California Principles questions Ch20-Ch24
(correct answers will be revealed with correct 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
Principles Ch20 quiz
(correct answers will be revealed with correct subscription)
1 of 10 Which of the following is not considered a type of common interest ownership?
A. Community Apartment Project
B. Condominiums
C. Stock Cooperatives
D. None of the Above
Principles
2 of 10 The Subdivision Map Act, the Subdivided Lands Law, and Land Projects all have a minimum number of lots required to meet requirements. Which of the following is correct?
A. The Subdivision Map Act and the Subdivided Lands Law both require a minimum of five lots for regulation and to be defined as a subdivision. To qualify as a Land Project, there must be fifty or more vacant lots.
B. The Subdivision Map Act regulates the division of five or more lots; The Subdivided Lands Law defines a subdivision as a division of land into two or more lots; and a Land Project must have fifty or more vacant lots.
C. The Subdivision Map Act regulates the division of two or more lots; The Subdivided Lands Law defines a subdivision as a division of land into five or more lots; and a Land Project must have fifty or more vacant lots.
D. None of the Above
3 of 10 Lot 19, Block 8, Western Acres Subdivision, City of Sacramento, County of Sacramento, State of California. Which method of legal description applies?
A. Lot and Block System
B. Metes and Bounds System
C. Rectangular Survey System
D. Government Survey System
4 of 10 Serena is studying for her California real estate license. She is very confused about base lines, meridians, townships, and ranges. Keeping these sets of intersecting lines straight has Serena stumped. Can you help?
A. Base lines are vertical and run east/west; meridians are horizontal and run north/south; township lines are vertical running east/west from a principal base line; and ranges are horizontal running north/south on either side of a principal meridian.
B. Base lines are horizontal and run north/south; meridians are vertical and run east/west; township lines are horizontal running north/south from a principal base line; and ranges are vertical running in any direction on either side of a principal meridian.
C. Base lines are horizontal and run east/ west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal base line; and ranges are vertical running north/south on either side of a principal meridian.
D. Base lines are horizontal and run east/ west; meridians are vertical and run north/south; township lines are horizontal running east/west from a principal meridian; and ranges can be either horizontal or vertical running in any direction on either side of a principal base line.
5 of 10 Veronica has recently completed her surgical residency and is tired of paying rent. She needs a residence that is very low maintenance due to her grueling surgical schedule. Condos and Stock Cooperatives (co-ops) have both been high on her list. Help Veronica differentiate between these two residential options.
A. A stock cooperative buyer receives a fee interest, or deed, to her unit. A condominium is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit.
B. A condominium buyer receives a fee interest, or deed, to her unit. A stock cooperative is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit.
C. A condominium buyer receives a fee interest, or deed, to her unit. A stock cooperative is a form of ownership in which each of the investors holds a specific unit and owns the right to occupy that unit for a specified period of time.
D. A condominium is a form of ownership in which each of the investors holds a specific unit and owns the right to occupy that unit for a specified period of time. A stock cooperative is a corporation formed to own the land. Veronica would not receive a grant deed, but does share in the corporation and the right to occupy a specific unit
6 of 10 Alex, a Nevada developer, has a very large development of attached retirement villas. He is interested in advertising this development in California. Alex has previously advertised and sold condos in his Arizona development to citizens of California. What must Alex do to promote and sell his Nevada development in California?
A. Alex, due to his previous experience selling to the citizens of California, is exempt from any regulations or reports required before advertising.
B. According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer.
C. According to the Interstate Sales Full-Disclosure Act, Alex must obtain a public report from the California Commissioner of Real Estate and keep a copy of this report for his own records.
D. According to California State subdivision regulations, Alex must obtain a public report from HUD and deliver a copy of this report to each prospective buyer.
7 of 10 Which of the following statements concerning California’s three sets of base lines and meridians is true?
A. The Humboldt Base Line and Meridian in the southwestern part of the State; The Mt. Diablo Base Line and Meridian in the central part of the State; and The San Bernardino Base Line and Meridian in the northwestern part of the State.
B. The Humboldt Base Line and Meridian in the northwestern part of the State; The Mt. Diablo Base Line and Meridian in the central part of the State; and The San Bernardino Base Line and Meridian in the southern part of the State.
C. The Humboldt Base Line and Meridian in the northwestern part of the State; The Mt. Diablo Base Line and Meridian in the southern part of the State; and The San Bernardino Base Line and Meridian in the central part of the State.
D. The Humboldt Base Line and Meridian in the central part of the State; The Mt. Diablo Base Line and Meridian in the northwestern part of the State; and The San Bernardino Base Line and Meridian in the southern part of the State.
8 of 10 Jerry is interested in purchasing a lot for new construction in a new subdivision. The Commissioner has issued a preliminary public report in this case, allowing the subdivider to take reservations for lot purchases. Does Jerry have any recourse to change his mind?
A. Jerry may change his mind on the lot he has reserved. However, he will not receive a full refund. His refund will be prorated for the amount of time he had reserved the lot.
B. Jerry is under no obligation due to the preliminary public report. His reservation is one in name only and is not legally binding.
C. Jerry may change his mind on the lot he has reserved. He is not committed simply because of the reservation. He may legally back out and receive a full refund, up until the time the final report is issued.
D. None of the Above
9 of 10 Roy Malone owns a large piece of land in the Sonoma Valley. He is planning to subdivide the land into five lots for the construction of luxury homes. If Roy carries through with this project, what are his roles and his next steps?
A. Roy is considered a Subdivider. His first step should be a development plan; however, this plan must include all state and local government regulations, the Subdivided Lands Law, the Subdivision Map Act, the California Environmental Quality Act, zoning, and local general and specific plans.
B. Roy is considered a developer. He must contact local officials, follow the Subdivided Map Act, and have his subdivided land mapped into lots.
C. Roy is considered a developer. He must first file a public report for the subdivision. Then local officials, following the Subdivided Map Act, have his subdivided land mapped into legal lots.
D. None of the Above
10 of 10 Merle has a rural piece of land in the northern part of the state. He is in the process of selling it to a developer. The property has a pair of one-hundred-year-old trees that mark the entrance to the property. A stream and a bluff mark the end of Merle’s property. What method of real estate description would best suit Merle’s land?
A. Lot and Block System
B. Metes and Bounds System
C. Rectangular Survey System
D. Both A and C
Principles Ch21 quiz
(correct answers will be revealed with correct subscription)
1 of 10 Beth and Brian have been informed a convenience store is going to be built on the corner across from their residence. They are furious and want some answers as to how this could be happening in their neighborhood. Who should they go to for answers and the final word on the decision?
A. The city or county planning department
B. The city council or board of supervisors
C. The owners of the new property
D. Their city alderman
2 of 10 How many primary steps must be taken to develop a general plan? Who is required to develop a general plan? What are the primary steps, in order, to achieve the desired general plan?
A. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: A Resource Analysis, Formulation of Community Goals, and The Plan Implementation.
B. There are five primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: A Resource Analysis, Formulation of Community Goals, and The Plan Implementation.
C. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city is required to develop a general plan. The steps are as follows: A Resource Analysis, The Plan Implementation and Formulation of Community Goals.
D. There are three primary steps that must be taken to achieve the general plan. Under California Code, every city and county is required to develop a general plan. The steps are as follows: Formulation of Community Goals, A Resource Analysis, and The Plan Implementation.
3 of 10 Patrice has purchased a century-old townhouse in San Francisco. She wants to make some changes and updates to both the exterior and interior. She isn’t happy with the historic pediments outside the townhouse. Patrice’s vision is of a minimalist, clean, modern home that reflects her personal style. Which type of zoning regulation, if any, may affect Patrice’s vision of a minimalist town home?
A. Enabling Acts
B. Aesthetic Zoning
C. Directive Zoning
D. Patrice may make any changes she would like to her townhouse.
4 of 10 Maurice is a builder of new residential housing in the San Fernando Valley. He builds high-end homes in various subdivisions in the area. Maurice has been paying into a fund that is used by the government for low-to-moderate-income housing. Is Maurice required to pay into this fund and, if so, why? Does he have any other options?
A. Maurice is NOT required to pay into this fund. He pays into the fund to ensure he is given special treatment in receiving building permits. He does have the option not to pay into the fund or voluntarily set aside a few units for low-to-moderate-income housing.
B. Maurice IS required to pay into this fund due to the Building Codes Ordinance. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases like Maurice’s, he may pay into the fund. If he refuses, his building permit will be denied.
C. Maurice IS required to pay into this fund due to the Police Power Action. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases like Maurice’s, he may pay into the fund. If he refuses, his building permit will be denied.
D. Maurice IS required to pay into this fund due to the Inclusionary Zoning Ordinance. He must either set aside a designated number of units for low-to-moderate-income housing; or, in certain cases, like Maurice’s, he may pay into the fund. If he refuses his building permit will be denied.
5 of 10 Which level of government is in charge of all planning controls?
A. The federal government has the final say in all planning matters.
B. The state government has the final say in all planning matters.
C. Although all levels of government have laws, regulations, and ordinances that must be recognized and followed, the state housing law is a uniform law that must be adopted by ALL cities and counties in California.
D. All levels of government: city, county, state, and federal have the final say in all planning matters.
6 of 10 Who enforces the codes of the California State Housing Law?
A. State Building Inspectors
B. Federal Building Inspectors
C. Local Building Inspectors.
D. None of the Above.
7 of 10 The McMillan Development Corporation is in the preliminary stages of building a commercial office development. They have received the building permit and all of the necessary approvals to break ground. Where do they go for guidance on the types of materials approved for construction, electrical wiring, etc.?
A. The City Planning Commission
B. The Building Codes
C. Building Officials Conference of America
D. Both B and C
8 of 10 A chain of restaurants would like to begin opening new sites along the Pacific Coastline. The owner wants all of the restaurants beachside with customer access to the beach and water from the restaurant. Which of the following ordinances or acts could govern the planning and opening of the beachfront restaurants?
A. The California Conservation Act and The California Environmental Quality Act of 1970 (CEQA)
B. The Clean Air Act
C. The National Environmental Policy Act
D. All of the Above.
9 of 10 Ernesto is a developer who is building low-to-moderate-income, federally funded homes. He is building multi-family town homes that will help those graduating from welfare education programs get a new start off of public assistance and into the job market. Which of the following federal laws plays a major role in Ernesto’s development?
A. The National Environmental Policy Act
B. The Clean Air Act
C. The Contractor’s License Law
D. Both A and B
10 of 10 Ricardo’s Restaurant is currently located between two subdivisions. The restaurant has been in business for over forty years. Currently, the area no longer allows any commercial activity. The zoning board ruled Ricardo’s may continue to operate unless it is sold, destroyed, or used for any other commercial purpose. Which zoning exception applies to Ricardo’s?
A. Nonconforming Use (Illegal)
B. Spot Zoning
C. Nonconforming Use (Legal)
D. A Buffer Zone
Principles Ch22 quiz
(correct answers will be revealed with correct subscription)
1 of 10 What are the steps to convert a mobile home into real property, if it is possible?
A. Obtain a building permit and place the mobile home on a permanent foundation. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded.
B. It is not possible to convert a mobile home into real property.
C. Obtain a building permit; place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded.
D. Place the mobile home on a permanent foundation and obtain a Certificate of Occupancy. Also, a document stating the mobile home has been attached to a permanent foundation must be recorded.
2 of 10 Saffron and Serge have a mobile home in which they travel from city to city, town to town, selling pottery and playing music. One week they may be in Berkeley, the next Sacramento. The couple travel wherever their mobile home will take them. Which of the following is true?
A. By the definition of the California Health and Safety Code, this couple’s ‘mobile home’ is not, in fact, a mobile home.
B. The mobile home can be sold by a real estate licensee as real property, since it constitutes a dwelling unit.
C. To become real property, their mobile home must have a permanent foundation.
D. Saffron and Serge cannot legally occupy the mobile home without a Certificate of Occupancy.
3 of 10 Cheryl and Troy are closing on their home on Tuesday. Their brokerage represents the GoodHome Insurance Company. The couple have not yet decided what company will be handling their homeowner’s insurance. Are they obligated to use GoodHome due to its affiliation with the brokerage?
A. They are not exactly obligated to use the insurance company represented by the brokerage; however, it would make all of the paperwork and closing more efficient.
B. No, they are not obligated to use any services recommended by the broker or agents licensed to the broker. Choosing a source of insurance is ONLY the client’s choice.
C. Yes, if they are going to use the brokerage they must use the broker’s affiliates.
D. None of the Above
4 of 10 Samantha and Todd live in a mobile home park. They have lived in the park for five years and have never been late on their rent, utilities, or any other bills. Today the mobile home park landlord has terminated their tenancy. Which of the following is not a justifiable legal reason why this couple might have been evicted?
A. The park had become overcrowded.
B. They did not follow rules and regulations.
C. They had become a substantial annoyance to other tenants.
D. They failed to sufficiently maintain their property to meet management’s standards.
5 of 10 Which of the following is an action taken by a Mineral, Oil, and Gas specialist on behalf of others?
A. Solicit borrowers or lenders for or negotiate loans on mineral, oil, or gas property
B. Lease or offer to lease or negotiate the sale, purchase, or exchange of leases on mineral, oil, or gas property
C. Assist another in filing an application for the purchase or lease of, or to locate or enter upon mineral, oil, or gas property owned by the state or federal government.
D. All of the Above
6 of 10 Lisa has had her California real estate license suspended for violations involving mobile homes under the California Business and Professions Code. What could she have possibly done?
A. Submitted a check to the State of California for mobile home fees and the check was not honored.
B. Knowingly participated in the sale of a stolen mobile home.
C. Unknowingly participated in the purchase of a stolen mobile home.
D. Both A and B
7 of 10 What is required by a notary of the person signing the notarized document?
A. A thumbprint of the person signing the document.
B. A right thumbprint of the person signing the document.
C. A right thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property.
D. A thumbprint of the person signing the deed, quitclaim deed, or deed of trust affecting real property.
8 of 10 What is the major difference between the real estate business in general and a real estate brokerage?
A. The general real estate business consists of production, marketing, and financing of real property; a brokerage is directed primarily toward the sale, exchange, lease, rental, and financing for compensation.
B. The brokerage business consists of production, marketing, and financing of real property; the general real estate business is directed primarily toward the sale, exchange, lease, rental, and financing for compensation.
C. Both A and B
D. None of the Above
9 of 10 Howard, a licensee, has heard about a specialized area of real estate brokerage–the mineral, oil, and gas brokerage. Howard is trying to find his niche in the industry and believes this is the direction in which he needs to head. What specialized license does Howard need to work with mineral, oil, and gas transactions?
A. He must obtain a Mineral, Oil, and Gas brokerage certification in addition to his real estate salesperson license.
B. He must obtain a securities license to work with Mineral, Oil, and Gas transactions in addition to his real estate salesperson license.
C. Howard does not need a specialized license to work with Mineral, Oil, and Gas transactions.
D. Both A and B
10 of 10 Sally, a licensee, has been asked to be the sales agent for a company selling new mobile homes. Can she sell these new mobile homes? If not, what sort of mobile homes can she sell?
A. Sally may not sell new mobile homes, but she may sell used mobile homes. She would have to become licensed by the California Department of Housing and Community Development to sell new mobile homes.
B. Sally may not sell new mobile homes, but she may sell used mobile homes, if they have been registered with the State of California and are on a lot. She would have to become licensed by the California Department of Housing and Community Development to sell new mobile homes.
C. Sally is a licensed real estate salesperson in the state of California. She may sell any real property she is assigned to sell.
D. None of the Above
Principles Ch23 quiz
(correct answers will be revealed with correct subscription)
1 of 10 Larry and Carlos are purchasing a 1930s bungalow in the Hollywood Hills. It is their dream home and once belonged to a silent film star. Is a lead-based paint disclosure necessary on this lovely, historic bungalow?
A. No, only if encapsulation or abatement have been conducted on the property and the seller is aware of these processes.
B. Yes, the seller of any residential structure built before 1978 is obligated to provide a lead-based paint disclosure.
C. Yes, the seller of any residential structure built before 1988 is obligated to provide a lead-based paint disclosure.
D. Yes, the seller of any property purchased prior to 1978 is obligated to provide a lead-based paint disclosure.
2 of 10 Every California dwelling unit was required to have a Carbon Monoxide Detector by:
A. January 1, 2001
B. May 7, 2010
C. July 1, 2011
D. January 1, 2013
3 of 10 The Browns have a real estate agreement with Sell Fast Real Estate Company. A couple makes a ridiculously low offer on their home, which is five-bedrooms, five-baths in Malibu. The offer is $200,000 less than the Browns’ asking price. Does the broker have to present the offer to the Browns, even if it is obviously going to be rejected and waste everyone’s time?
A. No, if an offer is clearly not going to be accepted, the broker, acting in the seller’s best interest, does not have to present the offer.
B. Yes, according to the regulations of the Real Estate Purchase Agreements in California, all offers received by the broker must be presented to the seller, no matter how out of line with expectations.
C. Yes, the agent, acting in the seller’s best interest, must present the offer. In discussing the property with other prospective buyers, there is a record of an offer having been extended, making the property appear desirable.
D. None of the Above
4 of 10 Which of the following is not a required disclosure?
A. Agency Relationship Disclosure
B. The owner’s motivation to sell
C. Megan’s Law
D. Asbestos
5 of 10 Which of the following statements is true concerning Earthquake Hazards Disclosure?
A. The seller and agent must supply the Homeowner’s Guide to Earthquake Safety booklet and provide any information requested to the buyer regarding geological or seismic hazards.
B. The seller’s and agent’s only responsibility is to supply the Homeowner’s Guide to Earthquake Safety booklet. Nothing else pertaining to the property of any seismic or geological nature need be disclosed.
C. The seller and agent must provide the Homeowner’s Guide to Earthquake Safety booklet and also disclose that a property is in an earthquake zone.
D. Both A and B
6 of 10 Tina and James have made an offer on a four-bedroom home that will be much more costly than their present mortgage. The day after making the offer, James learns his company is being sold and he will probably lose his job. Are Tina and James contractually obligated to the offer they have made on the new home?
A. Yes, an offer is put onto a purchase contract form and is legally binding.
B. No, an offer is just an offer until it is accepted by the seller. Once the owner has accepted the offer, the offeror is legally bound to the contract.
C. It depends. If Tina and James have not received notification of the seller’s accepting the offer, they may legally withdraw the offer and not be held liable on the contract. However, if the offer has been accepted, and communication of this offer has been received by the buyer, it is legally binding.
D. None of the Above
7 of 10 The Juarez family are moving into a new home and are having the home tested for Radon. They have young children and are worried about the possible effects the gas could have on their health and development. What is the interior reading that should concern the family?
A. 4 pCi/L Radon and above
B. 2.73 pCi/L Radon and above
C. 3.52 pCi/L Radon and above
D. They should be concerned at the presence of any level of Radon in their new home.
8 of 10 Lizette is buying her first home today. She is overwhelmed with all of the information that is being disclosed. Sex offender disclosures, smoke detector compliance, title insurance–the list goes on and on. Which of the following are environmental hazards the seller and agent are obligated to disclose?
A. Earthquake Information
B. Lead-Based Paint
C. Mold
D. All of the Above
9 of 10 Gary and Paul have signed the Exclusive Authorization and Right to Sell listing contract with Meyer’s Real Estate. The term of the agreement was sixty days. After the expiration of the agreement, Gary and Paul sold their home to a couple who were shown the home by a salesperson licensed to Meyer’s Real Estate. Does the real estate company have any claim to compensation from the sale?
A. Yes, under the listing’s “safety clause,” there is a period of time set forth after the expiration of the listing contract, during which the broker is entitled to compensation if the owner sells to anyone who was shown the property or who made an offer on the property during the agreement–as long as the broker notified the owner in writing of the names of the prospective buyers with whom they negotiated during the listing term.
B. No, if the broker could not sell the home during the listing term, Gary and Paul have every right to sell their home themselves to whomever they choose, without owing Meyer’s Real Estate Company compensation.
C. Yes, Meyer’s is entitled to both compensation and damages if Gary and Paul sell to a prospective buyer that was gained through Meyer’s Real Estate Company.
D. None of the above
10 of 10 Juanita is in the process of buying Amir’s home. She made an offer that was accepted by Amir and both are happy with the financial terms. After paying for several inspections, Juanita has found serious structural and electrical issues with Amir’s home. In the contract, she has requested these items be rectified at Amir’s expense within thirty days. At the end of thirty days, Amir is unwilling to spend the money to correct the items. What are Juanita’s options?
A. Juanita may simply proceed with the contract, despite Amir’s unwillingness to correct the problems.
B. Juanita may cancel the contract altogether.
C. Juanita could possibly sue to have Amir take care of the issues and then continue with the transaction.
D. Both A and B
Principles Ch24 quiz
(correct answers will be revealed with correct subscription)
1 of 10 Ramon, a salesperson licensed to Richard, a broker, has been given specific written authorization to make a withdrawal from the broker’s trust account. Ramon is uncertain this is permissible under California Law. Which California Law, if any, references Ramon’s concern?
A. California Business and Professions Code Section 10145
B. Commissioner’s Regulation 2832
C. California Business and Professions Code Section 10085.5
D. Both A and B
2 of 10 Serena and Lucy want to make an offer on their dream home. The seller is requesting a very large earnest money deposit with serious offers on the home. Serena and Lucy have some cash set aside for this purpose, but are short of the amount the sellers are requesting. Do they have any other options?
A. Cash is the only acceptable trust fund item accepted by brokers.
B. A check made payable to the broker or to an escrow or title company is an option.
C. A personal note made payable to the seller or a pink slip on an automobile given as a deposit is acceptable.
D. Both B and C
3 of 10 Jackson, a broker, is accused of commingling his money with trust account funds. His broker’s trust account is a non-interest-bearing account. The current balance of the trust account is $430,000. The earnest deposit funds portion of the account totals $415,000; the broker’s initial deposit totals $15,000. Is Jackson guilty of commingling?
A. No, he can clearly show through well-kept records his initial deposit of $15,000 and the trust fund money of $430,000. He is not earning interest from any part of this account, including his initial deposit of personal funds.
B. Yes, he should not have any money of his own ever mixed with clients’ earnest money deposits.
C. Yes, Jackson’s initial deposit to open the account should have only totaled about $1,000. The $15,000 he deposited of his own money to open the account is considered excessive.
D. Yes, Jackson’s initial deposit to open the account should have only totaled about $200.00. The $15,000 he deposited of his own money to open the account is considered excessive.
4 of 10 Jason, a broker, has been accused of conversion. His partner, Justin, has been accused of commingling. Which has been accused of a more serious offense?
A. Jason, conversion is considered a much more serious violation than commingling and has heavy criminal penalties.
B. Justin, commingling is considered a much more serious violation than conversion and has heavy criminal penalties.
C. Both Jason and Justin have been accused of very serious crimes and it will be up to the court system to decide who has committed a more serious offense.
D. None of the Above.
5 of 10 Miriam is a real estate salesperson. She has just been handed a $100,000 earnest money deposit certified check from buyers who are interested in a new home. What does she do with the money?
A. Miriam must turn the money over to the broker listing the home the buyers are interested in purchasing. The broker may then deposit the funds in the broker’s trust account.
B. Miriam must hand the check over to her own broker. At that point, the broker might direct her to put the funds into the hands of the broker’s principal; hand the funds over to another broker involved in the transaction; or place the funds into the broker’s bank account.
C. Miriam must hand over the check to only her own broker. At that point, the broker might direct her to put the funds into the hands of the broker’s principal; place the funds into a neutral escrow depository; or deposit the funds into the broker’s trust fund bank account.
D. Miriam must simply deposit the check into the broker’s account within three business days of receipt of funds. She need not consult her broker on procedure, only follow the trust fund regulations.
6 of 10 Matilda is buying a condo from Tom and Alex Ries. She has given her agent, Manuel, earnest deposit funds in the amount of $10,000. Matilda has post-dated the check to coincide with the expiration date of offer acceptance on the contract. Do the basic trust fund regulations apply to Matilda’s earnest deposit?
Yes, handling a post-dated check should be the same as a check with written instructions to be cashed upon offer acceptance. All of the basic regulations apply to the post-dated check.
No, a post-dated check is illegal tender in the state of California and may result in the mischaracterization of the form of earnest deposit money made by the buyer.
No, California law has held that post-dated checks are the equivalent of a promissory note and are non-negotiable. The broker must not accept a post-dated check from a buyer without adequate disclosure to the seller.
Yes, a post-dated check should be treated the same as a promissory note. As long as the seller has full disclosure, the basic regulations of trust funds apply to the post-dated check.
7 of 10 The McColls have made an offer on a new home. The home is new construction and scheduled to be completed by the end of the year. They provide a purchase deposit–a check in the amount of $40,000–to their agent, Suzette. Suzette, at the broker’s direction, deposits the earnest money in the broker’s trust fund account within two business days of receipt of the funds. Did Suzette follow the proper procedures?
A. No, the check should not have been cashed. If a check is used as an earnest money deposit, it is to be held until acceptance of the offer. The seller must also be informed the buyer’s check is being held and not negotiated.
B. Yes, Suzette deposited the earnest money in the broker’s trust fund account as directed. She also deposited the check within three business days of receipt. Unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed.
C. No, Suzette needed to deposit the earnest money in the broker’s trust fund account within two days of receipt, not necessarily two business days.
D. Both A and C
8 of 10 Jamison, a broker, has been fined $10,000 and is being sentenced to four months’ prison time for violations he has committed through his brokerage. Which type of violation did he possibly commit?
A. Commingling
B. Restitution
C. Advance Fees for a Loan secured by Lien on Real Property
D. Account Fraud
9 of 10 Which of the following statements concerning California Trust Account Requirements is false?
A. A trust account may be an interest-bearing account.
B. A salesperson, licensed to the broker, may, under certain conditions, make a withdrawal from the broker’s trust account.
C. An out-of-state trust account is permitted under certain conditions.
D. Both A and C
10 of 10 When a buyer hands over earnest deposit money to a salesperson licensed to a broker, or to the broker themselves, what type of relationship does this create?
A. A Client Relationship, with the broker obligated to give full disclosure to the funds’ owners.
B. A Fiduciary Relationship with the broker having a fiduciary responsibility to the funds’ owners.
C. A Buyer Relationship with the broker obligated to give full disclosure to the funds’ owners.
D. Both A and C
click here for all Q&A on 1page for easier searching
Recommended Real Estate Schools:
Website Trusted and Protected by:
