California Real Estate License Exam 1 with complete solutions(scored 100%)

1.1. A title was recorded for a parcel of real property vested in the name of Johan Wilson, a single woman. After her marriage to William Roberts, she executed a deed to the property only in the name of Johan Roberts, a married woman. The discrepancy in the grantors name is: A. Valid if William Roberts agrees to it B. A defect on title that may cause title to be vested as tenants in common C. Immaterial if the property is properly described D. A defect which may cause a cloud on the title A defect which may cause a cloud on the title. 1.2. Which contract would be the most difficult for a buyer to obtain financing? A. Land Contract B. FHA C. VA D. Conventional Land Contract 00:01 01:17 1.3. When a broker runs an advertisement, the broker must disclose: A. Last name of the broker B. Name of the broker C. Name of broker and salesperson D. Name of the salesperson Name of the broker 1.4. Following in-house sales are true, except: A. The listing agent can act as a dual agent B. The listing broker can act as a buyers agent only C. The broker may purchase the property himself D. The seller may represent the seller only The seller may represent the seller only 1.5. The Federal Housing Administration (FHA) was created primarily: A. To provide insurance for home loans in the secondary market B. To insure the borrower C. To provide insurance for home loans made by approved lender D. To improve the economy for mortgage bankers To provide insurance for home loans made by approved lenders 1.6. Which of the following loans on a home would probably be made without requiring a down payment from the borrower? A. VA Loan B. CAL-VET C. FHA D. Conventional VA Loan 1.7. A person who wishes to purchase a home using the Cal-Vet program would send his application to: A. Department of Real Estate B. Real Estate Commissioner C. Department of Veterans Affairs D. Veterans Administration Department of Veterans Affairs 1.8. The item that would appear on the debit side of a buyer's closing statement would be: A. Purchase Price B. Prepaid Rents C. Mortgage Insurance D. Down Payment Purchase Price 1.9. When dealing with the public, a broker may not: A. Disclose any of his duties to other agents B. Remain silent concerning material facts about a property known only by himself C. Reject a listing if it is discriminatory or overpriced for minorities D. All of the above Remain silent concerning material facts about a property known only by himself 1.10. Which of the following is the reason that a real estate agent must keep his principal informed of material facts concerning a pending real estate transaction? A. When the agent is a fiduciary B. When it's printed on the purchase agreement C. When the agent concerned with the commission which seller is paying D. When the broker works only for the seller When the agent is a fiduciary 1.11. A buyer relied upon the fraudulent statement of the seller's agent and was damaged. The seller was unaware of the agent's false statement, and he tried to enforce the agreement. The buyer: A. Could sue the seller for fraud B. Could sue the seller's agent for fraud C. Has sufficient grounds for recission D. Could do any of the above Could sue the seller for fraud, could sue the seller's agent for fraud, has sufficient grounds for recission 1.12. Lenders know that the lower the loan-to-value ratio, the higher the: A. Interest Rate B. Risk C. Loan to Value Ratio D. Equity Equity