Real Estate principles Flashcards by Brittany Del Rio

Zoning is under the control of:
A. Private parties
B. Government agencies
C. The Bureau of Real Estate
D. None above

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Easements appurtenant are for the benefit of:
A. Homesteaded landowners.
B. Adjoining (neighboring) landowners
C. The General public
D. Government use only

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A contract that is binding and enforceable in a court of law is said to be:
A. Proprietary
B. Illusory
C. Valid
D. All above

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Who makes an offer on a property that’s for sale?
A. Seller’s agent
B. Offeree (seller)
C. Offeror (buyer)
D. All above

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Escrows base monthly prorations on how many days?
A. 28
B. 29
C. 30
D. 31

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The process of proportionally dividing rents, property taxes, and fire insurance is called:
A. Subdividing
B. Title splitting
C. Proration
D. Escrow debiting

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The area of a rectangular lot that is 50 feet wide by 100 feet deep is:
A. 2,500 sq ft
B. 500 sq ft
C. 5,000 sq ft
D. 50,000 sq ft

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If the Internal 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
B. $15,000
C. $3,500
D. $50,000

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For how much assessed value is the homeowners property tax exemption?
A. $1,000
B. $7,000
C.$2,000
D. $200

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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.
B. Assessment liens can only be levied by local improvement districts.
C. Foreclosure of assessment liens can only be achieved by court foreclosure.
D. Assessment liens are always subordinate to property tax liens.

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Misuse of the real estate appraisal report or coercion of the appraiser are now:
A. Misdemeanors
B. Federal felonies
C. Infractions
D. None above

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Which of the following is true concerning the cap rate?
A. The greater the risk, the greater the cap rate
B. Appraised value increases when the cap decreases.
C. Finding the cap rate is the most difficult step in the income approach
D. All above

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A person who is authorized by the Secretary of State to witness the acknowledgment of documents is known as a(an):
A. Administrator
B. Librarian
C. Document doctor
D. Notary public

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An estate for years is an example of a:
A. Life estate
B. Fee estate
C. Freehold estate
D. Less-than-freehold estate for a fixed period of time

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A broker who mixes personal funds with his or her principal’s funds is guilty of:
A. False promise
B. Commingling
C. Divided agency
D. Conversion

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The Real Estate Commissioner enforces provisions of the:
A. Civil law
B. Commercial law
C. Property law
D. Real estate law

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Real property consists of:
A. Land and structures on the land
B. Anything incidental to the land
C. Anything appurtenant to the land
D. All above

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Determining the present value of a property based upon it’s anticipated future income and expenses is called the:
A. Capitalization or income approach
B. Replacement cost method.
C. Market data method
D. Comparison approach

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Which of the following is NOT one of the forces that affect the value of a neighborhood?
A. Past sales considerations
B. Economic considerations
C. Physical considerations
D. Social considerations

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The right to reasonable use of water from a river or stream, if the land borders it, is called:
A. None below
B. A mineral right
C. A potable right
D. A riparian right

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The federal civil rights law that applies to Americans with disabilities and protects them from discrimination is the:
A. Unruh civil rights act
B. Americans with disabilities act
C. Fair employment and Housing Act
D. None above

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A zoning act that requires disclosure of a property’s vicinity to hazardous earthquake faults is known as the:
A. San Andreas State Earthquake Act
B. California Coastal Act
C. Alquist-Priolo Special Studies Zone Act
D. None above

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When prices rise due to shortages of available properties, it is known as a:
A. Buyers market
B. Sellers market
C. Lenders market
D. Deflationary market

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The higher your credit score:
A. The greater your chance of default
B. The better your interest rate and loan terms
C. The greater the possibility you will file a bankruptcy.
D. None above

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``` Other than the initial small deposit to open the account, when are money deposits the personal property of the broker? A. Never B. Only with the permission of the buyer C. Only during non-business days D. Always ```

``` Which of the following is NOT a method to establish a real estate broker agency A. Secret ballot B. Implied agreement C. Express agreement D. Estoppel ```

``` What “American” title insurance is usually requested by lenders? A. CLTA Policy B. ALTA Policy C. RESPA Policy D. None above ```

``` “QR Code” stands for: A. Quick Response Code B. Quality Review Code C. Quantitative Relativity Code D. None above ```

``` Which of the following is a requirement of a lease? A. Length of lease B. Amount of rent C. Names of parties D. All above ```

``` When a tenant voluntarily gives up a lease before the expiration of its term, its known as: A. Forgiveness B. Forbearance C. Suspension D. Surrender ```

``` Which of the following is NOT an essential element of a contract? A. Cash B. Mutual consent C. Capacity D. Proper writing ```

``` Owner A tells B he will pay him $1,000 to paint his house. B agrees. This is an example of a: A. Unilateral contract B. Bilateral contract C. Completed performance D. Warranty contract ```

``` The California department of Veterans affairs loan program is commonly known as the: A. CalVet program B. FHA C. California VFW Program D. VA ```

``` Which of the following are NOT institutional lenders? A. Banks B. Private individuals C. Insurance companies D. Mutual savings banks ```

``` The market data method is the most common approach for: A. Houses B. Condos C. Vacant land D. All above ```

``` The agency Disclosure Form tells the seller and the buyer that their agent is working as: A. The sellers agent B. The buyers agent C. Both sellers and buyers agent D. Any above ```

``` What type of listing entitles the listing broker named in the agency contract to a commission even if the owner sells the property privately during the listing period. A. Exclusive right to sell listing B. Exclusive agency listing C. Open listing D. All above ```

``` The first phase in the life of a contract is: A. Completion B. Escrow C. Performance D. Negotiation ```

``` How many square feet are in one acre? A. 38,304 B. 43,560 C. 38,416 D. 41,560 ```

``` What is 395,340 square feet of area minus an area of 110 x 30 feet? A. 3,300 B. 330,000 C. 392,040 D. 398,640 ```

``` A month-to-month rental agreement is usually a: A. Tenancy for years B. Periodic tenancy C. Tenancy at will D. Tenancy at sufferance ```

``` An on-site residential manager: A. Is a tenant of the property B. Handles tenants complaints C. Maintains the premises D. All above ```

``` You are a landlord who discovers that one your tenants is having new carpet installed in his apartment without your consent. To protect yourself, you should file a(n): A. Cease and desist order B. Mechanics lien C. Unlawful detainer action D. Notice of non-responsibility ```

``` Easements are created by: A. Express grant (in writing) B. Implication of law C. Long-term use (prescription) D. All above ```

``` Depreciation for tax purposes is a yearly tax deduction on the taxpayers income tax form. Which of the following is NOT acceptable for depreciation? A. Your office building B. Your apartment building C. Your shopping center D. Your owner-occupied residence ```

``` Installment sales and exchanges have as their primary purpose: A. Tax postponement B. Passing property to heirs C. Tax deduction D. None above ```

Which of the following is FALSE concerning a grant deed? A. The key word is “GRANT” B. It is signed only by the grantee C. It is considered executed when signed by the grantor D. Grant deeds contain implied warranties

``` If a person dies without a will, the procedure for transferring the deceased’s property to his or her heirs is called: A. Accession B. Intestate succession C. Escheat by the federal government D. None above ```

``` Which of the following is NOT a type of property lot? A. Curb lot B. Interior lot C. Key lot D. Corner lot ```

``` Which of the following would prevent the contractual requirement of genuine consent? A. Menace B. Undue influence C. Duress D. All above ```

``` The rate the borrower is actually paying (including interest, points, and loan fees) is called: A. The wishful interest rate B. The partially realized interest rate C. The effective interest rate D. All above ```

``` In a trust deed, the borrower is usually the: A. Trustee B. Beneficiary C. Trustor D. None above ```

``` What federal case in 1968 upheld the 1866 Civil Rights Act? A. Easton v. Strassburger B. Huber v. The State of California C. Jones v. Mayer D. None above ```

``` A condominium does NOT have: A. A separate grant deed B. A separate trust deed C. Private ownership of land and improvements D. A separate tax bill ```

The closing date is: A. Always on the first day of the month B. The date the documents are recorded C. Due before the payoff demand statement D. The date the listing agreement is signed

Which of the following is NOT a duty of the escrow company? A. Negotiating brokers fees B. Confidentiality C. Deposit holder D. Conditional delivery of funds and documents

``` The Real Estate Commissioner: A. Replaces a court of law B. Gives legal advice C. Enforces the real estate law D. All above ```

``` Any sale of substantial part of inventory or other supplies and equipment associated with a business: A. Is illegal B. Is a sale-leaseback C. Requires a PRLS license D. Is a bulk sale or transfer ```

``` When an improvement is permanently attached to real property it becomes: A. Private property B. Personal property C. Real property D. None above ```

``` Which of the following is NOT a recognized legal method of land description? A. Satellite Tracking B. Metes and Bounds C. Lots, Blocks, and Tracts D. Sections and Townships ```

``` The housing Financial Discrimination Act prohibits: A. Targeting B. Redlining C. Redistricting D. Gerrymandering ```

``` Rental Agreements are designed for estates: A. From period-to-period B. For no more than 10 years C. In escrow D. Any above ```

``` “QR code” stand for A. Quick Response Code B. Quality Review Code C. Quantitative Relationship Code D. None above ```

``` A lessee making payments based on gross monthly income has a: A. Ground lease B. Licensing agreement C. Lease-purchase option D. Percentage lease ```

``` If the “exact” terms of the listing agreement are met, the listing broker is entitled to a commission, even if the: A. Buyer is legally incompetent B. Broker is not licensed C. Seller is not the legal owner D. Owner refuses to sell to the buyer ```

``` All material facts affecting the value and desirability of a property must be disclosed on the: A. Residential listing agreement B. Disclosure of agency relationship C. Transfer disclosure statement D. None above ```

Which of the following is TRUE concerning negotiable instruments? A. They are easily transferable from one person to another. B. Promissory notes are considered negotiable instruments C. The most common example of a negotiable instrument is a personal check D. all above

``` Which of the following online real estate search websites owned by NAR uses information from MLS data? A. Zillow.com B. Trulia.com C. Realtor.com D. All above ```

``` If you made 17% profit on the $76,000 sale of a lot, how much did you pay for the lot? A. $63,000 B. $65,000 C. $64,957 D. None above ```

``` Income-producing property owners can deduct which of the following from their federal income taxes? A. Property taxes B. Prepayment penalties C. Depreciation of building improvements D. All above ```

``` The term “EER” is used to measure: A. Water purity B. Credit rating C. Water pressure D. Energy efficiency (the higher the better) ```

``` What do 90% of all home buyers do before contacting a real estate agent? A. Search the web B. Meet with their private banker C. Buy a new car D. None above ```

``` A lien placed on more than one parcel, all parcels having the same owner, is known as a: A. Full lien B. Blanket encumbrance C. Multi-tract lien D. None above ```

``` When someone is performing unauthorized work on your property, you should file a(n): A. Notice of non responsibility B. Notice of completion C. Writ of execution D. Abstract of judgment ```

``` Demand sources for real estate loans include loans for: A. Buying property B. Refinancing C. Construction D. All above ```

``` The cancelling of an offer to contract by the original offeror is called. A. Assignment B. Revocation C. Mutual consent D. Counter offer ```

``` An ownership interest in real property that only exists for the life of any designated person or persons (often the grantee) is called a(n): A. Life estate B. Estate in waiting C. Less-than-freehold estate. D. Estate in remainder ```

``` What is the legal process of making an instrument an official part of the country records? A. Acknowledgment B. Recording C. Constructive notice D. All above ```

``` The salesperson exam requires what percent of correct answers to pass? A. 60% B. 80% C. 70% D. 90% ```

``` A lease purchase option is the: A. Right to renew a lease B. Right to purchase the property C. Right to terminate a lease D. None above ```

``` Of the following, who is permitted to purchase the property in California without court approval? A. Convicts B. Minors C. Incompetents D. Foreign persons (aliens) ```

``` A counter offer: A. Terminates the prior offer B. Is a new offer C. Changes the terms of the prior offer D. All above ```

The seller must provide the buyer of a condominium with: A. The CC&Rs B. The bylaws C. A copy of the most recent financial statement D. all above

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: A. Federal civil rights act of 1968 B. California housing financial discrimination act of 1977 C. Unruh civil rights act (state law). D. None above

``` Which of the following is considered the most reliable internet source of real estate for sale accessible by the general public? A. Zillow.com B. Realtor.com C. Trulia.com D. None above ```

``` 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): A. Innocent misrepresentation B. Negligent misrepresentation C. Fraudulent misrepresentation D. Exaggeration of benefits (puffing) ```

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: A. Economic life remaining in the improvements B. Physical life remaining in the improvements C. Chronological age of improvements D. None above

The most difficult part of the cost approach is: A. Finding a lender B. Estimating depreciation of older buildings C. Finding an experienced appraiser D. All above

``` A recorded public history of a specific property is called a: A. Title provenance B. Chain of title C. Title plant D. String of title ```

``` In a sale-leaseback, the original property owner: A. Evicts his or her tenant B. Loses money C. Becomes the lessee D. None above ```

CC&Rs refer to: A. Conditions, control, and residuals B. Covenants, communities, and residents C. Construction, conditions, and restrictions D. Covenants, conditions, and restrictions

``` A mechanic’s lien is filed against the: A. Property B. Owner C. Lender D. General contractor ```

``` Prior to receiving communication of its acceptance, a buyer can withdraw an offer: A. In writing B. Personally C. By registered email D. All above ```

``` Which of the following is NOT a section and township starting point in California? A. Humboldt B. Mt Diablo C. Blythe D. San Bernardino ```

``` The current status of items from the country records affecting the property’s title is called the: A. Coinsurance clause B. Title insurance C. Preliminary title report D. None above ```

``` What must a potential listing agent do if a seller requires the agent to discriminate? A. Discriminate B. Charge a higher commission C. Refuse the listing D. Make a citizen’s arrest ```

``` 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? A. 8.25% B. 9.25% C. 9.69% D. 11.25% ```

``` When a married couple (filing jointly) sells their residence after living in it for 2 of the last 5 years, they don’t have to pay the capital gains for a profit of up to: A. $25,000 B. $120,000 C. $500,000 D. $700,000 ```

``` Compared to ordinary income tax rates, capital gains taxes are: A. Higher B. Lower C. The same D. None above ```

``` Real property is assessed: A. Every ten years B. Each time it is sold C. At 100% of its selling price or market value, whichever is higher D. Both b and c ```

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: A. Added to the sales price of the comparable B. Just noted on the appraisal but nothing is done C. Subtracted from the sales price of the comparable D. None above

The federal reserve’s monetary policies influence the supply of money by: A. Buying and selling government T-bonds and T-securities B. Raising and lowering the reserve requirement C. Raising and lowering the discount rate to member banks. D. All above

``` An oath or affirmation made before a notary public that the content of an instrument is true is called a(n): A. Deed B. Actual notice C. Verification D. None above ```

``` An emancipated minor: A. Has legal capacity B. Is always emancipated C. Can acquire property D. All above ```

Which of the following is NOT a required document in a personal property security transaction? A. Promissory note B. A photograph of property C. Security agreement D. Compliance with UCC-1 Financing statement

``` 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: A. Blind advertisement B. Shadow listing C. Secret profit D. None above ```

``` Which of the following is NOT a California starting point in the U.S. Government survey system? A. Baja Base Line and Meridian B. Humboldt Base Line and Meridian C. Mt. Diablo Base Line and Meridian D. San Bernardino Base Line and Meridian ```

``` 1/4 of a section is 1/2 mile by 1/2 mile and has how many acres? A. 320 B. 160 C. 240 D. 120 ```

Which of the following statements constitutes an example of progression? A. A home of greater value is worth more when located among homes of lesser value. B. A home of greater value is worth less when located among homes of lesser value. C. A home of lesser value is worth less when located among homes of greater value. D. A home of lesser value is worth more when located among homes of greater value.

``` Which appraisal method is known as the “replacement cost method”? A. Market data approach B. Cost approach C. Income approach D. All above ```

``` 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? A. Redlining B. Block busting C. Poor taste D. Steering ```

``` Which of the following is TRUE concerning illusory contacts? A. They are unenforceable B. They are definite and certain C. They are enforceable D. None above ```

``` Which of the following are considered non-institutional lenders? A. Private lenders B. Mortgage companies C. Credit unions D. All above ```

``` If you want an FHA loan you should go to: A. VA B. FHA C. CalVet D. An approved lender ```

``` An agency is terminated by operation of law when: A. The agency agreement expires B. The broker or seller dies C. The property is destroyed D. All above ```

``` Which of the following is NOT a duty of the broker/agent towards his or her principal? A. Availability B. Loyalty C. Honesty D. Integrity ```

``` The nominal interest rate is: A. The effective interest rate B. Compounded daily C. A guarantee of negative amortization D. Stated on the note ```

In a trust deed, the “power of sale” clause is given: A. From the trustor to the beneficiary (lender) B. From the trustor to the trustee C. From the beneficiary to the trustor D. From the beneficiary to the trustee

``` If a rental property is sold, the rents of the tenants are: A. Forfeited B. Refunded in full C. Doubled D. Prorated in escrow ```

``` Changing the zoning from R3 to R1 (with less use density) is an example of: A. Condemnation B. Police power C. Involuntary conversion D. Downzoning ```

``` An incompetent person: A. Is of unsound mind B. Cannot individually contract C. Must have court approval to contract D. All above ```

``` Which of the following is a remedy for a breach? A. Acceptance of the breach B. Action for dollar damages C. Action for specific performance D. Any above ```

``` An “REIT” is a: A. Real equity interest trust B. Real estate investment transfer C. Residential encouragement involving trusts D. Real estate investment trust ```

``` Impound reserves can be used to pay: A. Fire insurance B. Property taxes C. Both a and b D. Non above ```

``` The cost approach is most effective: A. At finding similar comparable properties B. With new, unique, or public buildings C. For properties that generate income D. All above ```

``` A lease for more than a year must be: A. In writing B. Notarized C. Filed with the county D. All above ```

``` In real estate, the person who acts for and with the authority of another is called a(n) A. Agent B. Principal C. Buyer D. Third party ```

``` A person who sells final results rather than time is known as a(n): A. Employee B. Independent contractor C. Sub agent D. All above ```

``` What would be the interest due on a loan of $25,000, borrowed at %7, for a period of three years? A. $7,000 B. $5,250 C. $1,750 D. $3,500 ```

``` Tenant A has a month-to-month tenancy with landlord B. What is the minimum number of days’ notice that A must give if she wishes to vacate? A. 14 B. 15 C. 30 D. 20 ```

``` To be valid, a lease need NOT include the: A. Description of the property B. Length of the lease C. Words “let or demise.” D. Names of the parties ```

``` A landlord uses an unlawful detainer action: A. To gain possession B. Instead of a mechanic’s lien C. To raise tenant’s rent D. To illegally intimidate a tenant ```

``` Which of the following is an example of a voluntary lien A. Trust deed loan B. Mechanics lien C. Tax assessment D. None above ```

``` What is NOT one of the four unities involved in the establishment of a joint tenancy? A. Conveyance B. Title C. Time D. Interest ```

``` Which word best describes the effects of income taxes as your income increases? A. Progressive B. Regressive C. Marginal D. Static ```

``` An agent who is only authorized to perform specific acts is known as a(n): A. General attorney in fact B. Special attorney in fact C. Fiduciary D. Attorney by estoppel ```

``` If a property is to be returned to the grantor after a life estate is terminated, it is referred to as a(n): A. Estate for years B. Estate in remainder C. Life estate D. Estate in reversion ```

Which of the following is true regarding joint tenancy? A. Joint tenants have the right of “survivorship” B. A joint tenancy cannot be willed C. Both a and b D. None above

``` An information booth is called a(n) A. Kiosk B. Turnkey C. Unearned increment D. Conduit ```

``` The income approach is most effective: A. With single-family homes or lots B. With new, unique, or public buildings C. For properties that can generate income D. All above ```

``` In a trust deed, the beneficiary is the: A. Escrow B. Third party C. Lender D. Borrower’s spouse ```

``` A set number of days in which a lender will allow payments to be late without a penalty is known as a: A. Waiting period B. Grace period C. Maturation period D. None above ```

``` The original housing law in California that deals with discrimination in business is called the: A. Unruh civil rights act B. Rumford act C. Federal civil rights act D. None above ```

``` The “ Alquist-Priolo Special Studies Zones Act” pertains to: A. Flood zones B. Earthquake fault zones C. Registered sex offender zones D. None above ```

``` The acronym “CLTA” stands for: A. California landlord tenant association B. California land title association C. Community lease transaction account D. California land tax association ```

``` In a trust deed, the trustee is the: A. Third(disinterested) party B. Lender C. Borrower D. State controller ```

``` Which of the following is true about the salesperson’s exam A. 150 multiple choice questions B. Lasts 3 hours and 15 mins C. Requires 70% correct score to pass D. All above ```

``` The fair housing violation of refusing to loan or insure a house because of a property’s location is also known as: A. Steering B. Panic selling C. Redlining D. Block busting ```

``` How many square feet is in an acre? A. 345 B. 100,000 C. 435 D. 43,560 ```

``` Which kind of listing is preferred by most brokers? A. Exclusive agency B. Exclusive right to sell C. Open listing D. None above ```

``` Which of the following is an important tax date to remember? A. November 1 B. December 10 C. February 1 D. All above ```

``` The county assessor determines a property’s: A. Assessed valuation B. Documentary transfer tax C. Estate taxes D. Tax rate ```

``` A document given to a tenant stating that he or she must pay past due rent or vacate is known as a(n): A. Three-Day Notice to Pay B. Unlawful Detainer C. Writ of Possession D. Curb summons ```

``` When a lessee (tenant) pays property taxes, insurance, and operating expenses, it is called a: A. Graduated lease B. Gross lease C. Net lease D. All above ```

``` Which of the following would best describe an open listing? A. Bilateral contract B. Illegal in California C. Non exclusive D. Exclusive ```

``` The CLTA policy protects against: A. Lack of capacity B. Deeds not properly delivered C. Forgery D. All above ```

``` 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? A. Broker B. Title insurance C. Buyer D. Seller ```

``` Life insurance companies: A. Prefer large loans B. Are least likely to make small loans C. Seldom make construction loans D. All above ```

``` You have completed the sale of a home for $356,000. The rate of commission is 7%. How much money have you made? A. $24,920 B. $9,000 C. $12,460 D. $21,150 ```

``` Which clause in a purchase agreement sets, in advance, a specified amount of money as compensation if there is a breach? A. Statute of limitations B. Pre-nuptial agreement C. Liquidated damages agreement D. Advance breach agreement ```

``` Depreciation can be: A. Curable B. Incurable C. Loss in value from any cause D. All above ```

``` Which of the following is true concerning mechanic’s liens? A. They are specific liens B. They are involuntary liens C. They must be recorded to be effective D. All above ```

``` A mechanics lien can be filed against a property by someone who has furnished which of the following services? A. Landscaping B. Roofing C. Plumbing D. All above ```

``` Which type of depreciation is called “social” obsolescence A. Physical deterioration B. Functional obsolescence C. Economic obsolescence D. None above ```

``` Non institutional lenders who usually lend their own money and then sell their loans to others and service the loans are called A. Mutual savings banks B. Mortgage bankers C. Pension funds D. Any above ```

``` The broker must place a buyer’s money deposit in a trust account or escrow: A. By the next day B. Within five days C. Within 3 business days D. None above ```

``` A fee estate that is subject to particular limitations imposed by the grantor of the estate is called. A. A restricted fee estate B. An imperfect fee estate C. A fee simple defeasible estate D. Non above ```

``` A “good faith” estimate of settlement charges (RESPA) for the purchase of a home includes: A. Rate of interest B. Points on the loan C. Additional loan fees D. All above ```

``` Mello-Roos liens: A. Require a seller and/or salesperson to disclose B. Are municipal bonds C. Usually fund street improvements D. All above ```

``` Which lender is a co-operative association organized to promote thrift among its members and provide them with a source of credit? A. REIT B. Pension plan C. Insurance company D. Credit union ```

``` 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): A. Express contract B. Mutual consent C. Implied contract D. All above ```

``` 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? A. Preprinted clauses B. Handwritten information C. Local customs D. None above ```

The only time an agent can refuse to shoe a property is when: A. The buyer appears to be too poor to purchase the property B. It is raining outside or the house is messy C. The buyers and sellers are of a different race D. The sellers are out of town and notify the broker that no one is allowed to see the property

``` The California fair employment and housing act (FEHA) investigates and takes action against which of the following who engage in discriminatory practices? A. Property owners B. Financial institutions C. Real estate licensees D. All above ```

``` Which of the following is NOT a test to determine whether an item is a fixture? A. Adaptability B. Date of purchase C. Intention D. Agreement ```

Which of the following is TRUE concerning listings? A. They are not assignable B. They can be for any period of time C. They belong to the broker not the salesperson D. All above

Which of the following statements is FALSE concerning economic obsolescence? A. It is due to wear and tear B. It is a result of off property causes C. It is due to changes in the neighborhood D. It is incurable

FHA-backed loans: A. Generally have lower interest rates than conventional loans B. Generally have higher interest rates than conventional loans C. Generally have lower loan to value ratios than conventional loans D. Are available only to veterans

``` Which of the following is NOT a duty of the escrow company? A. Conditional delivery B. Confidentiality C. Holding deposits D. Selling title insurance ```

Commingling can best describe as: A. Misappropriation of licensee’s funds B. Receiving a profit that is unknown to the seller C.mixing funds of a principal and a licensee D. Not disclosing certain physical conditions

``` Real property subject to a lien is referred to as: A. Attached B. Restricted C. Encumbered D. All above ```

A contract is best defined as: A. An agreement to perform or not to perform B. An offer by one party C. A willingness to enter into an agreement D. Something of value given by one party

``` Which of the following online real estate search websites owned by NAR uses information from MLS data? A. Realtor.com B. Zillow.com C. Trulia.com D. All above ```

``` The most common reason to terminate a lease or rental agreement is: A. Condemnation B. Unlawful detainer C. Expiration of the term. D. Destruction of the premises ```

``` Which of the following is NOT prorated in escrow? A. Rents B. Title insurance C. Property taxes D. Interest ```

If you are a subcontractor and a notice of completion has been filed, a mechanic’s lien can be filed: A. Until 30 days after notice of completion B. Until 60 days after notice of completion C. Until 190 days after notice of completion D. None above

``` 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? A. $21,750 B. $18,125 C. $10,875 D. $5,438 ```

``` A clause allowing an owner to continue using property in a way that is now prohibited by new zoning is called: A. A conditional use permit B. Police power C. A grandmother clause D. A grandfather clause ```

``` As of 2014, a federal estate tax return must be filed for any U.S. resident whose gross estate exceeds: A. $5,000,000 B. $100,000 C. $50,000 D. All above ```

``` A money debt that an owner agrees to pay is a(n): A. Involuntary lien B. Voluntary lien C. Detrimental lien D. Convertible lien ```

``` An outdated kitchen would be an example of: A. Functional obsolescence B. Functional depreciation C. Economic obsolescence D. None above ```

``` The substitution, by agreement, of a new contract for an existing one with the intent to cancel the old contract, is know as: A. Mutual consent B. Assignment C. Novation D. None above ```

``` What is the term used when a person leasing a property remains after the expiration of the stated term? A. Estate for years B. Estate from period-to-period C. Estate at will D. Estate at sufferance ```

``` In order to record a deed or trust deed, a notary requires: A. The recorder’s birth certificate B. The property’s latest tax assessment C. The brokers license number D. The recorders right thumbprint ```

``` A real estate license for both a salesperson and a broker must be renewed every: A. Two years B. Three years C. Four years D. Five years ```

``` The greatest and most complete form of ownership known to the law is: A. Estate at will B. Estate for years C. Estate in fee or fee simple D. None above ```

``` One-half of a section has how many acres? A. .05 B. 160 C. 320 D. Zero ```

``` What is the procedure used for transferring the deceased’s property to his or her heirs if there is no will? A. Intestate succession B. Accession C. Escheat D. Prescription ```

``` The bottom portion lining a doorway or window is the: A. Joist B. Sill C. Ridge board D. Flashing ```

The federal safe act of 2008 requires all persons/entities performing acts such as mortgage loan originators to be registered with and/or licensed through the: A. Securities and exchange commission (SEC) B. Consumer protection bureau (CPB) C. Nationwide mortgage licensing system and registry (NMLS/NMLS&R) D. All above

Real Estate principles Flashcards

(200 cards)