Q&A Hero

Q: Per the Buyer's Inspection Advisory form that a real estate agent gives to the buyer, the: (a) purchase agreement obligates the seller to make the property available to buyer for investigations (b) real estate agent is presumed to be an expert in all areas listed on the form (c) seller is required to repair all disclosed defects (d) square footage of the home and lot have been verified by the seller

Q: A broker lists vacant land in Morongo Valley. The seller gives the broker a copy of the deed. In the deed it states that this property is not to be sold to "non-whites". This makes the deed: (a) valid but the restriction is unenforceable. (b) invalid because it discriminates against non-white people. (c) void because the courts will consider this a discriminatory deed. (d) voidable because a party can be injured by this restriction in the deed.

Q: A listing contract given to several real estate brokers in which the commission is payable to the first broker who brings in an acceptable offer is what type of listing? (a) open (b) net (c) multiple (d) exclusive

Q: An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The: (a) owner owes ABC Realty a commission (b) owner does not owe a commission (c) sale is invalid (d) two of the answers are correct

Q: An executory contract is a contract that: (a) has been recorded (b) is in writing (c) has been fully performed (d) is yet to be completed

Q: A real estate broker takes an exclusive right to sell listing from a seller for $400,000. A buyer makes an offer for $375,000, which the seller accepts. Before the sale closes, the buyer discovers that the broker misrepresented the square footage of the home. Based on this information, the purchase contract is probably: (a) void (b) voidable (c) illegal (d) valid

Q: A unilateral contract is: (a) created by actions (b) a completed contract (c) a promise for a promise (d) a promise for an act

Q: Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created: (a) when buyer receives proper communication of seller's acceptance (b) immediately upon seller's acceptance (c) when the buyer and seller sign escrow instructions (d) when the broker presents the offer to the seller

Q: A properly signed exclusive right-to-sell listing agreement is an: (a) implied contract (b) unilateral contract (c) bilateral contract (d) purchase contract

Q: Which of the following is not an essential element in creating a real estate agency? (a) fiduciary relationship (b) size of the commission (c) parties must be competent (d) agreement between principal and agent

Q: Real estate agencies can be terminated by: (a) Completion, expiration, mutual consent, and secret profit. (b) Completion, expiration, mutual consent, and estoppel. (c) Completion, expiration, mutual consent, and death of the agent. (d) Completion, expiration, mutual consent, and with the Real Estate Commissioner's permission.

Q: A California real estate broker finds a buyer for a property in Reno listed with a Nevada broker. Per California regulations, the: (a) California broker cannot be paid a commission (b) Nevada broker cannot sell to a California buyer in Nevada (c) commission can be divided per agreement between the brokers (d) California broker must first obtain a Nevada real estate license

Q: Through negligence, Blondell permitted Gildea to believe that Delgado was Blondell's agent, when Delgado had not really been appointed by Blondell. If this creates an ostensible agency, it will be by: (a) ratification (b) expression (c) estoppel (d) specific action

Q: The Disclosure Regarding Real Estate Agency Relationship form must be signed at the time of the: (a) agency appointment (b) drafting of the loan papers (c) appraisal approval (d) issuance of the closing statements

Q: Real estate commissions are: (a) negotiable (b) established by the California Association of Realtors (c) limited per the Commissioner's Code of Ethics (d) determined by local Boards of Realtors

Q: The disclosure requirement that is concerned with special flood areas, dam failure, high fire severity, wild and forest fire, earthquake fault zone, and seismic hazard zones, is the: (a) Home Inspection Notice (b) Real Estate Transfer Disclosure Statement (c) Natural Hazard Disclosure Statement (d) Real Property Disclosure Act

Q: A California broker wants to sell her brother's property in Las Vegas. (a) She can do this with the permission of the state of California. (b) She can do this with the Real Estate Commissioner's permission. (c) She can refer the listing to a Nevada real estate broker and they can agree to share the commission. (d) She cannot do this because she does not know Nevada real estate law.

Q: According to real estate licensing law, for supervising purposes, the relationship between a salesperson and a broker is: (a) fiduciary (b) independent contractor (c) employer-employee (d) ostensible

Q: Per the Real Estate Commissioner's regulations, a broker must: (a) keep a formal cash receipts/cash disbursement journal (b) maintain a trust fund account in a bank (c) maintain a minimum balance in the trust fund (d) all of the above

Q: Which of the following best describes the role of a broker in a real estate agency? (a) employee (b) independent contractor (c) general agent (d) special agent

Q: If a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property, it is: (a) an agency violation (b) an innocent mistake (c) unethical, but not illegal (d) an accepted practice in the industry

Q: The broker of a real estate office wanted to deposit funds from a recently opened transaction. He had his trust account, business account, and personal account all at the same bank. Inadvertently, he made out the deposit slip to deposit the client's funds into his personal account. (a) This was an innocent mistake. He can just redeposit the money into his trust account before the close of escrow. (b) The broker should call and immediately transfer the funds into his trust account. (c) The broker doesn"t have to worry unless the DRE audits his account. (d) The broker is guilty of commingling funds.

Q: Real estate agencies are created by: (a) special agency. (b) agreement in writing. (c) appointment. (d) none of the above.

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: Salesperson Schmidt works for Broker Hassan. On May 1, Schmidt takes a listing on Home X for 90 days. Twenty days later Salesperson Schmidt transfers her license and becomes a salesperson for Broker Meeks. As of May 21, the listing on Home X belongs to: (a) Broker Hassan (b) Salesperson Schmidt (c) Broker Meeks (d) no one, as this cancels the agency with the seller

Q: If a seller insists on selling a home "as is": (a) the agent is not required to reveal known defects to prospective buyers (b) the seller is not required to reveal known defects to prospective buyers (c) a buyer beware philosophy prevails in California (d) the prospective buyer is entitled to know all defects known to the seller and real estate agent

Q: The misappropriation and use of a client's funds by an agent is called: (a) conversion (b) commingling (c) secret profit (d) misrepresentation

Q: Which of the following requires a real estate agent to do a physical inspection of the home and report the results of said inspection? (a) Disclosure Regarding Real Estate Agency Relationship (b) Natural Hazard Disclosure Statement (c) Real Estate Transfer Disclosure Statement (d) Common Interest Development General Information

Q: A licensed real estate broker states that a lot is 1/3 of an acre, when in fact the lot is 1/4 of an acre. The agent is guilty of: (a) false promise (b) divided agency (c) secret profit (d) misrepresentation

Q: All of the following are acceptable ways to terminate an easement, except: (a) express release (b) abandonment (c) merger (d) if created by deed, it may be extinguished by non-use

Q: Special assessments: (a) if paid become a lien on real property. (b) are usually not paid with property with property taxes. (c) can be foreclosed upon. (d) all of the above.

Q: A judgment is considered to be what type of lien? (a) constructive (b) voluntary (c) general (d) specific

Q: Public restrictions are imposed on properties: (a) to make it difficult to obtain permits (b) to protect the health and safety of the citizens (c) so the homeowner's association cannot impose more restrictive regulations (d) to assist the owner's personal desire when building

Q: The landlord has come by on the first of the month to collect rent from the tenant. He notices a work on a new patio has begun, which he has not authorized. The tenant is not at home to ask about this new structure. The landlord should immediately: (a) file a mechanic's lien. (b) file a notice of cessation. (c) file a notice of completion. (d) file a notice of non-responsibility.

Q: Which document must be recorded in order for a subcontractor to bring foreclosure action? (a) trust deed. (b) mechanics' lien (c) listing agreement. (d) judgment.

Q: A lessor can protect against a mechanics' lien for unpaid construction work ordered by a lessee by: (a) posting and recording a notice of non-responsibility (b) filing a suit against the contractor for undertaking the work without authorization from the landlord (c) serving the lessee with a notice of responsibility (d) declaring a breach of contract and dispossessing the lessee

Q: Mr. Rodriguez has a neighbor with a huge tree. One of its branches is growing over the fence into Mr. Rodriguez's yard. The leaves that fall off this branch and wind up in the pool located on Mr. Rodriguez's property. This has been a problem for several years. Now Mr. Rodriguez is wondering if can bring an action for removal of the tree branch, even though it has been more than five years. (a) Yes if Mr. Rodriguez states this is a recent problem. (b) There is no recourse because the time period to bring an action has expired. (c) Yes because there is no Statute of Limitations for removal of the tree branch. (d) There is no recourse because the tree is not on Mr. Rodriguez's property.

Q: Deed restrictions that apply to: (a) the lender (b) the government (c) all subsequent owners. (d) the broker

Q: A court order to force the sale of real estate to pay a judgment is called: (a) an attachment (b) a writ of execution (c) a deficiency judgment (d) a foreclosure

Q: A homestead, within the statutory amounts, will not protect against: (a) after recorded judgments (b) mechanics' liens (c) unsecured money debts that become secured by judgments (d) after recorded attachments

Q: Sohal owns a home and has an easement over 20 feet of Lightfoot's land. Sohal sells to Carter. Based on this information: (a) Carter is the servient tenement (b) the easement is terminated (c) Lightfoot has a lien (d) Carter has an appurtenance

Q: A homestead is considered terminated when: (a) the home is rented to a tenant (b) a final decree of divorce is granted (c) the home is sold (d) an abstract of judgment is recorded

Q: Per the formally declared homestead law, an owner's equity within the allowed amount is protected for how many months in the event the homeowner sells and purchases another home? (a) 3 months (b) 6 months (c) 12 months (d) 18 months

Q: For a formally declared homestead to be valid, it must be: (a) recorded (b) owner-occupied at all times (c) placed on a conventional home, not on a mobile home (d) two of the above are correct

Q: An easement can be terminated in several ways. The most common way to terminate an easement is by: (a) quiet title action (b) express release (c) nonuse (d) filing a formal abandonment

Q: If an owner fails to file a proper Notice of Completion in the County Recorder's office, all unpaid mechanics have how many days to file a lien? (a) 30 days (b) 60 days (c) 90 days (d) 180 days

Q: Which of the following two terms go together? (a) taxes - voluntary lien (b) police power - public restrictions (c) eminent domain - private restrictions (d) mechanics' lien - general lien

Q: The major difference between obtaining an easement by prescription or title by adverse possession would involve the: (a) time of continuous use (b) permission of the owner (c) claim of right/color of title (d) payment of property taxes

Q: An easement across another person's land is: (a) a voluntary lien (b) a general lien (c) an encumbrance (d) two of the above are correct

Q: Life estates are created by a: (a) mortgage. (b) deed. (c) trust deed. (d) both b and c.

Q: A corporation is not allowed to hold title as: (a) tenants in partnership (b) joint tenants (c) tenants in common (d) joint venture

Q: To have a valid joint tenancy, all the owner names must appear on the same document. This is known as the unity of: (a) time (b) title (c) interest (d) possession tenancy.

Q: Which of the following is not considered concurrent ownership? (a) As an unmarried person (b) Community property (c) As a widow (d) None of the above

Q: When a non-occupying investor and an owner-occupant pool their resources to buy a home, this is called: (a) equity ownership (b) equity occupancy (c) equity sharing (d) equity investing

Q: Mr. Rhu deeds a life estate to Ms. Silva with the stipulation that upon her death the property comes back to him. If Rhu and Silva are killed together in an auto accident, who gets the property? (a) it escheats to the state (b) Rhu's heirs and devisees (c) Silva's heirs (d) the county where property is located

Q: Real estate syndicates usually hold title as: (a) joint tenants (b) a limited partnership (c) a corporation (d) tenants in common

Q: A married couple is planning to purchase a home. If they want to take title in such a way as to be able to will their separate interest, they should take title as: (a) community property, without the right of survivorship (b) joint tenants (c) limited partners (d) any of the above

Q: Susan owned a home prior to marriage to Carlos. Upon marriage, Susan's home: (a) remains her separate property unless commingled (b) automatically becomes community property (c) is converted to joint tenancy (d) must have a deed recorded showing her married name as long as the property is not commingled with community property.

Q: Johnson and Moscowitz hold title as tenants in common. Upon Johnson's death, Johnson's interest passes to: (a) Johnson's heirs without probate (b) Johnson's heirs with probate (c) Moscowitz without probate (d) Moscowitz with probate

Q: Which of the following is not a principal baseline and meridian? (a) Humboldt (b) Mount Diablo (c) Riverside (d) San Bernardino

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: Greene deeds a life estate to Blue and upon Blue's death title passes to Brown. 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: Interest in real property held by a tenant: (a) freehold estate (b) fee estate (c) rental estate (d) less-than-freehold estate

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 court proceeds to confirm a probate sale, the first additional bid must be what percent above the original bid? (a) 5% on the first $10,000, 3% on the remainder (b) 5% on the first $10,000 and any amount on the remainder (c) 10% on the first $10,000, 5% on the remainder (d) 10% on the first $10,000 and any amount on the remainder

Q: A deed need not be recorded in order to be valid, but must be delivered. Effective delivery depends on: (a) valid acknowledgment by the grantor (b) physical transfer (c) intention of the grantor (d) knowledge of its existence by the grantee

Q: There are implied warranties made by the grantor in a grant deed. Which one of the following is not implied? (a) property has not been encumbered by grantor except as disclosed (b) the interest held by grantor is being transferred to the grantee (c) the grantor holds a certificate of title to the property (d) the interest being deeded has not been conveyed to others

Q: Mr. and Mrs. Smith were interested in purchasing a vacant lot. However, they first wanted the property surveyed. When the surveyor came out to measure the property he began measuring from the iron spike embedded in the middle of the street. In this case the iron spike would be known as: (a) a benchmark. (b) an angular line. (c) a vara. (d) a compass.

Q: A sequential list of owners for a parcel of real estate is called: (a) constructive notice (b) chain of title (c) notarized record (d) deed of reconveyance

Q: Chang deeds to Lopez and Lopez takes possession but does not record the deed. Chang then tells his friend Jones about the deed to Lopez. Chang then deeds the same property to Jones, who records the deed. Based on this information, title probably vests in: (a) Lopez (b) Chang (c) Jones (d) both Lopez and Jones

Q: Which of the following is not required for a deed to be valid? (a) signature of grantor (b) granting clause (c) date (d) must be in writing

Q: The Connecticut case, Kelo vs. New London, was decided by a U.S. Supreme Court ruling which had an impact on: (a) how foreclosures should be conducted. (b) whether or not a partition action can be taken. (c) how private property can be taken to further economic development. (d) how filing for bankruptcy will stop foreclosure.

Q: The passing of title to the state because of the lack of heirs: (a) escheat (b) eminent domain (c) police power (d) condemnation

Q: When possession of land includes open and notorious use for 5 years, hostile to the owner's wishes, and payment of property taxes, this best describes: (a) intestate succession (b) accession title (c) alluvion ownership (d) adverse possession

Q: Ben's father passed away and left Ben a ring in his will that Ben had always admired along with a sizeable sum of money. Ben received this gift as a: (a) devise and bequest. (b) bequest and legacy. (c) devise and legacy. (d) none of the above.

Q: If a married person dies testate and leaves all community property, the decedent's interest passes to the: (a) whomever is named in the will (b) surviving spouse and children, if any (c) surviving spouse (d) surviving children, and not to surviving spouse

Q: A person who makes a will is the: (a) executor (trix) (b) administrator (trix) (c) devisor (ee) (d) testator (trix)

Q: In the U. S. Government Survey System, which lines run parallel to the principal base line? (a) township line (b) meridian line (c) range line (d) survey line

Q: The W 1/2 of the NW 1/4 of the NW 1/4 of the SE 1/4, and the SW 1/4 of Section 10 contains: (a) 2 1/2 acres (b) 5 acres (c) 45 acres (d) 165 acres

Q: The right to possess, encumber, use, and enjoy a piece of property to the exclusion of all others, would be an accurate description of: (a) a life estate (b) real property (c) property ownership (d) an equitable position