CA Real Estate Exam- Practice Questions and Answers 100% Verified

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CA Real Estate Exam- Practice Questions and Answers 100% Verified Two friends hold title as joint tenants. One borrowed money and executed a deed of trust against the property. In terms of affectin... g title this action could: ✔✔Place the beneficiary in a precarious position should the borrower die before the debt is paid. Joint tenant estate held by two joint tenants is severed and ended by the following: ✔✔A foreclosure by one of the joint tenants. One of the joint tenants transfers his interest to a third party. One of the joint tenants sell his interest. A man owns six seperate parcels of real property. He wants to offer all of the parcels as security for a mortgage loan. The mortgage that he will obtain will probably be? ✔✔A blanket mortgage All of the following acts of one joint tenant terminates a joint tenancy except when the joint tenant: ✔✔Mortgages his or her share Avulsion ✔✔Is the sudden tearing away of land by the the action of water When appraising a home build in 1910 the appraiser must use: ✔✔Today's cost and today's reproduct ion cost The appraiser gives an 30 year old home a rating of 6 years is called: ✔✔Effective age a home painted in 1972, even if the seller repainted the property a lead based paint booklet is required, if not, the ommission allows the buyer to: ✔✔cancel the transaction. Not funtional obsolescense - ✔✔Proximity of nuisances Intestate means: ✔✔Someone that left no will A principle may request an accounting from the real estate agent of his funds : ✔✔At any time The seller's responsibility is to transfer the property: ✔✔Free and clear When compare to real estate, stocks and bonds are: ✔✔More liquid Which of the following are liens? ✔✔Incometax Judgements Attachment subagents: ✔✔They work for the seller If a builder pays $35 an hour to a hostess, to perform an open house, to answer questions: ✔✔a license is required to answer questions Who must disclose Mello ✔✔Seller (OWNER) if the electrical was intalled by the son-in-law of the seller, and not to code and the buyer moves in, and after, the property catches on fire : ✔✔the real estate agent is innocent of any wrong doing Miles sold a home to North with the help of Olsten, if the buyer (North) finds out that something was not properly disclose by Miles and Olsten, this is called: ✔✔Fraud Logan sold a home to Hughes, if Hughes backs out: ✔✔Logan can sue for a specific performance A buyer pays for which of the following? ✔✔Escrow, Title, Insurance The granting of doing business or to sell a product under a name with restrictions from the grantor is called: ✔✔Franchise Agents may get sued for: ✔✔Any Wrong doing A person who is delegated in an intrument to legally do something for another person in his stead is called ✔✔Attorney in fact The terms of exclusive right to sell listing are ✔✔The exact requirements of the sellers instructions An advertisement to lease properties only to married couple is ✔✔Illegal The offers must be presented: ✔✔even if they are oral and in writing Intangible personal property: ✔✔is not taxible The real estate commissioner" ✔✔Promulgates the real estate law Unemployment: ✔✔Does not affect the interest rates directly Payment of Money ✔✔is not necessary for a valid contract To hire self employed agents is an advantage: ✔✔Is an advantage because the broker doesnt collect social security Balloon payment means: ✔✔all balances due at once If the A.P.R. is disclose: ✔✔No additional disclosures are required An easement can be canceled by signing a: ✔✔Quitclaim deed For income tax purposes improvements are ✔✔Added to the basis of the property. For income tax purposes improvements are ✔✔Added to the basis of the property Information concealment by an agent is ✔✔Misrepresentation A strip lines of stores are: ✔✔Shopping centers In a counter offer: ✔✔the buy may reject to perform or to cancel The agency is terminated ✔✔if the property is destroyed by fire Outmoded design is: ✔✔Function absolescene In a purchase money trust deed" ✔✔A loan disclosure is required A lender may evict a borrower within ✔✔3 months A mispelled name in a deed: ✔✔May be corrected with a quitclaim deed A standard policy of title insurance doesnt cover ✔✔property lines oral commission ✔✔are legal if the seller selects to do so Conflicts with the LA county codes and the uniform codes ✔✔the one with the highest standards of safety will apply An offer presented with a $1000 note ✔✔Communicate to the seller the type of deposit before acceptance 1/2 a mile by 1/2 miles is: ✔✔160 Acres When appraising a site the appraiser applies the ✔✔Highest and best use Successor liability has to do with ✔✔The Alcohol Beverage Control Board If equal payments are made ✔✔The equity increases and interest rate decreases an offer written on April 24th with a contingency, the seller to respond within 5 days, if the seller fails to respond: ✔✔The seller must return the deposit to the buyer The analysis for a residential property is : ✔✔Marketability and acceptablility Impound account is ✔✔recuring cost items If a broker has out-of state relatives and wants to buy a propery in CA. With a lease option to buy,the broker must present disclosure to ✔✔The seller (owner) Owner Tesoro listed a valand with Broker Gonzalez for $124,200, Buyer Carter made and offer for $123,000 with a 3 days expiration date. The following date the seller counter back with a sales price of $123,600. When Broker Gonzales presented the counter offer to buyer Carter he rejected the conter offer. When Tesoro found out of Carters rejection the seller accepted Carter's previous offer of $123,000. Which of the following is true? ✔✔There is no contract Which of the following is invalid in its inception? ✔✔Legal incompetence of a grantor Which of the following is essential for an agency: ✔✔Competency, Fiduciary, Agreement to the parties to the contract Before communication to the perspective purchaser of the seller acceptance of an offer, the buyer may cancel for any reason ✔✔at any time Buyer Hanson, contacted Broker Cohen, Hanson told Cohen that he wants to buy a property that is not listed. Broker Cohen approaches the seller to obtain a listing, the seller told Cohen that he is not intrested in selling. A week later buyer Hanson got into negotiations with the seller, which of the following is true? ✔✔The broker is entitled to nothing The duty to preserve confidential information terminates ✔✔When the agency ends Buyer wilson signed an offer before the listing broker could obtain an unqualified acceptance Wilson died ✔✔The death of Wilson worked a revocation of the offer The labor code 37000 is ✔✔Workers Comp Corn Crops are ✔✔Emblements The fiduciary duty to the seller is the same as ✔✔Beneficiary to trustee Take out stands for ✔✔Long term construction loan RESP applies to which of the following properties? ✔✔Single family homes 1-4 units Escrow settlement statement: ✔✔could be different SAM LOAN: ✔✔Shareed Appreciation Mortagage- any increase in the value of the home will be split with ur mortgage lender. SAM loans are recommended in a strong financial market CHILD SUPPORT ✔✔Has to be paid before a license is issued The benefits of Tax Shelter ✔✔Income tax purposes Brokers Trust Account ✔✔It is not necessary for a broker to have one REAL PROPERTY ✔✔Vegetation FNMA (Fannie Mae) ✔✔Provides a secondary market for FHA and VA Company dollar ✔✔is the amount of commission reamining to the broker after paying the salesperson and other possible commissions. A property held in "Severalty" is owned by: ✔✔Sole Ownership What is the best way to depreciate a 20 year old commercial building ✔✔Straight line depreciation The land that is subject to an easemnt is ✔✔Encumbered Subdivision reports must be filed with the ✔✔city or county where the land is located The agent most likely to earn a sales commission ✔✔Is the one who communicates acceptance of the offer from the seller to the buyer If a buyer withdraws ✔✔the seller may sue for a specific performance PARTY WALL ✔✔Is a wall that divides two apartment buildings What does Lis Pendens stand for ✔✔Judgment pending The construction member found above the doors and windows is called ✔✔Header Turnkey Project ✔✔Is a construction project completed (ready for occupancy) Grandfather clause ✔✔is a continuation of a non-conforming use Interim use ✔✔is the current use of a building to its highest and best use R ✔✔Resistance to heat flow EEr ✔✔Energy Efficiency Ratio Leverage ✔✔Is to borrow money to the maximum extend possible Novation ✔✔Is a contract replace entirely by a new one Ownership rights are represented by ✔✔Estate or Fees Home Accomodations mean ✔✔Units 1 through 4 Police power means ✔✔Zoning Acceleration clause means ✔✔permits the lender to call the loan for behind payments "Due-on-Sale" means ✔✔Alienations. Under aliation, permits the lender to demand full payment of loan in the event title is transferred An agent may sell a mobile home that is ✔✔Registered A fictitous business name expires ✔✔Every 5 years on December If a lender accepts a deed in lieu of foreclosure he assumes ✔✔Any junior liens Metes and bounds represents ✔✔Metes are measures of length, inches, feet, yards and bounds are measures of boundaries, using, monuments or benchmarks nature or artificial The members that support the roof loads is the ✔✔Rafters The new owner would probably prefer to have which items removed from his title report at the time of transfer ✔✔A mechanics lien A voidable contract is ✔✔Valid until voided The maximum commission a broker may charge a seller for the sale of residential income property is ✔✔Negotiable An offeror signed a contract under duress the contract is ✔✔voidable by the offeror A business opportunity sold with a document similar to a deed is called ✔✔Bill of Sale The transfer of Bulk sales applies to ✔✔Transfer of personal property, inventory or merchandise Loan origination fees are paid by the ✔✔Buyer [Show More]

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