Deck 1: California

Question 1

What parties are required, by law, to sign the Agency Disclosure Statement:

A)Buyer only
B)Seller only
C)Buyer and seller
D)Buyer, seller, listing salesperson and selling salesperson

Answer 1

Buyer, seller, listing salesperson and selling salesperson

Question 2

An appraiser is preparing the income approach to an appraisal of income property. In his selection of a capitalization rate, he must recognize that the higher the rate used, the greater the implied ______________?

A)Income
B)Appreciation
C)Risk
D)Value

Answer 2

Risk

Question 3

In appraising a home, one of the factors which would affect the appraised value is:

A)The number of square feet in the structure
B)The owner's book value or cost basis
C)The current financing on the property
D)None of the above

Answer 3

The number of square feet in the structure

Question 4

A cloud on the title to real property would likely be created from __________.

A)an easement granted to the telephone company for overhead wires
B)A mortgage that had been paid off but the release was never recorded
C)New zoning restrictions being placed on the property
D)Recorded declaration of restrictions

Question 5

When a new first trust deed and second trust deed are created at the time of sale on a property and a "Request for Notification of Default" is recorded at the close of escrow, it is done for the protection of the:

A)Trustor of the first trust deed
B)Trustor of the second trust deed
C)Beneficiary of the first trust deed
D)Beneficiary of the second trust deed

Question 6

What is the economic life of an improvement?

A)Between the completion of the building and its inability to produce income
B)The extent of the improvement's physical life
C)When it stops producing income equal to taxes, maintenance, and utilities
D)None of the above

Question 7

A bank gave $550 to a licensed real estate salesperson for referring the salesperson's prospective buyer to the bank for a new loan. When the salesperson's broker became aware of the $500 referral fee, the broker immediately fired the salesperson, notified the Real Estate Commissioner and warned all of his other salespeople never to accept such a fee. In this situation:

A)The bank is subject to disciplinary action by the Real Estate Commissioner
B)The salesperson is subject to disciplinary action by the Real Estate Commissioner, but not the broker
C)The salesperson and broker are subject to disciplinary action by the Real Estate Commissioner
D)The broker overreacted because a referral fee is legal

Question 8

A planning commission's purpose is to:

A)Draw up blueprints of a total community within one area
B)Plan for health and safety codes
C)Pass needed zoning to keep centralization of business
D)Draft city or county plans with zoning assignments

Question 9

Mr) Jackson owns a home that is situated at the bottom of a hillside. In the winter time during heaving rainstorms his home is subject to damage by flooding so he dug a trench along the back of his property to divert water. This action would be:

A)Legal if the water is diverted to a vacant lot
B)Illegal because you cannot divert surface waters to another property to the detriment of the other property
C)Legal because every owner has the right to protect his property against flooding
D)Illegal because he is violating the riparian rights law

Question 10

The value of real estate is created, maintained, and destroyed by the interplay of three great forces. Not included in these three are:

A)Social ideals and standards
B)Private restrictions
C)Government regulations
D)Economic adjustments

Question 11

A licensed real estate broker is accused of violating the Unruh act for refusing to rent property to any other than those persons of the Caucasian race. If he is found guilty, he:

A)Must pay $25,000 to the party infringed upon
B)Is subject to actual damages
C)Both a and b
D)Neither a and b

Question 12

Pertaining to the Civil Rights Act of 1968 which was based on an act of congress in 1866, should a person be discriminated against when buying a piece of real property in California which of the following would they not be able to personally do?

A)File suit for monetary damages
B)Sue for any actual expenses incurred
C)Have the broker's license suspended or revoked
D)File a suit either in a state or federal court

Question 13

A subdivider is occasionally given a preliminary public report by the Commissioner. Which of the following invalidate that preliminary report?

A)A material change in the ownership of the subdivision
B)A material change in the size of the lots
C)The expiration of the preliminary report, or the issuance of the final public report
D)All of the above

Question 14

If five people own property as joint tenants:

A)They need not own equal interest in the property
B)There is still only one title to the whole property
C)And one of the owners dies, his heirs become tenants in common with the surviving co-owners
D)Each co-owner has a separate legal title to his undivided interest

Question 15

In California the most common form of ownership in a Real Estate Syndicate is:

A)Corporation
B)Real Estate Investment trust
C)Limited partnership
D)Joint venture

Question 16

A broker's trust fund records must show the trust fund balance on a _______ basis.

A)Daily
B)Weekly (each Friday)
C)Monthly (first of Month)
D)Quarterly (first of Quarter)

Question 17

An attachment is classified as:

A)A judgment
B)A lien
C)An encroachment
D)An appurtenance

Question 18

Mr) Smith bought a single-family residence and used an FHA loan to complete the purchase. Later he sold theproperty to Mr. Brown for all cash. The following instrument would NOT appear on the public record with thistransaction:

A)Grant deed to Smith
B)Reconveyance to Brown
C)Reconveyance to Smith
D)Trust deed to Smith

Question 19

The only unity required for the existence of a tenancy in common is:

A)Possession
B)Time
C)Title
D)Interest

Question 20

When selling under a power of sale in a trust deed, the trustee must wait three months after recording the Notice of Default before:

A)Taking possession
B)Foreclosure is final
C)Transferring title to beneficiary
D)Publishing notice of sale

Question 21

The owner of an undivided interest in land with no right of survivorship owns the land as:

A)A joint tenant
B)In severalty
C)Absolute ownership
D)A tenant-in-common

Question 22

When the Environmental Review Board or the Department of Real Estate issues a "negative declaration", it means that the subdivision:

A)Has not been approved by the Real Estate Commissioner for the issuance of a public report
B)Public report contains notations of possible adverse environmental impacts
C)Will have a significant effect upon the environment
D)Has been approved, from an environmental aspect

Question 23

Under the provisions of the California Fair Housing Legislation of 1963, the person filing a complaint with the proper authority must take action for the violation within:

A)30 days from the day of the alleged violation
B)60 days from the days of the alleged violation
C)180 days from the day of the alleged violation
D)1 year from the day of the alleged violation