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