California: “Legal Aspects of Real Estate” Chapter 7 quiz with no answers
Answers will be revealed with proper subscription
Tip: to find a certain word or key term, press at the same time, the buttons:
( Ctrl and F ) on Windows computers
(Command and F ) on Mac computer
to bring up the in-page search box
1 of 25 Which of these is an advantage of an exclusive buyer agency?
A. Earning commissions from both the listing and selling side of the business is not possible.
B. Buyers have greater confidence that they will see all the properties available from every source.
C. A potential conflict of interest arises if 2 clients want to make offers on the same property.
D. The exclusive buyer broker will not take listings.
California Legal Aspects of Real Estate
2 of 25 In a broker-associate relationship, where a licensee is an employee, who controls the hours, schedule, and workload an agent has?
The licensee
The board secretary
The real estate board
The broker
3 of 25 Which offers is the broker required to present to the seller?
A. The offers that are within 20% of asking price
B. Negotiable offers
C. All offers
D. Prequalified offers
4 of 25 What is a database of properties for sale and is available for all real estate agents and brokers?
A. Index of housing
B. MLS
C. GFD
D. National home sales
5 of 25 What term describes when a buyer has the right to contract with other brokers for representation in the purchase of a property during the term of the agreement?
A. Exclusive
B. Exclusion
C. Agency
D. Non-exclusive
6 of 25 The most widely used listing agreement is the
A. open listing.
B. exclusive agency listing.
C. net listing.
D. exclusive right to sell.
7 of 25 What paragraph in a CAR Residential Listing Agreement states the broker is not responsible for damage to personal or real property or persons in association with the showing and sale of the property?
A. Seller Representations
B. Deposit
C. Agency Relationships
D. Security and Insurance
8 of 25 A written employment agreement between a broker and a licensee must be signed by
A. the broker.
B. the real estate board.
C. both parties.
D. the licensee.
9 of 25 An agent who ultimately caused a buyer to purchase a home and earned the commission is called
A. a subagent.
B. a transaction broker.
C. a dual agent.
D. the procuring cause agent.
10 of 25 Which section in a CAR Residential Listing Agreement contains a list of duties for the broker and seller?
A. Seller Representations
B. Broker’s and Seller’s Duties
C. Agency Relationships
D. Management Approval
11 of 25 What agreement authorizes a broker to represent an owner or landlord?
A. An agency agreement
B. An owner listing
C. A tenant representation agreement
D. A transaction agreement
12 of 25 A buyer’s agent is held to the same standard of performance in dealing with the buyer that the listing broker is held to in dealing with the
A. title company.
B. lender.
C. seller.
D. customer.
13 of 25 In a CAR Buyer Representation Agreement, who agrees to pay for reports, inspections, and meetings arranged by the broker on the buyer’s behalf?
A. The broker
B. The buyer
C. The seller
D. The lender
14 of 25 What provision in a CAR Exclusive Buyer Representation Agreement allows the broker to provide the agreement to an escrow agent, and the buyer authorizes buyer’s funds from escrow to pay the agreed upon compensation?
A. Timing of Compensation
B. Payments and Credits
C. Escrow Assignment
D. The Broker Right to Compensate
15 of 25 What section, in a CA residential listing agreement, states that the seller is granting the broker the exclusive and irrevocable right to sell or exchange the property described?
A. Listing terms
B. Items excluded and included
C. Compensation to broker
D. Exclusive right to sell
16 of 25 What section in a CAR Exclusive Buyer Representation Agreement states that the buyer understands that properties may be marketed online?
A. Definition of Buyer
B. Internet Advertising; Internet Blogs; Social Media
C. Escrow Assignment
D. Broker Right to Compensation
17 of 25 Under Agency Relationships, in a CAR Residential Listing Agreement, if a buyer is found through the broker or associate at the brokerage, the seller agrees to allow the broker to act as
A. a transaction broker.
B. a listing agent.
C. a dual agent.
D. a selling agent.
18 of 25 Most brokers prefer working with licensees as
A. employees.
B. independent contractors.
C. subagents.
D. other brokers.
19 of 25 Who is ultimately responsible for a licensees business related actions?
A. The licensee
B. The broker
C. The real estate commission
D. The brokerage franchise
20 of 25 What provision, in an independent contractor agreement, states that the broker and licensee will comply with all Federal and State Fair Housing laws?
A. Compensation
B. Non-employment Federal Tax Purposes
C. Regulatory compliance
D. Indemnification
21 of 25 In a CAR Exclusive Buyer Representation Agreement, how many days from the date of the agreement does a buyer have to provide the broker proof that he or she has the financial capability to purchase a property described in the agreement, if it’s not written in the agreement?
A. 7
B. 10
C. 5
D. 15
22 of 25 What section in a CAR Exclusive Buyer Representation Agreement states that the terms of an offer a buyer makes to a seller may be shared to others by the seller and/or listing agent?
A. Confirmation
B. Other Potential Buyers
C. Broker Authorization
D. Non Confidentiality of Offers
23 of 25 What provision, in an independent contractor agreement, includes the name of the broker and licensed real estate agent participating in the employment contract and the term of the agreement?
A. Independent contractor relationship
B. Obligations and duties
C. Associates authority
D. Parties and terms
24 of 25 What type of an agreement gives a broker the right to exclusively search for a home for a buyer and represent the buyer in the purchase?
A. A nonexclusive representation agreement
B. A residential purchase agreement
C. An exclusive buyer representation agreement
D. An open listing
25 of 25 What agreement authorizes a broker to represent a buyer or tenant in the search for a property to rent or purchase?
A. A representative agreement
B. A buyer compensation agreement
C. A buyer agency
D. A listing contract
Bonus Chapter7 questions with NO answers
Answers will be revealed with proper subscription
1. What type of contract will a new real estate licensee likely first experience?
2. List three characteristics of licensees who are independent contractors?
3. Although it’s usually easier for brokers to hire licensees as independent contractors rather than employees, what is the trade-off?
4. What are the conditions of the IRS safe harbor test?
5. What provision of an independent contractor agreement allows an agent to enter into agency agreements on behalf of the broker?
6. What does a provision discussing employee benefits typically state in an independent contractor agreement?
7. What are the typical conditions for terminating an independent contractor agreement?
8. What is the main difference between the two CAR Independent Contractor Agreements?
9. What is an important thing to remember about the enforceability of listing agreements?
10. What is the major difference between an exclusive right to sell listing and an exclusive agency listing?
11. Describe an open listing.
12. How does a net listing create a conflict of interest for a broker?
13. How must the listing price be written on the Exclusive Right to Sell Agreement?
14. Which specific issues are discussed in the Compensation provision?
15. If the sale of the property is prevented by someone other than the seller, when is compensation due to the broker?
16. What does a seller acknowledge if the seller chooses to opt out of using a MLS?
17. List the three specific tasks a broker is authorized to perform in order to achieve the duties outlined in the contract.
18. How many days after an associate enters into an agreement with a seller does the broker have the option to cancel the listing agreement?
19. What is the first course of action for the parties to resolve a dispute arising in regards to the compensation terms of the agreement?
20. What does the Ownership, Title and Authority provision state?
21. The buyer’s agent should mention the potential for the buyer to consult with whom?
22. Agents know that an exclusive-right-to-sell or exclusive-right-to-buy agreement provides what?
23. Define procuring cause agent.
24. List three common misconceptions concerning buyer agency.
25. According to the agreement, what is the definition of “buyer”?
26. List three activities the buyer authorizes the broker to do during the term of the agreement.
27. List three items regarding the scope of the broker’s duty that the buyer acknowledges when signing the agreement.
28. As outlined in the provision discussing the buyer’s obligations, what is the buyer expected to do in regards to finding and purchasing a property?
29. What are the parties agreeing to by initialing Paragraph 11B(2)?
30. What is the main difference between the two CAR buyer representation agreements?
California: “Legal Aspects of Real Estate” Chapter 8 quiz with no answers
Answers will be revealed with proper subscription
Tip: to find a certain word or key term, press at the same time, the buttons:
( Ctrl and F ) on Windows computers
(Command and F ) on Mac computer
to bring up the in-page search box
1 of 25 What paragraph in a CAR Residential Purchase Agreement states the contract represents the final terms of the agreement unless the parties make changes in writing?
A. Assignment
B. Selection of Service Providers
C. Time of Essence; Entire Contract; Changes
D. Expiration of Offer
2 of 25 What term refers to a lessee’s ownership of a temporary right to exclusively possess land or property?
A. Specific use
B. Leasehold estate
C. Term of lease
D. Tenant activity
3 of 25 What is not a primary provision typically found in a residential sale contract?
A. Parties
B. Boundaries
C. Legal description
D. Price and terms
4 of 25 What financing term in a CAR Residential Purchase Agreement states that the buyer’s qualification of the loan is a contingency of the agreement?
A. Loan Contingency
B. Loan Contingency Removal
C. Lender Limits on
D. Loan Contingency Buyer Credits
5 of 25 In a CAR Residential Purchase Agreement,the four sections that follow the confirmation of acceptance are real estate brokers, escrow holder acknowledgement, presentation of offer and
A. contingencies.
B. rejection of offer.
C. appraisals.
D. counteroffer.
6 of 25 How many days does a seller have after acceptance, if not specified, to disclose if the property is a condominium or planned development?
A. 10
B. 7
C. 14
D. 21
7 of 25 What type of clause refers to conditions attached to either an offer to purchase property or a counteroffer to purchase a property?
A. A demising clause
B. A release clause
C. An earnest clause
D. A contingency clause
8 of 25 What clause in a CAR Residential Purchase Agreement states the agreement is contingent on a written appraisal of the property at no less than the purchase price?
A. Verification of Loan Payment
B. Appraisal Contingency and Removal
C. All Cash Offer
D. Buyer Deposit with Agent
9 of 25 What clause in a sales contract states under what conditions the buyer can cancel the contract without default and receive a refund of the earnest money?
A. A financing contingency clause
B. An earnest money deposit clause
C. An escrow clause
D. A closing clause
10 of 25 Which section in a CAR Residential Purchase Agreement provides information regarding registered sex offenders and includes a website for the buyer to search?
A. Buyer’s Investigation of Property
B. Megan’s Law Database Disclosure
C. Natural and Environmental Hazards
D. Statutory and Other Disclosures
11 of 25 What provision in a sales contract is the seller’s written summary of the property’s condition at the time of contracting for sale?
A. Seller’s representations
B. Right of rescission
C. Residential property condition disclosure
D. Broker’s representation and commission
12 of 25 Under Acceptance of Offer in a CAR Residential Purchase Agreement, which section states that brokers are not parties to the agreement?
A. Escrow Holder Acknowledgement
B. Presentation of Offer
C. Non-participating Parties
D. Real Estate Brokers
13 of 25 What type of contingency protects the buyer by ensuring that the property is valued at a price that is close to what is being offered by the buyer?
A. A financing contingency
B. An appraisal contingency
C. A kick-out clause
D. A house sale contingency
14 of 25 What type of contingency gives the buyer the right to have the home inspected within a specified period of time?
A. A house sale contingency
B. A specified contingency
C. An inspection contingency
D. An appraised contingency
15 of 25 What needs to happen to an offer in order for it to become a contract?
A. The offer must be delivered.
B. The offer must be received.
C. The offer must be accepted.
D. The counteroffer must be made.
16 of 25 What clause talks about how a landlord is leasing a property and a tenant is taking possession of a property?
A. A possession clause
B. A leasehold clause
C. A demising clause
D. A regulation clause
17 of 25 What action could a seller take if he or she cannot make a decision regarding an offer?
A. An acceptance
B. A rejection
C. A counteroffer
D. A failure to act
18 of 25 What type of contingency can be put in place when a buyer has already accepted an offer on their current home, but has not closed?
A. A kick-out clause
B. A settlement contingency
C. A financing contingency
D. A sale and settlement contingency
19 of 25 What section in a CAR Residential Purchase Agreement includes information regarding the first, second, VA or FHA loans?
A. Deposit
B. Financing
C. Loans
D. Balance of Down Payment
20 of 25 Within how many days after delivery of a disclosure can buyer cancel a CAR Residential Purchase Agreement Contract?
A. 7
B. 5
C. 10
D. 3
21 of 25 When a seller receives an offer on his or her property, what action would free him or her to consider other offers and also frees the buyer to consider other properties or to make another offer on the same property?
A. A counteroffer
B. A rejection
C. An acceptance
D. A referral
22 of 25 According to the CAR Residential Purchase Agreement, tax bills issued after close of escrow will be handled directly between
A. seller and broker.
B. seller and buyer.
C. broker and buyer.
D. lender and seller.
23 of 25 What section under the Dispute Resolution provision of a CAR Residential Purchase Agreement states that if mediation does not solve a dispute, the parties agree to use a neutral, binding arbitration to decide the matter?
A. Additional Mediation and Arbitration Terms
B. Mediation
C. Conflict Resolution
D. Arbitration and Disputes
24 of 25 What paragraph in a CAR Residential Purchase Agreement has five sections that outline the joint instructions of the buyer and seller to the escrow holder and defines the roles of the parties in the transaction?
A. Joint Escrow Instructions to Escrow Holder
B. Prorations of Property Taxes and Other Items
C. Brokers
D. Representative Capacity
25 of 25 What governs the making, interpretation, and enforcement of leases?
A. The Residential Tenant Act
B. Landlord Tenant Law
C. The Law of Possession
D. The Law of Contracts
Bonus Chapter8 questions with NO answers
Answers will be revealed with proper subscription
1. Describe the process of making an offer.
2. What four options does a seller have when presented with an offer?
3. Why is it in a buyer’s best interest to make the best offer possible?
4. When does an offer become a contract?
5. What information is included in the price and terms provision?
6. What does the escrow clause in a sales contract do?
7. What does a right of rescission clause set forth?
8. What does a due-on-sale clause say?
9. List the three topics discussed in the Agency paragraph.
10. In CAR Residential Purchase Agreement, What does a buyer agree to do in Paragraph 3J(1) of the loan terms section?
11. How does a buyer indicate the purchase agreement is contingent on the sale of his or her current property?
12. What specific costs are addressed in Paragraph 7D in CAR Residential Purchase Agreement?
13. What three options do the parties have on the purchase agreement for when the buyer will receive possession of the property?
14. What does Paragraph 10A provide the buyer in regards to disclosure cancellation rights?
15. List three topics addressed in the Time Periods; Removal of Contingencies; and Cancellation Rights paragraph.
16. Describe the Final Verification of Condition provision.
17. If a seller agrees to repair items on the property, when must they be completed?
18. According to the Prorations paragraph, how will tax and other prorations be made?
19. Describe what the parties are agreeing to by initialing under Paragraph 21B.
20. How do the parties agree to resolve a dispute arising from the purchase agreement?
21. What does the Selection of Service Providers paragraph state?
22. List two items included in the Terms and Conditions of Offer paragraph.
23. Who is responsible for initialing the Presentation of Offer section on Page 10 of the CAR Purchase Agreement?
24. List the four paragraph titles on the CAR Counter Offer.
25. What is a contingency clause?
26. What are the two ways to write a “sell” contingency?
27. What is a “kick-out” clause?
28. List two general guidelines to follow when working with contingencies.
29. What does the term “leaseholder estate” refer to?
30. When does the Statute of Limitations require leases be in writing?
31. List three provisions common in lease agreements.
32. Describe the maintenance and repairs provision.
California: “Legal Aspects of Real Estate” Chapter 9 quiz with no answers
Answers will be revealed with proper subscription
Tip: to find a certain word or key term, press at the same time, the buttons:
( Ctrl and F ) on Windows computers
(Command and F ) on Mac computer
to bring up the in-page search box
1 of 25 How many days does a buyer have to conduct a lead-based paint inspection in a sales transaction?
A. 3
B. 15
C. 10
D. 30
2 of 25 What is a form that describes the physical condition of a property, including the presence and working condition of appliances and other features, any defects or issues with the physical property, and any possible encroachments and easements?
A. A Home Inspection Form
B. A Real Estate Transfer Disclosure Statement (TDS)
C. A Property Inspection Report
D. A survey
3 of 25 In what type of deed does the grantor warrant only against title defects or encumbrances not noted on the deed that may have occurred during the grantor’s period of ownership or trusteeship?
A. An ownership deed
B. A special warranty deed
C. A quitclaim deed
D. A special purpose deed
4 of 25 What must a seller or listing agent complete if there is actual knowledge of a property being in a natural hazard zone?
A. An Energy Conservation Disclosure
B. A Right to Home Inspection Disclosure
C. An Environmental Disclosure Statement
D. A Natural Hazards Disclosure Statement
5 of 25 California law outlines the distribution of real property through a process called
A. lis pendens.
B. life estate.
C. intestate succession.
D. quiet title.
6 of 25 When a licensee completes a TDS, the three main areas he or she will visually inspect includes the exterior of the property, the interior of the property and
A. the land.
B. utility markings.
C. environmental hazards.
D. encroachments.
7 of 25 What prevents a person from claiming a right or interest that is inconsistent with the person’s previous statements or acts?
A. Title
B. Entitlement
C. Conveyance
D. Estoppel
8 of 25 When the transfer of title to real estate uses a written instrument, the transfer is called
A. acknowledgement.
B. conveyance.
C. consideration.
D. habendum.
9 of 25 What written disclosure is required when a property is located within one mile of an area previously used for military training?
A. A Live Ammunition Disclosure
B. A Military Ordinance Location Disclosure
C. A Service Training Disclosure
D. A Governmental Risk Disclosure
10 of 25 What is the most common type of will used in California and is a formally written document usually prepared by an attorney?
A. A holographic will
B. An approved will
C. A witnessed will
D. A nuncupative will
11 of 25 What describes someone who enters, occupies, and uses another’s property without the knowledge or consent of the owner, or with the knowledge of an owner who fails to take any action over a statutory period of time?
A. A settler
B. An adverse possessor
C. A squatter
D. An illegal tenant
12 of 25 What does California law require the delivery of, before the transfer of title, on homes built before January 1, 1960, that are one-to-four units?
A. A Lead-based Paint Disclosure
B. Notice Regarding the Availability of Title Insurance
C. A Homeowner’s Guide to Earthquake Safety
D. A Disclosure of Death on Property
13 of 25 What type of deed offers the greatest protection of any deed?
A. A grant deed
B. A special warranty deed
C. A full covenant and warranty deed
D. A quitclaim deed
14 of 25 What percentage of the gross sales price must a buyer withhold and send to the IRS if the seller of real property is a “foreign person”?
A. 15%
B. 20%
C. 12%
D. 10%
15 of 25 What describes an unforced transfer of title by sale or gift from an owner to another party?
A. Constructive notice
B. Chain of title
C. Act of acceptance
D. Voluntary alienation
16 of 25 What is a legal written instrument used by an owner to transfer title to real estate voluntarily to another party?
A declaration
Fee simple
A deed
An easement
17 of 25 What term describes knowledge of a fact that a person could have or should have obtained?
A. Hindsight
B. Occurrence
C. Realization
D. Constructive notice
18 of 25 What results when a grantee has obtained defective title, or received title by defective means, but occupies the property as if he or she were the legal owner?
A. Succession of title
B. Acquisition
C. Color of title
D. Exclusive access
19 of 25 What is a court proceeding that generally settles a descendant’s estate, whether the person has died testate or intestate?
A. Probate
B. Deposition
C. Codicil
D. Action
20 of 25 What is a map, drawn to scale, of the division of land?
A. A survey
B. A plat
C. A chart
D. A plan
21 of 25 If a decedent died with a valid will, he or she is said to have died
A. habendum.
B. intestate.
C. with heirs.
D. testate.
22 of 25 What requires certain documents to be in writing to be enforceable?
A. The Statute of Limitations
B. The Law of Documentation
C. The Statute of Frauds
D. Habeas Corpus
23 of 25 Various government and public entities can transfer private property to the public sphere by the power of
A. escheat.
B. eminent domain.
C. riparian rights.
D. encumbrance.
24 of 25 What type of deed transfers real and potential interests in a property, whether an interest is known to exist or not?
A. A limited deed
B. A special warranty deed
C. A fiduciary deed
D. A quitclaim deed
25 of 25 What describes a transfer of title to real property without the owner’s consent?
A. Indemnity
B. conveyance.
C. Chain of title
D. Involuntary alienation
Bonus Chapter9 questions with NO answers
Answers will be revealed with proper subscription
1. What is voluntary alienation?
2. What does the granting clause of a deed do?
3. What action is necessary for a title to a property to pass to the grantee?
4. Why is an acknowledgement important if it is not needed to make a deed valid?
5. What two warranties are implied in a grant deed?
6. What is important to know about a full covenant and warranty deed?
7. What is the negative aspect of a bargain and sale deed with covenants?
8. What is a quitclaim deed and what is probably its most common use?
9. Define a will.
10. Explain a nuncupative will.
11. What does a probate proceeding do?
12. What happens if a person dies intestate?
13. What is involuntary alienation?
14. What does condemnation refer to?
15. Explain the process of escheat.
16. List the four types of geological processes associated with accession due to natural causes.
17. What is adverse possession?
18. How can an owner prevent involuntary alienation by adverse possession?
19. Define Estoppel.
20. Why might property owners not want their property annexed?
21. Where is a deed recorded?
22. What is constructive notice?
23. The best method of disclosing constructive notice is what?
24. How can plat maps be beneficial to buyers and sellers?
25. What is the purpose of the Real Estate Transfer Disclosure Statement (TDS)?
26. What three areas of a property are licensees required to visually inspect when completing their section of the Transfer Disclosure Statement?
27. When is the Natural Hazards Disclosure Statement required?
28. What information does a seller confirm when providing the Smoke Detector Compliance Statement?
29. List three situations where the Lead-Based Paint Disclosure is NOT required by Federal law.
30. Although not mandated by federal or state law, who may require the Structural Pest Control Inspection and Certification Report?
31. Explain the Military Ordinance Location Disclosure.
How does the IRS define a foreign person as it relates to the Foreign Investment in Real Property Tax Act?
click here for all Q&A on 1page for easier searching
Recommended Real Estate Schools:
Website Trusted and Protected by:
