Exam (elaborations)
California Real Estate Exam Questions (1)
California Real Estate Exam Questions (1)
[Show more]
Seller
Follow
Content preview
California Real Estate Exam QuestionsBroker A receives two offers on Seller B's house, which is listed for sale at $250,000. The first
offer is for all cash at $200,000. The second offer is for 20% down with 80% financing for the full
price. What should the broker do with respect to both offers? - ANS-Present both offers to the
seller as soon as possible.
The two primary documents dealing with payment of a loan are the mortgage or deed of trust
and a - ANS-promissory note.
The term that best describes a continuous urban corridor joining at least two cities is -
ANS-megalopolis.
The term real property can also be described as - ANS-the bundle of rights.
The rights of a landowner to a river bordering her property are known as - ANS-riparian rights.
In the case of a transfer of ownership of a piece of real estate, a fixture is normally -
ANS-assumed to be included in the transfer.
A tenant who operates a jewelry store wants to take his jewelry cases with him at the expiration
of the lease. What is the best solution? - ANS-He may take the cases if removal will not cause
substantial damage.
A legal description of property is not adequate unless - ANS-land boundaries are defined.
The lot and block system of property description is not also known as the - ANS-rectangular
survey system.
What best describes the interests of the holder of a life estate? - ANS-possession, use, and
ownership
How many acres does a section of land contain? - ANS-640
The requirement that multiple owners take title to property at the same time is a characteristic of
- ANS-joint tenancy.
The type of ownership that provides the most complete bundle of rights is - ANS-fee simple
absolute.
Which are most similar to each other with respect to inheriting property? - ANS-joint tenancy
and community property with right of survivorship (both allow for reversion to remaining owners)
,A statement of the goals and policies regarding growth of a community is a good definition of
the - ANS-general plan.
The primary difference between a common interest subdivision and a standard subdivision is -
ANS-ownership of common areas.
Which of the following is a generic term for a group of people joining together to invest in real
estate? - ANS-syndicate
The proper way for a landowner who has physical difficulty in developing his property to get
relief is to obtain a - ANS-variance.
When is a landowner entitled to compensation for a change in zoning? - ANS-when the
landowner is denied all practical economic use of the property
At which lot does the Subdivided Lands Law take effect? - ANS-the fifth lot
The state has enacted legislation providing special consideration or control for development of -
ANS-rangeland, earthquake areas & coastal areas
The land that benefits from an easement is referred to as the - ANS-dominant tenement.
All liens are encumbrances. All encumbrances are - ANS-limitations.
A deed restriction prohibiting the sale of property to certain ethnic groups - ANS-is illegal and
unenforceable.
A mechanic's lien creates - ANS-a cloud on title.
A private deed restriction that places a restraint on alienation - ANS-is void, restricts the sale of
property and is unenforceable.
An easement is an encumbrance - ANS-always.
The seller of a one-family house is required to disclose to buyers - ANS-the structural and
mechanical condition of the property.
The process by which eminent domain occurs is called - ANS-police power.
An agent represents a - ANS-principal.
Which of the following types of easement does not run with the land? - ANS-the electric
company's easement to cross over your land with their power lines
,What is another term for an agent entrusted to act on someone's behalf? - ANS-fiduciary
The agent who brings a ready, willing, and able buyer to a seller is commonly called the -
ANS-procuring cause.
Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to pay Broker A
a commission if he successfully sells the house. What do we know for certain based on these
facts? - ANS-A bilateral express contract exists between Broker A and Seller B
Broker A has a listing agreement to sell Seller B's house. Broker A brings an offer to Seller B on
behalf of Buyer C. Seller B rejects the offer and a week later attempts to negotiate directly with
Buyer C. Seller B has violated - ANS-the duty of care.
Seller A wants to walk away with $200,000 after the sale of her house and all expenses are
paid. She agrees that Broker B can keep, as his fee, anything he gets above that. What type of
agreement have they made? - ANS-a net listing
Seller A has signed a listing agreement with Broker B. Without the assistance of Broker B, Seller
A sells her property and under the terms of the listing agreement owes no commission to Broker
B. What type of listing agreement did Seller A sign? - ANS-an exclusive agency listing
A cooperating broker may represent - ANS-the buyer or the seller or the listing broker
This is not a type of listing agreement? - ANS-multiple listing
Broker A has a listing to market Seller B's house. He also has a buyer's agency agreement to
find a house for Buyer C. If Buyer C becomes interested in Seller B's house what might the
danger be, if any, to Broker A? - ANS-the creation of a dual agency (this can be taken care of by
disclosing to both parties)
Who of the following owes fiduciary responsibility to the buyer? - ANS-the buyer's agent
A broker hired to sell a house is considered a - ANS-special agent.
A real estate salesperson is always considered an - ANS-employee.
Seller A wants to get the broadest exposure for the sale of her house but does not want to pay a
commission if she sells the house herself. What type of listing will she try to establish? -
ANS-open listing
All agency agreements for the sale of property must be in writing except creation of an agency
by - ANS-there are no exceptions.
, The most profitable single use that will generate the highest value for a piece of property is
called it's - ANS-highest and best use.
Broker A agrees in writing to keep details of Seller B's property in his files but indicated that he
will not actively market it. Seller B agrees to pay Broker A a commission if he finds a buyer. This
agreement would best be described as - ANS-express unilateral.
Which of the following is not a characteristic of value? - ANS-change
An uncashed deposit check usually may be held and not deposited by the broker for how many
days before an offer is accepted? - ANS-until the offer is accepted
Two lots, each valued at $50,000, when combined have a value of $125,000. What term best
describes this added value? - ANS-plottage
What is deducted from potential gross income to arrive at an effective gross income? -
ANS-vacancy and collection loss
In the income approach to estimating value, another term for the capitalization rate is - ANS-rate
of return.
In appraising a property, the process by which dissimilarities are accounted for in comparing a
subject property and a comparable property is called - ANS-making adjustments.
An appraisal may have more than one date on it. The date of the value estimate is the -
ANS-effective date.
What is an example of functional obsolescence? - ANS-having to get to a bedroom by going
through another bedroom
If you assume that depreciation occurs at an even rate, what method of calculating depreciation
would you be using? - ANS-economic age life method
A parking lot in a downtown area being developed with office buildings is most likely - ANS-an
interim use of the property.
Potential gross income of an investment property is the same as - ANS-market rent plus other
building income.
The gross rent multiplier approach is a useful income approach in appraising -
ANS-single-family homes.
Which approach to valuation estimates land and building value separately? - ANS-cost
approach
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.17. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73091 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now