Lillian is buying Julia's home in Malibu. Julia, after selling her home to Lillian, is buying Anne Marie's condo in San Francisco. In these transactions, who is the grantor and who is the grantee?
Lillian is the grantee and Julia is the grantor. Julia is the grantee and Anne Marie is the grantor.
In a general warranty deed, the implied promise: "If there is a defect, I promise to take care of any problems" is referred to as:
A Covenant of Further Assurance
Marcus wants to have the deed to his new home recorded to protect his ownership rights. In order to record the deed, it must be notarized. Marcus must go before a notary public and verify the signing of the deed. The notary then signs the deed. The verifi
Acknowledgment
In early common law, transfers of land were only made when:
The transfer of land from father to son, upon the father's death would take place.
Jack is leasing a home from Justin for a year. He has decided to lease until he gets a good feel for the area and knows where he wants to buy. In this relationship, who has the reversionary right and who has the possessory right ?
Jack has the possessory right and Justin the reversionary right.
Drew is leasing his apartment from Reggie. The lease is for one year and they have agreed on all areas of the contract. The lease is in written form, and Reggie is the only party that has signed. Without Drew's signature, is the lease now invalid?
No, the lessee is not required to sign, only the lessor. The lessee's occupation of the property is proof the lease agreement was accepted.
Bob leased an apartment for three years from the Steiners. He has recently purchased his first home and moved out of the apartment. Bob gave the Steiners sixty days' notice that he would be moving. He left the apartment in perfect condition. When should h
Within 21 days of vacating the property
Thad and Pierre made an appointment to view a condo for lease advertised in the newspaper. Thad phoned the landlord and set up a viewing for two hours later in the day. The couple thought the condo was perfect and informed the landlord they wanted to star
It seems the landlord did not like the idea of leasing his condo to a same sex couple. This is not permissible. A landlord must live by federal and state fair housing laws.
Katie and Rich own a rental home they have put up FSBO. They've noticed the same woman has accompanied several potential buyers viewing the home. Katie and Rich discover she is a broker that has been "showing" the home on the sly without their permission.
Ostensible Agency
Ted and Lisa are selling their home and have signed a listing agreement. Client or customer? Steven visits Ted and Lisa's open house, and he is interested in purchasing their home. What happens next? Is Steven a client or customer?
Ted and Lisa are clients, and Steven is a customer. The listing agent must disclose to Steven that he/she represents Ted and Lisa and explain customer relationships.
Timothy has been hired by the estate of Tyler Wilbanks, who is recently deceased. Timothy has Power of Attorney and will be handling all the real estate affairs of the deceased estate. Which type of agent is Timothy?
Universal Agent
In order to equalize business in their area, ABC Realty and RMH Realty have an unwritten agreement. They have agreed to split up their area with ABC taking everything north of the highway and RMH everything south. Under this agreement, the real estate age
Division of markets is a violation of the Sherman Antitrust Act.
What are the parts of a mortgage loan? What purpose does each part serve?
A Pledge and Collateral. A Pledge is a promise to pay; and Collateral allows a lender the right to foreclose if the borrower does not pay.
Karen and Jay need a larger home. They have two large dogs and a baby on the way. One day in the real estate section, they see their dream home. The couple view the home that very day, make an offer and it's accepted. There's only one problem: They haven'
A Bridge Loan
Brett lost his job last year. He has only been able to find temporary work and fell behind on his mortgage. His home is currently in foreclosure. He is confused as to what will happen and how the debts are paid. What is the order of payments in foreclosur
Cost of Sale; Special Assessment Taxes and General Taxes; the First Mortgage which is determined by the order of recording; and whatever is recoded next would be paid.
Calvin is buying his first home. He has been saving and saving for years. The home he is buying has a price of $300,000 and Calvin has a down payment of $75,000. Calvin's loan is considered:
Low Risk
Which of the following is not a requirement for an FHA loan?
Prepayment penalties are optional
Shakeel and Shaheen have sold their home, made an offer on Derek and Kamisha's home, and the offer was accepted. All the details of the sale have been worked out, agreed upon and signatures obtained. Now, Shakeel and Shaheen must obtain a loan for the pro
In Contract
Which of the following is not a characteristic of the California mortgage market?
Mortgages are used instead of Deeds of Trust, which allows borrowers greater flexibility and protection.
Wallace and Melissa live in a small rural community of just over 15,000. They want to purchase a home and start a small home-based business. At the current time, they have a very limited income and need their own home. Where is the best place for Wallace
Rural Economic and Community Development (RECD)
Janet is a broker who negotiates a number of loans to specific subdivisions. Last year, she took part in 27 loans to homeowners in one subdivision. Due to this large number of loans to a subdivision, Janet has to report loan activities to the California B
The annual and quarterly process is Threshold Reporting. Additionally, if a broker negotiates more than $1,000,000.00 in loans annually, he must take part in Threshold Reporting
Is a broker allowed (permitted) to accept lender funds unless that broker owns the loan? Which requirement under the California Business and Professions Code addresses the question?
No, it is not permissible for a broker to accept those funds. The requirement is outlined in Article 5.
Which of the following is not a goal of a real estate appraiser?
To determine the marketability of a property.
Ross, a newly licensed residential real estate appraiser, is on his way to appraise his very first piece of property. He is nervous on the way to the property and is going through the appraisal process in his head. Please help Ross put the appraisal steps
State the problem. Gather, record and verify the necessary data. Analyze and interpret. Neighborhood analysis. Neighborhood cycle. Site analysis.
When an appraiser assumes that no one is being forced to sell at a reduced price because of an impending divorce or similar situation; and that both buyer and seller are well-informed customers, he is more than likely hired to determine:
Market Value
The Western Acres neighborhood is a highly desirable area in which homes very seldom go on the market. The Western Acres properties placed on the market sell very quickly and usually for or above asking price. Which principal of real estate applies to the
The Law of Supply and Demand
Which of the following statements referring to general taxes is true?
All of the Above
What is the mill rate of .017?
17
Chip is a veteran who fought in Desert Storm. He has just retired from the military. He has been told he qualifies for a property tax exemption based on his military service during wartime. Which exemption applies to Chip?
Section 205
Shivaram and Kiran are buying a home in a new subdivision. Due to all of the subdivisions in the area, a new elementary school is being built. Additionally, a new area park is planned. Shivaram and Kiran have been informed the taxes on their new home are
The Mello-Roos Community Facilities Act of 1982
A Point of Beginning refers to:
A description starting at a designated place on a parcel using the Metes and Bounds System.
Tamara and her children live in a subdivision with a tennis court and swimming pool. Her children are thrilled to be able to use these wonderful amenities. Who actually owns the tennis court and swimming pool? Tamara and her children reside in which type
The tennis court and swimming pool are owned in common by all the property owners. It is a Planned Unit Development.
This step of the general plan, sometimes known as the master plan, should encompass all aspects of the projected growth, including the social, economic, and physical features. Due to this step, while considered long-range, the plan must allow for short-ra
Formulation of Community Goals
Zoning ordinances have changed in the area adjacent to a residential neighborhood. The residents are incensed a retail shopping area is being developed one block from their subdivision. They are concerned about the traffic, noise, and what this will do to
All of the Above
A developer wants to build a sprawling two-story office complex. The developer's and architect's vision is something low, modern, and new. They are planning the complex in an urban area of town, replacing ten blocks of old high-rise buildings. Unfortunate
Directive Zoning
Anthony is adding a new deck to his home. He has obtained all the necessary building permits to construct his new deck. Anthony's neighbor, Steve, informed him he has to have a California State Contractor's License to even work on his own property. Anthon
Anthony is correct. Anyone who does the business of a contractor must be licensed. Unless the property owner is planning to sell the finished real estate project he does not need a license to work on his own property.
Which of the following is exempt from the Natural Hazards Disclosure?
A geological hazard.
Brian and Leslie have made an offer on Rudy and Judith's home. The first offer was rejected by the sellers. Brian and Leslie made another offer; Rudy and Judith rejected that offer. Never quitters, Brian and Leslie decided to try one last time and present
Once the counteroffer is made by the seller, the buyer's original offer becomes invalid. If the buyers accepts the offer the seller has made, the same process takes place as with a regular offer.
Which of the following does not belong in listing agreement provisions?
California Statute of Frauds
Adeeb has listed his condo with Maria's broker and she is his listing agent. The listing agreement is signed and the day to begin showing his property is nearing. Adeeb decides the day before the open house to raise his asking price by $20,000. Maria disa
Maria must change the listing price on a price change or extension form.
Which form of payment is most common for a property manager?
A percentage of income.
Derek's new office is undergoing a minor renovation and he cannot conduct business in the location for approximately six months. He decided to lease a temporary office in Samantha's building from June 1 to December 30. Which type of lease has Derek signed
An Estate for Years
What is the major difference between an Estate for Years and an Estate from Period to Period?
The major difference is: in an Estate from Period to Period, the tenant must give notice to vacate whereas in an Estate for Years, there is no need to give any notice.
Janice has given her broker an earnest money deposit check with written instructions to hold the check until the seller has accepted her offer. Her broker follows instructions and informs the seller, through a telephone conversation with the seller's agen
Both A and C
When is it permissible for a broker to possess an out-of-state trust account?
It is only permitted if the FDIC insures the account, and the account is used only for specific first loans.
Lois is selling her needlework shop to Simon. Simon is also purchasing the name of the business from Lois, all of the fixtures, and the inventory. Lois is essentially handing over the entire business, from top to bottom, to Simon, who is planning continui
Both A and B
Mobile homes manufactured ___________ are required to have tags guaranteeing proper construction. Who issues this tag?
After June 15, 1976; HUD c)
Missy, a licensee, desperately wants to be appointed the next California Real Estate Commissioner. For the three years she has held her California real estate license, she has been ranked in the top five in new home sales in her office. Missy has never ha
No, not at this point in her career. In order to be appointed to the post by the governor, she must have a minimum of five years' experience as a real estate broker.
Which of the following parties are not exempt from the licensing requirements in California? 0
Off-Site Property Managers
Tameka's goal is to be a licensed real estate salesperson in the State of California. Her long-term goal is to be a successful salesperson, manager, and to own a brokerage. She has been studying the Real Estate Principles Course for next week's exam. Howe
All of the Above
The continuing education requirement in California is ____________hours every __________ years.
45, four
Molly, a successful real estate salesperson, took some time off to stay at home with her first child. Days turned into weeks, weeks into months, months into years, until Molly's child was starting school. She decided she needed to head back to her profess
No, two years after the license expires, all license rights lapse. Molly must re-qualify through the examination process before being licensed in real estate once again.
Carol is studying for the California real estate license examination. She knows she has to know all areas covered in the examination extremely well to pass. Which portion of the examination, approximately, makes up the largest portion of the test?
Practice of Real Estate and Mandated Disclosures
Georgina sat for the examination about two weeks ago. She believes she passed with flying colors and checks her mail immediately upon arrival home for her results. Today, they arrived and, as she opened the envelope, she saw her test score. Did Georgina p
Georgina failed the exam. The exam is qualifying by nature and if you pass, you pass; your score is irrelevant and is not revealed.
Which act is known as the original fair housing statute?
Civil Rights Act of 1866
Agent Simpson tells residents of a neighborhood that minorities are moving into the neighborhood, and property values are sure to plummet. Simpson goes on to say, "resale values will suffer, the neighborhood will deteriorate, and if they don't sell their
Blockbusting
Which of the following is not an exemption to the federal fair housing laws concerning age and family status?
In a retirement community if 70% of the dwellings have one person who is 55 years of age or older, provided there are amenities for elderly residents.
Agent Green is faced with an ethical dilemma. He was present when two brokers were having an unethical discussion that could be considered collusion. He doesn't know if he should act as if it never happened, or report the incident to his broker. What step
All of the Above
An undeveloped acre of land sits in the middle of a secluded rural community. How many separate owners could this acre have?
Three owners: One could own the subsurface rights, one the surface rights, and another the air rights.
Which of the following statements concerning real and personal property is true?
Both B and C
Ben and Amanda are interested in a vacant, undeveloped lot. They are going to continue to live in their current home, pay off the lot's loan, and then build a new home on the lot. Before closing on the purchase of the lot, they discover the zoning regulat
They may rescind the transaction based on the misrepresentation of the broker.
Along a non-navigable stream, does an owner own the land, the water, both, neither? What is this right?
The owner owns the land to the center of the stream and the government owns the water. It is a Riparian Right.
Deanna is buying one of Kay's fur coats and several handbags. They are old friends and sometimes purchase each other's items instead of selling to a consignment shop. Deanna agrees to pay Kay $650.00 for the items, writes a check, and collects her purchas
No, in the State of California, an agreement for the sale of personal property must be in writing if the amount or value of the property exceeds $500.00.
Mr. Manning has owned a restaurant for forty years. He is in the process of selling his business to a group of investors who plan on revamping the restaurant and turning it into a destination. In the negotiation of the sale, Mr. Manning has stipulated he
Fee Simple Defeasible
What are the types of legal life estates?
Dower, a wife's interest in the husband's property; Curtesy, a husband's interest in a wife's property; and Homestead, protection against unsecured debts for the party who did not sign for the loan.
Kim, Chris, and Beth are all partners in a cosmetics firm. Kim is leaving the partnership and wants to sell her shares of the business, including the property owned by the partnership, to Chris and Beth. The three partners own the property with the right
Joint Tenancy
Which of the following is not a fourfold unity?
Vesting
Christina is planning on getting married in the next year. She is a very successful business owner and is planning on buying some vacation property on the coast. She asks her agent, Martina, for advice on how she should take title to this new property. Sh
Martina should discuss with Christina what she knows in reference to California community property laws, but give no advice except to consult an attorney for advice.
Which of the following liens is both general, involuntary, and statutory? Which lien is specific, voluntary, and equitable?
Income Tax Lien; Mortgage Lien
Due to the subdividing of lots on the lake, Jim's property is surrounded on three sides by Louise's property. The only other boundary is the lake. Jim can only get to his home by driving up Andrea's driveway and behind her lake home to get to his own. How
Necessity
Which are the four elements required for a valid contract?
Legally Competent Parties; Offer and Acceptance; Consideration; and Legality of Object
Dan has recently been transferred to San Diego, and only has a month to find a home, sell his condo, pack, move, close, and get to work. His agent shows him the Walsh home and it's perfect. He offers the asking price, along with all the kitchen appliances
Mirror Image
A subdivision has a homeowner association rule that states there can be no above ground pools in the subdivision. The Curtis family has an above ground pool in their backyard. Four years later, the new association president threatens to take the family to
Statute of Limitations
When an owner dies without a will or heirs, what happens to the property and why?
The property is transferred to the state. Property cannot be without an owner.
What is the California Statute of Limitations on bringing a court foreclosure to enforce a mechanic's lien? To bring action for removal of encroachments?
90 days after filing the lien; Three years
What is the difference between Southern California and Northern California in reference to escrow accounts?
Both B and C
The Brights are buying a home from the Stones. They are splitting the escrow service fees 50-50. Do they live in Northern or Southern California? How does the other region usually handle the escrow service fees?
They live in Southern California. In Northern California the buyer usually pays the escrow service fees.
Which of the following is not a prohibited escrow-related activity?
They may not permit, under any condition, any person to make any addition, deletion, or alteration of an escrow instruction.
John and Thom are purchasing their dream home. Due to the expiration of escrow instructions, the escrow has been terminated. Have they lost the contract on the house of their dreams?
No, the termination of an escrow does not terminate the associated contract.
Agent Sims needs one more new home sale this month to receive a bonus. She has one more that could possibly close and help her meet the goal. However, today she was informed the financing fell through for the buyer. Agent Sims has a lender friend that owe
PC 639-639a
When can a violation that hasn't happened yet be a violation?
Both A and C
Which is not a form of syndication?
An Equity Trust
XYZ Corporation is interested in a piece of land for development. They are selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of stock considered a form of financing?
It is actually considered a mortgage financing alternative.
Broker Burns is negotiating a first trust deed loan for buyers. The buyers have signed a contract for a fifteen-year loan. What is the maximum commission for Broker Burns?
Ten percent of the principal of the loan.
Ensuring consumers are fully informed of all finance changes and aware of the true annual interest rate are requirements of which regulation?
Truth in Lending
When is a real estate licensee considered a creditor?
If the licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy.
Judy is the listing agent for the Brandts' home. In the inspection of their home, she discovers a few issues of concern. The basement is very damp and smells of mildew. Judy noticed what appeared to be mold on the interior walls of the lower level. She al
Easton v. Strassburger
Which of following are not considered trust funds?
All of the Above
What is the form of all California licensing examinations?
Multiple-Choice Tests
Ramon did not pass his licensing examination. He didn't think it was a possibility to fail and doesn't know what to do to re-take the test. Ramon is not even sure he is allowed to take the examination a second time. What are Ramon's options?
Both A and B
Elliot has misrepresented himself by acting in the capacity of a real estate salesperson without being licensed by the State of California. Elliot had his license revoked three years ago for unethical actions. Elliot is guilty of what level of violation?
Misdemeanor
Ken has just passed his licensing examination. However, he has been notified the CalBRE will not issue a full-term license. Ken is behind on child support payments and therefore has not complied with a court order to provide these payments. Will Ken ever
Ken may be issued a 150-day temporary license while he is on the list of child support obligors. Only one 150-day temporary license may be issued. His full-term license may be issued if a release is obtained from the district attorney's office during the
Tracy and Darnell are buying a home. They have a 15% down payment and have qualified for a thirty year fixed rate mortgage. Will Tracy and Darnell have to pay PMI?
Yes, private mortgage insurance is required for all loans with less than 20% down payment.
Which of the following conditions does not apply in converting a mobile home into real property?
The homeowner is required to have a tag guaranteeing the mobile home's proper construction.
Appraiser Jones appraises one-to-four unit residential properties, and non-residential properties with a transaction value up to $250,000. What is this appraiser's level? How many hours of appraiser education were completed?
Certified Residential Real Estate Appraiser, 200 hours
Agent Peters has qualified buyers to purchase a new home. Now he needs to qualify the property they wish to buy. He understands the human qualification process. Can you help Agent Peters with steps to qualify the property?
Both A and C
In studying for her real estate license, Elise is reading about police power. She is confused and doesn't understand why law enforcement would have any role in real estate sales, transactions, and regulations. What does the term "police power" refer to in
Both A and C
Patrice and Cornell are completing a sales contract with Mary, their agent. The sales contract used at Mary's brokerage is preprinted. Mary, as a senior agent, has the authority to waive one of the brokerage's fees. The fee is explained and preprinted on
Handwritten portions of real estate contracts always supersede preprinted forms.
Caroline has been paying her mortgage steadily for fifteen years. She has just received a notice from her lender that the loan due date is approaching and she will owe a lump sum of $11,257 to pay off her mortgage loan. Which type of promissory note has C
A fully amortized loan
Which of the following listing agreements is illegal in most states?
Net Listing