Real Estate Transactions and Property Laws: A Comprehensive Study, Exams of Real Estate Management

Download Real Estate Transactions and Property Laws: A Comprehensive Study and more Exams Real Estate Management in PDF only on Docsity! California Real Estate Practice Exam #2 Latest Exam Questions with Answers. 1.An escrow closed on May 16, 2002. Property taxes for the fiscal year 2002-03 are: (A) Seller's personal responsibility; (B) Buyer's personal responsibility; (C) A lien on the property; (D) None of the above - Correct answer c 2.On June 10, a prospective buyer gave broker and signed the usual form of an offer to deposit to a purchase property. The deposit form included the statement, This offer is irrevocable for five days. On June 11, and before the offer had been accepted by the seller, the buyer contacted the broker and withdrew his offer and demanded the return of his deposit. The broker: (A) Has until June 16 to obtain the seller's the acceptance; (B) Has until June 15 to obtain the seller's acceptance; (C) Must retur deposit to the buyer as demanded; (D) Must place the deposit in a neutral escrow until the five day period expires - Correct answer c 3. The lessee of an apartment and the owner of a condominium have many things in common. Which of the following is true for both? They each hold: (A) A fee interest; (B) An estate in real property; (C) A less than freehold estate; (D) An estate of inheritance - Correct answer b 4. In a contingency sale, if the contingency cannot by met by the buyers, the deposit: (A) s refunded to the buyers; (B) The buyers get 1\2 the deposit back, the sellers keep 1\2; (C) The sellers are entitled to the full deposit; (D) The broker keeps the deposit as damages. - Correct answer a 5.Who is responsible for the disclosure of Mello Roos bonds against the property: (A) Seller, (B) Seller's agent (C) Buyer's agent; (D) Both buyer and seller's agent - Correct answer a 6. Ron owns a single family home which rents for $$00 per month. A home across the street rents of 5690 month and Ron applies the same gross rent multiplier to his home as per recently sold for $78,000. If was used on the home across, what would be the value of Ron's home: (A) $50,000; (B) $67,800; (C) $69,565; (D) $70,909 - Correct answer b 7.When a real estate licensee handles the sale of a personal property mobile home, the agent must give written notice to the Department of Housing and Community Development within how many days? (A) 3 calendar days; (B) 5 business days; (C) 10 calendar days; (D) 10 business days - Correct answer c 8. The presence of a corporate seal on a deed: (A) Means that consideration was paid; (B) Implies that the proper or authorized person signed the deed; (C) Would indicate that title is being conveyed to a corporation; (D) Is needed for recording this instrument - Correct answer b 9. of the purchase agreement is: (A) The date the buyer gave the deposit, (B) The date the The date buyer signed the offer; (C) The date the seller accepted the buyer's offer, (D) The date the buyer receives proper communication of the seller's acceptance - Correct answer d 10. A prospective purchaser is interested in buying a lot in the mountains from a subdivider who is not a real estate licensee. The buyer wishes to know about sewer assessments, liens, and utilities to his lot, blanket encumbrances, and maintenance of streets. The source that would provide all of this information is the: (A) County engineer, (B) Real estate Commissioner; (C) County planning director; (D) Subdivider - Correct answer b 11. If a licensed real estate broker wishes to operate an office under a fictitious business name, the broker must: (A) File the name with the county recorder in the county of the place of business; (B) Publish the name in the newspaper as required by law, (C) Have a license issued by the Department of Real Estate after the name has been approved by the Commissioner; (D) Do all of the above - Correct answer d 12. A broker took an exclusive listing to negotiate a loan of $2,000 for a borrower. The listing may not run for longer than: (A) 15 days; (B) 30 days; (C) 45 days; (D) 60 days - Correct answer c 13. An owner of a single family dwelling has leased the house for two years. One day she drives by the rental and notices a painter is painting the house. The owner did not hire the painter. In order to protect herself from a mechanic's lien, the owner should file and post a: (A) Notice of Completion; (B) Notice of Cessation; (C) Notice to Quit; (D) Notice of Non-responsibility - Correct answer d 14. A buyer gave the broker a deposit in connection with a purchase offer. The buyer changed his mind before the offer was the agent do with the deposit: (A) Give it all back to the accepted. What should Give buyer; (B) Keep part of it and give the rest back to the buyer; (C) Place it in a trust account; (D) it to the seller as liquidated damages - Correct answer a 15. When an agent is accused of "puffing," the agent might be guilty of which of the following: (A) Trying to convince a potential seller of his wide popularity among local people; (B) Convincing the appraiser to assign higher value the property than is justified by the comparable recent sales in the area; (C) to the features of the property or neighborhood when showing property to prospective Exaggerating buyers; (D) Convincing a seller to offer a higher commission than is customary for that type of property - Correct answer c 16. The Franchise Tax Board does not require a buyer to withhold a portion of the sales price from the seller when: (A) The property is residential; (B) The seller refuses to pay the withholding; (C) It was the seller's principal residence or the property is less than $100,000; (D) None of the above - Correct answer c separate account for the 3% deposit; (C) He must have a separate trust account for each client; (D) He must have three separate accounts: one for sales, one for rentals, and one for loans - Correct answer a 33. Steve has an old building where he runs his business. The city has just condemned the property through eminent domain. (A) The city pays only just compensation; (B) The city pays compensation for the property and separate compensation for his stock-in- trade; (C) The city must pay compensation for the property, stock-in-trade and cost of moving; (D) The city does not need to pay compensation - Correct answer a 34.An interest in real property can be conveyed in all of the following ways, except: (A) Agreement of sale; (B) Bill of sale; (C) Lease; (D) Deed - Correct answer b 35. A variety of federal agencies participate directly or indirectly in the financing of real estate. Which of the following agencies would make a loan for the purpose of purchasing agricultural land? (A) Government National Mortgage Association; (B) Federal Land Bank; (C) Farmers Home Administration; (D)Federal Housing Administration. - Correct answer b 36. The Federal Real Estate Settlement Procedures Act of 1974 (RESPA) requires lenders to do, or cause to be done, all of the following except; (A) Provide loan applicants with a good faith estimate of closing costs on a HUD-prescribed form; (B) Where the lender is also the closing agent, to furnish a uniform settlement statement the borrower and seller; with a to (C) Furnish all applicants for loans copy of a specific information pamphlet no later than three business days following the time of loan application; (D) Charge no more than $10.00 per document for preparation and delivery of the good faith estimate and the uniform settlement statement. - Correct answer d 37. Potential Buyer Potter seeks securing a loan for such to purchase a home in a new subdivision. A licensee assists Potter in purpose from a savings and loan association, explaining to Potter the loan processing costs that will be involved at the closing. Under these conditions, a copy of HUD Booklet, when the loan is arranged, "Settlement Costs and You": (A) Need not be provided to Potter if the procedures and costs of the loan by the licensee; (C) Must be have been adequately explained; (B) Must be provided immediately lender within three provided to Potter within one week; (D) Must be provided to Potter by the days of the loan application - Correct answer d 38. Jody as a one-year leasehold interest in Harbor House. The interest automatically renews itself at the end of each year. Jody's interest is referred to as a tenancy: (A) For years; (B) From period to period; (C) At will; (D) At sufferance - Correct answer b 39. An addendum would be (A) An addition to a single family residence which has not been permitted, (B) Additional documents attached to and made part of a contract; (C) The listing broker's decision to extend a listing because he has not yet found a buyer; (D) The conversion of a double garage to a a "granny flat" - Correct answer b 40. What does not have to be included with a Seller's Transfer according to Disclosure Statement? (A) Repairs made according to building codes; (B) Fences shared with a neighbor; (C) Deed restrictions; (D) Conditions - Correct answer a 41. Select the order of words that correctly match the Following definitions: Sudden, perceptible loss of land by action of water; Gradual accumulation of land deposited by the shifting of the river or ocean's action; Wearing away of land by the action of water or wind; Land increased by the buildup of sediment. (A) Accretion, Avulsion, Alluvion, Erosion (B) Avulsion, Accretion, Erosion, Alluvion (C) Alluvion, Accretion, Erosion, Avulsion (D) Erosion, Avulsion, Alluvion, Accretion - Correct answer b 42.Littoral rights refer to: (A) The right of a landowner whose land borders a river or stream to have reasonable use of that water; (B) The right of a farmer to claim excess water from lakes or reservoirs: (C) A landowner's claim to use water in large navigable lakes and rivers adjacent to his property up to the high-water mark; (D) The right of a landowner to use the air chooses space above his land In any manner he - Correct answer c 43. 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: (A) An exclusive easement; (B) A specific lien; (C) An encumbrance; (D) A declaration of restrictions - Correct answer c 44. Steve has an old building where he runs his business. The city through eminent domain. (A) The city pays has just condemned the property only just compensation; (B) The city pays compensation for the property and separate compensation for his stock- in-trade; (C) The city must pay compensation for the property, stock-in-trade and cost of living; (D) The city does not have to pay compensation - Correct answer a 45.The purpose of a "hold harmless" clause in a listing contract is to protect the agent from liability for: (A) Any and all lawsuits resulting from the potential buyer; (C) False information transaction; (B) Misrepresentations made by the agent to given by the seller concerning the condition of the property; (D) Damages as a result of the buyer misrepresenting his qualifications to get the loan - Correct answer c 46. In order to accurately calculate a gross rent multiplier, the appraiser would obtain from comparable properties the: (A) Net income and selling price; (B) Original cost and the annual income; (C) Annual rent and the selling price; (D) Net income and the capitalization rate - Correct answer c 47. Which of the following statements is most nearly correct concerning buyer's agency: (A) It is not legal in to California; (B) In buyer's agency, the seller is forbidden to pay any commission, directly or indirectly, the buyer's agent; (C) Buyer's agency often gives rise to disputes over who is the "procuring cause"; (D) The buyer's broker has no agency relationship with the seller or the listing broker, and is therefore not liable for their actions - Correct answer d 48. When an unincorporated non-profit organization wishes to sell property which it owns, the one(s) who sign the grant deed would be: (A) The president and recording secretary; (B) Any member as long as there are two; (C) The Secretary of State of California; (D) The treasurer - Correct answer a 49. For Funds may be withdrawn from a real estate broker's trust account by an unlicensed employee: (A) For payment of miscellaneous expenses; (B) For payment of general operating expenses provided proper account is made and money is returned; (C) Only for payment of advertising; (D) When the unlicensed employee has written authorization from and broker and has fidelity bond coverage - Correct answer d 50. A broker sells house advertised "as is." There are no obvious defects that would be evident to prudent buyer on inspection. The sellers and broker, however, know that the a plumbing is very defective. The buyer moves in and discovers the defects. He-she sues the broker and sellers. The suit will probably be the following: (A) Successful because the sellers and brokers withheld material information been disclosed; (B) Successful, because the 'as is" clause does not override the that should have sellers' and brokers' duty to fill out a Transfer Disclosure Statement revealing all known material facts whether the defects are evident or not; (C) Unsuccessful, because selling the property "as is" gives constructive notice that there are defects; (D) Unsuccessful, because the defects would have been revealed if the purchase agreement had contained an inspection clause. - Correct answer b 51. For FHA purposes, acquisition costs include nonrecurring closing expenses. Which of the following would not be included: (A) Discount points; (B) FHA appraisal fee; © Credit report fee; (D) Impounds for property taxes - Correct answer d 52. Buyer Frank sued broker Sam for a misrepresentation in the sale of a single family home. He was awarded a judgment in the amount of $100,000. Broker Sam was bankrupt and unable to pay the judgment. Buyer Frank appealed to the Real Estate Recovery Account. Assuming the Recovery Account agrees to pay Frank, he will receive a maximum of: (A) $50,000; (B) $30,000; (C) $70,000; (D) $100,000 - Correct answer a 53. Mrs. Mears owned 20 acres of rural land. Mr. Swanson purchased 10 acres from Mrs. Mears for $10,000. Mr. Swanson immediately sold the 10 acres to Mr. Rowland for $25,000. Mrs. Mears may: (A) Sue Swanson if she can prove Swanson knew the land had a higher inherent value then he paid her, (B) Mrs. Mears has no recourse because this is a legal transaction; (C) Mrs. Mears can sue Mr. Swanson and recover the "secret commission would be a 30-acre parcel $200 per acre. Two days after the escrow closed, the of land valued by an independent appraiser at broker received an offer of $500 per acre for that land from a person with whom the broker had not previously dealt. The broker accepted the offer and sold the land for $25,000. Under these circumstances, the broker has: (A) Engaged in dishonest dealings; (B) Received a secret profit; (c) Failed to disclose material facts to the buyer of the land; (D) Apparently violated no moral or legal duty - Correct answer d 68. According to California Real Estate Law, an unlicensed person may be paid a finder's fee: (A) As long as it is disclosed; (B) At the conclusion of escrow; (C) When it is given just to influence someone to do something; (D) Never - Correct answer c 69. When the Federal Reserve takes steps to implement a tight money market, which of the following would likely occur. (A) Buyer's points will increase; (B) Interest rates will rise, because money is scarce; (C) Greater use of second trust deeds; (D) All of the above - Correct answer d 70. A broker takes a deposit check from a buyer and deposits it in his trust account. After the offer was accepted, the broker wrote a check from the trust account in the amount of the deposit and brought it to escrow. With regard to the broker's duty to maintain proper trust account records, the records must be retained: (A) 3 years from the date the broker deposited the buyer's check in the trust account; (B) 3 years from the day escrow closes; (C) years from the date escrow opened; (D) 3 years from the date of the offer to purchase - Correct answer b 71. In which of the following ways can a joint tenancy be created? By deed from: (A) Joint tenants to themselves and others as joint tenants; (B) Tenants in common themselves as joint tenants; (C) A husband to himself and his wife as joint tenants; (D) All of the above - Correct answer d 72. As it relates to the field of real estate, the legal term "theft" would include all of the following except: (A) Entering into a home that is listed on the market and taking valuable personal property belonging to the owners; (B) Defrauding clients by siphoning funds from the broker's large property management trust account for the broker's own personal use; (C) Defrauding lenders by signing another person's name on loan documents; (D) Defrauding investors by creating phony trust deeds and notes, selling them, and using the proceeds for the broker's personal use - Correct answer c 73. Under an exclusive agreement to acquire property, you become the seller's agent: (A) At point when you find the property; (B) If seller doesn't have agent; (C) When you negotiate for the seller; (D) Never - Correct answer c 74. Assume that a broker had assured an owner that he was signing an exclusive agency listing, when in fact he was signing and exclusive right to sell listing. Which of the following is true: (A) The broker would receive a larger commission; owe the commission to (B) the owner sold the property during the listing period, he would the broker; (C) The broker would be subject to disciplinary action because he misrepresented a material fact; (D) The owner should have known what he was signing - Correct answer c 75. Broker Green obtained a listing from Brown to sell his home. Brown told Green the sewers were in and connected and signed a listing to that effect. Green was of the opinion that there were no sewers installed in that street, so he checked with the city and found he was correct. Green showed the house to Jones, who did not ask about the sewers. and Green made the sale without any comment. Later, Jones found that the sewers were not in. Which of the following is true: (A) Green had a right to rely on the listing; (B) Green has a duty to tell Jones, even though he did not ask; (C) Jones was to blame because he could have checked with the city, "caveat emptor*; (D) There is no provision in the law to cover this situation - Correct answer b 76. A tenant's tenancy for years will expire in two weeks. The tenant plans to move to a larger apartment across town when the current tenancy expires. What must the tenant do to terminate this agreement? (A) Give the landlord immediate notice or week's prior notice or the lease the lease will automatically renew; (B) Give the landlord one will automatically renew; (C) Nothing, the agreement will terminate automatically at the end of the current term; (D) Sign a lease for the new apartment, which will automatically terminate the existing lease - Correct answer c 77. Which of the following contracts, even when fully executed and performed, is unenforceable: (A) A net listing in which a broker failed to disclose the amount of his compensation to his principal; (B) A verbal listing for the sale of a business opportunity; (C) An oral listing for the lease of a residence for one year; (D) A signed, open listing not containing a definite termination date - Correct answer a 78. If two parties enter into a valid contract and one of the parties dies or becomes incompetent, the contract is: (A) Valid if it was signed before the party died or became incompetent; (B) Invalid unless the heirs or guardian sign an acknowledgement; (C) Invalid upon the death or incapacity of the one party; (D) Voidable by the living or capable party - Correct answer c 79. An unlicensed secretary working in a real estate office may legally: (A) Discuss terms for sale of property advertised by the broker; (B) Type listing agreements for salespersons; (C) Collect rent on properties managed by the office; (D) Quotes prices on listed property over the phone - Correct answer b 80. Conventional loans are distinguished from FHA insured loans by all of the following except: (A) Conventional loans provide for lower loan-to-value ratio; (B) FHA loans generally provide for a longer repayment period; (C) Conventional loans always permit deficiency judgment, while FHA loans never allow them; (D) Interest rates on FHA loans are generally lower than those on conventional loans - Correct answer c 81. Mary has assigned her apartment lease to Ben and the landlord has agreed to the assignment. Who is liable for payment of the rent? (A) Ben is liable to Mary; Mary is liable to the landlord; (B) Both Ben and Mary are liable to the landlord; (C) Only Mary is liable; (D) Only Ben is liable - Correct answer d 82. An appraiser intends that the estimate of value as disclosed in his appraisal report on a property be valid: (A) As of the date of the appraisal only; (B) For a period of three months after the appraisal date; (C) Until the close of escrow; (D) Until the loan is funded - Correct answer a 83. The consent of the beneficiary in trust deed be would required for (A) Boundary line adjustments; (B) Consolidation agreements; (C) Change in restrictions; (D) All of the above - Correct answer d 84. Any purchase agreement, if it recommends the manner in which title is taken, is considered: (A) Tax advice; (B) Legal Advice; (C) Discrimination; (D) All of the above - Correct answer d 85. June, Vivian one-year lease and moves into Street view Apartments. Vivian deposits the required security deposit with the landlord. Six months later, Vivian pays the January rent and mysteriously moves out. Vivian does not arrange for a sublease or an assignment and makes no further rent payments. The apartment is still in good condition. What is Vivian's liability to the landlord under these circumstance? (A) Because half the rental amount has been paid and the apartment is in good condition, Vivian has no further liability: (B) Vivian is liable for the balance of the rent, plus forfeiture of the security deposit; (C) Vivian is liable for the balance of the rent, offset by the amount of security deposit; (D) Vivian is liable for the balance of the rent, plus the security deposit and any marketing costs the landlord incurred - Correct answer c 86. A buyer on a land contract defaulted. The seller's recourse would be: (A) To file suit for possession and rents; (B) Foreclose; (C) File an unlawful detainer action; (D) To declare the land contract void and have the sheriff move the vendee out - Correct answer a 87. A broker has received an accepted offer on a 10-acre parcel. The broker has just learned that the buyer has been buying up land in the area at a much higher price than the seller agreed to take. The broker should: (A) Notify the seller as to the facts; (B) Recommend that the seller breach the contract; (C) Do nothing, because the seller if obligated to convey; (D) Do nothing, because the agency has been completed with the procurement of the buyer - Correct answer a 88. A broker and a seller entered into an Exclusive Authorization and Right to Sell Listing. Which of the following is correct if the seller wishes to revoke the contract: (A) The seller cannot unilaterally revoke the contract; (B) The seller must obtain the 104. A tenant signs a lease that includes the following clause: "The stated rent under this agreement will be increased or decreased every three months based on the percentage increase in the consumer price index (CPI) for that period." What kind of lease has this tenant signed: (A) Percentage; (B) Net; © Graduated; (D) Index - Correct answer d 105. A lien is first created when which of the following is recorded: (A) A notice of non- responsibility; (B) An easement; (C) Trust deed; (D) Restrictions - Correct answer c 106. When a tenant holds possession of a landlord's property without a current lease agreement and without the landlord's approval: (A) The tenant is maintaining a gross lease; (B) The landlord can file suit for possession: (C) The tenant has no obligation to pay rent; (D) The landlord may be subject to constructive eviction - Correct answer b 107. An owner of land that does not abut a stream may gain rights to the use of excess water through the State Division of Water Resources by: (A) Prescription; (B) Appropriation; (C) Accretion; (D) Avulsion - Correct answer b 108. Which of the following describes a gross lease? (A) An agreement In which the tenant pays a fixed rent and the landlord the tenant pays all taxes, insurance, and expenses related to the property; (B) A lease in which pays rent plus some of the operating expenses; (C) A lease in which the tenant pays the landlord a percentage of the monthly income derived from the property; (D) An agreement allowing the tenant to terminate the lease if certain conditions near the premises become unbearable - Correct answer a 109. Loans from some lenders must comply with the Real Estate Settlement Procedures Act. When the loan is secured by residential real property, and contains 1- to-4 residential units the loan must comply with the RESPA regulations if the loan is made by: (A) The seller of the property who carries back a note secured by a first deed of trust as part of the purchase price; (B) A private lender who loans personal funds through a licensed real estate broker; (C) Lenders whose deposits are insured by an agency of the federal government; (D) Any of the above - Correct answer c 110. A broker, under the authority of an exclusive authorization and right to sell listing collected a $10,000 cash deposit on a selling price of $120,000. Through no fault of the seller, the purchaser failed to complete the transaction, and the owner declared that the deposit was to be forfeited. The purchaser agreed to the forfeiture of the deposit. Under these conditions, the broker: (A) Would be entitled to the entire deposit as his share of liquidated damages; (B) Could retain no part of the deposit; (C) Could deduct from the deposit any amount of actual out-of-pocket expenses incurred by the broker, (D) On residential property, could retain no more than 3% of the selling price as liquidated damages - Correct answer d 111. The conditions of the sale will affect the: (A) Price of the subject property; (B) Cost of the subject property; (C) Value of the subject property; (D) Basis of the subject property - Correct answer a 112. A broker needs a written contract with which of the following? (A) Secretaries; (B) All salespeople; © Cleaning staff; (D) All of the above - Correct answer b 113. Which of the following would automatically terminate a residential lease? (A) Total destruction of the property; (B) Sale of the property; (C) Failure of the tenant to pay rent; (D) Death of the tenant - Correct answer a 114. An agent is handling the sale of a single family residence. He fails to disclose the existence of a Mello-Roos tax. After the close of escrow, the buyer may: (A) Rescind the contract:(B) Sue the seller for agent for recovery; (C) Sue the selling agent for recovery; (D) Sue the listing agent for recovery - Correct answer a 115. Wong acted as an agent for Jackson without having the authority (or the appearance of authority) to do so. Jackson later chose to accept Wong's unauthorized acts. This is an example of: (A) Implied contract; (B) Ratification; (C) Estoppel; (D) Misrepresentation - Correct answer b 116. A broker is selling an apartment complex and puts together a prospectus which shows a 12% yield. In the prospectus, the broker shows the correct gross scheduled income, but fails to include management, maintenance and several other operating expenses. The buyer buys the property based on the income analysis given to him by the broker. The broker is guilty of: (A) Fraud; (B) Misrepresentation; (C) Making a false statement; (D) Buyers of income property are "sophisticated" and should know what would be the normal operating expenses - Correct answer a 117. Buyer makes an offer on a home including all of the appliances. Seller will not include all of the appliances. Agent crossed out buyer's requirement for all the knowledge or consent of the buyer. Seller then accepted the *modified offer." Agent's action was: (A) Unethical, but not illegal; (B) Illegal; (C) Common practice by most real estate agents; (D) Legal, if seller was aware of agent's signature - Correct answer b 118. Uhanda applied for a real estate loan. The loan application blank lines asking her to disclose her race and marital status. What can she do? (A) Leave both lines blank (B) Sue the lender and the real estate broker; (C) Must fill out both blank lines (D) Disclose race but not marital status - Correct answer a 119. The Alquist-Priolo Earthquake Protection Act applies to: (A) All buildings in the state of California; (B) All residential properties in earthquake fault zones; (C) All buildings in earthquake fault areas; (D) All commercial buildings in earthquake fault areas - Correct answer b 120. An easement on real property that can be more easily terminated by non-use is called: (A) Prescription; (B) Estoppel easement; (C) Implied easement; (D) Easement by necessity - Correct answer a 121. Regarding repairs to broken equipment, what kind of maintenance would it be? (A) Preventive maintenance; (B) Deferred maintenance; (C) Corrective maintenance; (D) Regular maintenance - Correct answer c 122. When may a broker fill out the entire Seller's Transfer Disclosure Statement? (A) Never; (B) When the broker has the written instructions from the seller; (C) When the buyer signs waiver; (D) Always - Correct answer a 123. For IRS purposes, most real estate salespersons are considered to be which of the following: (A) An employee; (B) An independent contract; (C) An employer; (D) None of the above - Correct answer b 124. Of the following, which best characterizes the term "single agency': (A) It is a misnomer; there are always two brokers in every transaction; (B) One agent represents both seller and buyer in the same transaction; (C) The agent represents one client in dealing with third parties; (D) The agent serves two principals in a transaction in which the agent is the listing broker - Correct answer c 125. The Truth-in-Lending Law allows certain borrowers a limited right of rescission if each of the following events occurs in sequence, even if on different days. The time which is allowed for rescission begins when the: (A) Loan application IS submitted to the lender; (B) Lending instrument is signed by the borrower; (C) Loan is approved by the lender; (D) Loan is funded by the lender - Correct answer b 126. A broker has been in business for many years. He currently has 40 exclusives listings in his office. The broker dies and his daughter, who is also broker, takes over for him. What should she do about the current listings? (A) Just inform the sellers that she is taking over; (B) She must attempt to renegotiate all of the listings; (C) She need only inform the Bureau of Real Estate that she is now the broker of record; (D) Do nothing - Correct answer b 127. A surveyor is asked to survey land and determine its legal description. His legal description begins with the phrase, "Beginning at a point on the northerly edge of M Street 100 feet easterly of the NE corner of the intersection of M and Seventh Street, and running thence...." which of the following methods of land description is being used: (A) U.S. Geographical Survey System; (B) City Rural Subdivision Map; © U.S. Government Rectangular Survey System; (D) Metes and bounds - Correct answer d 128. A licensee who speaks of a "grandfather" clause is probably referring to: (A) Inheritance rights of a direct descendant; (B) Public restrictions on the use of a property: (C) A change in zoning; (D) Continuation of a non-conforming use - Correct answer d