Simulated Exams MC Flashcards
If evidence of active infestation is found, a structural pest control report is required to be provided for what type of transactions?
Pest control reports are only required of U.S. Department of Veterans Affairs (VA) and some Federal Housing Administration (FHA) transactions, such as where active infestation is observed.
A purchaser of a condominium unit requests a copy of the conditions, covenants, and restrictions (CC&Rs) and bylaws. These documents need to be provided to the buyer within how many days of the buyer’s request?
CC&Rs need to be delivered within ten days of the buyer’s request. However, as a matter of good practice, CC&Rs and other mandated disclosures are to be delivered as soon as practicable.
A contract has been fully executed when it has been: A. entered into B. signed, notarized and recorded C. signed and delivered D. completed and fully performed
D. Execution of a contract occurs when it has been completely and fully performed.
When a salesperson’s employing broker dies, what does the salesperson needs to do?
If a salesperson’s employing broker dies, the salesperson may not conduct licensed activity until a new employing broker is named.
Nathan agreed to list his property for sale with Broker Chan. In the listing agreement, Nathan specified Broker Chan is not authorized to accept a deposit towards the purchase price from the buyer. What happens if Broker Chan produces a buyer?
A. He must refused to accept any deposit.
B. He cannot present the offer as written.
C. If he accepts a deposit, he holds it as an agent of the buyer until the offer is accepted by the seller.
D. If he accepts a deposit and the buyer rescinds the offer prior to acceptance by the seller, Chan is entitled to one-half of the deposit.
C. Due to the lack of seller authorization, Broker Chan holds the deposit towards the purchase price as an agent of the buyer until the offer is accepted by the seller.
The employment agreement between a broker and a salesperson needs to be retained by the broker and salesperson for how many years and beginning on what date?
Employment records between a broker and a salesperson need to be kept for three years. The three year time period begins to run on the termination of the employment.
How soon must a broker deposit a client check that is made out to the broker’s trust account?
Three business days is the time allowed to deposit a client’s check into the broker’s trust account.
If a lessee assigns their lease to someone else, the lessee:
A. is relieved of all responsibilities
B. may be responsible for rent payments
C. may be responsible for maintenance charges
D. may be responsible for both rent and maintenance charges
D. The assignment of a lease does not relieve the lessee (tenant) of responsibility they may have agreed to under the terms of a lease. Only an assumption of the lease will free the lessee of an agreed-to obligation.
Insulation values are rated as "R". What does this represent? A. Resistance to heat flow B. Cost C. Thickness D. Materials used
A. Insulation is designed to avoid the transfer of heat. The higher the insulation’s R factor, the greater the resistance to heat loss.
A violation of a condition in a homeowners’ association’s (HOA’s) conditions, covenants, and restrictions (CC&Rs) is:
A. more severe than the violation of a covenant
B. the same as the breach of a covenant
C. less sever than the violation of a covenant
D. unaffected by restrictions
A. The violation of a condition in a homeowners’ association’s (HOA’s) condition, covenants, and restrictions (CC&R’s) is considered more serious than a violation of a covenant. The violation of a condition may result in the loss of title whereas a covenant is simply a promise, the breaking of which will not result in the loss of title.
Peter sold his home to Matt. Matt didn’t record the grant deed, but moved into the house. Peter then sold the same property to Isabella, who reviewed the county recorder’s records but did not look at the house. Peter gave Isabella a deed, which she recorded. Which of the following is true concerning title to the property?
A. Matt maintains title.
B. Isabella now owns the property since she recorded her deed and Matt did not.
C. Isabella has recourse against Matt for his failure to record.
D. Matt and Isabella are co-owners of the property.
A. Since Isabella failed to look at the property and determine where it was occupied, Matt retains title. Constructive notice requires that the buyer (Isabella) look at the property as well as the county records.
Which of the following is false regarding the cost method of appraisal?
A. It is used in computing real estate values of public buildings.
B. It is hard to apply.
C. It is used in new residential homes.
D. It produces the lowest value results.
D. Of the three appraisal approaches, the cost approach will generally produce the highest value and the income approach will generally produce the lowest value. The reason for this is that while the cost approach shows the actual expense to replace the property, the income approach demonstrates the value based on the income it generates which is always less.
A property owner lost their job. The owner’s loan payments were made for them since they had a(n):
A. Federal Housing Administration (FHA)-insured loan.
B. U.S. Department of Veterans Affairs (VA)-guaranteed loan.
C. California Housing Financing Agency (CalHFA) loan.
D. CalVET Home Loan
C. Under a California Housing Financing Agency (CalHFA) loan, the CalHFA will make loan payments for a borrower during a period of unemployment.
Alienation of title refers to: A. a cloud on title B. angering another C. recording a homestead declaration D. transferring an estate
D. Alienation of title refers to a transfer of ownership.
Successful marketing materials are generally held to include which four critical elements?
The essential elements of marketing materials are: attention, interest, desire, action (AIDA).
A seller enters into an exclusive right-to-sell listing with an agent but does not receive a copy of the signed agreement. The seller, believing this relives them of any obligations, personally sells the property while the listing is in effect. What is the outcome?
A. The listing is invalid and the broker is liable to be discliplined.
B. The broker did nothing wrong.
C. The listing is valid and enforceable, but the broker is liable to be disciplined.
D. The broker may be disciplined only if they accept a commission.
C. The failure deliver a copy of any signed document is a violation of agency law that may warrant disciplinary action by the DRE. However, the signed listing contract is still valid and enforceable against the seller.
To make a formal declaration that a statement is true without giving an oath is a(n): A. Acknowledgment B. Affirmation C. Affidavit D. Deception
B. Acknowledgment and affidavit are formal declarations that require an oath. An affirmation is a formal declaration that a statement is true without giving an oath.
In a 1031 real estate exchange, "boot" does not refer to: A. Unlike property received B. Cash received C. Mortgage relief D. Like-kind consideration
D. Boot refers to any consideration in a 1031 exchange of an unlike kind.
What must an appraiser do when they are hired to appraise a property owned by a corporation in which the appraiser owns a share?
Disclose their ownership interest in the property and accept the assignment. The choice of whether to retain the appraiser is left to the client.
Who pays the points on a CalVet Home Loan? A. The buyer B. The seller C. The State of California D. No one pays the points
D. No points are charged on a CalVet loan. It is a land sales contract.
A mortgage broker's fees are customarily paid by the: A. Lender B. Seller C. Borrower D. Underwriter
C. Mortgage broker’s fees are customarily, though not exclusively, paid by the borrower.
A fictitious business name statement expires every?
The DBA (“doing business as”), also known as a fictitious business name needs to be renewed every five years from recordation.
A lost right caused by an unreasonable delay in the pursuit of a claim is called: A. Dereliction B. Escheat C. Laches D. Tort
Laches is an unreasonable delay in making an assertion or claim, such as asserting a right, claiming a privilege, or making an application for redress, which may result in refusal or a lost right.
A real property land sales contract does not need to show:
A. The legal description
B. How a dispute is to be resolved if there is a disagreement
C. Existing loans encumbering the property
D. The length of time required to pay off the contract
B. A dispute resolution provision is a good practice, though not required.
A 60 ft. by 45 ft. building is to be carpeted. 60% of the square footage will be covered at a cost of $6 per square yard. How much will the total cost of the carpeting be?
$1,080 (note, 3 feet = 1 yard, 9 square feet = 1 square yard)
What is the time frame for the federal Loan Estimate to be delivered to a borrower?
The federal Loan Estimate is to be delivered to a borrower within three business days of receipt of a consumer mortgage application.
The Federal Truth-in-Lending Act (TILA) defines the annual percentage rate (APR) as:
The annual percentage rate (APR) is stated as a percentage and represents the total cost of credit including the prepaid interest costs (points).
A loan that allows the borrower to make monthly payments less than the interest accruing is referred to as a(n): A. 80/20 loan B. Straight lona C. Hybrid loan D. Option adjustable rate mortgage (ARM)
D. The option adjustable rate mortgage (ARM) results in negative amortization.
The lowest closing costs other than the down payment are realized using a:
A. Federal Housing Administration (FHA)-insured loan
B. U.S. Department of Veterans Affairs (VA)-guaranteed loan
C. CalVET loan
D. Conventional loan
Closing costs are charges related to the transaction that are paid through escrow. The CalVet Home Loan is a land sales contract and is therefore different from each of the other answer choices. There are no loan charges in this arrangement and thus the escrow charges are lower.
A bank loans Lauren $850,000. Part of the loan agreement calls for Lauren to keep $20,000 of the loan funds on deposit with the bank for the life of the loan. This is an example of: A. Prepaid charges B. Yield enhancement C. Risk management D. Compensating balance
D. Banks may require a compensating balance, which is leaving enough money with the bank to offset potential foreclosure costs. It can also be said to improve the yield and reduce the lender’s risk.
Unless fraud is involved, an action against a licensee by the Real Estate Commissioner needs to be initiated within how many years of the occurrence of the alleged violation?
The Statute of Limitations allows a three-year period after the alleged violation for the Real Estate Commissioner to initiate an action against a licensee, except in the case of fraud where the limit is three years from the occurrence or one year of the discovery.
The proper order of events in a court proceeding involving real estate is: A. judgment, attachment, execution, B. attachment, judgment, execution C. judgment, execution, attachment D. execution, judgment, attachment
B. The order of events in a court proceeding are as follows: the attachment of the property through a lis pendens to ensure its availability if a judgment is awarded. Then after judgment has been made, it is executed.
Which of the following is least likely to be true regarding a property that is transferred through intestate succession?
A. The owner of the property died with no will
B. The owner of the property died with a will
C. The property will be transferred through probate court
D. The property transfer requires court approval
B. Intestate means a property owner dies with no will. Under such conditions, the transfer generally requires a court approved transfer through probate court, unless a revocable transfer on death deed has been recorded.
A seller entered into an oral listing agreement to sell real estate with a broker without a follow-up written verification. The payment of a commission to the broker under these circumstances is:
A. unenforceable
B. enforceable
C. a violation of the regulations of the Real Estate Commissioner
D. regarded as contrary to public policy
A. An oral listing agreement fails the conditions of Statue of Frauds which requires the listing to be in writing to be enforceable. As such, the broker’s fee is unenforceable in a court action.
Most real estate sales lawsuits are head in: A. the court of appeals B. small claims court C. the state supreme court D. the state superior court
D. The state superior court is where most real estate lawsuits are generally heard. Generally real estate cases are too large for a small claims court to settle. The court of appeals and the state supreme court will only hear those cases not settled by a lower court.
The physical age of a house can be determined best by inspection:
A. the architectural style
B. the county records
C. the physical condition of the property
D. the original recorded subdivision map
B. County records are the most accurate way to determine the physical age of a house. The condition of a property reflects effective age but not necessarily its physical age if it is adequately maintained.
For a salesperson to be given the authority to review purchase agreements and contracts by their broker, the salesperson granted supervisory powers needs to have how many years of experience?
For a salesperson to be given the authority to review documents (i.e. purchase agreements and contracts) by their broker, they need to have accumulated two full years’ experience within the last five years.
A buyer purchased a home without being informed the house was on a septic tank system. The buyer has the right to:
A. rescind the contract
B. have the broker disbarred
C. sue the escrow company for malfeasance
D. report the seller to the DRE for failure to disclose
A. Rescission is the cancellation of a contract and restoration of the parties to the same position they held before the contract was entered into. (Seller doesn’t answer to the Real Estate Commissioner; escrow officer is not responsible for disclosures; brokers are not members of the State Bar)
Why are warranty deeds rarely used in California but commonly used in other states?
A warranty deed places the liability on the grantor rather than a title company. Recourse against a title company under a grant deed is more effective than trying to collect from the grantor under a warranty deed.
What appraisal license is required to appraise a ten unit apartment building valued at $1 million?
Anything other than a one-to-four unit residential property requires a certified general appraiser license.
California’s energy conservation disclosure requirements require that buyers of newly built homes receive a disclosure concerning what?
The rating of the insulation installed in a property (R-value) needs to be disclosed to buyers of newly built homes.
What is not essential to the creation of an agency relationship? A. Agreement to pay consideration B. Competency of the principal C. Consent of the principal D. A fiduciary relationship
A. Agency is not necessarily a matter of compensation. The agency relationship between a client and agent exists whether or not the transaction closes and the agent receives a fee.
Agency disclosure is handled in what sequential steps?
D - Disclose
E - Elect
C - Confirm
What is wainscoting?
Wainscoting is a traditional style of wall covering in which a chair rail divides the lower portion of the wall from the upper portion which is generally of different material.
A broker’s receipt of any deposit towards marketing costs from a seller is documented:
A. in the broker’s bank statements
B. and reported to the Department of Real Estate
C. in a subaccount ledger
D. and accounted to the seller
D. Monies advanced to the broker for future marketing costs need to be accounted to the seller.
A real estate broker wrote an offer for their buyer that was contingent on the approval of the home by the buyer's father. The buyer informed the broker their father was out of the country for an unknown duration. The broker presented the offer to the seller without disclosing that the buyer's father was out of the country. The seller accepted the offer. In this example, the broker's conduct was: A. Unethical B. Unlawful C. Misleading D. Acceptable
B. The misleading nature of the undisclosed factor rises to the level of unlawful conduct as it places the seller in a position in which they can neither sell the property to someone else nor complete the accepted transaction. As with puffing, it is the belief and trust bestowed by the principal that causes the act to move beyond a matter of ethics and becomes unlawful.
if homes in an area represent the highest and best use of the land and are similar in architectural design, which of the following principles of appraisal apply? A. Anticipation B. Contribution C. Conformity D. Substitution
C. The principle of conformity holds that the maximum value is realized when a reasonable degree of homogeneity of improvements is present. Use conformity is desirable, creating and maintaining higher values.
In the instance of condominium ownership, which of the following may be held in fee title? A. The outside yard B. The public hallways C. The individual units D. All of the above
D. In a condominium complex, an individual owner owns their own condo as well as a proportional share of all common areas. They can own both in fee title.
The sudden physical loss of land due to a flood is an example of: A. Accretion B. Avulsion C. Ponding D. Reliction
B. Avulsion is the sudden loss (or addition) of land through natural forces. Accretion is the gradual addition to property through the accumulation of layers of soil. Reliction is the gaining of land area.
If a newspaper advertisement for the sale of a condominium states only the annual percentage rate (APR):
A. the number of payments needs to be included
B. the down payment amounts needs to be included
C. the total financing charges need to be included
D. no other disclosures are required
D. The annual percentage rate (APR) may stand alone as financial information without providing additional financial information in a newspaper advertisement.
Betsy purchases a property in a rural area that receives water from a local tributary and obtains stock in a mutual water company. Which of the following statements is incorrect?
A. The mutual water company possesses the right to take water from a local source and share the water with the landowners who live in the area.
B. When Betsy sells her property, she retains ownership of her stock.
C. The mutual water company is a corporation formed by the state of California.
D. The stock owned by Betsy is appurtenant to the land.
B. Stock in a mutual water company is appurtenant to the land. Thus, when an owner sells their property, they do not retain ownership of the stock.
What is a stock cooperative?
A stock cooperative refers to an apartment building that is owned by a corporation. Tenancy in an apartment unit is obtained by the purchase of shares of stock in the corporation. The owner of such shares is entitled to occupy a specific apartment within the building.
The concept of smart growth is most applicable to what type of property? A. Rural B. Urban C. Suburban D. Both rural and urban property equally
B. Smart growth is primarily an urban planning theory which seeks to concentrate growth in dense, compact urban centers. The principal objective of smart growth is to avoid sprawl.
Architect Franklin is studying a document related to the construction of a neighborhood. The documentation shows how the tract of land is divided into designated lots. It also displays the boundary of each lot of the development, as well as nearby streets and recorded easements. What type of document is Franklin most likely looking at?
A. Plot plan
B. Topographic map
C. Plat map
D. Conditions, covenants, and restrictions (CC&Rs) of a community
C. A plat map shows how a tract of land is divided into lots. It also displays the size, boundary locations, nearby streets, flood zones, easements and rights of way which relate to the project. On the other hand, a plot plan shows where a building and other site improvements will be located on an individual lot. In terms of scale, a plat map relates to a whole neighborhood or development while a plot plan refers to a single property.
Which of the following action does not constitute constructive eviction under a lease?
A. The owner fails to make necessary repairs to the property.
B. The owner makes extensive and unnecessary changes to the building, making it no longer usable for its original purpose.
C. The owner shows the property to a new prospective tenant and enters into lease negotiations with the new tenant.
D. The owner evicts the tenant after proper service of a Three-day Notice to Quit.
D. A constructive eviction occurs when the landlord substantially interferes with the tenant’s use and enjoyment of the premises during the term of the tenancy, and the tenant vacates the premises due to the interference.
Return on an investor's investment is provided for through: A. Sinking funds B. Depreciation C. A reserve for replacement D. Profit
B. Depreciation, as an income tax deduction, is the means by which investors have their investment returned.
Heather, a single mother, is able to get down payment assistance as well as a below market rate on interest on her mortgage. What type of mortgage did she receive?
A. CalVet
B. U.S. Department of Veterans Affairs (VA)-guaranteed loan
C. Federal Housing Administration (FHA)-insured loan
D. California Housing Financing Agency (CalHFA)
D. The California Housing Financing Agency (CalHFA) program offers first-time home buyers special consideration. CalVet is not a mortgage program, and U.S. Department of Veterans Affairs (VA) and Federal Housing Administration (FHA) are insured and guaranteed loans arranged through mortgage brokers and banks.
A husband nominates his wife to manage his will. Thus, she will function as an: A. executrix B. administratrix C. administrator D. executor
A. The term for manager of a will is executor. As the wife is managing the will, the correct answer in the feminine form of this word is executrix.
What is reconveyance?
Reconveyance is a document executed by a trustee named in a trust deed to release the trust deed lien from title to real estate, used when the secured debt is fully repaid.
An exception in a grant deed:
A. is the same as a reservation in a grant deed
B. voids the deed entirely
C. excludes part of the property from the grant
D. makes certain provisions of the deed voidable
C. Grand deeds transfer title to property. When an exception is stated, a portion of the property is not transferred with the grant deed. For example, consider an easement being retained by the owner, or a specific space such as highway frontage or beach frontage to be held for other purposes.
What is the difference between a specific lien and a general lien?
As a specific lien, a seller carryback note will stipulate the specific property that is securing the loan. If this is an income tax lien, it will be attached to everything the person owns and be classified as a general lien.
If an agent is unable to find an acceptable replacement home before the close escrow after verbally promising the seller that they could, what is the seller’s recourse?
The seller can recover damages against the agent in a civil lawsuit as a result of reliance on false promise.
If present at the formation of a contract, which of the following does not make a contract voidable? A. Fraud B. Duress C. Undue influence D. Illegal purpose
D. Illegal purpose makes the contract inherently void, not voidable at the discretion of the parties. Alternatively, a voidable contract is one that can be enforced by the party who has the option to perform or not.
If a 16-year-old emancipated minor wishes to sell real property, their broker may:
A. not accept the listing
B. accept the listing
C. accept the listing only with a guarantee from an adult
D. accept the listing, but it will be voidable
B. The broker may accept the listing of an emancipated minor. A 16-year-old emancipated minor may be treated as an adult who has the right to buy and sell real estate.
If a strip of land is washed away by a flood, what is this action known as? Alluvium or Avulsion.
This is known as avulsion, which is the sudden decrease or increase of the earth on a shore of an ocean or stream resulting from the action of water. On the other hand, alluvium refers to the boundary of a property that has moved due to the relocation of a river or stream.
Which of the following is not a soil condition? A. Alkaline B. Adobe C. Deciduous D. Expansive
C. Deciduous refers to trees that lose their leaves in the winter. Alkaline, adobe, and expansive are soil conditions.
What is a gore?
A “gore” is a triangular piece of land.
A listing broker sells an office building to a syndicate of which the broker is a member without informing the seller of this interest. Before closing, the seller discovers the broker’s interest and refuses to sell. What would happen in a civil suit to collect a commission?
The broker’s failure to disclose their interest in the syndication allows the seller to deny the commission to the broker.
Which of the following is an illegal activity for a broker under agency law?
A. Accepting commissions from both the buyer and the seller.
B. Acting as an escrow.
C. Selling their own property without disclosing their license status.
D. Depositing additional personal funds into a client’s trust account.
D. Depositing personal funds into a client’s trust account is an example of improper commingling.
A lender must notify a borrower when a final/balloon payment is due how many months/days prior to the due date?
A lender must notify a borrower when a final/balloon payment is due three to five months (or 90 to 150 days) prior to the due date.
When the administrator of an estate sells a parcel:
A. it needs to be sold at a public auction
B. it can only be sold “as is”
C. court approval is required
D. the sale cannot legally involve a real estate broker
C. A sale from an estate involves court and will therefore require court approval.
Real estate brokers are required to have written employment contracts with: A. all clerical staff they employ B. non-licensees they employ C. salespersons they employ D. all of the above
C. Written contracts are required to properly document a broker’s employment of a salesperson.
Without being licensed as an escrow officer, a broker may not handle escrow activities when they:
A. represent the buyer
B. represent the seller
C. act as the principal
D. are not other wise involved in a transaction
D. The broker needs to be involved in the transaction representing one of the principals or themselves in order to act as the escrow officer.
A buyer is obligated to disclose to the seller:
A. that the listing price is too low
B. that the seller is mistaken regarding their representations about the zoning of the property
C. both A. and B.
D. neither A. and B.
D. The buyer has no obligation to disclose facts to the seller.
The maker of a negotiable instrument is able to defend against a holder in due course in the event of: A. forgery B. incapacity C. both A. and B. D. Neither A. and B.
C. Both forgery and incapacity are a suitable defense against a holder in due course. A holder in due course is one who has taken a note, check, or bill of exchange in due course: 1. Before it was overdue; 2. In good faith and for value; and 3. Without knowledge that it has been previously dishonored and without notice of any defect at the time it was negotiated.
If there is no specific closing date named in the escrow instructions, escrow is to close: A. within a reasonable period of time B. within 30 days C. within 60 days D. within 90 days
If there is no specific closing date named in the escrow instructions, escrow is to close within a reasonable period of time.
The closing statements the buyer and seller get from escrow:
A. are always different from one another
B. are acknowledge before a notary public
C. are always identical to one another
D. are approved by the title company
A. The buyer and seller closing statements will always be different.
Department of Housing and Urban Development (HUD) advertising guidelines are violated by which of these phrases: A. "seeking a female roommate" B. "good neighborhood" C. "retiree's dream home" D. "great location"
C. The suggestion that a property is more suitable to one group of people – retirees – is viewed as discrimination. Alternatively, it is acceptable to have requirements for a roommate and state an opinion such as a “good neighborhood.”
A subdivider needs to give a copy of the Real Estate Commissioner’s public report to:
A. anyone who is likely purchase one or more lots.
B. anyone upon request.
C. only bona fide purchasers who have signed a purchase contract
D. the salespeople they employ
B. A public report issued by the Real Estate Commissioner has to be made available to anyone who requests it. The report contains all material facts regarding the subdivision, including financial matters and items of record such as CC&Rs.
Within how many days of execution is a landlord required to provide the tenant wit ha copy of the written lease?
A landlord is required to provide a signed copy of the lease to the tenant within 15 calendar days of its execution by the tenant.
Blake sold his home to Frank but remained in possession and negotiated a two-year leaseback. Frank did not record the deed. During this two-year period, Blake sold the home to Sam who then recorded the deed. Who owns the home?
Sam is the owner since he recorded the deed. Constructive notice can be either the recorded deed or possession. Since Blake retained possession, Sam had no way of knowing that Frank previously purchased the house. This makes Sam a bona fide buyer.
“Agency” includes relationships between licensed sales agents and their brokers and:
A. brokers and members of the public
B. finders and their brokers or principals
C. escrow officers
D. both A. and B.
D. Agency is the relationship between a licensed agent and principals as well as other brokers and finders.
A seller is required to deliver earthquake safety guides to buyers of most masonry buildings with wood frame floors or roofs built prior to: A. 2000 B. 1990 C. 1980 D. 1975
D. A seller is required to deliver earthquake safety guides to buyers of most masonry buildings with wood frame floors or roofs built prior to 1975; if not this form of roof, then the disclosure needs to be delivered to buyers of all other homes built prior to 1960.
What is the minimum number of years a building may be depreciated for income tax purposes? Note this differs for residential vs. commercial.
The minimum number of years you may depreciate rental investment property depends on the type of property underlying the investment. While the period is 27.5 years in the context of residential property, the minimum number is 39 years for commercial property.
Who generally benefits the most from an assignment of rent clause contained in a trust deed? A. The trustor B. The trustee C. The beneficiary D. The purchaser
C. The “assignment of rents clause” benefits the beneficiary (lender) the most as it allows the lender to receive the rents tendered by tenants when the borrower is in default.
What does an elevation sheet show?
An elevation sheet is a drawing that depicts the front and side views of homes. It is used in advertisements, brochures, and other points of sale renderings.
Broker Chuck listed a duplex for a sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
A. It is suspended until new officers acknowledge the agreement.
B. It is unaffected.
C. It is automatically terminated.
D. It converts to a debt obligation against the corporation.
B. The employment contract is unaffected by the death of the corporate officers as the client is the corporation. new officers will be named who need to honor the terms of the listing.
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to: A. A full commission B. Half the commission C. An amount agreed to with seller D. Nothing
D. Nothing. Under an exclusive agency listing, the seller is not required to pay any commission to the broker when the seller personally sells the property. Payment of a fee would be required under a seller’s exclusive right-to-sell.
If a deed provides for an easement granting ingress and egress over a neighboring property but fails to locate the easement, the:
A. deed is void
B. deed is voidable
C. servient tenement holder can specific a particular area so long as it is reasonable
D. dominant tenement holder can choose any area for access
C. If a deed provides for an easement granting ingress and egress over a neighboring property but fails to locate the easement, the servient tenement holder (owner of the neighboring property burdened by the easement) can specify a particular area so long as it is reasonable.
When one broker authorizes another broker to act as their subagent on the approval of the seller, the subagent is primarily responsible to the: A. Seller B. Original broker C. Department of Real Estate (DRE) D. Buyer's broker
A. Seller
The placement of a house upon the lot is referred to as its: A. Preference B. Zoning classification C. Orientation D. Location
C. Orientation
