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California Real Estate - Principles > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

Pre-Approval

A

A step above pre-qualification, it involves verifying a purchaser’s credit, down payment, and employment history.

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2
Q

Listing Agent

A

The individual who enters into a listing contract with a principal.

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3
Q

Selling Agent

A

The individual who finds the buyer (or seller) for the property.

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4
Q

DEC

A

Disclose, Elect, Confirm

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5
Q

Broker/Agent Commission Split

A

The BROKER and SALESPERSON are bound by an Independent Contractor Agreement.

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6
Q

What is an Independent Contractor Agreement

A

The independent Contractor Agreement describes the commission split between the Broker and Salesperson

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7
Q

Is the Broker/Salesperson commission split negotiable?

A

Yes

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8
Q

Who pays the Salespersons commission?

A

The Broker

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9
Q

Who pays the Broker Salesperson Commission

A

The Principal

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10
Q

A broker received a $12,000 commission from a recent transaction. As listed in the Independent Contractor Agreement, the broker has 60/40 commission split with his agents (60% to the broker, 40% to the salesperson.)

The agent who worked on the transaction will receive the following: $12,000. What is the Split?

A

60% (to Broker)
12,000 x .60 = $7,200

40% (to Agent)
12,000 x .40 = $4,800

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11
Q

Who does the PRINCIPAL enter int a Listing Contract with?

A

The Broker

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12
Q

Resident Manager

A

An individual who supervises the care of an apartment complex while living in one of the units in the complex.

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13
Q

Mobile Home

A

A structure transportable in one of more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system.

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14
Q

Special Assessment

A

A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks, and street improvements

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15
Q

Documentary Transfer Tax

A

A State enabling Act that allows a country to adopt a documentary transfer tax to apply on all transfers of real property located in the county. Notice of payment is entered on the face of the deed or on a separate paper filled with the deed.

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16
Q

Ordinary Income

A

Income earned from providing services or the sale of goods (inventory)

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17
Q

Capital Gain

A

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis ( book value). Used for income tax computations. Gains are called short or long term based upon length of holding period after acquisition. Usually taxed at a lower rate than ordinary income.

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18
Q

Dual Agency

A

An Agency that represents the Buyer and Seller

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19
Q

In the mortgage industry, this is a step above pre-qualification, it involves verifying a purchaser’s credit, down payment, and employment history….?

A. Pre-approval
B. Commitment
C. Commissioned
D. Post-approval

A

A. Pre-Approval

20
Q

The individual who enters into a listing contract with a principal is known as the ….?

A. Dual Agent
B. Listing Agent
C. Selling Agent
D. Sub-agent

A

B. Listing Agent

21
Q

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation system is known as a ….?

A. Mobile Home
B. Movable Home
C. Slab on a Grade Home
D. Free Standing Home

A

A. Mobile Home

22
Q

Who is authorized to advertise a mobile home as a new….?

A. Mobile Home Dealer
B. Real Estate Agent
C. Real Estate Broker
D. Mobile Home Owner

A

A. Mobile Home Dealer

23
Q

A real estate broker can only sell a mobile home if they have been registered with ….?

A. California Bureau of Real Estate
B. Bureau of Mobile Homes
C. Housing of Community Development
D. Housing and Urban Development

A

C. Housing and Community Development

24
Q

A real estate banker cannot have 2 or more mobile homes offered for sale without first having a ….?

A Associate Broker’s License
B. Mobile Home Dealer’s License
C. Real Property License
D. Personal Property License

A

B. Mobile Home Dealer’s License

25
Q

A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks and street improvements is known as a ….?

A. Special Assessment
B. Condemnation
C. Transfer Tax
D. Levy

A

A. Special Assessment

26
Q

Taxation of manifestation of …..?

A. Civic Duty
B. Condemnation
C. Special Assessment
D. Police Power

A

D. Police Power

27
Q

According to this, State property taxes are limited to 1% of the fair market value….?

A. Proposition 21
B. Article 12-A
C. Section 1031
D. Proposition 13

A

D. Proposition 13

28
Q

Properties in California are assessed at which of the following events….?

A. Survey of property
B. Leasing of property
C. Purchase of sale of property
D. All of the above

A

C. Purchase of sale of property

29
Q

A property will be sold at a tax sale if property taxes are not paid for how many years…..?

A. 2
B. 3
C. 4
D. 5

A

D. 5

30
Q

The 1st installment of property taxes are due on……?

A. November 1st
B. December 1st
C.. February 1st
D. January 1st.

A

A. November 1st

31
Q

The 2nd installment of property taxes are due on….?

A. November 1st
B. December 1st
C. February 1st
D. January 1st

A

February 1st

32
Q

Income earned from providing services or the sale of goods (inventory) is known as …….?

A. Taxable Income
B. Ordinary Income
C. Business Income
D. Capital Income

A

B. Ordinary Income

33
Q

At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value) is referred to as ……?

A. Capital Gain
B. Income Gain
C. 1031 Gain
D. Taxable Gain

A

A. Capital Gain

34
Q

Capital Gains are typically taxed at a lower rate than the ordinary income….?

A. T
B. F

A

A. True

35
Q

Capital gains is 15% for high earners

A. T
B. F

A

B. False

36
Q

An owner is exempt from paying capital gains on up to how much profit on an owner-occupied residence, if he or she has lived there for at least 2 of the previous 5 years..,,,,?

A. 100,000
B. 250,000
C. 350,000
D. 500,000

A

B. 250,000

37
Q

a married coupe are expert from paying capital gains up to how much profit on an owner-occupied residence, if they lived there for at least 2 of the previous 5 years…..?

A. 100,000
B. 250,000
C. 350,000
D. 500,000

A

D. 500,000

38
Q

How long does an individual have to identify another property in order to take advantage of a 1031 exchange…..?

A. 30 Days
B. 45 Days
C. 60 Days
D. 180 Days

A

B. 45 Days

39
Q

How long does an individual have to close on another property in order to take advantage of 1031 exchange……?

A. 30 Days
B. 45 Days
C. 90 Days
D. 180 Days

A

D. 180 Days

40
Q

Once a mobile home is no longer available for sale… how long do you have to remove the advertisement?

A

48 hours

41
Q

In order to execute a 1031 exchange, a qualified intermediary must be used…..?
A. T
B. F

A

A. True

42
Q

The listing agent can also be the selling agent….?

A. T
B. F

A

A. True

43
Q

Disclosure to the client must be executed prior to signing the listing agreement?

A. T
B. F

A

A. True

44
Q

An individual who supervises the care of an apartment complex while living in one of the units in the complex is known as a ……?

A. Building Architect
B. Property Manager
C. Real Estate Agent
D. Resident Manager

A

D. Resident Manager

45
Q

Resident managers are required to hold a real estate license in the State of California?

A. T
B.. F

A

B. False

46
Q 
In California, resident managers are required in buildings with at least how many dwelling units…..?
A. 1
B  4
C. 10 
D.  16
A

D. 16

47
Q

In the Property Management Agreement, who is the agent…….?

A. Landlord
B. Property Manger
C. Real Estate Broker
D. Resident Manager

A

B. Property Manager

California Real Estate - Principles (10 decks)

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