DRE EXAM Flashcards
The California Legislature created the __________ to oversee, regulate, administer and enforce the real estate law.
California Department of Real Estate (DRE)
The chief officer of the California Department of Real Estate (DRE) is the:
Real Estate Commissioner
To be eligible for a broker or agent license, the applicant needs to be honest and truthful, complete mandatory education and
pass the qualifying exam
All real estate brokers and agents need to complete at least __________ of continuing education (CE) every four years to renew a license issued by the California Department of Real Estate (DRE).
45 Hours
The __________ is available to individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee for losses caused while acting as an agent.
Real Estate Recovery Fund
A residential mortgage primarily for personal, family or household use and secured by a deed of trust on a dwelling is known as a:
consumer purpose mortgage
Agency in real estate related transactions includes relationships between brokers and their:
principals & agents.
A broker’s representation of a client, such as a buyer or seller, is best undertaken:
on a written employment agreement signed by both the client and the broker.
The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions?
a. A purchase agreement.
b. A seller’s listing agreement.
c. A counteroffer.
d. All of the above
D. All the above
Failure of the seller’s agent to provide the seller with the Agency Law Disclosure prior to entering into the listing agreement may result in:
the loss of their fee
A(n) _________ arises when a broker or their agent, acting on behalf of a client, has a competing professional or personal bias which hinders their ability to fulfill the fiduciary duties they have undertaken on behalf of their client.
conflict of interest
A(n) __________ is a broker who simultaneously represents the best interest of opposing parties in a transaction, e.g., both the buyer and the seller.
dual agent
When a dual agency is established in a one-to-four unit residential sales transaction, the broker may not:
pass on confidential pricing information to the opposing parties.
Funds belonging to others which a broker and their agents handle when acting in a transaction are called:
Trust Funds
A broker is required to regularly account to an owner on the status, expenditure and location of negotiable trust funds, called a(n):
Owners Statement
Regardless of race, all citizens of the United States have the right to rent residential and commercial real estate under the federal:
Civil Rights Act
_________ involves the restriction of a person seeking to buy or rent a dwelling in a community in a manner that perpetuates segregated housing patterns.
Steering
A residential landlord may not induce or attempt to induce an individual to offer, or abstain from offering, a dwelling to prevent the entry of certain classes of people into the neighborhood, known as:
Blockbusting
A(n) ___________ is housing intended for and solely occupied by persons 62 years of age or older, or intended and operated for occupancy by persons of 55 years of age or older.
Senior Citizen housing project
California’s Unruh Civil Rights Act specifically prohibits discrimination by:
Businesses
Insurance companies not willing to deal directly with borrowers usually pay a loan servicing and preparation fee, and make real estate mortgage loans to purchase indirectly through:
A.savings and loan associations.
B.Freddie Mac.
C.mortgage companies.
D.FHA or the VA.
C. mortgage companies.
Explanation:
Insurance Companies usually make loans through mortgage companies. These “loan correspondents” negotiate and service their loans.
For the past 30 years, the Stone family has operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Stone’s grocery store is located. The store is now an example of a/an:
A.variance of the zoning laws.
B.violation of eminent domain.
C.illegal enterprise.
D.nonconforming use.
D. NONCONFORMING USE
Explanation
This is an example of “grandfathering” that’s common when new zoning rules are put into place. Basically it means that businesses and buildings that were in compliance before the new code was established may continue to operate or exist under their present owners. However, if the Stone’s want to sell their business, it must be to an enterprise that meets the new requirement.
A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to the mortgage company, and is called:
A.package financing.
b.discounting.
C.blanket financing.
D.warehousing.
D.warehousing
Explanation
Warehousing refers to the process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market.
The Rose family owns a home in a semi-rural area which is about five years old. Recently announced plans for a new regional airport will place their home directly in line with a main runway that ends one mile before their home. If the airport is constructed, will this diminish the value of the Rose home?
A.Yes, because of economic obsolescence.
B.Yes, because of functional obsolescence.
C.No, because noise from aircraft passing overhead is not recognized as affecting property values.
D.No, because value would increase due to the location close to the airport.
A. Yes, because of economic obsolescence.
Explanation
Economic (or External) Obsolescence occurs when factors unrelated to the property itself, and outside of the owner’s control, diminish its value. A quick way to judge whether or not a property has become economically obsolete is to analyze whether, under new circumstances, the location would still be chosen as a home site and, if yes, at what value compared with the current property.
A_________ owner actually owns real estate. This ownership is usually the air space and an interest in common of the land
CONDOMINIUM
A CONDOMINIUM owner ……
Actually owns the real estate
A __________ cooperative owner owns SHARES in a corporation that owns a building . the shareholder also gets property lease which enables the shareholder to occupy a unit
COOPERATIVE
A Cooperative Owner ….
Owns shares in a corporation that owns a building
Foreclosure is …..
The loss of property to pay off a debt
Forfeiture is
Losing the property because of disobeying a condition in the deed
Grantor
The one who gives sells or transfers the property to the grantee
Someone who gives sell or transfers the property to the grantee
Grantor
The grantee
Receives property
Receives property
Grantee
Leasehold
The leasehold Interest is the tenants interest on the property the tenant holds the lease
The tenants interest in the property ; The tenant holds the lease
Leasehold
Leased Fee
The owners or landlords interest
Mortgagor
The borrower
Mortgagee
The lender
Replacement Cost
The cost to produce a structure that is essentially the same as the existing structure but using modern materials and standards
The cost to produce a structure that is essentially the same as the existing structure but using modern materials and standards
Replacement Cost
Reproduction Cost
An estimate of the cost to produce exactly the same structure with the same materials
Tax credit
A sum Subtracted from taxes due
A sum Subtracted from taxes due
Tax credit
A tax deduction
A sum Subtracted from income
