California Broker Real Estate UPDATED Exam Questions and CORRECT Answers
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California Broker Real Estate
Institution
California Broker Real Estate
California Broker Real Estate UPDATED
Exam Questions and CORRECT Answers
Broker 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 th...
California Broker Real Estate UPDATED
Exam Questions and CORRECT Answers
Broker 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? - CORRECT
ANSWER- 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 - CORRECT ANSWER- promissory note.
The term that best describes a continuous urban corridor joining at least two cities is -
CORRECT ANSWER- megalopolis.
The term real property can also be described as - CORRECT ANSWER- the bundle of rights.
The rights of a landowner to a river bordering her property are known as - CORRECT
ANSWER- riparian rights.
In the case of a transfer of ownership of a piece of real estate, a fixture is normally -
CORRECT ANSWER- 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? - CORRECT ANSWER- He may take the
cases if removal will not cause substantial damage.
A legal description of property is not adequate unless - CORRECT ANSWER- land
boundaries are defined.
The lot and block system of property description is not also known as the - CORRECT
ANSWER- rectangular survey system.
What best describes the interests of the holder of a life estate? - CORRECT ANSWER-
possession, use, and ownership
,How many acres does a section of land contain? - CORRECT ANSWER- 640 acres
The requirement that multiple owners take title to property at the same time is a characteristic
of - CORRECT ANSWER- joint tenancy.
The type of ownership that provides the most complete bundle of rights is - CORRECT
ANSWER- fee simple absolute.
Which are most similar to each other with respect to inheriting property? - CORRECT
ANSWER- 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 - CORRECT ANSWER- general plan.
The primary difference between a common interest subdivision and a standard subdivision is
- CORRECT ANSWER- ownership of common areas.
Which of the following is a generic term for a group of people joining together to invest in
real estate? - CORRECT ANSWER- syndicate
The proper way for a landowner who has physical difficulty in developing his property to get
relief is to obtain a - CORRECT ANSWER- variance.
When is a landowner entitled to compensation for a change in zoning? - CORRECT
ANSWER- when the landowner is denied all practical economic use of the property
At which lot does the Subdivided Lands Law take effect? - CORRECT ANSWER- the fifth
lot
The state has enacted legislation providing special consideration or control for development
of - CORRECT ANSWER- rangeland, earthquake areas & coastal areas
,The land that benefits from an easement is referred to as the - CORRECT ANSWER-
dominant tenement.
All liens are encumbrances. All encumbrances are - CORRECT ANSWER- limitations.
A deed restriction prohibiting the sale of property to certain ethnic groups - CORRECT
ANSWER- is illegal and unenforceable.
A mechanic's lien creates - CORRECT ANSWER- a cloud on title.
A private deed restriction that places a restraint on alienation - CORRECT ANSWER- is
void, restricts the sale of property and is unenforceable.
An easement is an encumbrance - CORRECT ANSWER- always.
The seller of a one-family house is required to disclose to buyers - CORRECT ANSWER- the
structural and mechanical condition of the property.
The process by which eminent domain occurs is called - CORRECT ANSWER- police
power.
An agent represents a - CORRECT ANSWER- principal.
Which of the following types of easement does not run with the land? - CORRECT
ANSWER- 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? - CORRECT
ANSWER- fiduciary
The agent who brings a ready, willing, and able buyer to a seller is commonly called the -
CORRECT ANSWER- 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? - CORRECT ANSWER- 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 - CORRECT ANSWER- 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? - CORRECT ANSWER- 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? - CORRECT ANSWER- an
exclusive agency listing
A cooperating broker may represent - CORRECT ANSWER- the buyer or the seller or the
listing broker
This is not a type of listing agreement? - CORRECT ANSWER- 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? - CORRECT ANSWER- 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? - CORRECT ANSWER-
the buyer's agent
A broker hired to sell a house is considered a - CORRECT ANSWER- special agent.
A real estate salesperson is always considered an - CORRECT ANSWER- 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? -
CORRECT ANSWER- open listing
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