California Real Estate Exam Prep Questions and Answers 100% Pass

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California Real Estate Exam Prep Questions and Answers 100% Pass What type of entry door is required between the garage and entrance to the house? ✔✔Fire door; Self-closing. A buyer purchases ... a house for $300,000 and applies for a $250,000 loan. The buyer is asked to pay one discount point. How much money will the buyer have to pay? ✔✔$2,500; a discount point is 1% of the loan amt An offer or counteroffer could be expressed in all of the following; except: Text Email Telex Fax ✔✔A Telex; it would not provide for a signature What is a Township? ✔✔A square piece of land 6 miles by 6 miles. It is a 6 miles square and contains 36 square miles. What is a section? ✔✔A square piece of land 1 mile by 1 mile. It is 1 mile square and 1 square mile and contains 640 acres. How many square feet does an acre contain? ✔✔43,560 sq ft How many feet does a mile contain? ✔✔5,280 How many acres are in the following legal description: S 1/2 of the NW 1/4 of the NE 1/4 and the SW 1/4 of the NE 1/4, and the NW 1/4 of the SE 1/4 and the N 1/2 of the SW 1/4 and the E 1/2 of the SE 1/4 of Section 8. ✔✔Step 1: 2x4x4=32, 4x4=16, 4x4=16, 2x4=8, 2x4=8 Step 2: 640/32=20 640/16=40 640/16=40 640/8=80 640/8=80 Step 3: 20+40+40+80+80=260 acres In a personal property transaction, how much is the minimum amount for which you must write up a bill of sale? ✔✔$500 What best expresses the difference between a buyer's deposit in a sales transaction and an optionee's deposit in an option contract? ✔✔In an option contract, an optionee's deposit is nonrefundable Regarding backfill, what would be of the most concern? ✔✔Compaction and Stability When real property secured by a first trust deed sells for a price that is less than the loan amount owed on that note, this is called: ✔✔a short sale Which of the following is not a principal? Lender, seller, buyer, escrow ✔✔escrow Regarding employment, what length of time would a lender like to see that a borrower has been on the job in a particular industry in order to qualify for a loan? ✔✔2 years What is the Latin phrase meaning "buyer beware"? ✔✔caveat emptor In real estate, what does the term "draw" refer to? ✔✔an advance on future commissions What is the maximum number of units that could be considered a principal residence? ✔✔4 Which of the following is real property? Trade fixtures Emblements Plumbing Fixtures Free-standing appliances ✔✔Plumbing fixtures With the Exclusive Agency Listing form changed, what is the name of the new form? ✔✔Residential Listing Agreement Seller Reserved Legally and technically, property is defined as: ✔✔Rights or interests which a person has in the thing owned How is real property different from personal property? ✔✔Real property is immovable Which of the following is an aspect of real property? Land Fixtures Appurtenances All of the above ✔✔Land, fixtures, and appurtenances (all of the above) What is considered real property? ✔✔Land and any structures that are permanently attached to it (buildings or a bearing wall) Which of the following is not considered real property? Land Fixtures Leasehold Estates Appurtenances ✔✔Leasehold estates All of the following are considered real property, EXCEPT: Naturally growing crops which replenish themselves Emblements Fruit on a tree A fence on the land ✔✔Emblements A real estate broker may have difficulty with personal property because its ownership rights and identification may be difficult to determine. This is because personal property can: Be alienated Be hypothecated Become real property All of the above ✔✔All of the above (Be alienated, hypothecated, real property) Items that are fixtures are: Affixed to the land Incorporated into the land Real Property All of the above ✔✔All of the above (affixed to the land, incorporated into the land, real property) A 5-acre property is in escrow and has corn growing on it. The seller planted and cultivated the corn and has plans for the corn. The buyer also noticed the corn and has plans for the corn. Barring agreement, at close of escrow, which of the following will have the rights to the corn, and why: buyer or seller? ✔✔The buyer because he is paying for it Things that "run with the land": ✔✔Easements appurtenant Covenants Stock in a mutual water company Appurtenances are items that run with the land are incidental to the land. All of the following would be considered an appurtenance, except: Easements Covenant Water company stock fixtures ✔✔Fixtures What is an encumbrance? ✔✔Anything which affects or limits the title to real property A non-money encumbrance would be which of the following: Tax lein Easement Note secured by a deed of trust Mechanic's lien ✔✔Easement Land that is subject to an easement is said to be: ✔✔Encumbered Mr. James sold his land which had an easement appurtenant for a road. The deed which the buyer received contained an adequate description of the land, but made no reference to the easement. The buyer: ✔✔Has the same right to the easement as the seller did James sold Blackacre to Woods. At the time, Blackacrea had an appurtenant easement across Whiteacre, which was owned by Sommers. When Woods tried to use the easement, Sommers protested. Which of the following is correct: ✔✔An appurtenant easement always passes when the property is sold For more than 100 years, the Garza family has owned and operated gold mine on federal land. The only access to their mining claim is across an adjoining parcel. That parcel is sold to a new owner, who fences off the parcel and padlocks the gate across the access road. The Garzas would be best advised to ✔✔File a quiet title suit against the new owner to confirm their rights An easement on real property would be terminated if the holder of the dominant tenement recorded a: ✔✔Quitclaim deed An interest in real property may be acquired by either prescription or by adverse possession. The interest resulting from prescription is: ✔✔The right to use another's land Encroachment is a form of trespass, usually by building a structure a few feet over the property. If Jones built his garage a few feet over the property line extending onto Smith's property, what remedy does Smith have? ✔✔Sue Jones for Trespass A money encumbrance would be: restriction, easement, judgment, encroachment ✔✔Judgment The best definition of an estate: ✔✔The degree, quality, nature, and extent of interest which a person has in real property Freehold Estate ✔✔Ownership Fee Simple Estate ✔✔Absolute ownership with all the right of possession; The most interest an owner can hold in the land What is not included in the definition of a fee simple estate: 1. The property is always free of encumberances indefinite duration 2. The owner can possess, enjoy, encumber, and dispose of the property 3. It's transferable by will or intestate successioN 4. The property is always free of encumberances ✔✔4. The property is always free of encumberances If someone gave another some property with a condition, such as no alcohol sales or consumption be allowed. This is most likely what type of estate? ✔✔A fee simple defeasible estate A life estate is best described as which of the following: ✔✔An estate that is based on the duration of someone's life John and Mary conveyed a life estate to Margaret, Mary's mother. Margaret could live in the house for the rest of her life and when she died, the estate would revert back to John and Mary. What kind of estate to John and Mary hold? ✔✔An estate in reversion Mr. Tucker conveyed a life estate to his mother Beatrice. Beatrice could occupy the house for the duration of her life. When she died, fee simple title to the house would pass to Beatrice's brother., Mr. Conrad During the existence of the life estate, what kind of estate does Mr. Conrad have? ✔✔an estate in remainder Janet owned a life estate in a home measured on her own life. She leased the property to Peter for 5 years. Shortly after she executed the lease, she died. The lease was: ✔✔Valid for as long as Janet lived. Which of the following best indicates a less-than-freehold estate: Ownership that is shared with partners A leasing or renting interest A property that is encumbered with at least 1 lien A property with common-interest amenities ✔✔A leasing or renting interest An estate for years is a less-than-freehold estate. Which of the following is true about an estate for years: A. It is a leasehold interested created for a particular period of time B. it is a leasehold interest with a definite termination date C. No termination notice is required D. Both A & B are correct ✔✔D. Both A & B are correct If a person leased a store building for only 6 months, that person would have: ✔✔An estate for years A family rents a vacation home from September 1, 2002 to January 1, 2003. The family holds what kind of estate: ✔✔an estate for years Governmental land use planning and zoning are important examples of: ✔✔the use of police power The primary justification for zoning ordinances is to: ✔✔promote public health, safety, morals, and general welfare Davis owns a property that is zoned R-3. He has a front house and two rental units in the back. The city council has just changed the zoning to R-1. What is the status of Davis's property regarding the new zoning ordinance? ✔✔It is now legal, nonconforming and the current use in grandfathered in When an individual owns a property and dies without a will and without heirs, or when a person leaves money behind in an escrow or savings account, those assets have to revert to the state. This process is called ✔✔Escheat The Subdivision Map Act controls the types of subdivisions to be built and the physical improvements to be installed in a community. Who administers this law in the local area? ✔✔Cities and counties The Planning Commission does all of the following, except: Develops the general plan Maintains the master plan Regulates zoning ordinances Makes recommendations on zoning ordinances ✔✔Regulates zoning ordinances. Before burning trash on their property, an owner should contact ✔✔The local air district The general purpose of local building codes ✔✔to provide a minimum requirements and standards for the protection of the public safety, health, welfare, and general well-being In San Diego, the local building code conflicts with the uniform building code. Which code would take precedence and why? ✔✔Whichever code imposes the higher standard of safety The subdivided lands law is deigned to protect purchasers from fraud, misrepresentation, and deceit when newly subdivided land is sold. How does this law define a subdivision? ✔✔5 lots or more Who usually sets deed restrictions on a subdivision development? ✔✔the developer Private restrictions on real property can be written as a condition or covenants. Which of the following is most correct concerning such restriction: When recorded, they become public restrictions. Violation of such restrictions is subject to criminal prosecution Violation of a condition can result in penalties that are more severe and can result in loss of title. All of the above ✔✔Violation of a condition can result in penalties that are more severe and can result in loss of title. Public restrictions require that the minimum lot size in the new Shady Glen subdivision will be 5000 sq ft. Private restrictions require that the minimum lot size will be 7,500 sq ft. Which will take precedence and why? ✔✔7500 sq ft because the most restrictive restriction rescricts. The covenant of quiet enjoyment relates most directly to: Nuisances maintained on adjoining property Possession of real property Title to real property All of the above ✔✔possession of real property A subdivider must give a copy of the commissioner's Final Public Report to: ✔✔Any person, any time, upon request The Commissioner's Final Public Report on a residential development would include all of the following, except: Assurances that the developer has fully met the requirements of the Subdivided Lands Act Assurances that financial arrangements have been made to provide any community improvements Assurances that the developer is not charging an excessive price for the properties. Assurances that the developer has established the means to satisfy any warranties made to the purchasers ✔✔Assurances that the developer is not charging an excessive price for the properties. Which of the following represents the proper sequence for building a residential subdivision: ✔✔Acquisition, approval, development When the Real Estate Commissioner wishes to rescind approval of a new subdivision, he would likely: ✔✔issue a desist and refrain order A subdivider receives a negative declaration. What does it mean? ✔✔It means that building a subdivision at this location will not harm the environment For sales of subdivision interests under the Subdivided Lands Act, the liquidation damages a subdivider can collect from a defaulting buyer is limited to ✔✔the amount of the deposit Which of the following is described in this statement -- an undivided interest, in common, in a parcel of real property, together with a separate interest in the airspace in a particular unit ✔✔Condominium Which of the following must be furnished by the seller of a condominium to the buyer: The CC&Rs The bylaws A copy of the most recent financial statement All of the above ✔✔All of the above (The CC&Rs & The bylaws & A copy of the most recent financial statement) An infill developer is looking for: ✔✔an underutilized lot in a highly populated urban area and seeking to maximize the use of that lot Since the 70's, numerous laws have been put into place to help preserve the environment. What does the term smart growth refer to? ✔✔A development that is eco friendly The Brownfields Economic Development initiative: ✔✔It is a HUD program to distribute funds to public agencies; it's purpose is to assist in redeveloping contaminated industrial and commercial properties What identifies an EPA Superfund site: ✔✔Superfund refers to the collection of statutes coming out of the Resource Conservation and Recovery Act of 1976; Establishes a fund to clean sites that have been contaminated with toxic waste and to respond to spills on the property; Superfund, whenever possible, establishes liability for reimbursement of cleanup costs Which of the following would illustrate special categories of land use: Housing reserved for the elderly Resort living timeshares all of the boves ✔✔All of the above Waters found beneath the surface of the land, not in a defined channel, are called: subterranean waters marshes percolating waters estuary ✔✔Percolating waters An owner who has the right to pump out and use underground waters has what type of rights? overlying rights riparian rights prescriptive rights appropriate rights ✔✔overlying rights When the body of water adjacent to land is a moving watercourse, like a stream or river, the owner of the land is said to be which of the following: overlying rights riparian rights prescriptive rights appropriate rights ✔✔riparian owner If the body of water adjacent to land is not flowing, but has a shoreline, like a pond or lake, the abutting owners is said to be which of the following: overlying owner riparian owner prescriptive owner a littoral owner ✔✔a littoral owners The taking of water from a public stream for private use is called ✔✔appropriation Potable water is ✔✔water safe for drinking, a source of which is required for approval of a residential subdivision by DRE Fiduciary duties are best described as which of the following ✔✔utmost care, integrity, honesty, and loyalty A broker acting in a fiduciary capacity representing a client in dealings with third persons in selling, buying from, or exchanging real property is said to be bound by the laws of agency ✔✔agency Agency relationship law is found primarily in: ✔✔California civil code a real estate licensee generally acts by: ✔✔ratification; an ostensible agent; in a dual agency Which of the following best defines the principal in a transaction ✔✔it is the person who has appointed an agent to represent him or her in dealings with third parties Which of the following best identifies the client in a transaction: the buyer the seller the customer the principal ✔✔the principal What best identifies the customer in a transaction ✔✔the party owed simply honesty and fairness What best identifies the agent in a transaction ✔✔the broker who has entered into a contract with the principal Seller Houton listed a parcel of vacant land with Broker Jack. Broker Jack placed the listing in the multiple listing service (MLS). Salesperson Clinton, who is employed by Live Oak Realty, showed the land to buyer Barton. Salesperson Clinton is directly responsible to ✔✔Live Oak Realty The relationship of loyalty and trust that exists between an agent and a principal most nearly resembles the relationship between which of the following ✔✔trustee and beneficiary When dealing with the public, a broker may not: ✔✔Remain silent concerning material facts about a property known only to herself According to the laws of agency, which of the following would not be legally proper for a licensee to do ✔✔keep the client's secret that the roof leaks What best describes the practice of single agency ✔✔the single agency broker is client-oriented A dual agency is best described as: ✔✔one broker representing a buyer and a seller in the same transaction When an agency represents both buyer and seller in a transaction, which of the following is NOT permitted ✔✔Disclosing to a buyer that the seller will sell for less than the asking price Broker Sylvia has a real estate office. Linda, one of her associate licensees takes a listing on a house. Another of Sylvia's licensees is representing the buyer in the transaction. What best describes the type of agency that has been created ✔✔A dual agenchy What best characterizes "power of attorney" ✔✔it is a form of agency What is true regarding an attorney-in-fact ✔✔The attorney-in-fact must record the power of attorney What is the best way to create an agency relationship? ✔✔By written agreement When a property owner signs a listing agreement with a broker and intentionally confers upon her the specific authority to represent her, what type of agent is the broker? ✔✔A special agent Broker Montero brings an offer to the owner of a house that is not on the market. The owner looks at the offer and is pleasantly surprised and quite interested. He signs and accepts the offer. What is the status of the agency relation between the broker and the owner ✔✔there likely is an agency relationship by ratification in which of the following ways could an agency relationship NOT be established ✔✔a voluntary offer by the agent Agency can be created by all of the following methods, EXCEPT: agreement estoppel ratification subornation ✔✔subornation Which of the following is true regarding consideration and the issue of agency: ✔✔Consideration is not required to establish an agency relationship Broker Ben's elderly mother was selling her house to move into a convalescent home. Ben agreed to represent his mother, but stipulating he would work as a gratuitous agent, not accepting any commission. What is true about the broker working for free? ✔✔As a gratuitous agent, Ben's fiduciary responsibilities will be as high as any other broker-client relationship A house listed by a real estate agent closes escrow and the buyer moves in. Before putting the property on the market, and without the agent's knowledge, the son-in-law of the seller installed the electrical system, but was not an electrician, ande the work was not to code. Two months after closing, the house caught fire. The real estate agent ✔✔is innocent of any wrong doing The fiduciary duties of a subagent ✔✔is to the seller only A seller's agent: ✔✔acts as agent for the seller only A seller's agent owes to both the buyer and seller in a transaction all of the following, except: ✔✔Fiduciary duties A seller's agent is obligated to reveal all of the following information to a buyer in the transaction, except: that the roof leaks occasionally that the bonus room is not officially permitted that a death occurred in the property within the past 18 months confidential information ✔✔confidential information The listing agent is ✔✔The seller's agent A buyer executed a full price offer on Kelly's property. The seller's agent was leaving the office when another broker with whom he cooperated showed up with a second offer for $1000 less but with a larger down payment and other more favorable terms. what should the listing broker do? ✔✔present both offers at the same time When is a seller's agent relieved of the obligation to present an offer to the seller? ✔✔when the offer is patently frivolous or he is acting on express instruction of the principal [Show More]

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