Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
A broker selling a property on which he holds an option should notify the purchaser that he is acting as: |
d) A Principal
|
|
As used in real estate practices, the land of a riparian owner borders on:
a) a river b) a stream c) a watercourse d) any of the above |
d) Any of the above
|
|
A quitclaim deed conveys only the present right, title and interest of the:
a) grantor b) servient tenement c) grantee d) property |
d) Property
|
|
If a $54,600 investment in real estate generates gross annual earnings of 15%, the gross monthly return most nearly is:
a) $819 b) $705 c) $685 d) $637 |
a) $819
|
|
You are a California real estate broker. A prospect is referred to you by an out-of state broker and a sale is consummated by you. You want to split your commission with the cooperating broker. Under the California Real Estate Law:
a) you may pay a commission to a broker of another state b) you cannot divide a commission with a broker of another state c) you can pay a commission to a broker of another state only if he is also licensed in California d) none of the above |
a) You may pay a commission to a broker of another state
|
|
A loan to be completely repaid, principal and interest, by a series of regular equal installment payments is a: |
c) Fully amortized loan
|
|
In a legal sales contract, the seller is often referred to as the:
a) divisor b) donor c) vendor d) trustor |
c) Vendor
|
|
Community property is property owned by: |
b) Husband and wife
|
|
An apartment complex cost $450,000. It brings in a net income of $3,000 per month. The owner is making what percentage of return on the investment? |
d) None of the above
|
|
A person holding title to real property in severalty would most likely have: |
d) Sole ownership
|
|
Copies of all listings, deposit receipts, cancelled checks, and trust records must be retained by a licensed real estate broker for:
a) one year b) two years c) three years d) five years |
c) Three years
|
|
Parallel wooden members used to support floor and ceiling loads are called: |
b) Joists
|
|
A "loss of value from any cause" is a common definition of: |
b) Depreciation
|
|
Of the following, which is the most important reason for a broker to maintain a trust fund account in addition to a regular business account? |
d) The consequence which could occur should legal action be taken against the broker
|
|
Economic obscolecence could result from each of the following except:
a) new zoning laws b) a city's leading industry moving out c) misplacement of improvements d) an outdated kitchen |
d) An outdated kitchen
|
|
A subordination clause in a trust deed may: |
d) give priority to liens subsequently recorded against the property
|
|
An interest in real property may be acquired by either prescription or by adverse possession. The interest resulting from prescription is: |
a) The right to use another's land |
|
Generally, the taking of private land by governmental bodies for public use is governed by due process of law and is accomplished through:
a) exercise of the police power b) eminent domain c) reverter d) escheat |
b) Eminent domain
|
|
Capitalization is a process whereby an appraiser:
a) converts income into capital value b) determines depreciation reserves c) establishes cost of capital investment d) finds gross income of equity capital |
a) Converts income into capital value
|
|
The position of trust assumed by the broker as an agent for a principal is described most accurately as:
a) gratuitous relationship b) a trustor relationship c) a fiduciary relationship d) an employment relationship |
c) A fiduciary relationship
|
|
We call the instrument used to remove the lien of a trust deed from record a:
a) satisfaction b) release c) deed of reconveyance d) certificate of redemption |
c) Deed of reconveyance
|
|
The type of mortgage loan which permits borrowing additional funds at a later date is called:
a) an equitable mortgage b) junior mortgage c) open-end mortgage d) equitable mortgage |
c) Open-end mortgage
|
|
Tax delinquent real property not redeemed by the owner during the five-year statutory redemption period is deeded to the:
a) city b) county c) state d) school district |
c) State
|
|
In a typical percentage lease, rent is calculated as a percentage of:
a) assets of the lessee's business b) net sales of the lessee's business c) gross sales of the lessee's business d) net taxable income of the lessee's business |
c) Gross sales of the lessee's business
|
|
The instrument used to secure a loan on personal property is called a:
a) bill of sale b) trust deed c) security agreement d) bill of exchange |
b) Trust deed
|
|
Under the Federal Truth-in-Lending Law, two of the most critical facts which must be disclosed to buyers or borrowers are:
a) duration of the contract and discount rate b) finance charge and annual percentage rate c) carrying charge and advertising expense d) installment payments and cancellation rights |
b) Finance charge and advertising expense
|
|
When a loan is fully amortized by equal monthly payments of principal and interest, the amount applied to principal:
a) and interest remains constant b) decreases while the interest payment increases c) increases while the interest payment decreases d) increases by a constant amount |
c) Increases while the interest payment decreases
|
|
Joint ownership of real property by two or more persons, each of whom has an undivided interest (not necessarily equal) without right of survivorship, is:
a) a tenancy in partnership b) a tenancy by entireties c) a tenancy in common d) a leasehold tenancy |
c) A tenancy in common
|
|
Which of the following is a lien?
a) an easement b) a zoning restriction c) an attachment d) all of the above are liens |
c) An attachment
|
|
Governmental land use planning and zoning are important examples of:
a) exercise of eminent domain b) use of police power c) deed restrictions d) encumbrances |
a) Exercise of eminent domain
|