ALL Chapters LEGAL CA RE Flashcards
The main California state agency charged with the enforcement of the real estate law is the
- Department of Business Oversight (DBO).
- Department of Real Estate (DRE).
- Real Estate Division (RED).
- Office of Real Estate Appraisers.
- Department of Real Estate (DRE).
In most cases, a decision rendered in an arbitration proceeding is binding upon the parties.
- True
- False
- True
Police power is the right of the government to seize private property for public use.
- True
- False
False
A lawsuit begins when a plaintiff files a complaint with the court.
- True
- False
True
Cases relating to real estate matters are first brought at the
- trial court level.
- appellate court level.
trial court level.
Many civil lawsuits result in settlement once the discovery stage has been completed.
- True
- False
True
Under California law, property acquired by spouses during their marriage is owned as community property.
- True
- False
- True
The highest court, also known as the court of last resort, is
- the United States Supreme Court.
- the Ninth Circuit Court of Appeals.
- the United States Supreme Court.
California is the location of the Federal Circuit Court for the Ninth Judicial Circuit.
- True
- False
true
California’s community property law originated with Spanish civil law.
- True
- False
true
Which one of the following is TRUE about a California Real Estate Broker?
- A broker may not hire unlicensed personnel such as a bookkeeper to maintain the client trust account.
- A broker should establish a policy and procedures manual.
- A broker is not required to supervise affiliated licensees if they are hired as independent contractors.
- Brokers are not liable for the actions of affiliated licensees if supervision and control is not adequately exerted.
A broker should establish a policy and procedures manual
Under single agency representation, which of the following IS NOT a common law fiduciary duty owed to the principal?
- Care
- Accounting
- Obedience
- Loyalty
- Disclosure
- Compassion
Compassion
California Civil Code 2079 does NOT require
- the seller and buyer agents in residential property transactions to provide both the seller and buyer with written and oral disclosures regarding agency relationships and issues.
- that all agency relationships be confirmed in the real estate purchase and sale agreement.
- that the agency disclosure form be provided in business opportunity transactions.
- any disclosed agency relationships to be acknowledged by the principals in the purchase and sale agreement.
that the agency disclosure form be provided in business opportunity transactions
The person who hires another and delegates authority to that person to act on their behalf is known as:
- a principal.
- a third party.
- a customer.
- an agent.
a principal
Which one of the following is TRUE?
- The creation or existence of a compensation agreement does not establish an agency relationship between the giver of compensation and the recipient.
- California Civil Code requires consideration to create an agency relationship.
- The fact that a buyer’s agent receives compensation as a percentage of the total commission monies paid by the seller establishes an agency relationship between the buyer’s agent and the seller.
The creation or existence of a compensation agreement does not establish an agency relationship between the giver of compensation and the recipient
A type of listing agreement that can be entered into with many licensees with the commission being owed only to the licensee who brings the buyer is known as
- an exclusive agency listing.
- a net listing.
- an exclusive listing.
- an open listing.
an open listing
The Easton case led the California legislature to require expanded duties of real estate licensee to a third party to include all of the below, EXCEPT
- the duty of a real estate licensee to conduct a reasonably competent and diligent visual inspection of the property offered for sale.
- honest and fair dealing and to act in good faith.
- to disclose all material facts to third parties that a licensee knows or should have known if a reasonable and diligent inspection had been performed.
- utmost loyalty and lawful obedience.
utmost loyalty and lawful obedience
An enforceable agency relationship can be entered into by
- an individual appointed by the court to represent the interests of one who does not have legal capacity.
- a minor.
- an obviously intoxicated person.
- All of the above
an individual appointed by the court to represent the interests of one who does not have legal capacity
An agency relationship is NOT terminated
- once a suit for specific performance is instituted.
- if either the principal or the agent dies or becomes legally incapacitated.
- when the principal and agent mutually agree.
- when the purpose for which it was created has been fulfilled.
once a suit for specific performance is instituted
The agreement that provides the most protection for payment of a commission for the listing broker is
- an exclusive agency listing.
- an open listing.
- a net listing.
- an exclusive right to sell listing.
an exclusive right to sell listing
In terms of basic physical characteristics, land is properly described as
- indestructible
- immobile
- nonhomogenous
- all of the above
all of the above
A section
- is 36 square mile
- will be divided into surveys
- contains 640 acres
- is 2640 feet per side
contains 640 acres
Trade fixtures:
A. are intended to remain the property of the tenant
B. may be removed at the end of the lease if not prohibited in the terms of the lease
- both a and b
- a only
- b only
- neither a nor b
both a and b
Which type of legal description uses a plat map?
- rectangular survey
- lot and block
- metes and bounds
- street and number
lot and block
Concerning water rights in California, it is true that:
A. California is a system based upon the system of prior appropriation
B. a water right is an appurtenance
- Both a and b
- b only
- a only
- neither
both a and b
Which of the following statements best descirbes the concept of land ownership?
- Your rights are limited to the surface.
- Ownership includes the land, fixtures, plus air space above and downward to the center of the earth.
- You have lateral support but no rights to underground minerals unless specifically granted to you.
- You only own the surface of the property and no portion of the airspace.
ownership includes the land, fixtures, plus air space above and downward to the center of the earth
Which one of the following statements concerning riparian rights is TRUE?
- They are found in the public records
- They are the exclusive right to use ocean water that touches one’s land
- They are listed in the warranty deed
- They are the right to reasonable use of river water that touches one’s land in some jurisdictions
They are right to reasonable use of river water that touches one’s land in some jurisdictions
under the rectangular survey system, the legal description of a particular land unit is based on
- metes and bounds.
- one principal meridian and one baseline.
- one range.
- one township line.
one principal meridian and one baseline
Which one of the following statements is FALSE regarding metes and bounds legal descriptions?
- “Bounds” refers to natural or artificial boundaries.
- An actual survey of the property is usually necessary.
- There is no point of beginning.
- They always start from some physical marker known as the point of beginning.
there is no point of beginning
The legal right of a property owner to the natural support provided by the land surrounding the property is known as ____ support
- contingent
- lateral
- subjacent
lateral
a corporation formed under the laws of California is
- an articial person
- a domiciled corporation
- an illegal corporation
- a foreign corporation
an artificial person
Which is not a characteristic of a fee simple estate?
- It is of indefinite duration
- It must be transferable
- It must be free of all encumbrances
- It must be inheritable
it must be free of all encumberances
Which one of the following statements regarding community property is FALSE?
- A spouse’s separate property requires the consent of the remaining spouse if it is to be transferred or encumbered.
- If community funds are used to maintain or improve separate property, the property may lose its status as separate property.
- Property conveyed to a married couple is presumed to be community property.
- Neither spouse can make a gift of community property to a third party without the consent of the other.
a spouse’s separate property requires the consent of the remaining spouse if it is to be transferred or encumbered
Which statements ares TRUE concerning unit ownership?
- Ownership in a cooperative usually requires purchase of shares of stock in the cooperative corporation.
- Individual units in a condominium are conveyed and are financed as if they were single-family dwellings on separate pieces of land.
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
both 1 and 2
The simplest form of business ownership is a
- sole proprietorship.
- syndicate.
- corporation.
- partnership.
sole propietorship
Which one of the following statements is FALSE regarding a planned unit development (PUD)?
- Condominiums are considered to be PUDs.
- It is a subdivision in which the unit and the land under it are owned by each individual purchaser.
- Common areas are owned by all of the unit owners as tenants in common.
condominiums are considered to be PUDs
When purchasing a cooperative unit, the purchaser receives all of the following, EXCEPT
- full use and enjoyment of the common areas.
- shares of stock in the corporation proportionate to the size of the unit being purchased.
- a proprietary lease to the unit being purchased.
- fee simple title to the airspace of the unit and common interest in the common areas.
fee simple title to the airspace of the unit and common interest in the common areas
what does an owner receive when purchasing a condominium?
- Fee simple title in airspace within the unit and tenancy in common in common areas.
- Title in an apartment and tenancy in common of undeveloped land.
- Tenancy in common in the building and tenancy in severalty in the common areas.
- Tenancy in common in the building and common interest in other areas.
fee simple title in airspace within the unit and tenancy in common in common areas
a type of concurrent ownership in real property with the right of survivorship held by unmarried persons is known as
- community property.
- joint tenancy.
- tenants in common.
- tenancy by the entirety.
joint tenancy
Under California law, a subdivision is created by dividing land into __________ the purpose of sale, lease or financing.
- six or more parcels
- three or more parcels
- five or more parcels
- four or more parcels
five or more parcels
In California, which of the following must be in writing in order to be enforceable?
- a property listing agreement
- a lease for less than a year
- Both 1 and 2
- 1 only
- 2 only
- neither 1 nor 2
1 only
The statute or act that requires a contract for the sale of land to be in writing is the
- statute of frauds
- written recording act
- statute of writing
- real estate licensing act
statute of frauds
The term waiver is best defined as
- estoppel
- the mutual exchange of privileges
- to voluntarily give up or surrender a right
- detrimental justification
to voluntarily give up or surrender a right
Which one of the following is FALSE regarding the formation of a contract?
- A contract in the name of an entity that does not legally exist is valid.
- If a person dies prior to notification of acceptance of an offer, the contract is void.
- A party must be identifiable and exist at the time of notification of the acceptance of an offer.
a contract in the name of an entity that does not legally exist is valid
Which one of the following is the best explanation of specific performance?
- The date set for closing, at which all parties involved must be present and must sign and deliver all documents necessary to close the transaction.
- A legal procedure or action brought by the tenant, requiring the lessor to produce a lease.
- When either party has the right to cancel the contract provided legal notice is given.
- A legal procedure or action brought by either the buyer or seller to enforce the terms of a contract.
a legal procedure or action brought by either the buyer or seller to enforce the terms of a contract
A contract that results from neither a written nor oral agreement, but from the actions of the parties involved, is referred to as an
implied contract
“an agreement between competent parties upon legal consideration creating legally enforceable duties and obligations” is a definition of
- legality of object.
- an offer.
- a contract.
- specific performance.
a contract
Consideration in a contract
- is always more than 10% of the purchase price.
- can be an exchange of promises.
- is not essential.
- All of the above
can be an exchange of promises
What is the meaning of novation?
- Ratification
- Substitution of a new contract between the same or different parties
- Estoppel
- Rescission
substitution of a new contract between the same or different parties
In general, a buyer may not withdraw an offer to purchase the seller’s property
- before it is presented to the seller.
- after receiving proper notification of the seller’s acceptance of the offer.
- after the seller’s acceptance of offer but before the buyer is notified.
- after an earnest money deposit has been given.
after receiving proper notification of the seller’s acceptance of the offer
Which one of the following is NOT the unauthorized practice of law?
- Rendering opinions of the tax implication of a 1031 exchange.
- Giving counsel on the meaning of legal documents or phrases within those documents.
- Filling in the blanks on standardized real estate documents.
- Giving advice on how title should be taken.
filling in the blanks on standardized real estate documents
A type of written agreement that forms a contractual agency relationship between a licensee and a buyer is known as
- a buyer’s broker agreement.
- an exclusive right to sell agreement.
- an open listing agreement.
- a multiple listing agreement.
a buyer’s broker agreement
which one of the following is MOST correct?
- A listing salesperson may take the only signed copy of the listing agreement, make a copy of it, and then fax the copy to the seller within 24 hours.
- A listing salesperson must give to the seller a signed copy of the listing at the time of signing.
- A listing salesperson is required to take the only signed copy of the listing agreement to his/her broker for approval, and the broker is required to mail a copy of that agreement to the seller within three business days.
- A listing salesperson may take the only signed copy of the listing agreement, make a copy of it, then mail the copy to the seller within three business days.
a listing salesperson must give to the seller a signed copy of the listing at the time of signing
in order to be enforceable, a listing contract must meet all of the following requirements, except
- be in writing.
- be recorded at the county recorder’s office.
- be signed by all parties in title and the broker.
- state a definite expiration date.
be recorded at the county recorder’s office
The most common type of listing agreement for residential real estate is the
- open listing
- net listing
- exclusive right to sell listing
- exclusive agency listing
exclusive right to sell listing
An exclusive right to sell listing contract
- provides the least protection for the listing broker.
- guarantees a commission to the listing broker no matter who brings the buyer if a sale occurs during the listing period.
- guarantees that the listing agent will receive all money received from the sale that exceed the seller’s desired net proceeds.
guarantees a commission to the listing broker no matter who brings the buyer if a sale occurs during the listing period
Which one of the following statements is FALSE regarding listing contracts?
- A listing contract is subject to the Statute of Frauds.
- A listing contract must contain a definite expiration date.
- A listing contract must be in writing.
- A listing contract can contain an automatic renewal provision.
a listing contract can contain an automatic renewal provision
which one of the following is correct with respect to a licensee’s role in preparing a purchase and sale agreement for a buyer?
- A licensee can fill in the blanks of the standard form agreement and prepare addenda at the request of the buyer.
- A licensee can fill in the blanks and sign the standard form agreement for his buyer if a house is found that meets the criteria of the buyer while the buyer is out of town.
- A licensee can prepare a contract for a client that is not on a preprinted form.
- A licensee should have the client fill in the blanks on the standard form agreement.
a licensee can fill in the blanks of the standard form agreement and prepare addenda at the request of the buyer
a broker hires a salesperson to engage in real estate activity under his/her license. What type of agreement will the broker and salesperson enter into in order to define this relationship?
- A listing agreement
- A brokerage engagement agreement
- An independent contractor agreement
- A work-for-hire agreement
an independent contractor agreement
a type of listing agreement entered into the several licensees that provides for payment of a commission to the licensee who brings the buyer is known as:
- an exclusive right to sell listing.
- a net listing.
- an open listing.
- an exclusive agency listing.
an open listing
which of the following in a lease agreement prohibits the tenant from destroying or damaging the property?
- Waste clause
- Maintenance clause
- Hold harmless clause
- Alienation clause
waste clause
a standard residential month-to-month rental agreement is which type of leasehold interest?
- Holdover tenancy
- Periodic tenancy
- Lease for definite period
- Tenancy at will
periodic tenancy
Which one of the following contracts is a unilateral contract?
- Mortgage.
- Land sales contract.
- Trust deed.
- Option.
option
Under an assignment of lease, the tenant
- remains liable under the original lease agreement. even if the landlord consents to the assignment.
- sublets the rental space to a third party.
- may assign the lease to a thirad party without the consent of the landlord.
- assigns and transfers all of the rights and responsibilities to a third party.
assigns and transfers all of the rights and responsibilities to a third party
The type of lease that requires the tenant to pay a set amount, plus some of all of the building operating expenses, is known as a ___ lease
- gross
- percentage
- net
- indexed
net
The phrase time is of the essense is most likely to be found in a
- listing agreement.
- real estate purchase and sale agreement.
- deed.
- broker’s loan statement.
real estate purchase and sale agreement
An offer can be terminated by
- rejection by the offeree.
- a counter offer.
- revocation by the offeror.
- 1, 2 and 3.
- 1 only
- 1 and 3 only
- 2 and 3 only
1, 2, and 3
Which of the following factors will NOT be considered in determining whether an item is a fixture or personal property
- Its adaptability
- Its cost
- The relationship of the parties
- Its method of attachment
its cost
When a purchase and sale agreement has been signed by the buyer and given to the seller’s agent along with an earnest money check, the
- transaction becomes a valid contract.
- earnest money must be returned to the buyer if the buyer withdraws the offer after the seller signs the agreement.
- buyer can sue for specific performance if the seller refuses to sign the agreement.
- transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer.
transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer
Which one of the following is not a common contigency used for the benefit of the buyer?
- Subject to the sale of the seller’s property
- Subject to an inspection
- Subject to the sale of buyer’s current house
- Subject to obtaining a mortgage
subject to the sale of the seller’s property
which one of the following parties does NOT contribute to the completion of the Transfer Disclosure Statement?
- Selling agent
- Listing agent
- Escrow agent
- Seller
escrow agent
If known, which of the following must be disclosed on the real estate Transfer Disclosure Statement?
- Radon
- Formaldehyde
- Asbestos
- Underground fuel storage tank
- 1, 2, and 3 only
- 1 and 3 only
- None of the above
- All of the above
all of the above
Which one of the following statements regarding disclosure is TRUE?
- HIV/AIDS cannot be disclosed even when asked; by law HIV/AIDS are not material facts that require disclosure.
- If asked by a prospective buyer if an occupant died of AIDS or an AIDS-related syndrome within the last three years, the seller or licensee must reply truthfully if known.
- The seller and licensees need not disclose to a prospective buyer the manner or occurrence of an occupant’s death in the home if it occurred within the past three years.
- If an occupant died of AIDS or an AIDS-related syndrome within the past three years, that fact must be disclosed to a prospective buyer.
HIV/AIDS cannot be disclosed even when asked; by law HIV/AIDS are not material facts that require disclosure
Mello-Roos disclosures refer to
- sexual predator database.
- military ordinance locations.
- disclosure of notice concerning special tax or assessments.
- foreign investment in real property.
disclosure of notice concerning special tax or assessments
Lead-based paint disclosures must be made in which of the following transactions?
- The purchase of single-family residential structure
- A property sold at foreclosure
- Rental property certified under a federal program as lead-based paint free
- The purchase of a duplex
- 1 only
- 1 and 3 only
- 1 and 4 only
- All of the above
1 and 4 only
The document that a seller must provide to a buyer about the condition of the property being sold is called the
- Real Estate Transfer Disclosure Statement.
- Seller’s Disclosure Statement.
- Property Condition Disclosure Document.
- Optional Disclosure Disclaimer
Real estate transfer disclosure statement
Which one of the following is FALSE regarding the Transfer Disclosure Statement?
- Transfers arising out of default or foreclosure do not require a TDS.
- Any transaction regarding the sale, transfer, lease, or exchange of one-to-four residential units requires the seller to provide a TDS.
- No TDS is required if a property is being sold “as is.”
- All mobilehomes must be treated as realty for TDS disclosure purposes.
No TDS is required if a property is being sold “as is”
A Lead-Based Paint Disclosure must be provided to a buyer by the seller if the seller’s home was built prior to ___
- 1978
- 1980
- 1990
- 1992
1978
Neither the seller nor the agent’s is liable for any error, inaccuracy, or omission in the Transfer Disclosure Statement if the
- information provided was based on information received from a public agency or qualified expert.
- seller and/or agent failed to exercised ordinary care in obtaining and transmitting the information.
- seller filled out the form based on best guesses and assumptions.
- damage caused by a known defect, such as a prior slide, had been repaired.
information provided was based on information received from a public agency or qualified expert
Which of the following must be disclosed in the Real Estate Transfer Disclosure Statement (TDS)?
- Easements affecting the property
- A broken oven
- Additions or alterations made without a permit
- Neighborhood noise or nuisance problems
- 2 only
- 2 and 3 only
- 1, 2, and 3 only
- All of the above
all of the above
which would cause a deed to be invalid in its inception?
- Legal incompetence of the grantor
- Failure to record the deed
- Failure to state a monetary consideration on the deed
- Legal incompetence of the grantee
legal incompetence of the grantor
The transfer of title by descent and distribution means the owner
- transferred his property interest by gift.
- died testate, and property passes to his heirs.
- transferred his property interest by sale.
- died intestate and property passes to his heirs.
died intestate and property passes to his heirs
The main purpose of a deed is to
- provide a written instrument suitable for recordation.
- evidence the change in title or transfer of an interest in real property.
- identify the party to whom the tax statement should be sent.
- evidence the terms of a real property transaction.
evidence the change in title or transfer of an interest in real property
a quitclaim deed is frequently used to
- convey a fee title to property
- remove an escrow
- convey an after acquired interest in real property
- remove a cloud on a title
remove a cloud on a title
In a land sale contract, the buyer
- has equitable title to the property.
- is entitled to a conveyance of the legal title when all payments have been made.
- II only
- I only
- Both I and II
- Neither I nor II
both 1 and 2
Which is the right of a government to take ownership of a privately held property for public use against the wishes of the owner
- Dedication
- Eminent domain
- Public grant
- Police power
eminent domain
A trust deed
- conveys real property from the trustee to the purchaser once the loan is retired.
- is a security instrument granting limited rights to the trustee.
- transfer title to the successful bidder in a trustee’s sale.
- transfers title to the trustee until the beneficiary is paid in full.
is a security instrument granting limited rights to the trustee
A means of acquiring title where the occupant has been in actual, open, notorious, exclusive and continuous occupation of property under a claim of right for the statutory period is known as
- escheat.
- prescription.
- eminent domain.
- adverse possession.
adverse possession
which is a warranty given in a grant deed
- That there are no encroachments
- That the grantor has not transferred title to anyone else
- A warranty that the grantor has no interest in the property
- There is a cloud on title
that the grantor has not transferred title to anyone else
Which deed is the most common one used to convey property in California
- Deed of Trust
- Bargain and Sale Deed
- Grant Deed
- Special Warranty deed
grant deed
an easement created when there is no access to a street is
- an easement by necessity.
- an easement in gross.
- a negative easement.
- an easement by prescription.
an easement by necessity
a trust deed is
- a specific involuntary lien.
- a general voluntary lien.
- a specific voluntary lien.
- a general involuntary lien.
a specific voluntary lien
Easements cannot be terminated
- by written release of the easement by the dominant tenement.
- by the purpose for which the easement was created ceasing to exist.
- by written withdrawal of the easement by the servient tenement.
- by the merging of the dominant and servient tenements into one tract.
by written withdrawal of the easement by the servient tenement
Right-of-way easements, such as those acquired by public utilties, are usually called
- easements of necessity.
- commercial easements in gross.
- implied easements.
- easements by prescription.
commercial easements in gross
One difference between a license and an easement is that a license
- must be in writing.
- is a permanent right.
- can be revoked.
- can be assigned.
can be revoked
With certain exceptions, a property tax lien has priority over other interests in real property
- according to the date they were recorded.
- regardless of when they were recorded.
- only if the property owner agrees to assume the obligations.
- based on when the tax law was passed.
regardless of when they were recorded
An easement appurtenant
- runs with the dominant estate as a property right.
- involves a dominant and servient estate.
- II only
- Both I and II
- I only
- Neither I nor II
both 1 and 2
which is an involuntary lien
- Property tax liens
- Home equity loan
- Mortgage liens
- Trust deeds
property tax liens
If Don has a permanent right to travel across Bob’s land, Don’s property is
- encumbered
- the dominant tenement.
- burdened by a cloud
- the servient tenement.
the dominant tenement
Restrictions on property owners in a subdivision development are sometimes called
- encroachments.
- covenants.
- zoning constraints.
- easements appurtenant.
convenants
A clause in a promissory note that allows the lender to demand the entire principal due in the event of default is the:
due on sale clause
alienation clause
defeasance clause
acceleration clause
acceleration clause
Under a trust deed, once the trustor has paid the beneficiary in full, the trustee will be instructed to record
a satisfaction of mortgage
a grant deed
a quit claim deed
a deed of reconveyance
primary lenders
a type of mortgage with interest rate changes during the life of the loan based upon a specified index is known as
a graduated payment mortgage
a growing equity mortgage
an adjustable rate mortgage
a budget mortgage
an adjustable rate mortgage
Truth-in-lending seeks to
compel lenders to disclose loan terms to prospective borrowers
limit the interest rate charged on mortgages
limit the number of discount points to be charged by lenders
steer residential mortgage borrowers to savings associations instead of commercial banks
compel lenders to disclose loan terms to prospective borrowers
Which is TRUE regarding the priority of a lien benefiting a lender under a mortgage or trust deed?
Priority is determined by the date the instrument was signed
a property tax lien recorded after the date of a mortgage or trust deed will be a junior lien
Following foreclosure the proceeds are first distributed to the lender if the mortgaagee is the first recorded security instrument, followed by property taxes and/or special assessments with any remaining monies distributed to the defaulting borrower
Establishing lien priority by recording the mortgage or trust deed is crucial to the lender
A property tax lien recorded after the date of a mortgage or trust deed will be a junior lien
Which statement is FALSE regarding a trust deed?
under a trust deed, if the borrower defaults, the trustee has the power to sell the property through a process known as nonjudicial foreclosure
following a trustee sale, any amount remaining after the beneficiary has been paid in full belongs to the trustor
the trustor has a one year right of redemption following the trustee sale
the trustor has up to five days prior to the trustee sale to cure any deficiency and pay all costs associated with the foreclosure action to reinstate the loan and prevent the sale of the property
the trustor has a one year right of redemption following the trustee sale
a security instrument wherein the seller is the lender for the buyer and gives actual title to the buyer in exchange for the buyer promising to pay the seller a specified amount of money over time is known as
a land sales contract
a contract for deed
an installment sales contract
purchase money mortgage
purchase money mortgage
In California, the statutory right of redemption following judicial foreclosure under a mortgage is
9 months
180 days
240 days
one year
one year
Which one of the following is FALSE regarding a mortgage or deed of trust?
it makes the property collateral for the debt owed
it creates a lien on the property that must be satisfied or assumed if title is to be transferred
it is an encumbrance
it is the written evidence of a debt owed
it is the written evidence of a debt owed
All sales of real estate must be reported to the
DRE
FHA
FED
IRS
IRS
When transactions involving the sale of real estate are placed in escrow, this means
the buyer’s agent is no longer involved
the seller’s agent holds the papers until the registration of title is completed
a designated agent agreed to by the parties holds the necessary documents until the terms are met
they are completed in secrecy
a designated agent agreed to by the parties holds the necessary documents until the terms are met
In most cases, lien priority is established by the
date of recording
amount of the lien
statute of limitation
statute of frauds
date of recording
the best way to discover defects on a title is by
a search of title
hiring a lawyer
taking out property insurance
calling the county surveyor
a search of title
Which does NOT accurately reflect the duties of escrow agents?
they must follow escrow instructions
they are to act impartially for both the buyer and seller
in reviewing legal documents, they are to provide any missing clauses
they must act as fiduciaries until escrow is closed
in reviewing legal documents, they are to provide any missing clauses
The real estate broker’s commission is usually
- shown as an expense to the seller on the closing statement
- credited to the buyer on the closing statement
both 1 and 2
2 only
1 only
neither 1 or 2
1 only
If the buyer in a real estate transaction deposits funds into escrow, the escrow agent can pay out the funds in accordance with the written instructions of the
- principals to the escrow transaction
- buyer alone, in the event the buyer is unable to obtain the financing which was a condition of the agreement to purchase.
both 1 and 2
2 only
1 only
neither 1 nor 2
Which endorsement to a standard form title policy offers protection to lenders and home buyers of new construction
builder’s endorsement
early issue endorsement
vendee endorsement
oil and gas endorsement
early issue endorsement
On a closing statement, the sales price is a
debit. to the buyer and a credit to the seller
credit to the buyer and a debit to the seller
debit to the buyer and a debit the seller
credit to the buyer and a credit to the seller
debit to the buyer and a credit to the seller
when prorating California real property taxes in a closing statement, what date is used as the beginning of the tax year
may 31
january 1
july 1
november 15
july 1
A standard subdivision consists of subdivisions with ___ parcels
exactly two
five or more
ten or fewer
four or fewer
five or more
Governmental rights retained in private property do not include:
the right of taxation
land use controls
eminent domain
deed restrictions in a subdivision
deed restrictions in a subdivision
Zoning is done by authority of
petition
the law of eminent domain
police power
the mayor
police power
the enforcement of the laws setting standards for construction methods are materials is accomplished by way of
the planning commission
injuctive relief
law enforcement officials
the building permit system
the building permit system
If there is a difference in the degree of restriction between zoning restrictions and deed restrictions, which has priority
whichever is more restrictive
zoning restrictions
deed restrictions
neither has priority
whichever is more restrictive
the california law requiring project developers to submit environmental impact reports is
CEQA
EIR
NEPA
CERCLA
CEQA
The subdivided lands law is administered by the
secretary of state
attorney general
department of environmental quality
real estate commissioner
real estate commissioner
Under the California Fair Employment and Housing Act (FEHA) it is illegal to discriminatee against persons who rent or buy a home based upon
Marital status
disability including HIV and AIDS
sexual orientation
all of the above
all of the above
Which is FALSE regarding special assessments?
special assessments do not create a lien on real property
only properties which benefit from a specific improvement are taxes proportionally to pay improvements
they are imposed to pay for improvements such as construction of sewers, access to public utilities, widening of a street, etc.
a benefict assessment is not deductible for federal and state tax purposes
special assessments do not create a lien on real property
The process under eminent domain by which property is taken for public use is known as
condemnation
judgment
lis pendens
abstract of judgement
condemnation
Which statement is FALSE regarding tenants of mobilehomes?
They are entitled to a 12-month lease at the prevailing month-to-month rate
Rental agreements may not contain a clause prohibiting a mobile home owner from keeping at least one pet
they must be given a 60-day notice to terminate
they must be given 30 days notice if there is to be a rent increase
they must be given 30 days notice if there is to be a rent increase
The Costa-Hawkins Rental Housing Act greatly reduced the impact of rent control with respect to
new housing, when the certificate of occupany was issused after February 1, 1990
apartment buildings located in Los Angeles
Single-family dwellings
none of the above
single-family dwellings
The maximum amount of security deposit allowed for a furnished residential property is
one month’s rent
two month’s rent
three month’s rent
$5000
three month’s rent
a tenant leased an apartment, but the landlord failed to provide heat during the winter because the tenant was always late with the rent. this is an example of
actual eviction
abandonment
negligence
constructive eviction
constructive eviction
A landlord does NOT have to give a 24-hour notice to a tenant to arrange access to a rented premises
to inspect the premises
in an emergency
to make agreed to repairs
to show the premises to a prospective tenant
in an emergency
The warranty of habitability means that the landlord of a rented residential property must provide
adequate weatherproofing
hot and cold running water
stairways maintained in good repair
all of the above
all of the above
In California, an agricultural lease can not be longer than
1 year
30 years
51 years
99 years
51 years
Which is an exclusive right belonging to the tenant?
future ownership
possession
retaliation
remodeling
possession
A resident apartment manager is requireed when there are
16 or more units
20 or more units
10 or more units
25 or more units
16 or more units
A lease cannot legally be terminated by
expiration
surrender
constructive eviction
destruction of the premises
constructive eviction
California’s real estate law is found in the
sherman antitrust act
corporate and franchise code
business and professions code
uniform commercial code
business and professions code
the maximum amount that can be paid from the real estate education, research, and recovery account on behalf of a licensee as a result of judicial action involving one claimant is
$10,000
$20,000
$50,000
$100,000
$50,000
A licensee can advertise for a seller under a listing agreement without including a licesee designation and employing broker’s idenity when
the licensee’s broker authorizes the licensee to do so in writing
the advertisement is a flyer describing the interior of the listed property
never
requested to do so by the seller in the listing agreement
never
When a real estate commissioner wishes to proceed against a licensee for a suspected violation of real estate law, the commissioner must first servce the licensee with
a complaint
a finding of fact and conclusion of law
a demurrer
an accusation
an accusation
In california, real estate syndicates are regulated by the
real estate investment trust act
california attorney general
commissioner of business oversight
real estate commissioner
commissioner of business oversight
Which is true regarding the advertising of a mobilehome for sale by a real estate licensee?
the mobilehome must be in an established mobilehome park or on a lot where its use may continue for at least one year
the mobilehome must be at least 40 feet long by 8 feet wide
the mobilehome must be less than one year old to be advertised by a licensee
the advertismenet must include location information for the mobilehome park
the mobilehome must be in an established mobilehome park or on a lot where its use may continue for at least one year
which one of the following is NOT considered trust funds?
a title to an automobile given as earnest money
a deposit received by the licensee from a tenant occupying a home owned by the licensee
funds given by a seller to defray future advertising costs
a promissory note to be redeemed upon acceptance of an offer
a deposit received by the licesee from a tenant occupying a home owned by the licensee
Under California law, the sale of a franchise is NOT exempt from registration with the Department of Business Oversight (DBO) if the
franchisor provides the franchisee with an offering prospectus at least 48 hours prior to entering into a binding franchise agreement
franchisor has a net wroth of 5 million dollars and has at least 25 franchises that have done continual business during the 5 year period preceeding the saale
franchisee is selling his/her franchise
franchisor provides the franchisee with an offering prospectus at least 48 hours prior to entering into a binding franchise agreement
all transactional documentation for listings, purchase and sale agreements, property management activities, exchanges and trust account records must be retained for a period of
three years
four years
one year
two years
three years
A broker with a trust account must deposit trust funds received
within three business days
within two business days
within 24 hours
promptly
within three business days
