Real Estate Principles Practice Final Missed Questions Flashcards
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:
Community property
The main purpose of the Truth-in-Lending Law is to:
require disclosure of credit terms
The difference between judgement liens and mechanics’ liens is that:
mechanics’ liens can take priority before they are recorded.
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?
Garcia paid Chan for seven months’ taxes.
A quitclaim deed conveys only the present rights of the:
Grantor
A licensed loan broker arranged for a loan on a home purchase and has the borrower sign the required statement. The title work shows clouds on the title that the seller cannot clear in a timely manner. If the loan cannot be closed, the borrower is liable for:
no cost and expenses
Which of the following is not essential to form an agency?
A fiduciary relationship
An owner sells a lot for cash and receives $67,100 from escrow. The only expenses were a 6 percent commission and $517 in other expenses. The property sold for:
$71,933
A real estate agent must disclose all material facts to a seller principal. Which of the following is considered a material fact?
The agent’s knowledge of a pending better offer.
In appraising improved property, the least important factor is:
assessed value
Adams, Brown, and Chow are owners of commercial land as joint tenants. Adams dies and is survived by Brown and Chow. Which is Correct?
Adam’s interest is terminated
How many acres are in the NW 1/2 of the SW 1/4 of the NE 1/4 of Section 10?
20
Which of the following is an operating expense to be subtracted from gross income when appraising a property using the income approach?
Property taxes
The primary function of the secondary mortgage market is to:
buy loans to fund the primary mortgage market
Williams entered into a nine-month oral lease on July 1 to start on September 1 at a rate of $1,000 per month. On August 15, Williams backed out of the lease. The lease is:
Enforceable
Title insurance does not protect a buyer against:
zoning restrictions
A husband dies intestate in California. How is his separate property distributed to his wife and two children?
One-third to the wife, the rest to the children
Under the Subdivided Lands Law, the real estate commissioner is primarily concerned with:
financing and marketing arrangements.
Jones leases a home from Santos under a three-month written lease. Upon expiration of the lease, Jones retains possession. Santos has not decided on the next step. Jones has an estate at:
sufferance
The maximum amount of personal funds a broker may have in a trust fund account to cover charges and not be guilty of commingling is:
$200
Property is being sold where the buyer is going to take over the seller’s existing loan. To avoid legal conflict before closing, the real estate agent should check to be sure the loan does not include a (n):
alienation clause
A California sub divider sold five lots to one buyer and optioned five other lots to another buyer. The sub divider must:
notify the Department of Real Estate of a material change.
Under the federal Truth-in-Lending Law (Regulation Z), certain borrowers have _________ days to rescind the loan.
3
Under Division 6 of the Uniform Commercial Code (Bulk Sale), a public notice must be given 12 days before transfer by:
the buyer
Income tax benefits for homeowners include deductions for:
interest on home loans.
In issuing a policy of title insurance, the title company is least likely to make an on-site inspection if the policy is a(n):
CLTA standard owner’s policy.
A real estate broker must retain copies of all listings and deposit receipts for how many years?
3
The first half of real property taxes is due and payable on November 1. The taxes become delinquent after December 10, at which time, if not paid, a penalty is added to the amount. The penalty is:
10 percent.
The maximum ownership rights in property are known as:
fee simple absolute
Which of the following is not a fiduciary relationship?
trustor to beneficiary
An appraiser determines that the market rent for a parcel of land is $700 per month and that interest (capitalization) rates should be 11 percent. The approximate value is:
$76,364.
$700X12mo.
=$8,400/0.11=$76,364
Which of the following is a less-than-freehold estate?
Leasehold estate
A California easement by prescription requires a minimum period of hostile use of:
five years
The person who acquires title to real property under the terms of a will is known as the:
devisee
A “commercial acre: is:
a normal acre, less deductions for streets and setbacks
As required by law and regulations, a real estate broker must have a:
trust fund logbook
An owner gives a quitclaim deed to Wilson for a parcel of real estate. Wilson does not record the deed. Which of the following is true the deed?
It is valid, but Wilson may lose title if another party records a deed.
When public records are used to establish a chain of title, a written summary of the results is known as a(n):
abstract of title
After a mortgage is executed and recorded, title:
remains with the mortgagor
A buyer in a land project can rescind the purchase for any reason and obtain a refund within:
fourteen days
All the following are contracts, except:
a deed
The cost approach to value has limited use when appraising:
tract homes
When an agent violates antidiscrimination regulations, the real estate commissioner can:
revoke a license
Zowski holds a life estate measured by his own life. He leased the property to Anderson for five years, but died two months later. The lease is:
no longer valid
An owner sold a lot for $70,400, realizing a 20 percent profit over what was originally paid for the lot. The profit is:
$11,733
Which of the following is not essential to a general contract?
That it be in writing
An example of a lender that frequently uses loan correspondents and funds large commercial loans is a:
life insurance company
The TRID closing disclosure is required to be delivered to the borrower no later than:
three days before closing
A deeds a title to B with the condition that B never sell alcoholic beverages on the property. B has a:
fee simple defeasible
A contract that is executory:
has not been performed.
A person who believes he or she has been discriminated against in seeking housing can file a complaint with the:
Fair Employment and Housing Commission
After a loan has been granted, rapid unanticipated inflation would most benefit a:
trustor with a fixed interest rate.
Properties A and B each have a value of $200,000. Property A was appraised using a capitalization rate of 6 percent, whereas Property B was appraised using a capitalization rate of 7 percent.
Property B has more income than Property A.
The Federal National Mortgage Association (Fannie Mae) was primarily created to:
increase the amount of money available to finance housing.
Broker Sanchez and Broker Roberts both have an open listing on a home. Broker Sanchez showed the home to a buyer who decided not to make an offer. A month later, Broker Roberts showed the same home to the same buyer, who then decided to buy. The seller owes a commission to:
Broker Roberts only
If a dispute arises during escrow and the buyer and seller cannot agree, the escrow holder may legally:
file an interpleader action.
An owner hired a broker to act as property manager and collect rent from tenants. Rents are due on the first of the month. On June 1, the broker collected rents from all but one of the tenants. The next day, the owner died. On June 2, the broker asked the remaining tenant to the rent. The tenant refused to give the rent money to the broker. The tenant:
should not give the rent to anyone but the heirs or the court.
If there is no notice of completion, a subcontractor must file a mechanic’s lien in:
90 days
Which of the following is not issued by the Department of Real Estate?
Escrow License
When a buyer purchases a condominium, the buyer must be given which of the following regarding CC&Rs, the amount of homeowners dues, and financial and pending lawsuits (if any) about the homeowners’ association?
Common Interest Development General Information
An out-of-state developer wishes to sell lots to Californians. All of the following apply, EXCEPT:
The Subdivision Map Act will be enforced
The $500,000 exemption on the profits from the sale of a qualified principal residence applies for homeowners who are:
Married and file joint tax returns.
The maximum time that urban real estate can be leased is:
99 years
Which of the following is not required to obtain title to unimproved land by adverse possession?
That the acquiring party live on the property.
The Health and Safety Code specifies minimum standards for water and sewer facilities in a new subdivision. Approval and control for local water and sewer rest with the:
Local officials
Most real estate syndicates in California use which form of ownership?
Limited Partnership
Which of the following would violate the advertising provisions of the Truth-in-Lending Law? Ads that state:
no money down
In the event that a seller backs out of a valid purchase contract, all of the following are true, except:
the broker could sue for specific performance
A federal law regarding the sale of subdivided lots is the:
Interstate Land Sales Full
The instrument used to transfer title to personal property is the:
bill of sale
A cloud on the title could be created by”
a deed of trust paid, but never reconveyed
A written agency between a real estate broker and a principle would not be:
implied
The most important in estimating the value of residential homes is:
demand by ready, willing, and able buyers
In an exclusive-agency listing:
a buyer’s agent from the MLS and the listing broker would be paid if the property closes.
Once an abstract of judgement is recorded, it remains in force for:
10 years
The secondary mortgage market refers to:
the resale of existing loans
If a tenant is late on the rent, an owner should serve a (n):
3-day notice
Adams sells his property to Baker. Baker places the deed to the property in his safety deposit box without recording. Adams also sells the property to Collins who records her deed and takes possession with no knowledge of the Baker transfer. Who is most likely to be deemed the owner of the property?
Collins
When work is done per the Street Improvement Act of 1911, property owners are allowed to pay their pro rata share within how many days before it goes to bond?
30
The real property tax year runs from:
July 1 to June 30
In qualifying married buyers for a loan, the least important is:
overtime pay
Rates for title insurance are established by:
title insurance companies
The important case of the U.S. Supreme Court that prohibits discrimination in housing is:
Jones v. Mayer
The maximum mortgage broker commission allowed on a $5,000 second trust dee loan due in seven years is:
$750
The maximum amount allowed from the Real Estate Recovery Fund for all parties in a single-judgement case against a broker is:
$250,000
