Comprehensive Practice Exam

A  Two parties

B  A purpose

C  A mutual agreement

D  A lawful objective

A  Implication of law

B  Condemnation

C  Prescription

D  Express grant

A  $200,000

B  $36,000

C  $104,250

D  $50,000

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

B  Transfer them to the brokerage’s operating account.

C  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.

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

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

A  $854.17

B  $10,250.16

C  $816.45

D  $920.50

A  Simone

B  Carrie

C  Carl

D  George

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  Reasonable skill and care

B  Disclosure

C  Confidentiality

D  Obedience

A  70%

B  5%

C  50%

D  2%

A  Listing agent

B  Buyer’s agent

C  Conservator

D  Escrow officer

A  $198,540

B  $120,540

C  $147,000

D  $152,439

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

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

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

D  Federally related transactions need not be appraised.

A  Reasonable skill and care

B  Disclosure

C  Accounting

D  Loyalty

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

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

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

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

A  Limited agent

B  General agent

C  Single agent

D  Universal agent

A  Regression

B  Similar cost principle

C  Conforming value

D  Substitution

A  A buyer’s agent

B  A dual agent

C  A sub-agent

D  A seller’s agent

A  Contribution

B  Competition

C  Substitution

D  Conformity

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

B  He did not receive his broker’s permission.

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, Danielle does not provide the agency disclosure to her client. He only provides it to the landlord involved in the transaction.

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

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

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

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

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

C  Non-judicial foreclosure is standard.

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

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

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

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

D  A contract that is enforceable by law

A  The agent must sue.

B  The listing is cancelled.

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

D  The client may owe a commission anyway.

A  Breach

B  Assignment

C  Performance

D  Novation

A  Cost

B  Value

C  Price

D  Appraisal

A  California Land Title Association (CLTA)

B  American Land Title Association (ALTA)

C  Standard Land Title Association (SLTA)

D  General Land Title Association (GLTA)

A  2048

B  2039

C  2029

D  2019

A  Rescinding the contract unilaterally

B  Suing for damages

C  Suing for specific performance

D  Accepting partial performance

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

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

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

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

C  Buyers shouldn’t ask about the wiring.

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

A  Two

B  Three

C  One

D  Four

A  Real estate appraiser

B  Real estate educator

C  Transaction coordinator

D  Stager

A  Redlining

B  Misrepresentation

C  Blockbusting

D  Steering

A  Broker’s price opinion

B  Comparative market analysis

C  Credit analysis

D  Appraisal

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

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

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

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

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

D  Prepare an estoppel certificate and a listing agreement.

A  Buyer Trust Fund

B  Seller guarantees

C  Litigation

D  Title insurance

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

B  Bankruptcy has no impact on agency agreements.

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

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

A  Office manager

B  Associate broker

C  Salesperson

D  Broker

A  An offer

B  An implied contract

C  An executory contract

D  A voidable contract

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

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

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

A  Accession

B  Dedication by deed

C  Public grant

D  Adverse possession

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

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

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

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  Unemployment increasing, prices falling, and foreclosures on the rise

C  High but stabilized unemployment and a high number of foreclosures

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

A  Extended title insurance

B  Standard title insurance

C  Title survey and boundary insurance

D  Homeowners insurance

A  Slicing

B  Scrounging

C  Partitioning

D  Scraping

A  Inform all parties to the transaction

B  Inform the seller

C  Terminate her agency relationship

D  Say nothing

A  The seller’s real estate agent

B  The buyer’s attorney

C  The escrow agent

D  The buyer’s real estate agent

A  Real estate broker

B  Real estate educator

C  Sales associate

D  Real estate counselor

A  Determining land acquisition costs

B  Measuring distance

C  Calculating area

D  Measuring elevations

A  Earthquake fault zone

B  Seismic hazard area

C  Forest fire hazard area

D  High fire hazard area

A  Either Regina or Kevin can convey the property.

B  Kevin and Regina are the grantees.

C  Vickey is the grantor.

D  Vickey is the grantee.

A  Christine listed the property with you.

B  Tailleur represents the buyer.

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

D  Freida is paying your commission.

A  Bifurcation

B  Partition

C  Severalty

D  Parcel

A  Do Not Call Implementation Act of 2003

B  Anti-Telemarketer Act of 2000

C  CAN-SPAM Act of 2003

D  Junk Fax Prevention Act of 2005

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

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

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

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

A  $40,000

B  $45,000

C  $55,000

D  $50,000

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

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

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

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

A  Set to expire in 2016

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

C  Unconstitutional

D  Restricted to the protected groups named in the act

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

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

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

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

A  Appraisal by an appraiser

B  Quote by the lender

C  Assessment by the seller’s agent

D  Estimate by her broker

A  Give the lender first right of refusal.

B  Pay any charges and assessments against the property.

C  Agree to refinance only with the current lender.

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

A  The risks are minimized.

B  The salary is lower.

C  It may take longer to earn a commission.

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

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

B  It depends on how many units are for lease.

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

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

A  Exclusive listing agreement

B  Open listing agreement

C  Non-exclusive buyer representation agreement

D  Non-exclusive, not for compensation buyer representation agreement

A  Metes and bounds

B  Benchmark

C  Rectangular

D  Lot and block

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

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

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

D  Everything that’s not real property

A  In the Homeowner’s Guide to Earthquake Safety

B  In the Residential Environmental Hazards booklet

C  In the Natural Hazards Disclosure Statement

D  In the Real Estate Transfer Disclosure Form

A  $1,578.57

B  $1,246.10

C  $1,110.64

D  $1,780.75

A  Physical depreciation

B  Economic and material

C  Functional obsolescence

D  External depreciation

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

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

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

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

A  Demand the homeowner build another bedroom.

B  Call the police.

C  Investigate this discrepancy.

D  Ignore the discrepancy.

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

B  Every veteran qualifies.

C  The applicant must have a certificate of eligibility.

D  The applicant must have a certificate of reasonable value.

A  Preside over real estate cases in court

B  Value properties listing for sale or rent in California

C  Advise the governor on personal real estate dealings

D  Act as chief executive officer of the California DRE

A  The state attorney general

B  A private investigator

C  California DRE

D  An arbitrator

A  The duty of obedience

B  The duty of confidentiality

C  The duty of accounting

D  The duty of disclosure

A  $345,103

B  $383.822

C  $306,384

D  $635,513

A  Condemnation

B  Eminent domain

C  Inverse condemnation

D  Foreclosure

A  Voidable

B  Bilateral

C  Unilateral

D  Executed

A  Reasonable skill and care

B  Loyalty

C  Accounting

D  Obedience

A  Reference a previous property deed.

B  Ask neighbors where the property boundaries are.

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

D  Look for the point of beginning.

A  82%

B  97%

C  81%

D  83%

A  In none of these circumstances.

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

C  If the buyer is elderly.

D  If the buyer is a first-time buyer.

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

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

C  High but stabilized unemployment and a high number of foreclosures

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

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

B  Speaks to a local civic club about the homebuying process

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

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

A  Graduated mortgage

B  Fixed-rate

C  Pledged-account

D  Balloon payment

A  On a page marked required information only

B  On the home page only

C  On the contact page only

D  On every page

A  Calculate a commission check

B  Assemble closing documents

C  Place a for sale sign in a front yard

D  Host an open house

A  Exclusive, no compensation

B  Non-exclusive, no compensation

C  Exclusive

D  Non-exclusive

A  Low interest rates

B  Conversion of properties

C  Loan availability

D  High employment wages

A  Denial of responsibility for lead-based hazards

B  Lead abatement discount

C  Lead warning statement

D  Notice of local lead renovators

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

B  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

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

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  Voiding

C  Non-performance

D  Partial performance

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

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

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

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

A  Lower interest rates than are available on the open market

B  Reduced homeowner’s insurance requirements

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

D  A VA guarantee of the property condition

A  The cost of the title insurance for the property

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

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

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

A  Arbitration

B  Non-judicial foreclosure

C  Judicial foreclosure

D  Deed in lieu of foreclosure

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

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  The pink geraniums in the window boxes are fake.

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

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

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

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’s always involuntary.

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

A  Economic obsolescence

B  Functional obsolescence

C  External depreciation

D  Physical depreciation

A  It defines the duties an agent owes a client.

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

C  It precisely locates the property and its boundaries.

D  It details the terms for a lease.

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

B  When a party meets all terms of the contract

C  When a party acknowledges receipt of the contract

D  When a party rejects all terms of the contract

A  Net listing

B  Exclusive right to collect commission

C  Exclusive right to sell

D  Exclusive agency

A  Join a team

B  Spend more than usual on marketing campaigns

C  Send a mailer

D  Buy display advertising

A  James’ broker

B  A private investigator

C  California DRE

D  The state attorney general

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

B  Most sellers dislike advertising their property on an MLS.

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

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

A  Agent Visual Inspection Disclosure

B  Seller Property Questionnaire

C  Natural Hazards Disclosure statement

D  Real Estate Transfer Disclosure Statement

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  100

B  220

C  200

D  110

A  Condemnation

B  Sovereignty

C  Eminent domain

D  Police power

A  The broker

B  Both parties

C  The party possessing legal capacity

D  The party lacking legal capacity

A  $750,000

B  $608,292.4

C  $1,108,292.4

D  $500,000

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

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

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

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

A  It’s an encumbrance on the dominant property.

B  It does not involve an adjoining property.

C  It’s a temporary agreement between two parties.

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

A  Conformity

B  Substitution

C  Contribution

D  Anticipation

A  12

B  Four

C  Six

D  10

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

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

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

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

A  Payment debt

B  Loan-to-value ratio

C  Housing ratio

D  Total debt

A  TIL Statement

B  Freddie Mac borrower disclosure

C  Loan Estimate

D  Closing Disclosure

A  The state

B  The legally adopted children

C  The IRS

D  The illegitimate children

A  Alternatives

B  Substitutions

C  Conformables

D  Comparables

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

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

C  Design and remodeling ideas

D  Evidence of proper house cleaning

A  The agreement between the two firms

B  The size of the two brokerage firms

C  The marketing efforts the two firms used

D  The dollar amount the competitors lost

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

B  Only trust account records

C  Documents related to real estate activities that require a license

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

A  First-time buyers

B  Catholic parishes

C  Dentists

D  Commercial investors

A  Bulk zoning

B  Aesthetic zoning

C  Variance zoning

D  Architectural zoning

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

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

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

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

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

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

C  A charge of misrepresenting the property for sale

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

A  Redemption

B  Disposition

C  Achievement

D  Transfer

A  Because they’re minors.

B  Because they have insufficient resources.

C  Because they lack intelligence.

D  Because they’re immature.

A  Commercial zoning

B  Density zoning

C  Residential zoning

D  Bulk zoning

A  Street Improvement Act of 1911

B  Vrooman Street Act

C  The Improvement Bond Act of 1915

D  Mello-Roos

A  A special use permit

B  A variance

C  A zoning ordinance

D  A tax referendum

A  Farmer Mac Direct Loan Program

B  Farm Credit Administration Rural Loan Program

C  Small Town America Residential Loan Program

D  USDA Rural Development Single Family Housing Program

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

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

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

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

A  It is always illegal.

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

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

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

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

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

A  Eviction

B  Encroachment

C  Easement

D  Estate

A    

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

C  Department of Finance

D  Department of Licensing

E  California Department of Real Estate

A  Townships and sections

B  Principal meridians and base lines

C  Plat references

D  Compass headings and directions

A  Average

B  Low-risk

C  Subprime

D  Troublesome

A  Executed contract

B  Unilateral contract

C  Executory contract

D  Bilateral contract

A  Equal Credit Opportunity Act

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

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

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

A  Loan

B  Lender

C  Property

D  Borrower

A  Brownfields

B  Special purpose landfills

C  Unregulated waste disposal areas

D  Development of golf courses and parks

A  Illegal practices

B  Equal housing opportunity

C  Anti-discrimination disclosure

D  Fair housing rules

A  $330,000

B  $300,000

C  330

D  300

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

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

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

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