Custom Quiz Practice

Question 1

The year in which the U.S. Supreme Court barred racial discrimination, both public and private, in the sale or rental of real property was
A) 1968.
B) 1960.
C) 1972.
D) 1984.

Answer 1

A) 1968.

Question 2

The real estate commissioner may require impounding of a purchaser's deposit in a subdivision when the blanket mortgage does not contain an unconditional release clause. This is for the benefit of the
A) mortgage holder.
B) purchaser.
C) owner of the subdivision.
D) lender.

Answer 2

B) purchaser.
In the event there is no release clause in a subdivision that is subject to a blanket encumbrance, one alternative for the real estate commissioner is to require an escrow for all or a part of the purchaser’s money as indicated in Section 11032 (a) of the Business and Professions Code.

Question 3

When a structural pest control report is a condition of a transfer by the buyer, the report must be delivered to the
A) lender.
B) escrow company.
C) broker.
D) buyer.

Answer 3

D) buyer.

Question 4

What would create an interest in property with possessory rights but no form of title?
A) Easement
B) Mortgage
C) Land contract
D) Sublease

Answer 4

D) Sublease

Question 5

Robert Smith signed an offer and gave the broker his personal check made payable to an escrow company as a deposit. He stipulated that the broker was to hold the check until his offer was accepted by the seller. The listing agreement specified that any deposit money must be a cashier’s check made payable to the seller. Under these circumstances, the broker should
A) submit the offer and hold the check.
B) hold the check but do not reveal to the seller that he has accepted the check until the seller accepts the offer.
C) refuse to accept a deposit that does not conform to the precise terms of the listing.
D) submit the offer and deposit the check in escrow.

Answer 5

A) submit the offer and hold the check.
The Real Estate Law permits a broker to hold the check when he has been ordered to do so by a principal. Since he was not authorized by the seller to accept a personal check, his acceptance of such a check makes him the agent of the buyer for the amount of the check.

Question 6

The required written agreement of broker-salesperson is a regulation of
A) no one.
B) NAR.
C) the real estate commissioner.
D) the Real Estate Board.

Answer 6

C) the real estate commissioner.

Question 7

Under California law, it is necessary to give notice to terminate
A) estate at sufferance.
B) estate for years.
C) None of these.
D) estate at will.

Answer 7

D) estate at will.
Under common law, an estate at will is one that is terminable at the will or unilateral decision of either party. By statute, California has modified the abrupt conclusion of such estates and requires advance 30-day notice of termination by each party. If this question had referred to common law, the answer would have been “None of these.”

Question 8

Mr. Borg purchased a new mobile home two months ago and contacted broker Wilson to take a listing on it. With respect to this information, Wilson
A) could not take a listing and sell the mobile home unless it was installed on a foundation and properly registered with the county recorder.
B) could not list the mobile home unless she was also licensed by the Department of Motor Vehicles as a Vehicle Dealer.
C) could take a listing anytime but could not sell the mobile home for one year.
D) could not list the mobile home if it had not been registered with the Department of Housing and Community Development.

Answer 8

D) could not list the mobile home if it had not been registered with the Department of Housing and Community Development.
Real estate brokers are not allowed to list mobile homes that are “new,” which means those not registered with the DMV or H&CD. An exception is allowed if the mobile home is bought to be installed on a “regular” lot and is handled as real property by a proper recordation with the county recorder. When a manufactured home is properly installed on a permanent foundation on the owner’s lot, it becomes real property and is no longer a mobile home.

Question 9

The degree of angle of a roof, or slope, is termed
A) hip.
B) span.
C) shingle.
D) pitch.

Answer 9

D) pitch.

Question 10

A buyer made an earnest money offer to purchase property, and the broker placed the funds in his trust account. After the seller's acceptance but prior to opening of escrow, the buyer informs the broker that he has revoked his offer and demands the return of the deposit. The broker, not wanting to be involved in the conflict with respect to the disposition of the deposit funds, deposited them with the appropriate court. This would be an example of
A) equitable disposition.
B) surrender.
C) interpleader.
D) assignment.

Answer 10

C) interpleader.
Interpleader is a court proceeding by the stakeholder of property who claims no proprietary interest in it, for the purpose of deciding who among claimants is legally entitled to the property.

Question 11

When is the best time for a seller to obtain a termite report?
A) Before putting the house on the market
B) Before opening escrow
C) Before determining the sales price
D) After the lender’s appraisal

Answer 11

A) Before putting the house on the market
A prudent seller, after consulting with the broker, obtains a structural pest control inspection report before putting the property on the market. The report can help in determining the pricing of the property.

Question 12

The objective of the Subdivided Lands Law is to protect purchasers of property in new subdivisions from fraud, misrepresentation, or deceit in the marketing of subdivided lots, parcels, units, and undivided interests in the State of California. An owner of land wants to subdivide his property. What is the minimum number of parcels he would have to create in his new subdivision in order to fall under the Subdivided Lands Law?
A) Four
B) Two
C) Three
D) Five

Answer 12

D) Five

Question 13

An agent is showing the home of an owner who has AIDS. Concerning the fact that the owner has AIDS, the agent should
A) disclose the fact whether asked or not.
B) never disclose the fact without consent of the owner.
C) disclose the fact only if someone inquires.
D) disclose the fact if the buyer expects to obtain an FHA loan.

Answer 13

B) never disclose the fact without consent of the owner.

Question 14

A licensee who has negotiated the sale of a mobile home would NOT be subject to discipline by the commissioner of real estate if he or she
A) sent a check to the Department of Housing and Community Development drawn on an account that has insufficient funds.
B) advertised a mobile home as being new when it is not new.
C) failed to deliver the certificate of registration to the Department of Motor Vehicles.
D) sold a mobile home that is greater than 8 feet in width and 32 feet in length.

Answer 14

D) sold a mobile home that is greater than 8 feet in width and 32 feet in length.
The first three choices are all grounds for discipline of a licensee. Under the provisions of Business & Professions Code Section 10131.6, licensees may “sell or offer to sell, buy or offer to buy, solicit prospective purchasers of, obtain listings of, or negotiate the purchase, sale or exchange of any mobile home if it has been registered.” There are no size limitations.

Question 15

A Fictitious Business Name Statement must be renewed and filed with the county clerk in the county where the business is located and operated
A) never, unless abandoned.
B) one year from original filing.
C) by June 30.
D) every five years, by December 31 of said year.

Answer 15

D) every five years, by December 31 of said year.

Question 16

In California, estates at will are created by
A) express agreement.
B) either express agreement or operation of law.
C) operation of law.
D) a properly written and executed document.

Answer 16

C) operation of law.

Question 17

Quiet enjoyment and possession usually refer to which circumstance?
A) Noise abatement
B) Neighbors creating a nuisance
C) Possessory interest of a tenant given by the owner of the paramount title
D) None of these

Answer 17

C) Possessory interest of a tenant given by the owner of the paramount title

Question 18

When a tenant is delinquent in his rent under a written lease, the landlord may evict the tenant by
A) filing a notice of default.
B) doing all of these.
C) bringing a court action.
D) giving a written three-day notice.

Answer 18

B) doing all of these.
When the tenant has breached the contract by not paying rent, the landlord must institute an unlawful detainer action in court. Part of this procedure is to give the tenant a three-day written notice and the action has to go through court.

Question 19

When a real estate broker submitted an offer at the full listed price to the seller, the seller inquired as to the ethnic background of the buyer. Under these circumstances the broker should
A) contact the buyer’s broker and obtain permission to disclose this information.
B) answer the seller’s question since this is a material fact.
C) refuse to answer the question since it violates the Rumford Act.
D) answer the question but caution the seller that the ethnic background of the buyer cannot be used as a basis for discrimination.

Answer 19

C) refuse to answer the question since it violates the Rumford Act.

Question 20

A man was going to build a home on a 50′ by 150′ lot and wanted it to fit in relation to its surroundings. This placement would be known as
A) elevation.
B) plottage.
C) orientation.
D) topography.

Answer 20

C) orientation.

Question 21

A broker told a customer that if he purchased a lot “it was a gold mine,” and that it could be sold for four times what he paid for it by the end of two years. The customer bought the lot but did not attempt to sell it for four years. At that time, he discovered that the broker who had sold him the lot was now selling similar lots for less than the original price of his lot. What course of action could be taken against the broker?
A) Nothing could be done about such oral statements, as the real estate market is speculative and always involves some risks for the purchaser.
B) Civil and disciplinary action could be taken against the broker.
C) Nothing could be done, as the statute of limitations has expired.
D) The broker was only “puffing” a common practice in selling real estate, and could not be held liable to the buyer; however, the broker could be disciplined by the Bureau of Real Estate.

Answer 21

B) Civil and disciplinary action could be taken against the broker.
The agent went beyond allowable “puffing” (putting things in their best light) in selling the property. While buyers do take risks, the agent made specific promises not substantiated. The buyer did not become aware of the misrepresentation until four years later, and the time for taking actions starts from this point. Civil liability and the possibility of disciplinary action by the Bureau of Real Estate exist in this situation.

Question 22

In a transaction in which the sale of a property has resulted, the broker must keep a copy of the deposit receipt for three years from the date of
A) deposit receipt.
B) closing of transaction.
C) recording of grant deed.
D) acceptance of offer.

Answer 22

B) closing of transaction.

Question 23

An owner of a small investment company advertised and sold properties for a commission. In his advertisements he did not indicate that he was a licensee, and in fact, he was not. He also made false statements in his advertising. Since he failed to disclose material facts, who would prosecute this person?
A) Real estate commissioner
B) District attorney
C) Attorney general
D) Local law agencies

Answer 23

B) District attorney

Question 24

Which situation, where an extension of credit for more than four installments is made, would be exempt from the federal Truth-in-Lending Act?
A) Purchase of agricultural land
B) Loan from a consumer finance company
C) $20,000 personal loan from a commercial institution
D) $20,000 household loan from a credit union

Answer 24

A) Purchase of agricultural land

Question 25

A seller asked his listing broker the ethnic background of a prospective buyer. In this situation,
A) disclosure is against the Rumford Act.
B) disclosure may be made but the broker must tell the seller it cannot affect his decision because of the California Fair Housing Law.
C) the broker should ask the buyer’s broker if it is all right to advise the seller of the buyer’s ethnic background.
D) the broker must disclose this information.

Answer 25

A) disclosure is against the Rumford Act.

Question 26

According to Title VIII of the Civil Rights Act of 1968 and an 1866 law enacted by Congress, a person discriminated against in the purchase of a home because of race could go into court and the court could determine all of these rulings EXCEPT
A) money damages for humiliation and embarrassment.
B) money damages and punitive damage to prevent a recurrence.
C) revocation and suspension of broker or salesperson’s license if the court concludes he has discriminated.
D) money damages and specific performance.

Answer 26

C) revocation and suspension of broker or salesperson’s license if the court concludes he has discriminated.
Only the real estate commissioner has the legal authority to suspend or revoke a license.

Question 27

In the general field of real estate advertising, you may encounter the terms classified, display, and reading notice. These terms apply to which advertising medium?
A) TV
B) Magazines
C) Newspapers
D) Direct mail

Answer 27

C) Newspapers