Real Estate 101 - Real Estate Principles » Fall 2021 » Final Exam
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Question #1
Zoning is under the control of:
A.
private parties.
B.
government agencies.
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.
illusory.
C.
proprietary and illusory
D.
proprietary.
Question #3
Escrows base monthly prorations on how many days?
A.
28
B.
30
C.
29
D.
31
Question #4
The area of a rectangular lot that is 50 feet wide by 100 feet deep is:
A.
5,000 sq. ft.
B.
50,000 sq. ft.
C.
500 sq. ft.
D.
2,500 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.
federal felonies.
B.
misdemeanors.
C.
infractions.
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.
notary public.
C.
librarian.
D.
administrator.
Question #8
A broker who mixes personal funds with his or her principal’s funds is guilty of:
A.
divided agency.
B.
false promise.
C.
conversion.
D.
commingling.
Question #9
Real property consists of:
A.
land and structures on the land, anything incidental and appurtenant to the land
B.
land and structures on the land.
C.
anything incidental to the land.
D.
anything appurtenant to the land.
Question #10
Which of the following is NOT one of the forces that affect the value of a neighborhood?
A.
Economic considerations
B.
Past sales considerations
C.
Physical considerations
D.
Social considerations
Question #11
The federal civil rights law that applies to people with disabilities and protects them from discrimination is the:
A.
Americans With Disabilities Act
B.
Federal Civil Rights Act of 1968.
C.
Fair Employment and Housing Act.
D.
Unruh Civil Rights Act.
Question #12
When prices rise due to shortages of available properties, it is known as a:
A.
buyer’s market.
B.
lender’s market.
C.
seller’s market.
D.
deflationary market.
Question #13
Other than the initial small deposit to open the account, when are money deposits the personal property of the broker?
A.
Always
B.
Never
C.
Only during non-business days
D.
Only with the permission of the buyer
Question #14
Which "American" title insurance is usually requested by lenders?
A.
RESPA policy
B.
CLTA policy
C.
ALTA policy
D.
None of the above
Question #15
Which of the following is a requirement of a lease?
A.
Length of lease, Amount of rent, and Names of parties
B.
Names of parties
C.
Amount of rent
D.
Length of lease
Question #16
Which of the following is NOT an essential element of a real estate contract?
A.
Mutual consent
B.
Capacity
C.
Proper writing
D.
Cash
Question #17
The California Department of Veteran’s Affairs loan program is commonly known as the:
A.
CalVet Program.
B.
VA.
C.
FHA.
D.
California VFW Program.
Question #18
The market data method (comparison approach) is the most common approach for:
A.
houses.
B.
houses, condos and vacant land.
C.
vacant land.
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
B.
Safety Clause
C.
End of Listing Clause
D.
Broker Entitlement Clause and End of Listing Clause
Question #20
How many square feet are in 1 acre?
A.
38,304
B.
41,560
C.
43,560
D.
38,416
Question #21
A month-to-month rental agreement is usually a:
A.
tenancy at sufferance.
B.
periodic tenancy.
C.
tenancy at will.
D.
tenancy for years.
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.
cease and desist order.
B.
mechanic’s lien.
C.
unlawful detainer action.
D.
notice of non-responsibility.
Question #23
Which of the following is FALSE concerning a grant deed?
A.
It is considered executed when signed by the grantor.
B.
The key word is “grant.”
C.
It is signed only by the grantee.
D.
Grant deeds contain implied warranties.
Question #24
Which of the following is NOT a type of property lot?
A.
Curb lot
B.
Corner lot
C.
Key lot
D.
Interior 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 adjusted interest rate
C.
the nominal interest rate.
D.
the fully indexed 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.
Jones v. Mayer
B.
None of the answers are correct
C.
Huber v. the State of California
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.
always on the first day of the month.
D.
the date the documents are recorded.
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.
real property.
B.
private property.
C.
personal 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.
buyer is legally incompetent.
B.
seller is not the legal owner.
C.
broker is not licensed .
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.
None of the answers are correct
C.
Residential Listing Agreement
D.
Natural Hazard Disclosure Statement
Question #33
The term "EER" is used to measure:
A.
credit rating.
B.
water purity.
C.
energy efficiency (the higher the better).
D.
water pressure.
Question #34
A lien placed on more than one parcel, all parcels having the same owner, is known as a:
A.
full lien.
B.
multi-tract 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.
estate in remainder.
B.
less-than-freehold estate.
C.
estate in waiting.
D.
life estate.
Question #36
The salesperson exam requires what percent of correct answers to pass?
A.
90%
B.
70%
C.
60%
D.
80%
Question #37
A.
Foreign persons (aliens)
B.
Minors
C.
Convicts
D.
Incompetents
Question #38
The seller must provide the buyer of a condominium with:
A.
the bylaws.
B.
a copy of the most recent financial statement, the CC&Rs, and the bylaws.
C.
the CC&Rs.
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.
realtor.com and zillow.com
B.
homealong.com and buymyhouse.com
C.
perfectrealtor.com and lowcommission.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.
physical life remaining in the improvements.
B.
chronological age of the improvements.
C.
economic 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 plant.
B.
chain of title.
C.
title provenance.
D.
string of title.
Question #42
CC&Rs refer to:
A.
conditions, control, and residuals.
B.
covenants, conditions, and restrictions.
C.
covenants, communities, and residents.
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.
in writing.
C.
personally.
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.
added to the sales price of the comparable.
B.
subtracted from the sales price of the comparable.
C.
just noted on the appraisal but nothing is done.
D.
none of the above.
Question #46
An oath or affirmation made before a notary public that the content of an instrument is true is called a(n):
A.
actual notice.
B.
deed.
C.
verification.
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.
Baja Base Line and Meridian
B.
San Bernardino Base Line and Meridian
C.
Humboldt Base Line and Meridian
D.
Mt. Diablo Base Line and Meridian
Question #48
Which of the following statements constitutes an example of progression?
A.
A home of greater value is worth less when located among homes of lesser value.
B.
A home of lesser value is worth less when located among homes of greater value.
C.
A home of greater value is worth more when located among homes of lesser value.
D.
A home of lesser value is worth more 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.
block busting.
B.
steering.
C.
redlining.
D.
poor taste.
Question #50
Which of the following are considered non-institutional lenders?
A.
Private lenders
B.
Credit unions
C.
Mortgage companies
D.
Mortgage companies, Credit unions, and Private lenders
Question #51
An agency is terminated by operation of law when:
A.
the broker or seller dies.
B.
the property is destroyed.
C.
the property is destroyed, the agency agreement expires, and the broker or seller dies.
D.
the agency agreement expires.
Question #52
The nominal interest rate is:
A.
stated on the note.
B.
a guarantee of negative amortization.
C.
compounded daily.
D.
the effective interest rate.
Question #53
If a rental property is sold, the rents of the tenants are:
A.
doubled.
B.
prorated in escrow.
C.
refunded in full.
D.
forfeited.
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.
residential encouragement involving trusts.
C.
real equity interest trust.
D.
real estate investment transfer.
Question #56
The cost approach is most effective:
A.
with new, unique, or public buildings.
B.
for properties that generate income and at finding similar comparable properties.
C.
for properties that generate income.
D.
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.
agent.
B.
third party.
C.
buyer.
D.
principal.
Question #58
Which of the following forms are included in the "Listing Package"?
A.
Disclosure Regarding Real Estate Agency Relationship
B.
Possible Representation of More Than One Buyer or Seller - Disclosure and Consent
C.
Wire Fraud and Electronic Funds Transfer Advisory
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.
length of the lease.
B.
names of the parties.
C.
words “let or demise.”
D.
description of the property.
Question #60
Which of the following is an example of a voluntary lien?
A.
Mechanic’s lien
B.
Tax assessment
C.
Trust deed
D.
Mechanic’s lien and Tax assessment
Question #61
Which word best describes the effects of income taxes as your income increases?
A.
Regressive
B.
Static
C.
Progressive
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.
estate in reversion.
B.
estate for years.
C.
estate in remainder.
D.
life estate.
Question #63
An information booth is called a(n):
A.
unearned increment.
B.
conduit.
C.
turnkey.
D.
kiosk.
Question #64
In a trust deed, the beneficiary is the:
A.
borrower’s spouse.
B.
lender.
C.
escrow.
D.
third party.
Question #65
The original housing law in California that deals with discrimination in business is called the:
A.
Unruh Civil Rights Act.
B.
Federal Civil Rights Act.
C.
Rumford Act.
D.
none of the above.
Question #66
The acronym "CLTA" stands for:
A.
California Land Tax Association.
B.
Community Lease Transaction Account.
C.
California Land Title Association.
D.
California Landlord Tenant Association.
Question #67
Which of the following is true about the salesperson’s exam?
A.
150 multiple-choice questions
B.
Lasts three hours and fifteen minutes
C.
150 multiple-choice questions, Requires 70% correct score to pass and Lasts three hours and fifteen minutes
D.
Requires 70% correct score to pass
Question #68
How many square feet are in an acre?
A.
100,000
B.
43,560
C.
345
D.
435
Question #69
Which of the following is an important tax date to remember?
A.
February 1
B.
November 1, December 10 and February 1
C.
November 1
D.
December 10
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.
Unlawful Detainer.
B.
Three-Day Notice to Pay.
C.
Curb Summons.
D.
Writ of Possession.
Question #71
Which of the following would best describe an open listing?
A.
Bilateral contract
B.
Nonexclusive
C.
Exclusive
D.
Illegal in California
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.
Broker
B.
Seller
C.
Vendee
D.
Buyer
Question #73
The "Purchase Agreement Package" includes which of the following forms?
A.
Buyer's Inspection Advisory
B.
Wire Fraud and Electronic Funds Transfer Advisory
C.
Disclosure Regarding Real Estate Agency Relationship, Buyer's Inspection Advisory and Wire Fraud and Electronic Funds Transfer Advisory
D.
Disclosure Regarding Real Estate Agency Relationship
Question #74
Depreciation can be:
A.
incurable.
B.
loss in value from any cause.
C.
curable.
D.
loss in value from any cause, curable and incurable.
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.
Landscaping, Roofing and Plumbing
C.
Landscaping
D.
Plumbing
Question #76
Noninstitutional lenders who usually lend their own money and then sell their loans to others and service the loans are called:
A.
any of the above.
B.
mutual savings banks.
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.
B.
are municipal bonds.
C.
usually fund street improvements.
D.
require a seller and/or salesperson to disclose, usually fund street improvements, and 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.
express contract and mutual consent.
B.
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.
Adaptability
C.
Agreement
D.
Intention
Question #81
Which of the following statements is FALSE concerning economic obsolescence?
A.
It is incurable
B.
It is a result of off property causes
C.
It is due to wear and tear
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.
C.
restricted and encumbered
D.
attached.
Question #84
Which of the following is NOT usually prorated in escrow?
A.
Property taxes
B.
Title insurance
C.
Rents
D.
Interest
Question #85
The "Pest Control Inspection Report and Certification" is also called the:
A.
structural damage inspection
B.
none of the answers are correct
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
B.
$5,000,000 and $3,000,000
C.
$3,000,000
D.
$10,000,000
Question #87
An outdated kitchen would be an example of:
A.
economic obsolescence.
B.
functional obsolescence.
C.
functional depreciation.
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 for years
B.
Estate at sufferance
C.
Estate from period-to-period
D.
Estate at will
Question #89
A real estate license for both a salesperson and a broker must be renewed every:
A.
three years.
B.
four years.
C.
two years.
D.
five years.
Question #90
One-half of a section has how many acres?
A.
320
B.
160
C.
0.05
D.
Zero
Question #91
The bottom portion lining a doorway or window is the:
A.
sill.
B.
flashing.
C.
joist.
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.
20-day termination notice.
B.
10-day termination notice.
C.
15-day termination notice.
D.
30-day termination notice.
Question #93
The Fair Employment and Housing Act prohibits:
A.
redistricting.
B.
targeting.
C.
gerrymandering.
D.
redlining
Question #94
If a landlord knows that there is a current bed bug infestation, he or she:
A.
cannot show or rent vacant units.
B.
can show or rent vacant units if if the interested party is given a copy of the pest control report.
C.
can show or rent vacant units if the interested party is informed of the situation.
D.
None of the above.
Question #95
When the Federal Reserve wants a "loose" money market, it:
A.
lowers the discount rate.
B.
buys back bonds.
C.
buys back bonds, lowers the discount rate, and lowers the reserve requirements of banks.
D.
lowers the reserve requirements of banks.
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.
subsidize rents for low income renters.
B.
help minority buyers obtain financing for new home purchases.
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 handyman working regularly for a property management firm.
B.
Janitorial staff for a real estate sales office.
C.
A real estate broker working for another real estate broker.
D.
A receptionist in a real estate sales office.
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.
lines of demarcation.
C.
longitude and latitude lines.
D.
base lines and meridian lines.
Question #100
The type of misrepresentation which occurs least often in a real estate sale would be:
A.
malicious misrepresentation.
B.
negligent misrepresentation.
C.
fraudulent misrepresentation.
D.
innocent misrepresentation.
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