California: “Legal Aspects of Real Estate” Chapter 4 quiz with no answers


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1 of 25 What are limitations placed on the use of land by the developer of a residential subdivision?

A.    Adverse possession

B.     Easements

C.     Restrictive covenants

D.    Development controls

2 of 25 What describes a regulation enacted by the local government for zoning a city or county?

A.    A mandate

B.     A special use permit

C.     An injunction

D.    A zoning ordinance

3 of 25 The three most common types of zoning classifications are residential, commercial and

A.    agricultural.

B.     industrial.

C.     recreational.

D.    public.

4 of 25 What type of property restriction places limits on how a property may be used?

A.    An encumbrance

B.     A lien

C.     An easement

D.    A deed restriction

5 of 25 Property owners can enforce covenants by taking a court action known as

A.    an affidavit.

B.     an injunction.

C.     a complaint.

D.    a decree.

6 of 25 What describes legal rights that are attached to the ownership of a parcel of real estate?

A.    Ownership rights

B.     Parcel rights

C.     A bundle of rights

D.    Legal property rights

7 of 25 If a California homeowner does not pay his or her full property tax amount by June 30th, the property is considered

A.    intestate.

B.     escheat.

C.     nonconforming.

D.    in default.

8 of 25 What describes a fungus that grows in the presence of moisture and oxygen on virtually any kind of organic surface?

A.    Carbon monoxide

B.     Radon

C.     Asbestos

D.    Mold

9 of 25 The most favorable management of real property usage must take into account both the interests of the individual and the interests of

A.    the subdivision.

B.     the surrounding community.

C.     the government.

D.    the HOA.

10 of 25 What authorizes a use that is not consistent with the zoning ordinance in a literal sense, yet is clearly beneficial or essential to the public welfare?

A.    An accessory use

B.     A special use permit

C.     A zoning ordinance

D.    A deed restriction

11 of 25 What term describes when a property owner dies with a valid will in place?

A.    Escheat

B.     Intestate

C.     Moratorium

D.    Testate

12 of 25 What allows a use that differs from the applicable ordinance for a variety of justifiable reasons?

A.    A proposed variance

B.     An area variance

C.     A zoning variance

D.    A use permit

13 of 25 The two most important environmental disclosure requirements for licensees to be aware of are the Natural Hazards Disclosure Act and

A.    the Clean Air Amendment.

B.     the Coastal Zone Conservation Act.

C.     the Lead-based Paint Act.

D.    the Alquist-Priolo Earthquake Faulting Zone Act.

14 of 25 What type of taxes are levied on properties to pay for improvements, that will ideally increase the overall value of the property?

A.    Personal property taxes

B.     Improvement taxes

C.     Special assessments

D.    Rollback taxes

15 of 25 In 1848, courts in the United States recognized and enforced restrictive covenants to regulate land use in

A.    public areas.

B.     parks.

C.     agricultural areas.

D.    residential subdivisions.

16 of 25 Properties which are owned by the government are

A.    called domains.

B.     not exempt from the payment of property taxes.

C.     exempt from the payment of property taxes.

D.    required to pay a usury tax.

17 of 25 What gives a government entity the ability to fulfill its responsibility to provide for the health, safety, and welfare of the public?

A.    Official enforcement

B.     Police power

C.     Jurisdiction

D.    Civil courts

18 of 25 Property taxes that are not paid result in a

A.    deed restriction.

B.     property lien.

C.     property assessment.

D.    tax lien.

19 of 25 What refers to a method for protecting land by transferring the “rights to develop” from one area and giving them to another?

A.    Land acquisition transfer

B.     Fee simple development

C.     Transfer of development rights

D.    Right of refusal

20 of 25 What does a developer submit for approval that contains surveyed plat maps and comprehensive building specifications?

A.    An inspection report

B.     A survey

C.     A building plan

D.    A plat of subdivision

21 of 25 What 1969 Act created the Environmental Protection Agency (EPA) and the Council for Environmental Quality, giving them a mandate to establish environmental standards for land use planning?

A.    The Water Pollution Control Act

B.     The National Environmental Policy Act

C.     The Water Quality Improvement Act

D.    The Resource Recovery Act

22 of 25 What describes a powdery mineral once commonly used as a fireproof insulating material around pipes, in floor tiles and linoleum, in siding and roofing, in wallboard, joint compound and many other applications?

A.    Radon

B.     Asbestos

C.     Formaldehyde

D.    Lead

23 of 25 What type of use is one that clearly differs from current zoning and usually occurs when zoning change leaves existing properties in violation of the new ordinance?

A.    Special use

B.     Conforming use

C.     Nonconforming use

D.    Restrictive use

24 of 25 In order to qualify for FHA financing insurance, what type of requirements must a subdivision meet?

A.    HUD requirements

B.     FHA requirements

C.     HOA requirements

D.    Minimum standard requirements

25 of 25 What type of zoning allows more restrictive zoning uses to be allowed in less restrictive zones?

A.    Noncumulative zoning

B.     Incentive zoning

C.     Cumulative zoning

D.    Recreational zoning

Bonus  Chapter4 questions with NO answers

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1.      What limits does Section 110.0 of California’s Revenue and Taxation Code outline regarding property tax amounts?

2.      What happens if property taxes have not been paid in full after the redemption period?

3.      What is a special assessment?

4.      How is the documentary tax value determined?

5.      Define “as of right zoning”.

6.      What are the core purposes of land use control?

7.      What are the two levels of approval a California general plan must pass?

8.      List three types of public and private land use controls.

9.      What do deed restrictions do?

10.  What are restrictive covenants?

11.  Describe an injunction.

12.  What is the Doctrine of Laches?

13.  What are some examples of the exercise of police power?

14.  What does eminent domain allow a government to do?

15.  What is a “taking?”

16.  What do building codes address?

17.  What are the three most common zoning classifications?

18.  What is the difference between cumulative and noncumulative zoning and which one is more common?

19.  List types of regulations found in aesthetic zones.

20.  What is cluster zoning and what is its benefit?

21.  Explain transfer of development rights?

22.  What is a moratorium?

23.  What do sunshine laws require of planning meetings?

24.  What does the Interstate Land Sales Full Disclosure Act say that developers must give to potential purchasers and lessees?

25.  Give an example of a legal and illegal nonconforming use.

26.  Describe a special use permit.

27.  What is the difference between a use variance and an area variance?

28.  List two reason zoning laws are often the basis of court cases?

29.  If more than one environmental law pertains to a property, which one applies?

30.  What is meant by CERCLA’s innocent landowner defense?

31.  What does the California Environmental Quality Act require project developers to do?

32.  According to the California Natural Hazards Disclosure Act, what zones or areas must be disclosed about a property for sale?

California: “Legal Aspects of Real Estate” Chapter 5 quiz with no answers


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1 of 25 Which fiduciary duty requires an agent to be accountable for all monies, documents, and other property he or she receives from the principal?

A.    Loyalty

B.     Disclosure of notice

C.     Care

D.     Accountability

2 of 25 If a real estate agent fails to exert reasonable efforts to represent his or her client’s interests, the agent could be found guilty of

A.    misrepresentation.

B.     perjury.

C.      negligence.

D.    fraud.

3 of 25 When there is no buyer representation agreement in place, who actually represents a seller in a real estate transaction?

A.    The licensee

B.     The listing broker

C.      The selling broker

D.    An escrow officer

4 of 25 What term refers to the person who hires a real estate agent and delegates to the agent the responsibility of representing his or her interests?

A.    Consumer

B.      Principal

C.     Customer

D.    Purchaser

5 of 25 When a licensee realizes that an agency has been undisclosed to someone, the problem can be corrected with

A.    a chain of title.

B.     power of attorney.

C.      the proper disclosure.

D.    a listing agreement.

6 of 25 Who can allow a listing to be cancelled during the term of the listing agreement?

A.    The seller

B.     The licensee

C.     A cooperating broker

D.     The broker

7 of 25 What term refers to a relationship established between a principal and a real estate agent?

A.    Fiduciary

B.     Brokerage agreement

C.      Agency

D.    Ministerial

8 of 25 If a seller lists his or her property at a particular broker’s office, who has the job of obtaining the best possible transaction for the seller?

A.    The broker

B.      Everyone in the office

C.     The licensee

D.    The listing agent

9 of 25 What informational handout should the listing agent provide the seller before a seller signs a listing agreement with the agent?

A.    A Real Estate Agent Agreement Form

B.     A Property Brokerage Form

C.     A Listing Assignment

D.     A Disclosure Regarding Real Estate Agency Relationships

10 of 25 What term describes duties a broker has to a client to meet the needs of the client above the needs of everyone else, including him or herself?

A.     Fiduciary duties

B.     Representation duties

C.     Client duties

D.    Disclosure duties

11 of 25 When a lawsuit or complaint is filed against a real estate agent, who must determine whether or not an agency relationship has been created?

A.    A broker

B.     A judge

C.     A member of the Commission

D.     A hearing officer

12 of 25 All real estate must be performed under the supervision of

A.    a judge.

B.     an attorney.

C.     an express agency.

D.     a broker.

13 of 25 What does an agent demonstrate by being honest as he or she can be with a customer while at the same time attempting to get his or her client the best transaction possible?

A.    Honesty

B.     Accountability

C.      Fairness

D.    Care

14 of 25 A licensee cannot give legal advice unless he or she

A.    has permission from the broker.

B.     is asked to by the client.

C.     speaks with an attorney.

D.     has a separate license to do that.

15 of 25 What type of agency is created between the broker and salespeople?

A.    A special agency

B.      A general agency

C.     A universal agency

D.    An employee agency

16 of 25 What is it called when a broker wants to end a listing but the client does not?

A.    Rescission

B.      Broker renunciation

C.     Client revocation

D.    Recession

17 of 25 What is the best way to end agency?

A.    Let the time limitation expire

B.     Cancellation

C.      To close the deal

D.    Rescission

18 of 25 A customer is not a client until

A.    disclosures are signed.

B.      a representation agreement is signed.

C.     it is mutually and orally agreed upon.

D.    the broker signs an agency form.

19 of 25 In what type of agency relationship does the principal empower the agent to perform any and all actions that may be legally delegated to an agency representative?

A.    Specific agent

B.     Special agent

C.     General agent

D.     Universal agent

20 of 25 Which fiduciary act requires that an agent act in good faith and obey the principal’s directions as outlined in the contract?

A.    Care

B.      Obedience

C.     Loyalty

D.    Accountability

21 of 25 Most of the sales of residential property involve two licensees-a listing broker and a

A.    sales agent.

B.      selling broker.

C.     transaction broker.

D.    dual agent.

22 of 25 In what type of agency does a person or court give an agent full control over someone’s life and belongings to meet a specific need?

A.    A general agency

B.     A specific agency

C.      A universal agency

D.    A special agency

23 of 25 What term describes when both the client and the broker agree to end the relationship that they are in?

A.    Contingency

B.      Rescission

C.     Termination

D.    Cancellation

24 of 25 What type of agency representation refers to one broker representing the seller and another broker representing the buyer?

A.    Implied agency

B.      Single agency representation

C.     Express agency

D.    Dual agency representation

25 of 25 If a broker is representing a buyer-client, he or she must negotiate on behalf of the

A.    seller.

B.     broker.

C.      buyer.

D.    lien holder.

Bonus  Chapter5 questions with NO answers

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1.      What is the definition of agency?

2.      What do we call a relationship in which one party places special trust, confidence, and reliance in another

3.      Real estate brokerage is based on what kind of agency?

4.      Under what circumstances would a client be responsible for misrepresentation committed by his or her real estate agent?

5.      What gives consumers the idea that real estate professionals have a high level of expertise in real estate?

6.      These days, how do consumers often view a home purchase?

7.      In a home sale involving 2 licensees, absent a buyer representation agreement, who do the brokers represent?

8.      What is the primary reason that you need to have a clear understanding of agency concepts?

9.      A general agency exists between the broker and the salesperson. If the salesperson violates the licensing act, who besides the salesperson would also be held responsible?

10.  If a licensee leaves his or her broker, how many listing agreements and buyer agency agreements is the salesperson allowed to take to the next broker?

11.  If a broker has a multitude of tasks to perform for a client, the broker would be considered which type of agent?

12.  Name the three components of written agreements that create agency.

13.  What is the broker’s responsibility to a client?

14.  What is a licensee’s responsibility to a client?

15.  What types of things is a broker NOT authorized to do for a client?

16.  Under what conditions might a broker be responsible for something someone else in a transaction stated to a client or customer?

17.  What are the five fiduciary duties an agent has to his or her principal?

18.  What actions demonstrate exercising care when representing a buyer?

19.  What exception exists to the duty of obedience when working with a client?

20.  An agent’s fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?

21.  What is a customer?

22.  What can a licensee not provide to a customer?

23.  What is a material fact?

24.  Why should a customer be told to be careful what he or she says around the listing agent?

25.  What is the best way to end agency?

26.  Generally, is it possible to collect a commission after the listing expires?

27.  What might sellers do if they are not happy with the progress the agent is making in showing and selling their home?

28.  With the death of the owner, what happens to the listing agreement?

29.  What should an agent do if he or she realizes there is agency that has not been properly disclosed to someone?

30.  Although legal in California, why is dual agency not encouraged?

31.  What informational disclosure form must be provided to both sellers and buyers before they sign agency agreements with a broker?

32.  How must confirmation of agency relationships be done?


California: “Legal Aspects of Real Estate” Chapter 6 quiz with no answers


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1 of 25 A meeting of the minds where parties freely agree to the terms of a contract, exactly as the contract is written, is called

A.    separate assent.

B.     reciprocal agreement.

C.     bilateral assent.

D.     mutual assent.

2 of 25 What consists of both common law and statutory rules that govern the creation, interpretation, and enforcement of contracts?

A.    Common law

B.     Statute law

C.      Contract law

D.    Civil law

3 of 25 If a contingency was not met by the date outlined in the contingency, the contract is

A.    abdicated.

B.     revised.

C.     waived.

D.     void.

4 of 25 In contract language, what means to do what one agreed to do?

A.    Action

B.      Performance

C.     Exchange

D.    Attainment

5 of 25 What restricts the time period for which an injured party in a contract has the right to bring a lawsuit against the other party?

A.    The Statute of Frauds

B.     An exclusion clause

C.     A limitation clause

D.     The Statute of Limitations

6 of 25 What type of contract is one that has been fully performed and fulfilled?

A.    An open contract

B.     An executory contract

C.      An executed contract

D.    An indefinite contract

7 of 25 What type of suit is an attempt to force the defaulting party to comply with the terms of the contract?

A.    A suit for damages

B.     Rescission

C.      A suit for specific performance

D.    Forfeiture

8 of 25 What term describes when damages were within the contemplation of the contract when made?

A.    Accountability

B.     Computability

C.     Predictability

D.     Foreseeability

9 of 25 What term describes the failure to do something required by law or duty?

A.    Transgression

B.     Breach

C.     Noncompliance

D.     Default

10 of 25 What should every contingency have so that there is “reasonable time” for the fulfillment of the contingency?

A.    Limitations of liability

B.     Selling restrictions

C.      A specific deadline

D.    A clear description

11 of 25 What describes a failure to perform according to the terms of an agreement?

A.    Failure of privilege

B.      Breach of contract

C.     Failure of performance

D.    Breach of faith

12 of 25 Which one of these contracts is a unilateral agreement?

A.    An Independent Contractor Agreement

B.     A Listing Agreement

C.      An Option to Purchase

D.    A Buyer Representation Agreement

13 of 25 Discharging a contract by mutual agreement is called

A.     rescission.

B.     initiation.

C.     revocation.

D.    retraction.

14 of 25 What do many states have that protects consumers who enter into the types of contracts in which fraud is most likely to occur?

A.    Consumer law

B.     Common law

C.      The Statute of Frauds

D.    The Breach of Performance

15 of 25 What type of contract is one that cannot be fully understood because important terms are missing?

A.     An indefinite contract

B.     An inferred contract

C.     An ambiguous contract

D.    A presumed contract

16 of 25 What term describes the exchange of promises offered by one party to another to do or not to do something?

A.    Deliberation

B.     Application

C.     Omission

D.     Consideration

17 of 25 What type of contract describes a sales contract prior to closing?

A.    An executed contract

B.     An implied contract

C.     An express contract

D.     An executory contract

18 of 25 What are described as the legal agreements that underlie the transfer and financing of real estate, as well as the real estate brokerage business?

A.    Property contracts

B.      Real estate contracts

C.     Legal contracts

D.    Performance agreements

19 of 25 What type of performance describes when a defendant has failed to complete performance of an agreement according to its terms and where the plaintiff may recover damages to compensate him or her to the same extent as though the contract had been completely performed?

A.    Sufficient performance

B.      Partial performance

C.     Defective performance

D.    Residual performance

20 of 25 What type of contract is one in which both parties promise to perform their respective parts of an agreement in exchange for performance by the other party?

A.    An express contract

B.     A unilateral contract

C.     An implied contract

D.     A bilateral contract

21 of 25 What type of contract is one in which all the terms and conditions of the agreement have been clearly stated and agreed to by all parties, whether verbally or in writing?

A.    An executed contract

B.     An implied contract

C.      An express contract

D.    A bilateral contract

22 of 25 The full consent of all parties to a contract is called

A.    memorandum of understanding.

B.     cooperative agreement.

C.      mutual agreement.

D.    service agreement.

23 of 25 Real estate contracts aren’t enforceable unless the parties have exchanged something of value called

A.    commerce.

B.      consideration.

C.     interchange.

D.    transposition.

24 of 25 At least how many people are needed to form a bilateral contract?

A.    1

B.      2

C.     4

D.    0

25 of 25 What type of contingency gives the buyer time to apply for and obtain financing?

A.    A Preliminary Title Contingency

B.      A Buyer Financing Contingency

C.     A Sale of Buyer’s Property Contingency

D.    A Home Inspection Contingency

Bonus  Chapter6 questions with NO answers

Answers will be revealed with proper subscription

1.      List the six elements required of a valid contract.

2.      Define consideration.

3.      If deliberate deception, fraud, or false information is present, the agreement is what?

4.      What are the two commonly used legal descriptions in a contract?

5.      Explain performance and forbearance in contracts.

6.      Define express and implied contracts.

7.      List three types of contracts that California’s Statute of Frauds does NOT allow to be made orally.

8.      What is needed to establish the existence of an implied contract?

9.      Define bilateral and unilateral contracts.

10.  The same criteria need to be proven to enforce a bilateral or unilateral contract in court. The four criteria needed are what?

11.  In its simplest terms, unilateral contracts involve what?

12.  Are options always unilateral or bilateral contracts?

13.  Define executed contract.

14.  Explain executory contract and give one example.

15.  When all the requirements of an executory contract have taken place, the contract becomes what?

16.  How can contract interpretation issues be avoided?

17.  In terms of validity and enforceability, a court may construe the legal status of a contract in one of four ways. What are the four ways?

18.  Real estate contracts aren’t enforceable unless the parties have exchanged something of value. This value is called what?

19.  A voidable contract is one which initially appears to be valid, but is subject to what?

20.  Explain the Doctrine of Laches.

21.  What are contingencies?

22.  What must parties to a contract do when a contingency is removed or satisfied?

23.  List the four questions licensees should ask themselves to clearly understand a contingency?

24.  What does California law require the parties of a contract to do in order to fulfill a contingency?

25.  A contract terminates when fully executed by the parties. This is called what?

26.  Parties to a contract can agree to terminate, or renounce, the contract. What is the term for this action?

27.  Explain assignment of a contract.

28.  If an assignor does not receive a novation, what does this mean in regards to his or her obligations to a contract?

29.  Define breach of contract.

30.  What is the Statute of Limitations to sue for breach of contract in California?

31.  What is a tort?

32.  List five common tort claims made against real estate licenses.

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