California Real Estate Principles: Multiple Choice Questions and Answers, Exams of Real Estate Management

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California Real Estate Principles - Questions and

Answers.

(1) 1. The Real Estate Law is found in the a. Licensing Code b. Business and Professions Code c. Health and Safety Code d. Corporations Code - Correct Answer Business and Professions Code (1) 2. The Real Estate Commissioner reports to the a. California Bureau of Real Estate b. governor c. Real Estate Advisory Commission d. legislature - Correct Answer governor (1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is? a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer acceptable (1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is? a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer prohibited (1) 5. A real estate business that is a partnership can have more than one office location, provided a. a broker partner obtains an additional license for each location b. all partners are real estate licensees c. there is a designated broker-officer d. there is at least one partner at each location - Correct Answer a broker partner obtains an additional license for each location (1) 6. The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by the?

a. Business Opportunity Code b. Commercial Transfer Law c. Uniform Commercial Code d. Real Estate Law - Correct Answer Uniform Commercial Code (1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd a. did not need a real estate license for the deal b. should have had a real estate license c. is exempt from licensing requirements d. None of these - Correct Answer should have had a real estate license (1) 8. If a real estate license is NOT renewed before it expires, the licensee? a. is allowed to complete transactions in progress b. is allowed to finish transactions that are substantially complete c. must cease all real estate activities d. may act under authority of another agent's license for a period not to exceed 60 days

• Correct Answer must cease all real estate activities (1) 9. A real estate licensee can offer a mobile home for sale that is? a. in a manufacturing plant, ready for delivery b. transportable under an exemption from the vehicle code c. presold d. in a location where it can legally remain for one year - Correct Answer in a location where it can legally remain for one year (1) 10. The Browns desperately want to move to Pine Bend, and they like the Smith House, which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can persuade the Smith's to accept the Brown offer on their house, and the Browns send an expensive food basket to Bob as a sign of their good faith. Bob neglects to mention this to the Smiths. This practice is a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer prohibited (1) 11. Broker Bob routinely places earnest money deposits in his personal account for overnight safekeeping. This practice is a. acceptable b. mandated

c. discouraged d. prohibited - Correct Answer prohibited (1) 17. The Anderson house is for sale following the murder of Mrs. Anderson by Mr. Anderson in the breakfast room six months earlier. Salesperson Sam, showing an out- of-town prospect through the house, decides to keep information about the murder to himself. Sam's conduct is a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer prohibited (1) 18. Broker Luis is so busy that he never has the time to return the phone calls of his principals. He prefers to spend his time in the field making sales and acquiring new listings. This practice is a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer discouraged (1) 19. After attending a get-rich-quick real estate seminar, Kim wants to buy a house cheap. She tells broker Bob she will offer $50,000, with seller financing and no down payment, on the Henderson house. The Henderson house has an asking price of $125,000. Bob presents the offer with one of his own for $85,000, telling the Hendersons that the expected market conditions make their asking price unrealistic. His conduct is a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer prohibited (1) 20. Rudy opens his brokerage office and immediately places an ad in the local newspaper: List Your House with Me and I Will Pay You $500 at closing. This practice is a. acceptable b. mandated c. discouraged d. prohibited - Correct Answer acceptable (2) 1. During the days of the Spanish rule, all land was owned by the a. missions b. government

c. crown d. conquistadors - Correct Answer crown (2) 2. The Treaty of Guadalupe Hidalgo ended a. the gold rush b. Spanish rule c. the war with Mexico d. the missions - Correct Answer the war with Mexico (2) 3. Real Estate Law, which relies on court decisions as well as legislation, is based on a. Spanish civil law b. French civil law c. the right of appropriation d. English common law - Correct Answer English common law (2) 4. Land disputes over the Spanish and Mexican land grants were settled by a. the Board of Land Commissioners b. the State of California c. the Spanish legal code d. taking all land for public use - Correct Answer the Board of Land Commissioners (2) 5. In California, the term real estate is synonymous with a. land b. fixtures c. real property d. personal property - Correct Answer real property (2) 6. Real property is NOT a. land b. real estate c. appurtenances to land d. movable - Correct Answer movable (2) 7. The sale of the real property generally is governed by the laws of a. the state where the real property is located b. the state where the owner of the real property resides c. any of the states d. the federal government - Correct Answer the state where the real property is located

a. 1 b. 2 c. 3 d. 4 - Correct Answer 3 (2) 15. A township consists of how many sections a. 12 b. 18 c. 4 d. 3 6 - Correct Answer 36 (2) 16. A section is a. 640 acres b. six square miles c. 5,000 feet by 5,000 feet d. three leagues - Correct Answer 640 acres (2) 17. Section 6 lies in what direction from section 1 of a township a. North b. South c. East d. West - Correct Answer West (2) 18. Section 22 lies in what direction from section 17 of a township a. Northeast b. Northwest c. Southeast d. Southwest - Correct Answer Southeast (2) 19. Land described as the South 1/2 of the N 1/2 of Section 18 contains how many acres? a. 80 b. 120 c. 160 d. 320 - Correct Answer 160 (2) 20. The point of beginning is used in a. the rectangular survey system b. the metes and bounds system c. the lot and block system

d. all legal descriptions - Correct Answer the metes and bounds system (3) 1. A fee simple estate and life estate are a. freehold estates b. fee simple estates c. leasehold estates d. estates of tenancy - Correct Answer freehold estates (3) 2. The highest form of ownership is the a. life estate b. real estate syndicate c. fee simple absolute d. estate at will - Correct Answer fee simple absolute (3) 3. Victor and Karen are not married but together own community property because they are a. brother and sister b. joint tenants c. registered domestic partners d. holders of a life estate - Correct Answer registered domestic partners (3) 4. A fee simple estate that may be lost when some act is performed is a a. life estate b. fees simple absolute c. remainder d. fee simple on condition subsequent - Correct Answer fee simple on condition subsequent (3) 5. A fee simple estate that has no conditions is a a. life estate b. remainder c. fee simple on condition subsequent d. fee simple absolute - Correct Answer fee simple absolute (3) 6. If Greenacre is deeded by Lou to Mary for Mary's life, Mary has a. a life estate b. an estate in remainder c. an estate in reversion d. no interest - Correct Answer a life estate

d. the probate court will have to sell Blackacre and distribute the proceeds to Mark and Jacquie - Correct Answer Mark will be sole owner of Blackacre (3) 13. Three joint tenants share interest in a property. If one joint tenant's share is sold using the proper legal formalities, the new owner will then be a a. joint tenant with the other joint tenant's b. tenant in common with the other joint tenants c. tenant at sufferance d. remainderman - Correct Answer tenant in common with the other joint tenants (3) 14. Community property is a. all property acquired by a spouse or registered domestic partner b. all property acquired by the husband during marriage c. the only form of ownership during marriage d. all property acquired by a spouse or registered domestic partner that is not separate property - Correct Answer all property acquired by a spouse or registered domestic partner that is not separate property (3) 15. One of the forms of concurrent ownership is a. ownership in severalty b. tenancy in partnership c. sole proprietorship d. separate ownership - Correct Answer tenancy in partnership (3) 16. A partner has a. an absolute right to use partnership property b. the right to assign partnership property c. the right to convey partnership property by will d. the right to possession of partnership property for partnership purposes - Correct Answer the right to possession of partnership property for partnership purposes (3) 17. Absolute control, as well as absolute liability, belongs to a a. sole proprietor b. corporate shareholder c. limited partner d. trustee - Correct Answer sole proprietor (3) 18. When doing business in California, a corporation chartered in California is a a. domestic corporation b. foreign corporation

c. real estate investment trust d. general partnership - Correct Answer domestic corporation (3) 19. Title to a spouse's marital property can be transferred upon death by use of a(n) a. oral will b. tenancy in common c. living trust d. letter of intent - Correct Answer living trust (3) 20. A limited partner is a. responsible for partnership activities b. a general partner in some instances c. not liable for partnership debts beyond the amount invested d. required to take part in partnership business - Correct Answer not liable for partnership debts beyond the amount invested (4) 1. A person who dies without a will dies a. testate b. intestate c. with an executor d. in eminent domain - Correct Answer intestate (4) 2. The testator names a(n) a. executor or executrix b. testator c. devisor d. administrator - Correct Answer executor or executrix (4) 3. Someone who receives real property by will is called a a. devise b. devisee c. testator d. codicil - Correct Answer devisee (4) 4. A typewritten will must be a. made by a competent b. signed by the testator c. witnessed d. all - Correct Answer made by a competent person, signed by the testator and witnessed

a. After 1 year b. After 3 years c. After 5 years d. After 10 years - Correct Answer After 5 years (4) 12. Elena's friend Carl, who was a prior owner of a piece of property, gave her a phony deed to the property in question. Elena, who does not know the deed is phony, has a. a worthless document b. color of title c. a good title d. to share title with Mike - Correct Answer color of title (4) 13. The right to travel over the property of someone else is a. an easement b. equitable estoppel c. a fixture d. statutory dedication by deed - Correct Answer an easement (4) 14. A cotenant who wants property that is co-owned to be sold would bring a(n) a. foreclosure action b. action for declaratory relief c. action to quiet title d. partition action - Correct Answer partition action (4) 15. In the event of default, real property may be sold without court action if the mortgage or other lien contains a a. trust deed b. power of sale c. tax deed d. right of entry - Correct Answer power of sale (4) 16. The court order following a judgment for money is a a. certificate of sale b. special limitation c. writ of execution d. trustee in bankruptcy - Correct Answer writ of execution (4) 17. The power of the state to take private property for public use is called

a. eminent domain b. equitable estoppel c. a public grant d. abandonment - Correct Answer eminent domain (4) 18. To be effective, a deed must be a. made on a printed form b. signed by the grantor c. delivered to the grantee by the grantor personally d. all of these - Correct Answer signed by the grantor (4) 19. The transfer of title from grantor to grantee, and from that grantee to a subsequent grantee, and so on, is called a. a cloud on the title b. the chain of title c. delivery and acceptance d. an acknowledgment - Correct Answer the chain of title (4) 20. Legal title conveyed by a deed of trust may be regained by a a. warranty deed b. trust deed c. reconveyance deed d. sheriff's deed - Correct Answer reconveyance deed What power of the state allows it to license real estate agents? - Correct Answer police power A fictitious name is any name than that of a? - Correct Answer real estate licensee What is DBA? - Correct Answer doing business as A form which is unique to the entity that created it is called? - Correct Answer proprietary Wording that is dictated by law is called? - Correct Answer statutory language A mobile home dealer license is obtained from the? - Correct Answer Department of Housing and Community Development (HCD) A mortgage loan originator (MLO) must register annually on the? - Correct Answer Nationwide Mortgage Licensing System & Registry (NMLS)

How many square miles in a section? - Correct Answer 1 How many acres are in a section? - Correct Answer 640 Townships run north-south in groups called? - Correct Answer tiers Townships run east-west in groups called? - Correct Answer ranges The sections composing a township are numbered starting in what corner of the township. - Correct Answer northeast One acre contains how many square feet? - Correct Answer 43, One mile is how may feet long? - Correct Answer 5, How many feet in a rod? - Correct Answer 16. One league is how many miles? - Correct Answer 3 One furlong is how many rods? - Correct Answer 40 A subdivision map may also be referred to as a? - Correct Answer plat map What type of fixture remains the personal property of a business? - Correct Answer trade fixture An interest in property is called an? - Correct Answer estate If the right of possession is restricted in some way, it is a fee simple subject to a? - Correct Answer power of termination If the right of possession returns to the original property owner when a life estate ends, the original owner has a? - Correct Answer reversion If the right of possession goes to a third person when the life estate ends, that person has a? - Correct Answer remainder Who holds an estate in remainder during the existence of the life estate and a fee simple estate on termination of the life estate? - Correct Answer remainderman The holder of a life estate is called the? - Correct Answer life tenant Is a life tenant responsible for mortgage interest? - Correct Answer yes Those who rent or lease property from landlords are called? - Correct Answer tenants

A conveyance of real estate is called a? - Correct Answer grant The person (the owner) conveying the property is the? - Correct Answer grantor The person receiving property conveyed to them is the? - Correct Answer grantee Advising someone on how to take title has tax consequences. Such advice should come from? - Correct Answer attorney or CPA What are the 4 unities of joint tenancy? (TTIP) - Correct Answer time, title, interest and possession Can real estate agent give advice on how to acquire title? - Correct Answer No Property that was a married persons separate property before marriage remains separate property after marriage. - Correct Answer Yes As of July 1, 2001, spouses can take title to property as community property with right of survivorship. Yes/No - Correct Answer Yes Any California real estate acquired by an out-of-state married person that would have been considered community property if it had been acquired by a resident of California is called? - Correct Answer Quasi-Community Property Any California real estate acquired in exchange for real or personal property located anywhere, when the California real estate would have been considered community property if it had been acquired by a California resident is called? - Correct Answer Quasi-Community Property Property owned by the partnership is actually owned by the individual partners as a? - Correct Answer tenancy in partnership A partner's right in property owned by the partnership can be community property? Yes/No - Correct Answer No All partners are liable for debts of the partnership. Yes/No - Correct Answer Yes The owners of a corporation are called? - Correct Answer shareholders A nonprofit corporation is owned by? - Correct Answer members Corporations created in the state where they are chartered are called? - Correct Answer domestic corporations

How many witnesses must be present for a witnessed will? - Correct Answer 2 The court appointed person named to act of behalf of the decedent? - Correct Answer administrator The decedent's representative named in a will? - Correct Answer executor The process by which rainfall wears away the surface of the soil is called? - Correct Answer errosion Want are the 3 ways to acquire property by using it without the owner's permission? - Correct Answer adverse possession, prescription and abandonment What are the 5 steps to acquire property by adverse possession? (ONCHA) - Correct Answer open, notorious, continuous, hostile and adverse If you buy real estate at an execution sale, you will receive a? - Correct Answer sheriff's deed What are the 7 requirements for a valid deed? - Correct Answer (1) in writing (2) description of parties (3) grantor legally capable (4) adequate description of PIQ (5) granting clause (6) signed by grantor (7) delivered and accepted Is it a legal requirement that a deed be dated? - Correct Answer No, but advised Are love and affection the only consideration needed for a valid deed? - Correct Answer Yes A document is executed when it is? - Correct Answer signed The only form of deed that conveys after acquired title is a? - Correct Answer grant deed In order for a deed to be recorded it must be? - Correct Answer acknowledged A person who dies without a will dies? - Correct Answer intestate The testator names a(an)? - Correct Answer executor or executrix Someone who receives real property by will is called a? - Correct Answer devisee (5) 1. A cloud on the title is? a. not important b. easily remedied c. no impediment to a property sale

d. a possible impediment to a property sale - Correct Answer a possible impediment to a property sale (5) 2. A mechanics lien may be filed by a a. laborer b. tenant c. advertiser d. customer - Correct Answer laborer (5) 4. When required, preliminary notice of intent to file a mechanic's lien should be given a. 90 days after notice of completion b. 60 days after notice of completion c. within 10 days of the starting time d. within 20 days of the starting time - Correct Answer within 20 days of the starting time (5) 5. A notice of cessation is appropriate a. when work has stopped for 30 days b. when an improvement is complete c. at any time after the work is substantially completed d. after work has stopped for any number of days - Correct Answer when work has been stopped for 30 days (5) 6. A notice of completion should be filed within a. 20 days after completion of the work of improvement b. 10 days after completion of the work of improvement c. 20 days after work stops d. 10 days after supplies have been received - Correct Answer 10 days after completion of the work of improvement (5) 7. Generally, the action to enforce a mechanic's lien claim must be filed within how many days after the lien is recorded a. 30 b. 60 c. 90 d. 120 - Correct Answer 90 days (5) 8. If unauthorized work is being done, a property owner can a. file a preliminary notice b. file a notice of cessation