Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Real Estate
Q:
A real estate broker, in order to entice a person to buy, states that the property conforms to all building codes which is what the seller told him. In fact, a bedroom was added without a permit. The agent is guilty of:
(a) misrepresentation
(b) acting in a legal manner since she was innocently repeating what the seller told her
(c) false promise
(d) Fraud
Q:
A broker receives a deposit from a buyer with no instructions to hold the check uncashed pending the seller's acceptance of the offer. After the offer is accepted, the broker decides to put the check in a safe in the office for security purposes until the broker can get to the bank next week. The broker is:
(a) guilty of conversion
(b) innocent of any wrongdoing
(c) guilty of commingling
(d) required to place the deposit into a trust fund within 3 days
Q:
Which of the following is not correct?
(a) all real estate salespersons must have written employment contracts with their brokers
(b) real estate salespersons are able to contract directly in their own name as an agent with the seller
(c) the recovery fund may be used to reimburse qualified principals and buyers for damages suffered because of certain inappropriate acts by real estate licensees
(d) most real estate agency agreements are between sellers and brokers, not buyers and brokers
Q:
A broker has an agency agreement to represent just the buyer. This is an example of a/an:
(a) dual agency
(b) single agency
(c) in-house agency
(d) listing agency
Q:
Broker A takes a listing on a property and Broker B procures a buyer. In this situation:
(a) Broker A is a buyer's agent
(b) Broker A is a selling agent
(c) Broker A is a seller's agent
(d) Broker A is a dual agent
Q:
Real estate agencies can be created in several ways. The most common method is:
(a) agreement
(b) estoppel
(c) ratification
(d) implication
Q:
A judgment is considered to be what type of lien?
(a) constructive
(b) voluntary
(c) general
(d) specific
Q:
Which of the following best describes the requirements to acquire title by adverse possession?
(a) hostile, continuous use, pay mortgage, open and notorious
(b) color of title, continuous use, pay property taxes, hostile
(c) permission, color of title, pay property taxes, open and notorious
(d) claim of right, hostile, secret use, pay mortgage and property tax
Q:
Which of the following two terms do not go together?
(a) joint tenancy " unity of title
(b) tenants in common " right of survivorship
(c) tenants in common " unequal interests
(d) community property " equal ownership
Q:
Once a valid homestead is recorded, which of the following terminates the homestead?
(a) renting the property
(b) death of one spouse
(c) selling the home
(d) two of the above will terminate the homestead
Q:
For a single person, under 65 years and not of low income, the homestead exemption is:
(a) $50,000
(b) $75,000
(c) $100,000
(d) $150,000
Q:
The of the following are true, except:
(a) a violation of a condition in a deed may cause loss of title
(b) a suit for removal of an encroaching fence must be brought within 10 years from the date of the encroachment
(c) easements can be eliminated when the dominant tenement deeds to the servient tenement
(d) to be valid, a Notice of Completion must be recorded within 10 days after the completion of construction
Q:
If an owner files a proper Notice of Completion in the County Recorder's office, unpaid subcontractors have how many days to file a lien?
(a) 30 days
(b) 60 days
(c) 90 days
(d) 180 days
Q:
An easement with only a servient tenement is an:
(a) easement in gross
(b) easement appurtenant
(c) easement egress
(d) easement for encumbrance
Q:
A property tax bill is an example of:
(a) a voluntary lien
(b) a general lien
(c) an involuntary hen
(d) two of the above are correct
Q:
In which one of the following ways are joint tenancy and community property similar?
(a) title can only be held by husband and wife
(b) both provide the right of survivorship
(c) all owners have the right to will their interest in the property
(d) ownership shares are equal
Q:
A valid joint tenancy must have the four unities of:
(a) time, title, interest, remainder
(b) title, time, possession, interest
(c) interest, right, possession, time
(d) time, title, occupancy, possession
Q:
A deeds a life estate to B and upon B's death, title returns to A. This is an example of what type of life estate?
(a) estate in reversion
(b) estate in reservation
(c) estate in remainder
(d) estate in severalty
Q:
The highest form of ownership a person can have in a piece of property is:
(a) fee simple absolute
(b) fee simple qualified
(c) life estate
(d) testate estate
Q:
If a married person with one child dies intestate and leaves separate property, the descendant's interest passes to the:
(a) surviving spouse and child, divided equally
(b) surviving child, and not the surviving spouse
(c) surviving spouse, and not the surviving child
(d) whoever is named in the will
Q:
A deeds to B and B takes possession but does not record the deed. A then tells a friend C about the deed to B. A then deeds the same property to C, who records the deed. Based on this information, title probably vests in:
(a) A
(b) B
(c) C
(d) both B and C
Q:
A type of deed that contains an after acquired clause is a:
(a) grant deed
(b) quiet deed
(c) quitclaim deed
(d) gift deed
Q:
A person appointed by the court to handle the estate is the:
(a) executor (trix)
(b) administrator (trix)
(c) devisor (ee)
(d) testator (trix)
Q:
The SE 1/4 of the NW 1/4, and the SW 1/4 of the NE 1/4, and the SW 1/4 of Section 22 contains:
(a) 2 1/2 acres
(b) 240 acres
(c) 45 acres
(d) 165 acres
Q:
All of the following "run with the land," except:
(a) easements
(b) private deed restrictions
(c) water rights
(d) current harvest rights
Q:
The right of a landowner along a river to take water is called:
(a) percolating rights
(b) river water rights
(c) user rights
(d) riparian rights
Q:
In a dispute over fixtures, courts tend to favor:
(a) sellers over buyers
(b) landlords over tenants
(c) lenders over borrowers
(d) grantors over grantees
Q:
All of the following are real property except:
(a) fruit trees
(b) chattels
(c) stock in a mutual water company
(d) built-in stove
Q:
Airspace above a parcel of land is:
(a) real property
(b) personal property
(c) an encumbrance
(d) a fixture
Q:
A real estate broker's license is issued for:
(a) 2 years
(b) 4 years
(c) 6 years
(d) life
Q:
After first obtaining a real estate sales license, said licensee must take how many DRE core three-hour approved continuing education courses in order to renew their license?
(a) 3
(b) 4
(c) 5
(d) 6
Q:
Which of the following is a license issued by the California Real Estate Commissioner?
(a) corporate real estate license
(b) appraisal license
(c) escrow license
(d) two of the above are correct
Q:
A salesperson who wishes to become a real estate broker must have which of the following?
(a) eight required real estate courses
(b) two years' full-time experience as a real estate salesperson, or its equivalent
(c) pass a 200 question examination
(d) all of the above
Q:
A passing score on the real estate salesperson's examination is:
(a) 50%
(b) 70%
(c) 75%
(d) 80%
Q:
Which of the following is correct?
(a) a real estate salesperson and a broker may form a partnership to run a real estate brokerage business
(b) the fine for paying a commission to an unlicensed person is $5,000
(c) appraisers need a real estate license
(d) the Real Estate Commissioner is appointed by the legislature
Q:
In a business opportunity sale, the payment for continued patronage is called:
(a) bulk sale
(b) goodwill
(c) blue sky
(d) net worth
Q:
Which of the following shows the financial position of a business over a period of?
(a) goodwill
(b) balance sheet
(c) profit and loss statement
(d) net worth
Q:
To obtain a broker's license, a person must:
(a) Be 25 years of age
(b) Score 80% or higher on the broker's exam
(c) Hold a salesperson's license for two years
(d) Hold a salesperson's license for one year
Q:
The Real Estate Law exempts some people from needing a real estate license. Which of the following are not exempt?
(a) onsite resident managers of apartment buildings
(b) clerical employees of lending institutions
(c) any person who receives compensation (commission) for performance of an act defined within the realm of a salesperson's licensing
(d) attorneys while practicing law
Q:
Which of the following is correct?
(a) there are no continuing education requirements for the salesperson's license
(b) examination prep courses satisfy continuing education requirements for license renewal
(c) no transcripts, approval numbers or certificates are required to verify course requirements for license renewal
(d) all of the above are incorrect
Q:
If an applicant fails an examination, he or she:
(a) may not apply for a re-examination at any time
(b) must wait a reasonable time after failure notice to apply
(c) may apply for a re-examination immediately after notification of failure
(d) is limited as to the number of times that an examination may be taken
Q:
The maximum time allowed an applicant to take the salesperson's examination is:
(a) five hours
(b) one and one-half hours
(c) three hours and 15 minutes
(d) as long as the applicant wishes to take
Q:
Under certain conditions, a corporation can be licensed as a real estate broker. Which of the following is one of those conditions?
(a) the corporation must have an office in California
(b) declared dividends are used to pay sales commissions
(c) chairman of the board must have a real estate salesperson's license
(d) a principal officer of the corporation must be licensed as a broker
Q:
The Real Estate Commissioner has the right to issue regulations for the interpretation of Real Estate Law. These regulations:
(a) must be approved by the California Association of REALTORS
(b) have the same force and effect as Real Estate Law
(c) become part of the California Administrative Code
(d) both (b) and (c) are correct
Q:
The fine for an unlicensed person who receives an illegal commission is:
(a) $100
(b) $1,000
(c) $ 20,000
(d) $50,000
Q:
The Real Estate Commissioner's Regulations apply to:
(a) Realtors only
(b) Realtists only
(c) real estate brokers only
(d) all California real estate licensees
Q:
Commission rates for real estate agents are established by:
(a) the Real Estate Commissioner
(b) local boards of real estate
(c) multiple listing organizations
(d) negotiations
Q:
A statement that shows the financial position of a business as of a certain date is called:
(a) profit and loss
(b) Schedule E
(c) balance sheet
(d) Schedule C
Q:
A real estate broker's license enables a person to handle:
(a) registered mobile homes
(b) business opportunities
(c) property management
(d) all of these
Q:
All registration fees on the transfer of title to a mobile home must be paid within:
(a) 5 days
(b) 10 days
(c) 15 days
(d) 30 days
Q:
In order to protect a building from seepage of water to the inside, around chimneys, and in the valley of the roof, builders use what is known as:
(a) flashing
(b) matting
(c) drain pipe
(d) curbing
Q:
What is not a factor to consider when to determine investment potential?
(a) Risk
(b) Liquidity
(c) Carpet quality
(d) Management requirements
Q:
In the construction of a frame house, the short horizontal 2" x 4" boards above a window opening are commonly called a lintel or a:
(a) cripple
(b) sole plate
(c) header
(d) fire stop
Q:
Which of the following roof styles is best described as a "pitched roof sloping from two sides with the sides meeting at the top"?
(a) gable roof
(b) gambrel roof
(c) hip roof
(d) mansard roof
Q:
For a mobile home to be legally considered real property, it must:
(a) be insured as a home by an insurance company
(b) rest on a permanent foundation
(c) be certified by a proper government agency (building permit)
(d) both (b) and (c) are correct
Q:
A mobile home park, consisting of five or more lots, is considered a:
(a) PUD
(b) subdivision
(c) community development
(d) stock cooperative
Q:
When a builder purchases lumber, he or she does so by the board foot. Which of these contain 8 board feet?
(a) a 2" x 8" board 12 feet long
(b) a 4" x 4" board 10 feet long
(c) a 2" x 4" board 12 feet long
(d) a 2" x 6" board 10 feet long
Q:
Title to a mobile home is transferred by use of a:
(a) document of title
(b) deed
(c) certificate of ownership
(d) contract of sale
Q:
A real estate licensee can sell used mobile homes provided the mobile homes have been registered with the:
(a) Department of Housing and Community Development
(b) Federal Housing Administration
(c) Department of Veterans Affairs
(d) Department of Real Estate
Q:
Federal income taxes on the sale of income property can be deferred by which of the following methods?
(a) all cash sale
(b) 1031 exchange
(c) installment sales
(d) both (b) and (c)
Q:
An investor who has owned property for two years and then sells for a gain most likely will:
(a) pay capital gains taxes
(b) defer the payment of taxes
(c) pay only California, not federal taxes
(d) not pay taxes as a sale for cash qualifies as a 1031 exchange
Q:
Federal income taxes are referred to as a:
(a) progressive tax
(b) regressive tax
(c) proportionate tax
(d) equalized tax
Q:
Property owners can appeal the size of their property tax bill to an assessments appeals commission, or in some areas to the:
(a) local board of equalization
(b) franchise tax board
(c) board of supervisors
(d) franchise property tax agency
Q:
For investors, losses on the operation of rental real estate are what type of losses?
(a) passive
(b) active
(c) actual
(d) portfolio
Q:
A law used to finance public services in newly developed areas that can lead to high assessments for the affected owners is called:
(a) Mello-Roos
(b) Holden-Aspen
(c) Alvareze-Greene
(d) Brown-Miller
Q:
The county tax assessor's duty is to determine:
(a) the tax rate to be applied to assessed values
(b) assignment of parcel numbers to current secured tax rolls
(c) tax to be paid by the property owner
(d) value of the property for tax purposes
Q:
Under certain conditions, married couples may exempt up to how much in gains from the sale of their personal residence?
(a) $500,000
(b) $250,000
(c) $125,000
(d) $50,000
Q:
In a 1031 real estate exchange, a tax liability arises if the person exchanging receives:
(a) like kind property
(b) boot
(c) income property
(d) investment property
Q:
When a special assessment is made on a piece of property under the Street Improvement Act of 1911:
(a) property owner can deduct principal and interest
(b) it is based on the front footage of the property
(c) it is appraised as per the amount of square footage
(d) assessment must be paid within six months
Q:
Private property is deeded to the state for delinquent property taxes after:
(a) 1 year
(b) 2 years
(c) 3 years
(d) 5 years
Q:
Property taxes become a lien on:
(a) July 1
(b) November 1
(c) February 1
(d) January 1
Q:
When foreigners sell U. S. property, the Foreign Investment in Real Property Tax Act (FIRPTA) may require what percentage to be withheld from the sale proceeds?
(a) 3 1/3%
(b) 5%
(c) 10%
(d) 13%
Q:
Under certain conditions, a single homeowner may exempt up to how much in gains from the sale of his or her personal residence?
(a) $500,000
(b) $300,000
(c) $250,000
(d) $125,000
Q:
To obtain a full homeowner's exemption, a new homeowner must file between January 1 and:
(a) December 10
(b) February 15
(c) April 10
(d) June 1
Q:
A property was valued at $500,000 for property tax purposes. According to Proposition 13, what would be the maximum value for property tax purposes in two years, assuming the owner did not make capital improvements?
(a) $502,420
(b) $504,010
(c) $506,220
(d) $520,200
Q:
The second installment of real property taxes is delinquent if not paid by:
(a) November 1
(b) December 10
(c) February 1
(d) April 10
Q:
Ad Valorem means according to:
(a) value
(b) appraisal
(c) assessment
(d) price
Q:
The proposition that allows certain homeowners to transfer their property tax base to another home in the same county is:
(a) Proposition 13
(b) Proposition 57
(c) Proposition 60
(d) Proposition 90
Q:
The homeowner's exemption, excluding local assessments, saves approximately how much in property taxes?
(a) $100
(b) $80
(c) $70
(d) $40
Q:
The famous case that ruled that the Civil Rights Act of 1866 was constitutional was:
(a) Jones vs. Mayer
(b) Rumford vs. State of California
(c) Nobleman vs. Action Savings
(d) Fassler vs. Williams