Term
| A lease for a three-year term that called for rent to be paid quarterly expired. If at the end of the term, the landlord were to accept another payment of rent, the lease would be |
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Definition
|
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Term
| Marx gets to one of his barns by driving across McDonald's land. He has been making the drive daily for the past six years. McDonald had often asked Marx to stop this practice. Marx now says he has a legal right to continue this use of McDonald's land. Marx's right, if valid, is an easement by |
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Definition
|
|
Term
| The general term value means |
|
Definition
| the worth, usefulness, or utility of an object to someone for some purpose. |
|
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Term
| A prospective purchaser obtained a four-month option on a parcel of real property by paying $200 to the owner. All of the following are true EXCEPT |
|
Definition
| the optionee has created a legal interest in the property. |
|
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Term
| Race restrictions limiting the sale or lease of property to persons of the Caucasian race were imposed on a subdivision in 1920, due to expire in 2009. The restrictions are presently |
|
Definition
| unenforceable, even if the majority of homeowners want them. |
|
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Term
| The Uniform Settlement Statement required by the Real Estate Settlement Procedures Act by law shall be delivered or mailed to the borrower no later than |
|
Definition
| on, or before, the date of settlement |
|
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Term
| How long does a victim have to file a complaint about discrimination with the Department of Housing and Urban Development? |
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Definition
|
|
Term
| The best synonym for "value" is |
|
Definition
|
|
Term
| In real estate "devise" refers to |
|
Definition
|
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Term
| Under federal income tax law, the basis of real property is the properties |
|
Definition
|
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Term
| If you hold an undivided interest in the common areas, and a separate interest in a specific unit of an industrial, commercial or residential building, you would own a |
|
Definition
|
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Term
| A listing agreement is essentially a/an |
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Definition
|
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Term
| Which of the following is an "interest" but not an "estate" in real property? |
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Definition
|
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Term
| Which of the following is most correct concerning delinquent taxes and redemption rights? |
|
Definition
| The important effect of a "sale to the state" by the tax collector is to start the redemption period running, but the delinquent owner's possession remains undisturbed. |
|
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Term
| The "Mortgagor" is the one who |
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Definition
|
|
Term
| The majority of money used for loans on real estate comes from |
|
Definition
|
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Term
| Which of the following is required for a valid escrow in the conveyance of title to real property? |
|
Definition
| A binding contract between buyer and seller and the conditional delivery of transfer instruments to a third party. |
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Term
|
Definition
|
|
Term
| Definitions of market value are least concerned with |
|
Definition
|
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Term
| The key factor in a developer's decision in choosing the best site to build a new shopping center in a suburban area would be |
|
Definition
|
|
Term
| A voidable contract is one that |
|
Definition
| is valid now but can be voided by an interested party for due cause. |
|
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Term
| Which of the following would not be true in the planning and development of a subdivision? |
|
Definition
| Short blocks are economical. |
|
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Term
| Putting together two or more parcels to form a large parcel under one ownership is called |
|
Definition
|
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Term
|
Definition
|
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Term
| When the appraiser is concerned with equilibrium and decline of value in her appraisal, she most likely would apply this to |
|
Definition
|
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Term
| A property was sold where the property taxes had been paid for the current tax year. The escrow closed 10/1/2004. However, the contract had allowed the seller to remain on the property for an additional three months after the close of escrow. For the purpose of proration, how would the taxes be treated? |
|
Definition
| The seller would be credited with nine months’ taxes. |
|
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Term
| An impound account will benefit the |
|
Definition
| beneficiary and the trustor |
|
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Term
|
Definition
| burdens servient tenement. |
|
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Term
|
Definition
|
|
Term
| When a judgment is duly recorded, subsequent buyers and innocent purchasers who are ignorant of the recording have received |
|
Definition
|
|
Term
| Assume a brother and a sister own title in a parcel of real property as joint tenants. The sister marries and deeds half her interest to her husband. Under these circumstances, the brother now holds title to the property as |
|
Definition
|
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Term
| The court order to sell property to satisfy a judgment is a |
|
Definition
|
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Term
| As defined in the California Subdivision Law: a subdivision of fifty or more lots or parcels having certain stated characteristics is referred to as a Land Project. A subdivision of fifty or more parcels is specifically excluded from treatment as a Land Project when |
|
Definition
|
|
Term
| Title to personal property is transferred by |
|
Definition
|
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Term
| A rectangular parcel of land has an area of 540 square yards. It has a 45 foot frontage. How deep is the lot? |
|
Definition
|
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Term
| Mr. Anderson purchased an apartment for $100,000 paying $37,500 down and financing the balance. About 2 years later he sold the property for$115,000 and realized a 40% increase on his original investment. This would be an example of |
|
Definition
|
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Term
| Buyer Smith agrees to take over the existing fire insurance policy presently in effect on the property in the name of the seller, Mr. Wilson. When will Smith be protected by this policy |
|
Definition
| When the insurer approves the assignment |
|
|
Term
| A man purchased a personal residence in 2001 for $263,000. In 2002 he remodeled, spending $34,000 for capital improvements. In 2003 he sold his residence for $385,000 and purchased a replacement residence within a few months for $400,000. The amount of taxable gain at this time from the sale of the original residence is |
|
Definition
|
|
Term
| A real estate broker's license could be revoked or suspended by the Real Estate Commissioner for any of the following reasons EXCEPT |
|
Definition
| two reliable witnesses have given sworn testimony that the broker is mentally ill. |
|
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Term
| Except for those who were wounded, disabled or were prisoners of war in the military, Cal-Vet eligibilities expire _______ years after release from military service |
|
Definition
|
|
Term
| Which of the following items is often short-rated? |
|
Definition
| Premiums on an insurance policy |
|
|
Term
| A broker's trust fund records must show the trust fund balance on which basis? |
|
Definition
|
|
Term
| An attachment is classified as a/an |
|
Definition
|
|
Term
| The only unity required for the existence of a tenancy in common is |
|
Definition
|
|
Term
| The owner of an undivided interest in land with no right of survivorship owns the land as |
|
Definition
|
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Term
| A buyer purchased a home for $80,000 using a down payment of 21.25% of the purchase price, and financing the balance on a 30-year amortized loan with interest at 10.25% per annum. The lender requires monthly impounds for property taxes of $800 per year and casualty insurance costing $978 for a three-year policy. Assuming that the first monthly payment on the principal is $119, the total amount the buyer will have to pay the first month will be approximately |
|
Definition
|
|
Term
| When the Environmental Review Board or the Department of Real Estate issues a "negative declaration," it means that the subdivision |
|
Definition
| will have an insignificant effect upon the environment. |
|
|
Term
| Every non-resident applicant for a California Real Estate license must, along with the application, file with the Real Estate Commissioner a/an |
|
Definition
| consent that if any action is commenced against him in California and personal service of process upon him can't be made, a valid service may be made by delivery process to the Secretary of State. |
|
|
Term
| The most difficult step in the capitalization approach is to |
|
Definition
| select the appropriate capitalization rate |
|
|
Term
| A turnkey project is a/an |
|
Definition
| residential subdivision that is completed and ready for occupancy |
|
|
Term
| The supports between the floor and ceiling are |
|
Definition
|
|
Term
| Broker Bart was taken to court by a client who was suing the broker for fraud in a real estate transaction. The client was successful and was awarded damages in the civil suit. After the judgment has been handed down, the Real Estate Commissioner can immediately |
|
Definition
| file an accusation and statement of issues and proceed against the broker. |
|
|
Term
| The purpose of a Deed is to |
|
Definition
| transfer title from one party to another. |
|
|
Term
| Rezoning a section of town and changing its lawful use for new development from commercial to residential use is known as |
|
Definition
|
|
Term
| The Franchise Investment Law is written primarily for the protection of |
|
Definition
| prospective franchisees when considering the purchase of a franchise. |
|
|
Term
| In a valid Quitclaim Deed |
|
Definition
|
|
Term
| Using borrowed funds when available at rates that are below the equity yield of an investment property |
|
Definition
| enhances the equity yield |
|
|
Term
| A "real estate appraisal" is an estimate of value |
|
Definition
| based upon analysis of facts as of a specific date |
|
|
Term
| Freehold estates would include which of the following |
|
Definition
|
|
Term
| A real estate salesperson is defined by law as "a natural person who, in expectation of a compensation is employed by a real estate broker to perform any of the acts set forth in the law." In such capacity, however, he/she may not |
|
Definition
| collect his or her commission directly from the owner. |
|
|
Term
| A real estate salesperson's relationship with his broker is comparable to that of |
|
Definition
| an employee to his employer. |
|
|
Term
| A contract according to the "Statute of Frauds" must be in writing to be enforceable to |
|
Definition
| handle any agreement not to be performed within one year. |
|
|
Term
| Which of the following would alienate title to property? |
|
Definition
|
|
Term
| When the Real Estate Commissioner desires a formal opinion on legal matters, he consults the |
|
Definition
| Attorney General of California. |
|
|
Term
| The answers to which of the following questions would be of most benefit when trying to determine the amount of economic obsolescence suffered by a commercial property? |
|
Definition
| Are the tenants in the neighborhood prospering? |
|
|
Term
| A real estate investor who wishes to operate by using the principle of leverage would |
|
Definition
| use borrowed money to the maximum extent possible. |
|
|
Term
| The Prepaid Rental Listing Agent is required to do all of the following EXCEPT |
|
Definition
| submit a statement of accounts to the Commissioner quarterly. |
|
|
Term
| For how many years is an attachment lien good? |
|
Definition
|
|
Term
| In a listing agreement, the property is described as "Mr. Leland's personal residence at 10th and Jackson Streets, in Modesto, California." Which of the following statements is true? |
|
Definition
| This description would be adequate even if Mr. Leland owned other properties on that same street. |
|
|
Term
| The seller accepted an offer for the purchase of real property and an escrow was opened. Later the seller discovered misrepresentation on the part of the buyer. The contract |
|
Definition
| may be voided by the seller. |
|
|
Term
| An appraiser is preparing the income approach to an appraisal of income property. In his selection of a capitalization rate, he must recognize that the higher the rate used, the greater the implied |
|
Definition
|
|
Term
| Which item will appear as a debit on the buyer's closing statement? |
|
Definition
|
|
Term
| In appraising a home, one of the factors that would affect the appraised value is |
|
Definition
| the number of square feet in the structure. |
|
|
Term
| The economic life of an improvement is the period of time that is |
|
Definition
| between the completion of the building and its inability to produce income. |
|
|
Term
| A bank gave $500 to a licensed real estate salesperson for referring the salesperson's prospective buyer to the bank for a new loan. When the salesperson's broker became aware of the $500 referral fee, the broker immediately fired the salesperson, notified the Real Estate Commissioner and warned all of his other salespeople never to accept such a fee. In this situation |
|
Definition
| the salesperson is subject to disciplinary action by the Real Estate Commissioner, but the broker is not. |
|
|
Term
| Property may be technically defined as |
|
Definition
| rights or interests that a person has in the thing owned |
|
|
Term
| Mr. Jackson owns a home that is situated at the bottom of a hillside. In the wintertime during heavy rainstorms his home is subject to damage by flooding, so he dug a trench along the back of his property to divert the water. This action would be |
|
Definition
| illegal because you cannot divert surface waters to another property to the detriment of the other property. |
|
|
Term
| The value of real estate is created, maintained and destroyed by the interplay of three great forces. Not included in these three are |
|
Definition
|
|
Term
| A sub-divider is occasionally given a preliminary public report by the Commissioner. Which of the following would invalidate that preliminary public report? |
|
Definition
|
|
Term
| If five people own property as joint tenants |
|
Definition
| there is still only one title to the whole property. |
|
|
Term
|
Definition
| mortgage loan amount compared to percentage of appraised value. |
|
|
Term
| What would be the maximum commission that could be charged on a second deed of trust in the amount of $4,000, for a term of three years? |
|
Definition
|
|
Term
| Mr. and Mrs. Walter Layman hold title to their property as joint tenants. Mrs. Layman has had a will drawn in which she, upon her death, transfers her interest in the home to the children equally. Concerning her will upon her death, which of the following would be true? |
|
Definition
| The children have no interest whatsoever in the property. |
|
|
Term
| The five requisites for a valid land contract are |
|
Definition
| consideration, offer/acceptance, legality, capacity of the parties, writing |
|
|
Term
| A "Prepayment Penalty Clause" benefits |
|
Definition
|
|
Term
| Concerning value, which of the following is the most important factor? |
|
Definition
|
|
Term
| The California Real Estate Law is a part of the |
|
Definition
| Business and Professions Code. |
|
|
Term
| Which of the following is usually required to report the sale of a single- family residence to the Internal Revenue Service? |
|
Definition
|
|
Term
| There is a Federal Law that is designed to protect purchasers of subdivision properties that are located in the United States and are being offered for sale in interstate commerce. This law provides for a right of rescission within |
|
Definition
|
|
Term
| A real estate agent acting under an exclusive agency agreement signed by the seller owes a fiduciary obligation to |
|
Definition
|
|
Term
| How many township survey coordinate systems are there in California? |
|
Definition
|
|
Term
| In California, a typical sale of real property involves the transfer of which type of estate? |
|
Definition
|
|
Term
| Which of the following business opportunity documents would compare most nearly to a deed? |
|
Definition
|
|
Term
| A developer can use the Improvement Act of 1911 as amended to raise funds for all of the following purposes, EXCEPT to: |
|
Definition
| purchase land for subdivision. |
|
|
Term
| Broker Knorr advertised in the newspaper that anyone who bought a property listed with the broker would receive a free microwave oven valued at $500. Such action is |
|
Definition
| legal provided full disclosure is made to all interested parties. |
|
|
Term
| When John purchased Joan's property using an installment sales contract, he assumed an existing loan, which exceeded Joan's basis in the property. The amount of the assumed loan over Joan's basis will be |
|
Definition
| treated as part of the down payment whether cash was received or not. |
|
|
Term
| Tom Davis owns a single-family residence in which he, his wife, and five children reside. In filling out his income tax return he itemizes his various allowable deductions. The following expense would NOT be allowed as a deduction |
|
Definition
| cost of repainting exterior. |
|
|
Term
| Which of the following includes the characteristic "of indefinite duration"? |
|
Definition
|
|
Term
| Based on the energy efficiency rating given new air conditioners today, the higher the EER, the |
|
Definition
| higher the efficiency of the appliance. |
|
|
Term
| A one-year lease on real property signed by a 16-year-old minor is |
|
Definition
|
|
Term
| Which of the following is described as the process of expressing anticipated future benefits of ownership in dollars, and discounting them to a present worth at a rate which is attracting purchase capital to similar investments? |
|
Definition
|
|
Term
| An agent who pays part of the commission to the buyer |
|
Definition
|
|
Term
| A real estate broker hired a salesperson and entered into a written contract of employment, designating him/her as an Independent Contractor. Such status permits the salesman to |
|
Definition
| perform his services only through his employing broker. |
|
|
Term
| The annual residential tax obligation is determined by the |
|
Definition
| County Assessor's Office. |
|
|
Term
| A broker is required to keep his principal informed of all material facts. A broker who holds a listing from the seller must disclose which of the following facts when presenting an offer? |
|
Definition
| A cooperating broker will be presenting a higher offer the following day |
|
|
Term
| Broker Newman sold a property owned by Robins to Buyer Nichols. Later when the first rains of the season began, Buyer Nichols found that the roof leaked badly. Thereupon, the buyer sued both the seller and the broker for the cost of the necessary repairs. In the same action, the seller sued Broker Newman because Seller Robins had told the broker of the leaky roof. Broker Newman's testimony revealed that the broker was aware of the leaky rook but had not mentioned it to Buyer Nichols because "the subject never came up." Based on the foregoing information, the most likely result of the court action would be |
|
Definition
| the buyer would be successful in the suit against both the seller and the broker; the seller would be successful in the suit against the broker. |
|
|
Term
| Adams sold his house to Brooks, who did not record the deed, but took up residency there. Adams then sold the same property, to Carl, who reviewed the county recorder's records, but did not examine the property. Adams gave Carl a deed, which Carl recorded. Which of the following would be true concerning title to the property? |
|
Definition
|
|
Term
| For income tax purposes, on which of the following could depreciation be taken? |
|
Definition
|
|
Term
| For an inflation hedge, one would most likely put their money into |
|
Definition
|
|
Term
| A franchise being offered for sale in the State of California does not need to be registered with the Department of Corporations Commissioner if the franchisor |
|
Definition
| has a net worth on a consolidated basis of $5,000,000 or more. |
|
|
Term
| Certain factors to be considered in evaluating business property are given special names by appraisers. The name given to the factor that affords the advantage of display area and entrances on two streets is called |
|
Definition
|
|
Term
| Principal characteristics of Fee Simple Title include all of the following EXCEPT |
|
Definition
| It is free of encumbrances |
|
|
Term
| "O", the owner of Blackmore, sold it to "A", but reserved to himself a life estate, and remained in possession. Later, "O" sold his life estate to "B", and surrendered possession to him. "A" then demanded immediate possession as the fee owner. In this situation |
|
Definition
| "B" can retain possession as long as "O" lives. |
|
|
Term
| Jed gives Jake a written option allowing Jake to buy Jed's house for $100,000 within 18 months from the date of the option. Jake gives Jed $ 0.25 payment in exchange for the option. The option is |
|
Definition
| valid; the consideration is sufficient. |
|
|
Term
| Mortgage interest rates usually decrease when |
|
Definition
| the supply of mortgage money increases substantially. |
|
|
Term
| Under most circumstances it is unlawful for anyone to act as an escrow holder unless they have been licensed by the Commissioner of the Department of Corporations. Whom of the following would be in violation of the law? |
|
Definition
| The real estate broker who solicits escrows from his fellow brokers and agrees to make no charge for the work. |
|
|
Term
| If a seller of real property inquired of his broker concerning the ethnic background of a prospective buyer, the broker |
|
Definition
| Violates the California Fair Housing Act (the Rumford Act) if he gives the seller the requested information |
|
|
Term
| Which department, bureau or board of the state of California receives the Structural Pest Control Reports? |
|
Definition
| The Structural Pest Control Board |
|
|
Term
| Under the Truth-in-Lending Law, which of the following is not to be included in the finance charge? |
|
Definition
|
|
Term
| Concerning the following, which would be correct? |
|
Definition
| A trust deed is security for a note |
|
|
Term
| The highest structural point of a wood frame house is the |
|
Definition
|
|
Term
| A broker secures a listing, negotiates a sale, and the parties enter escrow. Before escrow closes, the broker's license is revoked and the seller refuses to pay the commission because the broker is unlicensed. To collect the commission, the following is correct? |
|
Definition
| Broker must prove that he was licensed at the time of sale. |
|
|
Term
| A contract for the sale of community real property signed by the husband only is |
|
Definition
|
|
Term
| Loans that are approved under the Federal Land Bank System are originated and serviced by the |
|
Definition
|
|
Term
| In a timeshare seminar that was advertised to 10,000 people, the timeshare people did not reveal the minimum attendance required for the prize giveaways. Is this a violation of the Real Estate Law? |
|
Definition
| Yes, anyone giving away prizes must disclose in advance the minimum attendance required for the giveaways. |
|
|
Term
| A house sells for $150,000. The buyer assumed an existing loan against the property for $130,000. The documentary transfer tax for this county is $.55 per $500 of consideration. The transfer tax is |
|
Definition
|
|
Term
| A deposit receipt does not contain the clause that states that in case of buyer default, the broker is entitled to part of the buyer's forfeited deposit. If the buyer defaults, according to this contract the broker is entitled to |
|
Definition
|
|
Term
| Under the "Bulk Sales Law", who would assume liability for stock-in-trade if no notice were given? |
|
Definition
|
|
Term
| After six lots have been sold in a subdivision, the Real Estate Commissioner was informed of misrepresentation in the sales program. The Commissioner could halt the sale of more lots by |
|
Definition
| issuing a Desist and Refrain order. |
|
|
Term
| Accrued Depreciation is most nearly |
|
Definition
| the total depreciation of an improvement to date. |
|
|
Term
| A home was listed for sale for $235,000. The broker was instructed by the owner to accept a deposit on the purchase price of "no less than $1000" and drew up an offer on a standard deposit receipt form. The broker could only get the buyer to submit a $500 deposit. Should the contract later be defaulted by an act of the buyer, the broker would be entitled to |
|
Definition
| up to one-half of the forfeited deposit. |
|
|
Term
| In a tight money market, under which type of financing would the buyer be most likely required to pay the most loan points? |
|
Definition
|
|
Term
| Baker sold 640 acres of land to Garcia by agreement and deed that provided, "Seller retains rights to all minerals and materials of the earth under this land." Shortly thereafter, while Garcia was preparing his land for cultivation, Baker appeared with oil drilling equipment. Garcia refused to allow him on the land. Baker sued Garcia. Based on the foregoing information, the judge's decision should b |
|
Definition
| Baker has the right to enter on Garcia's land to drill for oil |
|
|
Term
| If the city acquires land for public streets by dedication, the grantor may seek to have the land returned to him if |
|
Definition
| the conveyed easement has been abandoned by the city. |
|
|
Term
| Mr. Parker is holding $300 in an impound account on a Trust Deed on which he has been receiving payments from Mr. Carroll. Which of the following is true concerning the impound account? |
|
Definition
| It benefits the trustor and the beneficiary. |
|
|
Term
| A real estate broker negotiated a five-year Second Trust Deed loan for $21,000 and charged a $1,500 commission. The maximum commission he could charge legally is |
|
Definition
|
|
Term
| Demand is one of the four elements of value. In order for demand to be effective, it must be implemented by the |
|
Definition
|
|
Term
| Broker Green obtained a listing from Ms. Brown to sell her home. Ms. Brown told Green the sewers were in and connected and signed a listing to that effect. Green was of the opinion that there were no sewers installed in that street, so he checked with the city and found he was correct. Green showed the house to Jones, who did not ask about sewers, and Green made the sale without any comment. Later, Jones found that the sewers were not in. Which of the following is true? |
|
Definition
| Green had a duty to tell Jones, even though Jones did not ask. |
|
|
Term
| The interest held by the sub-lessor when real property is subleased is called a/an |
|
Definition
|
|
Term
| Under Federal Income Tax law, the taxpayer could adjust (increase) the cost basis on his personal residence for |
|
Definition
|
|
Term
| What is the length of the escrow period if there is no provision in the escrow instructions? |
|
Definition
|
|
Term
| Which of the following is a requirement in order for a deed to be valid and convey title? |
|
Definition
|
|
Term
| Which of the following is true with respect to an Impound Account? |
|
Definition
| It benefits both the trustor and the beneficiary. |
|
|
Term
| The head of a family has homesteaded a residence. The market value is $400,000. The balance due on the first trust deed is $335,000. A creditor has petitioned for an execution on the property to satisfy a $2,000 judgment. The creditor |
|
Definition
| cannot obtain redress because there is insufficient equity to satisfy the judgment. |
|
|
Term
| A sub-divider purchases 20 acres of land and erects a number of tract homes. She does not hold a real estate license but, to keep things in the family, she wants to pay her son direct for selling the houses. Which of the following statements is true? |
|
Definition
| The son could sell homes in the mother's subdivision if he has a Real Estate Broker's license. |
|
|
Term
| Your neighbor has just built a wall that encroaches a foot onto your property. How long do you have to take action? |
|
Definition
|
|
Term
| Which of the following could NOT be described as functional obsolescence? |
|
Definition
| The proximity of obnoxious nuisances. |
|
|
Term
| The net effect of a tight money policy implemented by the Federal Reserve Board would be the increasing of |
|
Definition
| use of junior loans in real estate financing. |
|
|
Term
| Which of the following statements is true about listings? |
|
Definition
| Both B and C are correct. |
|
|
Term
|
Definition
|
|
Term
| When owners of real property hold title as Tenants in Common |
|
Definition
| Each of the co-owners' interest maybe conveyed separately. |
|
|
Term
| Who pays the points on a Cal-Vet loan? |
|
Definition
|
|
Term
| A real estate broker advertises that he will give a television valued at $500 to any buyer who purchases a property listed for sale with his office. This type of advertisement is considered to be |
|
Definition
| legal if proper disclosure is made to all interested parties. |
|
|
Term
| A Mechanic's Lien differs from a Judgment in which respect? |
|
Definition
| A Mechanic's Lien is a statutory lien based upon a constitutional provision. |
|
|
Term
| When an Abstract of Judgment is recorded it becomes a/an |
|
Definition
| general lien on all non-exempt real property in the county where recorded. |
|
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Term
| For property tax assessment purposes, the county assessor would consider a new well and pump installed on a parcel of land to be |
|
Definition
|
|
Term
| Townships running north and south of a baseline are called |
|
Definition
|
|
Term
| The secondary mortgage market relates to |
|
Definition
| transfers of mortgages between lenders or investors. |
|
|
Term
| Your land is taken for a freeway. This is done under laws |
|
Definition
| relating to eminent domain. |
|
|
Term
| An individual who holds a leasehold estate has a |
|
Definition
|
|
Term
| Life insurance companies not willing to deal directly with mortgagors/trustors usually pay a loan preparation and servicing fee, and make real estate mortgage loans to purchasers indirectly through |
|
Definition
|
|
Term
| Provisions of the State Housing Act are enforced by |
|
Definition
| California Department of Fair Housing and Employment. |
|
|
Term
| Easements are terminated by all of the following, except |
|
Definition
| revocation by the owner of the servient tenement. |
|
|
Term
| A lease is to a lessee as a/an |
|
Definition
| agreement of sale is to an equitable owner. |
|
|
Term
| An attachment lien placed on real property can be released by all of the following EXCEPT |
|
Definition
|
|
Term
| If a real estate broker as an agent does not follow the lawful instructions of his principal he |
|
Definition
| is liable to his principal for damages. |
|
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Term
| The following statement is FALSE in reference to alcoholic beverage licenses |
|
Definition
| wholesalers can also hold a retailer's on-sale license. |
|
|
Term
| A sub-divider must satisfy the requirements of the Department of Real Estate if the property offered for sale in California is located |
|
Definition
|
|
Term
| Julie enters into a contract with Alan under duress and is in fear for her safety if she does not sign. The contract is |
|
Definition
|
|
Term
| The legal meaning of the word waiver as it is applied to real estate transactions most nearly means |
|
Definition
| a unilateral act and its legal consequences. |
|
|
Term
| Mrs. Gross "homesteaded" her family's dwelling. No prior "homestead" had been recorded by either spouse. The property had a first trust deed with a balance of $300,000 and was worth $360,000. A general creditor later obtained a judgment for $2,000. The judgment was |
|
Definition
| not collectible since the wife's homestead was valid and the homestead exemption left no equity upon which to levy. |
|
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Term
|
Definition
| the right to use another person’s land. |
|
|
Term
| If the owner of real property carries proper fire insurance coverage, that insurance policy will protect the owner in the event of loss. In such a case, the insured |
|
Definition
| should neither gain nor lose. |
|
|
Term
| Smith purchased an older apartment house as her first real estate investment. This property had several owners and they all claimed depreciation deductions on their federal income tax returns because of the subject property. When Smith files her return, she can depreciate the property |
|
Definition
| Without regard to the total depreciation deducted in the past. |
|
|
Term
| A definition of value to an appraiser is |
|
Definition
|
|
Term
| Of the following, which would be the least likely place to acquire a loan on a single-family residence? |
|
Definition
|
|
Term
| Regarding Mortgage Insurance Premiums, they benefit the |
|
Definition
| lender in case of default of the borrower. |
|
|
Term
| Under the Law of Agency, a fiduciary relationship is created between the broker and the seller upon execution of the listing agreement. As far as the broker's responsibility to third parties, the broker |
|
Definition
|
|
Term
| Which of the following can the Federal Reserve Board do if they feel that there is an inflationary trend developing in the United States? |
|
Definition
|
|
Term
| The Statute of Frauds does not |
|
Definition
| a partnership formed to invest in real property. |
|
|
Term
| When real property is held by husband and wife as community property, an agreement to sell that property that has been signed by only one spouse would be considered to be |
|
Definition
|
|
Term
| Effective Gross Income is the |
|
Definition
| gross income minus an allowance for vacancies. |
|
|
Term
| In the case of a sale, which of the following would be exempt from the "Discrimination and Unlawful Acts" chapter in the Health and Safety Code? |
|
Definition
|
|
Term
| When commercial real estate is purchased today, the minimum period of time over which the owner can depreciate the improvements is |
|
Definition
|
|
Term
| Equity in real property is the |
|
Definition
| difference between mortgage indebtedness and market value. |
|
|
Term
| A real estate broker advertises that he will give a microwave oven valued at $500 to anyone who purchases a property listed with his office. This type of advertisement is |
|
Definition
| legal if proper disclosures are made to all parties of interest. |
|
|
Term
| When rent is computed on the gross sales of a business occupying real property, the lease is correctly termed a |
|
Definition
|
|
Term
| The real estate commissioner would prohibit which of the following mortgage broker advertisements? |
|
Definition
|
|
Term
| A lender plans to make a construction loan for the construction of 10 homes in a new subdivision. He wants to make certain that his loan has the first priority of any liens. He would LEAST likely |
|
Definition
| post and record a notice of non- responsibility. |
|
|
Term
| In valuing a single-family home, the appraiser discovered an assessment lien for $4,000 for sewer and street improvement bonds. The appraiser located several recent sales of similar residences for $600,000 each, none of which had the assessment lien. The indicated selling price for the subject property would be |
|
Definition
|
|
Term
| If a real estate licensee was trying to persuade people to list or to sell their property by telling them that members of another ethnic group were moving into their neighborhood, and it would be to their advantage to list or to sell, it would be an example of all of the following, EXCEPT |
|
Definition
|
|
Term
| The replacement cost approach is easier to apply to a new building due to |
|
Definition
|
|
Term
| Which of the following is not "real property"? |
|
Definition
|
|
Term
| A will, which is entirely written, dated, and signed in the testator's own handwriting, is a |
|
Definition
|
|
Term
| The term "Et Ux" refers to |
|
Definition
|
|
Term
| Single-family home values are least protected in neighborhoods where there is a/an |
|
Definition
| increasing mixture of average-quality homes with high-quality homes. |
|
|
Term
| An investment that was purchased as a hedge against inflation would best be exemplified by which of the following? |
|
Definition
| An income-producing investment that will maintain its value. |
|
|
Term
| An Abstract of Title is most similar to a |
|
Definition
|
|
Term
| A partnership may take title to real property in |
|
Definition
|
|
Term
| All of the following items are usually prorated at the close of escrow, except |
|
Definition
| delinquent interest on unsecured loans. |
|
|
Term
| For how long would a Subdivision Public Report be good? |
|
Definition
|
|
Term
| Which of the following is a legal contract that gives the holder rights to enjoyment and use of another's property short of an estate? |
|
Definition
|
|
Term
| A corporation built a large tract of homes in a new subdivision and hired a handy man to take care of any maintenance or repairs that might arise. He was given additional compensation for showing the homes on weekends to prospective buyers. Under these circumstances: |
|
Definition
| The maintenance man could be fined for showing the homes without a real estate license. |
|
|
Term
| Who signs a "Deed of Re-conveyance"? |
|
Definition
|
|
Term
| The zoning symbol for multiple family dwellings is |
|
Definition
|
|
Term
| An Abstract of Judgment for money awarded by a court becomes which of the following, when duly recorded in the county where the property of the judgment debtor is located? |
|
Definition
|
|
Term
| A survey that refers to fractional sections, townships and ranges is a legal description by |
|
Definition
|
|
Term
| Which must provide Federal Insurance to protect depositor’s accounts? |
|
Definition
| Federally chartered savings and loans |
|
|
Term
| Which would all be specific liens? |
|
Definition
| Mechanic's lien, property tax lien, mortgages and attachments. |
|
|
Term
| Which of the following represents a gross misrepresentation by an agent? |
|
Definition
|
|
Term
| In a business opportunity transaction, the document that is used in the same manner as a deed in a real estate transaction is the |
|
Definition
|
|
Term
| A real estate broker could make any of the following statements about land contracts and be correct, EXCEPT |
|
Definition
| the contract must include a statement prohibiting recording. |
|
|
Term
| All of the following statements are correct concerning the transfer of title to personal property, EXCEPT |
|
Definition
| he condition of the title to personal property can usually be determined by a study of public records with about the same accuracy as title to real property. |
|
|
Term
| A broker may not lawfully collect a commission from both buyer and seller without |
|
Definition
| the knowledge and consent of both parties prior to the sale. |
|
|
Term
| The liquidity of a business refers to the ratio between |
|
Definition
| current assets and current liabilities. |
|
|
Term
| Which of the following lenders is the newest source of funds for real estate financing? |
|
Definition
|
|
Term
| Which of the following would NOT be considered a prime tenant in a shopping center? |
|
Definition
|
|
Term
| A person unable to take an oath would take or do which of the following? |
|
Definition
|
|
Term
| Three parties owned equal interests in a large parcel of potentially agricultural land as tenants-in-common. One of the co- owners decided to lease the entire parcel to a third party for agricultural purposes without the consent of the other co-tenants. Under these circumstances, if the two parties entered into the contract, the lease would be |
|
Definition
| invalid, as one co-tenant cannot obligate the other co-tenants for a lease of the whole property without their consent. |
|
|
Term
| Which of the following has the least influence on the lending policies of financial institutions that make real estate mortgage loans? |
|
Definition
| Borrower's need for financial assistance. |
|
|
Term
| Which of the following would not be considered essential to making an appraisal of an old family residence? |
|
Definition
| Original cost of the residence. |
|
|
Term
| Under the mortgage loan broker law, the maximum commission that may be charged for negotiating a second or other junior trust deed or mortgage of $4,500 to run for a period of 2 1/2 years is |
|
Definition
|
|
Term
| There are three approaches to the valuation of real property and if possible all three should be used in arriving at a final estimate of value. Depending on the type of property being appraised, however, one approach will have more weight and should afford authority. The comparison approach is given greater weight in the appraisal of |
|
Definition
|
|
Term
| A real estate broker agreed to accept the commission in the form of acres of land that had been appraised by two independent appraisers at $200 per acre. After the close of escrow, the real estate broker was contacted by a potential buyer, with whom the broker had never had any previous contact, who was interested in purchasing the land for$500 per acre. Should the sale be consummated by this buyer? This action would |
|
Definition
| indicate no legal or ethical violation. |
|
|
Term
| The relationship between Effective and Nominal Interest is that |
|
Definition
| effective interest is what the buyer pays; Nominal interest is what is specified in the note. |
|
|
Term
| The term "megalopolis" best describes which of the following? |
|
Definition
|
|
Term
| Townsend purchased a property at 20% less than the listed price and later sold it for the original listed price. Townsend's percentage of profit was |
|
Definition
|
|
Term
| In order to bring court action to collect a commission earned for negotiating a month-to-month rental, the broker |
|
Definition
| need prove only an oral agreement to pay a commission. |
|
|
Term
| A brother and sister purchased property as joint tenants. Later, the sister married, and deeded her interest to herself and her husband. |
|
Definition
| The joint tenancy is terminated. |
|
|
Term
| Which of the following methods would be least effective in appraising a lot on which the buyer wants to build a house? |
|
Definition
|
|
Term
| Usually, an escrow officer is authorized to |
|
Definition
| call for the funding of the buyer's loan. |
|
|
Term
| A form that is usually prepared to allow a real estate licensee to act as an agent for all principal parties to the transaction involved is a/an |
|
Definition
|
|
Term
| A sub-divider and developer purchased considerable acreage and now plan to construct a tract of 40 homes. In arranging the financing for the new construction, the lender has agreed to advance part of the funds immediately, and will release a set amount of additional money as each home is completed. The funds that will be forthcoming as construction progresses are known as |
|
Definition
|
|
Term
| A person who acquires real property through intestate succession does so as a result of |
|
Definition
| direction by a probate court. |
|
|
Term
| You sell a note with a face value of $12,000 for $10,000. You are |
|
Definition
|
|
Term
| In appraisal practice, all of the following are accepted methods of computing the estimate of a building cost, EXCEPT the |
|
Definition
|
|
Term
| An owner of a five-unit apartment building that is located within the city limits intends to convert the building into five condominium units and offer them for sale to the public. Under these circumstances, the developer |
|
Definition
| must comply with the Subdivided Lands Act and the Subdivision Map Act. |
|
|
Term
| Which of the following is a legal term used to describe the entire parcel of real property and all structures on such property? |
|
Definition
|
|
Term
| A lender of money on real property should be relatively certain that her mortgage is an enforceable lien. She can best accomplish this by |
|
Definition
| a title insurance policy. |
|
|
Term
| Of the following factors, which would not contribute to obsolescence? |
|
Definition
|
|
Term
| Compared to the return from investments from other areas, the return from real property should be |
|
Definition
| higher than the return from bonds and first trust deeds. |
|
|
Term
| Mutual mortgage insurance would be included in the issuance of a/an |
|
Definition
|
|
Term
| Which of the following best describes a "complete" escrow? |
|
Definition
| All papers are properly drawn up and ready for final steps to be taken to close the escrow. |
|
|
Term
| "Tax shelter" as referred to by a real estate broker is |
|
Definition
|
|
Term
| In reference to the California Land Title Association Policy of title insurance: the advantage of having an extended coverage as opposed to standard coverage is |
|
Definition
|
|
Term
| Which of the following ways of compensating real property managers is not proper business practice? |
|
Definition
| Receipt of discounts on purchases or supplies. |
|
|
Term
| From a lender's point of view, the most significant feature of a purchase- money mortgage is that it takes priority over |
|
Definition
| any liens against the purchaser that exist at time of purchase. |
|
|
Term
| Mary Johnson looks at a property while her husband is out of town on a business trip. Mary feels this is the perfect property, and is afraid someone else will buy the property before her husband returns. She puts a deposit down on the home and signs the deposit receipt. How should the contract be signed? |
|
Definition
|
|
Term
| An undivided interest with the right of survivorship is called |
|
Definition
|
|
Term
| Which of the following is NOT essential to a valid deed? |
|
Definition
| Acknowledgment of the grantor's signature |
|
|
Term
| A property owner seeking protection against mechanics liens would file a notice |
|
Definition
|
|
Term
| A deed that is not dated or recorded is |
|
Definition
|
|
Term
| An easement on real property can be terminated by |
|
Definition
| a release signed by the holder of the dominant tenement. |
|
|
Term
| The legitimacy of zoning laws rests upon the |
|
Definition
| established right of police power of government. |
|
|
Term
| In connection with FHA insured loans, lenders charge points in order to |
|
Definition
|
|
Term
| The following would be an estate in real property |
|
Definition
|
|
Term
| Which of the following is represented by the symbol of an equal sign (=) inside a house? |
|
Definition
| Equal Housing Opportunity |
|
|
Term
| A real estate broker has a valid listing on a property. He places a classified advertisement containing only the following information - "4 bedroom, 2 bathroom home with swimming pool. Asking price $270,000. Telephone 555- 2466." This kind of advertisement is an example of a |
|
Definition
|
|
Term
| A real estate broker generally acts |
|
Definition
|
|
Term
| Of the following agreements select the one that is NOT required to be in writing under the provisions of the Statute of Frauds? |
|
Definition
| A partnership agreement to deal in real property. |
|
|
Term
| In working with subdivided property for which the Commissioner's Preliminary Public Report has been issued, a licensee may |
|
Definition
| take a listing on the property. |
|
|
Term
| When sub-dividers develop subdivisions, they place certain restrictions on each of the lots. Of these, experience has shown one of the following is least likely to be enforced |
|
Definition
| minimum limits on the amount of dollars allowed for improvements on each lot. |
|
|
Term
| In arriving at an estimate of value, an appraiser would be most interested in which date? |
|
Definition
| The date that the purchase contract was signed. |
|
|
Term
| Which of the following would be the best and most complete definition of the term "encumbrance"? |
|
Definition
| An interest possessed by a stranger to the title that affects the estate but does not affect the owners from enjoying and transferring the fee. |
|
|
Term
| A licensed real estate broker who owned a large real estate firm operating under the name of ABC Realty Company listed a property for a total price of $450,000. 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 all cash offers 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 the |
|
Definition
| broker's action was improper because he did not reveal the true identity of the purchaser. |
|
|
Term
| Assume that after an offer to purchase has been accepted by a seller and it later develops that the first trust deed that the buyer is taking over is for only $120,000 instead of $140,000, as indicated in the listing contract. In this case |
|
Definition
| the buyer can rescind the contract and recover his deposit. |
|
|
Term
| A Lis Pendens action is effective |
|
Definition
| until the judgment rendered has become final. |
|
|
Term
|
Definition
|
|
Term
| Which of these is not considered an estate in real property? |
|
Definition
|
|
Term
| Which of the following court cases ruled upon in the United States Supreme Court in 1968 has had far-reaching effects upon recent legislative acts and court rulings throughout the country, prohibiting "racial" discrimination in the sale and rental of housing? |
|
Definition
|
|
Term
| When considering interior decoration, which of the following statements would be incorrect? |
|
Definition
| Dark colors make a room look larger. |
|
|
Term
| When examining a properly prepared closing statement, the broker would discover that a mortgage assumed by the buyer would appear as |
|
Definition
|
|
Term
| RESPA (the Real Estate Settlement Procedures Act) regulates lenders to which of the following? |
|
Definition
| One-to-four family residential dwellings. |
|
|
Term
| Which of the following would be classified as "boot" in a tax-free exchange? |
|
Definition
|
|
Term
| The maximum commission that can be charged by a licensee for negotiating a Second Trust Deed of $7,000 for a five-year term is |
|
Definition
|
|
Term
| Broker Johnson sold property to a principal who was under 18 years of age and a minor. The broker did not know this until the property went to escrow. The contract is |
|
Definition
|
|
Term
| The minimum time that must run after publication of a notice to creditors, under the provisions of the Uniform Commercial Code pertaining to bulk sales, before consummation of the sale is _____days. |
|
Definition
|
|
Term
| Private restrictions on land can be conveyed by |
|
Definition
|
|
Term
| A judgment that has been recorded would be a/an |
|
Definition
|
|
Term
| The Fair Housing Act is also known as |
|
Definition
|
|
Term
| Most of the junior loans that are secured by real property are secured through |
|
Definition
|
|
Term
| Which of the following forms of ownership always consists of an undivided interest with the rights of survivorship? |
|
Definition
|
|
Term
| The value of a property purchased for investment purposes is usually |
|
Definition
| based on the capitalization of future net income. |
|
|
Term
| The five requisites for a land contract are |
|
Definition
| consideration, legality, offer/acceptance, capacity of the parties, writing. |
|
|
Term
| Growing crops would be placed as security for a loan using which one of the following documents? |
|
Definition
|
|
Term
| An easement differs from a license in that a license |
|
Definition
|
|
Term
| An attorney-in-fact with general powers can do all of the following except |
|
Definition
| deal in real estate without recording his power of attorney. |
|
|
Term
| Regarding parks, playgrounds, and public buildings owned by the city, title is held |
|
Definition
|
|
Term
| Two couples bought properties and had financed the same loan balances. If one couple had used a conventional loan and the other had received a loan guaranteed under the G.I. Bill, which of the following would be true? |
|
Definition
| VA had a lower monthly payment. |
|
|
Term
| If prices rise 20%, what happens to the purchasing power of the dollar? |
|
Definition
| It has gone down 16 2/3%. |
|
|
Term
| The largest area would be |
|
Definition
|
|
Term
| The lending institution that is permitted by law to offer the longest pay-off period on a conventional loan is the |
|
Definition
|
|
Term
| Which of the following is not real property? |
|
Definition
| Stock in a real estate corporation. |
|
|
Term
| Sales to the public of tax deeded property are made at public auction by the county tax collector |
|
Definition
| after the notice of publication and the mailing of a copy to the delinquent taxpayer. |
|
|
Term
| Mortgages and other lien instruments are considered |
|
Definition
| personal property exclusively. |
|
|
Term
| If a spouse leases the residence owned by the husband and wife as community property for one year, without the consent of the spouse, the contract is |
|
Definition
|
|
Term
| Economic life of an improvement depends on |
|
Definition
|
|
Term
| The Uniform Commercial Code, Division 6, which pertains to bulk sale transfer of business goods, exists primarily for the protection of |
|
Definition
|
|
Term
| Most junior loans negotiated are secured from |
|
Definition
|
|
Term
| An example of a device hypothecating real property as security is the: |
|
Definition
|
|
Term
| A prudent investor, to hedge against the erosion of capital caused by inflation, would logically place funds in |
|
Definition
|
|
Term
| Which of the following can be insured by a title insurance company? |
|
Definition
|
|
Term
| In order to hold real property as tenants in common, individuals must |
|
Definition
| hold undivided interests. |
|
|
Term
| A lender referring to a "Seasoned Loan" would be talking about a loan |
|
Definition
| with a previous pattern of prompt payments. |
|
|
Term
| In which of the following situations would the Attorney General of California become involved? |
|
Definition
|
|
Term
| Katz made full payment on a note secured by a deed of trust on his property, and he demanded that the beneficiary clear the records. The beneficiary must move for a re-conveyance |
|
Definition
|
|
Term
| The level of mortgage interest rates is directly affected by all of the following except |
|
Definition
|
|
Term
| An appraiser's first step in estimating value on a piece of vacant land is to assess |
|
Definition
|
|
Term
| A broker belonged to a real estate syndicate. He had a listing on an apartment house that he felt would be a good investment for his syndicate. He consulted with the syndicate and the members agreed. The syndicate purchased the apartment house, but when the seller found out that the broker was involved in the purchase and hadn't told him about this, the seller refused to go through with the sale. The broker sued the seller for his commission claiming he had found a buyer "ready, willing and able." The courts would probably |
|
Definition
| rule in favor of the seller. |
|
|
Term
| Interest paid on top of interest is |
|
Definition
|
|
Term
| The fact that no two parcels of land are exactly alike is one of the basis for courts of law to enforce |
|
Definition
|
|
Term
| According to the provisions of both federal and state civil rights legislation, discrimination due to race, color, creed or national origin in housing is |
|
Definition
|
|
Term
| No subdivision lots in an unincorporated area of a California county can be legally sold or leased prior to |
|
Definition
|
|
Term
| Liquidation of an obligation means |
|
Definition
|
|
Term
| The unit of comparison when using the market data approach of appraisal on a single-family residence is the |
|
Definition
|
|
Term
| If a property with a $2,400 gross monthly income sold with an annual gross rent multiplier of 10.72, what is the sales price? |
|
Definition
|
|
Term
| If a broker has a nonexclusive listing and he wants to be legally entitled to a commission, he must be able to prove that |
|
Definition
|
|
Term
| The comparison method of appraising would be least reliable |
|
Definition
|
|
Term
| In FHA financing as opposed to conventional financing, the lender's main benefit is the |
|
Definition
|
|
Term
| "A" owns a parcel of real property free and clear of all encumbrances, and has leased one of the apartments therein to "B." Thereafter, "B" sublets the apartment to "C." In view of the above |
|
Definition
| "A" can hold "B" liable for the rent if "C" does not pay. |
|
|
Term
| The basis of the market data approach to appraising is found in the principle of |
|
Definition
|
|
Term
| A married couple purchased a residence in 2001 for $263,000. In 2002 they did extensive remodeling spending$34,000 on capital improvements. In2003 they sold this residence for$385,000 and purchased a replacement residence within one month for $400,000. The amount of taxable gain at this time from the sale of the original residence would be |
|
Definition
|
|
Term
| Which of the following would be an advantage in the ownership of income-producing property? |
|
Definition
|
|
Term
| Which of the following deeds would contain a granting clause, but carry no warranties, expressed or implied? |
|
Definition
|
|
Term
| Walters, after signing a contract to purchase real property, but before being notified of the seller's acceptance of the offer, dies of a heart attack. Which of the following is true? |
|
Definition
| The death of Walters worked a revocation of the offer. |
|
|
Term
| Which of the following least affects the use of land? |
|
Definition
|
|
Term
| Every sale contract relating to the purchase of real property in a common interest subdivision or a new subdivision in an unincorporated county area shall clearly set forth |
|
Definition
| all outstanding encumbrances. |
|
|
Term
| "Megalopolis" is an important new term that has been added to the vocabulary of persons working in real estate. The term involves the formation of: |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Your client's petition for a variance has been turned down by the Planning Commission. You should advise him to appeal to |
|
Definition
| the City Council (if in a city), or the Board of Supervisors (if in unincorporated areas). |
|
|
Term
| Warranty Deeds are common in other parts of the country, but rarely used in California because |
|
Definition
| title insurance, with its recourse against the title company, has largely supplanted the warranty deed with its recourse against the grantor. |
|
|
Term
| Space available to meet public demand expands and contracts when stimulated primarily by the fluctuation of |
|
Definition
|
|
Term
| A homeowner can deduct a portion of which of the following as an expense for income tax purposes? |
|
Definition
| Interest on the home loan. |
|
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Term
| Smith owns a single-family residence in which he resides. He trades with Brown for another residence, which Brown is renting to a tenant. Both parties intend to use their newly acquired properties for rental income. Which of the following is true? |
|
Definition
| Brown can negotiate a tax-free exchange. |
|
|
Term
| Which of the following normally deals directly with borrowers, underwrites loans, arranges for real property appraisals, and services loans by receiving and crediting monthly payments? |
|
Definition
| Primary mortgage lenders. |
|
|
Term
| The form of real estate syndicate that requires 100 or more investors is a |
|
Definition
| Real Estate Investment Trust (REIT). |
|
|
Term
| When a lender accepts a deed in lieu of foreclosure, the lender |
|
Definition
|
|
Term
| The words "Time is of the essence" would most likely be found in a |
|
Definition
|
|
Term
| Interest calculated on the total sum of the principal and the simple interest accrued thereon is called |
|
Definition
|
|
Term
| It is proper business practice for real property managers to be compensated in all of the following ways except by a |
|
Definition
| receipt of discounts on purchase of supplies. |
|
|
Term
| Common ownership of a recreation area and individual ownership of individual lots is a/an |
|
Definition
| planned development project. |
|
|
Term
| Which term does not belong with the others? |
|
Definition
|
|
Term
| The responsibility of an agent to his principal is to |
|
Definition
| show them the correct fiduciary responsibilities and keep them up-to-date on all the things that you are doing for him. |
|
|
Term
| A "beneficiary statement" is often required in the closing of an escrow in the sale of a real property. This is a statement |
|
Definition
| issued by a lender indicating the balance due on a loan. |
|
|
Term
| The personal, revocable and unassignable permission or authority to do one or more acts on the land of another without possessing any interest therein is a definition of a/an |
|
Definition
|
|
Term
| The sheet metal that is used to protect a building from water seepage is called |
|
Definition
|
|
Term
| Upon seeking housing accommodations, a person who found himself discriminated against may, under Title VIII of the Civil Rights Act of 1968 |
|
Definition
| bring an action in either federal or state court. |
|
|
Term
| According to the Bulk Sales Law, when buying a business one must |
|
Definition
| publish the notification of sale. |
|
|
Term
| A cost that is most likely overlooked when the owner of a commercial property lists it for the purpose of sale is |
|
Definition
|
|
Term
| A tract developer learns that a large national cosmetics manufacturer is moving near an area where he is building a large number of new homes/condominiums. Since many of the cosmetic firm's employees are women, he decides to gear his sales promotions toward this group and advertises accordingly. Realizing he can't discriminate towards any one racial group, he has his agents set up a quota for Caucasian, Black, Chicano, and Asian buyers. Once the quota is reached, they should discourage any further sales to the group by readjusting the prices. If the developer follows this plan he violates |
|
Definition
| the fair housing laws in both his ad campaign and racial quota system. |
|
|
Term
| A buyer executes a real estate purchase contract and receipt for deposit on January 10 and gives the broker a check for $500. The buyer instructs the broker to hold the check in uncashed form until January 30, regardless of when the offer is accepted. Under these circumstances the broker should |
|
Definition
| present the offer but inform the seller that the check is to be held until January 30. |
|
|
Term
| Who will establish the real property tax rate? |
|
Definition
|
|
Term
| Regarding the California Land Title Association Policy of Title Insurance: which of the following would indicate the advantage of having an extended coverage as opposed to standard coverage? |
|
Definition
|
|
Term
| A contract between the seller of real property and a licensee, in which the seller agrees to pay the licensee a commission if he produces a ready, willing, and able buyer and the licensee agrees to use due diligence in procuring the buyer, is called a |
|
Definition
| bilateral executory contract. |
|
|
Term
| In a typical percentage lease, rent is calculated as a percentage of |
|
Definition
| gross sales of the lessee's business. |
|
|
Term
| A land developer offers a free prize to anyone who replies to his direct mail advertisement and visits his subdivision site. Prior to awarding the prize however, the developer requires the party to attend a sales presentation at the site. The sales presentation requirement was not mentioned anywhere in the advertisement. This type of promotion is |
|
Definition
| illegal because it did not disclose the sales representation attendance requirement. |
|
|
Term
| A restriction in a deed would be enforced by a |
|
Definition
|
|
Term
| Which of the following contracts must be in writing to be enforceable? |
|
Definition
| An agreement by a buyer to assume an existing loan secured by a deed of trust. |
|
|
Term
| While appraising a home, an appraiser observes cracks in the foundation and notices that the doors and windows do not close properly. The appraiser would probably recommend which of the following? |
|
Definition
| A soil engineer's report. |
|
|
Term
| Edward Sampson and Jerome P. Dickson, single men, wish to take title to real property so that each will own a one-half interest with right of survivorship. The granting clause should read |
|
Definition
| "Edward Sampson, a single man, and Jerome P. Dickson, a single man, as joint tenants." |
|
|
Term
| Some leases contain a covenant or condition against assignment without consent of the lessor. In such a case, if the lessee makes an assignment unknown to the lessor, the assignment is considered |
|
Definition
|
|
Term
| A beneficiary statement is issued by the |
|
Definition
| lender to the borrower to identify current status of a loan. |
|
|
Term
| Highest and best use most nearly means |
|
Definition
|
|
Term
| In 1999, an appraiser appraised a house using the cost approach. It was determined that the house, which measured 30 feet by 50 feet, and the garage, which measured 12 feet by 18 feet, were 10 years old. The appraiser estimated that they would have a total economic life of 50 years. In 1999, the cost to construct the house new was $10.20 per square foot, and the cost to construct the garage new was $3.25 per square foot. The value of the land was determined to be $1,500. So in 1999, the depreciated value of the property would be |
|
Definition
|
|
Term
| A final value estimate is the correlation, or reconciliation, of the value indications obtained from which of the following approaches? |
|
Definition
| Cost, income, and comparative. |
|
|
Term
| Ron owns a home, which rents for $600 per month. The home across the street rents for $690 per month and recently sold for $78,000. If Ron applies the same gross rent multiplier to his home as was used on the home across the street, what is the approximate value of Ron's home? |
|
Definition
|
|
Term
| When a transaction takes place for the sale of a business, on which of the following would a sales tax be charged? |
|
Definition
| Furniture and/or fixtures. |
|
|
Term
| Recording a judgment gives what type of notice? |
|
Definition
|
|
Term
| Because life insurance companies are not willing to deal directly with the mortgagors and trustors, they usually pay a loan servicing and preparation fee, and make real estate mortgage loans to purchase indirectly through |
|
Definition
|
|
Term
| A blanket encumbrance is one that |
|
Definition
| covers more than one lot or parcel. |
|
|
Term
| When issuing their closing statement, escrow would debit the seller of income property for which of the following items |
|
Definition
|
|
Term
| Under normal competitive conditions, the vacancy rate of an apartment building is the result of |
|
Definition
| housing supply and demand in the area. |
|
|
Term
| Community apartment projects and condominiums come within the subdivision provisions of the California Real Estate Law when they contain how many units? |
|
Definition
|
|
Term
| Broker Wilson is asked by Mr. Able to assist him in obtaining a $1,500 loan secured by a trust deed on his unimproved property. Broker Wilson secured a 90-day exclusive listing on the loan from Mr. Able. In regards to this transaction |
|
Definition
| a loan of $2,000 or less is limited to a term of not more than 45 days listing period. |
|
|
Term
| A broker who holds a valid listing on a property places a classified ad for the property containing only the following information: "For Sale 3 bedroom, 2 bath home with swimming pool. Asking Price $149,000. Telephone 281-5211." This type of advertisement would be an example of a |
|
Definition
|
|
Term
| Which of the following would not be classified as an institutional lender? |
|
Definition
|
|
Term
| After signing a valid agreement for sale, a buyer asks the broker for permission to move into the property before the sale closes. The broker should |
|
Definition
| obtain written consent from the seller. |
|
|
Term
| If a buyer withdraws his offer to purchase real property prior to acceptance by the seller, the |
|
Definition
| buyer is entitled to a refund of the earnest money deposit. |
|
|
Term
| Regarding a Trust Deed and Note, the |
|
Definition
| lien of the Trust Deed is incidental to the debt. |
|
|
Term
| An institutional lender would be LEAST interested in which of the following? |
|
Definition
| Borrower's desire for the property. |
|
|
Term
| An offer made by the buyer was accepted by the seller. Prior to the broker advising the buyer that the offer had been accepted, the buyer died. The contract would be |
|
Definition
|
|
Term
| A significant difference between Mechanics liens and Judgment liens is that |
|
Definition
| mechanics liens may take priority earlier than the date they are recorded. |
|
|
Term
| The provision that states "The Realtor shall not publicly disparage the business practice of a competitor" appears in the |
|
Definition
|
|
Term
| Which of the following types of lenders would have the greatest percentage of, and the most funds invested in, real estate mortgages? |
|
Definition
| Savings and loan associations. |
|
|
Term
| Which of the following items would most likely appear as a credit on the sellers' closing statement? |
|
Definition
|
|
Term
| The primary justification for zoning ordinances is that a municipality |
|
Definition
| promote the general health, safety, and welfare of the community. |
|
|
Term
| Mrs. Adams dies intestate and apparently has no heirs. She has substantial property holdings in California, therefore the |
|
Definition
| property would escheat to the State of California if no heirs should claim the property within five years. |
|
|
Term
| Which of the following is used in determining the net income of a property using the Capitalization Approach of appraisal? |
|
Definition
|
|
Term
| The county tax rate is set annually by the |
|
Definition
|
|
Term
| In regard to land value units, as the depth a lot increases beyond the typical lot depth, the |
|
Definition
| value per front foot increases. |
|
|
Term
| From an historical standpoint, the major function, objective, and aim of the Federal Housing Administration program has been provided by which of the following sections of law? |
|
Definition
|
|
Term
| The total value of all goods and services produced by the U.S. during a specific period of time is called the |
|
Definition
| Gross National Product (GNP). |
|
|
Term
| The area between the bottom of the floor joists and the ground is called a crawl space. According to FHA minimum property requirements, it must be at least |
|
Definition
|
|
Term
| An easement that could be most easily terminated by non-use would be created by which method? |
|
Definition
|
|
Term
| Which of the following agencies is primarily concerned with affordable rental housing? |
|
Definition
| Department of Housing and Urban Development (HUD). |
|
|
Term
| Which of the following would describe a change in flight patterns of airplanes that would make them fly over an owner's property? |
|
Definition
|
|
Term
| In California, a Grant Deed normally transfers title of real property to the: |
|
Definition
|
|
Term
| In the event of a business failure, a limited partner may limit his or her liability to outside creditors to |
|
Definition
| the total amount of his or her pledged contribution to the partnership. |
|
|
Term
| The best appraisal methods to be used to establish the current market value of a shopping center would be the |
|
Definition
| Replacement Cost – Income (capitalization). |
|
|
Term
| The four elements of production are Labor, Capital, Entrepreneurship, and |
|
Definition
|
|
Term
| In doing the Reproduction Cost approach to appraising, taking the cost of each individual item into account to come up with accurate figures describes which method? |
|
Definition
|
|
Term
| Two friends hold title to a home as joint tenants. One of them borrowed money and executed a note and a deed of trust against the home. This action could |
|
Definition
| place the beneficiary in a precarious position should the borrower die before the debt is paid. |
|
|
Term
| "No person acting under the Real Estate Law shall accept any purchase or loan funds or other consideration from a prospective purchaser or lender, or directly or indirectly cause such funds or other consideration to be deposited to an escrow except as to the specific loan or specific real property sales contract or promissory note secured directly or collaterally by a lien on real property on which loan, contract or note the person has a bona-fide authorization to negotiate or sell." In the preceding quotation taken from the Real Estate Law, the term "collaterally" means a |
|
Definition
| note secured by another note. |
|
|
Term
| There are many advantages in purchasing a home using government insured or guaranteed loans. Some of these advantages include lower down payments, lower interest rates, and a longer term to pay off the loan. Which of the following statement is NOT true with regard to these loans? |
|
Definition
| VA loans are made on single-family homes where the borrower intends to rent to others. |
|
|
Term
| The use of the "gross multiplier" to assist in appraising real property leased to various tenants is based upon |
|
Definition
| relationship between rental value and sales price, or market value, of property. |
|
|
Term
| A Gift Deed conveying title to real property may be set aside or voided by |
|
Definition
| creditors of the grantor. |
|
|
Term
| The relationship of principal and agent can be created in all of these ways, EXCEPT by |
|
Definition
|
|
Term
| Which of the following types of loans may have a variable amortization period? |
|
Definition
|
|
Term
| Which of the following factors results most in an increased demand for houses? |
|
Definition
| Increased desire for houses. |
|
|
Term
| Which of the following is not a secondary mortgage market lender? |
|
Definition
| Federal Housing Administration (FHA). |
|
|
Term
| A homeowner can deduct all of the following costs for his primary residence each year on his federal tax return, except |
|
Definition
| painting the living room. |
|
|
Term
| After Mr. Bagger purchased his home, he discovered by survey that his neighbor's garage was three feet over on his newly acquired property. This disturbed him greatly. For remedy, if a friendly settlement cannot be reached, he should bring civil suit against |
|
Definition
|
|
Term
| A Prepaid Rental Listing Agent is required to do all of the following, EXCEPT |
|
Definition
| submit a statement of accounts to the Commissioner quarterly. |
|
|
Term
| Gary buys a home from Lee, paying all cash. Lee still owes money against the property. If everything is done correctly, what would most likely be recorded? |
|
Definition
| Deed of Re-conveyance to Lee |
|
|
Term
| Which of the following would best describe deferred maintenance? |
|
Definition
| A building showing signs of needing rehabilitation. |
|
|
Term
| A roof with slopes on all four sides is called a |
|
Definition
|
|
Term
| In negotiating certain loans a broker is required to fill in all of the items on a Broker's Loan Statement form. Which of the following items must be inserted? |
|
Definition
| The amount that will be charged by a qualified agency to render a report on the financial capacity of the borrower. |
|
|
Term
| To impose restrictions on a new large subdivision, the most practical method is to |
|
Definition
| record the restrictions in the manner provided by law and make reference to them in each deed. |
|
|
Term
| A broker receives an offer on a property, and a prospective purchaser gives him a $1,000 deposit. He places the deposit in his trust account. After all the conditions of the deposit receipt have been fulfilled, the buyer decides that he wants to back out. The seller agrees to release the buyer if he may keep $500 of the deposit money. However, the buyer claims that he "has an out" because of a certain clause in the deposit receipt and demands the return of the entire $1,000. The seller then demands the $1,000 from the broker. The broker should |
|
Definition
| give the $1,000 to the seller. |
|
|
Term
| The Hutchinson’s, prospective buyers of a home, request a broker to find a loan for them. The broker would most likely contact |
|
Definition
| an institutional lender, such as a bank, or a savings and loan association. |
|
|
Term
| Which of the following principles forms the basis of the Market Data approach? |
|
Definition
|
|
Term
| A high Energy Efficiency Ratio (EER) on an air conditioning unit means |
|
Definition
| the unit is more efficient. |
|
|
Term
| In certain types of real estate transactions, the term "like for like" is used. What type of transaction would this most likely be? |
|
Definition
|
|
Term
| Which of the following is not an essential to acquiring an Easement by Prescription? |
|
Definition
| Payment of the real property taxes. |
|
|
Term
| When estimating the loss in value due to depreciation, the real estate appraiser would primarily be concerned with |
|
Definition
|
|
Term
| Which of the following is not essential to the creation of an agency relationship? |
|
Definition
| Agreement to pay a consideration. |
|
|
Term
| A salesperson receives an offer from a buyer who has no cash but offers a deposit of $500 in the form of a personal note payable in thirty days. Which statement is true? |
|
Definition
| A salesperson may accept a personal note as deposit if he advises the seller of this prior to |
|
|
Term
| A prudent lender would take into consideration which of the following before issuing a loan? |
|
Definition
|
|
Term
| In assessing the profitability of a real estate office, the broker must consider "desk cost." Which best describes how to calculate "desk cost"? |
|
Definition
| Divide the total operating expenses of the office, including salaries, rent, insurance, etc., by the |
|
|
Term
| The economic life of an improvement as compared to the physical life is usually |
|
Definition
|
|
Term
| A private party offers a single family residence for sale without the services of a real estate broker and advertises that the property is to be sold in an "as is" condition. Under these circumstances the seller |
|
Definition
| must provide a Real Estate Transfer Disclosure Statement to a prospective buyer. |
|
|
Term
| Which of the following is real property? |
|
Definition
| Stock in a mutual water company. |
|
|
Term
| Mike Coogan, a new real estate salesperson, made strong efforts to obtain listings in a non-integrated community. He found success by insinuating to property owners that should minorities move into the area, the value of their homes would decrease. Which of the following terms best describes the activities of salesperson Coogan? |
|
Definition
|
|
Term
| Harris and Davis, single people, owned a parcel of real property as joint tenants. Harris encumbered his interest for $10,000, borrowing the amount to pay medical bills without the knowledge or consent of Davis. Shortly thereafter, Harris died with the debt still unpaid. Which of the following would be true? |
|
Definition
| Davis would own all of the property free and clear of the encumbrance. |
|
|
Term
| Occasionally, the title to real property becomes unmarketable. Which of the following causes would be LEAST likely to result in that eventuality? |
|
Definition
| Public restrictions contained in zoning ordinances and building codes. |
|
|
Term
| What supports the floor and ceiling loads? |
|
Definition
|
|
Term
| A broker who takes a listing with option to purchase is, first of all a/an |
|
Definition
|
|
Term
| Mr. and Mrs. Davis held real property as "husband and wife." Mr. Davis died and his will specified that "all his interests" were to go to his eldest son, Thomas. Son Thomas would |
|
Definition
| Inherit an undivided one-half interest in the property. |
|
|
Term
| The Real Estate Commissioner's Final Subdivision Public Report expires |
|
Definition
| five years from date of issuance of report. |
|
|
Term
| An individual purchased a nine- acre parcel of unimproved property. He then subdivided the nine acres into one- acre parcels. If the sub-divider plans to sell only 3 one-acre parcels per year over the next three years, he must comply with |
|
Definition
|
|
Term
| In advertising a listed property for sale, a broker may not legally |
|
Definition
| run an ad giving the impression that he is the owner of the property. |
|
|
Term
| An appraiser, in arriving at an estimate of value secured under each of the three approaches in appraising |
|
Definition
| explains why or why not the other approaches were not used, then chooses the one the appraiser believes to be the most appropriate approach. |
|
|
Term
| A licensed contractor purchased eight lots in a new subdivision and constructed eight homes on the lots. He sold the eight homes to various buyers and took back a $5,000 Second Trust Deed on each of them. He would now like to sell the Trust Deeds within the year of their creation at a 20% discount. In order for him to do this, he |
|
Definition
| needs a real estate brokers’ license. |
|
|
Term
| The owner of a property who signed a listing with a broker for 30 days was killed in an accident before the listing expired. The listing is |
|
Definition
| terminated by the death of the owner. |
|
|
Term
| Which of the following would usually be considered real property? |
|
Definition
| Air space above the land. |
|
|
Term
| A Veteran's Exemption must be filed by |
|
Definition
|
|
Term
| When compared to a conventional contract of sale, the distinguishing characteristic of a real estate option is its |
|
Definition
| lack of mutuality in obligation. |
|
|
Term
| The Real Estate Commissioner would be prevented from proceeding with a formal action against the license of a real estate broker by the |
|
Definition
| lapse of three years from the occurrence of the grounds of complaint. |
|
|
Term
| A minority purchaser enters your office and states they are looking for, and interested in purchasing, a particular property in a minority neighborhood. You could legally assume that |
|
Definition
| they are interested in that particular property. |
|
|
Term
| Certain charges are prohibited by the Real Estate Settlement Procedures Act in selling a house. Buyer or seller may legally be charged for all of the following EXCEPT |
|
Definition
| disclosure settlement statements. |
|
|
Term
| Concerning business opportunities |
|
Definition
|
|
Term
| The primary justification for zoning ordinances is to |
|
Definition
| promote the public health, safety, morals and general welfare. |
|
|
Term
| An attorney drew up a contract between a buyer and a seller for the purchase of a property. The agreement included a liquidated damages clause calling for the payment of $500 in the event the buyer should default. Prior to the close of escrow, the buyer decided that the home would not suit her family and canceled the purchase. If the seller were to sue for specific performance, he would most likely be |
|
Definition
| unsuccessful because the seller agreed to accept the $500 as liquidated damages in the contract. |
|
|
Term
| The right to foreclose on a trust deed, under a trustee's power of sale, outlaws |
|
Definition
|
|
Term
| Option to renew a lease is a |
|
Definition
|
|
Term
| RESPA requires delivery of the Uniform Settlement Statement no later than |
|
Definition
| At or before the date of settlement. |
|
|
Term
| The owner of a single-family residence plans to sell, and wants to obtain an FHA appraisal to permit a sale with FHA financing. He should |
|
Definition
| have a lender apply for a conditional commitment. |
|
|
Term
| Which of the following is the classic definition of the boundaries of real property? |
|
Definition
| A reasonable use of airspace and extended to the center of the earth. |
|
|
Term
| When the sale of a business also involves the bulk sale of the stock, a notice of the sale must be given as provided in the |
|
Definition
|
|
Term
| Should a person be discriminated against, what would best describe the actions available to them? |
|
Definition
| Private action in a state or federal court. |
|
|
Term
|
Definition
|
|
Term
| A licensed real estate broker received a signed listing from a prospective seller. During the listed period, the broker found a buyer who submitted an offer that was $1,000 less than the listed price. The owner accepted the offer as submitted and the buyer was notified of the acceptance. After escrow was opened, buyer and seller agreed to cancel the sale but the seller refused to pay the broker a commission. Under the Statute of Limitations how long does the broker have to sue for his commission? |
|
Definition
|
|
Term
| In the state of California, which department or board receives the Structural Pest Control Reports? |
|
Definition
| The Structural Pest Control Board. |
|
|
Term
| The one unity in a joint tenancy holding that is also present in tenancy- in-common holding is |
|
Definition
| Equal right of possession. |
|
|
Term
| Capitalization is an appraisal process used to |
|
Definition
| convert net income into market value. |
|
|
Term
| An employee of a corporation licensed as a real estate broker that is working as a member of the corporation's sales staff |
|
Definition
| must be a licensed real estate salesperson or broker. |
|
|
Term
| Which of the following, when authorized by the broker, could make a withdrawal from the broker's trust account? |
|
Definition
| Any employee provided that the employee is covered by a surety bond protecting the broker |
|
|
Term
| Concerning Riparian Rights, which of the following is true? |
|
Definition
| Include the right to reasonably appropriate water as needed. |
|
|
Term
| To use the Capitalization Approach to appraising you need the |
|
Definition
|
|
Term
| In the event a court proceeding is entered into between two licensed real estate brokers over a commission split, it is not necessary for the brokers to show the court a written contract between the brokers regarding the commission split because |
|
Definition
| this type of agreement is not covered under the Statute of Frauds. |
|
|
Term
| In an escrow, prepaid rents are normally |
|
Definition
|
|
Term
| An escrow officer received two pest control reports that had been prepared by two different licensed structural pest control operators and based on their separate inspections. If the report was part of the terms of the purchase agreement and one recommended more corrective work than the other, the escrow officer should |
|
Definition
| send a copy of both reports to both the seller and the buyer. |
|
|
Term
| You pay the most loan points under which type of financing? |
|
Definition
|
|
Term
| Fisk owns a lot. He also owns a right-of-way easement over the property of his neighbor, Smith. This easement is appurtenant to Fisk's lot. Fisk sells his lot to Jones without specific mention of the easement in the deed. The easement |
|
Definition
|
|
Term
| Which of the following would normally install conduit? |
|
Definition
|
|
Term
| Two people entered into a land contract for the purchase of a home and the contract was recorded. A few months later, the vendee abandons the property and defaults on the contract. If the vendee refuses to execute and record some form of release, it will |
|
Definition
| create a cloud on the title. |
|
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Term
| A broker who is hired by an owner to sell his property must reveal all significant and material information to the principal. Which of the following would be considered material information and must be revealed? |
|
Definition
| Agent's knowledge that a better offer to purchase is imminent. |
|
|
Term
| Generally, the most important determinant of a property's value is |
|
Definition
|
|
Term
| Real property includes the land, those things attached to the land, and things called appurtenances. Appurtenances include all of the following except |
|
Definition
|
|
Term
| The cost approach used on a residence built in 1912 would require |
|
Definition
| replacement cost determined by today's costs less depreciation. |
|
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Term
| Mr. O' Riley paid an owner $10 for an option containing this clause: "Option to be for 60 days from June 1, 2005. Upon exercise of option, holder is to purchase within 30 days thereafter for all cash consideration." On July 10, Mr. O' Riley sold and assigned his option for $1,000. On July 28, the new holder notified the owner that he would purchase on August 15. The owner claimed the option was void. The option was |
|
Definition
| valid, and assignee could purchase on August 15. |
|
|
Term
| The appraiser has been employed to appraise a property zoned R-1. Which of the following factors would be considered to be the most important? |
|
Definition
| Marketability and acceptability. |
|
|
Term
| For the contract or agreement to be enforceable, a person signing under a "Power of Attorney" should sign |
|
Definition
| their and their principal's name to the agreement. |
|
|
Term
| A house sold for $345,000, which was 9% more than the cost of the house. The original cost of the house was most nearly |
|
Definition
|
|
Term
| When would a lender look to a borrower's personal assets? When the borrower was |
|
Definition
|
|
Term
| A husband who owns separate property dies without a will. Concerning that separate property, it would be distributed in which of the following ways? |
|
Definition
| One-third to the wife and two-thirds to the children if there is more than one child. |
|
|
Term
| When a Special Assessment Tax is imposed under the Street Improvement Act of 1911, property owners are charged with a share of the costs of the new improvement. If the bill is not paid within 30 days of receipt it becomes a lien and |
|
Definition
| it automatically goes to bond and is payable over a period of years. |
|
|
Term
| Fee schedules setting forth charges for title policies and other services performed by title companies are set by |
|
Definition
| title insurance companies. |
|
|
Term
| If a seller accepted an offer within a seven-day time limit set out in the contract, but changed the date of possession and initialed the change, which of following would be true? |
|
Definition
| The offer would become a counter- offer, subject to acceptance by buyer. |
|
|
Term
| Which of the following would be the greatest distance? |
|
Definition
| 1 side of 1/4 of 1/4 of Section 16 |
|
|
Term
| The buyer advised the escrow company that he was unable to secure a new First Trust Deed loan. If there was a specific contingency clause concerning this point in the escrow instructions: |
|
Definition
| escrow should be extended another 30 days to enable the buyer to secure other financing. |
|
|
Term
| Mrs. Barker sells a $5,000 note secured by a deed of trust to investor Johnson for $3,000. This could be best described as |
|
Definition
|
|
Term
| If all things are equal, the cost to construct a two-story dwelling with the same square footage would be |
|
Definition
| less than the cost of construction of a one-story dwelling. |
|
|
Term
| When the State has given permission to a non-riparian owner of a farm to use a nearby lake, the owner has received this right by |
|
Definition
|
|
Term
| Real property of the estate of a person who died intestate is to be sold by the Administrator. This property can only be sold |
|
Definition
| after the Court has approved the terms of sale and the price. |
|
|
Term
| The doctrine of Escheat most nearly refers to the legal process that is used to |
|
Definition
| cause title to certain real estate to revert to the state. |
|
|
Term
| Which of the following is the most commonly used title insurance coverage? |
|
Definition
| California Land Title Association Standard Coverage. |
|
|
Term
| Real estate loans that are governed by an index that tends to fluctuate during the term of the loan are called |
|
Definition
|
|
Term
| An offer to sell a franchise in California must be registered with the Department of Corporations unless it is exempted because the franchiser |
|
Definition
| has a net worth of not less than five million dollars. |
|
|
Term
| When appraising a 15-year-old, single-family, owner-occupied home, which of the following factors normally would be given the greatest consideration? |
|
Definition
| The current price paid for other homes in the neighborhood |
|
|
Term
| Broker Gross is showing property that he has listed to Lavine. Broker Gross knows that there are massive plumbing repairs to be made. Broker Gross |
|
Definition
| has to tell the buyer, because he must disclose all material facts. |
|
|
Term
| A real estate broker was in the process of taking a listing from an owner, when during the conversation the owner informed the broker that he did not wish to have his property shown to anyone of a minority background. Under these circumstances, the broker should |
|
Definition
| refuse to take the listing. |
|
|
Term
| As a general rule concerning land value units, it is recognized that as the depth of a lot increases beyond the typical lot depth the |
|
Definition
| value per front foot increases. |
|
|
Term
| The conscious charging by a private lender of more than the maximum amount of interest allowed by law is known as |
|
Definition
|
|
Term
| In new construction, what is the minimum size that a room may be built in accordance with the new California Law regarding new homes? |
|
Definition
|
|
Term
| Enacted laws to govern the protection of the people concerning, "health, welfare and safety" are established through |
|
Definition
|
|
Term
| As "Head of the Family," a husband signed a Declaration of Homestead on the family residence, which was encumbered only by a $92,000 First Trust Deed. The wife did not sign the declaration. The property was worth $108,000. The owner had a new roof put on the house, but did not pay the roofing contractor, who then filed a Mechanics Lien. The lien was |
|
Definition
| enforceable because Mechanic's Liens take priority over a recorded homestead exemption. |
|
|
Term
| The prepayment penalty for paying off a Cal-Vet Loan in less than two years is |
|
Definition
|
|
Term
| A primary effect of deregulation of savings and loans has been |
|
Definition
| There is no limit on the interest rate savings and loan associations can pay on money deposited with them |
|
|
Term
| Although a title insurance policy does cover the risk of loss for many reasons, which of the following risks would NOT be covered? |
|
Definition
| A zoning ordinance, regulation, or plan |
|
|
Term
| The process of expressing anticipated future benefits of ownership in dollars, and discounting them to a present worth at a rate that is attracting purchase capital to similar investments is called. |
|
Definition
|
|
Term
| If a tenant is evicted unjustly, the tenant may do any of the following, EXCEPT |
|
Definition
| petition the court to appoint a three- man tribunal to arbitrate the matter. |
|
|
Term
| A broker goes to list a church in 1972 by an unincorporated group. To be sure that the proper party signs the listing, he should |
|
Definition
| check the by-laws or the charter to see who has authority. |
|
|
Term
| Assume that after an offer has been accepted, a liquidated damages agreement in the contract had been initialed by both parties. Subsequently, the buyers become convinced they have paid too much for the property and decide to forfeit their deposit which was being held by the broker in his trust account, rather than to go through with the purchase. In such a case |
|
Definition
| the seller may choose to leave the deposit with the broker and sue the buyers for specific performance. |
|
|
Term
| Less-than-freehold estates consist of estates owned by |
|
Definition
|
|
Term
| The fundamental basis for fair housing throughout the United States stems from |
|
Definition
| Thirteenth amendment to the United States Constitution. |
|
|
Term
| An appurtenant easement is |
|
Definition
| an interest in land capable of transfer. |
|
|
Term
| Which of the following may not be added to the original cost basis of real property to arrive at an adjusted basis for federal income tax purposes? |
|
Definition
|
|
Term
| A husband and wife purchased a residence in 1983 and paid $67,000. After living in the home for more than a year, they sell the property for $63,000. The amount of deduction that they can take for this loss on their federal income tax return would be |
|
Definition
|
|
Term
| A prospective buyer who was not a real estate licensee, nor had any "ties" with the seller's broker, wished to purchase a large parcel of land and made an offer on the property at a price of $600 per acre. The seller accepted the offer and escrow was opened. During the escrow period the seller discovered that the buyer had already entered into an agreement to resell the acreage at a price of $2,000 per acre to an unknown buyer. Under these circumstances the original seller's recourse is to |
|
Definition
|
|
Term
| Governmental land use, planning, and zoning are important examples of |
|
Definition
|
|
Term
| The "Secondary Mortgage Market" could be best described as |
|
Definition
| mortgages passed between mortgagees. |
|
|
Term
| A widow who is willed the use of the family home for the rest of her natural life, with provision that title shall go to the children upon her death, holds a/an |
|
Definition
|
|
Term
| The purchaser of a lot that is subject to a lien for street improvements under the Street Improvement Act of 1911 may prevent the assessment from going to bond if he pays the assessment in full within how many days after the completion of the work? |
|
Definition
|
|
Term
| The Income Approach would not be used when appraising |
|
Definition
| residences in a new subdivision. |
|
|
Term
| Many real estate contracts are in writing on forms. Parts of these contracts are written and parts are printed. In the interpretation of such contracts |
|
Definition
| The written parts take precedence over the printed parts. |
|
|
Term
| Mrs. Jackson, a real estate developer, subdivides a parcel of land into 50 lots. She receives a Final Public Report to sell. Her first two transactions are to sell five lots to a contractor and also to option five lots to a speculator. Concerning these transactions |
|
Definition
| the sub-divider must notify the Real Estate Commissioner of both the sales and the options. |
|
|
Term
| If a residential neighborhood consists primarily of owner-occupied homes, the immediate economic results would be a |
|
Definition
| low turnover of occupants. |
|
|
Term
| Which of the following expresses the creation of an estate in real property? |
|
Definition
|
|
Term
| The opposite of alienation is |
|
Definition
|
|
Term
| A person who hires real property from the owner and is given the exclusive right to use it is known as a |
|
Definition
|
|
Term
| Of the following situations, which would be exempt from the discrimination in housing provisions of the government? |
|
Definition
| The leasing of a room to one person in an owner-occupied single-family home that is unencumbered |
|
|
Term
| A prepayment clause in a mortgage |
|
Definition
| provides for a certain sum to be paid by the mortgagor if the loan is paid off before the maturity date. |
|
|
Term
| An investor purchased a home for $72,000, with a $20,000 down payment and financed the balance with a $52,000 straight note. The investor then sold the property for double the purchase price. If the investor had made no principal or interest payments on the loan, each dollar invested would now be worth |
|
Definition
|
|
Term
| Under tenancy in common, when one co-tenant dies |
|
Definition
| his interest passes to his devisees under his will, or to his heirs. |
|
|
Term
| The sale of property that is under a long-term lease to another party |
|
Definition
| has no effect upon the term of the lease as far as the tenant is concerned. |
|
|
Term
| The use of the market data approach to value adjustments is often necessary to determine value. These adjustments are made as follows |
|
Definition
| comparables are adjusted to the characteristics of the subject property. |
|
|
Term
| A property is listed with your employing broker for $60,000. The property has a loan encumbering it with a balance of $12,000. You discover that the lender will accept a cash pay-off at a 50% discount, that is, he will accept $6,000 immediate cash as full payment. You have a buyer willing to offer $60,000 cash for the property. You should |
|
Definition
| inform the seller that his loan can be paid off prior to the sale at a 50% discount. |
|
|
Term
| A couple wanted to buy a house for$47,000. The contract contained a contingency clause based on a 100% loan. The bank would only loan $36,000. The buyers had given a $1,500 deposit. The buyers |
|
Definition
|
|
Term
| The broker failed to sign the deposit receipt in the proper place. Which of the following would be true? |
|
Definition
| It would not affect the validity of the deposit receipt |
|
|
Term
| Which of the following could take place before a judgment was issued? |
|
Definition
|
|
Term
| Which is not a consideration in determining if an item is a fixture? |
|
Definition
|
|
Term
| When the public records have been examined in order to determine the Chain of Title to a parcel of real property, a written summary of that Chain of Title is known as |
|
Definition
|
|
Term
| The type of deed generally used to clear a "cloud on the title" is |
|
Definition
|
|
Term
| The Dominant Tenement has a/an |
|
Definition
|
|
Term
| Which of the following CANNOT be defined as blanket encumbrances according to subdivision laws? |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Which of the following would be the superior or highest lien? |
|
Definition
| A lien created under the provisions of the Street Improvement Act of 1911 |
|
|
Term
| Conduit would be used by a/an |
|
Definition
|
|
Term
| A licensee was attempting to list homes for sale by cautioning owners that minority groups were moving into the area. He mentioned that as a result, property values would decrease, the quality of the schools would suffer, and crime rates would increase. Under these circumstances |
|
Definition
| the Real Estate Commissioner can discipline the licensee. |
|
|
Term
| A broker receives a check as a deposit on a property. Along with the check are written instructions for the broker to hold the check uncashed until acceptance of the offer. The broker should. |
|
Definition
|
|
Term
| An appraiser, while inspecting a house, finds cracks in the wall in a corner of the basement. What is the most likely cause? |
|
Definition
|
|
Term
| A policy of TITLE insurance requires a careful search of the public records. The public records covered are found in the |
|
Definition
|
|
Term
| Broker Jones takes a listing on a home. In the listing, the owner states that ABC Escrow is to be used. Broker Jones brings an offer for the property that calls for the escrow to be handled by Golden Coast Escrow. The seller accepts the offer submitted by the broker. Which of the following statements is true? |
|
Definition
| The escrow should be held by Golden Coast Escrow since the buyer and seller both signed the deposit receipt. |
|
|
Term
| Ms. Miller executed a full price and terms offer to purchase Taylor's property through Broker Micks, who held an exclusive authorization and right to sell listing. As the broker was leaving the office to present the offer, another broker handed him a second offer for $1,000 less than the listed sales price but which contained a larger down payment and other different terms. Micks, the listing broker, should |
|
Definition
| present both offers at the same time. |
|
|
Term
| If an escrow officer receives two structural pest control reports, the escrow officer should |
|
Definition
| submit both reports to the buyer and seller and let them decide which report to use. |
|
|
Term
| Which of the following is regarded as a personal property interest? |
|
Definition
| Leasehold estates in real property |
|
|
Term
| Which of the following real estate loan costs need NOT be disclosed to consumers under the Federal Truth-in- Lending Law? |
|
Definition
|
|
Term
| How many acres are in the east 1/2 of the north 1/2 of the south 1/2 of the north 1/2 of section 14? |
|
Definition
|
|
Term
| Which of the following approaches to value tends to set the upper limit of value? |
|
Definition
|
|
Term
| A broker obtained an exclusive right to sell listing on a property. He expended much time, money, and energy trying to sell it. The seller decided he didn't want to sell and refused to allow the broker to proceed under the agreement. Under these circumstances, the broker should |
|
Definition
| consider the seller's refusal a breach and sue for damages. |
|
|
Term
| Loan points are charged to |
|
Definition
|
|
Term
| Under the provisions of Division 6 of the Uniform Commercial Code, who is protected by the publishing and recording requirements? |
|
Definition
|
|
Term
|
Definition
| any interest the grantor may have. |
|
|
Term
| Which of the following acts may legally be taken by a minor or incompetent person in the absence of court approval? |
|
Definition
| Acquire real property through gift or inheritance |
|
|
Term
| A cautious buyer paid $200 for a four-month option to purchase a property for $30,000. Under these circumstances each of the following is true, EXCEPT the |
|
Definition
| optionee has created a legal interest in the property. |
|
|
Term
| The minimum time required for an owner to give notice to the tenants in an apartment building when that building is being converted by the owner to a condominium form of ownership is |
|
Definition
|
|
Term
| 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 |
|
Definition
| you may pay a commission to a broker of another state. |
|
|
Term
| The main purpose of indemnifying oneself with a fire insurance policy would be to |
|
Definition
|
|
Term
| If you have an estate in severalty you have a title as |
|
Definition
|
|
Term
| The Real Estate Commissioner, when regulating the sale of subdivision land under his control, would be most interested in |
|
Definition
| financing of the interests in the common grounds. |
|
|
Term
| Which of the following is most vital or important in planning a subdivision? |
|
Definition
|
|
Term
| A prospective buyer would be entitled to damages from a real estate broker in the event the broker |
|
Definition
| acts in excess of the authority given the broker by the seller. |
|
|
Term
| An apartment building is valued at $300,000 using a 6% capitalization rate. How much would an investor pay for the property if he demanded an 8% capitalization rate? |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Personal property is conveyed by a |
|
Definition
|
|
Term
| An executrix of an estate is |
|
Definition
| named in the decedent's will. |
|
|
Term
| Certain activities performed for compensation require a person to hold a real estate license. The following would require a real estate license, provided compensation was sought or received |
|
Definition
| assisting in the filing of an application for the purchase or lease of lands owned by the State or Federal Government |
|
|
Term
| An extension of credit by a seller who takes a note and a trust deed is called a |
|
Definition
| Purchase Money Trust Deed. |
|
|
Term
| Which of the following would be classified as a turnkey project? |
|
Definition
| A residential subdivision that is completed and ready for occupancy |
|
|
Term
| Which of the following is an advantage of the market data approach to value in the appraising process? |
|
Definition
| It is the simplest of the approaches to learn and to use |
|
|
Term
| When a purchaser under a land contract is paying the seller impounds for taxes and insurance, those payments may not be disbursed for any other purpose without the consent of the |
|
Definition
|
|
Term
| All of the following are common ways to measure the area of a parcel of land EXCEPT |
|
Definition
|
|
Term
| A man made an offer to purchase a property together with a deposit, and the broker filled out a deposit receipt form. A copy of the deposit receipt is to be given to the offeror |
|
Definition
| at the time it is signed by the buyer. |
|
|
Term
| A salesperson sold a home listed with a broker who is cooperating with her employing broker. She may receive an advance against her commission from the |
|
Definition
|
|
Term
| "Placement of the improvement on the lot" is known as |
|
Definition
|
|
Term
| A man who owned a single family residence was going to put the house on the market. If he wanted to be sure that the buyer would first get the highest possible FHA loan, he could |
|
Definition
| apply for a conditional commitment. |
|
|
Term
| California law permits a person to file a Declaration of Homestead provided that person is living in |
|
Definition
|
|
Term
| You have a prospective buyer for a single family dwelling and the subject of Title Insurance has come up. The buyer states that he wants the greatest protection available to him as an owner. He should request the following |
|
Definition
| Extended Coverage Policy of Title Insurance. |
|
|
Term
| A homestead recorded under California law may be invalidated by |
|
Definition
| a prior homestead on another property. |
|
|
Term
| The measure of goods and services produced by the nation during any one calendar year'' is the definition of which of the following? |
|
Definition
|
|
Term
| A licensed real estate broker had a listing on a residence at a price of $120,000. There was no stipulation in the listing contract with regard to deposits of the buyer. The broker advertised the property and received an inquiry from a prospect. After showing the property, the prospective buyer said that he and his wife wanted to make an offer on the property for the full listed price and terms but were not willing to give the broker a deposit with their offer. Under these circumstances the broker should |
|
Definition
| accept the offer as the Buyer’s Agent, and present it to the seller but advise the seller there is no deposit. |
|
|
Term
| When selling a business opportunity, the seller must collect sales tax from the buyer on which of the following items? |
|
Definition
| The fixtures and furniture included with the business |
|
|
Term
| Which of the following would be classified as economic obsolescence? |
|
Definition
| An oversupply of like properties |
|
|
Term
| Which of the following is not a soil condition or type of soil? |
|
Definition
|
|
Term
| Every licensee who sells a real property sales contract shall cause a proper assignment of the contract to be executed and shall cause the assignment to be recorded in the county in which the real property is located within the following number of days after close of escrow? |
|
Definition
|
|
Term
| Which of the following is required to obtain a California Real Estate Salesperson's License? |
|
Definition
|
|
Term
| On a construction loan, the last payment by the lender is usually made |
|
Definition
| after the lien period has expired. |
|
|
Term
| A Grant Deed in California always contains |
|
Definition
|
|
Term
| A person delegated in an instrument to act legally for another, in his stead, is known as which of the following? |
|
Definition
|
|
Term
| A family of three siblings, all grown, can take title as |
|
Definition
| all of these are correct. |
|
|
Term
| Barry took a listing without ever inspecting the property. A buyer saw the sign, the owner showed the buyer the property, whereupon the buyer immediately entered into an escrow with the seller. Escrow closed. Which of the following statements is correct? |
|
Definition
| Barry should have inspected the home as required by law. Barry could lose his real estate |
|
|
Term
| A buyer and seller enter into a contract to which they made a conditional delivery of all required items to the escrow company. The seller, during the escrow, asked that the deed be released so he could show it to his bookkeeper. The buyer refused. The escrow company |
|
Definition
| Could not give it to the seller. |
|
|
Term
| Which of the following would receive the most emphasis in an appraisal to place a value on a three-year old home for fire insurance purposes? |
|
Definition
|
|
Term
| Copies of all listings, deposit receipts, and trust records must be retained by a licensed real estate broker for |
|
Definition
|
|
Term
| A landlord of a commercial building and a tenant enter into a lease agreement with the rent specified at $300 per month. This type of lease is often very lengthy with many different clauses, especially if it is a commercial lease. Which of the following clauses would be LEAST likely to be found in such a contract? |
|
Definition
|
|
Term
| In the absence of any agreement respecting the length of time of the rent, the hiring is presumed to be |
|
Definition
| monthly (month to month). |
|
|
Term
| Normally a deed deposited in escrow may be delivered to the grantee |
|
Definition
| only upon the performance of all conditions of the escrow. |
|
|
Term
| An estate of indefinite duration is a/an |
|
Definition
| An estate of inheritance. |
|
|
Term
| Of the following real estate loan costs, which one need not be disclosed to consumers under the Federal Truth-in- Lending Law? |
|
Definition
|
|
Term
| An earned commission may be kept in a broker's trust fund for no more than |
|
Definition
|
|
Term
| A wife's separate property, without a will, would be distributed as follows, |
|
Definition
| one third to the surviving spouse and two thirds to the children if more than one child. |
|
|
Term
| During 1968, Congress adopted Open Housing legislation to guard against discrimination in the sale and rental of housing in this country, because of race, creed, color, religion, or national original. The federal authority charged with the responsibility of administering this legislation is the |
|
Definition
| Department of Housing and Urban Development. |
|
|
Term
| The owner-operator of a large retail store sold the building that housed his business and immediately leased back the property from the new owner on a long-term basis. Several advantages are realized by the business operator in such a lease-back arrangement. Most important of which is |
|
Definition
| increased working capital. |
|
|
Term
| To alienate title to property, one |
|
Definition
|
|
Term
| A real estate licensee was actively seeking listings by contacting owners in a non-integrated neighborhood and telling them that minorities were moving into the area and as a result, the values of homes in the area would suffer a loss in value and it was a good time to sell their property. This type of activity by the licensee would be considered |
|
Definition
|
|
Term
| Which of the following would be used to transfer a title or interest in trade fixtures when selling a business? |
|
Definition
|
|
Term
| Richards agreed to list his property for sale with Broker Jackson. In using a standard listing form, Richards completed Paragraph 10 with the following words: "Delete provisions in Paragraph 3c above which says, Agency is hereby authorized to accept on my behalf a deposit toward the purchase price in any amount." If Broker Jackson produced a buyer |
|
Definition
| If he accepts a deposit, he holds it as agent of the buyer until the offer is accepted by the seller. |
|
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Term
| Under the real estate law, certain requirements have been imposed on brokers engaged in the business of negotiating mortgage loans, including the requirements of securing a borrower's signature to a mortgage loan broker statement. The period of time during which he must keep this statement on file for inspection is |
|
Definition
| 4 years from date the instrument was signed by the borrower. |
|
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Term
| Mr. Jackson owned two acres of land. He sold one acre to Mr. Johnson but retained an easement across Mr. Johnson's acre for a road. Jackson used the road for a while and later abandoned it. Five years later he wants to reopen the roadway, but Johnson refuses to permit him to do so |
|
Definition
| the easement is valid and has not been outlawed. |
|
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Term
| The Health and Safety Code of the State of California contains a statement that opposes the practice of discrimination due to race, color, religion, national origin, or ancestry in publicly assisted housing accommodations. Property considered to be included in the term "publicly- assisted housing" would be |
|
Definition
|
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Term
| The State sales tax due on the fixtures in the sale of a business opportunity is |
|
Definition
|
|
Term
| A homestead exemption recorded after court action has been instituted is |
|
Definition
|
|
Term
| When a salesperson terminates employment with a broker, the license should be |
|
Definition
| given to the salesperson and notice be given to the Commissioner of the termination. |
|
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Term
| A seller who has owned his property for three years offers the property to a buyer that is buying with all cash. The seller is most likely to pay a prepayment penalty if he has which of the following types of loans? |
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Definition
|
|
Term
| Which of the following words are synonymous? |
|
Definition
| Construction loan - interim loan |
|
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Term
| Mr. Jones told broker Bob, "While I will not sign a listing on my home, if you can find a buyer who will pay at least $250,000 for it, I'll pay you 6% commission." Three weeks later, broker Bob found a buyer who gave him a $1,000 deposit on the purchase price of $265,000, along with a signed offer to purchase. When the offer was presented to Mr. Jones, he accepted it and then demanded that the deposit be given to him. Which of the following is true? |
|
Definition
| Once the offer is accepted, the deposit belongs to the seller without the buyer's written consent. |
|
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Term
| If a listing contract does not authorize the agent to accept deposit money on behalf of the seller, the agent accepts the money as |
|
Definition
|
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Term
| When property is being purchased and financed by a new loan through the Cal-Vet loan program, the seller will (in order to consummate the sale and have the chain of title read correctly), execute a grant deed to the |
|
Definition
| Department of Veterans Affairs. |
|
|
Term
| In the preparation of an exclusive right to sell listing contract, the following would NOT be interpreted as a date of final and complete termination |
|
Definition
| for a period of 60 days and thereafter until five days' notice of termination is given by either party. |
|
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Term
| Restrictions in a deed prohibit the use or construction that is allowed in a zoning ordinance. Which prevails? |
|
Definition
|
|
Term
| Mr. Miller lives at the bottom of a hill. During heavy rains, surface water from above almost engulfs his home. Mr. Miller dug a trench along the back of his lot and diverted the water away from his land on to a nearby vacant lot. His action was |
|
Definition
| illegal because a person may not disturb the flow of surface water and divert it on to another property. |
|
|
Term
| A veteran wanted to purchase a home for $350,000. The VA appraised the property for $342,000. The veteran could |
|
Definition
| put $8,000 down and get a $342,000 loan. |
|
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Term
| The most logical first step in land development is |
|
Definition
| an analysis of the market. |
|
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Term
| If the Federal Reserve Bank feels that there is an inflationary trend developing in the United States they can do which of the following? |
|
Definition
|
|
Term
| Which of the four major characteristics that create value would be the LEAST important? |
|
Definition
|
|
Term
| A Declaration of Homestead may not be filed on a property that |
|
Definition
| is not occupied by the declarant (or person declaring the homestead) at the time of filing. |
|
|
Term
| Which of the following would be considered a valid delivery of a deed? |
|
Definition
| The seller had handed the deed to the buyer but the buyer failed to record the deed. |
|
|
Term
| In order for a deed to be valid and convey title, the following is required |
|
Definition
|
|
Term
| The Real Estate Commissioner would most likely deny a Public Report if the subdivision plans included |
|
Definition
| the development of recreational facilities without adequate and available financing. |
|
|
Term
| The interest rate on one of the following types of financing might be changed during the term of the loan |
|
Definition
|
|
Term
| If a borrower defaults on an FHA insured loan, any losses sustained in foreclosures are made up through |
|
Definition
| a mutual mortgage insurance plan. |
|
|
Term
| Members of city and county planning commissions are |
|
Definition
| authorized to make recommendations to City Council or Board of Supervisors regarding subdivisions. |
|
|
Term
| Which of the following agencies has jurisdiction over the Interstate Land Sales Full Disclosure Act? |
|
Definition
| Department of Housing and Urban Development |
|
|
Term
| A broker who discharges a salesperson for misconduct in connection with the handling of a real estate transaction must file a certified statement of the facts in the matter with the Real Estate Commissioner |
|
Definition
|
|
Term
| Which of the following describes the conscious charging by a private lender of more than the maximum amount of interest allowed by law? |
|
Definition
|
|
Term
| The relationship between the thing desired and the potential purchaser is best defined as |
|
Definition
|
|
Term
| All of the following are FALSE concerning the transfer of property, EXCEPT |
|
Definition
| personal property is normally considered, regardless of its actual location, to be located at the residence of its owner. |
|
|
Term
| Mr. Smith, a veteran, makes an offer to purchase a property for $75,000, and gives the broker $500 cash as a deposit and to cover the closing costs of the purchase. The offer was made contingent upon his ability to obtain a VA loan for the amount of the purchase price. If the seller accepts the offer and a CRV is obtained on the property for $73,000, the buyer may |
|
Definition
|
|
Term
| Jones wanted a friend, Bill Harris, to have his property if he failed to return from a planned trip. He acknowledged a Grant Deed, naming Bill Harris as grantee, and left it in his desk. Jones' son-in-law, also named Bill Harris, found the deed and had it recorded. The legal owner would be |
|
Definition
|
|
Term
| In California, the use of an Abstract of Title has been superseded almost entirely by the |
|
Definition
| policy of title insurance. |
|
|
Term
| When calculating the budget for a real estate office, the term "Company Dollar" refers to |
|
Definition
| the income of an office after all commissions have been subtracted. |
|
|
Term
| Owner Armstrong gave Broker Weeks an exclusive authorization to sell Armstrong's ranch. As part of the agreement, Broker Weeks agreed to advertise the ranch in a catalog that Weeks publishes and distributes to other real estate brokers. For this added service, Armstrong paid Broker Weeks $1,000 at the time Owner Armstrong signed the listing. Under current real estate law, this payment |
|
Definition
| must be deposited into a trust account and disbursed only to pay advertising expenditures incurred by Broker Weeks in advertising the ranch property. |
|
|
Term
| Allen, who owns Green acres Ranch, leases the property to Taylor for a 10-year term. Allen has signed a will that stated that all his interest in Green acres Ranch would go to his friend Barnhill. Shortly after executing the lease, Allen died. During the probate proceedings, the will was held to be invalid and void. It was also discovered that Allen had no living heirs. Under these circumstances, Green acres Ranch |
|
Definition
| escheats to the state subject to the lease. |
|
|
Term
| When making the building inspection, the appraiser |
|
Definition
|
|
Term
| With which type of loan is a Certificate of Reasonable Value? |
|
Definition
|
|
Term
| The most likely term used to describe a prospective buyer when dealing with the listing broker is |
|
Definition
|
|
Term
| The seller must provide the buyer with a real estate transfer disclosure statement in which of the following transactions? |
|
Definition
| A sale of a four unit residential building |
|
|
Term
| Assume that two months after the close of escrow for the sale of property at $80,000, the seller learns for the first time that the buyers were mother and stepfather of the broker, and that an escrow for resale of the property at $95,000 had been signed before their escrow was closed. The seller files a complaint with the Real Estate Commissioner. In your opinion |
|
Definition
| the seller would sue the broker in Civil Court for the amount of profit realized on the resale of the property, and the broker is subject to disciplinary action by the Commissioner. |
|
|
Term
| Mrs. Fields held a life estate in a single-family residence. The estate was based upon her own life. She leased the residence to Mr. Fine for a five-year period, but died a few weeks after the lease began. The lease was |
|
Definition
| valid only during the life of the designated life. |
|
|
Term
| The most favorable type of lease to be entered into by the owner of an improved business property in an area that is rapidly gaining in population is a |
|
Definition
| percentage lease based on gross business done, with a minimum guaranteed rental, the lessee to pay the taxes. |
|
|
Term
| A legal term used to describe the entire parcel of real property and all structures on such property is |
|
Definition
|
|
Term
| An owner is selling a property at 238 Main Street. She would like to purchase another property and draw up an offer conditional upon the sale of her property. The clause most satisfactory to her would be |
|
Definition
| purchase is contingent upon the sale escrow on 238 Main Street closing within 20 days of the date of this offer. |
|
|
Term
| If the Government obtained a lien against a taxpayer who failed to report a certain portion of his rental income, it would be classified as |
|
Definition
|
|
Term
| Which of the following is correct with regard to an enforceable standard listing agreement that has been signed by the seller and the broker? |
|
Definition
| It requires a meeting of the minds. |
|
|
Term
| The number of square feet in a home is computed by means of |
|
Definition
| outside measurements of house and garage. |
|
|
Term
| An instrument which usually transfers possession of real property, but does not transfer ownership is a/an |
|
Definition
|
|
Term
| Under a lease for three years, if the tenant remains in possession and the owner accepts payment of rent after the expiration of the term without other agreement or notice to vacate, the lease |
|
Definition
| becomes a month-to-month tenancy. |
|
|
Term
| An appraiser in analyzing the data for his final estimate of value on a property would give least consideration to |
|
Definition
| the assessed value of the property. |
|
|
Term
| Tyson owns a store building that he leased to Crown for seven years. Crown's estate in the store building is |
|
Definition
|
|
Term
| How long does a victim have to file a complaint about discrimination with the Department of Fair Employment and Housing? |
|
Definition
|
|
Term
| Under the Civil Rights Act of 1968, Title VIII, persons complaining of discrimination in housing have the choice of which of the following remedies? |
|
Definition
|
|
Term
| A roof with four sloping sides rising to the ridge board is what type |
|
Definition
|
|
Term
| Naked legal title is held by the |
|
Definition
|
|
Term
| Which of the following expenses would NEVER be found on the Uniform Settlement Statement form issued at the closing of a RESPA covered transaction? |
|
Definition
| Finder's fee paid by a lender to a real estate broker. |
|
|
Term
| Apple grants an estate to Banana for the life of Coconut. If Banana dies while Coconut is still alive, the estate |
|
Definition
| goes to the heirs of Banana. |
|
|
Term
| A seller listed his property with a broker for $40,000. The listing said, "Seller agrees to pay the broker a 6% commission upon sale. If the buyer defaults, I will pay 1/2 of any damages I may collect, or 6% of the selling price, whichever is less." The broker found a buyer at the listed price who made an offer with a deposit of 1% that was accepted. The buyer later defaulted and forfeited his deposit. The broker would receive |
|
Definition
|
|
Term
| In the sale of a property encumbered with a Deed of Trust, who would have the most liability? |
|
Definition
| Grantor selling subject to the loan |
|
|
Term
| A tenant is justified in abandoning a leased property if the landlord demonstrates constructive eviction. Which of the following facts would be considered constructive eviction? |
|
Definition
|
|
Term
| A person holding title to real property in severalty would have |
|
Definition
|
|
Term
| Which of the following statements concerning acknowledgment is TRUE? |
|
Definition
| Deeds drawn and acknowledged out of state are valid. |
|
|
Term
| Federally chartered savings and loan associations doing business in California are regulated by |
|
Definition
| Federal Home Loan Bank Board. |
|
|
Term
| One of the benefits to the seller under a sale-leaseback transaction would be that |
|
Definition
| Future rent will be fully deductible for incomes taxes purposes. |
|
|
Term
| Which of the following can be appurtenant to the land? |
|
Definition
| Stock in a mutual water company |
|
|
Term
| The section number that is due west of section 18 is section number |
|
Definition
|
|
Term
| If a court proceeding is entered into over a commission split between two licensed real estate brokers, the brokers need not show the court a written contract between them regarding the commission split because |
|
Definition
| this type of agreement is not covered under the Statute of Frauds. |
|
|
Term
| A new well and pump were installed on a vacant parcel of land. For assessment purposes, the tax assessor would consider these as |
|
Definition
|
|
Term
| A seller wanting to relieve himself of the primary liability for payment of a Trust Deed and note must find a buyer who is willing to |
|
Definition
| assume the Trust Deed and note liability. |
|
|
Term
| If a person buys property in a California land project and then changes his mind, he can obtain a refund of his money without a specific reason within how long? |
|
Definition
|
|
Term
| The main purpose of the Real Estate Settlement Procedures Act is to |
|
Definition
| to provide consumers with enough information to enable them to shop for settlement services. |
|
|
Term
| In the event of a sale of a retail business, it is necessary to pay state sales tax on |
|
Definition
| furniture and fixtures sold. |
|
|
Term
| A licensed real estate salesperson is handling a transaction where there is an assignment of real property sales contract. He must see that this is recorded within |
|
Definition
|
|
Term
| In the sale of residential real estate the terms and conditions of the sale would usually affect the property’s |
|
Definition
|
|
Term
| In the appraising process, the term "highest and best use" often comes into play. This can best be defined as |
|
Definition
| producing the greatest net return on the investment over a period of time. |
|
|
Term
| Where there are local minimum building code requirements, builders must |
|
Definition
| comply with the more stringent of the local, state, or federal laws. |
|
|
Term
| An owner of real property allows you the right to enter onto their property, but only as long as they wish to do so. This is known as |
|
Definition
|
|
Term
| Every lease contains an implied covenant of "quiet enjoyment and possession." This covenant directly relates to |
|
Definition
| tenant's possession free of disturbance by the landlord or another who has paramount title. |
|
|
Term
| Whenever a broker is authorized to negotiate for the sale of property |
|
Definition
| if he accepts a deposit from a buyer without being authorized to do so by the seller, he becomes the agent of the buyer for the purpose of holding the deposit. |
|
|
Term
| Under a Land Contract or Agreement of Sale |
|
Definition
| seller retains title and may use it as security for a mortgage or trust deed loan to the extent of his equity. |
|
|
Term
| Broker Smith secured a listing on an older-type dwelling converted to income units. Smith found a prospective purchaser, Mrs. Doe, who expressed great interest in the property. Mrs. Doe is concerned as to whether or not officials might approach her, after purchase, with demands for certain alterations or structural requirements, causing large monetary outlay. The agency that should be contacted to secure reassurance on this point is |
|
Definition
| Local Building Department. |
|
|
Term
| The broker who most likely has earned a commission is the one who has |
|
Definition
| communicated acceptance to offeror. |
|
|
Term
| Which of the following is the least desirable feature to an investor who is interested in leverage? |
|
Definition
| Low interest, short term financing |
|
|
Term
| Which of the following are ways by which a landlord can evict a delinquent tenant? |
|
Definition
|
|
Term
| As regards the Real Estate Settlements Procedures Act (RESPA) |
|
Definition
| all of the above are correct statements. |
|
|
Term
| The income from real property that is discovered by an examination of properties in an area where the appraiser has determined highest and best use would be |
|
Definition
|
|
Term
| An increase in unemployment within a city has caused an overall reduction of income of the residents. As a result of these conditions, homes in the area are decreasing in value. This decrease in value is referred to as |
|
Definition
|
|
Term
| Quite often the Real Estate Commissioner is concerned with compaction when approving a subdivision for sale. This would refer to |
|
Definition
|
|
Term
| When a legal description begins with the phrase, "Beginning at a point on the northerly edge of M Street 100 feet easterly of the NE corner of the intersection of M and Seventh Streets, and running thence....," which of the following methods of land description is being used? |
|
Definition
|
|
Term
| After Mrs. Gardner purchased her home, she discovered by survey that her neighbor's fence was three feet over her newly acquired property. For remedy, if a friendly settlement cannot be made, she should bring civil suit against |
|
Definition
| her neighbor, for removal of the encroachment on the grounds of trespass. |
|
|
Term
|
Definition
| can be terminated with a merger of the dominant and servient tenement. |
|
|
Term
| Upon payment of a fee, certified copies of inspection reports issued by any licensed structural pest control operator may be obtained from the Structural Pest Control Board by |
|
Definition
|
|
Term
| Many items are subject to proration in the real property sale escrow. Buyers and sellers using escrow normally agree to a proration of which of the following? |
|
Definition
|
|
Term
| The Mortgage Loan Disclosure Statement must contain all of the following EXCEPT |
|
Definition
| a credit rating on the borrower. |
|
|
Term
| A listing contract usually authorizes a broker to |
|
Definition
| find a purchaser and accept a deposit with an offer to purchase. |
|
|
Term
| When a veteran purchases property under the Cal-Vet Program, the title to the property is in the name of the |
|
Definition
| Department of Veterans Affairs. |
|
|
Term
| The chief function of "Ginnie Mae" is to guarantee |
|
Definition
| payment on securities sold by "Fannie Mae." |
|
|
Term
| All of the following are included in the bundle of legal rights EXCEPT |
|
Definition
|
|
Term
|
Definition
| personal property/fructus industriales |
|
|
Term
| Nonhomogeneity describes a/an |
|
Definition
| physical characteristic of real estate and refers to uniqueness of the property. |
|
|
Term
| A transaction broker is NOT known as a/an |
|
Definition
|
|
Term
| A real estate licensee who has listed a property is a/an |
|
Definition
| general agent of the broker and a special agent to the seller. |
|
|
Term
| The total commission paid a brokerage firm was $33,500. The firm was paid 7% on the first $200,000, 6% on the next $200,000 and 5% on the remainder. What was the sales price of the property? |
|
Definition
|
|
Term
| Agent Carrie received $937.50 as commission for a referral fee. The listing agent paid 25% of her commission for the referral. The total commission paid was 6%, which was split equally between the listing and selling brokerage firms. If the listing agent was paid 50% of her firm’s commission. What was the sale price of the property? |
|
Definition
|
|
Term
| Negligent misrepresentation occurs when |
|
Definition
| a broker should have known that a statement about a material fact was false. |
|
|
Term
| Buyers met an agent at an open house. In order to buy the listed property, the buyers needed to sell their house. The agent wrote an offer to purchase with the following terms. "Purchasers shall list purchaser's property at 567 Main Street, Your Town, Your State with XYZ Realty within 24 hours of the acceptance of this offer, or this offer shall become null and void and the earnest money shall be refunded to the purchaser." Is this legal? |
|
Definition
| No, it is a violation of the Sherman Antitrust Act. |
|
|
Term
| In most states which of the following situations would MOST LIKELY be grounds for suspension or revocation of a real estate license? |
|
Definition
| Failure to specify a definite termination date in a listing contract |
|
|
Term
| A person died testate. After an extensive search, no additional heirs were found. The person's real property would transfer by |
|
Definition
|
|
Term
| Which of the following would be future interests in a fee simple defeasible estate? |
|
Definition
| Possibility of Reverter/Right of Re-Entry |
|
|
Term
| Agnes, Zelma and Jayne are sisters and own a property as joint tenants. Jayne sold her share to Maggie. Upon closing, Maggie is a |
|
Definition
| tenant in common with Agnes and Zelma. |
|
|
Term
| If state law permits, the unities of time, title, interest, possession and person would be created when |
|
Definition
| Mr. and Mrs. Jones buy real estate. |
|
|
Term
| When Branham brought his property he had a 20% down payment and secured a 30 year loan at 7% interest. If his first month’s interest was $787.50, how much did he pay for the property? |
|
Definition
|
|
Term
| The S1/2 of the NE1/4 and the NW1/4 of the SE1/4 would contain |
|
Definition
|
|
Term
| In 1969 Carmel purchased a condo for $15,000. Today she sold the property for $85,000 and agreed to finance the loan for the buyer. This transaction is known as a/an |
|
Definition
|
|
Term
| A lot that measures 475' x 525' sold for $275,000. What was the cost per front foot? |
|
Definition
|
|
Term
| A lot that measures 475' x 525' sold for $275,000. What was the cost per acre? |
|
Definition
|
|
Term
| The market value of a property is$140,000. The owners pay $144.375 in monthly property taxes, or $2.75 per $100. What is the assessment rate? |
|
Definition
|
|
Term
| Two bros. ownd a property & decided 2 list it w/ Agent Tejasi. 30 mins b4 the listing apt., one of the bros. was called out of town on an emergency. So, a friend signed the listing contract for him. Tejasi had no idea that the person signing was not the owner. The status of the listing contract is |
|
Definition
|
|
Term
| A habendum clause would be found in a/an |
|
Definition
|
|
Term
| The borrowers negotiated a $125,000 for 20 years at 7% interest. Their monthly principal and interest payment is $969.12. How much interest will the buyers pay of the life of the loan? |
|
Definition
|
|
Term
| An agent received a thank you note from a lender for the referral of a buyer. The note included a $35 gift card to a local restaurant. The law that makes this kickback illegal is |
|
Definition
|
|
Term
| The sale price of the property is $150,000 and borrower has a 20% down payment. The mortgage rate chart indicates that the monthly payment on a 30 year loan at 4% is 4.775 per $1,000. How much is the monthly payment? |
|
Definition
|
|
Term
| An appraiser is going to estimate the market value of a library. Which appraisal method will he/she most likely use? |
|
Definition
|
|
Term
| All of the following advertisements would be illegal EXCEPT the ad which reads, |
|
Definition
| "This house has a wheelchair ramp." |
|
|
Term
| An agent listed a property that was built in 1951. By federal law, the agent must have the sellers fill out |
|
Definition
| lead-based paint disclosure form |
|
|
Term
| The seller accepted the buyer's offer of $375,000 and the buyer had a 10% down payment. If the property appraised at $373,000, what was the loan amount? |
|
Definition
|
|
Term
| Henry is securing a home equity line of credit on his residence. His property appraised at $175,000 and he has a loan balance of $80,000. The lender will negotiate a loan of 80% of the appraised value, minus the first loan. Harry's line of credit will be |
|
Definition
|
|
Term
| The condensed history of the recorded ownership of a particular parcel of real estate, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property and a certification by the abstractor that the history is complete and accurate |
|
Definition
|
|
Term
| The clause in a mortgage or deed of trust that can be enforce to make the entire debt due immediately if the borrower defaults on an installment payment or other obligation |
|
Definition
|
|
Term
| A formal declaration made before a duly authorized officer, usually a notary public, by a person who has signed a document |
|
Definition
|
|
Term
| Computer systems that permit lenders to expedite the loan process and reduce lending costs |
|
Definition
|
|
Term
| An article installed by a tenant under the terms of a lease that is removable by the tenant before the lease expires |
|
Definition
|
|
Term
| One who authorized by a principle to perform a single act of transaction |
|
Definition
|
|
Term
| A conveyance that transfers whatever interest the grantor has in the specified real estate, without warranties or obligations |
|
Definition
|
|
Term
| A real estate loan used to finance the purchase of both real property and personal property, such as in the purchase of a new home that includes carpeting, window covering, and major appliances |
|
Definition
|
|
Term
| A lease, commonly used for commercial property, whose rental is based on the tenant’s gross sales at the premise, it usually stipulates a base monthly rental plus a percentage of any gross sall above a certain amount |
|
Definition
|
|
Term
| The government’s right to impose laws, statutes, and ordinances, including zoning ordinances and building codes, to protect the public health, safety and welfare |
|
Definition
|
|
Term
| What type of waters are controlled by riparian owners and may not be used by the general public? |
|
Definition
|
|
Term
| At times, the action of a local, state or federal governmental entity goes so far that it greatly diminishes or takes away the value of a person’s property. Such a situation is catered to by the |
|
Definition
|
|
Term
|
Definition
| Transferable Development Rights |
|
|
Term
| In which type of qualified fee estate does the ownership not pass from one person to another until a particular condition is met? |
|
Definition
| Fee simple condition precedent |
|
|
