Exam 3

Which of the following is easement for non-use?

Which of the following would be considered a real property?

A real estate broker may have difficulty with personal property because its ownership rights and identification. This is because personal property can:

Alienation is the opposite of:

A deposit to purchase real estate is held by escrow. In case of a conflict as specified in the purchase agreement. When is the escrow allowed to disburse the deposit?

When an owner acquires land with riparian rights, such rights:

The agent’s commission for negotiating a real property lease is fixed by:

When rent is computed on the gross sales of a business, the lease is correctly termed:

Which of the following is easement for non-use?

The rights or power to sell property in the event of a default under the terms of the trust deed is given by:

The purpose of the Truth-in-Lending Act is to:

Which of the following indicators would best define the purchasing power of the U.S. dollar?

Conversation about a real estate finance that includes a reference to “warehousing” activity would probably be referring to:

Lenders sometimes require borrowers to deposit amounts with the monthly mortgage payments to cover some costs related to the property. Which of the following would not be included in such impounds?

The assessment roll for real property taxes is the listing of all taxable properties in the assessor’s jurisdiction with the assigned assessed value for the properties. The purpose of the assessment roll is for:

Reserves or impounds of all of the following are recurring costs by a lender, except:

Which of the following persons would usually be in the weakest position against loss of property due to a claim of title by an outside person?

Valuable, adequate, and good sufficient means:

Dual Agency is legal if:

Which of the following is most nearly correct concerning buyer’s agency?

If a broker is an agent of the seller, he owes to the buyer:

Buyer Clark contacted broker Jacob to find out if Jacob had a listing on a certain property that buyer Clark was interested in purchasing. Broker Jacob did not have a listing on the property he questioned but informed buyer Clark that he would get the full details and relates it to him. The broker then contacted the property owner in attempt to obtain a listing and informed the owner that buyer Clark was interested in purchasing the property. The owner refused the listing by informing the broker that the property was not for sale and that he would not list the property with any brokers. Two months later, broker Jacob was informed that the owner had in fact sold the property to Clark without broker Jacob’s knowledge. Given these conditions:

Mr. Miller executed a full price offer to purchase Taylor’s property through Broker Micks who held an exclusive authorization and right to sell listing. As the broker was leaving the office, he received another offer for $1,000 less than the listed sales price but which contained a larger down payment and other different terms. Micks, the listing broker, should:

24. A real estate agent may legally represent all principals in the same transaction if:

In July, Spencer bought Long’s home through the listing broker Ceeley. Ceeley in November, when the first rain came, the tile roof leaked badly in many places. Spencer sued Long and broker Ceeley for the cost of the necessary new roof. Testimony in court showed that Long had mentioned the need of a new roof to Ceeley, but Ceeley had not mentioned it to Spencer because he had not asked about it. The result is most likely:

If a seller of real property inquired to his broker concerning the ethnic background of a prospective buyer, the broker:

When a seller makes a counter offer:

If a broker receives a personal check made payable to an independent escrow company from a buyer as a deposit on the purchase price, the broker:

Broker Abe took a listing from Mr. Cain on a commercial property. Broker Abe then presented an offer from the XYZ Company that was above the listed price. Mr. Cain accepted the offer. However, the broker did not tell Mr. Cain that he was one of the principals in the XYZ Company. Concerning the sale, the:

Since Harris did not have the necessary $285,000 cash to purchase 300 acres of land for future subdivision, Nishimoto agreed to purchase the land and enter into a conditional installment sale contract with Harris, selling him the land for $298,000. Assuming only the above, this is a:

Attorney in fact is:

An executed contract is a contract:

In which of the following transactions is the agent required to disclose his or her agency relationship?

Jimmy built a house on speculation and sold it for $282,000 receiving $262,000 cash from the proceeding of new financing and a $20,000 note secured by a second deed of trust. In order to build a second house on another lot, Jimmy would like to borrow $50,000. If he uses the $20,000 note as part of the security, the note in this circumstance would be a:

Mr. Wilson made an offer to purchase real property. However, she died of a heart attack before the listing broker could notify her of an unqualified, signed acceptance by the seller. Based on these facts, which of the following is true?

A real estate licensee acts as:

A flood hazard report is required as part of filing for a subdivision public report. If a flood hazard exists, the degree of hazard must be reported. The degrees of flood hazard are:

Ross, who owns a commercial building, enters into a seven-year lease with Roberts for the property. In your opinion, Robert’s lease is:

Which of the following is real property?

Inflationary trends in the housing market affect:

Which of the following items might be short-rated by the escrow holder?

Alienation expresses a meaning most completely opposite to:

Which of the following is acceptable response to sellers who have indicated their home is not to be shown to sales of prospects who are members of the ethnic minority group?

Mr. Abdul owned an unencumbered lot and decided to build a single family residence on it. He bought $8,000 worth of lumber and had it delivered to the property. One week later, he obtained a construction loan for $150,000 from People’s Savings and Loan Association. The loan was recorded after the lumber was delivered. Later more lumbers were delivered and subsequently the completed structure was painted. When the lumber company could not collect $8,000 on the amount owed and the painter could not collect $3,000 for the painting; they each filed a mechanic’s lien. If the property is sold at a foreclosure sale and nets $150,000, the amount received by People’s Savings and Loan would be:

A seller was presented an offer on his home which he immediately accepted. The acceptance was communicated to the buyer. Before escrow was opened, the seller found another buyer who was willing to pay all cash. He decided to cancel the original contract and notified the broker of his decision. Under these circumstances:

The holder of an easement that is not attached to any lands owned by the easement holder has:

When a real estate broker negotiates the sale of used mobile home, it is the broker’s responsibility to give written notice of transfer to the Department of Housing and Community Development within:

48. The maximum amount of a broker’s personal funds that may keep in his or her trust account without being guilty of commingling is:

When a licensee acts as an agent without authority or color of authority and the acts are later approved by the principal, an agency has been created by:

Bank lends 80% of appraised value with interest rate at 11%. First year interest was $7,040. What was the appraised value?

The following instructions were given to a real estate agent to sell properties in a new subdivision: Instruction 1: Sell to women rather than men Instruction 2: Try to sell homes in equal numbers to Hispanics, Asians, Africans and Caucasians Which instruction is a violation to Fair Housing Act?

A home owner needed $9,000 to pay for child’s education. The lender arranged an equity loan for the amount of $9,600. The lender must now present the borrower with the following:

Jackson sold a condominium to William for $90,750. William assumed an existing loan for $30,000. If there is no other agreement and the tax rate is 55% for each $500, the most nearly amount of tax to be paid is:

The current use of a building to its highest and best use is called:

To an appraiser, the method used to evaluate a shopping center is:

Which of the following types of listing enables the broker to represent the seller as the agent or allows the broker to purchase the property himself?

In 1998, broker Drake acted as the agent for 3 different principals in the purchase of 3 apartment buildings. Later, the purchasers were able to prove that broker Drake had misrepresented the income on the properties and each principal was able to obtain a judgment for damages against Drake in the amounts of $10,000, $15,000, and $25,000. If broker Drake is now bankrupt and each principal seeks reimbursement from the Real Estate Recovery Account. The claimant with the $25,000 judgment would receive:

58. An unlicensed employee may not do all of the following in a real estate office, except:

Vargas owned 3 sections of vacant land. He sold eight parcels of 80 acres each at a price of $160,000. He then sold the remaining landing parcels of 160 acres each at a price of $400,000 per parcel. Based on this information, the total selling price for the 3 sections of land was:

Which of the following listings may the owner cancel the listing even if it was sold through the agent’s efforts?

Which of the following rights of ownership in real estate may an individual not have?

Willy paid $17,424 for a vacant lot which had area of 21,780 sqft and was 140 ft deep. He then sold the lot and made a 40% profit after paying a 10% commission to Broker John. At what price per front foot did the lot sell?

The owner of a condominium unit in a condominium development is selling her unit and wants to place a “For Sale” sign on the property. If the CC&Rs prohibit the posting of a “For Sale” sign in the complex, the owner:

BTU (British Thermal Unit) refers to:

A Disclosure Statement regarding any earthquake hazard must be given to a prospective purchaser by the seller or the seller’s agent. This statement must contain which of the following information:

Which of the following is not related to income tax?

Multiple apartment buildings are represented by?

Increase in value with the passage of time is known as:

If you are asked to appraise a property built in 1910 for the present, which of the following would you use?

A footing is which of the following?

71. When used in real estate, which of the following terms are usually used with such adjectives as “good”, “sufficient”, “adequate” and “valuable”?

A licensee who speaks of a “grandfather” clause is probably referring to:

For appraising purposes, when making adjustments in the direct comparison analysis:

When buying a single family residence with the aid of an unlicensed person. If the unlicensed person receives compensation, the agency that will prosecute the unlicensed person is:

As to ethics, the best guidelines to determine if an action is ethical will be found in which of the following:

A real estate broker presented an offer to the seller, and the seller accepted. During escrow, the seller discovered that the buyer was the brother of the broker. This relationship was not disclosed in the offer. Under these circumstances:

Wilson signed an offer before the broker could obtain unqualified signed acceptance of the offer from the seller and Wilson died of a heart attack. The contract is in now:

A “release clause” in a trust deed provision:

Who is in charge of constructing street’s utilities and curbs?

Which of the following is synonymous?

Who is in charge of the direct enforcement of building codes?

If title and possessions are not concurrent at the close of escrow, the agent must create:

A prepayment penalty clause on a loan means:

Turn Key project is:

A developer who owned a large parcel of land wanted to subdivide the parcel and sell individual lot to potential builders of single-family residences. In order to finance the costs of improving the parcel with streets, sidewalks, and gutters, and to be able to pass these costs on to the purchasers, the subdivider would use:

If a loan with a due on sale clause taken over “Subject to” without the consent of the lender, then:

A lien imposed by court in all of the principals property is a:

What is true about legal aspects of real estate law?

A listing agreement is:

Which of the following is necessary for creation of an agency?

When is permissible to the broker to fill out the transfer disclosure statement?

Lower the loan to value, higher the:

A broker placed the following ads, 4 bedrooms 3 bathrooms, pool, spa, $154,000 call 991-2345. Which of the following is true about the ads?

Demand for non-agriculture properties includes:

A contract between seller and broker to sell is in a form of:

Customary procedure to enforce private restrictions in real estate is:

A borrower bought a home for $162,000. Gradual economic inflation affects the equity to the benefit of the:

The phrase used by brokers to the principal is:

What is true about escrow?

Which of the following will least appeared on the buyer’s debit side?

Under FHA MMI represents:

Market value is synonymous with:

The beneficiary on a second trust deed sold it for lesser value, this is an example of:

A licensee is entitling under a non-exclusive listing broker, he must prove:

Rostanian was denied on credit and was denied access to her credit report and explanation for rejection for credit is not given. Rostanian may do which of the following:

Burg bought a mobile home from a dealer. Now Burg wants to sell it. Broker Fisher listed the mobile home. If Fisher wants to sell Burg’s mobile home:

Out of State relatives of an agent want to buy a property. He made an offer to purchase property with a lease and an option to buy. Disclosures must be presented:

An amendment to Transfer disclosure statement to the buyer was not provided:

A compensating clause for commission expired on a listing agreement. The broker verbally notify to the seller of a new buyer. The following day, buyer and seller got together and started negotiations. The broker may charge:

A property built next to a gas station, the owner should:

Ownership rights and interest:

Tax shelter refers to:

Land value is estimated on the basis of:

Which of the following is requiring for a valid deed?

Charge for the preparation of the Uniform Settlement Act is:

Guidance disclosure sequence is as follow:

After an appraiser collected all the data and applied the appropriate appraisal method(s), the next step in the appraisal process is:

When appraising a property on a hillside, the appraiser noticed cracks on the walls. The best recommendation is to:

A real estate broker negotiates the sale of home on behalf of the seller in which the buyer obtains a new first trust deed and the seller carries back a second trust deed for part of the purchase price. The broker recommends to the seller that they execute and record a “Request for Notice of Default”. This would be done for the benefit of the:

A Disclosure form must be given to the purchaser of any properties that is subject to a lien created under the Mello-Roos Community Facilities Act. The party that is responsible for the delivery of this statement is the:

Roberto owns an apartment building and wants to exchange his property in a 1031 tax deferred exchange in order to defer paying taxes in the year of the exchange. He could exchange his apartment building for:

122. A broker shows a prospective buyer a home. The buyer makes an offer and the seller accepts. The broker, buyer, and seller then go to the Reliable Escrow Company where the buyer makes out a personal check for a $1,000 deposit payable to Reliable Escrow Company and hands it to the escrow officer. Which of the following is correct?

123. What type of title insurance policy covers everything?

A real estate salesperson is attempting to renew his license. The Department of Real Estate finds that according to the Department of Child Support Services, the party has failed to make the required child support payments. Under these circumstances, the salespersons license:

To an appraiser to determine the amount of economic obsolescence suffered by a commercial property owner, which of the following is true?

Who signs the reconveyance deed?

If a licensee fails to renew his or her license prior to its expiration date, the licensee:

Seller has an easement attached to the buyer’s property. The seller did not use the easement for 21 years. The seller decided to use the easement after 21 years. The easement is now:

Which of the following will be considered economic obsolescence?

A real estate broker advertises that he will give a seller a credit in escrow with his commission. For any sellers who list with him, he will pay $50 and same for any buyer who purchases a property from him. This type of advertising is:

The purpose of the “hold harmless” clause in the residential Listing Agreement is to protect the broker from any liability or claims resulting from:

An appraiser who is to appraise a commercial property with an estimated value of $550,000 must hold which of the following appraisal license?

There are three phases of steps involved in the construction of a single family residence. These three steps are:

In the sale of a residence, when the buyer is to take possession of the property prior to the transfer of title, the buyer and seller should execute a:

Two days after entering into a contract for the sale of home, both the buyer and seller agreed to rescind the contract. The broker representing both the buyer and the seller:

When buying a home, buyers prefer which of the following polices;

The real estate agency disclosure form must be given to the parties in which of the following transactions?

Agent Ana presented an offer from one of the office listings. The offer had a contingency of the property to be approved by the Uncle Paul since he is financing the property. Ana did not discuss the offer with the buyer. Ana presented the offer to the seller thinking that the uncle will have no objection to the property. The seller received the offer and the offer was accepted. The buyer told Ana that the uncle was out of state and not present to approve the property, and now, they cannot find him and they are uncertain when he is coming back. The action by the agent was:

Broker Abe is representing Brown. Brown made an offer contingent to the sale of Brown’s home located in Elm St and Jones accepted the offer on Main St. Then broker Abe handed the offer to broker Ray with a referral fee attached to it. To whom the agent must present the disclosure to:

In appraising to determine value by net income and percentage of reasonable return on an investment:

Which of the following is a unique characteristic of an FHA mortgage?

A commercial bank agreed to lend Davis $180,000 for one year term provided. Davis agreed to maintain a savings account with the bank in the amount of $18,000 during the term of the loan. This provision is known as:

A real estate agent wrote –up an offer for a buyer. The buyer was primarily interested in this particular home because it was locate in a very good school district. The deposit receipt did not make the offer contingent upon the school district. The offer was accepted and escrow was opened. During escrow, the buyer discovers the school district had just been changed and now the home is located in a poor school district. Which of the following is true?

All of the following could be a recurring expense to a reserve of impound account by a borrower, except:

Who signs the trust deed and promissory notes?

Which of the following is true concerning a “buyers agency”?

If the city wants to acquire a commercial property by eminent domain, they:

148. An appraiser intends that the estimate of value as disclosed in his appraisal report on a property be valid:

A broker, who is authorized by another broker to act as a subagent as authorized by the seller, is primarily responsible to:

A clause on a trust deed where the lender’s right shall be secondary to a subsequent trust deed: