Legal Aspects of Real Estate Final Exam
In contract language, what means to do what one agreed to do? Action Performance Exchange Attainment
Performance
What type of property is ownership of anything that is not real estate and the rights associated with owning the item? An emblement Real property A datum Personal property
Personal property
What describes the right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public? Law of the land Eminent domain Police power Right of rescission
Police power
What gives a government entity the ability to fulfill its responsibility to provide for the health, safety, and welfare of the public? Official enforcement Police power Jurisdiction Civil courts
Police power
What is the conversion of real property to personal property by detaching it from the real estate called? Assignment Severance Fasten Allocate
Severance
Which of the following lien types is subject to the homestead law? Child Support Debts Extensions of Credit on the Homestead Signature Loan Debts Tax Debts on the Homestead
Signature Loan Debts
Jennifer and Mark's home has had a lien placed on it by the state for failure to pay state income tax shortfalls. What kind of lien is it? General Involuntary Specific Voluntary General Voluntary Specific Involuntary
Specific Involuntary
What type of rights apply to the real estate contained within the surface boundaries of the parcel? Littoral rights Water rights Encumbrance rights Surface rights
Surface rights
What is a tax on the retail sale of tangible personal property in California called? The California Public Use Tax An assessment The California Sales and Use Tax Real Property Tax
The California Sales and Use Tax
What governs the making, interpretation, and enforcement of leases? The Residential Tenant Act Landlord Tenant Law The Law of Possession The Law of Contracts
The Law of Contracts
In a CAR Buyer Representation Agreement, who agrees to pay for reports, inspections, and meetings arranged by the broker on the buyer's behalf? The broker The buyer The seller The lender
The buyer
What does not occur during a pre-trial conference? A trial plan is prepared. Attorneys and parties will revisit the financial costs and unpleasantness of going to trial. Parties may or may not consider settlement. The court enters a pre-trial order.
The court enters a pre-trial order.
Who is responsible for maintaining a residential property in a condition fit for human occupancy? The city The tenant The lessee The landlord
The landlord
What needs to happen to an offer in order for it to become a contract? The offer must be delivered. The offer must be received. The offer must be accepted. The counteroffer must be made.
The offer must be accepted.
What did the federal government develop to simplify and standardize property descriptions as a replacement for the cumbersome and often inaccurate metes and bounds method? The lot and block method The rectangular survey system The recorded plat method The public survey system
The rectangular survey system
What describes the right of a mortgagor who has defaulted on a note to redeem or get back the title to the property by paying off the entire mortgage note before the foreclosure sale? The right of redemption The right of rescission The right of action The right of payment
The right of redemption
What term means the right to mortgage a property as collateral for debt? The right to exclude The right to encumber The right to finance The right to rescind
The right to encumber
When there is no buyer representation agreement in place, who actually represents a seller in a real estate transaction? The licensee The listing broker The selling broker An escrow officer
The selling broker
Which section of a Closing Disclosure includes names and addresses for both the borrowers and sellers and the lender's name? The closing information The loan information The summary information The transaction information
The transaction information
What is the best way to end agency? Let the time limitation expire Cancellation To close the deal Rescission
To close the deal
What refers to a method for protecting land by transferring the "rights to develop" from one area and giving them to another? Land acquisition transfer Fee simple development Transfer of development rights Right of refusal
Transfer of development rights
What describes money or other things of value that are received by the broker on the part of another person? Endowment Investment capital Escrow Trust funds
Trust funds
Which federal court reviews IRS rulings? U.S. Tax Court Claims Court U.S. Bankruptcy Court Appeals Court
U.S. Tax Court
If both parties agree to terminate a lease it is called what? Term expiration Voluntary agreement Condemnation Abandonment
Voluntary agreement
A written employment agreement between a broker and a licensee must be signed by the broker. the real estate board. both parties. the licensee.
both parties.
Real estate contracts aren't enforceable unless the parties have exchanged something of value called commerce. consideration. interchange. transposition.
consideration
When the transfer of title to real estate uses a written instrument, the transfer is called acknowledgement. conveyance. consideration. habendum.
conveyance
The three unique characteristics of land are immobility, indestructibility, and production. heterogeneity. function. cultivation.
heterogeneity.
Tangible property is physical, visible, and abstract. conceptual. material. imperceptible.
material
In a civil case, the party bringing suit for injury is called the plaintiff. attorney. defendant. judge.
plaintiff.
The metes and bounds description always identifies an enclosed area by starting at an origination point called point of beginning. base point. base point. conception.
point of beginning.
Escheat occurs when the local government changes zoning. property of a deceased person with no heir is given to the state. a public utility company takes private property for public use. private property is seized by the state for non-payment.
property of a deceased person with no heir is given to the state.
If a contingency was not met by the date outlined in the contingency, the contract is abdicated. revised. waived. void.
void
Government entities can create easements through the exercise of eminent domain, which is when government agents reside in properties of their choice. when the government condemns a portion of a property and causes it to be sold "for the greater good. when easements reach the 5 year statutory period. when the government helps owners keep their property.
when the government condemns a portion of a property and causes it to be sold "for the greater good.
The maximum liability of the Recovery Account in any one transaction is how much? $40,000.00 $10,000.00 $15,000.00 $50,000.00
$50,000.00
How many years are attachment liens valid from the date of the writ of attachment? 4 years 7 years 5 years 3 years
3 years
How many days does a seller have after acceptance, if not specified, to disclose if the property is a condominium or planned development? 10 7 14 21
7
What refers to money that the buyer or seller needs to pay at closing? A fee A credit A settlement A debit
A debit
What consists of both common law and statutory rules that govern the creation, interpretation, and enforcement of contracts? Common law Statute law Contract law Civil law
Contract law
Which of these is not a type of leasehold estate? Estate for Years Estate at Will Estate at Sufferance Estate at Conveyance
Estate at Conveyance
Which fiduciary act requires that an agent act in good faith and obey the principal's directions as outlined in the contract? Care Obedience Loyalty Accountability
Obedience
What are described as the legal agreements that underlie the transfer and financing of real estate, as well as the real estate brokerage business? Property contracts Real estate contracts Legal contracts Performance agreements
Real estate contracts
What term describes the act of restricting the number of loans in certain areas of a community because its racial or ethnic makeup? Steering Redlining Blockbusting Filtering
Redlining
All real estate must be performed under the supervision of a judge. an attorney. an express agency. a broker.
a broker
A customer is not a client until disclosures are signed. a representation agreement is signed. it is mutually and orally agreed upon. the broker signs an agency form.
a representation agreement is signed.
Property rights that are said "to run with the land" and includes things such as air rights, surface rights and subsurface rights are called fixtures. emblements. appurtenances. chattels.
appurtenances.
A lien is put on a property by creditors. owners. lessees. sellers.
creditors.
Interest is always paid in advance. by the lender. in arrears. before closing.
in arrears
The rules of the Bulk Sales Act apply when a business is sold that involves creditors. appurtenances. assets. inventory.
inventory.
Title VIII of the Civil Rights Act of 1968 is also known as the Equal Opportunity Act. the Fair Housing Act. the Familial Status Act. the Protected Classes Act.
the Fair Housing Act.
An agent who ultimately caused a buyer to purchase a home and earned the commission is called a subagent. a transaction broker. a dual agent. the procuring cause agent.
the procuring cause agent.
The law enforces promises through monitoring our daily activities. the use of contracts. the preservation of order. setting standards.
the use of contracts.
California law requires a lien filer to be a licensed contractor unless the homeowner knows the worker was unlicensed and the work performed was less than how much? $700.00 $1,000.00 $500.00 $1,200.00
$500.00
Within how long of an alleged violation does a person have to file a complaint with the Commissioner regarding the actions of a real estate licensee in California? 1 year 3 years 6 months 18 months
3 years
A candidate for an original real estate salesperson license must qualify for and pass a written examination with a score of 60% or greater. 65% or greater. 70% or greater. 50% or greater.
70% or greater.
How many days notice, before the date of increase, must be given to homeowners in a mobile home lease agreement, regarding the increase of rent? 30 days 90 days 45 days 60 days
90 days
What clause, in a non-judicial foreclosure, enables a mortgagee to order a public sale without a court decree? A due-on-sale clause A "power of sale" clause A subordination clause A release clause
A "power of sale" clause
What type of contingency gives the buyer time to apply for and obtain financing? A Preliminary Title Contingency A Buyer Financing Contingency A Sale of Buyer's Property Contingency A Home Inspection Contingency
A Buyer Financing Contingency
What informational handout should the listing agent provide the seller before a seller signs a listing agreement with the agent? A Real Estate Agent Agreement Form A Property Brokerage Form A Listing Assignment A Disclosure Regarding Real Estate Agency Relationships
A Disclosure Regarding Real Estate Agency Relationships
What does California law require the delivery of, before the transfer of title, on homes built before January 1, 1960, that are one-to-four units? A Lead-based Paint Disclosure Notice Regarding the Availability of Title Insurance A Homeowner's Guide to Earthquake Safety A Disclosure of Death on Property
A Homeowner's Guide to Earthquake Safety
What written disclosure is required when a property is located within one mile of an area previously used for military training? A Live Ammunition Disclosure A Military Ordinance Location Disclosure A Service Training Disclosure A Governmental Risk Disclosure
A Military Ordinance Location Disclosure
What must a seller or listing agent complete if there is actual knowledge of a property being in a natural hazard zone? An Energy Conservation Disclosure A Right to Home Inspection Disclosure An Environmental Disclosure Statement A Natural Hazards Disclosure Statement
A Natural Hazards Disclosure Statement
What is a form that describes the physical condition of a property, including the presence and working condition of appliances and other features, any defects or issues with the physical property, and any possible encroachments and easements? A Home Inspection Form A Real Estate Transfer Disclosure Statement (TDS) A Property Inspection Report A survey
A Real Estate Transfer Disclosure Statement (TDS)
What type of contract is one in which both parties promise to perform their respective parts of an agreement in exchange for performance by the other party? An express contract A unilateral contract An implied contract A bilateral contract
A bilateral contract
What is described as the written instrument that passes the title to the personal property? A title receipt A bill of sale A balance sheet A transaction record
A bill of sale
What type of mortgage loan covers more than one piece of property? A bridge loan A blanket loan An open-end loan A multiple property loan
A blanket loan
What type of survey locates and verifies all property corners and boundaries, shows the location of all improvements in relation to the property lines, includes an area of the overall property and shows any existing encroachments? A location survey A construction survey A boundary survey A site planning survey
A boundary survey
What is a legal written instrument used by an owner to transfer title to real estate voluntarily to another party? A declaration Fee simple A deed An easement
A deed
What conveys title rights in a property over to an assigned trustee? A right of assignment A subordination clause A deed of trust A release of deed
A deed of trust
What clause in a standard mortgage states that if the borrower repays the debt when due, the words "of grant" are void, the mortgage is canceled, and the title is given back to the borrower? An acceleration clause A seisen clause A defeasance clause A granting clause
A defeasance clause
What clause talks about how a landlord is leasing a property and a tenant is taking possession of a property? A possession clause A leasehold clause A demising clause A regulation clause
A demising clause
What acceleration clause requires the borrower to pay off the entire mortgage debt when the property is sold? A subordination clause A "subject to" clause A due-on-sale clause A "power of sale" clause
A due-on-sale clause
What action could a seller take if he or she cannot make a decision regarding an offer? An acceptance A rejection A counteroffer A failure to act
A failure to act
What type of lien exists when the IRS sends a taxpayer a bill entitled "Notice for Demand and Payment" and the bill is either ignored or not paid in full? An equitable lien A statutory lien A general lien A federal lien
A federal lien
What clause in a sales contract states under what conditions the buyer can cancel the contract without default and receive a refund of the earnest money? A financing contingency clause An earnest money deposit clause An escrow clause A closing clause
A financing contingency clause
What type of deed offers the greatest protection of any deed? A grant deed A special warranty deed A full covenant and warranty deed A quitclaim deed
A full covenant and warranty deed
What type of lien occurs when someone loses a lawsuit and a judgment is placed against real property to pay for the judgment? A real estate tax lien A franchise lien A judgment lien A state inheritance tax lien
A judgment lien
What type of foreclosure allows a property to be sold by court order after sufficient public notice? A strict foreclosure A judicial foreclosure A non-judicial foreclosure A specific foreclosure
A judicial foreclosure
What type of clause requires a borrower to pay a penalty or late charge for any payments that are considered to be late? A graduated payment clause A late payment penalty clause A lender clause A pay off clause
A late payment penalty clause
What is an oral or written agreement that creates and governs, by express or implied terms, a landlord-tenant relationship? An agency A sales contract A listing A lease
A lease
Once a mechanic's lien has been paid, what must be recorded to show the lien has been discharged and satisfied? A deficiency judgment Equitable title An expense report A lien release
A lien release
What type of prepayment clause prohibits the borrower from paying the mortgage loan in full before a specific date? A lienholder clause A lender clause A due-on-sale clause A lock-in clause
A lock-in clause
For how long can a California income tax lien be in force? A maximum of 10 years A maximum of 30 years A maximum of 20 years A maximum of 5 years
A maximum of 30 years
What type of lien is also known as a construction lien? A vendor's lien A federal lien A mechanic's lien An involuntary lien
A mechanic's lien
What involves the transfer of an interest in land as security for a loan or other obligation? A deed A mortgage A transaction A lease
A mortgage
What describes a lease where the rent is based on a percentage of the monthly or annual gross sales made on the site? A proprietary lease An index lease A percentage lease A net lease
A percentage lease
What is a map, drawn to scale, of the division of land? A survey A plat A chart A plan
A plat
What type of lease conveys a leasehold interest to an owner of a cooperative? A land lease A percentage lease An index lease A proprietary lease
A proprietary lease
What type of deed transfers real and potential interests in a property, whether an interest is known to exist or not? A limited deed A special warranty deed A fiduciary deed A quitclaim deed
A quitclaim deed
When a seller receives an offer on his or her property, what action would free him or her to consider other offers and also frees the buyer to consider other properties or to make another offer on the same property? A counteroffer A rejection An acceptance A referral
A rejection
What describes money that a tenant deposits with the owner, in advance of possession, for the repair of any damages for which the tenant is responsible? A lease deposit A partial payment A security deposit An escrow deposit
A security deposit
What type of contingency can be put in place when a buyer has already accepted an offer on their current home, but has not closed? A kick-out clause A settlement contingency A financing contingency A sale and settlement contingency
A settlement contingency
Which one of these parties do not need to be licensed as real estate sales persons or brokers? A buyer's agent A person who solicits real estate listings A short term vacation rental agent A seller's agent
A short term vacation rental agent
What puts a mechanic's lien on the balance of funds from a sale? A lien release A stop notice A notice of responsibility A notice of cessation
A special assessment
What type of superior lien does local government entities place against certain properties to ensure payment for local improvement projects such as new roads, schools, sewers or libraries? An ad valorem tax lien A special assessment lien A mechanic's lien A judgment lien
A special assessment lien
In what type of deed does the grantor warrant only against title defects or encumbrances not noted on the deed that may have occurred during the grantor's period of ownership or trusteeship? An ownership deed A special warranty deed A quitclaim deed A special purpose deed
A special warranty deed
What should every contingency have so that there is "reasonable time" for the fulfillment of the contingency? Limitations of liability Selling restrictions A specific deadline A clear description
A specific deadline
What describes a report that is filled out by the landlord stating the condition of a property upon the tenant's moving in and moving out of the property? An inspection report A housing report A residential property form A statement of property condition
A statement of property condition
What describes an interest-only note, whereby the borrower agrees to pay the interest periodically and to pay the entire principal when the note comes due? An installment note A periodic note A rate note A straight note
A straight note
In what type of agency does a person or court give an agent full control over someone's life and belongings to meet a specific need? A general agency A specific agency A universal agency A special agency
A universal agency
What type of special title insurance policy is used when a property is being purchased through a land sales contract, purchase money mortgage, or purchase money trust deed? A leaseholder policy An early issue endorsement A vendee policy An oil and gas interest policy
A vendee policy
What type of lien secures a purchase money mortgage, a seller's loan to a buyer to finance the sale of property? A federal lien An involuntary lien A vendor's lien A judgment lien
A vendor's lien
What describes a guarantee that a property meets the minimum health and housing codes? A home warranty A tenancy guarantee A home service warranty A warranty of habitability
A warranty of habitability
What is the most common type of will used in California and is a formally written document usually prepared by an attorney? A holographic will An approved will A witnessed will A nuncupative will
A witnessed will
What type of mortgage loan allows a borrower who has an existing loan to get another loan from a second lender without paying off the first loan? A wraparound mortgage A swing loan A bridge loan A construction mortgage
A wraparound mortgage
What homestead law term describes the discontinued use of property? Discarded Uninhabited Revoked Abandoned
Abandoned
What covenant in a deed of trust document states that if the borrower violates any of the covenants of the contract, the beneficiary may call for payment of the loan in full and the trustee may sell the property after he or she has filed all the proper notices? Reconveyance Acceleration Assignment of rents Expenditures
Acceleration
Which fiduciary duty requires an agent to be accountable for all monies, documents, and other property he or she receives from the principal? Loyalty Disclosure of notice Care Accountability
Accountability
If a licensee lists a home in a predominantly minority neighborhood, how can he or she avoid steering when advertising in newspapers? Advertise the property as multi-cultural. Advertise in a city-wide newspaper. Have the Equal Opportunity slogan in the advertising. Advertise in the minority neighborhood's newspaper.
Advertise in a city-wide newspaper.
What term refers to a relationship established between a principal and a real estate agent? Fiduciary Brokerage agreement Agency Ministerial
Agency
Which offers is the broker required to present to the seller? The offers that are within 20% of asking price Negotiable offers All offers Prequalified offers
All offers
Which one of these contracts is a unilateral agreement? An Independent Contractor Agreement A Listing Agreement An Option to Purchase A Buyer Representation Agreement
An Option to Purchase
What describes someone who enters, occupies, and uses another's property without the knowledge or consent of the owner, or with the knowledge of an owner who fails to take any action over a statutory period of time? A settler An adverse possessor A squatter An illegal tenant
An adverse possessor
What type of contingency protects the buyer by ensuring that the property is valued at a price that is close to what is being offered by the buyer? A financing contingency An appraisal contingency A kick-out clause A house sale contingency
An appraisal contingency
What is a non financial encumbrance that restricts the use of a property itself and enables others to use the property, regardless of the owner's desires? A lien A profit encumbrance An easement A restriction
An easement
What is the term used to describe an interest in and a right to real property that limits the legal owner's freehold interest? An encroachment An encumbrance A deed restriction A license
An encumbrance
What type of an agreement gives a broker the right to exclusively search for a home for a buyer and represent the buyer in the purchase? A nonexclusive representation agreement A residential purchase agreement An exclusive buyer representation agreement An open listing
An exclusive buyer representation agreement
What type of contract is one that has been fully performed and fulfilled? An open contract An executory contract An executed contract An indefinite contract
An executed contract
What type of contract describes a sales contract prior to closing? An executed contract An implied contract An express contract An executory contract
An executory contract
What type of contract is one in which all the terms and conditions of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing? An executed contract An implied contract An express contract A bilateral contract
An express contract
What type of contract is one that cannot be fully understood because important terms are missing? An indefinite contract An inferred contract An ambiguous contract A presumed contract
An indefinite contract
What type of contingency gives the buyer the right to have the home inspected within a specified period of time? A house sale contingency A specified contingency An inspection contingency An appraised contingency
An inspection contingency
What is a lease provision that gives the tenant the right to extend the lease for an additional period of time and sets forth the terms for the renewed lease? An extension An option to renew A recommence clause A time revision
An option to renew
What agreement authorizes a broker to represent an owner or landlord? An agency agreement An owner listing A tenant representation agreement A transaction agreement
An owner listing
What clause in a CAR Residential Purchase Agreement states the agreement is contingent on a written appraisal of the property at no less than the purchase price? Verification of Loan Payment Appraisal Contingency and Removal All Cash Offer Buyer Deposit with Agent
Appraisal Contingency and Removal
What section under the Dispute Resolution provision of a CAR Residential Purchase Agreement states that if mediation does not solve a dispute, the parties agree to use a neutral, binding arbitration to decide the matter? Additional Mediation and Arbitration Terms Mediation Conflict Resolution Arbitration and Disputes
Arbitration and Disputes
Which part of a Loan Disclosure indicates whether or not the lender will allow a loan assumption on a future sale or transfer? Demand feature Assumption Escrow Account Other disclosures
Assumption
What term describes knowledge of a fact that a person could have or should have obtained? Hindsight Occurrence Realization Constructive notice
Constructive notice
What term describes the process in which a disinterested third party holds all money and documents relating to a transaction until all terms and conditions have been satisfied? Transference Recording Escrow Modification
Escrow
What provision in a CAR Exclusive Buyer Representation Agreement allows the broker to provide the agreement to an escrow agent, and the buyer authorizes buyer's funds from escrow to pay the agreed upon compensation? Timing of Compensation Payments and Credits Escrow Assignment The Broker Right to Compensate
Escrow Assignment
What describes written authorization and instructions for how an escrow agent will perform in a transaction? Escrow analysis Performance instructions Agent authorization Escrow instructions
Escrow instructions
What prevents a person from claiming a right or interest that is inconsistent with the person's previous statements or acts? Title Entitlement Conveyance Estoppel
Estoppel
If a seller lists his or her property at a particular broker's office, who has the job of obtaining the best possible transaction for the seller? The broker Everyone in the office The licensee The listing agent
Everyone in the office
What section, in a CA residential listing agreement, states that the seller is granting the broker the exclusive and irrevocable right to sell or exchange the property described? Listing terms Items excluded and included Compensation to broker Exclusive right to sell
Exclusive right to sell
What refers to the right a tenant has to exclusively have possession of a rental property? Possessor rights Tenancy rights Exclusive use Specific use
Exclusive use
What does an agent demonstrate by being honest as he or she can be with a customer while at the same time attempting to get his or her client the best transaction possible? Honesty Accountability Fairness Care
Fairness
What term describes duties a broker has to a client to meet the needs of the client above the needs of everyone else, including him or herself? Fiduciary duties Representation duties Client duties Disclosure duties
Fiduciary duties
Which of the following is NOT an important source of law in the United States? International law United States Constitution Local ordinances Rulings of federal, state, and local agencies
International Law
What section in a CAR Exclusive Buyer Representation Agreement states that the buyer understands that properties may be marketed online? Definition of Buyer Internet Advertising; Internet Blogs; Social Media Escrow Assignment Broker Right to Compensation
Internet Advertising; Internet Blogs; Social Media
What section in a CAR Residential Purchase Agreement includes information regarding the first, second, VA or FHA loans? Deposit Financing Loans Balance of Down Payment
Loans
Which section in a CAR Residential Purchase Agreement provides information regarding registered sex offenders and includes a website for the buyer to search? Buyer's Investigation of Property Megan's Law Database Disclosure Natural and Environmental Hazards Statutory and Other Disclosures
Megan's Law Database Disclosure
When can licensees recommend specific individuals or companies to their clients and accept a referral fee? When there is a dual agency created Never When the licensee is also acting as an escrow agent When the licensee is acting as a transaction broker
Never
What type of licensing does a person need who is acting on his or her own behalf with respect to his or her own property? A real estate license A broker license An independent contractor license No license required
No license required
What section in a CAR Exclusive Buyer Representation Agreement states that the terms of an offer a buyer makes to a seller may be shared to others by the seller and/or listing agent? Confirmation Other Potential Buyers Broker Authorization Non Confidentiality of Offers
Non Confidentiality of Offers
What term describes when a buyer has the right to contract with other brokers for representation in the purchase of a property during the term of the agreement? Exclusive Exclusion Agency Non-exclusive
Non-exclusive
What type of performance describes when a defendant has failed to complete performance of an agreement according to its terms and where the plaintiff may recover damages to compensate him or her to the same extent as though the contract had been completely performed? Sufficient performance Partial performance Defective performance Residual performance
Partial performance
What provision, in an independent contractor agreement, includes the name of the broker and licensed real estate agent participating in the employment contract and the term of the agreement? Independent contractor relationship Obligations and duties Associates authority Parties and terms
Parties and terms
All of the following are types of monetary damages EXCEPT restitution. passive. compensatory. nominal.
Passive
What term refers to the person who hires a real estate agent and delegates to the agent the responsibility of representing his or her interests? Consumer Principal Customer Purchaser
Principal
What is a court proceeding that generally settles a descendant's estate, whether the person has died testate or intestate? Probate Deposition Codicil Action
Probate
Which section of a Closing Disclosure shows the actual payments the borrower will make for principal and interest and mortgage insurance, an estimated amount for the escrow payment, and the total estimated monthly mortgage payment? Loan terms Calculations Projected payments Descriptions
Projected payments
Under Acceptance of Offer in a CAR Residential Purchase Agreement, which section states that brokers are not parties to the agreement? Escrow Holder Acknowledgement Presentation of Offer Non-participating Parties Real Estate Brokers
Real Estate Brokers
What gives a person the chance to channel his or her private savings into real estate investments for which other financing cannot be obtained or is not available because of the large amount of money involved? A Money Market Account Private investment Economic reinvestment Real estate syndication
Real estate syndication
What is an example of discrimination in lending? Denying membership to MLS Telling a person that a property is not for sale Refusing to purchase a loan Stating a property is restricted
Refusing to purchase a loan
What provision, in an independent contractor agreement, states that the broker and licensee will comply with all Federal and State Fair Housing laws? Compensation Non-employment Federal Tax Purposes Regulatory compliance Indemnification
Regulatory compliance
What refers to a government regulation of the amount of rent a landlord may charge a tenant? A cap Lease regulation Income stabilization Rent control
Rent control
What term describes when both the client and the broker agree to end the relationship that they are in? Contingency Rescission Termination Cancellation
Rescission
What provision in a sales contract is the seller's written summary of the property's condition at the time of contracting for sale? Seller's representations Right of rescission Residential property condition disclosure Broker's representation and commission
Residential property condition disclosure
What are limitations placed on the use of land by the developer of a residential subdivision? Adverse possession Easements Restrictive covenants Development controls
Restrictive covenants
What paragraph in a CAR Residential Listing Agreement states the broker is not responsible for damage to personal or real property or persons in association with the showing and sale of the property? Seller Representations Deposit Agency Relationships Security and Insurance
Security and Insurance
What type of agency representation refers to one broker representing the seller and another broker representing the buyer? Implied agency Single agency representation Express agency Dual agency representation
Single agency representation
What describes the channeling of home buyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood? Blockbusting Filtering Redlining Steering
Steering
What describes the transfer by a tenant, the sub lessor, of a portion of the leasehold interest to another party, the sublessee, through the execution of a sublease? Subletting Renting Owner financing Assumption
Subletting
What term describes the giving up of a lease or other estate, thereby ending any further obligations? Breach Condemnation Surrender Voluntary agreement
Surrender
What is defined as a simulated housing transaction designed to obtain evidence of different treatment based on an individual's protected class status? Measuring Streaming Testing Blockbusting
Testing
What is an extended title coverage policy that insures against many of the items excluded in the CLTA standard policy? The Mortgage Title Insurance Policy The American Land Title Association (ALTA) The Real Property Title Association (RPTA) The California Title Association
The American Land Title Association (ALTA)
What is the standard title policy in California? The California Home Title Policy The First American Land Title Policy (FALTP) The American Title Association The California Land Title Association (CLTA)
The California Land Title Association (CLTA)
Who enforces the collection of sales and use taxes in California? The California Board of Realtors The California State Board of Equalization The California Bureau of Real Estate The California Real Estate Commission
The California State Board of Equalization
What Act was passed in 1977 to prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities? The Housing Mortgage Act The Equal Credit Act The Community Reinvestment Act The Fair Credit Reporting Act
The Community Reinvestment Act
What was passed by Congress in 1977 to prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities, including low-and moderate-income neighborhoods? The Economic Recovery Act The Equal Opportunity Act The Tax Relief Act The Community Reinvestment Act
The Community Reinvestment Act
Who is RESPA administered by? The Office of Fair Housing (OFH) The Consumer Financial Protection Bureau (CFPB) The Office of Equal Opportunity (OEO) The Department of Housing and Urban Development (HUD)
The Consumer Financial Protection Bureau (CFPB)
Who enforces fair housing laws? The Department of Community Development The Secretary of State The Office of Equal Opportunity The Department of Housing and Urban Development
The Department of Housing and Urban Development
What Act prohibits lenders from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependency on public assistance? The Real Estate Settlement Procedures Act The Fair Credit Reporting Act The Truth in Lending Act The Equal Credit Opportunity Act
The Equal Credit Opportunity Act
Which of these regulates how borrowers apply for credit and how lenders evaluate income and grant credit? The Federal Trade Commission The Equal Credit Opportunity Act The Department of Housing and Urban Development The Department of Fair Housing
The Equal Credit Opportunity Act
What should be prominently displayed in all broker's offices to comply with fair housing policies? The Housing Discrimination Act Title VIII of the Civil Rights Act The office anti-discrimination policies The Equal Opportunity Poster
The Equal Opportunity Poster
What 1977 Act prohibits financial institutions from discriminating in loan activities on the basis of race, color, religion, marital status, national origin ancestry or sex? The Home Mortgage Act The Equal Credit Act The Fair Lending Act The Housing Financial Discrimination Act
The Housing Financial Discrimination Act
What Act added sex to the list of protected classes in 1974? The Fair Housing Amendment Act The Housing Discrimination Act The Housing and Community Development Act The Community Reinvestment Act
The Housing and Community Development Act
What is an account that holds all the money collected from license and exam fees and is used for the operating expense of the CalDRE? The Real Estate General Fund The Real Estate License Fund The Real Estate Escrow Fund The Real Estate Exam Fund
The Real Estate General Fund
What was created in 1974 to ensure that the buyer and seller in a residential real estate transaction, involving a new first mortgage loan, have knowledge of all settlement costs? The Consumer Financial Disclosure Act The Real Estate Protection Agency The Department of Housing and Urban Development The Real Estate Settlement Procedure Act
The Real Estate Settlement Procedure Act
What was created in 1974 to ensure that a buyer and seller in a residential real estate transaction have knowledge of all settlement costs? The Real Estate Acquisition Act (REAA) The Residential Real Estate Act The Real Estate Settlement and Procedures Act (RESPA) The Settlement and Real Estate Transaction Act
The Real Estate Settlement and Procedures Act (RESPA)
What is an account established as a last resort for a consumer who has obtained a final civil judgment or criminal restitution order against a real estate licensee based on fraud or certain other grounds? The Real Estate Education Fund The Real Estate Research Fund The Recovery Fund The Real Estate Restitution Fund
The Recovery Fund
What do many states have that protects consumers who enter into the types of contracts in which fraud is most likely to occur? Consumer law Common law The Statute of Frauds The Breach of Performance
The Statute of Frauds
What requires certain documents to be in writing to be enforceable? The Statute of Limitations The Law of Documentation The Statute of Frauds Habeas Corpus
The Statute of Frauds
What restricts the time period for which an injured party in a contract has the right to bring a lawsuit against the other party? The Statute of Frauds An exclusion clause A limitation clause The Statute of Limitations
The Statute of Limitations
What Act is a model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties? The Residential Community Act The Property Accommodations Act The Uniform Residential Landlord and Tenant Act The Tenancy Regulation Act
The Uniform Residential Landlord and Tenant Act
What 1959 Act provides protection from discrimination by all business establishments in California, including housing and public accommodations? The Housing and Community Development Act The Rehabilitation Act The Unruh Civil Rights Act The Architectural Barriers Act
The Unruh Civil Rights Act
In a broker-associate relationship, where a licensee is an employee, who controls the hours, schedule, and workload an agent has? The licensee The board secretary The real estate board The broker
The broker
Who can allow a listing to be cancelled during the term of the listing agreement? The seller The licensee A cooperating broker The broker
The broker
Who is ultimately responsible for a licensees business related actions? The licensee The broker The real estate commission The brokerage franchise
The broker
What option allows a tenant to arrange and pay for repairs, then deduct the amount from rent payments? The tenant repair option The repair-and-deduct-option The right of refusal The landlord settlement option
The repair-and-deduct-option
Who must sign and acknowledge escrow instructions? The buyer The broker The seller and buyer The seller
The seller and buyer
What paragraph in a CAR Residential Purchase Agreement states the contract represents the final terms of the agreement unless the parties make changes in writing? Assignment Selection of Service Providers Time of Essence; Entire Contract; Changes Expiration of Offer
Time of Essence; Entire Contract; Changes
Which of the following is NOT a purpose of laws in our society? To make associations between individuals and governments To set standards To settle disputes To safeguard liberties and rights
To make associations between individuals and governments
What is the purpose of forming a syndicate? To create an LLC To pool financial resources for a certain investment To be protected from taxes To test out a business idea
To pool financial resources for a certain investment
What is the main purpose of the DRE? To collect license and exam fees To protect the public To protect licensees To protect brokers
To protect the public
In what type of agency relationship does the principal empower the agent to perform any and all actions that may be legally delegated to an agency representative? Specific agent Special agent General agent Universal agent
Universal agent
What describes an unforced transfer of title by sale or gift from an owner to another party? Constructive notice Chain of title Act of acceptance Voluntary alienation
Voluntary alienation
How much time does a person have to file a complaint with the Department of Fair Employment and Housing? Within 3 years from the incident Within a year from the incident Within 2 years from the incident Within 2 years from the incident
Within a year from the incident
A quiet title suit is also called a suit to remove an assignment. a defect. a cloud. a contingency.
a cloud.
Under Agency Relationships, in a CAR Residential Listing Agreement, if a buyer is found through the broker or associate at the brokerage, the seller agrees to allow the broker to act as a transaction broker. a listing agent. a dual agent. a selling agent.
a dual agent.
If an agent is faced with questions outside the realm of his or her expertise it is best for the agent to refer such questions to an inspector. an appraiser. an expert. a broker.
an expert.
If a broker is representing a buyer-client, he or she must negotiate on behalf of the seller. broker. buyer. lien holder.
buyer.
In an adjustable rate loan, index plus the margin establishes the adjustment period. initial rate. amortization period. calculated rate.
calculated rate.
In the United States, the primary source of the law comes from civil law. statutes. case precedents. state regulations.
case precedents.
The two types of homestead exemptions in California are the automatic homestead exemption and the implied homestead exemption. declared homestead exemption. express homestead exemption. equitable homestead exemption.
declared homestead exemption.
Various government and public entities can transfer private property to the public sphere by the power of escheat. eminent domain. riparian rights. encumbrance.
eminent domain.
When a licensee completes a TDS, the three main areas he or she will visually inspect includes the exterior of the property, the interior of the property and the land. utility markings. environmental hazards. encroachments.
environmental hazards.
The most widely used listing agreement is the open listing. exclusive agency listing. net listing. exclusive right to sell.
exclusive right to sell
Communities view licensees as their real estate appraisers. board. inspectors. experts.
experts
Testers who encounter fair housing discrimination have the legal ability to fine a licensee. file complaints under federal or state agencies. revoke a real estate license. negotiate a listing contract.
file complaints under federal or state agencies.
A licensee cannot give legal advice unless he or she has permission from the broker. is asked to by the client. speaks with an attorney. has a separate license to do that.
has a separate license to do that.
Most brokers prefer working with licensees as employees. independent contractors. subagents. other brokers
independent contractors.
The three most common types of zoning classifications are residential, commercial and agricultural. industrial. recreational. public.
industrial.
California law outlines the distribution of real property through a process called lis pendens. life estate. intestate succession. quiet title.
intestate succession.
A life estate is a freehold estate that is passed to an heir. given to the state upon the owner's death. transferred to another person for permanent ownership. limited in duration to the life of the owner or other named person.
limited in duration to the life of the owner or other named person.
The full consent of all parties to a contract is called memorandum of understanding. cooperative agreement. mutual agreement. service agreement
mutual agreement
A meeting of the minds where parties freely agree to the terms of a contract, exactly as the contract is written, is called separate assent. reciprocal agreement. bilateral assent. mutual assent.
mutual assent.
If a real estate agent fails to exert reasonable efforts to represent his or her client's interests, the agent could be found guilty of misrepresentation. perjury. negligence. fraud.
negligence.
The primary method of foreclosure in California is the strict foreclosure. judicial foreclosure. voluntary foreclosure. non-judicial foreclosure.
non-judicial foreclosure.
When a licensee induces someone to sell his or her property by telling him or her that persons of a certain protected class are moving into the neighborhood it is called steering. panic selling. redlining. protecting classes.
panic selling.
Once a lien is placed on a property, the most common way to remove it is for the property owner to request a release. file for bankruptcy. pay the debt. retain an attorney.
pay the debt.
If an unlicensed person does act as a real estate salesperson or broker, he or she will be guilty of fraud. penalized under the law. required to compensate the injured party. fined $1,000.
penalized under the law.
Items that are paid in advance such as property taxes are called credits. prepaid expenses. prorations. advancements.
prepaid expenses.
California law has held that a post-dated check may be considered the equivalent of a certificate of deposit. cash deposit. promissory note. cashier's check.
promissory note.
Escrow doesn't officially close until the deed has been signed. recorded. transferred. conveyed.
recorded
If a seller chooses not to follow fair housing laws the agent should refer the listing. refuse the listing. take the listing anyway. sue the seller.
refuse the listing.
In a CAR Residential Purchase Agreement,the four sections that follow the confirmation of acceptance are real estate brokers, escrow holder acknowledgement, presentation of offer and contingencies. rejection of offer. appraisals. counteroffer.
rejection of offer.
Discharging a contract by mutual agreement is called rescission. initiation. revocation. retraction.
rescission
A buyer's agent is held to the same standard of performance in dealing with the buyer that the listing broker is held to in dealing with the title company. lender. seller. customer.
seller
According to the CAR Residential Purchase Agreement, tax bills issued after close of escrow will be handled directly between seller and broker. seller and buyer. broker and buyer. lender and seller.
seller and buyer.
Most of the sales of residential property involve two licensees-a listing broker and a sales agent. selling broker. transaction broker. dual agent.
selling broker
Rules and regulations enacted by various federal agencies are important to real estate because they are laws passed by congress. many are listed in the constitution. several of the agencies involve housing and/or financial transactions. they are considered guidelines rather than laws.
several of the agencies involve housing and/or financial transactions.
In a lease arrangement the owner is the landlord and the renter is the lessor. tenant. proprietor. freeholder.
tenant.
If a seller refuses to consider an offer because the prospective buyer is a member of a protected class the listing should be referred to the broker. extended. offered at a lower price. terminated.
terminated
If a decedent died with a valid will, he or she is said to have died habendum. intestate. with heirs. testate.
testate.
A creditor who places a lien on a property is called the lienee. the mortgagor. the mortgagee. the lienor.
the lienor.
The individual state's common laws of torts and contracts are unique because they are the same as federal contract laws. they can be enforced on a federal or state level. the powers of these belong exclusively to the state. they are considered universal.
the powers of these belong exclusively to the state.
When a licensee realizes that an agency has been undisclosed to someone, the problem can be corrected with a chain of title. power of attorney. the proper disclosure. a listing agreement.
the proper disclosure.
A common interest development, or CID, is a development characterized by the individual ownership of either a housing unit or parcel coupled with its relative size. its proximity to other units. the potential value. the right to use shared common areas and facilities.
the right to use shared common areas and facilities.
Certain amendments will be of particular interest to real estate professionals because they discuss real estate transactions. they impact property rights. everyone should know the amendments. they explain implied powers.
they impact property rights
What type of property restriction places limits on how a property may be used? An encumbrance A lien An easement A deed restriction
A deed restriction
What term describes a personal property item that has been converted to real property by attachment to real estate? A feature A component A fixture A fitment
A fixture
What type of survey is a boundary survey with the additional location of all the interior improvements? A topographic survey A location survey A site planning survey A construction survey
A location survey
What does a developer submit for approval that contains surveyed plat maps and comprehensive building specifications? An inspection report A survey A building plan A plat of subdivision
A plat of subdivision
What authorizes a use that is not consistent with the zoning ordinance in a literal sense, yet is clearly beneficial or essential to the public welfare? An accessory use A special use permit A zoning ordinance A deed restriction
A special use permit
What is the elective share statute? A statute that enables a surviving spouse to make a minimum claim to the deceased spouse's property in lieu of provisions in a will A statute that assures a wife's life estate interest in the husband's property A statue that protects family members against losing their homes to general creditors attempting to collect on debts A statute that allows surviving spouses definitive rights to all family property after a spouse's death
A statute that enables a surviving spouse to make a minimum claim to the deceased spouse's property in lieu of provisions in a will
Which of these is considered separate property in a marriage? A $5000.00 check given as a wedding gift A home purchased after a couple marries A vehicle owned by one spouse prior to marriage A business purchased during a marriage
A vehicle owned by one spouse prior to marriage
What allows a use that differs from the applicable ordinance for a variety of justifiable reasons? A proposed variance An area variance A zoning variance A use permit
A zoning variance
What describes a powdery mineral once commonly used as a fireproof insulating material around pipes, in floor tiles and linoleum, in siding and roofing, in wallboard, joint compound and many other applications? Radon Asbestos Formaldehyde Lead
Asbestos
If a couple has a one year lease that changes over to a month to month lease after the one year term expires, the property is what kind of leasehold estate? Estate at Will Estate from Period to Period Estate for Years Estate at Sufferance
Estate from Period to Period
In order to qualify for FHA financing insurance, what type of requirements must a subdivision meet? HUD requirements FHA requirements HOA requirements Minimum standard requirements
FHA requirements
Which of the following is NOT a superior lien? Special Assessment Federal and State Inheritance Tax Federal Income Tax Real Estate Tax
Federal Income Tax
How does a cooperative differ from condominiums? The costs are relatively higher in cooperatives. In cooperatives, a person owns shares in a corporation as opposed to having a mortgage. The cooperative has less potential problems than condominiums. In cooperatives, the owner owns the land associated with their unit.
In cooperatives, a person owns shares in a corporation as opposed to having a mortgage.
What is undivided interest? Interest in a property where there is a single owner Interest determined by possession of the property Interest in a property where two or more parties share ownership Interest determined by intended use of the property
Interest in a property where two or more parties share ownership
What does it mean for a corporation to be closely held? It has only a few shareholders. It is not a public corporation. The shareholders plan for it to stay a small company. It doesn't pay taxes.
It has only a few shareholders.
What does a writ of attachment do? It stops a debtor from selling or concealing property. It forces the sale of a property. It protects certain property from being sold. It determines the sale price of a property.
It stops a debtor from selling or concealing property.
What refers to support provided by the adjacent property, such as a landowner having a right to demand that a neighboring property owner does nothing to cause the land to collapse? Material support Lateral support Central support Littoral support
Lateral support
Which of the following is not an equitable remedy? Liquidated Damages Rescission Quiet title Foreclosure
Liquidated Damages
What type of rights concern properties abutting bodies of water that are not moving, such as lakes and seas? Inlet rights Littoral rights Real property rights Riparian rights
Littoral rights
Mary and Ben were having a dispute over an employment contract. They agreed to allow a third party to listen to their issues and help them come to a resolution. This is a description of what type of dispute resolution? Arbitration Litigation Mediation Estoppel
Mediation
What describes a fungus that grows in the presence of moisture and oxygen on virtually any kind of organic surface? Carbon monoxide Radon Asbestos Mold
Mold
What type of use is one that clearly differs from current zoning and usually occurs when zoning change leaves existing properties in violation of the new ordinance? Special use Conforming use Nonconforming use Restrictive use
Nonconforming use
What is the main difference between condominiums and planned unit developments (PUD)? PUD owners own the land where the unit is, not just the airspace around it. PUD's cannot be owned jointly, while condominiums can be. PUD owners are not individually taxed as condominium owners are. PUD's can be individually sold by owners, while condominiums cannot.
PUD owners own the land where the unit is, not just the airspace around it.
What describes real estate and the bundle of rights associated with owning the real estate? Personal estate Community property Personal property Real property
Real property
Which state court is known as the "people's court?" Family Court Small Claims Court Court of Appeals District Court
Small Claims Court
What type of taxes are levied on properties to pay for improvements, that will ideally increase the overall value of the property? Personal property taxes Improvement taxes Special assessments Rollback taxes
Special assessments
Which of the following is a kind of tenancy not recognized in California? Joint Tenancy Tenancy in Common Tenancy by the Entirety Tenancy in Severalty
Tenancy by the Entirety
Interests are individually owned in tenancy in common. What does that mean? Tenants decide what percentage of the property each will own. Tenants have distinct and separable ownership of their interests. One of the tenants is a beneficiary. Tenants have tenancy in severalty.
Tenants have distinct and separable ownership of their interests.
What term describes when a property owner dies with a valid will in place? Escheat Intestate Moratorium Testate
Testate
What 1969 Act created the Environmental Protection Agency (EPA) and the Council for Environmental Quality, giving them a mandate to establish environmental standards for land use planning? The Water Pollution Control Act The National Environmental Policy Act The Water Quality Improvement Act The Resource Recovery Act
The National Environmental Policy Act
What describes items of a tenant's personal property that the tenant has temporarily affixed to a landlord's real property in order to conduct business? Datums Accessories Personal devices Trade fixtures
Trade fixtures
What is a sole proprietorship? When two people own a business together When the business is a separate legal entity under state law When a single person owns the whole business When two people own the business, but it has limited liability.
When a single person owns the whole business
An encumbrance is a law that assures a property owner's rights. a way of zoning residential property. a type of estate. a right of another to use or take possession of a legal owner's property or limit the owner's rights.
a right of another to use or take possession of a legal owner's property or limit the owner's rights.
Property owners can enforce covenants by taking a court action known as an affidavit. an injunction. a complaint. a decree.
an injunction.
In a civil case, the primary goal is to compensate the injured party for the damage done to him or her by establishing a case precedent. awarding either a legal remedy or equitable remedy. not providing an equitable remedy. requiring a specific performance from the plaintiff.
awarding either a legal remedy or equitable remedy.
In the Uniform Commercial Code, negotiable instruments are all of the following EXCEPT cash. promissory notes. drafts. checks.
cash.
Items of personal property are also called appurtenances. fodder. chattels. interests.
chattels.
In a civil case, pleadings refer to counter-claims filed by the defendant. each party's side of the dispute. gathering relevant evidence. filing suit.
each party's side of the dispute.
Properties which are owned by the government are called domains. not exempt from the payment of property taxes. exempt from the payment of property taxes. required to pay a usury tax.
exempt from the payment of property taxes.
Many states have enacted their own homestead laws that specify foreclosure timeframe. exemption amounts for individuals and families. minimum sale price. payment for selling costs.
exemption amounts for individuals and families.
The term "metes" refers to distance and direction and the term "bounds" refers to course. variable landmarks. fixed reference points. latitude.
fixed reference points.
If a California homeowner does not pay his or her full property tax amount by June 30th, the property is considered intestate. escheat. nonconforming. in default.
in default.
An easement may be created by all of the following EXCEPT by prescription. voluntary. in gross. necessity
in gross.
The Bill of Rights protects the rights of individuals by dividing power into three main branches. laying out the organization and powers of the federal government. making sure all laws agree with the US Constitution. limiting government power.
limiting government power.
In a typical civil case, the burden of proof is on the judge. officer of the court. defendant. plaintiff.
plaintiff
Property taxes that are not paid result in a deed restriction. property lien. property assessment. tax lien.
property lien.
During jury selection, parties may not use peremptory challenges because of an individual's bias. race. age. economic status.
race
The north-south area between consecutive meridians is called a lot. tier. section. range.
range.
Air, water, land and everything affixed to the land is a definition of intangible property. chattel. real estate. community property.
real estate.
In 1848, courts in the United States recognized and enforced restrictive covenants to regulate land use in public areas. parks. agricultural areas. residential subdivisions.
residential subdivisions
The two most important environmental disclosure requirements for licensees to be aware of are the Natural Hazards Disclosure Act and the Clean Air Amendment. the Coastal Zone Conservation Act. the Lead-based Paint Act. the Alquist-Priolo Earthquake Faulting Zone Act.
the Lead-based Paint Act.
The most favorable management of real property usage must take into account both the interests of the individual and the interests of the subdivision. the surrounding community. the government. the HOA.
the surrounding community.
It is key for agents to learn about the laws because they need to be able to memorize them. they should be able to give their clients legal advice. they have too many laws that apply to their transactions. they need to know the origination and support for those rules.
they need to know the origination and support for those rules.
If the Commissioner revokes a license, the person affected may not apply for reinstatement of the license until 2 years has passed. 6 months has passed. 1 year has passed. 3 months has passed.
1 year has passed.
How many days does a buyer have to conduct a lead-based paint inspection in a sales transaction? 3 15 10 30
10
When HUD receives a complaint, how many days may pass to determine if there is reasonable cause to charge discrimination? 30 60 75 100
100
What percentage of the gross sales price must a buyer withhold and send to the IRS if the seller of real property is a "foreign person"? 15% 20% 12% 10%
15%
How old must a candidate be in order to obtain a real estate license? 21 18 16 23
18
At least how many people are needed to form a bilateral contract? 1 2 4 0
2
How much notice must a landlord give a tenant to enter a rental property in most situations? 2 days 24 hours 12 hours 8 hours
24 hours
Within how many days after delivery of a disclosure can buyer cancel a CAR Residential Purchase Agreement Contract? 7 5 10 3
3
Within how many days of a loan application must a loan estimate be delivered? 30 10 3 15
3
A broker who receives a buyer's money deposit, that is not in the form of a check, must deposit it in the appropriate account within how many days following receipt of the funds? 10 business days 3 business days 7 business days 5 business days
3 business days
Within how many days is a creditor generally required to provide the Loan Estimate of the receipt of the consumer's loan application? 10 business days 30 business days 7 business days 3 business days
3 business days
In most cases a borrower has a right to cancel a transaction by notifying the lender within 10 days. 5 days. 3 days. 15 days.
3 days.
How long does a lender have to inform an applicant that he or she was rejected for a home loan? 60 days 30 days 90 days 120 days
30 days
When using the repair-and-deduct option, how long should a tenant wait for a landlord to fix items before choosing to fix them him or herself if the problem is not severe? 7 days 21 days 30 days 60 days
30 days
A licensee who is 70 years old or older is exempt from the continuing education requirements if that person has been a licensee in good standing in California for at least 25 years. 30 years. 15 years. 20 years.
30 years.
The two methods that are typically used when closing agents and lenders calculate items that need to be prorated are the 12-month/360 day method and the 365 day method. half year method. prorated calculation method. 6-month/180 day method.
365 day method.
All California real estate licenses are issued for a period of 2 years. 6 years. 8 years. 4 years.
4 years.
What is the continuing education requirement to renew a real estate license in California? 12 hours every 2 years 15 hours every year 45 hours every 4 years 60 hours every 4 years
45 hours every 4 years
In a CAR Exclusive Buyer Representation Agreement, how many days from the date of the agreement does a buyer have to provide the broker proof that he or she has the financial capability to purchase a property described in the agreement, if it's not written in the agreement? 7 10 5 15
5
How many days notice to terminate must a tenant be given in a mobile home lease agreement? 15 days 45 days 60 days 30 days
60 days
What describes legal rights that are attached to the ownership of a parcel of real estate? Ownership rights Parcel rights A bundle of rights Legal property rights
A bundle of rights
What refers to all calendar days except Sundays and holidays specified in 5 U.S.C. 6103 or the observed legal holiday? A weekday A business day A nautical day A bank day
A business day
What agreement authorizes a broker to represent a buyer or tenant in the search for a property to rent or purchase? A representative agreement A buyer compensation agreement A buyer agency A listing contract
A buyer agency
What type of clause refers to conditions attached to either an offer to purchase property or a counteroffer to purchase a property? A demising clause A release clause An earnest clause A contingency clause
A contingency clause
What type of mortgage loan is the most common and generally viewed as the most secure? An FHA loan A conventional mortgage A government backed loan A rural housing loan
A conventional mortgage
What describes a legal procedure in which the property that is used as security for a debt is sold to satisfy the debt in the event of a default? An eviction A seisen A repossession A foreclosure
A foreclosure
What type of agency is created between the broker and salespeople? A special agency A general agency A universal agency An employee agency
A general agency
What type of deed transfers title from the seller to the buyer? A deed of reconveyance A deed of trust A grant deed A specific deed
A grant deed
In what type of lease does the landlord pay the property's operating expenses, including utilities, repairs, and maintenance? A graduated lease A gross lease A net lease An index lease
A gross lease
When a lawsuit or complaint is filed against a real estate agent, who must determine whether or not an agency relationship has been created? A broker A judge A member of the Commission A hearing officer
A hearing officer
What describes a portion of land delineated by boundaries? A section A parcel A tier A plot
A parcel
What type of survey includes a topographic survey of a parcel of land which will be divided into two or more smaller tracts, lots or estate divisions? A location survey A construction survey A site survey A subdivision survey
A subdivision survey
If a tenant is in default what can the landlord file to repossess the property and evict the tenant? A suit for default A breach of contract An order of removal A suit for possession
A suit for possession
What type of suit compels the defaulting party to perform the contract obligation that was breached? A suit for breach of duty A suit for specific performance A suit for possession A suit for misrepresentation
A suit for specific performance
What type of suit is an attempt to force the defaulting party to comply with the terms of the contract? A suit for damages Rescission A suit for specific performance Forfeiture
A suit for specific performance
What is a contract of indemnity where an insurance company agrees to compensate the insured, either a homeowner or a lender, for financial losses that the insured has incurred because of defects to the title of the property? A transfer of ownership A title insurance policy A title report Hazard insurance
A title insurance policy
What authorizes an official, such as the county sheriff, to seize and sell a foreclosed property? A right of redemption A right to sell A writ of execution A power of sale
A writ of execution
What is an option a creditor can obtain to receive payment by forcing the sale of attached property and collect a debt? A writ of execution A constructive notice A right of rescission A credit assessment
A writ of execution
What describes a regulation enacted by the local government for zoning a city or county? A mandate A special use permit An injunction A zoning ordinance
A zoning ordinance
What describes expenses that the seller incurred but have not yet been billed for at the time of closing? Settlement expenses Mortgage expenses Accrued expenses Estimated expenses
Accrued expenses
What is the act of converting personal property to real property by attaching it to the real estate called? Affixing Severing Appending Detaching
Affixing
What is not a primary provision typically found in a residential sale contract? Parties Boundaries Legal description Price and terms
Boundaries
What describes a failure to perform according to the terms of an agreement? Failure of privilege Breach of contract Failure of performance Breach of faith
Breach of contract
What is it called when a broker wants to end a listing but the client does not? Rescission Broker renunciation Client revocation Recession
Broker renunciation
Which section in a CAR Residential Listing Agreement contains a list of duties for the broker and seller? Seller Representations Broker's and Seller's Duties Agency Relationships Management Approval
Broker's and Seller's Duties
In what landmark case did the Supreme Court prohibit racial segregation of public schools? Buchanan v. Warley Plessy v. Ferguson Brown v. Board of Education Shelley v. Kraemer
Brown v. Board of Education
Which of these is an advantage of an exclusive buyer agency? Earning commissions from both the listing and selling side of the business is not possible. Buyers have greater confidence that they will see all the properties available from every source. A potential conflict of interest arises if 2 clients want to make offers on the same property. The exclusive buyer broker will not take listings.
Buyers have greater confidence that they will see all the properties available from every source.
What does DRE stand for? California Buyer Representation California Board of Realtors California Business Enterprises California Department of Real Estate
California Department of Real Estate
Another name for common law, which is the overall accumulation of judicial decisions is what? Constitutional law Case law Administrative law Contract law
Case Law
What refers to the succession of property owners of record dating back to the original grant of title from the state to a private party? Deed-in-lieu Clouded title Eminent domain Chain of title
Chain of title
What settlement process refers to signing and transferring all documents and distributing funds? Commitment Conveyance Servicing Closing
Closing
What results when a grantee has obtained defective title, or received title by defective means, but occupies the property as if he or she were the legal owner? Succession of title Acquisition Color of title Exclusive access
Color of title
What do we call the practice of mixing a client's money with the agent's personal funds? Conversion Disengagement Dispersement Commingling
Commingling
What is another term given to case law? State law Common law Property law Civil law
Common Law
What term describes when HUD attempts to resolve a complaint by getting assurance from the person against whom the complaint was filed that he or she will remedy the alleged violation? Condonation Arbitration Conciliation Intervention
Conciliation
What term describes the exchange of promises offered by one party to another to do or not to do something? Deliberation Application Omission Consideration
Consideration
Which body of law is designed to protect the public from harm?Personal Property lawCivil lawCriminal lawTort law
Criminal Law
What type of zoning allows more restrictive zoning uses to be allowed in less restrictive zones? Noncumulative zoning Incentive zoning Cumulative zoning Recreational zoning
Cumulative zoning
What kind of appeal cases go straight to the California Supreme Court? Civil Murder Death penalty Fraud
Death Penalty
What transfers legal title to a lienholder and something a defaulting borrower may use to avoid court actions and costs by voluntarily deeding the property to the mortgagee? Voluntary assignment A strict foreclosure Deed in lieu of foreclosure Conveyance
Deed in lieu of foreclosure
What term describes the failure to do something required by law or duty? Transgression Breach Noncompliance Default
Default
What lease clause talks about the landlord leasing the property and the tenant taking possession of the property? Capacity to contract Rent Demising clause Description
Demising clause
What is not one of the four ways a judgment lien can be terminated? Lien payment Lien expiration Discharge by exemption Discharge by creditor
Discharge by exemption
What is defined as advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin? Discriminatory advertising Behavioral advertising Predatory advertising Corporate advertising
Discriminatory advertising
In a real estate transaction what party chooses the escrow holder? The seller Either party The buyer The lender
Either party
Which type of estate is the most desirable? Determinable Fee excusatory interest Fee simple absolute Condition subsequent
Fee simple absolute
What term describes when damages were within the contemplation of the contract when made? Accountability Computability Predictability Foreseeability
Foreseeability
What type of surveys use portable receiving antennas to gather data transmitted from satellites which are used to calculate the position of the object being located on the surface of the earth? TA/AC surveys ALTA surveys GPS surveys ALTA/SM surveys
GPS surveys
What type of laws protect family members against losing their homes to general creditors attempting to collect on debts? Land use laws Familial laws Homestead laws Real estate laws
Homestead laws
Which of the following is NOT a way a property may be held? In Co-ownership In Trust In Severalty In Agreement
In Agreement
What describes a transfer of title to real property without the owner's consent? Indemnity conveyance. Chain of title Involuntary alienation
Involuntary alienation
What paragraph in a CAR Residential Purchase Agreement has five sections that outline the joint instructions of the buyer and seller to the escrow holder and defines the roles of the parties in the transaction? Joint Escrow Instructions to Escrow Holder Prorations of Property Taxes and Other Items Brokers Representative Capacity
Joint Escrow Instructions to Escrow Holder
What term refers to a lessee's ownership of a temporary right to exclusively possess land or property? Specific use Leasehold estate Term of lease Tenant activity
Leasehold estate
What financing term in a CAR Residential Purchase Agreement states that the buyer's qualification of the loan is a contingency of the agreement? Loan Contingency Loan Contingency Removal Lender Limits on Loan Contingency Buyer Credits
Loan Contingency
What is a database of properties for sale and is available for all real estate agents and brokers? Index of housing MLS GFD National home sales
MLS
What system uses physical features of the local geography, along with directions and distances, to define and describe the boundaries of a parcel of land? Lot and block method Rectangular survey system Recorded plat method Metes and bounds
Metes and bounds
