Brokers Exam

Question 1

The Trustor to Beneficiary is not a fiduciary relationship but merely that of borrower & lender. T or F

Answer 1

True

Question 2

Trustor is also known as what?

Answer 2

Borrower

Question 3

Beneficiary is also known as what?

Answer 3

mortgagor/lender

Question 4

Who would be associated w/an unlawful detainer

Answer 4

Lessor/Landlord

Question 5

What is held by the beneficiary as PRIME security for the loan?

Answer 5

The trustdeed

Question 6

Promissory note is security for what?

Answer 6

Nothing

Question 7

Recording a deed presumes delivery

Answer 7

True

Question 8

Ad Valorem most nearly means

Answer 8

According to Value

Question 9

An interest only promissory note is known as:

Answer 9

A Straight Note

Question 10

Apt Building: income tax purposes the only method of deprection available since 1987

Answer 10

Straightline

Question 11

If a salesperson leaves commissioner must be notified in writing

Answer 11

Immediately

Question 12

min period of time over which an owner can depreciate the improvements is

Answer 12

39 years

Question 13

Who approves the account for which funds for a sale of a land contract subject to a blanket encumbrance, containing a release clause

Answer 13

Vendee (purchaser)

Question 14

a real estate licensee under federal law should not take restrictive listings or advertise dwellings which suggest discrimination because of what act?

Answer 14

Title VIII of the Civil Rights Act of 1968 (fair housing)

Question 15

What is the purpose of a building code?

Answer 15

to provide minimum construction requirements

Question 16

Businesses are preluded from discrimination against customers because of what act?

Answer 16

Unruh Civil Rights. Since a real estate office is a business, the broker cannot discriminate

Question 17

The nominal rate granting a loan is:

Answer 17

the rate of interest specified in the promissory note

Question 18

Financing statements are filed with

Answer 18

The Secretary of State

Question 19

To evict a delinquent tenant, the landlord must:

Answer 19

bring a court action

Question 20

Mr. Franklin was given real property for the term of his natural life what type of an estate would Mr. Franklin have?

Answer 20

a fee simple estate

Question 21

What is the receiver of title called?

Answer 21

grantee

Question 22

An option to buy real estate becomes a mutually binding contract when:

Answer 22

the optionee exercises the right to purchase

Question 23

20-unit apt house, you live there and manage all 20 units, you are known as what?

Answer 23

a resident property manager

Question 24

which has the highest depreciation out of the following properties: Industrial
commercial
apartment building
agricultural
if all are valued at the same 100K?

Answer 24

an apartment building

Question 25

the lowest percentage lease out of the following: chain of grocery stores parking lot dept store hardware store

Answer 25

Chain of grocery stores | because the higher the gross volume, the lower the % lease & Vs. Vrs

Question 26

The real estate commissioner has the power to create, amend, or repeal real estate laws when the interest of the public welfare in.....

Answer 26

California Real Estate Law

Question 27

In the foreclosure process, if selling under the power of sale clause, the trustee must wait 3 months before doing what?

Answer 27

Publishing a notice of intention to sell the property

Question 28

An easement can be obtained by prescription, is most nearly like what?

Answer 28

adverse possession

Question 29

Who usually pays the discount points for an fha loan? the buyer or the seller?

Answer 29

Both, either can pay the discount points

Question 30

in a land contract, the seller would not iniate a legal action based on upon:

Answer 30

an agreement not to record

Question 31

in a listing "the undersigned broker agrees to use diligence in procuring a buyer" it make the contract what?

Answer 31

makes it a bilateral contract

Question 32

Assemblage is not what?

Answer 32

a method of depreciation

Question 33

name 3 methods of depreciation

Answer 33

straightline 150% declining balance 200% declining balance

Question 34

what is the typical of height of a residential ceiling in a sfr?

Answer 34

96 inches/8ft

Question 35

funds received on behalf of someone else are called:

Answer 35

trust funds

Question 36

Sub-divider must always compy w the real estate comm. regulation regardless of how many units? T of F

Answer 36

true

Question 37

Documentary Transfer Tax =

Answer 37

``` 1.10 p/$1000 ie 125,000 sale price - 75,000 took over seller balance __________ = 50,000 / 1000 x 1.10=$55.00 $55.00 is the total doc trans tax due on this transaction ```

Question 38

What is regression?

Answer 38

when you lose value because you over improved something

Question 39

An alienation clause is a type of acceleration clause. t or f

Answer 39

true | ie: "a provision that the note become due and payable in the the event the property is sold, conveyed or alienated".

Question 40

most real estate syndicates are known as:

Answer 40

limited partnerships

Question 41

if a sub-divider grants an easement to a utility company, the utility company holds what:

Answer 41

an easement in gross

Question 42

a recorded deed is presumed delivered and accepted. t or f

Answer 42

true

Question 43

What is the principle sum if the annual interest rate is 8% & the monthly interest payment is $60

Answer 43

60x12= 720 | 720/8%=$9,000 is the principle sum

Question 44

a listing would most likely be

Answer 44

high market value

Question 45

a commission split describes

Answer 45

the division of the total commission that comes to a brokerage between the broker & salesperson

Question 46

When does a judgement become a judgment lien?

Answer 46

When the abstract of judgement is recorded

Question 47

a landlord is advised that a railroad company plans to cross his property with a railroad line. If the landowner refuses, the railroad company can proceed by the use of:

Answer 47

eminent domain

Question 48

what is held by the beneficiary as prime security for the loan?

Answer 48

the trust deed

Question 49

a recorded deed to presumed delivered & accepted. t or f

Answer 49

true

Question 50

When damages are not adequate a broker can request specific performance from the principal. t or f

Answer 50

false- a broker cannot request specific performance from a principle when damages are not adequate

Question 51

a property manager

Answer 51

may not gain any advantage over the property owner

Question 52

mortgagee is

Answer 52

the person who loans money secured by a mortgage on a parcel of property

Question 53

income approach

Answer 53

1. requires the determination of net income before interest & amortization but after deduction of operating expenses 2. an appropriate capitalization rate must be determined 3. it is not applicable to owner-occupied homes because benefits of amenities are difficult to measure in terms of dollars

Question 54

4-3-2-1 refers to:

Answer 54

appraising vacant land where the lots vary in depth

Question 55

An agency relationship is said to create a fiduciary relationship between principle and agent. Give 2 examples relationships that would illustrate fiduciary responsibility?

Answer 55

1. any trustee to beneficiary | 2. real estate broker to his client