California Real Estate Exam Questions and Answers (Latest Update 2023), Exams of Nursing

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(Latest Update 2023)

In reference to Property Taxes, "basis" or "cost" is - correct answers ✅Purchase price of prop plus cost of improvements. How is a condominium unit owned? - correct answers ✅Separate interest How are common interests in a condo owned? - correct answers ✅Equally in undivided interest Subdivided Land Laws refer to - correct answers ✅Subdivisions of 5+ parcels on 160 acres, regulated marketing & financing, and requires disclosures in public report. How long is a disclosure in public report for Subdivided Land Laws good for?

• correct answers ✅5 Years When does a tax year run? - correct answers ✅July 1-June 30 Legally combining smaller, adjacent parcels of land to form a larger parcel. - correct answers ✅Plottage or assemblage

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Separating large parcels into smaller lots - correct answers ✅Subdividing or separating Amount or size of land being increased by natural forces such as deposits by wind or water. - correct answers ✅Accretion Gradual uncovering of land previously covered by water such as when a stream changes course. - correct answers ✅Reliction The Statute of Limitations in the state of California allows how long to take action? - correct answers ✅4 years The process by which the court may seize real or personal property as security for a satisfaction of monetary judgement. - correct answers ✅Attachment When is a 20-day preliminary notice of a mechanics lien need to be issued? - correct answers ✅20-days after the claimant (contractor) has first furnished labor, services, equipment, or materials.

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What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant? - correct answers ✅To inform concerned parties that the property may be subject to liens arising out of contract. What is the brokers relationship to the customer? - correct answers ✅The broker is the agent to the customer (customer employs the broker). What is the agents (salesperson) relationship to the broker? - correct answers ✅The salesperson is the agent to the broker (the broker gives the salesperson authority to act on his/her behalf). A Home Equity Line of Credit is - correct answers ✅An Open Ended Mortgage An Open Ended Mortgage is - correct answers ✅A type of note that permits the borrower to obtain more money at a future date under the same deed of trust. Zoning is an example of - correct answers ✅Police power

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Local jurisdictions have the authority to divide land into districts and impose land use regulations to promote health, safety, and welfare of the public-- this is known as - correct answers ✅Zoning When can restrictions placed on a deed be removed? - correct answers ✅Never What is the only restriction placed on a deed that is considered illegal? - correct answers ✅Race restrictions Is an option contract bilateral or unilateral? - correct answers ✅Unilateral What does an option contract NOT do? - correct answers ✅Create a legal interest in a property If a buyer has defaulted on on an original land contract which had been recorded, this would result in a defective title, requiring legal action to clear the title. This is called - correct answers ✅a Quiet Title Action.

(Latest Update 2023)

A promise is also known as a - correct answers ✅Covenant A court action is mandatory to evict a delinquent tenant. This process is called - correct answers ✅Unlawful Detainer A verbal contract is considered - correct answers ✅Valid California Statute of Frauds require a real estate agreement to be - correct answers ✅In writing What kind of listing agreement offers a listing broker to receive a commission regardless of who is the "procuring" cause? Is also considered the greatest protection for the agent. - correct answers ✅Exclusive right to sell What does a deed NOT need to be considered valid? - correct answers ✅A date

(Latest Update 2023)

A valid deed must have 3 components - correct answers ✅Be in writing, be signed by the grantor, and delivered to the grantee For a deed to be recorded, it must - correct answers ✅Be acknowledged (notarized) A chattel - correct answers ✅Is most accurately described as personal property Which is NOT corporeal property? A fee simple estate, a leasehold, an easement, or a fixture? - correct answers ✅An easement What is a visible or tangible right in real estate such as the right of occupancy under a lease? - correct answers ✅Corporeal What time of estate does one hold when it along exists with you for the duration of your life or someone else's life? - correct answers ✅Life Estate

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When the recipient of a life estate dies, who is the person that it is willed to after their death? - correct answers ✅A remainderman Which of the following is not REAL property? A fee simple estate, a leasehold for indefinite duration, lumber, or a life estate. - correct answers ✅Lumber Real estate is defined as - correct answers ✅Land and all permanent attachments An item of personalty that is affixed to realty so as to be used as a part of it is - correct answers ✅A fixture An estate of uncertain duration is - correct answers ✅A freehold estate Which is NOT considered a permanent attachment to land? Anything growing on it, fixtures, chattels, and anything built upon the land. - correct answers ✅Chattels

(Latest Update 2023)

What is a chattel? - correct answers ✅Personal property--including autos and household goods and fixtures. A person who has some rights to use land, but not all possessory rights, is said to have - correct answers ✅An interest in land A person who has permission to use land, but has no other rights, has - correct answers ✅License to use A person who receives title to land by virtue of having used and occupied it for a certain period of time, without actually paying the previous owner for it, received title by - correct answers ✅Adverse possession Dying without a will is called - correct answers ✅Intestate Dying WITH a will is called - correct answers ✅Testate A person who owns an undivided interest in land with at least one other, and has the right of survivorship, is said to be a - correct answers ✅Joint tenant

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Tenancy in severalty refers to - correct answers ✅Ownership by one person only Community property includes - correct answers ✅Property acquired during a marriage with the husband's earnings from his job. The right to use the property of another for a SPECIFIC purpose is - correct answers ✅An easement The process whereby a person holding claim against property can have the property sold to pay the claim is - correct answers ✅Foreclosure A person who appears to own property, but does not, is said to have - correct answers ✅Color of title Title that cannot be impeached by its records - correct answers ✅Good title

(Latest Update 2023)

Two people who own undivided interests in the same realty, with right of survivorship have - correct answers ✅Joint tenancy A fee simple estate is - correct answers ✅A freehold estate Which of the following is considered a permanent attachment to land? Improvements to land, a fixture, trees growing on the land, or all of the above. - correct answers ✅All of the above A person who has some rights to land, but not all the possessory rights, has - correct answers ✅An interest in land A person who has color of title to land has - correct answers ✅The appearance of title A life estate pur autre vie is one in which - correct answers ✅The duration of the life estate is based on the duration of the life of someone other than the life tenant.

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Is a lease for one month considered real property? - correct answers ✅No Adverse possession may establish - correct answers ✅A claim to title Fifty feet of land was added to Apple's farm because a river changed its course. This is an example of - correct answers ✅Accretion Accretion - correct answers ✅An increase in land resulting from the deposit of soil by the water. Fifty feet of beachfront land was removed by a flood. This is an example of - correct answers ✅Avulsion Avulsion - correct answers ✅A sudden and perceptible loss of land by the action of water as by a sudden change in the course of a river. If someone dies without a will, who is appointed to settle the estate? - correct answers ✅Administrator

(Latest Update 2023)

As used in real estate practices, the land of a riparian owner borders on - correct answers ✅A river, a stream, or a watercourse Community property is property owned by - correct answers ✅husband and wife A person holding title to real property in severalty would most likely have - correct answers ✅A sole ownership A joint ownership of real property by two or more persons, each of whom has an undivided interest (not necessarily equal( without right of survivorship, is - correct answers ✅A tenancy in common Taking of private land by governmental bodies for public use is governed by due process of law and is accomplished through - correct answers ✅Eminent domain Governmental land use playing and zoning are important examples of - correct answers ✅Police power

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The covenant of quiet enjoyment most directly relates to - correct answers ✅Possession of real property An interest in real property may be acquired by prescription or by adverse possession. The interest resulting from prescription is - correct answers ✅The right to use another's land A contract whereby a group of neighboring landowners agree to do or not to do a certain thing as to mutually benefit all, is - correct answers ✅Restrictive covenant Claims against the owner of a property are - correct answers ✅Liens A legal process whereby a person holding a legal claim against a property may have the court order the property to be sold so as to provide funds to pay the claim - correct answers ✅Foreclosure Land records, including deeds, liens, restrictions, some leases, and contracts of sale may be viewed by whom? - correct answers ✅Anyone, they are public records

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How much must the government pay a private party for their property when using eminent domain? - correct answers ✅Fair market value If a landowner is reluctant or refuses to negotiate with the government in eminent domain, the government will - correct answers ✅Condemn the effected land A legal process whereby the owner is dispossessed of the property and must leave - correct answers ✅Condemnation A process whereby land for which no legal owner exists reverts to government which then can dispose of it or use it as it sees fit. - correct answers ✅Escheat Escheat most commonly occurs when - correct answers ✅Someone dies intestate and no legal heirs can be found. What kind of agent is a real estate broker? - correct answers ✅Special agent

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What is required of an agent with respect to his principal? - correct answers ✅To be loyal, act in person, and act in the principal's best interests. A listing contract that says the broker will receive a commission no matter who sells the property is called - correct answers ✅An exclusive-right-to-sell listing Does making an offer terminate an agency agreement? - correct answers ✅No What are three things that will terminate an agency agreement? - correct answers ✅Death of the broker or principle (not salesperson), resignation of the agent, and destruction of the subject matter. To prove a right to a commission broker must show - correct answers ✅That they were licensed throughout the transaction, that they had a contract of employment, and that they were the "efficient and procuring cause" of the sale.

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A listing in which the broker's commission is the amount by which the sale price exceeds the agreed-upon net price the seller desires - correct answers ✅Net listing Are net listings legal? - correct answers ✅They are legal, but frowned upon. Among other things, the principal is obligated to - correct answers ✅compensate the agent for their services. A real estate agent may represent the buyer if the buyer-broker agency is disclosed to - correct answers ✅All parties A special agent is one - correct answers ✅Whose powers are limited to certain specific functions. Among other things, an agent is obligated to - correct answers ✅Keep an accurate account of all money he receives on behalf of the principal.

(Latest Update 2023)

Selling agent representing only the buyer - correct answers ✅Is illegal in the state of California. When must the agency disclosure form be executed? - correct answers ✅Upon first contact with a potential seller or buyer. The rate of commission on a real estate sale in California is - correct answers ✅Negotiable between the broker and seller. As a general rule, escrow money received by the broker pending a closing - correct answers ✅Is deposited immediately in the broker's trust account. An unlicensed employee of a broker who prepares an advertisement to sell a house - correct answers ✅Must have the broker's written approval. Copies of all listings, deposit receipts, canceled checks, and trust records must be retained by a licensed real estate broker for - correct answers ✅ 3 Years

(Latest Update 2023)

If the broker, while acting as agent in a sale of real property on which he holds an option should notify the purchaser that he is acting as - correct answers ✅A principal The maximum commission a broker may charge a seller for the sale of residential income property is - correct answers ✅Negotiable The position of trust assumed by the broker as an agent for a principal is descried most accurately as - correct answers ✅A fiduciary relationship The Agency Relationship Disclosure Law became effective in - correct answers ✅ 1988 A licensee's license must be - correct answers ✅Available for examination in the broker's office. A person must be licensed if she is to sell - correct answers ✅Property belonging to clients who pay her a commission.

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A broker must place funds belonging to others in - correct answers ✅A trust, or escrow, account, or with an escrow agent. True or False. License laws forbid soliciting for listings before one is licensed - correct answers ✅True True or False. A licensee's license can be revoked for intentionally misleading someone into signing a contract that she ordinarily would not sign. - correct answers ✅True Real estate licenses, once received are good for how long? - correct answers ✅Four years unless renewed A broker's unlicensed secretary may - correct answers ✅Refer interested clients to the broker or her employed licensees. May a broker may use escrow moneys held on behalf of others for collateral for business loans, for collateral for person loans, and to make salary advances to licensees in his employ? - correct answers ✅No

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In order to do business, a licensee must - correct answers ✅Make proper application for a license, pass a licensing examination, and have a license issued by the appropriate state agency. True or false. A licensee can lose his license for paying a commission to a non licensed person. - correct answers ✅True True or False. A licensee can lose her license for selling property quickly, at low prices and buying property for her own use from her principal. - correct answers ✅False Is a resident manager of an apartment project required to have a real estate license? - correct answers ✅No True or false. A licensed salesperson must be under the supervision of a broker, can collect commission payments only from his broker, and must have his license help by his employing broker. - correct answers ✅True Does a person need a real estate license to sell property belonging to a trust for which he is trustee? - correct answers ✅No

(Latest Update 2023)

True or false. A person who is employed to lease property, but not sell it must be licensed, may be paid a salary or commission, is an agent. - correct answers ✅True How often are California license renewal fees are paid? - correct answers ✅Every 4 years True or false. In California buyer-broker agency must be disclosed, disclosure of the broker-seller agency must be made to buyers. - correct answers ✅True True or false.Licensees must pay fees for Transferring employ to another broker, fingerprinting, and reactivating an inactive license. - correct answers ✅True The California real estate licensing laws are part of the - correct answers ✅Business and Professions Code Payment from the Recovery Account for any single transaction is limited to a total of - correct answers ✅$20,000

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A California Real Estate license is good for negotiating - correct answers ✅Anywhere in the state of California, the sale of any kind of real property, and the sale of property outside of California, if negotiation occurs inside California. A licensed salesperson may act independently (that is, not in the employ of a broker) - correct answers ✅To sell her own house, provided all parties know she hols a license. Including the real estate commission, how may members of the advisory commission are there? - correct answers ✅ 11 How many days do you and your new broker have to modify DRE when you change employing brokers? - correct answers ✅5 days Ttoal Recovery Account payments for one licensee (multiple transactions) is limited to - correct answers ✅$100,000

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For how long after a transaction is concluded must a broker keep his other records for a transaction? - correct answers ✅3 years A real estate salesperson's commission is - correct answers ✅Paid by the broker A qualified license applicant's name appears on a delinquent child support list. The applicant - correct answers ✅May receive a temporary 150-day license. Why must a broker maintain a trust fund account in addition to a regular business account? - correct answers ✅The possible consequences should a legal action be taken against the broker. A California real estate license is good only in - correct answers ✅The state of California When a salesperson transfers license, the new broker must advise the DRE within - correct answers ✅5 days

(Latest Update 2023)

If the California Real Estate Commissioner needs legal advice, he would go to the - correct answers ✅California Association of REALTORS After one becomes a broker, the most appropriate term for that person is - correct answers ✅Broker After one's real estate license expires, there is a grace period of _____ to renew, upon paying fees, without a reexamination requirement. - correct answers ✅2 years A broker must keep records for ___ years. - correct answers ✅3 years An unlicensed person who practices real estate may be - correct answers ✅Fined up to $10,000 and subject to other possible legal action. A contact in which an owner of real estate employs a broker for the purpose of finding a buyer for the real estate is a - correct answers ✅Listing

(Latest Update 2023)

A contract in which property is transferred from one person to another is a - correct answers ✅Deed The two parties to a lease contract are the - correct answers ✅Lessor and lessee The requirement that all parties to the contract have an understanding of the conditions and stipulations of the agreement is - correct answers ✅Reality of consent, offer and acceptance, and meeting of the minds. Consideration that has value only to the person receiving it is - correct answers ✅Good consideration A person who is too young to be help to a contractual arrangement is called - correct answers ✅Incompetent One who is otherwise incompetent to make a contact may be bound to contracts for - correct answers ✅Necessaries