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The fundamental basis for Fair Housing throughout the United States stems from:
A seller lists a property with an agent. The agent shows the property to a white prospect at one price and the agent’s broker shows the property to a minority couple at a higher price. The seller then sells the property to a neighbor because the neighbor does not want minorities next door. Who has NOT broken the law?
Complaints involving violations of discrimination should be reported to the:
A broker convinces a white family to put their home up for sale after saying that minority families are moving into the neighborhood. The broker’s actions are all of the following EXCEPT:
A licensee was farming a non-integrated neighborhood which was next to an integrated neighborhood by telling the owners that if minority people moved into their neighborhood, their property values would go down. This is an example of:
A listing agent received two offers in the morning and immediately presented the offers to the seller. In the evening the agent received two more offers, both with a lower price. What should the agent do?
A broker is showing property to a person who is an ethnic minority. The broker decided to show property in a certain area because of his customer’s race. This is an example of:
A loan broker asks a person applying through the broker’s office for a new loan to fill out a questionnaire which asks the borrower’s race and marital status. The applicant can:
When an agent is accused of “puffing,” the agent might be guilty of which of the following:
A licensed real estate broker who owned a large real estate firm operating under the name ABC Realty Company, listed a property for a total price of $40,000. The broker and many of his salespersons were all principals in an investment company operating under the name of Realty Income Investment Company. The investment company decided to purchase the property so the broker presented an all cash offer to the owner for the full price, but did not disclose to the seller who the purchasers were. The seller accepted the offer and opened escrow. Under these circumstances:
Realtor® Ken hired an unlicensed person named Jose to hand out his brochures, fliers, and door hangers in his farm neighborhood. Ken also instructed Jose to go to his health club and hand out printed information. Property owner Mary, who has already listed her home with another broker, received a phone call from Jose talking about a possible meeting with Ken. Jose was using dialogue which was a scripted pitch written by Ken. Mary happened to record the conversation. Which of the following statements is correct?
An unlicensed secretary in a real estate office can:
An unlicensed assistant puts together information and assists in writing an advertisement for a broker. For this to be legal the broker must:
A salesperson tells his broker that he is quitting and plans to go to work for another broker. His present employing broker should:
A salesperson asked the listing broker, who was not his employing broker, to advance him $600 against the commission the listing broker had agreed to pay to the selling agent. The listing broker paid the selling agent the $600 even though the deal had not yet closed escrow. In this situation:
After passing the real estate license examination, a person must apply for the license within:
When a licensee is employed as an independent contractor, the employing broker may still have to cover the licensee for:
What is the maximum amount that could be recovered from the Recovery Fund for one salesperson?
Buyer Frank sued broker Sam for a misrepresentation in the sale of a single family residence. He was awarded a judgment but Broker Sam was bankrupt and unable to pay the judgment. Buyer Frank appealed to the Real Estate Recovery Account. Assuming the Recovery account agrees to pay Frank, he will receive a maximum of _______ for this single transaction.
The Commissioner paid from the Recovery Fund for settlement of a claim based upon a judgment against a licensed broker. If the broker is bankrupt, he/she would be required to:
What portion of applicant license fees are put to use in the Recovery portion of the Real Estate Education and Recovery Fund?
When budgeting for a real estate office, the phrase “company dollar” means:
Dividing office overhead by the number of salespersons gives:
Copies of real estate transaction documents must be kept:
Which of the following documents DOES NOT need to be stored for 3 years?
The supervising broker should review all documents prepared by their associate licensees:
A licensee put a “blind ad” in the local newspaper. This ad does NOT:
An advance fee is:
All materials used in obtaining advance fee agreements must be submitted to the Real Estate Commissioner at least ____________ before they are used.
A landlord and a tenant entered into a two year lease on commercial retail space. Three months into the lease, the tenant realizes he is unable to continue paying the rent and asks the landlord to release him from the lease. The landlord agrees. This would be considered a(n):
It is important for a landlord to obtain all the information on a rental application in order for the landlord to make a decision about renting to a particular person or to more than one person. A landlord thinks it is important to know whether or not a couple is married. Is it legal for the landlord to inquire whether or not a couple is married on the rental application?
A subdivider must give a copy of the Commissioner’s public report to:
When is the subdivider required to give the public report to prospective purchasers?
Which of the following must be kept on file by the broker for three years?
Which of the following statements is TRUE regarding public reports?
Which of the following events would require the subdivider to notify the Real Estate Commissioner?
A subdivider sold five 1-acre lots to Mr. Dalton and optioned five lots to Mr. Bernstein. What course of action does the subdivider have to take as a result of this action?
A subdivider may use the public report in their advertising as long as:
A public report is required if a person is going to subdivide a lot for condominiums into:
Which of the following allows a subdivider to enter into binding contracts with purchasers for lots but does not allow transactions to be completed?
If a subdivision project will have a significant effect on the environment, the government agency that approves the project may be required to prepare a(n):
A statement issued by the authorizing government agency that there will be no impact on the environment significant enough to warrant preparation of an EIR is called a:
The installation of curbs, gutters, streets, and utilities in a new subdivision is the responsibility of:
A developer produces the same house in each of the following locations: 1) A house across the street from a shopping center; 2) A house adjacent to a bus stop on a heavily traveled thoroughfare; 3) A house in the center of the subdivision; 4) A house on a key lot in the subdivision. These various properties could all be purchased for the same price. Which one would you, a knowledgeable real estate licensee, advise a home buyer to purchase?
With regard to the public report, which of the following would be considered a material change in a subdivision?
When converting an existing residential property to a condominium, existing tenants must be given:
Each tenant of a proposed conversion of their building from residential property to a condominium has the right to:
A blanket encumbrance exists on a large subdivision. The owner negotiates to pay off the loans on certain lots as they are sold. To accomplish this the beneficiary would execute a:
In real estate transactions, the type of misrepresentation which occurs least often is:
Generally, a fact concerning a transaction is considered “material” if:
A broker sells a house advertised “as-is.” There are no obvious defects that would be evident to a prudent buyer upon inspection, but the seller and the broker know that the plumbing is very defective. The buyer moves in and discovers the defects. The buyer then sues the broker and the seller for misrepresentation. The suit will probably be:
The seller must disclose any material change in the condition of the property, or the title, that occurs or is discovered by the seller:
In July, Easton bought Rothchild’s home through the listing broker, McGrew. In November when the first rain came, the tile roof leaked badly in many places. Easton sued Rothchild and McGrew for the cost of the new roof. Testimony in court showed that Rothchild mentioned the need for a new roof to McGrew, but McGrew did not mention it to Easton because “he had not asked about it.” What would most likely occur?
The Real Estate Transfer Disclosure Statement (TDS) provides information regarding the:
What is the difference between the Real Estate Transfer Disclosure Statement and the Natural Hazard Disclosure Statement?
If more than one licensed real estate broker is acting as an agent in a transaction, who is responsible to assure the delivery of the Real Estate Transfer Disclosure Statement (TDS) to the buyer?
The Real Estate Transfer Disclosure Statement (TDS) is NOT required when the transfer involves:
A buyer signs the purchase agreement and the seller accepts. The agent personally delivers acceptance of the offer to the buyer and also drops off the seller’s Transfer Disclosure Statement. How long after receiving the TDS does the buyer have to rescind the contract?
In addition to the licensee’s duty to disclose matters known to the licensee, he/she also has the duty to:
A seller (or seller’s agent) must give the buyer a separate “Natural Hazard Disclosure Statement” if the property lies within which of the following specified areas?
Seller Smith hires broker Jones to list his home. Neither have actual knowledge that the property is located in a hazardous earthquake, flood, or fire area, and for that reason they decide they will not make the Natural Hazard disclosure. After close of escrow the buyer checks with the county and finds out that a map exists that shows the property located within a particular hazard zone. Which of the following statements is correct?
What should sellers do when they are uncertain if the property is located within one of the designated natural hazard areas?
The Alquist-Priolo Earthquake Fault Zone Act is concerned with:
The seller is required to deliver the Homeowner’s Guide to Earthquake Safety to the buyer of any one-to-four unit property built prior to:
What does the Homeowner’s Guide to Earthquake Safety discuss?
Who is responsible for disclosure of a Mello-Roos bond against the property?
The listing agent fails to disclose that the property is in a Mello-Roos special tax district when the purchase contract is signed. Realizing his oversight, he delivers the required disclosure to the buyer in person the next day. Which of the following is correct regarding the buyer’s rights
Which of the following is considered trust funds?
A real estate licensee who accepts funds from others in connection with any transaction for which a license is required must place them in:
When a real estate licensee accepts trust funds from his/her client in connection with the purchase of real property, the licensee must place these funds into the proper place:
Commingling is one of the greatest single causes for loss of license. Which of the following would NOT be considered commingling?
A broker may store records in which of the following formats?
When broker Smith accepts a deposit check from a client, he forwards the check directly to escrow. According to trust fund record keeping requirements, which of the following is CORRECT?
Which of the following defines the term “reconciliation?”
To assure the accuracy of trust fund accounting records, they must be reconciled at least:
After reconciliation of the trust account, a broker finds funds in the account for which he cannot determine ownership. The broker should:
The potential penalties for a licensee’s violation of the laws concerning the handling of trust funds include:
In the event the commissioner has conducted an audit which reflects commingling or conversion of trust funds in excess of $10,000, the court may:
How much of a broker’s personal funds may be contributed to a client’s trust fund bank account to offset any bank service charges?
A real estate licensee applies for a license renewal, but the DRE does a background check and finds out that the licensee is delinquent on his child support payments. Which of the following is correct?
Which of the following deals with public access to buildings?
The fees charged for property management are usually:
In which of the following ways is fraud different from misrepresentation?
An estoppel is a:
A broker has a management contract on an apartment building complex. He collects rents and deposits them in his trust fund bank account. He also acts as a broker on other transactions and puts buyer deposits in the same trust fund bank account. Which of the following is correct regarding this practice?
A broker owns many rental properties. He is selling one of the properties and the buyer gives him a check as a deposit. He should:
A broker wanted to operate a real estate office under the fictitious name MLB Realty. Before operating under a fictitious name, the broker must:
A flood hazard exists when an area floods:
According to California Real Estate Law, an unlicensed person may be paid a finder’s fee:
Which of the following is NOT included in Phase I of an Environmental Report?
A developer of a condominium project placed a restriction in the CC&Rs saying that no condominium owner could place a “for sale” sign in front of their condominium until all of the original condominiums had been sold. Regarding this restriction:
It is important for a landlord to obtain all the necessary information on a rental application to allow the landlord to make a decision about renting to a particular person or to more than one person. A landlord thinks it is important to know whether or not a couple is married. Is it legal for the landlord to inquire whether or not a couple is married on the rental application?
A landlord is trying to evict a tenant and serves an eviction notice. Under what circumstances could a tenant remain in the property?
An advertisement is placed in a newspaper. According to the guidelines established by the Department of Housing and Urban Development, which of the following phrases would be considered discriminatory?
Which of the following is NOT a poisonous gas?
The best way to test for radon gas in a building is with a:
Sellers of target housing must disclose to potential purchasers the presence of any known lead-based paint hazards that affect homes built prior to:
What is required of a pre-paid rental service when they plan to move offices?
A Brownfield property that has been left vacant or is underutilized is most likely:
The Williamson Act provides helps owners of farmland and open-space land in the form of:
How long must land be maintained under a Williamson Act contract?
A Broker must have a written broker-salesperson agreement with each of his/her:
The maximum security deposit allowed by law for an unfurnished rental is:
The maximum security deposit allowed by law for a furnished rental is:
A landlord CANNOT use a security deposit towards which of the following:
When a tenant leaves the premise with no intention to return, it is called:
What percent of home buyers search online before contacting a real estate agent?
What happens if you fail to renew your license on-time?
All of the following are TRUE about a Certified Property Manager (CPM) EXCEPT:
A buyer wants to know why the demographics have changed in an area causing home prices to decline. The buyer wants to know if it is due to a certain race moving in. What is the best way to answer?
What is the Latin word for “buyer beware?”
The seller of a home died of AIDS in the hospital four days before the sale of the home. Which of the following is correct regarding the broker’s obligated to disclose this to the buyer?
A landlord must give the lessee (tenant) a copy of the lease within:
What is the landlord’s responsibility if a tenant notices that some construction in the building may contain asbestos?
A Bill of Sale is required to transfer personal property if the property sold for more than:
Which entity issues a permit for a subdivision in a coastal community?
A corporation has their broker’s license under one of its corporate officers. A non-licensed corporate-officer can do all of the following EXCEPT:
What is the definition of an MLS?
When a valid grant deed is prepared, title passes when:
Which of the following represents one of the essentials of a Grant Deed?
To be recorded, a deed must have:
The recording of an instrument gives:
The most important element of proper and effective delivery of a deed is:
A deed has a provision regarding racial and religious discrimination.The deed may be changed:
A deed is presumed to be delivered when:
A deed is recorded and indexed:
An exception in a grant deed:
A quitclaim deed conveys only the present right, title and interest of the:
The doctrine of “first in time, first in right” refers to:
A valid deed must contain:
A recorded deed:
A reservation in a deed:
An exception in a grant deed:
When using a grant deed, title transfers at the time of:
Which of the following is NOT necessary to establish title by adverse possession?
The legal seizure of property for sidewalks by the government is referred to as:
An interest in real property acquired by prescription is:
What usually happens to a person’s property who died intestate?
When a person dies intestate and no heirs claim his/her property, it reverts to the state by:
A will written in the testator’s own handwriting is called a:
Holographic wills cannot be:
A will is said to be ambulatory because it can be:
A man appointed by the court to settle the estate of a person who has died intestate is called a(n):
By Proposition 13, the annual real estate tax on a parcel of property in California is limited to:
Personal income taxes are structured using rates that are:
The California sales tax is a(n):
Ad valorem is best defined as:
Which of the following is considered an ad valorem tax?
If a property owner believes that the assessed value on his or her property has been set too high, the owner could file a request to seek a reduction from the:
Property taxes are assessed:
The second property tax installment is due and delinquent on:
Real property taxes become a lien on:
How would a taxpayer adjust the tax basis of his/her personal residence for Federal tax purposes?
Susan owns an apartment house and deducted $10,000 from the gross income for depreciation on her federal income tax return. For income tax purposes, the basis of the property is:
When a real estate broker speaks of “tax shelter” he/she is referring to:
The Street Improvements Act of 1911 allows the issuance of bonds to raise funds for subdivision improvements on:
A property owner builds a swimming pool at his apartment building in order to attract more tenants. For tax purposes, he can:
A federal income tax advantage can be realized by:
Which of the following is most likely to pay property taxes?
For tax purposes, points paid by the seller would:
Which of the following can a property owner expect after sewer lines are installed in front of his/her property?
To adjust for any increase in tax liability due to a reassessment after the property was purchased, the tax authority would issue a:
A home was purchased on February 1st with the understanding that property taxes had been paid for the fiscal tax year. The buyer received a tax bill anyway known as a:
The redemption period for unpaid real property taxes is:
Tax delinquent real property not redeemed by the owner during the five year statutory redemption period is deeded to the:
The document issued to a person as a receipt for paying delinquent taxes on a property owned by another is called a:
The marginal tax rate is the tax rate:
An owner occupied residence qualifies for a homeowner’s exemption of:
Which of the following dates represent the final date the property owner may file for the State Homeowner’s Property Tax Exemption?
Which of the following is required for a couple to qualify for the universal exclusion?
Mr. Johnson sells his personal residence for $800,000 that he purchased only 12 months ago for $900,000. For tax purposes he has:
Mr. Jones, a single man age 50, sells his personal residence for $600,000. He originally purchased it 9 years ago for $550,000. If Mr. Jones does not purchase a new home after selling this one, what portion of the sales price is taxable?
Who is responsible for reporting a sale to the IRS?
Which of the following may NOT engage in the escrow business?
A broker can, without being licensed as an escrow, handle the escrow on transactions where he or she:
During escrow, if an unresolved dispute should arise between the seller and buyer preventing the close of escrow, the escrow holder may legally:
Which of the following is TRUE with respect to reserves in an escrow?
Escrow instructions should be:
The signed escrow instructions disagree with the purchase contract. As to the disagreement, which of the following is TRUE?
A Standard Policy of Title Insurance covers all of the following EXCEPT:
An ALTA policy of title insurance protects the:
Homebuyers are most likely to purchase:
A standard policy of title insurance covers all of the following EXCEPT:
Which of the following would protect a buyer against a right of a party in possession?
What type of title insurance policy covers all risks?
A title officer of a title insurance company is familiar with an “Abstract of Title” and would know that it is:
How much of a broker’s personal funds may be contributed to a client’s trust fund bank account to offset any bank service charges?
When a real estate licensee accepts trust funds from his/her client in connection with the purchase of real property, the licensee must place these funds in: 1) a neutral escrow depository; 2) the hands of the offeree or owner; or 3) a trust account. The licensee must place these funds into one of the these three authorized places:
How often should a trust fund account be reconciled?
An escrow prorates based on a:
All of the following will terminate an escrow EXCEPT?
Buyer’s and seller’s closing statements are:
During a sales escrow, the escrow officer receives two structural pest control reports. The escrow officer should:
Owner Bob owns an apartment complex which is managed by Broker X. Owner Bob wants to sell his apartments and Broker X is the listing broker. Who distributes the security deposit?
With reference to an escrow, recurring costs mean:
The term impounds refers to:
Money in an impound account belongs to the:
A lender uses an impound account to protect against non-payment of all of the following, EXCEPT:
The term title plant refers to:
A document that describes the property and any existing encumbrances is called a:
An exact history of conveyances and encumbrances affecting the title of a property is called a(n):
Which of the following is required for the existence of a valid escrow?
All escrow companies must be incorporated and licensed by the:
An escrow agent discovers there is no specified date of closing. In this case escrow should close:
Shortly after a valid escrow is established, both the buyer and seller die. What should the escrow agent do?
Which of the following automatically terminates an escrow?
Without any agreement on a specific date, physical possession should be given:
When there is a substantial discrepancy between the dates for close of escrow and the new owners occupying the property, the agent must prepare a(n):
The buyer and seller agree on a 60-day escrow. As the closing date approaches, it becomes obvious that it will not close on time. Which of the following is TRUE?
When does the broker’s commission get paid?
What does the term “short rate” refer to?
When is the title insurance premium paid?
Pest control reports which contain information concerning wood destroying insects are kept on file with the:
A broker is acting as the agent of the seller in a transaction in which the seller carried back a second trust deed. The broker must cause the deed of trust to be recorded or advise the seller to record the trust deed:
Baker sells a property to Davis and executes a grant deed in favor of Davis. Davis then takes the deed and places it in a safety deposit box. Baker then sells the same property to Charles who subsequently records it. Which of the following is correct:
Deed restrictions are valid:
The Office of Interstate Land Sales Registration (OILSR) applies to:
Which of the following describes a “perfect escrow?”
Demand being equal:
While the economy is experiencing inflation, interest rates:
Of the following, value is best described as:
Value is best described as:
The relationship between a property and a prospective purchaser is known as:
Market value is determined by:
Of the following, which would most likely be the highest value?
Which of the following would most likely lower the value of a single-family residence?
When appraising a commercial property, an appraiser would be least interested in:
Which represents the four unities of market value?
In order for demand to be effective, it must be implemented by:
Which of the following is NOT one of the three great forces affecting value?
A $1,260,000 house, having been built among $700,000 to $900,000 homes, would eventually see its value go down. This influence on the value of the $1,260,000 house is known as:
Which of the following is an appraiser’s primary concern in the appraisal of residential property?
Offers to purchase by prospective buyers will tend to set:
In an appraisal, the term “utility value” would most nearly be described as:
The ultimate test of functional utility is:
The principle of “highest and best use” refers to the use:
Which would be considered economic obsolescence?
Any loss in value due to placing a building in an incompatible neighborhood would be an example of:
A flight pattern to a nearby airport was changed so that planes pass over a single-family residential neighborhood. Any loss in value to these properties would be attributed to:
Which of the following is an example of functional obsolescence?
A loss in value due to a city sewer system in poor condition would be classified as:
Economic obsolescence would be considered:
Wear and tear to the load bearing members of a building would be classified as:
Two different properties are located side-by-side in the same neighborhood. They were both built by the same contractor, at the same time, for the same cost, are maintained the same, and contain the same square footage. If one property is worth less than the other, it would be due to:
A four-bedroom house with a one-car garage would be an example of:
Evans owns a new personal residence. The transportation agency is widening the street in front of his residence. This will cause Evans to lose 10 feet along the front of his property which borders the street. This is an example of:
The period over which a property may be profitably utilized is called its:
The economic life of improved property is which of the following in relation to the physical life?
If a building is in exceptionally good condition, its effective age is:
The basic valuation principle underlying the market approach is:
The hardest and yet most important part of the market data method of appraising is:
In appraisal, the adjustment process whereby comparables are adjusted to the subject property is known as:
You are preparing a competitive market analysis on a vacant lot that you hope to list for sale. Which of the following approaches to value will be used in the development of the estimated value?
When using the market-data approach to appraise a single-family home, recent sales are compared to the subject property as to:
The subjective value of a property is the:
The objective value of a property is closest to:
Which of the following approaches to real estate appraisal is concerned with “the present worth of future benefits” of a property?
The income approach would NOT be used when appraising:
The most difficult step in applying the income approach in the appraisal of income property is:
When analyzing the income produced by a property, an appraiser is concerned with:
The principle of anticipation applies when using the:
An appraiser would determine the value of an apartment building by:
Capitalization is most closely related to:
Capitalization is a process whereby an appraiser:
The capitalization rate in the income approach provides for “return of” and “return on” the investment. “Return of” refers to:
If interest rates on loans increase, capitalization rates would tend to:
After capitalizing the net income of a property and then deducting the replacement cost of the improvements, an appraiser has established the:
Which of the following should be included when estimating the value of an income property using the capitalization approach?
To arrive at a capitalization rate in the appraisal of an income producing property, no provisions should be made for:
The most important economic consideration in relationship to land is:
Two buildings are located in the same area, of comparable size, both under long-term leases. One is leased to the government for a post office and the other for a hardware store. Using the income capitalization approach to appraise the properties, which of the following is correct?
Property that is very seldom sold would be appraised by which of the following appraisal techniques?
In the appraisal of residential property, the cost approach is most appropriate in the case of:
When using the cost approach, the appraiser may estimate the cost of reconstruction based on its “reproduction” cost or its “replacement” cost. “Reproduction” cost is:
An appraiser using the cost method can use the unit cost per square foot or per cubic foot in his/her computations. On a unit cost basis:
The quantity survey method, unit-in-place method, and square foot/cubic foot methods of real estate appraisal most directly relate to the:
Which of the following is the biggest problem in using the cost approach to appraise an older building?
Which of the following appraisal techniques requires a separate estimate for the value of the land?
Which of the following is true about the replacement cost method?
An appraisal under the cost approach method places the value of landscaping, fences and walkways:
A gross rent multiplier is obtained by:
Which of the following appraisal methods prices all labor and material in construction?
Which of the following is the best (or most common) appraisal method used to calculate replacement costs?
Amenities are:
A property with great amenity value would best be appraised by using the:
A corner lot would most likely add value to:
A cul-de-sac is which of the following?
An increase in value as a result of taking several small parcels and joining them together to form a larger parcel is called:
Which of the following is NOT a method of depreciation?
Putting aside money each year for five consecutive years to replace the roof is an example of:
Which of the following best identifies the three phases normally involved in a single-family dwelling?
An appraiser would most likely use a depth table when confronted with a valuation problem involving:
Which of the following appraisal reports is the most complete and detailed?
The increase of value with the passage of time describes:
Restoring an old home to its original condition without making any changes in the floor plan or style is referred to as:
An appraiser was hired by Williams to appraise Henderson’s property. With whom should the appraiser discuss his findings?
An appraiser is appraising a property which is next door to an abandoned gas station. The appraiser should recommend a:
What is a “fee appraiser?”
What part or portion of the narrative report contains the estimate of value?
As far as sales are concerned, the most important date on an appraisal is the:
What is the first step in the appraisal process?
A plot plan drawn by an architect is designed to:
A group of buildings developed in a line along the frontage of a main highway would most likely be a(n):
When referring to his development, a contractor mentions his elevation sheet. He is referring to:
What is a kiosk?
In order to find the architectural details of the footing, pier blocks, and sub-floor, a contractor or real estate broker would look at a(n):
The term “walk-up” refers to a(n):
Which of the following is NOT considered dry-wall construction?
Both buildings and neighborhoods alike generally exist in one of four life cycle stages; these are:
The framing members over windows and doors are called:
The parallel framing members under the flooring boards and in the ceiling are called:
What is the unutilized space between the floor and ground of a structure called?
The insects that are considered to be the most destructive to wood are:
The metal used by builders to prevent the seepage of water at certain joints in buildings is known as:
The word “percolation” deals with:
Insulation materials are rated by their effectiveness according to their “R-value.” The rating system is used to rate the material’s:
If the interior side of an exterior wall is the same temperature to the touch on a winter day as the interior adjacent wall, this would indicate:
The vertical structural support members are attached to the:
Because of roofing regulations regarding load factor,:
What are the units used to measure the length of a nail?
The spread part at the bottom of the exterior of the foundation in a single family dwelling is a:
Which of the following are known as artificial monuments?
Which of the following generally installs conduit?
A builder was going to build a home on a 75’ x 125’ lot and wanted it to fit in relation to its surroundings. This placement would be known as:
Which of the following is NOT a type of soil or a soil condition?
The person most likely to use a “bench mark” in his or her profession would be a:
Soil pipe is usually used for:
The higher the Energy Efficiency Ratio rating (EER),
A developer ordered two truckloads of backfill during the construction of a home. He ordered this for the purpose of:
B.T.U.’s would indicate:
A bearing wall:
The measurement or the length of road that abuts a thoroughfare is referred to as:
What is meant by the expression “turnkey project?”
Which of the following includes site plans, elevations drawings and street locations?
When subdividers evaluate the topography of land,
If the current highest and best use of a property is expected to change, the current use is referred to as the:
What kind of architectural style has lots of large windows, an open plan, easy access to outside, simplicity?
Which of the following is correct regarding the adjustment process for a Comparative Market Analysis (CMA)?
Which of the following lists the essential elements of an enforceable contract?
Which of the following describes “mutual consent?”
Failure to perform any of the terms or conditions of a contract is called:
Which of the following is NOT essential to all contracts?
Which of the following is NOT essential to a contract?
To have a valid contract, all but one of the following would be necessary:
A contract based on an illegal consideration is:
Consideration may be:
Valuable, adequate, good and sufficient in a contract would apply to:
A 17-year-old unemancipated minor enters into a contract to sell real property. The contract is:
A 17-year-old girl inherits a parcel of vacant land from her uncle. While still a minor, she deeds the land to her church, which promptly builds on it. When she turns 18, she decides she wants the land back. In this case she:
Seller Smith sold a home to buyer Jones under contract. Shortly before close of escrow, it was judicially determined that Jones was incompetent prior to entering into the contract with Smith. The contract between Smith and Jones is:
You enter into a contract with a person not knowing he was judicially declared incompetent. The incompetence of one of the parties to this agreement would make the contract:
What is it called when one person is substituted for another in a contract?
A contract signed under duress is:
The Statute of Frauds outlines what contracts must be in writing to be enforceable through court action. Which of the following contracts would be enforceable?
A tenant verbally agrees to lease a house for six months. The following month, the tenant notifies the owner that he has found a more desirable unit and will be moving out. The contract is:
All of the following would be required to be in writing EXCEPT:
The word “laches” most nearly pertains to:
A listing agreement is:
An agent acquired a listing for a house and orally promised to hold an open house every week until the house was sold. The agent failed to hold them as promised. This is an example of:
If the owner enters into a Seller Reserved Listing and thereafter sells the property through his own efforts:
Under a Seller Reserved Listing, a broker advertises a home for sale. The owner sells the home prior to the expiration of the listing. The broker is entitled to:
All of the following listings require that the broker be the “procuring cause” of the sale if he/she is to be entitled to a commission, EXCEPT:
A broker secured a buyer for his principal and the seller accepted the offer presented through the broker. Under which type of listing would the broker not receive a commission from the principal?
Which of the following accurately describes a listing agreement which allows the broker to either find a prospective buyer, or purchase the home himself/herself?
A broker has listed Mr. Applegate’s property under a net listing. He also has an option to purchase the property within 30 days. If after 27 days the broker decides to buy the property, he must:
Who must the broker disclose the amount of profit the broker will make on a Net Listing?
Mr. Seller signs an open listing on his home with five different brokers. In this case,:
A “safety clause” is found in a:
Where does information governing the use of electronic signatures (eSigning) NOT exist?
Thinking that he is acting properly regarding the safety clause in a listing, a broker notifies the owner verbally of a prospective buyer with whom he negotiated. The day after the listing expires, the buyer purchases the property. Which of the following is correct?
A verbal agreement between two brokers to split a commission is:
A listing agent received two offers in the morning and immediately presented the offers to the seller. In the evening the agent received two more offers, both with a lower price. What should the agent do?
Broker Williamsburg obtained an exclusive authorization and right to sell listing from the owner of a residence. During the listing period, Williamsburg found a buyer who made an offer on the property which was accepted. Neither the offer nor the escrow instructions made any mention of Williamsburg being the agent or the payment of a commission. Under these circumstances:
An exclusive authorization and right to sell listing is given to Steve R. Stone (DBA: Steve R. Stone Realty). If Steve R. Stone dies prior to the sale of the property, the listing:
To whom does a listing belong?
A broker is going to take a listing on a church that is owned by an unincorporated association. In order to determine who has the proper authority to sign documents and represent the group, the broker should do which of the following:
Owner Jones gives broker Smith a 90-day exclusive listing. One week later, Jones notifies broker Smith in writing that he is terminating the listing. The next day, owner Jones signs an open listing with broker King. Broker King quickly brings in an offer which owner Jones accepts. As to the commission, which of the following is true?
A broker has shown a property which he has authorization to sell under an open listing. After showing the property, he should:
With an exclusive listing, a broker may be subject to disciplinary action for:
A broker listed an owner’s home and later received an offer from another licensee that met all of the listing terms and conditions. After considering the offer, the owner informed the broker that the owner no longer wished to sell, and asked to be released from the listing agreement immediately. Which of the following is a TRUE statement about the broker’s position in this situation?
Broker Jones takes an exclusive listing on a property owned by three different people. Broker Jones takes the listing contract to each of their places of business to get it signed. Broker Jones must:
Mr. Owner enters into an exclusive listing with Broker X. One week later, Broker X brings in a full price offer, but Mr. Owner refuses the offer. Seeking an action of Specific Performance would be an option for:
The broker’s promise to use diligence in finding a buyer:
A listing that does not require a broker to use diligence in obtaining a purchaser is:
One week after entering into an exclusive authorization and right to sell listing, the owner dies. His designated administrator decides not to sell the property. In this case,:
A broker accepts an exclusive authorization and right to sell listing from a corporation. During the listing term, all of the officers of the corporation die. In this case,:
An exclusive authorization and right to sell listing has an expiration date of noon on September 5th. At 1 P.M. on September 5th, the owner signed a new listing with Larry, another broker. At 2 P.M., on September 5th, Sally, the original listing broker, presents a full price offer. In this case,:
A parcel of vacant land is listed for $100,000, requiring 20% down, with the seller to carry back the balance. The broker brings in a full-price cash offer, but the owner refuses. The broker is entitled to:
A broker brought in an offer but the listing agreement did not include an authorization to accept a deposit. Which of the following is correct?
An exclusive listing contains a provision for termination upon the owner giving the broker 24 hours’ notice.
An exclusive agency listing between a broker and owner incorrectly states 6 dollars rather than 6 percent as the commission payable to the broker if he produces a buyer. If the owner sells the property himself, the broker is entitled to:
During the term of an exclusive authorization and right to sell listing, the broker has his license revoked by the Department of Real Estate. To prove that he is entitled to a commission, he must prove all of the following EXCEPT:
A buyer has entered into an agreement with more than one buyer’s agent at the same time but owes compensation only if she uses the services of a buyer’s broker. This arrangement is known as a(n):
An exclusive authorization a right to sell listing, does not contain a complete legal description.
Select the choice which most nearly represents “price fixing” from the following:
Under a lease, the leasehold interest lies in the:
A family rents a house from January 1st to June 30th. This is considered a(n):
If one uses the words “of definite duration” to describe a lease, it is most likely a(n):
A month-to-month lease is considered a(n):
A tenant’s five-year lease has expired but they continue to live on the premises and pay their rent monthly. This is considered a(n):
Brown leases a residence from Baker on a three-month written lease. Upon expiration of the written lease, Brown retains possession of the property without the consent of Baker. Brown now holds a(n):
A periodic tenancy lease does not specify exactly when the rent payment is due. If this is the case, it would be due:
A tenant signs a lease that stipulates that the lessee pays the property tax. This lease is probably a:
Which type of lease requires the lessee to pay a flat rent?
A lease where the rent is based on a percentage of the monthly or annual gross sales of the lessee is called a:
When a lessee transfers all of his/her interest in the property, it is called a(n):
The transferee in an assignment of a lease is called the:
A lease contains a clause in which the parties agree to an adjustment of rent based upon some stated criteria. This lease clause is called a(n):
Salesperson Beth took an offer to purchase from her buyer to Broker Smith’s office to present it. The offer included a $1,000.00 promissory note from the buyer as the earnest money deposit. Broker Smith should do which one of the following upon receipt of the offer:
Which of the following would not be a required payment for the lessee under a net lease?
Regarding a promissory note,:
Which of the following is TRUE concerning promissory notes?
The lessee of an apartment and the owner of a condominium have many things in common. Which of the following is true for both? They each hold:
When the letters “HVAC” appears in a commercial or industrial lease, it normally refers to:
A tenant has a three year lease with the lessor of an apartment building. At the end of year one, the tenant is transferred to another city. The lease between the lessor and lessee is silent on the tenant’s ability to sublease or assign the lease. In this case:
Once an offer has been made and accepted by the seller, the buyer would have:
A broker has been in the business for many years. He currently has 40 exclusive listings in his office. The broker dies and his daughter, who is also a broker, takes over for him. What should she do about the current listings?
A listing broker wants to give $50 to a buyer and $50 credit against his commission to a buyer or seller who either lists with him or purchases one of his listings. With regard to his actions:
On a listing agreement what is included under the section, “Terms of the Sale?”
The transfer of personal property must be in writing if the amount or value of the property is:
What does “et ux” mean in the preliminary title report?
One party sells property to another, and within the contract, the legal description is incorrect because of a simple typographical error. This can be corrected through a legal action called:
A recorded legal document that gives constructive notice that an action affecting a particular piece of property has been filed in a state or federal court is called a(n):
A Notary Public can do all of the following EXCEPT:
Which of the following is considered a “bona fide” purchaser?
What is an “executed contract?”
The term “Secondary Market,” as used in financing, refers to:
The source of money for most home loans by institutional lenders is:
Which of the following would NOT be illustrative of an institutional lender?
What is the form a lender must give the buyer-borrower when the loan terms have changed prior to the close of escrow?
Which of the following is a general difference between individual and institutional lenders?
Which of the following lenders invest more heavily in single-family home loans?
From which of the following could you most likely secure the greatest amount of money for the longest period of time?
A home owner would be least likely to obtain a $50,000 home improvement loan from a(n):
Commercial banks are interested in liquidity and marketability of their loans. Which of the following loans would they prefer?
A construction loan would most likely be made by a(n):
The Federal National Mortgage Association (FNMA) was primarily created to:
The primary activities of FNMA in the secondary market involves:
The functions of Ginnie Mae include all of the following EXCEPT:
Which of the following statements is TRUE?
A purchaser of a home five years ago is now interested in securing an FHA loan. A salesperson would most likely introduce the homeowner to:
Who would most likely pay a premium for mutual mortgage insurance?
Private Mortgage Insurance (PMI) can be canceled when you’ve paid down your mortgage to:
Mutual Mortgage Insurance is paid for by:
Title I FHA loans are for:
All of the following are considered advantages of FHA financing EXCEPT:
Which of the following would not require a down payment?
Which of the following requires a NOV?
All of the following are characteristics of VA loans EXCEPT:
What distinguishes VA loans from FHA and other loans?
A veteran may purchase a home under Cal Vet by a:
The government actually lends the money for a(n):
Which of the following hold title under a Cal-Vet loan?
A veteran is eligible to use either the VA program or the DVA program in purchasing his owner occupied house. In which of these programs would the governmental body retain legal title to the house?
Under which of the following types of financing is the borrower required to purchase term life insurance?
Upon full repayment of a Cal-Vet loan, the borrower receives a:
Funds for Cal-Vet loans come from:
Why would a lender be interested in making a government-insured or government-guaranteed loan over a traditional conventional loan?
Which of the following would have the least impact on evaluating a prospective borrower’s income for a loan?
The ratio of a loan’s principal to the property’s appraised value is called the:
A low loan-to-value ratio indicates:
From the lenders perspective, a large down payment:
When examining someone’s ability to purchase a home, what would you use?
Regarding a promissory note,:
Which of the following is TRUE concerning promissory notes?
A promissory note that provides for payment of interest only during the term of the note is a(n):
Why would the payor consider a straight note over an amortized note?
A loan to be completely repaid, principal and interest, by a series of regular equal installments is a:
When a loan is fully amortized by equal monthly payments of principal and interest, the amount applied to principal:
A loan that requires a balloon payment at its maturity is called a(n):
A mortgage is a:
With a mortgage, who signs the note?
Mortgages and deeds of trust differ in every respect EXCEPT:
The beneficiary of a trust deed is usually a:
Mortgages and trust deeds are both considered:
A document used by the mortgagee when a mortgage is paid in full is called a:
The first step a mortgagee would take to foreclose on a mortgage would be to:
Naked legal title is held by the:
The trustor under a trust deed is the party who:
Under the “power of sale” clause in a trust deed, the authority to sell is placed with the:
Which of the following would be security for a note and deed of trust?
Which of the following gives the most protection to a property owner in default?
Default in a mortgage may be caused by:
A document used to transfer legal title from the trustee back to the borrower (trustor) after the debt has been repaid is called a:
Total foreclosure time under a trust deed most nearly approaches:
A trust deed foreclosed as a mortgage would be foreclosed by:
During the one-year redemption period of a mortgagor in default:
After a trustee’s sale, there is money left over after paying the beneficiary of the first trust deed. This money would go first to the:
Proceeds from a trustee’s sale go to the:
A deficiency judgment is possible:
A first trust deed can be distinguished from a second trust deed by:
Upon receiving notification of default on the first trust deed, the holder of a second trust deed would most likely:
A request for notice of default would be of most help to the:
Mr. Johnson agrees to assume a trust deed from Mr. Jones. Which of the following is correct?
The relationship of the trustor to the beneficiary in a deed of trust is comparable to:
An “assignment of rents” clause in a trust deed benefits the:
All of the following fees are allowed under RESPA except:
Which of the following fees are allowed under RESPA?
Broker Jones uses ABC Escrow for every transaction because of an arrangement with ABC Escrow that the company gives Broker Jones $100 for every transaction. This arrangement violates:
RESPA would apply to:
What can the lender advertise in the newspaper for a loan offering that includes negative amortization?
An agent places an ad in the newspaper saying that he will give $50 to anyone who sells or buys a property through him. Which of the following is TRUE?
Which of the following is the purpose of the Federal Truth-in-Lending Act?
The right of rescission under truth-in-lending would apply to a(n):
What is the definition of an Offset Statement?
When the Federal Reserve Board wants to tighten the money supply, it would:
During periods of tight money:
In a tight money market, when interest rates are increasing, but rental rates are stable, how does it influence the market value of real property?
Who enforces the Truth-in-Lending Act?
The clause in a mortgage note which permits the lender to declare the unpaid balance due and payable upon default by the borrower is called a(n):
To subordinate means to:
A release clause associated with a blanket mortgage is a provision which:
To pledge a thing as security for an obligation without surrendering possession of it refers to:
A package mortgage is a loan in which:
A contractor obtained a construction loan and the loan funds are to be released in a series of progressive payments. Most lenders disburse the last payment when the:
The type of mortgage loan which permits borrowing additional funds at a later date is called a(n):
The nominal rate of interest is the:
The term mortgage warehousing refers to:
A seasoned loan is a:
Equity financing refers to:
The instrument used to secure a loan on personal property is called a:
A prepayment penalty clause found in a contract is often:
The owner of a property encumbered with a first and second trust deed wants to refinance the first trust deed. What should the second trust deed contain?
When lenders use the term “mortgage yield,” they are describing:
How much is the borrower paying if a lender charges 1 points on a $250,000 loan with a purchase price is $300,000?
The conscious charging by a private lender of more than the maximum amount of interest allowed by law is known as:
Most real estate loans charge the following kind of interest rate:
What is an imputed interest rate?
When a lender “calls” a loan, he/she:
From a financing standpoint, the relationship of the parties to a Land Contract would be closest to:
The buyer under the terms of a land contract is referred to as:
At the close of a Land Contract, the vendee is entitled to:
The seller (vendor) under a real property sales contract CANNOT:
An adjustable-rate mortgage loan is tied to an interest rate called the:
In an adjustable-rate loan, the amount added to the index rate that represents the lender’s cost of doing business is called the:
An adjustable-rate loan stabilizes at an interest rate above the loan index. This increase above the index rate is known as the:
In purchasing a home, the purchaser generally gives a note secured by a first deed of trust to a lending institution. In addition, he may give the seller cash and a note secured by a second deed of trust on the property. A “request for notice” would be filed for the benefit of the:
Why are housing prices so heavily weighted when calculating the Consumer Price Index?
When the FED takes measures to implement a “tight money” market, the net effect usually results in an increase in the:
A legal act to bring about a trust deed sale can be:
What is the purpose of the Equal Credit Opportunity Act?
Who funds private mortgage companies?
Mr. and Mrs. Lee sell their house and agree to carry back a second trust deed from the buyer to help complete the financing for the sale. This is most likely due to:
Who would be responsible for paying the 1% origination fee on an FHA loan?
For FHA purposes, acquisition costs include nonrecurring closing expenses. Which of the following would NOT be included:
The purchasing power of a dollar is measured:
The Gonzales family wanted to purchase a property and wanted to assume the seller’s VA loan, “subject to.” Which of the following is correct:
On a fully amortized loan payment, principal __________ as interest __________.
Why should a buyer seek legal counsel before assuming the seller’s first mortgage?
Which of the following best describes “Cash-On-Cash” return?
What form is sent when a short sale is completed?
What loan has negative amortization for the first few years?
California real estate law originated from:
The real estate commissioner’s authority to and enforce the real estate law is called:
The technical definition of real property includes:
The classical definition of property ownership is ownership of:
Which of the following is considered real property?
All of the following are considered real property EXCEPT:
Which “runs with the land?”
Which of the following is considered personal property?
Identifying property as “personal” or “real” can be difficult because personal property can:
Personal property becomes real property when:
Personal property can never:
The most important test of a fixture is:
Property is:
Which of the following would be considered real property?
The doctrine of constructive severance applies to:
Emblements refers to:
“A” sells a farm to “B”. Crops are growing on the farm. “A” wants to harvest the crops.
Who owns the crops?
The word “percolation” refers to:
When water is returned to the water table by the process known as “percolation,” the water belongs to:
Riparian rights are best described as:
The rights of a landowner whose property line touches on a non-navigable river or stream are called:
The sudden tearing away or removal of land by water flowing through or over it is called:
The building up of new soil adjacent to a river is called:
A non-riparian land owner obtains the right to take water from another property by:
Before damming or diverting water, a landowner must have permission from:
Potable means:
Which of the following most accurately describes a joint tenancy estate?
Which of the following forms of ownership consists of an undivided interest with right of survivorship?
Ownership of an undivided interest in land with no right of survivorship is found in:
A property is owned by two persons in joint tenancy. Which of the following actions could destroy the joint tenancy?
The four unities of joint tenancy are:
If three different buyers take title to real property as joint tenants, there would be:
Which of the following is always required in joint tenancy ownership of real property?
Archer, Baker and Charles hold title to real property in joint tenancy. If Archer were to die:
A, B, and C are co-owners of real property in joint tenancy. C sells his interest to D and shortly thereafter dies. If C had also executed a will, leaving all of his property to his sole heir, who we shall call E, title to the property would vest as:
Truman deeded his farm to his sons, “A,” “B” and “C” as joint tenants. “B” sold his interest to “W.” “A” died and willed his interest to “S” (his heir). “C” retained inheritance. Ownership of the property would be:
Smith and Jones own property as joint tenants. Jones, without Smith’s knowledge or consent, encumbers his interest by borrowing $10,000. Before making any payments on the loan, Jones dies. Smith now owns the property:
Partition action refers to:
Tenants in common have equal right of:
To hold real property as tenants in common, the individuals must:
Joint tenancy and tenancy in common both share the unity of:
If a client asks how they should take title, the broker should say:
Community property is property owned by:
Community property laws are based upon:
An agreement to sell community real property, signed by one spouse only is:
A husband alone, without his wife’s consent, may:
A brother and sister CANNOT hold property as:
A person holding title to property in severalty would most likely have:
Among the principles involved in the “Bundle of Rights” is the right to:
Rights of ownership include everything EXCEPT:
The word “fee” as used in connection with real estate means:
A lease would be a:
All of the following are considered less-than-freehold estates EXCEPT:
Which of the following is considered a “fee estate?”
Which of the following is false regarding a “fee estate?”
Which of the following best describes an estate of inheritance?
A grant deed that conveys title to real property without limitation is called a:
All of the following describe a fee simple interest EXCEPT:
One man transferred title to a house with a condition that no alcoholic beverages will be sold on the premises. The estate created is known as a(n):
The best possible estate to have is:
Which of the following is considered a “less than freehold estate?”
Abigail Blake leased an apartment in a recreation area from July 1, 2014 through August 31, 2015. She holds a(n):
Under a lease, the leasehold interest lies in the:
In real estate the word “tenancy” means:
By conveying less than his fee estate, the grantor retains a:
A lessee can remove:
Brown leases a residence from Baker on a three-month written lease. Upon expiration of the written lease, Brown retains possession of the property without the consent of Baker. Brown now holds a(n):
What is bifurcation?
Mark enters into an agreement to lease to Steve for 10 years. Four years later Mark dies. Steve then discovers that Mark’s interest was a life estate. Which of the following is correct?
As spelled out in her deceased husband’s will, Colleen can collect the rents from an apartment building for her lifetime, after which the apartment building goes to their church. Colleen holds a:
A person who held a life estate leased the property for five years and then died. The new owners ordered the lessee to move out. The lease was:
The holder of a life estate can do all of the following EXCEPT:
Which of the following is not a lien nor an encumbrance?
Which of the following liens covers all the property of a person?
Which are specific liens?
Taylor was injured while swimming in Smith’s new pool. Taylor obtained a $2,500 judgment against Smith and recorded an abstract of judgment with the county recorder. This amounted to:
Which of the following is true regarding encumbrances?
A lien imposed by court action would be:
Easements are:
Land subject to an easement is said to be:
Which is the most common type of easement on residential property?
A water company’s right to run a water line through private property would most likely be:
A parcel of land known as the servient tenement:
If land has a servient tenement, it has a(n):
Ingress and egress apply to:
Which of the following does not “go with the land?”
Prescription most nearly pertains to:
To obtain an easement by prescription, one must:
An easement by prescription may be lost by:
An easement may be created for what length of time?
When a government or business gives the right to use its land without any interest in the land it is called a:
Mr. Coronado has an easement granted by the government to extract minerals on a piece of property. Mr. Smith acquired the adjacent land and put up a fence which blocked Mr. Coronado’s access. Regarding Smith’s actions:
A judgment will be most effective in the county where the:
Which of the following must be recorded to be effective?
A judgment that has been recorded would be a(n):
A court order prohibiting an act from being done is a(n):
The seizure of property prior to a judgment is known as:
An attachment is:
An attachment lien is good:
Of the following, which lists the events in their proper order?
The Statute of Limitations on action for removal of an encroachment is:
The eave of your neighbor’s new house hangs six inches over your land. This describes a(n):
Which of the following may file a valid mechanic’s lien?
Mechanic’s liens are:
Mechanic’s liens are based upon:
A mechanic’s lien has advantages over other types of liens in that:
In new construction financing, when does the lender usually release the final payment to the borrower?
A completion bond would be for the protection of the:
After paying his general contractor in full, a property owner files a notice of completion. Which of the following is correct?
A property owner would post a notice of nonresponsibility to:
A mechanic’s lien filed today would undoubtedly take precedence over:
The difference between a judgment lien and a mechanic’s lien is:
Mr. Friedman purchased real property on which there was an old home. He removed the run down home and had the lot graded. He immediately obtained a construction loan secured by a deed of trust. During the construction period, a painter who had not been paid filed a mechanic’s lien. Which of the following is correct?
Conditions differ from covenants in which of the following ways?
Which of the following statements concerning deed restrictions is correct?
Deed restrictions are:
A covenant in Johnson’s deed states that he may not operate a dog kennel on the property. Johnson proceeds to build a commercial dog kennel. Adjoining land owners would have recourse by:
Deed restrictions are created by:
Deed restrictions based upon race are:
All of the following may use the power of eminent domain EXCEPT:
When a governmental body takes private land for public use, it is accomplished through the right of:
Which of the following is an example of police power?
A power granted by an enabling act refers to:
All of the following are factors considered when determining whether an item of personal property has become real property, EXCEPT:
Based on the white paper on smart community planning in California, which of the following is superseded by Form-Based Planning?
A property owner, whose house is located next to the landing strip of a small airport, successfully sued and received judgment against the airport, forcing them to buy his house. This is known as:
A property owner’s petition for rezoning is rejected by the city planning commission. He/she:
The city’s master plan would include:
When the local building authority permits an inconsistency to the construction, systems or standards within applicable building codes, it is referred to as a(n):
Which of the following is NOT appurtenant to real estate?
Property once zoned as commercial is re-zoned as residential. This is referred to as:
A negative declaration would indicate:
The designation “M” on a zoning map would stand for:
In the event of a conflict between local building codes and the Health and Safety Code, which would prevail?
All of the following statements are true about zoning EXCEPT:
Zoning that allows residential property to exist on land zoned for industrial use is called:
California’s housing and construction are regulated by:
When can you hire a contractor without a contractor’s license?
What is a commercial acre?
A “key lot” is:
Which of the following zoning classifications would permit the construction of a three story residential dwelling?
Jack leases a single family dwelling property from Mr. Michaels. After the lease 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 general contractor hired a subcontractor to install the hardwood floors in a home under construction. If the subcontractor had to file a mechanic’s lien in order to get paid, the mechanic’s lien would date back to the date: (relocate)
Which of the following are ways in which the government has control over real property?
Steve has an old building where he runs his business. The city has just condemned the property through eminent domain. In this case:
Joan Black owned property in severalty as a single woman. She later married and owned the property under her married name, Joan Redding. This may be confusing in the future because:
An owner of a property which was located near an airport was constantly bothered by the noise of low flying aircraft. He wanted to bring court action and force the city to condemn the property because of the noise. This would be an example of:
If you were granted the right to purchase a business with ready product, business plans, development plans and marketing plans, this would be a(n):
If you went to the city/county and wanted to change the electrical requirements, specific to the structure, from the standard normal requirements, this would be a(n):
Where there is a conflict between local building codes and the State Housing Act, which will prevail?
The term “infill” is most closely defined as:
What is the minimum square feet for a master bedroom?
What is the minimum depth of a closet?
Who regulates franchises in California?
What is the length of measurement referred to as a “chain?”
The act of joining or uniting one thing to another, as in attaching personal property to real property thereby creating a fixture is called:
All of the followings are true about the “frost line” EXCEPT:
All of the following are essential to the creation of an agency relationship, EXCEPT:
An agency relationship can be created by all of the following, EXCEPT:
The phrase that best describes the nature of a broker’s duty to keep a principal fully informed is:
When acting as agent for seller Jones, real estate broker Smith:
Under the law of agency a fiduciary relationship is created between the broker and the seller on execution of the listing agreement. As far as the broker’s responsibility to third parties, the broker:
The law of agency is concerned with the rights and duties between and among the:
Which of the following statements does NOT correctly describe a fiduciary?
A power of attorney can be terminated by the:
An attorney-in-fact can best be described as a(n):
All of the following are essential elements of an agency agreement EXCEPT:
An agency relationship may be created by:
Seller A let buyer B assume that Broker C was his agent. This type of agency relationship is an example of:
An agency relationship may be created by all of the following EXCEPT:
An agency relationship may be terminated by:
In the correct order, list the chain of events necessary to comply with the agency disclosure law:
A real estate licensee offered to rebate part of his commission to the buyer if the buyer would increase his offer to a level that the agent knew would be high enough for the seller to accept. Under these circumstances;
A licensed real estate broker representing the seller becomes the gratuitous agent (no fee) of the buyer and accepts all of the fiduciary responsibilities as the buyer’s agent when he or she:
A real estate licensee who misrepresents a property to a buyer while acting as agent for the seller may face:
Nondisclosure of a dual agency by a broker can result in:
If you are a subagent of the listing broker, you are working for the:
A material fact that must be disclosed to a purchaser would include all of the following EXCEPT:
A real estate agent is under a duty to use which of the following in the performance of his/her duties?
A real estate broker should regard himself/herself as a:
When a licensee is acting as the buyer’s agent, this fact must be disclosed to others:
Which of the following statements is most nearly correct concerning buyer’s agency:
Which of the following best describes a “dual agency?”
Which of the following describes the unlawful form of dual agency called “divided agency?”
A “dual agency” is legal if:
Which of the following statements is correct?
Owner Johnson tells broker Stone that he wants to sell his house as soon as possible and would accept $350,000. Stone tells buyer Smith that Johnson has financial troubles and will accept a much lower price, possibly as low as $300,000. Johnson ultimately accepts an offer from Smith for $300,000. Broker Stone is guilty of:
Who is more likely to earn the commission?
When is a properly licensed real estate salesperson most likely to get his/her commission?
Johnson, a real estate broker, listed a property. Suzie, a salesperson working for broker Sims, received an offer. Donna, a salesperson working for broker Johnson, got the offer accepted. Who earned the commission?
A real estate commission is usually based on the:
Typically, when leasing real property, the commission of the leasing agent is based upon a percentage of:
As the agent for the seller, a real estate broker negotiated a sale. By agreement, the licensee can be paid his commission in the form of:
A licensed real estate broker who specializes in property management activities usually receives commissions:
Broker Adams represents a buyer in a single-family home transaction. As an incentive, he agreed to rebate part of his commission to the buyer. Broker Adams is required to:
With regards to a fiduciary relationship, a Broker is to a Seller, as a:
You are a California real estate broker. A prospect is referred to you by an out-of-state broker and a sale is consummated by you. You want to split your commission with the cooperating broker. Under the California Real Estate Law:
A real estate broker, licensed only in California, verbally agreed to split a commission with a real estate broker not licensed in California:
If a broker does not get his commission, he is legally entitled to:
A salesman asked the listing broker, who was not his employing broker, to advance him $600 against the commission the listing broker had agreed to pay to the selling agent. The listing broker paid the selling salesman the $600 even though the deal had not yet closed escrow:
In the case of a sale of property where the deceased died without leaving a will, the commission would be set by:
The Real Estate Commissioner may fine a broker which of the following amounts for illegal payment of commission to an unlicensed person:
The maximum commission a broker may charge for the sale of residential property is:
A real estate broker negotiated the sale of a real property and acted as agent for the seller. By agreement, the licensee can be paid his commission in the form of a(an):
An owner of a home listed it at a price which would leave him $18,800 after the broker had received a 6% commission. If the broker sold the property at the listed price, how much commission would he receive:
A salesman asks a broker other than his own for a $100.00 advance on his next commission. If the broker pays it, he is:
The commission on the sale of a $170,000 property was 6% of the selling price. Two salesmen had worked on the property, one listed and the other sold. It was agreed that they would split the commission, 35% to one salesman, 25% to the listing salesman, and 40% going to the employing broker. How much did the selling salesman receive:
A parcel of land sold for $800 less than the listed price of $20,000. If the broker agreed to reduce his commission to 4%, his commission would amount to:
A property sold for $31,000. The broker agreed to a 6% sales commission. What would the salesman receive if his share was 45% of the agreed commission:
Which of the following types of sale requires a disclosure that the sales commission is negotiable?
An agent must submit all new offers to the owner until:
Jackson leased his home to Sullivan with a verbal agreement to sell the property to Sullivan. Jackson knows that Sullivan has been making significant improvements to the property in reliance on that verbal agreement. Jackson now declines to sell the property to Sullivan. Which of the following best describes the rights of the parties?
An agent becomes the agent of the seller when both the seller and the agent sign:
Commissions rate price fixing is a violation of the:
All of the following require an Agency Disclosure Agreement EXCEPT:
A Buyer is interested in a property. Buyer calls Broker to see if she has a listing on the property. Broker says no, but that the owner is a client. Broker calls the owner to secure a listing and to let the owner know that she has a buyer. The owner says the property is not for sale. Two weeks later, the owner sells the property to the buyer.
Broker Sue had a Buyer who wanted to purchase a farm. She told the buyer she would contact the owner because he is a client. When she talked to the owner he said his property wasn’t for sale. A couple of months later she found out that the seller had sold directly to the buyer without involving her. What is Broker Sue’s remedy?
A real estate salesperson shows their own income property to a prospective buyer. The buyer seems interested and salesperson says, “you should submit a full price offer” but never tells the buyer it is his own property. This behavior is:
When a deed contains discriminatory language or clauses:
CC&R’s are most likely to be found in:
A property owner intends to build an addition onto the back of his house. He should check: