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124 Cards in this Set
- Front
- Back
1. If a licensee is guilty of conversion, he or she is someone who is:
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Misappropriating the funds of client
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2. A real estate salesman went into a neighborhood to obtain listings of residential property.
He made representations that, because of the entry into the neighborhood of minority groups, property values would be reduced (due to a decline in the quality of schools, coupled with an increase in the crime rate). These practices by the salesman are: |
Grounds for disciplinary action
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3. What is a REALTOR®?
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A real estate licensee who is a member of the National Association of
REALTORS®. |
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4. The initial term of all California real estate licenses is:
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Four years
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5. The majority of California laws relating to real property are created by which of the
following? |
The Business and Professions Code
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6. Which of the following has a meaning most completely opposite of Commingle?
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Segregate
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7. Of the following, which is not a penalty that the Real Estate Commissioner is authorized to
issue against an offending licensee? |
Serving jail time
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8. Unlawful Conduct as set forth in the Commission’s Regulations is best described as:
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Specific acts and omissions which do violate existing law and are grounds for
disciplinary action |
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9. Which of the following is not considered unethical conduct?
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Failing to respond to reasonable inquiries of a principal as to the extent of efforts to
market property listed with the licensee |
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10. What is the fine for a corporation, which receives an illegal commission?
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$50,000
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11. The power of the state to enact laws in order to promote the order, safety, health and
general welfare of the public. |
Police Power
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12. Making statement that exaggerates a property’s benefits is called
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Puffing
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13. All broker candidates must be at least what age?
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18
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14. Acting for more than one party in a transaction without knowledge or consent of all parties
thereto is best described as |
Divided Agency
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15. To become truly successful in the real estate business, one should:
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Attain as high a level of academic education as possible
Take as many courses in real estate as one can find Continually educate oneself throughout one’s career |
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16. How many classes are required of a broker candidate before he or she is eligible to sit
for the state exam? |
8
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17. A broker persuades a Caucasian family to list their home for sale by telling them that non
white people are moving into the area and that this may reduce property values. Such persuasion is considered all of the following, except: |
Legal but unethical
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18. What is the experience requirement for becoming a real estate broker?
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Candidate must be a real estate agent for 2 years
Candidate must have a 4-year degree Candidate must be a member of the California Bar Association. Any of the above. |
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19. Commingling of funds is:
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Mixing the broker’s funds with funds of the principal
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20. Who appoints the Real Estate Commissioner?
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Governor
State Legislators |
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21. Representing more than one party in a transaction without the knowledge or consent of
all other parties is best described as: |
Divided Agency
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22. Unlawful Conduct as set forth in the Commission’s Regulations is best described as:
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Specific acts and omissions, which violate existing law and are
grounds for disciplinary action |
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23. Commingling of funds is:
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Mixing broker’s funds with those of the principal
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Rights of possession, use, enjoyment, encumbrance and transfer are all
characteristics of: |
Bundle of Rights
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What are the two types of freehold estates?
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Fee Simple and Life Estate
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Property is considered:
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Anything that can be owned
Real Personal |
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An example of real property is:
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The airspace immediately above the property
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Which one of the following examples is not considered a fixture?
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Space heater
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Trade fixtures are considered:
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Personal property
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All of the following are descriptions of land EXCEPT:
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Encroachment
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The concept under the bundle of rights that allows a land owner to use his or her
property as collateral to secure a loan is: |
Encumber
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What does an estate refer to?
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Ownership
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Which of the following conditions are characteristics of a Fee Simple Absolute Estate?
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Provides the owner with the most bundle of rights
Holds no limitations or conditions Can be conveyed by a will |
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In reference to a life estate, a measuring life is:
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the life duration of the person on whose life the estate is based
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All of the following characteristics are correct regarding a leasehold estate EXCEPT:
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The owner of a leasehold estate possesses more bundles of rights than a
free hold estate. |
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Which of the following are considered the lowest form of estate?
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Estate at Sufferance
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All of the following are characteristics of a lease EXCEPT:
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Tenants are required to sign all written contracts.
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An example of real property is
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The airspace immediately above the property
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Which of the following is NOT considered a water right for a property owner?
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Emblement
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Another term for personal property is:
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Chattel
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Property can change from real to personal and back to real property.
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True
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Which one of the following examples is not considered a fixture?
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Space heater
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Which one of the following is NOT considered a test of a fixture?
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Emblement
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Trade fixtures are considered
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Personal property
Real property Both A and B |
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All of the following are descriptions of land EXCEPT
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Encroachment
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Metes and bounds land descriptions are most commonly used when
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land is irregularly shaped and would be difficult to describe with any other
system. |
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A plot of land containing 36 square miles most likely describes
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1 township
6 townships 36 sections |
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What concept carried over from Spanish law into modern day property
ownership? |
Community property
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By law, all documents affecting the title to real property must be
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Acknowledged
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Which of the following may own property in severalty?
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Corporations
Trusts Individuals |
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Which of the following is NOT considered an encumbrance on real property?
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Homestead
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What is the maximum homestead exemption a person 65 years of age or older can
declare on their residence? |
$150,000
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A certificate of title will tell what about a property?
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Vesting
Encumbrances |
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A standard title insurance policy will guard against all of the following except
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Water Rights
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What concept carried over from Spanish law into modern day property ownership?
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Community property
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By law, all documents affecting the title to real property must be (A):
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Acknowledged
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Which of the following officials is NOT considered a public official who may take an
acknowledgment? |
County Treasurer
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Which of the following may own property in severalty?
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Corporations
Trusts Individuals |
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Which of the following is not a type of concurrent ownership?
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Co-ownership
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Which of the following is a characteristic of Tenancy in Common?
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Equal right of possession
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Parties in a joint tenancy may dispose of their property in which of the following ways?
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Right of survivorship
Sale |
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Which one of the following is not one of the four unities of a Joint Tenancy?
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Unity of Survivorship
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Which of the following is true regarding community property?
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Community property may be purchased with only one spouse’s consent.
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Which of the following is correct regarding community property?
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With no will in place, the surviving spouse inherits all of the deceased
spouse’s interest. |
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Which of the following is NOT considered an encumbrance on real property?
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Homestead
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Which of the following is considered a money-restricted encumbrance?
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Judgment
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Which of the following steps is not necessary to initiate a valid mechanics lien?
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Adverse Possession
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In a foreclosure situation, which of the following determines the order of lien
payment? |
The date each lien was recorded (from the first recorded to the most recent
recorded) ,with the exception of mechanics liens, which are always paid first. |
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The continuous, notorious use of another persons land for a period of five or more
years is an example of what kind of easement? |
Prescription
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All of the following are examples of encroachments EXCEPT Easements
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Buildings
B. Easements Fences and walls Hedges, trees or other vegetation crossing boundary lines |
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What is the maximum homestead exemption a person 65 years of age or older
can declare on their residence? |
$150,000
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A certificate of title will reveal what about a property?
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A-Vesting
B.- Encumbrances C. Neither A nor B |
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A standard title insurance policy will guard against all of the following
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Federal tax liens
Forgery Fraud EXCEPT Water rights |
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The American Land Title Association (A.T.L.A.) provides an extended title insurance
policy which guards against which of the following? |
Water rights
Mining claims Unrecorded liens All of the above |
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Failure to perform a contract is also known as:
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A breach
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How long is the Statute of Limitations for an action based on a written real estate
contract? |
Four years
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A well-drafted real estate purchase contract will include which of the following
provisions?: |
The buyer’s possession of the property
The financing terms Proration of property expenses |
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According to the Statute of Frauds, all contracts for the sale of real estate must be :
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Made in writing
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Which of the following parties is bound by an option to purchase?
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Seller only
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A contract that has not been performed is called a (n)
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Executory contract
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Which of the following are basic elements of a valid contract?
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Sufficient consideration
Lawful purpose Competent parties |
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Personal Property - 90 Days
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An individual has 90 days to recover personal property, especially property left at a
hotel, motel or boarding house |
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Injury – One Year
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An individual has one year to file an action for libel, slander, injury or death caused by
the neglect of another |
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Oral Contracts - Two Years
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An individual has two years to settle a dispute resulting
from an oral contract. |
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An option to purchase a specific vacant lot:
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Can be assigned if purchased for cash
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A broker must maintain listing agreement copies for:
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Three years
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To be entitled to a commission, a broker must show that they were the procuring
cause of the sale or lease of a property under all of the following types of listings EXCEPT: |
Exclusive agency
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In her capacity as an agent, a real estate licensee is liable to third parties for:
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Her own torts
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An exclusive right to sell listing:
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Must contain a termination date
Must be in writing if the broker wants to be successful in suing for a commission Must be kept by the broker for at least three years |
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A voidable contract is a contract that:
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Is valid and enforceable on its face, but may be rejected by one of the parties
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Under the Statute of Frauds, all contracts for the sale of real estate must be in
writing. The principal reason for this statute is to: |
Prevent fraudulent proof of a fictitious oral contract
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The broker who most qualifies for a commission is the one who:
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Communicated the acceptance to the buyer
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An offer to fully perform a purchase contract is known as:
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A tender
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A remedy in court compelling a vendor to execute a deed in pursuance of a valid
written contract is known as:) |
Specific performance
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Failure to perform a contract is also known as:
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A breach
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How long is the Statute of Limitations for an action based on a written real estate
contract? |
Four years
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A well-drafted real estate purchase contract will include which of the following
provisions? |
The buyer’s possession of the property
The financing terms Proration of property expenses |
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According to the Statute of Frauds, all contracts for the sale of real estate must be :
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Made in writing
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Which of the following parties is bound by an option to purchase?
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Seller only
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A contract that has not been performed is called a(n)
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Executory contract
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Which of the following are basic elements of a valid contract?
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Sufficient consideration
Lawful purpose Competent parties |
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Due diligence is the promise a broker makes to whom?
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The principal
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All of the following are types of listing agreements EXCEPT
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Private listing
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A broker may be accused of fraud or misrepresentation when which of the following
occurs? |
Silence regarding known defects or problems with the property.
Knowingly passing on false information regarding the property Recklessly making assumptions, and then passing them on as fact |
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What term best describes an agent’s responsibility to the client?
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Fiduciary
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A broker who takes an option on his or her own listing is conducting the transaction:
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At arms length
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An agent who represents both the buyer and the seller has what type of agency?
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Dual Agency
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The listing agent must fully disclose all facts to
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Both the buyer and seller
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Ostensible agency is most closely related to
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Estoppel
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Which of the following is NOT a way to create an agency?
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Contract
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Agents can place their listings on what service to allow all its members to see the available listing?
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Multiple Listing Service
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Brokers who show clients properties found on the Multiple Listing Service are referred to as:
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Cooperating Brokers
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When a broker accepts a deposit from a buyer without permission from the seller, the broker
is acting as |
The buyer’s agent
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Which of the following is not one of the types of misrepresentation?
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Blatant
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Puffing is a form of
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Misrepresentation
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Which of the following duties is NOT considered a duty owed to the principal by the agent?
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Flexibility
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What percentage of the state license fee is contributed to the California Recovery Account?
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5%
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Is a broker who takes an option on his or her own listing eligible to make a commission on the
transaction? |
Yes, provided the agent fully discloses his intentions or interest in the property to the
sellers |
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Which of the following would cancel an agency?
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Full performance
Destruction of the property Death of the principal or agent |
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If an agent cancels an agency agreement, causing damages for the principal, is the agent responsible for
these damages? |
Yes, regardless of the dollar amount of damage
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When is an agent’s commission earned?
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When the agent finds a ready, willing and able buyer who meets all of the seller’s
terms |
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The promise of a principal not to interfere with an agent’s prospective economic advantage
in finding a ready, willing and able buyer by having separate negotiations with the third party behind the agent’s back best is described as which of the following? |
Duty of care
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When is a seller required by law to deliver the Real Estate Transfer Disclosure Statement to
a buyer? |
Before a purchase contract or offer is made
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Commission rates are determined by
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Brokers
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