Real Estate 101 - Real Estate Principles » Fall 2021 » Final Exam
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Question #1
Zoning is under the control of:
A.
government agencies.
B.
private parties.
C.
the Bureau of Real Estate.
D.
none of the above.
Question #2
A contract that is binding and enforceable in a court of law is said to be:
A.
valid.
B.
proprietary.
C.
proprietary and illusory
D.
illusory.
Question #3
Escrows base monthly prorations on how many days?
A.
31
B.
30
C.
28
D.
29
Question #4
The area of a rectangular lot that is 50 feet wide by 100 feet deep is:
A.
5,000 sq. ft.
B.
2,500 sq. ft.
C.
50,000 sq. ft.
D.
500 sq. ft.
Question #5
For about how much assessed value is the Homeowner’s Property Tax Exemption?
A.
$200
B.
$2,000
C.
$1,000
D.
$7,000
Question #6
Misuse of the real estate appraisal report or coercion of the appraiser are now:
A.
infractions.
B.
federal felonies.
C.
misdemeanors.
D.
none of the above.
Question #7
A person who is authorized by the Secretary of State to witness the acknowledgment of documents is known as a(n):
A.
document doctor.
B.
librarian.
C.
administrator.
D.
notary public.
Question #8
A broker who mixes personal funds with his or her principal’s funds is guilty of:
A.
conversion.
B.
false promise.
C.
commingling.
D.
divided agency.
Question #9
Real property consists of:
A.
land and structures on the land, anything incidental and appurtenant to the land
B.
anything incidental to the land.
C.
anything appurtenant to the land.
D.
land and structures on the land.
Question #10
Which of the following is NOT one of the forces that affect the value of a neighborhood?
A.
Social considerations
B.
Physical considerations
C.
Economic considerations
D.
Past sales considerations
Question #11
The federal civil rights law that applies to people with disabilities and protects them from discrimination is the:
A.
Federal Civil Rights Act of 1968.
B.
Unruh Civil Rights Act.
C.
Fair Employment and Housing Act.
D.
Americans With Disabilities Act
Question #12
When prices rise due to shortages of available properties, it is known as a:
A.
buyer’s market.
B.
deflationary market.
C.
seller’s market.
D.
lender’s market.
Question #13
Other than the initial small deposit to open the account, when are money deposits the personal property of the broker?
A.
Only during non-business days
B.
Only with the permission of the buyer
C.
Always
D.
Never
Question #14
Which "American" title insurance is usually requested by lenders?
A.
RESPA policy
B.
ALTA policy
C.
CLTA policy
D.
None of the above
Question #15
Which of the following is a requirement of a lease?
A.
Amount of rent
B.
Length of lease
C.
Length of lease, Amount of rent, and Names of parties
D.
Names of parties
Question #16
Which of the following is NOT an essential element of a real estate contract?
A.
Mutual consent
B.
Cash
C.
Proper writing
D.
Capacity
Question #17
The California Department of Veteran’s Affairs loan program is commonly known as the:
A.
CalVet Program.
B.
VA.
C.
California VFW Program.
D.
FHA.
Question #18
The market data method (comparison approach) is the most common approach for:
A.
houses, condos and vacant land.
B.
vacant land.
C.
houses.
D.
condos.
Question #19
What is the section in the Residential Listing Agreement (Exclusive Authorization and Right to Sell) that can entitle a broker to a commission even after the termination of the listing?
A.
Broker Entitlement Clause and End of Listing Clause
B.
End of Listing Clause
C.
Broker Entitlement Clause
D.
Safety Clause
Question #20
How many square feet are in 1 acre?
A.
43,560
B.
41,560
C.
38,416
D.
38,304
Question #21
A month-to-month rental agreement is usually a:
A.
tenancy for years.
B.
periodic tenancy.
C.
tenancy at will.
D.
tenancy at sufferance.
Question #22
You are a landlord who discovers that one of your tenants is having new carpet installed in his apartment without your consent. To protect yourself, you should file a(n):
A.
unlawful detainer action.
B.
mechanic’s lien.
C.
notice of non-responsibility.
D.
cease and desist order.
Question #23
Which of the following is FALSE concerning a grant deed?
A.
It is signed only by the grantee.
B.
The key word is “grant.”
C.
Grant deeds contain implied warranties.
D.
It is considered executed when signed by the grantor.
Question #24
Which of the following is NOT a type of property lot?
A.
Interior lot
B.
Corner lot
C.
Key lot
D.
Curb lot
Question #25
The rate the borrower is actually paying (including interest, points, and loan fees) is called:
A.
the effective interest rate.
B.
the nominal interest rate.
C.
the fully indexed interest rate
D.
the adjusted interest rate
Question #26
For all practical purposes, discrimination laws evolved from Title VIII of the Civil Rights Act of 1968, 13th Amendment to the U.S. Constitution, and the U.S. Supreme Court Case?
A.
Huber v. the State of California
B.
Jones v. Mayer
C.
None of the answers are correct
D.
Easton v. Strassburger
Question #27
The closing date is:
A.
the date the listing agreement is signed.
B.
due before the payoff demand statement.
C.
the date the documents are recorded.
D.
always on the first day of the month.
Question #28
The Real Estate Commissioner:
A.
replaces a court of law and gives legal advice.
B.
enforces the Real Estate Law.
C.
replaces a court of law.
D.
gives legal advice.
Question #29
When an improvement is permanently attached to real property it becomes:
A.
personal property.
B.
private property.
C.
real property.
D.
none of the above.
Question #30
If the “exact” terms of the listing agreement are met, the listing broker is entitled to a commission, even if the:
A.
broker is not licensed .
B.
seller is not the legal owner.
C.
buyer is legally incompetent.
D.
owner refuses to sell to the buyer.
Question #31
Which of the following is TRUE concerning negotiable instruments?
A.
They are easily transferable from one person to another, promissory notes are considered negotiable instruments, and the most common example of a negotiable instrument is a personal check.
B.
Promissory notes are considered negotiable instruments.
C.
The most common example of a negotiable instrument is a personal check.
D.
They are easily transferable from one person to another.
Question #32
Which advisory form reminds the buyer and seller of the importance of investigating a property before the sale?
A.
Statewide Buyer and Sellery Advisory
B.
Natural Hazard Disclosure Statement
C.
None of the answers are correct
D.
Residential Listing Agreement
Question #33
The term "EER" is used to measure:
A.
energy efficiency (the higher the better).
B.
credit rating.
C.
water purity.
D.
water pressure.
Question #34
A lien placed on more than one parcel, all parcels having the same owner, is known as a:
A.
multi-tract lien.
B.
full lien.
C.
blanket encumbrance.
D.
none of the above.
Question #35
An ownership interest in real property that only exists for the life of any designated person or persons (often the grantee) is called a(n):
A.
life estate.
B.
less-than-freehold estate.
C.
estate in remainder.
D.
estate in waiting.
Question #36
The salesperson exam requires what percent of correct answers to pass?
A.
60%
B.
80%
C.
90%
D.
70%
Question #37
Of the following, who is permitted to purchase property in California without court approval?
A.
Incompetents
B.
Minors
C.
Foreign persons (aliens)
D.
Convicts
Question #38
The seller must provide the buyer of a condominium with:
A.
the CC&Rs.
B.
the bylaws.
C.
a copy of the most recent financial statement, the CC&Rs, and the bylaws.
D.
a copy of the most recent financial statement.
Question #39
Which of the following is considered the most popular real estate brokerage websites?
A.
perfectrealtor.com and lowcommission.com
B.
realtor.com and zillow.com
C.
homealong.com and buymyhouse.com
D.
None of the answers are correct
Question #40
If the prospective investor of real property is most concerned with making money off the usefulness of the improvements, he or she would be most concerned with:
A.
economic life remaining in the improvements.
B.
chronological age of the improvements.
C.
physical life remaining in the improvements.
D.
none of the above.
Question #41
A recorded public history of a specific property is called a:
A.
title provenance.
B.
string of title.
C.
chain of title.
D.
title plant.
Question #42
CC&Rs refer to:
A.
conditions, control, and residuals.
B.
covenants, communities, and residents.
C.
covenants, conditions, and restrictions.
D.
construction, conditions, and restrictions.
Question #43
Prior to receiving communication of its acceptance, a buyer can withdraw an offer:
A.
by registered mail.
B.
personally.
C.
in writing.
D.
by registered mail, personally, and in writing
Question #44
The current status of items from the county records affecting the property’s title is called the:
A.
preliminary title report.
B.
title insurance.
C.
coinsurance clause.
D.
none of the above.
Question #45
An appraiser using the market approach collects many recent comparable sales. If a comparable property has a feature that is NOT present in the subject property, the estimated value of the feature is:
A.
subtracted from the sales price of the comparable.
B.
added to the sales price of the comparable.
C.
just noted on the appraisal but nothing is done.
D.
none of the above.
Question #46
A.
deed.
B.
verification.
C.
actual notice.
D.
none of the above.
Question #47
Which of the following is NOT a California starting point in the U.S. Government Survey system?
A.
Mt. Diablo Base Line and Meridian
B.
San Bernardino Base Line and Meridian
C.
Humboldt Base Line and Meridian
D.
Baja Base Line and Meridian
Question #48
Which of the following statements constitutes an example of progression?
A.
A home of lesser value is worth more when located among homes of greater value.
B.
A home of greater value is worth more when located among homes of lesser value.
C.
A home of greater value is worth less when located among homes of lesser value.
D.
A home of lesser value is worth less when located among homes of greater value.
Question #49
An agent who intentionally shows minorities homes for sale in a minority neighborhood only and refuses to communicate the availability of housing in other neighborhoods is guilty of:
A.
steering.
B.
poor taste.
C.
block busting.
D.
redlining.
Question #50
Which of the following are considered non-institutional lenders?
A.
Mortgage companies
B.
Credit unions
C.
Mortgage companies, Credit unions, and Private lenders
D.
Private lenders
Question #51
An agency is terminated by operation of law when:
A.
the agency agreement expires.
B.
the broker or seller dies.
C.
the property is destroyed.
D.
the property is destroyed, the agency agreement expires, and the broker or seller dies.
Question #52
The nominal interest rate is:
A.
stated on the note.
B.
the effective interest rate.
C.
compounded daily.
D.
a guarantee of negative amortization.
Question #53
If a rental property is sold, the rents of the tenants are:
A.
forfeited.
B.
doubled.
C.
refunded in full.
D.
prorated in escrow.
Question #54
An incompetent person:
A.
is of unsound mind.
B.
cannot individually contract.
C.
must have court approval to contract.
D.
cannot individually contract, must have court approval to contract, and is of unsound mind.
Question #55
An "REIT" is a:
A.
real estate investment trust.
B.
real estate investment transfer.
C.
real equity interest trust.
D.
residential encouragement involving trusts.
Question #56
The cost approach is most effective:
A.
at finding similar comparable properties.
B.
for properties that generate income.
C.
with new, unique, or public buildings.
D.
for properties that generate income and at finding similar comparable properties.
Question #57
In real estate, the person who acts for and with the authority of another is called a(n):
A.
principal.
B.
buyer.
C.
third party.
D.
agent.
Question #58
Which of the following forms are included in the "Listing Package"?
A.
Wire Fraud and Electronic Funds Transfer Advisory
B.
Disclosure Regarding Real Estate Agency Relationship
C.
Possible Representation of More Than One Buyer or Seller - Disclosure and Consent
D.
Disclosure Regarding Real Estate Agency Relationship, Possible Representation of More Than One Buyer or Seller - Disclosure and Consent, and Wire Fraud and Electronic Funds Transfer Advisory
Question #59
To be valid, a lease need NOT include the:
A.
description of the property.
B.
words “let or demise.”
C.
length of the lease.
D.
names of the parties.
Question #60
Which of the following is an example of a voluntary lien?
A.
Mechanic’s lien
B.
Mechanic’s lien and Tax assessment
C.
Trust deed
D.
Tax assessment
Question #61
Which word best describes the effects of income taxes as your income increases?
A.
Regressive
B.
Progressive
C.
Static
D.
Marginal
Question #62
If a property is to be returned to the grantor after a life estate is terminated, it is referred to as a(n):
A.
life estate.
B.
estate in remainder.
C.
estate for years.
D.
estate in reversion.
Question #63
An information booth is called a(n):
A.
conduit.
B.
kiosk.
C.
unearned increment.
D.
turnkey.
Question #64
In a trust deed, the beneficiary is the:
A.
escrow.
B.
borrower’s spouse.
C.
lender.
D.
third party.
Question #65
The original housing law in California that deals with discrimination in business is called the:
A.
Federal Civil Rights Act.
B.
Unruh Civil Rights Act.
C.
Rumford Act.
D.
none of the above.
Question #66
The acronym "CLTA" stands for:
A.
California Land Tax Association.
B.
California Land Title Association.
C.
California Landlord Tenant Association.
D.
Community Lease Transaction Account.
Question #67
Which of the following is true about the salesperson’s exam?
A.
150 multiple-choice questions
B.
Requires 70% correct score to pass
C.
Lasts three hours and fifteen minutes
D.
150 multiple-choice questions, Requires 70% correct score to pass and Lasts three hours and fifteen minutes
Question #68
How many square feet are in an acre?
A.
435
B.
43,560
C.
345
D.
100,000
Question #69
Which of the following is an important tax date to remember?
A.
December 10
B.
November 1
C.
February 1
D.
November 1, December 10 and February 1
Question #70
A document given to a tenant stating that he or she must pay past due rent or vacate is known as a(n):
A.
Curb Summons.
B.
Writ of Possession.
C.
Unlawful Detainer.
D.
Three-Day Notice to Pay.
Question #71
Which of the following would best describe an open listing?
A.
Exclusive
B.
Nonexclusive
C.
Illegal in California
D.
Bilateral contract
Question #72
If a buyer defaults on a conditional sales purchase contract (land contract), who could file a quiet title action to remove the cloud on the title?
A.
Vendee
B.
Seller
C.
Buyer
D.
Broker
Question #73
The "Purchase Agreement Package" includes which of the following forms?
A.
Disclosure Regarding Real Estate Agency Relationship
B.
Disclosure Regarding Real Estate Agency Relationship, Buyer's Inspection Advisory and Wire Fraud and Electronic Funds Transfer Advisory
C.
Buyer's Inspection Advisory
D.
Wire Fraud and Electronic Funds Transfer Advisory
Question #74
Depreciation can be:
A.
loss in value from any cause, curable and incurable.
B.
incurable.
C.
curable.
D.
loss in value from any cause.
Question #75
A mechanic’s lien can be filed against a property by someone who has furnished which of the following services?
A.
Roofing
B.
Plumbing
C.
Landscaping, Roofing and Plumbing
D.
Landscaping
Question #76
Noninstitutional lenders who usually lend their own money and then sell their loans to others and service the loans are called:
A.
mutual savings banks.
B.
any of the above.
C.
pension funds.
D.
mortgage bankers.
Question #77
A fee estate that is subject to particular limitations imposed by the grantor of the estate is called.
A.
a fee simple defeasible estate
B.
an imperfect fee estate.
C.
a restricted fee estate.
D.
none of the above.
Question #78
Mello-Roos liens:
A.
require a seller and/or salesperson to disclose, usually fund street improvements, and are municipal bonds.
B.
require a seller and/or salesperson to disclose.
C.
usually fund street improvements.
D.
are municipal bonds.
Question #79
You enter a hardware store where you have an account, pick up a pair of $5.00 pliers, and wave them at the manager as you leave the store. This would be an example of a(n):
A.
mutual consent.
B.
express contract and mutual consent.
C.
express contract.
D.
implied contract.
Question #80
Which of the following is NOT a test to determine whether an item is a fixture?
A.
Date of purchase
B.
Agreement
C.
Adaptability
D.
Intention
Question #81
Which of the following statements is FALSE concerning economic obsolescence?
A.
It is a result of off property causes
B.
It is due to wear and tear
C.
It is incurable
D.
It is due to changes in the neighborhood
Question #82
A real estate professional who assists agents and brokers in the processing of a real estate transaction all the way through escrow is known as a(n):
A.
Process Administrator
B.
Transaction Coordinator
C.
Broker Assistant
D.
Escrow Assistant
Question #83
Real property subject to a lien is referred to as:
A.
encumbered.
B.
restricted and encumbered
C.
attached.
D.
restricted.
Question #84
Which of the following is NOT usually prorated in escrow?
A.
Property taxes
B.
Interest
C.
Rents
D.
Title insurance
Question #85
The "Pest Control Inspection Report and Certification" is also called the:
A.
none of the answers are correct
B.
structural damage inspection
C.
termite inspection
D.
foundation condition inspection
Question #86
A Federal Estate tax return must be filed for any U.S. resident whose gross estate exceeds:
A.
$5,000,000 and $3,000,000
B.
$3,000,000
C.
$5,000,000
D.
$10,000,000
Question #87
An outdated kitchen would be an example of:
A.
functional depreciation.
B.
functional obsolescence.
C.
economic obsolescence.
D.
none of the above.
Question #88
What is the term used when a person leasing a property remains after the expiration of the stated term?
A.
Estate at sufferance
B.
Estate from period-to-period
C.
Estate for years
D.
Estate at will
Question #89
A real estate license for both a salesperson and a broker must be renewed every:
A.
four years.
B.
three years.
C.
five years.
D.
two years.
Question #90
One-half of a section has how many acres?
A.
160
B.
Zero
C.
320
D.
0.05
Question #91
The bottom portion lining a doorway or window is the:
A.
sill.
B.
joist.
C.
flashing.
D.
ridge board.
Question #92
In order for victims of domestic violence to terminate a lease, they must provide the landlord a copy of a police report that a domestic violence report has been filed and a written:
A.
10-day termination notice.
B.
30-day termination notice.
C.
15-day termination notice.
D.
20-day termination notice.
Question #93
The Fair Employment and Housing Act prohibits:
A.
redlining
B.
targeting.
C.
gerrymandering.
D.
redistricting.
Question #94
If a landlord knows that there is a current bed bug infestation, he or she:
A.
can show or rent vacant units if the interested party is informed of the situation.
B.
cannot show or rent vacant units.
C.
can show or rent vacant units if if the interested party is given a copy of the pest control report.
D.
None of the above.
Question #95
When the Federal Reserve wants a "loose" money market, it:
A.
buys back bonds.
B.
buys back bonds, lowers the discount rate, and lowers the reserve requirements of banks.
C.
lowers the reserve requirements of banks.
D.
lowers the discount rate.
Question #96
When a residential tenant vacates a residential rental unit, the landlord has how long to return any unused portion of the tenant's security deposit?
A.
15 days
B.
20 days
C.
21 calendar days
D.
45 calendar days
Question #97
The fundamental goal of the California Housing Finance Agency (Cal HFA) is to:
A.
help minority buyers obtain financing for new home purchases.
B.
subsidize rents for low income renters.
C.
make funds available for residential loans in distressed areas.
Question #98
Under the Department of Real Estate Commissioner's rules and regulations, which of the following would be required to have a written employment contract with a broker?
A.
A receptionist in a real estate sales office.
B.
A handyman working regularly for a property management firm.
C.
Janitorial staff for a real estate sales office.
D.
A real estate broker working for another real estate broker.
Question #99
When property is legally described using the U. S. Government Rectangular Survey System, the intersections of the north-south lines with the east-west lines are known as:
A.
lines of metes and bounds.
B.
longitude and latitude lines.
C.
base lines and meridian lines.
D.
lines of demarcation.
Question #100
The type of misrepresentation which occurs least often in a real estate sale would be:
A.
malicious misrepresentation.
B.
innocent misrepresentation.
C.
negligent misrepresentation.
D.
fraudulent misrepresentation.
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