California: Real Estate Principles Final Exam 2 023
C. Net Listing Answer: Which of the following listing agreements is illegal in most states?
Open Listing
Exclusive Agency Listing
Net Listing
Agency Coupled with Interest
C. The Cal-Vet loan program requires that the veteran have served a minimum of 90 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is no longer active); and be willing to buy a California home or farm. Barney would appear to qualify, based on the given information. Answer: Barney Dinesh
has served two years of active duty for the United States Army in the Middle East. He is still on active duty, though he is now stationed stateside in California. He and his new wife, Alma, have found a home they both love, and their agent tells them about the Cal-
Vet loan, saying that he believes Barney would qualify for this. What are the main requirements for such a loan, and does Barney (from the information given here) seem to qualify for the Cal-Vet program?
The Cal-Vet loan requires that the veteran have served a minimum of 120 days' active duty; provide an affidavit if on active duty (or an honorable discharge if not active); and a $500.00 deposit. Provided Barney can procure this affidavit, and the deposit money, it
appears that he would qualify.
The Cal-Vet loan program requires that the veteran have served a minimum of 120 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is no longer active); and be willing to buy a California home or farm. Based on the information provided herein, Barney should qualify for the program.
The Cal-Vet loan program requires that the veteran have served a minimum of 90 days' active duty; provide Statement of Service if on active duty (or an honorable discharge if he is no longer active); and be willing to buy a California home or farm. Barney would appear to qualify, based on the given information.
The Cal-Vet loan requires four essentials: (1) The veteran must have served a minimum
of 90 days' active duty; (2) The veteran must provide a Statement of Service if on active duty (or an honorable discharge if he is no longer active); (3) The veteran must be willing to buy a California home or farm; and (4) Most importantly, the veteran must meet the requirements for a Veterans Administration (VA) loan before he can be approved for a Cal-Vet loan (This doesn't mean he is going to take out a VA loan, but merely that he meets the federal VA standards). There is not enough information given in the question to determine whether or not he'd meet the federal VA qualifications; so the second part of this question cannot be answered.
B. A Bridge Loan Answer: Karen and Jay need a larger home. They have two large dogs and a baby on the way. One day in the real estate section, they see their dream home. The couple view the home that very day, make an offer, and it's accepted. There's only one problem: They haven't even put their home on the market. Which type of loan gives Karen and Jay their best option of paying two mortgages until their current home sells?
A Participation Mortgage
A Bridge Loan
A Sale-Leaseback
A Contract for Deed
A. Outmoded plumbing fixtures or inadequate closet space. Answer: Which of the following is a type of functional obsolescence?
Outmoded plumbing fixtures or inadequate closet space.
Installing siding on a building which also needs major interior repairs.
A residence when an industrial plant is built next to it.
Any of the above.
B. The money is insured by the Federal Housing Administration. Answer: Newlyweds Andrew and Kimmie Briggs enjoy sparring over the details of life. They squabble good-
naturedly over a game of Scrabble, the pronunciation of French words, and now, over the type of home loan they're getting on their first home. They know it's FHA, but neither
is sure WHAT the FHA has to do with the loan. An FHA loan means:
The money is loaned by the Federal Housing Administration.
The money is insured by the Federal Housing Administration.
The money is guaranteed by the Federal Housing Administration.
The Federal Housing Administration builds homes and loans money.
A. Practice of Real Estate and Mandated Disclosures Answer: Carol is studying for the California real estate license examination. She knows she has to know all areas covered in the examination extremely well to pass. Which portion of the examination, approximately, makes up the largest portion of the test?
Practice of Real Estate and Mandated Disclosures
Contracts
Transfer of Property
Financing
D. Police power. Answer: The right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public is known as:
Eminent domain.
Conversion.
Subversion.
Police power.
C. Deeds of Trust are used instead of mortgages, which allows borrowers greater flexibility and protection. Answer: Which of the following is not a characteristic of the California mortgage market?
California has a large amount of the country's biggest commercial and savings banks.
California has a high population, therefore more people means more homes are needed. Deeds of Trust are used instead of mortgages, which allows borrowers greater flexibility
and protection.
California has a very active secondary mortgage market.
B. No, the termination of an escrow does not terminate the associated contract. Answer:
John and Thom are purchasing their dream home. Due to the expiration of escrow instructions, the escrow has been terminated. Have they lost the contract on the house of their dreams?
Yes, once the escrow is terminated all contracts associated are also terminated.
No, the termination of an escrow does not terminate the associated contract.
No, if the escrow is terminated the contract can remain valid; however, if the escrow is cancelled, the contract is cancelled.
Both B and C
A. If real property is involved in the sale, the broker (Alison, in this case) usually treats the sale of the business and sale of the land/building as two separate and concurrent transactions with two concurrent and contingent escrows Answer: Alison Skateland, a real estate broker in Yuba City, California, has recently become interested in the sale of business opportunities — particularly restaurants and bakeries. The authority to conduct
such business is covered under her real estate license, but Alison does need to know the proper way to handle such transactions. Which of the following is not an accurate statement about the handling of business opportunities?
If real property is involved in the sale, the broker (Alison, in this case) usually treats the sale of the business and sale of the land/building as two separate and concurrent transactions with two concurrent and contingent escrows.
The sale of business opportunities may involve the sale of only personal property.
Alison, in dealing with the sale of business opportunities, must remember to inform the purchaser of the various governmental agencies that the purchaser should contact for required permits, licenses, and clearances. These agencies include the IRS, State Board of Equalization, State Department of Benefit Payments, State Department of Industrial Relations, and various other county and municipal agencies.
The sale of a business opportunity includes the business's stock, trade fixtures, and trade name, a non-competition agreement, and lease assignment. While such a sale also includes the goodwill of a business, a monetary value cannot be placed on the goodwill.
D. As long as Bill refused the financing based solely on economic reasons (lack of job stability, poor credit rating, income, or net worth), he has acted lawfully and will not face any disciplinary action. Answer: Credit union president Bill Bradley has just refused a loan for 25-year-old LaDawna Kingston, an African-American woman and, in his opinion, the very definition of a "religious zealot." Bill refused the loan based on her credit rating and lack of job stability. When LaDawna learns of his refusal, she tells him she's calling an attorney, because she's been discriminated against. Which of the following statements is true in this situation?
Bill could be in big trouble, since it is illegal for a real estate licensee to discriminate against a person seeking a loan based on racial, religious, or economic reasons.
