California Real Estate Practice Exam #2: Multiple Choice Questions and Answers, Exams of Real Estate Management

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California Real Estate Practice Exam #2 Questions with Complete

Solutions.

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
5. 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

22.Licensee A has out-of-town relatives come to visit and he shows them several listings. He ends up helping them rent a property with an option to purchase. He should make a disclosure to: (A) The listing agent; (B) The listing broker; (C) The seller; (D) All of the above and his relatives - Correct Answer c

23. If a private property owner's property was damaged by public works in the area, in order to recover any financial loss, he might initiate an action called: (A) A counter- condemnation; (B) Reverse escheat; (C) Inverse condemnation; (D) None of the above - Correct Answer c
24. Who is best qualified to make a quarterly inspection of income property: (A) Property owner (B) Property manager; (C) Property maintenance contractor; (D) Resident manager - Correct Answer b

If a broker keeps records electronically, he must keep the records for: years; (A) 5 years; (B) 3 years; (C) 7years; (D) 1 year - Correct Answer b

26. Agent Joanne, in showing a home to prospective buyers, assures them that the bedroom remodeling was done with the proper building permits, and that the entire roof was replaced at that time. The buyers believe her, and therefore make a full-price offer, which was accepted. When Joanne reads the Transfer Disclosure Statement, she discovers that the remodeling job was done without a permit, and only the roof over the new area is new. She does not give the buyers the Transfer Disclosure Statement, or tell them of the new information. Her conduct would best be described as: (A) Beneficial conduct, since she is shielding her buyers from disturbing information; (B) Unlawful conduct; (C) Unethical conduct; (D) Acceptable conduct - Correct Answer b
27. A broker advertises properties through the World Wide Web. Rules exist making it mandatory for the broker to do which of the following things: (A) Return all messages promptly; (B) Employ only real estate licensees to respond to queries; © Exercise proper supervision over non-licensees responding to queries; (D) None of the above - Correct Answer b
28. A man granted his neighbor an unlocated easement across his property for ingress and egress. When the neighbor sells his property, the new owner can use the easement: (A) No, because the easement is not adequately described; (B) Yes, the easement does

not need to be described; (C) Only if it is an easement in gross; (D) No, because an easement cannot be granted in a deed - Correct Answer b

29. When a buyer signs an exclusive authorization to acquire a property there is usually a clause in the form which allows the broker to: (A) Incur expenses on behalf of the buyer; (B) Collect a commission whether a property is found or not; (C) Act exclusively for that buyer and no other buyer during the time limits the agreement; (D) Represent other buyers during the time limits of of the agreement - Correct Answer d
30. If the trust account contains trust funds belonging to more than one beneficiary, the broker may not disburse any funds without the prior written consent of every principal who has funds in the account: (A) such disbursal will reduce the balance the total funds to an amount less than the If of in the account various owners have on deposit; (B) Except to pay a deposit to escrow; (C) Unless disbursement is for the purpose of refunding an earnest money deposit to an offeror; (D) Except when disbursement will be used to close a transaction of the broker - Correct Answer a
31. In the eyes of the Real Estate Commissioner, any individual employed as a salesperson by a licensed real estate broker IS considered to be: (A) An independent contractor; (B) An employee; (C) A special agent; (D) A sub-agent - Correct Answer b
32. Broker Jones receives a 3% deposit from a buyer for the purchase of a house. He also receives appraisal and credit report fees for another client. In addition, he receives rent money on an apartment building which he manages for a client. With regard to these funds: (A) He can put everything IS one trust account; (B) He must have a 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

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
45. 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

broker and that he and his associates are officers in ABC Corporation, as this information would be considered a material fact; (D) Broker Cordera does not have to disclose that he and his associates are officers of ABC as long has he waives his commission - Correct Answer c

59. When a buyer of a residence, after signing a valid agreement of sale, asks the broker for permission to move into the property before the sale closes, the broker should: (A) Deny the permission; (B) Grant the buyer oral permission; (C) Have the buyer sign a temporary lease for the property; (D) Obtain written consent from the owner - Correct Answer d
60. When a real estate broker is servicing a loan by collecting payments for the lender, how long may the real estate broker keep the payments in the trust account before dispersing the money to the lender: (A) 10 days; (B) 14 days; (C) 25 days; (D) 60 days - Correct Answer c
61. Which of the following are implied warranties on a grant deed: (A) The grantor is the owner of the property; (B) The grantor has not already conveyed title; © encumbrances placed on the title by the grantor; (D) Both (B) and © The grantor has disclosed all - Correct Answer d
62. Assume that you are a real estate licensee who has just shown several houses to young married couple. Together you find "just the right place for them." However, even with the best loan available. the down payment seems to be beyond their means. Conversing between themselves, the young couple speculates that they could obtain a loan on various personal items including their car and in this way, be able to come up with the down payment. They seek your advice. Which of the following would probably be a synopsis of a proper response: (A) Advise against the purchase; (B) Indicate that the decision is up to them but point out the pitfalls of their proposed financing; (c) Encourage them wholeheartedly because this is the property they want; (D) Inform them that inflationary trends will undoubtedly increase the value of their interest in the property - Correct Answer b
63. An ad should state: (A) Broker or agent; (B) Broker, Bureau Department of Real Estate license number; (C) Name of Broker or Company name; (D) Salesperson, if he is paying for the ad - Correct Answer b
64. The function of mortgage companies, which play an important role in present-day real estate financing, could best be described as: (A) Acquiring mortgages in the secondary market from lenders who originate them and expecting to hold such mortgages to

maturity; (B) Offering a lot of short-term credit, performing many supplemental functions in the area of finance and limiting their loans to the amount of money held in time deposits; (C) Participating in the money market basically as correspondents for other lenders, originating and servicing loans but not intending to hold them in their own portfolio; (D) Desiring to promote savings by paying high interest on deposits, and acquiring large volumes of real estate mortgages - Correct Answer c

65. The term abrogation in relation to a contract means: (A) The rescission of annulling of the contract; (B) revocation or repealing of the contract by mutual consent by parties to the contract; (C) The The revocation by either party for cause; (D) All of the above - Correct Answer d
66. of the A developer received a loan that covers five parcels of real estate and provides for the release mortgage lien on each parcel when certain payments are made on the loan. This type of loan arrangement is called a: (A) Purchase-money loan; (B) Blanket loan; (C) Package loan; (D) Wraparound loan - Correct Answer b
67. A real estate broker negotiated the exchange of real property and represented both parties with their knowledge and consent. The principals agreed that the broker's 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

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 permission of the broker; (C) The seller may revoke the contract with a phone call; (D) The seller may revoke the contract with a certified letter and notice - Correct Answer d

the seller; (B) The broker would not be entitled to compensation since escrow had not opened and the transaction had not closed; (C) The broker has good legal basis for a commission claim; (D) The broker could probably void the truncation which the seller made with the all-cash buyer - Correct Answer c

96. The federal Equal Credit Opportunity Act allows lenders to discriminate against potential borrower's on the basis of: (A) Race; (B) Sex; (C) Dependence on public assistance; (D) Amount of income - Correct Answer d
97. Kevin still has five months remaining on a one-year apartment lease. When Kevin moves to another city, he transfers possession of the apartment to Linda for the entire remaining term of the lease. Linda pays rent directly to Kevin. In this situation, Kevin has become a(n): (A) Assignor; (B) Sublessor; (C) Sublessee; (D) Lessor - Correct Answer b
98. When lender on a graduated payment mortgage is making disclosures that are required under the Truth-in-Lending law, concerning advertising, he must disclose the: (A) Lender's name; (B) Broker's name; (C) Property location; (D) Different monthly payments

• Correct Answer d

99. What would transfer possession of a property without transferring ownership to the property? (A) A trust deed; (B) Sublease; (C) Land contract; (D) Mortgage - Correct Answer b
100. An owner of property which was located near an airport was constantly bothered by the noise of low flying aircraft. He wanted to bring a court suit and force the city to condemn the property because of the noise. This would be an example of: (A) Condemnation; (B) Inverse condemnation; (C) Escheat; (D) Eminent domain - Correct Answer b
101. Which of the following statements is true concerning escrow procedures: (A) A broker can hold an escrow for compensation for other parties when he has no interest in the transaction; (B) When the escrow requirements have been met, the escrow agency changes from a dual agency to a separate agency; (C) When the escrow holder is in possession of a binding contract between the buyer and seller, it is said to be a complete escrow; (D) The escrow officer acts as an arbitrator of arguments between the buyer and seller - Correct Answer b
102. A deed has a provision regarding racial and religious discrimination. The deed may be changed: (A) If the restrictions are discriminatory or offensive; (B) If the restrictions are

pre-1978; (C) If a title company agrees the wording is discriminatory or offensive; (D) By court action - Correct Answer a

103. Financial institutions prefer loans that are low risk. If there is no down payment, what would be the best way for the lender to guarantee himself against loss in the event of a default on the loan; (A) Low interest rate; (B) Increase in property value; (C) Low monthly payment; (D) None of the above - Correct Answer b
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 10 6. 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
106. 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
107. 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
108. 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

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
129. The provisions of the Subdivision Map Act are enforced by the: (A) Real Estate Commissioner; (B) State Contractor's License Board; (C) Planning Commission; (D) State Land Commissioner - Correct Answer c
130. As to ethics, the best guidelines to determine if an action is ethical will be found in which of the following? (A) The "Realtor's Golden Rule;" (B) The Business and Professions Code; (C) The conduct of other real estate agents in your office; (D) What is in the best interest of the real estate licensee. - Correct Answer b
131. One of the principal purposes of "RESPA" (Real Estate Settlement Procedures Act) is: (A) To fix the settlement costs in all real estate transactions; (B) To fix the prices of settlement costs on residential property built for 1 - to- 4 families; (C) To provide the prospective buyer the opportunity to shop for settlement services; (D) To standardize closing settlement services in all parts of the country - Correct Answer c