incorrect answers
Licensee Audrey was convicted of an antitrust violation. What is the maximum prison sentence she can serve
10 years
if somebody dies on the property how long do you have to disclose it for
3 years
In the residential mortgage market, charging borrowers more than ______ over market rate for interest is considered a predatory lending practice.
5%
If a landlord wants to increase the rent on a unit that's regulated by the Tenant Protection Act of 2019, what's the maximum allowed as an annual increase?
5% plus the cost of living The amount can never exceed 10%
Which of the following best describes a home equity line of credit?
A HELOC is similar to a home equity loan because the borrower uses the home's equity to secure a credit line. A HELOC isn't a lump-sum loan; it's a line of credit that continues as the borrower makes regular payments.
Many supplementary statutory disclosures will be included in the ____________ when provided by a third-party company.
A Natural Hazards Disclosure Statement
When real estate licensee Brian discovered that real estate licensee Arnold was using a "Choose Your Neighbor" letter to market a property without also listing the property in the MLS, in the local paper, or even putting a for sale sign in the yard, what charge could he bring against Arnold to the National Association of REALTORS®?
A charge of agreeing to discriminate by limiting access to the property
Shelly's flower business is blooming and it's time for her business to grow. She plans to take out a business loan to open two more shops on the north side of town. Which lending institution would she most likely go to for the loan?
A commercial bank
Which of the following defines the term 'lis pendens'?
A legal notice that a lawsuit is pending that affects the title of a property
Which of the following is the best definition of a restricted license?
A probationary license
Connie and John Fink, a married couple ages 69 and 72 respectively, want to stay in their home. The type of mortgage they're considering will allow the lender to make payments to the Finks for a certain period of time, while the lender gains corresponding ownership. Which type of mortgage are they considering?
A reverse mortgage is used most commonly by elderly people who want to tap into their home equity but also stay in their home.(RAM)
The Simpsons are buying a five-acre lot that was part of a much larger tract of acreage. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description?
A survey
Builders weren't allowed to develop new properties in Cityville for six months. This is likely because the city had enacted a ______.
A temporary halt on new building is a moratorium
What does ARM stand for
Adjustable Rate Mortgage
Zoe and Matt just purchased a home in the Shady Acres subdivision. While replacing some windows, they learned that all shutters facing the street must be either dark blue or dark green. This is an example of a(n) ______.
Aesthetic restrictions, such as color and type of siding, windows, fencing, and roof, are examples of deed restrictions.
Which of the following items would be considered a truth in advertising violation according to FTC guidelines?
An MLS listing shows a property as available even though the parties closed on the transaction three weeks ago.
What's a quiet title action?
An action to locate and notify all who may have some claim on the title, and determine the validity of all claims
Rancher Ross was thrilled to learn he could sell his property's mineral rights to a company that's looking for oil. He didn't realize he'd also created an ______, allowing them to bring drilling equipment onto his land.
An easement by implication is created by the parties' conduct. A mineral right is worthless unless the minerals can be accessed, so selling the right implies that Ross granted the oil company permission to bring drilling equipment onto his land.
In the rectangular survey system, what is a base line?
An east-west line used as a reference point
Which economic principle states that the value of property today's impacted by the current value of the total expected future benefits
Anticipation
Clark works for Acme Bank and asks for your assistance. He wants you to look at a property that's about to go into foreclosure and provide him with a report on its current marketability and an approximate market value. What's Clark most likely asking you to provide?
BPO
Which of these is a reason that the deed of trust is the standard security instrument used in California real estate transactions?
Because California foreclosure laws allow a statutory right of redemption of up to one year with a judicial foreclosure.
How does Farmer Mac support agricultural producers?
By creating a secondary market for agricultural loans, making it possible for agricultural lenders to fund more loans
How can a homeowner identify asbestos?
By hiring a certified asbestos consultant
A special flood hazard zone is one of the six natural hazards that must be disclosed. How are special flood hazard zones identified?
By the Federal Emergency Management Agency (FEMA)
Which federal act protects consumers from unwanted email solicitations
CAN-SPAM Act of 2003
James represented a client who believes James was guilty of misrepresentation. The client files a complaint against James. Which entity will investigate?
California DRE investigates complaints related to license law violations filed against California real estate licensees.
Francine's landlord never returned her security deposit after she moved, even though it was in writing that she would get it back within three weeks. How long after the deadline for returning the deposit does Francine have to sue, according to California's statute of limitations?
California's statute of limitations allows up to four years to sue for breach of a written contract. Oral agreements have a deadline of two years.
Which of the following professional certifications for property managers applies to an individual?
Certified Property Manager
In California, an estate at will is known as ______.
Chattel interest
With which entity must contractors who work in California obtain their licensure?
Contractor's State License Board
With the cost approach to value, what is the reproduction cost?
Cost to build an exact replica of the subject, with the same materials and deficiencies
Shemar owns a starter home a few miles outside of the city center, and he wants to deed it to his grandson, Tyler. According to the paperwork Shemar had drawn up, Tyler will own the property as long as he continues to pay the property taxes on time. After the second missed property tax payment, ownership would revert to Shemar. What did Shemar place on the deed?
Deed condition
Which one of the following is a common problem with roof shingles?
Discoloration or curling
Jameses aunt left her a bungalow on the outskirts of the city for many years. It was the place for family holidays gatherings, and James his sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets cleaned out which real property right allows her to sell the property.
Disposition
The ______ was enacted in 2010 to create stricter regulation of the financial services industry to reduce costs for consumers from (for instance), undisclosed kickbacks.
Dodd-Frank Wall Street Reform and Consumer Protection Act
You're working with a client, Donny, who's found his dream home in the neighborhood where he grew up. Unfortunately, the title search finds some issues and the title company refuses to issue a policy. Donny still wants to go forward with the purchase, and since he's paying cash, he doesn't have to worry about obstacles from a lender. In California, what is one thing that has to happen in this situation?
Donny must receive written notice that no title insurance will be provided.
When lead is present, what rule covers remodeling of the property?
E novation repair and painting (rrp)
Jackson holds a real estate broker license with an MLO endorsement. How many hours of continuing education must he complete each year to renew this endorsement?
Eight hours
What are equity REITs
Equity REITs invest in income-producing property, such as a retail shopping center. Undeveloped land isn't likely to produce income, and equity REITs don't invest in mortgage debt. That's the role of mortgage REITs.
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law?
Fair Housing Amendments Act of 1988
______ around pipes, vents, or other protrusions is a prime spot for roof damage or water leaks.
Flashing is a material that goes around pipes, vents, and other protrusions on a roof. Improper installation or damage to the flashing can lead to water leaks and other roof damage.
Which of the following is an acceptable ad based on Regulation Z?
Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. The interest rate is a trigger term, and therefore the APR, down payment, and terms of the mortgage must also be disclosed.
What type of natural hazard area is designated by local agencies?
High fire hazard area
Your seller client has excepted an offer on this home and you're on your way to closing. Which of these is not a tax aspect that you will explain to your client related to the transfer of property.
If you make a profit on the sale of this property, you'll have to pay capital gains tax when you file your income tax. The seller is an always going to owe capital gains on a profit from the sale of a home since the IRS allows an exclusion for an individual of 250,000 of gain
Which approach to value is typically used for investment property of two- to four-family units?
Income approach
If you fail to pay the cost of an audit within 60 days of the commission mailing you a notice of billing, which of the following actions would be outside of the commission's power?
Issue an arrest warrant
In California how has state law modified the way the deed of trust works
It creates a lien on the property in the borrower not the trustee holds legal title
Nicholas is a new licensee in an area where there are a lot of condominiums and dwellings geared toward tourism and seasonal residents. He tries to drum up business by sending faxes to dozens of condo complexes. Which federal act might he be violating?
Junk Fax Prevention Act of 2005
Contrary to federal fair housing laws, the state where Katrina lives includes age as a protected class. Which of these statements about this conflict is true?
Katrina must follow the more restrictive of federal or state law.
What is the danger of a seismic hazard area?
Landslides or liquefaction
When lead is present, what rule covers remodeling of the property?
Lead Renovation, Repair, and Painting (RRP) Rule
Which type of agent is an escrow officer
Limited agent
Which type of agent is an escrow officer?
Limited agent
Which of the following items directly influences real estate demand?
Loan availability Demand is directly influenced by factors such as employment levels and wages, interest rates, population changes, confidence in the market, and availability of loans.
Which legal description method uses compass headings and directions?
Metes and bounds
When using an amortization chart, you use the interest rate and the loan term to arrive at a factor, such as 5.17808. Now what do you do?
Multiply the number of thousands in the loan by the factor.
The ______ is a purpose-driven organization propelled by a passionate combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members.
National Association of Hispanic Real Estate Professionals (NAHREP)
Which is one of the benefits of the USDA loan program?
No down payment is required
Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission?
No, because Carol procured the buyer.
Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act?
No; commercial and business loans are exempt from RESPA requirements.
Which type of a buyer representation agreement allows a buyer to enter into agreements with multiple brokers and pay only the broker who found the property that was ultimately purchased by the buyer?
Non exclusive agency agreement
Which type of property is exempt from the Fair Housing Act?
Owner-occupied with no more than four units
Building codes, zoning laws, and environmental legislation are examples of which force that influences property value?
Political/governmental
What often comprises the sum total of a buyer's mortgage payment?
Principal, interest, taxes, and insurance
Tammy and Reginald bought a house with a gas line easement on the property. An easement like this one placed by the utility company is an example of a
Private land control
What factors directly affect an adjustable rate mortgage
Rate, index, and margin
When a California planning board is developing a general plan for an area, which of these elements is it NOT required to consider?
Ratio of business, industrial, and residential spaces
Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property?
Record the deed in his name.
Which type of survey system is also known as the public land survey system (PLSS)?
Rectangular survey
Since the FHA was established, it has taken strategic action to stabilize the mortgage market. Which of these items is one of the FHA's strategies?
Reduce lender risk by establishing borrower qualification standards
The Natural Hazard Disclosure statement is used for _
Residential transactions that also require the TDS
Because of the funding fee required for a VA loan, a borrower with no down payment funds saved should ______.
Roll the funding fee into the loan
Sam grants Steve a license to hunt deer on his property. Which of the following statements about the license is true?
Sam can revoke the license at any time.
Which of the following scenarios is considered a violation of FTC advertising rules?
Sarah has just started her career as a solo agent and decides to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" Because she is not part of a team
When selling real estate, the seller has a responsibility to disclose all material facts about the property, even those he __________.
Should know about
In a California real estate transaction, which of these individuals would require a license to act as the escrow agent
Since Zach, Lulu and Nadia are all exempt based on the fact that they're already representing principles in the transaction, only Barbara would need to have an escrow agents license to fill that role in this transaction
Population growth, marriage rates and attitudes toward education are examples of which force that influence property value
Social
In which type of common interest subdivision are the owner's shareholders in a corporation that owns the property?
Stock cooperative project
What is one way that the FHA has helped to stabilize and improve the mortgage market?
The FHA established a requirement for appraisers to be state licensed or certified in order to appraise property for an FHA loan, creating a higher standard for appraisals that reduces the risk for borrowers and lenders
Which act prohibits housing financial discrimination on the basis of protected class make-up or location of a property?
The Holden Act
Which act prohibits housing financial discrimination on the basis of protected class make-up or location of a property?
The Holden act
Carla's landlord raised her rent 12% over the previous year's rental rate and gave her 45 days' notice. Was this legal under California's Tenant Protection Act?
The Tenant Protection Act of 2019 prohibits annual rental increases of more than 5% plus the cost of living, and in no case more than 10%.
Malcolm purchased an old convenience store, and after renovations will open a small vegan grocery. He paid $517,000, of which $417,000 was for the building, and renovations cost him $107,000. What does the amount $524,000 represent?
The acquisition cost of an investment property plus any improvements or renovations is the investment's depreciable basis.
Candace and Phil Tolleson listed their home for sale with Trent Richards the broker for Richards homes. Sadly Trent became incapacitated due to a car accident. What's the status of the listing agreement
The agreement terminates by operation of law
Data regarding Mello-Roos fees disclosed to a prospective buyer should include the amount of the fees as well as _______.
The assessment's purpose
How is a loan assumption documented?
The buyer and seller both sign an assumption agreement.
A client terminates a listing agreement before its expiration date. What happens now?
The client may owe a commission anyway
Licensee, Kenny maze, neighbor buzz wants to sell his house but doesn't want to sign an agency agreement. Can you may works with Buzz to list and show the property and negotiate offers after the property sells bus discovers that Kenny they didn't present all offers to him and he sues Kenny, Matt, Kenny, Maggie claims that because she didn't have an agency agreement with Buzz. She wasn't required to perform all fiduciary duties. What legal principle applies here.
The doctrine of estoppel keeps Kenny Mae from disavowing the agency relationship because she provided agency tasks for buzz
What's the best definition of land?
The earths surface, extending downward to the center of the Earth, and upper to infinity, including permanently attached natural objects
The FHA has helped to significantly improve the mortgage market through ______.
The introduction of the long-term amortized loan
When a mortgage is used as a security instrument, who holds the mortgage and the promissory note?
The lender holds the mortgage and the note.
When a mortgage is used as a security instrument who holds the mortgage and the promissory note
The lender holds the mortgage and the note. The note in the mortgage are the lenders leverage to foreclose in the event of default
When Lori and Nick sold their home, they were required to inform potential buyers that the property was part of a Mello-Roos district. Why?
The new owners would be subject to a property tax that is not readily discoverable.
A tenant has just voluntarily moved out of a rental unit in a multi-unit apartment building in a California city without local rent control ordinances. How much can the owner raise the rent before signing a lease with a new tenant?
The owner may raise the rate to any desired level.
Daisy is a buyer who made an offer for an older house on three acres. Daisy reviewed the seller disclosures and ordered a professional home inspection. Based on the results of the inspection, which showed a number of latent defects that made Daisy uncomfortable, she decided to exercise her contractual right to cancel the agreement. What's NOT true about this situation?
The seller is obligated to repair the defects identified in the inspection report before accepting any other offer.
Which of the following is true about special purpose landfills?
They contain hazardous waste.
In what way other than actual fire does owning property in a designated forest fire hazard area affect homeowners
They may not receive fire protection services.
Daisy and her kids loved their new pool, but Daisy wasn't so happy when she received notice that the general contractor who poured the concrete had placed a lien on her home. Daisy went through her records and discovered that she had never paid the general contractor. What's true about this situation?
This is a legal mechanic's lien, because Daisy failed to pay her general contractor.
Which category of appraiser must be supervised by a certified appraiser and can assist on any appraisals their supervisors can perform
Training license
The ______ can offer direct loans to farmers and ranchers. The loans are funded by congressional appropriation.
USDA farm service agency
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which element is applied first?
When using the sales comparison approach, appraisers consider elements in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics.
Marcos, anxious to buy a home and is willing to waive the inspection contingency. Do you still need to provide him with the buyers inspection adversity
Yes, because Marcos should still be advise of the reasons inspections are needed
Sellers Matt and Kyle are fed up with their obnoxious neighbor, who insists on doing home construction work with power tools late at night, and having loud arguments with his family during the day. Does the TDS require them to disclose this type of nuisance?
Yes, they can record such issues in the seller's information section of the TDS
Paul and Blake are touring an open house when they notice that the glass on the sliding patio door is very foggy. Is this a concern, and if so, why?
Yes, this is a sign of a leaky seal which reduces efficiency.
One reason that minority groups tend to be homeowners less frequently than white Americans is due to a ______.
Younger median age
Jennifer is the owner of the single-family residence in which she resides. How long can she take to depreciate her property?
Zero years (personal residences cannot be depreciated)
what is the MLS
a data base of real estate information
charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of?
a land contract
Which economic principle states that the value of property today is impacted by the current value of the total expected future benefits?
anticipation
A property manager has just started working for a new property owner, who owns a small apartment building the property manager learns that construction of a large apartment complex has been approved one block away from his clients apartment building what type of analysis would include this information?
competitive analysis
When a city is determining zones, what should be followed?
comprehensive plan
Which of the following describes a universal agent?
conservator
When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign?
exclusive right to sell It's easy to confuse these types of agency. With exclusive agency, the seller retains the right to find a buyer and avoid paying the commission. Exclusive right to sell agreements prohibit the seller from selling the property without paying the listing agent.
Penalties for antitrust violation may include
fine and or prison sentence
What's considered a critical source of home financing in minority communities?
government back loans
What phrase is or words are required on a deed and are considered an "act of conveyance?"
grant and convey
Shana received a devise from her mother. What might this be?
her mothers farm
With this common loan type, the home is used as collateral and the loan creates a second mortgage if the first mortgage hasn't been paid off.
home equity
Which physical characteristic of land addresses the concept that the geographic location of a piece of land is fixed and can never be changed?
immobility
How often should accounting records for trust fund accounts be reconciled?
monthly
UETA supports the use of electronic documents and leaves the decision whether to use an electronic medium for agreements up to the
parties
If a lien is released because the tax debt has been satisfied prior to further action being taken, the property owner will receive a certificate of
redemption
Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______.
restrictive covennats
On which principle of value is the sales comparison approach based
substitution
On which principle of value is the sales comparison approach based?
substitution
Which type of pest may make mud tubes—tunnels that run along the walls—or shed tiny wings?
termites
Which one of the following is a true statement about radon testing?
test kits are available for purchase
jerry's client Carla has successfully closed on the purchase of a home. The deed shows she's taken sole ownership of the property. Which of these actions is necessary before the escrow agent can have the deed recorded?
the grantors signature must be acknowledged
Rachel is talking with a co-worker, Shawna, about homebuying. Rachel shares some general market trends and talks about the impact of rising interest rates. She notes that the listing price of Shawna's neighbor's house seems lower than it should be, and then they talk about the importance of getting pre-approved for a loan early in the process. Which of her statements might have created an implied agency situation?
the listing price of the neighbors property
What type of deed are you likely to receive if you purchase a California property with cash at a foreclosure auction?
trustees deed upon sale
