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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:
A contract signed under duress is:
What is it called when one person is substituted for another in a contract?
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):
Select the choice which most nearly represents “price fixing” from the following:
An exclusive authorization a right to sell listing, does not contain a complete legal description.
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:
Which 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 characteristics of FHA loans 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 man’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?
Default in a mortgage may be caused by:
Which of the following gives the most protection to a property owner in default?
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?
From a financing standpoint, the relationship of the parties to a Land Contract would be closest to:
When a lender “calls” a loan, he/she:
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?
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 best describes a “dual agency?”
Which of the following describes the unlawful form of dual agency called “divided agency?”
Which of the following statements is most nearly correct concerning buyer’s 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: