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The owner of an undivided interest in land with no right of survivorship owns the land as: - correct answer ✅A Tenant-In-Common Able sold six unencumbered properties to Baker. Part of the purchase price is a loan made by Able that is secured by a deed of trust on the six properties. This document is a/an: - correct answer ✅Blanket Encumbrance A property is not listed for sale. A person who wants the property executes an offer to purchase it through a real estate agent and gives the broker a $5,000 check as a deposit. The broker: - correct answer ✅Can accept the check as the exclusive agent of the buyer A buyer agrees to sell alcoholic beverages on the property being acquired. This fact is noted in the deed granting buyer title to the property. The buyer has: - correct answer ✅Taken title to the property as fee simple with condition subsequent
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A person delegated in an instrument to act legally for another, in his stead, is known as which of the following: - correct answer ✅Attorney In Fact When a loan is full amortized by equal monthly payments of principle and interest the amount applied to principle: - correct answer ✅Increases while the interest payment decreases A land owner may have riparian rights if: - correct answer ✅The land borders on a river or stream Mortgage interest rates usually decrease when: - correct answer ✅The supply of mortgage money increase substantially A city recently rezoned a section of the town changing its lawful use for new development from commercial to residential use. This type of change would be known as: - correct answer ✅Downzoning Mr. and Mrs. Johnson who had been shopping for a new home found one that they liked very much but because they felt the
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When a loan is obtained to purchase real property and a note and trust deed is executed the party that furnishes the funds is the: - correct answer ✅Beneficiary Sherman gives a quitclaim deed to Warner for a parcel of real property. Warner does not record the deed. In this situation: - correct answer ✅The deed is valid as between Sherman and Warner but invalid as to subsequent recorded interests without notice. The difference between an easement and a license is: - correct answer ✅A license can be revoked. When an Abstract of Judgment is recorded it becomes: - correct answer ✅A general lien on all non-exempt real property in the county where recorded. Which of the following is real property: - correct answer ✅Stock in a mutual water company Under which of the following circumstances would a broker be liable to a buyer? When the broker: -
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correct answer ✅Accepts a deposit from the buyer and loses it but is not authorized to accept a deposit under the listing agreement. When a broker misrepresents his principals property to a buyer, he could cause his principal to be subject to:
- Any of the answers are true
- A court action for damages by the buyer
- Civil responsibility for compensating the buyer for misrepresentation of the broker.
- A rescission of the sale by the buyer - correct answer ✅Any of the answers are true. The city acquires land for public use by public dedication. The grantor may have the land returned to him if: - correct answer ✅The city sells a portion of the land to a developer. A mortgage which by its terms provides that it secures the amount of the initial loan together with any sums later loaned to the mortgagor by the mortgagee is known as: - correct answer ✅An open ended mortgage
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the following, which types of property must comply with RESPA: - correct answer ✅One-to-four family residential dwellings The mortgage loan which permits borrowing additional funds at a later date is called a/an: - correct answer ✅Open end mortgage A Real Estate Salesperson may: - correct answer ✅Only conduct business as an employee of a broker. Which of the following estates includes the characteristic of indefinite duration: - correct answer ✅Estate of inheritance "Section" describes an area of land equal to: - correct answer ✅One Square Mile The customary procedure used to enforce private property restrictions on real property is: - correct answer ✅An injunction.
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Which of the following describes an executed contract? - correct answer ✅Both parties have completely performed When the sheriff has been directed to seize the property of a defendant as security for legal action, it is known as: - correct answer ✅A writ of execution Contracts are voidable for some reasons. However, a voidable contract is binding on the parties until it is: - correct answer ✅Rescinded The Martins sold their long term residence and sustained a loss of $30,000. With regard to this loss, for federal income tax purposes, the Martins: - correct answer ✅Cannot deduct any of the loss (Loss on the sale of a personal residence is not deductible.) Baker sold 640 acres of land to Garcia by agreement and deed which provided, Seller retains rights to all minerals and materials of the earth under this land. Shortly thereafter, while Garcia was preparing his land for cultivation, Baker appeared with oil drilling
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A beneficiary statement is often required in the closing of an escrow in the sale of a real property. This is a statement: - correct answer ✅Issued by a lender indicating the balance due on a loan The following is not classified as real property: - correct answer ✅Leasehold estate in residential property To effect a 1031 exchange that would have no tax consequences for one party, that party would want to exchange his or her property for a property with: - correct answer ✅A higher value and a higher mortgage Harris and Davis, 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 Davis. Shortly thereafter, Harris died, with the debt still unpaid. Which of the following would be true? - correct answer ✅Davis would own all of the property free and clear of the encumbrance
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When a transaction takes place for the sale of a business. On which of the following would a sales tax be charged? - correct answer ✅Furniture and/or Fixtures Insofar as a residential neighborhood is concerned, which of the following would offer the least protection against blighting influences on future development: - correct answer ✅Partially built-up neighborhood Prescription" differs from "adverse possession" in the following way: - correct answer ✅Prescription creates a non-possesory interest. A sheriff's deed is used to: - correct answer ✅To convey title of property which has been foreclosed upon. Mr. Oswald is purchasing a piece of real property. Which of the following would most affect the value? - correct answer ✅Area in which the property is located
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Under the bulk sale provisions of Division 6 of the Uniform Commercial Code, the publishing and recording requirements are intended to alert which of the following about the intended transfer: - correct answer ✅Creditor If the owner of real property carries proper fire insurance coverage, that insurance policy will protect the owner in the event of loss. In such a case, the insured: - correct answer ✅Should neither gain nor lose Seller Adams tells broker Burns, at the time the listing is taken, that his roof leaks. Since it is summer, broker Burns fails to mention this to buyer Cole. During the first winter, the roof leaks and buyer Cole sues both broker Burns and seller Adams. Who is liable? - correct answer ✅Both broker Burns and seller Adams Which of the following is a disadvantage for the buyer under a land contract: - correct answer ✅• All of the answers are true.
- Transfer of vendees interest may be restricted.
- Financial institutions consider land contracts poor collateral.
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- In the event seller dies during the contract term, buyer may have to litigate to obtain clear title. Comparing an installment note to a straight note, the straight note will have: - correct answer ✅No principal payments during the term of the loan except on the last payment Three of the following real estate terms are closely associated. Which term does not belong with the group? - correct answer ✅Abstract An individual purchased a 9 acre parcel of unimproved property. He then subdivided the 9 acres into 1 acre parcels. If the subdivider plans to sell only 3 one acre parcels per year over the next 3 years, he must comply with: - correct answer ✅The State Subdivision Map Act and The State Subdivided Lands Act A prepaid rental listing agent is required to do all of the following, except: -
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The liquidity of a business refers to the ratio between: - correct answer ✅Current assets to current liabilities. (Liquidity refers to the cash position of a business; it would be best described by deducting the current liability from the current assets. The difference would be cash available immediately.) If the city acquires land for public streets by dedication, the grantor may seek to have the land returned to him if: - correct answer ✅The conveyed easement has been abandoned by the city The recording of a deed: - correct answer ✅Raises a presumption of delivery 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 brokers responsibility to third parties, the broker: - correct answer ✅Must be fair and honest.
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In California, the standard form (or standard coverage) policy of title insurance for real property insures against loss from: - correct answer ✅Forgery in the chain of recorded title Which of the following is most like an abstract of title: - correct answer ✅Title search Which of the following loans (assuming each loan consists of monthly payments) is exempt from the Truth-in-Lending Law? - correct answer ✅An Agricultural Loan The following is not a test for a fixture: - correct answer ✅Cost of the item The acronym that represents the element of value is: - correct answer ✅DUST A single man sells real property which he owns. After the contract is signed, escrow has closed and the deed is recorded, the title company discovers that the man is under 18 years of age. The transaction is: - correct answer ✅Void
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In the event of an improvement contract which of the following would apply to a Oil & Gas subdivision: - correct answer ✅Only the county in which the property is located has any control An increase in unemployment within a city has caused an overall decrease in income of the residents. As a result of these conditions, values of homes in the area are also decreasing. This reduction in value would be classified as: - correct answer ✅Economic obsolescence. Which of the following is generally not recognized as a test for a fixture: - correct answer ✅The time when it was installed on the property The case of Easton v. Strassburger expanded which of the following real estate policies? - correct answer ✅Disclosure of all known material facts regarding the physical condition of the property (The Easton v. Strassburger case resulted in the requirement that the seller provide the buyer with a "Real Estate Transfer Disclosure Statement".)
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The presence of radon gas is detected by: - correct answer ✅Testing the air in enclosed spaces An unlicensed friend negotiates the sale of Irons home and is paid a portion of the selling price for his help. The party that would prosecute Irons friend is the: - correct answer ✅Local District Attorney A person unable to take an oath, would take or do which of the following? - correct answer ✅An affirmation. What is the proper form that gives managers the authority to manage apartments? - correct answer ✅Property management agreement Broker Angela uses a "standard" form of listing agreement that is sold by real estate publishing companies. On each form, Angela crosses out the mediation and arbitration clauses. This conduct is: - correct answer ✅Lawful
