Question 1

The fine for an unlicensed individual who receives an illegal commission is:
A) $100
B) $1,000
C) $20,000
D) $100,000

Accepted Answer

The fine for an unlicensed individual who receives an illegal commission is typically significant to deter such behavior, and among the options provided, $20,000 is a plausible amount that reflects the seriousness of the offense.

Question 2

A real estate broker is most frequently the agent of the:
A) seller
B) buyer
C) lender
D) escrow company

Accepted Answer

A real estate broker is typically hired by the seller to represent them in the sale of their property. However, it is possible for a real estate broker to represent a buyer as well, in which case they would be considered a buyer's agent.

Question 3

The state law that prevents agents from discriminating when providing real estate services to the public:
A) Fair Housing Act
B) Rumford Act
C) Unruh Civil Rights Act
D) Housing Financial Discrimination Act

Accepted Answer

C

Question 4

An appraisal is defined as:
A) market price
B) an estimate of value
C) maximum security for a loan
D) actual resale price

Accepted Answer

An appraisal is an estimate of the value of a property, usually conducted by a professional appraiser. While it may take into account market trends and recent sales, it is not necessarily the same as the market price or an actual resale price. It may also be used as a factor in determining the maximum security for a loan, but this is not its primary purpose.

Question 5

Airspace directly above a parcel of land is considered to be:
A) personal property
B) fixture
C) a chattel
D) real property

Accepted Answer

The airspace above a parcel of land is considered to be a part of the real property. Real property comprises land and everything that is permanently attached to it, including the airspace above it.

Question 6

Under the treaty of Guadalupe Hidalgo in 1848, the United States acquired the territory of California from:
A) Spain
B) Mexico
C) France
D) Native American Indians

Accepted Answer

The Treaty of Guadalupe Hidalgo was a peace treaty signed between the United States and Mexico in 1848, which ended the Mexican-American War (1846-1848). As part of the treaty, Mexico agreed to cede (give up) a large portion of its territory, including California, to the United States. Therefore, the correct choice is B) Mexico.

Question 7

Under Proposition 13, the maximum real property tax cannot exceed what percent of full cash value (before adjustments for inflation and voter approved bonds)?
A) 1%
B) 2%
C) 5%
D) 9%

Accepted Answer

Proposition 13, passed in California in 1978, limits the maximum real property tax to 1% of the property's full cash value, with adjustments allowed for inflation and voter-approved local bonds.

Question 8

The definition of land includes all but one of the following:
A) airspace above the land
B) hills and valleys
C) rocks and soil
D) oil deposits beneath the surface of the land

Accepted Answer

Land includes the surface of the earth, as well as the subsurface, but only to the extent that it is necessary to support surface uses. This generally includes oil and mineral deposits, but not airspace above the land or hills and valleys. Rocks and soil can be considered part of the land.

Question 9

Property owners whose land borders a river have rights to a reasonable use of the water, known as:
A) appropriation rights
B) riparian rights
C) seizure use rights
D) extraction rights

Accepted Answer

Riparian rights refer to the legal rights of a landowner whose property borders a body of water, such as a river or lake. These rights include the right to reasonable use of the water, such as for drinking, irrigation, and recreational purposes, but not the right to divert or pollute the water. Appropriation rights, seizure use rights, and extraction rights are not applicable to riparian rights.

Question 10

A real estate broker received a commission of $6,300, which represented 6% of the sales price of the lot. What was the sales price of the lot?
A) $ 26,800
B) $110,000
C) $105,000
D) $ 98,200

Accepted Answer

Let's use the formula:

Commission = Sales Price x Rate

Where the commission is $6,300 and the rate is 6% or 0.06:

$6,300 = Sales Price x 0.06

To find the sales price, we can rearrange the formula:

Sales Price = Commission / Rate

Sales Price = $6,300 / 0.06

Sales Price = $105,000

Therefore, the sales price of the lot was $105,000, which is option C.

Question 11

California became a state in:
A) 1848.
B) 1849.
C) 1850.
D) 1851.

Accepted Answer

The answer of California became a state in:
A) 1848.
B) 1849.
C)...

Question 12

Real property can be most completely defined as:
A) land, buildings
B) land, fixtures, minerals
C) land, items affixed to land, immovable by law
D) land, affixed to land, appurtenances, immovable by law

Accepted Answer

Choice D includes all elements that make up real property - land, things affixed to land (fixtures), appurtenances (rights and privileges that come with land, such as easements), and immovable by law (meaning they cannot be separated from the land).

Question 13

Which government program requires the least down payment for the purchase of an owner-occupied $400,000 condo?
A) FHA 203b program
B) FHA 245 program
C) VA
D) regular CAL-VET Loan

Accepted Answer

The VA program does not require any down payment for qualified veterans or their surviving spouses buying a home up to $484,350 in most locations. Therefore, it would require the least down payment for the purchase of a $400,000 condo. The FHA 203b program requires a 3.5% down payment ($14,000) and the FHA 245 program requires a 2.25% down payment ($9,000). The regular CAL-VET Loan typically requires at least a 5% down payment ($20,000) for a $400,000 purchase.

Question 14

A residential tenant may expect the landlord to make necessary repairs to keep the dwelling habitable. If the landlord does not, the tenant may make needed repairs and offset the rent up to:
A) a $700 maximum
B) one month's rent
C) reasonable cost
D) $1,000 maximum

Accepted Answer

One month's rent is a common legal limit for the amount a tenant can spend on repairs to offset against their rent if the landlord fails to make necessary repairs to keep the dwelling habitable. This is based on the principle of "repair and deduct," which allows tenants to ensure their living conditions remain safe and healthy without exceeding a reasonable financial limit.

Question 15

An easement is defined as:
A) a general lien
B) an encumbrance
C) a specific lien
D) a restriction

Accepted Answer

An easement is an encumbrance on a property that gives someone else the right to use the property for a specific purpose, such as an access easement for a neighbor to cross over the property. It is not a lien or a restriction.

Question 16

The contract where a principal appoints a real estate agent is called:
A) contract of sale
B) deposit receipt
C) listing agreement
D) disclosure statement

Accepted Answer

The contract where a principal appoints a real estate agent is called a listing agreement. A contract of sale is an agreement between a buyer and a seller for the purchase of real estate, while a deposit receipt is a receipt for the deposit made by the buyer as a down payment on a property. A disclosure statement is a document that provides information about the condition of a property being sold.

Question 17

The foundation of a standard built home sits on the:
A) mudsill
B) collar beam
C) footing
D) stud

Accepted Answer

The foundation of a standard built home sits on the footing. The footing is the base that the foundation walls are built upon and is usually made of concrete or masonry. The mudsill is a framing element that sits on top of the foundation walls, the collar beam is a horizontal beam that connects two rafters in the roof, and the stud is a vertical framing element that supports the walls. None of these are the foundation itself.

Question 18

California became a state in:
A) 1850.
B) 1849.
C) 1848.
D) 1851.

Accepted Answer

California became a state on September 9, 1850, as part of the Compromise of 1850.

Question 19

Which of the following must have an escrow license to handle the closing of the sale?
A) title insurance company
B) independent escrow company
C) real estate broker who is the agent of the buyer or seller
D) all of the above must have an escrow license to handle the closing

Accepted Answer

Only independent escrow companies are required by law to have an escrow license to handle the closing of a sale. Title insurance companies and real estate brokers who act as agents for buyers or sellers may also handle escrow services, but they are not required to have a separate license for it.

Question 20

A due-on-sale clause in a real estate promissory note is correctly called:
A) a subordination clause
B) an alienation clause
C) an acceleration clause
D) a prepayment penalty

Accepted Answer

A due-on-sale clause, also known as an alienation clause, is a provision in a promissory note that allows the lender to demand the balance of the loan be paid in full if the property securing the loan is sold or transferred to another party. It is designed to protect the lender's interest in the property and the loan.

Quiz 1: Introduction to Real Estate

The fine for an unlicensed individual who receives an illegal commission is:

A real estate broker is most frequently the agent of the:

The state law that prevents agents from discriminating when providing real estate services to the public:

An appraisal is defined as:

Airspace directly above a parcel of land is considered to be:

Under the treaty of Guadalupe Hidalgo in 1848, the United States acquired the territory of California from:

Under Proposition 13, the maximum real property tax cannot exceed what percent of full cash value (before adjustments for inflation and voter approved bonds) ?

The definition of land includes all but one of the following:

Property owners whose land borders a river have rights to a reasonable use of the water, known as:

A real estate broker received a commission of $6,300, which represented 6% of the sales price of the lot. What was the sales price of the lot?

California became a state in:

Real property can be most completely defined as:

Which government program requires the least down payment for the purchase of an owner-occupied $400,000 condo?

A residential tenant may expect the landlord to make necessary repairs to keep the dwelling habitable. If the landlord does not, the tenant may make needed repairs and offset the rent up to:

An easement is defined as:

The contract where a principal appoints a real estate agent is called:

The foundation of a standard built home sits on the:

California became a state in:

Which of the following must have an escrow license to handle the closing of the sale?

A due-on-sale clause in a real estate promissory note is correctly called: