Question Set 1

Question 1

As used in real estate practices, the land of a riparian owner borders on:
A. 	A river;
B. 	A stream;
C. 	A watercourse;
D. 	Any of the above.

Answer 1

D. Any of the above

Question 2

When the government has granted permission to a nonriparian owner of a ranch to use a near-by lake, the owner has received this right by:
A. 	Eminent domain;
B. 	Prescription;
C. 	Appropriation;
D. 	Percolation.

Answer 2

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Question 3

A lender paid a 3% commission to an agent in a real estate transaction. This must be revealed to:
A. 	The buyer only;
B. 	The seller only;
C. 	Both the buyer and seller;
D. 	Neither the buyer nor seller.

Answer 3

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Question 4

Title to personal property is transferred with a bill of sale. A valid bill of sale must:
A. 	Be dated;
B. 	Contain an acknowledgment;
C. 	Have the seller's signature;
D. 	Be verified and recorded.

Answer 4

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Question 5

Legally and technically, property is defined as:
A. That which is capable of involuntary transfer;
B. Things with buyers or sellers;
C. Rights or interests which a person has in a thing owned;
D. Only personal property.

Answer 5

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Question 6

All property is either real property or personal property. Which of the following would normally be considered real property?
A. Natural growing vegetation;
B. Trade fixtures;
C. Lumber in a lumber yard;
D. Crops which have been sold prior to harvest.

Answer 6

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Question 7

Buyer Baker bought a farm. At the time of the purchase, the seller Sampson was growing corn on the north 40 acres of the farm. Sampson intended to harvest the corn before the close of escrow, but never got around to it. No mention was made of the corn in the sales agreement and/or escrow instructions. Escrow has now closed, Buyer Baker is in possession and it is time to harvest the corn. Who gets to harvest the corn?
A. The buyer would have the right to harvest the corn because he always intended to do so;
B. The buyer would get to harvest the corn because it goes with the land and is considered real property.
C. The buyer would get to harvest the corn because of his equity in the corn;
D. The seller would get to harvest the corn because the corn is his personal property and was not mentioned in the sales agreement.

Answer 7

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Question 8

When calculating the Consumer Price Index (CPI), housing expenses is one of the largest denominators because
A. CPI is based upon all consumer purchases;
B. More people buy homes than buy businesses;
C. Housing impacts economy;
D. Housing is one of the largest expenses for consumers.

Answer 8

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Question 9

Which of the following is an example of a freehold estate?
A. The interested created by a trust deed;
B. An estate at will;
C. A life estate;
D. A leasehold estate.

Answer 9

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Question 10

Which of the following appraisal reports would be (is) the most comprehensive and complete?
A. 	Narrative report;
B. 	Abbreviated report;
C. 	Letter form report;
D. 	Short form report.

Answer 10

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Question 11

When a judgment has been recorded, it provides:
A. 	Voidable notice;
B. 	Constructive notice;
C. 	Actual notice;
D. 	Contingent notice.

Answer 11

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Question 12

A seller is required to deliver the Homeowner's Guide to Earthquake Safety to the buyer of any one-to-four unit residential properties built prior to:
A. 	1952
B. 	1960
C. 	1960
D. 	1975

Answer 12

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Question 13

Gross leases are most often used with:
A. 	Residential property;
B. 	Retail space;
C. 	Office space;
D. 	Shopping malls.

Answer 13

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Question 14

A home sold for $90,750. The buyer assumed an existing $30,000 trust deed and paid cash for the balance of the purchase price. If the documentary transfer tax rate is $.55 per $500 of consideration, what was the documentary transfer tax?
A. 	$33.00
B. 	$66.83
C. 	$67.10
D. 	$100.10

Answer 14

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Question 15

When a tenant voluntarily moves out of his apartment with the intention to never return, it would be described as:
A. 	Abandonment;
B. 	Notice to quit;
C. 	Eviction;
D. 	Adverse possession.

Answer 15

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Question 16

16.  Broker Jones represented a young man in the sale of his home. Broker Jones did not considered the age of the young man when he listed and sold the home. After the grant deed had been signed and delivered into escrow, the title company discovered the young man who signed the deed was not yet 18 years old and was not emancipated. The grant deed would be:
A. 	Illegal;
B. 	Void;
C. 	Binding;
D. 	Valid.

Answer 16

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Question 17

Who signs the promissory note and mortgage?
A. 	Mortgagor;
B. 	Mortgagee;
C. 	Lender;
D. 	Beneficiary.

Answer 17

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Question 18

A contractor obtains a construction loan, and the loan funds are to be released in a series of progress payments. Most lenders disburse the last payment when the:
A. Building is completed;
B. Notice of completion is filed;
C. Buyer approves the construction;
D. Period to file a mechanic’s lien has expired.

Answer 18

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Question 19

Each of the following elements must be established to obtain an easement by prescription, except:
A. Use of the property which is hostile and adverse to the true owner;
B. Existence of a claim of right or color of title;
C. Open and notorious use which is continuous and uninterrupted for a period of five years;
D. A confrontation with the true owner.

Answer 19

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Question 20

The ultimate test of functional utility is:
A. 	Maintenance costs;
B. 	Design;
C. 	Utility costs;
D. 	Marketability.

Answer 20

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Question 21

21. Private restrictions on the use of land may be created by:
    A. Private land use controls;
    B. Written agreement;
    C. A developer’s general plan restrictions a subdivision;
    D. All of the above.

Answer 21

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Question 22

The owner of land owns riparian rights to water on, under, or adjacent to the land in which of the following?
A. 	Oceans and bays;
B. 	Rivers or streams;
C. 	Underground caves with water;
D. 	All of the above.

Answer 22

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Question 23

Government land use, planning and zoning laws are important examples of:
A. 	Exercise of eminent domain;
B. 	Use of police power;
C. 	Deed restrictions;
D. 	Escheatment.

Answer 23

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