TEST 6 - WRONG

Question 1

Jim leased a single family dwelling from Mr. McDowell and moved in. Mr. McDowell then demanded that Jim sign a contract agreeing to make substantial capital improvements to the property. This requirement by the lessor would render the lease contract:

(A) valid; (B) voidable by the lessor; (C) voidable by the lessee; (D) void.

Answer 1

(C) voidable by the lessee

A contract entered into under duress is voidable by the injured party. In this question, the contract is voidable by Jim, the lessee.

Question 2

When a landowner explains to the planning commission that exceptional circumstances exist which will not be detrimental to the public and he should therefore be allowed to use his land in a manner prohibited by current zoning, he is seeking:

(A) a variance; (B) an exception; (C) a rezoning; (D) a redevelopment.

Answer 2

(A) a variance

When the owner of one piece of land seeks permission to use his land in a manner prohibited by current zoning, he is seeking a variance. If several lots were involved, it would be rezoning.

Question 3

Jack sells his home to Barry who sets up his residency but fails to record the deed. Jack then gives a deed to Diane for the same home. What is the outcome?

(A) Diane owns the property; (B) Barry and Diane are co-owners; (C) Diane has recourse over Barry; (D) Barry has title.

Answer 3

(D) Barry has title.

The act of Barry’s taking possession gives constructive notice of his rights.

Question 4

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) 30 years; (D) 39 years.

Answer 4

(D) 39 years

Under current tax law, commercial real estate can be depreciated over a minimum of 39 years.

(WATCH OUT! SAID COMMERCIAL!)

Question 5

Who sets the county property tax rate?

(A) the State Board of Equalization; (B) the County Board of Supervisors; (C) the County Tax Assessor; (D) the Governor.

Answer 5

(B) the County Board of Supervisors

The county property tax rate is set each year by the County Board of Supervisors.

Question 6

How frequently must the real estate broker reconcile his trust account?

(A) daily; (B) weekly; (C) monthly; (D) annually.

Answer 6

(C) monthly

A broker must reconcile his trust account monthly.

Question 7

Jose is an unlicensed employee of a real estate broker. He was hired to hand out door hanger fliers in the neighborhood near the office and to make solicitation telephone calls to potential sellers and buyers. This is:

(A) unlawful for the broker; (B) unethical for Jose; (C) normal and appropriate behavior; (D) unlawful for both the broker and the unlicensed assistant.

Answer 7

(D) unlawful for both the broker and the unlicensed assistant

It is a violation of the law by the broker to hire an unlicensed person to perform real estate acts, and it is a violation of the law by the unlicensed person to perform those acts.

Question 8

Sanitation, sewage, and occupancy regulations are enforced by:

(A) the city engineer; (B) local health officers; (C) the city planning commission; (D) the local building inspector.

Answer 8

(B) local health officers

Sanitation, sewage, and occupancy regulations are enforced by local health officers.

Question 9

Sheet metal used to protect a building from water seepage is called:

(A) sheeting; (B) gutter; (C) flashing; (D) none of the above.

Answer 9

(C) flashing

Flashing is the name of this sheet metal.

(READ THE FUCKING QUESTION!)

Question 10

A real estate salesperson hired an unlicensed assistant. Which of the following actions taken by the unlicensed assistant would be improper?

(A) selected a licensed pest control inspector from a list provided by the real estate salesperson; (B) met the pest control inspector at the property and let him in to perform the inspection; (C) answered questions and provided the termite inspector with information about the property; (D) picked up the finished termite report from the inspector and delivered it to the escrow.

Answer 10

(A) selected a licensed pest control inspector from a list provided by the real estate salesperson

It is a violation of the law for either the licensee or an unlicensed assistant to select the licensed pest control inspector for the parties to a transaction.

Question 11

A 36 mile square contains how many townships?

(A) 1 township; (B) 6 townships; (C) 18 townships (D) 36 townships.

Answer 11

(D) 36 townships.

A 36 mile square measures 36 miles by 36 miles and contains 36 townships.

(GOT TO MEMORIZE THIS SHIT)

Question 12

Which of the following do appraisers find most difficult to measure accurately?

(A) capitalized income; (B) accrued depreciation; (C) comparable sales data; (D) new replacement cost.

Answer 12

(B) accrued depreciation

Accrued depreciation is most difficult to measure accurately because it always requires an appraiser to use her subjective opinion. The other choices may be ascertained by objective data.

Question 13

A subdivider is selling new homes, using land contracts for financing. The subdivider places into the contract a clause whereby the purchaser agrees not to prepay any part of the debt. Which of the following statements is true?

(A) the vendee is bound by the clause; (B) the clause is binding on subsequent purchasers; (C) the vendee can disregard the clause; (D) the entire contract would be void because of the clause.

Answer 13

(C) the vendee can disregard the clause

A clause prohibiting prepayment is called a “lock-in “ clause. California law does not allow a vendor (seller/lender) to “lock-in” a land contract for the sale of four or less residential units. The contract is still valid, but the vendee (buyer) may disregard the clause.

Question 14

Under RESPA, the uniform settlement statement must be delivered:

(A) 5 calendar days after the loan commitment is made; (B) 3 business days prior to the close of the transaction; (C) 1 calendar day prior to the settlement date; (D) at or before the settlement date.

Answer 14

(D) at or before the settlement date

Although the lender must allow the borrower to inspect the uniform settlement statement one day prior to the close of the transaction, the statement must be delivered at or before the date of settlement.

Question 15

When a real estate broker is employed to represent a seller in the sale of a property, the broker is usually employed to act as:

(A) a limited agent; (B) a privileged agent; (C) a general agent; (D) a special agent.

Answer 15

(D) a special agent

A special agent is an agent who is authorized by a principal to perform a particular act or transaction, without the continuity of service of a general agent. A real estate broker is usually employed as a special agent by a seller to find a buyer for a particular property.

Question 16

The unspecified maturity date on a construction loan, begins from what date?

(A) from the date of construction begins; (B) from the date of the note; (C) when the money is placed in escrow; (D) from the date the escrow is formally closed.

Answer 16

(B) from the date of the note

The date of the note determines the maturity date on construction loans.

Question 17

The city planning commission recently changed the zoning for a residential neighborhood to allow for the construction of multiple family residential dwellings. The new zoning would most likely be:

(A) A-3; (B) C-3; (C) M-3; (D) R-3.

Answer 17

(D) R-3

R-3 is the typical zoning for multiple family residential dwellings.

Question 18

If prices rise 20% what happens to the purchasing power of the dollar?

(A) it goes down 10%; (B) it goes down 16-2/3%; (C) it goes down 20%; (D) nothing, the purchasing power of the dollar is unchanged.

Answer 18

(B) it goes down 16-2/3%

Example: Six apples that used to sell for $1.00 now sell for $1.20 (20 cents each). The dollar which used to buy six apples now only buys five apples, a decrease in purchasing power of 1/6 or 16-2/3%.

Question 19

A real estate broker wrote an offer for his buyers. The offer was made contingent on the approval of the home by the buyer’s uncle. The buyers informed the broker that their uncle was currently in Europe and they were unsure when he would return. The broker replied that the uncle’s being out of the country would be no problem. The broker then presented the offer to the seller without disclosing that the buyer’s uncle was out of the country. The seller accepted the offer. Under these circumstances, the broker’s conduct was:

(A) lawful; (B) unlawful; (C) ethical; (D) unethical.

Answer 19

(B) unlawful

A real estate broker must disclose material facts to the seller. The broker’s failure to disclose the absence of the uncle was withholding material facts and was unlawful.

Question 20

A broker took an exclusive loan listing to negotiate a loan of $3,000 for a borrower. The listing was for 90 days. Under these circumstances, the listing would be:

(A) a valid, enforceable loan listing; (B) all right because loans below $6,000 are not regulated; (C) illegal for the broker to take an exclusive listing for that period of time; (D) illegal unless the broker was also a real property security dealer.

Answer 20

(C) illegal for the broker to take an exclusive listing for that period of time

An exclusive loan listing may not exceed 45 days.

Question 21

No title insurance policy offers protection against:

(A) legal expenses incurred in defending a title; (B) defects in the chain of title; (C) lack of capacity of grantor; (D) zoning.

Answer 21

(D) zoning

No title policy offers protection against governmental regulations, such as zoning.

Question 22

How long is each side of a square parcel of land containing 160 acres?

(A) 1/4 mile; (B) 1/2 mile; (C) 1 mile; (D) 6 miles.

Answer 22

(B) 1/2 mile

A square parcel of land containing 160 acres is one quarter of a section and measures 1/2 mile by 1/2 mile.

Question 23

Which of the following would be least likely to include a legal description of a parcel of real estate?

(A) a grant deed; (B) a property tax bill; (C) escrow instructions; (D) a preliminary title report.

Answer 23

(B) a property tax bill

Property tax bills use an assessor parcel number, not a legal description. The other documents will contain a legal description.

Question 24

Trust deeds and mortgages differ in all of the following ways, except:

(A) parties; (B) security; (C) title; (D) rights of redemption.

Answer 24

(B) security

Trust deeds and mortgages both are used to create the security for a debt.

(READ THE FUCKING QUESTION)

Question 25

The effective date of a deposit receipt is the date that:

(A) the deposit was received by the buyer’s agent; (B) the contract was drafted; (C) the buyer signed the contract; (D) the seller’s acceptance was properly communicated to the buyer.

Answer 25

(D) the seller’s acceptance was properly communicated to the buyer

The effective date of the deposit receipt would be the date the seller’s acceptance was communicated to the buyer.

Question 26

Loss of title results from:

(A) erosion; (B) prescription; (C) accretion; (D) certiorari.

Answer 26

(A) erosion

Erosion results in loss of title. Accretion is the addition of land by depositing, due to action of water. Certiorari is a writ from superior court, calling for records. Prescription is a method of obtaining an easement, not title.

Question 27

Which of the following phrases in an ad would violate HUD guidelines for advertising?

(A) good neighborhood; (B) retiree’s dream home; (C) wedding chapel on site; (D) seeking female roommate.

Answer 27

(B) retiree’s dream home

“Retiree’s dream home” violates HUD guidelines for advertising.

(I’M ASSUMING BECAUSE IT MENTIONS AGE)