>ALL “Legal Aspects of Real Estate Class” Questions with no Answers for Preview

California: “Legal Aspects of Real Estate” Chapter 1 quiz with no answers

         

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1 of 25 In the Uniform Commercial Code, negotiable instruments are all of the following EXCEPT

A.    cash.

B.     promissory notes.

C.     drafts.

D.    checks.

2 of 25 Which body of law is designed to protect the public from harm?

A.    Personal Property law

B.     Civil law

C.     Criminal law

D.    Tort law

3 of 25 Rules and regulations enacted by various federal agencies are important to real estate because

A.    they are laws passed by congress.

B.     many are listed in the constitution.

C.     several of the agencies involve housing and/or financial transactions.

D.    they are considered guidelines rather than laws.

4 of 25 The Bill of Rights protects the rights of individuals by

A.    dividing power into three main branches.

B.     laying out the organization and powers of the federal government.

C.     making sure all laws agree with the US Constitution.

D.    limiting government power.

5 of 25 Which federal court reviews IRS rulings?

A.    U.S. Tax Court

B.     Claims Court

C.     U.S. Bankruptcy Court

D.    Appeals Court

6 of 25 What kind of appeal cases go straight to the California Supreme Court?

A.    Civil

B.     Murder

C.     Death penalty

D.    Fraud

7 of 25 What does not occur during a pre-trial conference?

A.    A trial plan is prepared.

B.     Attorneys and parties will revisit the financial costs and unpleasantness of going to trial.

C.     Parties may or may not consider settlement.

D.    The court enters a pre-trial order.

8 of 25 All of the following are types of monetary damages EXCEPT

A.    restitution.

B.     passive.

C.     compensatory.

D.    nominal.

9 of 25 In a civil case, the party bringing suit for injury is called the

A.    plaintiff.

B.     attorney.

C.     defendant.

D.    judge.

10 of 25 In the United States, the primary source of the law comes from

A.    civil law.

B.     statutes.

C.     case precedents.

D.    state regulations.

11 of 25 Which state court is known as the “people’s court?”

A.    Family Court

B.     Small Claims Court

C.     Court of Appeals

D.    District Court

12 of 25 Which of the following is not an equitable remedy?

A.    Liquidated Damages

B.     Rescission

C.     Quiet title

D.    Foreclosure

13 of 25 The law enforces promises through

A.    monitoring our daily activities.

B.     the use of contracts.

C.     the preservation of order.

D.    setting standards.

14 of 25 Certain amendments will be of particular interest to real estate professionals because

A.    they discuss real estate transactions.

B.     they impact property rights.

C.     everyone should know the amendments.

D.    they explain implied powers.

15 of 25 Another name for common law, which is the overall accumulation of judicial decisions is what?

A.    Constitutional law

B.     Case law

C.     Administrative law

D.    Contract law

16 of 25 In a typical civil case, the burden of proof is on the

A.    judge.

B.     officer of the court.

C.     defendant.

D.    plaintiff.

17 of 25 Which of the following is NOT an important source of law in the United States?

A.    International law

B.     United States Constitution

C.     Local ordinances

D.    Rulings of federal, state, and local agencies

18 of 25 The individual state’s common laws of torts and contracts are unique because

A.    they are the same as federal contract laws.

B.     they can be enforced on a federal or state level.

C.     the powers of these belong exclusively to the state.

D.    they are considered universal.

19 of 25 What is another term given to case law?

A.    State law

B.     Common law

C.     Property law

D.    Civil law

20 of 25 During jury selection, parties may not use preemptory challenges because of an individual’s

A.    bias.

B.     race.

C.     age.

D.    economic status.

21 of 25 Mary and Ben were having a dispute over an employment contract. They agreed to allow a third party to listen to their issues and help them come to a resolution. This is a description of what type of dispute resolution?

A.    Arbitration

B.     Litigation

C.     Mediation

D.    Estoppel

22 of 25 In a civil case, pleadings refer to

A.    counter-claims filed by the defendant.

B.     each party’s side of the dispute.

C.     gathering relevant evidence.

D.    filing suit.

23 of 25 Which of the following is NOT a purpose of laws in our society?

A.    To make associations between individuals and governments

B.     To set standards

C.     To settle disputes

D.    To safeguard liberties and rights

24 of 25 In a civil case, the primary goal is to compensate the injured party for the damage done to him or her by

A.    establishing a case precedent.

B.     awarding either a legal remedy or equitable remedy.

C.     not providing an equitable remedy.

D.    requiring a specific performance from the plaintiff.

25 of 25 It is key for agents to learn about the laws because

A.    they need to be able to memorize them.

B.     they should be able to give their clients legal advice.

C.     they have too many laws that apply to their transactions.

D.    they need to know the origination and support for those rules.

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1.      The law serves as a guide for what in our society?

2.      What is the formal method the law offers for settling disputes?

3.      The law protects our numerous liberties and rights from what?

4.      How does the law enforce promises?

5.      What is the basis of law in the United States?

6.      What do we call the overall accumulation of judicial decisions?

7.      What did the Romans contribute to the legal system?

8.      Why did Spanish civil law form the basis for California’s early legal system?

9.      What is a substantive law?

10.  What is a procedural law?

11.  Define civil law and criminal law.

12.  What are four areas of difference between civil law and criminal law?

13.  Name three important sources of United State law.

14.  How does the Bill of Rights protect individual rights?

15.  What is due process?

16.  What are the implied powers that the Constitution gives to Congress?

17.  What power do federal administrative agencies have?

18.  What laws belong exclusively to the states and not to the federal government?

19.  Why was the Uniform Commercial Code enacted?

20.  What are local ordinances?

21.  What are the two main courts in the United States?

22.  What are judicial circuits?

23.  What are the two types of courts in California?

24.  What do appellate courts do?

25.  Who are the parties involved in a civil lawsuit?

26.  What are the main steps in a civil case?

27.  What happens during discovery?

28.  If a defendant does not have insurance to cover a judgment, what avenues are available for collection?

29.  What are liquidated damages?

30.  What is meant by reformation?

31.  What is mediation?

32.  What is arbitration?

California: “Legal Aspects of Real Estate” Chapter 2 quiz with no answers

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1 of 25 Tangible property is physical, visible, and

A.    abstract.

B.     conceptual.

C.     material.

D.    imperceptible.

2 of 25 What term means the right to mortgage a property as collateral for debt?

A.    The right to exclude

B.     The right to encumber

C.     The right to finance

D.    The right to rescind

3 of 25 The metes and bounds description always identifies an enclosed area by starting at an origination point called

A.    point of beginning.

B.     base point.

C.     base point.

D.    conception.

4 of 25 Items of personal property are also called

A.    appurtenances.

B.     fodder.

C.     chattels.

D.    interests.

5 of 25 The three unique characteristics of land are immobility, indestructibility, and

A.    production.

B.     heterogeneity.

C.     function.

D.    cultivation.

6 of 25 The north-south area between consecutive meridians is called a

A.    lot.

B.     tier.

C.     section.

D.    range.

7 of 25 What is the conversion of real property to personal property by detaching it from the real estate called?

A.    Assignment

B.     Severance

C.     Fasten

D.    Allocate

8 of 25 What type of survey locates and verifies all property corners and boundaries, shows the location of all improvements in relation to the property lines, includes an area of the overall property and shows any existing encroachments?

A.    A location survey

B.     A construction survey

C.     A boundary survey

D.    A site planning survey

9 of 25 What type of surveys use portable receiving antennas to gather data transmitted from satellites which are used to calculate the position of the object being located on the surface of the earth?

A.    TA/AC surveys

B.     ALTA surveys

C.     GPS surveys

D.    ALTA/SM surveys

10 of 25 What type of survey is a boundary survey with the additional location of all the interior improvements?

A.    A topographic survey

B.     A location survey

C.     A site planning survey

D.    A construction survey

11 of 25 What did the federal government develop to simplify and standardize property descriptions as a replacement for the cumbersome and often inaccurate metes and bounds method?

A.    The lot and block method

B.     The rectangular survey system

C.     The recorded plat method

D.    The public survey system

12 of 25 What type of survey includes a topographic survey of a parcel of land which will be divided into two or more smaller tracts, lots or estate divisions?

A.    A location survey

B.     A construction survey

C.     A site survey

D.    A subdivision survey

13 of 25 What describes real estate and the bundle of rights associated with owning the real estate?

A.    Personal estate

B.     Community property

C.     Personal property

D.    Real property

14 of 25 What type of property is ownership of anything that is not real estate and the rights associated with owning the item?

A.    An emblement

B.     Real property

C.     A datum

D.    Personal property

15 of 25 Property rights that are said “to run with the land” and includes things such as air rights, surface rights and subsurface rights are called

A.    fixtures.

B.     emblements.

C.     appurtenances.

D.    chattels.

16 of 25 What describes items of a tenant’s personal property that the tenant has temporarily affixed to a landlord’s real property in order to conduct business?

A.    Datums

B.     Accessories

C.     Personal devices

D.    Trade fixtures

17 of 25 What type of rights apply to the real estate contained within the surface boundaries of the parcel?

A.    Littoral rights

B.     Water rights

C.     Encumbrance rights

D.    Surface rights

18 of 25 What is the act of converting personal property to real property by attaching it to the real estate called?

A.    Affixing

B.     Severing

C.     Appending

D.    Detaching

19 of 25 What term describes a personal property item that has been converted to real property by attachment to real estate?

A.    A feature

B.     A component

C.     A fixture

D.    A fitment

20 of 25 The term “metes” refers to distance and direction and the term “bounds” refers to

A.    course.

B.     variable landmarks.

C.     fixed reference points.

D.    latitude.

21 of 25 What describes a portion of land delineated by boundaries?

A.    A section

B.     A parcel

C.     A tier

D.    A plot

22 of 25 What refers to support provided by the adjacent property, such as a landowner having a right to demand that a neighboring property owner does nothing to cause the land to collapse?

A.    Material support

B.     Lateral support

C.     Central support

D.    Littoral support

23 of 25 Air, water, land and everything affixed to the land is a definition of

A.    intangible property.

B.     chattel.

C.     real estate.

D.    community property.

24 of 25 What system uses physical features of the local geography, along with directions and distances, to define and describe the boundaries of a parcel of land?

A.    Lot and block method

B.     Rectangular survey system

C.     Recorded plat method

D.    Metes and bounds

25 of 25 What type of rights concern properties abutting bodies of water that are not moving, such as lakes and seas?

A.    Inlet rights

B.     Littoral rights

C.     Real property rights

D.    Riparian rights

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1.      Define a parcel.

2.      What is the definition of a legal description?

3.      What situations require a legal description?

4.      When did the Public Land Survey System begin?

5.      What does a metes and bounds legal description do?.

6.      In the rectangular survey method, how large is a township in square miles and how large is a township section?

7.      For what kinds of properties is the lot and block method most often used?

8.      What other ways of describing property are legal?

9.      What does a boundary survey do?

10.  How does a location survey differ from a boundary survey?

11.  When are property surveys most often conducted?

12.  What are datums?

13.  What does the legal concept of land encompass

14.  What are the three physical characteristics of land?

15.  What does the legal concept of real estate encompass?

16.  What are the two classifications of property?

17.  What are the four important rights associated with owning a parcel of real estate?

18.  Land can be laterally divided into what classifications of rights?

19.  How are air rights delineated?

20.  What do water rights concern?

21.  What is the definition of a fixture?

22.  How is a trade fixture different from a fixture?

23.  Growing plants may be either real or personal property. How are they differentiated?

24.  Which government entity is the primary regulatory entity of the real estate business?

California: “Legal Aspects of Real Estate” Chapter 3 quiz with no answers

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1 of 25 A lien is put on a property by

A.    creditors.

B.     owners.

C.     lessees.

D.    sellers.

2 of 25 What is the purpose of forming a syndicate?

A.    To create an LLC

B.     To pool financial resources for a certain investment

C.     To be protected from taxes

D.    To test out a business idea

3 of 25 How does a cooperative differ from condominiums?

A.    The costs are relatively higher in cooperatives.

B.     In cooperatives, a person owns shares in a corporation as opposed to having a mortgage.

C.     The cooperative has less potential problems than condominiums.

D.    In cooperatives, the owner owns the land associated with their unit.

4 of 25 Which of the following is NOT a superior lien?

A.    Special Assessment

B.     Federal and State Inheritance Tax

C.     Federal Income Tax

D.    Real Estate Tax

5 of 25 If a couple has a one year lease that changes over to a month to month lease after the one year term expires, the property is what kind of leasehold estate?

A.    Estate at Will

B.     Estate from Period to Period

C.     Estate for Years

D.    Estate at Sufferance

6 of 25 What is a sole proprietorship?

A.    When two people own a business together

B.     When the business is a separate legal entity under state law

C.     When a single person owns the whole business

D.    When two people own the business, but it has limited liability.

7 of 25 Government entities can create easements through the exercise of eminent domain, which is

A.    when government agents reside in properties of their choice.

B.     when the government condemns a portion of a property and causes it to be sold “for the greater good.

C.     when easements reach the 5 year statutory period.

D.    when the government helps owners keep their property.

8 of 25 Which of these is considered separate property in a marriage?

A.    A $5000.00 check given as a wedding gift

B.     A home purchased after a couple marries

C.     A vehicle owned by one spouse prior to marriage

D.    A business purchased during a marriage

9 of 25 What is undivided interest?

A.    Interest in a property where there is a single owner

B.     Interest determined by possession of the property

C.     Interest in a property where two or more parties share ownership

D.    Interest determined by intended use of the property

10 of 25 Escheat occurs when

A.    the local government changes zoning.

B.     property of a deceased person with no heir is given to the state.

C.     a public utility company takes private property for public use.

D.    private property is seized by the state for non-payment.

11 of 25 What does a writ of attachment do?

A.    It stops a debtor from selling or concealing property.

B.     It forces the sale of a property.

C.     It protects certain property from being sold.

D.    It determines the sale price of a property.

12 of 25 A life estate is a freehold estate that is

A.    passed to an heir.

B.     given to the state upon the owner’s death.

C.     transferred to another person for permanent ownership.

D.    limited in duration to the life of the owner or other named person.

13 of 25 What does it mean for a corporation to be closely held?

A.    It has only a few shareholders.

B.     It is not a public corporation.

C.     The shareholders plan for it to stay a small company.

D.    It doesn’t pay taxes.

14 of 25 What is the main difference between condominiums and planned unit developments (PUD)?

A.    PUD owners own the land where the unit is, not just the airspace around it.

B.     PUD’s cannot be owned jointly, while condominiums can be.

C.     PUD owners are not individually taxed as condominium owners are.

D.    PUD’s can be individually sold by owners, while condominiums cannot.

15 of 25 Which type of estate is the most desirable?

A.    Determinable

B.     Fee excusatory interest

C.     Fee simple absolute

D.    Condition subsequent

16 of 25 An easement may be created by all of the following EXCEPT

A.    by prescription.

B.     voluntary.

C.     in gross.

D.    necessity.

17 of 25 What is the elective share statute?

A.    A statute that enables a surviving spouse to make a minimum claim to the deceased spouse’s property in lieu of provisions in a will

B.     A statute that assures a wife’s life estate interest in the husband’s property

C.     A statue that protects family members against losing their homes to general creditors attempting to collect on debts

D.    A statute that allows surviving spouses definitive rights to all family property after a spouse’s death

18 of 25 Which of the following lien types is subject to the homestead law?

A.    Child Support Debts

B.     Extensions of Credit on the Homestead

C.     Signature Loan Debts

D.    Tax Debts on the Homestead

19 of 25 Jennifer and Mark’s home has had a lien placed on it by the state for failure to pay state income tax shortfalls. What kind of lien is it?

A.    General Involuntary

B.     Specific Voluntary

C.     General Voluntary

D.    Specific Involuntary

20 of 25 A common interest development, or CID, is a development characterized by the individual ownership of either a housing unit or parcel coupled with

A.    its relative size.

B.     its proximity to other units.

C.     the potential value.

D.    the right to use shared common areas and facilities.

21 of 25 Which of the following is NOT a way a property may be held?

A.    In Co-ownership

B.     In Trust

C.     In Severalty

D.    In Agreement

22 of 25 Which of the following is a kind of tenancy not recognized in California?

A.    Joint Tenancy

B.     Tenancy in Common

C.     Tenancy by the Entirety

D.    Tenancy in Severalty

23 of 25 Interests are individually owned in tenancy in common. What does that mean?

A.    Tenants decide what percentage of the property each will own.

B.     Tenants have distinct and separable ownership of their interests.

C.     One of the tenants is a beneficiary.

D.    Tenants have tenancy in severalty.

24 of 25 Many states have enacted their own homestead laws that specify

A.    foreclosure timeframe.

B.     exemption amounts for individuals and families.

C.     minimum sale price.

D.    payment for selling costs.

25 of 25 An encumbrance is

A.    a law that assures a property owner’s rights.

B.     a way of zoning residential property.

C.     a type of estate.

D.    a right of another to use or take possession of a legal owner’s property or limit the owner’s rights.

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1.      What is meant by the term “undivided interest”?

2.      For what reasons might the government or a public utility take private property for public use and what is this called?

3.      What is the highest form of ownership interest one can acquire in real estate?

4.      What are the two forms of fee simple estate and what do they mean?

5.      What is a life estate?

6.      What are the major forms of legal life estate?

7.      What are leasehold tenants entitled to?

8.      What are the four types of leasehold estates and which of the four has no definite expiration date?

9.      What is an encumbrance?

10.  What are the primary differences between an easement appurtenant and an easement in gross?

11.  What is an easement by necessity?

12.  How are easements created?

13.  What is a lien?

14.  What are four legal features of a lien?

15.  List four types of liens not subject to the homestead exemption.

16.  What additional benefits does a California homeowner gain by recording a homestead declaration?

17.  What two factors primarily determine lien priority?

18.  What types of liens are considered superior liens?

19.  A court-ordered lien against all real or personal property of a parent who defaults on child support is an example of what kind of lien?

20.  What does a mechanic’s lien do?

21.  What are the three main forms of ownership?

22.  What four types of co-ownership does California recognize?

23.  What does a living trust do?

24.  What are the four unities needed to create a joint tenancy?

25.  What happens to community property upon the death of a spouse?

26.  What form of ownership is a condominium?

27.  What is the main ownership difference between condominiums and planned unit developments?

28.  What is timeshare ownership?

29.  In a limited partnership, what is the liability difference between a general partner and a limited partner?

30.  List four key things about corporations.

31.  What is a limited liability company (LLC)?

32.  What is the major benefit of Real Estate Investment Trusts (REITs)?

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.

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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?

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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

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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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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.

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

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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?

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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

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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

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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

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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.

32.  How does the IRS define a foreign person as it relates to the Foreign Investment in Real Property Tax Act?

California: “Legal Aspects of Real Estate” Chapter 10 quiz with no answers

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1 of 25 How many years are attachment liens valid from the date of the writ of attachment?

A.    4 years

B.     7 years

C.     5 years

D.     3 years

2 of 25 A creditor who places a lien on a property is called

A.    the lienee.

B.     the mortgagor.

C.     the mortgagee.

D.     the lienor.

3 of 25 California law requires a lien filer to be a licensed contractor unless the homeowner knows the worker was unlicensed and the work performed was less than how much?

A.    $700.00

B.     $1,000.00

C.      $500.00

D.    $1,200.00

4 of 25 What describes involuntary, specific liens against real property by a local government entity such as street or sewer improvements?

A.    An HOA lien

B.     A state tax lien

C.      A special assessment

D.    A judgment lien

5 of 25 For how long can a California income tax lien be in force?

A.    A maximum of 10 years

B.      A maximum of 30 years

C.     A maximum of 20 years

D.    A maximum of 5 years

6 of 25 What type of lien is also known as a construction lien?

A.    A vendor’s lien

B.     A federal lien

C.      A mechanic’s lien

D.    An involuntary lien

7 of 25 What type of lien occurs when someone loses a lawsuit and a judgment is placed against real property to pay for the judgment?

A.    A real estate tax lien

B.     A franchise lien

C.      A judgment lien

D.    A state inheritance tax lien

8 of 25 What type of lien is one that a legal process places against a property which the property owner did not agree or consent to?

A.    A statutory lien

B.      An involuntary lien

C.     An equitable lien

D.    A judgment lien

9 of 25 What is a nonfinancial encumbrance that restricts the use of a property itself and enables others to use the property, regardless of the owner’s desires?

A.    A lien

B.     A profit encumbrance

C.      An easement

D.    A restriction

10 of 25 What type of superior lien does local government entities place against certain properties to ensure payment for local improvement projects such as new roads, schools, sewers or libraries?

A.    An ad valorem tax lien

B.      A special assessment lien

C.     A mechanic’s lien

D.    A judgment lien

11 of 25 What type of lien exists when the IRS sends a taxpayer a bill entitled “Notice for Demand and Payment” and the bill is either ignored or not paid in full?

A.    An equitable lien

B.     A statutory lien

C.     A general lien

D.     A federal lien

12 of 25 The two types of homestead exemptions in California are the automatic homestead exemption and the

A.    implied homestead exemption.

B.      declared homestead exemption.

C.     express homestead exemption.

D.    equitable homestead exemption.

13 of 25 What homestead law term describes the discontinued use of property?

A.    Discarded

B.     Uninhabited

C.     Revoked

D.     Abandoned

14 of 25 What type of lien secures a purchase money mortgage, a seller’s loan to a buyer to finance the sale of property?

A.    A federal lien

B.     An involuntary lien

C.      A vendor’s lien

D.    A judgment lien

15 of 25 A lien is put on a property by

A.     creditors.

B.     owners.

C.     lessees.

D.    sellers.

16 of 25 Once a lien is placed on a property, the most common way to remove it is for the property owner to

A.    request a release.

B.     file for bankruptcy.

C.      pay the debt.

D.    retain an attorney.

17 of 25 Many states have enacted their own homestead laws that specify

A.    foreclosure timeframe.

B.      exemption amounts for individuals and families.

C.     minimum sale price.

D.    payment for selling costs.

18 of 25 What is the term used to describe an interest in and a right to real property that limits the legal owner’s freehold interest?

A.    An encroachment

B.      An encumbrance

C.     A deed restriction

D.    A license

19 of 25 What is an option a creditor can obtain to receive payment by forcing the sale of attached property and collect a debt?

A.     A writ of execution

B.     A constructive notice

C.     A right of rescission

D.    A credit assessment

20 of 25 What puts a mechanic’s lien on the balance of funds from a sale?

A.    A lien release

B.      A stop notice

C.     A notice of responsibility

D.    A notice of cessation

21 of 25 What does a writ of attachment do?

A.     It stops a debtor from selling or concealing property.

B.     It forces the sale of a property.

C.     It protects certain property from being sold.

D.    It determines the sale price of a property.

22 of 25 What is not one of the four ways a judgment lien can be terminated?

A.    Lien payment

B.     Lien expiration

C.      Discharge by exemption

D.    Discharge by creditor

23 of 25 What type of laws protect family members against losing their homes to general creditors attempting to collect on debts?

A.    Land use laws

B.     Familial laws

C.      Homestead laws

D.    Real estate laws

24 of 25 Once a mechanic’s lien has been paid, what must be recorded to show the lien has been discharged and satisfied?

A.    A deficiency judgment

B.     Equitable title

C.     An expense report

D.     A lien release

25 of 25 Which of the following is NOT a superior lien?

A.    Special Assessment

B.     Federal and State Inheritance Tax

C.      Federal Income Tax

D.    Real Estate Tax

Bonus  Chapter10 questions with NO answers

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1.      Define an encumbrance.

2.      List three types of nonfinancial encumbrances.

3.      What is the purpose of deed restrictions?

4.      What is a lien?

5.      What are four legal features of a lien?

6.      List the two main differences between a deed of trust and mortgage.

7.      What is an involuntary lien?

8.      Compare general and specific liens.

9.      What two factors primarily determine lien priority?

10.  Give an example of when lienholders may subordinate their liens.

11.  What types of liens are considered superior liens?

12.  Which tax liens are junior liens?

13.  Define a judgment lien.

14.  List the four ways a judgment lien can be terminated.

15.  The homestead exemption does not apply to which two specific types of judgment liens?

16.  What is the purpose of a writ of attachment?

17.  What does a mechanic’s lien do?

18.  What is the purpose of a preliminary notice?

19.  If a notice of completion or cessation is filed by a homeowner, how long do general and subcontractors have to file a mechanic’s lien against the property?

20.  What happens if a lienor does not enforce a mechanic’s lien within 90 days of it being recorded?

21.  Describe a property tax lien.

22.  List the four ways a federal income tax lien can be removed.

23.  How long is a California income tax lien valid?

24.  What is a municipal utility lien?

25.  What is the purpose of homestead laws?

26.  List four types of liens not subject to the homestead exemption?

27.  When a homestead property is foreclosed by a judgment creditor, who is the first to receive sale proceeds?

28.  What additional benefits does a California homeowner gain by recording a homestead declaration?

California: “Legal Aspects of Real Estate” Chapter 11 quiz with no answers

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1 of 25 What was passed by Congress in 1977 to prevent redlining and to encourage banks and thrifts to help meet the credit needs of all segments of their communities, including low-and moderate-income neighborhoods?

A.    The Economic Recovery Act

B.     The Equal Opportunity Act

C.     The Tax Relief Act

D.    + The Community Reinvestment Act

2 of 25 What transfers legal title to a lienholder and something a defaulting borrower may use to avoid court actions and costs by voluntarily deeding the property to the mortgagee?

A.    Voluntary assignment

B.     A strict foreclosure

C.     + Deed in lieu of foreclosure

D.    Conveyance

3 of 25 The primary method of foreclosure in California is the

A.    strict foreclosure.

B.     judicial foreclosure.

C.     voluntary foreclosure.

D.    + non-judicial foreclosure.

4 of 25 What type of mortgage loan is the most common and generally viewed as the most secure?

A.    An FHA loan

B.     + A conventional mortgage

C.     A government backed loan

D.    A rural housing loan

5 of 25 What type of clause requires a borrower to pay a penalty or late charge for any payments that are considered to be late?

A.    A graduated payment clause

B.     + A late payment penalty clause

C.     A lender clause

D.    A pay off clause

6 of 25 In an adjustable rate loan, index plus the margin establishes the

A.    adjustment period.

B.     initial rate.

C.     amortization period.

D.    + calculated rate.

7 of 25 Which of these regulates how borrowers apply for credit and how lenders evaluate income and grant credit?

A.    The Federal Trade Commission

B.     + The Equal Credit Opportunity Act

C.     The Department of Housing and Urban Development

D.    The Department of Fair Housing

8 of 25 What describes the right of a mortgagor who has defaulted on a note to redeem or get back the title to the property by paying off the entire mortgage note before the foreclosure sale?

A.    + The right of redemption

B.     The right of rescission

C.     The right of action

D.    The right of payment

9 of 25 What conveys title rights in a property over to an assigned trustee?

A.    A right of assignment

B.     A subordination clause

C.     + A deed of trust

D.    A release of deed

10 of 25 What authorizes an official, such as the county sheriff, to seize and sell a foreclosed property?

A.    A right of redemption

B.     A right to sell

C.     + A writ of execution

D.    A power of sale

11 of 25 What refers to all calendar days except Sundays and holidays specified in 5 U.S.C. 6103 or the observed legal holiday?

A.    A weekday

B.     + A business day

C.     A nautical day

D.    A bank day

12 of 25 What term describes a measure of economic conditions?

A.    Margin

B.     Rate

C.     + Index

D.    Deficit

13 of 25 What involves the transfer of an interest in land as security for a loan or other obligation?

A.    A deed

B.     + A mortgage

C.     A transaction

D.    A lease

14 of 25 What describes a legal procedure in which the property that is used as security for a debt is sold to satisfy the debt in the event of a default?

A.    An eviction

B.     A seisen

C.     A repossession

D.    + A foreclosure

15 of 25 What type of mortgage loan allows a borrower who has an existing loan to get another loan from a second lender without paying off the first loan?

A.    + A wraparound mortgage

B.     A swing loan

C.     A bridge loan

D.    A construction mortgage

16 of 25 What Act requires each of three nationwide credit reporting companies to give consumers a free copy of their credit report, at their request, once every 12 months?

A.    The Credit Reporting Act

B.     The Home Mortgage Disclosure Act

C.     + The Fair Credit Reporting Act

D.    The Mortgage Choice Act

17 of 25 In a graduated payment mortgage the interest owed and not paid in the initial months is added back to the principal causing what is referred to as

A.    indemnification.

B.     recompensation.

C.     graduated subsidy.

D.    + negative amortization.

18 of 25 What clause, in a non-judicial foreclosure, enables a mortgagee to order a public sale without a court decree?

A.    A due-on-sale clause

B.     + A “power of sale” clause

C.     A subordination clause

D.    A release clause

19 of 25 What covenant in a deed of trust document states that if the borrower violates any of the covenants of the contract, the beneficiary may call for payment of the loan in full and the trustee may sell the property after he or she has filed all the proper notices?

A.    Reconveyance

B.     + Acceleration

C.     Assignment of rents

D.    Expenditures

20 of 25 What describes an interest-only note, whereby the borrower agrees to pay the interest periodically and to pay the entire principal when the note comes due?

A.    An installment note

B.     A periodic note

C.     A rate note

D.    + A straight note

21 of 25 What clause in a standard mortgage states that if the borrower repays the debt when due, the words “of grant” are void, the mortgage is canceled, and the title is given back to the borrower?

A.    An acceleration clause

B.     A seisen clause

C.     + A defeasance clause

D.    A granting clause

22 of 25 What was created in 1974 to ensure that the buyer and seller in a residential real estate transaction, involving a new first mortgage loan, have knowledge of all settlement costs?

A.    The Consumer Financial Disclosure Act

B.     The Real Estate Protection Agency

C.     The Department of Housing and Urban Development

D.    + The Real Estate Settlement Procedure Act

23 of 25 With what type of loan does the monthly payment for principal and interest gradually increase by a certain percentage each year for a certain number of years and then it levels off for the remaining term of the mortgage?

A.    A purchase money mortgage

B.     A package mortgage

C.     + A graduated payment mortgage

D.    An ARM

24 of 25 What acceleration clause requires the borrower to pay off the entire mortgage debt when the property is sold?

A.    A subordination clause

B.     A “subject to” clause

C.     + A due-on-sale clause

D.    A “power of sale” clause

25 of 25 What type of prepayment clause prohibits the borrower from paying the mortgage loan in full before a specific date?

A.    A lienholder clause

B.     A lender clause

C.     A due-on-sale clause

D.    + A lock-in clause

Bonus  Chapter11 questions with NO answers

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1.      Define leverage.

2.      What document is a real estate promissory note attached to?

3.      List three provisions that are common to most notes.

4.      What does the covenant of seisin provision of a mortgage document state?

5.      What is a deed of trust?

6.      List two reasons that lenders prefer to use the deed of trust when making loans.

7.      Define acceleration.

8.      List two differences between a mortgage and a deed of trust.

9.      What is California’s position regarding late payments on a loan?

10.  Describe a lock-in clause.

11.  What is the main advantage and what is the main disadvantage to a borrower to purchase a property “subject to” the mortgage?

12.  What types of transactions often include a release clause?

13.  Define foreclosure.

.

14.  What three types of foreclosure processes enforce mortgage liens?

15.  Explain when a judicial foreclosure is used and how a lender files a suit.

16.  What is a deficiency judgment?

17.  What does a “power of sale” provision in a deed of trust or mortgage allow a lender to do?

18.  Describe a Notice of Default.

19.  In a non-judicial foreclosure sale, the new purchaser will receive a trustee’s deed to the property. But what potential problem exists?

20.  What is the main problem with a strict foreclosure?

21.  Most conventional loans require the borrower to make how much of a down payment?

22.  List two advantages of conventional loans over government-backed loans.

23.  What are the two distinct features of fixed-rate, fully-amortized loans?

24.  What is a payment cap?

25.  Why might a graduated payment mortgage be appealing to someone who is just starting a career?

26.  What is a release clause and in what type of mortgage would you find this clause?

27.  Describe a reverse annuity mortgage.

28.  Define a purchase money mortgage.

29.  What is the purpose of the Real Estate Settlement Procedures ACT (RESPA)?

30.  List three types of loans that do not require compliance with the TRID rule?

31.  When must the Loan Estimate be delivered to the borrower?

32.  Who is generally responsible for ensuring the Closing Disclosure is delivered to a buyer no later than 3 business days before closing?

33.  What does the Truth in Lending Act require lenders to disclose to buyers?

34.  Who does Regulation Z apply to?

35.  Why was the Community Reinvestment Act passed?

36.  List three warning signs of predatory lending

California: “Legal Aspects of Real Estate” Chapter 12 quiz with no answers

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1 of 25 Who must sign and acknowledge escrow instructions?

A.    The buyer

B.     The broker

C.      The seller and buyer

D.    The seller

2 of 25 Escrow doesn’t officially close until the deed has been

A.    signed.

B.      recorded.

C.     transferred.

D.    conveyed.

3 of 25 Within how many days is a creditor generally required to provide the Loan Estimate of the receipt of the consumer’s loan application?

A.    10 business days

B.     30 business days

C.     7 business days

D.     3 business days

4 of 25 What type of special title insurance policy is used when a property is being purchased through a land sales contract, purchase money mortgage, or purchase money trust deed?

A.    A leaseholder policy

B.     An early issue endorsement

C.      A vendee policy

D.    An oil and gas interest policy

5 of 25 What settlement process refers to signing and transferring all documents and distributing funds?

A.    Commitment

B.     Conveyance

C.     Servicing

D.     Closing

6 of 25 Who is RESPA administered by?

A.    The Office of Fair Housing (OFH)

B.      The Consumer Financial Protection Bureau (CFPB)

C.     The Office of Equal Opportunity (OEO)

D.    The Department of Housing and Urban Development (HUD)

7 of 25 When can licensees recommend specific individuals or companies to their clients and accept a referral fee?

A.    When there is a dual agency created

B.      Never

C.     When the licensee is also acting as an escrow agent

D.    When the licensee is acting as a transaction broker

8 of 25 What was created in 1974 to ensure that a buyer and seller in a residential real estate transaction have knowledge of all settlement costs?

A.    The Real Estate Acquisition Act (REAA)

B.     The Residential Real Estate Act

C.      The Real Estate Settlement and Procedures Act (RESPA)

D.    The Settlement and Real Estate Transaction Act

9 of 25 What term describes the process in which a disinterested third party holds all money and documents relating to a transaction until all terms and conditions have been satisfied?

A.    Transference

B.     Recording

C.      Escrow

D.    Modification

10 of 25 Interest is always paid

A.    in advance.

B.     by the lender.

C.      in arrears.

D.    before closing.

11 of 25 Which section of a Closing Disclosure includes names and addresses for both the borrowers and sellers and the lender’s name?

A.    The closing information

B.     The loan information

C.     The summary information

D.     The transaction information

12 of 25 What describes written authorization and instructions for how an escrow agent will perform in a transaction?

A.    Escrow analysis

B.     Performance instructions

C.     Agent authorization

D.     Escrow instructions

13 of 25 Items that are paid in advance such as property taxes are called

A.    credits.

B.      prepaid expenses.

C.     prorations.

D.    advancements.

14 of 25 Which section of a Closing Disclosure shows the actual payments the borrower will make for principal and interest and mortgage insurance, an estimated amount for the escrow payment, and the total estimated monthly mortgage payment?

A.    Loan terms

B.     Calculations

C.      Projected payments

D.    Descriptions

15 of 25 What refers to the succession of property owners of record dating back to the original grant of title from the state to a private party?

A.    Deed-in-lieu

B.     Clouded title

C.     Eminent domain

D.     Chain of title

16 of 25 A quiet title suit is also called a suit to remove

A.    an assignment.

B.     a defect.

C.      a cloud.

D.    a contingency.

17 of 25 Which part of a Loan Disclosure indicates whether or not the lender will allow a loan assumption on a future sale or transfer?

A.    Demand feature

B.      Assumption

C.     Escrow Account

D.    Other disclosures

18 of 25 What refers to money that the buyer or seller needs to pay at closing?

A.    A fee

B.     A credit

C.     A settlement

D.     A debit

19 of 25 What type of deed transfers title from the seller to the buyer?

A.    A deed of reconveyance

B.     A deed of trust

C.      A grant deed

D.    A specific deed

20 of 25 In a real estate transaction what party chooses the escrow holder?

A.    The seller

B.      Either party

C.     The buyer

D.    The lender

21 of 25 What is an extended title coverage policy that insures against many of the items excluded in the CLTA standard policy?

A.    The Mortgage Title Insurance Policy

B.      The American Land Title Association (ALTA)

C.     The Real Property Title Association (RPTA)

D.    The California Title Association

22 of 25 What is a contract of indemnity where an insurance company agrees to compensate the insured, either a homeowner or a lender, for financial losses that the insured has incurred because of defects to the title of the property?

A.    A transfer of ownership

B.      A title insurance policy

C.     A title report

D.    Hazard insurance

23 of 25 What describes expenses that the seller incurred but have not yet been billed for at the time of closing?

A.    Settlement expenses

B.     Mortgage expenses

C.      Accrued expenses

D.    Estimated expenses

24 of 25 The two methods that are typically used when closing agents and lenders calculate items that need to be prorated are the 12-month/360 day method and the

A.     365 day method.

B.     half year method.

C.     prorated calculation method.

D.    6-month/180 day method.

25 of 25 What is the standard title policy in California?

A.    The California Home Title Policy

B.     The First American Land Title Policy (FALTP)

C.     The American Title Association

D.     The California Land Title Association (CLTA)

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1.      What is escrow?

2.      Describe an escrow agent.

3.      When can a broker act as an escrow agent?

4.      List the five basic steps of the escrow process.

5.      What are escrow instructions?

6.      What activities are all escrow agents prohibited from doing?

7.      Besides the escrow agent, who else has responsibilities to ensure the closing occurs smoothly and on time?

8.      List three duties of real estate agents during the escrow process.

9.      Explain marketable title.

10.  What is the purpose of the preliminary title report?

11.  Describe a title insurance commitment.

12.  Who needs title insurance and why?

13.  Explain why title insurance is unlike other forms of insurance.

14.  Who typically pays for the homeowner’s title insurance at closing?

15.  What is the difference between CLTA and ALTA policies?

16.  What items are not covered by any title insurance policy?

17.  Although it’s not required, why is it a good idea for agents to attend escrow closings?

18.  What are closing costs?

19.  When does an escrow close?

.

20.  What is the Foreign Investment in Real Property Tax Act?

21.  What does prorated mean?

22.  Name three items that are prorated for closing.

23.  How are prorated items shown on the closing statement?

24.  Closing agents and lenders typically use one of two methods when calculating items that need to be prorated. Name the two methods.

25.  Explain the Real Estate Settlement and Procedures Act (RESPA).

26.  What types of closings must follow the TRID rule?

27.  When must the Closing Disclosure be delivered to the borrower?

28.  Define consummation.

29.  Which pages of the Closing Disclosure will always look the same regardless of the loan type?

30.  What information does the Loan Terms section of Page 1 provide?

31.  What does the Other Costs section include on Page 2 of the Closing Disclosure?

32.  What is a borrower affirming by signing the Confirm Receipt section of the Closing Disclosure?

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

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

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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?

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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

Answers will be revealed with proper subscription

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).

California: Real Estate “Legal Aspects” – Sample of Final Course Exam

Answers will be revealed with proper subscription in “ANSWER” pages

Tip: to find a certain word or key term,  press at the same time, the buttons:

( Ctrl and F ) on Windows computers

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to bring up the in-page search box

1 of 100 What accurately locates and identifies boundaries of a subject parcel to a degree acceptable by courts of law in the state where the property is located?

A.    A stake survey

B.     A deed

C.     A legal description

D.    A title search

2 of 100 According to a CAR Residential Purchase Agreement, how long does a buyer have to complete inspections and approve all material provided by the seller in relation to the property, if not specified?

A.    3

B.     21

C.     10

D.    17

3 of 100 The Uniform Commercial Code does all of the following EXCEPT:

A.    allow the expansion of commercial practices.

B.     modernize the law governing commercial transaction.

C.     clarify the law governing commercials transaction.

D.    create local ordinances.

4 of 100 When a seller lists his or her home with a licensee and the property does not go under contract or if the client does not agree to extend the time of the listing, then the listing will:

A.    terminate.

B.     cancel.

C.     expire.

D.    not sell.

5 of 100 What is an additional clause in a sales contract where the seller warrants that there are no undisclosed building codes or zoning violations?

A.    Owner’s association disclosure

B.     Inspections

C.     Survey

D.    Compliance with laws

6 of 100 Which part of a Loan Disclosure states what late fee the lender will charge?

A.    Partial payments

B.     Security interest

C.     Negative amortization

D.    Late payment

7 of 100 The law enforces promises through the use of

A.    laws.

B.     regulations.

C.     contracts.

D.    policies.

8 of 100 What advertising phrase would be considered discriminatory based on handicap?

A.    Fourth-floor walk up

B.     Jogging Trails

C.     Walk-in closets

D.    Able bodied persons only

9 of 100 Which section in a CAR Residential Purchase Agreement shows who will pay the county transfer fees, private transfer fee, city transfer fee, and home warranty?

A.    Items included in sale

B.     Escrow

C.     Note to Buyer and Seller

D.    Other Costs

10 of 100 The collection of Roman law contributed the model for which type of law?

A.    Civil law

B.     Criminal law

C.     Case law

D.    Common law

11 of 100 It is important for a licensee or a broker to remove ambiguity when a seller’s unclear decision could be discriminatory by forcing the seller to

A.    cooperate with the buyer.

B.     renegotiate the contract.

C.     pay the closing costs.

D.    articulate his or her concern.

12 of 100 What lease provision would outline the condition of the property at the time a lease is executed?

A.    Maintenance and repair

B.     Rules and Regulations

C.     Landlord Entry

D.    Condition of the Property

13 of 100 What Act requires that lenders keep all credit information confidential?

A.    The Fair Lending Act

B.     The Unruh Civil Rights Act

C.     The Home Mortgage Disclosure Act

D.    The Fair Credit Reporting Act

14 of 100 In contract law, what term means someone has broken his or her word?

A.    Infringement

B.     Violation

C.     Infraction

D.    Breach

15 of 100 What term describes a person, company , or entity that assigns its right to another?

A.    Assignee

B.     Delegor

C.     Assignor

D.    Delegee

16 of 100 What informs buyers and prospective tenants of registered sex offender database that can be searched to identify if any sex offenders are near property?

A.    Identifying a Registered Sex Offender Pamphlet

B.     Notice Regarding Database of Location if Registered Sex Offenders

C.     A Sex Offender Disclosure Form

D.    A Property Disclosure Statement

17 of 100 In creating a joint tenancy, there are four unities. Which of the following is NOT one of the four?

A.    Unity of Time

B.     Unity of Possession

C.     Unity of Interest

D.    Unity of Origination

18 of 100 Effective October 2015, the two forms that are the primary closing information documents for most real estate transactions are the Loan Estimate and

A.    Payment Schedule.

B.     Closing Disclosure.

C.     Buying Disclosure.

D.    Mortgage Statement.

19 of 100 Which section, in a CAR Counteroffer, states that a binding agreement is created when a copy of a signed acceptance is personally received by the maker of the counteroffer or the person’s authorized agent?

A.    Offer

B.     Acceptance

C.     Expiration

D.    Terms

20 of 100 What describes when a buyer files a claim in situations where the seller has not delivered the title after all other terms of the contract have been satisfied?

A.    An equitable lien

B.     A statutory lien

C.     A vendor’s lien

D.    A vendee’s lien

21 of 100 What is known as water beneath the surface that runs in recognizable underground streams or collects in porous ground layers called aquifers?

A.    Common water

B.     Surface water

C.     Ground water

D.    Water table

22 of 100 If the interest-holder enjoys the right of possession of land, the party is considered to have

A.    eminent domain.

B.     a leasehold estate.

C.     an encumbrance.

D.    an estate in land.

23 of 100 Who is generally responsible for ensuring that the Closure Disclosure is delivered to the buyer no later than three business days before consummation?

A.    The broker

B.     The creditor

C.     The licensee

D.    The title company

24 of 100 What type of variance permits an application to vary one or more of the dimensional or physical requirements of the acceptable zoning law, code or ordinance in connection with some proposed construction?

A.    A zoning variance

B.     A use variance

C.     A code variance

D.    An area variance

25 of 100 What type of an estate is one that continues for a definite fixed period of the time?

A.    Estate from period to period

B.     Estate for years

C.     Estate at will

D.    Estate at sufferance

26 of 100 What do California homeowners receive to protect equity when a court forces the sale of the house to pay for a judgement?

A.    Sole proprietorship

B.     A general exemption

C.     An automatic homestead exemption

D.    A callable loan

27 of 100 If a deed is to be recorded, California requires that it be recorded in the office of the county clerk

A.    in the county where the buyer resides.

B.     in the county of choice determined by the clerk.

C.     at the greed upon location.

D.    in the county in which the property is located.

28 of 100 In a CAR Residential Purchase Agreement, who is responsible for repairing and damages that occur as a result of inspections?

A.    The seller

B.     The broker

C.     The buyer

D.    The inspector

29 of 100 If a person dies with no heirs and no one qualified to receive e property, what power will state use to claim the property?

A.    Escheat

B.     Eminent domain

C.     Sovereignty

D.    Incentive

30 of 100 Which fiduciary duty requires an agent to place the client’s interests above those of all others, including his or her own?

A.    Honesty

B.     Loyalty

C.     Accountability

D.    Disclosure

31 of 100 What term describes the borrower in a mortgage?

A.    A creditor

B.     A mortgagee

C.     A mortgage lender

D.    A mortgagor

32 of 100 What term describes a legal procedure of removing a tenant from a property because there is a breach of the lease or rental agreement?

A.    Notice

B.     Foreclosure

C.     Eviction

D.    Displacement

33 of 100 What describes conditions that must be met in order for a contract to be enforceable?

A.    Terms

B.     Limitations

C.     Contingencies

D.    Restrictions

34 of 100 What Act requires financial institution to maintain and disclose data about home purchases, home purchase pre-approvals, home improvement and refinance applications involving 1 to 4 unit multifamily dwellings?

A.    The Banking Disclosure Act

B.     The Home Mortgage Disclosure Act

C.     The Consumer Protection Act

D.    The Equal Credit Opportunity Act

35 of 100 How many years must a candidate serve as a real estate broker, actively engaged in the real estate business in order to be appointed as Commissioner?

A.    4

B.     1

C.     3

D.    5

36 of 100 What term describes the sudden decrease of land by flowing water or waves  often caused by hurricanes and other storms?

A.    Erosion

B.     Accretion

C.     Reliction

D.    Avulsion

37 of 100 When a person first meets a person, that person is called a

A.    principal

B.     customer

C.     client

D.    buyer

38 of 100 What are unsecured claims that take the place alongside the borrower’s other depts?

A.    Limitation judgements

B.     Deficiency judgements

C.     Sale proceeds

D.    A writ of execution

39 of 100 What provides legal, public, and constructive knowledge to everyone about the ownership of a property?

A.    A contract

B.     The act of recording

C.     Title

D.    Judgement

40 of 100 The discovery step of civil cases is where

A.    the parties use a mediator

B.     the complaint is filed.

C.     each party presents their case.

D.    each party gathers information from each other and third parties.

41 of 100 If a broker is also an escrow agent in a transaction, he or she must put aside any agency relationships with the parties involved and become a

A.    subordinate agent.

B.     transaction broker.

C.     neutral depository.

D.    dual agent.

42 of 100 What is a legal instrument for the volunteer transfer of real and personal property after the owner’s death?

A.    A trust

B.     A will

C.     A deed

D.    A title

43 of 100 All of the following Bill of Rights protection are related to property rights EXCEPT

A.    equal protection.

B.     unreasonable search and seizure.

C.     just compensation.

D.    freedom of speech.

44 of 100 What type of residential survey, also called a drive-by survey, is designed to show the location of the house and other large structures on the property?

A.    A house location survey

B.     A cadastral land survey

C.     A site survey

D.    A boundary survey

45 of 100 All of the following lien types are exempt from the homestead law EXCEPT

A.    refinancing a lien against the homestead.

B.     manufactured home refinancing.

C.     credit card.

D.    purchasing money on the homestead.

46 of 100 When a salesperson says or does something that creates agency such as giving advice to a customer, giving an opinion to a customer, or negotiating on a customer’s behalf the license has

A.    created agency

B.     universal agency

C.     express agency

D.    implied agency

47 of 100 What are all parties required to use, to fulfill contingency requirements, under California law?

A.    An attorney

B.     Consideration

C.     Due diligence

D.    A transaction broker

48 of 100 California requires that deaths that occurred within the past three years be disclosed unless an occupant of the property dies with, or as a result of,

A.    cancer.

B.     leukemia.

C.     environmental factors.

D.    AIDS

49 of 100 Within how many days of providing labor, materials, or services must preliminary notice be given when filing a mechanic’s lien?

A.    30

B.     45

C.     20

D.    25

50 of 100 If a person believes he or she has been discriminated against, within what period of time of the alleged act must a compliant be filed with HUD?

A.    60 days

B.     2 years

C.     1 year

D.    6 months

51 of 100 Joe has a lease that specifies rent and other requirements, but it does not have an expiration date or renewal cycle. What kind of leasehold estate is it?

A.    Estate at Sufferance

B.     Estate at Will

C.     Estate for Period-to-Period

D.    Estate for Years

52 of 100 The U.S. Constitution gives Congress implied power, which is the ability to

A.    alter the Constitution.

B.     levy taxes.

C.     make any laws that they deem necessary.

D.    make laws that are neither prohibited by nor violate the Constitution.

53 of 100 What term describes a temporary suspension of the development of a property?

A.    Marquee

B.     Moratorium

C.     Dedication

D.    Prezoning

54 of 100 The standard measure of loss of bargain damages, for a total breach, would encompass the difference between the agreed contract price and the market value of the property on the date of

A.    contract

B.     title

C.     acceptance

D.    breach

55 of 100 What type of deed is tailored to the requirements of specific parties, properties, and purposes?

A.    A grant deed

B.     A general deed

C.     A special purpose deed

D.    A full covenant and warranty deed

56 of 100 Civil law is different from criminal law in all of the following area EXCEPT

A.    concerns.

B.     rights.

C.     parties filing.

D.    goals.

57 of 100 When a spouse dies, how does community property get divided?

A.    All of the property goes to the heirs.

B.     Half of the property goes to the surviving spouse and half to deceased’s heirs.

C.     All of the property goes to the surviving spouse

D.    The game goes to the surviving spouse and all other property goes to the deceased heirs.

58 of 100 What type of contract contains vague terms that can be interrupted and understood in more than one way?

A.    A contingent contract

B.     An ambiguous contract

C.     An indefinite contract

D.    An explicit contract

59 of 100 What is a legally enforceable contract where an agent or owner of a property gives the exclusive right of possession for a specific amount of time in exchange for money?

A.    A purchase agreement

B.     An option to buy contract

C.     A lease agreement

D.    An assumption agreement

60 of 100 What is Real Estate Investment Trust (REIT)?

A.    A syndicate of working real estate professionals

B.     A syndicate of people looking for their first home

C.     An unincorporated trust that holds a large number of real estate investments

D.    A syndicate of few investors with large sums of investments capital

61 of 100 What clause describes the type of estate being conveyed and reaffirms the extent of ownership that the grantor is transferring?

A.    A caveat emptor clause

B.     An ownership clause

C.     A habendum clause

D.    A contingency clause

62 of 100 What have lenders established to protect borrowers from unlimited increases in the interest rate?

A.    Mortgage caps

B.     Rate caps

C.     Payment caps

D.    Amortization caps

63 of 100 A licensee can provide actual factual knowledge to a customer but does not provide

A.    property improvements.

B.     square footage.

C.     sale’s price.

D.    advice.

64 of 100 Which of the following in NOT a specified federal court?

A.    U.S. Claims Court

B.     U.S. Supreme Court

C.     U.S. Tax Court

D.    U.S. Bankruptcy Court

65 of 100 What type of property is abstract, having no physical existence in itself, other than as evidence of one’s ownership interest?

A.    Representational property

B.     Tangible property

C.     Real Estate

D.    Intangible property

66 of 100 Who can file a discriminatory complaint?

A.    A buyer

B.     A seller

C.     Anyone

D.    A broker

67 of 100 What can a plaintiff file essentially telling potential buyers that the property is subject to a judgement of a pending lawsuit by putting a cloud on the title?

A.    A writ of attachment

B.     A chain of title

C.     A lis pendens

D.    A writ of execution

68 of 100 Any last minute changes to a contract that are done by hand should be initialed by

A.    the seller

B.     the buyer

C.     all parties to the contract

D.    the broker

69 of 100 Who is charged with the responsibility of making sure that the owners do not use their property in a way that will harm the public?

A.    The Real Estate Commission

B.     The HOA

C.     The government

D.    The zoning committee

70 of 100 What rules should you follow to decrease the possibility of lawsuits?

A.    Property inspection rules

B.     Office policy rules

C.     Licensing rules

D.    Agency Disclosure Rules

71 of 100 In partnership, a general partner

A.    has limited liability.

B.     shares equal liability with other partners.

C.     has no liability.

D.    has unlimited personal liability.

72 of 100 The purpose of restrictive covenents is to preserve and protect the quality of land in subdivisions and maximize

A.    incentive zoning.

B.     land improvements.

C.     land values.

D.    recreational use.

73 of 100 What is something an escrow agent should never do?

A.    Receive money from lenders.

B.     Offer legal advice.

C.     Obtain title insurance.

D.    Prepare closing documents.

74 of 100 Arbitration is an out of court settlement procedure where

A.    the third party has the power to make a binding decision.

B.     the third party attempts to make a compromise.

C.     the third party conducts a discovery.

D.    the third party consults with a judge.

75 of 100 What describes when some expense paid at closing are divided proportionally between the buyer and the seller?

A.    Assign

B.     Disseminate

C.     Withhold

D.    Prorated

76 of 100 What type of mortgage is one that includes all the personal property and appliances that are installed on the property?

A.    A purchase money mortgage

B.     A blanket mortgage

C.     A graduated mortgage

D.    A package mortgage

77 of 100 A buyer Representation Agreement is bilateral because it defines the obligations and responsibilities of

A.    the broker.

B.     both parties.

C.     the buyer.

D.    the licensee.

78 of 100 In what type of listing does an owner set a minimum amount that he or she wants to receive from the sale of the property and let the broker have a commission any amount above set minimum?

A.    An exclusive agency listing

B.     A net listing

C.     A one-time show listing

D.    An open listing

79 of 100 Which part of a Closing Disclosure details the total amount of all the payment on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the APR and the TIP?

A.    Contact information

B.     Confirm receipt

C.     Loan calculations.

D.    Other disclosures.

80 of 100 The agency relationship between the buyer, seller and broker(s) must be confirmed in writing in either the C.A.R. Standard Form AC-6 or

A.    the inspection notice.

B.     the real estate listing.

C.     the transaction form.

D.    the purchase contract.

81 of 100 If a seller declines to show a property to a minority he or she can be sued for violating

A.    HUD.

B.     fair housing laws.

C.     the Equal Opportunity Act.

D.    RESPA.

82 of 100 Who sets the amount of rate of real estate commissions?

A.    The real estate board

B.     The escrow agent

C.     The lender

D.    The broker

83 of 100 Federal law requires that information, regarding lead-based paint, be given to a buyer or tenant on home built prior to

A.    1980

B.     1984

C.     1978

D.    1990

84 of 100 What system, also called the recorded plat method, is used to describe properties in residential, commercial, and industrial subdivisions?

A.    The rectangular survey system

B.     Metes and bounds

C.     The lot and block system

D.    The Public Land Survey System

85 of 100 What term, in the California Civil Code addressing mobile home residency, describes the right of a homeowner to use the site within a mobile home park?

A.    Leasehold

B.     Specific Use

C.     Tenancy

D.    Propriety

86 of 100 How much of a property exemption is a totally disabled war veteran, making over $40,000 annually and living  in California , entitled to?

A.    $50,000

B.     $100,000

C.     $40,000

D.    $75,000

87 of 100 In a real estate transaction, who is the decision maker on all things?

A.    The broker

B.     The buyer

C.     The client

D.    The seller

88 of 100 What is not one of the 4 choices a buyer can make when a counteroffer is given back to him or her?

A.    The counteroffer could be accepted.

B.     Another counteroffer can be made.

C.     The counteroffer can be rejected.

D.    The counteroffer could become a lease.

89 of 100 California courts have held that if a lease is written, then it must be signed by the

A.    leaseholder.

B.     lessee.

C.     tenant.

D.    lessor.

90 of 100 What is pur autre vie life estate?

A.    It endures over the lifetime of the owner, then passes to an heir.

B.     It ends with the death of the life estate owner and may pass back to the original owners or their heirs or to a named third party.

C.     It ends with the death of the original grantor, then passes to a third party.

D.    It endures over a lifetime of a third person, after which the property passes from the tenant holder to the original grantor.

91 of 100 What is a second step in a civil case in district court?

A.    Pleadings

B.     Discovery

C.     Post trial

D.    Pre trial

92 of 100 What is a type of company that sells securities specializing in real estate ventures, and requires a minimum of 100 investors?

A.    A real estate corporation

B.     A limited liability corporation

C.     A real estate investment trust

D.    A partnership

93 of 100 Where must a declaration of homestead be filed?

A.    The district assessor’s office

B.     A title company

C.     The Office of Housing and Urban Development

D.    The county recorder’s office

94 of 100 What term describes the unlawful misappropriation and use of a client’s funds by a licensee?

A.    Continuance

B.     Conversion

C.     Commingling

D.    Laundering

95 of 100 What describes minerals that are deemed real property, such as gold and silver, until they are removed from the earth and become personal property?

A.    Mineral rights

B.     Nutrients

C.     Synthetics

D.    Solid minerals

96 of 100 Which provision in a CAR Residential Listing Agreement states that the property is offered in compliance with federal, state, and local anti-discrimination laws?

A.    Management approval

B.     Ownership

C.     Equal Housing Opportunity

D.    Acknowledgement

97 of 100 Which section of a CAR Residential Purchase Agreement is a provision divided into 3 sections: mediation, arbitration of disputes, and additional terms?

A.    Representative Capacity

B.     Remedies for Buyer’s Breach of Contract

C.     Dispute Resolution

D.    Scope of Duty

98 of 100 The salesperson should always think the first offer the buyer makes should be his or her

A.    worst offer

B.     only offer

C.     best offer

D.    final offer

99 of 100 What describes plants or crops that are considered personal property since human intervention is necessary for planting and harvesting?

A.    Appurtenances

B.     Conservation

C.     Fodder

D.    Emblements

100 of 100 What type of zoning is density determined for an entire area, rather than on a lot by lot basis?

A.    Down Zoning

B.     Incentive Zoning

C.     Cluster zoning

D.    Exclusionary zoning