exam 4 questions Flashcards
(137 cards)
1
Q
When an owner of real property is called a riparian owner, the land in question would border:
A
A river;
A watercourse;
A flowing stream;
2
Q
A buyer defaulted on a real property installment sales contract that had been recorded by the seller. If a quitclaim deed were to be used to extinguish the cloud on the title, it must be executed by:
A
Buyer only;
3
Q
The Commissioner’s Final Public Report on a residential development would include all of the following except:
A
Assurances that the developer is not charging an excessive price for the properties;
4
Q
“The personal, revocable, and unassignable permission of authority to do one or more acts on the land of another without possessing any interest therein,” is the definition of:
A
A license;
5
Q
Real property includes
A
land, that which is attached to it (physically or legally) and appurtenances (including easements).
6
Q
If an advertisement is placed in a newspaper advertising a house for sale, and only the annual percentage rate is stated:
A
Additional disclosures are not required.
7
Q
The federal right to cancel notice must be given to a borrower by the agent if:
A
The borrower’s residence is the security for the loan;
8
Q
What type of an appraisal license is required to appraise a commercial strip mall valued at $500,000:
A
Certified general license;
9
Q
The words “time, title, interest, and possession” are most closely related to which of the following concepts:
A
Survivorship;
10
Q
In which of the following ways are joint tenancy and community property interests in real property similar:
A
Ownership interests are equal.
11
Q
The right to use, possess, enjoy, transfer, and dispose of a thing to the exclusion of all others most accurately describes:
A
Ownership;
12
Q
According to the Truth-in-Lending Act, consumers must be informed of credit terms by:
A
The lender;
13
Q
Which of the following would not terminate an offer to purchase real property:
A
The offeror communicates a notice of revocation after the offeree properly posts notice of acceptance.
14
Q
In which of the following ways is the Federal Housing Administration different from conventional lending institutions:
A
FHA is a mortgage insurer rather than a lender;
15
Q
The John T. Young Corporation owns a lot located in the direct path of the city’s projected airport extension. When approached through its board of directors, the corporation refuses to sell. To gain title to the property, the city will probably exercise its:
A
Right of eminent domain;
16
Q
Where in a standard narrative appraisal report would one likely find the type of value being estimated:
A
The statement of purpose;
17
Q
The effective delivery of a deed, under the law, depends upon:
A
The intention of grantor;
18
Q
The recording of an instrument gives:
A
Constructive notice;
19
Q
A mortgage loan may be insured by:
A
FHA or a private mortgage insurer;
20
Q
When an escrow agent holds the buyer’s deposit money because of a dispute between the buyer and seller, the escrow agent can release the funds in which of the following circumstances:
A
In any of the above circumstances.
21
Q
The right granted by an owner of real property to a telephone company for the purpose of erecting poles to support telephone wires over the property creates:
A
An encumbrance;
22
Q
Which of the following is not a lien:
A
An encroachment;
23
Q
Under California law, a trust deed:
A
Encumbers the real property designated in the deed of trust;
24
Q
Different vestings have both
A
legal and tax consequences, and might be discriminatory as to gender.
25
When financing a home with a long-term loan, if equal payments are made, the amount of each payment applied to the principal will:
Increase while the interest payment decreases;
26
All of the following statements concerning deed restrictions are false, except:
A violation of a condition can result in a forfeiture of the title to the real property;
27
Which of the following would not be an essential element for a prescriptive easement:
Payment of taxes and assessments for a period of five years;
28
The broker's commission can be anything of
value, if agreed to by the parties.
29
When a lender speaks of "discounting," the lender is probably referring to:
The loan proceeds disbursed by the lender are less than the face value of the note.
30
According to generally accepted practices, an escrow agent is authorized to:
Call for funding of the buyer's loan;
31
A trustee has legally begun the process to sell property secured by a trust deed. After the notice of default is recorded, the trustee must wait at least three months before:
Publishing the notice of sale;
32
A homeowner failed to make payments on his trust deed loan for two successive months and a notice of default has been recorded. He has
Rights of reinstatement;
33
When a trust deed is sold, the parties often use an escrow in order to:
Make sure that the conditions and terms are met prior to the closing of the transaction;
34
A release clause in a mortgage:
Allows portions of the property, given as security, to be released from the mortgage lien upon performance of a specified act.
35
Title to parks, playgrounds, and public buildings owned by the city is held:
In severalty;
36
The clause in a junior lien which permits a first lien to be refinanced without suffering a loss in priority is called:
Subordination clause.
37
Which of the following would be considered the primary purpose of RESPA:
To require that disclosures be made by lenders that make loans on one-to-four unit dwellings.
38
A carpenter installed hardwood floors in a new home. The owner later refused to pay him. A mechanic's lien action filed by the carpenter would revert back to the date of:
The commencement of the house;
39
The customary procedure used to enforce private property restrictions on real property is:
An injunction;
40
When title is transferred, the grantee in the deed may have the title insured by a: Title insurance policy;
Title insurance policy;
41
A history of conveyances and encumbrances affecting title to real property is known as a:
Chain of title;
42
If a contract for the purchase of real estate is to be enforceable, the consideration must be sufficient relative to value in order to enforce a suit for:
Specific performance;
43
When a licensee is the buyer's agent, the licensee will tell others:
As soon as possible;
44
"Turnkey projects" are:
Construction projects that are ready for occupancy;
45
What is the best way to create an agency relationship:
By written agreement;
46
Van Holden borrowed money from Robertson and gave the lender a trust deed on 6 separate parcels of previously unencumbered real property that he owned. In such a circumstance, the trust deed would be regarded as:
A blanket deed of trust.
47
Commingle has a meaning most completely opposite to:
Segregate
48
When an owner refuses to pay the broker an earned commission, the broker may properly seek relief by:
Bringing a court action;
49
In which of the following ways could an agency relationship not be created?
Voluntary offer by the agent.
50
A dual agency is legal if:
The buyer and seller consent to it;
51
The buyer's earnest money deposit may be:
A deposit on real property may be anything of value.
52
A real estate broker negotiated a loan for a homeowner who gave the lender a promissory note and a second trust deed for $4,600. Which of the following would most likely be used by the broker in the transaction:
Broker's loan statement;
53
Among the grounds for denial, suspension, or revocation of licenses is the practice of discrimination. Discrimination includes: I. Blockbusting; II. Hiring sales personnel only from a specific ethnic group.
Both I and II;
54
When a broker has two offers on the same property, both from salespeople within his office, and both with a deposit, he is placed in a dilemma. He decides not to present the second offer until the first offer has been accepted or rejected by the seller. The seller is not informed of the second offer. The broker's action is:
Not permissible.
55
The bank account used by a broker to hold his clients' trust deposits must be properly set up in the name of:
The broker, as trustee;
55
A negative declaration is not some form of consent from
0wners of nearby properties.
56
"Depression, expansion, prosperity, and recession" are all terms related to which of the following types of cycles:
Business
57
Capital turnover in real estate investments:
Is slower than the average commodity;
58
Which of the following creates an encumbrance on real property:
A lease;
59
Which of the following would be a fiduciary duty of the agent of the buyer according to the law of agency in the civil code:
Acting with the utmost care, integrity, loyalty and honesty when dealing with the buyer;
60
As a general rule, when residences are being sold, the buyer or lender requires a termite inspection. A good strategy for the seller is to have the termite report issued at which of the following times:
Before putting the property on the market;
61
Most junior loans that are negotiated today are secured from
Private lenders;
62
The interest on the loan is not part of the
impound account.
63
When considering VA loans, the unique feature about down payments which are required is:
There is no down payment;
64
An agency in real estate may be terminated in several ways. Which of the following is NOT likely to be the cause of termination of an agency relationship:
Estoppel
65
A prospective seller wanted to give you a listing on a property. In reviewing his papers, you discover that he is buying the property on a conditional/installment contract of sale and that the contract contains no acceleration clause or other provision for limiting a resale or assignment. Your client can:
Sell or assign his rights but not his original duties unless the contract seller's approval is obtained beforehand;
66
In which of the following ways does real property differ from personal property:
It is immovable by law;
67
When real property is being escrowed, the escrow holder may do which of the following:
Accept written instructions from the seller and buyer to change the price and terms without the approval of any agents;
68
not be considered a demand source for mortgage money?
Federal National Mortgage Association;
69
In its decision concerning the making of an FHA loan, a lending institution is least affected by:
Mortgage insurance rate;
70
It is a requirement that most real estate records be kept for a period of three years, commencing from the date:
Of the listing agreement, if the sale is not consummated;
That a sale transaction closes;
71
The Federal National Mortgage Association (FNMA) was created for the primary purpose of:`
Increasing the amount of money available for credit financing of housing;
72
Exclusive of the down payment, a home buyer would pay the lowest closing costs if he were to use:
A Cal-Vet loan
73
Which of the following agencies increases the availability of mortgage credit by maintaining a secondary market for residential conventional mortgages?
Federal Home Loan Mortgage Corporation.
74
One of the principal purposes of "RESPA" (Real Estate Settlement Procedures Act) is:
To provide the prospective buyer the opportunity to shop for settlement services;
75
A broker receives a written offer on a listed property, but it is well below the listed price and he is certain that the seller will not accept it. Which of the following would it NOT be acceptable for him to do:
Change the offer price to what he thinks the seller will accept, and initial the change;
76
If a principal no longer desires the broker to act for him during the period of an exclusive right to sell listing, he may:
Revoke the agency created by the listing contract but may be liable for damages;
77
If a seller declines to fill out his/her section of the Real Estate Transfer Disclosure Statement, the seller's agent should:
Complete the listing agent's portion of the Statement and deliver it to the buyer;
78
According to the Statute of Frauds, which one of the following must be in writing:
An agreement by a purchaser to pay an indebtedness secured by a deed of trust upon the property purchased.
79
An agency cannot be created in which of the following ways:
By subornation.
80
The law of agency is concerned with the duties, rights, and liabilities between and among:
The agent and his principal;
The principal and the third party with whom the agent deals;
The agent and the third party;
81
When a man bought a property, he was not told about the septic tank installation. The buyer's right would be to:
Rescind the contract;
82
The maximum commission a broker may charge for the sale of residential property is:
Determined by the broker's contract with his principal;
83
The usual listing contract authorizes a broker to:
Find a purchaser and accept a deposit with an offer to purchase;
84
Under which of the following listings must an owner pay a commission, even though he sells entirely through his own efforts:
Exclusive right to sell listing;
85
Two years into a ten-year lease, the lessor and lessee agree to terminate the rental agreement, with the lessee vacating the property and the lessor not demanding any further payment of rent. This is known as:
Surrender;
86
The prospective purchaser may withdraw the offer at any time before the seller's acceptance of an offer has been communicated to the prospective purchaser:
For any reason.
87
A buyer and seller initial the liquidated damages clause in a real estate purchase contract and then the buyer defaults. The deposit is:
Divided equally between the seller and the listing agent;
88
A broker's ad in a local newspaper says that if a buyer or seller will bring this ad to his office and either list or buy a property through him, that he will give that person $50. Which of the following is true:
The broker can give $50 to the buyer or seller.
89
A federal income tax advantage could be gained from:
A deduction for depreciation on income property;
An installment sale;
A tax-free exchange;
90
When renting residential property, the amount of a deposit which a lessor may legally receive from a lessee is determined in part by which of the following:
Whether the unit is furnished or not;
91
In July, Hall bought Welch's home through the listing broker, Cruz. In November, when the first rain came, the tile roof leaked badly in many places. Hall sued Welch and Cruz for the cost of the necessary new roof. Testimony in court showed that Welch had mentioned the need of a roof to Cruz, but Cruz had not mentioned it to Hall because "he had not asked about it." The most likely result was:
Hall was successful in the suit against Welch, who was entitled to recover damages, in turn, from Cruz;
92
The state Board of Equalization:
Appraises all public utility properties for tax assessment;
93
A listing agreement is:
A promise for a promise;
A bilateral contract;
An employment contract;
94
in housing construction, a joist is a:
Parallel
95
The Subdivision Map Act requires:
The subdivider to prepare a tentative map and file it with the city or county;
96
Under an exclusive authorization and right to sell listing, the seller agrees to pay the broker if the property is sold at any time during the term of the listing by anyone. Therefore, the broker would not need to prove that
the broker was the procuring cause.
97
Enforcement of sanitation requirements in connection with the sewage disposal from subdivisions is usually the responsibility of the local:
Health officer;
98
When the deposit receipt on the sale of a house states that the property is being sold "as is," it:
Also requires a real estate transfer disclosure statement;
99
What is the highest construction member of a frame house:
Ridge board;
100
A bill of sale is used to convey
an interest in personal property,
101
not terminate an offer to purchase real property:
The offeror communicates notice of revocation after the offeree has properly posted acceptance;
102
If a person dies without a will and with no identifiable heirs, the process by which the state may acquire title to his real property is known as:
Escheat
103
Potential Buyer Marshall seeks to purchase a home in a new subdivision. A licensee assists Marshall in securing a loan for such purpose from a savings and loan association, explaining to Marshall the loan processing costs that will be involved at closing. Under these conditions, when the loan is arranged, a copy of the HUD Booklet, "Settlement Costs and You":
Must be provided to Marshall by the lender within three days of the loan application.
104
In a real estate purchase contract, the liquidated damages clause is initialed and the buyer defaults. The deposit will be:
Divided equally between the seller and the listing agent;
105
How many feet are on one side of a section:
5,280
105
Why is it considered essential that every party to a real estate transaction must receive a full and complete disclosure of who is representing whom:
Imputed authority
Professional and ethical responsibility;
Legal effect;
106
In the capitalization method of appraising, the most difficult step is to:
Select a capitalization rate.
107
The Internal Revenue Service would define the marginal tax rate as:
The tax rate which is used for the next dollar of taxable income earned;
108
Before the seller of a parcel of real property accepted an offer to purchase it, the potential buyer notified the broker that he had changed his mind, was canceling the offer, and wanted immediate return of his $500 deposit. In such a case, the broker should:
Refund the $500 to the buyer.
109
Real estate brokers who own and manage a local real estate office are required to have a written employment contract with:
Each member of their sales staff, including those who have a broker's license but do not have their own office;
110
appraisal reports would be the most comprehensive and complete:
Narrative
111
not be considered one of the great special forces influencing value
Private restrictions;
112
In analyzing a parcel of vacant land to estimate its value, what is the first thing necessary to determine:
Highest and best use of the land;
113
The basis of the market data approach to appraising is found in:
The principle of substitution;
114
An appraiser is appraising a two-year-old, single-family, owner-occupied home in a good neighborhood. If he is trying to determine the sales price, which of the following would normally be given the greatest weight:
Carefully comparing the property with similar properties that have sold recently in the neighborhood.
115
When appraising amenity-type properties, the method generally used is known as:
Market comparison;
116
The income approach would not be used when appraising:
Residences in new subdivisions;
117
The maximum potential income which any income-producing property is capable of generating is known as:
Gross scheduled income;
118
Wolfman is considering an extensive modernization program for an older apartment building which she owns. Her decision should give most emphasis to:
Net effect on the net income.
119
If a buyer and seller negotiate a sale of real property where the buyer takes title subject to the seller's existing loan, and the sale is made without the knowledge or consent of the lender, the parties should be advised that:
The loan may be accelerated if the lender learns about the sale;
The sale might not be completed if the loan is called and the buyer is unable to secure alternative financing;
The seller retains personal liability for the loan and any potential deficiency;
120
When comparing the physical and the economic life of an improvement, the economic life usually is:
Shorter
121
Mr. Smith, who owns an apartment and no other real property, sustained a $30,000 operational loss for the last tax year. For income tax purposes he may:
Use the loss to offset any capital gains realized;
122
When trying to determine the amount of economic obsolescence suffered by a commercial property, the answer to which of the following questions would be of most benefit:
Are the tenants in the neighborhood prospering?
123
Which of the following would be contained in a plot map:
Location of the improvement on the lot and relationship to surrounding features;
124
The effectiveness of insulation is referred to as its "R-value." The R stands for:
Resistance to heat flow;
125
According to income tax laws, which of the following is true about depreciation of land:
Land is not depreciated.
126
A deposit receipt said, "Seller to provide and pay for a structural pest control inspection report on improvements and pay for corrective work, if any." The broker must be certain that the buyer receives a copy of the structural pest control report:
As soon as practicable before close of escrow;
127
Which of the following would not terminate a properly formed joint tenancy between two co-tenants:
One of the joint tenants signing a deed of trust, creating a lien against his interest in the property.
128
A broker strongly recommends to her sales staff that they use the services of her in-house escrow company and an affiliated mortgage lender, for which they will receive extra compensation. With regard to disclosing this arrangement to clients, the salespersons are only required to:
Disclose the full amount of any additional compensation to be received, and obtain the client's approval;
129
Under which of the following types of listings might the listing broker fail to qualify for a commission, even if he procures a buyer and the seller accepts that buyer's offer:
Net listing;
130
For federal income tax purposes, expenditures for capital improvements (enhancements) for income-producing properties are:
Added to the cost basis of the property;
131
The Residential Earthquake Safety Disclosure must be provided to the buyer in a sale transaction involving a wood-frame structure, if the home was constructed in what year or earlier:
1960
132
not constitute constructive eviction by a lessor:
Failure to repair property damage caused by the tenant's improper care;
133
The principle difference between the various required Natural Hazard Disclosures and the Transfer Disclosure Statement (TDS) is that:
The seller and/or the seller's agent must consult published maps of known hazard areas to detect and disclose relevant hazards, whereas the TDS requires disclosure of all known property defects.
134
What is the maximum amount that may be ordered paid from the Recovery Fund to satisfy valid claims against a licensee, for judgments rendered after January 1, 1980:
100,000
135
