RE Principles: Final Exam
Marcus wants to have the deed to his new home recorded to protect his ownership rights. In order to record the deed, it must be notarized. Marcus must go before a notary public and verify the signing of the deed. The notary then signs the deed. The verification of the signing of the deed is known as: Acknowledgment Caveat Emptor Recording None of the above
Acknowledgment
Mobile homes manufactured after ___________ are required to have tags guaranteeing proper construction. Who issues this tag? Before June 15, 1976; HUD After June 1, 1967; HUD After June 15, 1976; HUD After June 1, 1976; California BRE
After June 15, 1976; HUD
Modesto broker Killian Johnson has just received a money deposit and the related instructions from the buyer, Luis Alverez. Which of the following does NOT describe how Killian should handle this deposit? Give the money to the principal to the transaction. Deposit into Killian's account, then figure out his commission, deduct that number to arrive at the final amount (due to the principal) and then write a check to the principal for the monies due to him, within 3 business days. Put it into a neutral escrow depository. Put it into the broker's trust fund account at a bank or other financial institution.
Deposit into Killian's account, then figure out his commission, deduct that number to arrive at the final amount (due to the principal) and then write a check to the principal for the monies due to him, within 3 business days.
Which level of government is currently "in charge" of planning controls for California property? Federal. State. County. Municipalities.
Federal
Mr. Manning has owned a restaurant for forty years. He is in the process of selling his business to a group of investors who plan on revamping the restaurant and turning it into a destination. In the negotiation of the sale, Mr. Manning has stipulated he is willing to accept their offer on two conditions: There may never be any alcohol served on the property, and there can never be dancing of any kind. Mr. Manning is insistent on these conditions due to his religious beliefs. If either of these activities ever takes place, Mr. Manning would have the right to take back the property. Which type of estate applies? Fee Simple Absolute Pur Autre Vie Estate in Reversion Fee Simple Defeasible
Fee Simple Defeasible
This step of the general plan, sometimes known as the master plan, should encompass all aspects of the projected growth, including the social, economic, and physical features. Due to this step, while considered long-range, the plan must allow for short-range flexibility. Which step is described? Resource Analysis Plan Implementation Formulation of Community Goals Adaptation of Zoning Ordinances
Formulation of Community Goals
Patrice and Cornell are completing a sales contract with Mary, their agent. The sales contract used at Mary's brokerage is preprinted. Mary, as a senior agent, has the authority to waive one of the brokerage's fees. The fee is explained and preprinted on the contract. Mary simply crosses it out, writes "waived" and both parties initial. Which overrules the other? The preprinted or handwritten portions of the contract? The preprinted portions of a contract always take precedence over handwritten. It depends on the portion of the contract and the language involved. Handwritten portions of real estate contracts always supersede preprinted forms. None of the Above.
Handwritten portions of real estate contracts always supersede preprinted forms.
La Mesa real estate broker Michael Hagans plans to begin listing or selling mobile homes. He must comply with all but one of the following statements. Which of these is NOT a requirement for Michael to list or sell mobile homes? He must only sell new mobile homes. He must only sell used mobile homes if they've been licensed by the California Department of Housing and Community Development. The mobile home must be capable of being transported over a road, with a hitch attached to the unit (or stored underneath it) and the axles attached to the frame. It is Michael's responsibility to ensure the proper completion and delivery of the title to the buyer of the mobile home.
He must only sell new mobile homes.
If a mobile home is real property, then the California Business and Professions Code Section 10131 (a) is a real estate broker's authorization to negotiate a sale of the real property/mobile home, transferring the mobile home by use of: A quitclaim deed. A grant deed. Laches. A trust deed.
A grant deed.
California property taxes are now levied using: A system based solely on location. A system that is based on the date of acquisition. A special assessment system. None of the above.
A system based solely on location.
If ABC Title Insurance Company wants to get in the business of handling escrows what licenses would it have to obtain? A title company does not need to obtain a special license to handle escrows. A title company is not permitted to handle escrows in any capacity. If the title company has been in business for a minimum of 5 years, it may handle escrows without a special license. If the title company has been in business for a minimum of 10 years, with annual audits for review by the State of California, it does not need to be specially licensed to handle escrows in California.
A title company does not need to obtain a special license to handle escrows.
The continuing education requirement for second and subsequent renewals in California is ____________hours every __________ years. 45, six 40, five 45, four 6, four
45, four
Which of the following is NOT a type of water rights? Riparian rights, which relate to rivers. Littoral rights, which relate to seashores and beaches. Alluvial plain, which relate to delta areas along rivers. Doctrine of Prior Appropriation, which relate to irrigation and "first in time equals first in rights" theory.
Alluvial plain, which relate to delta areas along rivers.
Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan due date is approaching and she will owe a lump sum of $11,257 to pay off her mortgage loan. Which type of promissory note has Caroline been paying? An Installment Note An Amortized note A Principal Note An Interest-Only Note
An Amortized note
Which type of leasehold estate has a definite beginning and ending date? An estate for years. An estate from period to period. An estate at sufferance. An estate at will.
An estate for years.
Any false or misleading advertising, whether on the Internet or via any other medium, can result in which of the following type of penalties? Civil. Administrative. Criminal. Any of the above.
Any of the above.
In which of the following capacities does the Commissioner serve in California? As the chairperson of State Department of Justice As the chief executive of the Department of Real Estate. The Commissioner serves as both the chairperson of the State Department of Justice, and the chief executive of the Department of Real Estate. The Commissioner serves in neither of these capacities. Instead, the Commissioner strictly serves in an advisory position over the real estate industry.
As the chief executive of the Department of Real Estate.
Escrow cannot be terminated in which of the following ways? By the completion of escrow. Because of the death of one of the principals. By mutual agreement. By a court or interpleader action.
Because of the death of one of the principals.
Which of the following is not a way of creating agency in California? By agreement. By ratification. By mutual agreement. By estoppel.
By mutual agreement.
Which act is known as the original fair housing statute? Executive Order 11063 Civil Rights Act Title VIII Fair Housing Act Civil Rights Act of 1866
Civil Rights Act of 1866
California real estate lenders are divided into 3 major categories. Which of the following is NOT one of these categories? Institutional lenders. Non-institutional lenders. Depository institutions. Government-backed programs.
Depository Institutions
A contract in which the vendor (seller) agrees to convey the title to the real property after the vendee (buyer) has met certain named conditions, and which does not require conveyance within one year, is ordinarily used in the case of a buyer who can only make a small down payment and monthly installments. This type of contract, because it holds disadvantages for both the seller and the buyer, is no longer a popular financing instrument in California. This is known as a(n): Mortgage. Installment land contract, also known as an installment sales contract. Open-end mortgage. Secondary mortgage market loan, such as Fannie Mae, Ginnie Mae, or Freddie Mac.
Installment land contract, also known as an installment sales contract.
Which of the following statements is NOT applicable to the Transfer Disclosure Statement, set forth under Civil Code Section 1102.3? It identifies items of value on the property and whether these items are operational. It applies to residential dwellings of 1-4 dwellings. It must be given to the prospective buyer 7 days after the deposit receipt is signed. It asks seller to identify any structural or material defects.
It must be given to the prospective buyer 7 days after the deposit receipt is signed.
Which of the following is NOT considered one of the basic types of Common Interest Developments? Condominiums. Cooperatives. Mobile home parks. Planned developments.
Mobile home parks.
In California, which of the following is considered the same as cash when provided in business transactions? A check. A promissory note. A post-dated check. None of the above.
None of the above.
The MAIN purpose of the California Department of Real Estate is to: Explain the laws to REALTORS. Protect the public. Protect the real estate licensees. All of the above.
Protect the public.
In California, there is a requirement to report annual and quarterly loan activities to the California BRE, IF, within the past 12 months, a broker has negotiated any combination of 10 or more loans to a subdivision OR a total of more than $1,000,000.00 in loans. This mandate is known as: Threshold Reporting. "Big Lending" Reporting. The Mortgage Loan Broker Law. Regulation Z.
Threshold Reporting
Under WHICH of the following circumstances could a homeowner take his microwave with him when he moves? If it is unattached, because it would still be considered the current homeowner's personal property. If it is so dictated in the contract and all parties agree to this in writing. Under any circumstance. Either A or B.
if it is unattached, because it would still be considered the current homeowner's personal property
Which of the following is not an exemption to the federal fair housing laws concerning age and family status? In a government-designated retirement housing. n a retirement community if 50% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents. In residential dwellings of four units or less, and single family houses. None of the Above.
n a retirement community if 50% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents.
On Kyle Thomason's $400,000.00 loan, the lender charges a 2-point service charge. In this situation, how much will Kyle have to pay for this service charge at closing, and how would such a charge appear on the statement? $800.00, as a debit to the buyer. $8,000.00 as a credit to the buyer. $8,000.00 as a debit to the buyer. $80,000.00 debit to the buyer.
$8,000.00 as a debit to the buyer.
A Point of Beginning refers to: A description starting at a designated place on a parcel using the Metes and Bounds System. A fixed object used to establish real estate boundaries using the Metes and Bounds System. Lines on either side of a principal meridian using the Rectangular Survey System. Lines running east and west parallel to a major base line using the Government Survey System.
A description starting at a designated place on a parcel using the Metes and Bounds System.
The newest employee at Edwards Escrow Co., Adam Riley, is handling the escrow paperwork for the sellers and the buyers on an Anaheim property sale. When Adam goes to figure out the prorations for the month of February, for which some of the expenses have already been paid by the sellers, Adam cannot remember what number to use to figure out the proration. Which of the following should he use? 28 days (or 29, if it's a leap year), since that is the actual number of days in February, the month for which the prorations are being calculated. 30 days, which escrow companies use as their base month in figuring out prorations. 31 days, which escrow companies use as their base month in figuring out prorations. 52, because there are 52 weeks in every year, and all escrow companies in California are required to use this base figure in proration calculations.
28 days (or 29, if it's a leap year), since that is the actual number of days in February, the month for which the prorations are being calculated.
What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments? 120 days after filing the lien; Four years 90 days after filing the lien; Five years 90 days after filing the lien; Three years 120 days after filing the lien; Five years
90 days after filing the lien; Three years
Karen and Jay need a larger home. They have two large dogs and a baby on the way. One day in the real estate section, they see their dream home. The couple view the home that very day, make an offer, and it's accepted. There's only one problem: They haven't even put their home on the market. Which type of loan gives Karen and Jay their best option of paying two mortgages until their current home sells? A Participation Mortgage A Bridge Loan A Sale-Leaseback A Contract for Deed
A Bridge Loan
In a general warranty deed, the implied promise that "if there is a defect, I promise to take care of any problems" is referred to as: A Covenant of Seisin A Covenant of a Warranty Forever A Covenant of Further Assurance A Covenant Against Encumbrances
A Covenant of Further Assurance
Tameka's goal is to be a licensed real estate salesperson in the State of California. Tameka is 16 years old, and her long-term goal is to be a successful salesperson, manager, and own a brokerage. She has been studying for next week's exam, but has not attended any accredited real estate courses. However, if she passes, she cannot apply for her license. Why? Tameka cannot apply for her license because she has not completed a college-level real estate course in Real Estate Principles, or completed any accredited real estate courses. Tameka is only sixteen and a licensee must be eighteen years old. If Tameka had taken any classes to prepare for the examination they would have to be offered by an institution of higher learning accredited by the Western Association of Schools and Colleges or a similar regional accrediting agency recognized by the United States Department of Education, or by an equivalent course of study offered by a private vocational school approved by the DRE. All of the Above
All of the Above
Which of following are not considered trust funds? Real Estate Commissions General Operating Funds Rents and Deposits from Broker-Owned Real Estate All of the Above
All of the Above
Which of the following statements referring to general taxes is true? General taxes are Ad Valorem taxes. General taxes are used for the general operation of the governmental agency authorized to impose the taxes. Real property taxes (general taxes) are based on the assessed valuation of the property. All of the Above
All of the Above
Which of the following statements is most accurate? In California, escrow is only used in real estate transactions. Escrow is known as a small and short-lived trust arrangement. The Escrow Act is found in the California Business and Professions Code. All of the above.
All of the above.
Elliot has misrepresented himself by advertising on the Internet. He is advertising in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation? Any false or misleading advertising - on the Internet or via any other medium - can result in administrative, civil and/or criminal penalties. Elliot has not done anything wrong. Advertising on the Internet cannot be controlled by the Real Estate Commission. Elliot has not done anything wrong since he once held a salesperson license. Advertising on the Internet in this case would be legal. Both B and C
Any false or misleading advertising - on the Internet or via any other medium - can result in administrative, civil and/or criminal penalties.
Agent Peters has qualified buyers to purchase a new home. Now he needs to qualify the property they wish to buy. He understands the human qualification process. Can you help Agent Peters with steps to qualify the property? Type of property and area zoning Location and Diversity of Neighborhood Value range and condition Both A and C
Both A and C
Janice has given her broker an earnest money deposit check with written instructions to hold the check until the seller has accepted her offer. Her broker follows instructions and informs the seller, through a telephone conversation with the seller's agent after the initial offer was presented, the buyer's check is being held awaiting offer acceptance. Did Janice's broker handle this situation correctly? No, the broker must inform the seller in writing the buyer's check is being held until acceptance of the offer. Yes, the broker informed the seller of the stipulation on the negotiation of the check until offer acceptance. No, the broker must inform the seller of the buyer's check being held at the exact time the actual offer is presented. Both A and C
Both A and C
What is the difference between Southern California and Northern California in reference to escrow accounts In Northern California, the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow. In Southern California, the instructions are usually not signed until one or two days before the close of escrow. In Southern California, the bilateral escrow instructions are signed by the buyer and seller shortly after they've signed their purchase agreement, just after the start of escrow, which is approximately 30 to 60 days prior to the close of escrow. In Northern California, the instructions are usually not signed until one or two days before the close of escrow. In Southern California, escrow services are usually performed by independent escrow companies or financial institutions. In Northern California, the escrow services are usually performed by title insurance companies. Both B and C
Both B and C
Each of the following actions, except for one, is considered subversion. Which of these answers is not a form of subversion? Reproducing exam material without authorization. Bringing a calculator into the examination room. Using paid examinees for the purpose of reconstructing an examination. Buying exam material.
Bringing a calculator into the examination room.
By California statute, a joint tenancy may be created in which of the following ways? By transfer from a sole owner to himself or herself and others as joint tenants. By transfer from tenants in common to themselves or to themselves, or any of them, and others as joint tenants. By transfer from joint tenants to themselves, or any of them, and others as joint tenants. Any of the above.
By transfer from a sole owner to himself or herself and others as joint tenants.
San Diego broker Cal Abrams has avoided the technological trend of the past 20 years. Finally, he's jumped online and realized what the buzz is about: He can potentially reach MILLIONS of customers just by running one little advertisement! When he talks to his salespeople, they tell him it's not as easy as that. In California, there are regulations to follow. He's ashamed to admit it, but since he was never interested in the Internet or "that new Web thing," he's not paid much attention to these regulations, and in fact, he had forgotten all about them until his salespeople reminded him. What must Cal do if he wants to advertise on the Internet? He must first send the advertisement to the California DRE for approval, and then use it once it's approved. Cal must file the Approval of Electronic Advertisement Form (AEAF), along with the appropriate filing fee, for the DRE's approval. Once the approval is received, the advertising may begin. If the AEAF is not approved, he may submit a new advertisement within 30 days without paying an additional fee. Cal must be sure to indicate his licensed status on his advertisements. None of the above
Cal must file the Approval of Electronic Advertisement Form (AEAF), along with the appropriate filing fee, for the DRE's approval. Once the approval is received, the advertising may begin. If the AEAF is not approved, he may submit a new advertisement within 30 days without paying an additional fee.
The main purpose of this law is to provide procedures and information to ensure that governmental agencies will consider and respond to the environmental effects of their proposed decisions. This is known as the: California Environmental Quality Act of 1970. California Conservation Act. National Environmental Policy Act. Clean Air Act.
California Environmental Quality Act of 1970.
Chip is a veteran who fought in Desert Storm. He has just retired from the military. He has been told he qualifies for a property tax exemption based on his military service during wartime. Which exemption applies to Chip? Calfornia Homeowner's Exemption The Mello-Roos Community Facilities Act California Military Exemption The Street Improvement Act
California Military Exemption
Captain Canguro's father was a teetotaler to the nth degree; so Canguro was not surprised when his father said he would sell Canguro one of the three properties he owned, provided that Canguro followed the condition set forth in the contract, stating that "no alcohol can be served on the premises at any time." Canguro agreed with this provision and the sale was made. Which of the following statements is most accurate regarding this situation? This type of provision is not legal and therefore the sale is voidable by Captain Canguro. Captain Canguro holds the estate in fee simple defeasible. Captain Canguro has a less-than-freehold interest in the property. Captain Canguro holds the estate Pur Autre Vie, or for the life of another, which means that while he has possessory and some ownership rights, the seller (his father, in this case) may still dictate some of the activities that occur on the property.
Captain Canguro holds the estate in fee simple defeasible.
The legal phrase that describes the right to recover money or other personal property through a judicial proceeding, including the right to recover something under a contract, such as money owed on a note, as well as the right to recover damages for a tort or private wrong, is known as: Choses in action Chattels Chattels real Contract action
Choses in action
In which of the following situations would Pasadena real estate salesperson Connie Lopez, who makes collections on real estate loans, be required to be licensed as a California real estate broker? If Connie makes more than 8 collections per year, or collects more than $30,000.00. If Connie makes more than 12 collections per year, or collects more than $30,000.00. If Connie makes more than 10 collections per year, or collects more than $40,000.00. If Connie makes more than 12 collections per year, or collects more than $40,000.00.
If Connie makes more than 10 collections per year, or collects more than $40,000.00.
Alison Skateland, a real estate broker in Yuba City, California, has recently become interested in the sale of business opportunities -- particularly restaurants and bakeries. The authority to conduct such business is covered under her real estate license, but Alison does need to know the proper way to handle such transactions. Which of the following is NOT an accurate statement about the handling of business opportunities? If real property is involved in the sale, the broker (Alison, in this case) usually treats the sale of the business and sale of the land/building as two separate and concurrent transactions with two concurrent and contingent escrows. The sale of business opportunities may involve the sale of only personal property. Alison, in dealing with the sale of business opportunities, must remember to inform the purchaser of the various governmental agencies that the purchaser should contact for required permits, licenses, and clearances. These agencies include the IRS, State Board of Equalization, State Department of Benefit Payments, State Department of Industrial Relations, and various other county and municipal agencies. The sale of a business opportunity includes the business's stock, trade fixtures, and trade name, a competition agreement, and lease assignment. While such a sale also includes the goodwill of a business, a monetary value cannot be placed on the goodwill.
If real property is involved in the sale, the broker (Alison, in this case) usually treats the sale of the business and sale of the land/building as two separate and concurrent transactions with two concurrent and contingent escrows.
Bob leased an apartment for three years from the Steiners. He was never late on his rent in those three years, kept the apartment immaculate, and never caused a moment of trouble. He has recently purchased his first home and moved out of the apartment. As expected, Bob gave the Steiners sixty days' notice he would be moving and left the apartment in perfect condition. It has been 45 days since he moved out and he's been watching for his security deposit refund to purchase a new sofa. When should he expect his security deposit refunded? If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the landlord should have refunded his security deposit within 21 days of Bob's vacating the property. If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the landlord should have refunded his security deposit within 30 days of Bob's vacating the property. If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the landlord should have refunded his security deposit within 14 days of Bob's vacating the property. None of the Above.
If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the landlord should have refunded his security deposit within 21 days of Bob's vacating the property.
Shakeel and Shaheen have sold their home, made an offer on Derek and Kamisha's home, and the offer was accepted. All the details of the sale have been worked out, agreed upon and signatures obtained. Now, Shakeel and Shaheen must obtain a loan for the property. What is the best term to describe their position in the transaction's timeline? In Contract Chain of Title Abstract and Opinion Both B and C
In Contract
Which of the following statements is accurate regarding escrow services in California? In Northern California, the escrow services are usually performed by independent escrow companies or financial institutions. In Southern California, the escrow services are usually performed by title insurance companies that have extensive escrow departments and many branch offices. In Southern California, the escrow service fees are usually split 50-50 between the buyer and the seller. In Northern California, the escrow service fees are usually paid by the seller.
In Southern California, the escrow service fees are usually split 50-50 between the buyer and the seller.
When two or more people have identical interests in the whole property, with the same rights of possession and the right of survivorship this form of ownership is considered: Community Property. Tenancy in Severalty. Tenancy in Common. Joint Tenancy.
Joint Tenancy.
Ken has just passed his licensing examination. However, he has been notified the DRE will not issue a full-term license. Ken is behind on child support payments and therefore has not complied with a court order to provide these payments. Will Ken ever be able to obtain his license? Ken will not be eligible for a license until he has been current on all child support payments for a minimum of 150 days. Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150-day temporary period. Ken must clear his name and pay his support on time for a minimum of six months to be eligible to receive a full-term license. None of the Above.
Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the 150-day temporary period.
Pauline Chasse has just signed a lease agreement with landlord, Wayne Godbrey to rent a house he owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October 30, 2016) dates, and sets forth the rent amount and due dates and all additional property and personal information required in such a lease. Wayne hands a copy to Pauline, but she notices that he has not signed it. When she comments about this to him, he tells her that signatures are not necessary since the lease is for less than a year. Which of the following is true of this situation? Because the property being leased is located in Northern California, a lease agreement is required to be both written and signed by the lessor if the lease period is for 6 months or more. Therefore, Wayne was incorrect and he must sign the lease. If he does NOT sign the lease, then it will remain valid, but will not be court-enforced, should Pauline default on any of the related provisions. Leases of less than one year are not required to be in writing. However, if a lease IS in writing, then it must be signed by the lessor (in this case, Wayne). Leases of less than one year are not required to be in writing; but if there is a written lease, then it must be signed by both the lessee and lessor. None of the above.
Leases of less than one year are not required to be in writing. However, if a lease IS in writing, then it must be signed by the lessor (in this case, Wayne).
In California, property is generally owned in one of six distinct forms of ownership. Which of the following is NOT one of these six forms? Severalty Tenancy in Partnership Community Property Life Estate.
Life Estate.
Napa resident Maria Gonzales, a newly-licensed real estate broker, has just negotiated her first trust deed loan for her client, Isaac Mahrsan. The loan's term is 5 years, and it is Isaac's first loan. Under Article 7 of the Mortgage Broker Law in California, Maria knows that certain regulations have been set forth regarding her commission in such a transaction. What is the maximum commission for loans subject to Article 7, for first loans? Maria's maximum commission on this loan is 5 percent of the principal, which applies to loans of 5 years or less. Maria's maximum commission on this loan is 5 percent of the principal, which applies to loans of 10 years or less. Maria's maximum commission on this loan is 5 percent of the principal of a loan, which applies to loans of 3 years or more. Maria's maximum commission on this loan is 10 percent of the principal of a loan, which applies to loans of 3 years or more.
Maria's maximum commission on this loan is 10 percent of the principal of a loan, which applies to loans of 3 years or more.
Appraiser Louis finds a property located in the same neighborhood as the appraised property, and wants to use it as a comparable sale. The comparable has more bedrooms than the subject, one less bath, and one less garage. The appraiser will have to subtract the extra bedrooms from the comparable, add a bathroom to the comparable, and add a garage to make the properties equal. What type of approach to value has Louis utilized? Market data approach. Cost approach. Summation approach. Reproduction cost.
Market data approach.
Christina is planning on getting married in the next year. She is a very successful business owner and is planning on buying some vacation property on the coast. She asks her agent, Martina, for advice on how she should take title to this new property. Should she hold the title alone, or jointly with her fiance? How should Martina advise? Martina should advise Christina to protect her future assets and hold title separately due to California's community property laws. Martina should simply tell Christina to consult her attorney on this matter. Martina could discuss with Christina what she knows in reference to California community property laws. She should not offer any advice on this subject except to consult an attorney to obtain legal counsel. None of the Above.
Martina could discuss with Christina what she knows in reference to California community property laws. She should not offer any advice on this subject except to consult an attorney to obtain legal counsel.
Due to the subdividing of lots on the lake, Jim's property is surrounded on three sides by Louise's property. The only other boundary is the lake. Jim can only get to his home by driving up Andrea's driveway and behind her lake home to get to his own. How was the easement in this situation created? Implication Reservation Necessity Expressed
Necessity
Which of the following listing agreements is illegal in most states? Open Listing Exclusive Agency Listing Net Listing Agency Coupled with Interest
Net Listing
Both the federal and California governments have the right to take private property for a necessary use, IF they pay the owner "just compensation" for doing so. In addition to the payment of just compensation, if the government takes a property in this way, which of the following rules apply? The property must be built within the last 20 years. The owner must have due process in court. The property must be taken to be used for the public good or use, and the owner must have due process in court. No other regulations apply; this is a government-given right of the government to take a property, and the owner only need to be paid the appropriate compensation to fulfill the requirements.
No other regulations apply; this is a government-given right of the government to take a property, and the owner only need to be paid the appropriate compensation to fulfill the requirements.
Which of these private properties might be exempt from the governmental use of Eminent Domain? A home with a chronological age of 30 years or greater. A property worth in excess of $1 million. A home with a chronological age of 50 years or greater. No private property is exempt from this government power.
No private property is exempt from this government power.
Which of the following are not really deeds? Gift Deeds. Grant Deeds. Reconveyance Deeds. Tax Deeds.
Reconveyance Deeds.
Deanna is buying one of Kay's fur coats and several handbags. They are old friends and sometimes purchase each other's items instead of selling to a consignment shop. Deanna agrees to pay Kay $650.00 for the items, writes a check, and collects her purchased items. Is this transaction legitimate? Yes, it is a private transaction between two adults where both are in agreement of the terms. No, in the State of California, an agreement for the sale of real property must be in writing if the amount or value of the property exceeds $950.00. No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.00. No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $600.00.
No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.00.
Is it permissible for a broker to accept lender funds unless that broker owns the loan? Which requirement under the California Business and Professions Code addresses the question? Yes, it is permissible for a broker to accept those funds. They will eventually be used for a loan or to buy a specific note. The requirement is outlined in Article 5. Yes, it is permissible for a broker to accept those funds. They will eventually be used for a loan or to buy a specific note. The requirement is outlined in Article 6. No, it is not permissible for a broker to accept those funds. The requirement is outlined in Article 7. No, it is not permissible for a broker to accept those funds. The requirement is outlined in Article 5.
No, it is not permissible for a broker to accept those funds. The requirement is outlined in Article 5.
Missy, a licensee, desperately wants to be appointed the next California Real Estate Commissioner. For the three years she has held her California real estate license, she has been ranked in the top five in new home sales in her office. Missy has never had her license suspended or revoked, and prides herself on being ethical in every transaction and interaction. Does Missy have a chance? Yes, she has a chance to be appointed to the post of California Real Estate Commissioner. The only requirements are to hold a California real estate license and be actively involved in the profession. No, not at this point in her career. In order to be appointed to the post by the Governor, she must have a minimum of five years' experience as a real estate broker. No, not at this point in her career. In order to be appointed to the post by the governor, she must have a minimum of ten years' experience as a real estate broker. No, not at this point in her career. In order to be elected to the office by her peers, she must have a minimum of five years' experience as a real estate broker.
No, not at this point in her career. In order to be appointed to the post by the Governor, she must have a minimum of five years' experience as a real estate broker.
Johnson Bailey and Kailey Clark's corporation, Bailey-Clark Financial, is branching out into the field of escrow handling. They know the corporation must be licensed by the State of California. There are a total of 5 officers, trustees, and other employees who will have access to the money or negotiable securities in the possession of the corporate license, and have furnished a bond of indemnification against loss. Has the corporation fulfilled all necessary licensing requirements to work in escrow handling? No, they must also make sure that all monies deposited in escrow be placed in a trust account that is exempt from execution or attachment. No, they must also be able to show that the company is financially solvent. No, they must also meet the requirements in Answers A and B. In addition, the corporation must furnish a surety bond in the amount of $25,000.00, or more, based upon yearly average trust fund obligations. Yes, the corporation has filled all necessary obligations to be licensed.
No, they must also meet the requirements in Answers A and B. In addition, the corporation must furnish a surety bond in the amount of $25,000.00, or more, based upon yearly average trust fund obligations.
Throughout California, there are agencies within the city/county government whose employees include professionally trained planners. These agencies are known as: Housing commissions. Planning departments. Planning boards of supervisors. Building Officials Conference of America commissions.
Planning departments.
The Federal Reserve needs to tighten the economy. Which of the following actions would NOT act to achieve this purpose? Increasing discount rates. Raising the reserve requirement. Decreasing discount rates. Selling securities.
Raising the reserve requirement.
Wallace and Melissa live in a small rural community of just over 15,000. They want to purchase a home and start a small home-based business. At the current time, they have a very limited income and need their own home. Where is the best place for Wallace and Melissa to turn for a home loan? Rural Economic and Community Development (RECD) VA FHA Cal-Vet
Rural Economic and Community Development (RECD)
San Luis Obispo broker Gail Hayden is finally doing some long-overdue office cleaning. She comes across records dated all the way back to 8 years ago. Which of the following applies to this situation? She can destroy them, since the law in California states that all brokers' records must only be kept for a period of 3 years. She can destroy them, since the law in California states that all brokers' records must only be kept for a period of 5 years. She must still keep them, because the law in California requires that brokers' records be kept for a minimum of 8 years. She must still keep them for another couple of years, because the California law requires that all brokers' records be maintained for a minimum of 10 years.
She can destroy them, since the law in California states that all brokers' records must only be kept for a period of 3 years.
Ross, a newly licensed residential real estate appraiser, is on his way to appraise his very first piece of property. He is nervous on the way to the property and is going through the appraisal process in his head. Please help Ross put the appraisal steps in order. State the problem; Gather, record and verify the necessary data; Analyze and interpret; Neighborhood analysis; Neighborhood cycle; and Site analysis. Gather, record and verify the necessary data; Analyze and interpret; State the problem; Neighborhood analysis; Neighborhood cycle; and Site analysis. Gather, record and verify the necessary data; State the problem; Analyze and interpret; Neighborhood analysis; Neighborhood cycle; and Site analysis. None of the Above.
State the problem; Gather, record and verify the necessary data; Analyze and interpret; Neighborhood analysis; Neighborhood cycle; and Site analysis.
A subdivision has a homeowner association rule that states there can be no above ground pools in the subdivision. The Curtis family has an above ground pool in their backyard. Four years later, the new association president threatens to take the family to court for violating the subdivision regulations. Why doesn't the new president have a case? Laches Statute of Limitations Options Bylaws
Statute of Limitations
Ted and Lisa are selling their home and have signed a listing agreement. Client or customer? Steven visits Ted and Lisa's open house, and he is interested in purchasing their home. What happens next? Is Steven a client or customer? Ted and Lisa are customers, and Steven is a client. The listing agent must disclose to Steven that Ted and Lisa are customers. Ted and Lisa are clients, as is Steven. The listing agent must disclose to Steven that Ted and Lisa are also clients. Ted and Lisa are customers, and Steven is a client. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships. Ted and Lisa are clients, and Steven is a customer. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships.
Ted and Lisa are clients, and Steven is a customer. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships.
When Jim, Jill, and Jeri take ownership to a Bakersfield home, they hold their ownership concurrently. Jim has the greatest proportion, with 45%, while Jill holds 30% and Jeri the last 25%. They each have the right to individually possess, will, or sell their interest. This is known as: Community property with the right of survivorship. Tenancy in Severalty. Tenancy in Common. Joint Tenancy.
Tenancy in Common.
Barney Dinesh has served two years of active duty for the United States Army in the Middle East. He is still on active duty, though he is now stationed stateside in California. He and his new wife, Alma, have found a home they both love, and their agent tells them about the Cal-Vet loan, saying that he believes Barney would qualify for this. What are the main requirements for such a loan, and does Barney (from the information given here) seem to qualify for the Cal-Vet program? The Cal-Vet loan requires that the veteran have served a minimum of 120 days' active duty; provide an affidavit if on active duty (or an honorable discharge if not active); and a $500.00 deposit. Provided Barney can procure this affidavit, and the deposit money, it appears that he would qualify. The Cal-Vet loan program requires that the veteran have served a minimum of 120 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is no longer active); and be willing to buy a California home or farm. Based on the information provided herein, Barney should qualify for the program. The Cal-Vet loan program requires that the veteran have served a minimum of 90 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is no longer active); and be willing to buy a California home or farm. Barney would appear to qualify, based on the given information. The Cal-Vet loan requires four essentials: (1) The veteran must have served a minimum of 30 days' active duty; (2) The veteran must provide a Statement of Service if on active duty (or an honorable discharge if he is no longer active); (3) The veteran must be willing to buy a California home or farm; and (4) Most importantly, the veteran must meet the requirements for a Department of Veterans Affairs (VA) loan before he can be approved for a Cal-Vet loan (This doesn't mean he is going to take out a VA loan, but merely that he meets the federal VA standards). There is not enough information given in the question to determine whether or not he'd meet the federal VA qualifications; so the second part of this question cannot be answered.
The Cal-Vet loan program requires that the veteran have served a minimum of 90 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is no longer active); and be willing to buy a California home or farm. Barney would appear to qualify, based on the given information.
The regulations regarding both advertising and doing real estate business over the Internet have been set forth in: The Code of Federal Regulations The Commission's Regulations. ARELLO regulations. The Federal Fair Housing Administration.
The Commission's Regulations.
In 1980, an important piece of environmental legislation was passed. This legislation established a fund called the Superfund, to clean up uncontrolled hazardous waste sites and to respond to spills, and it also created a process for identifying potential responsible parties (PRPs) and ordering them to take responsibility for the cleanup action. What was the name of this law? The Hazardous Waste Act, or HWA. The Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA. The California Environmental Protection Agency Act, or CEPAA. The Uniform Commercial Code Act, or UCCA.
The Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA.
Which of the following is NOT one of California's sets of base lines and meridians? The Humboldt Base Line and Meridian. The Mt. Diablo Base Line and Meridian. The San Bernardino Base Line and Meridian. The Los Angeles Base Line and Meridian.
The Humboldt Base Line and Meridian.
A law used to finance public services, such as waste treatment plants, parks, and schools, in newly developed areas, can result in extra-high taxes, in addition to the normal property taxes, and MUST be made known to any buyer before a purchase takes place. This law is: The Street Improvement Act of 1911. The Mello-Roos Community Facilities Act of 1982. Proposition 60. Proposition 90.
The Mello-Roos Community Facilities Act of 1982.
Long Beach salesperson Eric Janey is providing sellers Julie and Zach Roberts with the necessary disclosures they must be given upon the sale of real property. Which of the following is NOT a disclosure that is given upon the sale of real property? Mold Disclosure. Lead-based paint Disclosure Natural Hazards Disclosure. The Radon Detection Test Disclosure.
The Radon Detection Test Disclosure.
Janet is a broker who negotiates a number of loans to specific subdivisions. Last year, she took part in 27 loans to homeowners in one subdivision. Due to this large number of loans to a subdivision, Janet has to report loan activities to the California BRE. What is the name of this reporting process, how often does it take place, and what is an additional requirement for making these reports? The annual and quarterly process is Uniform Reporting. Additionally, if a broker negotiates more than $5,000,000.00 in loans annually, they must take part in Uniform Reporting. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in Threshold Reporting. The annual and quarterly process is Trust Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in Threshold Reporting. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he/she must take part in Threshold Reporting.
The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he/she must take part in Threshold Reporting.
In 2013, Jack and Shirley Wright moved from Riverside, in Southern California, up to Santa Clara, in Northern California, when Jack's company opened a new branch office there. They decided to rent for a while so they could get to know the area before buying a home. Three weeks ago, they finally found and put a contract on a lovely 3-bedroom ranch, and the sellers accepted the first offer. They took that as a good sign, but now it's only 5 days until the close of escrow and they still haven't signed the escrow papers yet. In fact, they aren't due to sign the escrow papers until the day before the actual close of escrow. The Wrights are under the impression that something is wrong, because when they sold their last home, the escrow instructions had to be signed by both parties to the transaction immediately after they all signed the purchase agreement--about 60 days ahead of the actual close of escrow date. Which of the following is true of this situation? Their current agent has violated his fiduciary duties to them because he is mishandling their finances, and putting off handling the escrow until the last minute, thereby risking their new home and monies. Their agent in Riverside was simply being cautious by handling the escrow so early in the game, because in California, escrow signing generally takes place in the last 2 weeks prior to the actual close of escrow. The escrow practices in Southern California differ from those in Northern California. In Southern California, the escrow instructions are signed by the buyer and seller shortly after they've signed the purchase agreement, just after the start of escrow, which is about 60 days prior to the actual close of escrow. In Northern California, the escrow instructions are usually not signed until one or two days just before the close of escrow. As of December 2014, the escrow practices have been changed from what they were in 2013 (when the Wrights sold their previous home), to stipulate that the escrow signing date and location are to be determined by both the buyer and the seller, as well as to the broker who is in charge of handling the escrow proceedings. Therefore, there is no specific regulation that sets forth the date or time for such proceedings. However, their agent was negligent in not explaining this to them, as well as not asking for their input into the signing date.
The escrow practices in Southern California differ from those in Northern California. In Southern California, the escrow instructions are signed by the buyer and seller shortly after they've signed the purchase agreement, just after the start of escrow, which is about 60 days prior to the actual close of escrow. In Northern California, the escrow instructions are usually not signed until one or two days just before the close of escrow.
Which of the following conditions does not apply in converting a mobile home into real property? The homeowner must obtain a building permit. The home must be placed on a permanent foundation. The homeowner must obtain a Certificate of Occupancy. The homeowner is required to have a tag guaranteeing the mobile home's proper construction.
The homeowner is required to have a tag guaranteeing the mobile home's proper construction.
What is the major difference between an Estate for Years and an Estate from Period to Period? The major difference is in an Estate for Year, the tenant must give notice to vacate, whereas in an Estate from Period to Period, there is no need to give any notice. The major difference is in an Estate from Period to Period, the tenant must give notice to vacate, whereas in an Estate for Years, there is no need to give any notice. The major difference is, in an Estate for Years it is used exclusively for commercial leases. There are no major differences between the two.
The major difference is in an Estate from Period to Period, the tenant must give notice to vacate, whereas in an Estate for Years, there is no need to give any notice.
Newlyweds Andrew and Kimmie Briggs enjoy sparring over the details of life. They squabble good-naturedly over a game of Scrabble, the pronunciation of French words, and now, over the type of home loan they're getting on their first home. They know it's FHA, but neither is sure WHAT the FHA has to do with the loan. An FHA loan means: The money is loaned by the Federal Housing Administration. The money is insured by the Federal Housing Administration. The money is guaranteed by the Federal Housing Administration. The Federal Housing Administration builds homes and loans money.
The money is insured by the Federal Housing Administration.
Along a non-navigable stream, does an owner own the land, the water, both, neither? What is this right? The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right. The owner owns to the water's edge. It is a Riparian Right. The owner owns to the average high water mark. It is a Littoral Right. The owner owns the land and the water to the center of the stream. It is a Riparian Right.
The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right.
When an owner dies without a will or heirs, what happens to the property and why? The property is abandoned until it can be sold by the state. If there is not an owner, the state takes ownership. There is an auction with the proceeds going to the state. If there is not an owner, the state takes ownership. The property is transferred to the nearest living relative. Property must have an owner. The property is transferred to the state. Property cannot be without an owner.
The property is transferred to the nearest living relative. Property must have an owner.
Tamara and her children live in a subdivision with a tennis court and swimming pool. Her children are thrilled to be able to use these wonderful amenities. Who actually owns the tennis court and swimming pool? Tamara and her children reside in which type of common interest development? The tennis court and swimming pool are owned by the investors in the subdivision development. It is a Planned Unit Development. The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development. The tennis court and swimming pool are owned in common by all the property owners. It is a subdivision. None of the Above.
The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development.
Ben and Amanda are interested in a vacant, undeveloped lot. They are going to continue to live in their current home, pay off the lot's loan, and then build a new home on the lot. Before closing on the purchase of the lot, they discover the zoning regulations permit nightclubs to be built in the immediate area. They specifically asked the broker about this issue and were told there was no reason to worry. What are Ben and Amanda's options, if any? They do not have any options and must go forward with the sales contract or face a possible suit for breach of contract. It is the word of the broker against theirs. If they did not get the broker's assurance in writing, they have to proceed with the contract or face a suit. They may rescind the transaction based on the misrepresentation of the broker. Both A and B
They may rescind the transaction based on the misrepresentation of the broker.
Which of the following statements is NOT accurate about the California Disclosure Regarding Real Estate Agency Relationship Form? It must be signed before the seller signs any listing agreement with the agent, or, in the case of the buyer, before that buyer signs the purchase contract. This form is required for leases of residential property for more than one year and for the sale of a mobile home, IF the mobile home is offered for sale or sold through a real estate agent. California law does NOT require that all real estate agents provide a written disclosure to the buyer OR the seller. California law requires that all real estate agents provide a written disclosure to the buyer AND the seller, regardless of which party to the transaction the agent represents.
This form is required for leases of residential property for more than one year and for the sale of a mobile home, IF the mobile home is offered for sale or sold through a real estate agent.
Ensuring consumers are fully informed of all finance charges and aware of the true annual interest rate are requirements of which regulation? Article 7 RESPA Truth in Lending Uniform Settlement Statement
Truth in Lending
Sacramento artist S.C. Heet has transferred a portion of her property, via a grant deed, to Cameron Dulle. However, this deed did not set forth in writing the two primary warranties Cameron should have on the property: first, that S. C. has not already transferred the title to another person; and, second, that the estate is free of any encumbrances, other than what has been disclosed to the grantor. Which of the following is true of this situation? Cameron must file a quiet the title lawsuit in order to alter the transfer to include these warranties. Cameron must accept the situation as is, unless he can convince S.C. to alter the transfer willingly. Under a grant deed, the two warranties -- that S. C. has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed -- are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present. None of the above
Under a grant deed, the two warranties -- that S. C. has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed -- are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present.
Timothy has been hired by the estate of Tyler Wilbanks, who is recently deceased. Timothy has Power of Attorney and will be handling all the real estate affairs of the deceased estate. Which type of agent is Timothy? Special Agent Single Agent Universal Agent Agency Coupled with Interest
Universal Agent
In order to have a joint tenancy and the right of survivorship, four unities must take place. Which one of the following is NOT one of these unities? Time Title Possession Vesting
Vesting
Tracy and Darnell are buying a home. They have a 15% down payment and have qualified for a thirty year fixed rate mortgage. Will Tracy and Darnell have to pay PMI? Yes, private mortgage insurance is required for all loans with less than 25% down payment. No, private mortgage insurance is only required for all loans with less than 15% down payment. No, this is Tracy and Darnell's second mortgage for the purchase of a new home. Private mortgage insurance is only for first-time buyers with less than a 20% down payment. Yes, private mortgage insurance is required for all loans with less than 20% down payment.
Yes, private mortgage insurance is required for all loans with less than 20% down payment.
