While waiting in the lobby of the Fair Real Estate Company's office, Samir and Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT neighborhood. It's very "colorful," if you know what I mean." Which ruling by the Supreme Court dealt with this issue?
A. The prohibition of discrimination based on sex and discrimination against handicapped persons and families with children, Jones v. Mitchell.
B. Fair Housing laws apply to home sellers as well as to agents. If an agent goes along with a client's discriminatory act, the agent is equally liable for the violation, Mayer v. Johnson.
C. All discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.
D. All brokers must display a HUD standard poster affirming the broker's compliance with fair housing laws in selling, renting, advertising, and financing residential properties, Jones V. Smith.
Christine and Scott have been married for fifteen years. They a primary home, and a vacation home. The couple purchased their primary home together after their marriage, but Scott owned the vacation property prior to the union. Christine and Scott are now getting divorced. Christine wants half of their residence and half of the ownership of the vacation property. At times they have rented the vacation home and the proceeds have gone to their joint bank account. Does Christine have any legal right to the ownership of the vacation home?
A. Yes, due to the commingling of the funds gained from rental proceeds, Christine will be allowed shared ownership of the vacation property.
B. Yes, although Scott came to the marriage with the vacation property, all property owned by each partner in a marriage is thus shared by the spouse.
C. No, Scott came to the marriage with the vacation property, therefore, it may remain separate property. But due to the commingling of the rental proceeds from the property in the joint account, Christine does have a right to half of the proceeds.
D. Both A and B
Chandra and Fabian have heard that it is unnecessary to record a deed. Is this accurate?
A. No, it is necessary and required to record a deed. The deed will not be valid unless it is signed, recorded, and notarized by a notary public.
B. Yes, it is not necessary for a deed to be recorded. It is still valid and presumed to have been delivered without such recording.
C. Yes, it is not necessary for a deed to be recorded. However, a recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record and convey the transfer of title.
D. No, it is necessary and required to record a deed. If it is not recorded, the first to record the deed is considered the first in right to the property.
Hannah want to lease a house from Max. The Contractual Lease states that Hannah, the tenant, will be leasing from Max, the landlord, for two years beginning July 1. She will pay $1,000 per month and it is due by the first of each month. Is there a minimum requirement for a California lease missing?
A. No, the lease has met all of the minimum lease requirements of the state of California
B. Yes, the missing minimum requirement is the absence of the issue of a security deposit
C. Yes, the missing minimum requirement is the absence of any assignment and subletting options.
D. Yes, the missing minimum requirement is the absence of a sufficient description of the property such as an address or legal description. The minimum requirements are: duration of the lease, amount of rent, due date, name of the parties, sufficient description of the property and evidence that both parties intend to create a landlord-tenant relationship.
Shane is renting a bungalow from Tom. Shane monthly rent is $1,600 and Tom requires a $6,400 non-refundable security deposit which include the first month rent. Is this an acceptable amount for a security deposit?
A. No, the maximum security deposit allowed in California for an unfurnished property is two months rent. The correct amount would be $4,800 including the first month rent. A security deposit cannot be non-refundable.
B. No, the maximum security deposit allowed in California for an unfurnished property is one month's rent. The correct amount would be $3,200 including the first month's rent and the security deposit. Additionally, security deposits cannot be labeled as nonrefundable.
C. Yes, the maximum security deposit allowed in California for an unfurnished property is three months' rent. The amount of $6,400 includes the first month's rent. The security deposit cannot be labeled as nonrefundable.
D. No, there is not a maximum security deposit regulation in California. Landlords may decide on the amount based on the property's value.
Kevin own a residential apartment. He is updating the lighting fixtures in all the units and his maintenance crew has been going in and out of the units without notifying the tenants. The tenants are surprised, frightened, and inconvenienced. Is it legal for Kevin crew to enter an occupied unit without notification to the tenant?
A. Yes, the landlord may enter the rental property at any time to make necessary or agreed repairs, decorations, alterations, or improvements.
B. No, the landlord must the tenant at least a 24-hour notice and his crew can only enter the unit during normal business hours.
C. No, the landlord may only enter the rental property in case of emergency, to supply necessary or agreed services when the tenant has abandoned or surrendered the premises or under court order.
D. Yes, because the landlord has okayed the entrance by his representatives for work to improve the rental properties, it is acceptable for the unannounced entrances.
B. PC 639-639a: Every person who gives, offers, or agrees to give to any director, officer, or employee of a financial institution any emolument, gratuity, or reward, or any money, property, or thing of value for his own personal benefit or of personal advantage, for procuring or endeavoring to procure for any person a loan or extension of credit from such financial institution is guilty of a felony
B. PC 518, 519: Fear, such as will constitute extortion, may be induced by a threat of any of the following:
1. To do an unlawful injury to the person or property of the individual threatened or of a third person.
2. To accuse the individual threatened, or a relative of his or her, or a member of his or her family, of a crime.
3. To expose,
or to impute to him, her, or them a deformity, disgrace, or crime.
4. To expose a secret affecting him, her, or them.
5. To report his, her, or their immigration status or suspected immigration status.
One Payment break down:
1. $150,000 x .075 (7.5%) = $11,250 annual interest amount
2. $11,250 / 12 = $937.50 monthly interest amount
3. $987.00 - $937.50 = $49.50 principal amount
4. $150,000.00 - $49.50 = $149,950.50 new balance amount
Two Payment break down:
1. $149,950.50 x .075 (7.5%) = $11,246.29 annual interest amount
2. $11,246.29 / 12 = $937.19 monthly interest amount
3. $987.00 - $937.19 = $49.81 principal amount
4. $149,950.50 - $49.81 = $149,900.69
Deanna have good credit, but she does not have a lot of cash for a down payment. She saw an ad for a new condo with no down payment. Should she look for any other information in the ad?
A. No, there is no down payment required gives her the initial information to peak her interest and take a look at the condos. After taking a look at the property then she can fill in the details on the paperwork.
B. Yes, she should make sure the amount or percentage of down payment is there, annual percentage rate and if an increase is possible, total finance charge, and total number of payments and due dates.
C. Yes, she should make sure the amount or percentage of down payment is there, terms of repayment, annual percentage rate, and if an increase is possible, total finance charge and total number of payments and due dates.
D. Yes, she should make sure the amount or percentage of down payment is there, terms of repayment, annual percentage rate, and if an increase is possible and total number of payments and due dates.
Alexandra and Marita are forming a real estate syndicate. They have their initial investments and are ready to proceed. What happens next?
A. Operation, origination, completion, or liquidation
B. Syndication, general partnership, REIT
C. Origination, operation, completion, or liquidation
D. Origination, exemption, corporation
Ken has fallen behind on his property taxes. He has received the intent to sell notice and is terrified of losing his home. Ken lost his job and cannot immediately repay the back taxes. How can Ken keep from losing his residence?
A. Ken has already lost the title to his home by falling behind in his taxes.
B. After the "intent to sell" notice, a three-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees.
C. After the "intent to sell" notice, a five-year period of redemption begins. Ken can redeem his property from delinquency by paying all back taxes, interest, penalties, and any other applicable fees.
D. After the "intent to sell" notice, Ken must repay all back taxes, interest, penalties, and any other applicable fees within one year, and pay the current taxes on time to avoid losing the title to his home.
How many primary steps must be taken to develop a general plan? Who is required to develop a general plan? What are the primary steps, in order, to achieve the desired general plan?
A. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: resource analysis, formulation of community goals, and the plan implementation.
B. There are five primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are: resource analysis, formulation of community goals, and the plan implementation.
C. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city is required to develop a general plan. The steps are as follows: resource analysis, the plan implementation and formulation of community goals.
D. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: Formulation of Community Goals, a resource analysis and the plan implementation.
What is the major difference between the real estate business in general and real estate brokerage?
A. The general real estate business consists of production, marketing, and financing of real property; a brokerage is directed primarily toward the sale, exchange, lease, rental and financing for compensation.
B. The brokerage business consists of production, marketing and financing of real property, the general real estate business is directed primarily toward the sale, exchange, lease, rental and financing for compensation.
C. Both a and b
D. None of the above
Which of the following is an action taken by a mineral, oil, and gas specialist on behalf of others?
A. Solicit borrowers or lenders for or negotiate loans on mineral, oil or gas property
B. Lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property
C. Assist another in filing an application for the purchase or lease of, or locate or enter upon mineral, oil, or gas property owned by the state or federal government
D. All of the above
Howard, a real estate agent, has heard about a specialized area of real estate brokerage, the mineral, oil, and gas brokerage. Howard is trying to find his niche in the industry and believes this is the direction in which he needs to head. What specialized license does Howard need to work with mineral, oil and gas transactions?
A. He must obtain a mineral, oil, and gas brokerage certification in addition to his real estate salesperson license.
B. He must obtain a securities license to work with mineral, oil, and gas transactions in addition to his real estate salesperson license.
C. He does not need a specialized license to work with mineral, oil, and gas transactions
D. Both A and B
The Browns have a real estate agreement with Sell Fast Real Estate Company. A couple makes a ridiculously low offer on their home, which is five-bedrooms, five-baths in Malibu. The offer is $200,000 less than the Browns' asking price. Does the broker have to present the offer to the Browns even if it is obviously going to be rejected and waste everyone's time?
A. No, if an offer is clearly not going to be accepted, the broker, acting in the seller's best interest, does not have to present the offer.
B. Yes, according to the regulations of the Real Estate Purchase Agreements in California, all offers received by the broker must be presented to the seller, no matter how out of line with expectations.
C. Yes, the agent, acting in the seller's best interest, must present the offer. In discussing the property with other prospective buyers, there is a record of an offer having been extended, making the property appear desirable.
D. None of the above
Jackson, a broker, is accused of commingling his money with trust account funds. His broker's trust account is a non-interest-bearing account. The current balance of the trust account is $430,000. The earnest deposit funds portion of account totals $415,000, the broker's initial deposit totals $15,000. Is Jackson guilty of commingling?
A. No, he can clearly show through well-kept records his initial deposit of $15,000 and the trust fund money of $430,000. He is not earning interest from any part of this account including his initial deposit of personal funds.
B. Yes, he should not have any money of his own ever mixed with clients' earnest money deposits.
C. Yes, Jackson's initial deposit to open the account should have only total about $1,000. The $15,000 he deposited of his own money to open the account is considered excessive.
D. Yes, Jackson's initial deposit to open the account should have only totaled about $200. The $15,000 he deposited of his own money to open the account is considered excessive.
Moe have made an offer on a new home. The home is new construction and scheduled to be completed by the end of the year. He provide a purchase deposit, a check in the amount of $40,000 to her agent, Suzette. Suzette at the broker's direction, deposits the earnest money in the broker's trust fund account within two business days of the receipt of the funds. Did Suzette follow the proper procedures?
A. No, the check should not have been cashed. If a check is used as an earnest money deposit, it is to be held until acceptance of the offer. The seller must be also be informed the buyer's check is being held and not negotiated.
B. Yes, Suzette deposited the earnest money in the broker's trust fund account as directed. She also deposited the check within three business days of receipt. Unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed.
C. No, Suzette needed to deposit the earnest money in the broker's trust fund account within two days of receipt, not necessarily two business days.
D. Both A and B
Amy is confined to a wheelchair. She is self-sufficient in day-to-day living, has a career, and is looking for a new apartment. She decides to take a tour of Golden Gate Gables Apartments. She was very happy with the two-bedroom unit and wants to put in an application for the unit. She has a special van to accommodate her wheelchair that requires an extra-wide disabled parking space. The Golden Gate Gables does not provide any special parking for the disabled. If Amy's application is approved for the apartment, does the apartment complex have to install a special parking spot for Amy?
A. Yes, according to the ADA, the first priority is the "get to the door standard" that includes installing ramps, widening entrances, and providing accessible parking spaces.
B. No, as long as Amy has received full disclosure of the absence of any special parking for her needs, if she decides to pursue the application further, that is her decision.
C. No, Amy cannot expect special accommodations for herself because she decides she would like to live in the complex. It would take time and money to make the necessary changes. The complex is not obligated to make those changes for her.
D. Both B and C
Johanna is selling her restaurant, J's Cafe. She has decided restaurant hours are too long for her and is changing careers. Matt, a licensee, is assisting Johanna in the sale of the cafe. She wants to sell both the real property, the restaurant itself, and all of the personal property inside to one buyer. A buyer is interested in buying the property. How will Matt handle the sale of both the real property and the business itself?
A. Matt, as a licensee, is not authorized to conduct the sale of a business. He may assist Johanna in the real property transaction, but not the personal property that represents the business.
B. Matt must treat the sale of the business and the sale of the real property as two separate and concurrent transactions with two concurrent and contingent escrows.
C. Matt may sell the entire business opportunity in one sales transaction. Due to its encompassing the real property, the business, and the personal property of the restaurant, it is a single sale.
D. None of the above
Ross, a licensed residential real estate appraiser, will go to appraise a real property. How would he appraise the property?
A. State the problem, gather, record and verify the necessary data. Analyze and interpret. the neighborhood analysis, neighborhood cycle and the site analysis
B. Gather, record and verify the necessary data. State the problem. Neighborhood analysis, neighborhood cycle, and site analysis
C. Gather, record and verify the necessary data. State the problem. Analyze and interpret. Neighborhood analysis, neighborhood cycle, and site analysis
D. None of the above
Janet is a broker who negotiates a number of loans to specific subdivisions. She took part in 27 loans to homeowners in one subdivision. Due to the large number of loans, she has to report it to the California BRE. What is the name of this reporting process? How often must the reports be made? What is an additional requirement for making these reports?
A. The annual and quarterly process is Uniform Reporting. Additionally, if a broker negotiates more than $5,000,000.00 in loans annually, they must take part in the reporting.
B. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in the reporting.
C. The annual and quarterly process is Trust Reporting. Additionally, if a broker negotiates more than $2,000,000.00 in loans annually, they must take part in the reporting.
D. The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, they must take part in the reporting.
Which are the four elements required for a valid contract?
A. Legally competent parties, offer and acceptance, consideration, and legality of object
B. Legally competent parties, offer and acceptance, consideration, and terms
C. Legally competent parties, offer and acceptance, assignment and legality of object
D. Legally competent parties, offer and acceptance, contingency, and legality of object
Sacramento artist S.C. Heet has transferred a portion of her property, via a grant deed, to Cameron Dulle. However, this deed did not set forth in writing the two primary warranties Cameron should have on the property: first, that S. C. has not already transferred the title to another person; and, second, that the estate is free of any encumbrances, other than what has been disclosed to the grantor. Which of the following is true of this situation?
A. Cameron must file a quiet title lawsuit in order to alter the transfer to include these warranties.
B. Cameron must accept the situation as is, unless he can convince S.C. to alter the transfer willingly.
C. Under a grant deed, the two warranties that S. C. has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present.
D. None of the above
San Diego broker Cal Abrams has avoided the technological trend of the past 20 years. Finally, he's jumped online and realized what the buzz is about: He can potentially reach MILLIONS of customers just by running one little advertisement! When he talks to his salespeople, they tell him it's not as easy as that. In California, there are regulations to follow. He's ashamed to admit it, but since he was never interested in the Internet or "that new Web thing," he's not paid much attention to these regulations, and in fact, he had forgotten all about them until his salespeople reminded him. What must Cal do if he wants to advertise on the Internet?
A. He must first send the advertisement to the California DRE for approval, and then use it once it's approved.
B. Cal must file the Approval of Electronic Advertisement Form (AEAF), along with the appropriate filing fee, for the DRE's approval. Once the approval is received, the advertising may begin. If the AEAF is not approved, he may submit a new advertisement within 30 days
without
paying an additional fee.
C. Cal must be sure to indicate his licensed status on his advertisements.
D. None of the above
California residents Kate and Jennifer decide to make a "deal": Kate will sell Jennifer her new Dell laptop for $600, a steal since she paid over $1,000 for it. They both feel they've gotten a great deal. Does this agreement need to be in writing, under California law?
A. Yes, because under California law, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $200.
B. Yes, because under California law, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.
C. No, because this is personal property, and written agreements are not required for personal property sales.
D. No, because the value of this computer was under $2,000.00. California law ONLY requires that an agreement for the sale of personal property with a price or value of more than $2,000 be in writing.
Pauline has just signed a lease agreement with landlord, Wayne to rent a house he owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October 30, 2016) dates, and sets forth the rent amount and due dates and all additional property and personal information required in such a lease. Wayne hands a copy to Pauline, but she notices that he has not signed it. When she comments about this to him, he tells her that signatures are not necessary since the lease is for less than a year. Which of the following is true of this situation?
A. Wayne is correct. Under the Statute of Frauds in California, leases of less than one year are not even required to be in writing, and therefore, signatures are not required.
B. Leases of less than one year are not required to be in writing. However, if a lease is in writing, then it must be signed by the lessor (in this case, Wayne).
C. Leases of less than one year are not required to be in writing; but if there is a written lease, then it must be signed by both the lessee and lessor.
D. Because the property being leased is located in Northern California, a lease agreement is required to be both written and signed by the lessor if the lease period is for 6 months or more. Therefore, Wayne was incorrect and he must sign the lease. If he does NOT sign the lease, then it will remain valid, but will not be court-enforced, should Pauline default on any of the related provisions.
Craig has just signed a contract to sell his home to buyer Ivy. The contract has met all the necessary requirements, and all inspections and other mandates have gone along as expected and as agreed to until one week before closing, when Craig decides to back out. However, he understands that he could face legal action by Ivy; so he offers to sell her another house he owns and has rented out for the past few years, in lieu of the Bernardino one promised. The second home is worth $15,000 more than the originally contracted one, and has an extra bedroom. However, Ivy isn't interested. Craig refuses to complete the sale on the original home. Which of the following statements is true of this situation?
A. Ivy may sue Craig for specific performance, because no two properties are exactly the same and he hasn't fulfilled his end of the contractual agreement.
B. Craig has the right to refuse to sell to Ivy within up to 3 business days prior to the closing date for the sale. No penalties are to be paid from either party to the other.
C. Craig has the right to refuse to sell to Ivy within up to the day prior to the closing date for the sale. Any charges incurred by Ivy in the contractual process must be refunded to her by Craig within 24 hours after the original time set for closing.
D. Craig cannot force Ivy to accept his offer of the other property. However, under California Civil Code, if the seller in this type of situation (Craig) offers the prospective buyer a home of equal or greater value, with an equal or greater number of bedrooms and square footage, the buyer may not bring legal action against that seller.
Heet has transferred a portion of her property, via a grant deed, to Cameron. However, this deed did not set forth in writing the two primary warranties Cameron should have on the property: first, that Heet has not already transferred the title to another person; and, second, that the estate is free of any encumbrances, other than what has been disclosed to the grantor. Which of the following is true of this situation?
A. Cameron must file a quiet title lawsuit in order to alter the transfer to include these warranties.
B. Cameron must accept the situation as is, unless he can convince Heet. to alter the transfer willingly.
C. Because this transfer has occurred with a grant deed, the two necessary warranties, as explained, are implied in the deed. However, under the Statute of Limitations, contracts must be in writing to be enforceable; so Cameron's coverage in this situation will not stand up in court.
D. Under a grant deed, the two warranties that Heet has not already transferred the title to another person, and that the estate is free of any encumbrances, other than which has been disclosed are implied within the grant. These implied warranties do not need to be stated in the deed, but are still present.
Jane sold her personal home for $148,000. Two months later she purchased and moved into a new home that cost $145,000. The adjusted cost basis of the first home was $140,000. For purposes of federal income tax, which statement is true?
A. A basis of $148,000 and no taxable gain
B. A basis of $145,000 and a taxable gain of $3,000
C. A basis of $140,000 and a taxable gain of $8,000
D. A basis of $140,000 and no taxable gain
Jenny's home appraised for $550,00. Her asking price was $560,000 and the property sold for $575,000. What will the new owners pay in property taxes?
A. $5,500 the first year, plus a maximum 2% increase in market value per year
B. $5,600 every year, with no increase
C. $5,750 the first year, plus a maximum 2% increase in market value per year
D. $5,750, plus a maximum 10% increase in market value per year
1. Discriminatory misrepresentation - an agent may not conceal available properties, represent that they are not for sale or rent or change the sale terms for the purpose of discriminating
- Ex. An agent may not inform a minority buyer that the seller has recently decided not to carry back second mortgage financing when in fact the owner has made no such decision
2. Discriminatory
advertising - an agent may not advertise residential properties in a way as to restrict their availability to any prospective buyer or tenant
Providing unequal services - an agent may not alter the nature or quality of brokerage services to any party based on race, color, sex, religion, and ethnicity
- Ex. If it is customary for an agent to show a customer the latest MLS publication, the agent may not refuse to show it to any party
3. Providing unequal services - an agent may not alter the nature or quality of brokerage services to any party based on race, color, sex, religion, and ethnicity
- Ex. If it is customary for an agent to show a customer the latest MLS publication, the agent may not refuse to show it to any party