California: “Legal Aspects of Real Estate” Chapter 13 quiz with no answers


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1 of 25 Who enforces fair housing laws?

A.    The Department of Community Development

B.     The Secretary of State

C.     The Office of Equal Opportunity

D.    + The Department of Housing and Urban Development

California: “Legal Aspects of Real Estate

2 of 25 What 1959 Act provides protection from discrimination by all business establishments in California, including housing and public accommodations?

A.    The Housing and Community Development Act

B.     The Rehabilitation Act

C.     + The Unruh Civil Rights Act

D.    The Architectural Barriers Act

3 of 25 If a seller chooses not to follow fair housing laws the agent should

A.    refer the listing.

B.     + refuse the listing.

C.     take the listing anyway.

D.    sue the seller.

4 of 25 How much time does a person have to file a complaint with the Department of Fair Employment and Housing?

A.    Within 3 years from the incident

B.     + Within a year from the incident

C.     Within 2 years from the incident

D.    Within 2 years from the incident

5 of 25 What Act added sex to the list of protected classes in 1974?

A.    The Fair Housing Amendment Act

B.     The Housing Discrimination Act

C.     + The Housing and Community Development Act

D.    The Community Reinvestment Act

6 of 25 In what landmark case did the Supreme Court prohibit racial segregation of public schools?

A.    Buchanan v. Warley

B.     Plessy v. Ferguson

C.     + Brown v. Board of Education

D.    Shelley v. Kraemer

7 of 25 When HUD receives a complaint, how many days may pass to determine if there is reasonable cause to charge discrimination?

A.    30

B.     60

C.     75

D.    + 100

8 of 25 If a seller refuses to consider an offer because the prospective buyer is a member of a protected class the listing should be

A.    referred to the broker.

B.     extended.

C.     offered at a lower price.

D.    + terminated.

9 of 25 What is defined as advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin?

A.    + Discriminatory advertising

B.     Behavioral advertising

C.     Predatory advertising

D.    Corporate advertising

10 of 25 If a licensee lists a home in a predominantly minority neighborhood, how can he or she avoid steering when advertising in newspapers?

A.    Advertise the property as multi-cultural.

B.     + Advertise in a city-wide newspaper.

C.     Have the Equal Opportunity slogan in the advertising.

D.    Advertise in the minority neighborhood’s newspaper.

11 of 25 If an agent is faced with questions outside the realm of his or her expertise it is best for the agent to refer such questions to

A.    an inspector.

B.     an appraiser.

C.     + an expert.

D.    a broker.

12 of 25 Title VIII of the Civil Rights Act of 1968 is also known as

A.    the Equal Opportunity Act.

B.     + the Fair Housing Act.

C.     the Familial Status Act.

D.    the Protected Classes Act.

13 of 25 What is an example of discrimination in lending?

A.    Denying membership to MLS

B.     Telling a person that a property is not for sale

C.     + Refusing to purchase a loan

D.    Stating a property is restricted

14 of 25 Testers who encounter fair housing discrimination have the legal ability to

A.    fine a licensee.

B.     + file complaints under federal or state agencies.

C.     revoke a real estate license.

D.    negotiate a listing contract.

15 of 25 What Act was passed in 1977 to prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities?

A.    The Housing Mortgage Act

B.     The Equal Credit Act

C.     + The Community Reinvestment Act

D.    The Fair Credit Reporting Act

16 of 25 How long does a lender have to inform an applicant that he or she was rejected for a home loan?

A.    60 days

B.     + 30 days

C.     90 days

D.    120 days

17 of 25 What term describes when HUD attempts to resolve a complaint by getting assurance from the person against whom the complaint was filed that he or she will remedy the alleged violation?

A.    Condonation

B.     Arbitration

C.     + Conciliation

D.    Intervention

18 of 25 What Act prohibits lenders from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependency on public assistance?

A.    The Real Estate Settlement Procedures Act

B.     The Fair Credit Reporting Act

C.     The Truth in Lending Act

D.    + The Equal Credit Opportunity Act

19 of 25 What 1977 Act prohibits financial institutions from discriminating in loan activities on the basis of race, color, religion, marital status, national origin ancestry or sex?

A.    The Home Mortgage Act

B.     The Equal Credit Act

C.     The Fair Lending Act

D.    + The Housing Financial Discrimination Act

20 of 25 What is defined as a simulated housing transaction designed to obtain evidence of different treatment based on an individual’s protected class status?

A.    Measuring

B.     Streaming

C.     + Testing

D.    Blockbusting

21 of 25 Communities view licensees as their real estate

A.    appraisers.

B.     board.

C.     inspectors.

D.    + experts.

22 of 25 What describes the channeling of home buyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood?

A.    Blockbusting

B.     Filtering

C.     Redlining

D.    + Steering

23 of 25 What should be prominently displayed in all broker’s offices to comply with fair housing policies?

A.    The Housing Discrimination Act

B.     Title VIII of the Civil Rights Act

C.     The office anti-discrimination policies

D.    + The Equal Opportunity Poster

24 of 25 When a licensee induces someone to sell his or her property by telling him or her that persons of a certain protected class are moving into the neighborhood it is called

A.    steering.

B.     + panic selling.

C.     redlining.

D.    protecting classes.

25 of 25 What term describes the act of restricting the number of loans in certain areas of a community because its racial or ethnic makeup?

A.    Steering

B.     + Redlining

C.     Blockbusting

D.    Filtering

Bonus  Chapter13 questions with NO answers

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1.      What are civil rights laws in the real estate industry designed to do?

2.      What is significant about the Fair Housing Amendments Act of 1988?


3.      Describe the exemption that exists for familial status discrimination?

4.      If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?

5.      What was the significance of the Plessy v. Ferguson Supreme Court decision of 1896?

6.      Why is it important for licensees to understand the Americans with Disabilities Act?


7.      Salesperson Sally tells her senior citizen buyers that the home they want to view is located in a neighborhood with several small children and loud teenagers. She tells them they would not be comfortable in this home and she shows them a list of homes in other neighborhoods she thinks would be more appropriate. What would you say about Sally’s behavior? 

8.      List three examples of discrimination that still occur in the real estate industry today.

9.      What is the definition of discriminatory advertising?

10.  In general terms, what kind of advertising would be considered acceptable and what would be considered discriminatory?

11.  Give four examples of words or phrases that would be considered discriminatory, and three that would not, with regard to handicap when writing an ad.

12.  When doing newspaper advertising, how could you avoid an impression of racial steering?

13.  What does the Equal Credit Opportunity Act prohibit?

14.  Why was the Community Reinvestment Act passed?

15.  According to the Fair Credit Reporting Act, from whom must a lender seek authorization to get a consumer’s credit report?

16.  What does the Home Mortgage Disclosure Act require?

17.  Which additional discriminatory classes does the California Fair Employment and Housing Act include that the Federal Fair Housing Act does not?

18.  Describe the Unruh Act.

19.  What remedies does the Department of Fair Employment and Housing provide to victims of fair housing discrimination?

20.  What does the Holden Act prohibit?

21.  List three examples of discriminatory practices in real estate.

22.  Describe panic selling.

23.  List two steps a broker should take to ensure compliance with fair housing laws.

24.  Why is it important for licensees to know fair housing laws?

25.  If a client asks a licensee’s opinion about a home or neighborhood, how should the licensee respond?

26.  What information should a listing agent discuss with a seller before taking the listing?

27.  What must an agent tell a seller if he or she asks about the color, religion, ethnicity, familial status, or other “protected class” characteristics of the buyer?


28.  How should an agent respond if a seller says he or she wants to wait for another offer because the buyers with the current offer “aren’t a right fit for the house”?

29.  What is testing?

30.  How can testing be beneficial?

31.  Because the Supreme Court has ruled testing is legal, how should agents view the practice of testing in real estate?

32.  What is the best way to avoid fair housing complaints?


California: “Legal Aspects of Real Estate” Chapter 14 quiz with no answers


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1 of 25 Which of these is not a type of leasehold estate?

A.    Estate for Years

B.     Estate at Will

C.     Estate at Sufferance

D.     Estate at Conveyance

2 of 25 What type of lease conveys a leasehold interest to an owner of a cooperative?

A.    A land lease

B.     A percentage lease

C.     An index lease

D.     A proprietary lease

3 of 25 What describes the transfer by a tenant, the sub lessor, of a portion of the leasehold interest to another party, the sublessee, through the execution of a sublease?

A.     Subletting

B.     Renting

C.     Owner financing

D.    Assumption

4 of 25 If a tenant is in default what can the landlord file to repossess the property and evict the tenant?

A.    A suit for default

B.     A breach of contract

C.     An order of removal

D.     A suit for possession

5 of 25 What describes a guarantee that a property meets the minimum health and housing codes?

A.    A home warranty

B.     A tenancy guarantee

C.     A home service warranty

D.     A warranty of habitability

6 of 25 How much notice must a landlord give a tenant to enter a rental property in most situations?

A.    2 days

B.      24 hours

C.     12 hours

D.    8 hours

7 of 25 What describes a report that is filled out by the landlord stating the condition of a property upon the tenant’s moving in and moving out of the property?

A.    An inspection report

B.     A housing report

C.     A residential property form

D.     A statement of property condition

8 of 25 What Act is a model law enacted as a blueprint for state laws to regulate leasing and management practices of landlords with residential properties?

A.    The Residential Community Act

B.     The Property Accommodations Act

C.      The Uniform Residential Landlord and Tenant Act

D.    The Tenancy Regulation Act

9 of 25 What refers to a government regulation of the amount of rent a landlord may charge a tenant?

A.    A cap

B.     Lease regulation

C.     Income stabilization

D.     Rent control

10 of 25 In what type of lease does the landlord pay the property’s operating expenses, including utilities, repairs, and maintenance?

A.    A graduated lease

B.      A gross lease

C.     A net lease

D.    An index lease

11 of 25 What describes money that a tenant deposits with the owner, in advance of possession, for the repair of any damages for which the tenant is responsible?

A.    A lease deposit

B.     A partial payment

C.      A security deposit

D.    An escrow deposit

12 of 25 In a lease arrangement the owner is the landlord and the renter is the

A.    lessor.

B.      tenant.

C.     proprietor.

D.    freeholder.

13 of 25 What is a lease provision that gives the tenant the right to extend the lease for an additional period of time and sets forth the terms for the renewed lease?

A.    An extension

B.      An option to renew

C.     A recommence clause

D.    A time revision

14 of 25 What term describes the giving up of a lease or other estate, thereby ending any further obligations?

A.    Breach

B.     Condemnation

C.      Surrender

D.    Voluntary agreement

15 of 25 How many days notice to terminate must a tenant be given in a mobile home lease agreement?

A.    15 days

B.     45 days

C.      60 days

D.    30 days

16 of 25 If both parties agree to terminate a lease it is called what?

A.    Term expiration

B.      Voluntary agreement

C.     Condemnation

D.    Abandonment

17 of 25 What type of suit compels the defaulting party to perform the contract obligation that was breached?

A.    A suit for breach of duty

B.      A suit for specific performance

C.     A suit for possession

D.    A suit for misrepresentation

18 of 25 What refers to the right a tenant has to exclusively have possession of a rental property?

A.    Possessor rights

B.     Tenancy rights

C.      Exclusive use

D.    Specific use

19 of 25 How many days notice, before the date of increase, must be given to homeowners in a mobile home lease agreement, regarding the increase of rent?

A.    30 days

B.      90 days

C.     45 days

D.    60 days

20 of 25 When using the repair-and-deduct option, how long should a tenant wait for a landlord to fix items before choosing to fix them him or herself if the problem is not severe?

A.    7 days

B.     21 days

C.      30 days

D.    60 days

21 of 25 What option allows a tenant to arrange and pay for repairs, then deduct the amount from rent payments?

A.    The tenant repair option

B.      The repair-and-deduct-option

C.     The right of refusal

D.    The landlord settlement option

22 of 25 Who is responsible for maintaining a residential property in a condition fit for human occupancy?

A.    The city

B.     The tenant

C.     The lessee

D.     The landlord

23 of 25 What describes a lease where the rent is based on a percentage of the monthly or annual gross sales made on the site?

A.    A proprietary lease

B.     An index lease

C.      A percentage lease

D.    A net lease

24 of 25 What is an oral or written agreement that creates and governs, by express or implied terms, a landlord-tenant relationship?

A.    An agency

B.     A sales contract

C.     A listing

D.     A lease

25 of 25 What lease clause talks about the landlord leasing the property and the tenant taking possession of the property?

A.    Capacity to contract

B.     Rent

C.      Demising clause

D.    Description

Bonus  Chapter14 questions with NO answers

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1.      What is theUniform Residential Landlord and Tenant Act (URLTA)?

2.      Describe a lease.

3.      Which type of leasehold estate is commonly referred to as periodic tenancy?

4.      What is estate at sufferance? 

5.      What is a lease agreement?

6.      When is a California lease required to be in writing?

7.      What does Megan’s Law require lease agreements include?

8.      List three covenants that are common in a lease.

9.      Define a gross lease.

10.  With what type of lease does the tenant agree to pay all the taxes, insurance, maintenance, and repairs?

11.  Describe how rent is calculated on a percentage lease.

12.  How do residential leases differ from commercial and other types of leases?

13.  Define a security deposit.

14.  What is the maximum allowed security deposit in California?

15.  Within what timeframe must a landlord refund the security deposit on a residential lease?

16.  What are the main differences between subleasing and assignment?

17.  List the obligations a landlord has in a lease agreement.

18.  What type of notice must a landlord give to enter a rental property?

19.  Explain the quiet enjoyment right a tenant has when renting a property.

20.  List three obligations a tenant has when renting a property.

21.  List three examples of what a landlord must do to ensure the implied warranty of habitability.

22.  What is the monetary limit on what a tenant can deduct from the rent for a repair the tenant made?

23.  How long is a “reasonable time” between when a tenant provides notice to a landlord and when a tenant actually makes repairs?

24.  What can happen if a landlord retaliates against a tenant who filed a complaint regarding unacceptable living conditions?

25.  List three causes of lease termination.

26.  What are the most common causes of tenant default?

27.  What is the most common form of landlord default?

28.  What is an unlawful detainer action requesting?

29. What is rent control and how does it affect a city?

30. What two types of rent control ordinances does California have?

31. List three topics California Mobile home Residency Law outlined in Civil Codes 798-798.88 addresses.

32. If the use of a mobile home park changes and management decides to evict tenants, how much notice is management required to provide? 

California: “Legal Aspects of Real Estate” Chapter 15 quiz with no answers


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1 of 25 What is the continuing education requirement to renew a real estate license in California?

A.    12 hours every 2 years

B.     15 hours every year

C.      45 hours every 4 years

D.    60 hours every 4 years

2 of 25 What is a tax on the retail sale of tangible personal property in California called?

A.    The California Public Use Tax

B.     An assessment

C.      The California Sales and Use Tax

D.    Real Property Tax

3 of 25 Who enforces the collection of sales and use taxes in California?

A.    The California Board of Realtors

B.      The California State Board of Equalization

C.     The California Bureau of Real Estate

D.    The California Real Estate Commission

4 of 25 What is the main purpose of the DRE?

A.    To collect license and exam fees

B.      To protect the public

C.     To protect licensees

D.    To protect brokers

5 of 25 What describes the right of the state to enact and enforce laws for the order, safety, health, morals, and general welfare of the public?

A.    Law of the land

B.     Eminent domain

C.      Police power

D.    Right of rescission

6 of 25 The rules of the Bulk Sales Act apply when a business is sold that involves

A.    creditors.

B.     appurtenances.

C.     assets.

D.     inventory.

7 of 25 A candidate for an original real estate salesperson license must qualify for and pass a written examination with a score of

A.    60% or greater.

B.     65% or greater.

C.      70% or greater.

D.    50% or greater.

8 of 25 A broker who receives a buyer’s money deposit, that is not in the form of a check, must deposit it in the appropriate account within how many days following receipt of the funds?

A.    10 business days

B.     3 business days

C.     7 business days

D.    5 business days

9 of 25 The maximum liability of the Recovery Account in any one transaction is how much?

A.    $40,000.00

B.     $10,000.00

C.     $15,000.00

D.     $50,000.00

10 of 25 How old must a candidate be in order to obtain a real estate license?

A.    21

B.      18

C.     16

D.    23

11 of 25 California law has held that a post-dated check may be considered the equivalent of a

A.    certificate of deposit.

B.     cash deposit.

C.      promissory note.

D.    cashier’s check.

12 of 25 What do we call the practice of mixing a client’s money with the agent’s personal funds?

A.    Conversion

B.     Disengagement

C.     Dispersement

D.     Commingling

13 of 25 What gives a person the chance to channel his or her private savings into real estate investments for which other financing cannot be obtained or is not available because of the large amount of money involved?

A.    A Money Market Account

B.     Private investment

C.     Economic reinvestment

D.     Real estate syndication

14 of 25 What describes money or other things of value that are received by the broker on the part of another person?

A.    Endowment

B.     Investment capital

C.     Escrow

D.     Trust funds

15 of 25 If an unlicensed person does act as a real estate salesperson or broker, he or she will be

A.    guilty of fraud.

B.      penalized under the law.

C.     required to compensate the injured party.

D.    fined $1,000.

16 of 25 What is an account established as a last resort for a consumer who has obtained a final civil judgment or criminal restitution order against a real estate licensee based on fraud or certain other grounds?

A.    The Real Estate Education Fund

B.     The Real Estate Research Fund

C.      The Recovery Fund

D.    The Real Estate Restitution Fund

17 of 25 A licensee who is 70 years old or older is exempt from the continuing education requirements if that person has been a licensee in good standing in California for at least

A.    25 years.

B.      30 years.

C.     15 years.

D.    20 years.

18 of 25 What is an account that holds all the money collected from license and exam fees and is used for the operating expense of the CalDRE?

A.     The Real Estate General Fund

B.     The Real Estate License Fund

C.     The Real Estate Escrow Fund

D.    The Real Estate Exam Fund

19 of 25 Within how long of an alleged violation does a person have to file a complaint with the Commissioner regarding the actions of a real estate licensee in California?

A.    1 year

B.      3 years

C.     6 months

D.    18 months

20 of 25 If the Commissioner revokes a license, the person affected may not apply for reinstatement of the license until

A.    2 years has passed.

B.     6 months has passed.

C.      1 year has passed.

D.    3 months has passed.

21 of 25 Which one of these parties do not need to be licensed as real estate sales persons or brokers?

A.    A buyer’s agent

B.     A person who solicits real estate listings

C.      A short term vacation rental agent

D.    A seller’s agent

22 of 25 What type of licensing does a person need who is acting on his or her own behalf with respect to his or her own property?

A.    A real estate license

B.     A broker license

C.     An independent contractor license

D.     No license required

23 of 25 All California real estate licenses are issued for a period of

A.    2 years.

B.     6 years.

C.     8 years.

D.     4 years.

24 of 25 What is described as the written instrument that passes the title to the personal property?

A.    A title receipt

B.      A bill of sale

C.     A balance sheet

D.    A transaction record

25 of 25 What does DRE stand for?

A.    California Buyer Representation

B.     California Board of Realtors

C.     California Business Enterprises

D.     California Department of Real Estate

Bonus  Chapter15 questions with NO answers

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1.      Explain how the California Department of Real Estate (DRE) protects the public.

2.      How does DRE generate revenue for operating costs?

3.      List three of the California Real Estate Commissioner’s specific duties.

4.      What are the required qualifications to be appointed as Commissioner?

5.      List three parties exempt from real estate licensing requirements in California.

What is California’s policy regarding compensation for an unlicensed person acting in the capacity of a real estate salesperson?

If a broker authorizes an unlicensed person to act in the capacity of a licensed salesperson, including providing compensation for real estate services, who will be disciplined under the law?

What are the penalties for engaging in unlicensed real estate activity?

What is the continuing education requirement for all real estate licensees in California?

What happens if a licensee fails to renew his or her license prior to its expiration?

How would a broker’s license expiring affect the broker’s affiliated licensees?

Describe when a licensee may be issued a restricted license.

What are the Commissioner’s Regulations?

14.  In order for the Commissioner to investigate a complaint, what timeframe must the complaint be filed?

15.  List three situations where the Commissioner may temporarily suspend or permanently revoke a real estate licensee’s license.

What is the Recovery Fund?

What are trust funds?

Within what timeframe is a broker required to deposit a buyer’s money deposit in the appropriate account or provide it to the principal?

Define commingling.

How long must brokers keep all trust account records?

21.  Define business opportunity.

22.  What are the essential elements of a business opportunity sale?

23.  What is real estate syndication?

24.  Describe the two types of Real Estate Investment Trusts (REITs).

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