practice test oct 24

Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help them purchase their dream house now that he's retired, but one that has the necessary accommodations for the admiral's disability. They also confide in you that they don't have a lot of money saved up for a down payment. Which type of financing may work best for them?

A VA loan, which requires no down payment.

Which of the following describes total debt ratio?

A calculation that looks at all recurring (or installment) debt, such as monthly mortgage, car, credit, and loan payments, as a percentage of the borrower's monthly gross income

What's the difference between a special use permit and a variance?

A variance allows a deviation from the requirements of the zoning ordinance; a special use permit allows a use not ordinarily allowed in the zone.

Which product's fibers are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer?

Asbestos

Sue and Jim are hoping to expand their family, which means moving to a larger home. They're closing on their new home soon, but haven't yet sold their current one. Which type of loan will help them afford both homes for a short period of time?

Bridge

Steve holds a real estate license in Oregon but would also like to perform real estate activities in California. What must he do?

California does not have reciprocity agreements with any other states. Individuals licensed in other states must complete all of the requirements that an unlicensed individual completes.

With which entity must contractors who work in California obtain their licensure?

Contractor's State License Board

Which one of the following is a common problem with roof shingles?

Discoloration or curling

Which of the following terms may be defined as a form of depreciation or loss in value caused by defects in design?

Functional obsolescence

Which of these is an example of good consideration?

Gifting a house to a family member

A landlord owns a 15-unit rental property in an area without local rental control. Under what circumstances may this landlord increase the monthly rent of a unit by 20%?

If the previous tenant moved out and the increased rate is for a new tenant.

Which of the following is the cost of replacing a building in the case of total loss?

Insured value

What's a key feature of the Federal Housing Administration's loan program?

Insures lenders against loss from borrower default

What is done to a landfill that is put out of commission?

It is capped.

In a title theory state, which of the following is a true statement?

It's generally much easier for a lender to foreclose on a property.

Which of the following is a true statement about the MLS and sellers?

It's rare for sellers to decline advertising their property on the MLS.

Which of the following is the best reason to support diversity in a real estate office?

It's the best way to provide service to a broad array of clients.

Which of these statements is NOT true about an extended title insurance policy?

It's typically used when the property is paid for in cash.

Which of the following is a mortgagor's responsibility?

Keep the property in good repair.

Which of the following could be a sign of a plumbing problem?

Low water pressure

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom (with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death?

Lucas and Tom

What's the price at which a willing buyer and a willing seller would strike a deal given normal market conditions?

Market value

In a purchase offer, is earnest money required in order to have a binding contract?

No, because the buyer's consideration is the promise to buy.

Stacy is selling her home in a nice neighborhood. She no longer wants to live there because a gruesome murder occurred next door. Would Stacy need to disclose that this is why she is selling?

No, she is not required to disclose a death that didn't occur on her property.

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

Which real estate career requires the ability to advise clients using your extensive real estate expertise and ability to evaluate the potential of a given property?

Real estate counselor

Richard is interested in purchasing some rural land and included outbuildings. When reviewing the legal description, he sees the name of a principal meridian. What type of legal description is this?

Rectangular government survey

Years ago, Rachel held a real estate license. She took some time off to travel and start a family. Now she's ready to get back in the saddle. Her license expired three years ago. What must she do to renew her license and start practicing real estate again?

Requalify for a real estate license by completing pre-licensing courses and passing the state licensing exam.

Capital gains fall into which stage of the property ownership life cycle?

Reversion

Which type of ownership includes the unity of time, title, interest, possession, and marriage, and dissolves to a tenancy in common after a divorce?

Tenancy by the entirety

Which of the following is a true statement about borrower qualification standards for a VA-guaranteed loan?

The applicant must have a certificate of eligibility.

What's the best definition of land?

The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

Which of these situations would be exempt from most provisions of the federal Fair Housing Act?

The local Elks club owns a property that's rented only to Elks club members.

John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price for which other similar homes in the neighborhood are selling, and John accepts. What does the price of $365,000 represent?

The market value

What's required in order for a homeowner to receive a $7,000 exemption on property tax?

The property owner must reside in the home.

Deb, a licensee, is unhappy with the marketing materials a local company produced. While having coffee with Irving, a licensee with another firm, she tells him about her troubles and recommends he not do business with this company. Irving agrees and even volunteers to spread the word among his colleagues. What's this an example of?

This is group boycotting because it involves a group of licensees agreeing to not do business with another company.

Which act provides similar protections for consumers of business services and products as those provided by the California Fair Employment and Housing Act

Unruh Act

Which of the following best describes a home equity line of credit?

Used as an open-end account similar to the revolving credit of a credit card from which borrowers can take advances, repay money, and even borrow money again

Tamron owns a commercial strip mall with several units. She'd like to sell the property and move on to another project. She has hired Christopher as her agent. Is Christopher required to provide Tamron with an agency disclosure form?

Yes, agency disclosure is required on commercial properties