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California Real Estate Exam > Practice Exam 1 > Flashcards

Practice Exam 1 Flashcards

0
Q

If the market value of a home were to exceed the amount of the homestead exemption and existing liens:

A. The homestead offers no protection
B. A creditor who holds a judgment could have the property sold by the court and obtain the amount due about the exemption.
C. Creditor could force the owner to deed the property to him.
D. Probably could not be sold to satisfy the judgment creditors.

A

B. A creditor who holds a judgment could have the property sold by the court and obtain the amount due above the exemption.

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1
Q

Five people hold undivided interest as tenants in common. Which of the following is always true?

A. Each has equal interest
B. Each has acquired interest at the same time
C. Each cannot identify his/her respective part of the property
D. Each has unequal interest

A

C. Each cannot identify his/her respective part of the property.

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2
Q

Definition of value to an appraiser is:

A. The ability of one commodity to command other commodities in exchange
B. The present worth of future benefits arising out of ownership of the property.
C. I relationship between desirous persons and things desired.
D. Any of the above.

A

D. Any of the above.

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3
Q

A lease agreement written for definite period of time with prescribed payment conditions is:

A. Real property
B. Personal property
C. State property
D. None of the above

A

B. Personal property. (An agreement is a piece of paper therefore it is personal property.)

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4
Q

Assume that you are a California real estate broker in a prospect is referred to you by an out-of-state broker in the cell is consummated by you. If you want to split your commission with the cooperating broker, under California real estate law:

A. You may pay a commission to the out-of-state broker
B. You cannot divide a commission with a broker of another state
C. You can take commission to the broker only if he is also licensed in California
D. None of the above

A

A. You may pay a commission to be out of state broker broker.

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5
Q

Comstock has a free simple estate, and transfers positions for a term less than his fee simple estate. The grantor has:

A. A vested sufferance
B. An estate in remainder
C. An estate in reversion
D. A lease

A

C. An estate in reversion

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6
Q

The corporation listed a property with a broker, and subsequently the entire slate of officers were killed in a plane crash. The listing is:

A. Valid
B. Void
C. Voidable
D. Invalid

A

A. Valid

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7
Q

An increase in unemployment within a city has caused an overall decrease in income of the residents. As a result of these conditions, values of homes in that area are also decreasing. This reduction in value would be classified as:

A. Economic obsolescence
B. Functional obsolescence
C. Physical obsolescence
D. Non of the above

A

A. Economic obsolescence.

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8
Q

Of the following, which would be the least likely place to acquire a loan on a single-family residence?

A. Bank
B. Savings and loan
C. Insurance company
D. Mortgage company

A

C. Insurance company

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9
Q

Hey homestead offers no protection against which of the following?

A. Real property taxes
B. Mechanic’s liens
C. Prior recorded liens
D. All of the above

A

D. All of the above

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11
Q

An individual employed as a sales person by a licensed real estate broker is considered which of the following under the real estate law?

A. A special agent
B. An independent contractor.
C. An employee
D. A sub-agent

A

C. An employee

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12
Q

Regarding “mortgage insurance premiums”, do they benefit the:

A. Lender in case of default of the borrower.
B. Lender in case of death of the borrower.
C. Borrower in case of death.
D. Lender against delinquency in payments.

A

D. Lender in case of default of the borrower

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13
Q

Which of the following would be considered a “general lien”?

A. Federal tax lien.
B. Franchise tax lien.
C. Judgement lien.
D. All of the above

A

D. All of the above

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14
Q

Misuse of the term “realtor” is:

A. A violation of the California Real Estate law.
B. A felony offense.
C. Unethical but not illegal.
D. Only unethical in California.

A

A. A violation of the California real estate law

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15
Q

Under the law of agency a fiduciary relationship is created between the broker and the seller upon execution of the listing agent. As far as the broker’s responsibility to third parties the broker:

A. Must be fair and honest.
B. Has no obligation.
C. Need only disclose material facts when asked about them.
D. Should disclose the lowest price the seller is willing to accept.

A

A. Must be fair and honest

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16
Q

A sales person brought in an offer on an office lot listing of $118,500. The broker, when taking the listing, was told by the seller not to bring any offers less than $138,000. What must the broker do?

A. Do nothing and close the deal at $118,500
B. Inform the buyer of the $118,500 acceptable price
C. Say nothing to the seller because the seller told the broker to to present any offers unless they were at least $138,000
D. Present the $118,500 offer to the seller for approval.

A

D. Present be $118,500 offer to the seller for approval.

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17
Q

A broker who negotiates an exchange of real property and collect a commission from both principles must:

A. Inform all parties that he is collecting a commission from more than one party to the transaction.
B. Inform each party of the exchange a price of the properties within one month after the close of the transaction.
C. Neither A nor B.
D. Both A and B

A

D. Both A and B.

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18
Q

Which of the following can the Federal Reserve Board do if they felt that there was an inflationary trend developing in the United States?

A. Increase the discount rate.
B. Enter into the government bond market in a selling capacity.
C. Adjust the amount of reserves required for its member banks.
D. All of the above

A

D. All of the above.

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19
Q

The following are essential to the creation of an “agency” relationship, except:

A. Parties are competent
B. Agreement to pay consideration
C. Agreement between principle and agent
D. Fiduciary relationship

A

B. Agreement to pay consideration.

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20
Q

The real estate law does not permit a partnership of which of the following to operate a real estate office?

A. A licensed real estate broker and a license insurance broker
B. A licensed real estate broker and a licensed real estate sales person
C. A licensed real estate broker and another licensed real estate broker.
D. None of the above

A

D. None of the above.

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21
Q

The statute of frauds does not apply to:

A. A listing contract to sell real property.
B. A partnership formed to invest in real property.
C. A commission agreement concerning the sale of real property.
D. Real property leased for a period of two years.

A

B. A partnership formed to invest in real property.

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22
Q

Under an “exclusive agency” agreement:

A. Owner can sell property himself, without liability of commission to the broker.
B. Owner must pay commission to the broker, no matter who sells the property.
C. Owner can sell to anyone the day after the listing expires, with no liability to the broker for commission.
D. Owner can subsequently give another broker a listing (at any time), which would have the effect of cancelling the original listing agreement.

A

A. Owner can sell property himself, without liability of commission to the broker.

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23
Q

When a real estate broker is charged with conversion it most generally involves:

A. Client’s funds.
B. Subdivision reports
C. Commingling
D. Misrepresentation

A

A. Client’s funds

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24
Q

When real property is held by husband-and-wife as community property, and agreement to sell that property which is been signed by only one spouse would be considered to be:

A. Illegal
B. Enforceable
C. Binding
D. A violation of the Statute of Frauds

A

B. Enforceable

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25
Q

All of the following are considered contracts, except:

A. Mortgages
B. Open listing
C. Grant deed
D. Escrow instructions

A

D. Grant deed

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26
Q

Which of the following is not a requirement for a real estate brokers trust account?

A. Broker’s name as trustee
B. Minimum balance
C. An itemize accounting of all funds
D. An account subject to immediate withdrawal upon notice.

A

B. Minimum balance

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27
Q

Effective gross income is the:

A. Spendable income after taxes
B. Gross income minus allowable expenses and payments of principal and interest.
C. Gross income minus all allowances for vacancies.
D. Gross income minus allowable expenses and depreciation.

A

C. Gross income minus all ounce for vacancies

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28
Q

A verbal acceptance of an offer for the purchase of real estate with a broker would constitute a contract that was:

A. Valid
B. Invalid
C. Unenforceable
D. Enforceable

A

C. Unenforceable

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29
Q

A permit must be secured from the real estate commissioner by the owner or his agent before selling or offering to sell:

A. Stock in a corporate estate syndicate.
B. A lot in an Arizona subdivision being offered for sale in California.
C. Land that was acquired by a government patent.
D. Lots in a land project.

A

B. A lot in an Arizona subdivision being offered for sale in California.

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30
Q

In the case of a sale, which of the following would be exempt from the “discrimination and unlawful acts”chapter in the health and safety code?

A. When are occupied residence financed by the VA
B. Four Plex financed by FHA
C. What are occupied single residence unencumbered
D. None of the above.

A

D. None of the above.

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31
Q

The least important factor in a “sale-leaseback” is:

A. Credit rating of the lease.
B. A well designed general purpose building.
C. A well located building
D. Seller’s book value of the building.

A

D. Seller’s book value of the building.

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31
Q

When commercial real estate is purchased today, the Minimum period of time over which the owner can depreciate the improvements is:

A

39 years

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33
Q

When commercial real estate is purchased today, the Minimum period of time over which the owner can depreciate the improvements is:

A. 15 years
B. 27 1/2 years
C. 39 years
D. 42 years

A

C. 39 years

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34
Q

A lease that designates that the lessee is to pay the real property taxes is usually a:

A. Gross lease
B. Percentage lease
C. Net lease
D. Fixed rate lease

A

C. Net lease

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35
Q

Which of the following is most vital or important in planning a subdivision?

A. Market analysis
B. Cost analysis
C. Community recreational analysis
D. Site analysis

A

A. Market analysis

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36
Q

Equity in real property is:

A. The cash flow value
B. The total off all mortgage payments made to date
C. The difference between mortgage indebtedness and market value
D. The appraised value

A

C. The difference between a mortgage indebtedness and market value

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37
Q

Escrow prorations are based on how many days in the year?

A. 365
B. 366
C. 360
D. 350

A

C. 360 days

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38
Q

In which of the following deeds are the warranties expressed rather than implied?

A. Guardian’s deed
B. Grant deed
C. Warranty deed
D. Executor’s deed

A

C. Warranty deed

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39
Q

A real estate broker advertises that he will give a microwave oven valued at $500 to anyone who purchases a property listed with his office. This type of advertisement is:

A. Legal only if the gift is valued at $100 or less.
B. Legal if the seller is sent a copy of the advertisement.
C. Legal if proper disclosures were made to all parties of interest.
D. Illegal regardless if all disclosures are made.

A

C. Legal if proper disclosures were made to all parties of interest.

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40
Q

Which of the following would appear as a “debit” on the sellers closing statement?

A. Selling price
B. Prepaid rent, received by the seller
C. Prepaid taxes
D. None of the above

A

C. Pre-paid rent, received by the seller

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41
Q

A road of 3 acres runs along the entire length of the southern boundary of a section. Which of the following is most nearly the width of the road?

A. 23 ft
B. 35 ft
C. 17 ft
D. 51 ft

A

A. 23 feet

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42
Q

When rent is computed on the gross sales of a business occupied real property, the lease is currently termed:

A. A net lease
B. A gross lease
C. A voidable lease
D. A percentage lease

A

D. A percentage lease

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42
Q

Jim receives a life estate for the life of Joe. Jim dies before Joe. The state:

A

Vets in the heirs of Jim.

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44
Q

Jim receives a life estate for the life of Joe. Jim dies before Joe. The state:

A. Ceases to exist
B. Reverts to original grantor
C. Vests in Joe for his life
D. Vests in the heirs of Jim

A

D. Vests in the heirs of Jim.

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45
Q

The real estate commissioner would prohibit which of the following mortgage broker advertisements?

A. We loan up to 75% of verified market value
B. We loan upon verification of equity
C. Call 1-80-FOR-A-LOAN
D. First trust deed available at 10% APR

A

C. Call 1-80-FOR-A-LOAN

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45
Q

Which of the following is a requirement to serve on the county Board of Supervisors?

A

The office is an elected one

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46
Q

Hey lender plans to make a construction loan for the construction of 10 homes in a new subdivision. He wants to make certain that his loan as the first priority of any liens. He would least likely:

A. Make a personal inspection of the land
B. Post and record a notice of non-responsibility
C. Require and ALTA policy
D. Requires a copy of the commissioner’s final public report

A

B. Post and record a notice of non-responsibility

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47
Q

Which of the following abbreviations are associated with FHA?

A. NAR & CAR
B. CPM & CRV
C. MMI & MIP
D. MAI & MBA

A

C. MMI & MIP

48
Q

What is the meaning of a Quiet Title Action?

A. Purchasing property through a dummy transaction
B. An action to quiet a noisy tenant
C. Foreclosure action
D. Court action to remove cloud on the title

A

D. Court action to remove cloud on the title

49
Q

In valuing a single-family home, the appraiser discovered an assessment lien for $4000 for sewer and street improvement bonds. The appraiser located several recent sales of similar residences for $60,000 each none of which have the assessment lien. They indicated selling price for the subject property would be:

A. $56,000
B. $60,000
C. $64,000
D. None of the above

A

B. $60,000

50
Q

Which of the following purchases could be made using FHA financing, but not VA financing?

A. Business
B. Farm
C. Farm equipment
D. Income property

A

D. Income property

51
Q

Which of the following best describes the “principle of change”?

A. Weather conditions and their effect on buildings
B. Present and future use and benefits a property will bring.
See. Placement of lower valued homes among homes of higher value will increase the value of a lower value homes.
D. All of the above

A

B. Present and future use and benefits a property will bring.

52
Q

If a real estate license he was trying to persuade people to list or sell their property by telling them that members of another ethnic group we’re moving into the neighborhood, and it would be to their vintage to list or so, it would be an example of all of the following except:

A. Blockbusting
B. Panic selling
C. Illegal conduct
D. Legitimate conduct

A

D. Legitimate conduct

53
Q

It is generally greed that when the depth of a lot increases beyond that of other lots in the area, the following is true:

A. Value per square feet and frontage feet decrease
B. Value of overall lot decreases
C. Value per frontage for increases
D. Both A and B

A

C. Value per frontage for increases

54
Q

What is the opposite of subordinate?

A. Junior
B. Fiduciary
C. Superior
D. Subrogation

A

C. Superior

55
Q

The replacement cost to purchase easier to apply to a new building due to:

A. Building code changes
B. The store cost being hard to obtain
C. Land valuation problems
D. Depreciation estimates

A

D. Depreciation estimates

56
Q

When a buyer assumes an existing loan in purchasing a home, the closing statement would show the old loan as a:

A. Credit to benefit (buyer)
B. Credit to seller
C. Debit to buyer
D. Debit to seller and credit to buyer

A

D. Debit to seller and credit to buyer

57
Q

Hey land developer offers a free prizes to anyone who replies to his direct mall advertisement on visits his subdivision site. Prior to awarding the pros however, the developer requires the party to attend a sales presentation at the site. The sales presentation requirement was not mentioned anywhere in the advertisement. This type of promotion is:

A. Illegal because it did not disclose the sales representation attendance requirement
B. Legal if the price is actually awarded
C. Illegal because free prizes cannot be offered under any circumstances
D. Legal if the prizewinners purchase a property

A

A. Illegal because it did not disclose the sales representation attendance requirement

58
Q

Which is not real property?

A. Airspace above property
B. Fences
C. Trees
D. Trust deed

A

D. Trust deed

59
Q

The listing signed by the wife alone to sell community real property is:

A. Illegal
B. Voidable
C. Enforceable
D. Unenforceable

A

C. Enforceable

60
Q

The person that is employed by another to act on his behalf may be considered:

A. An employee
B. An Agent
C. An independent contractor
D. Any of the above

A

D. Any of the above

61
Q

Hey Will, which is entirely written, David, and signed and the testator’s own handwriting is a:

A. Witnessed will
B. Holographic will
C. Nuncupative will
D. Probate will

A

B. Holographic will

62
Q

Members of a multiple listing service (MLS) general use:

A. An open listing
B. An exclusive agency
C. And exclusive right to sell
D. A net listing

A

C. And exclusive right to sell

63
Q

Which of the following belongs in the column of a sellers closing statement:

A. Prepaid insurance proration
B. Prepaid rent by sellers tenant
C. Sale personal property
D. None of the above

A

B. Prepaid rent by sellers tenant

64
Q

The term “ET UX” refers to:

A. “And others”
B. “In the will”
C. “And wife”
D. None of the above

A

C. “And wife”

65
Q

If one person is delegates by an instrument to act officially on behalf of another, that person is called:

A. A subagent
B. A principal
C. An attorney-in-fact
D. A fiduciary

A

C. An attorney-in-fact

66
Q

In order to record a lease, the document must be a college before a new property official by the:

A. Public administrator
B. Notary Public
C. Lessee
D. Lessor

A

B. Notary Public

67
Q

Single-family home values early is protected and neighborhoods where there is:

A. This similarity of income of the owners
B. A predominance of residence belonging to the same ethnic or religious group affiliation
C. A minimum of change to existing restrictions as a result of legal restrictions
D. And increasing much for a beverage quality homes with high quality homes

A

D. And increasing much for a beverage quality homes with high quality homes

68
Q

There is no form of title insurance that will give protection against:

A. Forgery in the chain of title
B. Unrecorded easements
C. Lack of intent to deliver a deed
D. Government regulations controlling occupancy and use

A

D. Government regulations controlling occupancy and use

69
Q

In a business partnership, if one of the partners dies, the surviving partner:

A. Becomes a partner with the heirs of the deceased partner
B. Operates the business by himself until the heirs of the estate are able to assume the responsibility
C. Cannot transact any of the partnership business as death cancels the partnership
D. Becomes exclusive manager of the partnership business and retains title to the partnership property until he winds up the partnership business

A

D. Becomes exclusive manager of the partnership business and retains title to the partnership property until he winds up the partnership business

70
Q

And investment that was purchased as a hedge against inflation would be best exemplified by which of the following:

A. And investment that will have the characteristics of an annuity
B. An income producing investment that will maintain its value
C. A risk-free investment
D. An investment that will afford a high degree of liquidity

A

B. An income producing investment that will maintain its value

71
Q

Cutter allows the telephone company to install telephone poles along the rear of his property. This would be considered:

A. An appurtenant
B. An Encumbrance
C. A prescriptive easement
D. A perfect restriction

A

B. An Encumbrance

72
Q

Properly executed quitclaim deed will always convey:

A. It’s fee title to the property
B. A first lien on the property
C. And after required interest in the property
D. An existing interest in the property

A

D. An existing interest in the property

73
Q

An abstract of title is most similar to a:

A. Chain of title
B. Title search
C. Preliminary report
D. Standard policy of title insurance

A

B. Title search

74
Q

But which of the following agent determine realistic rents for office space?

A. Capitalization approach
B. Comparison approach
C. Rent residual technique
D. Cost approach

A

B. Comparison approach

75
Q

A title plant is a:

A. Policy of title insurance
B. Grant deed
C. Collection of real state records
D. Conventional lender

A

C. Collection of real state records

76
Q

The partnership may take title to real property in:

A. The name of the partnership
B. The individual names of one or more partners
C. The name of a third-party as trustee for the partnership
D. Any of the above ways

A

D. Any of the above ways

77
Q

To secure a FHA insured loan, one would apply to the:

A. FHA
B. Broker
C. Arranger
D. Mortgagee

A

D. Mortgagee

78
Q

A standard title insurance policy represents the final results of three successive processes. Which of the following would not be considered as one of those processes?

A. Examination or investigation of the title
B. Determination of the amount of insurance
C. Protection of the insured against possible title losses
D. Determination of the correct boundary lines through a survey of the property being insured

A

D. Determination of the correct boundary lines through a survey of the property being insured

79
Q

All of the following items are usually prorated up close of escrow, except:

A. Homeowners insurance
B. Property taxes and assessments
C. Delinquent interest on unsecured loans
D. Interest and impounds

A

C. Delinquent interest on unsecured loans

80
Q

One can establish an agency relationship by any of the following, except:

A. Agreement of principle
B. Implied statement of law
C. Oral agreement
D. Agent volunteering

A

D. Agent volunteering

81
Q

Smith owns a parcel of real property and sells it to Jones. John’s takes possession of the property but does not record the deed Smith discovers that Jones has not recorded the deed and resells the property to Brown. Brown records his deed. Under the circumstances the legal owner would be:

A. Smith
B. Jones
C. Brown
D. None of the above

A

B. Jones

82
Q

How long would a subdivision preliminary report be good for?

A. One year
B. Until a material change should take place
C. Until the final public report is issued
D. Any of the above

A

D. Any of the above

83
Q

Which of the following is the largest land parcel?

A. 1/10 of a township
B. 5,280’ x 10,560’
C. 4 miles square
D. 1 mi x 1 mi

A

C. 4 miles square

84
Q

The customer procedure used to enforce private property restrictions on real property is:

A. A judgment
B. An injunction
C. An indictment
D. A desist and refrain order

A

B. An injunction

85
Q

Of the following is a legal contract which gives the holder roads to enjoy the news of another’s property short of an estate:

A. A life estate
B. An easement
C. A less than freehold estate
D. An estate for years

A

B. An easement

86
Q

A kiosk is:

A. A type of residential roof
B. Parallel beam to which boards of the floor or ceiling laths are nailed
C. Freestanding booth in a parking lot or shopping mall
D. Metal pipe in which electrical wiring is installed

A

C. Freestanding booth in a parking lot or shopping mall

87
Q

The primary purpose of a planning commission is to:

A. Past needed zoning to keep centralization of business
B. Drug blueprints of a total community with in one area
C. Draft city or county plans with the zoning assignments
D. Plan for health and safety codes

A

B. Drug blueprints of a total community with in one area

88
Q

The corporation built a large tract of homes in a new subdivision and hired a handyman to take care of any maintenance or repairs that might arise. He was given an additional compensation for showing the homes on weekendsto prospective buyers. Under the circumstances:

A. The corporation was within its rights and there’s no violation to the real estate law
B. The maintenance man could be fined for showing the homes without a real estate license
C. The handyman does not need a real estate license because he is an employee of a corporate owner
D. All corporation employee is an officer selling the property must be licensed

A

B. The maintenance man could be fined for showing the homes without a real estate license

89
Q

If you are looking for a plan that refers to piers, columns, and floorings, you are viewing a/an:

A. Elevation
B. Floor plan
C. Foundation plan
D. Plot plan

A

C. Foundation plan

90
Q

The tax imposed by the State of California on a business opportunity sale which includes equipment located on the premises is called a:

A. Sales tax
B. Transfer tax
C. Use tax
D. Franchise tax

A

A. Sales tax

91
Q

Who signs a “Deed of Reconveyance”?

A. Trustor
B. Trustee
C. Beneficiary
D. Grantor

A

B. Trustee

92
Q

Hey real estate transfer disclosure statement need not be prepared for a:

A. Mobile home
B. Residential condominium
C. 10 unit apartment complex
D. 4- Plex apartment property

A

C. 10 unit apartment complex

93
Q

The underlining purpose pulses of the Uniform Commercial Code are:

A. Simplify, clarify, and modernize the law governing commercial transactions
B. To permit the continued expansion of commercial practices through customs, usage, an agreement of the parties
C. To make uniform the law among the various jurisdictions
D. All of the above

A

D. All of the above

94
Q

The zoning symbol for multiple family dwellings is:

A. C-4
B. R-3
C. R-1-40
D. M-1

A

B. R-3

95
Q

The type of lien held by the beneficiary of a second deed of trust is:

A. Specific
B. Involuntary
C. General
D. Equitable

A

A. Specific

96
Q

Jones gave Smith a power of attorney to sell his home. All of the following statements are correct, except:

A. If Smith is notified that the court has ruled Jones to be in capable of contracting, the power of attorney is terminated
B. Before Smith may sell the home, the power of attorney must be recorded
C. If Smith finds that Jones’ property is the subject of a declaration of homestead, he can’t legally convey the property
D. Smith may legally deed the property to himself, only if the selling price equals or exceeds the fair market value

A

D. Smith may legally deed the property to himself, only if the selling price equals or exceeds the fair market value

97
Q

An abstract of judgment for money awarded by a court becomes which of the following, when duly recorded in the county where the property of judgment debtor is located:

A. An involuntary lien
B. A voluntary lien
C. An equitable lien
D. An attached lien

A

A. An involuntary lien

98
Q

On the real estate transfer disclosure form, the broker must:

A. Make a visible inspection of accessible areas and report his findings on the form
B. Spectral areas, including inaccessible areas, and report his findings to the buyer
C. Inspect accessible area and inaccessible areas and inform buyer and seller
D. Inspect all common areas

A

A. Make a visible inspection of accessible areas and report his findings on the form

99
Q

An advertisement by mortgage company that is soliciting real estate loans must include the:

A. Name of the broker/mortgage company
B. Address of the broker/mortgage company
C. Telephone number of the broker/mortgage company
D. License number of the broker/mortgage company

A

A. Name of the broker/mortgage company

100
Q

Survey the refers to fractional sections, townships, and ranges as a legal description by:

A. Metes and bounds
B. Recorded map
C. US government survey
D. None of the above

A

C. US government survey

101
Q

XYZ Savings and Loan Association negotiates a $200,000 loan with Maria Gomez. Maria speaks no English. In order to complete the transaction XYZ provides loan forms written in Spanish. In the escrow closing statement Maria’s charged a 1/8% higher interest rate than other borrowers who speak English. Under these circumstances:

A. This is permitted provided that the fee does not exceed the actual translation charge
B. The lender could not impose the extra cost
C. Maria would have to pay the charge at the time of making the application for the loan
D. None of the above

A

B. The lender could not impose the extra cost

102
Q

A seller sued a real estate broker for misrepresentation of a material fact that the broker hadn’t paid to him during the sales transaction. In the fan in the suit, the broker was able to prove that the listing contract with the seller have been an oral agreement. Under the circumstances:

A. This is a valid defense based upon the Statute of Frauds
B. The Statute of Frauds is not a bar in any real estate transaction litigation
C. The defense is not a bar because it was not the issue
D. The broker is only liable for misrepresentation to buyers

A

C. The defense is not a bar because it was not the issue

103
Q

Which must provide for insurance to protect depositors accounts?

A. State chartered savings and loans
B. Federally chartered savings and loans
C. Both
D. Neither

A

B. Federally chartered savings and loans

104
Q

The best way to establish an agency relationship is by:

A. an oral agreement
B. Voluntary by agent
C. Implied contract by law
D. Written contract

A

D. Written contract

105
Q

Under the terms of the California Association of realtors real estate purchase contract and receipt for deposit form, a broker can extend all actions except acceptance and possession for:

A. Five days
B. One month
C. Until the listing expires
D. None of the above

A

D. None of the above

106
Q

Which would all be specific liens?

A. Judgment lien, federal state tax lien, corporation franchise tax lien
B. Federal income tax Celine, attachment, surety bail bond lien
C. Vendors lien, lien for decedent’ debts, vendee’s lien
D. Mechanics lien, property tax lien, mortgages and attachments

A

D. Mechanics lien, property tax lien, mortgages and attachments

107
Q

The broker/owner relationship that is established by a listing agreement generally is:

A. Bilateral
B. A promise for a promise
C. An employment contract
D. All of the above

A

D. All of the above

108
Q

Which of the following require the barbers to apply for term life insurance to cover the unpaid balance of the loan?

A. Cal-Vet
B. FHA
C. Savings and Loan associations
D. Veterans administration

A

A. Cal-Vet

109
Q

Which of the following represents a gross misrepresentation by an agent?

A. Representation is an obvious falsehood
B. The representation is made with the knowledge of falsehood
C. The representation agreement I need to enter into the contract
D. All of the above

A

D. All of the above

110
Q

A capitalization rate can be determined by:

A. Comparison
B. Band of investment theory
C. Summation
D. All of the above

A

D. All of the above

111
Q

Which of the following is required to hold a valid California Real Estate License?

A. A principal who sells three homes in one year
B. A mortgage broker
C. The purchaser of four or more real estate properties in one year
D. All of the above

A

B. A mortgage broker

112
Q

In a business opportunity transaction, the document that is used in the same manner as a deed in a real estate transaction is the:

A. Financing statement
B. Bill of sale
C. Trust deed
D. Chattel mortgage

A

B. Bill of sale

113
Q

When an appraiser analyzes rent while using the income approach, if you bases appraisal on which of the following characteristics of the income?

A. Durability
B. Quality
C. Quantity
D. All of the above

A

D. All of the above

114
Q

Real state broker can make any of the following statements about land contracts and be correct, except:

A. Complains of title is not required within one year
B. Title must be passed at the time a deed is delivered
C. The contract signatures must be acknowledged by the buyer and the seller
D. The contract must include a statement prohibiting recording

A

D. The contract must include a statement prohibiting recording

115
Q

An escrow agent is authorized to do the following:

A. Obtain a termite report and authorize repairs to correct problems noted in it
B. Suggestions to the buyer regarding financing for the property
C. Range financing for the property
D. Call for the funds to close the escrow

A

D. Call for the funds to close the escrow

116
Q

The replacement cost approach is more difficult to apply to older properties them to New Providence because:

A. Historic costs are difficult to obtain
B. Land prices are difficult to determine on older Providence
C. Depreciation schedules are different to determine on older properties
D. Zoning and building codes are subject to change

A

C. Depreciation schedules are different to determine on older properties

117
Q

All of the following statements are correct concerning the transfer of title to personal property, except:

A. Title to personal property can be transferred by the delivery of possession
B. The condition of the title to personal property can usually be determined by a study of public records with about the same accuracy as title to real property
C. Personal property is usually considered to be situated and the dumb son of the owner regardless of where the property actually is, and is covered by the long which covers the owners domicile
D. A written instrument can be used along with the transfer of personal property but, in many cases, such an instrument is not necessary to the validity of the transfer

A

B. The condition of the title to personal property can usually be determined by a study of public records with about the same accuracy as title to real property

California Real Estate Exam (1 decks)

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