Principles Flashcards
1
Q
Zoning is under the control of:
A
Government Agencies
2
Q
Easements appurtenant are for the benefit of:
A
Adjoining (neighboring) landowners
3
Q
A contract that is binding and enforceable in a court of law is said to be:
A
Valid
4
Q
Who makes an offer on a property that is for sale?
A
Offeror (Buyer)
5
Q
Escrows base monthly probations on how many days?
A
30
6
Q
The process of proportionally dividing rents, property taxes, and fire insurance is called:
A
Proration
7
Q
The area of a rectangle lot that is 50 feet wide by 100 feet deep is:
A
5,000 square feet
8
Q
If the international revenue service is using a minimum of 39 years for straight-line depreciation on commercial properties, what would be the annual depreciation on a newly constructed apartment that cost $1,950,000 and had an original land cost of $585,000?
A
$35,000
9
Q
For how much assessed value is the Homeowner’s Property Tax Exemption?
A
$7,000
10
Q
The difference between property taxes and special assessments is that:
A
Special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund.
11
Q
Which of the following is TRUE concerning the Cap Rate?
A
The greater the risk, the greater the cap rate
Appraised value increases when the cap decreases
Finding the cap rate is the most difficult step in income approach
ALL OF THE ABOVE^^^
12
Q
Misuse of the real estate appraisal report or coercion of the appraiser are now:
A
Federal felonies.
13
Q
A person who is authorized by the Secretary of State to witness the acknowledgment of documents is known as a(n):
A
Notary public
14
Q
An estate for years is an example of a: less-than-freehold estate for a fixed period of time.
A
15
Q
A broker who mixes personal funds with his or her principals funds is guilty of:
A
Commingling.
16
Q
A Real Estate Commissioner enforces provisions of the:
A
Real Estate Law.
17
Q
Real property consists of:
A
Land and structures on the land
Anything incidental on the land
Anything appurtenant to the land
ALL OF THE ABOVE^^
18
Q
Determining the present value of a property based upon its anticipated future income and expenses is called the:
A
Capitalization or income approach
19
Q
Which of the following in NOT one of the forces that affect the value of a neighborhood?
A
Past sales consideration
20
Q
The right to reasonable use of water from a river or stream, if the land borders it, is called:
A
A riparian right
21
Q
The federal civil rights law that applies to Americans with disabilities and protects them from discrimination is the:
A
Americans With Disabilities Act.
22
Q
A zoning act that requires disclosure of a property’s vicinity to hazardous earthquake faults is known at the:
A
Alquist-Priolo Special Studies Zone Act.
23
Q
When prices rise due to shortages of available properties, it is known as a:
A
Seller’s market
24
Q
The higher your credit score:
A
The better your interest rate and loan terms
25
Other than the initial small deposit to open the account, when are money deposits the personal property of the broker?
Never
26
Which of the following is NOT a method to establish a real estate broker agency?
Secret ballot
27
What “American” title insurance is usually requested by lenders?
ALTA policy
28
“QR Code” stands for:
Quick response code
29
Which of the following is a requirement of a lease?
Length of lease
Amount of rent
Names of parties
ALL OF THE ABOVE^^^
30
When a tenant voluntarily gives up a lease before the expiration of its term, its known as:
Surrender
31
Which of the following is NOT an essential element of a contract?
Cash
32
Owner A tells owner B that he will pay him $1,000 to paint his house. B agrees. This is an example of a:
Bilateral contract
33
The California department of Veteran’s Affairs loan program is commonly known as the:
CalVet Program
34
Which of the following is NOT institutional lenders?
Private individuals
35
The market data method is the most common approach for:
Houses
Condos
Vacant land
ALL OF THE ABOVE^^^
36
The agency disclosure form tells the seller and the buyer that their agent is working as:
The seller’s agent
The buyer’s agent
Both seller’s and buyer’s agent
ANY OF THE ABOVE^^^^
37
What type of listing entitles the listing broker names in the agency contract to a commission even if the owner sells the property privately during the listing period?
Exclusive right to sell listing
38
The first phase in the life of a contract is:
Negotiation
39
How many square feet are in 1 acre?
43,560
40
What is 395,340 square feet of area minus an area of 110 x 30 feet?
392,040 square feet
41
A month-to-month rental agreement is usually a:
Periodic tenancy
42
An on-site residential manager:
Is a tenant of the property.
Handles tenants complaints
Maintains the premises
ALL OF THE ABOVE^^^
43
You are landlord who discovers that one of your tenants is having new carpet installed in his apartment, without your consent. To protect yourself you should file a(n):
Notice on non-responsibility
44
Easements are created by:
Express grant(in writing)
Implication of law
Long-term use (prescription)
ALL OF THE ABOVE^^
45
Depreciation for tax purposes is a yearly tax deduction on the taxpayer’s income tax form. Which of the following is NOT acceptable for depreciation?
Your owner-occupied residence
46
Installment sales and exchanges have as their primary purpose:
Tax postponement
47
Which of the following is FALSE concerning a grant deed?
It is signed only by the grantee
48
If a person dies without a will, the procedure for transferring the deceased’s property to his or her heirs is called:
Interstate succession
49
Which of the following is NOT a type of property lot?
Curb lot
50
Which of the following would prevent the contractual requirement of genuine consent?
Menace
Undue influence
Duress
ALL OF THE ABOVE^^^
51
The rate the borrower is actually paying (including interest, points, and loan fees) is called:
The effective interest rate
52
In a trust deed, the borrower is usually the:
Trustor
53
What federal case on 198 upheld the 1866 Civil Rights Act?
Jones V. Mayor
54
A condominium does NOT have:
Private ownership of land and improvements
55
The closing date is:
The date the documents are recorded
56
Which of the following is NOT a duty of the escrow company?
Selling Title Insurance
57
The Real Estate Commissioner:
Enforces the real estate law
58
Any sale of a substantial part of inventory or other supplies and equipment associated with a business:
Is a bulk sale or transfer
59
When an improvement is permanently attached to real property it becomes:
Real property
60
Which of the following is NOT a recognized legal method of land description?
Satellite tracking
61
The housing Financial Discrimination Act prohibits:
Redlining
62
Rental agreements are designed for estates:
From period-to-period
63
“QR code” stands for:
Quick Response Code
64
A lessee making payments based on gross monthly income has a:
Percentage lease
65
If the “exact” terms of the listing agreement are met, the listing broker is entitled to a commission, even if the:
Owner refuses to sell to the buyer
66
All material facts affecting the value and desirability of a property must be disclosed on the:
Transfer disclosure statement
67
All material facts affecting the value and desirability of a property must be disclosed on the:
Transfer disclosure statement
68
Which of the following online real estate search websites owned by NAR uses information for MLS data?
Realtor.com
69
If you made a 17% profit on the $76,000 sale of a lot, how much did you pay for the lot?
$64,957
70
Income-producing property owners can deduct which of the following from their federal income taxes?
Property taxes
Prepayment penalties
Depreciation of building improvements
ALL OF THE ABOVE^^^
71
The term “EER” is used to measure:
Energy efficiency (the higher the better)
72
What do 90% of all home buyers do before contacting a real estate agent?
Search the Web
73
A lien placed on more than one parcel, all parcels having the same owner, is known as a:
Blanket encumbrance
74
When someone is performing unauthorized work on your property, you should file a(n):
Notice of non responsibility
75
Demand sources for real estate loans include loans for:
Buying property
Refinancing
Construction
ALL OF THE ABOVE^^
76
The cancelling of an offer to contract by the original offeror is called:
Revocation
77
An ownership interest in real property that only exists for the life of any designated person or persons (of ten the grantee) is called a (n):
Life estate
78
What is the legal process of making an instrument an official part of the county records?
Recording
79
The salesperson exam requires what percentage of correct answers to pass?
70%
80
A lease purchase option is the:
Right to purchase the property
81
Of the following, who is permitted to purchase property in California without court approval?
Foreign persons (aliens)
82
A counter offer:
Terminates the prior offer
Is a new offer
Changes the terms of the prior offer
ALL OF THE ABOVE^^
83
The seller must provide the buyer of a condominium with:
The CC&R’s
The bylaws
A copy of the most recent financial statement
ALL OF THE ABOVE^^
84
The federal U.S. Fair Housing Act of 1968 that requires equal housing posters to be displayed at real estate offices and at lending institutions is also generally known as the:
Federal Civil Rights Act of 1968
85
Which of the following is considered the most reliable Internet source of real estate for sale accessible by the general public?
Realtor.com
86
If a broker were to say to a prospective buyer “i think this is the best house on the street,’ the statement would be considered a(n):
Exaggeration of benefits (puffing)
87
If the prospective investor of real property is most concerned with making money off the usefulness of the improvements, he or she would be most concerned with:
Economic life remaining in the improvements
88
The most difficult part of the cost approach is:
Estimating depreciation of older buildings
89
A recorded public history of a specific property is called a:
Chain of title
90
In a sale-leaseback, the original property owner:
Becomes the lessee
91
CC&R’s refer to:
Covenants, conditions, and restrictions
92
A mechanics lien is filed against the:
Property
93
Prior to receiving communication of its acceptance a buyer can withdraw an offer:
In writing
Personally
By registered mail
ALL OF THE ABOVE^^
94
Which of the following is NOT a section and township starting point in California?
Blythe
95
The current status of items from the county records affecting the property’s title is called the:
Preliminary title report
96
What must a potential listing agent do if a seller requires the agent to discriminate?
Refuse the listing
97
If you have an outstanding bank loan of $56,500 with monthly payments of $500 a month, of which $43.76 is applied to principal, what is the interest rate on the loan?
9.69%
98
When a married couple (filing jointly) sells their residence after living in it for two of the last five years, they don’t have to pay capital gains for a profit of up to:
$500,000
99
Compared to ordinary income tax rate, capital gains taxes are:
Lower
100
Real property assessed:
Each time its sold
| At 100% of its selling price or market value, whichever is higher
101
An appraiser using the market approach collects many recent comparable sales. If a comparable property has a feature that is NOT present in the subject property, the estimated value of the feature is:
Subtracted from the sales price of the comparable
102
The Federal Reserves monetary policies influence the supply of of money by:
Buying and selling government T-bonds and T-securities
Raising and lowering the reserve requirement
Raising and lowering the discount rate to member banks
ALL OF THE ABOVE^^
103
An oath or affirmation made before a notary public that the content of an instrument is true is called a (n):
Verification
104
An emancipated minor:
Has legal capacity
Is always emancipated
Can acquire property
ALL OF THE ABOVE^^^
105
Which of the following is NOT a required document is a personal property security transaction?
A photograph of the property
106
An advertisement by a broker that gives the impression that he or she is the owner of the property is a violation of Real Estate Law called a:
Blind advertisement
107
Which of the following is NOT California starting point in the U.S. Government Survey System?
Baja Base Line and Meridian
108
1/4 of a section is 1/2 mile by 1/2 mile and has how many acres?
160
109
Which of the following statements constitutes an example of progression?
A home of lesser value is worth more when located among homes of greater value
110
Which appraisal method is known as the “replacement cost method”?
Cost approach
111
An agent who intentionally shows minorities homes for sale in a minority neighborhood only and refuses to communicate the availability of housing in other neighborhoods is guilty of:
Steering
112
Which of the following is TRUE concerning illusory contacts?
They are unenforceable
113
Which of the following are considered non-institutional lenders?
Private leaders
Mortgage companies
Credit unions
ALL OF THE ABOVE^^
114
If you want an FHA loan, you should go to:
An approved lender
115
An agency is terminated by operation of law when:
The agency agreement expires
The broker or seller dies
The property is destroyed
ALL OF THE ABOVE^^^
116
Which of the following is NOT a duty of the broker/agent towards his or her principal?
Availability
117
The nominal interest rate is:
Stated on the note
118
In a trust deed, the “power of sale” clause is given:
From the trustor to the trustee
119
If a rental property is sold, the rents of the tenants are:
Prorated in Escrow
120
Changing the zoning from R3 to R1 (with less use density) is an example of:
Downzoning
121
An incompetent person:
Is of unsound mind
Cannot individually contract
Must have court approval to contract
ALL OF THE ABOVE^^^
122
Which of the following is a remedy for a breach?
Acceptance of the breach
Action for dollar damages
Action for specific performance
ANY OF THE ABOVE^^^
123
An “REIT” is a:
Real estate investment trust
124
Impound reserves can be used to pay:
Both A and B
| Fire Insurance & property taxes
125
The cost approach is most effective:
With new, unique, or public buildings
126
A lease for more than one year must be:
In writing
127
In real estate, the person who acts for and with the authority of another is called a(n):
Agent
128
A person who sells final results rather than time is known as a(n):
Independent contractor
129
What would be the interest due on a loan of $25,000, borrowed at 7%, for a period of three years?
$5,250
130
Tenant A has a month-to-month tenancy with landlord B. What is the minimum number of days of days’ notice that A must give if she wishes to vacate?
30
131
To be valid, a lease need NOT include the:
Words “let or demise”
132
A landlord uses an unlawful detainer action:
To gain possession
133
Which of the following is an example of a voluntary lien?
Trusty deed loan
134
What is NOT one of the fair unities involved in the establishment of a joint tenancy?
Conveyance
135
Which word best describes the the effects of income taxes as your income increases?
Progressive
136
An agent who is only authorized to perform specific to perform specific acts is known as a (n):
Special attorney in fact
137
If a property is to be returned to the grantor after a life estate is terminated, it is referred to as a
(n):
Estate in reversion
138
Which of the following is true regarding joint tenancy?
Joint Tenants have the right of “survivorship”
A joint tenancy cannot be willed
BOT A AND B ^^^^^
139
Am information booth is called a(n):
Kiosk
140
The income approach is most effective:
For properties that can generate income
141
In a trust deed, the beneficiary is the:
Lender
142
A set number of days in which a lender will allow payments to be late without penalty is known as a:
Grace period
143
The original housing law in California that deals with discrimination in business is called the:
Unruh Civil Rights Act
144
The “Alquist-Priolo special Studies Zone act” pertains to:
Earthquake fault zones
145
The acronym “CLTA” stands for:
California Land Title Association
146
In a trust deed, the trustee is the:
Third (disinterested) party
147
Which of the following is true about the salesperson exam?
150 multiple choice questions
Lasts 3 hours and 15 minutes
Requires 70% correct score to pass
ALL OF THE ABOVE^^^
148
The fair housing violation of refusing to loan or inspire a house because of a properties location is also known as:
Redlining
149
How many square feet are in an acre?
43,560
150
Which kind of listing is preferred by most brokers?
Exclusive right to sell
151
Which of the following is an important tax date to remember?
November 1st
December 10th
February 1st
ALL OF THE ABOVE^^^
152
The county assessor determines a property’s:
Assessed valuation
153
A document given to a tenant stating that he or she must pay past due rent or vacate is known as a(n):
Three-day Notice To Pay
154
When a lessee (tenant) pays property taxes, insurance, and operating expenses, it is called a:
Net lease
155
Which if the following would best describe an open listing?
Nonexclusive
156
The CLTA policy protects against:
Lack of capacity
Deeds not properly delivered
Forgery
ALL OF THE ABOVE^^^
157
If a buyer defaults on a conditional sales purchase contract (Land contract), who could file a quiet title action to remove the cloud on the title?
Seller
158
Life insurance companies
Prefer large loans
Are least likely to make small loans
Seldom make construction loans
ALL OF THE ABOVE^^^
159
You have completed the sale of a home for $365,000. The rate of commission is 7%. How much money have you made?
$24,920
160
Which clause in a purchase agreement sets, in advance, a specified amount of money as compensation if there if a breach?
Liquidated damages agreement
161
Depreciation can be:
Curable
Incurable
Loss in value from any cause
ALL OF THE ABOVE^^^
162
Which of the following is true concerning mechanic’s liens?
They are specific liens
They are involuntary liens
They must be recorded to be effective
ALL OF THE ABOVE^^^
163
A mechanic’s liens can be filed against a property by someone who has furnished which of the following services?
Landscaping
Roofing
Plumbing
ALL OF THE ABOVE^^^
164
Which type of depreciation is called “social” obsolescence?
Economic obsolescence
165
Non institutional lenders who usually lend their own money and then sell their loans to others and service the loans are called:
Mortgage bankers
166
The broker must place a buyer’s money deposit in a trust account or escrow:
Within three business days
167
A fee estate that is subject to particular limitations imposed bu the grantor of the estate is called:
A fee simple defeasible estate
168
A “good faith” estimate of settlement charges (RESPA) for the purchase of a home includes:
Rate of interest
Points on the loan
Additional loan fees
ALL OF THE ABOVE^^^
169
Mello-roo’s liens:
Require a seller and/or salesperson to disclose
Are municipal bonds
Usually fund street improvements
ALL OF THE ABOVE^^^
170
Which lender is a co-operative association organized to promote thrift among its members and provide them with a source of credit?
Credit union
171
You enter a hardware store where you have an account, pick up a pair of $5.00 pliers, and wave them at the manager as you leave the store. This would be an example of a(n):
Implied contract
172
In a legal dispute, when there is a conflict between the preprinted clauses and the handwritten information in a real estate contract, which information takes precedence?
Handwritten information
173
The only time an agent can refuse to show a property is when:
The sellers are out of town and notify the broker than no one is allowed to see the property
174
The California Fair Employment and Housing Act (FEHA) investigates and takes action against which of the following who engage in discriminatory practices?
Property owners
Financial institutions
Real estate licenses
ALL OF THE ABOVE^^^
175
Which of the following is NOT a test to determine whether an item is fixture?
Date of purchase
176
Which of the following is TRUE concerning listings?
They are not assignable
They can be for any period of time
They belong to the broker, not the salesperson
ALL OF THE ABOVE^^^
177
Which of the following statements is FALSE concerning economic obsolescence?
It is due to wear and tear
178
FHA-backed loans:
Generally have lower interest rates than conventional loans
179
Which of the following is NOT a duty of the escrow company?
Selling title insurance
180
Commingling can best be described as:
Mixing funds of a principal and a licensee
181
Real property subject to a lien is referred to as a:
Encumbered
182
A contract is best defined as:
An agreement to perform or not to perform
183
Which of the following online real estate search websites owned by NAR uses information from MLS data?
Realtor.com
184
The most common reason the terminate a lease or rental agreement is:
Expiration of the term
185
Which of the following is NOT usually prorated in Escrow?
Title insurance
186
If you are a subcontractor and a notice of completion has been filed, a mechanic’s lien can be filed:
Until 30 days after notice of completion
187
Two brokers agreed to split a 6% commission on a 50-50 basis on a property that sold for $362,500. How much will each broker receive?
$10,875
188
A clause allowing an owner to continue using property in a way that is now prohibited by new zoning is called:
A grandfather clause
189
As of 2014, a federal estate tax return must be filled for any U.S. resident whose gross estate exceeds:
$5,000,000
190
A money debt that an owner agrees to pay is a(n):
Voluntary lien
191
An outdated kitchen would be an example of:
Functional obsolescence
192
The substitution, by agreement, of a new contract for an existing one with the intent to cancel the old contract, is known as:
Novation
193
What is the term used when a person leasing a property remains after the expiration of the stated term?
Estate at sufferance
194
In order to record a deed or trust deed, a notary requires:
The recorder’s right thumbprint
195
A real estate license for both a salesperson and a broker must be renewed every:
Four years
196
The greatest and most complete form of ownership known to the law is:
Estate if we or fee simple
197
One-half of a section has how many acres?
320
198
What is the procedure used for transferring the deceased’s property to his or her heirs if there is no will?
Intestate succession
199
The bottom portion lining a doorway or window is the:
Sill
200
The Federal Safe Act of 2008 requires all persons/entitles tperforming acts such as mortgage loan originators to be registered with and/or licensed through the:
Nationwide Mortgage Licensing System and Registry (NMLS/NMLS&R)
