PRACTICE EXAM

Question 1

A “loss in value from any cause” is a definition of:

Answer 1

Depreciation

Question 2

A couple recently married and each person had children from a previous marriage. They wish to take title to property so they can pass their share to their own children by will. The best form of title would be:

Answer 2

Community property

Question 3

A valid deed passes title when it is:

Answer 3

Delivered and accepted

Question 4

In July, Cesar bought Chris’ home through the listing broker, Marcos. After a hard rain in November, the roof developed a severe leak. Cesar sued Chris and Marcos for the cost of a new roof. Testimony in court revealed that Chris mentioned the need for a new roof to Broker Marcos. Marcos did not tell Cesar about the need for a new roof. What would most likely occur?

Answer 4

Cesar would collect from Chris; Chris would then seek recourse from Marcos.

Question 5

The main purpose of the Truth-in-Lending Law is to:

Answer 5

Require disclosure of credit terms

Question 6

The difference between judgment liens and mechanics’ liens is that:

Answer 6

mechanics’ liens can take priority before they are recorded.

Question 7

Broker Claudia is in the process of listing a home. The agency disclosure must be given:

Answer 7

Prior to the seller signing the listing agreement.

Question 8

On October 1, 2014, Garcia agreed to purchase Chan’s home. Both parties agreed that escrow would close on December 1, 2014, and that property taxes would be prorated as of date of possession. On November 1, 2014, Chan paid the property taxes for the year 2014–2015. According to the escrow closing statement, which of the following is true?

Answer 8

Garcia paid Chan for seven months’ taxes.

Question 9

A quitclaim deed conveys only the present rights of the:

Answer 9

Grantor

Question 10

To have a valid recorded homestead, certain elements are essential. Which of the following is not essential?

Answer 10

To be a married person