PRACTICE EXAM 2 TO VIEW YOUR ANSWER DOUBLE CLICK ON A,B,C,OR D 1 Two friends hold titel as joint tenants.

One borrowed one borrowed money and executed a deed if trust againt the home. In terms of affecting title this action could: Destroy one of the four unities of joint tenants Place the beneficiary in a precarious position should the borrower die before the debt is paid Invalidate the note since a lien can be attach only to the undivided interest of all joint tenants Create a security interest in all other real property in which the borrower may have an interest Joint tenant estate held by two joint tenants is severed and ended by the following EXCEPT: By the execution of a mortgage or deed of trust by one joint tenant creating a lien against his interest A foreclosure by one of the joint tenants One of the joint tenants transfers his interest to a third party One of the joint tenants sells his interest A man own six separate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he will obtain will probably be: A mortgage A trust deed A blanket mortgage A security mortgage All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant: Sells his or her share Transfers his or her share Mortgages his or her share Deeds his or her share to a co-owner A conflict in a contract between buyer and seller and instructions to return the deposit from the trust account, the broker unable to resolve the problem refers it to a third person by: An interpleader action A court action A Judicial action An attorney A contingency in a contract may be created by: Nature of the contingency Duration of the contingency Method how to remove the contingency All of the above Under the real estate law if an agent is found guilty of discrimination the real estate commissioner will: Revoke or suspend the agents license Cancel the agents license for 150 days Suspend the agents license for 3 months Suspend the agents license for 1 year Which of the following represents misrepresentation: Material to the contrary Information known by the broker that is false False information to bound a buyer to a contract All of the above Broker Hadley took a listing from Watanabe for 30 days. After the 27th day Hadley was not successful selling the property so he decided to buy the property himself. Broker Hadley must present to the seller: His interest on the property The net amount to the seller Commission disclosure All of the above What is a deed: To transfer title To be acknowledged The evidence in change of title or an interest To be recorded in the county recorders office to be valid Before his death Westland had several listings now Westlands daughter is taking over the business in regards to listing she must: Automatically cancelled and she needs to re-list the properties from the clients Automatically cancelled May be cancel only in writing and approved by the daughter Must be cancel within 24 hours or the listings are automatically transfer to the daughter A Hispanic buyer wants to be shown property in certain neighborhoods. The real estate agent should: Show him properties as any other client Show him properties only in areas where he wants to look Provide information about the ethnicity of the neighborhood Show properties in areas where Hispanic population is greater An example of police power is: Zoning Condemnation Eminent domain

A WRONG B CORRECT C WRONG D WRONG 2 A B C D 3 CORRECT WRONG WRONG WRONG

A B C D 4 A B C D 5

WRONG WRONG CORRECT WRONG

WRONG WRONG CORRECT WRONG

A B C D 6 A B C D 7 A B C D 8 A B C D 9

CORRECT WRONG WRONG WRONG

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

WRONG WRONG WRONG CORRECT

A B C D 10 A B C D 11 A B C D 12 A B C D 13 A B C

WRONG WRONG WRONG CORRECT

WRONG WRONG CORRECT WRONG

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG

D 14 A B C D 15

WRONG

Inverse condemnation Which of the following may be attach to the land Trees Buildings Water rights All of the above The agent who will earn a commission is the one that Signed the purchase agreement Communicated the offer and the acceptance from seller to buyer Communicated the offer to the seller Accepted a deposit first In a new developed subdivision, The Real Estate Commissioner was informed of misrepresentations made by the developer. The commissioner may stop the sale of more lots by: Revoking the final public report Filing an accusation Suspending the developers contractors license Issuing a desist and refrain order Which of the following must be given to a buyer of a condominium unit: Copy of the CC and Rs Copy of the by laws Copy of the most recent financial statement of the association All of the above The placement of a building on the land is known as: Orientation Topography Elevation Foundation plan A binding contract represents: An offer and delivery An offer and acceptance Acceptance from buyer Acceptance from seller to sellers agent CPI refers to: Listing agreements Purchase agreements Manufacturing Commercial leases Who pays the service charge under a FHA loan: The seller The buyer Both buyer and seller The lender When comparing FHA and conventional loans. Conventional loans offer: Higher loan to value ratios lower payments lower interest rates Lower loan to value ratios A commission to an agent may be in the form of: A note A trust deed Cash All of the above A home sold for $178,000 and leased at $1200. If another home is leased at $1,300 the value is: 193000 136000 200000 190000 $178,000 / $1,200= 148.33 X $1,300= The right of an interest in real property is represented by: Quite title action A trust deed A quitclaim deed Mortgage A brother and sister own property as joint tenants. The brother died and left un- secure debts and died penniless the title to the sister is now. The sister owns title as tenants in common Free and clear of debts from the brother The sister has a lien on the property from the debts from the brother The sister has to pay only half of the brothers debts Which of the following best refers to sellers market: Causes prices to drop as demand decreased and supply increases High prices of a product with demand and supply lags Demand and supply of a product with a decrease of buyers Decrease on land and construction A real estate broker discovers that one of the agents was receiving referral fees from a lender that they do business with. The broker fired the agent and

WRONG WRONG WRONG CORRECT

A WRONG B CORRECT C WRONG D WRONG 16

A B C D 17 A B C D 18 A B C D 19

WRONG WRONG WRONG CORRECT

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

A WRONG B CORRECT C WRONG D WRONG 20 A B C D 21 A B C D 22 A B C D 23 A B C D 24 A B C D CORRECT WRONG WRONG WRONG WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT CORRECT WRONG WRONG WRONG WRONG WRONG WRONG CORRECT

148.33 192833

25 A B C D 26 A WRONG B CORRECT C WRONG D WRONG 27 A WRONG B CORRECT C WRONG D WRONG 28 CORRECT WRONG WRONG WRONG

A B C D 29 A B C D 30 A B C D 31 A B C D 32 A B C D 33 A B C D 34

CORRECT WRONG WRONG WRONG

warned the other agents not to receive any referrals according to the real estate law: Both broker and sales person may be subject for prosecution Only the agent will prosecuted by the department of real estate Only the broker will be prosecuted by the department of real estate The brokers conduct is acceptable and he may receive any referral fees Buyer and seller decided to cancel a transaction. The seller instructed the broker to return the buyers deposit. The broker should. Return the deposit and sue buyer for his commission Return only half of the deposit to the buyer Return the deposit as instructed The agent may collect his commission in court A document use to represent another person: A power of attorney A grant deed A reconveyance deed Attorney in fact

WRONG WRONG CORRECT WRONG

WRONG WRONG WRONG CORRECT

In regards to appraisal all of the following are true except: WRONG The cost approach is used in new construction WRONG The cost approach is used for special properties WRONG The cost approach is used for commercial building CORRECT The cost approach sets thed lower limits of value Which of the following policies covers all risks: A Homeowners insurance A Extended policy A Standard policy No policy covers everything When appraising an old residential property in regards to periodic tenancy: Compare to rentals and comparables in the area Is determine by square footage According to the type of neighborhood Is obtained from the assessors value Bonds, deed of trust and notes held by a third party is known as: Beneficiary Lender Escrow Trustee A contract replace entirely by a new one is known as: An Amendment A Replacement A Novation A Renewal Fuentes purchased Browns house and agreed to assume the existing mortgage: Which of the following is true: Brown is relieved from future liabilities Brown is liable for the loan Fuentes is not primarily responsible for the loan Brown and Fuentes both are liable

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

A WRONG B WRONG C CORRECT D WRONG 35 A B C D 36 A B C D 37 A B C D 38 A B C D 39 A B C D 40 A B C D 41 A B C D 42 A B C D WRONG WRONG CORRECT WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG WRONG CORRECT WRONG

Which of the following will determine if an item is a fixture Except: WRONG Intention WRONG Agreement CORRECT Cost WRONG Relationship Which of the following will determine if an item is a fixture except: WRONG Intention WRONG Agreement CORRECT Time WRONG Relationship A commission on the sale of a property through probate will be determine by: The court ordered The real estate commissioner The Board of directors The administrator

A voidable contract is: WRONG Valid only when is signed, but for some reason it cannot prove by either party WRONG Contains all legal requirements but may be cancel by anyone CORRECT Is valid and enforceable on its face, but it may be rejected by one of the parties WRONG Is a contract with no legal effect When comparing real property to personal property: Inmovable by law Movable Personal exclusively Transferable by a bill of sale A standard policy of title insurance will cover against: Property lines Zoning Legal incompetence of the grantor Property survey

43 A B C D 44

Which of the following is not a lien: WRONG Taxes WRONG Trust deed WRONG Judgment CORRECT Restrictions Under the income tax law a sales person is: Employee of the broker he/she is permitted to work for Self employed contractor Employee of the broker and the broker must pay for medical insurance Self employed and employee of the broker As Is is permitted when: A buyer is fully informed about known defects before bound to contract Only if buyer ask for a transfer disclosure The property is financed through a private investor Only if the property needs major repairs An appraisal is least concerned with general state of the economy in appraising Shopping center Electronic assembly Medical dental building Industrial park The maximum amount that may be recovered from the Recovery Trust Fund is: 20000 10000 100000 50000 A blind ad it doesnt identify the: Broker Salesperson Seller Buyer A property under default possession of the property is held by: Trustee Trustor Beneficiary Mortgagee The earthquake hazard report must be issue to properties in: All California All counties All cities Only to specific types of structures on a earthquake zones The maximum value of a property do to architectural design and stability of neighborhood: Progression- regression Conformity Stability None of the above A contractor was installing a new hardwood floor and was unpaid and place a lien on the property. The lien becomes effective on: After the installation of the hardwood floor Commencement of the installation of the hardwood floor The date recorded at recorders office 3 days after the installation of the hardwood floor A master plan shows: Streets and freeways Residential and commercial zoning Safety All of the above The ordinary repairs on a property are known as: Repairs Rehabilitation Cosmetic maintenance Wear and tear The Standard policy of title insurance consist of three processes. Which of the following is not one the three processes: Determination of correct boundary lines and property survey Amount of insurance required Title investigation Protection of title losses When a property is being sold through an option the broker must inform to the client that he is acting as a: A principal An agent A broker A seller Capitalization is a process use by real estate appraiser to: Converts income into value Finds the gross income of a property Establishes the cost of capital

A WRONG B CORRECT C WRONG D WRONG 45 A B C D 46 A B C D 47 A B C D 48 A B C D 49 A WRONG B CORRECT C WRONG D WRONG 50 A WRONG B CORRECT C WRONG D WRONG 51 A B C D 52 A WRONG B CORRECT C WRONG D WRONG 53 A B C D 54 A B C D 55 A B C D 56 A B C D 57 A B C CORRECT WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG CORRECT WRONG CORRECT WRONG WRONG CORRECT WRONG WRONG WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG CORRECT WRONG WRONG WRONG

D 58

WRONG

Depreciation value Conditions affecting interest rates and the availability of loan funds vary over time. When would it be advantageous for a lender to waive a prepayment penalty clause contained in a promissory note: When loans are available with low interest rates In a deflationary economy In a tight money market where there is a lack of funds available for real estate loans When the FED lowers his reserve requirements When a broker is representing both buyer and seller on an exchange real estate transaction and the broker doesnt disclose his dual agency to the parties the remedy by the buyer and seller are: No commission Cancel the transaction Sue for criminal and civil action All of the above When can an agent refuse to transmit an offer: When the seller has accepted a back up offer When the agent is acting as a gratuitous agent To anyone at any time When the agent is acting on express instructions from the principal Which of the following is not a component when operating net income: Personal income tax Cash flow Operation expenses Ordinary income Broker Taylor listed a property for $55,000 with instruction from the seller that the minimum down payment was not to exceed 23%. The broker then presented an offer with all cash and the seller rejected the offer. What should the broker do: The seller can turn down the offer without liability, and pay no commission because the offer did not meet the requirements in the listing The broker is entitle to a full commission The broker is entitle to a commission based on the appraised value The broker is entitle only to a 23% of the appraised value A broker has a listing and one of his sales persons sells the listing. This is known as: Dual agency Single agency Single agency for the buyer No agency Deed covenants that limited the conveyance of properties to persons of the minority group, these restrictions: Has no effect on the conveyance covenant is unenforceable Enforceable if buyers prefer to have them Valid only buyer and seller may cancel them May be cancel by escrow If the comparable properties has an item that is not present on the subject property: Add from the subject property to the comparables Subtract from the comparable properties to the subject property Add from the comparables to the subject property Add to the basis of the subject property A clause on a trust deed that agrees to be on a lesser position is known as: Acceleration clause Subordination clause Or more clause Agreement clause A document to transfer property from trustee to trustor is: A grant deed A trust deed A reconveyance deed A partial reconveyance deed When an agent is a subagent of the selling broker he is working for: The seller The buyer The lender The beneficiary The path way of an airport is over Omedos home and loss value do to the constant noise of the airport . Omedos legal proceedings against government authorities to purchase his property is called: Just compensation Emminent domain Condemnation Inverse condemnation The city made a change in zoning that is not permitted in the construction industry. This is an example of: Variance Building code Restrictions Zoning changes

A B C D 59

WRONG WRONG CORRECT WRONG

A B C D 60 A B C D 61 A B C D 62

WRONG WRONG WRONG CORRECT

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

A B C D 63 A B C D 64 A B C D 65

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG WRONG

A WRONG B CORRECT C WRONG D WRONG 66 A WRONG B CORRECT C WRONG D WRONG 67 A B C D 68 A B C D 69 CORRECT WRONG WRONG WRONG WRONG WRONG CORRECT WRONG

A B C D 70 A B C D

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

71 A B C D 72 A B C D 73 A B C D 74 A B C D 75 A B C D 76 A WRONG B CORRECT C WRONG D WRONG 77 A B C D 78 A B C D 79 CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG WRONG CORRECT WRONG

The activity of an unlicensed person working for a real estate office according to the department of real estate the unlicensed person: The agent is self-employ The agent is an employee of the broker According to the real estate law it must be under a license supervision The broker has no duty to supervise the agent An appraisal when appraisal a commercial building for $550,000 it must have: General appraisal license Certify license Commercial license Appraisal license According to the department of real estate if an agent wants to advertise in the World Wide Web. Only provided by qualified real estate licensees Only to real estate brokers Anyone appointed by the broker Anyone appointed by the real estate commissioner If the seller presented the hazard disclosure statement to the buyer which of the following is true: The seller is not obligated to disclose anything else other than the report No other disclosure is needed The buyer must agree to the content disclosed in the hazard disclosure statement The seller and sellers agent are obligated to disclose any material hazard for which they are aware Which of the following is true in regards hazard safety disclosure statement and transfer disclosure statement: The hazard safety disclosure statement and transfer disclosures are need only if buyer is interested. The hazard safety disclosure statement is the complete hazard disclosure If the transfer disclosure statement is presented no other disclosures are need The seller and the Licensee must check the public posted maps to discover and disclose existing hazard information if it is available, The transfer disclosure statement is limited to information that the owner knows. Which of the following is a violation of the federal housing law according to periodic tenancy: Requiring first month rent in advance Acquiring co-signers for unmarried persons only Acquiring good credit rating Acquiring references from previous landlords Which of the following reports is the most complete Narrative report Form report Letter report Neighborhood data Deed restrictions may be created by: Grantor Zoning Written agreement Deed A tenant may be justified in abandoning a leased property if the landlord has constructively evicted the tenant. Which of the following acts would be an example of constructive eviction: The landlord has shown the property to a new prospective tenant and has entered into lease negotiations with the new tenant. The landlord has failed to make necessary repairs to the premises The landlord has made extensive and unwarranted alterations to the premises, making it no longer usable for its original purpose All of the above Nominal rate or normal rate means The rate stated in the note The rate named in the good faith estimate The rate printed in the purchase agreement The rate set by escrow instructions Who can order the pest control report: if sold through the owner: Escrow The lender The seller All of the above Roger sold his home he paid $140 for escrow services 6% commission the seller received $13,583. the sales price is: 12770 14440 14540 14600 $13,583 + $140 = $13,723 $13,723 / .94 = $14,598 An agency relationship is represented by: Oral agreement written agreement Assignment Commission agreement A dual agency is permitted when: Buyer and Seller agreed to it Buyer agrees to it Seller agrees to it By lenders approval

A B C D 80 A B C D 81 A B C D 82 A B C D

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

WRONG WRONG WRONG CORRECT

WRONG WRONG WRONG CORRECT

83 A WRONG B CORRECT C WRONG D WRONG 84 A B C D CORRECT WRONG WRONG WRONG

85 A B C D 86 A B C D 87 A B C D 88 A B C D 89 A B C D 90 A B C D 91 A B C D 92 A WRONG B CORRECT C WRONG D WRONG 93 A B C D 94 A B C D 95 A B C D 96 A B C D 97 A B C D 98 A B C D 99 CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG WRONG WRONG CORRECT CORRECT WRONG WRONG WRONG WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG CORRECT WRONG WRONG

A written contract between the broker and salesperson has to be in writing according to: The National Association of Realtors The rules and regulations of the real estate commissioner Only if necessary The multiple listing service Riparian rights refers to owners that borders: River/streams Bays and seas Subterranean cavities All of the above A pest control company according to the real estate rules and regulation must provide a copy to: Copy to the owner A copy to the seller Copy to the escrow company Copy to the lender Once a binding contract has been created between buyer and seller the buyer will receive: Equitable title Legal title Certify title Pending title The date in the purchase contract is the date: The buyer signed The contract was prepared The agent received the deposit The final acceptance was communicated to the offeror The construction industry is regulated by: State housing law Local building codes Contractors license law All of the above If a lender decides to take a deed in lieu of foreclosure the lender: Must receive an approval of sale from the trustor Must get a deficiency judgment in court Will own the property free and clear Assumes any junior liens The market data approach is: Based on the assessed value Inferred from comparable properties Based on the cost of material to build the same property Based on the annual net income A listing must contain all of the following except Compensation Lawful object Unspecified consideration Being notarized by a notary Under the truth and lending law disclosure is presented by the: Lender Beneficiary Borrower Seller The Federal Fair Housing Law declares: Eliminating prejudice throughout the United States. Building houses for minority groups throughout the United States. Guaranteeing separate but equal housing in all of the states. Providing Fair Housing for persons throughout the United States. Buyer and seller entered in a contract and the buyer ask the broker to move into the property before closing escrow the broker must: Obtain an interim-occupancy agreement Give the buyer a temporary lease The agent may give the buyer oral permission Obtain written consent from the escrow company Davis sold his friends home in Yolo county. Davis has no license and received a commission . Who will prosecute Davis: The District attorney The real estate commission The attorney general The board of supervisors John entered into a right to sell listing with Broker Otis . John gave Otis $100 to advertise the property. The payment of the $100 to Otis Must: Must be deposited in the trust account and used for the purpose intended Be applied towards his commission Be deposit in the trust account if it is less than $200 None of the above

A broker must have in writing any employment agreement with which of the following:

A B C D 100 A B C D 101 A B C D 102 A B C D 103 A B C D 104 A B C D 105 A B C D 106 A B C D 107 A B C D 108

WRONG WRONG WRONG CORRECT

Secretaries Janitorial employees Real estate staff All of the above

Property may be substituted by: WRONG Design WRONG Earnings WRONG Use CORRECT Any of the above A exclusive agency listing may be for a period of: 180 days 60 days 6 months Any time agreed between the agent and seller An easement attach to the land is known as: Gross easement Prescriptive easement Appurtenant easement Ingross easement Cost approach is used in: New buildings Old construction Land None of the above All of the following are necessary for a valid contract except: Meeting of the minds Lawful object Consideration Payment of money or performance An appraiser will deduct the vacancy factor of an apartment to arrive at: Effective gross income Net income Gross income Appreciation An agent is authorized to accept a deposit on behalf of the seller this clause found in which of the following contracts: Listing agreement Purchase agreement Escrow instructions Loan documents A lessee may abandon the property by all of the following except: When property becomes dilapidated due to tenants negligence Condemnation by eminent domain Failure of the landlord to make repairs Eviction notice Broker Marshall sold to Sanders a property as is. Marshall and seller knew about problems with the plumbing. Sanders, after close of escrow discovered the problems with the plumbing. If Sanders wants to seek legal proceedings he will be: Successful because the duty to disclose material fact cannot be avoided by AS IS Not successful because the property was sold as is The buyers responsibility is to hire a professional home inspector As Is provision the buyer must accept the property on its present condition The authority that prohibits an agent from doing an act of fraud is found in: Business and professions code Listing agreement Real estate office conduct Real estate purchase contract The legal process to evict a defaulting tenant is called: 3 day notice Unlawful detainer action 30 day notice Surrender Emminent Domain may be exercised by: Cities Public utilities Public education Any of the above What state agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms: Department of Real Estate Department of Corporations Department of Housing and Development Structural Pest Control Board A board foot is: Six inches by twelve inches by three inches Six inches by six inches by six inches Twelve inches by six inches by four inches

WRONG WRONG WRONG CORRECT

WRONG WRONG CORRECT WRONG

CORRECT WRONG WRONG WRONG

WRONG WRONG WRONG CORRECT

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG WRONG

A B C D 109 A B C D 110

CORRECT WRONG WRONG WRONG

CORRECT WRONG WRONG WRONG

A WRONG B CORRECT C WRONG D WRONG 111 A B C D 112 A B C D 113 A B C WRONG WRONG WRONG WRONG WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT

D 114

CORRECT

Six inches by twelve inches by two inches In order for a broker to be able legally to claim a commission on an exclusive right to sell listing, which of the following termination dates would be appropriate: Until either principal or agent gives proper notice of rescission. 120 days after completion of the improvements. For 180 days from the date the listing agreement is signed by the contracting parties. For 90 days after a conditional commitment is issued by the FHA. Amezcua was asked to disclose her ethnicity in the loan application: Sue the real estate broker Refuse to disclose the portion of the loan application Must fill in the entire application including the ethnicity disclosure box Do nothing If the buyer and seller agree to prorate property taxes as of the date of the close of escrow, and the escrow closes May 1, and the current annual tax bill of $1,380 has been paid, the escrow agent would appropriately debit the buyer for: 130 230 115 680 $1380 / 12 115 X 2= When a home is financed under the State of California Veterans Farm and Home Purchase Plan, which of the following documents is used: A real property purchase contract Listing agreement A grant deed A mortgage Which of the following is a fiduciary relationship: Buyer to seller Landlord to tenant Sellers to appraisal Agent to principle The earthquake booklet was not necessary if property was built before: 1957 1960 1975 1978 Under which of the following listings can the seller refuse to pay a commission even if the agent is the procuring cause: Open listing Exclusive right to sell listing Exclusive agency listing Net listing Functional Utility is: Marketability location Layout Desire

A B C D 115

WRONG WRONG CORRECT WRONG

A WRONG B CORRECT C WRONG D WRONG 116

A WRONG B CORRECT C WRONG D WRONG

115 230

117 A B C D 118 A B C D 119 A B C D 120 A B C D 121 A B C D 122 A B C D 123 A B C D 124 WRONG WRONG CORRECT WRONG WRONG WRONG CORRECT WRONG WRONG WRONG WRONG CORRECT WRONG WRONG CORRECT WRONG WRONG WRONG WRONG CORRECT CORRECT WRONG WRONG WRONG

In the event a home was constructed in a high quality home neighborhood costing $190,000 in a $100,000 home neighborhood. This is an example of: WRONG Progression WRONG Social obsolescence WRONG Functional obsolescence CORRECT Economic Obsolescence Which of the following is not a valid reason for the seller to terminate an exclusive listing: The brokers license was revoked The seller declared bankruptcy one of the seller's relatives gets a real estate license and the seller wants her to have the listing The broker was declared mentally incompetent after signing the listing Hanson wants to buy a property and talks to Broker Cohen about that particular property that he wants to buy. Broker Cohen contacts the property owner and tell him that Hanson wants to buy his property. The seller tells the broker that the property is not for sale. Three months later Hanson found out that the seller entered into a purchasing contract with Hanson. Under this circumstances broker Cohen can. Sue for his commission Sue for his time and labor Get pay a finders fee Entitled to nothing In applying the principles of the Easton vs. Strassburger case, real estate licensees are obligated to give prospective buyers of certain real estate: A list of obvious defects and functional obsolescence. A list of known defects and those that should be known. A strong recommendation that the buyer obtain a home inspection. A disclosure forcing the buyer to take the property as is. Mr. Arturian granted a property to Macy with a condition not to drink alcohol beverages. Macys ownership is now describe as:

A B C D 125

WRONG WRONG WRONG CORRECT

A WRONG B CORRECT C WRONG D WRONG 126

A B C D 127

CORRECT WRONG WRONG WRONG

Fee simple deafeasible Conditional Agreement Fee simple defeasible The maximum fine that may be imposed by the Real Estate Commissioner against a broker who pays an unlicensed person for soliciting borrowers or negotiating real estate loans is: 1000 5000 10000 50000 In the event a person is discriminated against in violation of Title VIII of the Civil Rights Acts of 1968, that person may seek relief by: Filing a Civil Action in a State Court. Filing a Complaint with the Secretary of HUD. Filing a Civil Action in a Federal Court. Any of the above. The police power to divide the land into districts is accomplished by: Eminent domain Condemnation Zoning Down zoning

A B C D 128 A B C D 129 A B C D

WRONG WRONG CORRECT WRONG

WRONG WRONG WRONG CORRECT

WRONG WRONG CORRECT WRONG

130 A B C D 131 A B C D 132 A B C D 133 WRONG WRONG WRONG CORRECT WRONG WRONG CORRECT WRONG WRONG WRONG WRONG CORRECT

Which kind of relationship does the salesperson not have: Attorney-in-fact Broker-client Fiduciary Attorney-client Which of the following is a commercial acre: Any parcel of 43,560 square feet. An acre located outside of an R zoning. An acre after deductions for streets, sidewalks, curbs and alleys. An acre zoned for commercial purposes. The purpose of the assessment roll, as compiled by the assessors office is: Determination of the actual tax to be paid by the property owner. The equalization of the assessments among the various properties. The setting of the tax rates. The establishment of the tax base. Buyer makes offer to buy a home including all the appliances. Seller is willing to accept offer, but will not include all of the appliances. Agent crossed out buyers requirement for all appliances without the knowledge or consent of the buyer. Seller then accepted the modified offer. Agents action was: Unethical, but not illegal Legal, if seller was aware of agents actions Common practice by most real estate agents Illegal

A B C D 134 A B C D 135

WRONG WRONG WRONG CORRECT

An estate at sufferance is: CORRECT Possession of a lease after expiration of the lease term WRONG Possession of a lease after expiration of the lease term sellers approval WRONG Possession of a lease during the lease WRONG Eviction of a lease for non-payment of rent Jack leases a single family dwelling property from Mr. Michaels. After the lease agreement is signed and Jack moves in, Mr. Michaels insists that Jack sign a contract agreeing to make substantial capital improvements to the property. This requirement by the lessor would render the lease contract: Valid Voidable by the lessor Voidable by the lessee Void Jackson leased his home to Sullivan with a verbal agreement to sell the property to Sullivan. Jackson knows that Sullivan has been making significant improvements to the property in reliance on the verbal agreement. Jackson now declines to sell the property to Sullivan. Which of the following best describes the rights of the parties: Jackson must sell because he made an agreement Sullivan has no right to enforce the verbal agreement Jackson must sell because the doctrine of estoppel will apply in this case Jackson does not have to sell because of the Statute of Frauds Banks loan 80% of appraised value. If the Interest rate is 11%, and the first year interest was $7,040 , what was the appraised value. 64000 76000 80000 85000 $7,040/11%= $64,000/80%=

A B C D 136

WRONG WRONG CORRECT WRONG

A B C D 137 A B C D

WRONG WRONG CORRECT WRONG

WRONG WRONG CORRECT WRONG

$64,000 LOAN AMOUNT $80,000 APPRAISAL VALUE

138

The SW of the NW of Sec. 5 is valued at $800 per acre. The S of the NE of Sec. 8 is valued at $500 per acre, what is the difference in value between the two parcels:

A WRONG B CORRECT C WRONG D WRONG 139 A B C D 140 A WRONG B CORRECT C WRONG D WRONG 141 WRONG WRONG CORRECT WRONG

6000 8000 10000 12000

S 1/2 FO THE NE 1/4 OF SECTION 8= 80 ACRES X 5O0 = $40,000 SW 1/4 OF THE NW 1/4 OF SECTION 5= 40 ACRES X $800= $32,000 $40,000-$32,000= 8000

The original amount of a straight note that calls for interest payments of $60 per month based on a rate of 8% per annum is: 4000 7500 $60,000x12= 9000 $720/8%= 12000 Wong bought a vacant lot for $17,424, wants to sell the lot and make a 40% profit after paying a 10% commission. What must he sell lot for: 24393 27104 28395 $17,424 X 1.40 = 31402 $24,393/.90= An investor purchased a trust deed and note at a 20% discount. This was a one year fully amortized note with a face amount of $4,500 with payments of $393 per month including 9% interest. If she holds the note for the full year, the yield on her original investment would be. 0.29 4500 X 20%= 0.31 $393X12= 0.24 4716 $4,500= 0.36 $900 + $216= $1,116/$3,600= On august 5 a borrower gave broker Gutierrez a personal check for $1,000. made payable to the seller. The buyer instructed broker Gutierrez that the check should th be held uncashed until August 30 . Broker Gutierrez must: Not accept the deposit Return the deposit to the buyer Accept the deposit and instruct the seller that the check has to be held until august 30th. Not accept personal checks

$720 PER YEAR 9000

24393 27104

A WRONG B CORRECT C WRONG D WRONG

900 4716 216 1116 0.31

142

A B C D 143 A B C D

WRONG WRONG CORRECT WRONG

CORRECT WRONG WRONG WRONG

Which of the following factors would tend to make real estate values unstable in a residential neighborhood: An increasing number of average priced homes are being constructed in a neighborhood with a number of high priced homes. Local zoning restrictions, that would limit or prohibit the construction of multiple family units. The residents of a neighborhood are of the same ethnic background and religious beliefs. The subdivider demanding each borrower to purchase lots with a minimum number of square feet and value.

144 A B C D 145 CORRECT WRONG WRONG WRONG

Misuse of the term Realtor is: A violation of the California Real Estate Law. A felony offense. Unethical but not illegal. Only unethical in California. When the Real Estate Commissioner wishes to proceed against a licensee for a suspected violation for the Real Estate Law the Commissioner must first serve the real estate licensee with: A complaint. A demurrer. A statement of issues. An accusation. Federal law requires sellers, landlords and remodels to disclose known information on lead-based paint. It is assumed that lead-based paint was last used on homes built before: 1952 1967 1978 1989 when applying the capitalization of net income approach to establish the value of an income property, which of the following would not be included as an expense: Cost of capital Utilities Property management Reserves for replacement of improvements. Which of the following is not one of the survey systems in California: San Bernardino Willamette Humboldt Mt. Diablo John owns a lot that measures 150 feet deep by 50 feet wide. The zoning laws require a 20 foot front setback and 4 foot setback on both sides and at the back. The available area is: 5,292 square feet 5,560 square feet 6,556 square feet 6,800 square feet 150-24 = 50- 8 =

A B C D 146

WRONG WRONG WRONG CORRECT

A B C D 147

WRONG WRONG CORRECT WRONG

A CORRECT B WRONG C WRONG D WRONG 148 A WRONG B CORRECT C WRONG D WRONG 149

A CORRECT B WRONG C WRONG D WRONG

126 42

42X126=

5292

150 A CORRECT B WRONG C WRONG D WRONG

The broker has an oral listing to sell real property. The broker presented an offer which the seller accepted. The seller then requested the broker to give him the buyers deposit The broker must give the check to the seller The broker must deposit the check in escrow The broker must deposit the check in the trust account Return the deposit to the buyer

ker to give him the buyers deposit check.