Fulfill

c (p.125)

18. A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a: a. loan back-out clause. b. covenant. c. "subject to" provision or contingency clause. d. all of the above.

c (p.128)

11. A township contains: a. one square mile. b. six square miles. c. 36 square miles. d. 106 square miles.

c (p.13)

8. What is always true about a counter offer? a. It is made by the buyer. b. It is made by the seller. c. It terminates the previous offer. d. The previous offer is still valid.

c (p.137)

17. Which of the following is used to change the original terms of the purchase agreement? a. Covenant form b. Contingency form c. Counter offer form d. Substitution form

c (p.137-140)

6. A section consists of how many acres? a. 460 b. 320 c. 640 d. 230

c (p.14)

6. Which of the following is NOT a type of leasehold estate? a. Estate for years b. Estate at will c. Life estate d. Estate at sufferance

c (p.157)

13. The amount that a property should rent for in the current open market is called the: a. assignment rent. b. contract rent. c. economic rent. d. sublease rent.

c (p.165)

19. A transfer of an ENTIRE lease from one person to another is known as a(n): a. sublease. b. sandwich lease. c. assignment. d. provisional lease.

c (p.165)

8. The amount of rent stated in the rental agreement is the: a. economic rent. b. justifiable rent. c. contract rent. d. Iegal rent.

c (p.165)

10. When a tenant has lived on a property for less than one year, how many days notice is a landlord required to give to terminate a month-to-month lease? a. 90 days. b. 45 days. c. 30 days. d. No notice required.

c (p.167)

14. Which legal document allows a sheriff to physically evict a tenant? a. Unlawful detainer b. Quit notice c. Writ of possession d. All of the above

c (p.170)

4. Which of the following is FALSE concerning purchase agreement contracts? a. They must be accompanied by a deposit of money or other items of value. b. When acceptance is communicated to the buyer, it becomes a binding contract. c. An agent must give a copy to both buyer and seller. d. Promissory notes and post-dated checks are never acceptable as consideration.

d (p.127)

13. Ranges are 6-mile increments measured (and described) from the north-south meridian running: a. east. b. east and west. c. west. d. north and south.

d (p.13)

16. The lessee is the: a. owner or agent. b. grantor. c. landlord. d. tenant.

d (p.155)

1. A landlord's responsibilities include: a. protecting tenant's health and safety. b. obeying fair housing laws. c. giving 24 hours notice before entering rental. d. all of the above.

d (p.168)

2. A net lease is one in which the lessee pays for: a. property taxes. b. insurance. c. operating expenses. d. all of the above.

d (p.173)

20. One acre equals: a. 43,560 square feet. b. 4,840 square yards. c. neither a nor b. d. either a or b.

d (p.18)

9. If the time of closing is not specified, escrow will close: a. in 30 days. b. in 60 days. c. in 90 days. d. by mutual consent.

d (p.191)

17. Which party is usually responsible for sending notification of the sale of a single-family residence to the Internal Revenue Service (IRS)? a. Buyer b. Seller c. Broker d. Escrow officer

d (p.194)

4. A title company could make a title search by searching the records of the: a. county clerk's office. b. county recorder's office. c. federal lands office. d. all of the above.

d (p.198)

18. Items that are NOT included in the standard title insurance policy (CLTA) include: a. undisclosed grants or liens. b. mining claims. c. nonpublic record liens. d. all of the above.

d (p.200)

20. The only party who can require a specific title insurance company is the: a. broker. b. lender. c. seller. d. buyer.

d (p.205)

19. The 1% loan fee on FHA loans is usually paid by the: a. lender. b. broker. c. buyer. d. seller.

d (p.228)

3. Which of the following liens are NOT eliminated by a foreclosure sale? a. Federal tax liens b. State, county, or city assessments c. State, county or city taxes d. All of the above

d (p.240)

5. In California, a notice to vacate an "estate at will" (rental agreement) requires how many days notice? a. 15 b. 1 c. 29 d. 30

d (p.27)

19. Which of the following is TRUE concerning appraisals? They are: a. an opinion of value. b. for a specific property and as of a certain date. c. based on judgment and professional experience. d. all of the above.

d (p.303)

14. Which of the following is NOT one of the four essential elements of value? a. Demand b. Utility c. Scarcity d. Cost

d (p.305)

10. "Front footage" is the: a. depth of the property in the front. b. distance from the building to the street. c. front 40% of the property. d. property width in the front along the street.

d (p.314)

8. Sloping members of a roof used to support the roof boards and shingles are: a. eaves. b. headers. c. studs. d. rafters.

d (p.321)

3. Which of the following is NOT one of the basic appraisal principles? a. Progression b. Regression c. Change d. Accession

d (p.326)

1. The market data method (comparative approach) is best used for: a. houses. b. condominiums. c. vacant land. d. all of the above.

d (p.335)

7. The unit of comparison in the market data approach for a house would be: a. just lot size. b. lot and building size. c. location. d. the entire property.

d (p.335)

2. A woman CANNOT receive title to real property by: a. a gift deed. b. a patent. c. adverse possession. d. escheat.

d (p.34)

12. Depreciation can be: a. curable. b. incurable. c. loss in value due to any cause. d. all of the above.

d (p.342-344)

12. A subdivider is always required to give a copy of the Commissioner's Public Report about a project to a(n): a. prospective purchaser. b. interested realtor. c. fellow developer who requests one. d. all of the above.

d (p.365)

11. A purchaser must read a final public report and sign a receipt for it. How long must the subdivider keep this required receipt? a. For 90 days after issuance b. For one year c. For two years d. For three years

d (p.366)

3. Zoning laws are made to control the use of private property for the protection of the public's: a. health. b. safety. c. welfare. d. all of the above.

d (p.377)

6. The primary purpose of the master plan is to set forth existing and future matters concerning: a. seismic safety. b. districts. c. streets and highways. d. all of the above.

d (p.377)

16. Who can petition for zone changes? a. Owners b. Subdividers c. Government agencies d. All of the above

d (p.378)

8. The California Fair Employment and Housing Act is also known as the: a. Unruh Civil Rights Act. b. Open Housing Law. c. Federal Civil Rights Act of 1968. d. none of the above.

d (p.388)

12. If property taxes are NOT paid by June 30, the property: a. is sold to the state. b. starts a five year redemption period. c. remains undisturbed for five years. d. all of the above.

d (p.409)