Legal Aspects of Real Estate Flashcards
Long established rules derived from judicial decisions founded on English law are sometimes referred to as:
a. cannon law
b. common law
c. colonial law
d. capital law
b
Procedural law:
a. established and defines rights and duties
b. is really Spanish law
c. is strictly federal law
d. sets out the methods of enforcing substantive rights
d
A litigant is:
a. the plaintiff
b. the defendant
c. neither a nor b
d. both a and b
d
A tort is a:
a. criminal wrong
b. type of contract
c. civil wrong
d. capital offense
c
Amendments to the Constitution guarantee which of the following with regards to property and the real estate profession?
a. Due process
b. Equal protection
c. Just compensation
d. All of the above
d
The laws adopted by Congress and the state legislatures are called:
a. ordinances
b. articles
c. acts or statutes
d. bills
c
A proposed law in Congress is called a(n):
a. a, ordinance
b. bill
c. act
d. petition
b
Most legislation becomes effective:
a. within 30 days of adoption
b. December 31 of the same year
c. immediately
d. January 1 of the next year
d
The rules of law developed by judges are called:
a. tort law
b. judicial law
c. case law
d. code law
c
A court decision may be binding on all other judges. It depends on:
a. jurisdiction
b. position in the court hierarchy
c. a written opinion
d. all of the above
d
An opinion written by a court states:
a. the decision
b. the facts of the case
c. the court’s reasoning
d. all of the above
d
An appellate court will NOT change a trial court’s decision if:
a. the judge committed an error
b. the losing party considered the jury incompetent
c. the error concerned a question of law
d. the error was prejudicial
b
A case will NOT necessarily be heard in state court if:
a. no federal question is present
b. there is no diversity of citizenship
c. the U.S. government is a party
d. it involves real property issues
c
Litigants are able to find out more about the disputed facts in a case through:
a. the discovery process
b. settlement negotiations
c. a summons and complaint
d. the trial proceedings
a
The oldest method of describing land is:
a. government survey
b. lot and block
c. metes and bounds
d. sections and township
c
The starting point of a metes and bounds description is called the:
a. starting point
b. point of beginning
c. beginning point
d. origination point
b
The government survey system is also called the:
a. rectangular survey method
b. principal meridian method
c. base line method
d. square survey method
a
Which of the following lines do NOT run east and west?
a. Principal meridians
b. Base lines
c. Correction lines
d. Township lines
a
The square of land located at the intersection of a range and township tier is called a:
a. government lot
b. subdivision plat
c. township
d. range lot
c
Irregular sections are called:
a. odd township
b. government lots
c. convergence ranges
d. surveying lots
b
Many final subdivision maps include which of the following?
a. Measurements of area
b. Easement locations and dimensions
c. Location of survey markers
d. All of the above
d
A bench mark is a(n):
a. position where a bench is located
b. marker that states the location relative to the datum
c. artificial horizontal plane of elevation
d. none of the above
b
Natural attachments that are planted and cultivated are called:
a. fructus naturales
b. fructus plantas
c. fructus humungus
d. fructus industriales
d
Which of the following is NOT a test for a fixture?
a. Method of attachment
b. Age of the fixture
c. Adaptation to the realty
d. Relationship of the parties
b
Fixture installed for use in a tenant’s business are called:
a. real property fixtures
b. business fixtures
c. trade fixtures
d. operation fixtures
c
Which of the following is a water right?
a. Riparian
b. Overlying
c. Appropriative
d. All of the above
d
The fact that a property owner who drills a well on his or her land owns all of the oil and gas the well produces, falls under the:
a. law of private withdrawal
b. 1922 Bureau of Mines law
c. riparian rights law
d. rule of capture
d
Support from adjacent land is called:
a. lateral support
b. subjacent support
c. horizontal support
d. alluvial support
a
A fee simple estate is:
a. inheritable
b. transferable
c. perpetual
d. all of the above
d
The duration of a life estate is based on:
a. the laws of the county in which the property is located
b. the length of someone’s life
c. established state laws
d. the wishes of the life tenant
b
A leasehold estate for a fixed time period is a(n):
a. periodic tenancy
b. estate for years
c. tenancy at will
d. none of the above
b
Which of the following gives someone other than the owner a right to do something on the land or take something from the land?
a. Neutral easement
b. Restrictive easement
c. Negative easement
d. Positive easement
d
The land burdened by an easement is called the:
a. servient tenement
b. dominant tenement
c. servient tenant
d. dominant tenant
a
When someone creates an easement by making long and continuous use without the permission of the owner, it is called:
a. easement by prescription
b. easement at will
c. easement in gross
d. a notorious easement
a
Unlike an easement, a license does NOT:
a. grant permission to enter another’s property
b. have a temporary time period
c. create an interest in the property
d. allow the owner to revoke it
c
A mortgage is an example of a(n):
a. mechanic’s lien
b. performance lien
c. Involuntary lien
d. voluntary lien
d
A property tax is actually a:
a. voluntary lien
b. general lien
c. specific lien
d. special lien
c
Which of the following is NOT subject to property taxes?
a. Federal property
b. State property
c. Educational property
d. All of the above
d
The tax on a parcel of real estate is calculated by multiplying the tax rate by the :
a. gross domestic product
b. assessed (taxable) value
c. consumer price index
d. county sales tax rate
b
The first installment on property taxes is delinquent of not paid by:
a. 5PM on April 10
b. 5PM on November 1
c. 5PM on December 10
d. 5PM on June 1
c
A state tax lien would be junior to the recorded interest of a:
a. mortgage or trust deed lender
b. mechanic’s lien holder
c. judgment lien creditor
d. all of the above
d
A declared homestead exemption is established by:
a. signing a promissory note
b. recording a declaration of homestead
c. running a 3-day notice in a paper of general circulation
d. posting an 8 x 10 sign on the homesteaded property
b
The most basic form of concurrent ownership is:
a. tenancy in common
b. severalty
c. joint tenancy
d. community property
a
A tenant in common is free to:
a. sell his or her interest
b. will his or her interest
c. encumber his or her interest
d. any of the above
d
Joint tenancy requires unity of possession and:
a. unity of interest
b. unity of time
c. unity of title
d. all of the above
d
Severance, with regards to joint tenancy:
a. terminates co-ownership
b. eliminates the right of survivorship
c. changes joint tenancy into a partnership
d. is the same as partition
b
A form of co-ownership that can only be held by spouses and registered domestic partners is called:
a. community property
b. joint tenancy
c. tenancy in common
d. tenancy in partnership
a
One spouse can’t give away community property without the other’s consent. This falls under the:
a. joint spousal requirement
b. unilateral requirements
c. rejoinder requirements
d. joinder requirements
d
If a spouse with two children dies intestate, the deceased spouse’s interest in the community property will be distributed with:
a. all of the going to the surviving spouse
b. two-thirds going to the spouse; one-third to the children
c. one-third to the spouse; two-thirds to the children
d. one-half to the spouse; one-half to the children
a
When a couple changes a joint tenancy agreement to community property, it is called a(n):
a. intra-property agreement
b. transmutation agreement
c. co-ownership transformation agreement
d. spousal property change agreement
b
A corporation organized under the laws of another state is a:
a. foreign corporation
b. domestic corporation
c. Sovereign corporation
d. limited corporation
a
With a general partnership, the liability for debts of the partnership lies with:
a. the stockholders
b. the chief general partner
c. each individual partner
d. the limited partner
c
To transact business using a partnership name, the partners must publish and record a:
a. fictitious business name certificate
b. notice of “in business” certificate
c. business license
d. partnership name agreement
a
With a limited partnership:
a. the general partners have limited liability
b. the general and limited partners have equal liability
c. the stockholders have main liability
d. the limited partners have limited liability
d
_ is the minimum number of investors that a real estate investment trust (REIT) must have?
a. 50
b. 100
c. 150
d. 200
b
Which of the following describes an arrangement where the buyers purchase the exclusive right to possession of the property for specified periods each year?
a. A syndicate
b. A common interest development
c. A community apartment project
d. A timeshare
d
Authority intentionally given by the principal to an agent is called:
a. actual authority
b. ostensible authority
c. direct authority
d. intentional authority
a
A real estate agent/broker with authority limited to the single transaction of selling a particular house is a:
a. secret agent
b. probationary agent
c. general agent
d. special agent
d
A agency may be created by:
a. express agreement
b. ratification
c. estoppel
d. all of the above
d
When a person acts on another’s behalf without agency authorization, and later the principal approves these actions, it is known as:
a. estoppel
b. ratification
c. approval in remainder
d. blind authority
b
With an independent contractor:
a. he or she does not work hours set by the employer
b. minimum wage laws apply
c. the employer is responsible for any tort committed by the contractor
d. he or she must follow the employer’s instructions to the letter
a
If a cooperating broker is the procuring cause in bringing about the sale of the property, who pays him or her a share of the commission?
a. The listing broker
b. The buying broker
c. The listing salesperson
d. None of the above
a
An agency is terminated by operation of law if:
a. either party dies
b. either party goes bankrupt
c. the agent loses his or her license
d. any of the above
d
A unilateral termination of the agency relationship by the principal would be achieved through:
a. revocation
b. renunciation
c. mutual agreement
d. operation of law
a
Which of the following does NOT require a real estate license to represent another in a specific real estate transaction?
a. Attorney
b. Trustee
c. Executor
d. Any of the above
d
A real estate license must be renewed:
a. every year
b. every 2 years
c. every 4 years
d. every 6 years
c
A broker must keep records of each transaction for at least three years beginning:
a. from the closing date
b. from the date escrow instruction were signed
c. from the listing date, if the transaction was complete
d. none of the above
a
With few exceptions, a California broker’s client trust account must be maintained at a financial institution:
a. in the broker’s city
b. in California
c. within 20 miles of the broker’s main office
d. anywhere in the United States
b
In a listing agreement for the sale of four or less residential units, a broker’s commission must:
a. exceed 5.25 percent
b. be preprinted in a standard listing agreement form
c. be negotiable between the seller and the broker
d. all of the above
c
A buyer is considered “able” if he or she has which of the following?
a. Enough cash to complete the sale
b. A strong credit rating and adequate personal assets
c. A binding commitment for a loan to finance the purchase
d. Any of the above
d
The agency disclosure form is NOT required for the sale of a:
a. condominium unit
b. residential house
c. commercial property
d. manufactured home
c
An agent owes his or her principal the basic fiduciary duty of:
a. reasonable care and skill
b. diligence, good fait, and loyalty
c. disclosure of material information
d. all of the above
d
A real estate agent representing a seller should be especially careful to inform the principal of:
a. the true value of the property
b. all offers to purchase
c. the identity of the purchaser
d. all of the above
d
When a broker exaggerates the market value of the property in order to get a listing, he or she breaches his or her duty to:
a. act in good faith
b. act loyalty
c. act with reasonable care and skill
d. act with confidentiality
a
When the agent buys a property for himself or herself (without the owner’s knowledge) and then sells it again for a profit, it is called:
a. self-profit
b. self-dealing
c. self- serving negotiations
d. self-indulgence buying
b
Which of the following is NOT an agent’s duty to a third party?
a. Good faith
b. Fair dealing
c. Fiduciary relationship
d. Disclosure of known material facts
c
The transfer disclosure statement is usually signed by the:
a. seller
b. listing agent
c. selling agent
d. all of the above
d
Actual fraud involves:
a. intentional misrepresentation
b. concealment
c. negligent misrepresentation
d. any of the above
d
Generally. a seller or agent can’t be sued for misrepresentation if his or her statements were merely:
a. opinions
b. predictions
c. puffing
d. any of the above
d
The most widely recognized code of ethics in the real estate industry is the:
a. NAR code of Ethics
b. CAR code of Ethics
c. DAR code of Ethics
d. DRE code of Ethics
a
A breach of a legal duty may result in all of the following, except:
a. compensatory damages
b. beneficial damages
c. punitive damages
d. criminal prosecution
b
Where damages are concerned, the closest word to “compensatory” is:
a. excessive
b. punitive
c. actual
d. exemplary
c
A client who is awarded damages against a real estate agent cased on fraud, but is unable to collect, may be entitled to payment out of the:
a. Real Estate Commissioner’s Special Fraud
b. Real Estate Collection Account
c. Real Estate General Account
d. Real Estate Recovery Account
d
A payment from the Real Estate Recovery Fund must be based on a judgment against a real estate agent for:
a. intentional fraud
b. misrepresentation or deceit
c. conversion of trust funds
d. any of the above
d
A void contract is:
a. valid unless rejected by one party
b. one where either party can sue for performance
c. no contract at all
d. binding and enforceable
c
To make a valid contract, a person generally must be:
a. 14 years old
b. 16 years old
c. 18 years old
d. 21 years old
c
An emancipated minor is a person under the age of 18 who:
a. is married or has been married
b. is on active duty with the armed forces
c. has received a court declaration of emancipation
d. any of the above
d
For a contract to be a binding obligation, all the parties:
a. must orally present the conditions
b. must consent to its terms
c. must agree to the shortest closing period
d. must agree to maximum consideration
b
Which of the following is NOT a requirement for acceptance of an offer?
a. It can only be accepted by the offeror
b. It must be communicated to the offeror
c. It must be made in the manner specified
d. It must not vary the terms of the offer
a
A contractual promise is distinguished from the promise of a gift by the exchange of:
a. consideration
b. money
c. real property
d. title
a
When the contract is made, the “purpose” of a contract must be:
a. enforceable
b. lawful
c. not voidable
d. reasonable
b
A written contract can be modified orally:
a. if new consideration is supplied
b. if the agent agrees to it
c. even if the original contract said it must be in writing
d. whether or not the contract is subject to the statute of frauds
a
When a promisor’s obligation depends on the occurrence of a particular event, that event is called a:
a. remedy
b. stipulation
c. modification
d. condition
d
In California, a lawsuit based on a written contract generally must be filed no later than how many years after the breach occurred?
a. 2 years
b. 4 years
c. 6 years
d. 7 years
b
For many oral contracts involving real property, any lawsuit must be filed within:
a. 2 years of the breach
b. 4 years of the breach
c. 6 years of the breach
d. 8 years of the breach
a
The term “parol” most closely means:
a. intended
b. assumed
c. to free from
d. spoken
d
When the parties agree in advance to set damages at a specified sum, the contract is said to contain a(n):
a. arbitration
b. liquidated damages clause
c. settlement statement
d. provisional damages clause
b
A court order directing a breaching party to pay a sum of money to the nonbreaching party is called:
a. rescission
b. specific performance
c. damages (money)
d. injunction
c
When the court orders a breaching party to carry out the performance he or she promised in the contract, it is called:
a. restrictive performance
b. equitable performance
c. specific performance
d. none of the above
c
A court order directing a person to do something or refrain from doing something is called a(n):
a. rescission
b. specific performance
c. summary judgment
d. injunction
d
An employment agreement between a seller and a broker is called a:
a. broker-seller employment agreement
b. listing agreement
c. disclosure agreement
d. representation agreement
b
A listing agreement can only be assigned to another broker:
a. after it expires
b. after the first 30 days of the listing
c. with the commissioner’s consent
d. with the client’s consent
d
The exclusive right to sell agency listing must contain:
a. a termination date
b. financing conditions
c. full disclosure of property defects
d. the buyer’s signature
a
Which of the following makes the client liable for a commission during a specified period after the listing expires?
a. A disclosure paragraph
b. An agreement clause
c. A remainder clause
d. An extender clause
d
The standard purchase agreement contains:
a. an offer to purchase real property
b. a receipt for the good faith earnest money
c. the seller’s agreement to pay listing broker’s compensation
d. all of the above
d
Most agreements between buyers and sellers are:
a. conditional
b. unilateral
c. secret
d. unenforceable
a
Under the compensation provision of the CAR purchase agreement, if the buyer defaults, the broker is entitled to:
a. half of the damages the buyer receives
b. half of the damages the seller receives
c. all of the damages the seller receives
d. twice the amount of damages the seller receives
b
Under the compensation provision of the CAR purchase agreement, if the buyer defaults the broker is entitled to:
a. usually, the full commission agreed to
b. whatever is agreed to in arbitration
c. 10 percent of the agreed to commission
d. half of the forfeited deposit
d
When an offeree varies any of the terms in an offer, it is called a:
a. substitute offer
b. counter offer
c. nuevo offer
d. propositional offer
b
A contract giving one party the right to do something without obligating him or her to do it is a(n):
a. land contract
b. rental contract
c. option
d. intra-state contract
c
To make an option irrevocable, the option must be supported by:
a. a signed contract
b. a property description
c. terms of the sale
d. all of the above
d
Someone who has the right to buy a property only if and when the owner decides to sell it is said to hold a(n):
a. right of redemption
b. option
c. standard purchase right
d. right of first refusal
d
The primary method by which conflicts are resolved is:
a. negotiation
b. arbitration
c. mediation
d. court trial
a
Integrative negotiation can best be described as:
a. competitive
b. lose-win-lose
c. win-win
d. win-lose
c
A neutral third party assists the parties in voluntarily negotiating a settlement to the dispute in:
a. arbitration
b. mediation
c. negotiation
d. predisponsition
b
A section of a written contract that allows for mediation should a dispute arise is called a(n):
a. resolution clause
b. dispute clause
c. negotiation clause
d. mediation clause
d
When a mediator meets with one of the partied to get them to focus on their interests and needs, it is called a(n):
a. forum
b. one party mediation
c. caucus
d. illegal meeting
c
Generally, most arbitration proceedings are:
a. binding
b. nonbinding
c. reviewable by the courts
d. none of the above
a
A court-annexed arbitration may be ordered by the superior court when there is less than:
a. $20,000 at stake
b. $30,000 at stake
c. $40,000 at stake
d. $50,000 at stake
d
A binding arbitration is:
a. not reviewable by the courts
b. reviewable if judicial in nature
c. reviewable if private in nature
d. reviewable by the courts
a
If no arbitration clause is in a contract, the parties can still go to arbitration by executing a(n):
a. nonbinding agreement
b. submission agreement
c. ADR agreement
d. DRE arbitration agreement
b
A subpoena for books and records is called:
a. subpoena duces tecum
b. subpoena primera
c. subpoena selectus
d. subpoena suprema
a
An arbitrator’s decision is called a(n):
a. declaration
b. final judgment
c. dictum
d. award
d
If one party refuses to comply with the arbitration award, the other party may file with the court a:
a. strike list
b. submission agreement
c. subpoena duces tecum
d. petition to confirm
d
A license hearing process to deny issuance of a real estate license is initiated by the Commissioner filing a:
a. notice of possible revocation
b. statement of facts
c. statement of issues
d. notice of license review
c
A hearing procedure by the Real Estate Commissioner to suspend or revoke a real estate license is initiated with the filing of a(n):
a. statement of issues
b. accusation
c. prelim statement
d. hearing subpoena
b
In reference to a deed, the owner of the property who is transferring title is called the:
a. grantor
b. grantee
c. deedor
d. testator
a
When a document has been signed in front of a notary public, it is said to be:
a. recorded
b. acknowledged
c. registered
d. insured
b
Acceptance of a transfer of ownership must take place:
a. in the presence of two witnesses
b. in the county where the property is located
c. within 48 hours of the offer
d. while the one granting is alive
d
An important difference between a grant deed and a quitclaim deed is that the grant deed:
a. conveys after-acquired title
b. clears up clouds on title
c. is nontransferable
d. includes undisclosed encumbrances
a
An amendment to a will is called a(n):
a. probate
b. devise
c. codicil
d. addendum
d
A will only transfers property:
a. at the owner’s request
b. if it is witnessed
c. if it is oral
d. when the owner dies
c
When property reverts to the state because no heirs can be located, it is called:
a. probate
b. escheat
c. revocation
d. alienation
b
All of the following can be adversely possessed, except:
a. residential property
b. vacant land
c. public lands
d. vacation property
c
In California, title can be acquired by adverse possession if the possession is:
a. actual, open. and notorious
b. hostile to the owner’s interest
c. exclusive and uninterrupted for five years
d. all of the above
d
Taking away property through an eminent domain action must include:
a. a court trial
b. approval of the Commissioner
c. just compensation
d. approval of the property owner
c
A person gives a gift of privately owned land to the public through:
a. private condemnation
b. severance
c. inverse condemnation
d. dedication
d
When something is added to a parcel of real property, the property owner acquires title to the addition by:
a. accreditation
b. accession
c. appreciation
d. none of the above
b
Notice given by the recording of documents with a public official which is something you should know about, but don’t actually know about, it called:
a. constructive notice
b. actual notice
c. due diligence notice
d. probable notice
a
In Southern California, escrow services are most often provided by:
a. banks
b. independent escrow companies
c. general insurance companies
d. title insurance companies
b
The most significant factor in estimating a closing date is the:
a. buyer’s financial condition
b. seller’s ability to move out on time
c. agent’s ability to handle the escrow
d. state of the finance market
d
Escrow agents’ written authorization to deliver the deposited funds and documents are called the:
a. MLS instructions
b. Commissioner’s instructions
c. escrow instructions
d. none of the above
c
Escrow instructions can also act as a(n):
a. contract of sale
b. listing agreement
c. disclosure statement
d. inspection report
a
When title passes on the date the deed or funds were deposited in escrow, instead of the date all conditions were performed, it is known as:
a. the doctrine of first in, first out
b. conversion
c. the doctrine of relation back
d. an interpleader action
c
The escrow agent turns the escrow funds over to the court to settle a dispute in a(n):
a. relation back action
b. interpleader action
c. conversion action
d. none of the above
b
A credit is a(n):
a. lender’s charge
b. escrow officer’s charge
c. amount owned
d. amount received
d
Which is NOT a RESPA required?
a. The loan applicant must receive the Settlement Procedures and You booklet
b. The lender may pay referral fees to anyone
c. The lender must give a good faith estimate of settlement costs
d. The lender must itemize all loan settlement charges
b
A trust account maintained by the lender for paying property taxes and mortgage insurance premiums is a(n):
a. processing account
b. assumption account
c. impound account
d. interim account
c
After the purchase price, the buyer’s second largest debit at closing is typically the:
a. assumption fee
b. processing fee
c. discount points
d. loan origination fee
d
The seller’s major cost at closing is usually the:
a. title insurance
b. payoff of any existing loans
c. appraisal fee
d. loan organization fee
b
Which of the following would NOT generally be charged to the buyer in escrow?
a. Hazard insurance
b. Title insurance
c. Prorated property taxes
d. The broker’s commission
d
The seller’s major credit in escrow is the:
a. documentary transfer tax
b. interest on any loan
c. purchase price
d. hazard insurance
c
The documentary transfer tax is ordinarily paid by the:
a. seller
b. buyer
c. lender
d. depends on the local tradition
a
A standard title insurance policy covers:
a. forged deeds
b. recorded encumbrances not listed as exceptions
c. forget deeds
d. all of the above
d
With a promissory note, the loan amount is called the:
a. principal
b. interest
c. due and payable clause
d. secured capital
a
A promissory note that includes periodic payments of interest only is called a(n):
a. installment note
b. balloon payment note
c. straight note
d. amortized note
c
The key difference between a mortgage and a trust deed is that all a trust deed:
a. must be foreclosed judicially
b. is usually foreclosed nonjudicially
c. uses a promissory note
d. creates a lien on everything that would be transferred by a deed
b
A power of sale clause:
a. allows the trustor to sell the property at any time
b. empowers the beneficiary to sell the property
c. allows the trustee to sell the property in case of default
d. is not used with a deed of trust
c
A document stating that the debt secured by the deed of trust has been discharged is called a:
a. promissory note
b. full reconveyance
c. partial reconveyance
d. notice of completion
b
When a borrower defaults and the lender has the right to declare the entire balance due immediately, the loan has a(n):
a. default interest rate clause
b. right to collect clause
c. acceleration clause
d. demand clause
c
When a new owner assumes an existing lien:
a. the new owner takes responsibility for the lien
b. the former owner is still primarily responsible for the lien
c. the former owner has no responsibility for any deficiency judgement
d. the new owner cannot lose the property to foreclosure
a
To start the foreclosure process, the beneficiary asks the trustee to record a:
a. belief of abandonment
b. notice of default
c. request for notice of default
d. default judgment
b
The borrower in a mortgage is called the:
a. trustor
b. mortgagor
c. trustee
d. mortgagee
b
In a land contract, the buyer holds:
a. equitable title
b. legal title
c. partial title
d. no title
a
The sum of all fees the lender charges a borrower in exchange for granting the loan is the:
a. equity finance charge
b. approximate finance charge
c. total finance charge
d. teaser rate
c
Under the Mortgage Loan Broker Law, a disclosure statement is NOT required:
a. when the commission paid by the borrower is three percent or more
b. whenever a real estate agent negotiates a loan
c. if the lender is an institutional lender
d. none of the above
c
The Act that requires all states to implement a licensing system for residential mortgage loan originators is the:
a. Mortgage Loan Originator Act
b. Nationwide Lending Act
c. FREE Act
d. SAFE Act
d
The SAFE Act:
a. requires all states to implement a licensing system for residential mortgage loan originators
b. requires all states to implement a licensing system for mortgage loan brokers
c. requires all states to implement a licensing system for real estate investment counselors
d. none of the above
a
In a smaller community, the city council will often act as the:
a. planning commission
b. zoning board
c. board of supervisors
d. LAFCO
a
Which organization would oversee the merging between two communities?
a. MTC
b. FTC
c. LAFCO
d. ABAG
c
A permit that allows an owner to build a structure or use a property in a way that isn’t otherwise allowed is called:
a. a pardoned use
b. rezoning
c. redistricting
d. a use variance
d
An amendment to the zoning law is called a:
a. rezone
b. variance
c. conditional use permit
d. special exception
a
Which of the following is a type of map that can only be filed for a subdivision with two-to-four lots?
a. A tentative subdivision map
b. A parcel map
c. A final map
d. A partial map
b
When subdivision property in one state is offered for sale in another state, a developer may have to comply with the:
a. Common Border Map Act
b. Interstate Property Act
c. Interstate Land Sales Full Disclosure Act
d. Federal Land disclosure Act
c
The National Environmental Policy Act established the:
a. EPA
b. CEQ
c. EIS
d. all of the above
d
The California Law that is similar to the National Environmental Policy Act is the:
a. MIP
b. CESA
c. CEQA
d. CCA
c
When private restrictions on the use of property are simple a contract between an owner and the neighboring owner, it is called a(n):
a. private covenant
b. restrictive covenant
c. non-inclusive covenant
d. illegal covenant
b
A restrictive covenant may run with the land if it:
a. relates to the use of the property
b. relates to the repair, maintenance, or improvement of the property
c. directly benefits the property
d. any of the above
d
The owner’s title is provisional (subject to forfeiture) when a deed contains a:
a. condition
b. restriction
c. covenant
d. prohibition
a
A restrictive covenant can be terminated by:
a. expiration
b. merger
c. abandonment
d. all of the above
d
Under CALGreen:
a. California became the first state to adopt a green building code
b. minimum uniform standards for green building that apply to many types of construction were established
c. developers must divert 50 percent of construction waste from landfills through recycling or re-use materials
d. all of the above
d
California became the first state to adopt a green building code through:
a. CALEnergy
b. CALSmart
c. CALGreen
d. CALBuild
c
Which of the following is true with regard to the Civil Rights Act of 1866?
a. It only prohibits discrimination based on race or ancestry
b. It applies to any real estate transaction
c. There are no exceptions
d. All of the above
d
Title VIII of the Civil Rights Act of 1868 is commonly called the:
a. Federal Fair Housing Act
b. Civil Rights Act
c. Equal Opportunity Act
d. Equal Housing Act
a
The Federal Fair Housing Act prohibits discrimination based on:
a. race
b. religion
c. familial status
d. all of the above
d
Channeling prospective buyers or renters to specific neighborhoods based on their race is an example of:
a. blockbusting
b. redlining
c. race baiting
d. steering
d
Refusal, for discriminatory reasons, to make loans on property in a particular neighborhood is called:
a. redlining
b. steering
c. black zoning
d. blockbusting
a
Which of the following Acts applies to the extension of credit?
a. Fair Housing Act
b. Equal Credit Opportunity Act
c. National Credit Act
d. Housing Credit Act
b
Which of the following is NOT a federal law or regulation designed to eliminate discrimination in lending?
a. The Fair Housing Act
b. The Civil Rights Act of 1776
c. The Equal Credit Opportunity Act
d. The Home Mortgage Disclosure Act
b
The Housing Financial Discrimination Act allows:
a. a financial institution to take the fair market value of the property into consideration when deciding on a loan
b. the characteristics of a neighborhood to play a part in determining financial assistance
c. discrimination in provision of financial assistance for housing based on religion or marital status
d. a financial institution to consider the ethnic composition of a neighborhood when providing financial assistance
a
Which California Act prohibits discrimination by business establishment?
a. Housing Financial Discrimination Act
b. Unruh Act
c. Fair Employment and Housing Act
d. Brown Act
b
Which of the following Commissioner’s Regulations explain the duties of real estate agents in regard to unlawful discrimination?
a. 2780
b. 2781
c. 2725
d. All of the above
d
Which of the following can sue for violations of anti-discrimination laws?
a. State Attorney General
b. U.S Attorney General
c. Tester
d. Any of the above
d
Refusal to sell or rent after receiving a good-faith offer, if it can be shown that the offeror’s race, religion, sex, national origin, or disability was a factor, is:
a. unlawful
b. lawful
c. only a consideration if a commission is involved
d. none of the above
a
Refusing to deal with someone who has sued you for discrimination may be considered:
a. good business practice
b. unlawful retaliation
c. justifiable retaliation
d. none of the above
b
Who can be held liable for unlawful discrimination?
a. Seller/Landlord
b. Property manager
c. Rental agent
d. All of the above
d
Which of the following is NOT a type of lease?
a. Decimal
b. Fixed
c. Graduated
d. Percentage
a
A device that substitutes a lease with a new lease between a landlord and a different tenant is called a:
a. sandwich lease
b. sublease
c. novation
d. gross lease
c
Under California law, which of the following are true?
a. Landlords can prohibit smoking on the property
b. Landlords are prohibited from requiring pets be declawed or devocalized
c. Both a and b are true
d. Neither a or b are true
c
The landlord, to make the property tenantable, must:
a. provide effective waterproofing
b. provide plumbing and heating
c. make sure the common area is free from trash
d. all of the above
d
