Real Estate Law and Practice Study Guide, Exams of Real Estate Management

Download Real Estate Law and Practice Study Guide and more Exams Real Estate Management in PDF only on Docsity! Real Estate Principles Final Exam 100 Questions and Answers. 1. Anything that is fastened or attached to real property permanently is considered to be: - Correct answer Real Property 2. A quitclaim deed releases all present claims, rights and title of the: - Correct answer Grantor 3. When a creditor wants to satisfy a judgment which was levied against another person, the creditor would: - Correct answer Obtain a writ of execution 4. Before a mechanics lien is effective it must be: - Correct answer Verified and recorded 5. Discrimination by a real estate licensee based on race is: - Correct answer A violation of the regulations of the Real Estate Commissioner, against public policy, and unethical 6. Upon the signing of a real property sales contract: - Correct answer an equitable title passes to purchaser 7. All California Real Estate Laws are created by: - Correct answer Acts of the legislature 8. The 36 sections in a township are numbered from 1 through 36. Section 1 is located in the: - Correct answer Northeast corner 9. Which of the following would be a discriminatory act under the Commissioner's Regulations? - Correct answer Posting a sign on the property indicating a preference for female renters, designing an ad for general circulation appealing to persons of a specific religion to purchase within a given area, and refusing to list a property in an area occupied by persons of a race other than the licensee. 10. The type of interest usually charged on home loans is: - Correct answer Simple 11. A landowner is notified by a railroad company that it plans to cross his property with a railroad line. If the landowner refuses, the railroad company can proceed by the use of: - Correct answer Eminent domain 12. Title to real property that is transferred by a will is considered: - Correct answer A devise 13. A real estate broker received 40 acres of land valued at $300 per acre as a commission from the seller. Two weeks after escrow closed, the broker was offered P a g e 1 | 8 $400 per acre for the land. If the broker accepts the offer he: - Correct answer will be acting in an acceptable manner 14. The words "procuring cause" would have an important meaning to which of the following? - Correct answer A disputed over commission on an open listing 15. Which of the following is not an essential element of a contract? - Correct answer Performance 16. Under the Street Improvement Act of 1911, the city is authorized to assess each owner for the work completed. These improvements are assessed on the basis of: - Correct answer Front footage 17. The real estate tax fiscal year is for the period: - Correct answer July 1 to July 1 18. The landmark case of the United States Supreme Court which prohibited discrimination in housing was: - Correct answer Jones vs. Mayer 19. Most real estate syndicates that have been created in California have taken the form of a: - Correct answer Limited partnership 20. Under the California Veterans Home and Farm Purchase Act of 1974, the purchaser acquired possession through a: - Correct answer Land Contract 21. Which of the following has the control over the approval of a subdivision under the Subdivision Map Act? - Correct answer Planning Commission 22. A grant deed: - Correct answer warrants that the property has not been previously conveyed by the grantor 23. When an appraiser analyzes the rent while using the income approach, he should base his appraisal on which of the following characteristics of the income? - Correct answer Durability, quality, and quantity 24. An income property was appraised for the $100,000 based on a 6% capitalization rate. If an investor used an 8% capitalization rate, the property would be: - Correct answer $75,000 25. Which of the following appraisal reports would be the most comprehensive and complete? - Correct answer Narrative 26. Once an abstract of judgment is recorded it remains a lien on all real property for: - Correct answer Ten years 27. If a note in the amount of $22,250 specifies monthly payments over a period of 30 years at 6.6% interest per annum, what is the first month's interest payment? - Correct answer $122.38 P a g e 2 | 8 57. When a broker advertises a listed property for sale, the broker may not legally use an ad: - Correct answer that gives the impression that the broker is the owner of the property 58. A client hires a broker to buy a parcel of land for a specified sum on his behalf. The broker however purchases it for himself at a lower price and then sells it to his client at a higher price without revealing his costs. This is an example of: - Correct answer Secret profit 59. An appraiser intends that the estimate of value as disclosed in his or her appraisal report on a property be valid: - Correct answer as of the date of the appraisal only 60. An apartment building develops a net income of $15,000. If it were sold at a price based upon a capitalization rate of 8%, the selling price would be: - Correct answer $187,500 61. Which of the following state agencies is empowered to prevent acts of discrimination in housing accommodations in California because of race, color, religion, national origin or ancestry? - Correct answer Department of Fair Employment and Housing 62. The person who most likely would make use of the legal remedy known as "Unlawful Detainer" would be a: - Correct answer Lessor 63. An estate in which a tenant who rightfully came into possession of a property, and who retains possession after the expiration of the term without the consent of the landlord is known as: - Correct answer an estate at sufferance 64. If the Federal Reserve wants to increase the amount of money available to member banks to ease a tight money market it could: - Correct answer Lower the minimum reserves required by its member banks 65. All of the following would have an effect on the final estimate value when making an appraisal of an old family residence except: - Correct answer Original cost of the residence 66. A restrictive covenant contained in a deed which prohibits sale to persons of a particular race will: - Correct answer Have no effect in the conveyance and the covenant will not be enforceable 67. Which of the following would not be classified as a specific lien? - Correct answer Judgment 68. A title plant is a: - Correct answer Collection of real estate records 69. In a business partnership, if one of the partners dies, the surviving partner: - Correct answer Becomes exclusive manager of the partnership business and retains title to the partnership property until he winds up the partnership business P a g e 5 | 8 70. Enforcement of the State Housing Law is accomplished through the: - Correct answer Local building inspectors 71. The stated policy of the Real Estate Commissioner is to create a "color-blind" industry which can help society obtain voluntary, equal opportunity in fair housing. What does this mean? - Correct answer Maintain an attitude that is actually free from bias and color-blind to appearance, that race, creed or color is not a material fact in real estate transactions, and do unto others as you would have them do unto you 72. State law requires that every city or county create a planning commission: - Correct answer without exception 73. If there is a conflict between the signed escrow instructions and the signed deposit receipt, which of the following would be binding? - Correct answer the escrow instructions 74. A person that is employed by another to act on his or her behalf may be considered: - Correct answer an employee, an agent, and an independent contractor 75. To hold real property as tenants in common, individuals must: - Correct answer Hold undivided interests 76. The least contract is considered: - Correct answer Personal property 77. An estate of inheritance or a perpetual estate would be: - Correct answer A fee simple estate 78. The end result of most profit and loss statements is to ascertain: - Correct answer Net income 79. When a listing is signed by a seller and broker, a fiduciary relationship is created between the broker and the: - Correct answer Seller 80. Which of the following would not be classified as an institutional lender? - Correct answer Mortgage company 81. Which of the following represents a gross misrepresentation by the agent? - Correct answer the representation is an obvious falsehood, the representation is made with the knowledge of it being a falsehood, and the representation caused the aggrieved party to enter into the contract 82. Most real estate contracts are in writing on reprinted forms. Some of the terms of these contracts must be written in and other parts are reprinted. In the interpretation of such contracts: - Correct answer the written parts take precedence over the printed parts P a g e 6 | 8 83. A cautious buyer paid $200 for a four-month option to purchase a property for $30,000. Under these circumstances, each of the following are true except: - Correct answer Optioned has created a legal interest in the property 84. According to the provisions of both federal and state civil rights legislation, discrimination due to race, color, creed or national origin in housing is: - Correct answer Unenforceable, unlawful, and illegal 85. Which of the following is generally demanded in every sale of real property in California? - Correct answer a policy of title insurance 86. An appraiser in analyzing the data for his final estimate of value on a property would give least consideration to: - Correct answer the assessed value of the property 87. Which of the following is not considered in determining whether an item of property is a fixture? - Correct answer Cost of item 88. The commission to be paid to a broker in a probate sale is set by the: - Correct answer Court 89. A formal declaration before a notary public or other qualified by a person who has executed an instrument, that such execution in his or her act and deed is called: - Correct answer An acknowledgment 90. The value of a commercial property is set at $400,000 by using a net income of $36,000 and a 9% capitalization rate. If you used a 12% capitalization rate, the value of the property would be: - Correct answer $300,000 91. One of the chief advantages of the market data approach in the appraisal of real property is that: - Correct answer it is the easiest method for a salesperson to learn and use 92. In comparing the cost of reproduction of two buildings of the same square footage, a two-story house usually: - Correct answer Costs less than a one-story house 93. What is the annual interest rate on a $16,000 loan when the interest payments are $160 per quarter on the full amount? At least; - Correct answer 4%, but less than 5% 94. Land which is subject to an easement is said to be: - Correct answer Encumbered 95. Private restrictions on use can include: - Correct answer Deed restrictions, easement and rights of way, leases and mortgage notes 96. Under the law of Agency, a fiduciary relationship is created between the broker and the seller upon execution of the listing agreement. As far as the broker's responsibility to third parties, the broker: - Correct answer must be fair and honest P a g e 7 | 8