Test #1

Recorded  title to a parcel of real property was vested in Johan  Wilson, a single woman.  After her marriage to William Roberts,  she executeda deed to the property only in the name of Johan  Roberts,  a married woman.The discrepancy  in the grantor’s name is:

Which contract would be most difficult for a buyer to obtain financing on?

When a broker runs an ad. The broker must disclose:

Logan sold a home to Hughes,If hughes backs out:

The Federal  Housing Administration (FHA) was created  primarily to provide:

Which of the following loans on a home would probably be made without requiring adown payment from the borrower?

A Cal-Vet who wishes to purchase a home using the Cal-Vet program would send his application to:

The item that would appear on the debit side of a buyer’s closing statement would be?

When dealing with the public, a broker may not:

Which of the following is the reason that a real estate agent must keep his principal informed  of material  facts concerning  a pending real estate transaction?

A buyer relied upon the fraudulent statement of the seller’s agent and was damaged.  The seller was unaware of the agent’s false statement, and he tried to enforce the agreement. The buyer:

Lenders know that the lower the loan-to-value  ratio, the higher the:

An offer to purchase real estate could be terminated in all of the following ways, except:

In which of the following contracts does one of the parties agree not to revoke an offer for a certain period of time?

For Federal  Income Tax purposes,  capital expenditures for improvements are:

A property sold for $150,000 in a county which had established  a documentary transfer tax rate of $.55 for each $500. Of the purchase price only  $125,000 was subject to the tax. Which of the following is nearest to the tax that would have to be paid?

Leland uses an 8% capitalization rate for a 40-unit apartment building that generates $174,000 net income. Which of the following is the most appropriate value of this property?

A broker is negotiating a 25-year commercial lease at a straight  annual rental  of $30,000. The broker is to receive compensation  for negotiating this lease as follows: 7% of the annual  rent for the first year, 5% of the annual  rental  for the next four years, 3% of the annual  rental  for each of the next fifteen years; and 1% of the annual  rental  for every year thereafter during  the term of the lease. By the end of the 19th year,  the broker will have received a total  commission of most nearly:

A salesman was to receive a 45% share of a 6% gross commission. He received $8,100. The property sold for:

Two brokers  agreed to split a 4 ½% commission on a 50-50 basis on the sale of a property for $162,500. The listing salesperson agreed to a 50-50 split with his employing broker:

Buyer Barker paid $4.40 per square  foot to purchase a20,000 square  foot lot. If the parcel is rectangular in shape and200 feet deep, the approximate cost per front foot would be?

A deed:

Of the following types of deeds, which one would contain no warranties, expressed or implied?

An easement could be created  for what length of time?

Land that is subject to an easement is said to be:

provisions of the Subdivision Map Act are enforced by the:

Walker hired a construction company to install a swimming pool on their residential premises. In the event the construction company was unpaid and it was necessary for them to file a lien for payment of the contract, the encumbrance created  would be?

If no notice of non completion is recorded on an improvement project anyone can record  a mechanics lien within:

When comparing  condominiums  and rented apartments, which of the following is true?

In order  to operate a competitive, yet profitable business, a real estate broker needs to be concerned with “desk cost.” Which of the following most nearly represents the correct way to calculate desk cost?

Local government  laws for the regulation and control of land use includes which of the following?

Broker Hudson has had a house listed for sale for nine months without selling it.  He knows that the building needs major  structural repairs, and he has listed it at 10% above its fair market value.  He runs an advertisement in a newspaper  that says, "Three bedroom,  Victorian. You won’t believe the price! Move right in.  Hudson – XXX-XXXX." This advertisement is bad because?

A high price high quality home surrounded by lower price lower quality properties will suffer loss in value do to:

Which of the following is an acceptable  response to  sellers who have indicated  that their home is not to be shown to prospects  who are members  of the ethnic minority group.  The appropriate response would be?

Which of the following statements  is most nearly true concerning  the activities of mortgage  companies?

The mortgage  insurance on a FHA loan:

A real estate salesman went into a neighborhood to obtain listingsof residential  properties. He made representations that because of the entry into the neighborhood of minority groups, property values would be reduced  and  a decline in the quality of schools and an increase the crime rate, which of the following is true?

The purpose  of the Truth-in-Lending Act is to:

Half a mile by half a mile represents how many acres:

George Carson  is selling time-shares inhis Wildacre  subdivision. He mailedadvertisements to 10,000 people,offering them the chance to win a prize, but did not reveal that in order  to be eligible,the person must visit Wildacre  and listen to a sales presentation. All of the prize winners had become ownersin Wildacre.  Is there anything wrongwith this situation:

The appraisal of an income-producing property is made as of a “given date” to indicate:

Morrison  receives a net income of $675 per month at an annual return rate of 7 ½%.  Morrison’s investment  amounted to:

Which of the following is least correct about in-house sales:

The hardest and yet the most important part of the market data method of appraising is:

Harrison and David, both single people, owned a parcel of real property as joint tenants. Harris encumbered his interest  for $10,000,borrowing  the amount to pay medical bills without the knowledge or consent of David. Shortly thereafter, Harrison died, with the debt still unpaid. Which of the following would be true:

When a governmental body takes private real property for necessary public use, certain legal processes must be followed. Such a taking is an exercise of the right of:

A title company could make a title search by searching  the records  of the:

When making a loan, amortization tables are used in order to determine the:

Broker Smith took a listing on commercial acreage and also received the right  to purchase the property within 30 days. On the 28th day of the listing, the broker decided to buy the property. Before buying the property, he must:

A real estate broker presented an offer to a seller which met the terms of the listing. The offer was from a financially-qualified black person. Later,  his salesperson presented the seller an offer at a lower price from white prospects. The seller did not accept either offer, but instead, sold the property to a neighbor through the same salesperson. The neighbor wanted to buy the property so as to prevent  a minority person moving into the neighborhood. Which of the following parties  has not violated the Civil Rights Act of 1968:

Which of the following state agencies is empowered to prevent acts of discrimination In housing accommodations in California because of race, color, sex, national  origin, or ancestry:

Broker Long had a listing to sell Seller Sharp's house. Broker Long received an offer on the house and presented it to Seller Sharp  who hesitated in accepting the offer. The Broker promised  Sharp  to find him another  suitable residence before escrow closed. On the basis of that, the seller accepted the offer. If Broker Long failed to perform during the time period, which of the following is most nearly correct:

Broker Knott's advertised  in the newspaper  that anyone who bought a property listed with the broker would receive a free microwave oven valued at $500. Such action is:

If a broker is an agent of a seller, he owes the buyer:

If two parties want to create an enforceable broker-principal relationship concerning  a right, title, or interest  in real property, the most essential element  would be:

Which of the following rights of ownership in real property do individuals normally  not have:

If a Real Estate Licensee misrepresents a property to a buyer while he is acting as an agent, he may subject himself to:

Broker Hays took a 90-day Exclusive Agency Listing to sell a property that was owned by Wilson.  After 30 days, Hays had not sold the property, so Wilson sent him a certified letter in the mail canceling the Listing. One week later Wilson listed the property with several brokers  using an open listing. Two weeks later, one of the brokers  who had an open listing on the property, and completed a sale to new owners.  In this situation Wilson most likely:

A broker obtained a 6% listing on a selling price of $108,000. The seller incurred additional closing costs of $1,450. Based on the preceding information, the seller’s total cost of sale would amount to:

When depreciation is taken on real property:

Under the Subdivision Map Act, subdivision reports must be filed with the:

A voidable contract remains  binding upon the parties  until the contract is:

Which of the following is the legal method that a city can use to implement
its general plan:

A roof with four slopes is known as:

An appraiser’s narrative appraisal report of a single-family residence probably would contain no reference to:

Which of the following notices could be important to the filing of a mechanic’s lien:

If a real estate licensee was trying to persuade people to list or to sell their property by telling them that members  of another ethnic group were moving into their neighborhood, and it would be to their advantage to sell, it would be an example of all of the following, except:

Which of the following is the most difficult for the mortgage  lender to evaluate:

Interest rates on trust deed loans are primarily determined by which of the following?

The words “time is of the essence” can be found in which of the following contracts?

When an air conditioning  unit has a higher energy efficiency ratio (EER), it means that:

Carter bought 10 acres of vacant land for $20,000 per acre, making a cash down payment of $20,000, and executing a straight  note and a blanket deed of trust  for the balance.   As a part  of the note, the lender agreed that when Carter made an additional payment of $20,000 on the principal,
the trustee  would issue a partial reconveyance for one acre. Carter has paid a total of $40,000 on the note and now owns two acres free and clear. The percentage of his equity in the encumbered property:

A contractor was building a new home. Before completion, he received several offers to rent the property. Just before completion, the city announced that it was taking 10 feet off the front of the property to widen the street to facilitate traffic. There after, offers to rent were for approximately 10% less. This would be an example of which of the following types of depreciation:

Which of the following is considered  real property:

A mortgage  loan may be insured  by:

The right granted  by an owner of real property to a telephone company for the purpose  of erecting poles to support  telephone wires over the property creates:

Which of the following is not a lien:

A broker receives an offer from a buyer for a specific property. The deposit was in the form of a personal promissory note for $2,000 payable to the seller in60 days plus 10% interest.  Which of the following is true:

Jose is an unlicensed employee of a licensed real estate broker. The broker pays him to distribute door hanger  fliers to homes in the immediate neighborhood and to make telephone solicitations for potential buyers and sellers. This activity by Jose is:

A real estate broker sent all of his title business to a Title Co. In appreciation of the business, the title company paid the broker $10 for each transaction. According to the Real Estate Settlement  Procedures Act, “RESPA,” this practice  is:

Who is more likely to earn a sales commission, the broker who:

A broker was able to make a sale to an interested buyer based on false information that the seller had provided to the broker. The broker had acted in good faith and in a reasonable  manner  in relying on the false information. Thereafter, the buyer rescinded  the contract because of the fraud. Given these circumstances, the broker is entitled to:

When financing a home with a long-term loan, if equal payments are made, the amount  of the principal will:

An agency relationship may be terminated by:

When title is transferred, the grantee  in the deed may have the title insured  by:

Which is the best way to create an agency relationship:

When the seller refuses to pay the broker an earned  commission, the broker may properly seek relief by:

The maximum commission a broker may charge for the sale of residential property is:

Brokers  Andrews and Benson both have an open listing on a property. Broker Andrews showed the property to a prospective buyer and carried on negotiations,  but the buyer decided not to buy. Two weeks later, Broker Benson contacted  the same buyer and arranged a sale of the property. The seller would be obligated to pay a commission as follows:

Under which of the following listings must an owner pay a commission, even though it was sold entirely through the owner's own efforts.

A broker’s  ad in a local newspaper  says that if a buyer or seller brings this ad to his office and either list or buy a property through him, that he will give that person $50. Which of the following is true:

The basis of the market data approach to appraising is found in:

A joint tenant can dispose of an interest  held in real property by all of the following ways, except:

Each owner in a tenancy in common:

A trust  deed can have a provision that allows future  loans on the property to have priority: This would be called:

Of the following, which is the best definition of a balloon payment:

A Chicano prospect purchaser asks to be shown homes but does not specifies that he wants to see homes located in a neighborhood where there are no Chicanos.  How should a licensee decide which properties to show him:

The decline of Mortgage Interest  Rates would occur:

If the owner of a property thinks that his property has been over-assessed by the County Assessor, he would contact:

The Lee's made an offer to purchase the Wilsons’s property. As part  of the offer, the Lee’s agreed to take title “subject  to” an existing VA loan which the Wilson's obtained when they purchased the property in the approximate amount  of $39,000. If the Wilson's sell to the Lee's under  these conditions, which of the following is true concerning  liability for a loss suffered by the Government after a foreclosure on the VA loan:

A broker used the following clause in his Exclusive Listing Contract, “In consideration of the execution of the foregoing, the undersigned broker agrees to use diligence in procuring a purchaser.” This clause:

When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, the loan applicant  must be provided with which of the following:

Broker Walter entered  into an oral listing agreement  with the seller of real property, without a subsequent written verification. The payment of a commission to Broker Walter under  these circumstances would be:

Mr. Smith bought a property for $72,000with a $20,000 cash down payment and a $52,000 loan. The loan did not require interest  and did not require any payments  for one year.  One year later, he sold the property for double its purchase price.  Each dollar of his original cash investment is now equal to:

If a 32-unit apartment building shows an annual  net income of $117,800., and the appropriate capitalization rate is 8%, what is the approximate value of the property:

106 Which of the following does not directly affect the mortgage  interest  rates:

To an appraiser, a definition of value is:

Concerning the second installment of Real Property Taxes in California, the due date and delinquent date are respectively:

A lessee rents a building from May 1st., to July 1st., His tenancy is:

Which of the following can be appurtenant to land:

A trustor defaults on his loan and refuses to reinstate the deed of trust. The most expedient thing for the beneficiary to do is to institute  a:

When an appraiser is appraising a property he usually considers all of the following except:

Listing a home at an inflated price requiring minority prospects  to pay that price, but accepting a lower price from other non-minorities prospects:

Mr. Gonzalez took out a loan for improvements to his real property that was fully amortized.  If the loan provides that there are equal monthly payments, the amount credited to the principal will:

Which of the following phrases  will best describe the nature of a payment, to keep the principal informed:

When a deed shows the racial identity of the clients, it can be re-written only by authorization from:

When gross income is changed into value in one operation, which of the following describes this occurrence:

During the winter time, an appraiser finds that the inside of an exterior wall of a building is about the same temperature as the other interior walls. The appraiser would come to the conclusion that:

A sublease is considered  to be:

Which of the following best describes the actions of an agent under single agency:

An owner of an apartment house deducted  $6,000from the gross income for depreciation on his Federal  Income Tax Return. The basis of the property is therefore:

A real estate licensee refers transactions to a specific escrow company, because the escrow company pays him a referral fee for each such referral. Regarding  this arrangement, which of the following is correct:

A broker receives rental  income from several apartment units which he owns. He plans soon to accept an offer, accompanied by a deposit, to sell one of the units. Under these circumstances, he should:

A new real estate salesperson, made strong efforts to obtain listings in a non-integrated community.  He found success by insinuating to property owners that should minorities move into the area, the value of their homes would decrease.  Which of the following terms best describes the activities of the salesperson:

A listing (authorization to sell) generally:

When a salesperson takes a listing , the listing is the property of:

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

When a legal description begins with the phrase,  “Beginning at a point on the northerly edge of "O" Street 100 feet east of the NE corner  of the intersection  of "O" and Seventh Street, ”Which of the following methods of land description is being used:

When an agent is accused of “puffing,” the agent might have been guilty of which of the following:

Of the following, which best characterizes the term “single agency”:

Mr. Brown hired an agent to purchase a home. The offer has a contingency. The offer was contingent  upon the sale of Brown’s home. The offerer made a counter  offer, accepting the Brown's offer, with the right to continue marketing the home for better  offers, and granting  to Brown a right offirst refusal to remove his contingency if a better  offer came in.The Brown's accepted the offer and immediately  listed their home for sale. Shortly thereafter the seller notified Brown that a better  offer has been presented without any contingencies.  What should the agent advise Brown to do:

Under the Business and Professions Code the broker is required to keep a copy of a deposit receipt for a minimum of three years from:

A real estate broker was charging 1/8 percentage interest  rate higher to borrowers that English wasn’t their first language.  This action by the broker is:

If a tenant enters into a 2 year lease, if the lease contains no clause of assignment of subleasing, the tenant:

A tenant  of an apartment complex was working on heating ducts.  The tenant sees that the ducts contain asbestos insulation.   Does the tenant  have a legal obligation to warn anyone he should:

All of the following statements  about covenants and conditions are false, except:

Which of the following is true regarding the depreciation of land under Federal  Income Tax Law:

The term estopple best describes:

An appraiser using the replacement cost method may use the unit cost per square foot or cost per cubic foot in the computations. On a unit cost comparison basis:

Two buildings are leased on a long term basis, one for a post office and the other for a hardware store. Using the capitalization approach to appraise  the properties, the post office would demand:

The Alquist-Priolo  Earthquake Special Studies Act is applicable to:

A loan secured by real property usually consist of:

Mortgage loan correspondents may obtain a license by:

A real estate broker who owned a large real estate firm operating under ABC Realty Co, listed a property for a total of $40,000. The broker and many of his salespersons were all principals in an investment  company operating under  the name of Realty Investment Company.  The investment company decided to purchase the property so the broker presented an all cash offer.  But did not disclose the buyers relationship under  this circumstances:

Someone who has power of attorney  may do all of the following except:

Purchasing a home with a lower down payment and longer repayment terms will generally:

A lender under a trust  deed is known as:

When a lender in a trust  deed takes a deed in lieu of foreclosure who is liable for the second financing:

When a residential neighborhood is composed mostly of owner occupied residential  properties it tends to:

In which of the following programs will the borrower pay no down payment: