CA Real Estate Exam 2024 Practice Questions EXAM 2024-2025 QUESTIONS AND ANSWERS 100 % PAS, Exams of Public Health

Download CA Real Estate Exam 2024 Practice Questions EXAM 2024-2025 QUESTIONS AND ANSWERS 100 % PAS and more Exams Public Health in PDF only on Docsity! CA Real Estate Exam 2024 Practice Questions EXAM 2024-2025 QUESTIONS AND ANSWERS 100 % PASS A+ GRADE What type of title bears the most protection for the property owner? Quit claim deed Sheriff's deed Warranty deed Beneficiary deed - answer>>Warranty deed A warranty deed includes the guarantee of seisin, encumbrances, right to quiet enjoyment, further assurance, and warranty forever. A person makes an offer to purchase a property that was shown to them by their broker, but then waits to present the offer to the seller until later that day. In the meantime, two more offers were submitted on the property. Under the rule of agency, the offer: Is considered to be void because only one offer at a time can be placed on a property Must be presented alongside the other offers to allow the seller to make a fair choice Must wait to be presented because the other offers take priority in order Must be presented first because the offer was known by the broker before the others - answer>>Must be presented alongside the other offers to allow the seller to make a fair choice Sharon made an offer on her dream home and to show the seller she was a serious buyer she offered a sum of money to be held in escrow that she will forfeit if she does not fulfill her end of the deal. What is the sum of money to be held in escrow as a good faith deposit called? Prefunding deposit Broker deposit Earnest money Purchase promise deposit - answer>>Earnest money A contract can include earnest money to be held in escrow as a good faith deposit which is applied toward the purchase price at closing. An insurance policy which combines personal liability insurance and hazard insurance coverage for a dwelling and its contents is called: Homeowner's insurance Buyer's insurance Errors and omissions insurance All of the above - answer>>Homeowner's insurance Homeowner's insurance ensures comprehensive protection for homeowners. Once all terms of a contract have been fulfilled and the transaction has closed, the contract status is said to be fully: Rescinded Executed Insured Amended - answer>>Executed John signs a six-month lease on an apartment beginning January 1st and ending June 30th. His lease does not automatically renew and no notice is required on his part to vacate on the expiration date. What type of lease did John sign? A lien may be terminated by paying the existing debt, receiving a satisfaction of judgement, and filing the documentation with the court. Liens on a title may be voluntary or involuntary. Which of the following is an example of a voluntary lien? Mortgage Judgement Child support lien Tax lien - answer>>Mortgage Voluntary in nature and not forced by the courts. Donnie's neighbor Paul has an easement to cross Donnie's property to get to his own. The easement is recorded and transfers with the land if either Donnie or Paul sell their property. When an easement is on a title it is an example of an: Encroachment Estoppel Encumbrance Equitable title - answer>>Encumbrance An encumbrance is a limitation placed on a title and is important to identify as it may affect the value and/or utility of the property. Escrow agent Emily will use what legal instrument to transfer real property from the seller to the buyer on closing day? Title certificate Deed Bill of sale Settlement statement - answer>>Deed On closing day, who signs the deed to transfer the property from seller to buyer? The buyer The seller The buyer and seller The seller and escrow agent - answer>>The seller Only the seller or grantor is required to execute the deed to convey property to the buyer. No other parties are required to sign the deed at closing. When agents get together and have a discussion regarding setting a fixed commission rate so that they are all charging the same rate, this conversation violates what act? Homestead act Fair housing act ADA act Sherman antitrust act - answer>>Sherman antitrust act This activity among agents constitutes price fixing. What duty requires an agent to place the client's best interest above all others? Honesty Loyalty Respect Obedience - answer>>Loyalty Steve tells listing agent Shelly his basement leaks but, only when it rains hard for long period of time, so no need to mention it to buyers. He insists it's really no big deal. Which of the following is true? Shelly must be obedient and not mention it Shelly should trust her client Shelly cannot withhold known material facts Shelly should only mention it if the buyer asks - answer>>Shelly cannot withhold known material facts Not disclosing a material fact would be illegal and the agent does not have to obey the seller in this situation. If an agent is accused of puffing, what does that mean? Fraud Lies Misrepresentation Exaggeration - answer>>Exaggeration For example, "This home has the most gorgeous view of any home anywhere." Exaggerated opinion, but not a misrepresentation of a material fact. Race Familial status Income Religion - answer>>Race Landry owns a duplex and personally occupies one of the units. He has one unit for rent and refuses to rent it to anyone with small children because kids are loud. If he refuses applicants with children has he committed a violation or any discriminatory acts? Yes, he can be fined Yes, he has to rent to anyone Yes, he has discriminated based on familial status No, he is exempt from Fair housing regulations because he owns a dwelling with 4 or less units and personally occupies one of the units - answer>>No, he is exempt from Fair housing regulations because he owns a dwelling with 4 or less units and personally occupies one of the units The landlord is to be exempt as long as no agent is hired to lease the property and makes no discriminatory advertisements. The Fair Housing act pertains to certain groups as protected classes. Which of the following is not a protected class under Fair Housing? Felons Elderly Handicapped Single mothers - answer>>Felons Broker Ben has E&O Insurance and is selling an investment property that he owns. He has made a few false statements and misrepresentations, but he really needs to sell the property fast. What would happen if someone were to sue him for his false statement? E&O Insurance will not cover negligence of a broker selling property he owns The E&O Insurance will defend him, but charge him double premium The E&O Insurance only covers agents in commercial transactions The E&O Insurance would cover him - answer>>E&O Insurance will not cover negligence of a broker selling property he owns Errors and Omissions Insurance does not cover intentional acts and will not cover negligence of a broker selling property he owns. Karen recently sold a home for 6% commission. If her commission was $20,700, how much did the property sell for? $340,000 $342,000 $345,000 $348,000 - answer>>$345,000 $20,700 / 0.06 = $345,000 How many square feet does one acre contain? 43,560 45,630 46,350 40,560 - answer>>43,560 Seller Gary needs to net $15,000 on the sale of his home. His loan payoff is $160,000, his closing costs are $5,500 and commission is 7%. What is the lowest offer Gary can accept? $196,084 $167,685 $194,086 $167,865 - answer>>$194,086 $15,000 + $160,000 + $5,500 = $180,500 $180,500 / 0.93% (seller's portion after commission) = $194,086 Agent Amanda just closed on a home that sold for $525,000. Her commission rate was 5% with a 50/50 co-broker with the selling broker, and a 60% split with her broker. How much did Amanda receive? $13,125 $7,875 $7,578 $15,750 - answer>>$7,875 $525,000 x 5% (0.05) = $26,250 $26,250 split 50/50 = $13,125 $13,125 x 60% (0.6) = $7,875 1.89 - answer>>1.86 250 x 325 = 81,250 ft 81,250 / 43,560 sq ft in an acre = 1.86 acres Sharon purchased a home for $100,000 with an 6% annual interest rate. Her payments are $800 per month. How much of her first payment will go to principal? $600 $300 $500 $800 - answer>>$300 $100,000 loan x 0.06 (6% interest) = $6000 $6000 / 12 months = $500 monthly interest $800 - $500 = $300 When agent Andy took a listing he promised the seller that he would advertise the property in a magazine until it was sold. Andy did not do the advertising that he promised. Andy is guilty of: Objective fraud Constructive fraud Actual fraud Comprehensive fraud - answer>>Actual fraud Actual fraud is an act intended to deceive another, such as making a false statement, making a promise without intending to perform it. A broker who holds a valid listing on a property places a classified ad for the property containing only the following information "For Sale - 3 bedroom, 2 bath home with swimming pool. Asking price $165,000. Telephone 555-9276". This type of advertisement would be an example of a: Silent ad Qualified ad Display ad Blind ad - answer>>Blind ad Blind advertising is any real estate advertisement that does not properly identify the broker. A salesperson must always remember to include the employing broker's name in the advertisement. Which of the following is an example of less-than-freehold estate? Estate in severalty Fee simple determinable estate Leasehold estate Fee simple estate - answer>>Leasehold estate Freehold and various forms of fee simple estates mean ownership, while a leasehold estate means renting. If an appraiser is appraising a special purpose property, he would probably use the: Income approach Market data approach Land residual approach Cost approach - answer>>Cost approach Most commonly used to appraise special purpose properties or buildings, such as schools and libraries. The main purpose of "RESPA" (Real Estate Settlement Procedures Act) is to: Provide consumers with enough information to enable them to shop for settlement services Place a fixed limit on settlement costs on residential property of 4 units or less To standardize settlement services throughout the United States Place a fixed limit on settlement costs in all real estate transactions - answer>>Provide consumers with enough information to enable them to shop for settlement services. Definitions of market value is least concerned with: Market cost Objective value Value in exchange Open market - answer>>Market cost Market cost is the present value worth of a commodity to draw on the open market. How much an item cost has no relevance to its value. What is the status of a contract when all terms have been fulfilled and the transaction has been closed? Joint tenancy with rights of survivorship Joint tenancy Tenancy in common Tenancy in severalty - answer>>Tenancy in common Tenancy in common grants owners to have an equal, undivided interest in a property, but also allows to owners to have varying percentages of unequal ownership as well. Tenancy in severalty is best described as: Two property owners One property owner More than two property owners Property owned by a corporation - answer>>One property owner Severing all other owners, when a single person is the sole owner of a property. Which of the following is not one of the four land use controls? Police power Intestate Escheat Eminent domain - answer>>Intestate The four public land use controls in real estate are: police power, escheat, eminent domain, and taxation. Intestate is a person who died without making a will. What is the general purpose for cities to require building permits? Permit fees are income for the city Control the amount of building allowed To supersede deed restrictions To require a minimum level of construction standards - answer>>To require a minimum level of construction standards Construction standards are placed to maintain the safety and well-being of the public. The interest rate banks charge to their preferred customers is called: The graduated rate The preferred rate The prime rate The priority rate - answer>>The prime rate The prime rate is the rate the banks charge their preferred customers for loans. The city of Brownwood plans to build a new water treatment facility, but the land that is required is privately owned. Eminent domain allows the city to: Take possession with no compensation to the property owner Do nothing, the city does not own the land Ask the property owner to donate Take possession against the owner's wishes, but the owner must be compensated - answer>>Take possession against the owner's wishes, but the owner must be compensated Eminent domain allows the government to take possession of privately owned land for use by the public even at the objection of the owner as long as the property owner receives compensation. When the appraised value of a property is given, it is based on: Comparable sales A lower purchase price None of these An exact determination of market value - answer>>Comparable sales Agent Brook is preparing for a listing appointment and has gathered information to prepare a report of recent market data for the seller to review. The report agents reconcile to obtain a reasonable list price for a property based on current listings, recent sales, and expireds would be called: Comparable marketing analytics (CMA) Broker price opinion (BPO) Comparative market analysis (CMA) Agent market analysis (AMA) - answer>>Comparative market analysis (CMA) Paul owns an older residential property in an area now zoned for commercial use. Paul decides to renovate the home into a laundry mat. The change in the properties functionality for Paul's financial gain is an example of: Highest and best use Substitution The prices will decline over time The prices will remain stable The prices will decline swiftly The prices will increase - answer>>The prices will increase The principle of supply and demand control property values. Homeowner Paul is selling his home without a real estate agent. He places an advertisement stating "Owner Financing 3% down payment." Is Paul's advertisement in violation of the Truth in Lending Act? Yes, when a down-payment is listed, there must be a price listed also Yes, all the terms of the owner financing are not disclosed No, property owners are not regulated by TRIL advertising requirements Yes, the ad contains trigger terms - answer>>No, property owners are not regulated by TRIL advertising requirements The Truth in Lending Act and Regulation Z regulates the terms used in lending advertisements by lenders. Property owners are exempt from the advertising requirements when selling their property. Which one of the following loan types does not require a down-payment? VA loan Conventional loan Bridge loan FHA loan - answer>>VA loan Loans are backed up by the Department of Veterans Affairs are offered to qualifying veterans and do not require the veterans to pay a down-payment. Discount points are a way lenders are able to charge prepaid interest in order to lower the interest rate over the life of the loan. What is the cost of the discount points based on? The down-payment required The appraised property value The loan amount The sales price - answer>>The loan amount Discount points charged on all loan types are figured as a percentage of the loan amount. One discount point is equal to 1% of the loan amount. FHA loans require that borrowers provide protection to the lender in case of loan default. What must the borrower pay for to provide this protection to the lender? Credit life insurance Homeowner's insurance Mortgage insurance premium Title insurance - answer>>Mortgage insurance premium UFMIP: one-time fee paid at the end of closing or can be added to the loan amount. (upfront) MIP: amount is based on the loan term, loan-to-loan ratio, and the initial loan amount. (annually) Fair housing regulations apply not only to real estate agents but also lenders. When a lender denies a mortgage application solely based on the racial demographics of the neighborhood the property is located in, the lender is guilty of: Steering Redlining Mortgage fraud Panic selling - answer>>Redlining Lenders are to base credit decisions on the borrower's creditworthiness. Redlining is a violation of the Fair Housing Act. Terry received a conventional 30 year loan to purchase his home. Thanks to some large extra payments Terry will have his home paid for in only 17 years. Which of the following loan terms could charge Terry an extra fee for paying off the home so soon? Interest fee Escalation clause Subordination clause Prepayment penalty - answer>>Prepayment penalty Mark is not able to make his entire mortgage payment on time each month and has fallen behind on payments. Because of his failure to pay, his lender, ABC Home Loans sent him a notice that they are calling for the remaining mortgage balance to be paid in full in one lump sum immediately. This is an example of a(n): Judicial foreclosure Subordination clause Acceleration clause The duty of obedience requires the agent to obey the wishes of the principal as long as they are not unethical or illegal. Melissa went on a listing appointment and the sellers were asking legal questions. Questions she felt certain she knew the answers to, what should Melissa do? Suggest they seek legal counsel Answer the questions Tell them she will find out and get back to them Tell them she doesn't know for sure - answer>>Suggest they seek legal counsel An agent can never give legal advice without a license to do so, nor deter customers or clients from seeking legal counsel. Agent Terry convinces an owner to list his property way under market value. Terry sells the property to his brother Mark without disclosing the relationship to the buyer in writing. Mark turns around and sells the property for a profit to split with Terry. This is an example of: Wholesaling Creative agency Stealing Self dealing - answer>>Self dealing Self dealing is an intentional misrepresentation of an agent's relationship and interest in a transation. Agent Paula found a buyer for her listing, the seller accepted the buyer's offer, and both parties received copies of the contract documents. The seller decides one week prior to closing they no longer want to sell the home. What could happen? Paula's broker owes her a commission The buyer owes Paula commission Paula did not earn a commission The seller owes Paula commission - answer>>The seller owes Paula commission When an agent brings a ready, willing, and able buyer and a seller accepts the buyer's offer, the agent has essentially earned their commission. The seller is to pay the agent if the contract is terminated due to the seller's default. Larry listed his home for sale with an agent. The property was exposed to an open and free market and after a reasonable time the property sold to a buyer unrelated to Larry. This type of sale would be considered: Fair market value Sale under duress Arm's length transaction None of the above - answer>>Arm's length transaction How is real estate defined? Land and all items within the improvements Land including water, air, and improvements Property sold between buyers and sellers Commercial property, but not residential - answer>>Land including water, air, and improvements A fence that extends onto the land of another from a neighboring property is called an: Encumbrance Easement Encroachment Escheat - answer>>Encroachment Marvin owns an easement to use the driveway of his neighbor Bob. Marvin's property is considered the: Servient estate Life estate Dominant estate Freehold estate - answer>>Dominant estate The property that benefits from an easement to another parcel. Which of the following best describes the economic characteristics of land? Demand, utility, scarcity, transferability, situs Scarcity, situs, immobility, utility, demand Situs, transferability, demand, immobility Indestructibility, demand, non-homogenous, situs - answer>>Demand, utility, scarcity, transferability, situs There are five economic characteristics of land and the lack of any of these characteristics reduces the land's utility and value. Mary and Mark are buying their first home, which as built just 3 years ago. After touring the property which seems to be in good repair, they waive their right to a home inspection. After closing and moving in, they find that some of the duct work in the crawl space has fallen and is no longer attached causing the air to be released under the home. They are upset that the seller did not mention this issue and when asked, the seller states they had no idea that had happened. Is the seller at fault for not disclosing this issue to the buyers? Yes, the seller should disclose all issues No, the seller had no knowledge of the issue Yes, the seller must provide a home inspection report Yes, the seller should pay for the repairs - answer>>No, the seller had no knowledge of the issue A seller's disclosure is not a warranty that the home is free of issues. The seller can only disclose what they are aware of. The buyer has the responsibility of doing their due diligence in order to discover any unknown issues outside of those disclosed. Leslie is showing her listing to some prospective buyer customers. Leslie grew up just down the road and knows this property was once used as a dumpsite many years ago. Does Leslie have to make the prospective buyers aware of this information since they are customers and not clients? No, the seller is responsible for disclosures No, they are not clients Yes, the agent must disclose No, buyers are responsible for inspections - answer>>Yes, the agent must disclose Agents owe clients and customers alike the disclosure of any possible environmental hazards. Johnny's home is under contract and the prospective buyers had a home inspection. The inspection noted some roof issues which Johnny was not previously aware of. The buyers provided Johnny with a copy of the inspection and an inspection notice terminating the sales contract. What should Johnny do going forward? Drop the price drastically Update the seller's disclosure to include the roof issues Make any future buyers aware of the roof issues if they ask He must repair the roof prior to sale - answer>>Update the seller's disclosure to include the roof issues A seller must disclose any issues with the property or repairs needed which they are aware of. Once the home inspection revealed a roof repair is needed, the seller's disclosure should be updated to reflect the newfound knowledge prior to new prospective buyers receiving the disclosure. Disclosure law specifics vary by state, however, in which type of transaction would the seller's property disclosure generally not be required? Residential arm's length transaction Triplex purchase Residential foreclosure Mobile home purchase - answer>>Residential foreclosure A foreclosure sale is exempt from the seller's disclosure requirements due to the seller being the lender with little to no knowledge of the properties specifics. A listing agreement in writing creates which form of agency? Negligent agency Implied agency Express agency Ostensible agency - answer>>Express agency A written listing agreement creates an expressed agency. The agency relationship is expressed in writing. In compliance with fair housing regulations, any deed restriction or covenant that would prohibit the conveyance of the property to a member of a protected class is: Legal Is not legal, considered void and unenforceable Will stand in court Valid - answer>>Is not legal, considered void and unenforceable A fiduciary who holds or controls property for the benefit of another is called: A beneficiary A grantor A trustee A grantee - answer>>A trustee A contract between two parties both giving a promise for a promise is called a: Unilateral contract Bilateral contract Special agreement The requirements of a valid contract includes: competent parties, legal purpose, voluntary good faith, mutual consent, and valuable consideration. In a real estate transaction when someone is forced into a contract by intimidation or some other type of coercion, it is called: Bullying Duress Stress Strong arming - answer>>Duress A contract that does not have all the necessary elements of a contract is: Valid Void Enforceable by insinuation Legally binding - answer>>Void A contract that does not have all the necessary elements of a contract is void and unenforceable by either party. LeAnn entered into a contract that called for $1000 in monetary damages if the contract was breached. The $1000 in the contract is referred to as: Retainer fee Breach fine Liquidated damages Lis penden - answer>>Liquidated damages After the offer and acceptance, when the terms of a contract are in the process of being completed, and prior to closing, the contract is said to be: Executory Amended Rescinded Lis penden - answer>>Executory When the terms of a contract are in the process of being completed. What type of an appraisal license is required to appraise a commercial strip mall valued at $700,000? Certified general license Retail appraisal license Certified residential license Residential real estate license - answer>>Certified general license Property taxes are described as "ad valorem" taxes. "Ad Valorem" most nearly means: Replacement value According to value Market value Reproduction value - answer>>According to value In order to comply with the regulations of the state Housing Law, a person should seek the issuance of a building permit from: The California Department of Real Estate The local Department of Building and Safety The nearest office of the Department of Housing and Community Development The California Department of Urban Renewal - answer>>The local Department of Building and Safety One of the main benefits of a sale-leaseback transaction would be: You can get the deposit back with no objection You have the option to lease the property back after the termination of the lease The ability of the seller to deduct all of his future rent payments as business expenditures The ability to maintain the book value of the new buyer - answer>>The ability of the seller to deduct all of his future rent payments as business expenditures. In a Sale-Leaseback, the seller becomes a tenant., thus allowing the seller to deduct all of his future rent payments as business expenditures. Mortgage: 2 party Trust deed: 3 party - answer>> When a lender loans a borrower 100% of the purchase price of a house, and the loan is not government- related, the lender would be best protected by: A low interest rate The usual listing contract authorizes a broker to: Convey the real property that is the subject of the listing Find a purchaser and bind his principal to a contract to sell Assure a prospective purchaser that an offer meeting the terms of the listing will be accepted by his principal Find a purchaser and accept a deposit with an offer to purchase - answer>>Find a purchaser and accept a deposit with an offer to purchase. An appraiser's narrative appraisal report of a single-family residence probably would contain no reference to: A special studies zone map The neighborhood amenities The appraiser's qualifications A buyer's financing - answer>>A buyer's financing The narrative appraisal report does not contain the buyer's financial condition because how you pay for the property is not relevant to the value of the property itself. The unit of comparison when using the market data approach to appraise single-family residence, is the: Capitalization rate Square foot Cubic foot Entire property - answer>>Entire property Which of the following approaches to value estimate tends to set the upper limits of value? Replacement Income Comparable sales Market comparison - answer>>Replacement Cost (replacement) approach is the process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the replacement cost of the building, less depreciation. When a situation is such that damages would not provide an adequate remedy (like for a breach of contract), a suit for specific performance could be successfully brought by all of the following except: The seller of a condo One of the principals being represented by an attorney-in-fact A licensed real estate broker acting as agent for the principals The buyer of an income property - answer>>A licensed real estate broker acting as agent for the principals. Suits for specific performance are a remedy provided by a court that orders the losing side to perform its part of a contract instead of paying monetary damages to the winner. In real estate, brokers cannot sue for specific performance. Less-than-freehold estates consist of estates held by: Optionees Trustees Lessees Grantees - answer>>Lessees If five people own property as joint tenants, And one of the owner dies, his heirs become tenants in common with the surviving co-owners They need to not own equal interest in the property Each co-owner has a separate legal title to his undivided interest There is still only one title to the whole property - answer>>There is still only one title to the whole property. Joint tenancy = TTIP (unity of time, title, interest, possession) No matter how many joint tenants are there, there is still only one title to the entire property. Each tenant must hold an equal interest in the property. An increase in the availability of money would lead to which effect? Interest rates would not be affected due to RESPA guidelines Interest rates would go down Interest rates would go up Interest rates would not be affected due to truth in lending - answer>>Interest rates would go down. Allison has just qualified for her salesperson's license. How much time does she have to file her application to practice? 2 years from the date she passed the exam 1 year from the date she passed the exam Illegal purpose Fraud - answer>>Illegal purpose A contract that has no legal effectiveness. A contract that has an illegal purpose is simple void. For federal income tax purposes, a taxpayer could adjust the cost basis of his personal residence for which of the following? Interest on a loan The addition of a concrete patio Fire insurance premiums paid Economic obsolescence - answer>>The addition of a concrete patio You do not factor in mortgage payments in this calculation. Henry made an offer to purchase real property. However, he died of a heart attack before the listing broker could notify him of an unqualified, signed acceptance by the seller. Based on these facts, which of the following is true? Notification to the administrator or executor would bind the estate The death of Henry constituted a revocation of the offer The offer and acceptance constitute an enforceable contract The sale would not be binding because the deed was not delivered before Henry's death - answer>>The death of Henry constituted a revocation of the offer. Since Henry died before acceptance had been communicated, there was never a valid contract. Land zoned for use as the site for a multifamily residential developments (such as apartment buildings) would be denoted as: M-3 R-3 C-3 A-3 - answer>>R-3 Multifamily residential development is zoned as R-3. Although a title insurance policy does cover the risk of loss for many reasons, which of the following risks is not covered in a title insurance policy? A document in the series of records is forged Failure of husband or wife to sign the deed An unpaid city tax not shown in the policy A zoning ordinance, regulation or plan - answer>>A zoning ordinance, regulation or plan According to the Department of Real Estate regulations, it would be considered commingling if a broker: Deposits funds received from two different individual buyers into the same trust account Deposits into the trust fund account a renter's check for the security deposit on an income property the broker owns Leaves funds owed to him as commissions in his trust fund account for three weeks Deposits $200 of his own money into the trust account to cover bank fees on that account - answer>>Deposits into the trust fund account a renter's check for the security deposit on an income property the broker owns. Commingling is when a real estate broker mixes client or customer funds with a broker's personal funds in the same account. The position of a building on its site in relationship to its surroundings is normally referred to as its: Topography Orientation Elevation Plottage - answer>>Orientation A contract in which all parties have fulfilled their promises is a(n): Completed contract Expired contract Executory contract Executed contract - answer>>Executed contract According to the Truth-in-Lending Act, consumers must be informed of credit terms by: The trustee Escrow The broker The lender - answer>>The lender In Financing, the "secondary market" refers to the place where: Conventional loans are originated Secondary financing may be obtained FHA loans are originated Existing loans are bought and sold - answer>>Existing loans are bought and sold. Real property taxes become a lien on: February 1st July 1st January 1st November 1st - answer>>January 1st Next year's real property taxes become a lien on January 1st. When must all the listings in an office be renegotiated? If the couple gets divorced If there are multiple offers If the broker dies A listing can never be renegotiated - answer>>If the broker dies. When an owner is selling his or her home, to whom would they most likely give a copy of a structural pest control report? To the buyer if requested To the brokers or salespeople representing potential buyers To the escrow company Their broker at the time of listing - answer>>To the buyer if requested. Structural pest inspections and reports are not required by law. When requested, the reports must be delivered by the seller or listing agent before closing. Sara is a newly licensed broker and has just opened her own office. How long must she keep transaction records? 3 years 2 years 4 years 1 year - answer>>3 years This includes not only closing documents, but trust fund information. all listings, all deposit slips and cancelled checks... and all documents executed by Sara in connection with her real estate practice.Own Ownership of an undivided interest in land with no right of survivorship is found in: Tenants in common Joint tenancy Fee simple defeasible estates Severalty - answer>>Tenants in common When selling a business, real estate brokers need to know that the term "successor's liability" involves certain obligations to the: Department of corporations Internal revenue service State board of equalization Bureau of real estate - answer>>State board of equalization The term "successor's liability" refers to the purchaser's liability for the sales tax collected by the previous owner but not remitted to the state. David wants to use the GRM to find the value of the property. What data does David need to obtain from comparable properties to accurately calculate a GRM? Annual rent and the selling price Net income and selling price Net income and the capitalization rate Original cost and the annual income - answer>>Annual rent and the selling price. The gross rent multiplier (GRM) is calculated by dividing the monthly or annual gross rent into the selling price of the property. Personal income taxes are structured using rates that are: Regressive Progressive Equal A license An option An easement The lease - answer>>A license Procuring cause would not be required in order for a broker to receive a commission in a(n): Open listing Net listing Exclusive right to sell listing Exclusive agency listing - answer>>Exclusive right to sell listing It is an agreement in which a real estate agent has the sole right to sell a specified property, usually within 3 months. During this period, the seller cannot list the property with any other agent and must pay the agent's commission even if he or she (and not the agent) finds a buyer. An unlicensed personal assistant working for a licensed broker may do which of the following activities? Host open houses Write ads and submit them to the newspaper and online approved by the broker Write up an offer for a buyer and then have the broker sign the contract later Email brokers weekly updates to the broker's clients - answer>>Write ads and submit them to the newspaper and online approved by the broker. The rest of the activities are licensed activities. An exclusive agency listing guarantees the broker his commission: If the broker finds a buyer for the property If the seller sells the property If the property changes ownership for any reason Only if the sale price exceeds the listed price - answer>>If the broker finds a buyer for the property. Which activity requires a real estate license? An MLS providing listing information to members A resident manager who collects rent on behalf of a building owner A service that, for a fee, matches individuals who want to buy and sell properties An executor selling a decedent's building - answer>>A service that, for a fee, matches individuals who want to buy and sell properties. A balloon payment is usually associated with a: Variable mortgage that varies with the cost of living index Blanket mortgage Large payment during the term or at the end of the payment schedule Package mortgage - answer>>Large payment during the term or at the end of the payment schedule. Which of these is an example of external obsolescence? Vacant, abandoned, and run-down buildings in an area Numerous pillars supporting the ceiling in a store Coal cellar in a house with central heating Leaks in the roof of a warehouse, making the premises unusable and therefore unrentable - answer>>Vacant, abandoned, and run-down buildings in an area It's not about whether the house is outdated or not, but rather something outside of the home that is causing a lower value. It's usually something that cannot be cured. The word "improvement" would refer to all if the following except: A sanitary sewer system Streets The foundation Trade fixtures - answer>>Trade fixtures In the cost approach to value, the appraiser makes use of the: Sales price of similar buildings in the area Estimated current replacement cost of the building Owner's original cost of the building Assessed value of the building - answer>>Estimated current replacement cost of the building The price a buyer should pay for a piece of property should equal the cost to build an equivalent building. An appraiser is typically paid: A fee agreed upon after the appraisal is completed