test qestions

Question 1

Which of the following would not make a contract voidable?

• Duress
• Undue influence
• Illegal purpose
• Fraud

Answer 1

C

Question 2

Although a title insurance policy does cover the risk of loss for many reasons, which of the following risks is not covered in a title insurance policy?

• Failure of husband or wife to sign the deed
• A zoning ordinance, regulation or plan
• A document in the series records in forged
• An unpaid city tax not shown in the policy

Answer 2

B

Question 3

According to the Department of Real Estate regulations, it would be considered commingling if a broker:

• deposits into the trust fund account a renter’s check for the security deposit on an income property the brokers owns.
• leaves funds owned to him as commissions in his trust fund account for three weeks.
• deposits funds received from two different individual buyers into the same trust account.
• deposits $200 of his own money into trust account to cover bank fees on that account

Answer 3

A

Question 4

The position of a building on its site in relationship to its surrounding is normally referred to as its:

• Topography
• Orientation
• Plottage

Answer 4

B

Question 5

The effective date of a real estate purchase contract is the date that:

• the sellers accepts the offer.
• the security deposit was made
• the acceptance is communicated to the buyer
• the offer is made

Answer 5

C

Question 6

When may a real estate broker, serving as agent of the seller, refuse to transmit an offer to the principal:

• When the broker is acting as a gratuitous agent
• Never
• When the broker is acting on the express instructions of the principal in his refusal;
• When the owner has already accepted a “back-up’ offer

Answer 6

C

Question 7

Real property taxes become a lien on:

• February 1st
• July 1st
• January 1st
• November 1st

Answer 7

C

Question 8

When must all the listings in an office be renegotiated?

• if the couple gets divorced
• if there are multiple offers
• if the broker dies
• A listing can never be renegotiated

Answer 8

C

Question 9

Sara is a newly licensed broker and has just opened her own office. How long must she keep transaction records?

• 3yrs
• 2yrs
• 4 yrs
• 1 year

Answer 9

A

Question 10

When selling a business, real estate brokers need to know that the term successor’s liability involves certain obligations to the:

• Department of Corporations.
• Internal Revenue Service.,
• State Board of Equualization.
• Bureau of Real Estate.

Answer 10

C

Question 11

Personal income taxes are structured using rates that are;

• regressive
• progressive
• equal
• level

Answer 11

B

Question 12

Four months ago, a seller entered into a legally binding written contract to sell his property. Later, the seller refused to complete the transaction since he felt the value of the property would increase in the near future. Under these circumstances, the Statute of Limitations could affect the rights of the buyer to prevail in a civil action due to a breach of the written contract within;

• Four years
• One year
• 90 days
• two years

Answer 12

A

Question 13

Conventional loans are made from

• Fannie mae funds
• private source
• FHA funds
• Home Owners Loan Corporations

Answer 13

B

Question 14

On an escrow closing statement, an existing mortgage that is to be assummed by the buyer is treated as;

• A credit to the seller
• all of the other options are correct
• a credit to the buyer

a debit to the buyer

Answer 14

C

Question 15

A personal, revocable, non- assignable right to use the property of another is called:

• a license
• an option
• the lease
• an easement

Answer 15

A

Question 16

Procuring cause would not be required for a broker to receive a commission in a(n)

• open listing
• net listing
• exclusive right to sell listing
• exclusive agency listing

Answer 16

C

Question 17

An unlicensed personal assistant working for a licensed broker may do which of the following activities?

• Write ads and submit them to the newspaper and online approved by the broker.
• Write up an offer for a buyer and then have the broker sign the contract later.
• Host open houses
• Email brokers weekly updates to the broker’s clients

Answer 17

A

Question 18

Which of these is an example of external obsolescence?

• Vacant, abandoned, and run-down buildings in an area
• Numerous pillars supporting the ceiling in a store.
• Coal cellar in a house with central heating
• Leaks in the roof of a wearhouse, making the premises unusable and therefore un-rentable

Answer 18

A

Question 19

Which of the following individuals holds a license and is therefore not entitled to a claim of adverse possession?

• A person who held property for five years after “inheriting” it from a parent who was in adverse possession for ten years.
• A person who has been parking his car on a neighbor’s property for 20 years without permission
• A person who has been in possession of the property for 19 years.
• A person who has permission to enter an orchard and has been taking apples every year for 30 years

Answer 19

D

Question 20

Zoning ordinances control the use of privately owned land in several ways. Which of the following ways is NOT a zoning control?

• Restricting the area in which a building may occupy
• Providing for control of rentals
• Regulations land-use
• Restrictive heights of buildings

Answer 20

B

Question 21

An easement appurtenant to real property can be terminated by all of the following EXCEPT

• revocation by the servient owner
• prescription by the servient owner
• merger of both the servient and dominant parcels.
• released by the dominant tenement owner

Answer 21

A

Question 22

A partition suit is used for which of the following?

• to allow construction of party walls
• determination of party fences
• to change a tenancy by entireties to some other form of ownership
• to force a division of property without all the owners consents

Answer 22

D

Question 23

When an appraiser is appraising a property he usually considers all of the following except:

• The assessed value
• The property rights to be valued
• A definition of value
• The property identification

Answer 23

A

Question 24

Involuntary methods of conveying property include all of the following EXCEPT:

• Quitclaim
• Adverse possession
• escheat
• condemnation

Answer 24

A

Question 25

A bill of sale is used to transfer the ownership of what? - personal property - real property - fixtures - appurtemamces

Answer 25

A

Question 26

In the formation of contracts, "valuable," "good," "sufficient." and "adequate" are terms most closely associated with which of the following? - Consideration - Bilateral contract - Compensation - Preformace

Answer 26

A

Question 27

The effectiveness of the market data approach is limited most by which of the following factors? - The difference in the comparable property - Economic conditions that rapidly change - The financing terms of comparable property - Types of property that are regularly sold

Answer 27

B

Question 28

In some states, the instruments used instead of a mortgage is a: - Promissory note - Release deed - Negotiable instrument - Deed of Trust

Answer 28

D

Question 29

One example of an easement in gross is the right of: - Owners to cut across their neighbor's property - Utility companies to access a property in order to maintain wires or pipes - Owners to use the neighbor's backyard for their own recreation - A roofing company working on repairs to store some of their equipment in the neighbor's yard.

Answer 29

B

Question 30

Which of the following would be classified as a general lien? - Mechanic's lien - Property tax lien - Judgment - Real estate property tax lien

Answer 30

C

Question 31

The difference between the value of a property and the total amount of liens against in is known as - collateral - a down payment - equity - actual cash value

Answer 31

C

Question 32

A township contains only: - 640 acres - 36 sq yards - 23,040 sq feet - 36 sections

Answer 32

D

Question 33

A broker accepts an exclusive authorization and right to sell listing from a corporation. During the listing term, all of the officers of the corporation die. in this case - the listing is automatically terminated - The listing must be acknowledged by the newly appointed officers - the listing must be signed by the corporation's board of directors - the listing remains in full effect.

Answer 33

D

Question 34

A property owner conveys a life estate to his brothers's lifetime and designates his cousin as the person to whom the property will pass when the life estate ends. When the brother dies what happens to the property? - The property passes to the brother's heis - The property owners must designate a remainderman for the property - The cousin automatically becomes the fee simple owner of the property - The property reverts back to the original property owner - The

Answer 34

C

Question 35

A landowner sells one acre of this two-acre property to a friend. He reserves for himself an appurtenant easement over the friend's land for ingress and egress. The landowner's property is: - The dominant tenement - the servient tenement - is subject to an easement in gross - cleared of the easement when the landowner sells the remaining acre to a third party

Answer 35

A

Question 36

The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the: - amortization ration - debt to equity ratio - capital use ratio - loan to value ratio

Answer 36

D

Question 37

Part of the consideration offered to a seller when the buyer signs an agreement of sale is called: - an option. - a recognizance - earnest money - a freehold estate

Answer 37

C

Question 38

For the past 30 years, the Seddons continue to operate a neighborhood grocery store. Last week, the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Seddons grocery store is now an example of a(n) - violation of eminent domain - non-conforming use - illegal enterprise - variance of the zoning laws

Answer 38

B

Question 39

The principle of appraising, which states that the maximum value is achieved when the property is in harmony with its surroundings, is the principle of - conformity - highest and best use - contribution - competition

Answer 39

A

Question 40

A buyer, joe, and a seller, Stephen, both sign a purchase contract. What kind of title interest, if any does joe have in the property at this point? - ALTA - Equitable - Legal - Defeasible

Answer 40

B

Question 41

Real property can become personal property by the process called - attachment - severance - hypothecation - accretion

Answer 41

B

Question 42

A normal size section in the Government Rectangular Survey System contains: - 36 sq miles - 6 sq miles - 1 sq mile - 160 acres.

Answer 42

C

Question 43

A possessory right or ownership interest in real estate is called an - abstract of title - ad valorem - estate - affidavit

Answer 43

C

Question 44

Which of the following describes a transaction broker? - The broker represents the seller in the transaction - The broker represents both the buying and selling parties - The brokers represent the buyer in the transaction - The broker does not represent either party but provides general information and services to each.

Answer 44

D

Question 45

How much is intangible tax on a real estate purchase mortgage? - .002 - .5 - 1 - 5.00

Answer 45

A

Question 46

An agency contract is being terminated. In which scenario might there be damage owned to one of the parties? - The owners discharge the agent because she was not acting in their best interest - The agency files for bankruptcy - The property owner discovers another claim on the title of the house. - The agent resigns form the contract because he is overloaded with homes to sell.

Answer 46

D

Question 47

Foreclosure occurs when a ____ seizes and sells a borrower's______ after the borrower has failed to _____ the lender - bank, personal property, appreciate - lender, home, alert - lender, collateral, repay - bank, property, notify

Answer 47

C

Question 48

Reversion of title is a feature of what type of interest? - Fee simple - Fee simple condition precedent - Fee simple condition subsequent - Fee simple determinable

Answer 48

D

Question 49

The Transfer Disclosure Statement (TDS) form is required on: - the sale of a one-to-four unit residential property - the sale of a commercial building - all foreclosure sale - the sale of vacant land

Answer 49

A

Question 50

When a purchase agreement state the property is being sold "as is," it: - still requires the buyer to receives a Transfer Disclosure Statement (TDS) nothing any material facts which affect the property's value - puts the buyer on notices they should beware - underscores the fact the nothing is warranted - releases the seller of the requirement to deliver a TDS to the buyer or make and disclosures about the condition of the property

Answer 50

A

Question 51

An unlawful detainer (UD) action is instigated by: - a grantor - a trustee - a lessor - a real estate broker

Answer 51

C

Question 52

A transaction broker - Provides limited representation to a buyer and seller - Has fiduciary duites - Has a principal relationship - Is a single agent

Answer 52

A

Question 53

When inspecting a residence in a hillside subdivision, the salesperson observes cracks in the foundation and notices the doors and windows do not close properly. As a matter of best practice the sales person references their observation in the Transfer Discloser recommends that which of the following be ordered? - A home warranty policy - A special studies report - A soil engineers inspections - A termite clearance -

Answer 53

C

Question 54

Designated sales associates can be assigned in a non-residential transaction if - FREC appoints them - The broker signs off on it - The buyer and seller each have assets of $1 million dollars or more - A No Broker Relationship disclosure is signed

Answer 54

C

Question 55

A homeowner is buying a new home but hasnt sold their old one. Which type of loan would they obtain in the short term and pay back as soon as their old house is sold? - Swing - home equity - wraparound - sale-leaseback

Answer 55

A

Question 56

The American with Disabilities Act of 1990 would affect which of the following - a third floor apartment in a newly constructed apartment complex - an existing business with 20 employess - a single family home - multi-family home with three units

Answer 56

B

Question 57

According to HUD standards, which of the following would be an acceptable neighborhood advertisement? - Traditional living - exclusive neighborhood - Muslim-friendly - senior housing

Answer 57

D

Question 58

____ is when individual can be paid for brokering a real estate transaction, yet represent neither the buyer nor the seller - situational brokerage - transactional brokerage - divisional brokerage - individual brokerage

Answer 58

B

Question 59

Some states have ____ that require agents to disclose who they are representing to the buyer - agent identification clauses - agency disclosure laws - agency branding laws - agent identification laws

Answer 59

B

Question 60

Potential gross income minus vacancy and collection losses is - Effective gross income - Net income - Total income - Potential income

Answer 60

A

Question 61

Jim the sales associate receives an escrow deposit on Tuesday when is the deadline to turn it over to his broker? - wednesday - thursday - friday - saturday

Answer 61

A

Question 62

Tanancy by the entireties convey title at the same time and must be - Husband and Wife - Unequal percentage - Tenants in common - Undivided interest

Answer 62

A

Question 63

Which of these would determine if there is encroachment on a property? - survey - easement - ejectment - appraisal

Answer 63

A

Question 64

Which document outlines the environmental effects that are caused by new development? - Environmental Development Report - Environmental Impact Report - Environmental Project Report - Environmental Risk Report

Answer 64

B

Question 65

Market value is different from market price in that market price __ - is taxable and market value is not - is a fact that has actually occurred - is not an actual value, but just an idea - is always 10% below market value

Answer 65

B

Question 66

The sales comparison approach to valuation is directly related to___ - Market investment return rates - all pending, canceled and short-sale listings - the quality and amount of sales data available - the principle of anticipation

Answer 66

C

Question 67

Which of the following is not a typical obligation of the mortgagor - Maintain the property - Keep a hazard insurance policy in force - Get permission for alterations - Advise the mortgagee of a change in the escrow account balance

Answer 67

D

Question 68

When estimating the value for a particular piece of property, an appraiser will not investigate ___. - environmental factors - social factors - physical factors - future factors

Answer 68

D

Question 69

Restrictive covenants that run with the land: - apply only until the developer has conveyed the title - apply to and bind all successive owners of the property - can be removed by a court of competent jurisdiction. - are no longer effective when the title is transferred.

Answer 69

B

Question 70

One of the main benefits of a sale-leaseback transition would be; - The ability of the seller to deduct all of his future rent payments as business expenditures - You have the option to lease a property back after the termination of the lease - The ability to maintain the book value of the new buyer - You can get the deposit back with no objection

Answer 70

A

Question 71

When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it? - Mortgagee - Trustee - Trustor - Beneficiary

Answer 71

C

Question 72

Which of the following is NOT necessary for acquiring title to a property by adverse possession? - occupying the property for at least five years - A claim of right - Residing on the property - " Open and notorious use"

Answer 72

C

Question 73

Which of these BEST describes the capitalization rate under the income approach to estimating the value of real estate? - Maximum rate of return allowed by law on an investment - Rate of capital required to keep a property operating most efficiently - Rate of return a property earns an as investment - Rate at which a property increases in value

Answer 73

C

Question 74

Broker Bob entered into an oral listing with a seller without subsequent written verification. As to the payment of a commission to broker Bob it is: - a criminal violation of the law - prohibited by rules and regulations of the commissioner. - contrary to public policy - permissible if the seller elects to do so.

Answer 74

D

Question 75

A trust deed can have a provision that allows future loans on the property to have priority. This would be called: - A release clause - An acceleration clause - A subordination clause - An assignment clause

Answer 75

C

Question 76

Which of the following is not a characteristic of a conventional loan? - It is never by a private agency - The ration of the loan to the value of the property usually does not exceed 80% without private mortgage insurance. - It is neither insured nor guaranteed by public agency - Security rests on the borrower's ability to pay and collateral pledge.

Answer 76

A

Question 77

A section - has a perimeter of 5,280 - contains 460 acres - is one sq mile - can be numbered from 1 through 50

Answer 77

C

Question 78

Which of the following would be paid before any homestead exemption is applied? - none of the other options are correct - Property taxes, a deed of trust and any mechanics lien - A deed of trust and mechanics lien - Property taxes

Answer 78

B

Question 79

There are three phases of steps involved in the construction of a single family residence. These three steps are: - Land acquisition, construction and zoning approval - Land acquisition, map and plan approval and construction - Map and plan approval, construction and buyer approval - Subdivision map approval, building permits and creation of CC&Rs

Answer 79

B

Question 80

A real estate agent wrote an offer for a buyer. The buyer was primarily interested in this particular home because it was located in a very good school district. The deposit receipt did not make the offer contingent upon the school district. The offer was accepted and escrow was opened. During escrow, the buyer discovers the school district had just been changed and now the home is located in a poor school district. Which of the following is true? - Buyer is not obligated to buy - Buyer has the right to rescind - Buyer is bound to the contract - Buyer can back out

Answer 80

C

Question 81

When a mortgaged home appreciates in value, the value accrues to the benefit of: - the beneficiary - the trustor - mortgagee - the trustee

Answer 81

B

Question 82

A recorded legal document that gives constructive notice that an action affecting a certain property has been filed in court called: - a habendum clause - an estoppel certificate - A lis pendens - a general warrenty deed.

Answer 82

C

Question 83

When is it permissible for a licensee to fill out the seller's portion of the Transfer Disclosure Statement (TDS) on his own, without the seller's involvement? - Never - When the seller has not had the opportunity to visit the property - When the buyer signs a waiver - When the seller has given written permission.

Answer 83

A

Question 84

One of the main difference between real and personal property is that real property: - is immovable - Can be willed - Can be held in joint tenancy - Is subject to depreciation over a period of time;

Answer 84

A

Question 85

Which act requires that "reasonable accommodation" be made in public for the entire public? - Equal Opportunity Act - Civil RIghts Act - Fair Housing Act - Americans with Disabilities Act

Answer 85

D

Question 86

Broker Dave has an exclusive agency listing to sell a $200,000 home for owner Jones. Before the listing expires, the home was sold through Jones' own efforts to a friend. Jones refused payments of any commission to broker Dave. Dave is legally entitled to a transaction commission of: - the entire agreed-upon commission - Nothing - all expenses incurred while advertising the property - one-half of the agreed-upon commission

Answer 86

B

Question 87

Discrimination is prohibited in leading practices under: - ECOA - RESPA - FNMA - Truth in Lending Act

Answer 87

A

Question 88

When the owner of a property believes that her property has been over assessed by the county assessor, she should contact the: - County Board of Supervisors; - County Tax Collector's Office - Assessment Appeals Board; - State Controllers Office;

Answer 88

C

Question 89

Ownership rights and interests in real property are determined in a: - civil action suit - quiet title action - judgment lien - suit for specific performance.

Answer 89

B

Question 90

The most important test of a fixture is: - adaptability of the item - cost of installation - method of attachment - intention of the parties

Answer 90

D

Question 91

The position of trust assumed by the broker as an agent for the client is described most accurately as a - trustor relationship - confidential relationship - trustee relationship - fiduciary relationship

Answer 91

D

Question 92

An agreement wherein one party agrees to reimburse the other party for damages suffered in the event of a clearly defined risk, in exchange for payment of monetary consideration, is commonly known as: - A fidelity bond - An insurance policy - A management agreement - A lease agreement

Answer 92

B

Question 93

When is it permissible for a licensee to fill out the sellers portion of the TDS own his own, without the seller's involvement. - When the seller has not had the opportunity to visit the property - Never - When the buyer signs a waiver - When the seller has given written permission

Answer 93

B

Question 94

Which of the following would alienate title to property? - Recording a homestead - Securing an ALTA policy of title insurance - Conveying title - Clouding the title

Answer 94

C

Question 95

Ingress and egress apply to: - deed restrictions - zoning - homestead - easement

Answer 95

D

Question 96

Susan who is a buyer, has entered into an agreement with more than one buyer's agent at the same time but owns compensation only if she uses the services of a buyer's broker. Susan's arrangement is known as a(n): - exclusive right agreement - open agreement - exclusive agency agreement. - multiple-listing agreement

Answer 96

B

Question 97

What type of an appraisal license is required to appraise a commercial strip mall valued at $700,000 - Certified residential license; - Certified general license; - Residential real estate license; - Retail appraisal License;

Answer 97

B

Question 98

A buyer defaulted on a real property installment sale 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; - Buyer and the Seller - Seller only - Neither the Buyer or the Seller - Buyer only

Answer 98

D

Question 99

When an owner is selling his or her home, to whom would they most likely give a copy of a structural pest control report? - To the escrow company - To the broker or salespeople representing potential buyers - To the buyer, if requested - Their broker, at the time of listing

Answer 99

C

Question 100

An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is an elegant old mansion that is now leased out as a restaurant. To which approach to value should the appraiser probably give the greatest weight when making this appraisal? - Income - Replacement cost - Sales comparison - Reproduction cost

Answer 100

A

Question 101

Copies of termite reports filed with the structural pest control board within the preceding two years can be obtained upon request by: - a real estate licensee - a licensed lender - anyone - the owner of the home

Answer 101

C

Question 102

A square is 1/8 of a mile by 1/8 of a mile. How many acres is this? - 20 acres - 160 acres - 10 acres - 40 acres

Answer 102

C

Question 103

Which of the following is created when possession and title do not occur at the same time? - Writ of execution - Interim Occupancy Agreement - Estate at Sufferance - Subordination clause

Answer 103

B

Question 104

The main purpose of "RESPA" (Real Estate Settlement Procedures Act) is to: - To standardize settlement services through out the United States - To provide consumers with enough information to enable them to shop for settlement services - Place a fixed limit on settlement cost in all real estate transactions - Place a fixed limit on settlement cost on residential property of four units of less

Answer 104

B

Question 105

When a judgment is rendered, how long does a creditor have to enforce it/ - 5 years - 1 year - 20 years - 6 months

Answer 105

C

Question 106

A person agrees to sells a property for $500,000. The buyer gives the seller $150 as valuable consideration for a six-month option. Which of the following statement is true? - The $150 is valuable consideration if the seller accepted it - The seller cannot accept money for the option - The buyer must have at least 5% down as valuable consideration - The buyer must have at least 20% down.

Answer 106

A

Question 107

Any lease that names a specific termination date is an; - joint tenancy - estate at will - Periodic Tenancy - estate for years

Answer 107

D

Question 108

A promissory note: - is an agreement to preform or not to perform certain acts - is the primary evidence of a debt - is a guarantee by a government agency - may not be executed in connection with a real estate loan

Answer 108

B

Question 109

The quantity survey method; unit-in-place method; and the square or cubic foot methods in real estate appraisal most directly related to: - The sales comparison approach - The income approach - The cost approach - All of the other options are correct

Answer 109

C

Question 110

The relationship between a property and a prospective purchaser is known as: - value - progression - highest and best use - utility

Answer 110

A

Question 111

When real property is held by husband and wife as community property, an agreement to sell that property that has been signed by only one spouse is considered; - illegal - binding - a violation of the Stature of Frauds - unenforceable

Answer 111

D

Question 112

A deed conveys ownership to the grantee "as long as the existing building is not torn down. "What type of estate does this deed create? - Nondestructible estate - Fee simple absolute estate - Determinable fee estate - life estate pur autre vie, with the measuring life being that of the building

Answer 112

C

Question 113

For federal income tax purposes, capital expenditures for improvements: - Cannot be depreciated over the remaining life of improvements - Are subtracted from the "cost basis" of the property - Are deducted in full as expenses that year - Are added to the "Cost Basis" of the property and depreciated

Answer 113

D

Question 114

Carol Padilla is a real estate salesperson employed by Vitality Properties, She sells a home listed by another broker, Amplify Realty. After escrow was opened, but before closing, she ask Amplify broker for a $1,000 advance against her commission. What happens if the Amplify agrees? - It will be viewed as unprofessional, but not illegal - The broker can advance the money to Carol's broker who can then give her the advance - Nothing, its simply an advance against earnings between two real estate professionals - It will be a violation of real estate law.

Answer 114

D

Question 115

Which of the following provides a buyer with the best assurance of clear, marketable title? - general warranty deed - certificate of title - title insurance - abstract of title

Answer 115

C

Question 116

A Negative Declaration is: - a positive response to an Environmental Impact Statement - a negative response to an Environmental Impact Statement - a positive response to a Transfer Disclose Statement - a negative response to a Transfer Disclose Statement

Answer 116

A

Question 117

Which of the following statements about options is false? - Consideration must be given by the optionee to the optionor - A lease option is a unilateral contract - The option binds the optionee to the performance - The optionee does not have any rights to the land

Answer 117

C

Question 118

During escrow, if an unresolved dispute should arise between the seller and buyer preventing the close of escrow, the escrow holder may legally: - Rescind the escrow and return all documents and monies to the respective parties - Consider the contract null and void - File an interpleader action in court - Arbitrate the dispute as a neutral party

Answer 118

C

Question 119

A licensee needs 45 hours of continuing education to renew his/her licenses, how many hours must be consumer protection? - 24 - 30 - 12 - 18

Answer 119

D

Question 120

The real estate financing instrument which transfer equitable title to real property, but retains legal title in the seller, is call: - A trust deed - A mortgage - A real property conditional installment sale contract - A security agreement

Answer 120

C

Question 121

Regarding a promissory note when getting financing: - The promissory note is not part of the deed of trust - The deed of trust secures the promissory note - The grant deed secures the promissory note - A promissory note secures the deed of trust

Answer 121

B

Question 122

When judgment is rendered, how long does a creditor have to enforce it? - 20 years - 5 years - 6 months - 1 year

Answer 122

A

Question 123

Malcom is buying a residence. After signing a valid agreement for sale, he asks the broker for permission to move into the property before the sale closes. The broker should: - Deny the buyer permission and get it in writing - Deny the buyer permission - Get written permission from the seller - Tell the buyer he is an idiot and seller is an idoit if he lets you move in,

Answer 123

C

Question 124

What do liens and easements have it common? - Both must be on public record to be valid - Neither can be done without the consent of the owner - Both are money claims against the property - Both are encumbrances.

Answer 124

D

Question 125

The seizure of property prior to a judgment is known as: - excessive force - an attachment. - serving the judgment - a seizure execution

Answer 125

B

Question 126

Which of the following statements concerning typical land sale contracts is correct? - The land sale contract is similar to a lease in that the buyer had a right of possession but no rights in the title - The buyer is usually not responsible to pay their property taxes until the seller has delivered a deed to the property. - Land sale contracts are the least secure method of financing for the buyer because the seller retains the title and the buyer is merely the equitable owner. - The buyer has absolute assurance of receiving title upon performance of contract.

Answer 126

C

Question 127

One document, which requires verification and recording for its validity, is a: - mechanic's lien - Transfer Disclosure Statement - Notice of default - Trust deed

Answer 127

A

Question 128

The position of a building on its site in relationship to its surroundings is normally referred to as its: - Orientation - Plottage - Elevation - Topography

Answer 128

A

Question 129

The Equal Credit Opportunity Act makes it illegal for lenders to refuse credit to or otherwise discriminate against - a new homebuyer who does not have a favorable credit history - a parent of twins who receives public assistance and who cannot afford the monthly mortgage payments - an unemployed person with no job prospects and no identifiable source of income - a single person who receives public assistance.

Answer 129

D

Question 130

Which if these terms BEST describes a transaction whereby possession of real estate is transferred to another party without transferring ownership? - Riparian right - sublease - sale-leaseback - assignment

Answer 130

B

Question 131

Which of the following activities is a violation of the Federal Fair Housing Act? - discrimination in the sale of a warehouse based on the prospective purchasers gender - a nonprofit church that denies access to its retirement home to any person because of race - the owner of a single-family residence selling his/her own home who gives preference to a buyer based on his/her sex - a nonprofit private club that gives preference in renting units to its members at lower rates

Answer 131

B

Question 132

The term "security interest" is best defined as: - the internet on an insured mortgage - the use of stocks and bonds or other securities and collateral for a loan against real property - the interest payments on a conventional loan - the creditors interest in the debtors property

Answer 132

D

Question 133

Which of the following statements is most correct: - Property is deeded to the state on July 1 if the property taxes for the prior year were not paid - The delinquent property tax payer must make monthly payments to the state during the statutory redemption period - The real effect of a "sale to the state" by the tax collector is to start the redemption period running, but the delinquent owner remains in possession for five years. - The property is automatically deeded to the state if the property is not redeemed within the first three years

Answer 133

C

Question 134

The quantity survey method; unit-in-place method; and the square or cubic foot methods in real estate appraisal most directly related to: - The income approach - The sales comparison approach - The cost approach - All of the other options are correct

Answer 134

C

Question 135

Which of the following statements about real estate financing in California is INCORRECT? - Although a mortgage does not transfer legal title to the property, it is still considered a lien - Discounting a note indicates that it is being sold at less than the face value, or amount still owning on the principal - A promissory note is security for a mortgage The owner of a property who borrows and signs a mortgage is called a mortgagor

Answer 135

C

Question 136

Mortgage bankers typically; - will not act without the consent of their principles - do not finance construction loans. - are the ultimate lenders in most non-government loan transactions. - originate a larger number of loan transactions and then sell these mortgages at a discount to large investors in the secondary market

Answer 136

D

Question 137

Federal regulations on unsolicited email: - require commercial emails to include a physical address for the sender - require that email lists be scrubbed every 31 days - require prior permission of recipients in order to send email to them - exempt phone calls to individuals with whom the office has a prior business relationship

Answer 137

A

Question 138

When one party is substituted for another party in a contract, the process is appropriately called a: - Waiver - Rescission - Novation - Redaction

Answer 138

C

Question 139

Where in a standard narrative appraisal report would one likely find the type of value being estimated: - The declaration of restrictions - The neighborhood analysis - The property description - The statement of purpose

Answer 139

D

Question 140

A three-story apartment complex built in 1965 does not meet with the handicapped access provision for the 1988 Amendment of the Fair Housing Act. The owner must: - make the ground floor handicapped accessible - the owner doesn't have to comply since its less than 4 stories - make the 1st and 2nd floors accessible - make the entire building accessible

Answer 140

A

Question 141

When a real estate licensee fails to renew a license before it expires, the licensee: - is no longer eligible for a license - Has two years from the expiration to renew by paying a late fee, but will not be required to take the state exam again - Can receive a restricted license by paying the proper fees - will be required to pass the license exam again and pay the proper fees.

Answer 141

B

Question 142

An owner was selling his own home. Can he advertise the down payment? - No, because it violates RESPA - NO, because it violates Regulation Z - Yes--as long as it was listed with a broker - Yes, because it was his own home

Answer 142

D

Question 143

When a mortgaged home appreciated in value, the value accrues tp the benefit of: - the trustee - the trustor - the beneficiary - mortgagee

Answer 143

B

Question 144

Joe failed to make payments on his trust deed loan for two successive months and a notice of default has been recorded. He has - the Right of Redemption - lost all rights in regards to the property - the Right of Reinstatement - the right of reconveyance.

Answer 144

C

Question 145

The real estate agency disclosure form must be given to the parties in which of the following transactions? - sale of an office building - Exchange of an office building - Sale of a theater - Sale of a residential triplex

Answer 145

D

Question 146

In the market data approach to appraisal, any difference between the comparable and the subject property are handled in which of the following ways: - The subject property values are averaged to form a price range. - The comparable are adjusted to the characteristics of the subject property - The comparable are adjusted to a market average. - Subject property is adjusted to the standard set by the comparable.

Answer 146

B

Question 147

The type of mortgage loan which permits borrowing additional funds at a later date is called: - A junior mortgage - An open-end mortgage - An extendible mortgage - An equitable mortgage

Answer 147

B

Question 148

When an escrow agent holds the buyer's deposit money because of a dispute between buyer and seller, the escrow agent can release the funds in which of the following circumstances? - Upon receipt of written instructions signed by both buyer and seller - All options would allow escrow funds to be released - Upon receipt of an arbitrator's award - Upon receipt of a court ruling

Answer 148

B

Question 149

The party that is usually required to report the sale of a single family residence to the Internal Revenue Service in the: - Escrow - Seller- - Broker - Buyer

Answer 149

A

Question 150

The technical definition of real property includes: - method of acquisition - the right to possess and use to the exclusion of others. - chattel real - anything immovable by law.

Answer 150

D

Question 151

The Equal Credit Opportunity Act makes it illegal for lenders to refuse credit to or otherwise discriminate against - a single person who receive public assistance - a parent to twins who receives public assistance and who cannot afford the monthly mortgage payments. - a new homebuyer who does not have a favorable credit history. - an unemployed person with no job prospects and no identifiable source of income

Answer 151

A

Question 152

When an appraiser is comparing the economic life and physical life of a building, the economic life is usually: - the same length - longer than the physical life - impossible to determine - shorter than the physical life

Answer 152

D

Question 153

When a notice of default has been recorded on a trust deed, the borrower is given a period of time to reinstate the loan. During this time, the right of possession belongs to the: - beneficiary - trustor - mortgagee - trustee

Answer 153

B

Question 154

The primary survey line running north and south in the rectangular survey system is the - township - baseline - principle meridian - range line

Answer 154

C

Question 155

The unadjusted basis of a taxpayer's residence would be: - cost - cost plus improvements minus depreciation - cost plus improvements - cost minus improvements

Answer 155

A

Question 156

Which of the following is not essential to a valid deed? - A granting clause - It must be in writing - Grantor is legally competent - It must be acknowledged

Answer 156

D

Question 157

Palisades Construction is completing a new home and must be back-fill. What is back-fill - None of the other options are correct - Dirt, usually left over from excavation, that is used to fill in space around a foundation or other structure. - Dirt form an excavation that must be hauled off a property - Dirt or topsoil that is used to berm and create landscaping interest.

Answer 157

B

Question 158

Which of these governmental bodies regulates and control the "Subdivision Map Act" - Local agencies - The Department of Real Estate - The Department of Housing and Community Development - The real estate commissioner

Answer 158

A

Question 159

Which of the following would not terminate an agency relationship? - Revocation by the principle - Submission by the agent of two offers at the same time - Fulfillment of the agency purpose - Abandonment by the agent

Answer 159

B?

Question 160

An appraiser was contracted to determine the value of a large apartment building for a potential investor client. Which appraisal method is the Most useful for this type - income approach - The square foot method - Comparative market analysis - Cost approach -

Answer 160

A

Question 161

Property should be valued at its highest and best use. If an appraiser is appraising a parcel which has a building on the land that is no longer an asset, the appraiser should: - ignore the building in the appraisal. - establish the value using the cost approach - deduct the demolition cost form the appraisal - add the salvage value to the appraisal.

Answer 161

C

Question 162

It would be perfectly ethical for an appraiser to do which of the following: - Not disclose his interest if the property is under 2 units - Base the appraisers compensation on a percentage of the value estimate arrived at - Appraise a property in which the appraiser has an interest, provided the appraiser first discloses his interest. - Appraise a property in which the appraisers employment is made contingent upon reporting a minimum value

Answer 162

C

Question 163

Which of the following is required to operate as an advance-fee rental agent? - A real estate salesperson license - A written contract with prospective tenants - Access to the Multiple Listening Service - A real estate brokers license

Answer 163

B

Question 164

Joe and Susan own property as joint tenants. Susan then sells her interest to Carol. What is the relationship between Joe and Carol regarding the property - Joint tenants - Tenants by the entirety - No relationship exits because Susan cannot sell her joint tenancy interest - Tenants in common

Answer 164

D

Question 165

The annual percentage rate (APR) is defined by the Federal Truth-in-Lending Law as: - The total of only the direct cost of credit paid by borrower - Relative cost of credit expressed in percentage terms. - Total of all cost which the borrower must pay to get the loan - The total of only the indirect costs of credit which the borrower must pay

Answer 165

B

Question 166

Which of the following would alienate title property - Conveying title - Securing an ALTA policy of title insurance - Cloud the title - Recording a homestead

Answer 166

A

Question 167

Which transaction requires a securities license? - leasing a commercial building - selling a commercial warehouse - Arranging a sale-leaseback on a commercial property - selling shares in Fannie Mae

Answer 167

D

Question 168

An acceleration clause is inserted into a note that is otherwise negotiable. Adding this clause: - is required to be negotiable - makes the note non-negotiable - does not limit the negotiability of the note - has no effect on negotiability, but also is of no benefit to the holder of the note.

Answer 168

C

Question 169

The primary survey line running north and south in the rectangular survey system is the; - range line - base line - principal meridian - township line

Answer 169

C

Question 170

Which of the following statements is most accurate concerning mortgage bankers: - They are regulated solely by federal law - They negotiate loans which are readily saleable in the secondary mortgage market - They never lend their own money - They never make government backed loans

Answer 170

B

Question 171

The annual percentage rate (APR) is defined by the Federal Truth-in-Lending Law as: - Relative cost of credit expressed in percentage terms - The total of only indirect cost of credit which the borrower must pay - Total of all costs which the borrower must pay to get the loan - The total of only the direct cost of credit paid by borrower

Answer 171

A

Question 172

Which of the following is not a test for a fixture: - The agreement of the parties - The time of attachment - The intention of the parties - The method of attachment

Answer 172

B

Question 173

Which of the following is not a proper charge in determining net income for capitalization purposes: - Maintenance expenses - Vacancy and collection losses - Management agents fees - Mortgage interest

Answer 173

D

Question 174

Fault zones around known earthquake fault lines must be disclosed to prospective buyers of certain properties in California. Typically, these zone are: - 1/2 mile wide; - 3/4 mile wide; - mile wide - 1/4 mile wide;

Answer 174

D

Question 175

Pest control reports which contain information concerning wood destroying insects are kept on file with the : - Structural Pest Control Board. - Environmental Protection Agency - Department of Wood-Destroying Control - United States Department of Insect Control

Answer 175

A

Question 176

Personal property includes all of the following EXCEPT; - fixtures - chattels - emblements - fructus industriales.

Answer 176

A

Question 177

The Federal Reserve Board increases cash reserve requirements in order to: - sell bonds - decrease loan activity - increase loan activity - raise taxes

Answer 177

B

Question 178

Which of the following is not an essential to a valid deed? - it must be acknowledged - Grantor is legally competent - It must be in writing - A granting clause

Answer 178

A

Question 179

In California, one would look in which of the following documents to find the escrow law: - The California financial code - The business and professions code - The civil code - The Real Estate Law

Answer 179

A

Question 180

When negotiating a lease on behalf of a commercial real property landlord, the broker would usually calculate his commission as: - A percent of the rent due in the first year of the lease - none of the other options are correct - a percent of the rent due for the entire lease period - a percent of the first and last month's rent

Answer 180

C

Question 181

Just as his foreclosed property is about to be sold at public auction, the mortgagor appears with sufficient funds to prevent the sale by exercising his right of - habendum - umbrage - redemption - lis pendens

Answer 181

C

Question 182

A subdivision has a rule that each home in the neighborhood be at least 2,500 square feet. This is an example of which concept? - cooperative ownership - Fair Housing Law violation - restrictive covenant - homestead law

Answer 182

C

Question 183

Reversion of title is a feature of what type of interest? - Fee simple - Fee simple condition precedent - Fee simple condition subsequent - Fee simple determinable

Answer 183

D

Question 184

The lumber fir a deck that has not yet been built is - personal property - a fixture - a trade fixture - real extate

Answer 184

A

Question 185

Joan sells her house to her brother Mike on a handshake. This contact is: - valid only in certain states - illegal - valid because they are related - unenforceable

Answer 185

D

Question 186

Broker Bianca wants to change from a Single Agent relationship to a Transaction broker - She must get written permission from her principal - She may not do so - She must ask her broker - She must seek an attorney

Answer 186

A

Question 187

Which is a broker NOT required to have visible on their office sign? - Trade name - Lincensed Real Estate Broker - Broker Name - Adress

Answer 187

D

Question 188

Sean the tenant pays the landlord monthly rent and is NOT responsible for property taxes of insurance, Sean has which type of lease? - Ground Lease - Variable Lease - Net Lease - Gross Lease

Answer 188

D

Question 189

Which is not one of the "three c's of underwriting? - Credit - capacity - collateral - conformity

Answer 189

D

Question 190

Who is the typical reverse mortgage customer? - all of these - someone with a lot if equity in their home - someone without a lot of liquid capital - someone elderly

Answer 190

A

Question 191

According to HUD standard, which of the following would be a acceptable neighborhood advertisement? - traditional living - exclusive neighborhood - Muslim friendly - senior housing

Answer 191

D

Question 192

What is the main purpose of Regulation Z? - to let borrowers know the truth of credit - to lock the borrowers into a mortgage once the paperwork is signed - to set a minimum interest rate - to limit the amount consumers can be charged

Answer 192

A

Question 193

Under no circumstances may a real estate broker misrepresent a material fact to a buyer. If they do, the broker faces; - disciplinary action by the Department of Real Estate (DRE) - criminal action - civil action - Any of the above

Answer 193

D

Question 194

Potential gross income minus vacancy and collection losses is - Effective gross income - Net income - Total income - Potential income

Answer 194

A

Question 195

Which of the following condition would not cause a building to be decaled uninhabitable? - Dampness in the habitable room - Electrical wiring that is safe and working property but does not comply with present building codes - There is no heating in the entire property - A broken window at the back of the house.

Answer 195

B

Question 196

Which of these would determine if there is encroachment on a property? - survey - easement - ejectment - appraisa;

Answer 196

A

Question 197

Which of the following is not a typical obligation of the mortgagor? - Maintain the property - Keep a hazard insurance policy in force - Get permission for alterations - Advise the mortgagee of a change in the escrow account balance.

Answer 197

D

Question 198

Interest paid on the accrued interest as well as the principle is called - compensating interest - simple interest - exponential interest - compound interest

Answer 198

D

Question 199

You may need to know the value of the house you inherited - for income tax purposes - for real valuation purposes - for appraisal tax purposes - for estate tax purposes

Answer 199

D

Question 200

A state certified appraiser is conducting an appraisal of a library building surrounded by several acres of land belonging to the property. In determining the value of the land itself, the appraiser will most likely use the - cost approach - income approach - reproduction cost - sales comparison approach

Answer 200

D

Question 201

It is necessary to calculate a dollar value for depreciation when using which of the following - Gross rent multiplier - the cost approach to value - the income approach the value - the sales comparison approach to value

Answer 201

B

Question 202

You are preparing a comparative market analysis on a vacant lot that you hope to list for sale. Which of the following approaches to value should be used in the development of the estimated value? - Gross rent multiplier - Cost approach - Sales comparison approach - Income approach

Answer 202

C

Question 203

What does a standard title policy insure against? - an easement by prescription - a recorded deed in the chain of title that was not properly delivered - claims of persons who are in possession of the property - losses taken by improved real property

Answer 203

B

Question 204

Real estate agent Lois does not belong to any trade organization (real estate board) and is using the tagline " A New type Realtor," This Practice is: - correct. All she has to do is not capitalize the "R" in realtor - A violation of the Truth in Lending Act - none of these - cause for her license to be revoked or suspended

Answer 204

D

Question 205

Is it acceptable to use the address 15001 River Way for a legal document pertaining to a real estate transaction? - It is acceptable, however getting a loan for the property may be challenging - It is acceptable - A street address is not considered a legal description of the property - It is acceptable, but title insurance companies may choose not to insure the property

Answer 205

C

Question 206

The provisions of the Federal Fair Housing Law (Title Vlll of the Civil Rights Act of 1968) allow for plaintiffs of discrimination to file: - all of these - civil action in state or local courts - civil action in federal court - a complaint with HUD

Answer 206

A

Question 207

What year was the transfer disclosure statement amended to include the disclosure of the presence of a carbon monoxide detector in the property? - 2011 - 2012 - 2010 - 2015

Answer 207

C

Question 208

Type of financing wherein the seller is financing the buyer. - creative financing - hybrid financing - carryback financing - interim financing

Answer 208

C

Question 209

The liquidation of a financial obligation on an installment basis commonly termed: - coveyance - acceleration - amortization - condemnation

Answer 209

C

Question 210

The lender is required under the Truth-in-Lending Act (Reg Z) to furnish an applicant for a real estate loan with a copy of a(n) - Deed - Disclosure statement - Financial statement - Amortization schedule

Answer 210

B

Question 211

The statement signed by the mortgagee which acknowledges that a loan has been pain in full is called - an assertion of derangement - a release lien - an estoppel certification - a satisfaction of mortgage

Answer 211

D

Question 212

Which of the following Laws prohibits discrimination in the buying, selling renting or financing of housing. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality and more - The fair Housing Act - The Equal Credit Opportunity Act (ECOA) - The Civil Rights Act of 1866 & 1964 - The Smart Opportunity and Housing Act

Answer 212

A

Question 213

Used in connection with CERCLA and the creation of The Superfund; Retroactive liability means; - all previous owners are not held accountable for the hazardous waste site - all previous owners also can be held accountable for the hazardous waste site. - the last two previous owners also can be held accountable for the hazardous waste site - the last three previous owners also can be held accountable for the hazardous waste site.

Answer 213

B

Question 214

A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers. - Civil Rights and Business Laws - Business and Ethics Laws - Civil Rights Laws - Antitrust Laws

Answer 214

D

Question 215

Compliance with zoning ordinances is monitored through the issuance of - buffer zones - CCR'S - Covenants - zoning premits

Answer 215

D

Question 216

What is the biggest difference between private and public land use control? - private land use controls are written in the constitution while public are up to the local governments. - public land use controls are written in the constitution while private are up to the local government - the government does not write or enforce private land use control but it does impose and enforce zoning. - the government writes or enforces private land use controls but it does not impose and enforce zoning.

Answer 216

C

Question 217

Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the tress are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, by he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mrs, Joe to stop his actions until they can work something out. What type of court order us this? - A temporary protective order - An authorized dispute order - An injunction - An easement

Answer 217

C

Question 218

An agent took a listing and later discovered that her client had previously been declared incompetent by the court. The listing is now - Unaffected because the agent was acting as good faith as the owner's agent - unaffected because her client took the listing making it a verbal contract. - of no value to the agent because the contract is void - renegotiable by both parties

Answer 218

C

Question 219

Which situation is legal under the Federal Fair Housing Act of 1968 - The insistence of a widowed woman on renting her spare bedroom only to another widowed woman - The intentional neglect of with holding certain property's to your client to buy for yourself. - The refusal of a property manager to rent an apartment to a Catholic couple who are otherwise qualified. - The ability to buy a property with the intent tp resell it to your mother in law for double the price

Answer 219

A

Question 220

A legal way to dissolve the relationship when the parties don't voluntarily agree to its termination is called - disbursement - divorce - partition - parceling out

Answer 220

C

Question 221

One individual or married couple in business alone (The most common form of business structure); - Sole proprietorship - Limited partnership - single co-operation - (LLC) or Limited Liability Company

Answer 221

A

Question 222

"Capitalization" is a process used to: - Determine the net income - Establish the market value - Find the interest rate - Convert income into value

Answer 222

D

Question 223

Alicia and Joe built two home at the same time that are adjacent to each other, and each house was built for the same cost. If the value of Joe's was way higher, one reason could be because Alicia's property experienced: - external obsolescence - economic obsolescence - functional obsolescence - physical deterioration

Answer 223

C

Question 224

The most difficult step in the capitalization approach is to: - Establish the effective gross income - Establish the net income - Select a capitalization rate. - Establish the gross income

Answer 224

C

Question 225

Which of the following is not a proper charge in determining net income for capitalization purposes - Mortgage interest - Management agent fees - Vacancy and collection losses - Maintenance expenses

Answer 225

A

Question 226

What is the basis of the market data approach to appraisal? - the principal of highest and best use - the principal of substitution - the principle of conformality - the principle of supply and demand

Answer 226

B

Question 227

Some common types of legal transactions that require appraisals are: - Damage lawsuits, loan foreclosures, and security for bail bonds - All of the other options require appraisals - Company liquidation or merger, capital gains tax basis, and loan foreclosures - Income tax casualty losses, estate or inheritance tax, and property settlement upon divorce

Answer 227

B

Question 228

What is the basis of the market data approach to appraisal? - The principle of conformity - The principle of highest and best use - The principle of supply and demand - The principle of substituation

Answer 228

D

Question 229

Usually, the appraiser is hired by the - The buyer - The seller - The lender - The mortgagor

Answer 229

D

Question 230

State law differ on weather a buyer is entitled to know about: - The seller are getting a divorce - Known lead paint in the property - The flooding of the basement every spring - A suicide that occurred in the house last year

Answer 230

D

Question 231

Which of the following would generally constitute an antirust violation? - dividing territories - selling a house without a real estate license - transferring funds from one bank to another through escrow - buying a house in another state without a real estate license

Answer 231

A

Question 232

Which of the following statement is TRUE about trust and trustors? - A trustor is the one who transfers a property upon the trustee. - A trustee is the one who transfers a property upon the trustor - A trustor must be an individual not an organization, per federal law. - A trustor must be a financial institution such as a bank, per federal law.

Answer 232

A

Question 233

Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. This type of lease if called a: - single net lease - double net lease - triple net lease - percentage lease

Answer 233

D

Question 234

What party usually pays the loan origination fee on a Federal Housing Administration (FHA) loan? - The bank - the broker - the borrower - the real estate agent

Answer 234

C

Question 235

Which answer includes 3 actual types of business structures? Choose the best answer - CERCLA, LLC, AARP - General Partnership, Joint Corporation, Sole Company - Sole Proprietorship, Join Partnership, Share Partnership - Corporation, Sole Proprietorship, Limited Liability Company

Answer 235

D

Question 236

The fifth and fourteenth amendments of the US constitution permit the government to exercise its power of eminent domain. Eminent Domain is commonly used for: - Infrastructure - Property Tax Deflation - Financing Loan (Mortgages) - Development of Privately Owned Property

Answer 236

A

Question 237

A man named Troy lives in California, but owns property across the US. He owns property in cities like Pittsburg, Philadelphia and DC. Troy decides he wants to sell his property's in DC. Instead of traveling all the way to DC. to complete all the paperwork, he calls up his buddy Tony. Tony authorizes Tony, who lives in DC to sell his property for him. Troy gives Tony a/an: - affidavit - Attorney in-fact - Promissory note - Power of attoney

Answer 237

D

Question 238

During a standard residential transaction, verifying ingress and egress rights is an essential part of the: - Due Diligence Process - Appraisal Process - Closing process - Open House

Answer 238

A

Question 239

Restrictive covenants, are also known as - Deed restrictions - CCR's - bonds - CDO's

Answer 239

B

Question 240

Which act amended the comprehensive environment response, compensation, and liability act (also known as CERCLA)? - SARA - SDWA - CWA - EPA

Answer 240

A

Question 241

What is the measurement or boundary between a plot of land or a building and the road onto which the plot or building fronts? - Width - Frontage - Servient Width - Servient Length

Answer 241

B

Question 242

Which of the following best describes the acceleration clause? - A provision in a mortgage or deed of trust signed with the lender the borrower must pay the mortgage in full before the borrower can transfer the property. - A contract provision that requires a borrower to repay all of an outstanding loan if upon a breach of the contract. - The statement that a lender can penalize a borrower if the borrower pays off the mortgage much sooner than usual. - A contract provision in real estate that establishes the order of priorities of financial claims.

Answer 242

B

Question 243

By which of the following can you not lose title to your property involuntarily? - Adverse possession - Foreclosure - Dedication - Avulsion

Answer 243

C

Question 244

Which type of property would an appraisal use a depth table to estimate the property value? - Government owned property - Commercial property - Special-use property - Residential property

Answer 244

B

Question 245

What type of court handles the analysis and transfer of real estate or general estate assets of a deceased person (without a will)? - injunction - escheat - probate - estate

Answer 245

C

Question 246

Which of the following real estate contracts clauses establishes order of priorities of financial claims (liens)? - Release Clause - Habendum Clause - Acceleration Clause - Subordination Clause

Answer 246

D

Question 247

What is the government issued plan to guide the long term physical development of a particular area? - The master plan - The zoning plan - The ordinance plan - The private property plan

Answer 247

A

Question 248

Purchase agreement come big and small, and are crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement? - going through airport security - signing a non-disclosure agreement - transferring funds to one agent from another to cover mileage - ordering something online and checking a box that says terms and conditions

Answer 248

D

Question 249

What determines who pays for what and how much at closing? - The government - The seller - The buyer - Proration

Answer 249

D

Question 250

Which method would an appraiser be most likely to use when appraising a newly built (1-year old) apartment building with no rental history - income approach - cost approach - capitalization approach - market approach

Answer 250

B

Question 251

When a appraiser is appraising a property he usually considers all of the following except: - The assessed value - The property rights to be valued - A definition of value - The property identification

Answer 251

A

Question 252

If private property has been damaged (such as through excessive airport noise) or taken by the government without formal eminent domain proceedings, what would a property owner initiate to recover just compensation for losing or damaging, the property? - condemnation - injunction - inverse condemnation - writ of execution

Answer 252

C

Question 253

A listing agreement is a(n) - unilateral or bilateral contract - all are correct - employment contract - contract to find a buyer for a property

Answer 253

B

Question 254

In the formation of contract, "valiable." "good", "suffucent," and "adequate" are terms closely associated with which of the following? - Consideration - Bilateral contracts - Compensation - Performance

Answer 254

A

Question 255

When the rent charged is based on the gross sales of a business, the lease is correctly termed: - a gross lease - a net lese - a voidable lease - a percentage lease

Answer 255

D

Question 256

The primary purpose of a deed is to - give constructive notice - prevent adverse possession - prove ownership - transfer the rights

Answer 256

D

Question 257

A property owner conveys a life estate to his brother for the brothers lifetime and designates his cousin as the person to whom the property will pass when the life estate ends. When the brother dies, what happens to the property? - The property owner must designate a remainderman for the property - The property passses to the brothers heirs - The cousin automatically becomes the fee simple owner of the property - The property reverts back to the original property owner.

Answer 257

C

Question 258

A property owner conveys a life estate to his brother for the brothers lifetime and designates his cousin as the person to whom the property will pass when the life estate ends. When the brother dies, what happens to the property? - The property owner must designate a remainderman for the property - The property passes to the brothers heirs - The cousin automatically becomes the fee simple owner of the property - The property reverts back to the original property owner.

Answer 258

C

Question 259

The amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the; - amortization ratio - debt to equity ration - capital use ratio - loan to value ratio

Answer 259

D

Question 260

A buyer, Joe, and a seller, Stephen, both sign a purchase contract. What kind of title interest, if any, does Joe in the property at this point - ALTA - Equitable - Legal - Defeasible

Answer 260

B

Question 261

A court order to a properly designated individual to sell property in order to satisfy a judgment is called - a deficiency judgment - a writ of execution - a lis pendens - an attachment

Answer 261

B

Question 262

A normal size section in the Government Rectagular Survey System contains: - 36 square miles - 6 square miles - 1 square mile - 160 acres

Answer 262

C

Question 263

Definition of market value is least concerned with: - market cost - objective value - value in exchange - open market

Answer 263

A

Question 264

One of the main benefits of a sale-leaseback transaction would be; - you can get the deposit back with no objective - you have the option to lease the property back after the termination of the lease - the ability of the seller to deduct all of the future rent payments as business expenditures. - the ability to maintain the book value of the new buyer

Answer 264

C

Question 265

When a lender makes a loan regulated by the real estate settlement procedures act, the loan applicant must be provided with which of the following? - an application for private mortgage insurance - a loan estimate - a bill of sale - forms for applying for the homeowners exemption

Answer 265

B

Question 266

The usual listing contract authorizes a broker to: - convey the real property that is the subject of the listing - find a purchaser and bind his principal to a contract to sell - assure a prospective purchaser that an offer meeting the terms of the listing will be accepted by his principal - find a purchaser and accept a deposit with an offer to purchase

Answer 266

D

Question 267

Which of the following approaches to value estimate tends to sets the upper limits of value' - Replacement - Income - Comparable sales - Market comparison

Answer 267

A

Question 268

When a situation is such that damages would not provide an adequate remedy (like for a breach of contact), a suit for specific performance could be successfully brought by all of the following except: - the seller of a condominium. - one of the principals being represented by an attorney-in-fact - a licensed real estate broker acting as agent for the principals - the buyer of an in income property

Answer 268

C

Question 269

Allison has just qualified for her salespersons license. How much time does she have to file application to practice? - Two years from the date she passed the exam - One year from the date she passed the exam - Two years form the date she was notified she had passed the exam - One year form the date she was notified she passed the exam

Answer 269

B

Question 270

A trust deed may be released form the records by: - payment in full - a title report - recording a reconveyance deed - recording the note

Answer 270

C

Question 271

An acknowledgment may be taken by a notary public who is: - the grantor in a deed being acknowledged - the mortgagee in a mortgage being acknowledged - the grantee in a deed which is being acknowledged - a corporate employee without interest in the corporations instrument being acknowledged

Answer 271

D

Question 272

Henry made an offer to purchase real property. However, he died of a heart attack before the listing broker could notify him of an unqualifiled, signed acceptance by the seller. Based on these facts, which of the following is true? - Notification to the administrator or executor would bind the estate - The death of Henry constituted a revocation of the offer - The offer and acceptance constitute an enforceable contract - The sale would not be binding because the deed was not delivered before Henry's death

Answer 272

B

Question 273

Although a title insurance policy does cover the risk of loss for many reasons, which of the following risks is not covered in a title insurance policy? - A document in the series of records is forged - Failure of husband or wife to sign the deed - An unpaid city tax not shown in the policy - A zoning ordinance, regulation or plan

Answer 273

D

Question 274

After a contractor has filed a mechanic's lien, he may enforce it by filing suit within what time period - 120 days - 1 month - 6 months - 90 days

Answer 274

D

Question 275

According to the Truth-In Lending Act, consumers must be informed to credit terms by; - the trustee - escrow - the broker - the lender

Answer 275

D

Question 276

In Financing, the "secondary market" refers to the place where: - conventional loans are originated - secondary financing may be obtained - FHA loans are originated - existing loans are bought and sold

Answer 276

D

Question 277

Sara is a newly licensed broker and has just opened her own office. How long must she keep transactions records. - 3 yrs - 2 yrs - 4 yrs - 1 yr

Answer 277

A

Question 278

Four months ago, a seller entered into a legally binding written contract to sell his property. Later, the seller refused to complete the transaction since he felt the value of the property would increase in the near future. Under these circumstances, the Statute of Limitations could affect the rights of the buyer to prevail in a civil action due to a breach of the written contract within: - 4 yrs - 1 yr - 90 days - 2 yrs

Answer 278

A

Question 279

Usury MOST nearly means - illegal interest - making loans without the benefit of co-signors - lending money at fluctuating interest rates - being capable of multiple usage

Answer 279

A``

Question 280

On an escrow closing statement, and existing mortgage that is to be assumed by the buyer is treated as: - a credit to the seller - all of the other options are correct - a credit to the buyer - debit to the buyer

Answer 280

C

Question 281

A personal, revocable, non-assignable right to use the property of another is called: - a license - an option - the lease - an easement

Answer 281

A

Question 282

An appraiser is typically paid: - a fee agree upon after the appraisal is completed - a fee based on a percentage of the appraised value - a fee based on the amount of time and effort - a standard fee agreed upon by the National Appraisal Association

Answer 282

C

Question 283

An easement appurtenant to real property can be terminated by all of the following EXCEPT - revocation by the servient owner - prescription by the servient owner - merger of both the servient and dominant parcels - released by the dominant tenement owner

Answer 283

A

Question 284

The deed restrictions on a subdivision said that the lot must contain a minimum of 15,000 sq feet. The zoning restrictions said that the lot must contain a minimum of 10,000 sq feet. Which would prevail? - the one recorded first - zoning restrictions - deed restrictions - the one recorded last

Answer 284

C

Question 285

Of the following, which best defines a fee simple estate - an estate for years - the most interest that one can hold in land - title in the owner without limitations - a life estate

Answer 285

B

Question 286

Property over which an easement runs in favor of another parcel of real estate is known as a: - dominant estate - condemned estate - prescriptive estate - servient estate

Answer 286

D

Question 287

An easement on real estate would terminate if the holder of the dominant tenement recorded a: - deed of reconveyance - notice of non-responsibility - quitclaim deed - lis pendins

Answer 287

C

Question 288

Which of the following instruments proves a marketable title? - certificate of title - quitclaim deed - title insurance - abstract of title

Answer 288

C

Question 289

David, a life tenant, sells his estate to Joe. David dies. Title is in: - the name of the remainderman - Joes name - the name of Joes heirs - the name of Davids heirs

Answer 289

A

Question 290

When a claim is settled by title insurance company, the company acquires all rights and claims of the insured against any other person who is responsible for the loss. The is known as what? - subordination - subrogation - caveat emptor - surety bonding

Answer 290

B

Question 291

When Ross passed away, a deed was found in her desk drawer. While the deed had never been recorded, it was signed, dated, and acknowledged. The deed gave Rose's house to a local charity. Rose's will, however, provided as follows: "I leave all of the real and personal property that I own to my beloved nephew." In this situation, the house MOST likely will go to the: - nephew, because Rose still owned the house when she died - charity, because acknowledgement creates a presumption of delivery. - charity, because Rose's intent was clear from the deed - nephew, because the deed had not been recorded

Answer 291

A

Question 292

The tax assessment roll, showing the assessed value of property in an area would be used to: - Determine the proportionate share paid by each property owner. - Establish the tax rate - Establish the tax base for the community - Equalized the taxes paid by the owners in that area

Answer 292

C

Question 293

A court order that directs a designated official to sell property in order to pay a judgment is called: - a deficiency judgment - a foreclosure - a writ of execution - an attachment

Answer 293

C

Question 294

Which of the following is not an essential to a valid deed? - Grantor is legally competent - It must be in writing - A granting clause - It must be acknowledged

Answer 294

D

Question 295

In settling an estate for a deceased person, the executrix is one who has been - Designated in the will of the deceased - Chosen by the local bar association - Appointed by the probate court - Chosen by the heirs:

Answer 295

A

Question 296

The buyer of a commercial property under a sale/leaseback arrangement would be least concerned with - the credit rating of the seller - the depreciated book value of the builder - the condition of the building - the location of the property in the general community

Answer 296

B

Question 297

Robert often refers to tax shelters when discussing properties, Robert is primarily referring to: - Real property tax - Income taxes - Interest income - Mortgage relief

Answer 297

B

Question 298

When the owner of a property believes that her property assessed by the county assessor, and if an appeal to the assessors office has been denied, she should contact the: - County Tax Collectors Office - State Controllers Office - County Board of Supervisors; - Assessment Appeals Board

Answer 298

D

Question 299

A contact that may be treated as legally unenforceable at the option of a party (usually the injured party) but remains enforceable until the party exercises their option would be - Void - Rescindable - Voidable - Executory

Answer 299

C

Question 300

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: - Damages - Specific performance - Rescission - Unlawful detainer:

Answer 300

B

Question 301

A prospective purchaser obtained a four-month option on a parcel of real property by paying $200 to the owner. All of the following is true except: - The optionee has created a legal interest in the property. - The agreement imposes no obligation on the optionee to purchase the property - The optionor is restricted by having received a "valuable" consideration - An unilateral contract has been created

Answer 301

A

Question 302

The acts and representations of all of the following are binding on a seller of real property EXEPT: - the acts and representations of the subagent - the acts and representations of the listing broker's sale agent - the acts and representations of the listing broker - the acts and representations of the buyer's broker

Answer 302

D

Question 303

One of the required elements of a valid real estate sales contract is that it MUST: - provide for method of payments - be signed by the listing agent - provide for possession of the property by the buyer - be signed by the seller

Answer 303

D

Question 304

A broker used the following clause in his exclusive listing contract: "In consideration of the execution of the foregoing, the undersigned broker agrees to use diligence in procuring a purchaser. "This clause: - Requires that the broker advertise the property - Is superfluous and unnecessary in the current contracts. - Is necessary for the creation of a unilateral contract. - Is important to the creation of a bilateral contract

Answer 304

D