quiz 2

Agent Sims needs one more new home sale this month to receive a bonus. She has one more that could possibly close and help her meet the goal. However, today she was informed the financing fell through for the buyer. Agent Sims has a lender friend that owes her a favor. She calls the lender, offers the friend one-quarter of her bonus if he will finance the buyers who were turned down. Which penal code section addresses this crime?

PC 639-639a

Broker Burns is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen-year loan. What is the maximum commission for Broker Burns?

Ten percent of the principal of the loan. (5% for 3 or less years)

What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments?

90 days after filing the lien; Three years

Which of the following is not a fourfold unity?

Vesting. The ones that are a fourfold unity (joint estate) include: Unity of Interest, Time, Title, and Possession

Appraiser Jones appraises one-to-four unit residential properties, and non-residential properties with a transaction value up to $250,000. What is this appraiser's level? How many hours of appraiser education were completed?

Certified Residential Real Estate Appraiser, 200 hours Certified Residential Licenses are issued to appraisers for one-to-four unit residential properties and non-residential properties with a transaction value up to $250,000. The applicant for this license must complete 200 hours of appraiser education.

John and Thom are purchasing their dream home. Due to the expiration of escrow instructions, the escrow has been terminated. Have they lost the contract on the house of their dreams?

No, the termination of an escrow does not terminate the associated contract. Under Cohen v. Shearer, the cancellation or termination of escrow may not also cancel a purchase contract.

Molly, a successful real estate salesperson, took some time off to stay at home with her first child. Days turned into weeks, weeks into months, months into years, until Molly's child was starting school. She decided she needed to head back to her profession and pick up where she left off. During her at-home time, Molly hadn't kept up with any CE requirements, nor had she renewed her license after its expiration almost three years earlier. Can Molly simply pick up where she left off?

No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.

What is the difference between Southern California and Northern California in reference to escrow accounts?

In Southern California, the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow. In Northern California, the instructions are usually not signed until one or two days before the close of escrow. In Southern California, escrow services are usually performed by independent escrow companies or financial institutions. In Northern California, the escrow services are usually performed by title insurance companies.

Which of the following is not an exemption to the federal fair housing laws concerning age and family status?

In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents. exempt: In a government-designated retirement housing. In residential dwellings of two to four units if one of the units is occupied by the owner. ——————- To be exempt from fair housing age and family status discrimination, a retirement community must have 80% of the dwellings with one person who is 55 years old or older with amenities for elderly residents.

Kim, Chris, and Beth are all partners in a cosmetics firm. Kim is leaving the partnership and wants to sell her shares of the business, including the property owned by the partnership, to Chris and Beth. The three partners own the property with the right of survivorship should one or more of them die. The remaining partners are not interested in buying Kim's interests. Kim has been unable to find a buyer for her share of the partnership. She has now resorted to asking the court to either sell her shares or sell the entire property. What form of concurrent ownership applies?

Joint Tenancy Joint tenancy occurs when two or more people have identical interests in the whole property with the same rights of possession and the right of surivorship.

Elliot has misrepresented himself by acting in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation?

Misdemeanor If an unlicensed person acts as a real estate salesperson, he or she will be guilty of a misdemeanor and will be penalized under the law.

Which of following are not considered trust funds?

Real Estate Commissions General Operating Funds Rents and Deposits from Broker-Owned Real Estate Trust funds are moneys belonging to others that are being held by a broker. Commissions, operating funds, and broker-owned rents and deposits are not funds belonging to others.

In studying for her real estate license, Elise is reading about police power. She is confused and doesn't understand why law enforcement would have any role in real estate sales, transactions, and regulations. What does the term "police power" refer to in real estate?

The constitutional right of the government to regulate private activity to promote the general safety, health, and welfare of society. Police power controls and directs land use regarding subdivisions. The government establishes regulations to protect the public's safety, health, and welfare. The right of the government to regulate private activity and to control land use is known as police power.

Along a non-navigable stream, does an owner own the land, the water, both, neither? What is this right?

The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right. Riparian rights cover non-navigable water ways and provide that the land owner owns the land to the center of the stream but not the water in the stream.

Carol is studying for the California real estate license examination. She knows she has to know all areas covered in the examination extremely well to pass. Which portion of the examination, approximately, makes up the largest portion of the test?

Practice of Real Estate and Mandated Disclosures

What are the types of legal life estates?

Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against UNSECURED debts for the party who did not sign for the loan.

Judy is the listing agent for the Brandts' home. In the inspection of their home, she discovers a few issues of concern. The basement is very damp and smells of mildew. Judy noticed what appeared to be mold on the interior walls of the lower level. She also saw what she believed to be their main line overflowing in the utility area of the basement. State the case that is responsible for broker's conducting a diligent inspection of properties they are listing or selling.

Easton v. Strassburger

XYZ Corporation is interested in a piece of land for development. They are selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of stock considered a form of financing?

It is actually considered a mortgage financing alternative. Because the purchase of the land is not being actually financed, for example by a loan, but is being taken care of by cash obtained from the sale of stock, then the sale of stock is considered a mortgage financing alternative.

Ken has just passed his licensing examination. However, he has been notified the DRE will not issue a full-term license. Ken is behind on child support payments and therefore has not complied with a court order to provide these payments. Will Ken ever be able to obtain his license?

Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150-day temporary period.

Agent Peters has qualified buyers to purchase a new home. Now he needs to qualify the property they wish to buy. He understands the human qualification process. Can you help Agent Peters with steps to qualify the property?

Type of property and area zoning Value range and condition