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California Real Estate Prep 1 > California Real Estate Prep 1 > Flashcards

California Real Estate Prep 1 Flashcards

1
Q
  1. In regard to the creation of easements, which of the following terms least belongs with the others?

a. prescription
b. encumbrance
c. necessity
d. express grant

A

b. encumbrance

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2
Q
  1. The right of a cable company to lay cable under a person’s land is

a. an appurtenant easement
b. a nuisance in gross
c. a subterranean right
d. an easement in gross

A

a. an appurtenant easement

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3
Q
  1. If at the end of a life estate, the future interest arises in someone other than the grantor, the residue of the estate is called a

a. less-than-freehold estate
b. reversion
c. condition subsequent
d. remainder

A

d. remainder

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4
Q
  1. A lease for one month would be

a. an estate at sufferance
b. an estate for years
c. an estate at will
d. periodic tenancy

A

b. an estate for years

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5
Q
  1. The four types of leasehold estates differ according to their

a. creation
b. duration
c. both a and b
d. neither a nor b

A

c. both a and b

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6
Q
  1. An estate at will can be terminated

a. without notice
b. only after a court orders eviction
c. by either party at any time
d. none of the above

A

d. none of the above

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7
Q
  1. If the highest initial bid for a property at a probate sale was $ 90,000, any late bid must be for at least

a. $ 91,000
b. $ 92,000
c. $ 95,000
d. $ 94,000

A

c. $ 95,000

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8
Q
  1. In the case of avulsion, how long does the owner of the carried-away property have to reclaim his or her property before it becomes part of the property onto which it settled?

a. 2 years
b. 1 year
c. 6 months
d. once the carried-away property is deposited, it automatically becomes part of the property onto which it settled.

A

b. 1 year

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9
Q
  1. Which of the following terms least belongs with the others?

a. abandonment
b. accretion
c. adverse possession
d. prescription

A

b. accretion

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10
Q
  1. For a grant deed to be valid, it must be

a. acknowledged
b. recorded
c. delivered
d. all of the above

A

c. delivered

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11
Q
  1. Which of the following terms least belongs with the others?

a. eminent domain
b. police power
c. taking for public use
d. just compensation

A

b. police power

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12
Q

eminent domain

A

Occurs when the government takes property, also called condemnation. It is the power of government to take private property for public use. Similar to condemnation.

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13
Q

intestate succession

A

Occurs when a person dies without a will, but with heirs

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14
Q

Tenancy in common

A

May be the title vesting when two or more persons own an undivided interest in a property. It only requires one unity (unity of possession). Must not commit waste against the property

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15
Q

Community property

A

Each spouse owns 50%. Community property is assumed when the title says, “husband and wife.” Community property is also assumed whenever a husband and wife buy property, unless they specifically take a title as joint tenants or tenants in common.

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16
Q

Jane and Bob are married. Bob may dispose by will

a. a joint tenancy interest
b. a tenancy in common interest that is not part of community property
c. all of the community property
d. both b and c

A

b. a tenancy in common interest that is not part of community property

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17
Q

Sisters Jane and Susan inherit property from their parents. They might own the property as

a. joint tenants
b. tenants in common
c. community property
d. either a or b

A

d. either a or b

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18
Q

The most important characteristic of joint tenancy is

a. unity of time
b. right of survivorship
c. equal right to possession
d. equal right to convey

A

b. right of survivorship

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19
Q

While she was single, Jane owned a condo. After Jane and Bob marry and move into the condo, the condo is held as

a. community property
b. joint tenancy
c. separate property, unless otherwise agreed
d. community property with right of survivorship

A

c. separate property, unless otherwise agreed

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20
Q

Which is false?

a. a notice of pendency of action is a lien
b. a lis pendens serves as constructive notice to prospective purchasers of a property that a lawsuit affecting title to the property is pending
c. both a and b d. neither a nor b

A

a. a notice of pendency of action is a lien

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21
Q

Attachment Lien

A

A lien which is recorded by a local government when a property owner fails to pay for street improvement within 30 days of receipt of the bill. Cannot be foreclosed on if not paid.

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22
Q
  1. To obtain an attachment lien, the amount in controversy must be

a. $ 10,000 or more
b. $ 1,000 or more
c. $ 500 or more
d. $ 1,500 or more

A

c. $ 500 or more

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23
Q
  1. Which of the following is (are) false?

a. a preliminary notice must be given within 10 days after first providing labor or materials for work of improvement
b. an unlicensed contractor may not apply for mechanics lien
c. both a and b
d. neither a nor b

A

a. a preliminary notice must be given within 10 days after first providing labor or materials for work of improvement

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24
Q
  1. Which of the following words is least related to the others?

a. mechanics lien
b. lis pendens
c. tax lien
d. preliminary notice

A

c. tax lien

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25
Q

lis pendens

A

Latin for “action pending” a notice of pendency of action.

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26
Q
  1. Which of the following words is least related to the others?

a. judgment lien
b. abstract of judgment
c. involuntary lien
d. voluntary lien

A

d. voluntary lien

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27
Q
  1. A minor can become emancipated by

a. becoming validly married
b. serving in the military
c. both a and b
d. neither a nor b

A

c. both a and b

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28
Q
  1. A counteroffer

a. is effective when sent
b. is a rejection of the original offer
c. both a and b
d. neither a nor b

A

b. is a rejection of the original offer

Counteroffer - A new offer by an offeree that acts as a rejection of an offer by an offeror.

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29
Q
  1. A contract that, at the request of one party only, may be declared unenforceable, but is valid until it is so declared, is called

a. an executory contract
b. a void contract
c. a voidable contract
d. a unilateral contract

A

c. a voidable contract

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30
Q
  1. In California, the Statute of Limitations for written contracts generally is
    a. 1 year
    b. 2 years
    c. 4 years
    d. 10 years
A

c. 4 years

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31
Q
  1. Bob enters into an oral contract with Joe to rent Joe’s apartment for 9 months. The contract is

a. voidable because of the statute of frauds
b. not void because of the statute of frauds
c. void because of the statute of frauds
d. illegal because of the statute of frauds

A

b. not void because of the statute of frauds

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32
Q
  1. The law that requires the authorization of an agent to be of the same formality as is required for the act( s) the agent is hired to perform is called

a. the statute of limitations
b. the equal dignities rule
c. the rule against negative fraud
d. the law against self-help eviction

A

b. the equal dignities rule

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33
Q
  1. Which of the following is (are) false?

a. state and federal taxing authorities recognize a salesperson as an employee of the broker by requiring the broker to withdraw certain taxes from the salesperson’s paycheck
b. the CalBRE regulates the relationship between the broker and his or her salespersons as employer-employee relationships
c. neither a nor b
d. both a and b

A

a. state and federal taxing authorities recognize a salesperson as an employee of the broker by requiring the broker to withdraw certain taxes from the salesperson’s paycheck

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34
Q
  1. Which of the following is (are) true?

a. a third party who is aware that he or she is dealing with an authorized agent has the duty to ascertain the purpose and scope of the agency
b. though a principal is liable to third parties for the actions of an agent who acts within his or her authority, no liability is incurred by a principal for the acts of an agent beyond the scope of the agent’s actual or ostensible authority
c. both a and b
d. either a nor b

A

c. both a and b

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35
Q
  1. Which of the following is (are) false?

a. commingling results from the failure to properly segregate the funds belonging to the agent from the funds received and held on behalf of the seller or buyer
b. commingling is the unauthorized misappropriation and use of another’s funds or other property
c. both a and b
d. neither a nor b

A

b. commingling is the unauthorized misappropriation and use of another’s funds or other property

36
Q
  1. California’s antitrust law is based upon the

a. Cartwright Act
b. Realty Competition Act
c. Sherman Antitrust Act
d. none of the above

A

a. Cartwright Act

37
Q
  1. Which of the following is not relevant in determining whether a person is an independent contractor?

a. the employer’s degree of supervision of the person
b. the number of hours the person works
c. whether the employer provides an office for the person to work in
d. whether the employer withholds Social Security contributions for the person

A

b. the number of hours the person works

38
Q
  1. Bob and Sally are brokers who own separate realty companies. Over lunch one day, Sally tells Bob how her sales plan works and encourages Bob to try it out. Bob doesn’t respond one way or the other, but the next day he announces to his salespersons that the company will be adopting a new 6% commission sales plan — the one that Sally told him she was using.

a. Sally may be found guilty of price fixing.
b. Bob may be found guilty of price fixing.
c. Both Sally and Bob may be found guilty of price fixing.
d. none of the above

A

c. Both Sally and Bob may be found guilty of price fixing.

39
Q
  1. Jon financed his home with an 85% loan at a fixed annual rate of 5 ½%. Jon paid $ 3,895.83 interest the first month. How much did Jon pay for the house (rounded to the nearest dollar)?

a. $ 849,999
b. $ 722,499
c. $ 70,833
d. $ 999,999

A

d. $ 999,999

40
Q
  1. A rectangular lot contains 4.7 acres and is 220 feet wide. What is the depth of the lot?

a. 1023.66 feet
b. 930.60 feet
c. 969.05 feet
d. 974.6 feet

A

b. 930.60 feet

41
Q
  1. The maximum amount of costs and expenses in making the loan covered by the California Real Property Loans Act that are paid by the borrower, exclusive of title charges and recording fees, is

a. 10% of the loan amount
b. 5% of the loan amount
c. $ 390 d. none of the above
d. none of the above

A

d. none of the above

42
Q
  1. Which of the following terms least belongs with the others?

a. loan modification
b. trustee’s sale
c. right of reinstatement
d. nonjudicial foreclosure

A

a. loan modification

43
Q
  1. A loan under which payments are sufficient to pay off the entire loan by the end of the loan term is called

a. a balloon payment loan
b. a negative amortized loan
c. a fully amortized loan
d. an adjustable-rate loan

A

c. a fully amortized loan

44
Q
  1. In a deed of trust, what clause permits the trustee to sell the property if the borrower defaults

a. alienation
b. power of sale
c. due-on-sale
d. assumption

A

b. power of sale

45
Q
  1. Which of the following terms least belongs with the others?

a. deficiency judgment
b. due-on-sale clause
c. judicial foreclosure
d. sheriff’s sale

A

b. due-on-sale clause

46
Q
  1. One of the primary concerns of the SAFE Act is with

a. ensuring that new homes are built to the latest safety standards as set by the FHFA
b. reducing mortgage fraud
c. both a and b
d. neither a nor b

A

b. reducing mortgage fraud

47
Q
  1. Which of the following terms least belongs with the others?

a. source of income
b. property due diligence
c. appraisal
d. preliminary title report

A

a. source of income

48
Q
  1. PMI stands for

a. primary mortgage insurance
b. property mortgage insurance
c. primary mortgage investment
d. none of the above

A

d. none of the above

PMI - Private Mortgage Insurance, mortgage insurance that lenders often require for loans with an LTV more than 80%.

49
Q
  1. The law requires lenders to provide borrowers with disclosures as to when PMI is no longer required on the borrowers’ loans is referred to as

a. Nationwide Mortgage Licensing Act
b. Homeowner’s Protection Act
c. Federal Home Loan Protection Act
d. none of the above

A

b. Homeowner’s Protection Act

50
Q
  1. The completion of 20 hours of pre-license education is required in certain instances by the

a. FHFA Licensing Act
b. CLM Act
c. SAFE Act
d. none of the above

A

c. SAFE Act

51
Q
  1. What is the minimum number of active service days that qualifies a veteran for a CalVet loan?

a. 60
b. 90
c. 181
d. none of the above

A

b. 90

52
Q
  1. Child support would likely be included in

a. front-end ratio
b. LTV
c. PMI
d. none of the above

A

d. none of the above

53
Q
  1. Cost recovery is the recoupment of the purchase price of a property through

a. capitalization depreciation
b. deferred maintenance
c. book depreciation
d. preventive maintenance

A

c. book depreciation

54
Q
  1. A comparable has an inferior view to the view of the subject property. An appraiser using the sales comparison approach will

a. adjust the sale price of the comparable up
b. adjust the sale price of the comparable down
c. make no adjustment for view
d. adjust the sale price of the subject property down

A

c. make no adjustment for view

55
Q
  1. A decrease in land value might result from

a. the principle of cost recovery
b. functional obsolescence
c. principle of supply and demand
d. book depreciation

A

c. principle of supply and demand

56
Q
  1. A Self-Contained Report is also referred to as a

a. Form Report
b. Restricted Use Report
c. Summary Report
d. none of the above

A

d. none of the above

57
Q

The principle of substitution

A

The maximum value of a property is determined by the cost of acquiring an equally desirable substitute property. It is the basis of the market data approach and is also known as the comparison or substitution approach.

58
Q
  1. The cost-to-cure method of calculating depreciation

a. estimates the cost to cure the curable depreciation and subtracts it from the value of incurable depreciation
b. calculates the accrued depreciation by dividing the cost of the improvement by its useful life
c. calculates the accrued depreciation by dividing the cost of the improvement by the estimated useful life of a typical such improvement
d. none of the above

A

d. none of the above

59
Q

An escrow agent is someone with whom

A

the lender can feel secure that none of its loan funds will be disbursed until the promissory note and the deed of trust are signed by the buyer

60
Q

Debit

A

The selling price appears as a debit on the buyer’s closing statement. A debit decreases the account balance.

61
Q

Escrow

A

The deposit of instruments and/or funds with a neutral third party who has been instructed to carry out the provisions of an agreement or contract. The purpose of an escrow is to make sure that the conditions of transfer are met prior to closing.

62
Q
  1. A real estate broker must file a threshold report with the CalBRE if he or she engages in how many escrow activities in a calendar year?

a. 5
b. 4
c. 3
d. 2

A

a. 5

63
Q
  1. An escrow agent is

a. an employee of an escrow company
b. a corporation licensed by the Bureau of Real Estate
c. a real estate broker who refers a client to an escrow company
d. none of the above

A

d. none of the above

64
Q
  1. A real estate broker who is not licensed as an escrow agent

a. may advertise that he or she can conduct escrow for any real estate transaction
b. may conduct escrow for any real estate transaction
c. may not conduct escrow for any real estate transaction
d. none of the above

A

d. none of the above

65
Q
  1. A binding contract between buyer and seller may be

a. a deposit receipt
b. escrow instructions
c. either a or b
d. neither a nor b

A

c. either a or b

66
Q

Credit

A

Prepaid taxes appear as a credit to the seller in the escrow closing statement. A credit increases the account balance.

67
Q
  1. As the term is used in reference to escrow accounts, a credit is any

a. item payable by a party
b. item payable to a party
c. item deposited into an escrow
d. none of the above

A

b. item payable to a party

68
Q
  1. Verifying that the title policy is in place and sending the original policy to the borrower is an act typically performed by the

a. buyer
b. seller
c. lender
d. none of the above

A

d. none of the above

69
Q
  1. A lease for residential property that provides for an automatic extension of the lease if the tenant remains in possession after the expiration of the lease is voidable by the party who did not prepare the lease unless

a. the renewal or extension clause is in at least 10-point type
b. the renewal or extension clause is printed in at least eight-point boldface type and a recital of such clause is on the first page of the lease
c. the renewal or extension clause is in boldface type
d. none of the above

A

d. none of the above

70
Q
  1. The Costa-Hawkins Rental Housing Act

a. places restrictions on local rent control ordinances as they pertain to rent
b. does not place restrictions on local rent control ordinances as they pertain to evictions
c. both a and b
d. neither a nor b

A

c. both a and b

71
Q
  1. Bob’s lease is a gross lease. What percent of the property taxes on the premises is Bob responsible for paying?

a. all of the property taxes
b. none of the property taxes
c. some percentage of the property taxes as provided in the lease
d. none of the above

A

b. none of the property taxes

72
Q
  1. If a tenant remains in possession of leased property after the expiration of the lease and the landlord accepts rent from the tenant, the tenancy is presumed to be

a. an estate at will
b. an estate at sufferance
c. under a renewed lease
d. a freehold interest

A

c. under a renewed lease

73
Q
  1. Constructive eviction arises from

a. acts of government authorities
b. breaches by a tenant
c. breaches by a landlord
d. any of the above

A

c. breaches by a landlord

74
Q
  1. In the absence of a provision in the lease that states when rent is due, and in absence of a course of dealing between landlord and tenant, rent is due

a. at the beginning of each month
b. at the end of each month
c. at the beginning of each week
d. none of the above

Bainbridge, Jim (2014-01-01). California Real Estate Salesperson Practice Exams for 2014 (p. 90). City Breeze Publishing. Kindle Edition.

A

d. none of the above

75
Q
  1. The landmark case of Jones v. Mayer was held to be constitutional based on which Amendment to the U.S. Constitution?
    a. Fourteenth
    b. Thirteenth
    c. Twelfth
    d. First
A

b. Thirteenth

76
Q
  1. A corporation formed or of availed of primarily for the purpose of holding title to improved real property either in fee simple or for a term of years is

a. an undivided interest subdivision
b. the community apartment project
c. a residential unit owned in severalty, the boundaries of which are usually walls, floors, and ceilings, and an undivided interest in portions of the real property, such as halls, elevators, and recreational facilities
d. a stock cooperative

A

d. a stock cooperative

77
Q
  1. Condominiums are not regulated under the

a. Subdivided Land Law
b. Subdivision Map Act
c. both a and b
d. neither a nor b

A

d. neither a nor b

78
Q
  1. If a subdivision located outside of the United States is offered in California, the offeror must

a. register the project with the CalBRE
b. include certain disclaimers in advertising and sales contracts
c. both a and b
d. neither a nor b

A

b. include certain disclaimers in advertising and sales contracts

79
Q
  1. Of the following, which is not an exercise of police power?

a. zoning ordinances
b. building codes
c. subdivision laws
d. none of the above

A

d. none of the above

80
Q
  1. After the expiration of the 5-year redemption period on delinquent taxes the taxpayer

a. may not redeem the property
b. may redeem the property within two years
c. may redeem the property until the property is sold
d. may redeem the property within one year

A

c. may redeem the property until the property is sold

81
Q
  1. A business in which the taxpayer does not materially participate is

a. a possible source of passive income
b. a source of ordinary income
c. both a and b
d. neither a nor b

A

a. a possible source of passive income

82
Q
  1. To qualify as a 1031 exchange, it might be possible to exchange a farm for property to be used as

a. a principal place of residence
b. rental property
c. a vacation or second home
d. none of the above\

A

b. rental property

83
Q
  1. The two sources of passive income are

a. rental activity and salaries
b. rental activity and dividends
c. rental activity and gains on stocks and bonds
d. none of the above

A

d. none of the above

84
Q
  1. Under a tax postponement program

a. repayment of all postponed taxes must be made when the property is sold
b. repayment of all postponed taxes must be made when the owner of the property reaches the age of 62
c. the postponed taxes need not be repaid if the owner reaches the age of 90
d. none of the above

A

a. repayment of all postponed taxes must be made when the property is sold

85
Q
  1. It is possible to qualify as a 1031 exchange if an apartment building is exchanged for a property to be used as a

a. personal residence
b. vacation home
c. second home
d. none of the above\

A

d. none of the above

California Real Estate Prep 1 (1 decks)

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