PRACTICE EXAM 2 1 Two friends hold titel as joint tenants. One borrowed one borrowed money and executed a deed if trust againt the home. In terms of affecting title this action could: A WRONG Destroy one of the four unities of joint tenants B CORRECT Place the beneficiary in a precarious position should the borrower die before the debt is paid C WRONG Invalidate the note since a lien can be attach only to the undivided interest of all joint tenants Create a security interest in all other real property in which the borrower may have an interest 2 Joint tenant estate held by two joint tenants is severed and ended by the following EXCEPT: A CORRECT By the execution of a mortgage or deed of trust by one joint tenant creating a lien against his interest B WRONG A foreclosure by one of the joint tenants C WRONG One of the joint tenants transfers his interest to a third party One of the joint tenants sells his interest 3 A man own six separate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he will obtain will probably be: A WRONG A mortgage B WRONG A trust deed C CORRECT A blanket mortgage D WRONG A security mortgage 4 All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant: A WRONG Sells his or her share B WRONG Transfers his or her share C CORRECT Mortgages his or her share D WRONG Deeds his or her share to a co-owner 5 A conflict in a contract between buyer and seller and instructions to return the deposit from the trust account, the broker unable to resolve the problem refers it to a third person by: A CORRECT An interpleader action B WRONG A court action C WRONG A Judicial action An attorney 6 A contingency in a contract may be created by: A WRONG Nature of the contingency B WRONG Duration of the contingency C WRONG Method how to remove the contingency All of the above 7 Under the real estate law if an agent is found guilty of discrimination the real estate commissioner will: A CORRECT Revoke or suspend the agents license B WRONG Cancel the agents license for 150 days C WRONG Suspend the agents license for 3 months Suspend the agents license for 1 year 8 Which of the following represents misrepresentation: A WRONG Material to the contrary B WRONG Information known by the broker that is false C WRONG False information to bound a buyer to a contract All of the above 9 Hadley was not successful selling the property so he decided to buy the property himself. Broker Hadley must present to the seller: A WRONG His interest on the property B WRONG The net amount to the seller C WRONG Commission disclosure All of the above 10 What is a deed: A WRONG To transfer title B WRONG To be acknowledged C CORRECT The evidence in change of title or an interest D WRONG To be recorded in the county recorders office to be valid 11 Before his death Westland had several listings now Westlands daughter is taking over the business in regards to listing she must: A CORRECT Automatically cancelled and she needs to re-list the properties from the clients B WRONG Automatically cancelled C WRONG May be cancel only in writing and approved by the daughter Must be cancel within 24 hours or the listings are automatically transfer to the daughter 12 A Hispanic buyer wants to be shown property in certain neighborhoods. The real estate agent should: A CORRECT Show him properties as any other client B WRONG Show him properties only in areas where he wants to look C WRONG Provide information about the ethnicity of the neighborhood Show properties in areas where Hispanic population is greater 13 An example of police power is: A CORRECT Zoning TO VIEW YOUR ANSWER DOUBLE CLICK ON A,B,C,OR D D WRONG D WRONG D WRONG D CORRECT D WRONG D CORRECT Broker Hadley took a listing from Watanabe for 30 days. After the 27 th day D CORRECT D WRONG D WRONG
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PRACTICE EXAM 2
1 Two friends hold titel as joint tenants. One borrowed one borrowed money and executed a deed if trust againt
the home. In terms of affecting title this action could:A WRONG Destroy one of the four unities of joint tenantsB CORRECT Place the beneficiary in a precarious position should the borrower die before the debt is paidC WRONG Invalidate the note since a lien can be attach only to the undivided interest of all joint tenants
Create a security interest in all other real property in which the borrower may have an interest
2 Joint tenant estate held by two joint tenants is severed and ended by the following EXCEPT: A CORRECT By the execution of a mortgage or deed of trust by one joint tenant creating a lien against his interestB WRONG A foreclosure by one of the joint tenantsC WRONG One of the joint tenants transfers his interest to a third party
One of the joint tenants sells his interest
3 A man own six separate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he will obtain will probably be:
A WRONG A mortgageB WRONG A trust deedC CORRECT A blanket mortgageD WRONG A security mortgage
4 All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant:
A WRONG Sells his or her shareB WRONG Transfers his or her shareC CORRECT Mortgages his or her shareD WRONG Deeds his or her share to a co-owner
5 A conflict in a contract between buyer and seller and instructions to return the deposit from the trust account, the broker unable to resolve the problem refers it to a third person by:
A CORRECT An interpleader actionB WRONG A court actionC WRONG A Judicial action
An attorney
6 A contingency in a contract may be created by:A WRONG Nature of the contingencyB WRONG Duration of the contingencyC WRONG Method how to remove the contingency
All of the above
7 Under the real estate law if an agent is found guilty of discrimination the real estate commissioner will:
A CORRECT Revoke or suspend the agents licenseB WRONG Cancel the agents license for 150 daysC WRONG Suspend the agents license for 3 months
Suspend the agents license for 1 year
8 Which of the following represents misrepresentation:A WRONG Material to the contraryB WRONG Information known by the broker that is falseC WRONG False information to bound a buyer to a contract
All of the above
9Hadley was not successful selling the property so he decided to buy the property himself. Broker Hadley must present to the seller:
A WRONG His interest on the propertyB WRONG The net amount to the sellerC WRONG Commission disclosure
All of the above
10 What is a deed:A WRONG To transfer titleB WRONG To be acknowledgedC CORRECT The evidence in change of title or an interest D WRONG To be recorded in the county recorders office to be valid
11 Before his death Westland had several listings now Westlands daughter is taking over the business in regards to listing she must:
A CORRECT Automatically cancelled and she needs to re-list the properties from the clientsB WRONG Automatically cancelledC WRONG May be cancel only in writing and approved by the daughter
Must be cancel within 24 hours or the listings are automatically transfer to the daughter
12 A Hispanic buyer wants to be shown property in certain neighborhoods. The real estate agent should:
A CORRECT Show him properties as any other clientB WRONG Show him properties only in areas where he wants to lookC WRONG Provide information about the ethnicity of the neighborhood
Show properties in areas where Hispanic population is greater
13 An example of police power is:A CORRECT Zoning
TO VIEW YOUR ANSWER DOUBLE CLICK ON A,B,C,OR D
D WRONG
D WRONG
D WRONG
D CORRECT
D WRONG
D CORRECT
Broker Hadley took a listing from Watanabe for 30 days. After the 27th day
D CORRECT
D WRONG
D WRONG
B WRONG CondemnationC WRONG Eminent domain
Inverse condemnation
14 Which of the following may be attach to the landA WRONG TreesB WRONG BuildingsC WRONG Water rights
All of the above
15 The agent who will earn a commission is the one thatA WRONG Signed the purchase agreementB CORRECT Communicated the offer and the acceptance from seller to buyerC WRONG Communicated the offer to the seller
Accepted a deposit first
16 In a new developed subdivision, The Real Estate Commissioner was informed of misrepresentations made by the developer. The commissioner may stop the sale of more lots by:
A WRONG Revoking the final public reportB WRONG Filing an accusationC WRONG Suspending the developers contractors license
Issuing a desist and refrain order
17 Which of the following must be given to a buyer of a condominium unit:A WRONG Copy of the CC and R’sB WRONG Copy of the by lawsC WRONG Copy of the most recent financial statement of the association
All of the above
18 The placement of a building on the land is known as:A CORRECT OrientationB WRONG TopographyC WRONG Elevation
Foundation plan
19 A binding contract represents:A WRONG An offer and deliveryB CORRECT An offer and acceptanceC WRONG Acceptance from buyer
Acceptance from seller to sellers agent
20 CPI refers to:A WRONG Listing agreementsB WRONG Purchase agreementsC WRONG Manufacturing
Commercial leases
21 Who pays the service charge under a FHA loan:A CORRECT The sellerB WRONG The buyerC WRONG Both buyer and seller
The lender
22 When comparing FHA and conventional loans. Conventional loans offer:A WRONG Higher loan to value ratiosB WRONG lower paymentsC WRONG lower interest rates
Lower loan to value ratios
23 A commission to an agent may be in the form of:A WRONG A noteB WRONG A trust deedC WRONG Cash
All of the above
24 A home sold for $178,000 and leased at $1200. If another home is leased at $1,300 the value is:
A CORRECT 193000B WRONG 136000C WRONG 200000
190000 $178,000 / $1,200= 148.33148.33 X $1,300= 192833
25 The right of an interest in real property is represented by:A CORRECT Quite title actionB WRONG A trust deedC WRONG A quitclaim deed
Mortgage
26 A brother and sister own property as joint tenants. The brother died and left un- secure debts and died penniless the title to the sister is now.
A WRONG The sister owns title as tenants in commonB CORRECT Free and clear of debts from the brotherC WRONG The sister has a lien on the property from the debts from the brother
The sister has to pay only half of the brothers debts
27 Which of the following best refers to sellers market:A WRONG Causes prices to drop as demand decreased and supply increasesB CORRECT High prices of a product with demand and supply lagsC WRONG Demand and supply of a product with a decrease of buyers
D WRONG
D CORRECT
D WRONG
D CORRECT
D CORRECT
D WRONG
D WRONG
D CORRECT
D WRONG
D CORRECT
D CORRECT
D WRONG
D WRONG
D WRONG
Decrease on land and construction
28 A real estate broker discovers that one of the agents was receiving referral fees from a lender that they do business with. The broker fired the agent and warned the other agents not to receive any referrals according to the real estate law:
A CORRECT Both broker and sales person may be subject for prosecutionB WRONG Only the agent will prosecuted by the department of real estateC WRONG Only the broker will be prosecuted by the department of real estate
The broker’s conduct is acceptable and he may receive any referral fees
29 Buyer and seller decided to cancel a transaction. The seller instructed the broker to return the buyer’s deposit. The broker should.
A WRONG Return the deposit and sue buyer for his commissionB WRONG Return only half of the deposit to the buyerC CORRECT Return the deposit as instructedD WRONG The agent may collect his commission in court
30 A document use to represent another person:A WRONG A power of attorneyB WRONG A grant deedC WRONG A reconveyance deed
Attorney in fact
31 In regards to appraisal all of the following are true except:A WRONG The cost approach is used in new constructionB WRONG The cost approach is used for special propertiesC WRONG The cost approach is used for commercial building
The cost approach sets thed lower limits of value
32 Which of the following policies covers all risks:A WRONG A Homeowners insuranceB WRONG A Extended policyC WRONG A Standard policy
No policy covers everything
33 When appraising an old residential property in regards to periodic tenancy:A CORRECT Compare to rentals and comparables in the areaB WRONG Is determine by square footageC WRONG According to the type of neighborhood
Is obtained from the assessors value
34 Bonds, deed of trust and notes held by a third party is known as:A WRONG BeneficiaryB WRONG LenderC CORRECT Escrow
Trustee
35 A contract replace entirely by a new one is known as:A WRONG An AmendmentB WRONG A ReplacementC CORRECT A NovationD WRONG A Renewal
36 Fuentes purchased Browns house and agreed to assume the existing mortgage:Which of the following is true:
A CORRECT Brown is relieved from future liabilitiesB WRONG Brown is liable for the loanC WRONG Fuentes is not primarily responsible for the loan
Brown and Fuentes both are liable
37 Which of the following will determine if an item is a fixture Except:A WRONG IntentionB WRONG AgreementC CORRECT CostD WRONG Relationship
38 Which of the following will determine if an item is a fixture except:A WRONG IntentionB WRONG AgreementC CORRECT TimeD WRONG Relationship
39 A commission on the sale of a property through probate will be determine by:A CORRECT The court orderedB WRONG The real estate commissionerC WRONG The Board of directors
The administrator
40 A voidable contract is:A WRONG Valid only when is signed, but for some reason it cannot prove by either partyB WRONG Contains all legal requirements but may be cancel by anyoneC CORRECT Is valid and enforceable on its face, but it may be rejected by one of the partiesD WRONG Is a contract with no legal effect
41 When comparing real property to personal property:A CORRECT Inmovable by lawB WRONG MovableC WRONG Personal exclusively
Transferable by a bill of sale
D WRONG
D WRONG
D CORRECT
D CORRECT
D CORRECT
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
42 A standard policy of title insurance will cover against:A WRONG Property linesB WRONG ZoningC CORRECT Legal incompetence of the grantorD WRONG Property survey
43 Which of the following is not a lien:A WRONG TaxesB WRONG Trust deedC WRONG Judgment
Restrictions
44 Under the income tax law a sales person is:A WRONG Employee of the broker he/she is permitted to work forB CORRECT Self employed contractorC WRONG Employee of the broker and the broker must pay for medical insurance
Self employed and employee of the broker
45 “As Is” is permitted when:A CORRECT A buyer is fully informed about known defects before bound to contractB WRONG Only if buyer ask for a transfer disclosureC WRONG The property is financed through a private investor
Only if the property needs major repairs
46 An appraisal is least concerned with general state of the economy in appraisingA WRONG Shopping centerB WRONG Electronic assemblyC CORRECT Medical dental buildingD WRONG Industrial park
47 The maximum amount that may be recovered from the Recovery Trust Fund is:
A WRONG 20000B WRONG 10000C CORRECT 100000D WRONG 50000
48 A blind ad it doesn’t identify the:A CORRECT BrokerB WRONG SalespersonC WRONG Seller
Buyer
49 A property under default possession of the property is held by:A WRONG TrusteeB CORRECT TrustorC WRONG Beneficiary
Mortgagee
50 The earthquake hazard report must be issue to properties in:A WRONG All CaliforniaB CORRECT All countiesC WRONG All cities
Only to specific types of structures on a earthquake zones
51 The maximum value of a property do to architectural design and stability of neighborhood:
A WRONG Progression- regressionB CORRECT ConformityC WRONG StabilityD WRONG None of the above
52 A contractor was installing a new hardwood floor and was unpaid and place a lien on the property. The lien becomes effective on:
A WRONG After the installation of the hardwood floorB CORRECT Commencement of the installation of the hardwood floorC WRONG The date recorded at recorders office
3 days after the installation of the hardwood floor
53 A master plan shows:A WRONG Streets and freewaysB WRONG Residential and commercial zoningC WRONG Safety
All of the above
54 The ordinary repairs on a property are known as:A WRONG RepairsB WRONG RehabilitationC CORRECT Cosmetic maintenanceD WRONG Wear and tear
55 The Standard policy of title insurance consist of three processes. Which of the following is not one the three processes:
A CORRECT Determination of correct boundary lines and property surveyB WRONG Amount of insurance requiredC WRONG Title investigation
Protection of title losses
56 When a property is being sold through an option the broker must inform to the client that he is acting as a:
A CORRECT A principal
D CORRECT
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D CORRECT
D WRONG
B WRONG An agentC WRONG A broker
A seller
57 Capitalization is a process use by real estate appraiser to:A CORRECT Converts income into valueB WRONG Finds the gross income of a propertyC WRONG Establishes the cost of capital
Depreciation value
58 Conditions affecting interest rates and the availability of loan funds vary over time. When would it be advantageous for a lender to waive a prepayment penalty clause contained in a promissory note:
A WRONG When loans are available with low interest ratesB WRONG In a deflationary economyC CORRECT In a tight money market where there is a lack of funds available for real estate loansD WRONG When the FED lowers his reserve requirements
59 When a broker is representing both buyer and seller on an exchange real estate transaction and the broker doesn’t disclose his dual agency to the parties the remedy by the buyer and seller are:
A WRONG No commissionB WRONG Cancel the transactionC WRONG Sue for criminal and civil actionD CORRECT All of the above
60 When can an agent refuse to transmit an offer:A WRONG When the seller has accepted a back up offerB WRONG When the agent is acting as a gratuitous agentC WRONG To anyone at any time
When the agent is acting on express instructions from the principal
61 Which of the following is not a component when operating net income:A CORRECT Personal income taxB WRONG Cash flowC WRONG Operation expenses
Ordinary income
62 Broker Taylor listed a property for $55,000 with instruction from the seller that the minimum down payment was not to exceed 23%. The broker then presented an offer with all cash and the seller rejected the offer. What should the broker do:
A CORRECT The seller can turn down the offer without liability, and pay no commission because the offer did not meet the requirements in the listingB WRONG The broker is entitle to a full commissionC WRONG The broker is entitle to a commission based on the appraised value
The broker is entitle only to a 23% of the appraised value
63 A broker has a listing and one of his sales persons sells the listing. This is known as:
A CORRECT Dual agencyB WRONG Single agencyC WRONG Single agency for the buyer
No agency
64 Deed covenants that limited the conveyance of properties to persons of the minority group, these restrictions:
A CORRECT Has no effect on the conveyance covenant is unenforceableB WRONG Enforceable if buyers prefer to have themC WRONG Valid only buyer and seller may cancel them
May be cancel by escrow
65 If the comparable properties has an item that is not present on the subject property:
A WRONG Add from the subject property to the comparablesB CORRECT Subtract from the comparable properties to the subject propertyC WRONG Add from the comparables to the subject property
Add to the basis of the subject property
66 A clause on a trust deed that agrees to be on a lesser position is known as:A WRONG Acceleration clauseB CORRECT Subordination clauseC WRONG Or more clause
Agreement clause
67 A document to transfer property from trustee to trustor is:A WRONG A grant deedB WRONG A trust deedC CORRECT A reconveyance deedD WRONG A partial reconveyance deed
68 When an agent is a subagent of the selling broker he is working for:A CORRECT The sellerB WRONG The buyerC WRONG The lender
The beneficiary
69 The path way of an airport is over Omedos home and loss value do to the constant noise of the airport . Omedos legal proceedings against government authorities to purchase his property is called:
A WRONG Just compensationB WRONG Emminent domain
D WRONG
D WRONG
D CORRECT
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
C WRONG CondemnationInverse condemnation
70 The city made a change in zoning that is not permitted in the construction industry. This is an example of:
A CORRECT VarianceB WRONG Building codeC WRONG Restrictions
Zoning changes
71 The activity of an unlicensed person working for a real estate office according to the department of real estate the unlicensed person:
A WRONG The agent is self-employB WRONG The agent is an employee of the brokerC CORRECT According to the real estate law it must be under a license supervisionD WRONG The broker has no duty to supervise the agent
72 An appraisal when appraisal a commercial building for $550,000 it must have:A CORRECT General appraisal licenseB WRONG Certify licenseC WRONG Commercial license
Appraisal license
73 According to the department of real estate if an agent wants to advertise in the World Wide Web.
A CORRECT Only provided by qualified real estate licenseesB WRONG Only to real estate brokersC WRONG Anyone appointed by the broker
Anyone appointed by the real estate commissioner
74 If the seller presented the hazard disclosure statement to the buyer which of the following is true:
A WRONG The seller is not obligated to disclose anything else other than the reportB WRONG No other disclosure is neededC WRONG The buyer must agree to the content disclosed in the hazard disclosure statement
The seller and seller’s agent are obligated to disclose any material hazard for which they are aware
75 Which of the following is true in regards hazard safety disclosure statement and transfer disclosure statement:
A WRONG The hazard safety disclosure statement and transfer disclosures are need only if buyer is interested.B WRONG The hazard safety disclosure statement is the complete hazard disclosureC WRONG If the transfer disclosure statement is presented no other disclosures are need
The seller and the Licensee must check the public posted maps to discover and disclose existing hazard information if it is available, The transfer disclosure statement is limited to information that the owner knows.
76 Which of the following is a violation of the federal housing law according to periodic tenancy:
A WRONG Requiring first month rent in advanceB CORRECT Acquiring co-signers for unmarried persons onlyC WRONG Acquiring good credit rating
Acquiring references from previous landlords
77 Which of the following reports is the most completeA CORRECT Narrative reportB WRONG Form reportC WRONG Letter report
Neighborhood data
78 Deed restrictions may be created by:A CORRECT GrantorB WRONG ZoningC WRONG Written agreement
Deed
79 A tenant may be justified in abandoning a leased property if the landlord has constructively evicted the tenant. Which of the following acts would be an example of constructive eviction:
A WRONG The landlord has shown the property to a new prospective tenant and has entered into lease negotiations with the new tenant.B WRONG The landlord has failed to make necessary repairs to the premisesC WRONG The landlord has made extensive and unwarranted alterations to the premises, making it no longer usable for its original purpose
All of the above
80 Nominal rate or normal rate meansA CORRECT The rate stated in the noteB WRONG The rate named in the good faith estimateC WRONG The rate printed in the purchase agreement
The rate set by escrow instructions
81 Who can order the pest control report:if sold through the owner:
A WRONG EscrowB WRONG The lenderC WRONG The seller
All of the above
82 Roger sold his home he paid $140 for escrow services 6% commission the seller received $13,583. the sales price is:
A WRONG 12770B WRONG 14440C WRONG 14540
14600 $13,583 + $140 = $13,723$13,723 / .94 = $14,598
D CORRECT
D WRONG
D WRONG
D WRONG
D CORRECT
D CORRECT
D WRONG
D WRONG
D WRONG
D CORRECT
D WRONG
D CORRECT
D CORRECT
83 An agency relationship is represented by:A WRONG Oral agreementB CORRECT written agreement C WRONG Assignment
Commission agreement
84 A dual agency is permitted when:A CORRECT Buyer and Seller agreed to it B WRONG Buyer agrees to itC WRONG Seller agrees to it
By lenders approval
85 A written contract between the broker and salesperson has to be in writing according to:
A WRONG The National Association of RealtorsB CORRECT The rules and regulations of the real estate commissionerC WRONG Only if necessary
The multiple listing service
86 Riparian rights refers to owners that borders:A CORRECT River/streamsB WRONG Bays and seasC WRONG Subterranean cavities
All of the above
87 A pest control company according to the real estate rules and regulation must provide a copy to:
A CORRECT Copy to the ownerB WRONG A copy to the sellerC WRONG Copy to the escrow company
Copy to the lender
88 Once a binding contract has been created between buyer and seller the buyer will receive:
A CORRECT Equitable titleB WRONG Legal titleC WRONG Certify title
Pending title
89 The date in the purchase contract is the date:A WRONG The buyer signedB WRONG The contract was preparedC WRONG The agent received the deposit
The final acceptance was communicated to the offeror
90 The construction industry is regulated by:A WRONG State housing lawB WRONG Local building codesC WRONG Contractors license law
All of the above
91 If a lender decides to take a deed in lieu of foreclosure the lender:A WRONG Must receive an approval of sale from the trustorB WRONG Must get a deficiency judgment in courtC WRONG Will own the property free and clear
Assumes any junior liens
92 The market data approach is:A WRONG Based on the assessed valueB CORRECT Inferred from comparable propertiesC WRONG Based on the cost of material to build the same property
Based on the annual net income
93 A listing must contain all of the following exceptA WRONG CompensationB WRONG Lawful objectC WRONG Unspecified consideration
Being notarized by a notary
94 Under the truth and lending law disclosure is presented by the:A CORRECT LenderB WRONG BeneficiaryC WRONG Borrower
Seller
95 The Federal Fair Housing Law declares:A WRONG Eliminating prejudice throughout the United States.B WRONG Building houses for minority groups throughout the United States.C WRONG Guaranteeing separate but equal housing in all of the states.
Providing Fair Housing for persons throughout the United States.
96 Buyer and seller entered in a contract and the buyer ask the broker to move into the property before closing escrow the broker must:
A CORRECT Obtain an interim-occupancy agreementB WRONG Give the buyer a temporary leaseC WRONG The agent may give the buyer oral permission
Obtain written consent from the escrow company
97 Davis sold his friends home in Yolo county. Davis has no license and received a commission . Who will prosecute Davis:
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D CORRECT
D CORRECT
D CORRECT
D WRONG
D CORRECT
D WRONG
D CORRECT
D WRONG
A CORRECT The District attorneyB WRONG The real estate commissionC WRONG The attorney general
The board of supervisors
98 John entered into a right to sell listing with Broker Otis . John gave Otis $100 to advertise the property. The payment of the $100 to Otis Must:
A CORRECT Must be deposited in the trust account and used for the purpose intendedB WRONG Be applied towards his commissionC WRONG Be deposit in the trust account if it is less than $200
None of the above
99 A broker must have in writing any employment agreement with which of the following:A WRONG SecretariesB WRONG Janitorial employeesC WRONG Real estate staff
All of the above
100 Property may be substituted by:A WRONG DesignB WRONG Earnings C WRONG Use
Any of the above
101 A exclusive agency listing may be for a period of:A WRONG 180 daysB WRONG 60 daysC WRONG 6 months
Any time agreed between the agent and seller
102 An easement attach to the land is known as:A WRONG Gross easementB WRONG Prescriptive easementC CORRECT Appurtenant easementD WRONG Ingross easement
103 Cost approach is used in:A CORRECT New buildingsB WRONG Old constructionC WRONG Land
None of the above
104 All of the following are necessary for a valid contract except:A WRONG Meeting of the mindsB WRONG Lawful objectC WRONG Consideration
Payment of money or performance
105 An appraiser will deduct the vacancy factor of an apartment to arrive at:A CORRECT Effective gross incomeB WRONG Net incomeC WRONG Gross income
Appreciation
106 An agent is authorized to accept a deposit on behalf of the seller this clause found in which of the following contracts:
A CORRECT Listing agreementB WRONG Purchase agreementC WRONG Escrow instructions
Loan documents
107 A lessee may abandon the property by all of the following except:A CORRECT When property becomes dilapidated due to tenants negligenceB WRONG Condemnation by eminent domainC WRONG Failure of the landlord to make repairs
Eviction notice
108 Broker Marshall sold to Sanders a property “as is”. Marshall and seller knew about problems with the plumbing. Sanders, after close of escrow discovered the problems with the plumbing. If Sanders wants to seek legal proceedings he will be:
A CORRECT Successful because the duty to disclose material fact cannot be avoided by AS ISB WRONG Not successful because the property was sold as isC WRONG The buyer’s responsibility is to hire a professional home inspector
As Is provision the buyer must accept the property on its present condition
109 The authority that prohibits an agent from doing an act of fraud is found in:A CORRECT Business and professions codeB WRONG Listing agreementC WRONG Real estate office conduct
Real estate purchase contract
110 The legal process to evict a defaulting tenant is called:A WRONG 3 day noticeB CORRECT Unlawful detainer actionC WRONG 30 day notice
Surrender
111 Emminent Domain may be exercised by:
D WRONG
D WRONG
D CORRECT
D CORRECT
D CORRECT
D WRONG
D CORRECT
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
D WRONG
A WRONG CitiesB WRONG Public utilitiesC WRONG Public education
Any of the above
112 What state agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms:
A WRONG Department of Real EstateB WRONG Department of CorporationsC WRONG Department of Housing and Development
Structural Pest Control Board
113 A board foot is:A WRONG Six inches by twelve inches by three inchesB WRONG Six inches by six inches by six inchesC WRONG Twelve inches by six inches by four inches
Six inches by twelve inches by two inches
114 In order for a broker to be able legally to claim a commission on an exclusive right to sell listing, which of the following termination dates would be appropriate:
A WRONG Until either principal or agent gives proper notice of rescission.B WRONG 120 days after completion of the improvements.C CORRECT For 180 days from the date the listing agreement is signed by the contracting parties.D WRONG For 90 days after a conditional commitment is issued by the FHA.
115 Amezcua was asked to disclose her ethnicity in the loan application:A WRONG Sue the real estate brokerB CORRECT Refuse to disclose the portion of the loan applicationC WRONG Must fill in the entire application including the ethnicity disclosure box
Do nothing
116 If the buyer and seller agree to prorate property taxes as of the date of the close of escrow, and the escrow closes May 1, and the current annual tax bill of $1,380 has been paid, the escrow agent would appropriately debit the buyer for:
A WRONG 130B CORRECT 230C WRONG 115
680$1380 / 12 115115 X 2= 230
117 When a home is financed under the State of California Veterans Farm and Home Purchase Plan, which of the following documents is used:
A CORRECT A real property purchase contractB WRONG Listing agreementC WRONG A grant deed
A mortgage
118 Which of the following is a fiduciary relationship:A WRONG Buyer to sellerB WRONG Landlord to tenantC WRONG Sellers to appraisal
Agent to principle
119 The earthquake booklet was not necessary if property was built before:A WRONG 1957B WRONG 1960C CORRECT 1975D WRONG 1978
120 Under which of the following listings can the seller refuse to pay a commission even if the agent is the procuring cause:
A WRONG Open listingB WRONG Exclusive right to sell listingC WRONG Exclusive agency listing
Net listing
121 Functional Utility is:A WRONG MarketabilityB WRONG locationC CORRECT LayoutD WRONG Desire
122 In the event a home was constructed in a high quality home neighborhood costing $190,000 in a $100,000 home neighborhood. This is an example of:
A WRONG ProgressionB WRONG Social obsolescenceC WRONG Functional obsolescence
Economic Obsolescence
123 Which of the following is not a valid reason for the seller to terminate an exclusive listing:
A WRONG The broker’s license was revokedB WRONG The seller declared bankruptcyC CORRECT one of the seller's relatives gets a real estate license and the seller wants her to have the listing D WRONG The broker was declared mentally incompetent after signing the listing
124 Hanson wants to buy a property and talks to Broker Cohen about that particular property that he wants to buy. Broker Cohen contacts the property
D CORRECT
D CORRECT
D CORRECT
D WRONG
D WRONG
D WRONG
D CORRECT
D CORRECT
D CORRECT
owner and tell him that Hanson wants to buy his property. The seller tells the broker that the property is not for sale. Three months later Hanson found out that the seller entered into a purchasing contract with Hanson. Under this circumstances broker Cohen can.
A WRONG Sue for his commissionB WRONG Sue for his time and laborC WRONG Get pay a finders fee
Entitled to nothing
125 In applying the principles of the Easton vs. Strassburger case, real estate licensees are obligated to give prospective buyers of certain real estate:
A WRONG A list of obvious defects and functional obsolescence.B CORRECT A list of known defects and those that should be known.C WRONG A strong recommendation that the buyer obtain a home inspection.
A disclosure forcing the buyer to take the property “as is”.
126 Mr. Arturian granted a property to Macy with a condition not to drink alcohol beverages. Macy’s ownership is now describe as:
A CORRECT Fee simple deafeasibleB WRONG ConditionalC WRONG Agreement
Fee simple defeasible
127 The maximum fine that may be imposed by the Real Estate Commissioner against a broker who pays an unlicensed person for soliciting borrowers or negotiating real estate loans is:
A WRONG 1000B WRONG 5000C CORRECT 10000D WRONG 50000
128 In the event a person is discriminated against in violation of Title VIII of the Civil Rights Acts of 1968, that person may seek relief by:
A WRONG Filing a Civil Action in a State Court.B WRONG Filing a Complaint with the Secretary of HUD.C WRONG Filing a Civil Action in a Federal Court.
Any of the above.
129 The police power to divide the land into districts is accomplished by:A WRONG Eminent domainB WRONG CondemnationC CORRECT ZoningD WRONG Down zoning
130 Which kind of relationship does the salesperson not have:
A WRONG Attorney-in-factB WRONG Broker-client C WRONG Fiduciary
Attorney-client
131 Which of the following is a commercial acre:A WRONG Any parcel of 43,560 square feet.B WRONG An acre located outside of an R zoning.C CORRECT An acre after deductions for streets, sidewalks, curbs and alleys.D WRONG An acre zoned for commercial purposes.
132 The purpose of the assessment roll, as compiled by the assessor’s office is:A WRONG Determination of the actual tax to be paid by the property owner.B WRONG The equalization of the assessments among the various properties.C WRONG The setting of the tax rates.
The establishment of the tax base.
133 Buyer makes offer to buy a home including all the appliances. Seller is willingto accept offer, but will not include all of the appliances. Agent crossed out buyer’s requirement for all appliances without the knowledge or consent of the buyer. Seller then accepted the “modified offer.” Agent’s action was:
A WRONG Unethical, but not illegalB WRONG Legal, if seller was aware of agent’s actionsC WRONG Common practice by most real estate agents
Illegal
An estate at sufferance is:A CORRECT Possession of a lease after expiration of the lease termB WRONG Possession of a lease after expiration of the lease term sellers approvalC WRONG Possession of a lease during the lease
Eviction of a lease for non-payment of rent
135lease agreement is signed and Jack moves in, Mr. Michaels insists that Jack sign a contract agreeing to make substantial capital improvements to the property. This requirement by the lessor would render the lease contract:
A WRONG ValidB WRONG Voidable by the lessorC CORRECT Voidable by the lesseeD WRONG Void
136property to Sullivan. Jackson knows that Sullivan has been making significant improvements to the property in reliance on the verbal agreement. Jackson now declines to sell the property to Sullivan. Which of the following best describes the rights of the
D CORRECT
D WRONG
D WRONG
D CORRECT
D CORRECT
D CORRECT
D CORRECT
134
D WRONG
Jack leases a single family dwelling property from Mr. Michaels. After the
Jackson leased his home to Sullivan with a verbal agreement to sell the
parties:A WRONG Jackson must sell because he made an agreementB WRONG Sullivan has no right to enforce the verbal agreementC CORRECT Jackson must sell because the doctrine of estoppel will apply in this caseD WRONG Jackson does not have to sell because of the Statute of Frauds
137 Banks loan 80% of appraised value. If the Interest rate is 11%, and the first year interest was $7,040 , what was the appraised value.
A WRONG 64000B WRONG 76000C CORRECT 80000D WRONG 85000 $7,040/11%= $64,000 LOAN AMOUNT
$64,000/80%= $80,000 APPRAISAL VALUE
138 The SW ¼ of the NW ¼ of Sec. 5 is valued at $800 per acre. The S ½ of the NE¼ of Sec. 8 is valued at $500 per acre, what is the difference in value between the two parcels:
A WRONG 6000 S 1/2 FO THE NE 1/4 OF SECTION 8= 80 ACRES X 5O0 = $40,000B CORRECT 8000 SW 1/4 OF THE NW 1/4 OF SECTION 5= 40 ACRES X $800= $32,000C WRONG 10000 $40,000-$32,000= 8000
12000
139 The original amount of a straight note that calls for interest payments of $60 per month based on a rate of 8% per annum is:
A WRONG 4000B WRONG 7500 $60,000x12= $720 PER YEARC CORRECT 9000 $720/8%= 9000D WRONG 12000
140 Wong bought a vacant lot for $17,424, wants to sell the lot and make a 40%profit after paying a 10% commission. What must he sell lot for:
A WRONG 24393B CORRECT 27104C WRONG 28395 $17,424 X 1.40 = 24393
31402 $24,393/.90= 27104
141 An investor purchased a trust deed and note at a 20% discount. This was a oneyear fully amortized note with a face amount of $4,500 with payments of $393 per monthincluding 9% interest. If she holds the note for the full year, the yield on her originalinvestment would be.
A WRONG 0.29 4500 X 20%= 900B CORRECT 0.31 $393X12= 4716C WRONG 0.24 4716 - $4,500= 216
0.36 $900 + $216= 1116$1,116/$3,600= 0.31
142 On august 5 a borrower gave broker Gutierrez a personal check for $1,000. made payable to the seller. The buyer instructed broker Gutierrez that the check should
A WRONG Not accept the depositB WRONG Return the deposit to the buyer
C CORRECTD WRONG Not accept personal checks
143 Which of the following factors would tend to make real estate values unstablein a residential neighborhood:
A CORRECT An increasing number of average priced homes are being constructed in a neighborhood with a number of high priced homes.B WRONG Local zoning restrictions, that would limit or prohibit the construction of multiple family units.C WRONG The residents of a neighborhood are of the same ethnic background and religious beliefs.
The subdivider demanding each borrower to purchase lots with a minimum number of square feet and value.
144 Misuse of the term “Realtor” is:A CORRECT A violation of the California Real Estate Law.B WRONG A felony offense.C WRONG Unethical but not illegal.
Only unethical in California.
145 When the Real Estate Commissioner wishes to proceed against a licensee for asuspected violation for the Real Estate Law the Commissioner must first serve the realestate licensee with:
A WRONG A complaint.B WRONG A demurrer.C WRONG A statement of issues.
An accusation.
146 Federal law requires sellers, landlords and remodels to disclose knowninformation on lead-based paint. It is assumed that lead-based paint was last used onhomes built before:
A WRONG 1952B WRONG 1967C CORRECT 1978D WRONG 1989
D WRONG
D WRONG
D WRONG
be held uncashed until August 30th. Broker Gutierrez must:
Accept the deposit and instruct the seller that the check has to be held until august 30 th.
D WRONG
D WRONG
D CORRECT
147 when applying the capitalization of net income approach to establish the value of an income property, which of the following would not be included as an expense:
A CORRECT Cost of capitalB WRONG UtilitiesC WRONG Property managementD WRONG Reserves for replacement of improvements.
148 Which of the following is not one of the survey systems in California:A WRONG San BernardinoB CORRECT WillametteC WRONG Humboldt
Mt. Diablo
149 John owns a lot that measures 150 feet deep by 50 feet wide. The zoning laws require a 20 foot front setback and 4 foot setback on both sides and at the back. The available area is:
A CORRECT 5,292 square feetB WRONG 5,560 square feetC WRONG 6,556 square feetD WRONG 6,800 square feet 150-24 = 126
50- 8 = 42 42X126= 5292
150 The broker has an oral listing to sell real property. The broker presented an offer which the seller accepted. The seller then requested the broker to give him the buyer’s deposit check.A CORRECT The broker must give the check to the sellerB WRONG The broker must deposit the check in escrowC WRONG The broker must deposit the check in the trust accountD WRONG Return the deposit to the buyer
D WRONG
The broker has an oral listing to sell real property. The broker presented an offer which the seller accepted. The seller then requested the broker to give him the buyer’s deposit check.
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