Riparian rights would include Tenancy in common requires unity of What factor would most limit the accuracy of the market data appraisal method? Rapidly changing economic conditions Which of the following is not a lien against real property? Recorded private restrictions A house sold for $575k and listing broker got a 6% commission. Listing broker and selling broker agreed to split the commission 50/50. The selling salesperson received 70% of the selling office’s commission. What amount did the selling salesperson receive? 575k X 0.06 = 34,500 12,075 What essential element is necessary between broker and principal in a transaction involving real property? There must be a written contract of employment Which of the following easements run with the land and is binding on all subsequent owners? A listing agent must reveal material facts to the seller because the agent is a/an Which if the following is the purpose of the Truth in Lending Act? Requiring disclosures to consumers regarding the terms and total costs of credit In a closing statement, the term “recurring costs” refers to: When a home is constructed, consideration is given to the positioning of the building relative to its surroundings and the sun, wind, and other elements. This placement is called: A buyer makes and signs a written offer. The seller writes in one small change to the offer and signs it. This document is known as: In a contract, the meeting of the minds between buyer and seller is evidence by: When a deed of trust is terminated, the trustee will prepare a: With air conditioning unit, the higher the energy-efficiency ration (EER), the: Which of the following is not a consideration in determining whether or not an item is a fixture? Which of the following would be important in the process of filing a mechanic’s lien? All of the above Notice of
nonresponsibility For buyers of homes located in subdivision, the Final Subdivision Public Report provides assurances of all of the following EXCEPT The homes’ prices reflect their fair market values Which would a court disregard in deciding whether an item of personal property has become real property? Two people own a house as joint tenants. One co-tenant executes a promissory note secured by a deed of trust against her interest in the house. Which of the following statements is true? This places the beneficiary in a precarious position, since the lien created by the deed of trust will be extinguished upon the death of the borrower Under what type of lease does a lessee pay for maintenance, utilities, and taxes along with rent? When a contingency clause is used in a purchase agreement, which of the following information should be included? All of the above
Nature of the contingency There are 3 processes involved in the issuance of a standard title insurance policy. Of the following, which is not one of those processes? Determinations of correct boundary lines through a survey of the property to be insured Which of the following would not contribute to functional obsolescence? On a buyer’s closing statement, which of the following would appear as a debit? A comparable property has a feature that the subject property lacks. Under the market data approach, how will an appraiser treat this feature? The feature’s value is subtracted from the value of the comparable A developer, Purcell, purchased 2 lots of equal size for $180k each. She divided them into 3 lots of equal size that she sold for $150k each. Assuming no other expenses, what was her % of profit? Purchase: 180,000 X 2 = 360,000
Which of the following methods would create an easement that would be easiest to terminate for nonuse? The characteristic that distinguishes real property from personal property is that it: What is the main difference between the natural hazards disclosure statement and the real property transfer disclosure statement? The transfer disclosure statement is limited to information that the seller has, while the natural hazards disclosure requires additional research A contract that provides for a commission for the broker regardless of who finds a buyer is a/an: Exclusive right to sell listing A tenant may abandon a lease if she is constructively evicted by the landlord’s actions. Which of the following examples would not be constructive eviction? The landlord fails to repair excessive wear and tear caused by the tenant All of the following items are subjected to property tax, except: Intangible personal property A broker negotiated the sale of a client’s acreage. Shortly after the seller accepted the buyer’s offer, the broker found out that the buyer’s agent had recently arranged for the same buyer to pay a much higher price per acre for similar acreage nearby. In this situation: The broker should disclose this information to the seller The primary purpose of RESPA is to: Give buyers the chance to shop around for settlement services When a dual agency exists, it is legal if: Both buyer and seller agree to it What principle states that homogeneity in a neighborhood increases the value of an individual house? According to the Improvement Act, which of following uses would not be allowed for funds raised through a special assessment? Purchase of land for development Which of the following is not a necessary element for a valid contract? A developer who owns 6 unencumbered parcels of land gave a lender 1 deed of trust on all 6 properties. This would be known as a/an: A completed construction project ready for occupancy Insulation’s effectiveness is rated using an “R-value,” with the “R” representing: Damerjian is appraising 2 parcels of property. 1 is leased to the gov for use as a post office; the other is leased to a private owner for use as a hardware store. Both parcels have recently started long-term leases. The capitalization rate of the post office property as compared to the capitalization rate of the hardware store property will be: A brother and sister owned a property as joint tenants. All of their other finances were separate. If the brother died with a large amount of debt, the creditors would: Obtain no satisfaction, since the property was transferred to the sister without being encumbered by the brother’s debts A broker is selling property on which she holds an option to purchase. She must disclose to any prospective buyer that she is acting as a/an: The Subdivision Map Act assigns primary responsibility for the physical aspects of subdivisions to: Oliver offered to purchase Stan’s property. The broker presented the offer to Stan, who accepted it. Before the broker could communicate Stan’s acceptance to Oliver, Oliver died suddenly. Which of the following would be true? Oliver’s death terminated the offer before the broker could communicate Stan’s acceptance, so no contract is formed A large, expensive home is constructed in an area consisting entirely of much smaller and less valuable homes. Even before the larger home is sold by the developer, is has probably suffered a loss in value due to: Economic (or external) obsolescence Teri sold her residence, which she owned free and clear. She paid $2,583.60 in closing costs, plus a commission of 6% of the selling price, paid to her real estate broker. She received a closing check from escrow for $183,480. Which figure is closest to the selling price? 2,583.60+183,480=186,063.60 A lender who accepts a deed in lieu of foreclosure from a trustor will: Take title subject to any junior liens The principal of a mortgage loan may be insured by: The FHA or a private mortgage insurer A rental property is located on a street that the city decides to widen. As a result of the street construction, the property’s rental income is lowered by 10%. What type of depreciation has occurred? Deed restrictions for a subdivision development are created by: Which type of title insurance policy protects against all risks? No policy protects against all risks Which of the following does California law require a real estate agent to do in a residential transaction? Visually inspect the property and inform all parties of any latent defects found Broker Betty refers all of her clients to a particular title insurance company, who in turn pays her $20 per referral. Under RESPA, this is permitted: A prospect calls a broker and asks about a farm property that he wishes to buy. The broker says he does not have a listing on that property, but that he will check into it. He calls the owner of the farm and says that he has an interested buyer. However, the owner of the farm says the property is not for sale. One week later, the broker learns that the owner of the farm sold the property to the prospect. The broker: Is not entitled to a commission A valid contract requires consideration. Which of the following could be consideration? All of the above $1 or more Which of the following types of lenders is most likely to have the greatest percentage of its assets invested in real estate loans? Savings and loan associations By law, pest control operators are required to: Provide a copy of a pest control report to the owner of the property within 10 days of the inspection Broker Westland dies and his daughter Susan, who is also a broker, inherits his business. With respect to his 50 current listings, which of the following is true? She is not the listing agent unless she negotiates a new listing agreement with each of those owners What is the standard minimum time limit for employment in an exclusive listing agreement? Whatever is agreed upon by broker and property owner The present worth of a property’s future benefits is most important to what approach to value? A clause in a second deed of trust that permits the first deed of trust to be refinanced without sacrificing its lien position is a/an: A broker must have a written contract with which or the following? The principle of substitution applies to what property characteristics? All of the above Use A property was sold on May 1st. The real property taxes for the current fiscal year had already been paid, and amounted to $2,760 for the year. The buyer is responsible for the day of closing. How much did the buyer have to pay in escrow for his share of the taxes? 2,760 / 12 months = 230 An unlicensed person sold several properties for a commission and engaged in false advertising with selling the properties. Who would prosecute this person? A written agreement setting out the relationship between a broker and her salesperson is required by: The real estate commissioner’s regulations If the real estate commissioner needed to terminate approval for sale of lots in a new subdivision, he or she would: Issue an order for the subdivider to desist and refrain from selling lots
Which of the following has final say on the rate or amount of commission paid to the agent on the sale of real property in the estate of a deceased person? Which of the following is an exercise of the police power? Zoning laws that limit and restrict the use that can be made of land One of the requirements for a seller’s agent is to provide a transfer disclosure statement. This must be given to: Under what type of listing is it possible that an agent would receive no commission even if the seller accepted an offer presented by that agent? Hoping to sell her property quickly, an owner pays her agent a fee for special marketing and advertising. This “advice fee”: Must be deposited into a trust account What would be characteristic of a market in transition from buyer’s market to seller’s market? Prices would rise as supply decreases and demand increases A broker sells a used mobile home that is subject to registration requirements. The department of housing and community development must be notified within: What document would most likely be related to the consumer price index (CPI)? 2 parcels of land are exchanged. The 1st parcel is the NW 1/4 of the SE 1/4 of Section 21 and is valued at $800 per acre. The 2nd parcel is the S 1/2 of the NE 1/4 of Section 22 and is valued at $500 per acre. What is the difference in value between the exchanged properties? 640 acres/4 = 160 acres An apartment complex owner suffers a $5k operational loss. For federal income tax purposes, she may: Deduct the full $5K from ordinary income Marcie contacted broker Rita to list her house for sale at a price of $250k. She told Rita that she needed a quick sale. At an open house, Rita told a prospective buyer that Marcie needed to sell fast and that she might accept $225k. Marcie accepted the offer of &225k. Which of the following is correct? Rita violated her fiduciary duty by disclosing confidential information A deed of trust with an unpaid balance of $50k was sold to an investor for $40k. This would be known as: In real property law, tenancy most nearly means: A method or mode of owning real property A broker handles the sale of a property in exchange for payment from both parties. He did not disclose his dual agency to either party. As a result: All of the above He is subject to disciplinary action A factory that will employ mostly women is moving into a town. The developer of a new subdivision in that town instructs the salespeople selling homes in the development to (1) create advertising that expresses a preference for single working mothers, and (2) sell in equal numbers to Asian, Hispanic, black, and white buyers. Once a quota for a particular group is met, increased prices will be charged in order to dissuade further members of that group from purchasing. Which of these instructions is in violation of the federal fair housing act? A voidable contract remains binding on the victimized party until it is: A man owns a house and had 1st deed of trust executed against home. He has a substantial amount of equity in the home. He needs a loan of $9,600 for college tuition for his son. A real estate broker arranges the loan, which is secured by the home. What document does the broker need for this transaction? Mortgage loan disclosure statement A contract where one party makes regular installment payments and the other party makes payment conditioned on a specific event happening is known as: Title will be delivered on a different day than the day the buyer plans to take possession on. The parties should use a/an: Interim occupancy agreement A seller contacts a broker to list property, but then asks that the broker not disclose that the property is in a dangerous slide zone. What should the broker do? The broker should refuse to take the listing A deed contains a restrictive covenant barring the sale of the land to persons of non-caucasian descent. This covenant: Is unenforceable but does not invalidate the conveyance In originating a new loan, an amortization table can be used to determine the: Under the real estate law in California, a salesperson is usually an: Independent contractor, because he is paid on a commission basis only The calculation of effective gross income reflects: Vacancies and collection losses A roof that rises upwards from all 4 sides to meet up at the ridge is called a: A zoning action changed the zoning of an area from commercial to residential. This change in zoning classification would be known as: A buyer signed a purchase agreement that contained the words, “buyer to accept property in ‘as is’ condition.” There were defects in the electrical system that the seller knew of buy that would not be apparent to an ordinary person; the broker did not disclose these defects. If the buyer surd the broker for fraud: The buyer would prevail, since the duty to disclose latent defects is not affected by an “as is” clause After a county-run airport changed its flight patterns, an owner of nearby property was bothered by constant aircraft noise. The owner brought suit against the airport demanding just compensation for the damage to the value of his property. This is an example of: If a property owner feels that her property has been over-assessed and she has not been able to obtain any relief from the county assessor, she may appeal the assessment to the: An asian buyer meets with a broker and asks to be shown homes. If she doesn’t ask to see homes in areas with no Asian residents, the broker: Should choose homes for showing as the broker would for any other customer An existing contract was replaced by an entirely new contract. This would be defined as a: The federal reserve could create a tight money market by: Raising discount rate and selling bonds A buyer presents a written offer along with a deposit to the selling broker, who accepts them on behalf of the seller. The broker’s authority to accept the deposit comes from: What type of appraisal report usually contains the paragraphs entitled: introduction, factual description of neighborhood and site, appraiser’s conclusions, and final value estimate? Broker Anna shoes jeff a rental property. After reviewing the financial analysis she prepared for the property, he decides it’s a good investment and proceeds to purchase. Later, Jeff learns that Anna’s analysis didn’t include management fees and maintenance expenses. What violation of the license law has Anna committed? A broker is trying to find out the size and location of concrete piers, footings, and other subfloor details. She could consult: In a dual agency relationship, the agent owes fiduciary duties to both the buyer and the seller. Therefore, a dual agency is permissible: If both buyer and seller consent Once a purchase agreement has been signed, what type of title does a buyer hold in the property? Which of the following topics will be addressed by a master plan prepared by a planning commission? All of the above Highways and streets Recorded title to a parcel of real property was vested in Joan Harris, a single woman. After she married John Hodges, she executed a new deed to the property, referring to herself as “Joan Hodges, a married woman.” The discrepancy in the name of the grantor is: A defect which may create a cloud on the title A broker learns that one of his salespersons has committed several violations of the license law. The broker fires the salesperson and takes steps to ensure that his other salespersons do not engage in the same behavior. Which of the following is true? Both the broker and salesperson are subject to disciplinary action by the real estate commissioner For older residential properties, estimates obtained through the gross income multiplier method reflect: The relationship between market value and rental income One difference btwn an FHA loan and a typical conventional loan is that the FHA loan: Probably has a higher loan-to-value ratio Joan leases a commercial property from Steve. What type of estate does Joan hold? Less-than-freehold estate A person who is authorized, in writing, to act legally for another person is a/an: The housing and construction industry in California is regulated through: The state contractors license law, local building codes, and the state housing law A salesperson presents a seller with a full-price cash offer from a qualified minority prospective buyer. The salesperson’s broker then presents the seller with a less-than-full-price offer from a qualified non-minority prospective buyer. The seller, however, accepts neither offer; instead, he accepts an offer through the salesperson from his neighbor. The neighbor is buying the home solely to prevent a minority family from moving into the neighborhood. In this situation, which party is NOT Subject to penalties under fair housing laws? Non-minority prospective buyer Even if a change is very minor, a counteroffer should be made on a separate form (such as the C.A.R CO form) because: A counteroffer is a new offer and a separate form is necessary A seller lists a vacant parcel of land for $550k with specification that a buyer must agree to an installment sale and cannot make more than 23% cash down payment. A potential buyer makes a full cash offer, which is rejected. Under these circumstances, does the seller owe the broker a commission? No, the offer did not conform to the listing Seller Weiss signs a 60-day exclusive agency listing with Broker Hanada. After 30 days, Hanada has not sold the home and Weiss notifies Hanada in writing that he is cancelling the listing. 1 week later, Weiss signs open listing agreements with several other brokers. 2 weeks later, 1 of those brokers sells the house. Under these circumstances, Weiss likely: Owes commissions to both Hanada and the broker under the open listing With a purchase agreement, the date of formation of the contract is: When acceptance is communicated to the offeror What type of appraiser is qualified to appraise a commercial development valued at over $500k? Certified general appraiser The power of eminent domain may be used by: All of the above cities An agency relationship is best created through: When would an agent not have to comply with the requirement of presenting all offers to purchase to the principal? When the agent is acting under written instructions of the principal The listing agent provides the seller with a copy of the natural hazards disclosure statement. The seller and listing agent fill out natural hazards disclosure statement and deliver it to the buyer. What disclosure responsibilities does this relieve the agent and seller of? The duty to disclose risks from disasters such as earthquakes and floods, although these must still be disclosed on the transfer disclosure statement What type of appraisal report is typically the most comprehensive? The Alquist-Priolo special studies zone act applies to: Structures in areas of California subject to earthquake hazards A seller sold her house to a buyer who agreed to assume the existing loan. They proposed this to her lender, who approved the assumption. Which of the following statements is true with respect to the outstanding loan payments? The buyer is primarily liable and the seller is secondarily liable as a surety The nominal interest rate of a loan is: The interest rate stated on the promissory note Which of the following borrowers would use mutual mortgage insurance? The parallel members that support the weight of the floor and ceiling are called: If there is a 30 or 60 day safety clause in a listing agreement, which of the following is true? The agent must provide a list of the people he worked with, and if the seller sells to any or those people during the safety period, she owes the agent a commission The Garcias’ house has a FMV of $186k and rents for $1200/month. The house next door belongs to Yolanda and rents for $1300/month. Assuming the same rate of return, what is the FMV of Yolanda’s property? 186,000 / 1200 = 155 Broker Barb places a newspaper ad stating that any seller or buyer who lists or buys a property through her will receive a $100 credit towards the broker’s commission or purchase price. This is: What is the ultimate test of a property’s functional utility? In real estate finance, the term “impounds” refers to: The dimensions of 4 pieces of lumber are listed below. Which reflects the dimensions of 1 board foot? 6” long, 12” wide, 2” thick The repair of broken appliances is categorized as: When a real estate licensee employs a non-licensee, the licensee must be careful to make sure that: Activities requiring a real estate license are performed only by the licensee A real estate agent arranged with a title company to receive a referral fee for every title policy she sent to them. The referral fees were: Illegal under the real estate law Which law prohibits an agent from committing fraudulent acts against his principal? Business and professions code A real estate licensee advertises on a website. The Bureau of real estate’s rules and regulations require barriers, policies, and procedures to ensure that contact and communications with persons responding to those ads are: With properly licensed agents Mark purchased a house for $400k. He paid 21.25% as a down payment and financed the balance with a 30-year amortized loan at a 10.25% interest rate. His monthly payments will also include property taxes ($4k/year) and hazard insurance ($4890 3 year policy). If the principal amount on his first monthly payment is $595, what will be the total amount of his first monthly payment? $400,000 X 0.2125 = 80,000 Unless excepted from the agreement, which of the following are implicitly included in a transfer of real property? All of the above Building constructed on land In a tenant’s valid assignment of a lease, the assignee becomes the new: Amuezca is buying a house. The real estate broker recommends a lender. The lender’s loan application asks the applicant’s race and marital status. Amuezca may: Refuse to disclose his race and marital status Which of the following documents would be used when a veteran purchases a home through the California veterans farm and Home purchase plan? The principal purpose of a deed is to: Provide evidence of a change in title or transfer of an interest in real property A city passes a bond issue to improve streets in a particular neighborhood. The properties in that area will be burdened: In proportion to the benefits that the land will receive |
Oliver is a licensee who helps his buyers estimate their closing costs. oliver is most likely
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