Real Estate Principles- Licensing Exam [2025 EDITION]
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Course
Real Estate
Institution
Real Estate
Real Estate Principles- Licensing Exam
[2025 EDITION]
When a railroad company informs a landowner that it intends to construct a railroad line across their
property, and the landowner objects to the construction, the railroad company has the legal right to
proceed with the project throug...
Real Estate Principles- Licensing Exam
[2025 EDITION]
When a railroad company informs a landowner that it intends to construct a railroad line across their
property, and the landowner objects to the construction, the railroad company has the legal right to
proceed with the project through the use of: Eminent domain. This process allows the
government or a private entity with the power of eminent domain to take private land for public use,
compensating the owner for the land taken.
In the context of estate planning, when real property is transferred to a beneficiary via a will, it is
referred to as: A devise. A devise is a legal term used for the transfer of real property through a
will or testamentary instrument, ensuring the property goes to the designated individual upon the
testator's death.
A real estate broker, who receives 40 acres of land valued at $300 per acre as commission from a seller,
learns two weeks after the escrow has closed that the land is now being offered for sale at $400 per
acre. If the broker decides to accept the offer, they: Will be acting in an acceptable manner.
Brokers are allowed to sell property that they have received as commission, and the decision to sell at a
higher price is entirely acceptable as long as it is done legally and transparently.
In a situation where there is a dispute regarding commission on an open listing, the term "procuring
cause" would be significant in determining: Who is entitled to the commission. Procuring cause
refers to the agent or broker whose efforts directly resulted in the sale or transaction. It plays a key role
in commission disputes, especially in open listings where more than one agent might be involved.
Which of the following is not considered a necessary element for a contract to be legally valid and
enforceable? Performance. While performance is often important, it is not considered an
essential element of a contract. The basic requirements for a contract include offer, acceptance,
consideration, and mutual consent.
Under the Street Improvement Act of 1911, cities are given the authority to levy assessments on
landowners for the cost of street improvements. These assessments are typically based on: Front
footage. The assessment is calculated by measuring the frontage of the property along the street being
improved, and the landowner is responsible for their proportionate share of the cost.
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, The fiscal year for real estate taxes in California covers the period from: July 1 to July 1. This
period is the standard for property taxation and provides the timeline for property owners to pay their
taxes, with payments typically due in two installments.
The landmark decision in the U.S. Supreme Court case that established legal protection against housing
discrimination based on race was: Jones vs. Mayer. This 1968 case reinforced the Fair Housing Act
and the civil rights of individuals, ensuring that racial discrimination in housing transactions was
unlawful.
Most real estate syndicates in California are typically organized as: Limited partnerships. This form
of partnership allows investors to participate in real estate ventures while limiting their liability to the
extent of their investment, making it a popular structure for real estate syndicates.
Under the California Veterans Home and Farm Purchase Act of 1974, veterans who wish to purchase
homes or farms using their benefits acquire possession through a: Land contract. This allows
veterans to make payments over time while living on the property, eventually obtaining full ownership
after all terms are met.
In the process of approving a subdivision under the Subdivision Map Act, which body holds the
responsibility for the approval? Planning Commission. This body reviews proposed subdivisions to
ensure they meet local zoning and land-use regulations, approving plans for development before
construction can proceed.
A grant deed is a type of deed in which the grantor: Warrants that the property has not been
previously conveyed to anyone else. The grant deed ensures that the grantor has not transferred
ownership of the property to another party, providing a guarantee of clear title to the grantee.
When an appraiser is conducting an income approach appraisal, the rent of the property is analyzed by
considering which of the following characteristics? Durability, quality, and quantity. These factors
are crucial in assessing the sustainability of the income stream that the property can generate over time,
influencing its overall value.
If an income-producing property is appraised at $100,000 based on a 6% capitalization rate, and an
investor applies an 8% capitalization rate, the new appraised value of the property would be:
$75,000. A higher capitalization rate reflects a higher risk or a lower expected return, thus
lowering the value of the property.
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