Comprehensive Practice Exam

A  A purpose

B  Two parties

C  A lawful objective

D  A mutual agreement

A  Implication of law

B  Condemnation

C  Prescription

D  Express grant

A  $200,000

B  $50,000

C  $104,250

D  $36,000

A  Transfer them to the brokerage’s operating account.

B  Move them into a separate trust account that holds excess funds.

C  Donate them to the state’s Consumer Recovery Account.

D  These are still trust funds and must be handled as such. Brokers can either leave them in the trust account or move them into a separate account set up to hold excess funds. They must also keep a separate ledger for unexplained overages.

E  Set them aside to use for any future shortages in the trust account.

A  $816.45

B  $920.50

C  $854.17

D  $10,250.16

A  George

B  Carrie

C  Carl

D  Simone

A  Rebecca is acting in an agency capacity for Stacey.

B  Stacey is Rebecca’s client.

C  Stacey is Rebecca’s customer.

D  Rebecca can’t work with Stacey without an agency agreement.

A  Obedience

B  Reasonable skill and care

C  Disclosure

D  Confidentiality

A  5%

B  50%

C  2%

D  70%

A  Listing agent

B  Escrow officer

C  Conservator

D  Buyer’s agent

A  $152,439

B  $198,540

C  $120,540

D  $147,000

A  Real estate licensees who perform appraisals must have a federal security clearance.

B  Federally related transactions need not be appraised.

C  Federally related appraisals must be conducted by an appraiser who’s either licensed or certified by the state.

D  Non-federally related transactions must be appraised by government employees.

A  Loyalty

B  Accounting

C  Disclosure

D  Reasonable skill and care

A  A clause in a listing agreement that stipulates the amount of commission the broker is owed if the property sells.

B  The clause in a purchase agreement that describes money held in escrow, such as the buyer’s earnest money.

C  A fee the agent charges a client for services the agent expects to provide but haven’t yet been provided.

D  The fee paid to the escrow officer who conducts the closing.

A  Single agent

B  Limited agent

C  General agent

D  Universal agent

A  Conforming value

B  Substitution

C  Similar cost principle

D  Regression

A  A seller’s agent

B  A buyer’s agent

C  A sub-agent

D  A dual agent

A  Competition

B  Contribution

C  Substitution

D  Conformity

A  He did not receive his broker’s permission.

B  He did not make sure his clients understood the form before signing it.

C  No steps; if he obtained signatures, he has done his job.

D  He did not offer to also mail his clients a certified copy.

A  No, agency disclosure is only required on leases shorter than one year.

B  Yes, agency disclosure is required on leases exceeding one year.

C  No, Danielle does not provide the agency disclosure to her client. He only provides it to the landlord involved in the transaction.

D  No, agency disclosure is only required on sales of residential properties with one to four units.

A  The borrower is required to maintain the property and pay property taxes and insurance.

B  In the case of foreclosure, the borrower has a statutory right of redemption.

C  There are three parties involved: a lender, a borrower, and a party who holds title to the property.

D  Non-judicial foreclosure is standard.

A  A contract that is enforceable by law

B  A contract that involves an exchange of consideration between two parties

C  A contract in which only one of the parties offers consideration

D  A contract for which one or more terms has yet to be completed

A  The agent must send the client a notice of release form.

B  The agent must sue.

C  The listing is cancelled.

D  The client may owe a commission anyway.

A  Performance

B  Breach

C  Novation

D  Assignment

A  Cost

B  Price

C  Value

D  Appraisal

A  General Land Title Association (GLTA)

B  California Land Title Association (CLTA)

C  American Land Title Association (ALTA)

D  Standard Land Title Association (SLTA)

A  2039

B  2029

C  2048

D  2019

A  Suing for specific performance

B  Accepting partial performance

C  Suing for damages

D  Rescinding the contract unilaterally

A  The previous owner may redeem the property by paying Paula at least 50% of the property’s market value.

B  The title to the property may have hidden issues that could cost her a lot of money to clear.

C  The title insurance company may charge her additional fees after closing to continue the title policy.

D  The lender has the option to refuse her bid and revoke the deed transferring ownership to Paula.

A  Buyers shouldn’t ask about the wiring.

B  Because the buyer will be required to update the wiring if it’s more than 10 years old.

C  Because the seller will be required to update the wiring if it’s more than 10 years old.

D  Because out-of-date electrical wiring can cause a wide a variety of problems.

A  Three

B  Four

C  Two

D  One

A  Real estate appraiser

B  Transaction coordinator

C  Stager

D  Real estate educator

A  Blockbusting

B  Misrepresentation

C  Redlining

D  Steering

A  Appraisal

B  Comparative market analysis

C  Broker’s price opinion

D  Credit analysis

A  This is a breach of confidentiality because the information impacts Reuben’s negotiating ability with the seller.

B  This isn’t a breach of confidentiality because Reuben is no longer Monica’s client.

C  This is a breach of confidentiality because confidentiality survives forever.

D  This isn’t a breach of confidentiality because the information shared doesn’t negatively impact the client.

A  Leigh Ann’s only option is to get a signed listing agreement.

B  Prepare an agency agreement or continue to assist Carly with the purchase.

C  Continue to assist Carly and have her sign an estoppel certificate.

D  Prepare an estoppel certificate and a listing agreement.

A  Title insurance

B  Litigation

C  Buyer Trust Fund

D  Seller guarantees

A  The agency agreement is terminated because the agent filed for bankruptcy.

B  Marcus can choose whether or not to continue the listing agreement with Ron.

C  The agency agreement only terminates if the broker or the principal declares bankruptcy.

D  Bankruptcy has no impact on agency agreements.

A  Associate broker

B  Office manager

C  Broker

D  Salesperson

A  An offer

B  An executory contract

C  A voidable contract

D  An implied contract

A  Marty listed Todd’s condo. With Marty’s efforts they got almost to closing only to have the buyer’s financing fall through.

B  Greg listed a property that failed to sell during the term of the listing agreement. Aside from that, he performed all the tasks promised to the seller.

C  Evan performed all required fiduciary duties and tasks in listing Von’s house, even though it didn’t sell before the listing expired.

D  Roberto listed a property for Terrence. After two failed offers, the property made it to a successful closing.

A  Dedication by deed

B  Public grant

C  Adverse possession

D  Accession

A  No, because gays and lesbians aren’t protected classes.

B  No, because gays and lesbians are a protected class, and it’s okay to aim advertising at, but not away from, protected classes.

C  Yes, since it singles out gays and lesbians, which may discourage heterosexuals from applying.

D  Yes, since it mentions the locality of the school.

A  Increases in hiring, employment, and public confidence, and lots of buyers in the market

B  High but stabilized unemployment and a high number of foreclosures

C  Properties selling for more than they’re worth, many buyers in the market, and lots of new construction

D  Unemployment increasing, prices falling, and foreclosures on the rise

A  Extended title insurance

B  Title survey and boundary insurance

C  Standard title insurance

D  Homeowners insurance

A  Scraping

B  Scrounging

C  Slicing

D  Partitioning

A  Inform all parties to the transaction

B  Inform the seller

C  Say nothing

D  Terminate her agency relationship

A  The buyer’s attorney

B  The escrow agent

C  The seller’s real estate agent

D  The buyer’s real estate agent

A  Real estate broker

B  Real estate counselor

C  Real estate educator

D  Sales associate

A  Measuring elevations

B  Measuring distance

C  Determining land acquisition costs

D  Calculating area

A  High fire hazard area

B  Earthquake fault zone

C  Forest fire hazard area

D  Seismic hazard area

A  Vickey is the grantor.

B  Kevin and Regina are the grantees.

C  Vickey is the grantee.

D  Either Regina or Kevin can convey the property.

A  Tailleur represents the buyer.

B  Freida is paying your commission.

C  Christine’s mother, Freida, owns the house you listed.

D  Christine listed the property with you.

A  Partition

B  Severalty

C  Parcel

D  Bifurcation

A  Anti-Telemarketer Act of 2000

B  Do Not Call Implementation Act of 2003

C  CAN-SPAM Act of 2003

D  Junk Fax Prevention Act of 2005

A  No, Damian does not provide the agency disclosure to his client. He only provides it to others involved in the transaction.

B  No, agency disclosure is only required on leases exceeding one year.

C  Yes, agency disclosure is required on sales of residential properties with one to four units.

D  No, agency disclosure is not required on sales of residential properties with one to four units.

A  $50,000

B  $45,000

C  $55,000

D  $40,000

A  Yes, Ted and his agent need to disclose specific environmental hazards

B  No, but Ted should have a word with the managers of the golf course

C  No, providing the booklet absolves him of a responsibility to disclose specific hazards

D  No, this issue is not a problem if the windows are closed

A  Set to expire in 2016

B  Unconstitutional

C  Restricted to the protected groups named in the act

D  Applicable to anyone exhibiting characteristics of the protected groups named in the act

A  No, because he’s not an attorney, he shouldn’t prepare contracts.

B  Yes, licensees can use standard forms provided by the brokerage or approved by an attorney.

C  Yes, real estate licensees may draft contracts and fill in blanks on existing contracts.

D  No, he should have his client complete any forms.

A  Quote by the lender

B  Appraisal by an appraiser

C  Estimate by her broker

D  Assessment by the seller’s agent

A  Agree to refinance only with the current lender.

B  Move all checking and savings account to the lender’s institution.

C  Give the lender first right of refusal.

D  Pay any charges and assessments against the property.

A  It may take longer to earn a commission.

B  The risks are minimized.

C  You may not learn all aspects of real estate due to specialization.

D  The salary is lower.

A  No, agency disclosure is only required on sales of commercial properties.

B  It depends on how many units are for lease.

C  No, agency disclosure is only required for residential transactions.

D  Yes, Jillian is required to provide Anthony with an agency disclosure form.

A  Open listing agreement

B  Exclusive listing agreement

C  Non-exclusive buyer representation agreement

D  Non-exclusive, not for compensation buyer representation agreement

A  Metes and bounds

B  Lot and block

C  Rectangular

D  Benchmark

A  The earth’s surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

B  Real estate, plus all of the interests, benefits, and rights included in ownership

C  Land, plus all things permanently attached to it, naturally or artificially

D  Everything that’s not real property

A  In the Real Estate Transfer Disclosure Form

B  In the Residential Environmental Hazards booklet

C  In the Natural Hazards Disclosure Statement

D  In the Homeowner’s Guide to Earthquake Safety

A  $1,780.75

B  $1,578.57

C  $1,246.10

D  $1,110.64

A  External depreciation

B  Functional obsolescence

C  Physical depreciation

D  Economic and material

A  Thomas, who is putting in a covered porch for Susan at a cost of $1,250

B  Diedre, who is remodeling her kitchen because extended family is coming to live with her

C  Ray, who is replacing his neighbor’s garage door for $550

D  May, who is updating her bathroom to prepare her house for market

A  Investigate this discrepancy.

B  Call the police.

C  Ignore the discrepancy.

D  Demand the homeowner build another bedroom.

A  Those who aren’t service members or former service members don’t qualify.

B  The applicant must have a certificate of reasonable value.

C  Every veteran qualifies.

D  The applicant must have a certificate of eligibility.

A  Preside over real estate cases in court

B  Value properties listing for sale or rent in California

C  Act as chief executive officer of the California DRE

D  Advise the governor on personal real estate dealings

A  California DRE

B  A private investigator

C  The state attorney general

D  An arbitrator

A  The duty of confidentiality

B  The duty of accounting

C  The duty of obedience

D  The duty of disclosure

A  $345,103

B  $306,384

C  $383.822

D  $635,513

A  Foreclosure

B  Condemnation

C  Inverse condemnation

D  Eminent domain

A  Bilateral

B  Executed

C  Unilateral

D  Voidable

A  Reasonable skill and care

B  Accounting

C  Obedience

D  Loyalty

A  Look for the point of beginning.

B  Look up the latitude and longitude coordinates of the property on Google Maps.

C  Reference a previous property deed.

D  Ask neighbors where the property boundaries are.

A  81%

B  97%

C  83%

D  82%

A  If the buyer is a first-time buyer.

B  In none of these circumstances.

C  If the buyer is elderly.

D  When the buyer’s target is a second home.

A  High but stabilized unemployment and a high number of foreclosures

B  Properties selling at inflated prices, many buyers in the market, and lots of new construction

C  Unemployment increasing, prices falling, and foreclosures on the rise

D  Increases in hiring, employment, and public confidence, and lots of buyers in the market

A  Contacts a mortgage broker to find out what first-time homebuyer programs are available

B  Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area

C  Gives her neighbor a tour of another neighborhood home that’s on the market

D  Speaks to a local civic club about the homebuying process

A  Graduated mortgage

B  Balloon payment

C  Fixed-rate

D  Pledged-account

A  On the contact page only

B  On a page marked required information only

C  On every page

D  On the home page only

A  Assemble closing documents

B  Calculate a commission check

C  Place a for sale sign in a front yard

D  Host an open house

A  Non-exclusive, no compensation

B  Exclusive, no compensation

C  Non-exclusive

D  Exclusive

A  High employment wages

B  Conversion of properties

C  Loan availability

D  Low interest rates

A  Lead abatement discount

B  Lead warning statement

C  Denial of responsibility for lead-based hazards

D  Notice of local lead renovators

A  Report the sellers’ agent to the local board and file an ethics complaint

B  Report the sellers to the local board and file an ethics complaint against them

C  Point this out to your buyer; inform her that the sellers are clearly hiding water damage, and tell your client that if the sellers are lying about this you cannot guess what else they’re lying about

D  Point this out to your buyer client, and suggest she have an inspector look into this if she’s interested in the property

A  Performance

B  Non-performance

C  Partial performance

D  Voiding

A  A loan that fails to meet the criteria set forth by Fannie Mae and Freddie Mac

B  A loan to buy a high-priced or luxury home

C  A loan that meets certain criteria that are accepted by Fannie Mae and Freddie Mac

D  A loan that requires a larger-than-usual, one-time payment at the end of the term

A  Reduced homeowner’s insurance requirements

B  A VA guarantee of the property condition

C  Lower interest rates than are available on the open market

D  No down payment, no mortgage insurance, and no prepayment penalty

A  The cost of the title insurance for the property

B  The price that they paid for the property, minus any land costs

C  The loan origination and lender fees that they paid at closing

D  The cost of the electrical system upgrades they did after purchase

A  Arbitration

B  Non-judicial foreclosure

C  Deed in lieu of foreclosure

D  Judicial foreclosure

A  The pink geraniums in the window boxes are fake.

B  Dora doesn’t use the back door because the steps leading to the yard are rotted.

C  The neighborhood kids like to ride their bikes in Dora’s driveway.

D  Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds.

A  He is afraid the DRE will think he’s been embezzling funds, when he’s only been moving the funds to get the most bang for his clients’ bucks.

B  He needs to put back some funds he borrowed from the trust account before the DRE sees that they’re missing.

C  He knows he’ll have to fire most of his associated licensees in order to hide his own activities from the DRE audit.

D  He’s likely to face serious disciplinary action when the audit uncovers his inappropriate handling of trust funds.

A  It’s a lien against a single property rather than a person.

B  It may allow the creditor to sell the property through a court sale (foreclosure) and be repaid from the proceeds of the sale.

C  It prevents the debtor from transferring the property until the debt has been repaid.

D  It’s always involuntary.

A  External depreciation

B  Economic obsolescence

C  Physical depreciation

D  Functional obsolescence

A  It details the terms for a lease.

B  It defines the duties an agent owes a client.

C  It precisely locates the property and its boundaries.

D  It outlines all of the terms of a real estate purchase.

A  When a party acknowledges receipt of the contract

B  When a party meets all terms of the contract

C  When a party does some, but not all, of what the party has agreed to do

D  When a party rejects all terms of the contract

A  Exclusive right to collect commission

B  Net listing

C  Exclusive right to sell

D  Exclusive agency

A  Send a mailer

B  Join a team

C  Spend more than usual on marketing campaigns

D  Buy display advertising

A  A private investigator

B  California DRE

C  The state attorney general

D  James’ broker

A  Sellers are required to list their properties on the MLS if they’re working with a real estate licensee.

B  It’s rare for sellers to decline advertising their property on the MLS.

C  Most sellers dislike advertising their property on an MLS.

D  For most sellers, listing on the MLS is not cost effective.

A  Natural Hazards Disclosure statement

B  Seller Property Questionnaire

C  Real Estate Transfer Disclosure Statement

D  Agent Visual Inspection Disclosure

A  If it is smaller than 500 square feet

B  If its total cost is more than $25,000

C  If it is larger than 500 square feet

D  If it is attached to the main house by a hallway or stairway

A  200

B  220

C  100

D  110

A  Sovereignty

B  Eminent domain

C  Condemnation

D  Police power

A  The party possessing legal capacity

B  The broker

C  Both parties

D  The party lacking legal capacity

A  $750,000

B  $500,000

C  $1,108,292.4

D  $608,292.4

A  No, Yolanda can take legal action at any time within two years after taking possession of the property.

B  No, Yolanda can take legal action against the buyers at any time while she still owns the property.

C  Yes, the buyer can only take legal action within six months of taking possession of the property.

D  Yes, Yolanda should have canceled the contract within three days of receiving seller disclosures.

A  It’s an encumbrance on the dominant property.

B  It’s a temporary agreement between two parties.

C  It’s a permanent right that runs with the land.

D  It does not involve an adjoining property.

A  Anticipation

B  Substitution

C  Conformity

D  Contribution

A  10

B  12

C  Four

D  Six

A  No, there is no requirement that nuisance neighbors be disclosed

B  No, but this issue can be added as a Supplemental Disclosure

C  Yes, they can record such issues in the seller’s information section of the TDS

D  Yes, but only if a complaint has been made to the police so that an official report can be attached

A  Housing ratio

B  Total debt

C  Loan-to-value ratio

D  Payment debt

A  Closing Disclosure

B  TIL Statement

C  Loan Estimate

D  Freddie Mac borrower disclosure

A  The illegitimate children

B  The IRS

C  The legally adopted children

D  The state

A  Substitutions

B  Conformables

C  Alternatives

D  Comparables

A  Opportunities to improve the way the home is staged for showings

B  Evidence of proper house cleaning

C  Clues to possible physical defects, such as moisture stains, uneven floors, or cracks in the walls

D  Design and remodeling ideas

A  The marketing efforts the two firms used

B  The size of the two brokerage firms

C  The agreement between the two firms

D  The dollar amount the competitors lost

A  Only trust account records

B  Documents that are handled by the brokerage but not provided to an escrow agent

C  Documents related to real estate activities that require a license

D  Specific records the DRE has listed as being related to client funds

A  Catholic parishes

B  First-time buyers

C  Commercial investors

D  Dentists

A  Architectural zoning

B  Aesthetic zoning

C  Variance zoning

D  Bulk zoning

A  The court must determine the will’s validity and supervise distribution of the estate.

B  The courts must contact all potential heirs to learn of their wishes regarding distribution of the estate.

C  The courts must review Marsten’s ability and knowledge related to distribution of the estate.

D  Marsten must apply through the courts to manage his grandmother’s estate.

A  A charge of misrepresenting the property for sale

B  A charge of not fulfilling his fiduciary duties to his client by not conducting a complete marketing plan

C  A charge of agreeing to discriminate by limiting access to the property

D  A charge of unfair practice because his mother did not get one of the “Choose Your Neighbor” letters

A  Disposition

B  Redemption

C  Achievement

D  Transfer

A  Because they lack intelligence.

B  Because they have insufficient resources.

C  Because they’re immature.

D  Because they’re minors.

A  Density zoning

B  Residential zoning

C  Bulk zoning

D  Commercial zoning

A  Street Improvement Act of 1911

B  The Improvement Bond Act of 1915

C  Mello-Roos

D  Vrooman Street Act

A  A variance

B  A tax referendum

C  A special use permit

D  A zoning ordinance

A  Farmer Mac Direct Loan Program

B  Small Town America Residential Loan Program

C  Farm Credit Administration Rural Loan Program

D  USDA Rural Development Single Family Housing Program

A  A portion of the sale price must go to the EPA to fund clean-up of the site.

B  The property can’t be sold until the site is removed from the NPL.

C  She must disclose the existence of an environmental hazard in the area.

D  She must disclose potential health threats to anyone in the area when showing the property.

A  It’s a great way to make money in real estate.

B  It is always illegal.

C  If full disclosure is provided to the seller, it is fine to do.

D  Even when it’s legal, some brokerages won’t allow their agents to do it.

A  No, but their agent should note it on the AVID form.

B  Yes, but they will need to use the TDS Supplementary Disclosures form.

C  Yes, they can record such issues in the seller’s information section of the TDS

D  No, there is no requirement that unpermitted work be disclosed

A  Easement

B  Encroachment

C  Estate

D  Eviction

A  California Department of Real Estate

B  Department of Finance

C  Nationwide Mortgage Licensing System and Registry (NMLS&R)

D  Department of Licensing

E    

A  Principal meridians and base lines

B  Plat references

C  Compass headings and directions

D  Townships and sections

A  Low-risk

B  Troublesome

C  Subprime

D  Average

A  Unilateral contract

B  Executory contract

C  Executed contract

D  Bilateral contract

A  Community Reinvestment Act

B  Equal Credit Opportunity Act

C  Home Mortgage Disclosure Act

D  Consumer Credit Protection Act

A  You must be able to advise your clients on the best way to minimize their tax liability related to a purchase or sale.

B  You must not address tax aspects of a transaction in any way, since this would be working outside your area of expertise.

C  You should tell clients the typical ways that taxes will apply and encourage them to seek advice from a tax professional.

D  You’re obligated to answer all questions the clients have regarding property taxes and general tax advice.

A  Loan

B  Lender

C  Borrower

D  Property

A  Brownfields

B  Development of golf courses and parks

C  Unregulated waste disposal areas

D  Special purpose landfills

A  Illegal practices

B  Fair housing rules

C  Equal housing opportunity

D  Anti-discrimination disclosure

A  $300,000

B  330

C  $330,000

D  300

A  People may misinterpret your listing information and hold you responsible for their misunderstanding.

B  It may not be effective since you’re casting a wide net rather than targeting potential buyers.

C  Criminals may use social networking sites to identify properties that are vacant or have high-end possessions.

D  People you don’t know will have your name and contact information.