Real Estate principles Flashcards
1
Q
Zoning is under the control of: A. Private parties B. Government agencies C. The Bureau of Real Estate D. None above
A
B
2
Q
Easements appurtenant are for the benefit of: A. Homesteaded landowners. B. Adjoining (neighboring) landowners C. The General public D. Government use only
A
B
3
Q
A contract that is binding and enforceable in a court of law is said to be: A. Proprietary B. Illusory C. Valid D. All above
A
C
4
Q
Who makes an offer on a property that’s for sale? A. Seller’s agent B. Offeree (seller) C. Offeror (buyer) D. All above
A
C
5
Q
Escrows base monthly prorations on how many days? A. 28 B. 29 C. 30 D. 31
A
C
6
Q
The process of proportionally dividing rents, property taxes, and fire insurance is called: A. Subdividing B. Title splitting C. Proration D. Escrow debiting
A
C
7
Q
The area of a rectangular lot that is 50 feet wide by 100 feet deep is: A. 2,500 sq ft B. 500 sq ft C. 5,000 sq ft D. 50,000 sq ft
A
C
8
Q
If the Internal Revenue Service is using a minimum of 39 years for straight-line depreciation on commercial properties, what would be the annual depreciation on a newly constructed apartment that cost $1,950,000 and had an original land cost of $585,000? A. $35,000 B. $15,000 C. $3,500 D. $50,000
A
A
9
Q
For how much assessed value is the homeowners property tax exemption? A. $1,000 B. $7,000 C.$2,000 D. $200
A
B
10
Q
The difference between property taxes and special assessments is that:
A. Special assessments are levied for the cost of specific local improvements, while property tax revenue goes into the general fund.
B. Assessment liens can only be levied by local improvement districts.
C. Foreclosure of assessment liens can only be achieved by court foreclosure.
D. Assessment liens are always subordinate to property tax liens.
A
A
11
Q
Misuse of the real estate appraisal report or coercion of the appraiser are now: A. Misdemeanors B. Federal felonies C. Infractions D. None above
A
B
12
Q
Which of the following is true concerning the cap rate?
A. The greater the risk, the greater the cap rate
B. Appraised value increases when the cap decreases.
C. Finding the cap rate is the most difficult step in the income approach
D. All above
A
D
13
Q
A person who is authorized by the Secretary of State to witness the acknowledgment of documents is known as a(an): A. Administrator B. Librarian C. Document doctor D. Notary public
A
D
14
Q
An estate for years is an example of a: A. Life estate B. Fee estate C. Freehold estate D. Less-than-freehold estate for a fixed period of time
A
D
15
Q
A broker who mixes personal funds with his or her principal’s funds is guilty of: A. False promise B. Commingling C. Divided agency D. Conversion
A
B
16
Q
The Real Estate Commissioner enforces provisions of the: A. Civil law B. Commercial law C. Property law D. Real estate law
A
D
17
Q
Real property consists of: A. Land and structures on the land B. Anything incidental to the land C. Anything appurtenant to the land D. All above
A
D
18
Q
Determining the present value of a property based upon it’s anticipated future income and expenses is called the: A. Capitalization or income approach B. Replacement cost method. C. Market data method D. Comparison approach
A
A
19
Q
Which of the following is NOT one of the forces that affect the value of a neighborhood? A. Past sales considerations B. Economic considerations C. Physical considerations D. Social considerations
A
A
20
Q
The right to reasonable use of water from a river or stream, if the land borders it, is called: A. None below B. A mineral right C. A potable right D. A riparian right
A
D
21
Q
The federal civil rights law that applies to Americans with disabilities and protects them from discrimination is the: A. Unruh civil rights act B. Americans with disabilities act C. Fair employment and Housing Act D. None above
A
B
22
Q
A zoning act that requires disclosure of a property’s vicinity to hazardous earthquake faults is known as the:
A. San Andreas State Earthquake Act
B. California Coastal Act
C. Alquist-Priolo Special Studies Zone Act
D. None above
A
C
23
Q
When prices rise due to shortages of available properties, it is known as a: A. Buyers market B. Sellers market C. Lenders market D. Deflationary market
A
B
24
Q
The higher your credit score:
A. The greater your chance of default
B. The better your interest rate and loan terms
C. The greater the possibility you will file a bankruptcy.
D. None above
A
B
25
Q
Other than the initial small deposit to open the account, when are money deposits the personal property of the broker? A. Never B. Only with the permission of the buyer C. Only during non-business days D. Always
A
A
26
Q
Which of the following is NOT a method to establish a real estate broker agency A. Secret ballot B. Implied agreement C. Express agreement D. Estoppel
A
A
27
Q
What “American” title insurance is usually requested by lenders? A. CLTA Policy B. ALTA Policy C. RESPA Policy D. None above
A
B
28
Q
“QR Code” stands for: A. Quick Response Code B. Quality Review Code C. Quantitative Relativity Code D. None above
A
A
29
Q
Which of the following is a requirement of a lease? A. Length of lease B. Amount of rent C. Names of parties D. All above
A
D
30
Q
When a tenant voluntarily gives up a lease before the expiration of its term, its known as: A. Forgiveness B. Forbearance C. Suspension D. Surrender
A
D
31
Q
Which of the following is NOT an essential element of a contract? A. Cash B. Mutual consent C. Capacity D. Proper writing
A
A
32
Q
Owner A tells B he will pay him $1,000 to paint his house. B agrees. This is an example of a: A. Unilateral contract B. Bilateral contract C. Completed performance D. Warranty contract
A
B
33
Q
The California department of Veterans affairs loan program is commonly known as the: A. CalVet program B. FHA C. California VFW Program D. VA
A
A
34
Q
Which of the following are NOT institutional lenders? A. Banks B. Private individuals C. Insurance companies D. Mutual savings banks
A
B
35
Q
The market data method is the most common approach for: A. Houses B. Condos C. Vacant land D. All above
A
D
36
Q
The agency Disclosure Form tells the seller and the buyer that their agent is working as: A. The sellers agent B. The buyers agent C. Both sellers and buyers agent D. Any above
A
D
37
Q
What type of listing entitles the listing broker named in the agency contract to a commission even if the owner sells the property privately during the listing period. A. Exclusive right to sell listing B. Exclusive agency listing C. Open listing D. All above
A
A
38
Q
The first phase in the life of a contract is: A. Completion B. Escrow C. Performance D. Negotiation
A
D
39
Q
How many square feet are in one acre? A. 38,304 B. 43,560 C. 38,416 D. 41,560
A
B
40
Q
What is 395,340 square feet of area minus an area of 110 x 30 feet? A. 3,300 B. 330,000 C. 392,040 D. 398,640
A
C
41
Q
A month-to-month rental agreement is usually a: A. Tenancy for years B. Periodic tenancy C. Tenancy at will D. Tenancy at sufferance
A
B
42
Q
An on-site residential manager: A. Is a tenant of the property B. Handles tenants complaints C. Maintains the premises D. All above
A
D
43
Q
You are a landlord who discovers that one your tenants is having new carpet installed in his apartment without your consent. To protect yourself, you should file a(n): A. Cease and desist order B. Mechanics lien C. Unlawful detainer action D. Notice of non-responsibility
A
D
44
Q
Easements are created by: A. Express grant (in writing) B. Implication of law C. Long-term use (prescription) D. All above
A
D
45
Q
Depreciation for tax purposes is a yearly tax deduction on the taxpayers income tax form. Which of the following is NOT acceptable for depreciation? A. Your office building B. Your apartment building C. Your shopping center D. Your owner-occupied residence
A
D
46
Q
Installment sales and exchanges have as their primary purpose: A. Tax postponement B. Passing property to heirs C. Tax deduction D. None above
A
A
47
Q
Which of the following is FALSE concerning a grant deed?
A. The key word is “GRANT”
B. It is signed only by the grantee
C. It is considered executed when signed by the grantor
D. Grant deeds contain implied warranties
A
B
48
Q
If a person dies without a will, the procedure for transferring the deceased’s property to his or her heirs is called: A. Accession B. Intestate succession C. Escheat by the federal government D. None above
A
B
49
Q
Which of the following is NOT a type of property lot? A. Curb lot B. Interior lot C. Key lot D. Corner lot
A
A
50
Q
Which of the following would prevent the contractual requirement of genuine consent? A. Menace B. Undue influence C. Duress D. All above
A
D
51
Q
The rate the borrower is actually paying (including interest, points, and loan fees) is called: A. The wishful interest rate B. The partially realized interest rate C. The effective interest rate D. All above
A
C
52
Q
In a trust deed, the borrower is usually the: A. Trustee B. Beneficiary C. Trustor D. None above
A
C
53
Q
What federal case in 1968 upheld the 1866 Civil Rights Act? A. Easton v. Strassburger B. Huber v. The State of California C. Jones v. Mayer D. None above
A
C
54
Q
A condominium does NOT have: A. A separate grant deed B. A separate trust deed C. Private ownership of land and improvements D. A separate tax bill
A
C
55
Q
The closing date is:
A. Always on the first day of the month
B. The date the documents are recorded
C. Due before the payoff demand statement
D. The date the listing agreement is signed
A
B
56
Q
Which of the following is NOT a duty of the escrow company?
A. Negotiating brokers fees
B. Confidentiality
C. Deposit holder
D. Conditional delivery of funds and documents
A
A
57
Q
The Real Estate Commissioner: A. Replaces a court of law B. Gives legal advice C. Enforces the real estate law D. All above
A
C
58
Q
Any sale of substantial part of inventory or other supplies and equipment associated with a business: A. Is illegal B. Is a sale-leaseback C. Requires a PRLS license D. Is a bulk sale or transfer
A
D
59
Q
When an improvement is permanently attached to real property it becomes: A. Private property B. Personal property C. Real property D. None above
A
C
60
Q
Which of the following is NOT a recognized legal method of land description? A. Satellite Tracking B. Metes and Bounds C. Lots, Blocks, and Tracts D. Sections and Townships
A
A
61
Q
The housing Financial Discrimination Act prohibits: A. Targeting B. Redlining C. Redistricting D. Gerrymandering
A
B
62
Q
Rental Agreements are designed for estates: A. From period-to-period B. For no more than 10 years C. In escrow D. Any above
A
A
63
Q
“QR code” stand for A. Quick Response Code B. Quality Review Code C. Quantitative Relationship Code D. None above
A
A
64
Q
A lessee making payments based on gross monthly income has a: A. Ground lease B. Licensing agreement C. Lease-purchase option D. Percentage lease
A
D
65
Q
If the “exact” terms of the listing agreement are met, the listing broker is entitled to a commission, even if the: A. Buyer is legally incompetent B. Broker is not licensed C. Seller is not the legal owner D. Owner refuses to sell to the buyer
A
D
66
Q
All material facts affecting the value and desirability of a property must be disclosed on the: A. Residential listing agreement B. Disclosure of agency relationship C. Transfer disclosure statement D. None above
A
C
67
Q
Which of the following is TRUE concerning negotiable instruments?
A. They are easily transferable from one person to another.
B. Promissory notes are considered negotiable instruments
C. The most common example of a negotiable instrument is a personal check
D. all above
A
D
68
Q
Which of the following online real estate search websites owned by NAR uses information from MLS data? A. Zillow.com B. Trulia.com C. Realtor.com D. All above
A
C
69
Q
If you made 17% profit on the $76,000 sale of a lot, how much did you pay for the lot? A. $63,000 B. $65,000 C. $64,957 D. None above
A
C
70
Q
Income-producing property owners can deduct which of the following from their federal income taxes? A. Property taxes B. Prepayment penalties C. Depreciation of building improvements D. All above
A
D
71
Q
The term “EER” is used to measure: A. Water purity B. Credit rating C. Water pressure D. Energy efficiency (the higher the better)
A
D
72
Q
What do 90% of all home buyers do before contacting a real estate agent? A. Search the web B. Meet with their private banker C. Buy a new car D. None above
A
A
73
Q
A lien placed on more than one parcel, all parcels having the same owner, is known as a: A. Full lien B. Blanket encumbrance C. Multi-tract lien D. None above
A
B
74
Q
When someone is performing unauthorized work on your property, you should file a(n): A. Notice of non responsibility B. Notice of completion C. Writ of execution D. Abstract of judgment
A
A
75
Q
Demand sources for real estate loans include loans for: A. Buying property B. Refinancing C. Construction D. All above
A
D
76
Q
The cancelling of an offer to contract by the original offeror is called. A. Assignment B. Revocation C. Mutual consent D. Counter offer
A
B
77
Q
An ownership interest in real property that only exists for the life of any designated person or persons (often the grantee) is called a(n): A. Life estate B. Estate in waiting C. Less-than-freehold estate. D. Estate in remainder
A
A
78
Q
What is the legal process of making an instrument an official part of the country records? A. Acknowledgment B. Recording C. Constructive notice D. All above
A
B
79
Q
The salesperson exam requires what percent of correct answers to pass? A. 60% B. 80% C. 70% D. 90%
A
C
80
Q
A lease purchase option is the: A. Right to renew a lease B. Right to purchase the property C. Right to terminate a lease D. None above
A
B
