California Real Estate Salesperson Exam Preparation: Pre-Test Questions and Answers, Exams of Real Estate Management

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California Real Estate Salesperson Exam

Preparation Pre-Test Questions and Answers

Respectively.

A 'commercial acre' is best defined as - Correct Answer-An acre after deductions for streets and alleys. A join tenancy can be created by deeds conveying undivided interest in which of the following? - Correct Answer-(all of the following) By transfer from a wife deeding her seperate property to herself and her husband as joint tenants, By transfer from joint tenants in common deeding to themselves as joint tenants, By transfer from tenants in common deeding to themselves as joint tenants. The personal revocable and unassignable permission or authority to do one or more acts on the land of another without possessing any interest therein is the definition of - Correct Answer-easement Police power is a govermental right and might result in - Correct Answer-zoning standards Which of the following distinguishes a mechanics lien from a judgement lien? - Correct Answer-Mechanics liens are created by statute The customary procedure used to enforce private restrictions on real property is - Correct Answer-an injunction One who takes title in severalty most generally takes title - Correct Answer-in joint tenancy All of the following are true regarding an appertenant easement EXCEPT: - Correct Answer-TRUE: There must be at least two tracts of land under separate ownership.

The easement would run with the land The dominant tenement would benefit and the servient tenement would be burdened FALSE: The dominant tenement must abut the servient tenement at the border All of the following can sue for specific performance EXCEPT - Correct Answer-CAN: an attorney in fact CANNOT: A broker acting as an agent for the principal A broker used the following language in a listing contract "blah blah broker will use diligence in procuring a purchaser" This is best described as? - Correct Answer-Nesc. for a bilateral contract. Since the listing agreement means the broker gets a piece of the sale, he must agree to something as well to make it bilateral and not unilateral. Robert Smith Signed an offer and gave the personal check made payable to an escrow company as a deposit. He stipulated that the broker was to hold the check until the seller accepted his offer. The listing agreement specified that any deposit money must be in the form of a cashiers check made payable to the seller. Under theses circumstances the broker should - Correct Answer-Submit the offer and hold the check Which of the following decided the amount of commission received from the sale of property of a decreased person? - Correct Answer-Court order Land value is estimated whenever possible on the basis of: - Correct Answer-Sale price of comparable sites An appraiser wants to appraise a property unsing comparable sales prices of similar homes. Adjustments for the difference between the home and the comparables will be made by adjusting - Correct Answer-comparables - to - subject property A lot contained a structure of no value and was appraised for highest and best use. The appraiser would - Correct Answer-Appraise the value of the land and deduct the cost of demolition

Which of the following would an appraiser use in appraising a residence built in 1910 - Correct Answer-Todays cost of reproduction In the appraisal of a property, the principle of substitution would apply to - Correct Answer- ALL: The sales comparison approach The cost approach The income approach Which of the following words placed in a promissory note would commit all the borrowers for payment? - Correct Answer-Jointly and severally In real estate finance, the beneficiary statement refers to the - Correct Answer-Amount of principal due on a loan When refering to real estate finance, the term 'impounds' most nearly means - Correct Answer-Reserves From the lender's point of view, the most significant factor concerning a purchase money first mortgage is that it takes priority over - Correct Answer-a liens against a purchaser at the time of purchase The Real Estate Settlement Procedures Act RESPA applies to certain federally related loans secured by liens on owner-occupied on to four-unit dwellings. Which is federally related under RESPA? - Correct Answer-A lender whose deposits are insured by a federal agency In accordance with RESPA, when must the lender supply the borrower with a uniform settlement statement (HUD-1)? - Correct Answer-At or before closing In setting up a lease schedule under a blanket encumbrance, the beneficiary will usually require a disproportionate amount of money to release a particular lot - Correct Answer- ALL To have better security on the remaining lots Because the best lots usually sell first To protect the investment as individual lots are sold

A tenant who transfers an entire leasehold interest does so by - Correct Answer- Assignment (transfer of rights) The buyer and seller sign escrow instructions that the broker takes to the escrow agent. The escrow agent discovers discrepancies between the escrow instructions and the purchase contract. What happens? - Correct Answer-The escrow instructions generally prevail because it is the most recent document Which of the following would most likely be short rated in escrow - Correct Answer- Insurance All of the following are subject to property taxes except - Correct Answer-IS NOT: Intangible personal property A broker advertises that is a seller lists a property with him he will credit the seller $ towards commission to be paid. The ad also states that a buyer can bring the ad in and will get $50 in escrow to be applied to the purchase price of the property. Is the broker subject to discipline by the real estate commissioner with regard to this advertisement? - Correct Answer-The broker may pay the $50 to the buyer and seller A developer would use backfill to - Correct Answer-replace excavated earth Under which circumstances may a broker fill out the seller's TDS? - Correct Answer-Never The maximum amount that may be recovered from the Real Estate Fund (recovery account) against one broker is? Per transaction? - Correct Answer-$100,000 per broker, $20,000 per transaction Harris, an unlicensed person, wanted to purchase 300 acres of land for $85,000 from Stevens, who intended to subdivide the property in the future. Harris did not have the moneyfor the purchase and convinced a firend, williams, to purcase the property. Harris immeadilty entered into a land sales contract with williams to purchase the property for 98,000. Is this legit? - Correct Answer-The original purchase and subsequent sale are both valid.

A broker refers all clients and customers to west hills title insurance company. The title company give the broker $10 fee for each referral the practice is: - Correct Answer- Forbidden A broker sells a house, and a loan for the buyer is secured through a savings and loan association. The broker carefully explains all loan costs to the buyers. According to RESPA, which of the following is true? - Correct Answer-The lender must provide the buyer with an estimate of settlement costs within three days. According to RESPA, who must provide the buyer with what, within how soon of the home being sold and the buyer securing financing? - Correct Answer-The lender must provide the buyer an estimate of settlement costs within three days. Under the Truth in Lending Act, the three day right of recession begins with which of the following events, if they occurred on different days in the sequence stated. - Correct Answer-the date the note is signed A real estate broker is most likely to recieve a commission from both parties when involved in: - Correct Answer-A tax-free exchange Brewer wants to purchase a home but is denied financing because of an agency's credit report. Brewer has repeatedly tried to get a copy of of this report, but the agency refuses to give it to him. Brewer can bring action under the california civil code to: - Correct Answer- DO ANY OR ALL OF THESE: Recover enough money to compensate him for damage to his credit Recover attorney's fees and equitable damages Recover punitive damages up to 5K To manage properties for the general public, one must be - Correct Answer-A licensed broker An agent is guilty of a fraudulent misrepresentation when - Correct Answer-ALL OF THESE: The representation was material and inconsistant with fact the misrepresentation was given with knowledge of trust the misrepresentation caused the purchaser to enter into a contracts

The objective of Subdivided Lands Law is to protect purchasers of property in new subdivisions from fraud, misrepresentation, or deceit in the marketing of subdivided lots, parcels, units, and undivided interests in the state of California. An owner of land wants to subdivide his property what is the minimum number of parcels he has to create in order to fall under the subdivided lands law? - Correct Answer-Five A broker negotiated a loan for a client. The beneficiary did not specifically instruct the broker to record. The broker is obligated the record: - Correct Answer-Before the funds are disbursed Which of the following might be used as a security device to encumber real property - Correct Answer-ANY OF THESE: Mortgage Deed of trust Land contract If the defense of the statute of frauds were raised, a licensee would be able unable to enforce collection of a commission if the liscensee - Correct Answer-Exchanges real property with verbal authorization only What are the necessary elements for the formation of a contract? - Correct Answer-Offer, Acceptance, and Consideration Before the purchaser is advised of the seller's acceptance of an offer, the purchaser can withdraw his offer: - Correct Answer-For any reason The remedy of unlawful detainer is MOST commonly used by the offended - Correct Answer-Lessors A lease based on gross income of the lessee is a - Correct Answer-Percentage lease A contract signed under duress would be - Correct Answer-voidable Smith signed an offer to buy Brown's property and gave the offer to the broker. The broker took the offer to Brown who signed Smith's offer, giving an unqualified acceptance of it. Before the broker could be deliver the accepted offer to Smith, Smith died of a heart

attack. What happens to the offer? - Correct Answer-Smith's death worked a revocation of the offer. When an existing contract is replaced by an entirely new contract, this is an act of - Correct Answer-Novation A voidable contract is valid until rescinded by original party - Correct Answer-TRUE Executed vs Executory - Correct Answer-ED - COMPLETED ORY - ONE OR MORE PARTIES STILL OUTSTANDING Addendum vs Amendment - Correct Answer-Amendment:change to contract Addendum: addition to contract Statuate of limitations for contracts - Correct Answer-Two years for oral four for written Promissory Note - Correct Answer-1. Evidence of Debt

2. Secured by mortgage or trust
3. negotiatble instrument that is considered personal property Two party fiancial instrument - Correct Answer-Mortgage Three party financial instrument. Who are the parties!? - Correct Answer-Deed of trust/trust deed Borrower - Trustor Lender - Beneficiary Third Party - Trustee When a trust note is paid, the trustee records what to release the lien? - Correct Answer- Deed of reconveyence Two types of foreclosure - Correct Answer-Trustee's sale for deed trusts Judicial foreclosure aka equitable action for mortgages

Agency by estoppel - Correct Answer-Created when a third party is led to believe an agency exists An agent owes a principal/client - Correct Answer-OLD CAR Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care and skill Does a listing have to be in writing? - Correct Answer-Yes