CHAPTER 4 -- PRACTICE OF REAL ESTATE Flashcards Preview

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Flashcards in CHAPTER 4 -- PRACTICE OF REAL ESTATE Deck (138)
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60

A property management agreement usually arranges for payment of compensation as follows:

(A) a salary plus a percentage of the net income; (B) flat fee plus a percentage of the gross income; (C) out-of-pocket expenses plus a percent of the gross income; (D) paid only on duties perfromed.

(B) flat fee plus a percentage of the gross income

61

What four things must occur for a mobile home to become real property?

1. Obtain a building permit
2. Attach the mobile home to an approved foundation
3. Record a document reflecting it has been affixed to the foundation
4. Obtain a certificate of occupancy

62

What is the document used to transfer/encumber a registered mobile home?

Certificate of title

63

After the sale of a mobile home, what must the real estate broker do?

Must give written notice of the transfer to the Department of Housing and Community Development no later than 10 CALENDAR DAYS after the sale.

64

Mr. Longing purchased a new mobilehome from a dealer tow months ago. It is now located n a mobilehome park. Broker Smith took a listing to sell it. Which of the following is true?

(A) Broker Smith cannot sell it, becuase the land is not being sold with it; (B) Broker Smith cannot sell it, because it has not been registered with the Department of Housing and Community Development for a period of more than one year; (C) Broker Smith can arrange a sale of the mobilehome and a sublease of the land; (D) Broker Smith cannot handle the sale of a mobilehome unless it is new.

(C) Broker Smith can arrange a sale of the mobilehome and a sublease of the land

65

If a mobilehome which is not attached to a permanent foundation is sold, the document which would be used to transfer title is:

(A) a grant deed; (B) a certificate of title; (C) a contract of sale; (D) a mobilehome deed.

(B) a certificate of title

66

When a real estate licensee handles the sale of a registered mobilehome, the agent must give written notice to the Department of Housing and Community Development within how many days?

(A) three calendar days; (B) five business days; (C) ten calendar days; (D) ten business days.

(C) ten calendar days

67

Are business opportunities real or personal property?

Personal property

68

What is the document used to transfer title in a business opportunity?

Bill of sale

69

What should a buyer of a business opportunity request during escrow?

A "certificate of clearance" from the State Board of Equalization proving the seller has remitted the sales tax.

70

What is the basis of fair housing laws throughout the U.S.?

The Thirteenth Amendment (1968)

71

The buyer of a buisiness opportunity should get a clearance from which of the following agencies in order to avoid "successor's liability?"

(A) Secretary of State's Office; (B) State Board of Equalization; (C) Alcoholic Beverage Control Board; (D) Department of Real Estate.

(B) State Board of Equalization

72

Bob agreed to purchase a business from Joe. Under the terms of their agreement, Bob will have the right to offer, and distribute, goods or services under Joe's marketing plan. This agreement between Bob and Joe may best be described as:

(A) a franchise agreement; (B) a property securities transaction; (C) a business opportunity agreement; (D) a personal securities investment.

(A) a franchise agreement

73

In what year did the U.S. Supreme Court uphold anti-discrimination laws related to fair housing and upon which amendment to the United States Constitution did they base their decisions?

(A) 1968 and the Fifth Amendment; (B) 1988 and the First Amendment; (C) 1968 and the Thirteenth Amendment; (D) 1868 and the First Amendment.

(C) 1968 and the Thirteenth Amendment

74

How long does anyone have to file a complaint under Title VIII of the Civil Rights Act of 1968?

1 year

75

What is the Rumford Act?

Prohibits discrimination in supplying housing accommodations based on race, color, religion, sex, marital status, national origin, ancestry, age, familial status, or disability.

76

What is the name of the state agency created under the Rumford act to enforce fair housing laws on the state level?

The Department Of Fair Employment and Housing.

77

How long does someone have to file a complaint on the state level after having been the victim of discrimination?

1 year

78

Under Federal Fair Housing Law (Title VIII of the Civil Rights Act of 1968), persons who are the victim discrimination in housing are permitted to file:

(A) a complaint with HUD; (B) a lawsuit in state or local courts; (C) a lawsuit in federal courts; (D) any of the above.

(D) any of the above

79

The enforcement of anti-discrimination law in housing accommodations in California, on the basis of race, religion, color, sex, national origin, or ancestry, is the responsibility of the:

(A) Department of Fair Employment and Housing; (B) Real Estate Commissioner; (C) Division of Fair Housing; (D) Department of Corporations.

(A) Department of Fair Employment and Housing

80

"Housing accommodations" as defined in the Fair Employment and Housing Act is improved or unimproved real property used or intended to be used as a residence by the owner and which consists of not more than:

(A) one dwelling unit; (B) three dwelling units; (C) four dwelling units; (D) ten dwelling units.

(C) four dwelling units

81

What made discrimination in LENDING practices illegal?

The Holden act (Housing Financial Discrimination Act)

82

What is it called when higher interest rates are charged or not approving loans in neighborhoods based upon suspect characteristics, such as race, color, age, national origin?

Redlining

83

What is the California state law prohibiting discrimination by businesses?

The Unruh Civil Rights Act

84

What is it called when a minority buyer is shown only homes in a segregated area?

Steering

85

A savings bank charges a 1/8% higher interest rate on loans to non-English speaking borrowers. This fee is:

(A) permitted if the fee is included in the finance charge required to be disclosed under the Federal Truth in Lending Law; (B) in violation of the Holden Act; (C) not in violation of the Housing Financial Discrimination Act; (D) prohibited by the statute of frauds.

(B) in violation of the Holden Act

86

Discrimination in housing transactions based upon race, religion, color, marital status, national origin or sex of the buyer, seller, landlord, tenant and or neighborhood, is:

(A) unenforceable; (B) contrary to public policy; (C) illegal; (D) all of the above.

(D) all of the above

87

The owner of a 10 unit apartment building ran the following classified ad in the newspaper: "Charming two bedroom apartment unit for rent. Married couples preferred." Is this a violation of fair housing laws?

(A) no, because he used the word "preferred" instead of "only;" (B) no, because there are no fair housing restrictions on advertising rental units; (C) yes, this ad would indicate illegal discrimination, based upon marital status; (D) no, because he has advertised like this in the past and has had no complaints so far.

(C) yes, this ad would indicate illegal discrimination, based upon marital status

88

Is a TDS required if the seller is selling their own home as a "For Sale By Owner"

Yes, it is required.

89

A real estate agent working in an Hispanic neighborhood informed the residents they should move because Asians were moving into the area. All of the following are correct statements, EXCEPT:

(A) this conduct is panic selling; (B) this conduct is blockbusting; (C) this conduct is legal, but unethical; (D) this conduct is illegal.

(C) this conduct is legal, but unethical